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Home My WebLink About2014-02-11 Agenda Packet I declare under penalty of perjury ;hat I am employed by the City of Chula Vista in the Office of the City Clerk and that I posted this �`(�� CI�/ Of CF1UI8 VlStadocument on the bulietin board according to � � Brown Act requirements. � Agenda Dated �1 (y Signed - ' CHULA VISfA Cheryl Cox, Mayor Patricia Aguilar, Councilmember James D. Sandoval, City Manager Pamela Bensoussan, Councilmember Glen R. Googins, City Attomey Rudy Ramirez, Councilmember ponna R. Norris, City Clerk Mary Salas, Councilmember Tuesday, February 11, 2014 2:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Bensoussan, Ramirez, Salas and Mayor Cox PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY A. 14-0059 OATH OF OFFICE Rosa Maria Robles, Board of Ethics B. 14-0062 INTRODUCTION BY HERMON HOWELL, ASSISTANT DIRECTOR OF INFORMATION TECHNOLOGY SERVICES, OF EMPLOYEE OF THE MONTH PAT GARCIA, SENIOR INFORMATION TECH SUPPORT SPECIALIST C. 14-0064 PRESENTATION OF A PROCLAMATION TO UTC AEROSPACE SYSTEMS VICE PRESIDENT OF ENGINEERING AND TECHNOLOGY COLIN CRAMP, ACHIEVING COMPETITIVE EXCELLENCE (ACE) VICE PRESIDENT, QUALITY AND SUPPORT FUNCTIONS MARTIN LODGE, CITY OF CHULA VISTA DIRECTOR OF PUBLIC WORKS RICK HOPKINS AND CITY ENGINEER BILL VALLE PROCLAIMING FEBRUARY 16-22, 2014 AS NATIONAL ENGINEERS' WEEK IN CHULA VISTA City o/ChLla Ifista Page 1 Prinfed an L8�2011 City Council Agenda February 11,2014 CONSENT CALENDAR (Items 1-6) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. 14-0022 APPROVAL OF MINUTES of December 10, 2013. Staff Recommendation: Council approve the minutes. Attachments: Item 1 - Draft Minutes 2. 14-0069 WRITTEN COMMUNICATIONS Letter of resignation from Luz Camacho, Cultural Arts Commission. Staff Recommendation: Council accept the resignation. Attachments: Item 2- Letter of Resignation 3. 14-0043 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 17.10 (PARKLANDS AND PUBLIC FACILITIES) RELATING TO THE PARK ACQUISITION AND DEVELOPMENT FEE REQUIREMENT FOR HOTELS AND MOTELS (SECOND READING AND ADOPTION) Department: Development Services Department - Land Development Staff Recommendation: Council adopt the ordinance. Attachments: Item 3-Ordinance Item 3-Ordinance Exhibit City of Chula Vista Page 2 Printed on 21712014 City Council Agenda February 11,2014 4. 13-0213 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT BETWEEN SR V-2 R-6, LLC, AND THE CITY OF CHULA VISTA FOR OTAY RANCH VILLAGE 2 NORTH R-6 (CHULA VISTA TRACT NO. 11-04) Department: Development Services Department Staff Recommendation: Council adopt the resolution. Attachments: Item 4- Resolution Item 4- Exhibit A 5. 14-0024 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING DONATIONS AND GRANT FUNDS IN THE AMOUNT OF $22,181 FROM MULTIPLE DONORS AND GRANTORS FOR COSTS ASSOCIATED WITH THE COMMUNITY FUN RUN, NORMAN PARK CENTER, VETERANS CENTER AND CITYWIDE AQUATIC AND RECREATION FACILITIES AND AMENDING THE FY2013-2014 RECREATION BUDGET TO REFLECT THE APPROPRIATION OF THESE DONATED, SPONSORSHIP AND GRANT FUNDS (4/5 VOTE REQUIRED) Department: Recreation Department Staff Recommendation: Council adopt the resolution. Attachments: Item 5- Resolution 6. 14-0039 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING APPROPRIATIONS OF $328,446 IN THE ADVANCED LIFE SUPPORT FUND FOR THE PROCUREMENT AND ACQUISITION OF CARDIAC MONITOR/DEFIBRILLATORS MANUFACTURED BY ZOLL MEDICAL CORPORATION (4/5 VOTE REQUIRED) Department: Fire Department Staff Recommendation: Council adopt the resolution. Attachments: Item 6- Resolution Item 6-Zoll Sole Source Council Approval Item 6-Cardiac defibrillator supplies quote Item 6-Cardiac defibrillators quote City of Chula Vista Page 3 Printed on 21712014 City Council Agenda February 11,2014 ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 7. 14-0031 CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), DESIGNATING IMPROVEMENT AREAS THEREIN, AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WITHIN EACH IMPROVEMENTAREA Department: Public Works Department Staff Recommendation: Council adopt the resolution. Attachments: Item 7- Resolution Item 7-Attachment A ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. City of Chula Vista Page 4 Printed on 21712014 City Council Agenda February 11,2014 8. 14-0032 DECLARATION OF ELECTION RESULTS REGARDING LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) AND THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT THEREIN AND AUTHORIZE THE LEVY OF SPECIAL TAXES A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE RESULTS OF A SPECIAL ELECTION IN COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) B. ORDINANCE OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) (FIRST READING) Department: Public Works Department Staff Recommendation: Council adopt the resolution and place the ordinance on first reading. Attachments: Item 8- Resolution Item 8-Ordinance Item 8- Exhibit A to Ordinance City of Chula Vista Page 5 Printed on 21712014 City Council Agenda February 11,2014 9. 14-0075 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IN SUPPORT OF THE RELOCATION OF THE SDG&E BAYFRONT SUBSTATION INCLUDING THE BAYFRONT ENHANCEMENT FUND ALTERNATIVE AND CONSIDERATION OF ADDITIONAL FEASIBLE UNDERGROUNDING OF UTILITY LINES AND OTHER MEASURES TO ADDRESS VISUAL IMPACTS CONSISTENT WITH THE CITY'S CERTIFIED LOCAL COASTAL PROGRAM AND THE COASTAL ACT Department: Administration Department Staff Recommendation: This item is presented in response to a City Council referral at the December 17, 2013 City Council meeting. City Council should take such action as it deems appropriate. Attachments: Item 9- Resolution EXHIBITA- Extract from MOU Section 1.7 EXHIBIT B- Extract from LCP EXHIBIT C-Coastal Act Section 30251 EXHIBIT D- Letter from ISO to CCC CITY MANAGER'S REPORTS MAYOR'S REPORTS COUNCILMEMBERS' COMMENTS 10. 14-0070 COUNCILMEMBER SALAS Status Report on Information Gathered and Timing for Future Council Consideration of Possible School District Unification CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M. Brown Act (Government Code 54957.7). City of Chula Vista Page 6 Printed on 21712014 City Council Agenda February 11,2014 11. 14-0068 CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) One Case. There is an ongoing disagreement that between the "Participating Agencies" (including the City of Chula Vista), on the one hand, and the City of San Diego and Padre Dam Municipal Water District, on the other hand, over responsibility for reimbursing Padre Dam for its overpayment of wastewater fees dating back to 1998 under the terms of the Master Wastewater Disposal Agreement between the parties. ADJOURNMENT to the Regular City Council Meeting on February 18, 2014, at 2:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk's Office at(619) 691-504 1(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. City of Chula Vista Page 7 Printed on 21712014 # City of Chula Vista GIN Of VTA Legislation Details (With Text) File#: 14-0059 Name: Type: Special Order Status: Agenda Ready File created: 1/30/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: OATH OF OFFICE Rosa Maria Robles, Board of Ethics Sponsors: Indexes: Code sections: Attachments: Date Ver. Action By Action Result OATH OF OFFICE Rosa Maria Robles, Board of Ethics City of Chula Vista Page 1 of 1 Printed on 2/7/2014 _ City of Chula Vista QTR CHVIAVISTA Legislation Details (With Text) File#: 14-0062 Name: Type: Special Order Status: Agenda Ready File created: 2/3/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: INTRODUCTION BY HERMON HOWELL, ASSISTANT DIRECTOR OF INFORMATION TECHNOLOGY SERVICES, OF EMPLOYEE OF THE MONTH PAT GARCIA, SENIOR INFORMATION TECH SUPPORT SPECIALIST Sponsors: Indexes: Code sections: Attachments: Date Ver. Action By Action Result INTRODUCTION BY HERMON HOWELL, ASSISTANT DIRECTOR OF INFORMATION TECHNOLOGY SERVICES, OF EMPLOYEE OF THE MONTH PAT GARCIA, SENIOR INFORMATION TECH SUPPORT SPECIALIST City of Chula Vista Page 1 of 1 Printed on 2/7/2014 powered by LegistarTM _ City of Chula Vista CITE CHVIAVISTA Legislation Details (With Text) File#: 14-0064 Name: Type: Special Order Status: Agenda Ready File created: 2/4/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: PRESENTATION OF A PROCLAMATION TO UTC AEROSPACE SYSTEMS VICE PRESIDENT OF ENGINEERING AND TECHNOLOGY COLIN CRAMP, ACHIEVING COMPETITIVE EXCELLENCE (ACE) VICE PRESIDENT, QUALITY AND SUPPORT FUNCTIONS MARTIN LODGE, CITY OF CHULA VISTA DIRECTOR OF PUBLIC WORKS RICK HOPKINS AND CITY ENGINEER BILL VALLE PROCLAIMING FEBRUARY 16-22, 2014 AS NATIONAL ENGINEERS' WEEK IN CHULA VISTA Sponsors: Indexes: Code sections: Attachments: Date Ver. Action By Action Result PRESENTATION OF A PROCLAMATION TO UTC AEROSPACE SYSTEMS VICE PRESIDENT OF ENGINEERING AND TECHNOLOGY COLIN CRAMP, ACHIEVING COMPETITIVE EXCELLENCE (ACE) VICE PRESIDENT, QUALITY AND SUPPORT FUNCTIONS MARTIN LODGE, CITY OF CHULA VISTA DIRECTOR OF PUBLIC WORKS RICK HOPKINS AND CITY ENGINEER BILL VALLE PROCLAIMING FEBRUARY 16-22, 2014 AS NATIONAL ENGINEERS' WEEK IN CHULA VISTA City of Chula Vista Page 1 of 1 Printed on 2/7/2014 powered by LegistarTM _ City of Chula Vista QTR CHVIAVISTA Legislation Details (With Text) File#: 14-0022 Name: Type: Consent Item Status: Agenda Ready File created: 1/13/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: APPROVAL OF MINUTES of December 10, 2013. Sponsors: Indexes: Code sections: Attachments: Item 1 - Draft Minutes Date Ver. Action By Action Result 2/11/2014 1 City Council APPROVAL OF MINUTES of December 10, 2013. RECOMMENDED ACTION Council approve the minutes. City of Chula Vista Page 1 of 1 Printed on 2/7/2014 powered by LegistarT"^ DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL AND A SPECIAL MEETING OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA December 10, 2013 2:00 p.m. A Regular Meeting of the City Council and Special Meeting of the Housing Authority of the City of Chula Vista were called to order at 2:04 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL PRESENT: Councilmembers Aguilar (arrived at 2:11 p.m.), Bensoussan, Ramirez (arrived at 2:07 p.m.), Salas, and Mayor Cox ABSENT: None ALSO PRESENT: City Manager Sandoval, City Attorney Googins, City Clerk Norris, and Assistant City Clerk Bigelow Mayor Cox announced, pursuant to AB 23, that she and each Councilmember would receive $50 for their attendance at this Housing Authority meeting, being held simultaneously with the City Council meeting. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Captain Wedge led the Pledge of Allegiance. SPECIAL ORDERS OF THE DAY • OATH OF OFFICE Gloria Ciriza, Commission on Aging City Clerk Norris administered the oath of office to Commissioner Ciriza, and Deputy Mayor Bensoussan presented her with a certificate of appointment. • PRESENTATION OF A PROCLAMATION TO CHULA VISTA POLICE DEPARTMENT CAPTAIN GARY WEDGE COMMENDING HIM ON 37 YEARS OF SERVICE TO THE CITY OF CHULA VISTA Chief Bejarano introduced Captain Wedge. Mayor Cox read the proclamation and Councilmember Salas presented it to Mr. Wedge. • PRESENTATION OF A PROCLAMATION TO CHULA VISTA POLICE DEPARTMENT AGENT THOMAS "TA" BROWN COMMENDING HIM ON 28 YEARS OF SERVICE TO THE CITY OF CHULA VISTA Chief Bejarano introduced Agent Brown. Mayor Cox read the proclamation and Councilmember Ramirez presented it to Mr. Brown. Page 1 I Council Minutes December 10,2013 DRAFT • PRESENTATION OF A PROCLAMATION TO CHULA VISTA POLICE DEPARTMENT SERGEANT STEVE FOBES COMMENDING HIM ON 27 YEARS OF SERVICE TO THE CITY OF CHULA VISTA Chief Bejarano introduced Sergeant Fobes. Mayor Cox read the proclamation and Councilmember Aguilar presented it to Mr. Fobes. • RECOGNITION OF PUBLIC WORKS EMPLOYEES JUAN FIGUEROA, PEGGIE MAZZEPPI, MARCELINO SILVA AND MIKE STROMP AND POLICE DEPARTMENT SERGEANT ERIC TARR, OFFICERS CJ BURROUGHS, GLENN GOSSETT, NATE O'NEIL, DAVID DITOMASO AND BRIAN CARTER FOR THEIR HEROIC ACTS IN EVACUATING PEOPLE FROM A FIFTH AVENUE SENIOR HOUSING RESIDENCE AS A FIRE ERUPTED Chief Hanneman recognized Public Works employees Figueroa, Mazzeppi, Silva, and Stromp, and Police Department employees Tarr, Burroughs, Gossett, O'Neil, Ditomaso, and Carter for their acts to evacuate residents from a structure fire. • PRESENTATION BY DR. EMERALD RANDOLPH REGARDING THE 2013 CHRISTMAS IN OCTOBER PROGRAM IN THE CITY OF CHULA VISTA Dr. Randolph made a presentation, played a video showing the efforts of volunteers, and thanked supporters who made donations and volunteered time for the 2013 Christmas in October program. Recipients of services provided through Christmas in October expressed their gratitude. CONSENT CALENDAR Mayor Cox stated that Item 3H would be continued to the meeting of December 17, 2013. 1. APPROVAL OF MINUTES of November 5, 2013. Staff recommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS Letter of resignation from Todd Glanz, Board of Ethics Recommendation: Council accept the resignation. 3. A. ORDINANCE NO. 3283 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.06 OF THE CHULA VISTA MUNICIPAL CODE, ADMINISTRATIVE PROVISIONS FOR THE TECHNICAL BUILDING CODE (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) B. ORDINANCE NO. 3284 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.08 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA Page 2 Council Minutes December 10,2013 DRAFT BUILDING CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) C. ORDINANCE NO. 3285 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.09 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA RESIDENTIAL CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) D. ORDINANCE NO. 3286 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.10 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA REFERENCED STANDARDS CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) E. ORDINANCE NO. 3287 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.12 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA GREEN BUILDING STANDARDS CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) F. ORDINANCE NO. 3288 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.16 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA MECHANICAL CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) G. ORDINANCE NO. 3289 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.24 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA ELECTRICAL CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) H. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA ENERGY CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) L ORDINANCE NO. 3290 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.28 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA PLUMBING CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) J. ORDINANCE NO. 3291 OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.36 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA FIRE CODE, 2013 EDITION (SECOND READING AND ADOPTION) (Director of Development Services and Fire Chief) Staff recommendation: Council adopt ordinances A-G, I and J, and continue ordinance H to the meeting of December 17, 2013. Page 3 Council Minutes December 10,2013 DRAFT 4. ORDINANCE NO. 3292 OF THE CITY OF CHULA VISTA AMENDING THE ZONING MAP ESTABLISHED BY CHULA VISTA MUNICIPAL CODE SECTION 19.18.010 TO REZONE TWO (2) PARCELS, TOTALING 0.38 ACRES, LOCATED ON THE NORTH SIDE OF ALVARADO STREET, FROM A MULTI-FAMILY RESIDENTIAL ZONE (R-3) TO A MIXED-USE ZONE (UC-1) (SECOND READING AND ADOPTION) (Director of Development Services) Staff recommendation: Council adopt the ordinance. 5. RESOLUTION NO. 2013-247 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT BETWEEN SLF IV/MCMILLIN MILLENIA JV, LLC, AND THE CITY OF CHULA VISTA FOR THE EASTERN URBAN CENTER (MILLENIA) PROJECT (CHULA VISTA TRACT NO. 09-03) (Director of Development Services) Staff recommendation: Council adopt the resolution. 6. RESOLUTION NO. 2013-248 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TWO COUNTY OF SAN DIEGO OPERATIONAL AREA MUTUAL AID AGREEMENTS FOR: BUILDING SAFETY INSPECTIONS AND PUBLIC WORKS (Director of Development Services and Public Works) Staff recommendation: Council adopt the resolution. 7. RESOLUTION NO. 2013-249 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE BIDDING REQUIREMENT FOR PROFESSIONAL SERVICES BECAUSE OF THE SOLE SOURCE EXCEPTION AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A TWO-PARTY CONTRACT WITH THE UNIVERSITY OF CALIFORNIA, SAN DIEGO, SCHOOL OF MEDICINE, DEPARTMENT OF EMERGENCY MEDICINE ("UCSD") FOR MEDICAL DIRECTOR SERVICES FOR THE ALS PROGRAM (Fire Chief) Staff recommendation: Council adopt the resolution. 8. RESOLUTION NO. 2013-250 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $195,000 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY, TRANSFERRING $56,000 FROM SUPPLIES AND SERVICES TO CAPITAL, AND APPROPRIATING $195,000 TO THE POLICE GRANT FUND FOR OPERATION STONEGARDEN(4/5 VOTE REQUIRED) (Police Chief) Staff recommendation: Council adopt the resolution. Page 4 Council Minutes December 10,2013 DRAFT 9. RESOLUTION NO. 2013-251 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL COMPETITIVE BID PROCEDURE AND APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES FOR DOMESTIC VIOLENCE RESPONSE AND ADVOCACY SERVICES (Police Chief) Staff recommendation: Council adopt the resolution. 10. RESOLUTION NO. 2013-252 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA CAFETERIA BENEFITS PLAN FOR 2014 (Director of Human Resources) Staff recommendation: Council adopt the resolution. 11. RESOLUTION NO. 2013-253 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONTRACT WITH TBWB STRATEGIES TO PROVIDE POLLING AND PUBLIC OUTREACH CONSULTANT SERVICES AND APPROPRIATING $106,800 ACCORDINGLY (4/5 VOTE REQUIRED) (City Manager) Staff recommendation: Council adopt the resolution. 12. RESOLUTION NO. 2013-254 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT FROM CALRECYCLE FOR THE LOCAL GOVERNMENT WASTE TIRE AMNESTY PROGRAM AND APPROPRIATING $28,826 AS UNANTICIPATED REVENUE TO THE PERSONNEL ($9,280) AND SUPPLIES AND SERVICES ($19,546) CATEGORIES OF THE WASTE MANAGEMENT FUND (4/5 VOTE REQUIRED) (Director of Public Works) Staff recommendation: Council adopt the resolution. 13. RESOLUTION NO. 2013-255 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RESCINDING THE REJECTION OF OFFERS OF DEDICATION FOR PORTIONS OF EAST PALOMAR STREET AND ACCEPTING THOSE OFFERS PURSUANT TO SECTION 66477.2 OF THE SUBDIVISION MAP ACT (Director of Public Works) Staff recommendation: Council adopt the resolution. 14. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT ORDINANCE TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON CERTAIN CITY PARK PROPERTY AND TO AUTHORIZE THE DIRECT BILLING OF THE CITY FOR SUCH SPECIAL TAX (FIRST READING) (Director of Public Works and Director of Development Services) Staff recommendation: Council place the ordinance on first reading. Page 5 Council Minutes December 10,2013 DRAFT 15. RESOLUTION NO. 2013-256 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A PURCHASE AGREEMENT IN THE AMOUNT OF $303,582.66 FOR EIGHT LIGHT- AND MEDIUM-DUTY VEHICLES IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF REQUEST FOR BID NUMBER BO1-13/14 (Director of Public Works) Staff recommendation: Council adopt the resolution. ACTION: Mayor Cox moved to approve staffs recommendations and offered Consent Calendar Items 1 through 15, headings read, text waived. Councilmember Salas seconded the motion, and it carried by the following vote: Yes: 5 —Aguilar, Bensoussan, Ramirez, Salas, and Cox No: 0 Abstain: 0 ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS There were none. PUBLIC HEARINGS 16. CONSIDERATION OF ESTABLISHING A CLEAN ENERGY COMMUNITY FACILITIES DISTRICT AND APPROVAL OF RELATED DOCUMENTS (Director of Public Works) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. Environmental Resources Manager Reed presented information on the item. Mayor Cox opened the public hearing. Randy Walsh, representing San Diego Energy Desk, distributed written communications to the Council and spoke in support of amendments to some of the program guidelines. Dan Schaefer and Crystal Crawford, representing Ygrene Energy Fund, provided additional information and answered Council questions about the item. There being no further members of the public who wished to speak, Mayor Cox closed the public hearing. Page 6 1 Council Minutes December 10,2013 DRAFT ACTION: Deputy Mayor Bensoussan moved to adopt Resolution No. 2013-257 and place the below ordinance on first reading, headings read, text waived. Councilmember Ramirez seconded the motion, and it carried by the following vote: Yes: 5 —Aguilar, Bensoussan, Ramirez, Salas, and Cox No: 0 Abstain: 0 A. RESOLUTION NO. 2013-257 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2013-1 (CLEAN ENERGY PROGRAM), CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND PROVIDING FOR THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE OR REFINANCE THE ACQUISITION, INSTALLATION, AND IMPROVEMENT OF ENERGY EFFICIENCY, WATER CONSERVATION, AND RENEWABLE ENERGY IMPROVEMENTS PERMANENTLY AFFIXED TO OR ON REAL PROPERTY AND IN BUILDINGS; AND AUTHORIZING VALIDATION ACTION B. ORDINANCE OF THE CITY OF CHULA VISTA LEVYING A SPECIAL TAX FOR FISCAL YEAR 2013/2014 AND FOLLOWING FISCAL YEARS SOLELY WITHIN AND RELATING TO COMMUNITY FACILITIES DISTRICT NO. 2013-1 (CLEAN ENERGY PROGRAM), CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA (FIRST READING) 17. CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED FINANCING OF THE ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT KIKU GARDENS APARTMENTS (1260 THIRD AVENUE) (Director of Development Services) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. Housing Manager Hines and Project Coordinator Dorado presented information on the item. Mayor Cox opened the public hearing. There being no members of the public who wished to speak,Mayor Cox closed the public hearing. ACTION: Councilmember Ramirez moved to adopt Resolution No. 2013-258 of the City Council and Resolution No. 2013-059 of the Housing Authority, headings read, text waived. Deputy Mayor Bensoussan seconded the motion, and it carried by the following vote: Yes: 5 —Aguilar, Bensoussan, Ramirez, Salas, and Cox No: 0 Abstain: 0 Page 7 1 Council Minutes December 10,2013 DRAFT A. RESOLUTION NO. 2013-258 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR KIKU GARDENS APARTMENTS B. RESOLUTION NO. 2013-059 OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR A PROPOSED ACQUISITION AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT KIKU GARDENS APARTMENTS ACTION ITEMS Mayor Cox recessed the meeting at 3:55 p.m. The Council reconvened at 4:05 p.m., with all members present. 18. CONSIDERATION OF APPROVING THE OPERATION OF A WI-FI COFFEE CAFE (Director of Economic Development) Director of Economic Development Meacham and Principal Economic Development Specialist Ruiz presented information on the item. Alejandro Lopez Welti, representing Cool Down Coffee, answered Council questions regarding amenities at the facility. ACTION: Deputy Mayor Bensoussan moved to adopt Resolution No. 2013-259, heading read, text waived. Councilmember Salas seconded the motion, and it carried by the following vote: Yes: 5 —Aguilar, Bensoussan, Ramirez, Salas, and Cox No: 0 Abstain: 0 RESOLUTION NO. 2013-259 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LICENSE AND OVERSIGHT AGREEMENT WITH AYAWEL USA, LLC, DBA COOL DOWN COFFEE, TO OPERATE A WI-FI COFFEE CAFE AT THE E STREET TRANSIT CENTER 19. CONSIDERATION OF AMENDING THE COMPENSATION SCHEDULE AND CLASSIFICATION PLAN (Director of Public Works) Assistant Director of Public Works Quilantan and Senior Management Analyst Lengyel presented information on the item. Page 8 1 Council Minutes December 10,2013 DRAFT ACTION: Mayor Cox moved to adopt Resolution Nos. 2013-260 and 2013-261, headings read, text waived. Councilmember Ramirez seconded the motion, and it carried by the following vote: Yes: 5 —Aguilar, Bensoussan, Ramirez, Salas, and Cox No: 0 Abstain: 0 A. RESOLUTION NO. 2013-260 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE COMPENSATION SCHEDULE AND CLASSIFICATION PLAN TO REFLECT THE ADDITION OF A FLEET INVENTORY CONTROL SPECIALIST (4/5 VOTE REQUIRED) B. RESOLUTION NO. 2013-261 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2013/2014 AUTHORIZED POSITION COUNT FOR THE CENTRAL GARAGE OPERATIONS FUND TO ADD A 1.0 FTE EQUIPMENT MECHANIC AND A 1.0 FTE FLEET INVENTORY CONTROL SPECIALIST AND APPROPRIATING FUNDS ACCORDINGLY (4/5 VOTE REQUIRED) 20. DISCUSSION ON THE CITY'S STRATEGIC PLAN Administrative Services Manager Chew and Assistant to the City Manager Mills presented information on the City's Strategic Plan. Budget &Analysis Manager Aguilar,Assistant Director of Development Services Crockett, Recreation Director McClure, Captain Ficacci, and Marketing and Communications Manager Steinberger provided examples of some of the achievements made through the strategic plan program. OTHER BUSINESS 21. CITY MANAGER'S REPORTS City Manager Sandoval expressed condolences on behalf of the City to Peace Officer Martinez, whose 7-month-old son passed away. City Manager Sandoval paid tribute to Megan Thomas, daughter of Bob Thomas, former Planning Commissioner. Mr. Thomas spoke regarding Megan's commitment to Chula Vista and thanked City staff for honoring her. City Manager Sandoval announced that the City's bond rating was upgraded a second time in one year. He also spoke regarding the business cluster program and the City's goal to strengthen its relationship with Mexico. Page 9 1 Council Minutes December 10,2013 DRAFT 22. MAYOR'S REPORTS Mayor Cox announced the recent opening of an Applebee's Restaurant in Chula Vista. She also announced upcoming City Hall holiday closures. Mayor Cox encouraged members of the public to consider adopting an animal from the City's Animal Care Facility. 23. COUNCILMEMBERS' COMMENTS Councilmember Ramirez thanked Chief Hanneman for recognizing the City employees under the Special Orders of the Day. At the request of Councilmember Ramirez, there was consensus of the Council to notice the substation relocation item that would be discussed at the meeting of December 17, 2013, as time certain for 5:00 p.m. Councilmember Ramirez: Council consideration of a meeting regarding alcohol-related issues in the City of Chula Vista. Chief Bejarano provided an update on the challenges and staff efforts related to managing alcohol-related issues in several areas of the City. At the request of Councilmember Ramirez, there was consensus to hold the next Council workshop on the topic of public safety to discuss alcohol-related issues. At the request of Councilmember Aguilar, there was consensus of the Council to notice the sewer rate increase item that would be discussed at the meeting of December 17, 2013, as time certain for 3:00 p.m. City Manager Sandoval announced that there was a power outage in the southwestern portion of the City and that SDG&E was working on bringing power back to the area. City Attorney Googins reported on his office's Brown Act and Ethics presentation at the City Council Workshop and stated that a video of the meeting would be placed on the City's website when available. CLOSED SESSION Mayor Cox stated that Item 24 would be pulled from the agenda and would not be heard by the Council. 24. CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(c) One Case Page 10 1 Council Minutes December 10,2013 DRAFT ADJOURNMENT At 6:06 p.m., Mayor Cox adjourned the meeting to the next Regular City Council Meeting on December 17, 2013, at 2:00 p.m., in the Council Chambers. Kerry K. Bigelow, Assistant City Clerk Page 11 I Council Minutes December 10,2013 # City of Chula Vista GIN Of VTA Legislation Details (With Text) File#: 14-0069 Name: Type: Consent Item Status: Agenda Ready File created: 2/6/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: WRITTEN COMMUNICATIONS Letter of resignation from Luz Camacho, Cultural Arts Commission. Sponsors: Indexes: Code sections: Attachments: Item 2 - Letter of Resignation Date Ver. Action By Action Result 2/11/2014 1 City Council WRITTEN COMMUNICATIONS Letter of resignation from Luz Camacho, Cultural Arts Commission. RECOMMENDED ACTION Council accept the resignation. City of Chula Vista Page 1 of 1 Printed on 2/7/2014 powered by LegistarT" From: _ On Behalf Of Luz Camacho Sent: Wednesday, February 05, 2014 4:09 PM To: Yeelin Cheung Cc: Allen Gore; Aracely Rodriguez; Christine Moore; Jason Paguio; Jennifer Rodriguez; Muriel Kulikowski; Willie Harris; Stephanie Loney Subject: Re: Cultural Arts Commission Meeting - Feb 10 at S pm Thanks for the information; but I do regret to inform you all that I will have to resign.. it seems that I am attending to other obligations each time we have a meeting. Please know that I have been honored to be part of the CST Arts Commission, and I have enjoyed meeting all of you. Please let me know if it will be appropriate for me to make recommendations for possible future Board members. _ City of Chula Vista CITE CHVIAVISTA Legislation Details (With Text) File#: 14-0043 Name: Type: Consent Item Status: Agenda Ready File created: 1/24/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 17.10 (PARKLANDS AND PUBLIC FACILITIES) RELATING TO THE PARK ACQUISITION AND DEVELOPMENT FEE REQUIREMENT FOR HOTELS AND MOTELS (SECOND READING AND ADOPTION) Sponsors: Indexes: Code sections: Attachments: Item 3 - Ordinance Item 3 - Ordinance Exhibit Date Ver. Action By Action Result 2/11/2014 1 City Council ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 17.10 (PARKLANDS AND PUBLIC FACILITIES) RELATING TO THE PARK ACQUISITION AND DEVELOPMENT FEE REQUIREMENT FOR HOTELS AND MOTELS (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. City of Chula Vista Page 1 of 1 Printed on 2/7/2014 powered by LegistarTM SECOND READING AND ADOPTION ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 17.10 (PARKLANDS AND PUBLIC FACILITIES) RELATING TO THE PARK ACQUISITION AN DEVELOPMENT FEE REQUIREMENT FOR HOTELS AND MOTELS WHEREAS, Chapter 17.10 of the Municipal Code sets forth the requirements for the dedication and construction of parklands as a condition of new development; and WHEREAS, Section 17.10.120 of the Municipal Code currently requires new hotels and motels to dedicate and construct parklands; and WHEREAS,the City's standard for park lands is 3 acres per 1,000 population; and WHEREAS, hotels and motels do not drive changes in population. NOW THEREFORE the City Council of the City of Chula Vista does hereby ordain as follows: Section I. Chula Vista Municipal Code Chapter 17.10 is hereby amended to read as shown in Attachment A, attached hereto and incorporated herein by this reference. Section IL Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid,unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. \\10.176.2.252\granicus_nas\insite\files\CHUL\Attachments\62cf4803-57e0-442e-bc7d-15d6aa8ca50c.doc 1/17/2014 7:52 AM Ordinance No. Page 2 Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented By: Approved as to form by: Kelly G. Broughton, FASLA Glen R. Googins Development Services Director City Attorney \\10.176.2.252\granicus_nas\insite\files\CHUL\Attachments\62cf4803-57e0-442e-bc7d-15d6aa8ca50c.doc 1/17/2014 7:52 AM Chapter 17.10 PARKLANDS AND PUBLIC FACILITIES* Sections: 17.10.010 Dedication of land and development of improvements for park and recreational purposes. 17.10.020 Determination of park and recreational requirements benefiting regulated subdivisions. 17.10.030 Application. 17.10.040 Area to be dedicated—Required when—Amounts for certain uses. 17.10.050 Park development improvements — Specifications. 17.10.060 Criteria for area to be dedicated. 17.10.070 In-lieu fees for land dedication and/or park development improvements. 17.10.080 Limitation on use of land and/or fees. 17.10.090 Commencement of park development. 17.10.100 Collection and distribution of fees. 17.10.110 Periodic review and amendment authorized. 17.10.120 Geographical distribution of in-lieu fees for land dedication. * Prior legislation: Ords. 1668, 1806, 1858, 1961, 2243, 2506, 2592 and 2616. 17.10.010 Dedication of land and development of improvements for park and recreational purposes. ....................................................................................................................................................................................................................................................................................................................................... Pursuant to the authority granted by Section 66477 of the Government Code of the state, every subdivider, or developer of new residential developments, shall, for the purpose of providing neighborhood and community park and recreational facilities directly benefiting and serving the residents of the regulated subdivision, or in the case of a development not requiring a subdivision of land,benefiting and serving the residents of those new developments, dedicate a portion of the land and develop improvements thereon or in lieu thereof pay fees for each dwelling unit in the subdivision or residential development, or do a combination thereof, as required by the city in accordance with this chapter. The dedication, improvement, or payment of fees in lieu thereof or combination thereof shall be applicable to all residential subdivisions and new residential developments not required to file a subdivision plan of any type allowed under the various and several residential zones of the city and shall be in addition to any residential construction tax required to be paid pursuant to Chapter 3.32 CVMC. (Ord. 2945 § 1, 2004; Ord. 2886 § 1, 2002). 17.10.020 Determination of park and recreational requirements benefiting regulated subdivisions. ....................................................................................................................................................................................................................................................................................................................................... The park and recreational facilities for which dedication of land and improvements thereon and/or payment of a fee is required by this chapter shall be those facilities as herein set forth in CVMC 17.10.050 and as generally set forth in the park and recreation master plan and in the park and recreational element of the general plan of the city adopted by Resolution No. 3519 on September 22, 1964, and as thereafter amended. (Ord. 2886 § 1, 2002). 17.10.030 Application. ....................................................................................................................................................................................................................................................................................................................................... The provisions of this chapter shall apply to all subdivisions and divisions created by parcel maps and residential developments not requiring final subdivision or parcel maps, excepting therefrom industrial and completely commercial subdivisions and those subdivisions or divisions of land for which tentative subdivision or parcel maps have been filed within 30 days after the effective date of this chapter. (Ord. 2945 § 2, 2004; Ord. 2886 § 1, 2002). 17.10.040 Area to be dedicated—Required when—Amounts for certain uses. ....................................................................................................................................................................................................................................................................................................................................... The amount of parkland dedication required, in accordance with CVMC 17.10.010 through 17.10.110, is based on a standard of three acres per 1,000 people and shall be offered at the time of filing of the final map, or in the case of a residential development that is not required to submit a final map, at the time of the first building permit application. The area to be dedicated shall be as follows: A. Single-family dwelling units, including single-family detached homes and detached condominiums, 3.52 persons per dwelling unit, 460 square feet per unit, or one acre per 95 units; B. Multiple-family dwelling units, including attached condominiums, townhouses, duplexes, triplexes and apartments, 2.61 persons per dwelling unit, 341 square feet per unit, or one acre per 128 units; C. Mobilehomes, 1.64 persons per dwelling unit, 214 square feet per unit, or one acre per 203 units; Development projects which have received tentative map approval as of November 12, 2002, shall not be required to contribute additional acreage based on the revised persons per dwelling factors as set forth above. (Ord. 2945 § 3, 2004; Ord. 2886 § 1, 2002). 17.10.050 Park development improvements— Specifications. ....................................................................................................................................................................................................................................................................................................................................... In addition to the dedication of land as required in CVMC 17.10.040, it shall be the responsibility of the subdivider or building permit applicant to develop all or a portion of such land for neighborhood or community park purposes to the satisfaction of the director of recreation and the director of general services. All parks shall include, to the satisfaction of the city, the following elements; meet the following minimum standards; and will be designed, developed, and maintained in accordance with the requirements of the city landscape manual and the Chula Vista parks and recreation master plan: A. Grading shall be in accordance with the grading ordinance, street design manual, the Chula Vista parks and recreation master plan, and the city landscape manual. B. Improvements that may be required by the city may include: 1. Drainage system. 2. Street improvements. 3. Parking lot with lighting. 4. Concrete circulation system. 5. Security lighting system. 6. Park fixtures, including, but not limited to, identification and informational signage, picnic tables,benches, trash receptacles, hot ash containers, drinking fountains and bike racks, shall be provided and installed. 7. Landscaping, including trees, shrubs, ground cover, and turf. 8. Automatic irrigation system. 9. Restroom/maintenance facility. 10. Play areas,with equipment for preschoolers and primary school-age children, shall be installed. Disabled individual accessible surfacing shall be installed. 11. One picnic table shall be provided for every 600 people. Half of required number of picnic tables shall be provided under a shelter. 12. The following sports facilities (night lighting may be required for all of the following): a. One tennis court shall be provided for every 3,200 people. b. One baseball (organized adult) field shall be provided for every 12,200 people. c. One baseball field (organized youth) shall be provided for every 4,400 people. d. One baseball (practice/informal) field shall be provided for every 3,300 people. e. One softball (organized adult) field shall be provided for every 7,900 people. f One softball (organized youth)field shall be provided for every 12,700 people. g. One softball (practice/informal) field shall be provided for every 2,850 people. h. One basketball court shall be provided for every 2,150 people. i. One soccer field(organized games) shall be provided for every 5,400 people. j. One soccer field(practice/informal) shall be provided for every 2,450 people. C. All utilities shall be extended to the property line. (Ord. 2945 § 4, 2004; Ord. 2886 § 1, 2002). 17.10.060 Criteria for area to be dedicated. ....................................................................................................................................................................................................................................................................................................................................... Acceptance of land for parkland is at the city council's discretion, and in exercising its discretion, the council may consider the following criteria, in addition to any other the council considers relevant: A. Topography, soils, soil stability, and drainage location of land in subdivision available for dedication. B. Size and shape of the subdivision and land available for dedication. C. Physical relationship of the site to the surrounding neighborhood. D. Location of the site with regard to accessibility to the residents of the neighborhood and its contribution to neighborhood security. E. The amount, usability, and location of publicly owned property available for combination with dedicated lands in the formation of public park and recreation facilities. F. Recommendation of the parks and recreation commission. An offer of dedication may be accepted or rejected by the city council. G. Consistency with the goals and policies contained in the Chula Vista parks and recreation master plan. (Ord. 2886 § 1, 2002). 