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Home My WebLink About2015-05-26 Agenda Packet 1 declare under penalry of perjury that I em employed by the City of Chula Vista in the office of the City Clcrk and t6u[posted the document according to Brown Act ----- -------------------- -------requircments. ------ --- — _.� -� _ --- — — — — — -.-_ ._ . - --- - ;v.. Deud: 5 15 Sigoea� , ; y �; i� >.,..:� .� r • cm oF < -+r • " - _ CHULA VISTA _ J o s \ � ey�� , Mary Casillas Salas, Mayor - Patricia Aguiiar, Councilmember Gary Halbert, City Manager Pamela Bensoussan, Councilmember Glen R. Googins, City Attomey John McCann, Councilmember ponna R. Norris, City Clerk Steve Miesen, Councilmember Tuesday, May 26, 2015 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY MEETING JOINTLY WITH THE CITY COUNCIL OF THE CITY OF CHULA VISTA Nolice is here6y given that the Mayor ot the City ol Chula Vista has called and will convene Special Mee6ngs of the Successor Agency to fhe Redevebpmenf Agency and tbe Housing�AuthoAty meeting %ointly with the City Council on Tuesday, May 26. 2015, at 5:00 p.m. in the Council Chambers, located af 276 Fourth Avenue, � Building A, Chula Vista, Califomia to consider items on this agenda. CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Bensoussan, McCann, Miesen and Mayor Salas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY A. 15-0221 PRESENTATION OF A PROCLAMATION TO ASIAN AMERICAN PACIFIC ISLANDER DEMOCRATIC CLUB PRESIDENT MATTHEW YAGYAGAN, PROCLAIMING MAY 2015 AS ASIAN PACIFIC AMERICAN HERITAGE MONTH IN THE CITY OF CHULA VISTA Cityo)Chv/a Ysta Page 1 Pnnredon S�27C1015 City Council CONSENT CALENDAR (Items 1 - 8) Agenda May 26, 2015 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. 15 -0223 APPROVAL OF MINUTES OF APRIL 21, 23 AND MAY 5, 2015. Staff Recommendation: Council approve the minutes. 2. 15 -0217 WRITTEN COMMUNICATIONS Memorandum from Councilmember Miesen requesting an excused absence from the May 12, 2015 City Council meeting. Staff Recommendation: Council excuse the absence. 3. 15 -0197 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT AND APPROVING AN AGREEMENT WITH NBS GOVERNMENT FINANCE GROUP IN THE AMOUNT OF $96,000 TO PERFORM DISCLOSURE SERVICES IN PREPARATION FOR THE REFUNDING OF SEVERAL EXISTING COMMUNITY FACILITIES DISTRICTS Department: Finance Department Staff Recommendation: Council adopt the resolution. 4. 15 -0201 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2014/2015 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Department: Finance Department Staff Recommendation: Council accept the report and adopt the resolution. City of Chula Vista 2015 -05 -26 Agenda Packet Page 2 Printed on 512112015 Page 2 City Council Agenda May 26, 2015 5. 15 -0176 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PERFORMING AND VISUAL ARTS GRANT TASK FORCE'S SELECTION OF THE FISCAL YEAR 2015 PERFORMING AND VISUAL ARTS GRANTS RECIPIENTS AND MONETARY GRANT AWARDS TOTALING $82,800 Department: Library Department Staff Recommendation: Council adopt the resolution. 6. 15 -0158 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT AND AUTHORIZING THE POLICE DEPARTMENT TO RECEIVE CANINE TRAINING, KENNELING, AND CERTIFICATION SERVICES FROM MAN K9 Department: Police Department Staff Recommendation: Council adopt the resolution. 7. 15 -0198 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LEASE AGREEMENT WITH SAN YSIDRO HEALTH CENTER FOR A PORTION OF A CITY -OWNED BUILDING AND APPURTANANCES LOCATED AT 1800 MAXWELL ROAD AND AMENDING THE FISCAL YEAR 2014 -2015 BUDGET FOR PAYMENT OF THE BROKER COMMISSION, RELOCATION COSTS AND MINOR CONSTRUCTION COSTS (4/5 VOTE REQUIRED) Department: Public Works Department Staff Recommendation: Council adopt the resolution. City of Chula Vista 2015 -05 -26 Agenda Packet Page 3 Printed on 512112015 Page 3 City Council Agenda May 26, 2015 8. 15 -0199 CONSIDERATION OF ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS FOR CERTAIN OPEN SPACE DISTRICTS TO BLUE SKIES LANDSCAPE MAINTENANCE, INC. AND AZTEC LANDSCAPING, INC. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY OF CHULA VISTA AND BLUE SKIES LANDSCAPE MAINTENANCE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 1 (OPEN SPACE DISTRICTS 3, 4, 8, ROLLING HILLS RANCH, AND EASTLAKE WOODS AND VISTA) IN THE AMOUNT OF $320,258, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY OF CHULA VISTA AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 2 (OPEN SPACE DISTRICTS 5, 6, 9, 10, 11, AND 26) IN THE AMOUNT OF $190,252, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY OF CHULA VISTA AND BLUE SKIES LANDSCAPE MAINTENANCE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 3 (COMMUNITY FACILITIES DISTRICT VILLAGE 11, PHASE 3) IN THE AMOUNT OF $193,413, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT Department: Public Works Department Staff Recommendation: Council adopt the resolutions. ITEMS REMOVED FROM THE CONSENT CALENDAR City of Chula Vista 2015 -05 -26 Agenda Packet Page 4 Printed on 512112015 Page 4 City Council PUBLIC COMMENTS Agenda Persons speaking during Public Comments may address the Council on within the Council's jurisdiction that is not listed as an item on the generally prohibits the Council from discussing or taking action on an y on the agenda, but, if appropriate, the Council may schedule the topic or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS 9. May 26, 2015 any subject matter agenda. State law issue not included for future discussion 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. 15 -0188 CONSIDERATION OF AN AMENDMENT TO CHULA VISTA'S PORTION OF THE 2014 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE AMENDMENT OF THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2014/2015 THROUGH 2018/2019 FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM, REDUCING THE STM383 CIP BUDGET BY $200,000 IN TRANSNET FUNDS AND APPROPRIATING THE EQUIVALENT AMOUNT TO STM361 ($125,000) AND STL394 ($75,000), AND PROVIDING THE CERTIFICATION AND INDEMNITY STATEMENTS NECESSARY TO OBTAIN TRANSNET FUNDS (4/5 VOTE REQUIRED) Department: Public Works Department Staff Recommendation: Council conduct the public hearing and adopt the resolution. City of Chula Vista 2015 -05 -26 Agenda Packet Page 5 Printed on 512112015 Page 5 City Council Agenda May 26, 2015 10. 15 -0206 CONSIDERATION OF AMENDMENTS TO THE CITY'S GENERAL PLAN AND THE OTAY RANCH GENERAL DEVELOPMENT PLAN, INCLUDING A NEW DEVELOPMENT AGREEMENT INVOLVING PORTIONS OF THE OTAY RANCH FREEWAY COMMERCIAL PLANNING AREA 12 (This item is continued from May 12, 2015.) A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSIDERING THE ADDENDUM (IS -12 -03) TO FEIR 02 -04; APPROVING AMENDMENTS TO THE CITY'S GENERAL PLAN AND THE OTAY RANCH GENERAL DEVELOPMENT PLAN TO REFLECT LAND USE AND POLICY CHANGES FOR APPROXIMATELY 35 ACRES WITHIN THE OTAY RANCH PLANNED COMMUNITY, INCLUDING ASSOCIATED TEXT, MAPS, AND TABLES B. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA, VILLAGE II TOWN CENTER, LLC, AND SUNRANCH CAPITAL PARTNERS, LLC, FOR THE FREEWAY COMMERCIAL NORTH PORTION OF OTAY RANCH PLANNING AREA 12 (FIRST READING) Department: Development Services Department Staff Recommendation: Council conduct the public hearing, adopt the resolution and place the ordinance on first reading. 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 2015 -05 -26 Agenda Packet Page 6 Printed on 512112015 Page 6 City Council Agenda May 26, 2015 11. 15 -0192 PRESENTATION OF THE CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 2015/2016 RESOLUTION OF THE CITY COUNCIL /SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY /HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2015/2016 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON THE BUDGET AND THEIR FINAL CONSIDERATION AND BUDGET ADOPTION Department: Finance Department Staff Recommendation: Council /Agency /Authority hear the presentation, provide comments and proposed changes. If Council is prepared to approve the budget, with or without modifications, as the City Council Proposed Budget, the City Council /Successor Agency /Housing Authority may adopt a resolution in accordance with the heading set forth above. 12. 15 -0215 REPORT ON THE CITY ARTS WORK PROGRAM Department: Economic Development Department Staff Recommendation: Council accept the report. CITY MANAGER'S REPORTS MAYOR'S REPORTS OF CHULA VISTA CULTURAL 13. 15 -0222 RATIFICATION OF APPOINTMENTS TO THE FOLLOWING BOARDS & COMMISSIONS: Gregory Hall, Board of Appeals And Advisors Jose R. Doria, Board of Appeals And Advisors Monica Allan, Commission on Aging Karen Ann Daniels, Cultural Arts Commission Timothy Demarco, Safety Commission Hugo Mora, Resource Conservation Commission COUNCILMEMBERS' COMMENTS City of Chula Vista 2015 -05 -26 Agenda Packet Page 7 Printed on 512112015 Page 7 City Council CLOSED SESSION Agenda May 26, 2015 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). 14. 15 -0205 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Name of case: Samuel Escalante, et al. v. City of Chula Vista, WCAB, Case Number ADJ9571086 ADJOURNMENT to the Regular City Council Meeting on June 2, 2015, at 5:00 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. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista Page 8 Printed on 512112015 2015 -05 -26 Agenda Packet Page 8 CITY OF CHULA VISTA File #: 15 -0221, Item #: A. City of Chula Vista Staff Report PRESENTATION OF A PROCLAMATION TO ASIAN AMERICAN PACIFIC ISLANDER DEMOCRATIC CLUB PRESIDENT MATTHEW YAGYAGAN, PROCLAIMING MAY 2015 AS ASIAN PACIFIC AMERICAN HERITAGE MONTH IN THE CITY OF CHULA VISTA City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 1 Printed on 5/21/2015 powered by LegistarT" Page 9 CITY OF CHUTA VISTA File #: 15 -0223, Item #: 1. City of Chula Vista Staff Report APPROVAL OF MINUTES OF APRIL 21, 23 AND MAY 5, 2015. RECOMMENDED ACTION Council approve the minutes. City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 1 Printed on 5/21/2015 powered by LegistarT" Page 10 City of Chula Vista Meeting Minutes - Draft Tuesday, April 21, 2015 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 SPECIAL MEETING OF THE HOUSING AUTHORITY MEETING JOINTLY WITH THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER A Special Meeting of the Housing Authority meeting jointly with the City Council was called to order at 5:04 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Councilmember Aguilar, Deputy Mayor Bensoussan, Councilmember McCann and Councilmember Miesen Absent: Mayor Salas Also Present: City Manager Halbert, City Attorney Googins, City Clerk Norris, and Deputy City Clerk Kansas Deputy Mayor Bensoussan 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 Councilmember McCann led the Pledge of Allegiance. SPECIAL ORDERS OF THE DAY A. 15 -0094 PRESENTATION OF A PROCLAMATION TO THE CITY'S CLEAN TEAM MEMBERS PROCLAIMING APRIL 2015 AS EARTH MONTH IN THE CITY OF CHULA VISTA Deputy Mayor Bensoussan read the proclamation and Councilmember Miesen presented it to the "City's Clean Team." B. 15 -0139 PRESENTATION OF A PROCLAMATION TO NORMAN PARK SENIOR CENTER'S CLUB PRESIDENT SUSAN ALVAREZ PROCLAIMING MAY 2015 AS OLDER AMERICAN MONTH IN THE CITY OF CHULA VISTA Deputy Mayor Bensoussan read the proclamation and Councilmember Aguilar presented it to Ms. Alvarez. C. 15 -0148 PRESENTATION OF A PROCLAMATION TO CALIFORNIA NATIVE PLANT SOCIETY- SAN DIEGO'S OUTREACH CHAIR BETSY CORY PROCLAIMING THE THIRD WEEK OF APRIL AS NATIVE PLANT WEEK IN THE CITY OF CHULA VISTA Deputy Mayor Bensoussan read the proclamation and Councilmember Miesen presented it to Ms. Cory. City of Chula Vista Page 1 2015 -05 -26 Agenda Packet Page 11 City Council Meeting Minutes - Draft April 21, 2015 D. 15 -0149 REUSE & REPAIR: ONE PERSON'S TRASH IS ANOTHER PERSON'S TREASURE PRESENTATION BY RECYCLING SPECIALIST II MANUEL MEDRANO, SR. GRAPHIC DESIGNER KIM SCHANZ AND WEBMASTER NORMA FRANK Recycling Specialist Medrano, Sr. Graphic Designer Schanz and Webmaster Frank, along with her daughter, Nicolette Frank, presented "Crap to Fab." E. 15 -0164 PRESENTATION BY SANDAG SENIOR REGIONAL PLANNER CAROLINA I. GREGOR REGARDING SAN DIEGO FORWARD: THE REGIONAL PLAN Carolina Gregor, Senior Regional Planner, representing SANDAG, gave a presentation on San Diego's regional plan. F. 15 -0171 PRESENTATION RECOGNIZING THE SAN DIEGO LAW LIBRARY AND PROCLAIMING MAY 1, 2015 AS LAW DAY IN THE CITY OF CHULA VISTA City Attorney Googins spoke regarding Law Day. Deputy Mayor Bensoussan read the proclamation and presented it to City Attorney Googins. G. 15 -0163 PRESENTATION OF A PROCLAMATION TO ARMIDA MARTINEZ, GOLD STAR MOTHER OF SERGEANT MICHAEL MARTINEZ (KIA) PROCLAIMING MONDAY, MAY 4, 2015 AS REMEMBERING OUR FALLEN DAY IN THE CITY OF CHULA VISTA Deputy Mayor Bensoussan read the proclamation and Councilmember McCann presented it to Armida Martinez, mother of fallen Sergeant, Michael Martinez. CONSENT CALENDAR (Items 1 - 5) Item 5 was removed from the Consent Calendar at the request of a member of the public. 1. 15 -0160 WRITTEN COMMUNICATIONS Letter of resignation from Ritchie Adair, Safety Commission. Recommended Action: Council accept the resignation. 2. 15 -0167 ORDINANCE NO. 3340 OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 2.52 TO ADJUST THE CAMPAIGN CONTRIBUTION LIMIT FOR ANY ELECTION HELD ON OR AFTER JANUARY 1, 2016 (SECOND READING AND ADOPTION) City of Chula Vista Recommended Action: Council adopt the ordinance. Page 2 2015 -05 -26 Agenda Packet Page 12 City Council Meeting Minutes - Draft April 21, 2015 3. 15 -0168 A. ORDINANCE NO. 3341 OF THE CITY OF CHULA VISTA ADOPTING AMENDMENTS TO THE URBAN CORE SPECIFIC PLAN TO: 1) REZONE CERTAIN APARTMENT RESIDENTIAL (R -3) ZONED PARCELS AND CERTAIN COMMERCIAL ZONED PARCELS FOR CONSISTENCY WITHIN THEIR UCSP SUBDISTRICT AREA EXCLUDING THE FOLLOWING SUBDISTRICTS: V -1; V -2; V -3; UC -12; AND UC -14; 2) REMOVE THE MINIMUM FLOOR AREA RATIO IN CERTAIN SUBDISTRICTS; 3) REMOVE LOT COVERAGE AS A MANDATORY DEVELOPMENT STANDARD; AND 4) MAKE MINOR MODIFICATIONS TO ENSURE CONSISTENCY WITH CITY POLICIES, PROCEDURES, AND PROCESSES (SECOND READING AND ADOPTION) B. ORDINANCE NO. 3342 OF THE CITY OF CHULA VISTA ADOPTING AMENDMENTS TO THE URBAN CORE SPECIFIC PLAN TO: 1) REZONE CERTAIN APARTMENT RESIDENTIAL (R -3) ZONED PARCELS AND CERTAIN COMMERCIAL ZONED PARCELS FOR CONSISTENCY WITHIN THEIR UCSP AREA; 2) REMOVE THE MINIMUM FLOOR AREA RATIO IN CERTAIN SUBDISTRICTS; 3) REMOVE LOT COVERAGE AS A MANDATORY DEVELOPMENT STANDARD; AND 4) MAKE MINOR MODIFICATIONS TO ENSURE CONSISTENCY WITH CITY POLICIES, PROCEDURES, AND PROCESSES (SECOND READING AND ADOPTION) C. ORDINANCE NO. 3343 OF THE CITY OF CHULA VISTA ADOPTING AMENDMENTS TO THE URBAN CORE SPECIFIC PLAN LAND USE MATRIX TO ALLOW CERTAIN DELETIONS AND ADDITIONS OF LAND USES AND PERMIT PROCESSES (SECOND READING AND ADOPTION) Recommended Action: Council adopt the ordinances. 4. 15 -0169 ORDINANCE NO. 3344 OF THE CITY OF CHULA VISTA ADDING CHAPTER 3.56 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO DEVELOPMENT IMPACT FEES IN WESTERN CHULA VISTA (SECOND READING AND ADOPTION) Recommended Action: Council adopt the ordinance. Item 5 was removed from the Consent Calendar. Approval of the Consent Calendar ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, to approve staff's recommendations on Consent Calendar Items 1, 2 and 4, headings read, text waived. The motion carried by the following vote: Yes: 4 - Aguilar, Bensoussan, McCann and Miesen No: 0 Abstain: 0 City of Chula Vista Page 3 2015 -05 -26 Agenda Packet Page 13 City Council Meeting Minutes - Draft April 21, 2015 ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, to approve staff's recommendation on Consent Calendar Item 3, heading read, text waived. The motion carried by the following vote: Yes: 3 - Aguilar, Bensoussan and McCann No: 0 Abstain: 1 - Miesen ITEMS REMOVED FROM THE CONSENT CALENDAR 5. 15 -0016 RESOLUTION NO. 2015 -083 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA INITIATING AN APPLICATION FOR THE HISTORIC DESIGNATION OF THE ROHR INDUSTRIES DROP HAMMER David Danciu, Chula Vista resident, spoke in support of staffs recommendation. ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, that Resolution No. 2015 -083 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 4 - Aguilar, Bensoussan, McCann and Miesen No: 0 Abstain: 0 PUBLIC COMMENTS Kay Bodge, National City resident, volunteer at Norman Park Senior Center, thanked the Council for assistance received for repairs to the Center and asked for continued support. PUBLIC HEARINGS 6. 15 -0038 REVIEW OF THE CITY OF CHULA VISTA 2015 -2019 FIVE YEAR CONSOLIDATED PLAN AND 2015/2016 ANNUAL ACTION PLAN FOR THE U.S. HOUSING AND URBAN DEVELOPMENT FEDERAL GRANT PROGRAMS (COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS ACT AND EMERGENCY SOLUTIONS GRANT) Notice of 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, Project Coordinator Davis and Project Coordinator Dorado gave a presentation on the item. Deputy Mayor Bensoussan opened the public hearing. Chequita Falls, representing Meals -On- Wheels, spoke in support of staffs recommendation. There being no other members of the public who wished to speak, Deputy Mayor Bensoussan closed the public hearing. City of Chula Vista Page 4 2015 -05 -26 Agenda Packet Page 14 City Council Meeting Minutes - Draft April 21, 2015 ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, to accept the report, heading read, text waived. The motion carried by the following vote: Yes: 4 - Aguilar, Bensoussan, McCann and Miesen No: 0 Abstain: 0 7. 15 -0047 CONSIDERATION OF APPROVAL OF FINANCIAL ASSISTANCE FOR A PROPOSED 123 -UNIT SENIOR AND 87 -UNIT MULTIFAMILY AFFORDABLE HOUSING DEVELOPMENT WITHIN THE MILLENIA MASTER PLANNED COMMUNITY City of Chula Vista A. RESOLUTION NO. 2015 -084 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND NO. 2015 -008 OF THE HOUSING AUTHORITY, IN ITS CAPACITY AS THE SUCCESSOR HOUSING ENTITY WITHIN THE MEANING OF HEALTH AND SAFETY CODE SECTION 34176, [1] APPROVING TOTAL FINANCIAL ASSISTANCE OF $932,000; AND [2] AUTHORIZING THE CITY MANAGER TO EXECUTE RELATED LOAN DOCUMENTS BY AND BETWEEN THE CITY OF CHULA VISTA AND A TO -BE- FORMED LIMITED PARTNERSHIP FOR MILLENIA SENIOR AFFORDABLE APARTMENTS B. RESOLUTION NO. 2015 -085 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA [1] APPROVING DEFERRAL OF THE APPLICABLE PARKLAND ACQUISITION AND DEVELOPMENT, TRAFFIC SIGNAL, SALT CREEK SEWER BASIN, AND SEWER CAPACITY FEES, AND WAIVER OF THE RESIDENTIAL CONSTRUCTION TAX IN AN ESTIMATED AMOUNT OF $1,288,571; AND [2] AUTHORIZING THE CITY MANAGER TO EXECUTE FEE DEFERRAL AGREEMENTS AND RELATED SECURITY INSTRUMENTS BY AND BETWEEN THE CITY OF CHULA VISTA AND A TO -BE- FORMED LIMITED PARTNERSHIP FOR MILLENIA SENIOR AFFORDABLE APARTMENTS C. RESOLUTION NO. 2015 -086 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND NO. 2015 -009 OF THE HOUSING AUTHORITY, IN ITS CAPACITY AS THE SUCCESSOR HOUSING ENTITY WITHIN THE MEANING OF HEALTH AND SAFETY CODE SECTION 34176, [1] APPROVING TOTAL FINANCIAL ASSISTANCE OF $2,068,000; AND [2] AUTHORIZING THE CITY MANAGER TO EXECUTE RELATED LOAN DOCUMENTS BY AND BETWEEN THE CITY OF CHULA VISTA AND A TO -BE- FORMED LIMITED PARTNERSHIP FOR MILLENIA MULTIFAMILY AFFORDABLE APARTMENTS Page 5 2015 -05 -26 Agenda Packet Page 15 City Council Meeting Minutes - Draft April 21, 2015 D. RESOLUTION NO. 2015 -087 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA [1] APPROVING DEFERRAL OF THE APPLICABLE PARKLAND ACQUISITION AND DEVELOPMENT FEE, TRAFFIC SIGNAL, SALT CREEK SEWER BASIN, AND SEWER CAPACITY FEES, AND WAIVER OF THE RESIDENTIAL CONSTRUCTION TAX IN THE TOTAL ESTIMATED AMOUNT OF $911,429; AND [2] AUTHORIZING THE CITY MANAGER TO EXECUTE FEE DEFERRAL AGREEMENTS AND RELATED SECURITY INSTRUMENTS BY AND BETWEEN THE CITY OF CHULA VISTA AND A TO -BE- FORMED LIMITED PARTNERSHIP FOR MILLENIA MULTIFAMILY AFFORDABLE APARTMENTS E. RESOLUTION NO. 2015 -088 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE EASTERN URBAN CENTER AFFORDABLE HOUSING PROGRAM TO FACILITATE THE DEVELOPMENT OF LOW- AND MODERATE - INCOME HOUSING F. RESOLUTION NO. 2015 -089 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE AGREEMENT REGARDING CONSTRUCTION OF PARKS IN A PORTION OF OTAY RANCH EASTERN URBAN CENTER Councilmember Miesen stated he would recuse himself from participation on the item based on attorney advice due to a potential financial - related conflict of interest as a result of his position with Republic Services. He left the dais during discussion and voting on the item. Housing Manager Hines provided an overview of the benefits of the proposed project and staff's recommended actions. Deputy Mayor Bensoussan opened public hearing. Walter Heiberg, representing Chelsea Investment Corporation, spoke in support of staffs recommendation. There being no other members of the public who wished to speak, Deputy Mayor Bensoussan closed public hearing. Councilmember Aguilar questioned the property taxes. Housing Manager Hines stated that it was tax exempt. Todd Galarneau, applicant, representing Millenia Real Estate Group, spoke in support of staffs recommendation and presented information on the parking. At the request of Councilmember Aguilar, there was consensus of the Council to amend resolutions B and D to include a "be it further resolved" clause following the first 'be it resolved clause" to indicate specific required findings. Deputy Mayor Bensoussan recessed the meeting at 7:43 p.m City of Chula Vista Page 6 2015 -05 -26 Agenda Packet Page 16 City Council Meeting Minutes - Draft April 21, 2015 ACTION: A motion was made by Councilmember McCann, seconded by Deputy Mayor Bensoussan, heading read, text waived. The motion carried as amended for resolutions B and D by the following vote: Yes: 3 - Aguilar, Bensoussan and McCann No: 0 Abstain: 1 - Miesen The Council reconvened at 7:49 p.m., all members present, except Mayor Salas. ACTION ITEMS 8. 15 -0170 PRESENTATION ON THE RECENT STATE EMERGENCY DROUGHT ORDER AND THE CITY'S CURRENT AND FUTURE ACTIONS IN RESPONSE Public Works Director Hopkins introduced Environmental Resource Manager Reed who provided an update on the drought conditions and the next steps the City was taking to mitigate the drought effects. Environmental Resource Manager Reed stated that staff would return with a resolution to direct certain measures as well as an ordinance to amend the existing conservation regulations. He also stated that the Interagency Water Task Force would be reinstituted. Council discussion ensued. Staff responded to questions from the Councilmembers. 9. 15 -0131 CONSIDERATION OF GRANTING EASEMENTS FOR WELL SITES AND APPURTENANCES TO SWEETWATER AUTHORITY A. RESOLUTION NO. 2015 -090 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING EASEMENTS FOR WELL SITES AND APPURTENANCES TO SWEETWATER AUTHORITY AS NECESSARY FOR THE EXPANSION OF THE RICHARD A. REYNOLDS DESALINATION FACILITY B. RESOLUTION NO. 2015 -091 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING AN EASEMENT FOR ELECTRICAL AND COMMUNICATIONS FACILITIES NECESSARY FOR THE OPERATION OF A SWEETWATER AUTHORITY WELL AT FRIENDSHIP PARK Councilmember McCann stated he would be abstaining from voting on Item 9 due to a potential property- related conflict of interest. Public Works Director Hopkins introduced Real Property Manager Ryals and Ron Moser, Director of Engineering, representing Sweetwater Authority, who presented information on the item. Mr. Moser answered questions from Councilmembers. City of Chula Vista ACTION: A motion was made by Councilmember Miesen, seconded by Councilmember Aguilar, to adopted Resolution Nos. 2015 -090 and 2015 -091, headings read, text waived. The motion carried by the following vote: Yes: 3 - Aguilar, Bensoussan and Miesen No: 0 Abstain: 1 - McCann Page 7 2015 -05 -26 Agenda Packet Page 17 City Council Meeting Minutes - Draft April 21, 2015 CITY MANAGER'S REPORTS There were none. MAYOR'S REPORTS Deputy Mayor Bensoussan announced the Library Foundation's upcoming food and wine fundraiser as well as the Chula Vista Garden Club's tree planting on April 24, 2015 in honor of Arbor Day. Councilmember McCann returned to the dais. COUNCILMEMBERS' COMMENTS Councilmember McCann reported on his recent trip to the Midway Museum with citizens who tied yellow ribbons to memorialize Vietnam Veterans. He encouraged people to attend the library fundraiser, and congratulated Denny's, the newest business that opened at Winding Walk. Councilmember Miesen announced that on Saturday, April 25, 2015, Otay Ranch Town Center Eastlake Education Foundation would be holding its annual Cycle and Walk Day, along with the YMCA Healthy Kids Day. He also stated that City staff would be present at an Earth Day event. City Attorney Googins announced the Brown Act & Ethics Training which would be held on May 14, 2015, at 5:00 p.m. in the Council Chambers, and that Board & Commission members would be invited. He also announced that the Districting Commission would meet on April 24, 2015 at 6:00 p.m. and April 25, 2015 at 10:00 a.m. ADJOURNMENT At 8:42 p.m., Deputy Mayor Bensoussan adjourned the meeting to the City Council /Planning Commission /Growth Management Oversight Commission Workshop on April 23, 2015, at 6:00 p.m., in the Council Chambers, and thence to the Regular City Council Meeting on May 5, 2015, at 5:00 p.m., in the Council Chambers. City of Chula Vista Page 8 Sheree Kansas, Deputy City Clerk 2015 -05 -26 Agenda Packet Page 18 City of Chula Vista Meeting Minutes - Draft Thursday, April 23, 2015 6:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 CITY COUNCIL WORKSHOP Special Meeting of the City Council, the Planning Commission and the Growth Management Oversight Commission of the City of Chula Vista CALL TO ORDER Special Meetings of the City Council, Planning Commission and the Growth Management Oversight Commission of the City of Chula Vista were called to order at 6:04 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL - CITY COUNCIL Present: Councilmember Aguilar, Deputy Mayor Bensoussan, Councilmember McCann, Councilmember Miesen and Mayor Salas ROLL CALL - PLANNING COMMISSION Present: Commissioners Anaya, Fragomeno, Fuentes, Gutierrez, Livag, Nava (arrived at 6:08 p.m.) and Chair Calvo ROLL CALL - GROWTH MANAGEMENT OVERSIGHT COMMISSION Present: Commissioners Alatorre, Lengyel, Livag, Mosolgo, Rosales and Chair Torres Absent. Commissioners Bunker and Danciu Also Present. City Manager Halbert, Deputy City Attorney Shirey, City Clerk Norris and Deputy City Clerk Kansas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Councilmember McCann led the Pledge of Allegiance. WORKSHOP 1. 15 -0114 REVIEW AND CONSIDERATION OF THE GROWTH MANAGEMENT OVERSIGHT COMMISSION'S (GMOC) 2015 ANNUAL REPORT City of Chula Vista A. RESOLUTION NO. PCM -14 -11 OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA ACCEPTING THE 2015 GMOC ANNUAL REPORT, AND RECOMMENDING ACCEPTANCE BY THE CITY COUNCIL Page 1 2015 -05 -26 Agenda Packet Page 19 City Council Meeting Minutes - Draft April 23, 2015 B. RESOLUTION NO. 2015 -092 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE 2015 GMOC ANNUAL REPORT, AND DIRECTING THE CITY MANAGER TO UNDERTAKE ACTIONS NECESSARY TO IMPLEMENT REPORT RECOMMENDATIONS AS PRESENTED IN THE STAFF RESPONSES AND PROPOSED IMPLEMENTING ACTIONS SUMMARY City Manager Halbert introduced Associate Planner Vander Bie to present the item. Growth Management Oversight Commission Chair Torres reported non - compliant threshold standards for the following areas and provided the Commission's recommendations. Associate Planner Vander Bie provided staff responses to each item. - Library. Library Director Waznis spoke regarding increasing library services, perhaps building a larger facility with the Millenia development to serve both Rancho del Rey and Millenia areas. - Police. -- Priority 1 and 2. Chair Torres stated that even with the threshold changes, Priority 2 would be out of compliance. Police Captain Turner spoke regarding the Police Officer staffing levels. He also stated that the false alarm ordinance amendment had reduced the number of responses required and he expected an improvement next year. - Traffic. Principal Civil Engineer Rivera provided information on the Palomar on /off ramp that should be completed in August. - Fire /Emergency Medical Service. Fire Chief Geering spoke regarding goals and objectives to improve response times and patient outcomes. He also provided information on future plans for stations on the Bayfront, Millenia and Village 8. GMOC Chair Torres stated that pipe maintenance should be made a priority. Director of Public Works Hopkins provided comments. GMOC Commissioner Livag encouraged others to serve on the GMOC. GMOC Chair Torres reported compliant threshold standards for the following areas and provided the Commission's recommendations. Associate Planner Vander Bie provided staff responses to each item. - Parks & Recreation - Drainage - Schools - Sewer - Air Quality - Water Mayor Salas acknowledged that even though some items are out of compliance, the gap is closing. ACTION: A motion was made by Chair Calvo, seconded by Commissioner Anaya, heading read, text waived. The motion carried to adopt Resolution No. PCM -14 -11 by the following vote: Yes: 7 - Anaya, Fragomeno, Fuentes, Gutierrez, Livag, Nava and Calvo No: 0 Abstain: 0 ACTION: A motion was made by Deputy Mayor Bensoussan, seconded by Councilmember McCann, that Resolution No. 2015 -092 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 5 - Aguilar, Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 City of Chula Vista Page 2 2015 -05 -26 Agenda Packet Page 20 City Council Meeting Minutes - Draft April 23, 2015 ADJOURNMENT At 7:38 p.m. Mayor Salas adjourned the meeting. City of Chula Vista Page 3 Sheree Kansas, Deputy City Clerk 2015 -05 -26 Agenda Packet Page 21 City of Chula Vista Meeting Minutes - Draft Tuesday, May 5, 2015 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL CALL TO ORDER A Regular Meeting of the City Council of the City of Chula Vista was called to order at 5:00 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Councilmember Aguilar, Deputy Mayor Bensoussan, Councilmember McCann, Councilmember Miesen and Mayor Salas Also Present. City Manager Halbert, Senior Assistant City Attorney Miesfeld, Assistant City Clerk Bigelow, and Deputy City Clerk Kansas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Councilmember Miesen led the Pledge of Allegiance. SPECIAL ORDERS OF THE DAY A. 15 -0117 PRESENTATION OF A PROCLAMATION TO SANDAG MARKETING COMMUNICATIONS MANAGER ELIZABETH COX PROCLAIMING MAY 2015 AS NATIONAL BIKE MONTH IN THE CITY OF CHULA VISTA Mayor Salas read the proclamation and Deputy Mayor Bensoussan presented it to SANDAG Marketing Communications Manager Elizabeth Cox. Ms. Cox provided information about bike month and SANDAG's programs to encourage bicycle riding. B. 15 -0127 PRESENTATION OF THE 2015 CLEAN CHAMPION AWARDS BY THE CITY'S RESOURCE CONSERVATION COMMISSION Resource Conservation Commission Chair Kappes and members of the Commission presented the 2015 CLEAN Champion awards to: Oscar Romo, Resident Category; Bonita Learning Academy, Business Category, Garden Club of Chula Vista, Organization Category; Miguel Angel Aldrete, Youth Category, and Public Works Parks Division, Employee Category. C. 15 -0141 PRESENTATION OF A PROCLAMATION TO DIRECTOR OF RECREATION KRISTI MCCLURE HUCKABY, PRINCIPAL RECREATION MANAGER TIM FARMER AND U.S. OLYMPIC TRAINING CENTER EXECUTIVE DIRECTOR TRACY LAMB PROCLAIMING MAY 16, 2015 AS KIDS TO PARKS DAY IN THE CITY OF CHULA VISTA Mayor Salas read the proclamation and Deputy Mayor Bensoussan presented it to Recreation Director McClure Huckaby, Principal Recreation Manager Farmer, and U.S. Olympic Training Center Executive Director Tracy Lamb. City of Chula Vista Page 1 2015 -05 -26 Agenda Packet Page 22 City Council Meeting Minutes - Draft May 5, 2015 D. 15 -0142 PRESENTATION OF A PROCLAMATION TO DIRECTOR OF RECREATION KRISTI MCCLURE HUCKABY, FIRE CHIEF JIM LEERING, FIRE CAPTAIN MIKE FILSON AND AQUATIC SUPERVISOR ELIZABETH KOVAR PROCLAIMING MAY 2015 AS DROWNING PREVENTION MONTH Mayor Sa /as read the proclamation and Councilmember Aguilar presented it to Director of Recreation McClure Huckaby, Fire Chief Geering, and Fire Captain Filson. E. 15 -0172 PRESENTATION OF A PROCLAMATION TO CHULA VISTA HIGH SCHOOL DIRECTOR OF CHORAL MUSIC TONY ATIENZA IN RECOGNITION OF THE MAIN ATTRACTION & SILHOUETTES VICTORY Mayor Sa /as read the proclamation and Councilmember Miesen presented it to Chula Vista High School Director of Choral Music Tony Atienza and the school's show choir. The choir performed A Salute to the Armed Forces. F. 15 -0184 PRESENTATION OF A PROCLAMATION TO ELKS LODGE 2011 PROCLAIMING MAY 1 THROUGH MAY 8, 2015 AS YOUTH WEEK IN THE CITY OF CHULA VISTA Mayor Sa /as read the proclamation and Councilmember McCann presented it to members of the Elks Lodge 2011. CONSENT CALENDAR (Items 1 - 6) Mayor Sa /as announced that a revision to the agreement for Item 3 had been distributed to the Council. 1. 15 -0181 WRITTEN COMMUNICATIONS Memorandum from Councilmember Aguilar requesting an excused absence from the April 2, 2015 City Council Workshop. Recommended Action: Council excuse the absence. 2. 15 -0125 RESOLUTION NO. 2015 -092 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AWARDING THE CONTRACT FOR THE "OXFORD STREET SEWER IMPROVEMENT, BETWEEN BROADWAY TO WEST END OF CUL -DE -SAC, IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP #SW266)" PROJECT TO PAL GENERAL ENGINEERING INC. IN THE AMOUNT OF $488,675; WAIVING CITY COUNCIL POLICY NO. 574 -01; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $73,300 City of Chula Vista Recommended Action: Council adopt the resolution. Page 2 2015 -05 -26 Agenda Packet Page 23 City Council Meeting Minutes - Draft May 5, 2015 3. 15 -0134 RESOLUTION NO. 2015 -093 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT, APPROVING AN AGREEMENT WITH THE INVESTMENT BANKING FIRM OF STIFEL NICOLAUS & CO., INC. TO PROVIDE BOND UNDERWRITING SERVICES FOR REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDED DEBT AND CERTIFICATES OF PARTICIPATION BONDED DEBT, IF DEEMED ECONOMICALLY FEASIBLE Recommended Action: Council adopt the resolution. 4. 15 -0153 RESOLUTION NO. 2015 -094 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 2015 BUDGET TO APPROPRIATE $7,634 IN UNANTICIPATED REVENUE FROM THE METROPOLITAN WATER DISTRICT'S LANDSCAPE WATER CONSERVATION REBATE PROGRAM TO THE PUBLIC WORKS PARKS DIVISION BUDGET (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolution. 5. 15 -0154 RESOLUTION NO. 2015 -095 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSENTING TO THE TERMINATION OF THE SAN DIEGO COUNTY CITIES JOINT POWERS AGREEMENT FOR RISK MANAGEMENT SERVICES AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE AUTHORITY FOR MUNICIPAL ENTITIES (SANDPIPA) EFFECTIVE JULY 1, 2016 AND ASSOCIATED AMENDMENTS TO THE JOINT POWERS AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE ANY DOCUMENTS REQUIRED TO CONFIRM AND IMPLEMENT THESE ACTIONS Recommended Action: Council adopt the resolution. 6. 15 -0159 RESOLUTION NO. 2015 -096 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING GRANT REQUIREMENTS OF SANDAG TO IMPLEMENT A MULTI -YEAR COASTAL CACTUS WREN HABITAT RESTORATION PROGRAM WITHIN THE CHULA VISTA OTAY RANCH PRESERVE MANAGEMENT AREA, AUTHORIZING ACCEPTANCE OF THE GRANT FUNDING SHOULD IT BE AWARDED FROM SANDAL, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH SANDAG City of Chula Vista Recommended Action: Council adopt the resolution. Page 3 2015 -05 -26 Agenda Packet Page 24 City Council Meeting Minutes - Draft May 5, 2015 Approval of the Consent Calendar ACTION: A motion was made by Councilmember McCann, seconded by Deputy Mayor Bensoussan, to approve staff's recommendations on the above Consent Calendar items, headings read, text waived. The motion carried by the following vote: Yes: 5 - Aguilar, Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS Penny Vaughn, Chula Vista resident, thanked Councilmember Aguilar for the public outreach event at The Hub on May 4, 2015. PUBLIC HEARINGS 7. 15 -0081 CONSIDERATION OF AMENDING CHAPTER 18 (MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE RESOLUTION NO. 2015 -097 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING THE ADMINISTRATIVE FEE FOR RENT CONTROL SERVICES AT $40 FOR FISCAL -YEAR 2016 IN CHAPTER 18 (MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE 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. Senior Project Coordinator Kurz and Housing Manager Hines gave a presentation on the item. Mayor Salas opened the public hearing. Penny Vaughn, Chula Vista resident, submitted a speaker slip but declined to speak. There being no other members of the public who wished to speak, Mayor Salas closed the public hearing. City of Chula Vista ACTION: A motion was made by Deputy Mayor Bensoussan, seconded by Councilmember Aguilar, that Resolution No. 2015 -097 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 5 - Aguilar, Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 Page 4 2015 -05 -26 Agenda Packet Page 25 City Council Meeting Minutes - Draft May 5, 2015 ACTION ITEMS 8. 15 -0006 CONSIDERATION OF APPROVING A FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC RESOLUTION NO. 2015 -098 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT IMPACT FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC FOR APPROXIMATELY $1.7 MILLION OF FEES IN CONNECTION WITH A 97 UNIT APARTMENT PROJECT ON MAIN STREET NEAR WALNUT DRIVE Councilmember Miesen stated he would abstain from voting on the item due to a potential finance - related conflict of interest. He left the dais during discussion and voting on the item. ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, that Resolution No. 2015 -098 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 4 - Aguilar, Bensoussan, McCann and Salas No: 0 Abstain: 1 - Miesen 9. 15 -0106 CONSIDERATION OF ADOPTING A SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY RESOLUTION NO. 2015 -099 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY Councilmember Miesen returned to the dais. ACTION: A motion was made by Deputy Mayor Bensoussan, seconded by Councilmember McCann, that Resolution No. 2015 -099 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 5 - Aguilar, Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 MAYOR'S REPORTS Mayor Salas wished everyone a happy Cinco de Mayo and provided information about the holiday. At the request of Mayor Salas, there was consensus of the Council to add an item to the next agenda to discuss the lawn area in front of City Hall. CITY MANAGER'S REPORTS City Manager Halbert provided an update on the Smart Cities program. City of Chula Vista Page 5 2015 -05 -26 Agenda Packet Page 26 City Council Meeting Minutes - Draft May 5, 2015 COUNCILMEMBERS' COMMENTS Deputy Mayor Bensoussan provided an update on the efforts to reinstate the City's Beautification Awards. She announced the upcoming Harbor Fest event on August 22, 2015. Councilmember McCann recognized the Friends of the Chula Vista Library and reported on their recent fundraiser. He provided information on the City's Fallen Heroes exhibit, which opened on May 4, 2015, and thanked the exhibit supporters. Mayor Salas expressed her condolences to the Jose Gomez family and adjourned the meeting in memory of Gabriel Roman Gomez. Adrian Gomez read a poem written by Gabriel. Mayor Salas announced that the Council would convene in closed session to discuss the item listed below. Councilmember Miesen stated he would abstain from discussion and voting on Item 10, since he had been appointed to the Council and the matter was related to the appointment process. At 6:34 p.m., the Council convened in Closed Session with all members present, except Councilmember Miesen. CLOSED SESSION Pursuant to Resolution No. 13706 and Council Policy No. 346 -03, Official Minutes and records of action taken during Closed Sessions are maintained by the City Attorney. 10. 15 -0185 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Name of case: Chris Shilling, et al. v. City of Chula Vista, et al., San Diego Superior Court, Case No. 37- 2015 - 00006097- CU- MC -CTL ACTION: No reportable action. ADJOURNMENT At 7:10 p.m., Mayor Salas adjourned the meeting to the Regular City Council Meeting on May 12, 2015, at 5:00 p.m., in the Council Chambers. City of Chula Vista Page 6 Kerry K. Bigelow, Assistant City Clerk 2015 -05 -26 Agenda Packet Page 27 CITY OF CHUTA VISTA File #: 15 -0217, Item #: 2. WRITTEN COMMUNICATIONS City of Chula Vista Staff Report Memorandum from Councilmember Miesen requesting an excused absence from the May 12, 2015 City Council meeting. RECOMMENDED ACTION Council excuse the absence. City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 1 Printed on 5/21/2015 powered by LegistarT" Page 28 CITY 4F HUIA Date: TO: FROM: SUBJECT: Mayor and City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 (619) 691 -5044 (619) 476 -5379 FAX MEMORANDUM May 19, 2015 Honorable Mayor and Councilmembers Steve Miesen, Councilmember Request for Excused Absence respectfully request an excused absence from the City Council meeting of Tuesday, May 12, 2015 due to a family emergency. 2015 -05 -26 Agenda Packet Page 29 CITY OF CHULA VISTA File #: 15 -0197, Item #: 3. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT AND APPROVING AN AGREEMENT WITH NBS GOVERNMENT FINANCE GROUP IN THE AMOUNT OF $96,000 TO PERFORM DISCLOSURE SERVICES IN PREPARATION FOR THE REFUNDING OF SEVERAL EXISTING COMMUNITY FACILITIES DISTRICTS RECOMMENDED ACTION Council adopt the resolution. SUMMARY The City has formed many Community Facilities Districts (CFD) and Assessment Districts (AD) as financing mechanisms to fund infrastructure projects throughout the City. Typically these bonded districts pay for projects such as street improvements, parks, traffic signals, and drainage. Market interest rates for municipal bonds have remained low for quite some time which allows the City to consider refunding several existing CFD's. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that approval of an agreement for disclosure services is not a "Project" as defined under Section 15378 (b)(2) of the State CEQA Guidelines because approval of the contract is a continuing administration activity; 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 In the fall of 2014, engineering staff followed Chula Vista Municipal Code Section 2.56.110 in the consultant selection process for annual special tax district administration services. A comprehensive Request For Proposal (RFP) was prepared and ultimately the Selection Committee members recommended and City Council approved a three year agreement with Willdan Financial Services. Willdan is currently in the process of preparing for the annual special tax levy. While NBS Government Finance Group was not awarded a new consulting agreement for annual special tax administration services, NBS has been the City's special tax administrator for over ten years. As a result, NBS is uniquely qualified to assist the City with the refunding of nine special tax districts because of their experience and familiarity with the Districts being considered for refunding. City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 3 Printed on 5/21/2015 powered by LegistarT" Page 30 File #: 15 -0197, Item #: 3. Staff recommends the waiver of the competitive bidding requirements pursuant to Municipal Code Section 2.56.070 (13)(3) as the City's interests would be materially better served by proceeding with the bond refunding to capitalize on current market interest rates The consideration for refunding of bonds is entirely dependent upon economic conditions and the interest rate market as a whole. Interest rates remain historically low, but it is estimated that interest rates will begin to rise later this year in anticipation of the Fed raising the overnight borrowing rate. In order to expedite the preparation of bond documents, staff selected NBS to prepare necessary disclosure tables which will be included in the final bond documents for the refunded bonds. NBS will provide certain disclosure data for the bond documents including the Official Statement. Such data shall include parcel data, assessed value data, value -to -lien information, Special Tax classification information and other relevant data necessary for proper disclosure to potential investors. Consultant will review all documents prepared and provided by bond or other legal counsel and the financial advisor including the Official Statement, the Bond Indenture and the Continuing Disclosure Agreements. Consultant will process the data and provide the following: • Current and historical special tax delinquencies. This will include the amounts delinquent and any penalty and interest penalty accrued. • Reports of Assessed Valuation and Property Ownership. Examples of available reports are, a) Top 10 property owners, b) Value to Lien Distributions, c) Historical Assessed Value. • Reports of Land Use and Special Taxes. Examples of available reports are a) Summary of Special Taxes by Land Use, b) Summary of Most Recent Fiscal Year Special Tax Levy. Based on current estimates, the savings to each of the Community Facilities Districts will exceed 5% Net Present Value savings in accordance with City policy. 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 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 refunding of the CFD's supports the Economic Vitality goal as it reduces the property taxes of thousands of residents within the City. CURRENT YEAR FISCAL IMPACT The total cost of the Consultant's work will be paid directly out of the Cost of Issuance account of the refunded bonds. The cost per district is approximately $10,000 for the related work required. This transaction does not affect the current fiscal year operating budget. City of Chula Vista 2015 -05 -26 Agenda Packet Page 2 of 3 Printed on 5/21/2015 powered by LegistarT" Page 31 File #: 15 -0197, Item #: 3. ONGOING FISCAL IMPACT The approval of this item will not affect future year budgets. ATTACHMENTS Agreement Staff Contact: David Bilby, Finance & Purchasing Manager, dbilbyQ- chula vista ca..gov < mailto :dbilby(a�chula vista ca.gov >, (619) 409 -3818 City of Chula Vista 2015 -05 -26 Agenda Packet Page 3 of 3 Printed on 5/21/2015 powered by LegistarT" Page 32 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 / nx , , ,, ') / 'GfW IC' Go gins - �ity Attorney Dated: ; AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NBS GOVERNMENT FINANCE GROUP TO PERFORM DISCLOSURE SERVICES FOR MULTIPLE CFD REFUNDINGS 2015 -05 -26 Agenda Packet Page 33 Agreement between City of Chula Vista and NBS Government Finance Group, To Perform Disclosure Services for Multiple CFD Refundings This agreement (Agreement), effective May 19, 2015, is between the City - related entity whose name and business form is indicated on Exhibit A, Paragraph 2, (City), and the entity whose name, business form, place of business and telephone numbers are indicated on Exhibit A, Paragraphs 4 through 6, (Consultant), and is made with reference to the following facts: RECITALS WHEREAS, The City desires to obtain certain consulting services for Refunding Disclosure for Community Facilities District (CFD) No. 12 -1, CFD No. 2001 -1 Improvement Area B, CFD No. 13 -1, and CFD No. 07 -1, CFD No. 97 -3, CFD No. 99 -1, CFD No. 2000 -1, CFD No. 2001 -1 IA A, Reassessment District (RAD) No. 2005 -2; and WHEREAS, the City Council has approved the waiver of the competitive bidding requirements pursuant to Municipal Code Section 2.56.070 (13)(3) as the City's interests would be materially better served by proceeding with the bond refunding to capitalize on current market interest rates; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] 2015 -05 -26 Agenda Packet Page 34 OBLIGATORY PROVISIONS PAGES NOW, THEREFORE, for valuable consideration the City and Consultant do hereby mutually agree as follows: All of the Recitals above are incorporated into this Agreement by this reference. ARTICLE I. CONSULTANT'S OBLIGATIONS A. General 1. General Duties. Consultant shall perform all of the services described on Exhibit A, Paragraph 7 (General Duties). 2. Scope of Work and Schedule. In performing and delivering the General Duties, Consultant shall also perform the services, and deliver to City the "Deliverables" described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule," according to, and within the time frames set forth in Exhibit A, Paragraph 8, time being of the essence of this agreement. The General Duties and the work and Deliverables required in the Scope of Work and Schedule shall be referred to as the "Defined Services." Failure to complete the Defined Services by the times indicated does not, except at the option of the City, terminate this Agreement. a. Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. b. Additional Services. In addition to performing the Defined Services, City may require Consultant to perform additional consulting services related to the Defined Services (Additional Services), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 10(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 3. Standard of Care. The Consultant expressly warrants that the work to be performed pursuant to this Agreement, whether Defined Services or Additional Services, shall be performed in accordance with the standard of care ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. a. No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. 