17.10.070 In-lieu fees for land dedication and/or park development improvements. ....................................................................................................................................................................................................................................................................................................................................... A. In-Lieu Fees for Land Dedication. If, in the judgment of the city, suitable land does not exist within the subdivision or within the development if it is not part of a subdivision, or for subdivisions containing 50 lots or less, the payment of fees in lieu of land shall be required. In such cases, the required fee(s) shall be based on the area to be dedicated as set forth in CVMC 17.10.040. However, when a condominium project, stock cooperative or community apartment project exceeds 50 dwelling units, dedication of land may be required notwithstanding that the number of parcels may be less than 50. Where the city deems that a combination of dedication and payment, as provided in this chapter, would better serve the public and the park and recreation needs of the future residents of a particular subdivision or residential development, it may require such combination; provided, however, the city council may, by resolution, waive all or any portion of said dedication or in- lieu fee requirements in the interests of stimulating the construction of housing for low- and moderate-income families. B. In-Lieu Fees for Park Development Improvements. If, in the judgment of the city, suitable land does not exist within the subdivision or within the development if it is not part of a subdivision, or for subdivisions containing 50 lots or less, the payment of fees in lieu of developing improvements shall be required. In such cases, the amount of the required fee(s) shall be based on the improvements required in CVMC 17.10.050. However, when a condominium project, stock cooperative or community apartment project exceeds 50 dwelling units, improvements may be required notwithstanding that the number of parcels may be less than 50. Where the city deems that a combination of improvements and payment, as provided in this chapter, would better serve the public and the park and recreation needs of the future residents of a particular subdivision or residential development, it may require such combination; provided, however, the city council may, by resolution, waive all or any portion of said improvements or in-lieu fee requirements in the interests of stimulating the construction of housing for low- and moderate-income families. In the event the city determines that the improvement of the parkland shall be delayed for a substantial period of time after the parkland has been dedicated, the subdivider or building permit applicant shall not be required to install such improvements, but instead shall pay the required fee(s) for the value of improvements required in CVMC 17.10.050. 17.10.080 Limitation on use of land and/or fees. ....................................................................................................................................................................................................................................................................................................................................... The amount of land, improvements or in-lieu fees, or combination thereof, received under this chapter shall be used for the purpose of providing neighborhood and community park and recreational facilities to serve the subdivision or residential development for which received. The amount and location of the land or in-lieu fees, or combination thereof, shall bear a reasonable relationship to the use of the park and recreational facilities by the future inhabitants of the subdivision or residential development. (Ord. 2945 § 6, 2004; Ord. 2886 § 1, 2002). 17.10.090 Commencement of park development. ....................................................................................................................................................................................................................................................................................................................................... The city will acquire land for park purposes within a subdivision as soon as sufficient funds are available. Any fees collected under this chapter shall be committed within five years after the payment of such fees or the issuance of building permits on one-half of the lots created by this subdivision,whichever occurs later. (Ord. 2886 § 1, 2002). 17.10.100 Collection and distribution of fees. ....................................................................................................................................................................................................................................................................................................................................... A. Prior to the recordation by the city of a final subdivision map or recordation by the city of a parcel map or release of either a final subdivision map or parcel map to a developer for recordation or, prior to the issuance of the first building permit for a development that is not required to submit either a final subdivision map or a parcel map, any required fees shall have been paid to the city unless an agreement has been entered into between the city, approved by the city council, and the map applicant or building permit applicant providing for the subsequent payment of the fee, but in no event later than 60 days after map approval or at the time of the first building permit issuance if no final subdivision map, parcel map or separate agreement exists. Said agreement shall provide that such payment shall be, to the satisfaction of the city manager and city attorney, adequately secured by sufficient surety or letter of credit, and shall further provide for interest from date of final map approval or the first building permit issuance at City's average earnings rates, computed and compounded quarterly, experienced by the City on its average investments (as determined by the City) ("base interest rate"), for the first 60 days after map approval or the first building permit issuance, and thereafter at the base interest rate plus two percentage points until paid, together with any attorney fees and costs incurred in enforcing the agreement. Notwithstanding any other provision of law, the City may withhold final or interim inspection of units for which building permits may have been issued and may withhold issuance of additional building permits, certificates of occupancy if applicable, or any other processing of entitlements on any property or improvements included within the territory of the map or approved development plan so approved or otherwise owned by applicant,until the required fees are received by the City. Any land to be contributed for the purposes outlined in this chapter shall be dedicated to the City and shown on the final subdivision or parcel map or approved development plan at the time of approval. The Director of Finance shall be responsible for the collection and distribution of fees as set forth in this chapter. B. Planned developments shall be eligible to receive a credit as determined by the City Council, against the amount of land required to be dedicated, or the amount of the fee imposed, for the value of private open space within the development which is usable for active recreational uses. Such credit, if given, shall be determined on a case-by-case basis. (Ord. 3163, 2010; Ord. 2945 § 7, 2004; Ord. 2886 § 1, 2002). 17.10.110 Periodic review and amendment authorized. ....................................................................................................................................................................................................................................................................................................................................... Costs of constructing park facilities, population density, and local conditions change over the years, and, as such, the specified formulas for the calculation and payment of fees for acquisition and development of park sites as stated in this chapter is subject to and shall be periodically reviewed and amended by the city council. The development portion of the fee shall be adjusted, starting on October 1, 2004, and on each October 1st thereafter, based on the one-year change (from July to July) in the 20-City Construction Cost Index, as published monthly in the Engineering News Record. Adjustments to the fees based upon the Construction Cost Index shall be automatic and shall not require further action by the city council. The park development component of the fee, as well as the land acquisition component of the fee, may also be reviewed and amended by city council as necessary to reflect current market conditions, as well as sound engineering, financing, and planning information. Adjustments to the fees resulting from these discretionary reviews may be made by resolution amending the master fee schedule. (Ord. 2971 § 1, 2004; Ord. 2886 § 1, 2002). 17.10.120 Geographical distribution of in-lieu fees for land dedication. ....................................................................................................................................................................................................................................................................................................................................... A. The collection of in-lieu fees for land dedication will be separated into two geographical categories, areas east of the I-805 and areas west of the I-805 and the fee for these areas will be as follows: 1. Areas east of I-805. Parkland Acquisition Single-Family Multifamily Mobile Home DUs per Park Acre 95 128 203 Acquisition Cost Per Acre $1,204,200 $1,204,200 $1,204,200 Proposed In-Lieu Fee Per Unit $12,676 $9,408 $5,932 2. Areas west of I-805. Parkland Acquisition Single-Family Multifamily Mobile Home DUs per Park Acre 95 128 203 Acquisition Cost/Acre $474,443 $474,443 $474,443 Current In-Lieu Fee Per Unit $4,994 $3,707 $2,337 (Ord. 3026 § 1, 2005). _ City of Chula Vista CITE CHVIAVISTA Legislation Details (With Text) File#: 13-0213 Name: Grant of Easements and Maintenance agreement for Otay Ranch Village 2 Neighborhood R-6 Type: Consent Item Status: Agenda Ready File created: 12/24/2013 In control: City Council On agenda: 2/11/2014 Final action: Title: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT BETWEEN SR V-2 R-6, LLC, AND THE CITY OF CHULA VISTA FOR OTAY RANCH VILLAGE 2 NORTH R-6 (CHULA VISTA TRACT NO. 11-04) Sponsors: Indexes: Code sections: Attachments: Item 4 - Resolution Item 4 - Exhibit A Date Ver. Action By Action Result 2/11/2014 1 City Council RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT BETWEEN SR V-2 R-6, LLC, AND THE CITY OF CHULA VISTA FOR OTAY RANCH VILLAGE 2 NORTH R-6 (CHULA VISTA TRACT NO. 11-04) RECOMMENDED ACTION Council adopt the resolution. SUMMARY The proposed action would allow and obligate SR V-2 R-6, LLC (Developer), developer of Otay Ranch Village 2 Neighborhoods R-6, or its successor in interest to perpetually maintain the landscaping and other private facilities within the right-of-way. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"as defined under Section 15378(b)(2) of the State CEQA Guidelines; 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. BOARD/COMMISSION RECOMMENDATION Not applicable DISCUSSION On May 10, 2013, SR V-2 R-6, LLC, filed Map No. 15914 for the Otay Ranch Village 2 North Neighborhood R-6 (Final Map) City of Chula Vista Page 1 of 2 Printed on 2/7/2014 powered by LegistarTM File #: 13-0213, Version: 1 Otay Ranch Village 2 North Neighborhood R-6 is located south of Olympic Parkway, west of La Media Road and north of Santa Diana Road. As part of the Supplemental Subdivision Improvement Agreement for the Final Map, the Developer was required to enter into a Grant of Easements, License and Maintenance Agreement (Agreement) with the City. The purpose of this Agreement (Exhibit "A") is to allow the Developer, and ultimately the Home Owner's Association, to privately maintain certain improvements within the public right of way. Some of the privately maintained improvements include, but are not limited to: street trees, landscaping and private storm drains. For a complete description of the improvements to be maintained, see Exhibit «A 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. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The adoption of this Resolution approving a Grant of Easements, License and Maintenance Agreement will address the following 3 goals: • Operational Excellence: Collaborate with residents and businesses to provide responsive and responsible public service by implementing effective and efficient operations. • Economic Vitality: Strengthen and diversify the City's economy by supporting and advancing existing businesses; targeting and attracting new businesses' promoting balanced land use decisions; and engaging the community to reinvest in the city. • Healthy Community: Protect resources and environmental health for both current residents and future generations. Foster the health of our physical environment through balanced, connected and sustainable land uses. CURRENT YEAR FISCAL IMPACT There is no impact to the General Fund. The Developer will cover all costs and fees associated with the Agreement. ONGOING FISCAL IMPACT There is no impact to the General Fund. Developer, its agents, or successor in interest, are responsible for any costs related to the execution of the Agreement. ATTACHMENTS Exhibit A: Grant of Easements License and Maintenance Agreements for Otay Ranch Village 2 Neighborhood R-6 City of Chula Vista Page 2 of 2 Printed on 2/7/2014 COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT BETWEEN SR V-2 R-6, LLC, AND THE CITY OF CHULA VISTA FOR OTAY RANCH VILLAGE 2 NORTH R-6 (CHULA VISTA TRACT NO. 11-04) WHEREAS, on May 10, 2013, SR V-2 R-6, LLC ("Developer," or "Owner"), filed Map No. 15914, Chula Vista Tract No. 11-04 Otay Ranch Village 2, Neighborhood R-6 (Final Map); and WHEREAS, as part of the Supplemental Subdivision Improvement Agreement filed with the Final Map, the Developer was required to enter into a Grant of Easements, License and Maintenance Agreement(Agreement)with the City; and WHEREAS, the Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(2) of the State CEQA Guidelines the activity in not subject to CEQA. Thus,no environmental review is required; and WHEREAS, the proposed Agreement would allow and obligate Developer or a successor in interest to perpetually maintain the street trees, landscaping and other facilities within the right-of-way for Otay Ranch Village 2 Neighborhood R-6. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the Grant of Easements, License and Maintenance Agreement between SR V-2 R-6, LLC, and the City of Chula Vista for Otay Ranch Village 2 Neighborhood R-6, in the form presented, as may have been modified by the Council prior to its approval and with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk. Presented by Approved as to form Kelly G. Broughton Glen R. Googins Development Services Director City Attorney \\10.176.2.252\granicus_nas\insite\files\CHUL\Atta chments\252b705e-add8-4b9e-a238-8622d1 c6d17c.doc 1/29/2014 3:14 PM THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Glen City Attorney Dated: bzb GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SR V-2 R-6, LLC FOR CHULA VISTA TRACT NO. 11-04 OTAY RANCH VILLAGE 2 NORTH NEIGHBORHOOD R-6 MAP NO. 1 5914 MONTECITO AT OTAY RANCH RECORDING REQUESTED BY: City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 No transfer fax is due as this is a conveyance to a public agency for less than a fee interest for which no cash consideration has been paid or received. (SPACE ABOVE FOR RECORDER'S USES GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT CHULA VISTA TRACT NO. 11-04, OTAY RANCH VILLAGE 2 NORTH NEIGHBORHOOD R-6, Map No. 15914 MONTECITO AT OTAY RANCH (DEDICATED EASEMENTS) This GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT ("Agreement") is made as of this 18th day of November , 2013, by and between the CITY OF CHULA VISTA, a municipal corporation("City"), and SR V-2 R-6, LLC, a Delaware limited liability company("SR V-2 R-6"). RECITALS A. This Agreement concerns and affects the real property located in Chula Vista, California, more particularly described in Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is part of the overall planned residential development project commonly known as the "Montecito at Otay Ranch" community. For purposes of this Agreement, the term "Project" shall refer to the overall Montecito at Otay Ranch community, including, but not limited to, the Property. B. SR V-2 R-6 is the owner of the Property and a "Merchant Builder" under that certain Declaration of Covenants, Conditions and Restrictions of Montecito at Otay Ranch recorded on October 4, 2005 as Document No. 2005-0856104 in the Office of the County Recorder of San Diego County, California (as amended and supplemented from time to time, "Community Declaration"). The Community Declaration provides for MONTECITO AT OTAY RANCH COMMUNITY ASSOCIATION, a California nonprofit mutual benefit corporation ("Community Association"), to maintain certain areas in the Project. Capitalized terms not otherwise defined herein shall have the same meanings set forth in the Community Declaration. C. The Property is covered by that certain final map ("Final Map")described on Exhibit "A" attached hereto and referenced in the title to this Agreement. D. In order for SR V-2 R-6 to obtain the Final Map and for the City to have assurance for the maintenance of certain areas within the public right-of-ways shown on the Final Map (collectively, "Public Right-of-Ways"), a condition of approval set forth in City Council Resolution No. 2006-157 for approval of the Final Map for the Property ("City Resolution") requires that those areas be maintained. The Public 1 DM244489128.3 10128@013 Right-of-Ways to be dedicated to the public on the Final Map are shown on Exhibit "B" attached hereto as "Cathedral Oaks Road", "Bath Avenue" and "Franceschi Drive". The portions of the Public Right-of- Ways to be maintained consist of(i)landscaped parkways that are described on Exhibit "B"as"Parkway to be Maintained by Community Association" and are collectively referred to herein as the "Community Association Maintained Parkways", and (ii) private storm drains and area drains that are described on Exhibit"C" as "Storm Drains and Area Drains to be Maintained by Community Association"or shown on the City-approved precise grading plans for the Property and are collectively referred to herein as the "Community Association Maintained Storm Drains and Area Drains". E. The City desires to grant to SR V-2 R-6 easements upon, over and across the Public Right-of-Ways for purposes of maintaining the Community Association Maintained Parkways as shown on Exhibit"B", and the Community Association Maintained Storm Drains and Area Drains as shown on Exhibit "C", thereby satisfying the condition of approval in the City Resolution. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as set forth below. 1. Grant of Easements. The City hereby grants to SR V-2 R-6 and its agents, successors and assigns, non-exclusive easements and rights-of-way over and across the Public Right-of-Ways for the purpose of maintaining, repairing and replacing (i) landscaping improvements located in the Community Association Maintained Parkways and (ii)storm drain improvements, including inlets and catch basins, and area drains located in the Community Association Maintained Storm Drains and Area Drains. These grants are made without any warranties of any kind, express or implied, other than the warranty stated in Section 12(f) below. 2. Maintenance Obligations. (a) SR V-2 R-6 to Initially Maintain. SR V-2 R-6 hereby covenants and agrees, at its sole cost and expense, to maintain, repair and replace, or cause to be maintained, repaired or replaced, those improvements within the Community Association Maintained Parkways and the Community Association Maintained Storm Drains and Area Drains, which are described on Exhibit "D" attached hereto, at a level equal to or better than the level of maintenance which is acceptable to the Director of Public Works Operations, at his/her discretion and equivalent to City or Community Facilities District maintained right-of-way facilities. For purposes of this Agreement, the term "Maintenance" or "maintain" shall mean the maintenance, repair, the provision of water and replacement obligations described herein and on Exhibit"D" hereto and shall also include repair and replacement at no cost to the City of any City owned property that is damaged during performance of the maintenance responsibilities pursuant to this Agreement. Exhibit "D" also refers to the maintenance responsibilities of the City. (b) Transfer to Community Association. Upon SR V-2 R-6's transfer of maintenance obligations to the Community Association, (i)the Community Association shall become obligated to perform the obligations so transferred, and (ii)subject to the requirements of Section 3 below having been satisfied, SR V-2 R-6 shall be released from such obligation. Transfer of maintenance obligations to the Community Association may be phased (that is, there may be multiple transfers). Upon commencement of the Community Association's maintenance obligations pursuant to this Section 2, the Community Association Maintained Parkways and the Community Association Maintained Storm Drains and Area Drains shall constitute "Common Maintenance Area" as that term is defined in the Community Declaration. SR V-2 R-6 represents to the City that it intends to, and has the authority to, unilaterally transfer said maintenance obligations to the Community Association and that such transfer has been provided for in Section 3(a)(ii) below. 2 oM2144 89 128.3 1 0/28/2013 3. Assi nrnent by SR V-2 R-6 and Release of SR V-2 R-6. (a) Assignment. Upon SR V-2 R-6's transfer of the maintenance obligations to the Community Association, it is intended by the parties that the Community Association shall perform the maintenance obligations either itself or by contractors. Such transfer will release SR V-2 R-6 from its obligations only if all of the following occur: (i) Community Association Accepts Obligation. The Community Association has unconditionally accepted and assumed all of SR V-2 R-6's obligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of SR V-2 R-6 under this Agreement. The assignment shall also have been approved by the appropriate governing body of the Community Association by resolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreasonably withhold its consent to such assignment. (ii) Community Declaration. The City has confirmed that there have been no modifications to the recorded Community Declaration previously approved by the City, to any of the following provisions: the Community Association shall be responsible for all Community Association Maintained Parkways and Community Association Maintained Storm Drains and Area Drains, the Community Association shall indemnify the City for all claims, demands, causes of actions, liability or loss related to or arising from the maintenance activities, and the Community Association shall not seek to be released by the City from the maintenance obligations of this Agreement, without the prior written consent of the City and one hundred percent (100%) of the holders of first mortgages or owners of the Property. (iii) Community Association Insurance. The Community Association maintains a policy of general liability insurance which at least meets the requirements of Section 11.1.2 of the Community Declaration. The Community Association shall provide the City with a Certificate of Insurance upon procurement of the policy as set forth above. This Section 3(a) may not be amended without the written consent of the Director of Development Services and the City Attorney. (b) Release. When all conditions precedent in Section 3(a) are fulfilled, SR V-2 R-6 shall be released from its obligations under this Agreement, including its security and insurance requirements. SR V-2 R-6 acknowledges that it has a contractual obligation to perform the terms and conditions of this Agreement until and unless released by the City from this Agreement. At least sixty(60) days prior to such transfer, SR V-2 R-6 shall give a notice to the City of SR V-2 R-6's intent to transfer its maintenance obligations herein. 4. Indemnity. SR V-2 R-6 shall defend, indemnify and hold harmless the City, its officers, agents and employees, from any and all actions, suits, claims, damages to persons or property, costs including attorney's fees, penalties, obligations, errors, omissions, demands, liability, or loss of any sort (herein "claims or liabilities"), that may be asserted or claimed by any person, firm, or entity because of or arising out of or in connection with the use, maintenance, or repair of the Community Association Maintained Parkways and/or the Community Association Maintained Storm Drains and Area Drains. SR V-2 R-6 shall not have any liability under this Section by reason of the Community Association's failure to maintain. 5. Indemnity of Community Association. The Community Association's assumption of the maintenance and other obligations hereunder shall be subject to the terms and provisions of this Agreement, including, without limitation, the following indemnification provisions: 3 DM2144 89 1 2 8.3 1012812013 Indemnity. The Community Association shall defend, indemnity and hold harmless the City, its officers, agents and employees, from any and all actions, suits, claims, damages to persons or property, costs including attorney's fees, penalties, obligations, errors, omissions, demands, liability, or loss of any sort (herein "claims or liabilities"), which result from the Community Association's failure to comply with the requirements of the obligations transferred to the Community Association. The Community Association shall not have any liability under this indemnity by reason of another party's failure to maintain, excepting that of any contractor engaged by the Community Association to perform such obligations. It is specifically intended that the City shall have the right to enforce this indemnity. This indemnity may not be amended without the prior written consent of the Director of Development Services and the City Attorney. 6. Agreement Binding Upon Any Successive Parties. This Agreement shall be binding upon SR V-2 R-6 and any successor Merchant Builder to SR V-2 R-6 under the Community Declaration. This Agreement shall be binding upon the Community Association upon transfer of maintenance obligations to the Community Association. This Agreement shall inure to the benefit of the successors and assigns of the parties as to any or all of the Property, 7. Agreement Runs With the Land. The burden of the covenants contained in this Agreement("Burden") is for the benefit of the Property and the City, its successors and assigns, and any successor-in-interest thereto. The City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit such covenants running with the land have been provided, without regard to whether the City has been, remained or is an owner of any particular land or interest therein. If such covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this Agreement and the covenants may be entitled. 8. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California. 9. Effective Date. The terms and conditions of this Agreement shall be effective as of the date this Agreement is recorded in the Office of the County Recorder of San Diego County, California. 10. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the same document. 11. Recording. The parties shall cause this Agreement to be recorded in the Office of the County Recorder of San Diego County, California within thirty(30) days after this Agreement has been approved by the City Council. 12. Miscellaneous Provisions. (a) Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered and received when personally delivered to the party to whom it is directed or, in lieu thereof, when three (3) business days have elapsed following deposit in the United States mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this Section by giving written notice of such change to the other party. 4 DM214 4 99 1 28.3 1 012 8120 13 If To City: CITY OF CHULA VISTA Department of Public Works/Engineering Division 276 Fourth Avenue Chula Vista, California 91910 Attn: City Engineer If To SR V-2 R-6: SR V-2 R-6, LLC c/o Heritage Building & Development, Inc. 4350 Executive Drive, Suite 305 San Diego, California 92121 Attn: Mr. Steven E. Baldwin With a Copy To: DUANE MORRIS LLP 750 B Street, Suite 2900 San Diego, California 92101 Attn: Marianne F.Adriatico, Esq. If To Community MONTECITO AT OTAY RANCH COMMUNITY Association: ASSOCIATION c/o Walters Management 9665 Chesapeake Drive, Suite 300 San Diego, California 92123 Attn: Ms. Melinda Young (b) Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. (c) Entire Agreement. This Agreement, together with any other written document referred to herein, embody the entire agreement and understanding between the parties regarding the subject matter hereof, and any and all prior or contemporaneous oral or written representations, agreements, understandings and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. (d) Recitals, Exhibits. Any recitals set forth above and any attached exhibits are incorporated by reference into this Agreement. (e) Compliance With Laws. In the performance of its obligations under this Agreement, SR V-2 R-6, its agents and employees, shall comply with any and all applicable federal, state and local rules, regulations, ordinances, policies, permits and approvals. (f) A_ uthority of Signatories. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions and/or other actions have been taken so as to enable said signatory to enter into this Agreement_ (g) Modification_ This Agreement may not be modified, terminated or rescinded, in whole or in part, except by written instrument duly executed and acknowledged by the parties hereto, their successors or assigns, and duly recorded in the Office of the County Recorder of San Diego County, California. (h) Severability. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to person or circumstance, shall not be affected thereby and each term, covenant or condition shall be valid and be enforced to the fullest extent permitted by law. 5 DMZ"89128 3 IM812013 (i) Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or its attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting of this Agreement. [Remainder of Page Intentionally Left Blank. Signatures Contained on Next Page] 6 oM214489128.3 1012&12013 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first set forth above. City: CITY OF CHULA VISTA, a municipal corporation By: Cheryl Cox, Mayor By: Its: Attest: By: Donna Norris, City Clerk APPROVED AS TO FORM: By: Glen R. Googins, City Attorney SR V-2 R-6: SR V-2 R-6, LLC, a Delaware limited liability company By: HERITAGE BUILDING AND DEVELOPMENT, Inc., a California corporation Its: Agent By:� � _ Its: C � 7 DW4489128.3 10/28M13 STATE OF CALIFORNIA ) )ss. COUNTY OF So,n t7 i cay ) On itn,%it-m or It, 13 .. before me, Anqielica b&oA FInrft, Nofary_`PI)61 c (here insert name and title of the officer), personally appe red I,, 'Pell dl in , who proved to me on the basis of satisfactory evidence to be the person* whose nameW is/are subscribed to the within instrument and acknowledged to me that helsk /they executed the same in hislber/t & authorized capacity(ies), and that by hisllrerlttwir signaturp(ej on the instrument the persor4{s), or the entity upon behalf of which the person(a)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal 1'—�CAIGELICA MAR IA COMM. #1997831 WXY i t Calorr" = Signature E t eat) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct_ WITNESS my hand and official seal. Signature (Seal) 8 DM21"8912B.3 10/2812013 STATE OF CALIFORNIA ) )ss. COUNTY OF ) On before me, (here insert name and title of the officer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that helshelthey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On before me, (here insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 9 DPAA44891 283 7Qf VA13 EXHIBIT "A" Legal Description All of that certain real property located in the City of Chula Vista, County of San Diego, State of Califomia, described as follows: LOTS 1 THROUGH 126, INCLUSIVE, AND LOTS"A" AND "B" OF CHULA VISTA TRACT NO. 11-04, OTAY RANCH VILLAGE 2 NORTH NEIGHBORHOOD R-6, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15914, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON MAY 10, 2013. Exhibit"A" DMA4489128.3 i W28M 13 EXHIBIT"B" Plat Showing Community Association Maintained Parkways t Exhibit"B" DM214489128.3 10/28/2013 SHEET 1 Of 1 ® INDICATES PARKWAY TO BE MAINTAINED BY A AY COMMUNITY ASSOCATION 1 C P OL , A 4 6 7 3 03 2 73 72 84 01 0 79 5 90 09 06 0 5 gpA� 94 $� 0 96 93 92 pA�x$� 71 9 3� 6 9 60 2 0 31 67 IV-99g a 28 336 35 66 r N 5 3 63 101° X24 378 6?1 104 r 23 3 6 0 1 2O 42 a 60 0 �' 1 3 107 18 4 44 10 1 14 47 113 13 4B \ 13 50 54 40 cl llg 55 57 ACS I r Z 125 ` I1 � lllll H U N SA K E R QHL.ILAMSTATFACTNQ 11-(4 & ASSOCIATES CWAYRAl",M%UlACF-2 S A N D I E G O. I N C NSCH7CM 103DR-6 NNI PLANG 9707 Waples Street x ENGINEERING San Diego,Ca 97121 51JRVEYING PH( 56)55&4500-WBSB)55&1414 November 15, 2013 R=\1057\glop\E7( Y. 2 R� Maintenonce Responsibi I ity.dwg x.o. 2807-27 EXHIBIT"C" Plat Showing Community Association Maintained Storm Drains and Area Drains Exhibit"C" OM214489128.3 iormr2013 LOT"All SHEET 1 OF 1 83 82 77 76 75 �74 95 94 91 90 89 BS [85 � 81 78 73 96 93 92 87 1 86 80 79 72 1 1 CATHEDRAL OAKS ROAD 98 99 97 29 32 71 100 — 28 30 31 33 69 70 — INDICATES HDPE STORM 26 35 68 DRAIN & AREA DRAINS TO 101 — BE MAINTAINED 13Y 104 27 25 1 36 1 34 67 COMMUNITY ASSOCIATION � 65 105 103 24 37 1 A 66 22 39 106 23 38 A 63 64 107 08 20 41 Z 62 LOT"A" vl 21 40 110 19 42 61 131 109 1 59 18 43 60 112 16 17 44 45 1 L 113 114 LOT nBn CARPINTERIA STREET v I 14 47 =0 1A 116 15 46 117 11 13 48 12 1 18 10 49 51 119 20 I 11 50 8 53 122 t 9 52 123 121 L 7 S4 P125 24 4 6 55 57 12b 3 58 2 �Q. EXHIBIT "C" HUNSAKER CHULA VISTA TRACT NO. & ASSOCIATES 11-05 S A N D I E G a I N C OTAY RANCH VILLAGE 2 RANNING WW wapies SftW NEIGHBORHOOD R-6 ENGNIERNG Sae Diego,Ca 97121 SURVEYING Ft 58155"500-ix(s58)55a-1414 November 15, 2013 R6 Pd—te St— Drain E.Wbtt.6.9 In R.\tiM7\&e\E tdbRx\DRe e.WbIt. on 1t/t5/2013 EXHIBIT"13" Maintenance Responsibilities Community Association Area Maintenance City of Chula Vista Maintenance Community Association Landscaping in the parkways Maintenance of curb, gutter, Maintained Parkways including irrigation, trimming and sidewalks and pavement, shown on Exhibit"B". pruning of trees, and maintenance and irrigation of turf areas, and maintenance of any project signage or similar project monumentation. Community Association Maintenance of storm drain Done. Maintained Storm improvements, including inlets and Drains and Area Drains catch basins, and area drains. shown on Exhibit"C". Exhibit"D" DMZ4489128.3 10/28/2013 _ City of Chula Vista CITE CHVIAVISTA Legislation Details (With Text) File#: 14-0024 Name: FY14 Recreation Department Donations &Grants Type: Consent Item Status: Agenda Ready File created: 1/13/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING DONATIONS AND GRANT FUNDS IN THE AMOUNT OF $22,181 FROM MULTIPLE DONORS AND GRANTORS FOR COSTS ASSOCIATED WITH THE COMMUNITY FUN RUN, NORMAN PARK CENTER, VETERANS CENTER AND CITYWIDE AQUATIC AND RECREATION FACILITIES AND AMENDING THE FY2013-2014 RECREATION BUDGET TO REFLECT THE APPROPRIATION OF THESE DONATED, SPONSORSHIP AND GRANT FUNDS (4/5 VOTE REQUIRED) Sponsors: Indexes: 1. Operational Excellence, 2. Economic Vitality, 3. Healthy Community, 4. Strong &Secure Neighborhoods, 5. Connected Community Code sections: Attachments: Item 5 - Resolution Date Ver. Action By Action Result 2/11/2014 1 City Council RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING DONATIONS AND GRANT FUNDS IN THE AMOUNT OF $22,181 FROM MULTIPLE DONORS AND GRANTORS FOR COSTS ASSOCIATED WITH THE COMMUNITY FUN RUN, NORMAN PARK CENTER, VETERANS CENTER AND CITYWIDE AQUATIC AND RECREATION FACILITIES AND AMENDING THE FY2013-2014 RECREATION BUDGET TO REFLECT THE APPROPRIATION OF THESE DONATED, SPONSORSHIP AND GRANT FUNDS (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY Multiple donors and grantors are donating funds to the Recreation Department for costs associated with the Community Fun Run, Norman Park Center, Veterans Center and citywide aquatic and recreation facilities. Today's action asks the City Council to appropriate these donated funds. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"as defined under Section 15378 of the State of California CEQA Guidelines because the activity consists of a governmental administrative/fiscal activity that will not result in direct or indirect physical changes in the environment. Therefore, pursuant to Section 15060(c)(3) of the State of California CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION City of Chula Vista Page 1 of 4 Printed on 2/7/2014 powered by LegistarTM File #: 14-0024, Version: 1 Not Applicable. DISCUSSION The 6 th annual Community Fun Run ("Fun Run"), a 5K run or walk community event, is being held on May 17, 2014 at the U.S. Olympic Training Center. This event has been presented annually by the City since 2009, organized and managed by the Recreation Department. Sea World LLC dba Aquatica San Diego ("Aquatica'), SeaWorld's waterpark, is the Community Fun Run's Title Sponsor for the second consecutive year. They are donating $5,000 in sponsorship fees to be used by the City to pay for the initial, up-front costs associated with the Fun Run, including printing of fliers, production of participant t-shirts, advertising and other miscellaneous costs. No funds are budgeted in the Recreation Department's budget for this community event. Additional sponsors of this year's Fun Run are Baldwin & Sons and Sports Authority, who are each donating $1,000, and McMillin Companies, who is donating $500. These funds will also be used to pay for the up-front costs associated with the Fun Run. The Friends of Chula Vista Parks & Recreation is donating $6,931 from proceeds from the 2013 Fun Run to the Recreation Department for programming and the purchase of equipment and supplies for various aquatic and recreation facilities, sufficient funds for which are not included in the Department's budget. The USA Swimming Foundation is providing $4,000 in scholarship grant funds to the Recreation Department's Aquatics Program, which will serve as a "Make a Splash" Grant Local Partner for the provision of a Read to Swim Program. This program is a quality, multi-level, learn-to-swim program offered during the current fiscal year that will expand opportunities for at-risk students to learn to swim and to use the sport of swimming to expand fitness and recreational opportunities. This Read to Swim Program combines literacy and swimming lessons, with an overall goal of providing free swimming lessons to Chula Vista residents who cannot otherwise afford them while encouraging reading at the same time. The program will provide 270 children, ages six and over, with ten swim lessons after writing a book report. With this swim program, which will utilize the Department's existing Learn-To-Swim curriculum, children will begin with water acclimation and progress through levels of instruction and skill acquisition to pre-competitive stroke skills, with a student to teacher ratio of no greater than 6:1. An anonymous donor is donating $2,000 to Norman Park Center for the purpose of providing digital signage, a dynamic communications tool that will enhance customer access to daily facility information, scheduled activities and programs as well as tie in the Department's existing Active.Net program registration and facility reservation software program. This will assist in providing an additional advertising/marketing opportunity to reach customers who may not be fully aware of all the programs and services offered by the Department. The digital signage will better serve seniors with vision challenges by having larger fonts, pictures and flyers and will eventually provide an additional, revenue source if used for advertising/sponsorships of special events and classes. The anonymous donation will provide the system computer, set-up, customization, training and on-going support, as well as the first year of digital signage software licensing. Two clubs that meet at Norman Park Center are also donating funds for special events at the Center. The Garden Club is donating $150 and the Senior Club is donating $100. Veterans Recreation Center has been awarded a $1,500 grant from the City of Chula Vista 2013 Performing and Visual Arts Fund for the design and painting of a mural inside the center's annex by City of Chula Vista Page 2 of 4 Printed on 2/7/2014 File #: 14-0024, Version: 1 the same local artist who, with financial support from the Chula Vista Art Guild and help from neighborhood youth, created a mural in the Veterans Center Game Room in 2009. The Performing and Visual Arts Fund Grant Program was established to promote and stimulate the growth of Chula Vista's performing and cultural arts. The Fund supports art projects in dance, design arts, media arts, music, photography, theater, traditional folk arts and visual arts, or interdisciplinary expressions involving more than one of the above fields. Past award recipients include the City of Chula Vista Harbor Days, High Tech High, La Jolla Playhouse, San Diego Dance Theater, South Bayfront Artists, Christian Youth Theater, Mexicayotl Indio Cultural Center, San Diego Youth Symphony and many others. Funding for the grant is through a portion of ticket sales from the Sleep Train Amphitheatre to the City of Chula Vista's Performing Arts Fund. Therefore, the amount of money awarded each year varies. The range of grants is typically between $250 and $2,500, although higher amounts can be awarded. The grant is open to Chula Vista-based tax-exempt, non-profit organizations, educational institutions, or religious organizations, performance and visual arts groups associated with schools or educational institutions, City of Chula departments and boards and commissions, outside organizations working in partnership with Chula Vista-based entities, and various other groups or individuals listed in the application. Funds can be used to pay artists for a performance or exhibition, school projects, programs promoting cultural diversity or cultural tourism, and various costs for printing and materials, or costume rental. Projects must be completed one year from the grant notification date. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2 (a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Entering into partnerships with outside donors and sponsoring organizations such as these allow the Department to expand special events, programs and services such as the Fun Run and Read to Swim Program, increasing economic vitality and community engagement as well as providing diversified activities for youth through seniors that promote a healthy lifestyle and community. These partnerships also enhance the Recreation Department's stature and role as the "Heart of the Community" and serve to encourage and develop strong and secure neighborhoods and a connected community by providing diverse recreational opportunities that bring families together and foster civic pride through comprehensive communication strategies and cultural and recreational programming. Collaboration with individuals and organizations for programs such as the digital signage at Norman Park Center serves to provide responsive and responsible public service and operational excellence by improving the effectiveness of how the Department communicates the diverse opportunities and resources available to seniors. CURRENT YEAR FISCAL IMPACT City of Chula Vista Page 3 of 4 Printed on 2/7/2014 File #: 14-0024, Version: 1 Approval of this resolution will result in an appropriation of $6,264 to the Recreation Department's personnel services budget and $15,917 to its supplies & services budget. Multiple donors and grantors are the source of the funding; therefore there is no fiscal impact to the City. ONGOING FISCAL IMPACT $7,500 of the donated funds will used in support of the Fun Run. The Fun Run will continue to be an annual, City-run, community event. The Read to Swim Program is totally supported by the funds donated by USA Swimming and will continue to be offered in subsequent years entirely dependent upon the availability of additional offsetting funding. The one-time donations from the Friends of Chula Vista Parks & Recreation, Performing and Visual Arts Fund, Garden Club and Senior Club have no ongoing fiscal impact. The digital signage program made possible by $2,000 donation from the anonymous donor will result in an ongoing impact of $69 per month, or $828 annually, to the Norman Park Center budget for software licensing, but it is proposed that this cost will be fully covered by potential advertising/sponsorship revenue opportunities made possible by the program itself. ATTACHMENTS Resolution City of Chula Vista Page 4 of 4 Printed on 2/7/2014 COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING DONATIONS AND GRANT FUNDS IN THE AMOUNT OF $22,181 FROM MULTIPLE DONORS AND GRANTORS FOR COSTS ASSOCIATED WITH THE COMMUNITY FUN RUN, NORMAN PARK CENTER, VETERANS CENTER AND CITYWIDE AQUATIC AND RECREATION FACILITIES AND AMENDING THE FY2013-2014 RECREATION BUDGET TO REFLECT THE APPROPRIATION OF THESE DONATED, SPONSORSHIP AND GRANT FUNDS WHEREAS, the City of Chula Vista is presenting the 6th annual Community Fun Run on May 17, 2014; and WHEREAS, the City of Chula Vista Recreation Department is the lead department in running the Community Fun Run, including finding sponsors and vendors; and WHEREAS, the City of Chula Vista is receiving a donation from Sea World LLC dba Aquatica San Diego in the amount of$5,000 as Title Sponsor of the Community Fun Run and donations from Baldwin & Sons and Sports Authority in the amount of $1,000 and McMillin Companies in the amount of$500, also for support of the Community Fun Run; and WHEREAS, the Chula Vista Recreation Department will use these donated sponsorship funds to pay for up-front costs associated with the Community Fun Run; and WHEREAS, the City of Chula Vista is receiving a donation from the Friends of Chula Vista Parks & Recreation in the amount of$6,931 from proceeds from the 2013 Community Fun Run; and WHEREAS, the City of Chula Vista Recreation Department will use these donated funds for programming and the purchase of equipment and supplies for recreation and aquatic facilities; and WHEREAS, the City of Chula Vista is receiving grant funds from USA Swimming Foundation in the amount of$4,000; and WHEREAS, the City of Chula Vista Recreation Department will use these grant funds to provide scholarships for youth to participate in a free Read-to-Swim Program, which provides opportunities for at-risk youth to learn to swim and use the sport of swimming to expand fitness and recreational opportunities while encouraging reading as well; and WHEREAS, the City of Chula Vista is receiving a donation from an anonymous donor in the amount of$2,000; and Resolution No. Page 2 WHEREAS, the City of Chula Vista Recreation Department will use these donated funds for the purchase of digital signage for Norman Park Center, which will enhance customer access to daily facility information, scheduled activities and programs as well as tie in the Department's existing Active.Net program registration and facility reservation software program; and WHEREAS, the City of Chula Vista is receiving donations from the Garden Club in the amount of$150 and from the Senior Club in the amount of$100; and WHEREAS, the City of Chula Vista Recreation Department will use these donated funds to support special events at Norman Park Center; and WHEREAS, the City of Chula Vista is receiving grant funds from the 2013 Performing and Visual Arts Fund in the amount of$1,500; and WHEREAS, the City of Chula Vista Recreation Department will use these grant funds for the design and painting of a mural inside the Veterans Center Annex; and WHEREAS, accordingly, all donated, sponsorship and grant funds will be appropriated to the Recreation Department's FY2013-2014 budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby accept and appropriate from multiple donors and grantors $6,264 to the FY2013-2014 Recreation Department personnel services budget and $15,917 to its supplies & services budget. Presented by Approved as to form by Kristi McClure Glen R. Googins Director of Recreation City Attorney _ City of Chula Vista CITE CHVIAVISTA Legislation Details (With Text) File#: 14-0039 Name: APPROPRIATIONS FOR CARDIAC MONITOR/DEFIBRILLATORS Type: Consent Item Status: Agenda Ready File created: 1/22/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING APPROPRIATIONS OF $328,446 IN THE ADVANCED LIFE SUPPORT FUND FOR THE PROCUREMENT AND ACQUISITION OF CARDIAC MONITOR/DEFIBRILLATORS MANUFACTURED BY ZOLL MEDICAL CORPORATION (4/5 VOTE REQUIRED) Sponsors: Indexes: Code sections: Attachments: Item 6 - Resolution Item 6 -Zoll Sole Source Council Approval Item 6 - Cardiac defibrillator supplies quote Item 6 - Cardiac defibrillators quote Date Ver. Action By Action Result 2/11/2014 1 City Council RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING APPROPRIATIONS OF $328,446 IN THE ADVANCED LIFE SUPPORT FUND FOR THE PROCUREMENT AND ACQUISITION OF CARDIAC MONITOR/DEFIBRILLATORS MANUFACTURED BY ZOLL MEDICAL CORPORATION (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY The Chula Vista Fire Department delivers quality Basic Life Support (BLS) and Advanced Life Support (ALS) services to residents, visitors, and employees every day. A vital component of this service relies heavily on the resuscitative equipment that is carried on all apparatus. Such essential equipment includes cardiac monitor/defibrillators. The industry standard for the service life of this equipment is five years. The age of the current cardiac monitor/defibrillators is approaching six years. The Fire Department staff is recommending appropriating funds in the amount of $328,446 in the Advanced Life Support Fund in the Capital Equipment and Services and Supplies categories designated for the replacement of this equipment. These appropriations will be used to purchase eight new cardiac monitor/defibrillators for the ALS Engine Companies from Zoll Medical Corporation. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the City of Chula Vista Page 1 of 3 Printed on 2/7/2014 powered by LegistarTM File #: 14-0039, Version: 1 California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"as defined under Section 15378 of the State CEQA Guidelines; 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. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The industry standard for the service life of the cardiac monitor/defibrillators is five years. The age of the current cardiac monitor/defibrillators is approaching six years. The new monitors have significant improvements in technology that will allow the Fire Department to provide state of the art care to its citizens, visitors, and employees. This technology will allow the Fire Department to provide improved medical care for patients. Examples of this technology include Wi-Fi based communication, improvements in 12 Lead Electrocardiogram acquisition and transmission, and improved measurement of oxygen, carbon dioxide, and carbon monoxide levels in the patients that we provide service to. This ability to bring the latest technology to the patient's side to assist in the diagnosis and treatment of pre-hospital patients has a positive impact on their outcomes. This purchase is a sole source purchase through Zoll Medical Corporation. A Five year sole source has been previously approved by the City Council (Resolution 2013-203, approved October 1, 2013). Utilizing the same equipment as our transport provider creates standardization and operational efficiency. Providing the same type of emergency life-saving devices on our apparatus is crucial in order to provide a standard approach to training all personnel. This ensures that our personnel can operate this equipment at a competent level while under the stress of the life-threatening illnesses and injuries that these devices are designed to treat. Using the same equipment allows both agencies to use each other's equipment when necessary and during disaster events. Additionally, it allows us to receive disposable re-stock items from American Medical Response (AMR) in order to keep our resources in-service immediately after a call is finished. Most importantly, it provides better patient care. If each responder did not use the same equipment or if our department carried multiple brands of these devices - an interruption in patient care would take place. Staff is recommending appropriating funds in the amount of $328,446 in the Advanced Life Support Fund in the Capital Equipment and Services and Supplies categories in order to purchase the new defibrillator equipment purchased through Zoll Medical Corporation. The purchase includes eight new cardiac monitor/defibrillators for the ALS Engine Companies. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2 (a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City of Chula Vista Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This resolution meets City of Chula Vista Page 2 of 3 Printed on 2/7/2014 File #: 14-0039, Version: 1 the goals of Operational Excellence and Healthy Community. The technology possessed by the newest generation of cardiac monitors makes patient care more efficient and accurate, thus allowing the Fire Department to provide improved service. The newest technology allows better clinical care as well, leading to improved patient outcomes as part of a healthier community. CURRENT YEAR FISCAL IMPACT Approval of this resolution will result in appropriations of$328,446 in the Advanced Life Support Fund in the Fiscal Year 2013/14 budget. The appropriations will cover the costs associated with the purchase of cardiac monitor/defibrillators with accessories and extended warranties. There is no impact to the General Fund as a result of this action. Per the agreement with American Medical Response (AMR), the Advance Life Support Fund will recover the entire costs associated with the replacement of cardiac monitor/defibrillators. ONGOING FISCAL IMPACT With all durable equipment acquired through this purchase there is no ongoing cost for this equipment. Consumable products are an ongoing cost and are provided by AMR or as part of the BLS/ALS program budget. ATTACHMENTS • Resolution • Resolution 2008-107 • Equipment, supplies and warranty quotes City of Chula Vista Page 3 of 3 Printed on 2/7/2014 powered by LegistarTM COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TO AUTHORIZE APPROPRIATIONS OF $328,446 IN THE ADVANCED LIFE SUPPORT FUND FOR THE PROCURAMENT AND ACQUISITION OF CARDIAC MONITOR/DEFIBRILLATORS MANUFACTURED BY ZOLL MEDICAL CORPORATION WHEREAS, the Chula Vista Fire Department delivers quality Basic Life Support (BLS) and Advanced Life Support(ALS) services to residents,visitors, and employees every day; and WHEREAS, the provision of Advanced Life Support requires medical equipment to include cardiac monitor/defibrillators; and WHEREAS,the industry standard for the service life of the cardiac monitor/defibrillators equipment is five years and the age of the current cardiac monitor/defibrillators is approaching six years; and WHEREAS, the funding for replacement of the cardiac monitors is provided per the agreement with American Medical Response (AMR) in an incremental plan; and WHEREAS, the City Council has previously approved a five (5) year sole source agreement with Zoll Medical Corporation in Resolution 2013-203 on October 1, 2013; and WHEREAS, staff is requesting to appropriate $328,446 in the Advanced Life Support Fund for the procurement and acquisition of cardiac monitor/defibrillators, supplies, and warranty manufactured by Zoll Medical Corporation. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the fiscal year 2013/2014 budget of the Advanced Life Support Fund and approves the appropriation of$269,222 in the Capital Expenditure category and $59,224 in the Supplies and Services category for the procurement and acquisition of cardiac monitor/defibrillators, supplies, and warranty manufactured by Zoll Medical Corporation for use by the Fire Department personnel. Presented by Approved as to form by Dave Hanneman Glen R. Googins Fire Chief City Attorney RESOLUTION NO. 2008-107 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER AND/OR HIS DESIGNEE TO COMPLETE ALL NECESSARY APPLICATION PROCESSES AND TO ENTER INTO A FIVE- YEAR LEASE PURCHASE AGREEMENT WITH NECESSARY PARTIES FOR THE ACQUISITION OF MEDICAL RESUSCITATION EQUIPMENT MANUFACTURED BY ZOLL MEDICAL CORPORATION FOR USE BY THE FIRE DEPARTMENT, APPROVING THE FINANCING OF THE LEASE PURCHASE AGREEMENT THROUGH KANSAS STATE BANK OF MANHATTAN, AND AUTHORIZING THE MAYOR TO SIGN ALL NECESSARY AGREEMENTS WHEREAS, the City of Chula Vista Fire Department delivers quality Basic Life Support (BLS) services to residents,visitors,and employees every day; and WHEREAS, a vital component of this service heavily relies on the resuscitative equipment that is carried on all fire and rescue apparatus; and WHEREAS, such essential equipment includes cardiac defibrillators, auto-pulse devices, and portable suction units; and WHEREAS,the industry standard for the service life of this equipment is five years; and WHEREAS, the Fire Department is requesting authorization to enter into a five-year lease purchase agreement to acquire medical resuscitation equipment manufactured by Zoll Medical Corporation in order to replace existing equipment that is beyond its useful performance life; and WHEREAS, Chula Vista Municipal Code section 2.56.140 authorizes the purchasing agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage provided that such items are purchased through a competitive process that the purchasing agent determines to be consistent with good purchasing practices; and WHEREAS,information regarding pricing regarding the medical resuscitation equipment manufactured by Zoll Medical Corporation is from a competitive bid by the Los Angeles County Fire Department, specifically County of Los Angeles Solicitation No. 208423 approved in 2002; and Resolution No. 2008-107 Page 2 WHEREAS, the quote obtained by Zoll Medical Corporation regarding pricing of twenty automatic electronic defibrillators, other necessary operating equipment, and necessary extended warranties and preventative maintenance agreements, dated February 19, 2008, was based on the pricing Zoll provided to the Los Angeles County Fire Department from Solicitation No. 208423;and WHEREAS, Fire Department staff is recommending acquiring this equipment from Zoll Medical Corporation based on the determination of the City's Purchasing Agent that County of Los Angeles Solicitation No. 208423 is consistent with good purchasing practices and is in compliance with Chula Vista Municipal Code Section 2.56.140;and WHEREAS, the total amount to be financed for purchasing this equipment is $764,224.42, and this purchase amount will result in monthly payments of $14,351.29 over a five-year period,through a lease purchase agreement with Kansas State Bank of Manhattan; and WHEREAS, financing terms are being extended to the City upon the successful completion of an application process with Kansas State Bank of Manhattan; and i WHEREAS, the Fire Department will align its emergency equipment configuration with industry standards and increase its capability to serve the community and save lives by acquiring this equipment; and WHEREAS, staff is recommending acquiring the AED and Auto-Pulse equipment from Zoll Medical Corporation, as this equipment configuration will provide the Fire Department the ability to upgrade this equipment from Basic Life Support (BLS) capability to Advanced Life Support(ALS) capability; and WHEREAS, this will be a necessary option should the Fire Department launch a paramedic program in the future. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the City Manager and/or his designee to complete all necessary application processes and to enter into a five-year lease purchase agreement with necessary parties for the acquisition of medical resuscitation equipment manufactured by Zoll Medical Corporation. NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby approve the financing of the five-year lease purchase agreement through Kansas State Bank of Manhattan and authorizes ongoing funding for the lease purchase payments in the estimated amount of$14,351.29 a month to be included in the Fire Department's budget for fiscal year 2008/2009 and subsequent fiscal years for the duration of the five-year agreement. I Resolution No.2008-107 Page 3 NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby authorize the Mayor to sign all necessary agreements for the acquisition and financing of the medical resuscitation equipment manufactured by Zoll Medical Corporation and to be financed through Kansas State Bank of Manhattan for use by the Fire Department. Presented by Approved as to form by ` � -fames eer ng Ann Moore Interim Fire Chief City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California,this 22nd day of April 2008 by the following vote: AYES: Councilmembers: McCann,Ramirez, Rindone,and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: Castaneda J Cheryl Coxy ay r ATTEST: I s Donna R.Norris, C-,Interim City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No.2008-107 was duly passed,approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22nd day of April 2008. Executed this 22nd day of April 2008. Donna R.Norris, CMC,Interim City Clerk GUIDELINES ZOLL Medical Corporation 2010 READY Worldwide HeadQuarters OLL0 269 Mill Rd Chelmsford, Massachusetts 01824-4105 TO: Chula Vista Fire Department (978)421-9655 Main (800)348-9011 276 4th Avenue (978)421-0015 Customer Support Chula Vista, CA 91910 FEDERAL ID*: 04-2711626 Attn: Chris Scott QUOTATION 153348 V:5 DATE: January 15,2014 email: CScott(a)ci.chula-vista.ca.us Tel: 619-476-2500 TERMS: Net 30 Days FOB: Destination FREIGHT: Free Freight ITEM MODEL NUMBER DESCRIPTION QTY. UNIT PRICE DISC PRICE TOTAL PRICE 1 8 0 0 0- 0 3 3 9 SpO2/SpCO/SpMet Rainbow Single use Sensors: 3 $795.00 $532.65 $1,597.95 Patisnts 10-50 kg(10 per case) 2 8 0 0 0- 0 0 0 9 0 1 ECG plain white paper-80mm(pack of 6 rolls) 20 $24.00 $16.08 $321.60 3 8 3 0 0- 0 5 2 0- 0 1 Filtedine Set Adult/Pediatric,Case of 25 4 $275.00 $184.25 $737.00 4 8 3 0 0- 0 5 2 3- 0 1 Vitaline H Set Adult/Pediatric,Case of 25 3 $685.00 $458.95 $1,376.85 5 8000- 000898- 1 2 12-Lead one step ECG cable-IEC includes 4-lead 2 $325.00 $217.75 $435.50 tnsnk cable and removable precordial 6 lead set 6 REUSE- 1 2- 2MQ Welch Allyn REUSE-12-2MQ Cuff, Lg Adult,2-Tube, 10 $52.50 $35.18 $351.80 Tw.in lock connector 7 REUSE- 09- 2MQ Welch Allyn REUSE-09-2MQ Cuff, Child,2-Tube, 10 $52.50 $35.18 $351.80 Tw.iet lock connector Estimated Sales Tax 8.75% $452.59 *Reflects Riverside Contract Pricing.* This quote is made subject to ZOLL's standard commercial terms and conditions(ZOLL Ts+C's)which TOTAL $5,625.09 accompany this quote. Any purchase order(P.O.)issued in response to this quotation will be deemed to incorporate ZOLL Ts+C's.Any modification of the ZOLL Ts+C's must be set forth or referenced in the customer's P.O. No commercial terms or conditions shall apply to the sale of goods or services governed by this quote and the customer's P.O unless set forth in or referenced by either document. 1. DELIVERY WILL BE MADE 60-90 DAYS AFTER RECEIPT OF ACCEPTED PURCHASE ORDER. Catherine Prophet 2. PRICES QUOTED ARE VALID FOR 60 DAYS. Sr. EMS Account Executive 3.APPLICABLE TAX ADDITIONAL. 800-242-9150,x9571 4.ALL PURCHASE ORDERS ARE SUBJECT TO CREDITAPPROVAL BEFORE ACCEPTABLE BY ZOLL. 5.FAX PURCHASE ORDER AND QUOTATION TO ZOLL CUSTOMER SUPPORT AT 978-421-0015 OR EMAIL TO ESALES ZOLL.COM. 6.ALL DISCOUNTS OFF LIST PRICE ARE CONTINGENT UPON PAYMENT WITHIN AGREED UPON TERMS. 7. PLACE YOUR ACCESSORY ORDERS ONLINE BY VISITING www.zollwebstore.com. Page 1 ZOLL QUOTATION GENERAL TERMS &CONDITIONS 9.LIMITATIONS OF LIABILITY.IN NO EVENT SHALL ZOLL MEDICAL CORPORATION BE LIABLE 1. ACCEPTANCE. This Quotation constitutes an offer by ZOLL Medical Corporation to sell to the FOR INDIRECT SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ZOLL MEDICAL Customer the equipment (including a license to use certain software) listed in this Quotation and CORPORATIONS PERFORMANCE OR FAILURE TO PERFORM PURSUANT TO THIS QUOTATION described in the specifications either attached to or referred to in this Quotation(hereinafter referred to OR THE CONTRACT OR THE FURNISHING,PERFORMANCE,OR USE OF ANY EQUIPMENT OR as Equipment).Any acceptance of such offer is expressly limited to the terms of this Quotation,including SOFTWARE SOLD HERETO, WHETHER DUE TO A BREACH OF CONTRACT, BREACH OF these General Terms and Conditions.Acceptance shall be so limited to this Quotation notwithstanding(i) WARRANTY,THE NEGLIGENCE OF ZOLL MEDICAL CORPORATION OR OTHERWISE. any conflicting written or oral representations made by ZOLL Medical Corporation or any agent or employee of ZOLL Medical Corporation or(ii)receipt or acknowledgement by ZOLL Medical Corporation 10.PATENT INDEMNITY.ZOLL Medical Corporation shall at its own expense defend any suit that may of any purchase order,specification,or other document issued by the Customer.Any such document be instituted against the Customer for alleged infringement of any United States patents or copyrights shall be wholly inapplicable to any sale made pursuant to this Quotation,and shall not be binding in any related to the parts of the Equipment or the Software manufactured by ZOLL Medical Corporation, way on ZOLL Medical Corporation. provided that(i)such alleged infringement consists only in the use of such Equipment or the Software by itself and not as a part of or in combination with any other devices or parts,(ii)the Customer gives ZOLL Acceptance of this Quotation by the Customer shall create an agreement between ZOLL Medical Medical Corporation immediate notice in writing of any such suit and permits ZOLL Medical Corporation Corporation and the Customer(hereinafter referred to as the"Contract"the terms and conditions of through counsel of its choice,to answer the charge of infringement and defend such suit,and(iii)the which are expressly limited to the provisions of this Quotation including these Terms and Conditions.No Customer gives ZOLL Medical Corporation all requested information,assistance and authority at ZOLL waiver change or modification of any of the provisions of this Quotation or the Contract shall be binding Medical Corporation's expense,to enable ZOLL Medical Corporation to defend such suit. on ZOLL Medical Corporation unless such waiver, change or modification (i)is made in writing (ii) expressly states that it is a waiver,change or modification of this Quotation or the Contract and(iii)is In the case of a final award of damages for infringement in any such suit,ZOLL Medical Corporation will signed by an authorized representative of ZOLL Medical Corporation. pay such award,but it shall not be responsible for any settlement made without its written consent. 2. DELIVERY AND RISK OF LOSS. Unless otherwise stated, all deliveries shall be F.O.B. ZOLL Section 10 states ZOLL Medical Corporation's total responsibility and liability/s,and the Customers sole Medical Corporation's facility.Risk of loss or damage to the Equipment shall pass to the Customer upon remedy for any actual or alleged infringement of any patent by the Equipment or the Software or any part delivery of the Equipment to the carrier. thereof provided hereunder. In no event shall ZOLL Medical Corporation be liable for any indirect, special,or consequential damages resulting from any such infringement. 3.TERMS OF PAYMENT.Unless otherwise stated in its Quotation payment by Customer is due thirty (30)days after the ship date appearing on ZOLL Medical Corporation invoice.Any amounts payable 11. CLAIMS FOR SHORTAGE. Each shipment of Equipment shall be promptly examined by the hereunder which remain unpaid after the date shall be subject to a late charge equal to 1.5%per month Customer upon receipt thereof.The Customer shall inform ZOLL Medical Corporation of any shortage in from the due date until such amount is paid. any shipment within ten(10)days of receipt of Equipment.If no such shortage is reported within ten(10) day period,the shipment shall be conclusively deemed to have been complete. 4.CREDIT APPROVAL.All shipments and deliveries shall at all times be subject to the approval of credit by ZOLL Medical Corporation.ZOLL Medical Corporation may at any time decline to make any 12.RETURNS AND CANCELLATION.(a)The Customer shall obtain authorization from ZOLL Medical shipment or delivery except upon receipt of payment or security or upon terms regarding credit or Corporation prior to returning any of the Equipment.(b)The Customer receives authorization from ZOLL security satisfactory to ZOLL Medical Corporation. Medical Corporation to return a product for credit,the Customer shall be subject to a restocking charge of twenty percent(20%)of the original list purchase price,but not less than$50.00 per product.(c)Any 5.TAXES&FEES.The pricing quoted in its Quotation do not include sales use,excise,or other similar such change in delivery caused by the Customer that causes a delivery date greater than six(6)months taxes or any duties or customs charges, or any order processing fees. The Customer shall pay in from the Customers original order date shall constitute a new order for the affected Equipment in addition for the prices quoted the amount of any present or future sales,excise or other similar tax or determining the appropriate list price. customs duty or charge applicable to the sale or use of the Equipment sold hereunder(except any tax based on the net income of ZOLL Medical Corporation),and any order processing fees that ZOLL may 13.APPLICABLE LAW.This Quotation and the Contract shall be governed by the substantive laws of apply from time to time.In lieu thereof the Customer may provide ZOLL Medical Corporation with a tax the Commonwealth of Massachusetts without regard to any choice of law provisions thereof. exemption certificate acceptable to the taxing authorities. 14.COMPLIANCE WITH LAWS.(a)ZOLL Medical Corporation represents that all goods and services 6.WARRANTY.(a)ZOLL Medical Corporation warrants to the Customer that from the earlier of the date delivered pursuant to the Contract will be produced and supplied in compliance with all applicable state of installation or thirty(30)days after the date of shipment from ZOLL Medical Corporation's facility,the and federal laws and regulations,including the requirements of the Fair Labor Standards Act of 1938,as Equipment(other than accessories and electrodes)will be free from defects in material and workmanship amended.(b)The Customer shall be responsible for compliance with any federal,state and local laws under normal use and service for the period noted on the reverse side.Accessories and electrodes shall and regulations applicable to the installation or use of the Equipment furnished hereunder,and will obtain be warranted for ninety (90) days from the date of shipment. During such period ZOLL Medical any permits required for such installation and use. Corporation will at no charge to the Customer either repair or replace(at ZOLL Medical Corporation's sole option)any part of the Equipment found by ZOLL Medical Corporation to be defective in material or 15. NON-WAIVER OF DEFAULT. In the event of any default by the Customer, ZOLL Medical workmanship.If ZOLL Medical Corporation's inspection detects no defects in material or workmanship, Corporation may decline to make further shipments or render any further warranty or other services ZOLL Medical Corporation's regular service charges shall apply.(b)ZOLL Medical Corporation shall not without in any way affecting its right under such order.If despite any default by Customer,ZOLL Medical be responsible for any Equipment defect failure of the Equipment to perform any specified function,or Corporation elects to continue to make shipments its action shall not constitute a waiver of any default by any other nonconformance of the Equipment caused by or attributable to(i)any modification of the the Customer or in any way affect ZOLL Medical Corporation's legal remedies regarding any such Equipment by the Customer,unless such modification is made with the prior written approval of ZOLL default.No claim or right arising out of a breach of the Agreement by the Customer can be discharged in Medical Corporation: (ii)the use of the Equipment with any associated or complementary equipment whole or in part by waiver or renunciation of the claim or right unless the waiver or renunciation is accessory or software not specified by ZOLL Medical Corporation,or(iii)any misuse or abuse of the supported by consideration and is in writing signed by ZOLL Medical Corporation. Equipment:(iv)exposure of the Equipment to conditions beyond the environmental,power or operating constraints specified by ZOLL Medical Corporation,or(v)installation or wiring of the Equipment other 16.ASSIGNMENT.This Quotation,and the Contract,may not be assigned by the Customer without the than in accordance with ZOLL Medical Corporation's instructions. (c)Warranty does not cover items prior written consent of ZOLL Medical Corporation,and any assignment without such consent shall be subject to normal wear and burnout during use,including but not limited to lamps,fuses,batteries,cables null and void. and accessories. (d) The foregoing warranty does not apply to software included as part of the Equipment(including software embodied in read-only memory known as"firmware").(e)The foregoing 17.TITLE TO PRODUCTS.Title to right of possession of the products sold hereunder shall remain with warranty constitutes the exclusive remedy of the Customer and the exclusive liability of ZOLL Medical ZOLL Medical Corporation until ZOLL Medical Corporation delivers the Equipment to the carrier and Corporation for any breach of any warranty related to the Equipment supplied hereunder. THE agrees to do all acts necessary to perfect and maintain such right and title in ZOLL Medical Corporation. WARRANTY SET FORTH HEREIN IS EXCLUSIVE AND ZOLL MEDICAL CORPORATION Failure of the Customer to pay the purchase price for any product when due shall give ZOLL Medical EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES WHETHER WRITTEN, ORAL, IMPLIED, OR Corporation the right,without liability to repossess the Equipment,with or without notice,and to avail STATUTORY,INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY OR itself of any remedy provided by law. FITNESS FOR A PARTICULAR PURPOSE. 18.EQUAL EMPLOYMENT OPPORTUNITY/AFFIRMATIVE ACTION. 7.SOFTWARE LICENSE.(a)All software(the"Software"which term shall include firmware)included as VETERAN'S EMPLOYMENT-If this order is subject to Executive Order 11710 and the part of the Equipment is licensed to Customer pursuant to a nonexclusive limited license on the terms rules,regulations,or orders of the Secretary of Labor issued thereunder the contract clause as set forth hereinafter set forth,(b)Customer may not copy,distribute,modify,translate or adapt the Software,and at 41 CFR 60-250.4 is hereby included as part of this order. may not disassemble or reverse compile the Software,or seek in any manner to discover,disclose or use any proprietary algorithms,techniques or other confidential information contained therein, (c)All EMPLOYMENT OF HANDICAPPED - if this order is subject to Section 503 of the rights in the Software remain the product of ZOLL Medical Corporation,and Customer shall have no right Rehabilitation Act of 1973,as amended and the rules,regulations or orders of the Secretary of Labor as or interest therein except as expressly provided herein.(d)Customer's right to use the Software may be issued thereunder,the contract clause at 41 CFR 60-741.7 is hereby included as part of this order. terminated by ZOLL Medical Corporation in the event of any failure to comply with terms of this quotation,(e)Customer may transfer the license conferred hereby only in connection with a transfer of EQUAL OPPORTUNITY EMPLOYMENT - if this order is subject to the provisions of the Equipment and may not retain any copies of the Software following such transfer.(f)ZOLL Medical Executive Order 11246, as amended, and the rules, regulations or orders of the Secretary of Labor Corporation warrants that the read-only memory or other media on which the Software is recorded will be issued thereunder,the contract clause set forth at 41 CFR 60-1.4(a)and 60-1.4(b)are hereby included free from defects in materials and workmanship for the period and on terms set forth in section 6.(g) as a part of this order and Seller agrees to comply with the reporting requirements set forth at 41 CFR Customer understands that the Software is a complex and sophisticated software product and no 60-1.7 and the affirmative action compliance program requirements set forth as 41 CFR 60-1.40. assurance can be given that operation of the Software will be uninterrupted or error-free,or that the Software will meet Customers requirements. Except as set forth in section 7(f), ZOLL MEDICAL 19. VALIDITY OF QUOTATION. This Quotation shall be valid and subject to acceptance by the CORPORATION MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE Customer,in accordance with the terms of Section 1 hereof for the period set forth on the face hereof. SOFTWARE AND IN PARTICULAR DISCLAIMS ANY IMPLIED WARRANTIES OR After such period,the acceptance of this Quotation shall not be binding upon ZOLL Medical Corporation MERCHANTABILITY OR FITNESS OF A PARTICULAR PURPOSE WITH RESPECT THERETO. and shall not create a contract,unless such acceptance is acknowledged and accepted by ZOLL Medical Customer's exclusive remedy for any breach of warranty or defect relating to the Software shall be the Corporation by a writing signed by an authorized representative of ZOLL Medical Corporation. repair or replacement of any defective read-only memory or other media so that it correctly reproduces the Software. This License applies only to ZOLL Medical Corporation Software. 20.GENERAL. Any Contract resulting from this Quotation shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts. This constitutes the entire 8.DELAYS IN DELIVERY.ZOLL Medical Corporation shall not be liable for any delay in the delivery of agreement between Buyer and Supplier with respect to the purchase and sale of the Products described any part of the Equipment if such delay is due to any cause beyond the control of the ZOLL Medical in the face hereof, and only representations or statements contained herein shall be binding upon Corporation including,but not limited to acts of God,fires,epidemics,floods,riots,wars,sabotage,labor Supplier as a warranty or otherwise. Acceptance or acquiescence in the course of performance disputes, governmental actions, inability to obtain materials, components, manufacturing facilities or rendered pursuant hereto shall not be relevant to determine the meaning of this writing even though the transportation or any other cause beyond the control of ZOLL Medical Corporation. In addition ZOLL accepting or acquiescing party has knowledge of the nature of the performance and opportunity for Medical Corporation shall not be liable for any delay in delivery caused by failure of the Customer to objection. No addition to or modification of any of the terms and conditions specified herein shall be provide any necessary information in a timely manner. In the event of any such delay, the date of binding upon Supplier unless made in writing and signed by a duly authorized representative of Supplier. shipment or performance hereunder shall be extended to the period equal to the time lost by reason of The terms and conditions specified shall prevail notwithstanding any variance from the terms and such delay. In the event of such delay ZOLL Medical Corporation may allocate available Equipment conditions of any order or other form submitted by Buyer for the Products set forth on the face of this among its Customers on any reasonable and equitable basis. The delivery dates set forth in this Agreement. To the extent that this writing may be treated as an acceptance of Buyers prior offer,such Quotation are approximate only and ZOLL Medical Corporation shall not be liable for or shall the acceptance is expressly made conditional on assent by Buyer to the terms hereof,and,without limitation, Contract be breached by,any delivery by ZOLL Medical Corporation within a reasonable time after such acceptance of the goods by Buyer to the terms hereof,and,without limitation,acceptance of the goods dates. by Buyer shall constitute such assent. All cancellations and reschedules require a minimum of thirty(30) days notice. Paget ZOLL Medical Corporation GUIDELINES ZOLL Medical Corporation 2010 READY Worldwide HeadQuarters OLLO 269 Mill Rd Chelmsford, Massachusetts 01824-4105 TO: Chula Vista Fire Department (978)421-9655 Main (800)348-9011 276 4th Avenue (978)421-0015 Customer Support Chula Vista, CA 91910 FEDERAL ID#: 04-2711626 Attn: Chris Scott QUOTATION 153347 V:5 DATE: January 15,2014 email: CScott(a)ci.chula-vista.ca.us Tel: 619-476-2500 TERMS: Net 30 Days FOB: Destination FREIGHT: Free Freight ITEM MODEL NUMBER DESCRIPTION QTY. UNIT PRICE DISC PRICE TOTAL PRICE 1 6 0 1- 2 4 3 1 0 1 1- 0 1 X Series®Manual Monitor/Defibrillator $14,995 8 $41,815.00 $35,542.75 $284,342.00 with 4 trace tri-mode display monitor/defibrillator/ printer, comes with Real CPR Help®,advisory algorithm, advanced communications package(Wi-Fi,Bluetooth, USB cellular modem capable)USB data transfer capable and large 6.5"(16.5cm)diagonal screen, full 12 ECG lead view with both dynamic and static 12-lead mode display. Accessories Included: •Six(6)foot 3-Lead ECG cable • MFC cable • MFC CPR connector • A/C power adapter/battery charger • A/C power cord • One(1)roll printer paper • 6.6 Ah Li-ion battery • Carry case • Declaration of Conformity • Operator's Manual • Quick Reference Guide •One(1)-year EMS warranty Advanced Options: Real CPR Help Expansion Pack $ 995 CPR Dashboard quantitive depth and rate in real time,release indicator,interruption timer,perfusion performance indicator(PPI) •See-Thru CPR artifact filtering ZOLL Noninvasive Pacing Technology: $2,550 Masimo Pulse Oximetry This quote is made subject to ZOLL's standard commercial terms and conditions(ZOLL T's+C's)which Pape 1 Subtotal $284,342.00 accompany this quote. Any purchase order(P.O.)issued in response to this quotation will be deemed to incorporate ZOLL T's+C's.Any modification of the ZOLL T's+C's must be set forth or referenced in the customer's P.O. No commercial terms or conditions shall apply to the sale of goods or services governed by this quote and the customer's P.O unless set forth in or referenced by either document. 