2015 -05 -26 Agenda Packet Page 35 B. Application of Laws. Should a federal or state law pre -empt a local law, or regulation, the Consultant must comply with the federal or state law and implementing regulations. No provision of this Agreement requires the Consultant to observe or enforce compliance with any provision, perform any other act, or do any other thing in contravention of federal, state, territorial, or local law, regulation, or ordinance. If compliance with any provision of this Agreement violates or would require the Consultant to violate any law, the Consultant agrees to notify City immediately in writing. Should this occur, the City and the Consultant agree that they will make appropriate arrangements to proceed with or, if necessary, amend or terminate this Agreement, or portions of it, expeditiously. Subcontractors. Consultant agrees to take appropriate measures necessary to ensure that all participants utilized by the Consultant to complete its obligations under this Agreement, such as subcontractors, comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local, affecting Project implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, the Consultant shall ensure that the subcontractor carries out the Consultant's responsibilities as set forth in this Agreement. C. Insurance General. Consultant must procure and maintain, during the period of performance of this Agreement, and for twelve months after completion, policies of insurance from insurance companies to protect against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under this Agreement and the results of that work by the Consultant, his agents, representatives, employees or subcontractors, and provide documentation of same prior to commencement of work. 2. Minimum Scope of Insurance. Coverage must be at least as broad as: a. CGL. Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001). b. Auto. Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). c. WC. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. d. E &O. Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. 3. Minimum Limits of Insurance. Consultant must maintain limits no less than those included in the table below: 2015 -05 -26 Agenda Packet Page 36 i. General Liability: $1,000,000 per occurrence for bodily injury, personal injury, (Including (including death), and property damage. If Commercial General operations, Liability insurance with a general aggregate limit is used, either products and the general aggregate limit must apply separately to this completed Project/location or the general aggregate limit must be twice the operations, as required occurrence limit. applicable) ii. Automobile $1,000,000 per accident for bodily injury, including death, and Liability: property damage. iii. Workers' Statutory Compensation $1,000,000 each accident Employer's $1,000,000 disease - policy limit Liability: $1,000,000 disease -each employee iv. Professional $1,000,000 each occurrence Liability or Errors & Omissions Liability: If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. 4. Deductibles and Self- Insured Retentions. Any deductibles or self - insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self - insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 5. Other Insurance Provisions. The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: Additional Insureds. City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to all policies of insurance, including those with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the Consultant's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products /Completed Operations coverage. 2015 -05 -26 Agenda Packet Page 37 b. Primary Insurance. The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self - insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the Consultant and in no way relieves the Consultant from its responsibility to provide insurance. c. Cancellation. The insurance policies required by this Agreement shall not be canceled by either party, except after thirty days' prior written notice to the City by certified mail, return receipt requested. The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives" shall be deleted from all certificates. d. Waiver of Subrogation. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against the City. 6. Claims Forms. If General Liability, Pollution and /or Asbestos Pollution Liability and /or Errors & Omissions coverage are written on a claims -made form: a. Retro Date. The "Retro Date" must be shown, and must be before the date of the Agreement or the beginning of the work required by the Agreement. b. Maintenance and Evidence. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the work required by the Agreement. c. Cancellation. If coverage is canceled or non - renewed, and not replaced with another claims -made policy form with a "Retro Date" prior to the effective date of the Agreement, the Consultant must purchase "extended reporting" coverage for a minimum of five years after completion of the work required by the Agreement. d. Copies. A copy of the claims reporting requirements must be submitted to the City for review. 7. Acceptability of Insurers. Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. 8. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by Section I.C. of this Agreement. 2015 -05 -26 Agenda Packet Page 38 The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the requirements of this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 9. Subcontractors. Consultant must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants is subject to all of the requirements included in these specifications. 10. Not a Limitation of Other Obligations. Insurance provisions under this Article shall not be construed to limit the Consultant's obligations under this Agreement, including Indemnity. 11. Additional Coverage. To the extent that Insurance coverage exceeds the minimums identified in section 3, recovery shall not be limited to the insurance minimums, but shall instead extend to the actual policy limits. D. Security for Performance 1. Performance Bond. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond "), then Consultant shall provide to the City a performance bond, in the amount indicated at Exhibit A, Paragraph 18, in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, htlp: / /www.fins.treas.gov /c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the Agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City. 2. Letter of Credit. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit "), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at its unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit," in Exhibit A, Paragraph 18. 2015 -05 -26 Agenda Packet Page 39 3. Other Security. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security "), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. E. Business License. Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. ARTICLE IL CITY OBLIGATIONS A. Consultation and Cooperation. City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule, and to provide direction and guidance to achieve the objectives of this Agreement. The City shall allow Consultant access to its office facilities, files and records, as deemed necessary and appropriate by the City, throughout the term of this Agreement. In addition, City agrees to provide the materials identified at Exhibit A, Paragraph 9, with the understanding that delay in the provision of those materials beyond thirty days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance. B. Compensation. 1. Following Receipt of Billing. Upon receipt of a properly prepared bill from Consultant, submitted to the City as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 11. 2. Supporting Information. Any billing submitted by Consultant shall contain sufficient information as to the propriety of the billing, including properly executed payrolls, time records, invoices, contracts, or vouchers describing in detail the nature of the charges to the Project in order to permit the City to evaluate that the amount due and payable is proper, and such billing shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment. 3. Exclusions. In determining the amount of the compensation City will exclude any cost: 1) incurred prior to the effective date of this Agreement; or 2) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of the Consultant, its agents, employees, or subcontractors. 2015 -05 -26 Agenda Packet Page 40 a. Errors and Omissions. In the event that the City Administrator determines that the Consultant's negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing in this paragraph is intended to limit City's rights under other provisions of this Agreement. 4. Payment Not Final Approval. The Consultant understands and agrees that payment to the Consultant for any Project cost does not constitute a City final decision about whether that cost is allowable and eligible for payment under the Project and does not constitute a waiver of any violation of Consultant of the terms of the Agreement. The Consultant acknowledges that City will not make a final determination about the eligibility of any cost until the final payment has been made on the Project or the results of an audit of the Project requested by the City has been completed, whichever occurs latest. If City determines that the Consultant is not entitled to receive any portion of the compensation due or paid, City will notify the Consultant in writing, stating its reasons. The Consultant agrees that Project closeout will not alter the Consultant's responsibility to return any funds due City as a result of later refunds, corrections, or other similar transactions; nor will Project closeout alter the right of City to disallow costs and recover funds provided for the Project on the basis of a later audit or other review. a. Consultant's Obligation to Pay. Upon notification to the Consultant that specific amounts are owed to City, whether for excess payments or disallowed costs, the Consultant agrees to remit to City promptly the amounts owed, including applicable interest. ARTICLE III. ETHICS A. Financial Interests of Consultant I. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC filer," Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. 2. No Participation in Decision. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently 2015 -05 -26 Agenda Packet Page 41 conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this Agreement. 4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney if Consultant learns of an economic interest of Consultant's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 6. Specific Warranties Against Economic Interests. Consultant warrants, represents and agrees that: a. Neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents (Consultant Associates) presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, (Prohibited Interest), other than as listed in Exhibit A, Paragraph 14. b. No promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. c. Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except with the written permission of City. d. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party that may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. IV. LIQUIDATED DAMAGES A. Application of Section. The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. 2015 -05 -26 Agenda Packet Page 42 1. Estimating Damages. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. 2. Amount of Penalty. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 (Liquidated Damages Rate). 3. Request for Extension of Time. If the performance of any act required of Consultant is directly prevented or delayed by reason of strikes, lockouts, labor disputes, unusual governmental delays, acts of God, fire, floods, epidemics, freight embargoes, or other causes beyond the reasonable control of the Consultant, as determined by the City, Consultant shall be excused from performing that act for the period of time equal to the period of time of the prevention or delay. In the event Consultant claims the existence of such a delay, the Consultant shall notify the City's Contract Administrator, or designee, in writing of that fact within ten calendar days after the beginning of any such claimed delay. Extensions of time will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. ARTICLE V. INDEMNIFICATION A. Defense, Indemnity, and Hold Harmless. 1. General Requirement. To the maximum extent allowed by law, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, agents and employees, from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorney's fees and actual costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Defined Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. 2. Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.5, as may be amended from time to time, the defense and indemnity 2015 -05 -26 Agenda Packet Page 43 obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 3. Costs of Defense and Award. Included in the obligations in Sections A.1 and A.2, above, is the Consultant's obligation to defend, at Consultant's own cost, expense and risk, any and all suits, actions or other legal proceedings, that may be brought or instituted against the City, its directors, officials, officers, employees, agents and /or volunteers, subject to the limitations in Sections A.I. and A.2. Subject to the limitations in Sections A.I. and A.2., Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents and /or volunteers, for any and all related legal expenses and costs incurred by each of them. 4. Insurance Proceeds. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, and /or volunteers. 5. Declarations. Consultant's obligations under Article V shall not be limited by any prior or subsequent declaration by the Consultant. 6. Enforcement Costs. Consultant agrees to pay any and all costs City incurs enforcing the indemnity and defense provisions set forth in Article V. 7. Survival. Consultant's obligations under Article V shall survive the termination of this Agreement. 8. No Alteration of Other Obligations. This Article V, shall in no way alter, affect or modify any of the Consultant's other obligations and duties under this Agreement. ARTICLE VI. TERMINATION OF AGREEMENT A. Termination for Cause. If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement and less any damages caused City by Consultant's breach, for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination. B. Termination of Agreement for Convenience of City. City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and 2015 -05 -26 Agenda Packet Page 44 other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement, for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth in this section. ARTICLE VII. RECORD RETENTION AND ACCESS A. Record Retention. During the course of the Project and for three (3) years following completion, the Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the Project as City may require. B. Access to Records of Consultant and Subcontractors. The Consultant agrees to permit, and require its subcontractors to permit City or its authorized representatives, upon request, to inspect all Project work, materials, payrolls, and other data, and to audit the books, records, and accounts of the Contractor and its subcontractors pertaining to the Project. C. Project Closeout. The Consultant agrees that Project closeout does not alter the reporting and record retention requirements of this Agreement. ARTICLE VIII. PROJECT COMPLETION, AUDIT, AND CLOSEOUT A. Project Completion. Within ninety (90) calendar days following Project completion or termination by City, Consultant agrees to submit a final certification of Project expenses and audit reports, as applicable. B. Audit of Consultants. Consultant agrees to perform financial and compliance audits the City may require. The Consultant also agrees to obtain any other audits required by City. Consultant agrees that Project closeout will not alter Consultant's audit responsibilities. Audit costs are allowable Project costs. C. Project Closeout. Project closeout occurs when City notifies the Consultant that City has closed the Project, and either forwards the final payment or acknowledges that the Consultant has remitted the proper refund. The Consultant agrees that Project closeout by City does not invalidate any continuing requirements imposed by the Agreement or any unmet requirements set forth in a written notification from City ARTICLE IX. MISCELLANEOUS PROVISIONS A. Assignability. The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. 2015 -05 -26 Agenda Packet Page 45 1. Limited Consent. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified as "Permitted Subconsultants." B. Ownership, Publication, Reproduction and Use of Material. All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. C. Independent Contractor. City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, independent contractors and shall not be deemed to be employees of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard to them. 1. Actions on Behalf of City. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever, as an agent or otherwise. Consultant shall have no authority, express or implied, to bind City or its members, agents, or employees, to any obligation whatsoever, unless expressly provided in this Agreement. 2. No Obligations to Third Parties. In connection with the Project, Consultant agrees and shall require that its agents, employees, subcontractors agree that City shall not be responsible for any obligations or liabilities to any third party, including its agents, employees, subcontractors, or other person or entity that is not a party to this Agreement. Notwithstanding that City may have concurred in or approved any solicitation, subagreement, or third party contract at any tier, City shall have no obligation or liability to any person or entity not a party to this Agreement. D. City's Responsibilities. The City shall furnish Consultant with any pertinent information that is available to City and applicable to the Services. The City shall designate a person to act with authority on its behalf in respect to the Services. The City shall promptly respond to Consultant's requests for reviews and approvals of its work, and to its requests for decisions related to the Services. City understands and agrees that Consultant is entitled to rely on all 2015 -05 -26 Agenda Packet Page 46 information, data and documents (collectively, "Information ") supplied to Consultant by City or any of its agents, contractors or proxies or obtained by Consultant from other usual and customary sources including other government sources or proxies as being accurate and correct and Consultant will have no obligation to confirm that such Information is correct and that Consultant will have no liability to City if such Information is not correct. E. Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement, against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. F. Administration of Contract. Each party designates the individuals (Contract Administrators) indicated on Exhibit A, Paragraph 12, as that party's contract administrator who is authorized by the party to represent it in the routine administration of this Agreement. G. Term. This Agreement shall terminate when the parties have complied with all executory provisions hereof. H. Statement of Costs. In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in the report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. I_ Consultant is Real Estate Broker and /or Salesman. If the box on Exhibit A, Paragraph 15 is marked, the Consultant and /or its principals is /are licensed with the State of California or some other state as a real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor its principals are licensed real estate brokers or salespersons. J. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement as the places of business for each of the designated parties. K. Integration. This Agreement, together with any other written document referred to or contemplated in it, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision of it may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. 2015 -05 -26 Agenda Packet Page 47 L. Capacity of Parties. Each signatory and party to this Agreement 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 necessary resolutions or other actions have been taken so as to enable it to enter into this Agreement. M. Governing LawNenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance under it, shall be the City of Chula Vista. (End of page. Next page is signature page.) 2015 -05 -26 Agenda Packet Page 48 Signature Page to Agreement between City of Chula Vista and NBS Government Finance Group, To Perform Disclosure Services for Multiple CFD Refundings IN WITNESS WHEREOF, City and Consultant have executed this Agreement, indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista am Attest: Donna Norris, City Clerk Approved as to form: Glen R. Googins, City Attorney Mary Casillas Salas, Mayor NBS Government Finance Group, By. Michael Rentner, Chief Executive Officer Exhibit List to Agreement: Exhibit A Page 16 Two Parry Agreement Between the City of Chula !Vista and NBS Government Finance Grouo to Perform Disclosure Services for Multiple CFD Refundings, 2015 -05 -26 Agenda Packet Page 49 K \Contracts \Chula Vista\NBS2PartyConsultantAgreement -Bilby Final.doc Exhibit A to Agreement between City of Chula Vista and NBS Government Finance Group 1. Effective Date: The Agreement shall take effect upon full execution of the Agreement, as of the effective date stated on page 1 of the Agreement. 2. City- Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) The Chula Vista Public Financing Authority, a ( ) The Chula Vista Industrial Development Authority, a ( ) Other: (City) 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant: NBS Government Finance Group 5. Business Form of Consultant: O Sole Proprietorship ( ) Partnership (X) Corporation a [insert business form] 6. Place of Business, Telephone and Fax Number of Consultant: 32605 Temecula Parkway, Suite 100, Temecula, CA 92592, Telephone: (951) 296 -1997, Fax (951) 296 -1998 7. General Duties: 2015 -05 -26 Agenda Packet Page 50 Perform Disclosure Services for CFD Refunding for CFD No. 12 -1, CFD No. 2001 -1 Improvement Area B, CFD No. 13 -1, and CFD No. 07 -1. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Consultant will provide certain disclosure data for the bond documents including the Official Statement. Such data shall include parcel data, assessed value data, value -to -lien information, Special Tax classification information and other relevant data necessary for proper disclosure to potential investors. Consultant will review all documents prepared and provided by bond or other legal counsel and the financial advisor including the Official Statement, the Bond Indenture and the Continuing Disclosure Agreements. Consultant will process the data and provide the following: • Current and historical special tax delinquencies. This will include the amounts delinquent and any penalty an interest penalty accrued. • Reports of Assessed Valuation and Property Ownership. Examples of available reports are, a) Top 10 property owners, b) Value to Lien Distributions, c) Historical Assessed Value. • Reports of Land Use and Special Taxes. Examples of available reports are a) Summary of Special Taxes by Land Use, b) Summary of Most Recent Fiscal Year Special Tax Levy. B. Date for Commencement of Consultant Services: ( X ) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Completion of Tables for CFD No. 12 -1. Deliverable No. 2: Completion of Tables for CFD No. 2001 -1 Imp. Area B. Deliverable No. 3: Completion of Tables for CFD No. 13 -1. Deliverable No. 4: Completion of Tables for CFD No. 07 -1. Deliverable No. 5: Completion of Tables for CFD No. 97 -3. Deliverable No. 6: Completion of Tables for CFD No. 99 -1. Deliverable No. 7: Completion of Tables for CFD No. 2000 -1. Deliverable No. 8: Completion of Tables for CFD No. 2001 -1 1A A. Deliverable No. 9: Completion of Tables for RAD No. 2005 -2. Deliverable No. 10: Completion of Reassessment Report. D. Date for completion of all Consultant services: September 30, 2015. 2015 -05 -26 Agenda Packet Page 51 9. Materials Required to be Supplied by City to Consultant: 10. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $84,500, payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee O 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Consultant shall have represented in writing that said percentage of completion of the phase has been performed by the Consultant. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. Upon receipt of an invoice for completion of each deliverable identified in section 8.C. the consultant will be paid $7,500 per District and $17,000 for the completion of the Reassessment Report. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase 1. Fee for Said Phase 2015 -05 -26 Agenda Packet Page 52 2. $ 3. $ O 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 18 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Consultant shall have represented in writing that said percentage of completion of the phase has been performed by the Consultant. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) ( ) Not -to- Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ , including all Materials, and other "reimbursables" (Maximum Compensation). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $ (Authorization Limit), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. See Exhibit B for wage rates. O Hourly rates may increase by 6% for services rendered after [month], 20 , if delay in providing services is caused by City. 2015 -05 -26 Agenda Packet Page 53 11. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: ( ) None, the compensation includes all costs. Cost or Rate O Reports, not to exceed $ $ () Copies, not to exceed $ $ () Travel, not to exceed $ $ () Printing, not to exceed $ $ () Postage, not to exceed $ $ O Delivery, not to exceed $ $ (X) Outside Services: Cal Muni Data Services $11,500 O Other Actual Identifiable Direct Costs: $ not to exceed $ $ not to exceed $ $ 12. Contract Administrators: City: David Bilby, dbilbygchulavistaca.gov, (619) 409 -3818 Consultant: Brian Brown, bbrowngnbsgov.com, (800) 676 -7516 13. Liquidated Damages Rate: per day. O Other: 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code (Chula Vista Municipal Code chapter 2.02): ( X ) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer ( ) Category No. 1. Investments, sources of income and business interests. ( ) Category No. 2. Interests in real property. 2015 -05 -26 Agenda Packet Page 54 O Category No. 3. Investments, business positions, interests in real property, and sources of income subject to the regulatory, permit or licensing authority of the department administering this Agreement. O Category No. 4. Investments and business positions in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. O Category No. 5. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the City of Chula Vista or the City's Redevelopment Agency to provide services, supplies, materials, machinery or equipment. O Category No. 6. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the department administering this Agreement to provide services, supplies, materials, machinery or equipment. O List Consultant Associates interests in real property within 2 radial miles of Project Property, if any: 15. ( ) Consultant is Real Estate Broker and /or Salesman 16. Permitted Subconsultants: 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (X) Monthly ( ) Quarterly O Other: B. Day of the Period for submission of Consultant's Billing: O First of the Month O 15th Day of each Month 2015 -05 -26 Agenda Packet Page 55 (X) End of the Month ( ) Other: C. City's Account Number: [TO BE ASSIGNED] 18. Security for Performance Performance Bond, $ Letter of Credit, $ Other Security: Type: Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: Retention Percentage: Retention Amount: $_ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: ( ) Other: The Retention Amount may be released on a monthly basis provided that Consultant has performed said monthly services to the sole satisfaction of the Assistant City Manager /Director of Development Services or his designee. 2015 -05 -26 Agenda Packet Page 56 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT AND APPROVING AN AGREEMENT WITH NBS GOVERNMENT FINANCE GROUP IN THE AMOUNT OF $96,000 TO PERFORM DISCLOSURE SERVICES IN PREPARATION FOR THE REFUNDING OF SEVERAL EXISTING COMMUNITY FACILITIES DISTRICTS WHEREAS, The City formed Community Facilities District (CFD) No. 12 -1, CFD No. 2001 -1 Improvement Area B, CFD No. 13 -1, and CFD No. 07 -1, CFD No. 97 -3, CFD No. 99 -1, CFD No. 2000 -1, CFD No. 2001 -1 IA A, Reassessment District (RAD) No. 2005 -2; and WHEREAS, The City desires to refund the bonds issued for each of the districts described above in order to provide interest rate savings to the property owners within these districts; and WHEREAS, The City desires to contract with various qualified consultants who will assist the City with the refunding of the outstanding bonds; and WHEREAS, The City desires to obtain certain consulting services with NBS Government Financing Group for Refunding Disclosure services for Community Facilities District (CFD) No. 12 -1, CFD No. 2001 -1 Improvement Area B, CFD No. 13 -1, and CFD No. 07 -1, CFD No. 97 -3, CFD No. 99 -1, CFD No. 2000 -1, CFD No. 2001 -1 IA A. Reassessment District (RAD) No. 2005 -2; and WHEREAS, NBS has been the City's special tax administrator for over ten years and, as a result, it is uniquely qualified to assist the City with the refunding of nine special tax districts because of their experience and familiarity with the Districts being considered for refunding; and WHEREAS, pursuant to Chula Vista Municipal Code section 2.56.070.B.3., the City Council has determined that the City's competitive bidding requirements are impractical in this instance and the City's interests would be materially better served by deviating from those requirements because NBS' extensive experience and unique knowledge of the districts being considered for refunding will allow the City to proceed expeditiously with the the bond refunding in order to capitalize on current market interest rates. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the AGREEMENT, between the City and NBS Government Financing Group, in the form presented, 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, and authorizes and directs the Mayor to execute same." C:\ Users\ GRANIC— l\AppData\Local \Temp\BCL Technologies \easyPDF 7\ @BCL@20069C17 \@BCL@20069C17.doc 2015 -05 -26 Agenda Packet Page 57 Presented by Maria Kachadoorian Deputy City Manager /Chief Financial Officer Approved as to form by Glen R. Googins City Attorney C:\ Users\ GRANIC— l\AppData\Local \Temp\BCL Technologies \easyPDF 7\ @BCL@20069C17 \@BCL@20069C17.doc 2015 -05 -26 Agenda Packet Page 58 CITY OF CHULA VISTA File #: 15 -0201, Item #: 4. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2014/2015 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council accept the report and adopt the resolution. SUMMARY In preparing the quarterly financial projections, staff has identified various budget changes that are needed to better reflect actual revenues and expenditures or address changes in budgetary needs. For government entities, a budget creates a legal framework for spending during the fiscal year. After the budget is approved there are circumstances, which arise that could require adjustments to the approved budget. This report discusses budget adjustments that staff recommends in the General Fund as well as various other 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" in accordance with Section 15378(b)(4) of the State CEQA because it involves only various adjustments to the budget, therefore it is governmental fiscal activity which does not involve any commitment to any specific project and will not result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD /COMMISSION RECOMMENDATION Not applicable. DISCUSSION THIRD QUARTER BUDGET AMENDMENTS FISCAL YEAR 2014 -15 On May 12, 2015 the Finance Department submitted the Third Quarter Financial Report for the quarter ending March 31, 2015. This report complements the Third Quarter Financial report containing the recommended budget adjustments in the General Fund as well as various other funds resulting from staff's review of budget operations through end of the third quarter for fiscal year 2014- 15. In preparing the quarterly financial projections, staff identified various budget changes that are City of Chula Vista Page 1 of 7 Printed on 5/21/2015 powered by Leg 2015 -05 -26 Agenda Packet Page 59 File #: 15 -0201, Item #: 4. needed to better reflect actual revenues and expenditures or address changes in budgetary needs. The following section reflects the recommended budget amendments for the General Fund by Department, as well as Other Funds by fund. General Fund Budget Amendments - Staff is recommending budget amendments in the following departments: City Council, Non - Departmental, Animal Care Facility, Library, Fire, Police, Public Works, and Human Resources. These changes result in no net fiscal impact to the General Fund. Non Departmental - The following budget adjustments are requested for the Non - Departmental budget: • The City has recently received $160,400 in unanticipated revenue from the sale of two easements to the Sweetwater Authority for wells to expand the Reynolds Desalinization Plant. The budgetary impact of these revenues was assumed in the projections included in the Third Quarter Financial Report. Staff is recommends appropriating these revenues so that they are reflected in the current fiscal year budget. Staff is also recommending appropriating $30,000 of these revenues to the Non - Departmental Non -CIP project expenditures expense category for improvements to the west side parking lot that serves the Public Services building on the City's main campus. This lot was not fully completed at the time the City Hall complex was reconstructed because it was anticipated that Fire Station No. 1, immediately adjacent to the lot would be relocated. However, at later date it was decided that the station would remain for the foreseeable future. As a result, the parking lot was left unfinished lacking full functionality with only one access point. • Non - Departmental /City Council - The fiscal year 2015 City Council budget includes a prior year carryover of $15,000 in the Supplies and Services expense category. The expenditures related to this budget are citywide in nature; they include partial funding for the Continuous Improvement Academy. Staff is requesting to transfer these funds from the City Council budget to the Non- Departmental budget to more accurately reflect the use of these citywide expenditures. There is no net fiscal impact to the General Fund as a result of this change. • Non - Departmental /Telegraph Canyon Drainage Plan DIF - Earlier this fiscal year, City Council approved an appropriation of $1.8 million from General Fund (operating) reserves for the Telegraph Canyon Erosion Repair CIP. Since that time, staff has been evaluating the feasibility of using Telegraph Canyon Drainage Plan DIF funds for these project costs. Staff is requesting to transfer the project budget from the General Fund to the Telegraph Canyon Drainage Plan DIF. While further work is needed to update the Telegraph Canyon Drainage Plan DIF staff is confident that this is an eligible funding source. Public Works staff will return to Council before the end of the calendar year with a fee update that includes the Telegraph Canyon Erosion Repair project as a facility in the Telegraph Canyon Drainage Plan DIF. At this time staff is requesting the elimination of the $1.8 million appropriation in the General Fund and the addition of an appropriation of $1.8 million in the Telegraph Canyon Drainage Plan DIF. Should it be determined at a later date that the Telegraph Canyon Drainage Plan DIF is not an eligible funding source, the General Fund will need to repay project costs to date and assume any remaining project costs. City of Chula Vista 2015 -05 -26 Agenda Packet Page 2 of 7 Printed on 5/21/2015 powered by LegistarT" Page 60 File #: 15 -0201, Item #: 4. Animal Care Facility (ACF) - The ACF has received donations from various sources and unanticipated revenues totaling $82,000. Staff is requesting to appropriate these funds to address various operational needs. The funds will be used to replace one Animal Control Truck ($36,000), replace one Animal Transport Unit ($19,000), purchase one Transit Connect Van ($23,000), and associated maintenance costs fund associated maintenance costs for one year ($4,000). Staff is requesting an appropriation of $82,000 to the Transfers Out category of the Animal Care Facility budget for these costs. $78,000 to the Equipment Replacement Fund for the purchase of the vehicles and equipment, and $4,000 to the Central Garage Fund for the associated maintenance costs. This appropriation will be fully offset by unanticipated revenue. The requested appropriation results in no net fiscal impact. Fire Department - The Fire Department is requesting the following budget adjustments based on revenue reimbursements from various sources: • The Fire Department has received reimbursements in the amount of $127,768 and is expecting to receive an additional $91,733 from the State of California Office of Emergency Services. These reimbursements are related to costs associated with staff time and travel for Chula Vista Fire Department strike team deployments for mutual aid agreements to assist in statewide firefighting efforts. Staff is requesting Council to amend the Fire Department budget by appropriating $219,501 to the Personnel Services expense category to reimburse for incurred overtime costs. • The Fire Department has also received $13,159 in reimbursement for its participation in the Urban Search & Rescue - Task Force 8 (TF -8) from the City of San Diego. Staff is requesting that $10,830 from this reimbursement be appropriated to the Personnel Services expense category to reimburse for incurred overtime costs and $2,329 to the Supplies and Services category to offset travel costs within the Fire Department budget. Public Works • Public Works /Human Resources - An appropriation of $45,000 to the Other Expense Category of the Traffic Signal & Street Lighting budget is requested for the repair and replacement of traffic operation equipment due to vehicle accidents. The Other Expense appropriation will be offset by a revenue appropriation in the Human Resources Department from reimbursement revenue that has been recovered from the responsible insurance companies • An appropriation of $62,000 to the Supplies and Services Category of the Park Maintenance Budget for the purchase of sod for Montevalle Park is requested. Restoration of the play field must be performed in spring in order to capture the growth and establishment season required for the successful restoration of the playing field. This appropriation will be offset by transfer of savings from the Public Works Personnel Services expenditure category resulting from unanticipated salary savings due to vacancies. • An appropriation of $25,000 to the Supplies and Services Category of the Building Projects budget for repairs at the Chula Vista Community Park parking lot. This appropriation will be City of Chula Vista Page 3 of 7 Printed on 5/21/2015 powered by Leg 2015 -05 -26 Agenda Packet Page 61 File #: 15 -0201, Item #: 4. offset from projected savings within the Public Works Personnel Services expenditure category. Personnel Services has unanticipated salary savings due to vacancies. Library - The Library has received donations totaling $924; these donations include: Friends of the Heritage Museum ($624) and ($300) from Connie Fey in the name of her sister Jackie Fey Lindensmith. The donation from the Friends of the Heritage Museum will be used for operating expenses at the Heritage Museum per their MOU agreement. The donation from Connie Fey will be used to purchase children's books. Staff is requesting that $755 be appropriated to the Supplies and Services budget, and that $169 be appropriated to the Utilities budget; these appropriations will be fully offset by unanticipated revenue resulting in no net fiscal impact. Budget Amendments to Other Funds - In addition to the General Fund changes requested above, staff is also recommending a number of changes to other funds. These changes are as follows. Workers Compensation Fund - Expenses in the Workers Compensation fund are projected to exceed budget. Staff recommends an appropriation of $675,000 to the Other Expenses budget category in order to fund workers compensation claims projected to be incurred through the end of the current fiscal year. Note that this appropriation may place this fund into a deficit depending on the level of actual expenditures for the current fiscal year. Based on current expenditure trends, the projected deficit is approximately $300,000 for the fiscal year ending June 30, 2015. Staff will continue to monitor expenses in this fund and return to Council to address shortfalls in reserves. Development Services Fund - The following budget adjustments are requested in the Development Services Fund: • Development Services has experienced an increase in the use of credit cards as a form of payment. As part of the 2nd Quarter Report a transfer was requested, however subsequent to preparing the 2nd Quarter Report, a greater than anticipated increase in volume has occurred. As a result the Department is projected to exceed the budget for credit card transaction fees. Staff is requesting a transfer of $38,000 from Personnel Services to the Other Expenses category for these increased expenditures. There is no net fiscal impact as a result of this transfer. • Pursuant to California Public Resources Code 2705, the City must collect a fee established by the State from each building permit to fund the State's Strong- Motion Instrumentation Program. The City retains 5% of the fees collected and the remaining 95% is reimbursed to the State through the Other Expenses category of the Development Services budget. Staff is requesting an appropriation of $24,000 to the Other Expenses category of the Development Services Fund, due to higher than anticipated permit activity. This appropriation would be offset by fees collected for the Strong- Motion Instrumentation Program. There is no net fiscal impact to the fund as a result of this appropriation. 2004 Certificate of Participation Civic Center Project Phase I Fund - An appropriation of $1,400 from the available balance of the 2004 Certificate of Participation Civic Center Project Phase I Fund to the City of Chula Vista 2015 -05 -26 Agenda Packet Page 4 of 7 Printed on 5/21/2015 powered by LegistarT" Page 62 File #: 15 -0201, Item #: 4. Supplies and Services budget category is requested. The additional appropriations will be used to fund services that provide disclosure report preparation, account management and arbitrage calculation reports that are required for the management of this fund in accordance with SEC regulations. 2010 Certificate of Participation Refinance Fund - An appropriation of $1,800 from the available balance of the 2010 Certificate of Participation Refinance Fund to the Supplies and Services budget category is requested. The additional appropriations will be used to fund services that provide disclosure report preparation, account management and arbitrage calculation reports that are required for the management of this fund in accordance with SEC regulations. State Grants Fund - The Library Department has received $11,235 in State grant funding to support the Literacy Program. The purpose of the grant from the California State Library, through the California Library Literacy Services, is to support adult literacy services in a library setting. This enables the library to continue to provide literacy services in the Educational Services Wing at the South Chula Vista Library in partnership with a volunteer literacy organization, Lauderbach Literacy Council. The Library Department is requesting to appropriate these funds to the Personnel Services expenditure category to fund hourly staff for the Literacy program. Equipment Replacement Fund - Staff is requesting an appropriation of $43,144 to the Equipment Replacement Fund's Capital expense category for the purchase of a replacement Battalion Chief emergency response vehicle that was irreparably damaged in the course of responding to a call for service. The vehicle needs to be replaced as soon as possible in order to ensure proper Battalion Chief response readiness capability. This appropriation is for the cost of the vehicle only and does not include outfitting expenses that will be subsequently required. The appropriation will be made from the available balance of the Equipment Replacement Fund; however the City expects to be reimbursed for this vehicle via insurance liability proceeds as it was not liable for the vehicle damages resulting from this incident. Staff is requesting an additional appropriation of $78,000 to the Equipment Replacement Fund's Capital expense category for the purchase of Animal Control Facility (ACF) vehicles previously discussed in this report. These vehicles will be funded by Transfers In revenues from the General Fund that are funded through donations received by the (ACF). Central Garage Fund - A $4,000 appropriation is requested to the Transfers In revenue category of the Central Garage Fund to offset the first years maintenance costs of the vehicles to be purchased for the Animal Care Facility as previously discussed in this report. Telegraph Canyon Drainage Plan DIF - Staff is requesting the appropriation of $1.8 million to the Telegraph Canyon Drainage Plan DIF Fund. The appropriation will be used to fund work for the Telegraph Canyon Erosion Repair project as was previously discussed in the report. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council member and, for each of the decisions contemplated by this action, either: (i) is not site specific; (ii) does not involve property which is within 500 feet of member property holdings; or (iii) solely concerns the repair, replacement or maintenance City of Chula Vista Page 5 of 7 Printed on 5/21/2015 powered by Leg 2015 -05 -26 Agenda Packet Page 63 File #: 15 -0201, Item #: 4. of existing streets, sewer, storm drainage or similar facilities and, as such, the financial effect of the decision on real property is presumed not to be material, pursuant to California Code of Regulations Title 2, sections 18705.2(c). 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. This action supports the Operational Excellence goal by communicating the City's projected financial position for the current fiscal year in an open and transparent manner. This transparency supports City Initiative 1.3.1. - "Foster public trust through an open and ethical government." CURRENT YEAR FISCAL IMPACT General Fund - Approval of the resolution amending the fiscal year 2014/15 budget will result in appropriations and budget amendments in the following departments: City Council, Human Resources, Non - Departmental, Animal Care Facility, Fire, Public Works, and Library. These budget amendments will reduce budget appropriations by $1.4 million and increase revenues by $0.5 million. The fiscal impact related to the elimination Telegraph Canyon Erosion repair CIP, sale of the easements, and the City Hall Campus parking lot project were all reflected in the Third Quarter Financial Report submitted to Council earlier this month. Tonight's action allows for the approval of the budget amendments related these changes. Overall, the General Fund will reflect a negative balance of $0.3 million with the approval of these amendments. The budgeted deficit reflects prior Council appropriations from General Fund reserves. Summary of General Fund Budget Appropriations and Amendments by Department Other Funds - Approval of the resolution amending the fiscal year 2014/15 budget will result in appropriations and budget amendments to various funds. The corresponding fiscal impact is included in the table below. Summary of Budget Appropriations and Amendments by Fund In addition to the appropriations included above, staff is also recommending a number of transfers between expenditure categories for various departments and funds. These changes result in no net fiscal impact. Summary of Requested Transfers within Departments /Funds There is no net fiscal impact to the Development Services Fund or the States Grant Fund that result from these amendments. City of Chula Vista Page 6 of 7 2015 -05 -26 Agenda Packet Page 64 File #: 15 -0201, Item #: 4. Projected impacts to the remaining funds are as follows: • The Central Garage Fund will improve by $4,000. • The appropriation to the Equipment Replacement Fund of $121,144 will be offset by $78,000 in unanticipated revenues; the remaining appropriation $43,144 will come from the available fund balance of this fund. • The appropriation of $675,144 in the Workers Compensation Fund will be made from the available fund balance of this fund. • The appropriation of $1,400 in the 2004 Certificate of Participation Civic Center Project Phase I Fund will be made from the available fund balance of this fund. • The appropriation of $1,800 in the 2010 Certificate of Participation Refinance Fund will be made from the available fund balance of this fund. • The $1.8 million appropriation to the Telegraph Canyon Drainage DIF Fund will be made from the available fund balance of this fund. ONGOING FISCAL IMPACT Staff will continue to monitor and analyze revenue and expenditure trends and incorporate changes as necessary into future financial reports and /or budgets. Staff Contact: Angelica Aguilar, Budget Manager, Finance Department City of Chula Vista Page 7 of 7 2015 -05 -26 Agenda Packet Page 65 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2014/2015 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR WHEREAS, the City Charter states that at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least four members; and WHEREAS, staff has completed the budget review for the quarter ending March 31, 2015 and is recommending a number of budget amendments; and WHEREAS, staff is recommending a reduction of $1,409,416 in appropriations to various departments in the General Fund and appropriating $520,984 in new revenues resulting in positive budgetary fiscal impact of $1.9 million; and WHEREAS, staff is also requesting the elimination of $1,800,000 from the General Fund for the Telegraph Canyon Erosion Repair project; and WHEREAS, staff has initially determined that the Telegraph Canyon Drainage Plan DIF is an eligible funding source for the Telegraph Canyon Erosion Repair project and recommends using this funding source; and WHEREAS, staff is recommending the appropriation of $1,800,000 from the available balance of the Telegraph Canyon Drainage Plan DIF; and WHEREAS, the appropriations to the State Grants Fund and the Development Services Fund, are revenue offset resulting in no net fiscal impact to these funds; and WHEREAS, the requested transfers within the Development Services Fund and the Public Works Department are neutral resulting in no net impact to these departments /funds; and WHEREAS, the Central Garage Fund's fund balance will increase by $4,000 to fund maintenance expenses related to Animal Care Facility vehicles that will be purchased from donation revenues; and WHEREAS the appropriation of $1,400 to the 2004 Certificate of Participation Civic Center Project Phase I Fund and the $1,800 appropriation to the 2010 Certificate of Participation Refinance Fund are necessary to fund disclosure services required for the administration of these funds and will be made from the available fund balances of these funds; and WHEREAS, the appropriation of $121,144 in the Equipment Replacement Fund is requested for the purchase of a battalion chief response vehicle that was irreparably damaged and 2015 -05 -26 Agenda Packet Page 66 the purchase of Animal Care Facility service vehicles that are funded by donations to the Animal Care Facility of $78,000 with $43,144 coming from the available balance of this fund; WHEREAS, an appropriation of $675,000 from the available balance of the Workers Compensation Fund is requested to pay for projected claims expenses in the current fiscal year; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it amends the fiscal year 2014/2015 budget and approves the appropriations as listed in Exhibit 1 Budget Amendment Summary. Presented by Maria Kachadoorian Deputy City Manager Approved as to form by Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 67 Budget Amendment Summary - Third Quarter Fiscal Year 2014 -15 Exhibit 1 V PERSONNEL SUPPLIES& OTHER CIP NON-CIP TOTAL •A •A• �• City Council $ (15,000) $ (15,000) 0 $ 15,000 Human Resources 0 45,000 45,000 Non - Departmental 15,000 $ (1,800,000) 30,000 - 1,755,000 160,400 1,915,400 Animal Care Facility 82,000 82,000 82,000 0 Fire 230,331 2,329 232,660 232,660 0 Public Works - 87,000 87,000 45,000 45,000 0 - 45,000 Library 755 169 924 924 0 TOTAL GENERAL FUND $ 143,331 $ 90,084 $ 45,000 $ - $ (1,800,000) $ 30,000 $ 82,000 $ 169 $ (1,409,416) $ 520,984 $ 1,930,400 OTHER FUNDS State Grants Fund $ 11,235 $ 11,235 11,235 $ - Central Garage Fund 0 4,000 4,000 Equipment Veh Replacement Fnd $ 121,144 121,144 78,000 - 43,144 Workers Compensation $ 675,000 675,000 0 - 675,000 Development Services Fund $ (38,000) $ 62,000 24,000 24,000 0 2004 COP Civ Ctr Proj Phase 1 $ 1,400 1,400 0 -1,400 2010 COP Refinance $ 1,800 1,800 0 -1,800 Telegraph Canyon Drainage Pln DIF $ 1,800,000 1,800,000 0 - 1,800,000 TOTAL OTHER FUNDS $ (26,765)1 $ 3,200 $ 737,000 $ 121,144 $ 1,800,000 $ - $ - $ - $ 2,634,579 $ 117,235 $ (2,517,344) TOTAL BUDGET AMENDMENTS $ 116,566 1 $ 93,284 $ 782,000 $ 121,144 $ - $ 30,000 $ 82,000 $ 169 $ 1,225,163 $ 638,219 1 $ (586,944) 2015 -05 -26 Agenda Packet Page 68 CITY OF CHULA VISTA File #: 15 -0176, Item #: 5. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PERFORMING AND VISUAL ARTS GRANT TASK FORCE'S SELECTION OF THE FISCAL YEAR 2015 PERFORMING AND VISUAL ARTS GRANTS RECIPIENTS AND MONETARY GRANT AWARDS TOTALING $82,800 RECOMMENDED ACTION Council adopt the resolution. SUMMARY In 1997, the City Council approved a Sublease with Live Nation, Inc. (formerly Universal Concerts) that established a process whereby ticket sales proceeds at the Sleep Train (Formerly Coors /Cricket) Amphitheater would be paid to the City and utilized for a Performing and Visual Arts Fund. This fund is to be used for arts grants to the Chula Vista community for the purpose of promoting and stimulating the growth of performing and visual arts within the City of Chula Vista. This year, the Chula Vista Public Library received $82,903 from Live Nation for their 2014 Concert Series. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the propose activity, approving the Performing and Visual Arts Task Force's selection of grants recipients and monetary grant awards, for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity in question may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD /COMMISSION RECOMMENDATION The Task Force recommends that the City Council award arts funds to groups as outlined in this report. The Cultural Arts Commission endorsed the Task Force recommendations at their meeting on May 11 th, 2015. DISCUSSION Since the program's inception, the Library Department has administered the Performing and Visual Arts Fund grant application process. The Performing and Visual Arts Grant Application was announced through a press release, advertised on the City of Chula Vista and Library websites, with applications made available online. The period for submittal ran from early December to mid - February, with an application deadline of 5pm, February 13th, 2015. Thirty -three applications totaling $146,350 in requests were received by the application due date. Upon receipt and review, a copy of each application was distributed to members of a Task Force assembled specifically for the purpose of determining the successful applications. The Task Force members invited to participate in the process this year were: City of Chula Vista Page 1 of 6 Printed on 5/21/2015 powered by Leg 2015 -05 -26 Agenda Packet Page 69 File #: 15 -0176, Item #: 5. Judy Walsh- Jackson, Chief of Staff, Mayor's Office, City of Chula Vista Darbi Peters, Guest Services Manager, Live Nation Virginia Hartnett, Chula Vista Elementary School District Al Gore, Chula Vista Cultural Arts Commission Jennifer Rodriquez, Chula Vista Cultural Arts Commission Vallo Riberto, Southwestern College Stephanie Loney, Principal Librarian, Chula Vista Public Library (non- voting) The thirty -three applications were reviewed and ranked by pre - established criteria. One application was not selected for an award for reasons outlined briefly below - Onstage Playhouse - Application amount requested was very high (over 17% of the total grant budget) and project proposed (construction of sets and marketing) was felt to not be connected directly enough to arts education or to experiencing the arts. The proposal was one of three submitted by Onstage Playhouse and the other two applications were successful in receiving funding. The Task Force met on April 16th, 2015 and recommended awarding the following thirty -two applications - List of Grant Recommendations: • Bonita Vista High School's Club Blue $2,000 To purchase musical instruments to enable the group to continue performing at local events such as the Otay Ranch Band Review and the Chula Vista Field Tournament. • Bonita Vista High School's Music Machine $2,000 To support the 2015 -2016 schedule of performances by Music Machine in Chula Vista elementary Schools, hospitals, senior centers, and community festivals. • Bonita Vista High School's Sound Unlimited $2,000 To support the show choir's 2015 -2016 performance schedule in Chula Vista's elementary schools, hospitals, senior centers, and community festivals. • Bonitafest Melodrama $2,000 To support the production of a local interest melodrama to run in conjunction with the Bonitafest, in September, 2015. • Jennifer Bustamente (Individual) $500 To support the production of a "Harvest Lights at Memorial Park" event, featuring illuminated pumpkins created by the community and displayed at nightfall. To include a People's Choice award. • California Ballet $3,150 To provide on -site dance programs in the Eastlake and Bonita Vista High Schools as well as programs in the Chula Vista libraries. • Elisha Cecil (Individual) $1,000 To support the production of the first part of a film /media production featuring a fictional character and filmed on location at Southwestern College and San Diego. To include a screening within Chula Vista on completion. • Chula Vista Art Guild $2,000 To fund the Guild's 70th year celebration which will feature a juried art exhibit and reception at Southwestern College, annual spring and fall exhibits, Harborfest, Art in the Park (Heritage City of Chula Vista Page 2 of 6 Printed on 5/21/2015 2015 -05 -26 Agenda Packet Page 70 File #: 15 -0176, Item #: 5. Park), plus monthly artist demonstrations and two workshops by professional artists. An event at City hall will also be planned. • Chula Vista Ballet $3,000 To fund a season finale of "Sleeping Beauty" in Chula Vista restaged by Artistic Director Taeko Nishino with guest choreographer Innessa Plekhanova. The performance will feature Chula Vista Ballet talent as well as artists from around the nation. • Chula Vista Rotary Club $3,000 To fund "Mariachi OctoberFiesta!" community event in the Memorial Bowl, Chula Vista. To include Mariachi and Folklorico performers from the South Bay. Open to the public, proceeds from the Mariachi event will support local and international charity projects. Mariachi OctoberFiesta! will be a fusion of Mexican and German music, dance and culture • City of Chula Vista Animal Care Facility $2,200 • To fund the artistic decoration of a supplies container located at the Animal Care facility that will promote pet adoptions and responsible pet ownership in an artistic manner while providing an item of public art in southwest Chula Vista. • City of Chula Vista Harborfest $5,000 To fund the "Community Zone" at the 2015 Harborfest celebration on the Bayfront, which will showcase Chula Vista talent as well as cultural attractions such as Pilipino dances, Irish music, and a youth rock band. City of Chula Vista Recreation Department $2,100 To create a mural inside the Parkway Community Center reflecting the local community and recreational activities that local youth can participate in. • City of Chula Vista Starlight Parade $2,500 To fund fliers, programs, and posters supporting the 2015 Starlight Parade on Third Avenue, Chula Vista. • Eastlake High School Band Boosters $2,000 To help fund the purchase of show props, flags, and copyrighted music for the various performances the marching band undertakes in and around Chula Vista. • Friends of the Chula Vista Library $2,000 To provide a musical and cultural program in the library that reflects the culturally diverse community of Chula Vista. Black History Month, Hispanic Heritage Month, Native American Month, and Asian Pacific Month will each be celebrated with a musical program that is free to the public. • Friends of the Chula Vista Library $2,000 To host 6 weeks of educational musical programing to support the library's Summer Reading Program for which the theme in 2015 will be "Read to the Rhythm ". Will offer children free art workshops on creating musical instruments and a summer concert finale that will showcase a variety of different musical styles. • Friends of Chula Vista Library $2,000 To develop a music and theater program for teens in the library that reflects the community. To include a concert recital and a theatrical performance at the Civic Center Library. • Friends of Chula Vista Library $2,000 To fund a "Swing into the Library" event at the Otay Library's community space ( "The Hub ") that will feature a free lesson in East Coast swing, dance demonstrations and a performance by Downbeat Big Band in the mall's food court. City of Chula Vista Page 3 of 6 2015 -05 -26 Agenda Packet Page 71 File #: 15 -0176, Item #: 5. • High Tech High Chula Vista $2,000 To help fund the third Annual Dia de los Muertos (Chula Vista Day of the Dead) event on November 1, 2015 in the Memorial Bowl Park. • La Jolla Playhouse $4,900 To fund the Performance Outreach Program in 6 Chula Vista elementary schools. The program offers pre -show workshops for students and the Resource Guide provided brings the Arts into the STEM curricula. The "Astronaut Farmworker" will be the play featured in the program. • Museum of Contemporary Art San Diego $2,500 To fund the participation of 280 Chula Vista high school students in the Extended School Partnership Program. The program offers multiple weeks of classroom workshops, field trips to the museum, and gallery space for student and teacher interaction with art. This program receives additional grant funding from other sources. • OnStage Playhouse $4,000 To provide an extensive six month intern program to Chula Vista high school students and college freshmen and the underwriting of 50 tickets for two performances of the Intern Summer Performance. • OnStage Playhouse $1,000 To advertise and market the performances "The Glass Menagerie" by Tennessee Williams and "Coyote on a Fence" by Bruce Graham. • Edwin Frank Ortiz $1,000 To fund, in part, the production of a creative film entitled "Chemistry". To be filmed on the campus of Southwestern College and entered into film festivals on completion. • Sakura Theater $1,500 To fund a performing arts program for residents of Chula Vista using local talent that will teach Japanese culture and environmental awareness. • Salt Creek Elementary School $2,500 To fund a multicultural festival celebrating diversity with an arts focus integrated into the event. The school will host 24 arts workshops on different regions of the world prior to the event, with artists from ArtReach San Diego. Some pieces from these workshops will also be displayed at Chula Vista Libraries for the public to view. • San Diego Youth Symphony and Conservatory $10,650 To provide free after - school music instruction and performance opportunities for approximately 200 students in Chula Vista elementary and middle schools. Meeting at Vista Square and Kellogg Elementary, the District Opus Strings Orchestra program is open to any district student. The Opus Honors Orchestra will be open to advanced elementary and middle school students. Two major concerts will be performed annually, as well as performances at community events. • South Bay Ambassador Program $1,000 To partially fund the one day fun - family 5k walk event that will have a performance stage with music, storytelling, and cultural dancers. The event will take place at Salt Creek Golf Course, Chula Vista. • Third Avenue Village Association $2,500 To fund altar kits for a Dia de Los Muertos event to take place on Third Avenue. Community members will create artistic altars that will be featured in participating businesses along Third Avenue. City of Chula Vista Page 4 of 6 Printed on 5/21/2015 powered by Leg 2015 -05 -26 Agenda Packet Page 72 File #: 15 -0176, Item #: 5. • Third Avenue Village Association $4,000 To fund live performances, activities, costumed characters, and interactive entertainment at the annual Holiday in the Village event. • Third Avenue Village Association $2,800 To help fund decorations in and around Memorial Park for the duration of the holiday season. The decorations will enliven both the Starlight Parade and the Holiday in the Village community events. The above grant award recommendations were made by the Task Force with full consideration given to recommendations made at the City Council meeting on April 28th, 2009 that - • Applicants must use the correct application • Criteria on how points are awarded • Expectation of itemized budgets • Clarification on the amount of funds that can be requested • Final reports to be completed and filed on time • Notice that failing to abide by any and all rules could result in funds being withdrawn and affect future applications by individuals or organizations The previous guidelines were approved by the Chula Vista City Council on December 14th, 1999 and entitled Criteria for the Allocation of the Performing Arts Fund. DECISION -MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that each of the decisions contemplated by this action either: (i) is not site specific and consequently, the 500 -foot rule found in the California Code of Regulations section 18704.2(a)(1) is not applicable to this decision; or (ii) would not affect the value of the real property located within 500 feet of the property line of the member's real property and, thus, pursuant to California Code of Regulations Title 2, section 18705.2(a), no conflict exists. 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. Awarding the Performing and Visual Arts Grants to the organizations and individuals listed above supports the Connected Community, as many of the projects are free and open to the general public. In addition, the Economic Vitality goal is supported as community events bring investment into the area where they are situated, and lastly, the Healthy Community goal is supported as dance and musical opportunities support physical and mental well- being. CURRENT YEAR FISCAL IMPACT There is no current fiscal impact associated with these grants. The recommended fiscal year 2015/2016 grant awards total $82,800. The fund carried no reserve and the amount received from Live Nation totaled $82,903. This leaves $103 to be carried over to fiscal year 2016/2017. ONGOING FISCAL IMPACT None City of Chula Vista 2015 -05 -26 Agenda Packet Page 5 of 6 Printed on 5/21/2015 powered by LegistarT" Page 73 File #: 15 -0176, Item #: 5. ATTACHMENTS A. Criteria for the Allocation of the Performing Arts Fund as approved by City Council on December 14th, 1999. City of Chula Vista Page 6 of 6 w we W-TO 6Ti1WPAFP411W 2015 -05 -26 Agenda Packet Page 74 ATTACHMENT A Criteria for the Allocation of the Performing Arts Fund as approved by City Council on December 14th, 1999. The Performing and Visual Arts Fund, established by the sublease between the City Council and Live Nation shall be annually re- granted through a formal application process. The following groups and individuals shall be eligible to apply for funds: • Chula Vista based tax - exempt, non - profit organizations • Chula Vista based educational organizations • Chula Vista based religious organizations • Performance groups associated with Chula Vista based educational institutions (i.e. the Music Machine) • The City of Chula Vista and its various departments and Boards and Commissions • Individuals who reside in Chula Vista For profit organizations, institutions, and businesses shall not be eligible for funds unless they partner with Chula Vista based organizations. Individual Chula Vista residents (especially students) shall be eligible to apply, in an effort to develop local talent. Per the agreement, applicants may only apply for funds to underwrite the cost of presentations. Funds shall not be awarded to establish an endowment or trust fund, for administrative costs, for capital projects, for rent of performance or office space, and /or for general operating expenses. 2015 -05 -26 Agenda Packet Page 75 RESOLUTION NO. 2015 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PERFORMING AND VISUAL ARTS GRANT TASK FORCE'S SELECTION OF THE FISCAL YEAR 2015 PERFORMING AND VISUAL ARTS GRANTS RECIPIENTS AND MONETARY GRANT AWARDS TOTALING $82,800 WHEREAS, in 1997, the City Council approved a Sublease with Live Nation, Inc. (formerly Universal Concerts) that established a process whereby ticket sales proceeds at the Sleep Train (Formerly Coors /Cricket) Amphitheater would be paid to the City and utilized for a Performing and Visual Arts Fund; and WHEREAS, this fund is to be used for arts grants to the Chula Vista community for the purpose of promoting and stimulating the growth of performing and visual arts within the City of Chula Vista; and WHEREAS, this year, the Chula Vista Public Library received $82,900 from Live Nation for their 2014 Concert Series; and WHEREAS, since the program's inception, the Library Department has administered the Performing and Visual Arts Fund grant application process; and WHEREAS, a Performing and Visual Arts Grant Task Force was assembled specifically for the purpose of determining the successful applications; and WHEREAS, the Performing and Visual Arts Grant Task Force reviewed the 2015- 2016 applications and made its recommendations to award Performing and Visual Arts Grants to thirty -two (32) recipients. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Performing and Visual Arts Grant Task Force's selection of the Fiscal Year 2015 -2016 Performing and Visual Arts Grant recipients, in the form presented, and monetary grant awards totaling $82,800 Presented by Approved as to form by Betty Waznis Library Director Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 76 CITY OF CHULA VISTA File #: 15 -0158, Item #: 6. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT AND AUTHORIZING THE POLICE DEPARTMENT TO RECEIVE CANINE TRAINING, KENNELING, AND CERTIFICATION SERVICES FROM MAN K9 RECOMMENDED ACTION Council adopt the resolution. SUMMARY Pursuant to Chula Vista Municipal Code 2.56.070 relating to contracts exceeding $100,000, the Police Department is requesting to waive the competitive formal bid requirement and authorize to use Man K9 for canine training, kenneling and certification services. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activities for compliance with the California Environmental Quality Act (CEQA) and has determined that the activities are not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines because the activity is approval of a contract for K -9 training only; therefore, pursuant to Section 15061(b)(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 The Police Department has been receiving services from Man K9 since 2004. Man K9 offers a unique benefit to the City by providing one -on -one and group scenario based training to provide an outstanding quality of law enforcement canines (patrol and narcotic detection). Currently, Man K9 provides canine training services to most similarly sized canine units in San Diego County. There are no other vendors in the County who could provide the same quality of weekly ongoing maintenance training to an entire canine unit. Man K9's experience with training canines in searches and apprehension is second to none in our region. In addition, Man K9 provides initial canine academy, kenneling service and annual certifications for Chula Vista Police Department canines. To date, the department has paid over $229,000 to Man K9 for services rendered over the past decade. 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, 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. City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 2 Printed on 5/21/2015 powered by LegistarT" Page 77 File #: 15 -0158, Item #: 6. 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. Man K9 services support the goal of Strong and Secure Neighborhoods by providing canine services to the community for law enforcement public safety efforts. CURRENT YEAR FISCAL IMPACT Approval of this resolution will authorize the Police Department to use Man K9 for canine training related services. These costs are already included in the Police Department's budget, resulting in no additional fiscal impact to the General Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS None. Staff Contact: Joseph Walker City of Chula Vista Page 2 of 2 2015 -05 -26 Agenda Packet Page 78 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT AND AUTHORIZING THE POLICE DEPARTMENT TO RECEIVE CANINE TRAINING, KENNELING, AND CERTIFICATION SERVICES FROM MAN K9 WHEREAS, since 2004, the Police Department has received services from Man K9 for canine training, kenneling and annual certifications; and WHEREAS, Man K9 offers a unique benefit to the City by providing one -on -one and group scenario based training to provide an outstanding quality of law enforcement canines (patrol and narcotic detection); and WHEREAS, City staff have researched other companies that provide canine training and related services, but Man K9 is currently the only local vendor that can meet the City's canine training, kenneling and certification requirements; and WHEREAS, Chula Vista Municipal Code Section 2.56.070(B)(4) permits the City Council to waive formal competitive bidding requirements when a commodity or services is available from only one known source as the result of unique performance capabilities and manufacturing processes, which is the case with Man K9. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the competitive formal bid requirement and authorize the Police Department to receive canine training and related services from Man K9. Presented by: Approved as to form by: David Bejarano Police Chief Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 79 CITY OF CHULA VISTA File #: 15 -0198, Item #: 7. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LEASE AGREEMENT WITH SAN YSIDRO HEALTH CENTER FOR A PORTION OF A CITY -OWNED BUILDING AND APPURTANANCES LOCATED AT 1800 MAXWELL ROAD AND AMENDING THE FISCAL YEAR 2014 -2015 BUDGET FOR PAYMENT OF THE BROKER COMMISSION, RELOCATION COSTS AND MINOR CONSTRUCTION COSTS (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY The City currently has office space significantly in excess of the capacity needed to conduct day -to- day business. Staff had specifically identified space at the John Lippitt Public Works Center (JLPWC) located at 1800 Maxwell Road that is not needed for City operations now or in the near future. The City's real estate broker, Voit Real Estate Services has presented the City with an offer from San Ysidro Health Center, Inc. (SYHC) to lease this office space. 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 qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the activity consists of approval of a lease agreement involving existing city owned property and facilities. Thus, no further environmental review is required. BOARD /COMMISSION RECOMMENDATION Not Applicable DISCUSSION Over the past several years, the City of Chula Vista has undergone significant downsizing. As a result the City currently has office space in excess of the capacity needed to conduct day -to -day business. Non - safety employee operations have been largely consolidated to the City Hall campus and the west half of the JLPWC. In analyzing the City's remaining space, staff specifically identified the Ken Lee Building located at 430 F Street and approximately 10,000 square feet office space at the JLPWC as sites that are not needed for City operations now or in the near future. While the future need for these facilities is uncertain, the City is still incurring cost for maintenance, upkeep and utilities. In order to offset these costs while still keeping open the option of re- occupying these spaces at a later date, Council authorized retaining a Real Estate Broker to market these sites on May 22, 2012. The Ken Lee building was leased in June of 2012. The Listing for the JLPWC space was renewed by Council in November of 2013. The broker, Voit Real Estate Services has now presented the City with an offer from SYHC to lease 13,750 square feet of office space at the JLPWC City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 3 Printed on 5/2112015 powered by Lec Page 80 File #: 15 -0198, Item #: 7. site LEASE SYHC is a non - profit, established in 1969, which provides comprehensive care to 90,000 patients annually through its service delivery network of 26 program sites including: medical clinics, dental clinics, behavioral health centers, HIV /AIDS centers, WIC nutrition centers, mobile units, school - based health centers, pediatric developmental clinic, teen clinic, adult day health center, a Senior Health Center and a program of all inclusive care for the elderly (PACE) Center. Their proposed use of this site would be exclusively for administrative purposes. No health care or patient services would be provided on -site. The lease proposal presented by SYHC is for $1.00 per square foot of net usable area per month for five years with one five year option to renew if approved by both parties. The proposed rental rate will be increased two percent annually. The net leasable building area that SYHC is proposing to lease totals about 13,750 square feet. This would give the City a gross rental of $13,750 per month ($165,000 /year) in the initial year. Additionally, SYHC would pay a prorated portion of the JLPWC electricity cost. This payment constitutes an additional fixed $1,400 /month ($16,800 /year) for the first year and will be adjusted yearly based upon usage. With the decreased maintenance responsibilities the net benefit to the City will be about $200,000 in the initial year; rising two percent per year for the remainder of the term. Included in the lease is the exclusive use of 80 designated parking places. REAL ESTATE COMMISSION If Council approves this lease transaction, the City will be responsible for the Brokers commission due pursuant to our listing agreement. Based upon the square footage leased and the term of the lease the commission due to Voit Real Estate Services is $42,729.60. MOVING EXPENSES AND IMPROVEMENTS In order to lease this area it will be necessary to relocate the Public Works Inspection Branch to another area within the JLPWC. Up until recently we had leased space at the JLPWC to San Diego Metropolitan Transit System for their operations in Chula Vista. They have consolidated their operations at a new location on Main Street and have vacated this space. The relocation of the Inspection Branch personnel to this area will require some minor site preparation and moving and reassembling the existing office furniture and cubicles. Staff estimates that this will cost approximately $25,000. Additionally the IT and telephone equipment will need to be relocated to the new area. The estimated cost for this work is $10,000. TENANT IMPROVEMENTS Because SYHC is proposing to occupy the entire eastern wing of the JLPWC which is already divisible from the remainder of the site only minimal tenant improvements will be needed prior to move in. These are minor items are re- keying, signage and access /security changes. These will be funded from existing department budgets without additional appropriation. Any additional tenant improvement will be the responsibility of SYHC. Staff is requesting that, should Council approve this Lease, $78,000 be appropriated from the FY 2014 -2015 budget to the non - departmental capital budget to cover the above described commission, construction and relocation cost necessary to complete the transaction. City of Chula Vista Page 2 of 3 Printed on 5/21/2015 powered by Leg 2015 -05 -26 Agenda Packet Page 81 File #: 15 -0198, Item #: 7. 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 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. By entering into this lease the City is utilizing un -used office space to create a revenue stream for the City. At the same time the City is relieved of the burden of utility cost and maintenance for space we cannot use. This furthers the City's goal of maintaining Operational Excellence. CURRENT YEAR FISCAL IMPACT In the current fiscal year, the City will incur a cost of $78,000 to fund the items detailed above. Staff is requesting an appropriation of $78,000 to the Supplies Services expenditure category of the Non - Departmental budget. This appropriation will be funded through a transfer of $51,000 from the Public Works fiscal year 2014 -15 budget to the Non - Departmental budget. This transfer consists of $20,000 from the Supplies and Services expenditure category and $31,000 from the projected savings in the Personnel Services expenditure category from the Public Works Department. The balance will be offset by $27,000 in associated deposit revenue received from the lease agreement resulting in no net fiscal impact. ONGOING FISCAL IMPACT In the next fiscal year (2015 -2016) the City will receive $166,650 of lease revenue and utility reimbursement with no anticipated expenses beyond those normally incurred for this site (exterior building and site maintenance). These revenues have been included in the City Manager proposed budget for fiscal year 2015 -2016. In the remaining four fiscal years the City will realize a net benefit of about $200,000 in the initial year; rising two percent per year for the remainder of the term. ATTACHMENTS: SYHC Lease Area Plat Staff Contact: Rick Ryas, Real Property Manager, Public Works Department City of Chula Vista 2015 -05 -26 Agenda Packet Page 3 of 3 Printed on 5/21/2015 powered by LegistarT" Page 82 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LEASE AGREEMENT WITH SAN YSIDRO HEALTH CENTER FOR A PORTION OF A CITY -OWNED BUILDING AND APPURTANANCES LOCATED AT 1800 MAXWELL ROAD AND AMENDING THE FISCAL YEAR 2014 -2015 BUDGET FOR PAYMENT OF THE BROKER COMMISSION, RELOCATION COSTS AND MINOR CONSTRUCTION COSTS (4/5 VOTE REQUIRED) WHEREAS, the City of Chula Vista currently has office space significantly in excess of the capacity needed to conduct the City's day to day business; and WHEREAS, staff has specifically identified space at the John Lippitt Public Works Operations Center (JLPWC) that is not needed for City operations now or in the near future; and WHEREAS, it is desirable to find suitable tenants to occupy, maintain and pay rent and utilities until such time as they are needed for City operations; and WHEREAS, Council authorized retaining a Real Estate Broker to market the site by Resolution in November, 2013; and WHEREAS, the broker, Voit Real Estate Services has presented the City with a proposal from San Ysidro Health Center (SYHC) to lease this space; and WHEREAS, Council has evaluated the proposed lease and found it to be acceptable and in the City's best interest and; WHEREAS, the City will incur estimated costs of $78,000 to cover the payment of the commission for the services rendered by Voit Real Estate Services in accordance with the Exclusive Listing Agreement entered into November 5, 2013 by Resolution No. 2013 -227; relocation costs; and minor construction costs necessary implement this lease; and 2015 -05 -26 Agenda Packet Page 83 WHEREAS, this appropriation will be funded by a transfer of $51,000 to the Supplies and Services expenditure category of the Non - Departmental budget from the fiscal year 2014 -15 Public Works budget and offset by $27,000 in associated deposit revenues resulting in no net fiscal impact. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve a Lease Agreement with San Ysidro Health Center for City owned office space located at the John Lippitt Public Works Center. BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that it does hereby approve amending the Fiscal Year 2014 -2015 Budget by appropriating $78,000 to the Supplies and Services expenditure category of the the Non - Departmental Department by reducing $51,000 from the fiscal year 2014 -15 Public Works budget and $27,000 of associated deposit revenues as outlined in the table below, resulting in no net fiscal impact, to cover the payment of the broker commission, relocation costs and minor construction costs. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015 -05 -26 Agenda Packet Page 84 FISCAL IMPACT SUMMARY Department Personnel Services Supplies & Services Revenue Net Impact Public Works Non - Departmental $ (31,000) $ (20,000) $ 78,000 $ 27,000 $ (51,000) $ 51,000 Net Impact $ - Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015 -05 -26 Agenda Packet Page 84 AIR COMMERCIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIAL/COMMERCIAL MULTI- TENANT LEASE - GROSS 1. Basic Provisions ( Basic Provisloas'). 1.1 Partles: This Lease ('Lease-), dared far reference purposes only January 23, 2015 is made by and between City of Chula Vista, a raunicipal chartered corporation of the State of ('Lessor) and Centro De Salud De La Comunidad De san Ysidro, Inc. dba San Ysidro Health Center, Inc. ("Lessee'), (collectively the ^Parties', of individually a -PaAr). 1.2(a) - Premises: That certain portion of the Project (as defined below). kmJud ng ag Improvements therein or to be provided by Lessor tinder the terms of this Lease, commaNyknown by the street address of 1800 Maxwell Rd. (East Wing) located in the City of Chula Vista County of San Diego T State of California . veth ap code 91911 , as outlined on Exhibit A attached hereto ('Premises') and generally described as (descnbe briefly the name of the Prerises). A_oproxinately 13,750 Square Feet of offices In addtion to Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non - exclusive rights to arty trinity raceways of the building containing the Premises ('Building')and to the Common Areas (as defined in Paragraph 2.7 below), but shag not have any tights to the roof, or exterior walls of the Buildsing or to arty other buildings in the Project The Premises, the BuikE ng, the Common Arms, the land upon which they are located, along valh al other buildings and improvements thereon, are herein collectrmly referred to as the'PmjecV (See also Paragraph 2) 1.2(b) Parking Eighty (80) reserved vehicle parking spaces in the secured parking area unreserved vehicle parking spaces, (See also Paragraph 2.6) 1.3 Term: 5 years and 0 months {"OriginalTerm')commencing July 1, 2015 (-Commencement Date') and ending June 30, 2020 ('Explration Date'), (See also Paragraph 3) 1.4 Early Possession: If the Premises are available Lessee may have non-exclusive possess ion of the Premises commencing N/A (-Early Possession Data -). (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent S 13, 750.00 per month ('Base Rent`), payable on the the 1st day of each month commencing July 1, 2015 . (See also Paragraph 4) 0 If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted, See Paragraph 50 6 51 3.6 Lessee's Share of Common Area Operating Expenses: N/A percent ( %) ('Lessee's Share. In the event that the size of the Premises and/or the Project arc modified during the term of this Lease. Lessor shag recaladate Lessees Share to mlea such modification. Le55ee shall not be required to pay operaVrig expeneee except electric (see paragraph 11) 1.7 Base Rent and Other Mantes Paid Upon Execution (a) Base Rent $ 13, 750.00 for the period First Month's (b) Common Area Operating Expenses: S N/A for the period (c) Security Deposit S 13, 750 . 00 ('Security Deposit'). {See also Paragraph 5) (d) Other, $ for (e) Total Due Upon Execution of this Lease: S 27, 500.00 1.e Agreed Ilse: General office and Administration - (See also Paragraph 6) 1.9 Insuring Party. Lessor. is the insuring Part1P. (See also Paragraph 8) 1.10 Real Estate Broken: (See also Paragraph 15 and 25) (a) Representation: The hxllowrig real estate brokers (the 'Brokers') and brokerage miationslnps exist in this transaction (check apple boxes): 8 Voit Real Estate Services represents Lessor exclusively (-Lassoes Bmker-); 8 Lessee represents itself represents Lessee exclusively ("Lessee'sBroker-);of ❑ represents both Lessor and Lessee ('Dual Agency'). (b) Payment to Brokers- Upon execution and delivery of this Lease by both Parties. Lessor shag pay to the Broken the brokerage fee agreed to m a separate written agreement for if there is no such agreement the sum of $ 4 2, 7 2 9. 60 or % of the told Base Rent) for the brokerage services rendered by the 8mkers.for the Original Term and 3% of the wt l Base Pant payabic during any period of time that the Leexe occuplee the Premises subsequent to the Original Term 1.11 Guarantor. The obligations of the Lessee ender this Lease are to be guaranteed by N/A (-Guarantor'). (See also Paragraph 37) 1.12 Attachments. Attached hereto are the fagrrwing, all of which conslubAo a pan of this Lease: um consistcrg of Paragraphs 50 through 53 PAGE 1 OF 17 INITIALS 01948 - AIR COMMERCIAL REAL ESTATE ASSOCIATION INITIALS FORM MTG-17 -07114E 2015 -05 -26 Agenda Packet Page 85 E} a site plan depicting the Premises; a site plan depicting the Project a current set of the Rules and Regulations for the Project: ❑ a current set of the Rules and Regulations adopted by the owners' assomalion; a Work Letter, Ef other (specify). Notice to Owners, Buyer and Tenants Regarding Environmental Matters, A=ericans with Disabilities Act, Flood Disclosure, Zonis /Use Disclosure and Alguish— Prioio Special Earthquake Fault Zoning Act (Exhibit B) 2. Promises. 2.1 Letting. Lessor hereby leases to Lessee. and Lessee hereby leases from Lessor, the Premises, fm the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease - While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different. NOTE: Lessee is advised to verify the actual size prior to executing this Lease. 2.2 Condition. Lessor shall deliver that porbon of the Premises contained within the Building ('Unit') to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever fast occurs ('Start Data). and. so long as the required service contracts described in Paragraph 7,1113) below are obtained by Lessee and in effect within Minty days following the Start Date, warrants that the existing eledncal, plumbing. foe sprctlder. fighting, heating. ventilating and air cendlioning systems ('HVAC'), loadng doors, sump pumps. if arty. and all other such elements in the Urrt, other than these cons:ruced by Lessee. shall he in good operating condition on said dale, that the structural elements of the roof, bearing walls and fatmdation of the Unit shag be free of material defects, and that the Unit does not contain hazardous levels of any mold or fungi defined as toxic under appicade state or federal law. If a non-compliance with such warranty exLus as of the Start Date, or it one of such systems or elements should maCunuion or fag within the appropriate warranty period. Lessor shall, as Lessees sole obligation with respell to such matter, except as otherwise provided in this Lease, promptly after receipt of wntten notice from Lessee setting forth vdm speafraty the nature and extent of such non cnmpkance, mattunam or failure, rectify same at Lassoes expense. The warranty periods shall be as follows- (i) 24 6 -rtromhs as to the FNAC systems, and (G) 180 39 days as to the remaining systems and other elements of the Unit. If Lessee does riot give Lessor the required notice within the appropriate warranty period. correction of any such own- compliance, malfunction or failure shall be the obligation of Lessee at Lessee's sole cost and expense (except for the repairs to the fire sprinkler systems, roof, foundations, ardlor bearing vralls - see Paragraph 7). Lessor also wanants, that unless otherwise specified in wnting. Lessor is unaware of (i) arry recorded No=es of Default effedng the Premise, (a) arty delinquent amorris due under arty loan seared by the Premises: and (i7 any bankruptcy proceeding a°ectmg the Premises. 2.3 Compliance. Lessor warrants that to the best of its knowledge the improvements an the Prermses and the Common Areas comply wCh the building codes applicable laws, covenants or restrictions of remrd. regulations, and ordharims ("Applicable Requirements') that were in eF.ed at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laves as a result of Lessee's use (see Paragraph 49), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee Is responsible for determining whether or not the Applicable Requirements, and especially the zoning are appropriate for Lessee's intruded use, and acknowledges that past uses of the Premises may no longer be allowed. It the Premises do not comply with said warranty. Lessor shall, except as a:herwise provided, promptly a.er receipt of written notice from Lessee setting firth with specitiaty the nature and extent of such [ion- compliance, redly the same at Lessees expense. If Lessee does not give Lessor written notice of a non-compiance wrh this warranty within 6 months following the Start Oa.e, correction of that own- compliance shall be the obligation of Lessee at Lessee's sole cost and expense. if the Applicable Requirements are herea*.er changed so as to require dtretg the term of this Lease the constnxton of an addition to or an afterxion of the Urut, Premises and/or Building. the remedistmn of any Hazardous Substance, or the reirdarcemem or other physical modification of the Ural_ Premises and/or Building ("Capital Expenditure-), Lessor end Lessee shall allocate the cost of such work as follows' (a) Subject to Paragraph 2,3(c) below, d such Capital Experditeres are required as a result of the specific and unique use of the Premises by Lessee as Compared with uses by tenants in general. Lessee shall be fully responsible for the cost thereof, provided. however, that if such Capital Expenditure is required during the last 2 years of Otis Lease and the cost thereof exceeds 6 months Base Rent, Lessee may instead terminate thus Lease unless Lessor nloLfies Lessee, in writing, within 10 days after receipt of Lessee's termnation notice that Lossor has elected to pay the d_'fenmce between the actual cost thereof and the amount equal to 6 mon'hs' Base Rent If Lessee elects termination. Lessee shall immediately cease the lie of the Premises which requires such Capital Fxyerhditure and deliver to Lessor written rwtice speafyatg a terming ion date at least 90 days thereafter. Stich termmtatian dale shag, however, in no event be earlier 9= the last day that Lessee could legally trAze the Premises without commencing such Capital Expendlure. (b) if such Capital Expenditure is not the result of the specdc and unique use of the Premises by Lessee (such as, governmentally mandated sersmit modd'ncalrons), Open Lessor shall pay for such Capital Expend,:tre and Lessee shall only be obligated to pay, each month during the remainder at the term of this Lease or arry extension thereof, on the date dial on which the Base Reim is due. an amount equal to 11144:13 of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on the balance but may prepay its obligation at arty tine. It. however. such Capital Expenditure is required during the last 2 years of this Lease or it Lessor reasonably determines that it is not economically feasible to pay its share thereof. Lessor shall have the option to lerininate this Lease upon 90 days prior written notice to Lessee unless Lessee nobles Lessor, in wnWig. YANn 10 days after receipt of Lessees termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and tails to tender as share of any such Capital Expenditure. Lessee may advance such funds mid deduct same, with Interest, from Rent urdH Lessees share of such casts have been fully prod. If Lessee is unable to finance Lessees share, or if the balance of the Rent due and payable tot the remainder of lids Lease is not sufficient to fully reimburse Lessee on an offset basis. Lessee shag have the nett to terminate this Lease upon 30 rays wnmen not= t0 Lessor. (C) Notwuhsandrg the above, the provisions concerning Capital Expend,.'hae- are intended to apply only to nori-vohntary, unexpected. and new Applicable Requirements. If the Capital Expenittres arc instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modticanon to the Premises then, and in that event, Lessee shag either. 0) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (i) comp aw such Capital Expenditure at its awn expense. Lessee shag not have any right to termriaw this Lease. 24 Acknowledgements Lessee ackrwwiedges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Lesser and/or Brokers to satisfy itself with respect to the sae and condition of the Premises (including but not EnV.LLd to the electrical. HVAC and fire sprinider systems. seunty, environmental aspects, and compliance with Appicabte Requirements and the Americans with Disabiitres Ant), and their suMibdity for Lessee's intended ruse, (c) Lessee has made such investigation as it deems necessary with reference to such maCers aid assumes an responsibility therefor as the same relale to its o=pancy of the Premises, (d) it is not relying an arty representation as to the s Premises made by Brokers or Lessor, (e) the square footage of the Premises was riot material to Lessees decision to lease the Premises " Rent stated hems, and (f) neither Lessor. Lessors agents, now Broken have made any oral or worsen representations or warranties with PAGE 2 OF 17 INITIALS INITIALS Cr*U - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG- 17 -07/14E 2015 -05 -26 Agenda Packet Page 86 respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that. (ij Brokers have made no representations. promises or warranties concerning Lessee's ability to horror the Lease or skatalniity to occupy the Premises, and (ti) 11 is Lessor's sole respansubdhty, to investigate the financial capability andlar surtabSity of all proposed tenants. 