1. DELIVERY WILL BE MADE 60-90 DAYS AFTER RECEIPT OF ACCEPTED PURCHASE ORDER. Catherine Prophet 2. PRICES QUOTED ARE VALID FOR 60 DAYS. Sr. EMS Account Executive 3.APPLICABLE TAX ADDITIONAL. 949-436-4369 4.ALL PURCHASE ORDERS ARE SUBJECT TO CREDITAPPROVAL BEFORE ACCEPTABLE BY ZOLL. 5.FAX PURCHASE ORDER AND QUOTATION TO ZOLL CUSTOMER SUPPORT AT 978-421-0015 OR EMAIL TO ESALES ZOLL.COM. 6.ALL DISCOUNTS OFF LIST PRICE ARE CONTINGENT UPON PAYMENT WITHIN AGREED UPON TERMS. 7. PLACE YOUR ACCESSORY ORDERS ONLINE BY VISITING www.zollwebstore.com. Page 1 GUIDELINES ZOLL Medical Corporation 2010 READY Worldwide HeadQuarters OLL0 269 Mill Rd Chelmsford, Massachusetts 01824-4105 TO: Chula Vista Fire Department (978)421-9655 Main (800)348-9011 276 4th Avenue (978)421-0015 Customer Support Chula Vista, CA 91910 FEDERAL ID#: 04-2711626 Attn: Chris Scott QUOTATION 153347 V:5 DATE: January 15,2014 email: CScott(a)ci.chula-vista.ca.us Tel: 619-476-2500 TERMS: Net 30 Days FOB: Destination FREIGHT: Free Freight ITEM MODEL NUMBER DESCRIPTION QTY. UNIT PRICE DISC PRICE TOTAL PRICE SP02&SpCO $4,540 •Signal Extraction Technology(SET) • Rainbow SET(for SpCO&SpMet) NIBP Welch Allyn includes: $3,495 • Smartcuff 10 foot Dual Lumen hose • SureBP Reusable Adult Medium Cuff End Tidal Carbon Dioxide monitoring(ETCO2) Oridion Microstream Technology: $4,995 Order required Microstream tubing sets separately Interpretative 12-Lead ECG: $8,450 • 12-Lead one step ECG cable-includes 4-Lead limb lead cable and removable precordial 6-Lead set Voice Recording: $ 1795 2 8 0 0 0- 0 5 8 0- 0 1 Six hour rechargeable Smart battery 24 $495.00 $420.75 $10,098.00 3 8 0 0 0- 0 0 0 3 7 1 Sp02/SpCO/SpMet Rainbow DCI Adult Reusable 10 $415.00 $352.75 $3,527.50 Se-.sor/Cable(3 ft) 4 8 0 0 0- 0 3 3 0 Sp02 Rainbow Reusable Patient Cable:Connects to 10 $295.00 $250.75 $2,507.50 LNCS Single Use and Reusable Sensors(4 ft) 5 8 3 0 0- 0 2 5 0- 0 1 SurePower Charger Adapter 16 $97.00 $82.45 $1,319.20 This quote is made subject to ZOLL's standard commercial terms and conditions(ZOLL T's+C's)which Pape 2 Subtotal $301,794.20 accompany this quote. Any purchase order(P.O.)issued in response to this quotation will be deemed to incorporate ZOLL T's+C's.Any modification of the ZOLL T's+C's must be set forth or referenced in the customer's P.O. No commercial terms or conditions shall apply to the sale of goods or services governed by this quote and the customer's P.O unless set forth in or referenced by either document. 1. DELIVERY WILL BE MADE 60-90 DAYS AFTER RECEIPT OF ACCEPTED PURCHASE ORDER. Catherine Prophet 2. PRICES QUOTED ARE VALID FOR 60 DAYS. Sr. EMS Account Executive 3.APPLICABLE TAX ADDITIONAL. 949-436-4369 4.ALL PURCHASE ORDERS ARE SUBJECT TO CREDITAPPROVAL BEFORE ACCEPTABLE BY ZOLL. 5.FAX PURCHASE ORDER AND QUOTATION TO ZOLL CUSTOMER SUPPORT AT 978-421-0015 OR EMAIL TO ESALES ZOLL.COM. 6.ALL DISCOUNTS OFF LIST PRICE ARE CONTINGENT UPON PAYMENT WITHIN AGREED UPON TERMS. 7. PLACE YOUR ACCESSORY ORDERS ONLINE BY VISITING www.zollwebstore.com. Page 2 GUIDELINES ZOLL Medical Corporation 2010 READY Worldwide HeadQuarters OLL0 269 Mill Rd Chelmsford, Massachusetts 01824-4105 TO: Chula Vista Fire Department (978)421-9655 Main (800)348-9011 276 4th Avenue (978)421-0015 Customer Support Chula Vista, CA 91910 FEDERAL ID#: 04-2711626 Attn: Chris Scott QUOTATION 153347 V:5 DATE: January 15,2014 email: CScott(a)ci.chula-vista.ca.us Tel: 619-476-2500 TERMS: Net 30 Days FOB: Destination FREIGHT: Free Freight ITEM MODEL NUMBER DESCRIPTION QTY. UNIT PRICE DISC PRICE TOTAL PRICE 6 8778- 0 1 0 7 4 Year Extended Warranty(at time of equipment sale) 8 $3,550.00 $3,550.00 $28,400.00 7 8778- 0 1 1 7 4 Year,1 Preventative Maintenace(at time of equipment 8 $920.00 $920.00 $7,360.00 sale) 8 5 0 0 1- 9 9 2 8 ZOLL E Series w)Padng,12 lead+3 parameters or 8 ($5,000.00) ($40,000.00) mars Trade-In Estimated Sales Tax 8.75% $29,535.90 **Trade-In Value valid if all units purchased are in good operational and cosmetic condition,and include all standard accessories such as paddles,cables,etc. Customer assumes responsibility for shipping trade-in equipment to ZOLL Chelmsford within 60 days of receipt of new equipment. Customer agrees to pay cash value for trade-in equipment not shipped to ZOLL on a timely basis. *Reflects Discount Pricing. This quote is made subject to ZOLL's standard commercial terms and conditions(ZOLL Ts+C's)which TOTAL $327,090.10 accompany this quote. Any purchase order(P.O.)issued in response to this quotation will be deemed to incorporate ZOLL Ts+C's.Any modification of the ZOLL Ts+C's must be set forth or referenced in the customer's P.O. No commercial terms or conditions shall apply to the sale of goods or services governed by this quote and the customer's P.O unless set forth in or referenced by either document. 1. DELIVERY WILL BE MADE 60-90 DAYS AFTER RECEIPT OF ACCEPTED PURCHASE ORDER. Catherine Prophet 2. PRICES QUOTED ARE VALID FOR 60 DAYS. Sr. EMS Account Executive 3.APPLICABLE TAX ADDITIONAL. 949-436-4369 4.ALL PURCHASE ORDERS ARE SUBJECT TO CREDITAPPROVAL BEFORE ACCEPTABLE BY ZOLL. 5.FAX PURCHASE ORDER AND QUOTATION TO ZOLL CUSTOMER SUPPORT AT 978-421-0015 OR EMAIL TO ESALES ZOLL.COM. 6.ALL DISCOUNTS OFF LIST PRICE ARE CONTINGENT UPON PAYMENT WITHIN AGREED UPON TERMS. 7. PLACE YOUR ACCESSORY ORDERS ONLINE BY VISITING www.zollwebstore.com. Page 3 ZOLL QUOTATION GENERAL TERMS &CONDITIONS 9.LIMITATIONS OF LIABILITY.IN NO EVENT SHALL ZOLL MEDICAL CORPORATION BE LIABLE 1. ACCEPTANCE. This Quotation constitutes an offer by ZOLL Medical Corporation to sell to the FOR INDIRECT SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ZOLL MEDICAL Customer the equipment (including a license to use certain software) listed in this Quotation and CORPORATIONS PERFORMANCE OR FAILURE TO PERFORM PURSUANT TO THIS QUOTATION described in the specifications either attached to or referred to in this Quotation(hereinafter referred to OR THE CONTRACT OR THE FURNISHING,PERFORMANCE,OR USE OF ANY EQUIPMENT OR as Equipment).Any acceptance of such offer is expressly limited to the terms of this Quotation,including SOFTWARE SOLD HERETO, WHETHER DUE TO A BREACH OF CONTRACT, BREACH OF these General Terms and Conditions.Acceptance shall be so limited to this Quotation notwithstanding(i) WARRANTY,THE NEGLIGENCE OF ZOLL MEDICAL CORPORATION OR OTHERWISE. any conflicting written or oral representations made by ZOLL Medical Corporation or any agent or employee of ZOLL Medical Corporation or(ii)receipt or acknowledgement by ZOLL Medical Corporation 10.PATENT INDEMNITY.ZOLL Medical Corporation shall at its own expense defend any suit that may of any purchase order,specification,or other document issued by the Customer.Any such document be instituted against the Customer for alleged infringement of any United States patents or copyrights shall be wholly inapplicable to any sale made pursuant to this Quotation,and shall not be binding in any related to the parts of the Equipment or the Software manufactured by ZOLL Medical Corporation, way on ZOLL Medical Corporation. provided that(i)such alleged infringement consists only in the use of such Equipment or the Software by itself and not as a part of or in combination with any other devices or parts,(ii)the Customer gives ZOLL Acceptance of this Quotation by the Customer shall create an agreement between ZOLL Medical Medical Corporation immediate notice in writing of any such suit and permits ZOLL Medical Corporation Corporation and the Customer(hereinafter referred to as the"Contract"the terms and conditions of through counsel of its choice,to answer the charge of infringement and defend such suit,and(iii)the which are expressly limited to the provisions of this Quotation including these Terms and Conditions.No Customer gives ZOLL Medical Corporation all requested information,assistance and authority at ZOLL waiver change or modification of any of the provisions of this Quotation or the Contract shall be binding Medical Corporation's expense,to enable ZOLL Medical Corporation to defend such suit. on ZOLL Medical Corporation unless such waiver, change or modification (i)is made in writing (ii) expressly states that it is a waiver,change or modification of this Quotation or the Contract and(iii)is In the case of a final award of damages for infringement in any such suit,ZOLL Medical Corporation will signed by an authorized representative of ZOLL Medical Corporation. pay such award,but it shall not be responsible for any settlement made without its written consent. 2. DELIVERY AND RISK OF LOSS. Unless otherwise stated, all deliveries shall be F.O.B. ZOLL Section 10 states ZOLL Medical Corporation's total responsibility and liability/s,and the Customers sole Medical Corporation's facility.Risk of loss or damage to the Equipment shall pass to the Customer upon remedy for any actual or alleged infringement of any patent by the Equipment or the Software or any part delivery of the Equipment to the carrier. thereof provided hereunder. In no event shall ZOLL Medical Corporation be liable for any indirect, special,or consequential damages resulting from any such infringement. 3.TERMS OF PAYMENT.Unless otherwise stated in its Quotation payment by Customer is due thirty (30)days after the ship date appearing on ZOLL Medical Corporation invoice.Any amounts payable 11. CLAIMS FOR SHORTAGE. Each shipment of Equipment shall be promptly examined by the hereunder which remain unpaid after the date shall be subject to a late charge equal to 1.5%per month Customer upon receipt thereof.The Customer shall inform ZOLL Medical Corporation of any shortage in from the due date until such amount is paid. any shipment within ten(10)days of receipt of Equipment.If no such shortage is reported within ten(10) day period,the shipment shall be conclusively deemed to have been complete. 4.CREDIT APPROVAL.All shipments and deliveries shall at all times be subject to the approval of credit by ZOLL Medical Corporation.ZOLL Medical Corporation may at any time decline to make any 12.RETURNS AND CANCELLATION.(a)The Customer shall obtain authorization from ZOLL Medical shipment or delivery except upon receipt of payment or security or upon terms regarding credit or Corporation prior to returning any of the Equipment.(b)The Customer receives authorization from ZOLL security satisfactory to ZOLL Medical Corporation. Medical Corporation to return a product for credit,the Customer shall be subject to a restocking charge of twenty percent(20%)of the original list purchase price,but not less than$50.00 per product.(c)Any 5.TAXES&FEES.The pricing quoted in its Quotation do not include sales use,excise,or other similar such change in delivery caused by the Customer that causes a delivery date greater than six(6)months taxes or any duties or customs charges, or any order processing fees. The Customer shall pay in from the Customers original order date shall constitute a new order for the affected Equipment in addition for the prices quoted the amount of any present or future sales,excise or other similar tax or determining the appropriate list price. customs duty or charge applicable to the sale or use of the Equipment sold hereunder(except any tax based on the net income of ZOLL Medical Corporation),and any order processing fees that ZOLL may 13.APPLICABLE LAW.This Quotation and the Contract shall be governed by the substantive laws of apply from time to time.In lieu thereof the Customer may provide ZOLL Medical Corporation with a tax the Commonwealth of Massachusetts without regard to any choice of law provisions thereof. exemption certificate acceptable to the taxing authorities. 14.COMPLIANCE WITH LAWS.(a)ZOLL Medical Corporation represents that all goods and services 6.WARRANTY.(a)ZOLL Medical Corporation warrants to the Customer that from the earlier of the date delivered pursuant to the Contract will be produced and supplied in compliance with all applicable state of installation or thirty(30)days after the date of shipment from ZOLL Medical Corporation's facility,the and federal laws and regulations,including the requirements of the Fair Labor Standards Act of 1938,as Equipment(other than accessories and electrodes)will be free from defects in material and workmanship amended.(b)The Customer shall be responsible for compliance with any federal,state and local laws under normal use and service for the period noted on the reverse side.Accessories and electrodes shall and regulations applicable to the installation or use of the Equipment furnished hereunder,and will obtain be warranted for ninety (90) days from the date of shipment. During such period ZOLL Medical any permits required for such installation and use. Corporation will at no charge to the Customer either repair or replace(at ZOLL Medical Corporation's sole option)any part of the Equipment found by ZOLL Medical Corporation to be defective in material or 15. NON-WAIVER OF DEFAULT. In the event of any default by the Customer, ZOLL Medical workmanship.If ZOLL Medical Corporation's inspection detects no defects in material or workmanship, Corporation may decline to make further shipments or render any further warranty or other services ZOLL Medical Corporation's regular service charges shall apply.(b)ZOLL Medical Corporation shall not without in any way affecting its right under such order.If despite any default by Customer,ZOLL Medical be responsible for any Equipment defect failure of the Equipment to perform any specified function,or Corporation elects to continue to make shipments its action shall not constitute a waiver of any default by any other nonconformance of the Equipment caused by or attributable to(i)any modification of the the Customer or in any way affect ZOLL Medical Corporation's legal remedies regarding any such Equipment by the Customer,unless such modification is made with the prior written approval of ZOLL default.No claim or right arising out of a breach of the Agreement by the Customer can be discharged in Medical Corporation: (ii)the use of the Equipment with any associated or complementary equipment whole or in part by waiver or renunciation of the claim or right unless the waiver or renunciation is accessory or software not specified by ZOLL Medical Corporation,or(iii)any misuse or abuse of the supported by consideration and is in writing signed by ZOLL Medical Corporation. Equipment:(iv)exposure of the Equipment to conditions beyond the environmental,power or operating constraints specified by ZOLL Medical Corporation,or(v)installation or wiring of the Equipment other 16.ASSIGNMENT.This Quotation,and the Contract,may not be assigned by the Customer without the than in accordance with ZOLL Medical Corporation's instructions. (c)Warranty does not cover items prior written consent of ZOLL Medical Corporation,and any assignment without such consent shall be subject to normal wear and burnout during use,including but not limited to lamps,fuses,batteries,cables null and void. and accessories. (d) The foregoing warranty does not apply to software included as part of the Equipment(including software embodied in read-only memory known as"firmware").(e)The foregoing 17.TITLE TO PRODUCTS.Title to right of possession of the products sold hereunder shall remain with warranty constitutes the exclusive remedy of the Customer and the exclusive liability of ZOLL Medical ZOLL Medical Corporation until ZOLL Medical Corporation delivers the Equipment to the carrier and Corporation for any breach of any warranty related to the Equipment supplied hereunder. THE agrees to do all acts necessary to perfect and maintain such right and title in ZOLL Medical Corporation. WARRANTY SET FORTH HEREIN IS EXCLUSIVE AND ZOLL MEDICAL CORPORATION Failure of the Customer to pay the purchase price for any product when due shall give ZOLL Medical EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES WHETHER WRITTEN, ORAL, IMPLIED, OR Corporation the right,without liability to repossess the Equipment,with or without notice,and to avail STATUTORY,INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY OR itself of any remedy provided by law. FITNESS FOR A PARTICULAR PURPOSE. 18.EQUAL EMPLOYMENT OPPORTUNITY/AFFIRMATIVE ACTION. 7.SOFTWARE LICENSE.(a)All software(the"Software"which term shall include firmware)included as VETERAN'S EMPLOYMENT-If this order is subject to Executive Order 11710 and the part of the Equipment is licensed to Customer pursuant to a nonexclusive limited license on the terms rules,regulations,or orders of the Secretary of Labor issued thereunder the contract clause as set forth hereinafter set forth,(b)Customer may not copy,distribute,modify,translate or adapt the Software,and at 41 CFR 60-250.4 is hereby included as part of this order. may not disassemble or reverse compile the Software,or seek in any manner to discover,disclose or use any proprietary algorithms,techniques or other confidential information contained therein, (c)All EMPLOYMENT OF HANDICAPPED - if this order is subject to Section 503 of the rights in the Software remain the product of ZOLL Medical Corporation,and Customer shall have no right Rehabilitation Act of 1973,as amended and the rules,regulations or orders of the Secretary of Labor as or interest therein except as expressly provided herein.(d)Customer's right to use the Software may be issued thereunder,the contract clause at 41 CFR 60-741.7 is hereby included as part of this order. terminated by ZOLL Medical Corporation in the event of any failure to comply with terms of this quotation,(e)Customer may transfer the license conferred hereby only in connection with a transfer of EQUAL OPPORTUNITY EMPLOYMENT - if this order is subject to the provisions of the Equipment and may not retain any copies of the Software following such transfer.(f)ZOLL Medical Executive Order 11246, as amended, and the rules, regulations or orders of the Secretary of Labor Corporation warrants that the read-only memory or other media on which the Software is recorded will be issued thereunder,the contract clause set forth at 41 CFR 60-1.4(a)and 60-1.4(b)are hereby included free from defects in materials and workmanship for the period and on terms set forth in section 6.(g) as a part of this order and Seller agrees to comply with the reporting requirements set forth at 41 CFR Customer understands that the Software is a complex and sophisticated software product and no 60-1.7 and the affirmative action compliance program requirements set forth as 41 CFR 60-1.40. assurance can be given that operation of the Software will be uninterrupted or error-free,or that the Software will meet Customers requirements. Except as set forth in section 7(f), ZOLL MEDICAL 19. VALIDITY OF QUOTATION. This Quotation shall be valid and subject to acceptance by the CORPORATION MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE Customer,in accordance with the terms of Section 1 hereof for the period set forth on the face hereof. SOFTWARE AND IN PARTICULAR DISCLAIMS ANY IMPLIED WARRANTIES OR After such period,the acceptance of this Quotation shall not be binding upon ZOLL Medical Corporation MERCHANTABILITY OR FITNESS OF A PARTICULAR PURPOSE WITH RESPECT THERETO. and shall not create a contract,unless such acceptance is acknowledged and accepted by ZOLL Medical Customer's exclusive remedy for any breach of warranty or defect relating to the Software shall be the Corporation by a writing signed by an authorized representative of ZOLL Medical Corporation. repair or replacement of any defective read-only memory or other media so that it correctly reproduces the Software. This License applies only to ZOLL Medical Corporation Software. 20.GENERAL. Any Contract resulting from this Quotation shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts. This constitutes the entire 8.DELAYS IN DELIVERY.ZOLL Medical Corporation shall not be liable for any delay in the delivery of agreement between Buyer and Supplier with respect to the purchase and sale of the Products described any part of the Equipment if such delay is due to any cause beyond the control of the ZOLL Medical in the face hereof, and only representations or statements contained herein shall be binding upon Corporation including,but not limited to acts of God,fires,epidemics,floods,riots,wars,sabotage,labor Supplier as a warranty or otherwise. Acceptance or acquiescence in the course of performance disputes, governmental actions, inability to obtain materials, components, manufacturing facilities or rendered pursuant hereto shall not be relevant to determine the meaning of this writing even though the transportation or any other cause beyond the control of ZOLL Medical Corporation. In addition ZOLL accepting or acquiescing party has knowledge of the nature of the performance and opportunity for Medical Corporation shall not be liable for any delay in delivery caused by failure of the Customer to objection. No addition to or modification of any of the terms and conditions specified herein shall be provide any necessary information in a timely manner. In the event of any such delay, the date of binding upon Supplier unless made in writing and signed by a duly authorized representative of Supplier. shipment or performance hereunder shall be extended to the period equal to the time lost by reason of The terms and conditions specified shall prevail notwithstanding any variance from the terms and such delay. In the event of such delay ZOLL Medical Corporation may allocate available Equipment conditions of any order or other form submitted by Buyer for the Products set forth on the face of this among its Customers on any reasonable and equitable basis. The delivery dates set forth in this Agreement. To the extent that this writing may be treated as an acceptance of Buyers prior offer,such Quotation are approximate only and ZOLL Medical Corporation shall not be liable for or shall the acceptance is expressly made conditional on assent by Buyer to the terms hereof,and,without limitation, Contract be breached by,any delivery by ZOLL Medical Corporation within a reasonable time after such acceptance of the goods by Buyer to the terms hereof,and,without limitation,acceptance of the goods dates. by Buyer shall constitute such assent. All cancellations and reschedules require a minimum of thirty(30) days notice. Page ZOLL Medical Corporation _ City of Chula Vista CITE CHVIAVISTA Legislation Details (With Text) File#: 14-0031 Name: Public Hearing Regarding the Formation of Community Facilities District No. 14M (Eastern Urban Center/Millenia) Type: Public Hearing Status: Agenda Ready File created: 1/21/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), DESIGNATING IMPROVEMENT AREAS THEREIN, AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WITHIN EACH IMPROVEMENT AREA Sponsors: Indexes: Code sections: Attachments: Item 7 - Resolution Item 7 -Attachment A Date Ver. Action By Action Result 2/11/2014 1 City Council CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), DESIGNATING IMPROVEMENT AREAS THEREIN, AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WITHIN EACH IMPROVEMENT AREA RECOMMENDED ACTION Council adopt the resolution. SUMMARY On January 7, 2014, Council initiated proceedings for the formation of CFD No. 14M by adoption of Resolutions 2014-003 through 2014-005. This action will be the next step in the proceedings to establish CFD No. 14M. This district will fund the perpetual operation and maintenance of (a) landscaping, including, but not limited to, parkways and medians; (b) facilities that are directly related to storm water quality control; (c) walls and fencing; (d) trails, (e) pedestrian bridges, including, but not limited to, graffiti removal; (f) public lighting facilities; and (g) public parks. The City has retained the services of NBS as special tax consultant and Best, Best and Krieger, LLP as legal counsel to provide assistance during the proceedings. City of Chula Vista Page 1 of 6 Printed on 2/7/2014 powered by LegistarTM File #: 14-0031, Version: 1 ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"as defined under Section 15378 of the State CEQA Guidelines because the creation of government funding mechanism is not considered a project; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION On January 13, 1998, Council adopted the "City of Chula Vista Statement of Goals and Policies regarding the establishment of Community Facilities Districts" (the "Goals and Policies"). The approval of this document ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized public services. Taxes levied by maintenance districts, such as CFD No. 14M, are currently excluded from the 2% maximum tax criterion set forth in the Goals and Policies. On April 28, 1998, Council, acting under its Charter authority, enacted the "Chula Vista Community Facilities District Ordinance" (the "Ordinance"). The Ordinance adopted the Mello-Roos Act with modifications to accomplish the following: (1) incorporate all maintenance activities authorized by the "Landscaping & Lighting Act of 1972" (the "1972 Act"); (2) include certain maintenance activities not listed in the Mello-Roos Act or the 1972 Act; and (3) establish an operating reserve fund for open space districts. CFD 14M will provide the necessary funding for the operation and maintenance of public landscaping, storm water quality, walls, fencing, trails, pedestrian bridges, lighting, and park improvements by levying an annual "special tax" which is collected from the property owners within CFD 14M in conjunction with property taxes or via direct billing. All expenses related to the district administration, including levying and collecting the special taxes, are also funded from such special taxes. On September 15, 2009, Council approved an Agreement Regarding Construction of Parks in a Portion of Otay Ranch Eastern Urban Center (the "Parks Agreement"). The Parks Agreement states that the City and McMillin Otay Ranch LLC ("McMillin") shall split equally (50-50) the costs of maintaining the Public Parks in the Eastern Urban Center based on preliminary cost estimates provided by both the City and McMillin. The City's share (and thus McMillin's basic share) shall be based on the average annual cost for 21.51 acres each fiscal year as calculated for the City's budget for public parks. To ensure collection of the City's portion of the cost of the park maintenance, CFD 14M has been structured with two improvement areas with the City parks placed into the second improvement area. On December 17, 2013, Council, acting under its Charter authority, amended the Chula Vista Community Facilities District Ordinance to allow for the City park property to be placed into the improvement area. Each year, the City will be assessed for its portion of the costs to maintain the parks based on the average annual citywide maintenance cost for 21.51 acres budgeted for that fiscal year multiplied by a ratio of the public park acres in the Eastern Urban Center that have been turned over to the City for maintenance. The ordinance was also amended to allow the CFD City of Chula Vista Page 2 of 6 Printed on 2/7/2014 File #: 14-0031, Version: 1 Administrator to directly bill the City each year for the assessment so the public parks remain off the County property tax rolls. The proposed CFD 14M is consistent with the above-mentioned Ordinance as amended and the Goals and Policies. In addition, the staff and McMillin have met to discuss, review and clarify the intent of the Goals and Policies and Ordinance, the proposed special tax rates, and the methodology for the apportionment of the special taxes. Any matters raised by McMillin have been discussed and solutions, satisfactory to all parties, have been incorporated into the "Rate and Method of Apportionment" (the "RMA") presented at the January 7, 2014 Council meeting. During its January 7, 2014 meeting, the City Council approved Resolution No. 2014-005, which ordered the preparation of a Community Facilities District Report ("Report") (See Attachment "A"). The Report includes the following information in greater detail: Area of Benefit The proposed boundaries of CFD14M encompass parcels located within Millenia, an Urban Village of approximately two-hundred and six (206.6) acres located south of Birch Road Parkway, west of Eastlake Parkway, and east of State Route 125 (SR125). McMillin Otay Ranch, LLC owns 100% of the property within the proposed district. Millenia is proposed to contain approximately 2,983 multi- family units, 3,487 non-residential/commercial units, a public school (6.84 acres) and six neighborhood parks (12.88 acres). Staff has reviewed the recorded boundary map and has found it acceptable and ready for approval by Council. A reduced copy of the map is presented in the Report. Description of the Improvements to be Maintained The proposed CFD 14M will fund the operation, maintenance, and replacement of the public landscaping, storm water treatment, walls and fencing, trails, pedestrian bridges, lighting, and park improvements within Eastern Urban Center/Millenia. A complete list of such improvements is presented in the Report. Cost Estimate The estimated annual budget for CFD 14M is approximately $941 ,952. This budget includes a total of $664,498 for landscape, storm water quality, walls and fencing, trails, pedestrian bridges, lighting, and park maintenance; and a total of $191 ,014 that is set aside for the replacement of the amenities as they reach the end of their useful life. In addition, the budget includes $20,000 for CFD administration (preparing reports, levying and collecting taxes, public assistance, etc.) by the Engineering Division of the Public Works Department or their designee, and an additional $43,268 to fund an operating reserve for maintenance and $23,181 to fund an operating reserve for replacement. Staff (Public Works/Operations and Engineering) and NBS have reviewed and approved the proposed budget. The detailed budget is included in the Report. The actual City contribution for park maintenance will be based on the requirements in the Parks Agreement as noted above. Proposed Special Tax CFD 14M has six proposed categories of taxable property, as follows: - Developed Property (Apartment Property and Multi-Family Property are taxed based on the number of dwelling units and Non-Residential Property is taxed on the acreage of the parcel) City of Chula Vista Page 3 of 6 Printed on 2/7/2014 powered by LegistarTM File #: 14-0031, Version: 1 - Public Urban Parks Property (taxed on the acreage of the parcel) - Approved Property, Undeveloped Property and Taxable Property Owner Association Property (taxed on the acreage of the parcel) - Community Purpose Facility (CPF) Property not classified as exempt (taxed based on Non- Residential Property if classified as Developed Property and taxed as Undeveloped Property if undeveloped) The Exempt Category that is not taxed includes all publicly owned parcels excluding City parks, property owned by non-profit organizations, and parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. Developed Parcels are those parcels for which a building permit has been issued. The proposed maximum special tax rate in the RMA on all Developed Parcels was determined by dividing the estimated annual budget at build out (plus an operating reserve allocation of 10% of the annual budget) by the total estimated development at build out. For residential property, residential building square footage was used and for non-residential property, industrial and commercial estimated acreage was used. The proposed maximum special tax rate in the RMA on vacant land has been determined by dividing the estimated annual budget at build out by the estimated net lot acreage within the district. Collection of Taxes At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability (budget plus reserve) of the CFD. Then, the special taxes will first be levied on the Developed Property. If this pool of funds is not enough to fund the Special Tax Liability, as may be the case in the early years of development, the district will levy the special tax on the Approved Property, and then the Undeveloped Property, and finally the Taxable Property Owner Association Property. The buffer of potentially having all of the other categories of property covering any portion of the Special Tax Liability not funded from special taxes levied on the Developed Property will disappear once the area has been fully developed (except for the City Park Property). If the Special Tax Liability for any fiscal year is less than the maximum special tax authorized to be levied on the Developed Parcels, the actual rate of the special taxes to be levied in that specific year will be reduced accordingly. Special taxes shall be levied each year on the City Park Property based on the requirements in the Parks Agreement as noted above. Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes": - The maximum special taxes rates shall be adjusted each year for inflation using a factor equal to the greater of the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Price Index (CPI-U), or 0%. However, the maximum special taxes assessed to the City for the City Park Property shall be adjusted each year based on the average annual citywide maintenance cost for 21 .51 acres budgeted for that fiscal year multiplied by a ratio of the public park acres in the Eastern Urban Center that has been turned over to the City for maintenance. - The Ordinance requires that the developer maintain the landscape and park improvements for City of Chula Vista Page 4 of 6 Printed on 2/7/2014 powered by LegistarTM File #: 14-0031, Version: 1 the minimum period of one year following their completion. During this period the District will collect the special taxes with the purpose of building up a six months operating reserve. The RMA provides that the annual budget for any year may include an amount deemed necessary to maintain an adequate level of this operating reserve fund. - The maximum special tax rates are based on a conservative estimate by the developer of the number of residential dwelling units and the acreage of non-residential (industrial and commercial) development within CFD 14M. If the actual number of units or acreage of development meets or exceeds the projections on which the special tax rates were based, the actual special tax rate necessary to be levied annually to fund the Special Tax Liability may be less than the authorized maximum special tax. - The annual budget used to calculate the special tax rates are only the "best estimates" of the cost of maintenance at build out. There is always a risk that actual expenses in future years may be higher than the total maximum collectable special taxes. This may result in reduced levels of maintenance of landscaping and the parks, unless the property owners approve an increase in the special tax rates (2/3 voter approval is required). It is anticipated, however, that the proposed maximum special tax rates contain enough of a cushion in the operating reserve, the inflation adjustment, and the assumed reduction of total square footage of residential development and total acreage of non-residential (industrial and commercial) development to minimize the risk of future special tax revenue shortfalls. Proposed Maximum Annual Special Taxes The proposed maximum special tax rates for fiscal year 2014/15 for a typical dwelling unit within CFD 14M are as follows: Land Use Class Description Maximum Special Tax 1 Apartment Property $189.00 per Dwelling Unit 2 Multi-Family Property $252.00 per Dwelling Unit 3 Non-Residential Property $1 ,259.00 per Acre Resolution There is one resolution with this agenda, which, if adopted, will accomplish the following: The RESOLUTION OF FORMATION is the formal action of the City Council forming and establishing CFD No. 14M and authorizes the electors within each improvement area to vote on the special taxes. 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. Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the goal of Economic Vitality, which includes promoting and supporting the development of quality master planned communities. City of Chula Vista Page 5 of 6 Printed on 2/7/2014 powered by LegistarTM File #: 14-0031, Version: 1 CURRENT YEAR FISCAL IMPACT All costs of formation of the district are being borne by the developers and the on-going administration will be funded entirely by the district. The City will recover the full cost of staff time expended in district formation and administration activities in perpetuity. ONGOING FISCAL IMPACT McMillin will be building the six public parks on behalf of the City to meet their park obligations, so there will be no capital costs related to the construction of the parks. One of the parks will be privately maintained, but open to the public. The cost for the maintenance for the five remaining parks shall be shared between the property owners and the City as described in the discussion section of this report. The total annual cost for all the parks is estimated to be $319,859 to the property owners and $319,859 to the General Fund. This includes both maintenance of the parks and periodic replacement of amenities as needed. The development of Millenia will generate additional property tax and sales tax that will help offset the annual General Fund expenditure. Construction for the first public park is anticipated to be complete by the end of 2015 with the park opening in early 2016. The fiscal year 2015/16 impact for this 1 .97 acre park is estimated to be $59,445 to the General Fund, along with $59,445 to be incurred by the property owners. ATTACHMENTS A. Community Facilities District Report City of Chula Vista Page 6 of 6 Printed on 2/7/2014 powered by LegistarTM RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), DESIGNATING IMPROVEMENT AREAS THEREIN, AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WITHIN EACH IMPROVEMENT AREA WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY OF CHULA VISTA (the "City Council"), now desires to proceed with the establishment of a community facilities district, pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). Such Community Facilities District shall hereinafter be referred to as Community Facilities District No. 14 M (Eastern Urban Center/Millenia) (the"District"); and, WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the financing of certain types of services and all other related matters has been given, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish such District; and, WHEREAS, all communications relating to the establishment of the District, the designation of Improvement Area No. 1 and Improvement Area No. 2 within the District (collectively the "Improvement Areas" and individually an "Improvement Area"), the proposed services and the rates and methods of apportionment of the special tax proposed to be levied within the District and the Improvement Areas have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings or the levy of the special tax within the District; and WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territory of each Improvement Area of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within the District shall be submitted to the landowners of each such Improvement Area, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Determinations. It is hereby determined by this City Council that: 60297.00043\852861 1. 