2 -5 Lessee as Prior Owner/Occupant The warranties made by Lessor in Paragraph 2 shag be of no force or effect d immediatety prior to the Stan Date Lessee was the axmer or occupant of the Premises. In such event, Lessee shag be responsible for any necessary corrective work. 2.6 Vehicle Parking. Lessee shag be enttled to use the number of Parking Spaces spealed in Paragraph t1(b) on Dose portions of the Common Areas designated from time to lime by Lessor for parting. Lessee strap not use more paring spaces than said number. Said parlung spaces shag be used for parking by vehicles no larger than full-size passenger automobiles or pick-up trucks, herein caged -Permitted size Vehicles - Lessor may regulate the hadmp and unloading of vehicles by adopting Rules and Regulations as prowled in Paragraph 2.9. No vehicles othef than Permitted Sae Vehicles may be parked in the Gammon Area without the prior written permission of Lessor- In atltl tion: (a) Lessee shag not permit or allow arty vehicles that belong to or are controlled by Lessee or Lessee's employees, suppliers, shippers, customers, contractors or invitees to be loaded. unloaded, or parked m areas other than those designated by Lessor for such actmtzes. (b) Lessee shag not service or store any vehicles m the Common Areas. (c) If Lessee pemuts or agvvrs any of the prohibited activities described in this Paragraph 2.6, then Lessor shag have the right, without notice. in addition to such other rights and remedies that it may have, to remove or tow away the vehide irnvolved and charge the cost to Lessee, which cost shag be hilmediately payable upon demand by Lessor, 2.7 Common Areas - Definition. The term "Common Areas" is de`rned as all areas and facilities outside the Premises and wtun the endemr boundary line of the Project and interior uaalty raceways and installations within the Unit that are provided and designated by the Lessor from time to time for the general non- excbrsm use of Lessor. Lessee and other tenants of the Project and their respective employees, suppliers, shippers, customers. carinctms and invitees. indudmg parking areas. loading and unloading areas, trash areas, roadways. walkways, driveways and landscaped areas. 2.8 Common Areas - Lessee's Rights. Lessor grants to Lessee, for the bene`il of Lessee and rls employees, suppliers, shippers, contractors, customers and invitees, during the term of this Lease, the non - exclusive right to use. in common with others entitled to such use, the Gammon Areas as they exist tram time to tine, subject to any rights, powers, and privileges reserved by Lessor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use of the Project. Under no draanstances shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas, Any such storage shag be pernmdIed only by the prior wrCen consent of Lessor or Lessor's designated agent, which consent may be revoked at any time. In the event that any unauthorized storage shag occur, then Lessor shag have the nght. mahout na5ce, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to Lessee, which cost shag be immediately payable upon demand by Lessor. 2.9 Common Areas - Rules and Regulations. Lessor or such other persan(s) as Lessor may appoint shall have the exclusive control and management of the Common Areas and shag have the right, from lone to time, to establish, modTy, amend and enforce reasonable miles and regulations ("Rules and Regulations") for the management• safety, care, and cleanliness of the grounds, the parking and a kradmg of vehicles and the preservation of good order, as well as for the convenience of other ocmipants or tenants of the Building and the Project and their k ivilees. Lessee agrees to abide by and conform to all such Rules and Regu la uahs, and shag use its best efforts to cause its employees, suppliers, shippers, customers. c nliactors and umtees to so abide and conform. Lessor shag not be responsible to Lessee for the con - compliance with said Rules and Regulation by other tenants of the Project. 2.10 Common Areas - Changes. Lessor shag have the right. in Lessor's sole discretion, from time to time_ (a) To make Changes to the Common Areas, including, without Enualion, changes in the location, sae. shape and number of drievrays, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utiLly raceways; (b) To close temporary any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; (c) To designate other land outside the bourdenes of the Project to be a pan of the Common Areas; (d) To add additional bugdmgs and improvements to the Common Areas; (e) To use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project or any portion theirecl; and (f) To do and perform such other ads and make such other changes m, to or vwth respect to the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate. 3. Term, 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as speed in Paragraph 1.3- 3.2 Early Possesslon. Any pronsion herein graritM Lessee Early Possession of the Premises is subject to and wnd coned upon the Premises being available for such possession prior to the Commencement Date, Any grant of Early Possession only, conveys a na"xiclrsive right to occupy the Premises. If Lessee totally or partially occupies the Premises pnor to the Commencement Date, the obligation to pay fuse Rem shag be abated for the period of such Early Possession. All other terns of this Lease (mcudmg but not bnuted to the obggatons to pay Lessees Share of Common Area Operating Expenses, Real Property Taxes and insurance premiums and to maintain the Premises) shag be in effect during such penod. Any such Early Possession shag not affect the Expuatorh Daze, 3,3- Delay In Possesslon, Lessor agrees to use its best cbnurhercially reasonable efforts to defiver possession of the Premises to Lessee by the Commencement Date- fl, despite said efforts, Lessor is unable to deliver possession try such date. Lessor shag not be subject to arty gabdity therefor, nor shag such failure affect the validity of this Lease or change the Expiration Date. Lessee shag not, however, be obligated to pay Rem or perform its other abfigatons until Lessor delivers possession of the Premises and arty period of rent abatement that Lessee would otherwise have enjoyed shag run tram the date of delivery of possession and continue for a period equal to what Lessee w auk! otherwise have enjoyed raider the terns hereof, but minus any days of delay caused by the acts or omissions of Lessee- If possession is not delivered within 60 days after the Commencement Daze, as the same may be extended under the terms at any Work Letter exercu:ed by Parties, Lessee may. at its option, by notice in wri:mg within 10 days after ft end of s.-h 60 day period. cancel thus Lease. in which event the Panes shag be discharged from all oblig3,iehs hereunder. 11 such wn4en notice is not received by Lessor wittuh said 10 day period, Lessee's right to cancel shag tertnmate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in wrung. 3.4 Lessee Compliance. Lessor shag not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of 'insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shag be requiretl to perform all of ins obb Mims under this Lease from and after the Start Daze, inclludmg the payment of Rent, no(whahsiandirrg Lassoes election to withheld possession it of such eviderca at msuance, Further, if Lessee is required to perform wry other cord Sons prior to or concurrent with the Start Date, e shag omit bm Lessor may elect to witthold possession until such conditions are satisfied. PAGE 3 OF 17 INITIALS INITLALS ®1998 - AIR COMMERC44L REAL ESTATE ASSOCIATION FORM MTC- 17-07114E 2015 -05 -26 Agenda Packet Page 87 4. Rent. 4,1, Rent Defined. AD monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Seamty Deposit) are deemed to be rent ('Rent-). 4.3 Payment Lessee shaft cause payment of Rent to be received by Lessor in LavA. it money of the United Slates, without offset of deduction (except as specifically permitted in this Lease), on or before the day on which it is due. AD monelary amounts shall be rounded to the nearest whole dollar- In the event that arty statement or invoice prepared by Lessor is ¢hacgaate such irmccuracy shag net rnnsLtne a waives and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof whLeh is for less than one kill calendar month shag be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in wntag. Acceptance of a payment which is less than the amount then due shag not be a waiver of Lessors rights to the balance of such Rent, regardless of Lessors endorsement of any check so statatg. In the evert that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for arty reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at as option. may require all future Rent be paid by cashiers check. Payments will be applied Cast to accnmd lava dirges and attorneys fees, second to argued interest, then to Base Rent and Common Area Operating Ei4enses, and any remaining amount to any other rnrtc umfi.g charges or costs. 5- Security DeposlL Lessee shall deposit with Lessor upon execution hereof the Seamy Deposit as security for Lessee's faitltul performance — of its obligations under this Lease. 11 Lessee fags to pay Rent, or otherwise Defaults under this Lease. Lessor may use, apply or retain all or arty portion of said Secunty Deposit for the payment of arty amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liabd+ty, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or arty portion of the Seamy Deposit, Lessee shag within 10 days after ventten request therefor deposit moves with Lessor suf`r ierd to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shag at all times bear the same proportion to the increased Base Rent as the bu= Security Depose Dora to the halal Base RaTL Should the Agreed Use be amended to accommodate a material change in the bus -guess of Lessee or to accommodate a sublessee of assignee. Lessor shag have the right to increase the Security Deposit to the endent necessary, in Lessens reasonable judgment, to account for arty increased wear and tear that the Premises may suffer as a result thereof. If a � ncv ontrol of Lessee oaaas during thus Lease and fogowing such change the fi iarnaal conddicin of Lessee is. n Lessors reasonable judgment, reduced. Lessee shag deposit such additional monies with Lessor as shag be sufficient to cause the Seamy Deposit to be at a reasonable level based on such change In financial condition. Lessor shag not be required to keep the Security Deposit separate from its PAGE 4 OF 17 INITIALS INITIALS 01993 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG- 17 -07114F 2015 -05 -26 Agenda Packet Page 88 general accounts. Within 90 days after the expirauon or termination of this Lease. Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Searnty Deposit shag be considered to be held in trust, to bear interest or to be prepayment for any moroes to be paid by Lessee under this Lease. 6. Use - 6.1 Use. Lessee shag use and occupy the Premises only for the Agreed Use. or any other legal use vAticls approved by the City, which the cty In Its Sole discrctior, dCZ;C=in5 tO be is reasonably comparable thereto. and for rho other purpose. Lessee shag not use or pen, the use of the Premises in a manner that is unlawful. creates damage, wras :e or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other than guide, signal and seeing eye dogs. Lessee shag not keep or allow in the Premises any pets, animals, bards, fish, or reputes. Lessor shag not unreasonably withhold or delay its consent to arty wmhen request far a modification of the Agreed Use, so long as the same will not impair the sbuc>uiral integny of the Buddmg or the mechanical or electrical systems therein, and/or is not signfficanty more burdensome to the Project, If Lessor elects to w:h old consent, Lessor shag wain 7 days after such request give wrinen roWicetim of same, wtuch notice shag include an enplanation of Lessor`s objections to the change in the Agreed Use. 62 Hazardous Substances. (a) Reportable Uses Require Consent The term 'Hazardous Substance' as used in thus Lease shag mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises. is either 0 potentially injurious to the public health. seey or welfare, the environment or the Premises, l7 regulated or monitored by any governmental authonty, or n a basis for potential liability of Lessor to any governmental agency or third party under any applcable statute or common law theory. Hazardous Substances shag include, but not be united lo, hydrocarbons, petroleum, gasoline, and/or crude Uhl or any products, by- products or fractions thereof. Lessee shag not engage in arty activity in or on the Premises which conshtu•es a Reportable Use of Hazardous Substances w0W the express pror wnuen consent of Lessor and limey compliance (at Lessee's expense) with ag Applicable Requirements. "Reportable Use' shall mean n the installation or use of arty above or below ground storage tank, (u) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a pennrt from, or with respect to which a report, notice, registration or business plan is required to be filed with, arty governmental authority, and/or (0) the presence at the Premises of a Hazardous Substance wt:h respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring pmpertres. Notwithstanding the foregoing. Lessee may use arty ordinary and customary materials reasonably required to be used in the normal coarse of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc-) and common household deamng materials, so long as such use is in compfance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to arty liability therefor- In add lion, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect rtselt, the public, the Premises anctlor the environment against damage, contamination, injury and/or liability, indudng, but not limited to, the installation (and removal on or before Lease e)puatian or temanation) of praiective mods irations (such as concrete encasements) and/or increasing the Security Deposit. (b) Duty to Inform Lessor. II Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located n, an, under or about the Premises, other than as previously consented to by Lessor. Lessee shag'anmerfiatey give mitten notice of such fart to Lessor, and provide Lessor wa:h a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. (c) Lessee Remedlation. Lessee shag not cause or permit any Hazardous Substance to be spiked or released in, on, under. or about the Prendse9 (mcluding through the plumbing or sanitary sewer system) and shag prompyy, at Lessees espense,mmply vvO all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended. whether or not formally ordered or requred, for the cleanup of any contamination at. and for the maintenance. seventy and/or monitonng of the Premises or neighbonng properties, that was caused or materially, conbhtnrted to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or Tor Lessee. or any thud party. (d) Lessee Indemnification. Lessee shag indemnify. defend and hold Lessor, its agents. employees, lenders and ground lessor, if any, hamiless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys' and consultants' fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or arty third party (provided, however, that Lessee shag have no liability under this Lease with respect to underground migration of arty Hazardous Substance under the Premises from areas outside of the Project not caused or co=bufed to by Lessee). Lessees otfigau ms shall include, but not be EiNed to, the a eas of any contamination or injury to person, property or the emaronment created or suffered by Lessee. and the cost Of 'investigation, removal, remedialian. restoration and/or abatement and shag survive the expaation or termination of this Lease. No temwauon, cancellation or release agreement entered into by Lessor and Lessee shag release Lessee from its Obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in wrVaig at the time of such agreement (e) Lessor Indemnification. Except as otherwise pmwded in paragraph 8.7. Lessor and its successors and assigns shall Indemnify. defend, recnburso and hold Lessee, its employees and lenders, harmless from and again any and all envronmental damages, including the cost of remedla:ion, which su°ered as a dyed result of }hazardous Substances on the Premises prior to Lessee taking possession or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessors obligations. as and when required by the Applicable Requirements, shag include, but not be United to, the cost of investigation. removal, remedratfon, restoration and/or abatement, end shaft survive the expuabon or temunaton of this Lease. (t) Investigations and Flemedlatlons. Lessor shag retain the responsibility and pay for any cnvesbgrrtions or remediation measures required by governmental entities having jurisdiction with respect to the exdstenee of Hazardous Substances on the Premises prior to Lessee taking possession, unless such remediation measure is required as a result of Lessee's use (nduding'Alterations'. as defined in paragraph 7.3(a) below) of the Premises. in which event Lessee shag be responsible for such payment. Lessee shag coopera :e fully in arty such acbxties at the request of Lessor, ndudng agnwchg Lessor and Lessors agents to have reasonable access to the Premises at reasonable times in order to carry out Lessors nvestigabve and remedial responsibilities. (g) Lessor Termination Option. It a Hazardous Substance Condhtion (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shag make the investtgabon and remediabon thereof required by the Applicable Requirements and this Lease shag continue in fug force and effect but subject to Lessors rights under Paragraph 6 2(d) and Paragraph 13), Lessor may. at Lessors apbon, either 0 irivesti%rte and remedime such Hazardous Substance Conddon. if required, as soon as reasonably possible at Lessors expense, in wtuen event this Lease shag continue in M farce and elect, or (-u) d the estimated cast to remediiate such condom exceeds 12 times the then monthly Base Rent or S100.000, whichever is greater, give written nobca to Lessee, within 30 days after receipt by Lessor of knowledge of the ocarrence of such Hazardous Substance Condition, of Lessors desire to terminale this Lease as of the date 60 days fo0owng the date of such notice. In the event Lessor elects to 9W a temnination notice, Lessee may, win hdn 30 days thereafter, give wntlen notice to Lessor of Lessee's comrntment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amohrd equal to 12 times the fitly Base Rem or St0O,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 Wri PAGE S OF 17 INITIALS INITIALS 01998 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG77 .07114E 2015 -05 -26 Agenda Packet Page 89 days following such cxxrmal ment. In such event, this Lease shag continue in tug force and effect, and Lessor shall proceed to make such remediatxon as soon as reasonably possible alter the required funds we available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided. this Lease shag terminate as of the date specified in Lessors notice of termination 6.3 Lessee's Compllance with Applleable Requirements. Except as othervase provided in this Lease, Lessee shag. at Lessee's safe expense, fully, d2genrly and in a timely manner. materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessors engineers andlor consultants which relate in any manner to such Requirements, without regard to whether said Regraremenis are now in effect or become effectrve after the Start Date- Lessee shag, within 10 days after receipt of Lessors written request, provide Lessor with copies of all pewits and other documents, and other information evidencing Lessee's compilia with stay AppGaWe Requirements specified by Lessor, and shag Immediately upon receipt, notify Lessor in miuN (with copies of any documents bmtved) of arty threatened or actual claim, notice. crtation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply wilh any Applicable Requirements, Likewise, Lessee shag Immediately give mitten notice to Lessor of. (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condman conducive to the produWail of mold; or (a) arty mustiness or other odors that right indicate the presence of mold in the Premises. 64 Inspection; Compliance. Lessor and Lessee's -Lender (as defined in Paragreph 30) and consultants shag have the dghl to enter into Premises at any time, in the rase of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shag be pad by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see Paragraph 9.1) is found to exist at be imminent- or the Inspection is requested or ordered by a governmental authority. In such case, Lessee shag upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In ad ticti, Lessee shag provide copies of all relevant material safety data sheets (MSDS) to Lessor wthi 10 days of the receipt of written request therefor. 7. Maintenance; Repairs; Utlity Installations; Trade Fixtures and Alterations. 7.1 Lessee's Obligations. (a) In General. SuNed to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with Applicable Requremends), 7.2 (Lessors Obligations). 9 (Damage of Destruction), and 14 (Condemnation), Lessee shat at Lessee's safe expense, keep the Premises, Utility Instagatxons (intended for Lessee's exclusive use, no matter where located), and A)teraborns in good order. cordthon and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whe2w or not the deed for such repairs occurs as a result of Lessee's use. any prior use, the elements or the age of such pantion of the Premises), including, but not lonuted m, all equipment or facilities. such as plumbing. HVAC equipment, electrical, righting taelibes, toilers, pressure vessels, ftxbres, In erior watb, interm surfaces of exeeffor xra4s, ceilings. floors, wnrndawws, doors, plate glass, and skyights but ex¢btding any items which are the responsibility of Lessor Pursuant to Paragraph 7.2. Lessee, in keeping the Premises in good order, condition and repair, shag exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee's obigations shag include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order. condition and state of repair. (b) Service Contracts. Lessee shag, at Lessee's sole expense, procure and mauda�n contracts, with copies to Lessor, in customary form and substance for, and mkt contractors specializing and wipeeriencerd fn the maintenance of the following equipment and unprovemenq, if any, d and when installed on the Premises: (j) HVAC equipment. (u) baler and pressure vessels, and (n clarifiers. However. Lessor reserves the nght, upon nonce to Lessee, to procure and rnantain any or all of such service contracts, and Lessee shag reimburse Lessor, upon demand, for the cost thereof. (c) Failure to Perform. If Lessee fails to perform Lessee's obligations Lander this Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior writen notice to Lessee (except in the case of an emergency, an vAich case no notice shall be required), perform such obligations on Lessee's behalf, and put the Premises in good order, condition and repair, and Lessee shag promptly pay to Lessor a sum equal to 115% of the cost thereof. (d) Replacement. Subject to the applicable warranty obliptGone of Lcsh3or eoL forth in paragraph 2.2 and Lessees indemnification of Lessor as set forth in Paragraph 6.7 below, and without relieving Lessee of liability resulting from Lessee's failure to exercise and perform good maintenance practices, if an rem desafted an Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shag be replaced by Lessor. and the cost thereof shag be prorated between the Parties and Lessee shag only be obligated to pay, each month dunng the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of mulbptyng the cost of such replacement by a fraction, the numerator of which is one, and the derwminator of which is 144 (e. 11144th of the Cost per month). Lessee snail pay fnieresl on the unamortized balance but may prepay its obligation at any time. 7.2 Lessors Obl)gatlans. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Common Area Operating Expenses). 6 (Use), 7,1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation). Lessor, subject to reimbursement pursuant to Paragraph 4.2, shag keep in good order, condition and repair me foundations, exterior wags, structural condition of interior bearing wags, exterior root, rue sprinkler system. Common Area fire alarm and/or smoke detection systems, fire hydrants, parking tits, walkways, parkways, driveways, landscaping, fences, signs and triTiy systems serving the Common Areas and all parts thereof, as well as providing the services for which there is a Common Area Operating E purse, pursuant to Paragraph 4,2, Lessor shag not be obigwmd to paint the exterior or interior surfaces of exterior wags nor shag Lessor be obligated to maintain, repair or replace vsrdawws, doors or plate glass of the Premises. Lessee expressly waives the benefit of arry statute raw or herea'er tin effect to the extent it is inconsistent with the terns of this Lease. 7.3 Utility Installations; Trade Fixtures; Alterations. (a) Definitions. The temp 'U41ty installations' refers to all floor and window coverings, air andfor vacuum lines, paver panels, electrical distribution, security and fire protection systems. cormlunKation cabling, fighting fixtures, HVAC equipment, pkanbirg, and fenoarg in w an the Promises. The term 'Trade Fixtures' shag mean Lessee's machinery and equipment that an be removed without doing maten;A damage to the Prer=es. The term " Alteratons- shag mean coy modi5catbn of the improvements, other than tray Installations or Trade FDrnres, whether by addition or deletion, 'Lessee Owned Alterations andlor Utility Installations' are defined as Alterabons andfar Utility Instagatmns made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a)- (b) Consent Lessee shag rtol make any Alterations or Utility Installations to the Premises without Lessors prier wnaen consent Lessee may. however. make non- structural Alterations or Utility Installations to the armor of the Premises (excluding the roof) without such consent but upon nonce to Lessor, as long as they are not visible from the outside, da not uivdve puncturing, relocating or removing the root or any existing walls. wil not ailed the electrical. plumbing. HVAC. ardlor rte safely Systems, and the cumulative cost thereof dhrmg this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum equal to one month's Base Rent in any one year- Notwithstanding the foregoing. Lessee shag not make or peanut any roof penetrations and/or install anything on the met mUxKd the prior written approval of Lessor. Lessor may, as a precondition to granIImg such approval, regime Lessee to utilize a contractor chosen ardlor approved by Lessor. Any Alterations or Utility I that Lessee shag desire to make and which require the consent of the Lessor shag be presented to Lessor in written form with detailed -- - gent shalt be deemed conditioned upon Lessee's- 01 acquiring all applicable governmental pemuts. (u) furnishing Lessor with copies of bath PAGE 6 OF 17 ItaTIALS INITIALS 019M - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG-17 .07114E 2015 -05 -26 Agenda Packet Page 90 the pemtits and the plans and specifications prior to commencement of the work. and (0) compliance with all conditions of said permits and otter Applicable Requirements in a prompt and eapedtious manner. Any Alterations or Utility Installations shag be performed in a workmanlike manner vrtth good and sufficient materials. Lessee shag promptly upon complebon famish Lessor with a&4aL plans and speaficatwns. For wont which costs an anw= in excess of one month's Base Rem, Lessor may cordi: on its consent upon Lessee providing a lien and completion bend in an amard equal to 150% of the estimved cost of such Allerabon or Wily, Installation andlor upon Lessees posting an additional Security Deposit wn Lessor, (c) Liens; Bonds- Lessee shag pay, when due, all claims for labor or materials furnished or alleged to have been banished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materiabnen's Gen against the Premises or any interest therein. Lessee shag give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post routes of non- responsiibt7+ry. If Lessee shag co lest the validity of any, such Gen, can er demand. then Lessee shag, at its sole expense defend and protect itself. Lessor and the Prerruses against the same and shag pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof, II Lessor shag require, Lessee shag furush a surety bond in an amount equal to 150% of the amount of such contested lien. daunt or demand, irdeunrudy'ig Lessor against liability for the same. If Lessor elects to participate in arty such action. Lessee shag pay Lessor's atomeys' fees and costs. 7.4 Ownership; Removal; Surrender, and Restoration. (a) Ownership. Subject to Lessors right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Instigalons made by Lessee shag be the property, of Lessee, but considered a part of the Premises. Lessor may. at arty time, elect in writing to be the owner of all or arty specirmd part of the Lessee Owned ARerallons and Utility Installations. Unless othermse i nsm;cted per paragraph 7.4(b) hereof. all Lessee Owned Alterations and Utility Installati ins shag, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises. (b) Removal. By delivery to Lessee of wn. ".en notice from Lesser not earler than 90 and not later than 30 days prior to the end of the term of this Lease. Lessor may require that arty of all Lessee Owned Alterations or Ut7ity Installations be removed by the expiration or termination of this Lease- Lessor may require the removal at arty time of all or any part of any Lessee Owned Aterations or Utility Installaxns made without the required consent. (c) Surrender, Restoration. Lessee shag surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom dean and free of debris, and in good operating order, condition and state of repair. ordinary wear and tear excepted. *Ordimary wear and tear shag not include arty damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, d this Lease is for 12 months or less, then Lessee shag surrender the Premises In the same condition as delivered to Lessee an the Start Date with NO allovainc a for ordinary wear and Lear. Lessee shag repair any damage occasioned by the Installation, mairdenance or removal of Trade Fixtures, Lessee awned Alterations and/or LVA:y Instigations. furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shag also remove tram the Premises arty and all Hazardous Substances tK W4 tide the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises) to the level specified in Applicable Requirements. Trade Fixtures shag remain the property of Lessee and shag be removed try Lessee. Any personal property of Lessee not removed on or before the Expiration Date or arty earlier lerminatwn data shag be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The farb by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) wnthoum the egress written consent of Lessor shag consbhfe a holdover under the previsions of Paragraph 26 below. a. Insurance; Indemnity. 8.1 Payment of Premium Increases. (a) As used herein, the term - Insurance Cost Increase- is defined as any irtuease in the actual cost of the insurance applicable to the Bugdrg anther the Project and requred to be earned try Lessor, pursuant to Paragraphs 8.2(b). 8.3(a) and 8.3(b), over and above the Base Premium, as hereinafter defined, calculated on an annual basis. Insurance Cast Increase shag brdude, but not be limited to. requirements of the holder of a mortgage or deed of trust covering the Prerrises, Bulding and/or Project- 'increased valuation of the Premises. Buk mg and/or Project, and/or a general premium rate umaease. The term Insurance Cost Increase shag not, however, inctiMe any premium increases resulting from the rtanre of the occupancy of any other tenant of tie Building. The 'Base Premium' shag be the annual premium applicable to the 12 month period immedtately preceding the Start Date. If, however, the Protect was not insured for the entirely of such 12 month period, then the Base Premium shall be the lowest annual premium reasonably obtainable for the Required Insurance as of the Start Date. assuming the most nominal use possible of the Building. In no event. however, shag Lessee be responsible for any portion of the premium cost an lnrtahre to bability insurance coverage in excess of &2,000,000 procured under Paragraph 8.2(b). (b) Lessee shag pay arty Insurance Cost Increase to Lessor pursuant to Paragraph 4,2. Premiums for policy periods commencing prior to. or erdendrng beyond, the term of this Lease shag be prorated to coincide with the corresponding Start Date or Expiration Date. 8.2 Liability Insurance. (a) Carried by Lessee_ Lessee shag obtain and keep in farce a Commercial General Liability policy of insurance protedmg Lessee and Lessor as an additic mil insured against darns for bodily injury. Personal ¢injury and property damage based upon or ansing out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such Insurance shag be on an occurrence basis provdog single fmnit coverage in an amount not less than 51,000,000 per occurrence with an annual aggregate of not less than 52,000,000. Lessee shag add Lessor as an add, one/ insured by means of an endarsemerd at bast as broad as the Insurance Service Organizatioris'Addamnal Insured- Managers or Lessors of Premises' Endorsement The policy shag not eordem any otlra-irtsured exclusions as between 'insured persons or organizations. but shag include coverage for liabAty assumed under this Lease as an 'insured contract' for the performance of Lessees indemnity obligations under this Lease. The limits of said insurance shag rot, however, tiruL the labgily of Lessee nor relieve Lessee of any obligatxn hereunder. Lessee shag provide an endorsement an its liability pofcy{es) which provides that ds insurance shag be primary to and not contributory with any similar insurance carried by Lessor. whose insurance shall be considered excess insurance only - (b) Carried by Lessor. Lessor shag maintain tab lity Insurance as described in Paragraph 8.2(a). in addi]an to, and not in lieu of. Me Insurance required to be maintained by Lessee- Lessee shat not be named as an additional insured tureen. Le66or shall have Lhe right to 9e f insure for these coverage6. 8.3 Property Insurance - Building, Improvements and Rental Value. (a) Building and Improvements. Lessor shag obtain and keep in farce a policy or policies of insurance in the name of Lessor, with loss payable to Lessor. any ground - lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shag be equal to the fug insurable replacement cost of the Premises, as the same shag east from time to tine, or Lhe erovnt required by any Lender, but in no event more than the eommereaQy, reasonable and ava3able Insurable value thereof. Lessee Owned Atteratims. end Utility Installations, Trade Fixtures, and Lessee's personal property shag be insured by Lessee not by Lessor. If the coverage a available and commercially appropriate. such policy or policies shag insure against all risks of direct physical loss or damage (except the perils of good and/or earthquake unless required by a Lender), W for debris removal and the enforcement of arty Applicable Requirements requarmg the upgrading, demcd:jon, recensbucthon or _ - of eery potion of the Premises as the result of a covered loss. Said policy or polices shag also contain an agreed valuation provision in PAGE 7 OF 17 INITIALS INITIALS C"998 • AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG77 -07114E 2015 -05 -26 Agenda Packet Page 91 lieu of any Coinsurance dause, waiver of subrogation, and inflation guard protection causing an increase in the annual property hs,raince coverage amourd by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deducible clause. the deductMe amount shall not exceed 55,000 per occurrence. (b) Rental Value. Lessor shall also obtain en4 keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, umunng the loss of the fug Rent for one year with an exeended period of indemnity for an additional 180 days ('Rental Value insurance'). Said insurance shag contain an agreed vahw" provision in Iieu of any coinsurance clause. and the amount of coverage shag be a*sted annually to reflect the projected Rent otherwise payable try Lessee, for the next t2 marsh period. (c) Adjacent Premises Lessee shag pay for arty inmase in the premiums for the property insurance of the Building and for the Common Areas or other btrld"ahgs in the Project d said increase is caused by Lessee's ads. omissions, use or occupancy of the Premtses- (d) Lessee's Improvements Since Lessor is the Insuring Party, Lessor shag not be required to insure Lessee Owned Alterations and Utl:y Installations unless the item in question has become the property of Lessor under the terms of this Lease - 8A Lessee's Property, Business Interruption Insurance; Workers Compensation Insurance. (a) Property Damage. Lessee shag obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fbdures. and Lessee Owned Alterations and ULLty Installations. Such insurance shag be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from arty such insurance shag be used by Lessee for the replacement of personal property, Trade Fbdures and Lessee Owned Alterations and U:luty Installations, (b) Business Interruption. Lessee shag obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or Mired toss of earnings ati nbutable to all penis commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such peels. (c) Worker's Compensation Insurance. Lessee shag obtain and maintain Workers Compensaborn Insurance in such amount as may be requred by Applicable Requirements. Such policy shag include a Waiver of Subrogation' endorsement- Lessee shag provide Lessor wrath a copy of such endorsement along with the cemfrcate of insurance or copy of the policy required by paragraph 8.5. (d) No Representation of Adequate Coverage. Lessor makes no representation Shat the limits or forms of coverage of insurance specified herein are adequate to cover Lessee's property, business operations of obligations under this Lease, 8.5 insurance Policies. Insurance required herein shag be by companies maintaining during the policy term a'General Policyholders Rasing of at least A, VII, as set forth in the most current issue of 'Best's Insurance Guide-. or such other rating as may be required by a Lender. Lessee shag not do or permit to be done anything which 'invalidates the required insurance policies. Lessee shag, prior to the Star) Date, dealer to Lessor certified copies of policies of such insurance or cemlicales with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such policy shag be cancelable or subject to mod. matmon except after 30 days poor wntten notice to Lessor, Lessee shag, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or insurance binders' evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, wench amount shag be payable by Lessee to Lessor upon demand. Such polices shag be for a term of at least one year, or the length of the remaining term of this Lease. whichever is less. II either Party shag fad to procure and maintain the insurance regtered to be carried by it, the other Party may, but shag not be required to, procure and maintain the same, 8.6 Waiver of Subrogation. Without affecting arty other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the penis required to be insured against herein. The effect of such releases and waivers is not limited by the annuu m of insurance carried or required, or by any deductibles applicable hereto. The Parbes agree to have their respective property damage insurance carriers vwarve any right to subrogabon that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is net invalidated thereby. 8.7 Indemnity. Except for Lessors gross negligence or YMM misconduct, Lessee shag indemnify, protein, defend and told harmless the Premises, Lessor and as agents, Lessors master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages W personal or property, liens, judgments, penalties. attorneys and consultants' fees, expenses and/or liabilities ansing out oL involving. or in connecuon with, the use and/or occupancy of the Premises by Lessee. It arty action or proceeding is brought against Lessor by reason of any of the foregoing mailers. Lessee shag upon notice defend the same at Lessee's expense by cotrnseJ reasonaby satafardCry to Lessor and Lessor shag cooperate with Lessee in such defense. Lessor need not have rust paid any such darn in order to be defended or indemni5ed- 8.8 Exemption of Lessor and Its Agents trom Liability. Notwhihstandung the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its agents shag be liable under any circumstances for. (ij injury or damage to the person or goods, wares, merchandise or other properly of Lessee. Lessees employees, contactors, Invitees, customers, or arty other person in or about the Premises, whether such damage a w ry is caused by or results s tram fire, steam, electricity, gas, water or rain, indoor & quality, the presence of mold or tram the breakage, leakage. obsauction or other defects of pipes, two sprinklers. wires, appliances, phurbing, HVAC or lighting fixtures, or from arty other cause, whether the said Qyury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places, a any damages arising from any aid or neglect of any other tenard of Lessor or tram the failure of Lessor or its agents to enforce the provisions of arty other lease in the Project, or (i7 b*ry to Lessee's business or for any loss of incomes or profit therefrom- Instead, a is i herded that Lessee's sole recourse in the event of such damages or injury be to file a darn an the insurance poWies) that Lessee is required to maintain pursuant to the provisions of paragraph 8- 8.9 Failure to Provide Insurance. Lessee acknowledges that arty falure on its pan to obtain at maintain the instirenee required herein will expose Lessor to risks and potentially cause Lessor to incur costs M contemplated by this Lease, the extent of which will be extremely cl_` cull to ascertan Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance an for does not provide Lessor with the required binders or certificates evhdenciing the existence of the required insurance. the Base Rent shall be automaliagp rased. without any requirement for rabce to Lessee, by an amount equal to 10% of the then enstung Base Rent or $100. whichever is greaser. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional nsklcosis that Lessor will inew by reason of Lessee's failure to marntauh the required irsnrance. Such increase in Base Rent shag in no event constitute a waiver of Lessees Default or Breach wYh respect to the fail re to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of rls obligation to maintain the insurance specified in this Lease. 9- Damage or Destruction. 9.1 Definitions. (a) 'Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Oe.;ned Alterations and VdE:y Installations, which can reasonably be repaired in 3 months or less from the date of the damage or destucion, and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the dale of the damage or desbthction as to whether or not the damage is Partial or Tatat. (b) -Premises Total Destnuctlon' shaft mean damage or destruction to the improvements on the Premises, other than Lessee DVO,5 %.atnons and Utility Installations and Trade Fodures. which cannot reasonably be repaired in 3 months or less from the date of the damage or d/or the cost thereof exceeds a sum equal to 6 month's Base Rent Lessor shag notily Lessee in writing within 30 days horn the date of PAGE B OF 17 INITIALS INITIALS 01993 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG17 .07114E 2015 -05 -26 Agenda Packet Page 92 the damage or destruction as to whether or not the damage is Partial or Total. (c) "Insured Loss' shat) mean damage or destruction to improvements on the Premises, otter than Lessee Owned Altera mns and Liti3ty Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 6,3(a), irrespective of any deductible amounts or coverage louts involved. (d) - Replacement Cosy shy! mean the cost to repay or rebuild the improvements owned by Lessor at the =a of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrad'atg required by the operation of Applicable Requirements, and without deduction for depreciation. (e) - Hazardous Substance Condition" shall mean the occurrence or discovery of a cord +Lon involving the presence of, or a contamination by, a Hazardous Substance, in, on, or under the Premises which requires restoration. 9.2 Partial Damage • Insured Loss If a Premises Partial Damage that is an Insured Lass occurs. then Lessor shag. at Lessors expense, repair such damage (but not Lessees Trade Fbct res of Lessee Owned fJterations and Utbty Installations) as soon as reasonably possible and this lease shag continue in hill lome and e°ect; provided. however, that lessee shag. at Lessors election. make the repar of arty damage or destruction the total cost to repair of which is 510,000 or less, and, in such event, Lessor shall make arty applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwtthstarding the foregoing, d the requited insurance was not in form or the Grimm. nee proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contnbtte the shortage in proceeds as and when required to complete said repairs. In the event, however, such shortage was due to the tact that, by reason of the unique nature of the improvements, fug replacement cost insurance coverage was not commercially reasonable and available, Lessor shag have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, cr adequate assurance thereof, within 10 days following receipt of written mace of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof withuh said 10 day period, the parry responsihte for making the repairs shall complete them as soon as reasonably possible and this Lease shag remain to full force and effect. if such funds or assurance are not received. Lessor may nevertheless elect by written notice to Lessee within 10 days thereater to: (I) make such restoration and repay as is commercially reasonable with Lessor paying any shortage in proceeds, in which rase this Lease shag remain in tug force and effect, or (5) have this Lease terminate 30 days thereafter. Lessee shag not be enbted to reimbursement of any funds contributed by Lessee to repay arty such damage or destruction. Premises Partial Damage due to flood or earthquake shag be subject to Paragraph 9.3, nmtwi:hstandung that there may be some insurance coverage, but the net proceeds of any such insurance shag be made available for the repairs it made by ether Parry. 9.3 Partial Damage - Uninsured Loss, If a Premises Partial Damage that is not an trnstred Loss occurs. unless caused by a negligent or willful act of Lessee (in which event Lessee shag make the repairs at Lessee's expense), Lessor may either. (i) repair such damage as soon as reasonably possible at Lessors expense (subject to reimbursement pursuant to Paragraph 4.2). in which event this Lease shag continue in fug IDrce and effect, or (o7 temninam this Lease by giving wnften notice to Lessee within 30 days eer receipt by lessor of knowledge of titre occurrence of such damage. Such terrrunatmn shag be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shag have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shag provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such comirotment In such event this Lease shag continue in full force and e`ed. and Lessor shag proceed to make such repairs as soon as reasorhably possible after the required funds are available. ff Lessee does not make the required commitment, this Lease shag terminate as of the date specilled in the termination notice. 9.4 Total Destruction. Nolwnthstardung arty other provision hereof, d a Premises Total Desttudion orris, this Lease shag terminate 60 days following such Destruction, If Ina damage or destruction was caused by the grass negligence or wCul misconduct of Lessee. Lessor shall have the right to recover Lessors damages from Lessee, except as provided in Paragraph a 6. 9.5 Damage Near End of Term. 11 at any time during the last 6 months of this Lease there is damage for Mich the cost to repair exceeds one month's base Rent, whether or not an Insured Loss, Lessor may lemmrnate this Lease ef:ecuve 60 days following the date of occurrence of such damage by giving a written termination notice to lessee within 30 days after the date of occurrence of such damage- Noiwthstandmg the foregoing. d Lessee at that time has an exercisable option to extend this Lease m to purchase the Premises, then Lessee may preserve this Lease by. (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereon) needed to make the repass on or before the earlier of () the date which is 10 days alter Lessee's receipt of Lessors walten notice ptrporLng 10 terminate this Lease, or n the day prior to the date upon which such option expires. If Lessee duty exercises such option during such period and provides lessor voth funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's cammercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shag continue in fug force and effect. If Lessee fails to exercise such option and provide such funds or essuranice during such period. then this Lease shag terminate an the dale specified in the termination notice and Lessees option shag be exrun guished. 9.6 Abatement of Rent; Lessee's Remedies. (a) Abatement. In the ever of Premises Partial Damage or Premises Total Oestrudton or a Hazardous Substance Condhtton for watch Lessee is not responsible under this Lease. the Rent payable by Lessee for the period required for the repair, remedhation or restoration of such damage shag be abated rn proportion to the degree to which Lessee's use of the Premises is unpaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shag be performed by Lessee, and Lessor shag have no liability for any such damage, destruction, remedxaton, repair or restoration except as provided herein. (b) Remedies. If Lessor is obligated to repair or restore the Premises and does not commence, in a subsrarcrat and meaningful way, such repair of restoration within 90 days after such obligation shag accrue, Lessee may, at any lane prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has aural notice, of Lessee's election to temhina•.e this Lease on a dye not less than 60 days fallowing the giving of such rta'rce- If Lessee gives such notice and such repay of restoration is not commenced within 30 days thereafter, this Lease shag temnnnate as of the date speciMed in said notice. if the repair or restoration is commenced within such 30 days, this Lease shag continue in fug force and effect. 'Commence' shag mean either the uncond.tional authorization of the preparation of the required plans, or the beginning of the actual wok on the Premises, whichever first occurs. 9.7 Termination; Advance Payments Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph S. an equAlable atflnstmeni shag be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall. in addition, return to Lessee so much of Lessees Seciinly Deposit as has not been, or is not then required to be, used by lessor. 10. Real Property Taxes. 10.1 Definitions. la) "Real Property Taxes' As used herein, the term "Real Property Taxes' shag include any form of assessment; real estate, general, special, ordinary or cAraordmary, or rental levy or tax (ather than cnhentance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equntable interest of Lessor in the Project, Lessor's right to other income therefrom, and/or ! siness of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Project where the proceeds so generated are to be applied by the city, county or other local taxing authority of a prnsd=on within which the ed. The term 'Real Property Taxes' shag also include any tax, fee, levy, assessment or charge, or any increase therein. W imposed by PAGE 9 OF 17 INI TILLS INITIALS 01998 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG-17 .07114E 2015 -05 -26 Agenda Packet Page 93 reason of events occurring during the term of this Lease, including bul not limited to, a change in the ownership of the Project, n a change on the improvements thereon, andlor (in) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to Ous Lease. (b) "Base Real Property Taxes.' As used herein, the term "Base Real Property Taxes- shag be the amount of Real Property Taxes, which are assessed against the Premises, Building, Project or Common Areas in the calendar year during which the Lease is executed. In calculating Real Property Taxes for any calendar year, the Real Property Taxes for arry real estate tax year shag be nduuded in the wkufation of Real Property Taxes fm such calendar year based upon the number of days which such calendar year and tax year have m common. 10,2 Payment of Taxes. Except as othervrhse provided in Paragraph 10.3, Lessor shat pay the Real Property Taxes applicable to the Project. and said payments shag be included in the ealeilatron of Common Area Operating Expenses in accordance with the promsimu of Paragraph 4.2. 10.3 Additional Improvements. Common Area Operating Expenses shag not include Real Property Taxes specified in the tax assessor's records and work sheets as being caused by additional improvements placed upon the Project by other tenants or by Lesser for the exclusive eryoyment of such other Tenants. Notwithstanding Paragraph 10.2 hereof, Lessee shag. however, pay to Lessor at the time Common Area Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes if assessed safely by reason of Alterations, Trade Fixtures or Utility Instagabons placed upon the Premises by Lessee or of Lessee's request or by reason of any aherations or improvements to the Premises made by Lessor subsequent to the execution of this Lease by the Parties. 10.4 Joint Assessment If the Building ng is not separately assessed, Real Property Taxes allocated to the Budding shag be an equitable proportion of the Real Property Taxes for all of the tend and improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available. Lessors reasonable determination thereof, in good lailh, shag be contusive. 10,5 Personal Property Taxes. Lessee Shag pay prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations and Utility Insta ta,fons, Trade Fixtures, f nnishuhgs, equ Ipmem and all personal property of Lessee contained in the Premises. When possible. Lessee shag cause his Lessee Owned Alterations and U:dity Installations, Trade Fixtures. furnishings, equipment and all Other personal property to be assessed and bfied separately from the real property of Lessor. If any of Lessees said property shag be assessed with Lessors real property, Lessee shall pay Lessor the taxes attributable to Lessee's property wuftin 10 days after receipt of a written statement setting forth the taxes appbcebte to Lessee's property. If. Utilities and Services. Lessee shag pay for all water, gas, heat, fight, power, telephone, trash disposal and other utMfies and services suppled to the Premises, together with any taxes thereon. If any such serW4 are not 5eparatdy metered or billed to Les See, Lessee shall pay a prorate Share (based on the square footage of the prcmiSas compared to tfhe total building Square footage) of all charges jointly metered or bafad. Notwithstanding the provisions of Paragraph 4.2, d at any time in Lessor's safe )vtlgmem. Lessor determines that Lessee is using a disproponwriate amount of water, electricity or other commonly metered wA ies, or that Lessee is generatahg such a large v*sme of trash as to reuse an increase in the size of the trash receptacle ardlor an increase in the number of times per month that it is emptied, then Lessor may increase Lessees Base Rem by an amount equal to such increased costs. There shag be no abatement of Rent and Lessor shag not be Gable in ary respect whatsoever for the inadequacy, stoppage, interruplion or discontinuance of any utility or service due to riot, stoke, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or daedhans. 12. Assignment and Subletting. 12.1 Lassoes Consent Required. (a) Lessee shag not voluntarily or by operation of taw assign, transfer, mortgage or encumber (eoleaively. "assign or assignment') or sublet all or any part of Lessee's interest in this Lease of in the Premises without Lessees prior written consem. (b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The transfer. on a curnulaUw basis. of 25% of more of the voting control of Lessee shag constitute a change in control for this purpose. (c) The imnbvemeni of Lessee or its assets in arty transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buy -out or otherwise), whether or not a formal assignment or hypothecation at this Lease or Lessee's assets occurs, which results or will result use a reduction of the Net Worth of Lessee by an amourd greater than 25% of such Net Worth as it was represented at the time of the execution of U= Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions consi itng such reduction, whichever was or is greaser. shag be considered an assignment of this Lease to which Lessor may withhold its consent. 'Net Worth of Lessee' shag mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. (d) An assignment or subletting wnttout consent shag, at Lessor's option. be a Default curable after notice per Paragraph 13.1(d), or a nonctrable Breach wtlwut the necessity of ary motion and grace period. If Lessor elects to treat such unapproved assignment or subletting as a rwnwrable Breach. Lesser may either, 0 lermira:e this Lease. or n upon 30 days written nouce, unaease the mon:2* Base Rent to I I D% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i7 the purchase price of any Option to purchase the Premises held by Lessee shag be subject to similar adjustment to 110% of the price previously in effect, and (u-) all feed and non -fixed rental adjustments scheduled during the remainder of the Lease term shag be increased to 110% of the scheduled adjusted rem. (f) Lessor may reasonably withhold consent to a proposed assignment or subletting d Lessee is in Default at the tame consent is requested. (g) Notwithstanding the foregoing. allowing a de minims patron of the Premises. ie. 20 square feet or less, to be used by a dard party vendor in connection with the installation of a vending machine or payphone shag not constitute a sublet ins 12.2 Terms and Conditions Applicable to Assignment and Subletting. (a) Regardless of Lessors consent, no assignment or Subletting shag : (i) be effecive m'.ftoul the express written assumption by such assignee or subtessee of the obligations of Lessee under thus Lease, (ii) release Lessee of arty obligations hereunder, or nia altar the primary liability of Lessee for the payment of Rent or for the pertomhance of any Other obligations to be performed by Lessee. (b) Lessor may accept Rent or performance of Lessee's obligations from arty person other than Lessee pending approval or disapproval of an assigmmem. Neither a delay in trio approval or disapproval of such assignment nor the acceptance of Rent or p—foin once Shea cons tune a waiver or estoppel of Lessors right to exercise its remedies for Lessee's Default or Breach. (c) Lessors consent to any assigrunent or subletting shag not constitute a consent to any subsequent assignmerm or subletting. (d) In the event of any Defauh or Breach by Lessee. Lessor may proceed directly against Lessee, any Guaran :ors or anyone else responsible for the performance of Lessee's obligations under this Lease, inclrdmg any assignee or sublessee, wnllhout rust exhausting Lessors remedies against arty other person or entity responsible therefor to Lessor, or any sec my held by Lessor. (e) Each request for consent to an assignment or subletting shall be it writing. accompanied by information relevant to Lessees reign as to the fuharnaal and ope a:ional responsibility and appropeaeness of the proposed assignee or sublessee, including but not "zed to i use andlor required modi5ralxm W the Premises, d arty, together W: h a fee of 5500 as consideration tar Lessor's considering and MW IF 10 OF 17 INITIALS INITIALS ®1993 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTC-17 -07114E 2015 -05 -26 Agenda Packet Page 94 processing said request. Lessee agrees to provide Lessor with such other or additional informatmn andlor documentation as may be reasonably requested. (See also Paragraph 36) (1) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, emernng into such sublease, or erkerimg into possession of the Premises or any portion thereof. be deemed to have assumed and agreed to cnnLOrm and corn* with each and every term. Covenant, condition and obligation her ein to be observed or performed by Lessee during the term of said assignment or sublease, other than such Obligations as are contrary to or inconsistent with provisions of an ass)griment or sublease to which Lessor has specifically consented to in vetting. (g) Lessor's consent to any assignment or subleCM shall not transfer to the assignee or sublessee any Option granted to the original Lessee try this Lease unless such transfer is spectrrally consented to by Lessor in writing. (See Paragraph 39.2) 12.3 Additional Terms and Conditions Applicable to Subletting. The folovnng terms and condLhons shag apply to any subletting by Lessee of all or any pan of the Premises and shag be deemed included in all subleases under this Lease whether or not expressly incorporated therein: (a) Lessee hereby assigns and transfers to Lessor ag of Lessee's interest in all Rent payable an any sublease, and Lessor may collect such Rent and apply same toward Lessee's obligations under this Lease: provided, however, that unit a Breach shall occur in the performance of Lessee's obligations. Lessee may collect said Rent In the event that the amount collected by Lessor exceeds Lessee's then outstanding obtgatons any such excess shag be refunded to Lessee. Lessor shat not. by reason Of the foregoing or any assignment of such sublease, not by reason of the collection of Rem, be deemed liable to the sublessee for any failure of Lessee to perform and comply with arty of Lessee's obfigations to such sublessee. Lessee hereby Irrevocably authorizes and duets airy such sublessee, upon receipt of a wnnen notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor ag Rent due and to became due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor wtthoui arty obligation or right to vhquiM as to whether Such Breach exists, notwithstanding any datum from Lessee to the contrary. (b) In the event O1 a Breach by Lessee, Lessor may, at its option, require sublessee to arom to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to lire expiration of such sublease, provided. however, Lessor shag not be fable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for arty prior Defaults or Breaches of such sublessor. (c) Any mailer requiring the consent Of the sublessor under a sublease shag also require the consent of Lessor. (d) No sublessee shag further assign or sublet all at any part of the Premises without Lessors prior written consent. (e) Lessor shag delver a copy of any notice of Defame or Breach by Lessee to the sublessee, who shag have the right to ate the Defaill of Lessee within the grace period, if arty, specMed in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cued by the sublessee. 13. Default; Breach; Remedies, 13.1 Default: Breach. A 'Default' is defimed as a failure by the Lessee to campy with or perform arty of the terms, covenants, cord.nans or Rules and Regulations under this Lease. A "Breach' is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default w itKiih any applicable grad period (a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of seamy, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize Wenflal vandalism (b) The fau3ae of Lessee to make any payment Of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to f lfdl any obligation under this Lease which endangers or threatens We or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSORS RIGHT TO RECOVER POSSESSION OF THE PREMISES. (c) The faire of Lessee to allow Lessor andfor its agents amass to the Premises or the commissOn of waste, act or acts const;heang pubic or prorate nuisance, andlor an regal activuy on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity a second ume then, the Lessor may elect to beat such conduct as a non-curable Breach rather than a Default. (d) The failure by Lessee to provide () reasonable written evidence of compliance with Applicable Requirements, () the service contacts, (m7 the rescission of an unauthorized assignment or SulleCing, (m) an Estoppel Ceri.acale or financial statements, (v) a requested subordination, (v) evidence coneerning any guaranty andlor Guarantor, (vi) any document requested under Paragraph 41, (vm material data safely sheets (MSDS), at (aq any other documentation or inlormatron which Lessor may reasonably require of Lessee antler the terns of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee. (e) A Defamll try Lessee as to the terms, covenants, cod:hons or provisions of this Lease, or of the ales adopted under Paragraph 2.9 hereof, other than Nose described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues far a period of 30 days after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its are, then d shag amt be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter dilgengy prosecutes such ace to completion, (f) The occurrence of arty of the followwing events- 0i the making of any general arrangement or assignment for the benefit of creditors; (i- becoming a - debtor' as defused in 11 U.S,C. 1 101 or arty wore =ssor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60 days), (w`) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease. where possession is not restored to Lessee within 30 days: or fiv) the attachment exeatiom or other judtaai seizure of substantially all of Lessee's assets located at the Premises at of Lessee's interest in this Lease, where such seizar is not discharged within 30 days: provided. however, in the event Nal any provision of this subparagraph is contrary to any appgcable law. such provision shall be of no truce or effect, and not affect the validity of the remaining provisions. (g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially fatsa. (h) If the performance Of Lessee's obligations under this Lease is guereriteed: [) the death of a Guarantor, (7 the termination of a Guarantors liability wrath respect to Nis Lease other than N accordance wlh the terms of such guaranty, (w—) a Guarantors becoming insolvent or the subject of a bankruptcy filing. (hr) a Guarantor's refusal to honor the guaranty, or (v) a Guarantors breach of its guaranty obligation on an anbcipatory basis, and Lessee's failure, within 60 days following written notice of any such event, to provide written alternative assurance or seamty, h:h-ch, % %lien coupled with the then exist rig resources of Lessee. equals or exceeds the combined f u ,mil resources of Les: ee and the Guarantors that existed at the Lane of execYton of this Lease. 13.2 Remedies. If Lessee fags to perform any of its at5rmatrve duties or obligations, within 10 days after written notice (or in case of an emergency, without notice). Lessor may, at its opbon, perform such duty or obligation on Lessee's beha8, including but not rLrmied to the obtaining of y required bonds, insurance pobaes, or governmental licenses, pemum or approvals. Lessee shag pay to Lessor an amrwm equal to 1159E of rid expenses incurred by Lesser in such performance upon receipt of an mwite therefor. In the event of a Breach. Lessor may, with or PAGE 11 OF 17 INrnALS INITIALS ®1998 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG- 17 -07114E 2015 -05 -26 Agenda Packet Page 95 whthoud further notice or demand, and without Limiting Lessor in the ex enzise of any right or remedy which Lessor may have by reason of such Breach: (a) Terminate Lessee's right to possession of the Premises by any lawful means, in which rase this Luse shall tenmir=e and Lessee shag immediately surrender possession to Lessor. In such event Lessor shag be entailed to recover from Lessee: Cj the unpaid Rent which had been earned at the time of termination; a the worth at the Lime of award of the amount by which the unpaid rent which would have been earned after tenrruratian until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (m') the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss Lhat the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor tat all the detriment pro*rLrey caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary cause of things would be likely to result therefrom, including but not limited to the cost of recovenng possession of the Premises, expenses of reletLng. including necessary renovmabon and alteration of the Premises, reasonable atiomeys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to on provision n of the immediately preceding sentence shall be computed by discrnrntarg such amount at the discount We of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts try Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessors right to recover any damages W which Lessor is othermnse entitled. If Lerninaton of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shag have the right to recover in such proceeding any unpaid Rent and darnages as are recoverable therein, or Lessor may reserve the right to recover all or any pan thereof in a separate swL 11 a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit. or to perform or quit given to Lessee urtder the unlawful detainer statute shag also constitute the mortice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shag run concumenty, and the failure of Lessee to cure the Default within the greater of the two such grata periods shag conshhhte troth an unlawful detainer and a &each of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute. (b) Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due, in which evert Lessee may sublet or assign, subject orgy to reasonable firvtmions. Acts of maintenance, e°orts to retet and/or the appoinbnent of a receiver to protect the Lessors interests, shall not constitute a termination of the Lessees right to possession. (c) Pursue any other remedy now or herratter available under the laws or judicial decisions of the state therein Lie Premises are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shag not relieve Lessee from liability under arty indemnity provisions of this Lease as to matters occurring or ac truing during the term hereof or by reason of Lessee's occupancy of the Promises. 13.3 Inducement Recapture. Any agreement for free or abated read or other charges, or for the giving or paying by Lessor to or for Lessee of any cash or other borrus, inducement or considerarian for Lessee's emfermg inn this Lease, all of which concessions are hereinafter referred to as -inducement Provisions -. shag be deemed oardwoned upon Lessee's furl) and feittdnd performance of all of the terms, covenants and conditions of this Lease. Upon Breach of Nis Lease by Lessee, arty such Inducement Provision shag automatically be deemed deleted from this Lease and of no further farce or effect, and any rent, other charge. bonus, inducement or consideration theretofore abated. given or paid by Lessor under such an Inducement Provision shag be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent are of said Breach by Lessee. The acceptance try Lessor of rent or the cure of the Breach which Initiated the operation of this paragraph shag not be deemed a waiver by Lessor of the provisions of this paragraph unless specdrcegy, so stated in writing by Lessor at the time of such acceptance. 13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent wa cause Lessor to Incur costs not contemplated try this Lease, the exact amount of winch wL1 be extremely d.45cult to ascertain. Such costs include, but are not limited lo, processing and acoountrg charges, and late charges which may be "unposed upon Lessor by any Lender. Accordingly, if any Rent shag not be received by Lessor within 5 days after such amount shag be due, then, vd:hout arty requirement for notice to Lessee. Lessee shag immediately pay to Lessor a one-time We charge equal to 4= 51 of each such overdue arnouml or S100, whichever ever is greater. The parties hereby agree Nil such Lase charge represents a fair and reasonable estamte of the costs Lessor will incur by reason of such [ale payment Acceptance of such late charge by Lessor shall in no eves conslaute a waiver of Lessee's Default or Breach with respect to such overdue amount nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder. whether Of not Collected, for 3 consecutive mstaltments of Base Rent, then notwithstanding any provision of Nis Lease to the con=". Base Rent shag at Lessors option, become due and payable quarterly in advance. 13.5 Interest Arty monetary payment due Lessor hereunder, other than We charges, not removed by Lessor, vAren due shag bear interest from the 31 st day after it was due. The Lnterest ('Intemsr) charged shag be computed at the rate of t t1% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential lase charge provided for in Paragraph 13.4, 13.6 Breach by Lessor. (a) Notice of Breach. Lessor shag not be deemed in breach of this Lease unless Lessor tags within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph. a reasonable time shag in no event be less than 30 days after receipt by Lessor, and ary Lender whose name and address shag have been huriVhed to Lessee in venting for such purpose, of written notice speaying wherein such obligation of Lessor has not been performed: provided, however, that if the nature of Lessors obligation is such that more than 30 days are reasonably required for his performance, then Lessor shag not be in breach it perk mnance is commenced wilhin such 30 day penod and Nemager d3genty pursued to completion. - (b) Performance by Lessee an Behalf of LOSSOr, to the event that neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or d having commenced said are they do not d3gen0y pursue it to completion, then Lessee may elect to cue said breach at Lessee's expense and of7sel from Rent the actual and reasonable cost to perform such cure, provided however, that such offset shag not exceed an amount equal to the greater of one month's Base Rent or the Secvnty Oeposht. reserving Lessee's right to reimbursement from Lessor for any such expense in excess of such offset. Lessee shag doernent the cost of said tae and supply said dommentatmn to Lessw. 14. Condemnation. It the Premises or any portion thereof are taken under the power of eminent domain or said wrier the threat of the exercise of said power (coeectivey -Condemnation'), this Lease shag terminate as to the part taken as Of the dare the condemning authonty takes L le or possession. whichever first occrs. - If more than 10% of the Door area of the Unit. or mom than 25% of the parking spaces is Laken by Condemnation. Lessee may, at Lessees option, to be exercised in writing within 10 days after Lessor shag have given Lessee wn :en notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shag have taken possession) terminate this Lease as of the date the condemning au•Jrny takes such po«ess;jDn_ It Lessee does not terminate ghis Lease in accordance with the foregoing. this Lease shall remain In ill force and effect as to the pan= of the Premises remaining. except that the Base Rent shall be reduced in proportion to the reduction in rr.,Ly of the Premises caused by such Condemnation. Condemnation rewards and/or payments shall be the property of Lessor. whether such award shag be made as compensation for dinlition in value of the leasehold, the value of the pan taken, or for severance damages; provided, however, that Lessee shag be entUed to any compensation peed by the condernrnf for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. AD Alterations and Ubliy tnstaflathons made to the Premises by Lessee, fa purposes of Conndemnatmn only, shag be considered the properly of the Lessee and Lessee shag be entitled to any and all oomnpensatton which is payable therefor. In the event that this Lease is not teminated by reason of the Condemnat ion. Lessor shag repair any damage to the Pi used by such condemnation. Provided that Lessor has received compensation for Such damages from the authority. PAGE 12OF 17 INITIALS IN111ALS 01996 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTC•17 -07114E 2015 -05 -26 Agenda Packet Page 96 Is. Brokerage Fees. 153 Representations and Indemnities of Broker Relatlonshlps. Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder (other than the Broken, d any) in connection visth this Lease, and that no one other than said named Brokers is enLtted to any commission or feWees fee in connection herewith. Lessee and Lessor do each hereby agree to irdemndyr, protect. defend and hold the other harmless tram and against liability for compensation or charges which may be claimed by any such untamed broker. finder or other similar party by reason of any dealings or actions of the indemnifying Party. including any costs, expenses, at:omeys' lees reasonably kxxtrred with respect thereto. 16. Estoppel Certificates. (a) Each Party (as "Responding Party) shag within 10 days after written notice from the other Party (the 'Requesting Party) exewe, acknowledge and deliver to the Requesting Parry a statement In writing to form sirrular to the then most current -Estoppel Certificate' form published by the AIR Commercial Real Estate Association. plus such addtional information, clJidrmation andlor statements as may be reasonably requested by the Requesting Party. (b) If the Responding Party shall fad to execute or deliver the Estoppel Cerb!'We wahin such 10 day period, the Requesting Perry may execute an Estoppel Certificate stating that: n the Lease is in fug force and effect without mod ica:ron except as may be represented by the Requesting Party, Cu) there are no uncured defaults in We Requesting Party's performance. and (E) d Lessor is the Requesting Parry, rot more than one morith's rent has been paid in advance. Prospective purchasers and encunbrancers may rely upon the Requesting Party's Estoppel Certficale, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. In addition, Lessee acknowledges that any failure on its part to provide such an Estoppel Certificate will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of wtnich will be edramey d fhciA to ascertain. Accordingly, should the Lessee fait to exeane andfor deliver a requested Estappel CerL5cate in a thmey fashion the monthly Base Rent shag be ateomatically increased, without arty requirement for notice to Lessee, by an amount equal to 10% of the then exdsting Base Rent or $100, whichever is greater for remainder of the Lease. The Parties agree that such increase In Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor win incur by reason of Lessee's failure to provide the Estoppel Certificate. Such increase in Base Rent shag in no event constitute a waiver of Lessees Default or Breach va:h respect to the failure to provide the Estoppel Certificate nor prevent the exercise of any of the other rights and remedies granted hereunder. (c) If Lessor desires to finance, refinance. or sell the Premises, or any pan thereof. Lessee and all Guarantors shay within 10 days after written nabce, from Lessor deliver to arty potential lender or purchaser designated by Lessor such fananaaf statements as may be reasonably required by such lender or purchaser. including but not 6rntted to Lessee's financial statements for the past 3 years. All such financial statements shag be received by Lessor aid such lender or purchases in confidence and shag be used only for the purposes herein set forth. 17, Definition of Lessor. The term 'Lessor' as used herein shag mean the owner or owners at the time in question of the fee Lae to the Premises, or, it this is a sublease, of the Lessee's interest to the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this Lease, Lessor shag deliver to the transferee or assignee (i cash or by credit) any unused Seemly Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security OepostL as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations andfor covenarrLs under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligatons andlor covenants in this Lease to be performed by the Lessor shag be binding only upon the Lessor as hereinaboue defined. 18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent )emsdiebon, shag in no way allect the validity of any other provision hereof. 19. Days Unless otherwise specifically indicated to the contrary, the word 'days as used in this Lease shag mean and refer to calendar days. 20. Limitation on Llabltity. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, or its partners. members, directors, otfncers or shareholders, and Lessee shag look to the Premises, and to no other assets of Lessor, for the satisfaction of any Itabhdiity of Lessor with respell to this Lease. and shag not seek recahase against Lessors partners. members. drectors. afficers or shareholders, or arty of their personal assets for such sa isfacbon. 21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the parties render this Lease. 22. No Prior or Other Agreements; Broker Dlsctaimer. This Lease contains all agreements between the Parties with respect to arty matter mentioned herein.- and no other prior or contemporaneous agreement Or understanding shag be effective- Lessor and Lessee each represents and warrants to the Broken that it has made, and is relying solely upon, its own Investigation as to the nature. quaLty, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to arry defatdl or breach hereof by either Party. 23. Notices. 23,1 Notice Requirements All notices required or permined by this Lease or applicable law shag be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mal with postage prepaid, or by facsimile transmission or by emu], and shag be deemed suffaenkf given d served in a manner specified in this Paragraph 23, The addresses noted adjacent to a Party's signatum on this Lease shag be that Par:; s address for delivery or mailing of nobees. Ether Parry may by wr=cn notice to the other specify a different address for noUce. except that upon Lessee's hiking possession of the Premises. the Premises shag constitute Lessee's address for notice. A espy of ell notices to Lessor shat be concurrenly transmitted to such parry or parties at such addresses as Lessor may from time to time hereafter designate an writing. 23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shag be deemed given on the date of defnrery shown an the receipt card, or if no delivery date is sham. the postmark thereon. If sent by regular mail the notice shag be deemed given 72 the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight guarantees nehd day defiveny shall be deemed given 24 harm after delivery of the same to the Postal Service or courier. Notices delivered iransrrutted by facsimile bansmisshom or by emal shag be deemed delivered upon acdial receipt If notice is received on a Saturday. PAGE 13 OF 17 INITIALS INITIALS Cil"S - AIR COMMERCtAL REAL ESTATE ASSOCIATION FORM MTC-17 -07114E 2015 -05 -26 Agenda Packet Page 97 Sunday or legal holiday, d shay be deemed received on the nehd business day. 24. Waivers. (a) No waives by Lessor of the Default or Bream of any term. covenant or condition hereof by Lessee, shall be deemed a warver of any other term, covenant or conld;ilonh hereof, or of any subsequent Default or Bream by Lessee of the same or of any other term, covenant or cond uon hereof. Lessor's consent to, or approval of, any act shag not be deemed to renter unnecessary the Obtaining of Lessors consent to, or approval cif, any subsequent or similar ad by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such Consent. (b) The acceptance of Rent by Lessor strap not be a wanner of any Default of Breach by Lessee. Any payment by Lessee may tre accepted by Lessor an accouav of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or Bondi ions shag be of no force or effect whatsoever urdess specifically agreed to in writing by Lessor at or before the time of depost of such payment (c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WANE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE. 25. Disclosures Regarding The Nature of a Real Estate Agency Relationship, (a) When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationshtp or representation it has with the agent or agents in the tansacbon. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows: (7 Lessors Arent A Lessors agent under a hb-xV agreement with the Lessor acts as the agent for the Lessor only. A Lessors agent or subagerd has the following affrmatve obligations: To the Lessor: A fiduciary duty of utmost rare, integrity, honesty, and loyalty in dealings vaih the Lessor. To the Lessee and the Lessor. a. Diligent exercise of reasonable skins and care in performance of the agent's doves. b. A duty of honest and far dealing and good faith. C. A duty to disclose all facts known to the agent materially a'ecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party arty corfden'ral information obtained from the other Parry which does not involve the aTumabve duties set forth above (U-) Lessee's Adenr. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessors agent, every d by agreement the agent may receive compensation for services rendered, ertmer in fug or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To Me Lessee, A fiduciary duty of uxnost care, integrity, honesty. and loyalty in dealings vwth the Lessee. To the Lessee and the Lessor a. Diligent exercise of reasonable skills and rare in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are riot krrowri to. or within the d4eM attention and observation of. the Parties. An agent is not obligated to reveal to ether Party any confidential information obtained from the other Party which does not irnvlve the affirmative duties set forth above. (i) Aoenf Reoresent:nc Bath Lessor and Lessee. A real estate agent, either acting directly or through one or more associate licenses, can legally be the agent of bath the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor and the Lessee: a. A fiduciary duty of utmost rare, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee, b, Other duties to the Lessor and the Lessee as stated above in subparegraphs n or (7. In representing both Lessor and Lessee, the agent may riot without the express permission of the respecirve Party. drsdose to the other Party that the Lessor wag accept rent in an amount less than that indicated in the listing or that the Lessee is vi ling to pay a higher rem than that offered. The above duties of the agent in a real estate transaclwr do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreements to assure Vial they adequately eipress their understanding of the transaction. A real estate agent is a person quaMed to advise abet real estate. If legal or tax adore is desired, consult a competent professmnaL (b) Brokers have no responshbsty with respect to any default or breach hereof by ether Party. The Parties agree that no lawsuit or other legal proceeding invohnrhg any breach of duty, error or omission ralatnhg to this Lease may be brought against Broker more than one year after the Start Date and that the iabiUy (exh,dng court costs and attorneys' fees), of any Broker with respect to any such lawsuit and/or legal proceeding shag not exceed the fee received by such Broker pursuant to this Lease, provided, however, that the foregoing limitation on each Brokers hah1ty shall not be applicable to arty gross negligence or willful riscorduct of such Broker. (c) Lessor and Lessee agree to identity to Brokers as'Corfdantsar any communication or information given Brokers that is considered by such Party to be cordiiderrral. 26. No Right To Holdover. Lessee has no right to retan possession of the Prerlses or any part thereof beyond the eipbathorh or terrnirraban of this Lease. In the event that Lessee holds over, then the Base Rent shag be increased to 150% of the Base Rent applicable immedrately preceding the expiration or lerruratron. Holdover Base Rent shall be calculated an monthly basis. Nothing contained herein shag be construed as consent by Lessor to any holding over by Lessee. 27. Cumulative Remedies. No remedy or election hereunder shag be deemed exclusive but shall, wherever possible, be cumulali a with all other remedies at law or in eghdly. 28, Covenants and Conditions; Construction of Agreement- All provisions Of this Lease to be observed or performed by Lessee are both covenants and corheitons. In constning this Lease, all headings and Liles are for the convenience of the Parties only and shag not be considered a part of this Lease. Whenever required by the context the singular shag include the phial and vice versa. This Lease shag not be construed as d prepared by one of the Parties, but rather according to its fair meaning as a whole, as d both Parties had prepared IL 29. _ Binding Effect; Choice of Law, This Lease shag be binding upon the parries, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shag be initiated in the county hh which the Premises are located. 30. Subordination; Adornment Non -Disturbance. 30.1 Subordination. This Lease and any Option granted hereby shag be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collecWely,'Securdty, Device -), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications. and eidensdons thereof. Lessee agrees that the holders of any such Seventy Devices (in tus Lease together refern!d to as 'Lender') shag have no liability or obligation to perform any of the obigattems of Lessor under this Lease. Arty Lender may elect to have this Lease and/or any Option granted hereby superior to the hen of its Security Deers by giving written notice thereof to Lessee, whereupon this Lease and such Options shag be deemed prior to such Security Device, romwlhstandurg the rela',rve dates of the documentation or recordation thereof. 30.2 Attommerit In the event teat Lessor transfers itle to the Premises, or the Premises are acquired by another upon the foreclosure or termination of a Seruny Device to w1*3h this Lease is subordinated n Lessee shall, subject to the non - disturbance provisions of Paragraph 30.3, atbam to such new owner, and upon request. enter into a new lease, containing all 01 the terms and provisions of this Lease. wwth such new owner for er of the term hereof, or, at the election of the new owner, this Lease will automatically bemire a new lease between Lessee and such new (u) Lessor shat thereafter be relieved of any further obligations hereunder and such new owner shag assume all of Lessors obligations. PAGE 14 Of 17 INITIALS INITIALS 91998 - AIR COMMERCUIL REAL ESTATE ASSOCIATION FORM MTG- 1747114E 2015 -05 -26 Agenda Packet Page 98 except that such new owner shall rot: (a) be liable for any act or omission of arty prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets at defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one monk's rent. or (d) be Gable for the return of any security deposit paid to any prior lessor which was not paid or credited to such new owner. 30.3 Non -Disturbance. Wih respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's subordination of this Lease shall be subject to receiving a commercially reasonable con- disturbance agreement (a "Non4nsturbance Agreement) from the Lender which Non -disci nce Agreement provides that Lessee's possession of the Pre itses, and this Lease, indudng any options to extend the term hereof, wig not be disturbed so brig as Lessee is not in Breach hereof and attoms to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, d requested by Lessee, use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre- emstmg Security Device which is seared by the Premises. In the event that Lessor is unable to provide the Non-Oisturbanae Agreement within said 60 days, then Lessee may, at Lessee's option, directly cantau Lender and attempt to negotiate for the exearhon and delivery of a Nom- Disturbance Agreement. 30.4 Self -Executing. The agreements contained in Ihis Paragraph 30 shag be effective vethour the execution of any further documents; provided, however, that, upon wmtten request from Lessor or a Lender in connection With a sale. financing or refinancing of the Premises. Lessee and Lessor shall execute such further writings as may be reasonably mqured to separately document any subordination, attommem and/or Non-Disturbance Agreement provided for herein. 31. Attorneys' Fees. If any Parry or Broker brings an action or proceeding involving the Premises whether founded in tort contact or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in arry such proceeding. adman, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same sun of recovered in a separate suit, whether or nab such action or proceeding is pursued to decision or judgment. The term, 'Prevailing Party shall include, without limitation, a Party of Broker who substantally obtains or defeats the relief sought. as the case may be, whether by compromise. se,tement. judgment, or the abandonment by the other Party or Broker Of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court tee schedule, but shall be such as to fully reimbui se all amomeys' fees reasonably insured. In addition, Lessor shall be entitled to a:.omeys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal acbion ci subsequerey commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation) 32. Lassoes Access; Showing Premises; Repairs. Showing Premises; Repairs. Lessor and Lessors agents shall have the right to enter the Premises at any, time, In the rase of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, tenders, or tenants, and making such alterations, repairs, improvements or addaians to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect on Lessee's use of the Premises AD such allmbes shag be vnttout abatement of rent or liability to Lessee. 33. Auctions. Lessee shag not conduct nor permit to be conducted, any auction upon the Premises without Lessors prior wn --en consent. Lessor shall not be obGga:ed to exercise arty standard of reasonableness In determining whether to peanut an auction, 34. Signs. Lessor may place on the Premises ordinary -For Sale' signs at any time and ordinary 'For Lease' signs during the last 6 months of the term hereof. Except for ordinary 'Fat Sublease' signs which maybe placed only on the Premises, Lessee shall not place any sign upon the Project wi:haut Lessor's prior written consent An signs must comply with all Applicable Requ - ements 35. Torminabon; Merger. Unless speatically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate it the Premises: provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessors failure within 10 days following any such event to eked to the contrary by wn. ",en notice to the holder of any such lesser interest, shall constme Lessors election to have such event constitute the termination of such interest. 36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the Omer Parry, such consent shall not be unrea<onaby withheld or delayed. Lessors actual reasonable costs and expenses (ffxMmg but roh limited to ardutects', attorneys', engineers' and other consultants' fees) maned in the consideration of, or response to. a request by Lessee for any Lessor consent, including but not hunted to consents to an assignment, a subletting or the presence or use of a Hazardous Substance. shat be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessors consent to any ad, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists. nor stall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specileMy stared in writing by Lessor at the lane of such consent The failure to specify herein arty particular condition to Lessors consent shag not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees With any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shag hrntsh is reasons it writng and in reasonable detail meMin 10 business days following such request- 37. Guarantor - 37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published try the AIR Commerrial Real Estate Association, 37.2 Default. 11 shall constitituta a Default of the Lessee it army Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, incirdhng the acrhonty of the party signing on Guarantor's behalf to obkV.e Guarantor. and in the case of a corporate Guarantor, a cendiied copy of a resolution of as board of directors authorizing the making of such guaranty, (b) current Frandal statements. (c) an Estoppel Certificate. or (d) written confirmation that the guaranty is stLO in elect- 38. - Wet Possesslon.- Subject to payment by Lessee of the Rent and performance of all of One covenants, conditions and provisions on Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 39. Options. If Lessee 13 granted any option, as defined below, then the following provisions shag apply. 39,1 Definition, 'Option- shag mean- (a) the right to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew arty lease that Lessee has on other property of Lessor, (b) the right of first refusal or fast after to lease either the Premises or other property of Lessor, (c) the right to purchase, the right of first offer to purchase or the right Of first refusal to purchase ft Premises or other property of Lessor. 39.2 Options Persenrl To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigniid or exercised by anyone o:.hcr Man satd original Lessee and only while the original Lessee fs or full possession of the Prcrr ws and, if requested by Lessor, With Lessee certifying that Lessee has no intention of thereafter assigning or sublettaxj_ 39,3 Multiple Options, In the event that Lessee has any multiple Options to extend or renew this Lease. a later Option cannot be exercised unless the prior Options have been validly exercised. 39.4 Effect of Default on Options. .0� (a) Lessee shat have no right to exercise an Option: t.i during the period commencing With the giving of arry notice of Default and until said Defautl is cured. (a-) during the period of lime arty Rem is unpaid (without regard to whe: her notice thereof is given Lessee), n PAGE 19 OF 17 INITIALS IMTIALS 01998 • AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTC- 17 -07114E 2015 -05 -26 Agenda Packet Page 99 during the time Lessee is in Breach of this Lease, or frv) in the event that Lessee has been given 3 or more notices of separate Default whether or riot the Defaults are aced, during the 12 month period Immediately pmcedutg the exercise of the Option - (b) The period of time wdh n which an Option may be exercised shall not be extended or enlarged by reason of Lessee's btabifity to exercise an Option because of the provisionts of Paragraph 39.4(x), (c) An Option shall terminate and be of no further force or effect. notwithslandaig Lessee's due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase. (i) Lessee fads to pay Rent for a penod of 30 days after such Rend becomes due (vnlhout any necessity of Lessor to give notice thereof), or (1) if Lessee commits a Breach of this Lease. 40. Security Measures_ Lessee hereby accrm fledges that the Rent payable to Lessor hereunder does not Include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same- Lessee assumes all respotsmbdty for the protection of the Premises. Lessee, its agerds and utvttees and their property from the arts of third parties. 