11 A. All prior proceedings pertaining to the formation of the District and designation of the Improvement Areas were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majority protest as defined by the applicable provisions of the Community Facilities District Law and, therefore, the special tax proposed to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. The District as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the"Goals and Policies"), as amended. D. Less than twelve (12) registered voters have resided within the territory of each Improvement Area within the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of such Improvement Area shall be the landowners of the District as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within such Improvement Area. E. The time limit specified by the Community Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors of each Improvement Area within the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of each Improvement Area. F. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution forming and establishing the District. SECTION 3. Community Facilities District Report. The Community Facilities District Report, as now submitted, shall stand as the Community Facilities District Report for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. Name of District. This legislative body does hereby establish and declare the formation of the Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA)." SECTION 5. Boundaries of the District. The boundaries of the District are generally described as follows: All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), as shown on a boundary 60297.00043\8528611. 12 map as previously approved by this legislative body, such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego, at Page 39 of Book 44 of the Book of Maps of Assessment and Community Facilities Districts for the County of San Diego (the "County"). SECTION 6. Designation of Improvement Areas. For purposes of financing of, or contributing to the financing of the types of services described in Section 7 below, this City Council, acting pursuant to Government Code Section 53350, hereby designates portions of the District as the following Improvement Areas as shown on the Boundary Map of the District: IMPROVEMENT AREA NO. 1 IMPROVEMENT AREA NO. 2 SECTION 7. Description of Services. It is the intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be provided is provided in Exhibit"A" attached hereto. SECTION 8. Special Tax. Except where funds are otherwise available special taxes, secured by recordation of a continuing lien against all non-exempt real property in the respective Improvement Areas of the District, are hereby authorized, subject to voter approval, to be levied annually within the boundaries of such District. Under no circumstances will the special tax authorized to be levied within an Improvement Area be increased as a consequence of delinquency or default by the owner of any other parcel or parcels used for private residential purposes and located within such Improvement Area by more than 10 percent. For further particulars as to the rate and method of apportionment of the special taxes proposed to be levied within Improvement Area No. 1 and Improvement Area No. 2, reference is made to the attached and incorporated Exhibit "B," which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within each such Improvement Area to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue 60297.00043\8528611. 13 in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. SECTION 9. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes described in Section 8 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 8. above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 8. above. C. The District shall establish a separate account into which the proceeds of each such special tax shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 10. Preparation of Annual Tax Roll. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Public Works Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 SECTION 11. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of each Improvement Area within the District, such electors being the landowners within each such Improvement Area, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within each such Improvement Area. This legislative body hereby further directs that a separate ballot proposition relating to the levy of the above referenced special taxes within each Improvement Area be combined and consolidated with the proposition set forth in Section 12 below relating to the establishment of an appropriations limit for the District. The proposition related to the levy of the special taxes, together with a proposition to establish an appropriations limit for the District, shall be submitted to the qualified electors of each Improvement Area at a special election to be held on (a) February 11, 2014, immediately following the adoption of this resolution or (b) such other date as the qualified electors and the 60297.00043\8528611. 14 City Clerk may mutually agree and such election shall be a special election to be conducted by the City Clerk (hereinafter referred to as the "Election Official"). If either or both of the propositions for the levy of the special taxes receive the approval of more than two-thirds (2/3rds) of the votes cast on the proposition, the special tax thereby approved may be levied as provided for in this Resolution. SECTION 12. Ballot Proposals. The ballot proposals to be submitted to the qualified electors of the Improvement Areas at the election shall generally be as follows: IMPROVEMENT AREA NO. 1 PROPOSITION A Shall Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista be authorized to levy special taxes throughout Improvement Area No. 1 of such district, subject to the accountability measures set forth in Resolution of Formation, within the such district pursuant to the rate and method of apportionment of special taxes (the "Rate and Method") set forth in such resolution for the purpose of financing the Special Tax Requirement as defined in the Rate and Method? IMPROVEMENT AREA NO. 2 PROPOSITION B Shall Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista be authorized to levy special taxes throughout Improvement Area No. 2 of such district, subject to the accountability measures set forth in Resolution of Formation, within the such district pursuant to the rate and method of apportionment of special taxes (the "Rate and Method") set forth in such resolution for the purpose of financing the Special Tax Requirement as defined in the Rate and Method? PROPOSITION C Shall the City of Chula Vista Community Facilities District No. 14M (Eastern Urban Center/Millenia) establish an Article XIIIB appropriations limit equal to $10,000,000.00. SECTION 13. Vote. The appropriate mark placed in the voting square after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. SECTION 14. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for holding the above election. The Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of the election, including but not limited to, the following: I. Prepare and furnish the necessary election supplies for the conduct of the election. 60297.00043\8528611. 15 2. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. 3. Furnish official ballots for the qualified electors of the District. 4. Cause the official ballots to be presented to the qualified electors, as required by law. 5. Receive the returns of the election and supplies. 6. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. 7. Canvass the returns of the election. 8. Furnish a tabulation of the number of votes given in the election. 9. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. PREPARED BY: APPROVED AS TO FORM BY: Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 60297.00043\8528611. 16 EXHIBIT "A" Community Facilities District No. 14M (Eastern Urban Center/Millenia) DESCRIPTION OF SERVICES IMPROVEMENT AREA NO. 1 DESCRIPTION OF SERVICES The types of services to be funded by special taxes levied within Improvement Area No. 1 ("Improvement Area No. 1 Services") shall include maintenance and servicing of the following facilities (the "Improvement Area No. 1 Facilities") and any administrative expenses related thereto: L STREET FRONTAGE MAINTENANCE Eastlake Parkway Trees Palms Planting Areas/Irrigation/Recycled water Rodent Control Enhances paving Birch Road Trees Palms Planting Areas/Irrigation/Recycled water Rodent Control Enhanced paving Recycled Water Irrigation Meters Back flow preventer inspection Wireless for irrigation controller Trash Receptacles Bike rack Benches Bus Rapid Transit Facility Palms Planting Areas/Irrigation/Recycled water Rodent Control Decomposed Granite Medians Eastlake Pkwy (Birch to Hunte Pkwy) 50% Birch (I-125 to Eastlake Pkwy) 100% 60297.00043\8528611.1 A- I Pedestrian Bridge (over Eastlake Pkwy) Bus Stop Trash receptacles Maintenance IL PARK MAINTENANCE (PUBLIC URBAN PARKS) Frontages (Parks 1,2,4, 5 and 6) Trees— shade Palms Planting Areas/Irrigation/Recycled water Rodent Control Recycled Water Irrigation Meters Back flow preventer inspection Wireless for irrigation controller Enhanced paving Porous pavers Decomposed Granite Uplighting Decorative Lighting Planting/Irrigation Trees— shade Trees— ornamental Palms Planting Areas/Irrigation/Recycled water Sod/Irrigation/Recycled Water Rodent Control Recycled Water Irrigation Meters Potable Water Irrigation Meters Wireless for irrigation controller Back flow preventer inspection Hardscape Seat Wall Flatwork Pedestrian paving (concrete and pavers) Decomposed granite Playground surfacing 60297.00043\8528611.1 A- 2 Site Furniture Bike Racks Trash Receptacles/Collection Dog Waste Bag Dispenser/Collection/Disposal Benches Picnic Tables Moveable Tables and Chairs Umbrellas Decorative Lighting Metalwork Metal fence/gate Site Amenities/Features Fountain Fountain—Interactive or large Spray Park SCADA Monitoring System Signage,Wayfinding Elements Sculpture,Art Elements Playground Equipment Overlook Platform Tree House Outdoor Theater Regional Trail Regional trail Structures Restrooms, Maintained storage Gazebo, Pavilion Trellis, Overhead Structure Athletic Facilities Basketball Court Tennis Court III. BIORETENTION MAINTENANCE Bioretention Basins Inspection/Ongoing Maintenance Replacement 3 times per 100 years Street M Underground Detention 60297.00043\8528611.1 A- 3 IV. STORM WATER MAINTENANCE Wolf Canyon Detention Basin Vegetation Removal Silt Removal Maintenance Silt Removal Screen Replacement Engineer's Inspection Periodic Inspection and Maintenance Bioretention Facilities Poggi Canyon Channel Detention Basin Birch Street Filters Vactor Truck Replacement For purposes of this description of the Improvement Area No. 1 Services to be funded by the levy of Special Taxes within Improvement Area No. 1, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvement Area No. I Facilities, including: (a) Repair, removal, or replacement of all or any part of any Improvement Area No. I Facilities. (b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The removal of trimmings, rubbish, debris, silt, and other solid waste. (d) The cleaning, sandblasting, and painting of walls and other Improvement Area No. 1 Facilities to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. For purposes of this description of the Improvement Area No. I Services to be funded by Special Taxes levied within Improvement Area No. 1, "servicing" includes, but is not limited to, the furnishing of: (a) Electric current or energy, gas, or other illuminating agent for any public lighting for Improvement Area No. 1 Facilities or for the lighting or operation of any other improvements related thereto. (b) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other Improvement Area No. 1 Facilities. For purposes of this description of the Improvement Area No. 1 Services to be funded by the levy of Special Taxes within Improvement Area No. 1, "administrative expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the District as the administrator thereof, to determine, levy and collect the Special Taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing 60297.00043\8528611.1 A- 4 services related to the administration of the District; the costs of collecting installments of the Special Taxes levied within Improvement Area No. 1; and any other costs required to administer Improvement Area No. I as determined by the City. IMPROVEMENT AREA NO. 2 DESCRIPTION OF SERVICES The types of services to be funded by Special Taxes levied within Improvement Area No. 2 ("Improvement Area No. 2 Services") shall include maintenance and servicing of the following facilities (the "Improvement Area No. 2 Facilities") and any administrative expenses related thereto: L PARK MAINTENANCE (PUBLIC URBAN PARKS) Frontages (Parks 1,2,4, 5 and 6) Trees— shade Palms Planting Areas/Irrigation/Recycled water Rodent Control Recycled Water Irrigation Meters Back flow preventer inspection Wireless for irrigation controller Enhanced paving Porous pavers Decomposed Granite Uplighting Decorative Lighting Planting/Irrigation Trees— shade Trees— ornamental Palms Planting Areas/Irrigation/Recycled water Sod/Irrigation/Recycled Water Rodent Control Recycled Water Irrigation Meters Potable Water Irrigation Meters Wireless for irrigation controller Back flow preventer inspection Hardscape Seat Wall Flatwork Pedestrian paving (concrete and pavers) Decomposed granite Playground surfacing 60297.00043\8528611.1 A- 5 Site Furniture Bike Racks Trash Receptacles/Collection Dog Waste Bag Dispenser/Collection/Disposal Benches Picnic Tables Moveable Tables and Chairs Umbrellas Decorative Lighting Metalwork Metal fence/gate Site Amenities/Features Fountain Fountain—Interactive or large Spray Park SCADA Monitoring System Signage,Wayfinding Elements Sculpture,Art Elements Playground Equipment Overlook Platform Tree House Outdoor Theater Regional Trail Regional trail Structures Restrooms, Maintained storage Gazebo, Pavilion Trellis, Overhead Structure Athletic Facilities Basketball Court Tennis Court For purposes of this description of the Improvement Area No. 2 Services to be funded by Special Taxes levied within Improvement Area No. 2, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvement Area No. 2 Facilities, including: (a) Repair, removal, or replacement of all or any part of any Improvement Area No. 2 Facility. (b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The removal of trimmings,rubbish, debris, and other solid waste. 60297.00043\8528611.1 A- 6 (d) The cleaning, sandblasting, and painting of walls and other Improvement Area No. 2 Facilities to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. For purposes of this description of the Improvement Area No. 2 Services to be funded by Special Taxes levied within Improvement Area No. 2, "servicing" includes the furnishing of (a) Electric current or energy, gas, or other illuminating agent for any public lighting for Improvement Area No. 2 Facilities or for the lighting or operation of any other improvements related thereto. (b) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other Improvement Area No. 2 Facilities. For purposes of this description of the Improvement Area No. 2 Services to be funded by the levy of Special Taxes within Improvement Area No. 2, "administrative expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the District as the administrator thereof, to determine, levy and collect the Special Taxes within Improvement Area No. 2, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the District; the costs of collecting installments of the Special Taxes levied within Improvement Area No. 2; and any other costs required to administer Improvement Area No. 2 as determined by the City. 60297.00043\8528611.1 A- 7 EXHIBIT `B" Community Facilities District No. 14M (Eastern Urban Center/Millenia) RATE AND METHOD OF APPORTIONMENT 60297.00043\8528611.1 13- 1 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 14M RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 (Eastern Urban Center/Millenia) A Special Tax of Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista ("CFD") shall be levied on all Taxable Property in the CFD and collected each Fiscal Year commencing in Fiscal Year 2014-2015 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All such Taxable Property shall be taxed for the purposes, to the extent and in the manner herein provided. DEFINITIONS The terms hereinafter set forth have the following meanings: "`A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act (California Government Code Section 66410 et seq.) and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. In the event that parcel acreage information is not available from the sources previously listed, San Diego County GIS data may be utilized. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of Improvement Area No. 1; the costs of collecting installments of the Special Taxes within Improvement Area No. 1; and any other costs required to administer Improvement Area No. 1 as determined by the City. 60297.00043\8528611.1 B- 2 "Apartment Property" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in an `A' Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots thereon, that were recorded prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. If any parcel of Public Urban Parks Property is not shown on an Assessor's Parcel Map or assigned an assessor's parcel number, an Assessor's Parcel of such property shall mean that property as shown on the instrument conveying the title of such property to the City. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista. "CFD Boundary Map" entitled "Proposed Boundaries of Community Facilities District No. 14M (Eastern Urban Center/Millenia), City of Chula Vista, County of San Diego, State of California" as recorded in the Office of the County Recorder of the County of San Diego on January 23, 2014 as Document No. 2014-0030558 at Page 39 of Book 44 of the Book of Maps of Assessment and Community Facilities Districts for such County. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "City Share" means the City's Share of the budgeted costs of the maintenance of the Public Urban Parks Property, as determined in accordance with the Eastern Urban Center Parks Agreement and Section E below. "Community Purpose Facility Property" or "CPF Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. 60297.00043\8528611.1 B- 3 "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Eastern Urban Center Parks Agreement" means that certain Agreement Regarding Construction of Parks in a Portion of Otay Ranch Eastern Urban Center made and entered into as of the 15th day of September, 2009 by and between the City and McMillin Otay Ranch LLC, as recorded on October 28, 2009 with the San Diego County Recorder's Office, Document Number 2009-0599389, or as otherwise modified and agreed upon by all parties thereto. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" means all property within the boundaries of such improvement area as shown on the CFD Boundary Map. "Improvement Area No. 1 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 1 as described in the CFD special tax report and Administrative Expenses. "Improvement Area No. 1 Operating Fund Requirement" means, for any Fiscal Year, an amount equal to the budgeted costs for Improvement Area No. 1. The budgeted costs for Improvement Area No. 1 shall equal (i) the greater of(A) 50% of the budgeted costs for maintenance of the Public Urban Parks Property and (B) 100% of such budgeted costs minus the City Share; plus (ii) the budget costs of landscape maintenance, street frontage maintenance, bio-retention maintenance, storm water maintenance, and the maintenance, repair and replacement of the facilities and improvements, other than the Public Urban Parks Property, which have been accepted and or maintained by the CFD during the current Fiscal Year; plus (iii) the budgeted Administrative Expenses for the current Fiscal Year in which Special Taxes are levied. 60297.00043\8528611.1 B- 4 "Improvement Area No. 1 Reserve Fund" means a fund that shall be maintained for the CFD for Improvement Area No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes within Improvement Area No. 1 and a reasonable buffer to prevent large variations in annual Special Tax levies within Improvement Area No. 1. "Improvement Area No. 1 Reserve Fund Requirement" means an amount equal to up to 100% of the Improvement Area No. 1 Operating Fund Requirement for any Fiscal Year. "Improvement Area No. 1 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay the Improvement Area No. 1 Operating Fund Requirement; (ii) pay any amounts required to establish or replenish the Improvement Area No. 1 Reserve Fund to the Improvement Area No. 1 Reserve Fund Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes within Improvement Area No. 1 based on the delinquency rate for Special Taxes levied in the previous Fiscal Year within Improvement Area No. 1; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Improvement Area No. 1 Reserve Fund above the Improvement Area No. 1 Reserve Fund Requirement and any amount remaining in the Improvement Area No. 1 Operating Fund that is available to pay the Improvement Area No. 1 Operating Fund Requirement in such Fiscal Year. "Improvement Area No. 2" means all property within the district boundaries that is owned by the City and classified as Public Urban Parks Property. "Improvement Area No. 2 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 2 as described in the CFD special tax report. "Improvement Area No. 2 Operating Fund Requirement" means, for any Fiscal Year, an amount equal to the City Share. "Improvement Area No. 2 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to pay the Improvement Area No. 2 Operating Fund Requirement less a credit for funds, if any, available to reduce the annual Special Tax levy within Improvement Area No. 2 and any amount remaining in the Improvement Area No. 2 Operating Fund that is available to pay the Improvement Area No. 2 Operating Fund Requirement in such Fiscal Year. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. 60297.00043\8528611.1 B- 5 "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Property and Non-Residential Property uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, only the Residential Land Use Class thereon is subject to taxation pursuant to the provisions of Section C. "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential dwelling units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, and condominiums. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s)has been issued for a structure or structures for non-residential use. "Ordinance" means the Chula Vista Community Facilities District Ordinance, being Ordinance No. 2730 enacted on April 28, 1998, as modified and supplemented by Ordinance No. 3293, enacted on December 17, 2013. "Property Owner Association Property" means any property within the CFD boundaries that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the CFD boundaries that has provided proof to the City prior to March 1 st preceding the Fiscal Year in which the Special Tax is being levied, that it is expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency, excluding Public Urban Parks Property. "Public Urban Parks" means those parks to which the City accepts title pursuant to the Eastern Urban Center Parks Agreement. "Public Urban Parks Property" means all Assessor's Parcels that are owned by the City and upon which the Public Urban Parks are located or to be located. "Residential Property" means all Assessor's Parcels of Developed Property classified as Apartment Property or Multi-Family Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means the Special Tax levied pursuant to the provisions of sections D and E below in each Fiscal Year on each Assessor's Parcel of Developed Property, Approved Property, and Undeveloped Property in Improvement Area No. 1 to fund the Improvement Area No. 1 Special Tax Requirement and the Public Urban Parks Property to fund the Improvement Area No. 2 Special Tax Requirement. 60297.00043\8528611.1 13- 6 "State" means the State of California. "Taxable Property" means, as to Improvement Area No. 1, all of the Assessor's Parcels within the boundaries of Improvement Area No. I that are not exempt from the Special Tax pursuant to law or as defined below under Tax-Exempt Property and, as to Improvement Area No. 2, all Assessor's Parcels of Public Urban Parks Property. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property excluding Taxable Property Owner Association Property, or (iii) Assessor's Parcels of Taxable CPF Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section F below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Taxable Property Owner Association Property. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be (a) categorized as being located in either Improvement Area No. 1 or Improvement Area No. 2; (b) classified as Developed Property, Public Urban Parks Property,Approved Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable CPF Property, and (c) subject to the levy of Special Taxes pursuant to Sections D and E below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. The Land Use Class of each Assessor's Parcel of Residential Property or Mixed Use Property shall be determined based on the records of the San Diego County Assessor, or other such information provided by the City. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section F below shall be taxed as Non- Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is undeveloped it shall be classified as Undeveloped Property. 60297.00043\8528611.1 13- 7 MAXIMUM SPECIAL TAX RATE Improvement Area No. 1 a. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 14M within Improvement Area No. 1 Land Use Maximum Class Description Special Tax (1) 1 Apartment Property (2) $189.00 per Dwelling Unit (3) 2 Multi-Family Property (4) $252.00 per Dwelling Unit (5) 3 Non-Residential Property (6) $1,259.00 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall only be levied on the Residential Property Land Use Class located on that Assessor Parcel(s). Sample Maximum Special Tax Calculation for Mixed Use (Non-Residential Property and Apartment Property) Under the proposed example, assume that Assessor's Parcel Number 1 is classified as a Mixed Use Property. Assessor's Parcel Number 1 is a 2 Acre parcel that contains 10,000 square feet of retail shops and Apartment Property with 10 residential dwelling units. The following table shows what the expected annual Maximum Special Tax would be for Assessor's Parcel Number 1. No. of Non-Residential Residential Assessor Residential Property Property Total Annual Parcel Parcel Dwelling Maximum Maximum Maximum No. Acreage Units Special Tax Special Tax Special Tax 1 2.00 10 $0.00 $1,890.00 $1,890.00 (7) The Maximum Special Tax is based upon the initial Maximum Special Tax rates as defined in Table 1. 60297.00043\8528611.1 B- 8 i. Approved Property, Undeveloped Property and Taxable Property Owner Association Property within Improvement Area No. I The Maximum Special Tax for Approved Property, Undeveloped Property and Taxable Property Owner Association Property shall be $4,359.00 per Acre. Improvement Area No. 2 a. Public Urban Parks Property TABLE 2 Maximum Special Tax for Public Urban Parks Property Community Facilities District No. 14M within Improvement Area No. 2 Land Use Maximum Class Description Special Tax (8) 1 Public Urban Parks (9) $33,049.00 per Acre Property Annual Escalation of Maximum Special Tax The Maximum Special Tax for Improvement Area No. 1 and Improvement Area No. 2 as shown in Tables I and 2 above that may be levied on each Assessor's Parcel in the CFD shall be adjusted each Fiscal Year beginning in Fiscal Year 2014-15 and thereafter by a factor equal to the greater of, the positive percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items) from the base date of June 1, 2013 through June 1 of the prior Fiscal Year, or 0%, provided the Maximum Special Tax shall never be less than the amounts shown in Tables 1 and 2,respectively. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax in Improvement Area No. I at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Improvement Area No. 1 Special Tax Requirement. The Special Tax in Improvement Area No. 1 shall be levied each Fiscal Year as follows: 60297.00043\8528611.1 13- 9 First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within Improvement Area No. 1 up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Multi-Family Property or Apartment Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Improvement Area No. 1. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 2 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax Proportionately on all Public Urban Parks Property within Improvement Area No. 2 up to 100% of the Maximum Special Tax as necessary to fully fund the Improvement Area No. 2 Special Tax Requirement. For the purposes of determining the Improvement Area No. 1 Operating Fund Requirement and the Improvement Area No. 2 Operating Fund Requirement, the City Share shall be the lesser of the amount determined in Step One and Step Two below. Step One: The City shall calculate the amount equal to 50% of the budgeted costs for maintenance of the Public Urban Parks Property that has been accepted and or maintained by the CFD during the current fiscal year, for the current fiscal year in which the Special Taxes are being levied, and for Public Urban Parks Property that the City anticipates accepting during the upcoming Fiscal Year. 60297.00043\8528611.1 B- 10 Step Two: As outlined in Section 5.1(a) of the Eastern Urban Center Parks Agreement, each Fiscal Year, after the Council adopts the City's annual operating budget, the City shall calculate the City's total annual public park maintenance cost included in the budget. The City shall also calculate the acreage of public parks that are maintained and owned by the City and included in the budget (including the Public Urban Parks Property for which the City has accepted title). The total annual cost shall be divided by the total park acreage to determine the City's average annual park maintenance cost per acre for that Fiscal Year. This amount shall be multiplied by 21.51 acres and then multiplied by a fraction, the numerator of which is the acreage of the Public Urban Parks Property for which the City has accepted title and for which the City is currently assessing a Special Tan in anticipation of acceptance by the City and the denominator of which is 10.60 acres. If the amount calculated pursuant to this Step Two is lower than the amount calculated under Step One above, it shall be the City Share unless the City Manager, at his or her own sole discretion, elects to use the higher amount as the City Share in order to maintain the fifty/fifty (50-50) split of maintenance costs as outlined in Section 5.1(a) of the Eastern Urban Parks Agreement. F. EXEMPTIONS The CFD Administrator shall classify as Tax-Exempt Property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as CPF Property that are owned by a non-profit organization which provides proof to the City prior to March 1St preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as Tax-Exempt Property within Improvement Area No. 1 those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all Taxable Property within Improvement Area No. 1 to less than 130.39 Acres. Assessor's Parcels defined as Property Owner Association Property and CPF Property that cannot be classified as Tax- Exempt Property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign tax-exempt status in the chronological order in which property becomes exempt Public Property or CPF Property or Tax-Exempt Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or CPF Property or Tax-Exempt Property Owner Association Property, its tax-exempt status will be revoked. Taxable Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property and Taxable CPF Property. There shall be no Tax-Exempt Property within Improvement Area No. 2. 60297.00043\8528611.1 B- 11 G. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists; such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. H. MANNER OF COLLECTION Special Taxes levied in Improvement Area No. 1 pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. Special Taxes levied in Improvement Area No. 2 pursuant to Section E above shall be collected by direct billing by the CFD Administrator, such Special Taxes to be due and payable and shall become delinquent at the same time as Special Taxes levied within Improvement Area No. 1. L TERM OF SPECIAL TAX Taxable Property in Improvement Area No. 1 and Improvement Area No. 2 of the CFD shall remain subject to the Special Tax in perpetuity or until the Council takes appropriate actions to terminate the Special Tax in both Improvement Areas pursuant to the Act. 60297.00043\8528611.1 B- 12 City of Chula Vista Community Facilities District No. 14M (Eastern Urban Center/Millenia) Improvement Area No. 1 and Improvement Area No. 2 Special Tax Report January 2014 Prepared by � NBS For and on behalf of the City of Chula Vista Main Office 32605 Temecula Parkway,Suite 100 Temecula,CA 92592 Toll free:800.676.7516 Fax:951.296.1998 Regional Office 870 Market Street,Suite 1223 San Francisco,CA 94102 Toll free:800.434.8349 Fax:415.391.8439 TABLE OF CONTENTS INTRODUCTION 1 IMPROVEMENT AREA'S 2 DESCRIPTION OF SERVICES 2 Improvement Area No. 1 .......................................................................................................2 Improvement Area No. 2 .......................................................................................................6 BOUNDARIES OF DISTRICT 8 COST ESTIMATE 9 Initial Maximum Amount Proposed to be Expended ..............................................................9 Fiscal Year 2013/14 Maximum Special Tax Rates ................................................................9 Anticipated Maximum Special Tax Revenue .......................................................................10 RATE AND METHOD OF APPORTIONMENT 11 Termof Special Tax............................................................................................................11 Mannerof Collection ...........................................................................................................11 GENERAL TERMS AND CONDITIONS 12 APPENDICES 13 APPENDIX A— BOUNDARY MAP APPENDIX B — BUDGET APPENDIX C — RATE AND METHOD OF APPORTIONMENT APPENDIX D — RESOLUTION OF INTENTION APPENDIX E — RESOLUTION TO PREPARE THE REPORT INTRODUCTION The City Council (the "City Council") of the City of Chula Vista (the "City") did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the "Act"), on January 7, 2014, adopt a resolution entitled the Resolution of the City Council of the City of Chula Vista Declaring Its Intention to Establish Community Facilities District No. 14M (Eastern Urban Center/Millenia) and to Authorize the Levy of a Special Tax within each Improvement Area therein to Finance Certain Services and Setting the Public Hearing to Consider the Establishment of the Proposed District (the "Resolution of Intention") and a resolution entitled the Resolution of the City Council of the City of Chula Vista Ordering and Directing the Preparation of a Community Facilities District Report for Proposed Community Facilities District No. 14M (Eastern Urban Center/Millenia) (the "Resolution to Prepare the Report" together, with the Resolution of Intention, the "Resolutions"); a copy of these Resolutions are included herein as Appendix D and E of this report. In the Resolution to Prepare the Report, the City Council expressly directed the preparation of a written Community Facilities District Report (the "Report"), for the proposed City of Chula Vista Community Facilities District No. 14M (Eastern Urban Center/Millenia) (the "District"). In the Resolution to Prepare the Report, the City Council expressly ordered the preparation of a written Report for the District containing the following: 1. A brief description of the services to be funded by the District; and 2. An estimate of the fair and reasonable initial annual cost of providing the services, including the incidental expenses in connection therewith, any City administration costs and all other related costs. For particulars, reference is made to the Resolutions of the District, as previously adopted on January 7, 2014 by the City Council. NOW, THEREFORE, the Report has been prepared by, or under the direction of the Director of Public Works of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, and does hereby submit this Report containing the following information: • DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District. • BOUNDARIES OF THE DISTRICT. The proposed boundaries of the District are those properties and parcels on which special taxes may be levied to pay for the costs and expenses of the services. • COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue. • RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by the City Council. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 1 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 IMPROVEMENT AREA'S The District is located south of Birch Road, west of the SR-125, north of Hunte Parkway, and east of Eastlake Parkway. The District consists of two (2) improvement areas: Improvement Area No. 1 and Improvement Area No. 2. A brief description of each improvement area has been provided below for your reference. The boundaries of Improvement Area No. 1 are coterminous with the District with the exception of Public Urban Park Property (as defined in the Rate and Method of Apportionment). Improvement Area No. 1 is expected to be a mixed use development that includes multi-family residences, office space, retail and numerous public amenities. The boundaries of Improvement Area No. 2 are limited to Public Urban Park Property (as defined in the Rate and Method of Apportionment). Public Urban Park Property include, public parks owned by the City that lie within the boundaries of the District. It is expected that there will be 5 public urban parks within the District. DESCRIPTION OF SERVICES It is intended that the District will be eligible to fund all or a portion of the costs to maintain and service the facilities in Improvement Area No. 1 and Improvement Area No. 2 as described below: Improvement Area No. 1 The services to be funded by special taxes levied within the District's Improvement Area No. 1 shall include the maintenance and servicing of the following facilities (the "Improvement Area No. 1 Facilities") and any administrative expenses related thereto: Street Frontage Maintenance Eastlake Parkway • Trees • Palms • Planting Areas/Irrigation/Recycled water • Rodent control • Enhanced paving Birch Road • Trees • Palms • Planting Areas/Irrigation/Recycled water • Rodent control • Enhanced paving • Recycled water irrigation meters • Back flow preventer inspections • Wireless irrigation control • Trash receptacles • Bike racks Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 2 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 • Benches Bus Rapid Transit Facility • Palms • Planting Areas/Irrigation/Recycled water • Rodent control • Decomposed granite Medians • Eastlake Parkway (Birch to Hunte Parkway)—50% • Birch (1-125 to Eastlake Parkway)— 100% Pedestrian Bridge (over Eastlake Parkway) Bus Stop • Trash receptacles • Maintenance Park Maintenance (Public Urban Parks) Frontages • Trees -shade • Palms • Planting Areas/Irrigation/Recycled water • Rodent control • Recycled water irrigation meters • Back flow preventer inspections • Wireless irrigation controllers • Enhanced paving • Porous pavers • Decomposed granite • Uplighting • Decorative lighting Planting/Irrigation • Trees—shade • Trees—ornamental • Palms • Planting Areas/Irrigation/Recycled water • Sod/Irrigation/Recycled water • Rodent control • Recycled water irrigation meters • Potable water irrigation meters • Wireless for irrigation controller • Back flow preventer inspections Hardscape • Seat wall Flatwork • Pedestrian paving (concrete and pavers) • Decomposed granite • Playground surfacing Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 3 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 Site Furniture • Bike racks • Trash receptacles/Collection • Dog waste bag dispenser/Collection/Disposal • Benches • Picnic tables • Movable tables and chairs • Umbrellas • Decorative lighting Metalwork • Metal fence/gate Site Amenities/Features • Fountain • Fountain —interactive or large • Spray park • SCADA Monitoring System • Signage and way finding elements • Sculpture and art elements • Playground equipment • Overlook Platform • Tree house • Outdoor theatre Regional Trail • Regional trail Structures • Restrooms and maintained storage • Gazebo and pavilion • Trellis, overhead structure Athletic Facilities • Basketball court • Tennis court Bio-Retention Maintenance Bio-Retention Basins • Inspections/Ongoing maintenance • Replacement 3 times per 100 years Street M Underground Detention Storm Water Maintenance Wolf Canyon Detention Basin • Vegetation removal • Silt removal maintenance • Silt removal screen replacement • Engineer's inspection • Periodic inspection and maintenance Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 4 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 Bio-Retention Facilities Poggi Canyon • Channel • Detention basins Birch Street Filters Vactor Truck Replacement For the purposes of this description of the Improvement Area No. 1's services to be funded by the levy of special taxes, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvement Area No. 1 Facilities: • Repair, removal, or replacement of all or any part of any Improvement Area No. 1 Facilities. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, silt, and other solid waste. • The cleaning, sandblasting, and painting of walls and other Improvement Area No. 1 Facilities to remove or cover graffiti. • The elimination, control, and removal of rodents and vermin. For the purposes of this description of the Improvement Area No. 1's services to be funded by the levy of special taxes, "servicing" includes, but is not limited to, the furnishing of: • Electric current or energy, gas, or other illuminating agent for any public lighting for Improvement Area No. 1 Facilities or for the lighting or operation of any other improvements related thereto. • Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other Improvement Area No. 1 Facilities. For the purposes of this description of the Improvement Area No. 1's services to be funded by the levy of special taxes, "administrative expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the District's Improvement Area No. 1 as the administrator thereof, to determine, levy and collect the special taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of Improvement Area No. 1; the costs of collecting installments of the special taxes levied within Improvement Area No. 1; and any other costs required to administer Improvement Area No. 1 as determined by the City. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. Improvement Area No. 1 may also fund administrative fees of the City related to the District. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 5 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 Improvement Area No. 2 The services to be funded by special taxes levied within the District's Improvement Area No. 2 shall include the maintenance and servicing of the following facilities (the "Improvement Area No. 2 Facilities"): Park Maintenance (Public Urban Parks) Frontages • Trees -shade • Palms • Planting Areas/Irrigation/Recycled water • Rodent control • Recycled water irrigation meters • Back flow preventer inspections • Wireless irrigation controllers • Enhanced paving • Porous pavers • Decomposed granite • Uplighting • Decorative lighting Planting/Irrigation • Trees—shade • Trees—ornamental • Palms • Planting Areas/Irrigation/Recycled water • Sod/Irrigation/Recycled water • Rodent control • Recycled water irrigation meters • Potable water irrigation meters • Wireless for irrigation controller • Back flow preventer inspections Hardscape • Seat wall Flatwork • Pedestrian paving (concrete and pavers) • Decomposed granite • Playground surfacing Site Furniture • Bike racks • Trash receptacles/Collection • Dog waste bag dispenser/Collection/Disposal • Benches • Picnic tables • Movable tables and chairs • Umbrellas • Decorative lighting Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 6 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 Metalwork • Metal fence/gate Site Amenities/Features • Fountain • Fountain —interactive or large • Spray park • SCADA Monitoring System • Signage and way finding elements • Sculpture and art elements • Playground equipment • Overlook Platform • Tree house • Outdoor theatre Regional Trail • Regional trail Structures • Restrooms and maintained storage • Gazebo and pavilion • Trellis, overhead structure Athletic Facilities • Basketball court • Tennis court For the purposes of this description of the Improvement Area No. 2 services to be funded by the levy of special taxes, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvement Area No. 2 Facilities, including: • Repair, removal, or replacement of all or any part of any Improvement Area No. 2 Facilities. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, silt, and other solid waste. • The cleaning, sandblasting, and painting of walls and other Improvement Area No. 2 Facilities to remove or cover graffiti. • The elimination, control, and removal of rodents and vermin. For the purposes of this description of the Improvement Area No. 2's services to be funded by the levy of special taxes, "servicing" includes, but is not limited to, the furnishing of: • Electric current or energy, gas, or other illuminating agent for any public lighting for Improvement Area No. 2 Facilities or for the lighting or operation of any other improvements related thereto. • Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other Improvement Area No. 2 Facilities. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 7 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 BOUNDARIES OF DISTRICT The proposed boundaries of the District are those parcels on which special taxes may be levied and collected to pay for the costs and expenses of the District services. The proposed boundaries of the District are identified on the map of the District recorded on January 23, 2014, in Book 44 at Page 39 of Maps of Assessment and Community Facilities Districts as Document No. 2014-0030558 in the office of the County Recorder for the County of San Diego. The District map is on file with the City Clerk, to which reference is hereby made and a reduced copy of such map is set forth in Appendix A of this Report. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 8 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 COST ESTIMATE Initial Maximum Amount Proposed to be Expended The annual budget presented below represents the initial maximum costs for providing the District services. 2013/14 District Costs Maximum Amount Annual Services/Administrative Costs $941,952.00 A detailed list of the annual services and the associated costs can be located in Appendix B of this Report. Fiscal Year 2013114 Maximum Special Tax Rates The initial maximum special tax rates are set forth in the Rate and Method of Apportionment for the District. The Fiscal Year 2013/14 maximum special tax rates are listed below. 2013/14 Maximum Description Special Tax Rate* Improvement Area 1 - Developed —Apartment Property $189.00 per Dwelling Unit Improvement Area 1 - Developed — Multi-Family Property $252.00 per Dwelling Unit Improvement Area 1 - Developed — Non-Residential Property $1,259.00 per Acre Improvement Area 1 —Approved Property $4,359.00 per Acre Improvement Area 1 — Undeveloped Property $4,359.00 per Acre Improvement Area 1 —Taxable Property Owner Association Property $4,359.00 per Acre Improvement Area 2— Public Urban Park Property $33,049.00 per Acre The Maximum Special Tax Rates listed above may escalate annually, starting in July 2014 and each year thereafter based upon the annual escalation factor defined in the Rate and Method of Apportionment. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 9 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 Anticipated Maximum Special Tax Revenue The initial maximum special tax rates are set forth in the Rate and Method of Apportionment for the District. Based upon anticipated development, the anticipated initial maximum special tax revenue is as follows: Anticipated District Maximum 2013/14 Maximum 2013/14 Special Tax Revenues by Land Use Category Special Tax Rate Maximum Amount (1) Improvement Area No. 1 Apartment Property $189.00 $151,956.00 per Dwelling Unit Multi-Family Property $252.00 376,992.00 per Dwelling Unit Non-Residential Property $1,259.00 per Acre 70,780.98 Undeveloped Property $4,359.00 per Acre 0.00 Total Anticipated Improvement Area No. 1 Maximum Special Tax Revenues $599'728'98 Improvement Area No. 2 Public Urban Park Property $33,049.00 per Acre $343,048.62 Total Anticipated Improvement Area No. 2 Maximum Special Tax Revenues Total Anticipated District Maximum Special Tax $942,777.60 Revenues 1. The 2013/14 Maximum Amount for all Land Use Categories is higher than the initial budget due to rounding. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 10 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 RATE AND METHOD OF APPORTIONMENT All of the property located within the District, unless exempted by law or by the Rate and Method of Apportionment, shall be taxed for the purpose of providing necessary services for the District. Pursuant to Section 53325.3 of the Act, the tax imposed "is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The special tax "may be based on benefit received by parcels of real property, the cost of making facilities or authorized services available to each parcel, or other reasonable basis as determined by the legislative body," although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. As shown in Appendix C, the adopted Rate and Method of Apportionment provides information sufficient to allow each property owner within the District to estimate the maximum special tax that he or she will be required to pay. Term of Special Tax The District special tax shall be levied as long as necessary to meet the annual special tax requirement. Manner of Collection The annual special tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the District, may directly bill the special tax, and may collect special taxes at a different time or in a different manner as necessary to meet its financial obligations. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 11 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 GENERAL TERMS AND CONDITIONS The Description of the Services, as set forth herein, is general in nature. The final nature and location of the facilities that will be maintained will be determined upon the preparation of final plans and specifications or the approval of services. As facilities and final plans are finalized, the City anticipates collecting a reserve prior to taking over the maintenance of any item or obligation. However, if under any circumstance, a situation arises where obligations are being turned over to the City prior to adequate reserves being on hand, the City will require an adequate reserve, which the City may allow to be funded in a different manner. Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 12 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 APPENDICES Boundary Map A Budget B Rate and Method of Apportionment C Resolution of Intention D Resolution to Prepare the Report E Community Facilities District No. 14M (Otay Ranch Millenia— Eastern Urban Center) 13 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista —January 2014 APPENDIX A - BOUNDARY MAP The boundary map for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this report was prepared, and are incorporated by reference herein and made part of this Report. ( !& wz OU00 �(\/ ® - > � [f § EE ! \ (� \ m- m, lw , ) � -E! |/ §/ o \ WW 10 mw T 'o ' §� \ M#\ \ \\ 14 z§!¥ : / / WW IW (§/ [)§( (§/ §§ §§/ _ (\/\ m�u5 (\/\ 2 §}( \� 220E !)(! 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E /2}\ /2}\ ^.2 )), ) E 4!] ! oulo . oulo \}\jo\� _ \� \ \§/ �]° �� \\ �]° ----- ---- --- -- -- - \ /& " )& /m \\ §Q j o \\/ \\/ ��\\\ \ff §/ / jj §) / } — k (� \ \\ / \ \ /\ \�\ \ �_ \ u \\w co 00 _ )\\\\\)\ ) _ , : __ w , w= m § > § \ § k\ jj\ik/\) k ; - _ _ § _ — 2 ; q _z | b !!: 7 <: : _ o \_ | _ — — | & & \ ] ; £ & ) > § / | ; §2 APPENDIX C - RATE AND METHOD OF APPORTIONMENT The following pages provide a copy of the District's Rate and Method of Apportionment included in the Resolution of Intention and approved by the City Council on January 7, 2014. EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 14M RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO.2 (EASTERN URBAN CENTER/MILLENIA) A Special Tax of Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista ("CFD") shall be levied on all Taxable Property in the CFD and collected each Fiscal Year commencing in Fiscal Year 2014-2015 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All such Taxable Property shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "`A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act (California Government Code Section 66410 et seq.) and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. In the event that parcel acreage information is not available from the sources previously listed, San Diego County GIS data may be utilized. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of Improvement Area No. 1; the costs of collecting installments of the Special Taxes within Improvement Area No. 1; and any other costs required to administer Improvement Area No. 1 as determined by the City. "Apartment Property" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots thereon, that were recorded prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. If any parcel of Public Urban Parks Property is not shown on an Assessor's Parcel Map or assigned an assessor's parcel number, an Assessor's Parcel of such property shall mean that property as shown on the instrument conveying the title of such property to the City. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista. "CFD Boundary Map" entitled "Proposed Boundaries of Community Facilities District No. 14M (Eastern Urban Center/Millenia), City of Chula Vista, County of San Diego, State of California" as recorded in the Office of the County Recorder of the County of San Diego on January 23, 2014 as Document No. 2014-0030558 at Page 39 of Book 44 of the Book of Maps of Assessment and Community Facilities Districts for such County. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "City Share" means the City's Share of the budgeted costs of the maintenance of the Public Urban Parks Property, as determined in accordance with the Eastern Urban Center Parks Agreement and Section E below. "Community Purpose Facility Property" or "CPF Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Eastern Urban Center Parks Agreement" means that certain Agreement Regarding Construction of Parks in a Portion of Otay Ranch Eastern Urban Center made and entered into as of the 15th day of September, 2009 by and between the City and McMillin Otay Ranch LLC, as recorded on October 28, 2009 with the San Diego County Recorder's Office, Document Number 2009-0599389, or as otherwise modified and agreed upon by all parties thereto. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" means all property within the boundaries of such improvement area as shown on the CFD Boundary Map. "Improvement Area No. 1 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 1 as described in the CFD special tax report and Administrative Expenses. "Improvement Area No. 1 Operating Fund Requirement" means, for any Fiscal Year, an amount equal to the budgeted costs for Improvement Area No. 1. The budgeted costs for Improvement Area No. 1 shall equal (i) the greater of (A) 50% of the budgeted costs for maintenance of the Public Urban Parks Property and (B) 100% of such budgeted costs minus the City Share; plus (ii) the budget costs of landscape maintenance, street frontage maintenance, bio-retention maintenance, storm water maintenance, and the maintenance, repair and replacement of the facilities and improvements, other than the Public Urban Parks Property, which have been accepted and or maintained by the CFD during the current Fiscal Year; plus (iii) the budgeted Administrative Expenses for the current Fiscal Year in which Special Taxes are levied. "Improvement Area No. 1 Reserve Fund" means a fund that shall be maintained for the CFD for Improvement Area No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes within Improvement Area No. 1 and a reasonable buffer to prevent large variations in annual Special Tax levies within Improvement Area No. 1. "Improvement Area No. 1 Reserve Fund Requirement" means an amount equal to up to 100% of the Improvement Area No. 1 Operating Fund Requirement for any Fiscal Year. "Improvement Area No. 1 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay the Improvement Area No. 1 Operating Fund Requirement; (ii) pay any amounts required to establish or replenish the Improvement Area No. 1 Reserve Fund to the Improvement Area No. 1 Reserve Fund Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes within Improvement Area No. 1 based on the delinquency rate for Special Taxes levied in the previous Fiscal Year within Improvement Area No. 1; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Improvement Area No. 1 Reserve Fund above the Improvement Area No. 1 Reserve Fund Requirement and any amount remaining in the Improvement Area No. 1 Operating Fund that is available to pay the Improvement Area No. 1 Operating Fund Requirement in such Fiscal Year. "Improvement Area No. 2" means all property within the district boundaries that is owned by the City and classified as Public Urban Parks Property. "Improvement Area No. 2 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 2 as described in the CFD special tax report. "Improvement Area No. 2 Operating Fund Requirement" means, for any Fiscal Year, an amount equal to the City Share. "Improvement Area No. 2 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to pay the Improvement Area No. 2 Operating Fund Requirement less a credit for funds, if any, available to reduce the annual Special Tax levy within Improvement Area No. 2 and any amount remaining in the Improvement Area No. 2 Operating Fund that is available to pay the Improvement Area No. 2 Operating Fund Requirement in such Fiscal Year. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Property and Non-Residential Property uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, only the Residential Land Use Class thereon is subject to taxation pursuant to the provisions of Section C. "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential dwelling units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, and condominiums. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Ordinance" means the Chula Vista Community Facilities District Ordinance, being Ordinance No. 2730 enacted on April 28, 1998, as modified and supplemented by Ordinance No. 3293, enacted on December 17, 2013. "Property Owner Association Property" means any property within the CFD boundaries that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the CFD boundaries that has provided proof to the City prior to March 1st preceding the Fiscal Year in which the Special Tax is being levied, that it is expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency, excluding Public Urban Parks Property. "Public Urban Parks" means those parks to which the City accepts title pursuant to the Eastern Urban Center Parks Agreement. "Public Urban Parks Property" means all Assessor's Parcels that are owned by the City and upon which the Public Urban Parks are located or to be located. "Residential Property" means all Assessor's Parcels of Developed Property classified as Apartment Property or Multi-Family Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means the Special Tax levied pursuant to the provisions of sections D and E below in each Fiscal Year on each Assessor's Parcel of Developed Property, Approved Property, and Undeveloped Property in Improvement Area No. 1 to fund the Improvement Area No. 1 Special Tax Requirement and the Public Urban Parks Property to fund the Improvement Area No. 2 Special Tax Requirement. "State" means the State of California. "Taxable Property" means, as to Improvement Area No. 1, all of the Assessor's Parcels within the boundaries of Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or as defined below under Tax-Exempt Property and, as to Improvement Area No. 2, all Assessor's Parcels of Public Urban Parks Property. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property excluding Taxable Property Owner Association Property, or (iii) Assessor's Parcels of Taxable CPF Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1s' preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section F below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be (a) categorized as being located in either Improvement Area No. 1 or Improvement Area No. 2; (b) classified as Developed Property, Public Urban Parks Property, Approved Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable CPF Property, and (c)subject to the levy of Special Taxes pursuant to Sections D and E below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. The Land Use Class of each Assessor's Parcel of Residential Property or Mixed Use Property shall be determined based on the records of the San Diego County Assessor, or other such information provided by the City. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section F below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is undeveloped it shall be classified as Undeveloped Property. C. MAXIMUM SPECIAL TAX RATE 1. Improvement Area No. 1 a. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 14M within Improvement Area No. 1 Land Use Maximum Class Description Special Tax 1 Apartment Property $189.00 per Dwelling Unit 2 Multi-Family Property $252.00 per Dwelling Unit 3 Non-Residential Property $1,259.00 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall only be levied on the Residential Property Land Use Class located on that Assessor Parcel(s). Sample Maximum Special Tax Calculation for Mixed Use (Non-Residential Property and Apartment Property) Under the proposed example, assume that Assessor's Parcel Number 1 is classified as a Mixed Use Property. Assessor's Parcel Number 1 is a 2 Acre parcel that contains 10,000 square feet of retail shops and Apartment Property with 10 residential dwelling units. The following table shows what the expected annual Maximum Special Tax would be for Assessor's Parcel Number 1. No. of Non-Residential Residential Assessor Residential Property Property Total Annual Parcel Parcel Dwelling Maximum Special Maximum Maximum No. Acreage Units Tax Special Tax Special Tax 1 2.00 10 $0.00 $1,890.00 $1,890.00 (1) The Maximum Special Tax is based upon the initial Maximum Special Tax rates as defined in Table 1. b. Approved Property, Undeveloped Property and Taxable Property Owner Association Property within Improvement Area No. 1 The Maximum Special Tax for Approved Property, Undeveloped Property and Taxable Property Owner Association Property shall be $4,359.00 per Acre. 2. Improvement Area No. 2 a. Public Urban Parks Property TABLE 2 Maximum Special Tax for Public Urban Parks Property Community Facilities District No. 14M within Improvement Area No. 2 Land Use Maximum Class Description Special Tax 1 Public Urban Parks $33,049.00 per Acre Property 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax for Improvement Area No. 1 and Improvement Area No. 2 as shown in Tables 1 and 2 above that may be levied on each Assessor's Parcel in the CFD shall be adjusted each Fiscal Year beginning in Fiscal Year 2014-15 and thereafter by a factor equal to the greater of, the positive percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items) from the base date of June 1, 2013 through June 1 of the prior Fiscal Year, or 0%, provided the Maximum Special Tax shall never be less than the amounts shown in Tables 1 and 2, respectively. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax in Improvement Area No. 1 at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Improvement Area No. 1 Special Tax Requirement. The Special Tax in Improvement Area No. 1 shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within Improvement Area No. 1 up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Multi-Family Property or Apartment Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Improvement Area No. 1. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 2 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax Proportionately on all Public Urban Parks Property within Improvement Area No. 2 up to 100% of the Maximum Special Tax as necessary to fully fund the Improvement Area No. 2 Special Tax Requirement. For the purposes of determining the Improvement Area No. 1 Operating Fund Requirement and the Improvement Area No. 2 Operating Fund Requirement, the City Share shall be the lesser of the amount determined in Step One and Step Two below. Step One: The City shall calculate the amount equal to 50% of the budgeted costs for maintenance of the Public Urban Parks Property that has been accepted and or maintained by the CFD during the current fiscal year, for the current fiscal year in which the Special Taxes are being levied, and for Public Urban Parks Property that the City anticipates accepting during the upcoming Fiscal Year. Step Two: As outlined in Section 5.1(a) of the Eastern Urban Center Parks Agreement, each Fiscal Year, after the Council adopts the City's annual operating budget, the City shall calculate the City's total annual public park maintenance cost included in the budget. The City shall also calculate the acreage of public parks that are maintained and owned by the City and included in the budget (including the Public Urban Parks Property for which the City has accepted title). The total annual cost shall be divided by the total park acreage to determine the City's average annual park maintenance cost per acre for that Fiscal Year. This amount shall be multiplied by 21.51 acres and then multiplied by a fraction, the numerator of which is the acreage of the Public Urban Parks Property for which the City has accepted title and for which the City is currently assessing a Special Tax in anticipation of acceptance by the City and the denominator of which is 10.60 acres. If the amount calculated pursuant to this Step Two is lower than the amount calculated under Step One above, it shall be the City Share unless the City Manager, at his or her own sole discretion, elects to use the higher amount as the City Share in order to maintain the fifty/fifty (50-50) split of maintenance costs as outlined in Section 5.1(a)of the Eastern Urban Parks Agreement. F. EXEMPTIONS The CFD Administrator shall classify as Tax-Exempt Property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as CPF Property that are owned by a non- profit organization which provides proof to the City prior to March 1s' preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as Tax-Exempt Property within Improvement Area No. 1 those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all Taxable Property within Improvement Area No. 1 to less than 130.39 Acres. Assessor's Parcels defined as Property Owner Association Property and CPF Property that cannot be classified as Tax-Exempt Property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign tax-exempt status in the chronological order in which property becomes exempt Public Property or CPF Property or Tax-Exempt Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or CPF Property or Tax-Exempt Property Owner Association Property, its tax- exempt status will be revoked. Taxable Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property and Taxable CPF Property. There shall be no Tax-Exempt Property within Improvement Area No. 2. G. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists; such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. H. MANNER OF COLLECTION Special Taxes levied in Improvement Area No. 1 pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. Special Taxes levied in Improvement Area No. 2 pursuant to Section E above shall be collected by direct billing by the CFD Administrator, such Special Taxes to be due and payable and shall become delinquent at the same time as Special Taxes levied within Improvement Area No. 1. I. TERM OF SPECIAL TAX Taxable Property in Improvement Area No. 1 and Improvement Area No. 2 of the CFD shall remain subject to the Special Tax in perpetuity or until the Council takes appropriate actions to terminate the Special Tax in both Improvement Areas pursuant to the Act. APPENDIX D - RESOLUTION OF INTENTION The following pages provide a copy of the Resolution of Intention as approved by the City Council on January 7, 2014. RESOLUTION NO. 2014-004 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN' URBAN CENTER/MILLENIA) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN EACH IMPROVEMENT AREA THEREIN TO FINANCE CERTAIN SERVICES AND SETTING THE PUBLIC HEARING TO CONSIDER THE ESTABLISHMENT OF THE PROPOSED DISTRICT WHEREAS. the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "Cit%, Council"), desires to initiate proceedings to create a Community Facilities District and to designate two improvement areas therein pursuant to the terms and provisions of the "Mello- Roos Community Facilities Act of 1982,"- being Chapter 2.5, Part 1. Division 2. Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance. as originally enacted and as subsequently amended pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively_ as the '`Community Facilities District La,,V') for the purposes set forth herein: and WHEREAS. this Community Facilities District shall hereinafter be referred to as Community Facilities District No. 14M (Eastern Urban Center/Millenia) (the "District") and the improvement areas proposed to be designated therein shall hereinafter be referred to as Improvement Area No. 1 and Improvement Area No. 2 (each. an ''Improvement Area' and collectively, the "Improvement Areas"); and WHEREAS, pursuant to the Community Facilities District Law, the City Council adopted a Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the "Goals and Policies") that establish and state the City's goals and policies concerning the use of the Act in providing adequate infrastructure improvements and public services for the Cite: and WHEREAS. the maintenance of public parks is authorized to be funded by a Community Facilities District pursuant to the Act but is not enumerated in the Goals and Policies. as a public service authorized to be financed through a Community Facilities District established by the City: and WHEREAS, the Goals and Policies provide. however, that other public services not listed in the Goals and Policies may be financed by a Community Facilities District established by the City if such services are authorized to be financed by the Act and the Cite Council determines that such services are otherwise consistent with the Goals and Policies and in the best interest of the Citv and the residents and property owners within a proposed Community Facilities District; and Resolution No. 2014-004 Page No. 2 WHEREAS, the City Council has determined that the financing of the maintenance of public parks located within Improvement Area No. 2 by the District is (i) consistent with the Goals and Policies, and (ii) in the best interest of the City, and the residents and the property owners within Improvement Area 2; and WHEREAS, the City has determined at this time that it is appropriate to fund the maintenance of public parks within Improvement Area No. 2; and WHEREAS, this City Council is now prepared to proceed to adopt its Resolution of Intention to initiate the proceedings for the establishment of such District. to set forth the boundaries for such District and the Improvement Areas therein, to indicate the type of public services to be financed by such District, to indicate a rate and method of apportionment of special taxes proposed to be levied within each Improvement Area sufficient to finance such services for and within each such Improvement Area, and to set a time and place for a public hearing relating to the establishment of such District and the designation of the Improvement Areas; and WHEREAS; a map of such District has been submitted showing the boundaries of the territory proposed to be included in the District and in each of the Improvement Areas which territory includes the properties and parcels of land proposed to be subject to the levy of a special tax by the District for each of the Improvement Areas. NOW, THEREFORE; IT IS HEREBY RESOLVED: SECTION 1. Recitals. The above recitals are all true and correct and are hereby made findings of the City Council. SECTION 2. Initiation of Proceedings. These proceedings are initiated by this City Council pursuant to the provisions of the Community Facilities District Law. SECTION 3. Boundaries of District and the Improvement Areas. It is the intention of this City Council to establish the Community Facilities District and to designate the Improvement Areas therein pursuant to the provisions of the Community Facilities District Law; and to determine the boundaries and parcels on which special taxes may be levied to finance certain services. A description of the boundaries of the territory proposed for inclusion in the District and each Improvement Area therein including properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: All that property as shown on a map as previously approved by this City Council, such map designated "Proposed Boundaries of Community Facilities District No. 14M (Eastern Urban Center/Millenia), City of Chula Vista, County of San Diego; State of California". a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. SECTION 4. Name of District and Improvement Areas. The proposed Community Facilities District shall be known and designated as "Community Facilities District No. 14M (Eastern Urban Center/Millenia)." The Improvement Areas within the District shall be known and designated as "Improvement Area No. 1" and "Improvement Area No. 2." Resolution No. 2014-004 Page No. 3 SECTION 5. Description of Services. It is the intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be funded by special taxes levied in Improvement Area No. 1 are set forth in Exhibit "A." attached hereto and by this reference incorporated herein. A general description of the services to be funded by special taxes levied in Improvement Area No. 2 are set forth in Exhibit "B," attached hereto and by this reference incorporated herein. Such maintenance shall include, but not be limited to, the provision of all labor, material, administration, personnel, equipment and utilities necessary to maintain such improvements. SECTION 6. Special Tax. It is also the intention of this City Council that, except where funds are otherwise available, a special tax sufficient to pay for such services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in each Improvement Area of the District, will be levied annually -,within the boundaries of each such Improvement Area. Under no circumstances will the special tax authorized to be levied within an Improvement Area be increased as a consequence of delinquency or default by the owner of any other parcel or parcels used for private residential purposes and located within such Improvement Area by more than 10 percent. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within Improvement Area No. 1, reference is made to the attached and incorporated Exhibit "C.'-' which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within such Improvement Area to clearly estimate the maximum amount that such person will have to pay for such services. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within Improvement Area No. 2. reference is made to the attached and incorporated Exhibit "C". which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within such Improvement Area to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized to be levied within Improvement Area No. 1, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any such special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the District. The special taxes herein authorized to be levied within Improvement Area No. 2 shall be collected through a direct billing procedure by the District. SECTION 7. Public Hearing. Notice is given that on the 1 Ith day of February, 2014. [NOTE: The Agenda Statement saes Februan- 4`h] at the hour of 2 o'clock p.m.. in the regular meeting place of the City Council being the Council Chambers, located at 276 0, Avenue, Chula Vista, California, a public hearing will be held where this City Council will consider the establishment of the proposed District, the designation of the Improvement Areas therein, the proposed rate and method of apportionment of the special taxes proposed to be levied within each Improvement Area, and all other matters as set forth in this resolution of intention. At the above-mentioned time and place for public hearing any persons interested; including Resolution No. 2014-004 Page No. 4 taxpayers and property owners may appear and be heard. The testimony of all interested persons for or against the establishment of the District, the extent of the District, the designation or extent of the Improvement Areas or the furnishing of the services, will be heard and considered. Any protests may be made orally or in writing. However, any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the City Clerk of the City Council on or before the time fixed for the public hearing. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing. If a written majority protest against the establishment of the District is filed, the proceedings shall be abandoned. If such majority protest is limited to certain services or portions of the special tax, those services or that tax shall be eliminated from the proposed District by the City Council, before the City Council takes action to establish the District. SECTION 8. Election. If following the public hearing described in the Section above; the City Council determines to establish the District and proposes to levy a special tax within each of the Improvement Areas within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of each such Improvement Area. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within any Improvement Area for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of such Improvement Area, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of such Improvement Area who were the owners of record at the close of the subject hearing, with each landowners or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within such Improvement Area. A successful election relating to the special tax authorization shall, as applicable; establish and/or change the appropriations limit as authorized by Article XIIIB of the California Constitution as it is applicable to this District. SECTION 9. Designation of Authorized Representative for Voting. The City Council hereby designates the City Manager or his authorized representative as the person authorized to submit a ballot for and on behalf of the City for the purposes of submitting a ballot in the election described in the Section above. SECTION 10. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing a Notice of Public Hearing to be published in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. Resolution No. 2014-004 Page No. 5 Presented by Approved as to form by Richard XHopkind Gle R. Go ins Director of Enuineerin6 Cit< v PASSED. APPROVED. and ADOPTED by the City Council of the City of Chula Vista. California. this 7th day of January 2014 by the follo-vying vote: AYES: Councilmembers: Auuilar, Bensoussan. Ramirez. Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Cheryl Cox_. M r r ATTEST: A,,L Donna R. Norris. CMC. City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna R. Norris, City Clerk of Chula Vista. California, do hereby certi& that the foregoing Resolution No. 2014-004 was duly passed, approved, and adopted by the City Council at a special meeting of the Chula Vista City Council held on the 7th day of January 7. 