41. Reservations. Lessor reserves the right: (i] to grant, without the consent or joinder of Lessee, such easements, rights and dedreatrons that Lessor deems necessary. (tij to cause the recordation of parcel maps and restrictions, and (iii) to create and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions. and vility raceways do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign arty documents reasonably requested by Lessor to effectuate such rights. 42. Performance Under Protest If at any lane a drspude shall arise as to arty amount or sum of money to be paid by are Parry to the other under the provisions hereof. the Party against whom the obligation to pay the money is asserted shall have the right to make payment 'under protest and such payment shall not be regarded as a voluntary payment and there shay survive the right on the pan of said Parry to institute suit for recovery of such sum. If it shag be adjudged that there was no legal obligation on the part of said Party to pay such sum of any pail thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid carder protest' w ild n 6 months shall be deemed to have waived its right to protest such payment 43. Authority.; Multiple Parties; Execution. (a) If either Parry hereto is a corporation, trust. /muted liability company, partnership, or similar entity, each Individual executing this Lease on behalf of such entity represents and warrants that he W she is duly authored to execute and deliver this Lease on Lis behalf. Each Party shag, vAthm 30 days after request, deliver to the other Party satisfactory evidence of such authority, (b) If this Lease is executed by more than one person or entity as 'Lessee". each such person or erWy shag be jointly and severally gable hereundef. It Is agreed that any one of the named Lessees shag be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had ehecined such document. (c) This Lease may be executed by the Parties b counterparts, each of which shag be deemed an original and all of which together shag mnstibLrte one and the same instmanenL 44. Conflict Arty eor;!5ct be0veen the printed provisions of this Lease and the typewnuen or handwnCen provisions shag be controlled by the typevmten or handvm ."en provisions. 45. Offer. Preparation of this Lease by either party or their agent and submission of same m the other Party shag not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 46. Amendments. This Lease may be mod» ed only in wntutg, signed by the Parties in interest at the time of the modScation. As long as they do not materially change Lessee's obligations hereunder. Lessee agrees to make such reasonable non.-monetary modT ®Lots to this Lease as may be reasonably required try a Lender in cannecton with the obtaining of normal futatchV or refinancing of the Premises. rn occocrmfc nhr_uTC rn xarx� or niov ru n xrnnu no PRBCEfi EMENT, 48. Arbitration of Disputes. An Addendum requiring the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease ❑ is 0 is not attached to this Lease. 49. Accessibility, Americans with Disablilties Act (a) The Premises: 0 have not undergone an inspecboh by a Certified Access Specialist (CASp). ❑ have undergone an inspection by a CefuSed Access Speaafsl (CASp) and it was determined that the Premises met all applicable construct rFrefated accessibility Standards pursuant to Callfomia CM Code §55,51 at seq. E] have undergone an inspection by a Certified Amass Specialist (CASp) and it was determined that the Premises did not meet all applicable mnstrucimn- related amessibLry standards pursuant to California Civil Cafe §55.51 at seq, (b) Since compliance with the Americans vAth Disabilities Act (ADA) is dependent upon Lessee's specific use of the Premises. Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation In the event that Lessee's use of the Premises requires modc5caaons or addtrons to the Premises bin order to be in ADA compliance, Lessee agrees to make arty, such necessary modifications and/or add,00ns at Lessee's expense. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO - THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO: 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THOS LEASE 2 RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE. WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA. CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED. 6) PAGE 16 OF 17 vin uwua Bf 998 --AIR COMMERCIAL REAL ESTATE ASSOCIATION I NITIALS FORM MTG -17. 07114E 2015 -05 -26 Agenda Packet Page 100 The parties hereto have executed this Lease at the place and on the dates spec4ried above their respective signalures. Executed at. Chula Vista On: Exeared On By LESSOR: By LESSEE: City Of Chula Vista, a municipal chartered Centro De Salud De La Comunidad De San Corporation of the stale of California Ysidro,Inc. dba San Ysidro Health Center Inc Tige :Senior Vice President and Associate G Name Printed 9y. TeJe_ Name - nted Kevin Na son Telephone (8 59 ) 453 -0505 Facsatule• (858 )408 -3976 Enml:rclark @voirco.com 6 kclark @voitco.com Title. President and CEO By. Name Pnnled TCIe: By: Name Printed TrJa, Address- 276 Fourth Avenue Chula Vista, California 91910 Address: 1275 30th ST. San Diego, CA. 92154 Telephone.( ) Facsimile {_] Emaill: Email. Federal 1D No. Telephone(619) EE2- Facsimile (_} Email- Entail: Federal ID No. BROKER: BROKER: Voit Real Estate Services Att:Tracy Clark and Kimberly Clark Alt- Tige :Senior Vice President and Associate Teti a: Ad .4747 Executive Dr. Suite 800 Address: San Diego, CA. 92121 Telephone (8 59 ) 453 -0505 Facsatule• (858 )408 -3976 Enml:rclark @voirco.com 6 kclark @voitco.com Telephone. (_) Facsimile,(-) Email: Federal ID No. Bmkef /Agenl ERE Braise 0- Voit : 01333376 Real Estate Salesperson Cal HRE, License f Federal ID No. BrokedAgeni ERE license d, 00641800 & 01439305 NOTICE: These fonts are often modified to meet changing requirements of Iaw and Industry needs. Always write or call to make sure you are utilizing the most current farm: AIR Commercial Real Estate Association, SOO N Brand Blvd, Suits 909, Glendale, CA 91203. Telephone No. (213) 687 -8777. Fax No.: (213) 697$616. - (c)Copydght 1998 By AIR Commercial Real Estate Association. All rights reserved. No part of these worts may be reproduced in any form without permission in writing. PAGE 17 OF 17 01998 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTG- 17 -07114E 2015 -05 -26 Agenda Packet Page 101 RENT ADJUSTMENT(S) STANDARD LEASE ADDENDUM Dated January 23, 2015 By and Between (Lessor) city of Chula vista, a municipal chartered corporation of the State of California (Lessee) Centro De Saiud De La Comunidad De San Ysidro, Inc., dba San Ysidro Health Center, Inc. Address of Premises: 1800 Haxwell lid, Chula vista Chula Vista, California 91911 Paragraph 50 A. RENT ADJUSTMENTS: The monthly rent for each month of the adjustment penod(s) specified below shall be increased using the method(s) indicated below- (Check Method(s) to be Used and Fig in Appropna :efy) ❑ I. Cost of Living Adjustment(s) (COLA) a. On (Fill in COLA Dams), the Base Rent shall be adjusted by the change. rf army, from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Departnem of Labor for (select one)-0 CPI %V (Urban Wage Eamers and Clencal Workers) or ❑ CPI U (All Urban Consumem), for (FA in Urban Area)- AD Items (1982.1984 = 100), heresy re`ened to as'cpr. b. The monthly Base Rent payable in accordance with paragraph A-La. of this Addendum Shan be caladated as follows; the Base Rent set forth in paragraph 1.5 of the attached Lease. shag be multrpfied by a fracbm the numerator of which shag be the CPI of the calendar month 2 months prior to the months) specified in paragraph A.I.a, above during which the adjustment Is to take effect, and the denominator of which shag be the CPI of the calendar month which is 2 months prior to (select one): the ❑ fast mach of the term of this tease as set forth in paragraph 1.3 rBase Month) or ❑ (Fa in Met "Base Monde'): . The sum so calculated shag constitute the new monthly Base Rent hereunder, but in no event, shag any such new monthly, Base Rent be less than the Base Rent payable for the month I nmediatey preceding the Base Rent adjustment. C. In the event the compilation andlor publicaaon of the CPI shall be transferred to any other governmental department or bureau or agency or shall be discontrured, then the index most neaAy the same as the CPI shag be used to make such calculation. In the event that the Parties cannot agree on such aLemasve index, then the made shall be submitted for decision to the American ArbdrVion Assoaalion in accordance with the then ndes of said A ociation and the decision of the arbdrators shall be binding upon the parties. The cost of said Arbrration shall be paid equally by the Parties. INITM.LS INITIALS 620011. AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM RA- 5- 04f14E 2015 -05 -26 Agenda Packet Page 102 epee$ them. chAn reach - dad," aA WA oF OW a aid decieman shelf be kpndmRg on the PnF64,r� q The .. 2) %%NeR d0liffliRWAU MRW. ilia L@66W, L9�600 and GORWIMPIS shall 98F1-ld@FIhQ lQFR6 01 COMPACabib MAN IFURS-G&I-FIR V*Iffigh 611- 3) NiihmLhs4aading We to"amg. We new Ras, A-Al shik' R- be ... than the FOR' payable to; the 9AGAL4 pmcedwg th^ FeW adiwGivient. Up.... the a6zabli -li .....1 ..I agGh •1..... ■twke1 0....1..111..1..9 2) the 4W raontli of saal; 161120-3 1 IL... ....... •O.n.. 114... S n9�^& 0 111. Fixed Rental Adjustment(s) (FRA) The Base Rent shall he atueased to the following amounts on the dates Sat forth below On (Fa in FRA Adjustment 0ate(5)). The New Base Rent shall be: July 1, 2016 $14,025.00 per month _ July 1, 2017 $14,306.00 oer month July 1, 2018 $14,592.00 per monr:h _ July 1, 2019 , $14,883.00 per month ❑ N. Initial Term Adjustments. The formula used to caudate adjustments to the Base Rate during the original Tenn of the Lease stun aonLnue to be used during the erdended term. B. NOTICE: Unless specG:ed otherwise hereon, notice of any such adjustments, other than Fixed Rental Actustmettts, shell be made as speeded in paragraph 23 of the Lease. C. BROKER'S FEE: The Brokers Shag be paid a Brokerage Fee for each adjustment specified above in accordance vALh paragraph 15 of the Lease or 0 appGtable, paragraph 9 of the Sublease. NOTICE: These forms are often modified to meat changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 500 N Brand Blvd, Suite 900, Glendale, CA 91203. Telephone No, (217) 687 -SM. Fax No,: (217) 667.8616. Li 02000' AIR COMMERCIAL REAL ESTATE ASSOCIATION PAGE 2 OF 2 INITIALS FORM RA —C"14E 2015 -05 -26 Agenda Packet Page 103 OPTION(S) TO EXTEND STANDARD LEASE ADDENDUM Dated January 23, 2015 By and Between (Lessor) City of Chula Vista, a municipal chartered corporation of the State of California By and Between (Lessee) Centro De Salud De La Co.munidad De San Address of Premises: i800 Maxweil Rd, Chula Vista Chula Vista, California 91911 Paragraph 51 A OPTION(S) TO EXTEND. Lessor hereby grants to Lessee the option to extend the term of this Lease for One adddronal S i x_t r (60 ) month penod(s) commencing when the prior lean er*es upon each and all of the following terms and conditions, 17 In order to exermise an option to extend, Lessee must give wri."w notice of such election to Lessor and Lessor must receive the same at least 6 but not more than 12 nhonths pnor to the date that the option period would commence. lane being of the essence. If proper notification of the exr_rcme of an option is not gven and/or received, such option sha automatically ei*e. Options (if there are more than one) may only be exercised conseartvefy. () The provisions of paragraph 39, inckidmg those relating to Lessees Default set forth m paragraph 39.4 of this Lease, are cond6tons of this Option. (-ui) Except for the prw9sions of this Lease granting an option or opmns to eidend the term, all of the terms and curia flans of this Lease except where specs cally mod 5ed by this option shall apply. (rv) This Option is personal to the original Lessee. and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in frill possession of the Premises and without the in!en9on of thereafter assigning or subletting_ (v) The monthly rent for each month of the option penod shall be cakxdated as follows. using the method(s) indicated below. (Check Method(s) to be Used and Fill in Appropriately) (ow Cost of Living Adjustments) (COLA) On (Fill in COLA Dates): the Base Rent shad be adjusted by the change. if any. from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U,S. Department of Labor for (select one): ❑ CPI W (Urban Wage Earners and Clerical Workers) or ❑ CPI U (All Urban Consumers). for (Fill in Urban Area). All Items (1982 -19134 = 100), herein referred to as'cpr. b. The monthly Base Rent payable in accordance with paragraph A-La. of this Addendum shag be calculated as lollows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the numerator of which shag be the CPI of the calendar month 2 months pna to the menth(s) spero:ted in paragraph Al.a. above daring which the adlusanent is to take effect, and the denominator of which shag be the CPI of the calendar month which is 2 months prior to (select one): ❑ the first month of the term of this Lease as set forth in paragraph 1.3 (Base Month') or 0 (Fill in Other 'Base Month'): The sum so calculated shag constitute the new monthly Base Rent hereunder, but in no event, shag any such new monhy Base Rent be less than the Base Rem payable for the month immediately preceding the rent adlustmem. c. In the event the compilation and/or publication of the CPI shag be transferred to any other governmental department or bkneau or agency or shall be d biscontinued, then the index most nearly the same as the CPI shall be used to make such cakcdation. In the event that the Parties cannot agree an such alternative index, then the matter shag be submlhed for decision to the American Arbdra= Association in accordance with the then rules of said Association and the decision of the arbitrators shell be binding upon the parties The cost of said Arbitration shag be paid equally by the Parties. 13 IL Market Rental Vahie Adjustment(s) (MRV) a. On (Fill in I1RV Adjustment Date(s)) the Base Rent shag be adjusted to the 'Market Rental Value' of the property as follows: 1) Four months prior to each Market Rental Vakre Adjustment Date described above, the Parties shag attempt to agree upon what the new MRV will be an the adjustment date. It agreement cannot be reached, within thirty days, then: W Lessor and Lessee shag immediately appoint a mutually acceptable appraiser or broker to establish the new MRV within the next 30 fed costs will be split equally between the Panes, or PAGE 1 OF 2 INITIALS INITIALS 02000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OE.4."14E 2015 -05 -26 Agenda Packet Page 104 (b) Both Lessor and Lessee stall each immediatety make a reasonable determination of the MRV and submit such determination, in writing. to arbitration in arrardance with the following provisions- () Wihin 15 days thereafter. Lessor and Lessee shall each select an Cl appraiser Or 21 broker ('Consultant' - check one) of their choice to act as an arbCrator. The two arbtrators so appointed shag irtvriedwely select a thud mu u* acceptable Consultant to act as a third arbL=or. (u) The 3 arbitrators shall w IM 30 days of the appointment of the third arbitrator reach a decision as to what the actual MRV for the Premises is, and whether Lessor's or Lessees submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding on the Parties. The submhfted MRV which is detemhired to be the closest to the actual MRV shall thereafter be used by the Parties. (–m) If ether of the Parties tads to appoint an arbitrator within the spearied 15 days, the arbitrator lonely appointed try one of them shall reach a decision on his or her own, and said decision shall be binding ion the Parties. (iv) The entire cost of such arbi ra'ion shag be paid by the party whose submitted MRV is not selected, ie. the one that is NOT the closest to the actual MRV. 2) When de :emhanng MRV, the Lessor. Lessee and Consultants shag consider the terms of comparable market transactions which shag include, but no limited to, rent, rental adjustments, abated rent, lease term and fnandal condition of tenants. 3) Notwithstanding the foregoing, the new Base Rent shag not be less than the rent payable for the month immediately preceding the rent adjustment. b. Upon the establishment of each New Market Rental Value: 1) the new MRV will become the new 'Base Rent' for the purpose of calculating any further Adjustments, and 2) the first mwh at each Market Rental Vetere term shag become the new 'Base Month' far the purpose of caladatng any further Adjustments. 0 [II. Fixed Rental AdJustmengs) (FRA) The Base Rent shag be increased to the following amounts on the dates set forth below On (Fit in FRA Adjustment Oate(s)) July 1, 2020 July 1, 2021 _ July 1, 2022 July 1, 2023 Julv 1. 2024 The New Base Rent shag be; $15,181 /Month 515,989 /Month S15,794 /Month $16,110 /Month $16,432 /Month 0 N. Initial Term Adjustments. The formula used to calico ze adjustments to the Base Rate during the original Term of the Lease shag continue to be used dung the extended term. EL NOTICE: Unless specified Otherwise herein, notice of any rental adjustrnerds, other fhen Fired Rental Adjustments, shall be made as speaSed in paragraph 23 of the Lease. C. BROKER'S FEE: The Brokers shag be paid a Brokerage Fee for each adjustment speed above in accordance with paragraph 15 of the Lease or it applicable. paragraph 9 of the Sublease. NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 500 N Brand Blvd, Suite 900, Glendale, CA 91203. Telephone No. (213) 587.11M. Fax No,: (213) 5874815, "0*0—% 1 INITIALS PAGE 2 OF 2 INITIALS 02000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OE4 -W14E 2015 -05 -26 Agenda Packet Page 105 ADDENDUM TO LEASE DATED DECEMBER 18, 2014, BY AND BETWEEN CITY OF CHULA VISTA, A MUNICIPAL CHARTERED CORPORATION OF THE STATE OF CALIFORNIA; AS LESSOR, AND CENTRO DE SALUD DE LA COMUNIDAD DE SAN YSIDRO INC, AS LESSEE, FOR THE PREMISES LOCATED AT 1800 MAXWELL RD, CHULA VISTA', CALIFORNIA 91911 52. EARLY TERMINATION: Lessee shall have the right to terminate the Lease at anytime after the 18th month of the Lease term by giving Lessor a minimum 6 months written notice and reimbursing Lessor for the unamortized construction costs and leasing fees. This Early Termination right shall only be exercised as a result of loss of funding or loss of contracts and Lessee shall provide proof of same to Lessor with any early termination notice. 53. IMPROVEMENTS: Lessor at Lessor's expense shall demise the Premises. All other necessary tenant improvements shall be Lessee's responsibility at Lessee's expense. LESSOR: CHULA VISTA, A MUNICIPAL CORPORATION OF THE STATE OF CALIFORNIA By: Date: Name Printed: Title: LESSEE: CENTRO DE SALUD DE LA COMUNIDAD DE SAN : YSIDRO, INC. B . 14 Date: �I S Y Kevin Mattson President & CEO LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO - THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. PATRACYVUr.1w: s118W Maxwell Rcr%= Max d Rd Lease Adaerkn a315_doc 2015 -05 -26 Agenda Packet Page 106 Exhibit A 1800 Maxwell iJ taco MA Xv LL ROAD O=PEC= 3JtLDIkG (EAST KNG) 2015 -05 -26 Agenda Packet Page 107 'Voit . DEAL ESTATE SERVICES EXHIBIT B NOTICE TO OWNERS; BUYERS AND TENANTS REGARDING ENVIRONMENTAL MATTERS, AMERICANS WITH DISABILITIES ACT, • FLOOD DISCLOSURE, ZONINGIUSE DISCLOSURE AND ALQUIST- PRiOLO SPECIAL EARTHQUAKE FAULT ZONING ACT It is essential that all parties to real estate transactions be aware of the health, liability and economic impact of environmental factors on -real estate. Voit Real Estate Services does not conduct investigations or analyses of environmental matters and, accordingly, urges the parties to a real estate transaction to retain qualified environmental professionals to determine whether hazardous or toxic wastes or substances (such as asbestos, PCB's and other contaminants or petro- chemical products stores in underground tanks) or other'undesirable materials or conditions are present at the property and, if so, whether any health danger or other liability exists. Such substances may have been used in the construction or operation of buildings or may be present as a result of previous activities at the property. Various laws and regulations have been enacted at the federal, state and local levels dealing with the use, storage, handling, removal, transport and disposal of toxic or hazardous wastes and substances. Depending upon past, current and proposed uses, of the property, it may be prudent to retain an environmental expert to conduct a site in"vesUgation and/or building inspection. If hazardous or toxic substances exist or are contemplated to be used at the property, special governmental approvals or permits may be required. In addition, the cost of removal and disposal of such materials may be substantial. Consequently, legal counsel and technical experts should be consulted where these substances are or may be present- Please be advised that, as an owner or tenant of real property, you may be subject to the Americans with DisabiliUes Act (the ADA), a Federal law codified at 42 USC Section 12101 et seq. Among other requirements of the ADA that could apply to your property, Title III of the ADA requires owners and tenants of 'public accommodations' to remove barriers to access by disabled persons and provide auxiliary aids and services for hearing, vision or speech impaired persons by January 26, 1992. The regulations under Title III of the ADA are codified at 28 CFR Part 36. We recommend that you and your attorney review the ADA and the regulations, and, if appropriate, your proposed lease or purchase agreement, to determine if this law would apply to you, and the nature of the requirements. These are legal issues. Voit Real Estate Services cannot give you legal advice on these issues. If the premises are located in a Federally Designated Flood Zone, the real and personal property of Lessee situated on or in the Premises is not protected by the hazard insurance policy for the property carved by Lessor. Lessee is responsible for investigating the Flood Zone status of the Premises and obtaining insurance to cover Lessee's property if it so desires. Prior to executing a lease, Lessee is responsible for determining that the zoning applicable to the property and Premises allows Lessee to use the property for its intended use of business, and that all building codes, parking requirements, and other governmental requirements, improvements required, and permits necessary have been met or are available to Lessee- Voit -Real Estate Services has made no representations, except in writing, if any, concerning the zoning and allowable use of the _.Premises and any requirements that may be imposed upon lessee by any governmental agency. If Lessee's use of the -- -Y--Premises requires a Use-Permit or other permits from a governmental authority it could take several months to obtain same, ___ --- and-Lessee may still be.responsible for the payment of rent and other charges whether or not such permits are ultimately obtained. The property and Premises described above (check which box applies) ❑ is; ❑ is not; E3 may or may not be situated in an Earthquake Fault Zone as designated under the Alquist -Priolo Earthquake Fault Zoning Act, Sections 2621 -2630 inclusive of the California Public Resources Code; and, as such the construction of development on the property of any structure for human occupancy may tie subject to the findings of a geologic report prepared by a geologist registered with the State of California, unless such report is waived by the city or county under the terms of that Act. No representations on this subject are made by Voit Real Estate Services, or its agents or employees and the Lessee /Purchaser is advised to make its own inquiry into this situation prior to entering into a lease or sale agreement. P.%TRACY%Ar.W=11W0Maxw&Rd51B00 ow=dauMl E)ftB.d= Page 1 of 2 2015 -05 -26 Agenda Packet Page 108 lout REAL ESTATE SERVICES By your signature below, you acknowledge that you have read and understand this disclosure and have received a copy: LESSOR: CITY OF CHULA VISTA, A MUNICIPAL CHARTERED CORPORATION OF THE STATE OF CALIFORNIA By: Date: Name Printed: Title: LESSEE: CE TRO DE SA UD DE LA COMUNIbAD DE SAN YSIDRO, By: Date: evin Mattson President and CEO P.%TRACY%Ar1wms11B00 Mwweo Rd11800_cen= de sefud_EMB docc Page 2 of 2 2015 -05 -26 Agenda Packet Page 109 � 'I CITY OF CHULA VISTA File #: 15 -0199, Item #: 8. City of Chula Vista Staff Report CONSIDERATION OF ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS FOR CERTAIN OPEN SPACE DISTRICTS TO BLUE SKIES LANDSCAPE MAINTENANCE, INC. AND AZTEC LANDSCAPING, INC. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY OF CHULA VISTA AND BLUE SKIES LANDSCAPE MAINTENANCE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 1 (OPEN SPACE DISTRICTS 3, 4, 8, ROLLING HILLS RANCH, AND EASTLAKE WOODS AND VISTA) IN THE AMOUNT OF $320,258, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY OF CHULA VISTA AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 2 (OPEN SPACE DISTRICTS 5, 6, 9, 10, 11, AND 26) IN THE AMOUNT OF $190,252, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY OF CHULA VISTA AND BLUE SKIES LANDSCAPE MAINTENANCE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 3 (COMMUNITY FACILITIES DISTRICT VILLAGE 11, PHASE 3) IN THE AMOUNT OF $193,413, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT RECOMMENDED ACTION Council adopt the resolutions. SUMMARY On May 4, 2015, the City received four bids for landscape maintenance services in 11 Open Space Districts (OSDs) and one Community Facilities District (CFD). Funding for the contracts is included within the budget for each OSD or CFD. Today's action is to accept the bids, award the contracts to Aztec Landscaping, Inc. and Blue Skies Landscape, Inc.; and authorize entering intc landscape maintenance contracts with each contractor. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301(h) (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. City of Chula Vista Page 1 of 4 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 111 File #: 15 -0199, Item #: 8. BOARD /COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The City of Chula Vista has 42 Open Space Districts and Maintenance Community Facilities Districts (collectively "the "Districts" or "Districts "). The City levies an annual assessment on property owners within each District to provide funding for maintenance of common area spaces. The City contracts with landscape firms to provide landscape maintenance services in the Districts. In 12 Districts, the landscape maintenance contracts have been vacated. The 12 Districts were divided into three (3) groups for the purpose of bidding ( "Bid Groups "), as some of the Districts are smaller than the others contiguous to them. By combining the areas, economies of scale could be obtained. The three (3) Bid Groups are as follows: • Group 1 - OSDs 3, 4, 8, Rolling Hills Ranch, and Eastlake Woods and Vista; • Group 2 - OSDs 5, 6, 9, 10, 11, and 26; • Group 3 - Community Facilities District Village 11 Phase 3 Public Works staff prepared specifications and advertised the services by Bid Groups on April 17, 2015. A mandatory pre -bid meeting was held on April 23, 2015. The purpose of the meeting was to review and clarify the bid requirements. Staff explained that bids would be evaluated and contracts awarded by Bid Group to the lowest most competent and qualified bidder for each Bid Group. On May 4, 2015, the Director of Public Works received and opened four (4) bids from the following companies: • Aztec Landscaping, Inc. • Blue Skies Landscape, Inc. • Brickman Group • Pacific West Land Care, Inc. The lowest qualified bidders recommended for award are as follows: Bid Group Contractor Annual Amount 1 Blue Skies Landscape Maintenance, Inc. $320,258.00 2 Aztec Landscaping, Inc. $190,252.00 3 Blue Skies Landscape Maintenance, Inc. $193,413.00 Total 1$703,923.00 Contractor Annual Amounts 1. Group 2: Aztec Landscaping, Inc. _ $190,252.00 2. Groups 1 & 3: Blue Skies Landscape, Inc. _ $513,671.00 City of Chula Vista 2015 -05 -26 Agenda Packet Page 2 of 4 Printed on 5/21/2015 powered by LegistarT"^ Page 112 File #: 15 -0199, Item #: 8. Therefore, staff recommends accepting the contractors' bids and awarding the landscape maintenance contracts to Aztec Landscaping, Inc. and Blue Skies Landscape, Inc. in the manner identified in the table above. The contracts are presented for your approval on the City's standard form, customized for this particular scope of work. Key provisions include: The contracts are for one year with three one -year options by mutual agreement of the contractor and City if work performance is satisfactory. Prices shall be firm for the first contract year. For the option years, price increases are based on change in the annual San Diego Area Consumer Price Index, for an amount not to exceed 5 %. The City reserves the right to accept option year price increases or an amount not to exceed 5 %. The City reserves the right to accept option year price increases or terminate the contracts without penalty. The contractors who bid on this project are required to pay prevailing wages to persons employed by them for the work performed under this project. Therefore, the Contractor shall ensure compliance with all applicable state and local laws governing the payment of prevailing wages. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that Mayor Mary Casillas Salas, Councilmember Patricia Aguilar, and Councilmember John McCann have property holdings within 500 feet of the boundaries of the properties which are the subjects of this action. Mayor Mary Casillas Salas has real property holdings within 500 feet of Open Space Districts 9 and 10; Councilmember Patricia Aguilar has real property holdings within 500 feet of Open Space District 8; and Councilmember John McCann has real property holdings within 500 feet of Open Space District 1 and Community Facilities District 7M (Eastlake Woods and Vista) respectively. However, to the extent that any decision would have a reasonably foreseeable effect on the value of the real property located within 500 feet of the property line of the members' real property, the effect would be nominal, inconsequential, or immaterial /insignificant and thus not material pursuant to California Code of Regulations Title 2, section 18702. Therefore, pursuant to California Code of Regulations Title 2, section 18700, no conflict exists. 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 & Secure Neighborhoods and a Connected Community. This action supports the goal of a Healthy Community, which includes maintaining community open space for public enjoyment. CURRENT YEAR FISCAL IMPACT There is no impact to the General Fund from this action. The landscape maintenance contract costs will be funded from the available balances of the respective Open Space District or Community Facilities District funds. ONGOING FISCAL IMPACT City of Chula Vista 2015 -05 -26 Agenda Packet Page 3 of 4 Printed on 5/21/2015 powered by LegistarT"^ Page 113 File #: 15 -0199, Item #: 8. The annual contract cost will be included in the annual budget for each Open Space District or Community Facilities District. ATTACHMENTS 1. Landscape Maintenance Standards; 2. Maps of Open Space Districts and Community Facilities Districts. Staff Contact: Sam Oludunfe City of Chula Vista Page 4 of 4 W71iw- 6TIMNAiIN OR 2015 -05 -26 Agenda Packet Page 114 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY AND BLUE SKIES LANDSCAPE MAINTENANCE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 1 OPEN SPACE DISTRICTS 3, 4, 8, ROLLING HILLS RANCH, AND EASTLAKE WOODS AND VISTA IN THE AMOUNT OF $320,258 AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT WHEREAS the City has 42 Open Space Districts and Maintenance Community Facilities Districts (collectively the "Districts ") and levies an annual assessment on property owners within each district to provide funding for maintenance of common area spaces; and WHEREAS the City contracts with landscape firms to provide landscape maintenance services for the Districts; and WHEREAS in five Districts, the landscape maintenance contracts have been vacated; and WHEREAS on April 17, 2015, City staff issued a Request for Proposals for landscape maintenance services for common area spaces within five Districts (Bid Group I Open Space Districts 3, 4, 8, Rolling Hills Ranch, and Eastlake Woods and Vista); and WHEREAS a mandatory pre -bid meeting was held on April 23, 2015, to review and clarify bid requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid Group to the lowest responsible and responsive bidder for each Bid Group; and WHEREAS City staff received bids from four landscape maintenance companies and held a public bid opening on May 4, 2015; and WHEREAS the following bids were received for Bid Group 1: Name of Contractor Amount of Bid Aztec Landscaping, Inc. $326,902.88 Blue Skies Landscape Maintenance, Inc. $320,257.40 Brickman Group $336,732.00 Pacific West Land Care, Inc. $380,635.00 WHEREAS, Blue Skies Landscape Maintenance, Inc.'s bid was lower than the second lowest bidder by $6,645.48; and WHEREAS, Blue Skies Landscape Maintenance, Inc. has previously performed and completed similar work for the City in a satisfactory manner. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby accept the bids, award a landscape maintenance contract to Blue Skies Landscape Maintenance, Inc. for Open Space District Bid Group 1 in the amount of $320,258, and authorize the City Manager or his designee to execute the contract. Presented by Approved as to form by 2015 -05 -26 Agenda Packet Page 115 Richard A. Hopkins Director of Public Works Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 116 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 2 OPEN SPACE DISTRICTS 5, 6, 9, 10, 11, AND 26 IN THE AMOUNT OF $190,252 AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT WHEREAS the City has 42 Open Space Districts and Maintenance Community Facilities Districts (collectively the "Districts ") and levies an annual assessment on property owners within each district to provide funding for maintenance of common area spaces; and WHEREAS the City contracts with landscape firms to provide landscape maintenance services for the Districts; and WHEREAS in six Districts, the landscape maintenance contracts have been vacated; and WHEREAS on April 17, 2015, City staff issued a Request for Proposals for landscape maintenance services for common area spaces within six Districts (Bid Group 2 Open Space Districts 5, 6, 9, 10, 11, and 26); and WHEREAS a mandatory pre -bid meeting was held on April 23, 2015, to review and clarify bid requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid Group to the lowest responsible and responsive bidder for each Bid Group; and WHEREAS City staff received bids from four landscape maintenance companies and held a public bid opening on May 4, 2015; and WHEREAS the following bids were received for Bid Group 2: Name of Contractor Amount of Bid Aztec Landscaping, Inc. $190,251.40 Blue Skies Landscape Maintenance, Inc. $197,304.72 Brickman Group $205,908.00 Pacific West Land Care, Inc. $239,249.00 WHEREAS, Aztec Landscaping, Inc.'s bid was lower than the second lowest bidder by $7,053.32; and WHEREAS, Aztec Landscaping, Inc. has previously performed and completed similar work for the City in a satisfactory manner. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the bids, award a landscape maintenance contract to Aztec Landscaping, Inc. for Open Space District Bid Group 2 in the amount of $190,252, and authorize the City Manager or his designee to execute the contract. Presented by Approved as to form by 2015 -05 -26 Agenda Packet Page 117 Richard A. Hopkins Director of Public Works Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 118 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS BETWEEN THE CITY AND BLUE SKIES LANDSCAPE MAINTENANCE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 3 COMMUNITY FACILITIES DISTRICT VILLAGE 11 PHASE 3 IN THE AMOUNT OF $193,413 AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CONTRACT WHEREAS the City has 42 Open Space Districts and Maintenance Community Facilities Districts (collectively the "Districts ") and levies an annual assessment on property owners within each district to provide funding for maintenance of common area spaces; and WHEREAS the City contracts with landscape firms to provide landscape maintenance services for the Districts; and WHEREAS in one Community Facilities District, the landscape maintenance contract has been vacated; and WHEREAS on April 17, 2015, City staff issued a Request for Proposals for landscape maintenance services for common area spaces within one Community Facilities District (Bid Group 3 Community Facilities District Village 11 Phase 3); and WHEREAS a mandatory pre -bid meeting was held on April 23, 2015, to review and clarify bid requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid Group to the lowest responsible and responsive bidder for each Bid Group; and WHEREAS City staff received bids from four landscape maintenance companies and held a public bid opening on May 4, 2015; and WHEREAS the following bids were received for Bid Group 3: Name of Contractor Amount of Bid Aztec Landscaping, Inc. $197,348.00 Blue Skies Landscape Maintenance, Inc. $193,412.52 Brickman Group $212,004.00 Pacific West Land Care, Inc. $234,227.00 WHEREAS, Blue Skies Landscape Maintenance, Inc.'s bid was lower than the second lowest bidder by $ 3,935.48; and WHEREAS, Blue Skies Landscape Maintenance, Inc. has previously performed and completed similar work for the City in a satisfactory manner. 2015 -05 -26 Agenda Packet Page 119 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby accept the bids, award a landscape maintenance contract to Blue Skies Landscape Maintenance, Inc. for Open Space District Bid Group 3 in the amount of $193,413, and authorize the City Manager or his designee to execute the contract. Presented by Richard A. Hopkins Director of Public Works Approved as to form by Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 120 BID,. o. B02 -14/15 _Ct_TYOF CHUTA VISTA PUBLIC WORKS (OPERATIONS) Open Space Landscape Maintenance Division Performance Standards Page 1 Overview These principles describe landscape maintenance performance standards necessary to maintain areas of designated open space districts in a safe, attractive, and usable condition. Included in these standards are criteria covering irrigation, pruning, shaping and training of trees, shrubs and ground cover plants; fertilization, weed control, eradication of plant diseases and pests; mowing; brush clearance; maintenance and repair of fences, pathways and trails, walls, bollards, gates, benches, dog stations, bridges, lighting, irrigation and drainage systems. The Contractor shall furnish all labor, equipment, materials, tools, services, incidentals, and special skills required to perform the landscape maintenance as set forth in these specifications. Work Schedule The Contractor shall accomplish all normal landscape maintenance required between the hours of 6:00 A.M. and 6:00 P.M., from Monday to Friday. No maintenance functions that generate excess noise that would cause annoyance to residents of the area shall start before 8:00 a.m., except in the case of a situation deemed emergency in nature. The Contractor must establish a daily eight -hour work schedule, with a minimum of six hours on site, which corresponds to City - defined minimum manpower and equipment resource requirements. The Contractor has also been provided the opportunity and procedure for adjusting those schedules to meet special circumstances and inclement weather. Failure to complete the work as scheduled or as specified herein will result in the following actions: a. The sum of Two Hundred Fifty Dollars ($250) per day will be deducted and forfeited from payments to the Contractor for each instance where an item of work is not completed in accordance with the schedule or specifications. b. Deficiencies: An additional amount equal to the costs incurred by completion of the work by an alternate source, whether it be City forces or separate private contractor, even if it exceeds the contract unit price, will be deducted from the Contractors invoice. c. These actions shall not be construed as penalty but as adjustment of payment to the Contractor for only the work actually performed or as the cost to the City for inspection and other related costs from the failure by the Contractor to complete the work according to schedule. 2015 -05 -26 Agenda Packet Page 121 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 2 d. Holidays: The City is closed and the Contractor shall observe the following City Hard Holidays: • New Year's Day — January 1 • Martin Luther King Day — Third Monday in January • Cesar Chdvez Day — March 31 • Memorial Day — Last Monday in May • Independence Day — July 4 • Labor Day — First Monday in September • Veterans Day — November 11 • Thanksgiving Day — Fourth Thursday in November • Day after Thanksgiving Day • Christmas Day — December 25 Public Convenience The Contractor shall conduct the work at all times in a manner which will not interfere with normal pedestrian traffic on adjacent sidewalks or vehicular traffic on adjacent streets /roadways. Notification The Contractor shall provide written notice to the City listing exact starting dates of fertilization and other infrequent operations such as tree trimming, brow ditch clearing, etc. Such notice shall be furnished to the Director of Public Works or his designee at least ten (10) working days in advance of the starting date. City approval is required prior to commencement of work. Irrigation The contractor shall have the ability to monitor and respond to web -based and other Central Irrigation Systems. Irrigation shall be done by the use of manual and /or automated systems, where available and operable; however, failure of the existing irrigation system to provide full and proper coverage shall not relieve the Contractor of this responsibility. All areas not adequately covered by a manual and /or automated sprinkler system shall be irrigated by a portable irrigation method. The Contractor shall furnish all hoses, nozzles, sprinklers, etc., necessary to accomplish this supplementary irrigation. The Contractor shall have a Reclaimed Water Site Supervisor Certificate from the local water purveyor. Care shall be exercised to prevent a waste of water, erosion, and /or detrimental seepage into existing underground improvements or structures. When negligence on the part of the Contractor results in excessive use or waste of irrigation water, water that is used in excess of the monthly budgeted amount may be estimated, with the cost of the excess water to be deducted from the contract payment. The City shall be the sole judge of what constitutes "excessive use or waste of irrigation water". Any damages to public or private property resulting from excessive irrigation or irrigation water run -off shall be charged 2015 -05 -26 Agenda Packet Page 122 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 3 against the contract payment unless the Contractor makes immediate repairs which must be to the satisfaction of the Director of Public Works or his designee. All irrigation controllers shall be turned off during periods of rain by the Contractor and turned back on and reprogrammed at the end of each rainy period. Periods during which the controllers are programmed off do not vacate the contractor's responsibility to inspect, monitor, and repair the irrigation systems. The Contractor shall keep irrigation controllers, electric meters, pull boxes, and valve boxes clear of plant material, soil, debris, and any pests located within and maintain the system, at no additional cost to the City, from the electric and water meters, throughout the work site. This includes, but is not limited to: the replacements, repairs, adjustment, raising or lowering, straightening, and any other operation required for the continued efficient operation of the system. The City will compensate the Contractor for materials used in the repair of irrigation damaged by vandalism, theft, disappearance, or wear and tear of irrigation components through normal use. Contractor will be reimbursed for parts and up to 10% handling costs on approved irrigation repair invoices. Labor, tools, equipment, and other overhead expenses are considered to be included in the contract amount bid to maintain the district. Upon receipt of an approved invoice from the Contractor itemizing the materials involved, payment will be processed in accordance with established terms. The Contractor will be responsible for monitoring and maintaining irrigation parts costs within the established budget for the District. Any necessary parts purchases that may exceed the annual budget for parts in a District must have pre - approval from the Inspector for the District or risk non - payment. The City reserves the right to designate suppliers for these repair materials. A written report shall be submitted by the Contractor for all occurrences of vandalism, theft, disappearance, or worn out irrigation components, detailing the quantity, size, and location no later than five (5) working days after the discovery of such occurrence. Contractor's failure to meet this requirement will result in Contractor responsibility for total repair costs. The Contractor shall periodically inspect the operation of the irrigation system for any malfunction. This periodic inspection shall occur at least once each week. Any replacement must conform to the type and kind of existing system. The Director of Public Works or his designee must approve any deviation from the existing type in writing. The Contractor shall, at the beginning of the maintenance period, inspect the entire sprinkler system with the City's representative to become familiar with the locations of valves, heads, controllers, electric valves, meters, and hose bibs. Special attention shall be directed to the maintenance of sprinkler equipment. Risers shall be adjusted by extension and location as plant material grows up and /or spreads out and adversely affects performance of the sprinklers. The Contractor shall promptly repair any damage to, or 2015 -05 -26 Agenda Packet Page 123 —Ct—TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 4 malfunction of, the irrigation system. At no time will irrigation systems be shut down for extended periods — repairs are to be made as discovered and reported. Required Irrigation Reports All irrigation systems shall be visually inspected a minimum of once per week, including reading and documenting the numbers from each water meter servicing the landscape. Full and complete irrigation systems check, including a mainline leak test, shall be performed monthly. This information shall be included within the monthly irrigation tracking report (see attached form). The Monthly Irrigation Tracking Sheet and any repair invoices for parts and handling from the prior month shall be submitted to the Open Space Inspector for each area by the fifth day of each month prior to authorization of monthly maintenance payments. The Contractor shall also provide a spreadsheet report showing cumulative monthly water usage for each water meter. The City may require a change in the irrigation schedule at any time if it becomes necessary for water conservation. The contractor shall be responsible for input and maintenance of irrigation schedules and programs as directed by the City. Reclaimed water The Contractor will be responsible for following and complying with all local, state, and federal laws related to reclaimed water irrigation installation and operation. This includes preparing for and participating in any and all water agency or Department of Health inspections and walkthroughs. Water Conservation The Contractor shall abide by any and all water conservation programs currently in effect by the water purveyor and will be responsible for compliance with any emergency guidelines, rules, and regulations effected during water crises. Failure to observe, obey, and comply with the aforementioned will be the financial responsibility of the Contractor. For example, negligent or untimely irrigation system maintenance producing water waste resulting in citations or fines by the water purveyor will be the responsibility of the Contractor. Irrigation scheduling programs will be set by the Department of Public Works or its representative. Any changes in programming must be done with prior City approval. Irrigating Trees and Shrubs The City at its sole option may decide to plant new trees and /or other landscape material within the maintained area. The Contractor shall be responsible for providing adequate supplemental irrigation following planting to facilitate new growth during the establishment period. The Contractor at no additional cost to the City shall provide additional weed control, irrigation maintenance, and plant maintenance required until plants are established. 2015 -05 -26 Agenda Packet Page 124 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 5 Maintaining Shrubs and Ground Cover Plants All shrubs and ground cover plants growing in the work area shall be pruned, as required, to maintain plants in a healthy growing condition. Dead or damaged limbs or branches shall be removed immediately and all pruning cuts shall be made properly and cleanly with sharp pruning tools, with no projections or stubs remaining. All plant pruning shall be accomplished in a manner which will permit the plants to grow naturally in accordance with their natural /normal growth characteristics. Shrubs used as formal hedges or screens shall be pruned as required to present a neat appearance. A formal hedge, whether new or established, should be tapered so that it is wider at the bottom than the top, ensuring the lower part will get the sunlight it needs for healthy growth. Remove any spent blossoms or dead flower stalks as required to present a neat and clean appearance. Shrubs and mounding plants shall not exceed two feet (2') in height within areas required for vehicular sight distance depending upon roadway topography. The Contractor shall: • Trim ground cover plants adjacent to walks, walls, and /or fences as required for general containment to present a neat, clean appearance. • Keep ground cover plants trimmed back from all controller units, valve boxes, quick couplers, or other appurtenances or fixtures. • Not allow ground covers to grow up trees, into shrubs, or on structures or walls. • Keep ground covers trimmed back approximately twelve inches (12 ") from structures or walls. • Coordinate trimming around base of shrubs /trees with the City Representative. Weed and Pest Control All landscaped spaces within the specified maintenance area shall be continuously kept free of weeds at all times. This means that complete removal of all weed growth shall be accomplished on a continual basis as weeds appear, and not just once every 30 days. Weeds shall be controlled by hand, mechanical, or chemical methods. Effective pest control, including the control of vertebrate pests such as gophers, moles, and all such shall be performed in a safe manner for maximum control and also to minimize exposure to the surrounding environment. Weed and pest controls must include the use of integrated pest management (IPM) practices wherever possible. Monitoring of pest populations and natural predators, cultural practices to promote healthy, pest - resistant plant material are just a few examples of techniques that can be employed to minimize and augment chemical methods. 2015 -05 -26 Agenda Packet Page 125 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 6 Pesticides shall be applied at appropriate times which limit the possibility of environmental contamination through climatic or other factors and at the proper life cycle stage of the pests. Early morning application shall be used when possible to avoid environmental contamination from drift. Application of all pesticides shall be carried out only by State - Licensed Pest Control Operators or Qualified Applicator License (QAL) holders. Weed control chemicals shall be approved by the City prior to application. The Contractor is responsible for obtaining and maintaining site - specific written recommendations from a Pesticide Advisor prior to any applications. The Contractor is also responsible for all chemical use reporting required by the Department of Pesticide Regulation (DPR) in any area where herbicide and pesticide application will take place. Material Safety Data Sheets (MSDS) are required for all proposed chemical applications. All noxious plant materials such as, but not limited to, poison oak, wild mustard, pampas grass, tamarix, Arundo cane, tumbleweeds, etc., shall be removed immediately by hand. All pathways, sidewalks, curbs, and gutters shall be kept free of weeds by use of contact weed control chemicals. Weed grasses as well as broadleaf weeds shall be kept out of shrubs and groundcovers. Weeds and plant materials removed shall be disposed off site by the Contractor in a manner consistent with Federal, State, and Local rules and regulations. Turf and other plants killed by weeds, chemicals, etc., shall be replaced at the Contractor's expense. All replacements must be made after receiving notice from the City. Fertilization: Composition, Packnin2, Schedule, Rate of Application All proposed fertilizers must be approved by City staff prior to purchase or application in the field. All fertilizers must be of a homogeneous blend, and must be pre- approved prior to purchase, and an Open Space Inspector must count all bags, prior to application. Fertilizer shall be provided in fifty -pound (50 -1b), multi -wall paper bags, polyethylene -lined for moisture resistance, or plastic bags. The fertilizers shall be brought to the site in the original unopened containers bearing the manufacturer's guaranteed analysis. Damaged packages will not be accepted. The Contractor shall furnish the Director of Public Works or a designated representative with signed legible duplicate copies of all certificates and invoices for all fertilizer to be used. The invoices must state the grade, amount, and quantity received. The Director of Public Works or his representative on site must sign both the copy to be retained by the City and the Contractor's copy before any material may be used. The Contractor may not begin the actual fertilizer application until approval by the City has been obtained. 2015 -05 -26 Agenda Packet Page 126 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 7 Additionally, the Contractor shall submit as part of his written notice a schedule showing the site, amount of fertilizer (in number of bags) to be applied in the District, proposed date of application, and the approximate time of application of the fertilizer. Fertilizer type proposed requires prior City approval. The City shall be the sole judge of the acceptability of a fertilizer type. Material Safety Data Sheets (MSDS) shall be provided upon submittal of fertilizers for approval. Adequate irrigation will immediately follow the application of fertilizer to force the fertilizer to rest directly on the soil surface. Care shall be taken to ensure the fertilizer does not become caught in the plant foliage above the soil line. Excessive watering must be avoided to prevent the erosion of fertilizing materials or soil. In performing periodic operations as required herein, routine grounds maintenance services at the same work site such as, but not limited to, litter control, weed control, and irrigation shall continue without interruption. Fertilization: Trees, Shrubs, Ground Covers Fertilization of all trees, shrubs and ground cover plants, including plantings on hydroseeded banks within the District, shall be accomplished two (2) times per year by using an approved commercial grade fertilizer. Fertilization shall be applied within the following time frame: 1. Sept 15 -30 2. April 15 -30 Fertilizer with a formulation of 12 -4 -6 or equivalent shall be applied at one (1) pound of actual nitrogen per 1,000 square feet of planted area for shrubs, vines groundcovers, and trees. Acceptable organic fertilizer would contain a combination of naturally derived organic components and synthetic organic and inorganic components. The organic portion will be derived from dehydrated poultry manure obtained primarily from layers. Combining the various components creates a mixture of materials that will stimulate microbial activity in the soil in a way that enhances conversion of nutrients into forms usable by plants. The manure should be heat - treated below the combustion point to remove moisture and kill any pathogens that may be present. Product will be routinely tested for presence of enteric bacteria. Composted organic components will not be acceptable. Any equivalent formulation must have the ability to lower pH in the short term to facilitate uptake of nutrients by plant materials. Fertilization: Turf Fertilization of all lawn areas within the designated work area shall be accomplished four (4) times per year with approved commercial grade fertilizers. Fertilizer shall be applied to lawns within the following time frame: 1. September 1 -15 3. March 1 -15 2. November 15 -30 4. June 1 -15 2015 -05 -26 Agenda Packet Page 127 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 8 Fertilizer shall be applied at one (1) pound of actual nitrogen per 1,000 square feet of planted area. Fertilization must occur in the months listed above and shall be accomplished to achieve an even green appearance. If fertilization results are patchy, remedial fertilizer must be applied immediately at the Contractor's expense. Acceptable fertilizers include: June application = Super Turf, September application = Super Iron 9 -9 -9; November application = Nitra king; March application = Iron Advantage; or pre- approved equivalents. Lawn Maintenance Mowing shall be performed so that no more than one -third (1/3) of the grass blade is removed during each mowing in returning the grass to the accepted height for the species of grass being mowed. Inclement weather may preclude adherence to the frequency schedule. The Contractor may request alteration of this mowing frequency from the Director of Public Works or his designee for reasons of rain or prolonged cold. The Contractor shall bag all lawn clippings. The following mowing schedule shall apply to all Code 2 lawn areas listed in the bid portion of the contract document: Mowing Feauency & Requirements March 1 — November 30 1 time each week December 1 — February 28 1 time every 2 weeks All turf shall be edged adjacent to all improved surfaces. Where no improved surface exists, turf edges shall be maintained if the turf area abuts a shrub bed, property line, or to maintain turf delineation. Lawn areas shall be aerated a minimum of two (2) times each year and will be scheduled to occur during the following time frame: 1. April 15 -30 2. August 15 -30 Under adverse conditions or as a result of high use where turf is suffering from compaction, aeration may be necessary at more frequent intervals. Aeration shall be done with a power -driven or tractor- pulled aerator using one - half -inch coring tines. In performing periodic operations as required herein, routine grounds maintenance services at the same work site such as, but not limited to, litter control, weed control, and irrigation, shall continue without interruption. Tree Maintenance Trees shall be pruned as required to remove dead, diseased, crowded, broken, or hazardous branches or for safety. The Contractor performing the tree work shall be responsible for targeted pruning that will ultimately develop proper tree scaffold branches, strength, and appearance consistent with current International Society of Arboriculture (ISA) and ANSI A300 pruning Standards. All major tree pruning operations shall be scheduled and approved by the City 2015 -05 -26 Agenda Packet Page 128 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 9 Representative before work begins. All routine annual tree trimming shall begin November 1 and be completed no later than January 31. The Contractor shall check and correct tree stakes, ties, and guys as needed, adjust ties to prevent girdling, remove unneeded stakes, ties, and guys per City's request, and replace broken stakes as required. Topping of trees will not be allowed. Climbing spurs, except in the case of emergency or tree removal, will not be allowed. Pruning shall be done under the direction of a Certified Arborist, utilizing proper techniques to promote healthy growth and to avoid damage from improper tree pruning methods. Tree wound dressing will not be allowed. When pruning Canary Island palm trees, equipment shall be disinfected before and after trimming each tree and prior to progressing to the next tree. Low overhanging branches shall be maintained at a minimum height of 14 feet above street/roadway grade. Low branches overhanging sidewalks and parkways shall be maintained at a minimum height of eight (8) feet above grade. Ailing or stunted trees that fail to meet typical growth expectations shall be brought to the attention of the City Representative. Under no circumstances will stripping of lower branches of young trees be permitted. Lower branches shall be retained in a "tipped back" or pinched condition with as much foliage as possible to promote caliper - retained growth (tapered trunk). If there are doubts or questions, contact the City Representative. All trees shall be maintained in their natural shapes. The Contractor shall continuously remove "hanger" limbs and other obvious safety hazards as required. Trees lost from causes other than Contractor's negligence shall be removed and replaced by the Contractor with 15- gallon size trees at the City's expense. The Director of Public Works or his designee may specify an alternate tree species to replace the tree that was lost in each case. Any tree leaning or showing signs of root heaving shall be brought to the attention of the Director of Public Works or his designee. If, in the judgment of the Director of Public Works, the tree must be removed, the Contractor shall, at his sole expense, remove said tree by flush - cutting. Undesirable growth from the remaining stump shall be controlled by a City- approved method. In performing periodic operations as required herein, routine grounds maintenance services at the same work site such as, but not limited to, litter control, weed control, and irrigation shall continue without interruption. Low Flow and Brow Channel Maintenance During the months of September and October, the Contractor shall clean all soil and debris from the channels and cut all the overhanging plant materials back such that staff can easily walk all ditches for inspection. All plant materials and debris, other than soil and rocks, shall be removed from the job site. 2015 -05 -26 Agenda Packet Page 129 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 10 During the year, removal of woody plant materials growing in the cracks or edges of the channel shall be removed to prevent damage to the concrete. Also, any loose materials, other than soil, shall be removed during the contract year. Following the rainy season, removal of accumulated sedimentation will be required. Removal of Debris Promptly after the pruning, trimming, weeding, edging, and other work required, the Contractor shall remove all debris generated by his/her performance of the work. Immediately after working in the areas of public walks, driveways, medians, or paved areas, they shall be thoroughly cleaned. All areas shall be kept free of, but not limited to, the following: bottles, cans, paper, cardboard, and metallic items. Removal of common debris, including emptying of waste receptacles, shall be performed on a continual basis with a minimum of once a week pick -up. Areas containing medians, walkways, or asphaltic concrete, stamped or textured concrete, and /or concrete shall be swept as needed to maintain such walkways and areas in a safe and attractive manner. Replacement of Plant Materials The Contractor shall replace any tree, shrub, or ground cover plant which is damaged or lost as a result of faulty maintenance at no additional cost to the City. The Director of Public Works or City representative shall be the sole judge of what constitutes "faulty maintenance ". Any plant damaged or lost through vandalism shall be replaced at City expense. Charges for replacement of plants and trees lost through vandalism shall be at a mutually negotiated amount. At the City's sole discretion, it may be desirable to replace certain plants during the contract term. The Director of Public Works or City representative shall determine the necessity or desirability of such plant replacement. The Contractor shall be responsible for the maintenance of the replacement plants at no additional cost to the City. The City will be responsible for the cost of replacing the plants. Brush Clearance Contractor will be responsible for yearly brush clearance where the Open Space District borders private property and when directed by the City's Fire Marshal. A standard clearance of 10 feet from property line will be maintained with a minimum of 30 feet distance from any private residence. In areas where the residence may be closer than 20 feet to the property line, additional clearance may be required to establish the 30 feet minimum clearance. The Contractor shall take notice of potential areas to be cleared during the pre -bid inspection as no adjustment in contract pricing will be allowed after contract award. Cleared material shall be legally disposed of from the work area. Environmental Regulations The Contractor is required to abide by all local, state, and federal laws related to environmentally sensitive lands located within the District. Large portions of Code 4 and Code 5 areas are located 2015 -05 -26 Agenda Packet Page 130 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 11 within Multiple Species Conservation Plan (MSCP) areas and may contain protected or endangered species. Any maintenance activities performed within these areas will be subject to all regulations contained within the MSCP and must be pre- approved and closely monitored by City of Chula Vista Environmental Planning staff. 2015 -05 -26 Agenda Packet Page 131 CODE # 4 5 BID,. o. B02 -14/15 _Ct_TYOF CHUTA VISTA OPEN SPACE LANDSCAPE MAINTENANCE AREA CODE DESCRIPTIONS AREA IDENTIFICATION CODE DESCRIPTION Page 12 Areas containing permanent irrigation systems planted in ground cover, shrubs, and trees. Code 1 areas shall be kept weed -free at all times. Plant materials and grasses not consistent with established plantings are considered weeds. Any areas not fully covered with planned ground CODE 1 covers are to be replanted by the contractor and grown to fully cover the areas during the normal growing season, at no additional cost to the City. Weeding shall be done as necessary to create a well - balanced annearance Code 2 areas are lawns with permanent irrigation systems. Weeding shall be done as necessary to create a well - manicured appearance. CODE 2 Areas containing permanent irrigation systems initially planted with hydroseed mix, ground covers, shrubs, and trees. Code 3 areas shall be kept weed -free as required by the Director of Public Works or CODE 3 his designee. Weeds are considered plants (wild flowers and grasses) not consistent with the original hydroseed mix. The intent is to maintain healthy vegetation for erosion control purposes. Code 4 areas contain permanent or temporary irrigation systems in natural open space lands and slopes with indigenous plant growth. The Contractor shall do weed abatement in these areas, as required by the Director of Public Works or his designee, to CODE 4 control noxious plant materials such as tumbleweeds, pampas grass, tamarix, Arundo cane, etc. The Contractor shall maintain trails on a weekly basis to insure clear, smooth, trash -free travel routes, quarterly grooming to include re- compacting of loose material, and immediate response to needed repairs after rain. Two times per year, areas of non - irrigated open space shall be cleaned of debris including but not limited to the following: bottles, cans, paper, cardboard or metallic items. Removal of CODE 5 noxious plant materials such as tumbleweeds, pampas grass, tamarix, arundo cane, etc, as directed by the Director of Public Works or his designee. 2015 -05 -26 Agenda Packet Page 132 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Deficient Performance Page 13 The Contractor shall be notified verbally or in writing each time performance is unsatisfactory and corrective action is necessary. The Contractor shall complete corrective action within the following time frames subsequent to verbal notification: a. Major irrigation malfunction must be repaired within twelve (12) hours. b. Public Health and Safety issues (Risk Management) shall be corrected immediately upon notification from the City Representative. c. Failure to comply with City - defined minimum manpower requirements will result in the immediate deficiency deduction of Two Hundred Dollars ($200) per person per day from payments to the Contractor. d. Failure to immediately comply with conditions, specifications, schedules, and directives from the City Representative or Public Works Director will result in a deficiency deduction of Two Hundred Fifty Dollars ($250) per instance from payments to the Contractor. e. Failure to mow, edge, trim, hedge, aerate, sweep, pick up trash /debris, perform brow channel or trail maintenance, perform brush management, apply chemicals, or prune in an approved, professional manner as specified in this contract or as directed by the City Representative or Public Works Director will result in a $250 per day deduction until all deficiencies are corrected. f. Failure to comply with water restrictions imposed by Local Water Authorities will result in a deficiency deduction of Two Hundred Fifty Dollar ($250) per occurrence. In addition, the Contractor shall be responsible for all other penalties imposed by Water Authorities due to Contractor neglect. g. Failure to respond to an emergency page /cell call during working hours within fifteen (15) minutes will result in a $250 deficiency per occurrence. Failure to respond to an emergency page /cell call outside of normal hours within sixty (60) minutes will result in a $250 deficiency per occurrence. Failure to comply with the Regional Water Quality Board/National Pollutant Discharge Elimination System (NPDES) restrictions/ guidelines imposed by Local Water Authorities will result in a deficiency deduction of Two Hundred Fifty Dollars ($250) per occurrence. Additionally, the Contractor shall be responsible for all other imposed penalties by Water Authorities that are related to Contractor neglect. h. Failure to submit all monthly irrigation - tracking sheets will result in a deficiency deduction of Two Hundred Fifty Dollars ($250.00) per occurrence. 2015 -05 -26 Agenda Packet Page 133 —Ct—TYOF BID,. o. B02 -14/15 CHUTA VISTA Page 14 Withholding of Payments The City may withhold or permanently retain payments to such extent as may be necessary to protect the City from loss due to: I. Work required in the specifications, which is defective, incomplete, or not performed. 2. Claims filed against the City for damage caused by the Contractor's acts or reasonable evidence indicating probable filing of claims. 3. Failure of the Contractor to make proper payments to subcontractors for materials or labor. 4. A reasonable doubt that the contract can be completed for the unpaid balance. Failure to Perform Satisfactorily It is agreed and understood that if the Contractor fails to perform the work as required, the Director of Public Works (1) will pay only for the amount of service received as determined solely by the City, with an appropriate downward adjustment in contract price, or (2) may have such required work done by City crews or otherwise and charge the cost thereof to the Contractor or Contractor's surety agent. Those discrepancies and deficiencies in the work that remain uncorrected may result in billing adjustments in the following month. Billing adjustments for this unsatisfactory service shall be permanent retention of 100% of the estimated monthly cost for work that is incomplete or deficient as stated herein. Should failure to perform persist, the City reserves the right to take action against the performance bond or terminate the contract. 2015 -05 -26 Agenda Packet Page 134 BID,. o. B02 -14/15 _Ct_TYOF CHUTA VISTA General Conditions Page 15 Bidder's Security A bid security in an amount equal to ten percent (10 %) of the bid is required. The bid security may be furnished in the form of cash, cashier's check, certified check, or a bid bond. If the bid security is a bond, it shall be executed by a surety company authorized to transact business in the State of California. The bid security must be included in the sealed envelope with the bid proposal. Faithful Performance Bond Contractor shall furnish the City with a surety bond conditioned upon the faithful performance of the contract. The bond shall be in a sum equal to twenty -five percent (25 %) of the amount of contract price. This bond shall be executed by a surety company authorized to do business in the State of California and approved by the City of Chula Vista. An endorsed Certificate of Deposit, money order, or certified check may be provided in lieu of an actual bond. Such bond or deposit shall be forfeited to the City in the event that the contractor fails or refuses to fulfill all performance requirements of the contract. If the contract is optioned for future years, for the purpose of renewing the contract, the Contractor shall provide a new valid faithful performance bond no later than thirty (30) prior to the current faithful performance bond expiration date. Failure by the Contractor to provide the new faithful performance bond shall be considered a default by Contractor and may subject the Contractor to a suspension or termination of work under the contract. Insurance A. Contractor shall, throughout the duration of the contract, maintain comprehensive general liability, property damage, and automobile insurance, or commercial general liability insurance, covering all operations of Contractor, its agents and employees, performed in connection with the contract, including but not limited to premises and automobiles. B. Contractor shall maintain the following minimum limits: General Liability Combined Single Limit Per Occurrence $1,000,000 General Liability $1,000,000 Property Damage $1,000,000 Automobile Liability $1,000,000 The City reserves the right to require insurance for a higher coverage than the minimum limits. C. All insurance companies affording coverage to the Contractor shall be required to add the City of Chula Vista as an "additional insured" under the insurance policy for all work performed in accordance with the contract. All insurance companies policies shall be issued by a carrier that has Best's rating of "A; Class V" or better, or shall meet the approval of City's Risk Manager. 2015 -05 -26 Agenda Packet Page 135 —Ct—TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 16 D. All insurance companies affording coverage shall provide thirty (30) days written notice to the City of Chula Vista should the policy be canceled before the expiration date. For the purposes of this notice requirement, any material change in the policy prior to the expiration shall be considered a cancellation. E Evidence of such coverage, in the form of a Certificate of Insurance and Policy Endorsement, shall be submitted to the Purchasing Division within ten (10) days after the award of a Contract. This endorsement must be on a separate "Schedule B ". Contractor shall provide a substitute certificate of insurance no later than thirty (30) days prior to the policy expiration date. Failure by the Contractor to provide such a substitution and extend the policy expiration date shall be considered a default by Contractor and may subject the Contractor to a suspension or termination of work under the contract. Insurance Certificates shall not include "Modified Occurrence" restrictions. No substitutions shall be allowed. Worker's Compensation Insurance The Contractor shall also carry Worker's Compensation insurance in statutory amount and Employer's Liability coverage in an amount not less than $500,000 and up to $1,000,000 at the City's discretion; evidence of which is to be furnished to the City in the form of Certificate of Insurance. Hold Harmless and Indemnification Contractor shall defend, indemnify, protect, and hold harmless the City of Chula Vista, its elected and appointed officers and employees, from and against any and all claims for damages, liability, cost and expense (including without limitation attorney's fees) arising out of the conduct of the Contractor, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by the contract, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Contractor's indemnification shall include any and all costs, expenses, attorney's fees, and liability incurred by the City, it's officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Contractor at its sole expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Contractor's indemnification of City shall not be limited by any prior or subsequent declaration by the Contractor. Taxes All applicable State or Federal taxes shall be considered as included in the amount paid for services performed. The Contractor shall be responsible for payment of such taxes to the proper governmental authority. Licenses and Permits 2015 -05 -26 Agenda Packet Page 136 —Ct—TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 17 Contractor and all subcontractors, if any, shall be licensed in accordance with the provisions of Chapter 9 of Division III of the Business and Professions Code, State of California. Contractor shall procure all licenses and permits required to perform the work described. Contractor shall further pay all charges and fees required to maintain required licenses and permits. The Contractor and subcontractors shall possess a valid City of Chula Vista Business License while performing work within City limits. Term Contractor shall perform all services required as specified on the Bid Form through June 30, 2016. The City may elect to exercise options to renew the contract for three (3) additional one (1) year periods ( "option years "): (1) July 1, 2016 through June 30, 2017 (2) July 1, 2017 through June 30, 2018 (3) July 1, 2018 through June 30, 2019 Additional extensions of one (1) year, or part thereof, shall be by mutual agreement of the Contractor and City. In the event the Contractor chooses not to accept the City's offer to renew the contract through an Option Year extension, the Contractor is required to notify the City of such no less than ninety (90) days prior to the start of the Option Year extension. Price Adjustment Clause Prices shall be firm for the initial contract period. However, if it is determined that the San Diego Area Consumer Price Index for Urban Wages Earners and Clerical Workers (CPI -W) has changed for the option years, the Contractor, after (1) giving written notice of such change, and (2) furnishing the City with copies of the change (from January 1 of the previous year to January 1 of the current contract year); may adjust the price quoted to the City by an amount not to exceed the percentage variant in the CPI -W during the previous 12 months, or five per cent (5 %) of the price quoted, whichever is less. Only one (1) price adjustment will be allowed for each option year. Written requests for option year price adjustments shall be made prior to April 1 of the contract year. The City reserves the right to accept option year price increases or terminate the contract without penalty. 2015 -05 -26 Agenda Packet Page 137 —Ct—TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 18 Measurement of Quantities for Unit Price Work The estimate of the quantities of work to be done and materials to be furnished are approximate only, being given as a basis for the comparison of bids. The City of Chula Vista does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease by any amount or to omit portions of the work as may be deemed necessary or expedient by the City with no adjustment in unit price. The City of Chula Vista reserves the right to use Contractor unit pricing to facilitate Developer turn-overs for landscaped area being added to any CFD area or adjacent to CFD maintained areas. Cooperation Contractor shall work closely with the Director of Public Works in performing work required to achieve the result which the City expects Contractor to accomplish. The Director of Public Works may delegate authority in connection with this Agreement to the Open Space Manager. For the purposes of directing the Contractor's performance, authority is hereby delegated to the Open Space Manager. Inspection by City The City will inspect the work area to ensure adequacy of maintenance and that methods of performing the work are in compliance with the contract. Discrepancies and deficiencies in the work shall be corrected by the Contractor immediately upon notification by the City. Maintenance services performed by the Contractor shall be performed to the satisfaction of City, Director of Public Works, or his designee. Method of Payment; Monthly Reports The Contractor will be paid monthly, in arrears, for work performed satisfactorily. By the fifth day of each month, the Contractor shall submit a detailed report of maintenance performed and materials used, areas and /or units affected, and staff hours expended in the prior month as well as the required Monthly Irrigation Tracking Form (see Irrigation section pie 3), irri atg ion parts billing and monthly maintenance billing. The monthly report shall also include a statement of all applications of herbicides, rodenticide, and pesticides detailing the chemical used, quantity, rate of application, area in which used, and the purpose of the application. Upon successful completion of a month's work, payment will be made equal to one twelfth of the annual contract bid price. Billing shall be in accordance with bid prices submitted and allowing for City approved adjustments, if any. Emergency Calls The Contractor shall have the capability to receive and respond immediately to calls of an emergency nature during normal working hours and during hours outside of normal working hours. Calls of an emergency nature received by the Director of Public Works shall be referred to the Contractor for immediate disposition. 2015 -05 -26 Agenda Packet Page 138 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 19 Personnel The Contractor shall furnish sufficient supervisory and working personnel capable of promptly accomplishing on schedule, and to the satisfaction of the Director of Public Works, all work required under this contract during the regular and prescribed hours. All such personnel shall be physically able to do their assigned work. The Contractor and his employees shall conduct themselves in a proper, safe, and efficient manner at all times and shall cause the least possible annoyance to the public. They shall be fully clothed in suitable uniform attire with a company- identifying marker (personnel fully clothed and wearing a safety vest with the company identification on the back will be considered suitable uniform attire). The Director of Public Works will require the Contractor to remove from the work site any employee(s) deemed careless, incompetent, or otherwise objectionable, whose continued employment on the job is considered to be contrary to the best interest of the City of Chula Vista. The Contractor shall have competent supervisors, who may be working supervisors, on the job at all times work is being performed, who are capable of discussing in English with the Director of Public Works matters pertaining to work required. Supervisors must have a minimum of three (3) years of actual field experience and must be able to demonstrate to the satisfaction of the Director of Public Works that they possess adequate technical background. Adequate and competent supervision shall be provided for all work done by the Contractor's employees to ensure accomplishment of high quality work which will be acceptable to the Director of Public Works. In addition, a non - working supervisor shall inspect all areas under the contract a minimum of once per month with the Director of Public Works or his designee. Independent Contractor Contractor's relationship to the City shall be that of an independent contractor. Contractor shall have no authority, expressed or implied, to act on behalf of the City as an agent, or to bind the City to any obligation whatsoever. Contractor shall be solely responsible for the performance of any of its employees, agents or subcontractors under any contract awarded. Contractor shall report to the City any and all employees, agents, and subcontractors and /or consultants performing work, in connection with this project, and all shall be subject to prior approval of the City. Prevailing Wages Recent State legislation imposes prevailing wage requirements on the work to be performed by Contractor during the term of this contract. Department of Industrial Relations (DIR) Registration Requirements • No contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, unless currently registered with the Department of Industrial Relations and qualified to perform public work pursuant to Labor Code section 1725.5. [Labor Code section 1771.1(a)]. 2015 -05 -26 Agenda Packet Page 139 _Ct_TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 20 No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. • This contract is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Wage Rates for State funded Projects /Contracts The contractor and its subcontractors are required by bid specifications to pay prevailing wage ( "Prevailing 'Wage Rates ") to persons employed by them for work under this Contract. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City of Chula Vista has ascertained the general prevailing wage scales applicable to the work to be done. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California. The State prevailing wage rates determination is available directly from the Director of Industrial Relations, State of California home page under www.dir.ca.gov /dlsr /. Worker and Wage Classifications The contractor is required to provide with its bidding documents a list of its subcontractors and the classifications and wages of its workers. The worker classifications must be compliant with the specifications of the Department of Industrial Relations, State of California. Non - Discrimination The City of Chula Vista hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this notice, minority business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, or national origin in consideration for an award. Termination for Cause The following conditions constitute default for which the City may terminate a contract: A. Any material misrepresentation, whether negligent or intentional, by Contractor. B. Contractor's failure to perform any of its material obligations under a contract, including but not limited to: 1. Failure to perform any obligations reasonably within Contractor's control (including but not limited to lack of sufficient or adequate personnel, equipment, and /or materials); 2. Contractor's failure to promptly perform or correct any of its obligations; 3. Contractor's unapproved discontinuance of any of its obligations required under a contract; 4. Contractor's insolvency, filing for bankruptcy, or unapproved assignment for the benefit of creditors or otherwise; Prior to terminating a contract for cause, the City will first notify the Contractor in writing of such failure to meet the obligations of a contract. Within ten (10) calendar days of such written 2015 -05 -26 Agenda Packet Page 140 —Ct—TYOF CHUTA VISTA BID,. o. B02 -14/15 Page 21 notice, Contractor shall have corrected the failure or shall have provided a written cure plan acceptable to the City that outlines its current or planned actions to correct such failure. If the Contractor fails to cure such breach or provide a written cure plan acceptable to the City within the ten (10) day time period, then the City shall have the right to terminate the contract by giving written notice to Contractor specifying the effective date of such termination. In addition to the remedy set forth above, the City retains the right to pursue any and all other available remedies under law or in equity, including but without limitation, action against the performance bond. Where public interest or necessity demands the immediate termination of the contract to safeguard life, health, or property, the City may terminate the contract immediately without prior notice of deficiencies, and no opportunity to cure failures will be provided. Termination for Convenience City may terminate the contract at any time, and for any reason, by giving specific written notice to the Contractor of such termination and specifying the effective date thereof, at least thirty (30) days prior to the effective date of such termination. If the contract is terminated by City as provided in this paragraph, Contractor shall be entitled to receive just and equitable compensation for any satisfactory work completed. Contractor expressly agrees that no further penalties, remedies, or consideration would be forthcoming in the event of termination for convenience. Interpretation of Agreement The interpretation, validity and enforcement of any contract awarded shall be governed by and construed under the laws of the State of California. The Contractor shall be responsible for complying with any Local, State, and Federal laws whether or not said laws are expressly stated or referred to herein. Should any provision herein be found or deemed to be invalid, the contract shall be construed as not containing such provision, and all other provisions that are otherwise lawful shall remain in full force and effect, and to this end the provisions of the contract are severable. Administrative Claims Requirement and Procedure No suit shall be brought against the City arising out of a contract awarded, unless a claim has first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by the City, Contractor shall meet and confer in good faith with the City for the purpose of resolving any dispute over contract terms and conditions. 2015 -05 -26 Agenda Packet Page 141 -y 7 c0 �R P� I. 2015 -05 -26 Agenda Packet X 1 ■ 5 4 "I Landscape code code 1 code 2 code 3 code 4 Wcode 5 MIME _� 3 El. I w ON, 1,447ifal v I lWal rt ist C "Y ti OP-0 m 2 Landscape code code 1 code 2 code 3 code 4 w code 5 2015 -05 -26 Agenda Packet \—� \ -� J- '\ \ x \ \ n \ n Page 144 oRN� Collin 2015A05 -26 arich y VQ iN \ • Page 146 so Ah ly is, M—ow alb 0 sloolor Will :� VIII art$ Aft III District 26 500 code 2 code 3 code 4 / \ �� I code 5 2015/65 -26 Agenda Packet Page 152 e s i ol i i i i i i i Page 153 CITY OF CHULA VISTA File #: 15 -0188, Item #: 9. City of Chula Vista Staff Report CONSIDERATION OF AN AMENDMENT TO CHULA VISTA'S PORTION OF THE 2014 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE AMENDMENT OF THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2014/2015 THROUGH 2018/2019 FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM, REDUCING THE STM383 CIP BUDGET BY $200,000 IN TRANSNET FUNDS AND APPROPRIATING THE EQUIVALENT AMOUNT TO STM361 ($125,000) AND STL394 ($75,000), AND PROVIDING THE CERTIFICATION AND INDEMNITY STATEMENTS NECESSARY TO OBTAIN TRANSNET FUNDS (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY The San Diego Association of Governments (SANDAL) is accepting submittal of requests for the fifth amendment to the 2014 Regional Transportation Improvement Program (RTIP) beginning April 24, 2015. Signed resolutions must be submitted to SANDAG by June 5, 2015. Staff recommends several adjustments to the TransNet allocations adopted as part of the 2014 RTIP and as part of the last amendment in order to accommodate projects that need additional funding. ENVIRONMENTAL REVIEW For Actions Related to CHV30 (STM 361): The Director of Development Services has reviewed the proposed activity, consisting of approval to submit a funding request for various TransNet Projects to SANDAL, for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have significant effect on the environment; therefore, pursuant to Section 15061 (b) (3) (General Rule) of the State CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, additional environmental review will be required as applicable prior to the approval of any future project specific development entitlements including, but not limited to, site development plans, building permits, land development permits, and conditional use permits. For Actions Related to Other Projects: The Director of Development Services has reviewed the proposed activity for compliance with the City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 5 Printed on 5/21/2015 powered by LegistarT"^ Page 154 File #: 15 -0188, Item #: 9. California Environmental Quality Act (CEQA) and has determined that each project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. BOARD /COMMISSION RECOMMENDATION Not applicable. DISCUSSION Background On May 6, 2014, Council adopted the Chula Vista portion of the 2014 RTIP through adoption of Resolution 2014 -066. SANDAG provided the member agencies with the most recent version of the financial projection for Fiscal Years 2014 -15 through 2018 -19. This projection was used to plan the City's TransNet allocation program for the next five years. The 2014 RTIP was approved by the SANDAG Board of Directors on September 26, 2014. The latest revision to the 2014 was the third amendment, which amended the RTIP to include funding for the proposed Fiscal Year 2015 -16 Capital Improvement Program (CIP) projects. This amendment was approved by the SANDAG Board on April 24, 2015. Due to Council conflicts, it was split into three separate resolutions. Resolutions 15 -058 and 15 -059 (Attachment 1) were adopted on March 3, 2015 and became part of the Third Amendment. The third resolution included the appropriation of $150,000 into the Third Avenue Streetscape Project, Phase III (STL406) during Fiscal Year 2014 -15, as well as programming an additional $150,000 during Fiscal Year 2015 -16. A 4 /5ths vote was required for the Fiscal Year 2014 -15 appropriation, and this vote was obtained on April 14, 2015 by Resolution 15 -068 (Attachment 2). This Council action will become part of the June 2015 RTIP Amendment. The estimated annual allocations reflected the TransNet revenue forecasts calculated as of January 30, 2015. SANDAG Letter on TransNet LSR On March 5, 2015, SANDAG sent a letter to all member agencies that were determined to have unspent TransNet Local Streets and Roads (LSR) on hand as a result of the Independent Taxpayer Oversight Committee's (ITOC) audit for the Fiscal Year ending June 30, 2014. TransNet LSR funds are those funds that were allocated to agencies prior to the end of the original TransNet legislation (June 30, 2008). SANDAG staff requested that all agencies spend or reallocate TransNet LSR funds to active projects prior to June 30, 2015. Staff sent a response to SANDAG dated April 23, 2015 (Attachment 3). Some of the project issues did not require any fund transfers between either MPO ID numbers or projects. Two administrative transfers are required. First, there is a remaining balance of $167,854.30 in TF358 (CHV41). We propose to transfer these funds to STM381: South Broadway Improvements (CHV54) since it is currently in deficit. This transfer is strictly administrative. Secondly, the City currently has a remaining allocation of $472,598 in DR180 (CHV50), which included a number of storm drain repairs. It is anticipated that this project will be closed out by the end of the fiscal year, at which point the remaining funds will be reallocated to other storm drain projects in CHV50 (DR193 and /or DR196). This transfer is strictly administrative. City of Chula Vista Page 2 of 5 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 155 File #: 15 -0188, Item #: 9. Since all of the TransNet LSR Funds have been expended for the following projects, they will be moved as follows: • TF345 (CHV33): move to Maintenance • TF354 (CHV43): move to LSI -CR • TF356 (CHV44): move to LSI -CR Maintenance Projects CHV35: Harborside Elementary Pedestrian Improvements (TF366 SANDAG'S records indicate that there is a remaining allocation of $26,606 in completed project CHV46 ( Harborside Elementary Pedestrian Improvements - TF368). Staff proposes to reallocate these funds to on -going project CHV35. This remaining balance has already been appropriated into CHV35 by City Council, but not yet reallocated into the project by SANDAG.