2014. Executed this 7th day of January 2014. D Donna R. Norris. CMC. Clty Clerk Resolution No. 2014-004 Page No. 6 Exhibit A Community Facilities District No. 14M (Eastern Urban Center/Millenia) Improvement Area No. I Description of Services The types of services to be funded by special taxes levied within Improvement Area No. 1 (`'Services") shall include maintenance and servicing of the following facilities (the "Improvement Area No. I Facilities") and any administrative expenses related thereto: I. STREET FRONTAGE MAINTENANCE Eastlake Parkway Trees Palms Planting Areas/Irrigation/Recycled water Rodent Control Enhances paving Birch Road Trees Palms Planting Areas/Irrigation/Recycled water Rodent Control Enhanced paving Recycled Water Irrigation Meters Back flow preventer inspection Wireless for irrigation controller Trash Receptacles Bike rack Benches Bus Rapid Transit Facilit)- Palms Planting Areas/Irrigation/Recycled water Rodent Control Decomposed Granite Medians Eastlake Pkwy (Birch to Hunte Pk%Ny) 50% Birch (1-125 to Eastlake Pkwy) 100% Pedestrian Bridge (over Eastlake Pkwy) Resolution No. 2014-004 Page No. 7 Bus Stop Trash receptacles Maintenance II. PARK MAINTENANCE PUBLIC URBAN PARKS Frontages (Parks 1, 2, 4, 5 and 6) Trees—shade Palms Planting Areas/]M'gation/Recycled water Rodent Control 4 Recycled Water Irrigation Meters Back floxv preventer inspection Wireless for irrigation controller Enhanced paving Porous pavers Decomposed Granite Uplighting Decorative Lighting Planting/Irrigation Trees--- shade Trees—ornamental Palms Planting Areas/Irrigation/Recycled water Sod/Irrigation/Recycled Water Rodent Control Recvcled Water Irrigation Meters Potable Water Irrigation Meters Wireless for irrigation controller Back floe= preventer inspection Hardscape Seat Wall Flahvork Pedestrian paving (concrete and pavers) Decomposed granite Playground surfacing Resolution No. 2014-004 Paae No. S Site Furniture Bike Racks Trash Receptacles/Collection Dog Waste Bag Dispenser/Collection/Disposal Benches Picnic Tables Moveable Tables and Chairs Umbrellas Decorative Lighting Metalwork Metal fence/gate Site Amenities/Features Fountain Fountain— Interactive or large Spray Park SCADA Monitoring System Signage, Wayfinding Elements Sculpture, Art Elements Playground Equipment Overlook Platform Tree House Outdoor Theater Regional Trail Regional trail Structures Restrooms, Maintained storage Gazebo, Pavilion Trellis, Overhead Structure Athletic Facilities Basketball Court Tennis Court III. BIORETENTION MAINTENANCE Bioretention Basins Inspection/Ongoing Maintenance Replacement 3 times per 100 years Street M Underground Detention Resolution No. 2014-004 Page No. 9 IV. STORAZ WATER MAINTENANCE Wolf Canyon Detention Basin Vegetation Removal Silt Removal Maintenance Silt Removal Screen Replacement Enaineer's Inspection Periodic Inspection and Maintenance Bioretention Facilities Poggi Canyon Channel Detention Basin Birch Street Filters Vactor Truck Replacement For purposes of this description of the Services to be funded by the levy of Special Taxes within Improvement Area No. 1, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance. operation, and servicing of any of the Improvement Area Nio. 1 Facilities, including: (a) Repair, removal; or replacement of all or any part of any Improvement Area No. 1 Facilities. (b) Providing for the life, growth. health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The removal of trimmings, rubbish, debris, silt, and other solid waste. (d) The cleaning; sandblasting, and painting of walls and other Improvement Area No. 1 Facilities to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. For purposes of this description of the Services to be funded by Special Tares levied "ithin Improvement Area No. 1; "servicing" includes, but is not limited to, the furnishing of: (a) Electric current or energy; gas; or other illuminating agent for any public lighting for Improvement Area No. 1 Facilities or for the lighting or operation of any other improvements related thereto. (b) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of anv other Improvement Area No. I Facilities. For purposes of this description of the Services to be funded by the levy of Special Taxes within Improvement Area No. 1, "administrative expenses" means the actual or estimated costs incurred by the City; acting for and on behalf of the District as the administrator thereof_ to determine, levy and collect the Special Taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the District; the costs of collecting installments of the Special Taxes levied within Improvement Area No. 1; and any other costs required to administer Improvement Area No. I as determined by the City. Resolution No. 2014-004 Page No. 10 Exhibit B Community Facilities District No. 14M (Eastern Urban Center/Millenia) Improvement Area No. 2 Description of Services The types of services to be funded by Special Taxes levied within Improvement Area No. 2 ("Services") shall include maintenance and servicing of the following facilities (the "Improvement Area No. 2 Facilities") and any administrative expenses related thereto: 1. PARK MAINTENANCE (PUBLIC URBAN PARKS) Frontages (Parks 1, 2, 4, 5 and 6) Trees—shade Palms Planting Areas/Irrigation/Recycled water Rodent Control Recycled Water Irrigation Meters Back flow preventer inspection Wireless for irrigation controller Enhanced paving Porous pavers Decomposed Granite Uplighting Decorative Lighting Planting/Irrigation Trees— shade Trees—ornamental Palms Planting Areas/Irrigation/Recycled water Sod/Irrigation/Recycled Water Rodent Control Recycled Water Irrigation Meters Potable Water Irrigation Meters Wireless for irrigation controller Back flow preventer inspection Hardscape Seat Wall Flatrivork Pedestrian paving (concrete and pavers) Decomposed granite Playground surfacing Resolution No. 2014-004 Page No. 11 Site Furniture Bike Racks Trash Receptacles/Collection Dog Waste Bag Dispenser/Collection/Disposal Benches Picnic Tables Moveable Tables and Chairs Umbrellas Decorative Lighting Metalwork Metal fence/gate Site Amenities/Features Fountain Fountain— Interactive or large Spray Part: SCADA Monitoring System Signage, Wavfinding Elements Sculpture, Art Elements Playground Equipment Overlook Platform Tree House Outdoor Theater Regional Trail Regional trail Structures Restrooms, Maintained storage Gazebo. Pavilion Trellis. Overhead Structure Athletic Facilities Basketball Court Tennis Court For purposes of this description of the Services to be funded by Special Taxes levied within Improvement Area No. 2, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvement Area No. 2 Facilities. including: (a) Repair, removal, or replacement of all or any part of any Improvement Area No. 2 Facilitv. (b) Providing for the life. grog;nth, health, and beauty of landscaping, including cultivation, irrigation. trimming; spraying; fertilizing. or treating for disease or injury. (c) The removal of trimmings; rubbish, debris, and other solid waste. Resolution No. 2014-004 Page No. 12 (d) The cleaning, sandblasting, and painting of walls and other Improvement Area No. 2 Facilities to remove or cover graffiti. For purposes of this description of the Services to be funded by Special Taxes levied within Improvement Area No. 2. "servicing' includes the furnishing of: (a) Electric current or energy, gas; or other illuminating agent for any public lighting for Improvement Area No. 2 Facilities or for the lighting or operation of any other improvements related thereto. (b) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other Improvement Area No. 2 Facilities. CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 14M RATE AND METHOD OF APPORTIONN'IENT FOR IMPROVEMENT AREA NO. 1 AND INIPROVEN11ENT AREA NO. 2 (Eastern Urban Center/Millenia) A Special Tax of Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista ("CFD") shall be levied on all Taxable Property in the CFD and collected each Fiscal Year commencing in Fiscal Year 2014-2016 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All such Taxable Property shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "`A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act (California Government Code Section 66410 et seq.) and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of combination of units as shown on such tentative map and which may further shove open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map; other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the Countv Recorder. In the event that parcel acreage information is not available from the sources previously listed, San Diego County GIS data may be utilized. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 4').560. "Act" means the Mello-Roos Communitv Facilities Act of 1982, as amended, being Chapter 2.6, Part 1, Division 2 of Title 6 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof; to determine, levy and collect the Special Taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of Improvement Area No. 1: the costs of collecting installments of the Special Taxes within Improvement Area No. l: and any other costs required to administer Improvement Area No. 1 as determined by the City. City of Chula Vista-Community Facilities District No.14M(Eastern Urban CenzerlMillenia) Page I "Apartment Property" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots thereon, that were recorded prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. If any parcel of Public Urban Parks Property is not shown on an Assessor's Parcel Map or assigned an assessor's parcel number, an Assessor's Parcel of such property shall mean that property as shown on the instrument conveying the title of such property to the City. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 14M (Eastern Urban CenterlMillenia) of the City of Chula Vista. "CFD Boundary Map" entitled "Proposed Boundaries of Community Facilities District No. 14M (Eastern Urban CenterlMillenia), City of Chula Vista, County of San Diego, State of California' as recorded in the Office of the County Recorder of the County of San Diego on January _, 2014 as Document No. 14- at Page of Book _ of the Book of Maps of Assessment and Community Facilities Districts for such County. "City" means the City of Chula Vista. "Cite Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "City Share" means the City's Share of the budgeted costs of the maintenance of the Public Urban Parks Property, as determined in accordance with the Eastern Urban Center Parks Agreement and Section E below. "Community Purpose Facility Property" or "CPF Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. Clo,of Chula Vista- Communirt-Facilities Disn•ici No 14AI(Eastern Urban Cenler/A4illettia) Page 2 Resolution No. 2014-004 Pace No. 15 "Council" means the Cite Council of the City of Chula Vista- acting as the legislative body of the CFD. v "CounriT"-means the County of San Diego. California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Eastern Urban Center Parks Agreement" means that certain Agreement Regarding Construction of Parks in a Portion of Otav Ranch Eastern Urban Center made and entered into as of the 15th day of September, 2009 by and between the CA,, and McMillin Otay Ranch LLC, as recorded on October 28, 2009 with the San Diego County Recorder's Office; Document Number 2009-0599'89; or as othemise modified and agreed upon by all parties thereto. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352. that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" means all property within the boundaries of such improvement area as shown on the CFD Boundary Map. "Improvement Area No. 1 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 1 as described in the CFD special tax report and Administrative Expenses. "Improvement Area No. 1 Operating Fund Requirement" means, for any Fiscal Year; an amount equal to the budgeted costs for Improvement Area No. 1. The budgeted costs for Improvement Area No. 1 shall equal (i) the greater of(A) 50% of the budgeted costs for maintenance of the Public Urban Parks Property and (B) 100% of such budgeted costs minus the City Share; plus (ii) the budget costs of landscape maintenance. street frontage maintenance. bio-retention maintenance. storm water maintenance. and the maintenance, repair and replacement of the facilities and improvements; other than the Public Urban Parks Property, which have been accepted and or maintained by the CFD during the current Fiscal Year; plus (iii) the budgeted Administrative Expenses for the current Fiscal Year in which Special Taxes are levied. City of Chula Vista-Comm unin,Facilities District No.14M(Eastern Urban Center/Millenia) Page 3 Resolution No. 2014-004 Page No. 16 "Improvement Area No. 1 Reserve Fund" means a fund that shall be maintained for the CFD for Improvement Area No. i for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes within Improvement Area No. 1 and a reasonable buffer to prevent large variations in annual Special Tax levies within Improvement Area No. 1. "Improvement Area No. 1 Reserve Fund Requirement" means an amount equal to up to 100% of the Improvement Area No. 1 Operating Fund Requirement for any Fiscal Year. "Improvement Area No. 1 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay the Improvement Area No. 1 Operating Fund Requirement; (ii) pay any amounts required to establish or replenish the Improvement Area No. 1 Reserve Fund to the Improvement Area No. I Reserve Fund Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes within Improvement Area No. 1 based on the delinquency rate for Special Taxes levied in the previous Fiscal Year within Improvement Area No. 1; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Improvement Area No. 1 Reserve Fund above the Improvement Area No. 1 Reserve Fund Requirement and any amount remaining in the Improvement Area No. 1 Operating Fund that is available to pay the Improvement Area No. 1 Operating Fund Requirement in such Fiscal Year. "Improvement Area No. 2" means all property within the district boundaries that is owned by the City and classified as Public Urban Parks Property. "Improvement Area No. 2 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 2 as described in the CFD special tax report. "Improvement Area No. 2 Operating Fund Requirement" means, for any Fiscal Year, an amount-equal to the City Share. "Improvement Area No. 2 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to pay the Improvement Area No. 2 Operating Fund Requirement less a credit for funds, if any, available to reduce the annual Special Tax levy within Improvement Area No. 2 and any amount remaining in the Improvement Area No. 2 Operating Fund that is available to pay the Improvement Area No. 2 Operating Fund Requirement in such Fiscal Year. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessors Parcel of Taxable Property. City of Chula Vista- Communin;Facilities District No.14M(Eastern Urbarz CenterlAldlenia) Page 4 Resolution'No. 2014-004 Page No. 17 "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Propem, and INIon-Residential Propem• uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Propem:, only the Residential Land Use Class thereon is subject to taxation pursuant to the provisions of Section C. Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential dxvelline units that share common walls, including, but not limited to, duplexes, triplexes, townhomes; and condominiums. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Ordinance" means the Chula Vista Community Facilities District Ordinance, being Ordinance No. 2730 enacted on April 28, 1998, as modified and supplemented by Ordinance No. 3293, enacted on December 17. 2013. "Property -O,,r•ner Association Property" means any property within the CFD boundaries that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property .W=ithin the CFD boundaries that has provided proof to the Cite prior to March I st preceding the Fiscal Year in which the Special Tax is being levied. that it is expected to be used for any public purpose and is owned by or dedicated to the federal government. the State, the County, the City any other public agency. excluding Public Urban Parks Property. "Public Urban Parks" means those parks to which the City accepts title pursuant to the Eastern Urban Center Parks Agreement. "Public Urban Parks Property" means all Assessor's Parcels that are o-"med by the City and upon which the Public Urban Parks are located or to be located. "Residential Property" means all Assessor's Parcels of Developed Property classified as Apartment Property or Multi-Family Property for which a building permit(s) has been issued for purposes of constructing one or more residential d%velling units. "Special Tax" means the Special Tax levied pursuant to the provisions of sections D and E below in each Fiscal Year on each Assessor's Parcel of Developed Property, Approved Property, and Undeveloped Property in Improvement Area No. i to fund the Improvement Area No. 1 Special Tax Requirement and the Public Urban Parks Property to fund the Improvement Area No. 2 Special Tax Requirement. City of Chula Vista-Communin,Facilities District No.14M(Eastern Urban CenrerAlillenia) Page 5 Resolution No. 2014-004 Page No. 18 "State" means the State of California. "Taxable Property" means, as to Improvement Area No. 1, all of the Assessor's Parcels within the boundaries of Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or as defined below under Tax-Exempt Property and. as to Improvement Area No. 2, all Assessor's Parcels of Public Urban Parks Property. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property excluding Taxable Property Owner Association Property, or (iii) Assessor's Parcels of Taxable CPF Property that is owned by a non-profit organization and has provided proof to the City prior to the March I" preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section F below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be (a) categorized as being located in either Improvement Area No. I or Improvement Area No. 2; (b) classified as Developed Property, Public Urban Parks Property, Approved Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable CPF Property, and (c) subject to the levy of Special Taxes pursuant to Sections D and E below. Developed Properfy shall be further assigned to a Land Use Class as specified in Table 1. The Land Use Class of each Assessor's Parcel of Residential Property or Mixed Use Property shall be determined based on the records of the San Diego County Assessor, or other such information provided by the City. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section F below shall be taxed as Non- Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is undeveloped it shall be classified as Undeveloped Property. Crtn-of Chula Vista-CommuniA�Facilities District No 144(Eastern Urban CenterlA9illenia) Page 6 Resolution No. 2014-004 Paae No. 19 C. 11ZAXi111U 1 SPECIAL TAX RATE 1. Improvement Area No. 1 a. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 14AI within Improvement Area No. 1 Land Use I Maximum Class Description Special Tax I I Apartment Proper I S 189.00 per Dwelling Unit 2 Multi-Family Propem, I 5252.00 per Dwelling Unit 3 Nzon-Residential Property S1,259.00 per Acre Multiple Land Use Classes In some instances an Assessor=s Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall only be levied on the Residential Property Land Use Class located on that Assessor Parcel(s). Sample Maximum Special Tax Calculation Mixed Use (Non-Residential Proper and Apartment Propeml) Under the proposed example; assume that Assessor's Parcel Number I is classified as a Mixed Use Property. Assessor's Parcel Number I is a 2 Acre parcel that contains 10,000 square feet of retail shops and Apartment Property with 10 residential dwelling units. The following table shows what the expected annual Maximum Special Tax would be for Assessors Parcel Number 1. No. of Non-Residential Residential Assessor Residential Property Property Total Annual Parcel Parcel Dwelling Maximum 117aximum Maximum No. Acreage Units Special Tax Special Tax Special Tax 1 2.00 10 $0.00 S1,890.00 51.890.00 (1) The Maximum Special Tax is based upon the initial Maximum Special Tax rates as defined in Table 1. Can?of Chula Vista-Communing Facilities District lo.14M(Eastern Urban Center/A1illenia) Page 7 Resolution No. 2014-004 Page No. 20 b. A roved Property. Undeveloped Property and Taxable Property Owner Association Property within Improvement Area No. 1 The Maximum Special Tax for Approved Property, Undeveloped Property and Taxable Property Owner Association Property shall be $4,359.00 per Acre. 2. Improvement Area No. 2 a. Public Urban Parks Property TABLE 2 Maximum Special Tax for Public Urban Parks Property Community Facilities District No. 14M within Improvement Area No. 2 Land Use Maximum Class . Description Special Tax 1 Public Urban Parks $33,049.00 per Acre Pro e 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax for Improvement Area No. 1 and Improvement Area No. 2 as shown in Tables 1 and 2 above that may be levied on each Assessors Parcel in the CFD shall be adjusted each Fiscal Year beginning in Fiscal Year 2014-15 and thereafter by a factor equal to the greater of, the positive percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items) from the base date of June 1, 2013 through June 1 of the prior Fiscal Year, or 0%, provided the Maximum Special Tax shall never be less than the amounts shown in Tables 1 and 2, respectively. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax in Improvement Area No. 1 at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Improvement Area No. 1 Special Tax Requirement. The Special Tax in Improvement Area No. 1 shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within Improvement Area No. 1 up to 100% of the applicable Maximum Special Tax; City of Chula Vista- Communin-Facilities District AV 14AI(Eastern Urban CenterlMillenia) Page 8 Resolution No. 2014-004 Page No. 21 Second: If additional monies are needed to satisfy the Improvement Area No. I Special Tax Requirement after the first step has been completed; the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Propemr; Third: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Propem= at up to 100% of the Maximum Special Tax for Undeveloped Propemr; Fourth: If additional moneys are needed to satisf}' the Improvement Area No. 1 Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above. under no circumstances , rill the Special Tax levied against any Assessors Parcel of Multi-Family Property or Apartment Propem for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Improvement Area No. 1. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 2 Commencins with Fiscal Year 2014-15, and for each folloNving Fiscal Year. the Council shall levy the Special Tax Proportionately on all Public Urban Parks Property within Improvement Area No. 2 up to 100% of the Maximum Special Tax as necessary to fully fund the Improvement Area No. 2 Special Tax Requirement. For the purposes of determining the Improvement Area 'No. I Operating Fund Requirement and the Improvement Area No. 2 Operating Fund Requirement, the City Share shall be the lesser of the amount determined in Step One and Step Two below. Step One: The City shall calculate the amount equal to 50% of the budgeted costs for maintenance of the Public Urban Parks Propemr that has been accepted and or maintained by the CFD during-the current fiscal year, for the current fiscal year in which the Special Taxes are being levied. and for Public Urban Parks Property that the City anticipates accepting during the upcoming Fiscal Year. Step Two: As outlined in Section 5.](a) of the Eastern Urban Center Parks Agreement. each Fiscal Year. after the Council adopts the City's annual operating budget, the Citv shall calculate the City's total annual public park maintenance cost included in the budget. The Citv shall also calculate the acreage of public parks that are maintained and Cin;of Chula I%ista-Communin Facilities District No14AI(Eastern Urban Center/Millenia) Page 9 Resolution No. 2014-004 Page No. 22 owned by the City and included in the budget (including the Public Urban Parks Property for which the City has accepted title). The total annual cost shall be divided by the total park acreage to determine the City's average annual park maintenance cost per acre for that Fiscal Fear. This amount shall be multiplied by 21.51 acres and then multiplied by a fraction, the numerator of which is the acreage of the Public Urban Parks Property for which the City has accepted title and for which the City is currently assessing a Special Tax in anticipation of acceptance by the City and the denominator of which is 10.60 acres. If the amount calculated pursuant to this Step Two is lower than the amount calculated under Step One above, it shall be the City Share unless the City Manager; at his or her own sole discretion; elects to use the higher amount as the City Share in order to maintain the fifty/fifty (50-50) split of maintenance costs as outlined in Section 5.1(a) of the Eastern Urban Parks Agreement. F. EXEMPTIONS The CFD Administrator shall classify as Tax-Exempt Property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as CPF Property that are owned by a non-profit organization which provides proof to the City prior to March 1St preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as Tax-Exempt Property within Improvement Area No. 1 those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all Taxable Property within Improvement Area No. I to less than 130.39 Acres. Assessor's Parcels defined as Property Owner Association Property and CPF Property that cannot be classified as Tax- Exempt Property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign tax-exempt status in the chronological order in which property becomes exempt Public Property or CPF Property or Tax-Exempt Property Omer Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or CPF Property or Tax-Exempt Property Owner Association Property; its tax-exempt status will be revoked. Taxable Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax. for Taxable Property Owner Association Property and Taxable CPF Property. There shall be no Tax-Exempt Property within Improvement Area No. 2. City of Chula Vista- Community Facilities District A'o.14M(Eastern Urban Center/Millenia) Page 10 Resolution No. 2014-004 Page No. 23 G. :APPEALS Anv landowner or resident who pays the Special Tax and believes that.the amount of the Special Tax levied on their Assessors Parcel is in error shall first consult NNith the CFD Administrator reaardina such error. If following such consultation._ the CFD Administrator determines that an error has occurred: the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action. if any by the CFD Administrator, the landowner or resident believes such error still exists; such person max, file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice; the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD; a special three-member Reviexy/Appeal Committee. The Review/Appeal Committee may establish such.procedures. as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. H. MANNER OF COLLECTION Special Taxes levied in Improvement Area No. 1 pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided; however, that the CFD Administrator may directly bill the Special Tax; may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. Special Taxes levied in Improvement Area No. 2 pursuant to Section E above shall be collected by direct billing by the CFD Administrator, such Special Taxes to be due and payable and shall become delinquent at the same time as Special Taxes levied within Improvement Area No. 1. I. TERM OF SPECIAL TAX Taxable Property in Improvement Area No. l and Improvement Area No. 2 of the CFD shall remain subject to the Special Tax in perpetuity or until the Council takes appropriate actions to terminate the Special Tax in both Improvement Areas pursuant to the Act. Cin,of Chula vista-Communin,Facilities District No.14A1(Eastern Urban Center/A1illenla) Page 11 APPENDIX E- RESOLUTION TO PREPARE THE REPORT The following pages provide a copy of the Resolution to Prepare the Report as approved by the City Council on January 7, 2014. RESOLUTION NO. 2014-005 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING AND DIRECTING THE PREPARATION OF A COMMUNITY FACILITIES DISTRICT REPORT FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) WHEREAS. the CITY COUNCIL of the CITY OF CHULA VISTA. CALIFORNIA (the "City Council"), has declared its intention to initiate proceedings to create a Community Facilities District and to designate two improvement areas therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 19$2," being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance. as originally enacted and subsequently amended pursuant to the powers reserved by the City of Chula Vista under Sections 3. 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law'). This Community Facilities District shall hereinafter be designated as Community Facilities District No. 14M (Eastern Urban Center/Millenia) (the "District"); and WfIEREAS, this City Council directs, pursuant to the provisions of Section 53321.5 of the Government Code of the State of California. the preparation of a Community Facilities District Report to provide more detailed information relating to the proposed District. the proposed improvement areas. the services proposed to be financed from the proceeds of special takes to be levied within each improvement area. and estimate of the cost of providing such services. NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The Director of Public '�A'orks is hereby directed and ordered to prepare, or cause the preparation of. a Community Facilities District Report (the "Report") to be presented to this City Council, generally setting forth and containing the following: SERVICES: A full and complete description of the public services proposed to be financed from the levy of special taxes within each improvement area. COST ESTIMATE: A general cost estimate setting forth costs of providing such services. SPECIAL TAX: Further information regarding the implementation of the rate and method of apportionment of the special tax proposed to be levied -,within each improvement area. Resolution No. 2014-005 Page No. 2 SECTION 3). The Report, upon its preparation, shall be submitted to this City Council for review, and the Report shall be made a part of the record of the public hearing on the Resolution of Intention to establish such District. Presented by Approved as to form by - r Richard A. o ns GI n R. Go gins Director of Public orks City orney PASSED, APPROVED. and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of January 2014 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, Ramirez, Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None 0�Lf '-ecv—, Cheryl Cox ayor ATTEST: Donna R. Norris, CN4C, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) 1. Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2014-005 was duly passed, approved, and adopted by the City Council at a special meeting of the Chula Vista City Council held on the 7th day of January 2014. Executed this 7th day of January 2014. j'P9'3XZtA" 1� vAA�� Donna R. Norris, CMC, City Clerk _ City of Chula Vista QTr CHVIAVISTA Legislation Details (With Text) File#: 14-0032 Name: Declare Election Results Regarding Levy of Special Taxes Within Community Facilities District No. 14M (Eastern Urban Center/Millenia) Type: Action Item Status: Agenda Ready File created: 1/21/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: DECLARATION OF ELECTION RESULTS REGARDING LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) AND THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT THEREIN AND AUTHORIZE THE LEVY OF SPECIAL TAXES A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE RESULTS OF A SPECIAL ELECTION IN COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) B. ORDINANCE OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) (FIRST READING) Sponsors: Indexes: Code sections: Attachments: Item 8 - Resolution Item 8 - Ordinance Item 8 - Exhibit A to Ordinance Date Ver. Action By Action Result 2/11/2014 1 City Council DECLARATION OF ELECTION RESULTS REGARDING LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) AND THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT THEREIN AND AUTHORIZE THE LEVY OF SPECIAL TAXES A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE RESULTS OF A SPECIAL ELECTION IN COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) B. ORDINANCE OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) (FIRST READING) RECOMMENDED ACTION Council adopt the resolution and place the ordinance on first reading. SUMMARY On January 7, 2014, Council initiated proceedings for the formation of CFD No. 14M by adoption of Resolutions 2014-003 through 2014-005. On February 11 , 2014, Council held a public hearing and approved the formation and establishment of CFD No. 14M and called for and ordered to be held an election to submit to the qualified electors of each Improvement Area of CFD No. 14M propositions City of Chula Vista Page 1 of 4 Printed on 2/7/2014 powered by LegistarT"" File #: 14-0032, Version: 1 relating to the levy of special taxes within the Improvement Areas and separate propositions relating to the establishment of an appropriations limit for the district. This action will be the next step in the proceedings to establish CFD No. 14M. This district will fund the perpetual operation and maintenance of (a) landscaping, including, but not limited to, parkways and medians; (b) facilities that are directly related to storm water quality control; (c) walls and fencing, (d) trails; (e) pedestrian bridges, including, but not limited to, graffiti removal; (f) public lighting facilities; and (g) public parks. The City has retained the services of NBS as special tax consultant and Best, Best and Krieger, LLP as legal counsel to provide assistance during the proceedings. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"as defined under Section 15378 of the State CEQA Guidelines because the creation of government funding mechanism is not considered a project; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION On January 13, 1998, Council adopted the "City of Chula Vista Statement of Goals and Policies regarding the establishment of Community Facilities Districts" (the "Goals and Policies"). The approval of this document ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized public services. Taxes levied by maintenance districts, such as CFD No. 14M, are currently excluded from the 2% maximum tax criterion set forth in the Goals and Policies. On April 28, 1998, Council, acting under its Charter authority, enacted the "Chula Vista Community Facilities District Ordinance" (the "Ordinance"). The Ordinance adopted the Mello-Roos Act with modifications to accomplish the following: (1) incorporate all maintenance activities authorized by the "Landscaping & Lighting Act of 1972" (the "1972 Act"); (2) include certain maintenance activities not listed in the Mello-Roos Act or the 1972 Act; and (3) establish an operating reserve fund for open space districts. CFD 14M will provide the necessary funding for the operation and maintenance of public landscaping, storm water quality, walls, fencing, trails, pedestrian bridges, lighting, and park improvements by levying an annual "special tax" which is collected from the property owners within CFD 14M in conjunction with property taxes or via direct billing. All expenses related to the district administration, including levying and collecting the special taxes, are also funded from such special taxes. On September 15, 2009, Council approved an Agreement Regarding Construction of Parks in a Portion of Otay Ranch Eastern Urban Center (the "Parks Agreement"). The Parks Agreement states that the City and McMillin Otay Ranch LLC ("McMillin") shall split equally (50-50) the costs of maintaining the Public Parks in the Eastern Urban Center based on preliminary cost estimates provided by both the City and McMillin. The City's share (and thus McMillin's basic share) shall be based on the average annual cost for 21 .51 acres each fiscal year as calculated for the City's budget for public parks. City of Chula Vista Page 2 of 4 Printed on 2/7/2014 powered by LegistarTM File #: 14-0032, Version: 1 To ensure collection of the City's portion of the cost of the park maintenance, CFD 14M has been structured with two improvement areas with the City parks placed into the second improvement area. On December 17, 2013, Council, acting under its Charter authority, amended the Chula Vista Community Facilities District Ordinance to allow for the City park property to be placed into the improvement area. Each year, the City will be assessed for its portion of the costs to maintain the parks based on the average annual citywide maintenance cost for 21 .51 acres budgeted for that fiscal year multiplied by a ratio of the public park acres in the Eastern Urban Center that have been turned over to the City for maintenance. The ordinance was also amended to allow the CFD Administrator to directly bill the City each year for the assessment so the public parks remain off the County property tax rolls. The proposed CFD 14M is consistent with the above-mentioned Ordinance as amended and the Goals and Policies. In addition, the staff and McMillin have met to discuss, review and clarify the intent of the Goals and Policies and Ordinance, the proposed special tax rates, and the methodology for the apportionment of the special taxes. Any matters raised by McMillin have been discussed and solutions, satisfactory to all parties, have been incorporated into the "Rate and Method of Apportionment" (the "RMA") presented at the January 7, 2014 Council meeting. During its January 7, 2014 meeting, the City Council approved Resolution No. 2014-005, which ordered the preparation of a Community Facilities District Report ("Report"). Earlier in this meeting of February 11 , 2014, the City Council approved the formation and establishment of Community Facilities District No. 14M (Eastern Urban Center/Millenia), authorized the electors to vote on the special taxes and the establishment of an appropriations limit for the district, and authorized the City Clerk to conduct the special election. Resolution/Ordinance The City Clerk, acting as the designated election official, has held the special election within each Improvement Area of Community Facilities District No. 14M (Eastern Urban Center/Millenia) and each such measure did receive the favorable votes of at least 2/3's of the qualified electors of each Improvement Area within the district. There is one resolution and one ordinance with this agenda item, which, if adopted, will accomplish the following: 1 . Declare the results of the special election for Community Facilities District No. 14M (Eastern Urban Center/Millenia). 2. Introduce an ordinance of the City Council authorizing the levy of a special tax within Community Facilities District No. 14M (Eastern Urban Center/Millenia) (First reading). 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. Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy City of Chula Vista Page 3 of 4 Printed on 2/7/2014 powered by LegistarTM File #: 14-0032, Version: 1 Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the goal of Economic Vitality, which includes promoting and supporting the development of quality master-planned communities. CURRENT YEAR FISCAL IMPACT All costs of formation of the district are being borne by the developers and the on-going administration will be funded entirely by the district. The City will recover the full cost of staff time expended in district formation and administration activities in perpetuity. ONGOING FISCAL IMPACT McMillin will be building the six public parks on behalf of the City to meet their park obligations, so there will be no capital costs related to the construction of the parks. One of the parks will be privately maintained, but open to the public. The cost for the maintenance for the five remaining parks shall be shared between the property owners and the City as described in the discussion section of this report. The total annual cost for all the parks is estimated to be $319,859 to the property owners and $319,859 to the General Fund. This includes both maintenance of the parks and periodic replacement of amenities as needed. The development of Millenia will generate additional property tax and sales tax that will help offset the annual General Fund expenditure. Construction for the first public park is anticipated to be complete by the end of 2015 with the park opening in early 2016. The fiscal year 2015/16 impact for this 1 .97 acre park is estimated to be $59,445 to the General Fund, along with $59,445 to be incurred by the property owners. ATTACHMENTS None City of Chula Vista Page 4 of 4 Printed on 2/7/2014 powered by LegistarTM RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE RESULTS OF A SPECIAL ELECTION IN COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA (the "City Council"), has previously undertaken proceedings to create and did establish a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District is referred to as COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) (the "District"); and, WHEREAS, this City Council did call for and order to be held an election to submit to the qualified electors of Improvement Area No. and Improvement Area No. 2 (collectively the "Improvement Areas" and individually and "Improvement Area") within the District a proposition relating to the levy of special taxes within the District and a separate proposition relating to the establishment of an appropriations limit for the District; and, WHEREAS, at this time said election has been held and the measures voted upon and each such measure did receive the favorable votes of at least 2/3's the qualified electors of each Improvement Area within the District, and this City Council desires to declare the results of the election in accordance with the provisions of the Elections Code of the State of California. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. This City Council hereby receives and approves the CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST, as submitted by the City Clerk, acting in her capacity as the Election Official, said Statement identifying the measures voted upon and the number of votes given for and/or against the measures voted upon. A copy of said Certificate and Statement is attached hereto, marked Exhibit "A", referenced and so incorporated. 60297.00043\8528714.1 1 SECTION 3. The City Clerk is hereby directed, pursuant to the provisions of the Elections Code of the State of California, to enter in the minutes the results of the election as set forth in said STATEMENT OF VOTES CAST. PREPARED BY: APPROVED AS TO FORM BY: Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 60297.00043\8528714.1 2 EXHIBIT "A" CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) SPECIAL ELECTION in said City,held February 11, 2014. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in said District in said City, and the whole number of votes cast for the Measures in said District in said City, and the totals of the respective columns and the totals as shown for the Measures are full, true and correct. I. VOTES CAST ON PROPOSITION A: YES NO 2. VOTES CAST ON PROPOSITION B: YES NO 3. VOTES CAST ON PROPOSITION C: YES NO WITNESS my hand and Official Seal this day of , 2014. CITY CLERK ELECTION OFFICIAL CITY OF CHULA VISTA STATE OF CALIFORNIA 60297.00043\8528714.1 3 ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE IMPROVEMENT AREAS OF COMMUNITY FACILITIES DISTRICT 14M (EASTERN URBAN CENTER/MILLENIA) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA (the "City Council"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes within a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA) (the "District"). THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 14M (EASTERN URBAN CENTER/MILLENIA), DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This City Council does, by the passage of this Ordinance, authorize the levy of special taxes within Improvement Area No. 1 and Improvement Area No. 2 of the District pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit"A" attached hereto (the "Rate and Method"), referenced and so incorporated. SECTION 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annually determine the special taxes to be levied within the District for the then current tax year or future tax years, except that the special tax to be levied within the District shall not exceed the maximum special tax calculated pursuant to the Rate and Method, but the special tax may be levied at a lower rate. SECTION 3. The special taxes herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may,by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4. The special taxes shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall 1 continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. PREPARED BY: APPROVED AS TO FORM BY: Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2 EXHIBIT A Community Facilities District No. 14M(Eastern Urban Center/Millenia) Rate and Method of Apportionment A - I CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 14M RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 (Eastern Urban Center/Millenia) A Special Tax of Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista ("CFD") shall be levied on all Taxable Property in the CFD and collected each Fiscal Year commencing in Fiscal Year 2014-2015 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All such Taxable Property shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "`A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act (California Government Code Section 66410 et seq.) and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. In the event that parcel acreage information is not available from the sources previously listed, San Diego County GIS data may be utilized. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes within Improvement Area No. 1, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of Improvement Area No. 1; the costs of collecting installments of the Special Taxes within Improvement Area No. 1; and any other costs required to administer Improvement Area No. 1 as determined by the City. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page I "Apartment Property" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in an `A' Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots thereon, that were recorded prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. If any parcel of Public Urban Parks Property is not shown on an Assessor's Parcel Map or assigned an assessor's parcel number, an Assessor's Parcel of such property shall mean that property as shown on the instrument conveying the title of such property to the City. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 14M (Eastern Urban Center/Millenia) of the City of Chula Vista. "CFD Boundary Map" entitled "Proposed Boundaries of Community Facilities District No. 14M (Eastern Urban Center/Millenia), City of Chula Vista, County of San Diego, State of California" as recorded in the Office of the County Recorder of the County of San Diego on January 23, 2014 as Document No. 2014-0030558 at Page 39 of Book 44 of the Book of Maps of Assessment and Community Facilities Districts for such County. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "City Share" means the City's Share of the budgeted costs of the maintenance of the Public Urban Parks Property, as determined in accordance with the Eastern Urban Center Parks Agreement and Section E below. "Community Purpose Facility Property" or "CPF Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 2 "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Eastern Urban Center Parks Agreement" means that certain Agreement Regarding Construction of Parks in a Portion of Otay Ranch Eastern Urban Center made and entered into as of the 15th day of September, 2009 by and between the City and McMillin Otay Ranch LLC, as recorded on October 28, 2009 with the San Diego County Recorder's Office, Document Number 2009-0599389, or as otherwise modified and agreed upon by all parties thereto. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" means all property within the boundaries of such improvement area as shown on the CFD Boundary Map. "Improvement Area No. 1 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 1 as described in the CFD special tax report and Administrative Expenses. "Improvement Area No. 1 Operating Fund Requirement" means, for any Fiscal Year, an amount equal to the budgeted costs for Improvement Area No. 1. The budgeted costs for Improvement Area No. 1 shall equal (i) the greater of(A) 50% of the budgeted costs for maintenance of the Public Urban Parks Property and (B) 100% of such budgeted costs minus the City Share; plus (ii) the budget costs of landscape maintenance, street frontage maintenance, bio-retention maintenance, storm water maintenance, and the maintenance, repair and replacement of the facilities and improvements, other than the Public Urban Parks Property, which have been accepted and or maintained by the CFD during the current Fiscal Year; plus (iii) the budgeted Administrative Expenses for the current Fiscal Year in which Special Taxes are levied. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 3 "Improvement Area No. 1 Reserve Fund" means a fund that shall be maintained for the CFD for Improvement Area No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes within Improvement Area No. 1 and a reasonable buffer to prevent large variations in annual Special Tax levies within Improvement Area No. 1. "Improvement Area No. 1 Reserve Fund Requirement" means an amount equal to up to 100% of the Improvement Area No. 1 Operating Fund Requirement for any Fiscal Year. "Improvement Area No. 1 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay the Improvement Area No. 1 Operating Fund Requirement; (ii) pay any amounts required to establish or replenish the Improvement Area No. 1 Reserve Fund to the Improvement Area No. 1 Reserve Fund Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes within Improvement Area No. 1 based on the delinquency rate for Special Taxes levied in the previous Fiscal Year within Improvement Area No. 1; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Improvement Area No. 1 Reserve Fund above the Improvement Area No. 1 Reserve Fund Requirement and any amount remaining in the Improvement Area No. 1 Operating Fund that is available to pay the Improvement Area No. 1 Operating Fund Requirement in such Fiscal Year. "Improvement Area No. 2" means all property within the district boundaries that is owned by the City and classified as Public Urban Parks Property. "Improvement Area No. 2 Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for the authorized maintenance services for Improvement Area No. 2 as described in the CFD special tax report. "Improvement Area No. 2 Operating Fund Requirement" means, for any Fiscal Year, an amount equal to the City Share. "Improvement Area No. 2 Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to pay the Improvement Area No. 2 Operating Fund Requirement less a credit for funds, if any, available to reduce the annual Special Tax levy within Improvement Area No. 2 and any amount remaining in the Improvement Area No. 2 Operating Fund that is available to pay the Improvement Area No. 2 Operating Fund Requirement in such Fiscal Year. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 4 "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Property and Non-Residential Property uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, only the Residential Land Use Class thereon is subject to taxation pursuant to the provisions of Section C. "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential dwelling units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, and condominiums. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s)has been issued for a structure or structures for non-residential use. "Ordinance" means the Chula Vista Community Facilities District Ordinance, being Ordinance No. 2730 enacted on April 28, 1998, as modified and supplemented by Ordinance No. 3293, enacted on December 17, 2013. "Property Owner Association Property" means any property within the CFD boundaries that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the CFD boundaries that has provided proof to the City prior to March 1 st preceding the Fiscal Year in which the Special Tax is being levied, that it is expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency, excluding Public Urban Parks Property. "Public Urban Parks" means those parks to which the City accepts title pursuant to the Eastern Urban Center Parks Agreement. "Public Urban Parks Property" means all Assessor's Parcels that are owned by the City and upon which the Public Urban Parks are located or to be located. "Residential Property" means all Assessor's Parcels of Developed Property classified as Apartment Property or Multi-Family Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means the Special Tax levied pursuant to the provisions of sections D and E below in each Fiscal Year on each Assessor's Parcel of Developed Property, Approved Property, and Undeveloped Property in Improvement Area No. 1 to fund the Improvement Area No. 1 Special Tax Requirement and the Public Urban Parks Property to fund the Improvement Area No. 2 Special Tax Requirement. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 5 "State" means the State of California. "Taxable Property" means, as to Improvement Area No. 1, all of the Assessor's Parcels within the boundaries of Improvement Area No. I that are not exempt from the Special Tax pursuant to law or as defined below under Tax-Exempt Property and, as to Improvement Area No. 2, all Assessor's Parcels of Public Urban Parks Property. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property excluding Taxable Property Owner Association Property, or (iii) Assessor's Parcels of Taxable CPF Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1St preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section F below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be (a) categorized as being located in either Improvement Area No. I or Improvement Area No. 2; (b) classified as Developed Property, Public Urban Parks Property,Approved Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable CPF Property, and (c) subject to the levy of Special Taxes pursuant to Sections D and E below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. The Land Use Class of each Assessor's Parcel of Residential Property or Mixed Use Property shall be determined based on the records of the San Diego County Assessor, or other such information provided by the City. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section F below shall be taxed as Non- Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is undeveloped it shall be classified as Undeveloped Property. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 6 C. MAXIMUM SPECIAL TAX RATE 1. Improvement Area No. 1 a. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 14M within Improvement Area No. 1 Land Use Maximum Class Description Special Tax 1 Apartment Property $189.00 per Dwelling Unit 2 Multi-Family Property $252.00 per Dwelling Unit 3 Non-Residential Property $1,259.00 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall only be levied on the Residential Property Land Use Class located on that Assessor Parcel(s). Sample Maximum Special Tax Calculation for Mixed Use (Non-Residential Property and Apartment Property) Under the proposed example, assume that Assessor's Parcel Number I is classified as a Mixed Use Property. Assessor's Parcel Number 1 is a 2 Acre parcel that contains 10,000 square feet of retail shops and Apartment Property with 10 residential dwelling units. The following table shows what the expected annual Maximum Special Tax would be for Assessor's Parcel Number 1. No. of Non-Residential Residential Assessor Residential Property Property Total Annual Parcel Parcel Dwelling Maximum Maximum Maximum No. Acreage Units Special Tax Special Tax Special Tax 1 2.00 10 $0.00 $1,890.00 $1,890.00 (1) The Maximum Special Tax is based upon the initial Maximum Special Tax rates as defined in Table 1. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 7 b. Approved Property, Undeveloped Property and Taxable Property Owner Association Property within Improvement Area No. 1 The Maximum Special Tax for Approved Property, Undeveloped Property and Taxable Property Owner Association Property shall be $4,359.00 per Acre. 2. Improvement Area No. 2 a. Public Urban Parks Property TABLE 2 Maximum Special Tax for Public Urban Parks Property Community Facilities District No. 14M within Improvement Area No. 2 Land Use Maximum Class Description Special Tax 1 Public Urban Parks $33,049.00 per Acre Property 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax for Improvement Area No. 1 and Improvement Area No. 2 as shown in Tables 1 and 2 above that may be levied on each Assessor's Parcel in the CFD shall be adjusted each Fiscal Year beginning in Fiscal Year 2014-15 and thereafter by a factor equal to the greater of, the positive percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items) from the base date of June 1, 2013 through June 1 of the prior Fiscal Year, or 0%, provided the Maximum Special Tax shall never be less than the amounts shown in Tables 1 and 2,respectively. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 1 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax in Improvement Area No. 1 at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Improvement Area No. 1 Special Tax Requirement. The Special Tax in Improvement Area No. 1 shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within Improvement Area No. 1 up to 100% of the applicable Maximum Special Tax; City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 8 Second: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional monies are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Improvement Area No. 1 Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Multi-Family Property or Apartment Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Improvement Area No. 1. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR IMPROVEMENT AREA NO. 2 Commencing with Fiscal Year 2014-15, and for each following Fiscal Year, the Council shall levy the Special Tax Proportionately on all Public Urban Parks Property within Improvement Area No. 2 up to 100% of the Maximum Special Tax as necessary to fully fund the Improvement Area No. 2 Special Tax Requirement. For the purposes of determining the Improvement Area No. 1 Operating Fund Requirement and the Improvement Area No. 2 Operating Fund Requirement, the City Share shall be the lesser of the amount determined in Step One and Step Two below. Step One: The City shall calculate the amount equal to 50% of the budgeted costs for maintenance of the Public Urban Parks Property that has been accepted and or maintained by the CFD during the current fiscal year, for the current fiscal year in which the Special Taxes are being levied, and for Public Urban Parks Property that the City anticipates accepting during the upcoming Fiscal Year. Step Two: As outlined in Section 5.1(a) of the Eastern Urban Center Parks Agreement, each Fiscal Year, after the Council adopts the City's annual operating budget, the City shall calculate the City's total annual public park maintenance cost included in the budget. The City shall also calculate the acreage of public parks that are maintained and City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 9 owned by the City and included in the budget (including the Public Urban Parks Property for which the City has accepted title). The total annual cost shall be divided by the total park acreage to determine the City's average annual park maintenance cost per acre for that Fiscal Year. This amount shall be multiplied by 21.51 acres and then multiplied by a fraction, the numerator of which is the acreage of the Public Urban Parks Property for which the City has accepted title and for which the City is currently assessing a Special Tax in anticipation of acceptance by the City and the denominator of which is 10.60 acres. If the amount calculated pursuant to this Step Two is lower than the amount calculated under Step One above, it shall be the City Share unless the City Manager, at his or her own sole discretion, elects to use the higher amount as the City Share in order to maintain the fifty/fifty (50-50) split of maintenance costs as outlined in Section 5.1(a) of the Eastern Urban Parks Agreement. F. EXEMPTIONS The CFD Administrator shall classify as Tax-Exempt Property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as CPF Property that are owned by a non-profit organization which provides proof to the City prior to March Is' preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as Tax-Exempt Property within Improvement Area No. 1 those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all Taxable Property within Improvement Area No. 1 to less than 130.39 Acres. Assessor's Parcels defined as Property Owner Association Property and CPF Property that cannot be classified as Tax- Exempt Property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign tax-exempt status in the chronological order in which property becomes exempt Public Property or CPF Property or Tax-Exempt Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or CPF Property or Tax-Exempt Property Owner Association Property, its tax-exempt status will be revoked. Taxable Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property and Taxable CPF Property. There shall be no Tax-Exempt Property within Improvement Area No. 2. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 10 G. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists; such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. H. MANNER OF COLLECTION Special Taxes levied in Improvement Area No. 1 pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. Special Taxes levied in Improvement Area No. 2 pursuant to Section E above shall be collected by direct billing by the CFD Administrator, such Special Taxes to be due and payable and shall become delinquent at the same time as Special Taxes levied within Improvement Area No. 1. L TERM OF SPECIAL TAX Taxable Property in Improvement Area No. 1 and Improvement Area No. 2 of the CFD shall remain subject to the Special Tax in perpetuity or until the Council takes appropriate actions to terminate the Special Tax in both Improvement Areas pursuant to the Act. City of Chula Vista- Community Facilities District No.14M(Eastern Urban Center/Millenia) Page 11 _ City of Chula Vista QTR CHVIAVISTA Legislation Details (With Text) File#: 14-0075 Name: SDG&E Bayfront Substation Type: Action Item Status: Agenda Ready File created: 2/6/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IN SUPPORT OF THE RELOCATION OF THE SDG&E BAYFRONT SUBSTATION INCLUDING THE BAYFRONT ENHANCEMENT FUND ALTERNATIVE AND CONSIDERATION OF ADDITIONAL FEASIBLE UNDERGROUNDING OF UTILITY LINES AND OTHER MEASURES TO ADDRESS VISUAL IMPACTS CONSISTENT WITH THE CITY'S CERTIFIED LOCAL COASTAL PROGRAM AND THE COASTAL ACT Sponsors: Indexes: Code sections: Attachments: Item 9 - Resolution EXHIBIT A- Extract from MOU Section 1.lpdf EXHIBIT B - Extract from LCP EXHIBIT C -Coastal Act Section 30251 EXHIBIT D - Letter from ISO to CCC Date Ver. Action By Action Result 2/11/2014 1 City Council RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IN SUPPORT OF THE RELOCATION OF THE SDG&E BAYFRONT SUBSTATION INCLUDING THE BAYFRONT ENHANCEMENT FUND ALTERNATIVE AND CONSIDERATION OF ADDITIONAL FEASIBLE UNDERGROUNDING OF UTILITY LINES AND OTHER MEASURES TO ADDRESS VISUAL IMPACTS CONSISTENT WITH THE CITY'S CERTIFIED LOCAL COASTAL PROGRAM AND THE COASTAL ACT RECOMMENDED ACTION This item is presented in response to a City Council referral at the December 17, 2013 City Council meeting. City Council should take such action as it deems appropriate. City of Chula Vista Page 1 of 1 Printed on 2/7/2014 powered by LegistarTM Draft Substation Resolution February 6, 2014 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IN SUPPORT OF THE RELOCATION OF THE SDG&E BAYFRONT SUBSTATION INCLUDING THE BAYFRONT ENHANCEMENT FUND ALTERNATIVE AND CONSIDERATION OF ADDITIONAL FEASIBLE UNDERGROUNDING OF UTILITY LINES AND OTHER MEASURES TO ADDRESS VISUAL IMPACTS CONSISTENT WITH THE CITY'S CERTIFIED LOCAL COASTAL PROGRAM AND THE COASTAL ACT WHEREAS, on October 12, 2004, the City of Chula Vista ("City") entered into a Memorandum of Understanding ("MOU")with San Diego Gas & Electric ("SDG&E") to facilitate, among other things, the relocation of the existing SDG&E Bayfront 138kV substation ("Substation"), and the undergrounding of existing and future utility transmission and distribution lines and towers along the Bayfront; and WHEREAS, on January 6, 2010, SDG&E and the San Diego Unified Port District ("Port District") entered into that certain Real Estate and Exchange Agreement to facilitate the exchange of properties encumbered by SDG&E and the Port District to allow for the relocation of the existing Substation; and WHEREAS, on August 9, 2012, as the result of an effort of over ten years of collaborative planning and community outreach on the part of the City and the Port District the California Coastal Commission ("CCC") certified the Chula Vista Local Coastal Program Amendment (the "LCPA" or "LCP") and the San Diego Port District Port Master Plan Amendment/Chula Vista Bayfront Master Plan ("CVBMP"); and WHEREAS, said LCP's policies and regulations envision the relocation of the existing Substation to a site on Bay Boulevard near Palomar Street located approximately one-half mile south from its current location (the "Relocation Site"); and WHEREAS, the CVBMP designates the site currently occupied by the Substation for the development of a Community Park, RV Park, and Industrial Park; and WHEREAS, said development would not be implemented without the relocation of the Substation to the Relocation Site; and WHEREAS, without the relocation of the Substation from its current site the City's LCP and CVBMP's vision, objectives, and policies would not be implemented; and WHEREAS, on October 17, 2013 the California Public Utilities Commission ("CPUC") granted a Permit to Construct the Substation at the Relocation Site, but without all of City's desired Project elements to address visual impacts; and WHEREAS, the CCC will consider the issuance of a Coastal Development Permit, pursuant to the Coastal Act, for the construction of the Substation at the Relocation Site; and WHEREAS, the City has consistently advocated for the relocation of the Substation before the CPUC and the CCC, including the Project alternative commonly known as the Bayfront Enhancement Fund Alternative; and WHEREAS, the City desires to reaffirm its previous support for the relocation, including BEFA, and the consideration of additional feasible undergrounding of utility lines and other measures to address visual impacts consistent with the City's certified LCP and the California Coastal Act. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve as follows: 1. The City Council reaffirms its strong support and requests Coastal Commission approval of the following: a. The relocation of the SDG&E Substation (the "Project") from its existing site within the CVBMP, now designated for redevelopment into a Community Park, RV Park and Industrial Park, to the 12-acre Relocation Site to the south of the existing site, currently designated and zoned for industrial use. b. The upgrade of the existing SDG&E Substation at the Relocation Site to a 230/69kVsubstation designed to meet the long term, reliable energy supply needs of the region.. C. The version of the Project commonly known as the `Bayfront Enhancement Fund Alternative," which has been identified by SDG&E in its application with the CCC as its "preferred least environmentally damaging feasible alternative", particularly those elements that remove Transmission Tower 188701, replace Transmission Tower 188700 with a steel pole and underground the related 138kV lines, and including the provision for funding of the Living Coast Discovery Center and other projects coordinated with the U.S. Fish & Wildlife Service. d. Request that the CCC condition the permit to include landscaped berms and/or vegetative screening selected or maintained to provide year round screening and architectural features such as screen walls to address the adverse visual effects of the proposed project. 2. Prior to any final action, the City Council also requests that the Coastal Commission analyze the feasibility and benefits of requiring the undergrounding of any and all additional transmission lines proposed as part of the Project to the extent such undergrounding creates a net positive improvement in visual impacts caused by the Proj ect. 3. The City Council desires that the Project be developed consistent with (i) its MOU with the SDG&E; (ii) its Certified LCP approved by the City Council on September 25, 2012; (c) the Coastal Act; (iii) best practices for the development of such facilities in environmentally sensitive areas; and (iv) the energy needs of the region. Towards this end, the City Council requests that the CCC take particular notice of and be guided by the following: a. Section I.7 of the MOU which provides for the removal of Tower 188701 and related undergrounding as part of the Project (attached hereto as Exhibit A). b. LCP, LUP Objective GD.2 which provides for the undergrounding of utilities serving the Bayfront , and LUP Policy VW.1.A and Specific Plan Section 19.85.006 which provide for development ensuring views that preserve a sense of proximity to the Bay (attached hereto as Exhibit B). C. Coastal Act Section 30251 which provides for consideration and protection of visual qualities of coastal areas as a resource of public importance (attached hereto as Exhibit Q. d. A letter dated January 16, 2014 from Neil Millar, Executive Director, Infrastructure Development at the ISO to Alison Dettmer, Deputy Director at the California Coastal Commission regarding the urgent need for the Project to ensure the safe, reliable and economic operation of the transmission system (attached hereto as Exhibit D). e. Such other relevant documents and submittals consistent with City objectives for the Project. EXHIBIT A EXTRACT FROM MEMORANDUM OF UNDERSTANDING BETWEEN SAN DIEGO GAS & ELECTRIC COMPANY AND THE CITY OF CHULA VISTA SECTION 1.7 Switchyard: In the event the Project has been constructed, the Main Street Substation has been Upgraded to 230 kV, and the South Bay Power Plant can be and is retired, replaced, or relocated such that the facility cannot be returned to service without new authorization from any and all required authorities, and all necessary SDG&E Board and FERC, CPUC and California Independent System Operator(CaIISO) approvals acceptable to SDG&E are acquired for the relocation of the switchyard, SDG&E will relocate the switchyard at no cost to the City provided that the City provides, at no cost to SDG&E, adequate land for the new switchyard in an acceptable location and land rights as defined below to SDG&E to interconnect with its electric system. The approvals acquired for the relocation of the switchyard shall be deemed acceptable to SDG&E provided that it is not materially different from the switch yard relocation application (submitted and as may be revised by SDG&E), not materially detrimental to SDG&E, and the cost of said relocation will be fully collected in rates. SDG&E will consider the following factors in determining an acceptable location: (I) The new location must have permanent easement and the same entitlements as are current! y held by SDG& E for the existing switchyard or an alternative acceptable to SDG&E. (2) Such a new Switchyard would be located at an alternative location on Chula Vista's Bayfront,west ofl-5, adjacent to existing right of way and on land that is environmentally clean and seismically acceptable, or, if circumstances warrant, at such location as the parties may mutually select. (3) The footprint for a new Switchyard would be at least 450 x 650 feet depending on the connections. The cost to SDG&E is currently estimated to be approximately $50 million. Upon relocation of the Switchyard and pursuant to sections 1.4A and IAC, the 138 kV circuit located from Tower 281763 to approximately Tower 188701 will be undergrounded once the City has designated the 20A funds or other alternative funding the City may have (with Tower 188700 remaining above ground). SDG&E will work with the City to minimize overhead structures once the location of the new Switchyard is determined. SDG&E will include the removal of the other 138 kV circuit and the Supporting Structures, including Tower 188701,with its application for the relocation of the Switchyard. This removal of said 138 kV, Supporting Structures, and Tower 188701 will be done and paid for by SDG&E consistent with its rules and regulations. The City will timely process all necessary City permits and support SDG&E in its applications to accomplish this construction, consistent with all laws and regulations applicable to SDG&E and the City. End of Document EXHIBIT B EXTRACT FROM CHULA VISTA LOCAL COASTAL PROGRAM LAND USE PLAN (LUP) AND SPECIFIC PLAN (SP) LUP OBJECTIVE GD.2 Objective GD.2 Utilities serving the bayfront shall be undergrounded. LUP POLICY VW.1.A Policy VW.1.A Public views shall be protected and provided from freeways, major roads, Bayfront perimeter. Policies regarding each of these categories are provided below. Views from the Freeway and Major Entry. Development shall provide an attractive view onto the site and establish a visual relationship with San Diego Bay, marshes, and bay-related development. High-rise structures shall be oriented to minimize view obstruction. Views from Roadways within the Site (particularly from Bay Boulevard and Marina Parkway to the marshlands, San Diego Bay, parks, and other bay-related development.) Development and activity sites shall preserve a sense of proximity to the bay and marshlands. Views from the Perimeters of the Bayfront Outward. This view is primarily a pedestrian-oriented stationary view and more sustainable. These views will be experienced from various parts of open space and pathway system locations and will enable persons to renew visual contact at close range with San Diego Bay and marshlands. Some close-range pedestrian views may be blocked to protect sensitive species in the National Wildlife Refuge. High-rise Development Vistas. The limited high-rise development within the LCP Planning Area shall maximize the panoramic view opportunities created with increased height. SP SECTION 19.85.006 19.85.06 Form and appearance. A. Form and Appearance Objectives. The following objectives shall serve as guidelines for use of land and water resources to preserve a sound natural environment: 1. Preserve existing wetlands in a healthy state to ensure the aesthetic enjoyment of marshes and the wildlife that inhabits them. 2. Change the existing industrial image of the Bayfront and develop a new identity consonant with its future prominent public and commercial recreational role. 3. Improve the visual quality of the shoreline by promoting public and private uses that provide proper restoration, landscaping, and maintenance of shoreline areas. Exhibit B Page 2 of 3 4. Remove, or mitigate by landscaping, structures or conditions that have a blighting influence on the area. 5. Eliminate or reduce barriers to linking the Bayfront to the rest of western Chula Vista and establish a memorable relationship between the Bayfront (and the areas and elements that comprise it) and adjoining areas of Chula Vista, the freeway, and arterial approaches to the Bayfront (see Exhibit 6, Form and Appearance Map). �1ypb r x N� �v - ,p 9y'„ T a a 15 t T t C, '' .✓ �G�� lS o x t V _ 2 Y '.. T b F■'4 �= 11 I r o 9 � , ANIT ST! at e -a 2!-[..x.'.� up T" I� ♦ { EXHIBIT C CALIFORNIA COASTAL ACT SECTION 30251 CALIFORNIA PUBLIC RESOURCES CODE 30251. The scenic and visual qualities of coastal areas shall be considered and protected as a resource of public importance. Permitted development shall be sited and designed to protect views to and along the ocean and scenic coastal areas, to minimize the alteration of natural land forms, to be visually compatible with the character of surrounding areas, and, where feasible, to restore and enhance visual quality in visually degraded areas. New development in highly scenic areas such as those designated in the California Coastline Preservation and Recreation Plan prepared by the Department of Parks and Recreation and by local government shall be subordinate to the character of its setting. End of Document �~ California 1,90 51-iop7rip a Ken wtd I ow California Independent System operator Corporation EXHIBIT D Letter dated .Ianitary 16, 2014 Via a-Inail From Neil Millar, Executive Director, 111fl'astl'uCture Development at the ISO To Alison Dettmer, Deputy Director at the California Coastal Conimissiou. January 16, 2014 Ms. Alison Dettmer Deputy Director California Coastal Commission 45 Fremont Street, Suite 2000 San Francisco, CA 942015-2219 adettmer@coasta I.ca.gov Re: Need for the Bay Boulevard 230169 kV Substation Project Dear Ms. Dettmer; This letter is to express the California Independent System Operator's (ISO) support for the Bay Boulevard 230/69kV substation project in the City of Chula Vista and to reiterate the urgent need for this project. This project was approved by the ISO Board of Governors in February, 2010, based on a recommendation from the ISO's technical staff(see the attached memo from ISO staff dated February 3, 2010). The ISO has the responsibility for ensuring the safe, reliable, and economic operation of the bulk power system serving California, In the ISO's view, the basic reliability need for this project has not changed. In fact, this project has become even more critical with the passage of time, and failure to complete this project in a timely fashion may have the risk significant negative impacts for the transmission system and ratepayers. These potential impacts fall into several categories: Reliability—The South Bay Power Plant (SBPP), retired at the end of 2010, provided not just a significant amount of megawatts (MW)to the South Bay region, but also provided significant voltage and reactive power (MVAR) support to the 69 kV and 138 kV systems serving the region. This new Bay Boulevard 230/69kV substation project was a key component in the long term reliable supply to the area with the retirement of the South Bay Power plant, and we are well past the targeted in-service date of June, 2012. wivi.rEti°.;t-s.cook 1 260 Outcropping Way, Folsom, CA 95630 1 916.608-1113 Ms. Alison Dettmer January 16, 2014 Page 2 California Independent System Operator Corpomflon Economics —As discussed extensively by SDG&E's technical staff in testimony before the California Public Utilities Commission, this project is a critical component of upgrading the 230 kV bulk power system in and around San Diego to accommodate new efficient conventional generation as well as new wind and solar generation. Without the Bay Boulevard substation; we are facing increased risk of uneconomic redispatch of thermal generation in the San Diego area and the possible reduction in allowable dispatch of renewable generation in the Imperial Valley. Policy—The Bay Boulevard substation helps address several policy goals. As stated above, it is a critical component of accommodating renewable generation, for the purposes of meeting the 33% Renewable Portfolio Standard (RPS) goal by 2020. The 180 understands that the Coastal Commission is considering whether the substation design can be revisited. As any material design changes would require CPUC approval, we strongly discourage any changes to the project design at this late stage, which would unduly delay the project. In light of the delays experienced in securing CPUC approval of the Bay Boulevard substation project, it is not reasonable to revisit the approved design of the substation absent a compelling reason that justifies the increased reliability risks and costs to ratepayers. Piease consider this a request for your support to accommodate the construction of the Bay Boulevard substation as soon as possible and as approved by the CPUC. Sincerely, s Neil Millar Executive Director, Infrastructure Development cc: Will Spoor(WSpeer @semprautiiities,com) John Jontry Ojontry@semprautilities.com) /Attachments; CAISO staff Memo to Board 2-3-2010.pc tivww.ctii�a,corr # City of Chula Vista CrR Of VTA Legislation Details (With Text) File#: 14-0070 Name: Type: Councilmember Report Status: Agenda Ready File created: 2/6/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: COUNCILMEMBER SALAS Status Report on Information Gathered and Timing for Future Council Consideration of Possible School District Unification Sponsors: Indexes: Code sections: Attachments: Date Ver. Action By Action Result COUNCILMEMBER SALAS Status Report on Information Gathered and Timing for Future Council Consideration of Possible School District Unification RECOMMENDED ACTION City of Chula Vista Page 1 of 1 Printed on 2/7/2014 # City of Chula Vista CrR Of VTA Legislation Details (With Text) File#: 14-0068 Name: Type: Closed Session Item Status: Agenda Ready File created: 2/5/2014 In control: City Council On agenda: 2/11/2014 Final action: Title: CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) One Case. There is an ongoing disagreement that between the "Participating Agencies" (including the City of Chula Vista), on the one hand, and the City of San Diego and Padre Dam Municipal Water District, on the other hand, over responsibility for reimbursing Padre Dam for its overpayment of wastewater fees dating back to 1998 under the terms of the Master Wastewater Disposal Agreement between the parties. Sponsors: Indexes: Code sections: Attachments: Date Ver. Action By Action Result CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) One Case. There is an ongoing disagreement that between the "Participating Agencies" (including the City of Chula Vista), on the one hand, and the City of San Diego and Padre Dam Municipal Water District, on the other hand, over responsibility for reimbursing Padre Dam for its overpayment of wastewater fees dating back to 1998 under the terms of the Master Wastewater Disposal Agreement between the parties. City of Chula Vista Page 1 of 1 Printed on 2/7/2014