(TF366). Since this action does not amend the City's budget in any project and only changes SANDAG records with respect to the referenced projects, this reallocation is considered a strictly administrative action by SANDAG. Throughout the balance of this report, similar reallocations will be described as "strictly administrative." Unallocated Carryover In the March 3, 2015 RTIP Amendment, $18,295.00 from closed projects (both Maintenance and Congestion Relief) were returned to unallocated carryover. SANDAG has stipulated that these funds must be allocated to a specific project by June 30, 2015. Staff proposes to allocate these funds to CHV39 (TF350 - Traffic Signal Systems Optimization), which is a Congestion Relief project. Since this action does not amend the City's budget in any project, this reallocation is strictly administrative. Congestion Relief Projects CHV30: Multi -Modal Corridor Improvement Studv (STM361 This is an on -going project which has received both local and Federal funding. The most recent project includes the preparation of a project report and environmental document for a rail/ highway grade separation project in conjunction with SANDAG. The City's original funding request for this project was $2,100,000, with a 20 percent local match. The final Federal appropriation was estimated at $1,987,200, but the actual funding amount was $1,943,784.43. The City originally entered into a Memorandum of Understanding (MOU) with SANDAG on this project on June 20, 2013. Staff will return to Council with Amendment 2 to the MOU with SANDAG at a future date. This would include the payment of $982,000 to SANDAG for the City's portion of the work. The City currently has approximately $923,742 available for this project. In order to make up the difference and pay for City staff costs, staff requests an additional $125,000 for this project. This amount is being transferred from STM383 (CHV48). CHV58: Moss Street Improvements between Third Ave. and Fourth Ave. (STL394) This is the City's program for the construction of sidewalk improvements. The Moss Street Improvement project is currently in construction. Approximately $75,000 is needed in order to complete the project. This amount is being transferred from STM383 (CHV48). CHV60: Traffic Signal at Industrial/ Moss and Naples Street (TF383) SANDAG's records indicate that there is a remaining allocation of $225 under a completed project in CHV60 (Traffic Signal Installation at Fourth Avenue and G Street - TF373). Staff proposes to reallocate these funds to an on -going project in CHV60 (TF383). Since this action does not amend the City's budget in any project, this reallocation is strictly City of Chula Vista Page 3 of 5 Printed on 5/21/2015 2015 -05 -26 Agenda Packet Page 156 File #: 15 -0188, Item #: 9. administrative. CHV70: Bike Lanes on Broadway Feasibility Study (STM384) SANDAG's records indicate that there is a remaining allocation of $15,000 under a completed project in CHV54 (Naples Street Sidewalk Improvements - STM364). Staff proposes to reallocate these funds to an on -going project in CHV70 (STM384). Since this action does not amend the City's budget in any project, this reallocation is strictly administrative. CHV73 /CHV -NEW: Third Avenue Streetscape Phase III (STL406) As previously mentioned, Resolution 15 -0108 has already authorized the appropriation of $150,000 for Fiscal Year 2014- 15 and the allocation of another $150,000 in Fiscal Year 2015 -16. The City originally included the planning/ design funds for Phase III of the Third Avenue project under the same MPO ID as the design and construction funds for Phase II of Third Avenue. SANDAG staff requested that the City create a separate MPO ID number for Phase III in order that the Smart Growth funds for Phase II could be kept separate. This change is strictly administrative and does not change the funds allocated to either project. Attachment 4 provides a summary of all the fund transfers/ reallocations requested by this agenda item. DECISION -MAKER CONFLICT For CHV50: Pursuant to California Code of Regulations Section 18704.2 (b) (2), there is no material effect on any economic interests in real property as the "decision solely concerns repairs, replacement, or maintenance of existing streets, water, sewer, storm drainage or similar facilities." 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. For CHV73: Staff has determined that the action contemplated by this item is ministerial, secretarial, manual, or clerical in nature and, as such, does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations Title 2, section 18702.4(a). Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code 87100, et seq.) 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. For other projects: Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the properties which are the subjects 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 TransNet Local Street Improvement Program supports the Strong and Secure Neighborhood strategy in the City's Strategic Plan. It provides funding for the maintenance and rehabilitation of public infrastructure, which is a key City function in providing a safe and efficient transportation system for residents, businesses and visitors. CURRENT YEAR FISCAL IMPACT Approval of this resolution will result in the transfer of $200,000 from STM383 to STM361 ($125,000) and STL394 ($75,000) in TransNet funds. There are sufficient funds in the indicated projects to perform these appropriations. ONGOING FISCAL IMPACT City of Chula Vista Page 4 of 5 W71iw- 6TIMPAW41y67 2015 -05 -26 Agenda Packet Page 157 File #: 15 -0188, Item #: 9. Upon completion of the project, the improvements will require only routine City street maintenance. Since the improvements are anticipated to increase the life of the streets included, there should be a positive long term fiscal impact. Attachments: 1. Resolutions 15 -058 and 15 -059 2. Resolution 15 -068 3. Letter dated April 23, 2015 to Jose Nuncio, SANDAG 4. Project Fund Transfers/ Reallocations Staff contact. Elizabeth Chopp, Senior Civil Engineer City of Chula Vista Page 5 of 5 W71iw- 6TIMNAiIN OR 2015 -05 -26 Agenda Packet Page 158 RESOLUTION NO. 2016 -058 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDMENT OF THE TRAN'SNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2014/2016 THROUGH 201812019. EXCLUDING CHV73 (--THIRD AVENUE STREETSCAPE IMPROVEMENT PROJECT PHASE 3 (STL406) ") AND CHV -NEW ("SV1'EETWATER RIVER PATHWAY STUDY "), FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM. AND PROVIDING THE CERTIFICATION AND INIDEMNITY STATEMENTS NECESSARY TO OBTAIN TRANSNET FUNDS WHEREAS. on November 4- 2004- the voters of San Diego County approved the San Diego Transportation Improvement Program Ordinance and Expenditure Plan (TransNet Extension Ordinance); and WHEREAS, the TransNet Extension Ordinance provides that SANDAG. acting as the Regional Transportation Commission, shall approve a multi -year program of projects submitted by local jurisdictions identifying those transportation projects eligible to use transportation sales tax (Trans let) funds; and WHEREAS, in February 2016 the City of Chula Vista was provided with an estimate of annual TransAlet local street improvement revenues for fiscal nears 2016 through 2020; and WHEREAS. Council adopted the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2016 through 2018/2019 for inclusion in the Regional Transportation Improvement Program (RTIP) on May 6; 2014 through passage of Resolution 2014 -066: and 4 WHEREAS, Council subsequently adopted the modification of the Chula Vista portion of the 2014 RTIP on November 18. 2014 through passage of Resolution 2014 -222: and WHEREAS. SANDAG staff indicated that the City could not transfer 5100.000 from CHV50 to CHV66 during Fiscal Year 2014/2016; thereby, the revised programming for Fiscal Year 2014/2015 reverses this transfer: and WHEREAS- some minor changes are needed to several projects which are completed. The projects shown on Exhibit A are proposed to be closed with the funds returned to the unallocated carryover: and WHEREAS. staff recommends adopting the revised TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 for inclusion in the Regional Transportation Improvement Program (RTIP) as shown on the attached table (Exhibit B); and 2015 -05 -26 Agenda Packet Page 159 Resolution No. 2015 -058 Page No. 2 VATHEREAS. the City of Chula Vista has held a noticed public meeting on March 3, 2015, with an agenda item that clearly identified the proposed list of projects prior to approval of the projects by its authorized legislative body in accordance with Section 5(A) of the TransNet Extension Ordinance and Rule 7 of SANDAG Board Policy No. 31. NOW, THEREFORE; BE IT RESOLVED that pursuant to Section 2(C)(1) of the TransNet Extension Ordinance_ the City of Chula Vista certifies that no more than 30 percent of its annual revenues shall be spent on maintenance - related projects. BE IT FURTHER RESOLVED that pursuant to Section 4(E)(3) of the TransATet Extension Ordinance, the City of Chula Vista certifies that all new projects, or major reconstruction projects. funded by TrunsNet revenues shall accommodate travel by pedestrians and bicyclists, and that any exception to this requirement permitted under the Ordinance and proposed shall be clearly noticed as part of the City of Chula Vista's public hearing process. BE IT FURTHER RESOLVED that pursuant to Section 8 of the TransNet Extension Ordinance, the City of Chula Vista certifies that the required minimum annual level of local discretionary funds to be expended for street and road purposes will be met throughout the 5- ycar period consistent with the most recent Maintenance of Effort Requirements adopted by SANDAG. BE IT FURTHER RESOLVED that pursuant to Section 9A of the TrunsNet Extension Ordinance, the City of Chula Vista certifies that it will collect $2,209, plus all applicable annual increases, from the private sector for each newly constructed residential housing unit in that jurisdiction to comply with the provisions of the Regional Transportation Congestion Improvement Program (RTCIP). BE IT FURTHER RESOLVED that pursuant to Section 13 of the TransATet Extension Ordinance, the City of Chula Vista certifies that it has established a separate Transportation Improvement Account for TransA'et revenues with interest earned expended only for those purposes for which the funds were allocated. BE IT FURTHER RESOLVED that pursuant to Section 18 of the TransATet Extension Ordinance, the City of Chula Vista certifies that each project of $250,000 or more will be clearly designated during construction with TransATet project funding identification signs. BE IT FURTHER RESOLVED that the City of Chula Vista does hereby certify that all other applicable provisions of the TransNet Extension Ordinance and SANDAG Board Policy No. 31 have been met. BE IT FURTHER RESOLVED that the City of Chula Vista agrees to indemnify, hold harmless, and defend SANDAG. the San Diego County Regional Transportation Commission, and all officers and employees thereof against all causes of action or claims related to City of Chula Vista's TransNet funded projects. 2015 -05 -26 Agenda Packet Page 160 Resolution No. 201 -058 Paue No. 3 BE IT FURTHER RESOLVED that the Cite- Council of the City of Chula Vista adopt the amendment to the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 throup-h 2018/2019. excluding CH_\173 ("Third Avenue Streetscape Improvement Project Phase 3 (STL406) ") AND CHV -NE)V ("Sweetwater River Pathway Study`)- for inclusion in the RTIP as sho-%x-n on Exhibit B. Presented by Approved as to form by Richar G R. ains Director of ;orks Ci v PASSED. APPROVED. and ADOPTED by the Citv Council of the Citv Chula Vista_ California. this 3rd day of March 2013 by the following vote: AYES: Councilmembers: Aeuilar. Bensoussan. Miesen and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: McCann Mary 59as. Mavor ATTEST: Donna R. Norris. MC. 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 foreeoinQ Resolution No. 2015 -058 was duly passed, approved, and adopted by the Citv Council at a regular meeting of the Chula Vista City Council held on the 3rd day of March 2015. Executed this 3rd day of March 2015. kL"", 7e Donna R. Norris. CMC_ City Clerk 2015 -05 -26 Agenda Packet Page 161 N O N U7 O U7 N a ro w va N N EXHIBIT A: Transnet RTIP Updates /Changes M � o zC Project Description Amount MPOID To 0 0 STM370 North Fourth Ave Widening $ 70.00 CHV20 CR Unallocated Carryover = STL337 Bayshore Bikeway Segment 7 & 8 $ 10,730.00 CHV40 CR Unallocated Carryover o STL323 Pedestrian Master Plan $ 72.00 CHV26 M Unallocated Carryover a C DR191 Drainage Improvement Claire Ave / I S $ 7,423.00 CHV66 M Unallocated Carryover ) 0 Sub total $ 18,295.00 O° 00 -n �n O o 7Saj oil r-1' Cd •0. O 0 O a� tX EXHIBIT B TRANSNET ALLOCATION - FY 2016 THROUGH FY 2019 Revised 2/16/15 a) on a 05119 ORNFRORM E rYf, #f,; fll Estimated Annual Allocation $5,522,000 $5,886,000 $6,178,000 $6,492,000 $6,818,000 Closed Projects+ Unallocated Carryover + Remainder $1,506,275 $1,231,000 $0 $0 $0 Major Pavement Rehabilitalion (Overlays/Reconstruct) CHV48 $2,351.003 $4,000,000 $4,000,000 $4,200,000 $4,500,000 Traffic Signal System Optimization (TF350) ClIV39 $141,000 $75,000 $150,000 $150,000 $150,000 South Broadway Improvements (STM367)(STM381) CHV54 $1.600.001 $50,000 1 -805, SR54 and Otay Mesa Transportation System Improvements (TF344, TF359, TF356) CHV44 1 $100.000 $40,000 $40,000 $40,000 New Sidewalks (STL366, STI-369) CHV58 $979,900 Naples Street New Sidewalks (STL367) CHV59 $408,318 Bikeway Facilities Gap Projects CHV70 $50,000 $50,000 $50,000 $50,000 Third Avenue Streetscape Phases 11 and III (STL406) CFIV73 $150,000 $150,000 Traffic Signal System Plan (TSMITDM) CHV64 $250,000 SANDAL Main Street Fiber Optics (TFNew) CHVNew $400,000 Traffic Signal Upgrade CHV60 $300,000 $500,000 $400,000 Minimum Required Congestion Relief $4,886,039 $4,981,900 $4,324,600 $4,544,400 $4,772,600 SUBTOTAL Congestion Relief $5,730,222 $4,975,000 $4,540,000 $4,940,000 $5,140,000 Itikeway Master flans (STI.Nukv) CI IV53 $115,000 $50,000 Congestion Reliel'S(udyl ]mplememation Cl IV43 $66,529 $75,000 $7$,0!10 $75,1108 ]luergency . orm rain ill!( I'I[ ge Culver( epair (DR I 98)(STM385) CI'[VS() $375,000 $430,00 {1 $400,000 $400,000 $400,0001 NCibhhuthoud'1'raftiC /1'aE Salely Program ('1'1327, •I'FNCty) Cl IV34 $400,000 $150,000 $150,000 $15(1,(100 School /.unc •I'rallic Calming (E. I I Sl.) {'I'1 345,'1'1 384,1'1 Ncw) Cl IV33 $109,304 $154,000 $70,000 $70,000 x;70,000 Minor I'avemem Rehabilitation Program (01'219) Cl IV06 $50,000 $361,000 $361,000 $701,000 Advance I'lanning Studies (01'202) CI IV22 $134,000 $32,000 $32,000 $32,000 $32,000 Traffic Monitoring I'rogram ('I'FNCw,'I'1-'321) CIIV45 $1(10,000 $186,000 $50,000 $50,000 $50000 1'latfic Signing and Striping (TF332)(TI -New), Stadics,L Sigiml /Sh eel light Upgrade (TF366) and Maini. CI IV35 $325,000 $200,000 $200,000 $200,000 Raised Median Improvement~ (I'1New) CI IVNew $440,000 Claire AveAStteet Drainage (DR191) CIIV66 $0 Main St. StreeiscapC Master Ilan (STM378) CIIV71 $50,000 Sweetwater River I'athway S(udy (S'I'I,New) Cl IVNew $75,000 ADA Curb Ramps (ST1,405) ClIV75 $300,000 $300,000 $214,000 St)11'1'0'1'A1, 111uiutemurce $1,249,833 $2,142,11011 $1,638,000 $1,552,000 $1,678,000 TOTAL $6,980,055 $7,117,0001 $6,178,000 $6,492,000 $6,818,000 REMAINING FUNDS 1 1$48,220 $0 $0 $0 $0 Revised 2/16/15 a) on a RESOLUTION NO. 201 5 -059 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDMENT OF THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2014/2015 THROUGH 2018/2019 TO ADD FUNDING FOR CHV -NEW PROJECT SWEETWATER RIVER PATHWAY STUDY FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT AND PROVIDING THE CERTIFICATION AND FNDEI•/INITY STATEMENTS NECESSARY TO OBTAIN TRANSNET FUNDS Vl'HEREAS. on November 4, 2004, the voters of San Diego County approved the San Diego Transportation Improvement Program Ordinance and Expenditure Plan (Trans.kei Extension Ordinance)_ and 4 WHEREAS- the TiwnsNet Extension Ordinance provides that SANDAG, acting as the Regional Transportation Commission. shall approve a multi -year program of projects submitted by local jurisdictions identifiring those transportation projects eligible to use transportation sales tax (Trans N'et) funds: and WHEREAS. in February 2015 the Citv of Chula Vista was provided with an estimate of annual TransNet local street improvement revenues for Fiscal Years 2016 through 2020; and WHEREAS. Council adopted the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 for inclusion in the Regional Transportation Improvement Program (RTIP) on May 6. 2014 through passage of Resolution No. 2014 -066: and 4 NVHEREAS. Council subsequently adopted the modification of the Chula Vista portion of the 2014 RTIP on November 18. 2014 through passage of Resolution No. 2014 -222: and %WHEREAS. staff recommends the allocation of $400.000 to the SANTDAG Main Street Fiber Optics Program and $75.000 to the Sweetwater River Pathway Study in Fiscal Year 2015/2016 of the TransN'et Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 and inclusion in the Regional Transportation Improvement Program (RTIP). New CIP projects will be created as part of the Fiscal Year 2015 /2016 CIP; and WHEREAS. the Citv of Chula Vista has held a noticed public meeting on March 3, 2015, with an agenda item that clearly identified the proposed list of projects prior to approval of the projects by its authorized legislative body in accordance with Section 5(A) of the Trans: \'et Extension Ordinance and Rule 7 of SA IDAG Board Policy No. 31. 2015 -05 -26 Agenda Packet Page 164 Resolution No. 2015 -059 Page No. 2 NOW, THEREFORE, BE IT RESOLVED that pursuant to Section 2(C)(1) of the TransNet Extension Ordinance, the City of Chula Vista certifies that no more than 30 percent of its annual revenues shall be spent on maintenance- related projects. BE IT FURTHER RESOLVED that pursuant to Section 4(E)(3) of the TransNet Extension Ordinance, the City of Chula Vista certifies that all new projects, or major reconstruction projects, funded by TransNet revenues shall accommodate travel by pedestrians and bicyclists, and that any exception to this requirement permitted under the Ordinance and proposed shall be clearly noticed as part of the City of Chula Vista's public hearing process. BE IT FURTHER RESOLVED that pursuant to Section 8 of the TransNet Extension Ordinance, the City of Chula Vista certifies that the required minimum annual level of local discretionary funds to be expended for street and road purposes will be met throughout the 5- year period consistent with the most recent Maintenance of Effort Requirements adopted by SANDAG. BE IT FURTHER RESOLVED that pursuant to Section 9A of the TransNet Extension Ordinance, the City of Chula Vista certifies that it will collect $2,209, plus all applicable annual increases, from the private sector for each newly constructed residential housing unit in that jurisdiction to comply with the provisions of the Regional Transportation Congestion Improvement Program (RTCIP). BE IT FURTHER RESOLVED that pursuant to Section 13 of the TransNet Extension Ordinance, the City of Chula Vista certifies that it has established a separate Transportation Improvement Account for TransNet revenues with interest earned expended only for those purposes for which the funds were allocated. BE IT FURTHER RESOLVED that pursuant to Section 18 of the TransNet Extension Ordinance, the City of Chula Vista certifies that each project of $250,000 or more will be clearly designated during construction with TransNet project funding identification signs. BE IT FURTHER RESOLVED that the City of Chula Vista does hereby certify that all other applicable provisions of the TransNet Extension Ordinance and SANDAG Board Policy No. 31 have been met. BE IT FURTHER RESOLVED that the City of Chula Vista agrees to indemnify, hold harmless, and defend SANDAG, the San Diego County Regional Transportation Commission, and all officers and employees thereof against all causes of action or claims related to City of Chula Vista's TransNet funded projects. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista adopt the amendment to the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 to add funding for the Sweetwater River Pathway Study for inclusion in the RTIP. 2015 -05 -26 Agenda Packet Page 165 Presented by Resolution No. 2015-059 Page No. 3 Approved as to form by PASSED. APPROVED. and ADOPTED by the City Council of the City of Chula Vista. California. this 3rd day of March 2013 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan. Miesen and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: McCann Mary SLL, Mayor ATTEST: An. I A /7 D Donna R. Norris. CM . Ciry Clerk STATE OF CALIF01UNIA ) COUNTY OF SAN DIEGO } CITY OF CHULA VISTA } 1, Donna R. Norris, City Clerk of Chula Vista. California. do hereby cenify that the foregoing Resolution No. 2015-059 was duly passed. approved, and adopted by the Citti- Council at a regular meeting of the Chula Vista City Council held on the 3rd day of March 2015. Executed this 3rd day of March 2015. Z' Z'V/'O� A,--4 Donna R. Norris, C C. 'iry Clerk 2015 -05 -26 Agenda Packet Page 166 N O N U7 O U7 N o� ro o� EXHIBIT A: Transnet RTIP Updates /Changes Project Description Amount MPOID To STM370 Forth Fourth Ave Widening $ 70.00 CHV20 CR Unallocated Carryover STL337 Bayshore Bikeway Segment 7 & 8 $ 10,730.00 CHV40 CR Unallocated Carryover STL323 Pedestrian Master Plan $ 72.00 CHV26 M Unallocated Carryover DR191 Drainage Improvement Claire Ave / I S $ 7,423.00 CHV66 M Unallocated Carryover Sub total $ 18,295.00 b Q V n a Z G • O� 7 0 N O v, O v, ro w ac N co co EXHIBIT B TRANSNET ALLOCATION - FY 2016 THROUGH FY 2019 Revised 2115115 rD o_ G o' O 0 p IJ rrq Q rn v. O O vq v. 1p $5,886,000 F9V : , g l� 6j 6 �j Estimated Annual Allocation $5,522,000 $6,178,000 $6,492,000 $6,818,000 Closed Projecfs +Uanflocafod Carryover +Remainder $1,506,275 $1,231,000 $0 $0 $0 Major Pavement Rehabilitation (Over layslReconsti uct) CI•IV48 $2,351,003 $4,000,000 $4,000,000 $4,200,000 $4,500,000 Traffic Signal System Oplimizalion (TF350) CHV39 $141,000 $75,000 $150,000 $150,000 $150,000 South Broadway Improvements (STM367)(STM381) CHV54 $1,600,001 $50,000 1 -805, SR54 and Otay Mesa Transportation System Improvements (TF344, TF359, TF356) CHV44 $100,000 $40,000 $40,000 $40.000 New Sidewalks (STL366, STL369) CHV58 $979,900 Naples Street New Sidewalks (STL367) CHV59 $408,318 Bikeway Facilities Gap Projects CHV70 $50,000 $50,000 $50,000 $50,000 Third Avenue Slreetscape Phases 11 and III (STL406) CHV73 $150,000 $150,000 Traffic Signal System Plan (TSMfTDM) CIAV64 1 $250,000 SANDAG Main Streel Fiber Optics (TFNew) CHVNew $400,000 Traffic Signal Upgrade CHV60 $300,000 $500,000 $400,000 Minimum Required Congestion Relief $4,866,039 $4,981,900 $4,324,600 $4,544,400 $4,772,600 SUBTOTAL Congestion Relief $5,730,222 $4,975,000 $4,540,000 $4,940,000 $5,140,000 ISikcway Master Plans (S "I'LNcw) CI IV53 $115,000 $5),000 Congestion Relief Study/ Implcmentalion CIIV43 $66,529 $75,000 $75,000 $75,000 ,mergency Morin I)I-alliand Bridgu clilvert Kepall. (DR 198)(STM385) CIIV50 $375,000 $43),011) $400,000 $40 {1,001) $400,000 Neighhorhoud "[lallicll'al Salcty Piogiam ('IT327,'I'FNcw) CIIV34 $400,000 $150,000 $150,000 $150,000 School Zone TnIffic calming (Ii. 11 St.) ('f P345,'[1-'38,1,'I'FNc%v) C1 1V33 $109,304 $151,000 $7),0()0 $70,000 $70,000 Minor Pavement Relrahililation Program (011219) ClIV06 $50,000 $361,)0) $3611,000 $7)1,0(}) Advance Planning Shrdics (01'202) Cl IV22 $134,0)1} $32,000 $32,000 $32,0)) $32,(10) Traffic Monitoring Program ( "I'PNcw, "I'F321) Cl I V45 $100,000 $ 186,000 $50,000 $50,0(}) $50,000 Traflic Signing and Striping ('IT332)(TFNew), Sludics do SignallSlrcetlighl Upgrade (I'P366) and Maint. CI -IV35 $325,000 $200,000 $20),0)0 $200,000 Raiscd Mcdiait Improvements ('I'F'Ncw) CI -IVNcw 91440,000 Claiic Avc, /I Street Drainage (17R 19 1) Cl IV60 $0 Main St. Strcelscape Master flan (STM378) CI IV71 $50,000 Sweetwater River Pathway Study (S•I•I,New) CI IVNcw $75,000 ADA Curb Ramps (STL405) CI•IV75 $3)),000 $300,000 $214,(1(10 SUBTOTAL illaintemmee $1,249,833 $2,142,)0) $1,038,0110 $1,552,008 $1,67H,000 TOTAL $6,980,055 $7,117,000 $6,178,000 $6,492,000 $6,618,000 REMAINING FUNDS $48,220 SO $0 $01 $0 Revised 2115115 rD o_ G o' O 0 p IJ rrq Q rn v. O O vq v. 1p RESOLUTION NO. 201 -068 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2014/2015 CIP BUDGET BY ESTABLISHING A NEW CIP PROJECT "THIRD AVENUE STREETSCAPE IMPROVEMENT PROJECT PHASE 3 (STL406) ". APPROPRIATING 5150,000 FROM THE AVAILABLE BALA,\FCE OF THE TRANSNET FUND TO STL406. APPROVING THE AMENDMENT OF THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2014/2015 THROUGH 2018/2019 TO ADD FUNDING FOR CHV73 FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM. AND PROVIDING THE CERTIFICATION AND INDEMNITY STATEMENTS NECESSARY TO OBTAIN' TRANSNET FUNDS %VHEREAS. on November 4. 2004. the voters of San Diego County approved the San Diego Transportation Improvement Program Ordinance and Expenditure Plan (Transk'er Extension Ordinance); and WHEREAS. the Trans_Net Extension Ordinance provides that SANDAG, acting as the Regional Transportation Commission. shall approve a multi -year program of projects submitted by local jurisdictions identifying those transportation projects eligible to use transportation sales tax (Trans let) funds; and 'WHEREAS. in February 2015 the City of Chula Vista was provided with an estimate of annual TransATet local street improvement revenues for Fiscal Years 2016 through 2020; and WHEREAS. Council adopted the TransNTet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 for inclusion in the Regional Transportation Improvement Program (RTIP) on May 6. 2014 through passage of Resolution 2014 -066: and WHEREAS. Council subsequently adopted the modification of the Chula Vista portion of the 2014 RTIP on November 18, 2014 through passage of Resolution No. 2014 -222; and WHEREAS. in order to initiate design for Phase 3 of the Third Avenue Streetscape Project. the Fiscal Year 2014/2015 CIP must be amended to include a new CIP project STL406 and appropriate 5150,000 from the available balance of the TransNet Fund to STL406. Additional funding of S 150,000 will also be requested in Fiscal Year 2015/2016; and 2015 -05 -26 Agenda Packet Page 169 Resolution No. 2015 -168 Page No. 2 WHEREAS. the City of Chula Vista has held a noticed public meeting on March 3, 2015- with an agenda item that clearly identified the proposed list of projects prior to approval of the projects by its authorized legislative body in accordance with Section 5(A) of the TransNet Extension Ordinance and Rule 7 of SANDAL Board Policy No. 31. NOW, THEREFORE, BE IT RESOLVED that pursuant to Section 2(C)(1) of the TransNet Extension Ordinance, the City of Chula Vista certifies that no more than 30 percent of its annual revenues shall be spent on maintenance - related projects. BE IT FURTHER RESOLVED that pursuant to Section 4(E)(3) of the TransNet Extension Ordinance, the City of Chula Vista certifies that all new projects, or major reconstruction projects, funded by TransNet revenues shall accommodate travel by pedestrians and bicyclists, and that any exception to this requirement permitted under the Ordinance and proposed shall be clearly noticed as part of the City of Chula Vista's public hearing process. BE IT FURTHER RESOLVED that pursuant to Section 8 of the TransNet Extension Ordinance, the City of Chula Vista certifies that the required minimum annual level of local discretionary funds to be expended for street and road purposes will be met throughout the 5- year period consistent with the most recent Maintenance of Effort Requirements adopted by SANDAL. BE IT FURTHER RESOLVED that pursuant to Section 9A of the TransNet Extension Ordinance, the City of Chula Vista certifies that it will collect $2,209, plus all applicable annual increases, from the private sector for each newly constructed residential housing unit in that jurisdiction to comply with the provisions of the Regional Transportation Congestion Improvement Program (RTCIP). BE IT FURTHER RESOLVED that pursuant to Section 13 of the TransNet Extension Ordinance; the City of Chula Vista certifies that it has established a separate Transportation Improvement Account for TransNet revenues with interest earned expended only for those purposes for which the funds were allocated. BE IT FURTHER RESOLVED that pursuant to Section 18 of the TransNet Extension Ordinance, the City of Chula Vista certifies that each project of $250,000 or more will be clearly designated during construction with TransNet project funding identification signs. BE IT FURTHER RESOLVED that the City of Chula Vista does hereby certify that all other applicable provisions of the TransNet Extension Ordinance and SANDAG Board Policy No. 31 have been met. BE IT FURTHER RESOLVED that the City of Chula Vista agrees to indemnify, hold harmless, and defend SANDAG, the San Diego County Regional Transportation Commission, and all officers and employees thereof against all causes of action or claims related to City of Chula Vista's TransNet funded projects. 2015 -05 -26 Agenda Packet Page 170 Resolution No. 2015-068 Page No. 3 BE IT FURTHER RESOLVED that the City Council of the Cite of Chula Vista amends the Fiscal Year 2014/2015 CIP budget by establishing a new CIP project, "Third Avenue Improvement Project Phase (STL406) approves a revenue offset appropriation of $150.000 to the CIP Project expense category of the Transportation Sales Tax Fund (TransNet) for CIP STL406, and allocates this amount to CHV73 in the amendment to the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2013 through 2018 /2019 for inclusion in the RTIP. 4 Presented by Approved as to form by chard H pk' Glen R. oogins Director of Pu c Works Cite Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California. this 14th day of April 2015 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan. McCann and Miesen NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAfN`: Councilmembers: Salas Mary S s. Mayor ATTEST: Donna R. Norris_ CMC. City Clerk STATE OF CALIFORNIA COU -LAITY OF SAN DIEGO CITY OF CHULA VISTA 1. Donna R. Norris. City Clerk of Chula Vista. Califomia. do hereby certify that the foregoing Resolution No. 201 -068 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 14th day of April 2015. Executed this 14th day of April 2015. JMMMMMM__ 2015 -05 -26 Agenda Packet Page 171 CITY OF Department ®f Public Works April 23, 2015 File: 0140- 20 -LY075 Jose A. Nuncio, TransNet Department Director San Diego Association of Governments 401 B Street, Suite 800 San Diego, CA 92101 -4231 TRANSNET LOCAL STREETS AND ROADS FUND BALANCE We have received a copy of your letter dated March 5, 2015. The letter requested that we provide a plan to expend our remaining TransNet Local Street and Roads funds or move them to active projects no later than June 30, 2015. We understand that this applies to the five projects that, as of June 30, 2014, show a balance on page 12 of the TransNet Audit Schedule A. Below are our responses regarding each project. Each project will be addressed in the June 2015 RTIP Amendment and noted accordingly in Schedule A. CHV06 STL316: According to Schedule A, we have $745,973 in this project. In our FY2006 -2007 Capital Improvement Program (CIP), we originally appropriated $2,100,000 to this project. A decision was made by the City to save all pavement funds until after implementation of the new Pavement Management System. As a result, on May 1, 2007, the City Council adopted Resolution 2007 -108, which transferred the entire amount in STL316 and six other CIP projects to STL238: Pavement Rehabilitation Program -- Future Allocations. The CIP projects STL335 and STL340 were subsequently created from these funds. Our accounting system (IFAS) confirms that all LSR funds were expended, and no funds remain in project STL316. 2. CHV33 TF345: The deficit shown in Schedule A was covered by a drawdown from TransNet LSI in September 2014. The remaining portion of this project will be funded by LSI funds and shown in the Maintenance Section of Schedule A. 3, CHV41 TF358: The original amount of LSR funds programmed for this project was $350,000. IFAS confirms that only $182,145.70 was required to complete this project, leaving a balance of LSR funds in the amount of $167,854.30. We propose to transfer the remaining funds to CHV54 project STM381, which is currently in deficit. lE� ii�g�pgg�j 27 F Avenue Chula Vista CA 91910 (619) 691 -5021 fax (619) 691 -5171 LlJYS- US -L6� enUa�acke ' ' wWW.chulavistH A6* Operations -gs00 Maxwell Road, Chula Vista, CA 91911 (619) 397 -6000 1 fax (619) 397 -6259 Jose A. Nuncio April 23, 2015 Page 2 4. CHV44 TF356: The original amount of LSR funds programmed for this project was $100,000. IFAS confirms that, to date, $100,000 of LSR funds has been expended and a current deficit of $791.62 remains in the project, The City plans to draw down available LSI funds from CHV44 to cover this deficit, and will move this project to the LSI Congestion Relief section in Schedule A. 5. CHV50 DR180: CHV50 includes several storm drainage projects. DR180 is complete, and to date $472,598.00 of LSR funds remain in this project. Upon final accounting of all expenditures and closeout of DR180, excess funds will be transferred to DR187 and DR193. The transfer of funds and full expenditure of remaining LSR funds is scheduled to be complete prior to June 30, 2015. These actions will ensure that all of our remaining TransNet LSR funds are expended in accordance with the June 30, 2015 deadline. Please contact Beth Chopp, Sr. Civil Engineer at (619) 691 -5046 if you should have any further questions. FRANCISCO X. RIVERA PRINCIPAL CIVIL ENGINEER cc: Maria Kachadoorian, Deputy City Manager Richard Hopkins, Director of Public Works William Valle, Assistant Director of Engineering Robert Beamon, Administrative Services Manager Elizabeth Chopp, Senior Civil Engineer Claudia Block, Management Analyst J:1Engineer\SANDAG\TransNet\01d Transnet Balance,docx 2015 -05 -26 Agenda Packet Page 173 ATTACHMENT 4 PROJECT FUND TRANSFERS/ REALLOCATIONS FROM TO FUNDS MPOID PROJECT MPOID PROJECT CHV41 TF358 CHV54 STM381 $167,854.30 * CHV50 DR180 CHV50 DR193 $276,476.00 * CHV50 DR180 CHV50 DR196 $196,122.00 * CHV46 TF368 CHV35 TF366 $26,606.00 * CHV48 STM383 CHV30 STM361 $125,000.00 CHV48 STM383 CHV58 STL394 $75,000.00 CHV54 STM364 CHV70 STM384 $75,000.00 * CHV60 TF373 CHV60 TF383 $225.00 * CHV73 STL406 CHV -NEW STL406 $300,000.00 ** Unallocated Carryover CHV39 TF350 $18,295.00 * Administrative Transfer (only) * *Administrative - funds stay in same project 2015 -05 -26 Agenda Packet Page 174 RESOLUTION NO. 2015 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE AMENDMENT OF THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2014/2015 THROUGH 2018/2019 FOR INCLUSION IN THE REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM, REDUCING THE STM383 CIP BUDGET BY $200,000 IN TRANSNET FUNDS AND APPROPRIATING THE EQUIVALENT AMOUNT TO STM361 ($125,000) AND STL394 ($75,000), AND PROVIDING THE CERTIFICATION AND INDEMNITY STATEMENTS NECESSARY TO OBTAIN TRANSNET FUNDS (4 /5ths vote required) WHEREAS, on November 4, 2004, the voters of San Diego County approved the San Diego Transportation Improvement Program Ordinance and Expenditure Plan (TransNet Extension Ordinance); and WHEREAS, the TransNet Extension Ordinance provides that SANDAL, acting as the Regional Transportation Commission, shall approve a multi -year program of projects submitted by local jurisdictions identifying those transportation projects eligible to use transportation sales tax (TransNet) funds; and WHEREAS, in February 2015, the City Of Chula Vista was provided with an estimate of annual TransNet local street improvement revenues for fiscal years 2016 through 2020; and WHEREAS, Council adopted the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 for inclusion in the Regional Transportation Improvement Program (RTIP) on May 6, 2014, through passage of Resolution 2014 -066; and WHEREAS, Council subsequently adopted the modification of the Chula Vista portion of the 2014 RTIP as part of Amendment 3 on March 3, 2015, through passage of Resolutions 2015 -058 and 2015 -059; and WHEREAS, a 4 /5ths vote was required for Resolution 2015 -068, which provided additional funding of $150,000 for Third Avenue Improvements Phase III in Fiscal Year 2014 -15, due to the need to appropriate funds. This was adopted too late to be included in Amendment 3; and WHEREAS, SANDAG sent a letter dated March 5, 2015 to all member agencies with unspent TransNet Local Streets and Roads funds. The letter indicated that the unspent funds must be reallocated to active projects by June 30, 2015; and WHEREAS, in the March 3, 2015 RTIP Amendment, $18,295 from closed projects were returned to unallocated carryover. In accordance with SANDAG's March 2015 -05 -26 Agenda Packet Page 175 Resolution No. Page 2 5th letter, these funds, as well as those in closed projects, must be reallocated to a specific project before June 30, 2015; and WHEREAS, additional funding is required for several projects. TransNet funding is available for these projects, as shown on Exhibit A; and WHEREAS, staff recommends amending the revised TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/15 through 2018/19 for inclusion in the Regional Transportation Improvement Program (RTIP) as shown on Exhibit A; and WHEREAS, the City Of Chula Vista has held a noticed public meeting on May 12, 2015, with an agenda item that clearly identified the proposed list of projects prior to approval of the projects by its authorized legislative body in accordance with Section 5(A) of the TransNet Extension Ordinance and Rule 7 of SANDAG Board Policy No. 31. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it certifies that, in accordance with Section 2(C)(1) of the TransNet Extension Ordinance, no more than 30 percent of its annual revenues shall be spent on maintenance - related projects. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it certifies, in accordance with Section 4(E)(3) of the TransNet Extension Ordinance, that all new projects, or major reconstruction projects, funded by TransNet revenues shall accommodate travel by pedestrians and bicyclists, and that any exception to this requirement permitted under the Ordinance and proposed shall be clearly noticed as part of the City of Chula Vista's public hearing process. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it certifies, in accordance with Section 8 of the TransNet Extension Ordinance, that the required minimum annual level of local discretionary funds to be expended for street and road purposes will be met throughout the 5 -year period consistent with the most recent Maintenance of Effort Requirements adopted by SANDAL. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it certifies, in accordance with Section 9A of the TransNet Extension Ordinance, that it will collect $2,209, plus all applicable annual increases, from the private sector for each newly constructed residential housing unit in that jurisdiction to comply with the provisions of the Regional Transportation Congestion Improvement Program (RTCIP). BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it certifies, in accordance with Section 13 of the TransNet Extension Ordinance, that it has established a separate Transportation Improvement Account for TransNet revenues with interest earned expended only for those purposes for which the funds were allocated. 2015 -05 -26 Agenda Packet Page 176 Resolution No. Page 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it certifies, in accordance with Section 18 of the TransNet Extension Ordinance, that each project of $250,000 or more will be clearly designated during construction with TransNet project funding identification signs. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby certify that all other applicable provisions of the TransNet Extension Ordinance and SANDAG Board Policy No. 31 have been met. BE IT FURTHER RESOLVED by the City of Chula Vista, that it agrees to indemnify, hold harmless, and defend SANDAG, the San Diego County Regional Transportation Commission, and all officers and employees thereof against all causes of action or claims related to City of Chula Vista's TransNet funded projects. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it adopts the amendment to the TransNet Local Street Improvement Program of Projects for Fiscal Years 2014/2015 through 2018/2019 for inclusion in the RTIP, reduces the STM383 CIP budget by $200,000 in TransNet funds and appropriates the equivalent amount to STM361 ($125,000) and STL394 ($75,000). Presented by Richard A. Hopkins Director of Public Works Exhibit A Approved as to form by Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 177 EXHIBIT A PROJECT FUND TRANSFERS/ REALLOCATIONS FROM TO FUNDS MPOID PROJECT MPOID PROJECT CHV41 TF358 CHV54 STM381 $167,854.30 * CHV50 DR180 CHV50 DR193 $276,476.00 * CHV50 DR180 CHV50 DR196 $196,122.00 * CHV46 TF368 CHV35 TF366 $26,606.00 * CHV48 STM383 CHV30 STM361 $125,000.00 CHV48 STM383 CHV58 STL394 $75,000.00 CHV54 STM364 CHV70 STM384 $75,000.00 * CHV60 TF373 CHV60 TF383 $225.00 * CHV73 STL406 CHV -NEW STL406 $300,000.00 ** Unallocated Carryover CHV39 TF350 $18,295.00 * Administrative Transfer (only) * *Administrative - funds stay in same project 2015 -05 -26 Agenda Packet Page 178 CITY OF CHULA VISTA File #: 15 -0206, Item #: 10. City of Chula Vista Staff Report CONSIDERATION OF AMENDMENTS TO THE CITY'S GENERAL PLAN AND THE OTAY RANCH GENERAL DEVELOPMENT PLAN, INCLUDING A NEW DEVELOPMENT AGREEMENT INVOLVING PORTIONS OF THE OTAY RANCH FREEWAY COMMERCIAL PLANNING AREA 12 (This item is continued from May 12, 2015.) A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSIDERING THE ADDENDUM (IS- 12 -03) TO FEIR 02 -04; APPROVING AMENDMENTS TO THE CITY'S GENERAL PLAN AND THE OTAY RANCH GENERAL DEVELOPMENT PLAN TO REFLECT LAND USE AND POLICY CHANGES FOR APPROXIMATELY 35 ACRES WITHIN THE OTAY RANCH PLANNED COMMUNITY, INCLUDING ASSOCIATED TEXT, MAPS, AND TABLES B. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA, VILLAGE II TOWN CENTER, LLC, AND SUNRANCH CAPITAL PARTNERS, LLC, FOR THE FREEWAY COMMERCIAL NORTH PORTION OF OTAY RANCH PLANNING AREA 12 (FIRST READING) RECOMMENDED ACTION Council conduct the public hearing, adopt the resolution and place the ordinance on first reading. SUMMARY Baldwin & Sons, LLC ( "Applicant" or "Developer ") is proposing amendments to the City of Chula Vista General Plan (GP) Land Use and Transportation (LUT) Element and the Otay Ranch General Development Plan (GDP) to change approximately 28.7 acres of Retail Commercial to Mixed -Use Residential and Park on an approximately 35 -acre vacant site. The proposed GP and GDP amendments would allow for a transit - supportive mixed use development that would add up to 600 multi - family residential units (with a minimum of 15,000 square feet of commercial retail) and a new 2 -acre urban park within the Freeway Commercial North portion of Otay Ranch Planning Area 12 (see Locator Map, Attachment 1). The project also includes a Development Agreement which ensures the timely development of hotels totaling 300 rooms on the northerly most 6.3 -acre portion of the 35 -acre site (remaining commercial and is not part of the proposed amendments), the minimum 15,000 square feet of commercial retail, and the urban park by the developer ( "Freeway Commercial North" or "FC -2" ( "Project ")). On July 9, 2012 the Applicant filed applications to process all of the subject items. City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 16 Printed on 5/21/2015 powered by Legistar Page 179 File #: 15 -0206, Item #: 10. Freeway Commercial Prior Approvals In 2001, a GDP amendment separated the Eastern Urban Center (EUC) and Freeway Commercial (FC) components into separate planning areas, comprising Planning Area (PA) 12. In September 2004 the Freeway Commercial SPA Plan and Tentative Map were adopted on the approximately 120 -acre Freeway Commercial site, and entitled approximately 1,214,000 sf of commercial uses: 867,000 sf on the approximate 85 -acre FC -1 ( "Freeway Commercial South ") site, and 347,000 sf on the approximate 35 -acre FC -2 ( "Freeway Commercial North ") site. The Freeway Commercial SPA Plan identifies FC -1 and FC -2 sites separately because of different ownerships. In 2006, the Otay Ranch Town Center Mall was constructed on FC -1, and in 2007 a SPA amendment was approved which raised the total commercial area allowed on FC -1 (by 93,000 sq. ft. from 867,000 sq. ft. to 960,000) to accommodate another department store. Today, the FC -2 site remains vacant and undeveloped. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was covered in the previously adopted Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area (SPA) Plan - Planning Area 12 ( "FEIR 02 -04 ") (SCH #1989010154). The Development Services Director has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Development Service Director has prepared an addendum to FEIR 02 -04. The findings of the Addendum (see Attachment 4) are further summarized in the Environmental Section on Page 6 of this report. BOARD /COMMISSION RECOMMENDATION On April 22, 2015 the proposed Project was presented to the Planning Commission. After considering the Project, a motion was made to recommend that the City Council consider the Addendum to FEIR 02 -04, approve amendments to the General Plan and Otay Ranch General Development Plan, and an associated Development Agreement. The Planning Commission initially voted 2- 2 -2 -1. The motion failed because there was not a majority vote for approval. A second motion was then made that City Council deny the Project with acknowledgment that Planning Commissioner Fuentes and Planning Commissioner Gutierrez previously recommended approval of the Project. This motion, recommending that City Council deny the Project, carried 4- 0 -2 -1. DISCUSSION City of Chula Vista 2015 -05 -26 Agenda Packet Page 2 of 16 Printed on 5/21/2015 powered by Legistar Page 180 File #: 15 -0206, Item #: 10. Location, Existing Site Characteristics, and Ownership The Freeway Commercial SPA Plan area is generally located south of Olympic Parkway, north of Birch Road, east of State Route 125 and west of Eastlake Parkway (see Locator Map, Attachment 1). This amendment is limited to the FC -2 portion of the SPA Plan located between Olympic Parkway and the existing Otay Ranch Town Center. This portion of the SPA Plan is currently vacant and generally comprised of flat graded pads with an existing road, Town Center Drive, bisecting the site in a north /south direction. FC -2 includes approximately 35 acres under two ownerships, Village II Town Center, LLC and SunRanch Capital Partners, LLC. 2. Project Description The Project amends existing GP (LUT element) and GDP commercial designated land use on approximately 28.7 acres of the 35.0 -acre FC -2 site to implement up to 600 multi - family dwelling units, 15,000 square feet of ancillary commercial, and a 2 -acre highly amenitized public park. Commercial entitlements and land use designation for the residual 6.3 acres located at the northwest portion of FC -2 will remain unchanged and will accommodate two hotels with at least 300 total rooms. The proposed GP and GDP amendments would support subsequent detailed planning to create a unified, walkable, mixed -use plan for the FC -2 district of Otay Ranch Planning Area 12. The Project is intended to enhance living, working, shopping and transit options in the area. A proposed Development Agreement includes certain mutual benefits for the City and Applicant from the proposed Project, as further described in item 3 below, and the Analysis section of this report. 3. Proposed Amendments and New Development Agreement Following is a brief summary of the proposed amendments to the General Plan and Otay Ranch GDP. Chula Vista General Plan: Amend LUT Element's applicable text, tables, and exhibits to reflect changes in land use designations as necessary to implement the additional 600 residential units as well as additions in parkland areas. New policies are also proposed to reflect the transit - supportive mixed use project. The proposed land use changes are as follows: Change 26.7 acres of Commercial Retail to Mixed Use Residential, and 2.0 acres of Commercial Retail to Parks & Recreation. Otay Ranch GDP: Amend applicable text, tables, and exhibits to reflect changes in land use designations as necessary to implement up to 600 residential units as well as additions in Community Purpose Facilities (CPF), City of Chula Vista 2015 -05 -26 Agenda Packet Page 3 of 16 Printed on 5/21/2015 powered by LegistarT"^ Page 181 File #: 15 -0206, Item #: 10. and parkland areas. New policies are also proposed to reflect the mixed use project. The GDP follows the same proposed land use changes as the GP, including the change of 26.7 acres of Freeway Commercial to Mixed Use, and 2.0 acres of Freeway Commercial to Park. The new policies are further refinements of the new GP policies. Development Agreement: The proposed Development Agreement provides the assurance for two hotels totaling 300 rooms to be constructed; allows for a 4.6 acre park requirement to be met through the construction, programming and maintenance of a high ly- amenitized 2 -acre urban park that is valued at or greater than 4.6 acres of park; and dedicates right of way and construction easements for completion of the South Bay Bus Rapid Transit (BRT) line (see Attachment6). ANALYSIS Chula Vista General Plan Existing Conditions /Past Designations The existing GP includes a description of the area, existing conditions, the vision and various policies (starting on page LUT -284) for the entire 120 acres as a regional serving Retail Commercial center. The vision includes the provision of both local and regional- serving retail commercial and entertainment uses. The existing policies remain applicable to the Otay Ranch Town Center mall (FC -1) area. The existing General Plan identifies the Freeway Commercial North 35 -acre site (FC -2) as being part of the 120 -acre Freeway Commercial site, currently designated as Commercial Retail. As noted earlier, the 960,000 sq. ft. in the 85 -acre Otay Ranch Town Center Mall (FC -1) site is mostly developed, with approximately 317,000 sq. ft. (or 33 percent) remaining to be developed. The northerly 35 -acre site (FC -2), with approximately 347,000 sq. ft. of retail capacity is undeveloped and has been designated for retail commercial since the Otay Ranch was originally approved to the City in 1993. The total remaining retail capacity for both sites is 664,000 sq. ft. General Plan Amendment Considerations This 664,000 sq. ft. of retail capacity is situated within the larger EastLake activity corridor that contains substantial additional commercial use concentration spanning from EastLake Village Walk in the north to the developing Millenia project on the south. Previous Commercial lands studies (in early 2013) have indicated that the corridor contains an over - supply of community and regional- serving commercial use. These planning and market conditions have influenced the absorption of the FC -1 remaining capacity and the FC -2 site has not been fully developed as a regional commercial site. The applicant has City of Chula Vista Page 4 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 182 File #: 15 -0206, Item #: 10. proposed a mixed use project on the FC -2 site that would retain approximately 215,000 sq. ft. (about 64 %) of the 347,000 sq. ft. of commercial capacity. The proposed net reduction of 132,000 sq. ft. commercial would result in 449,000 sq. ft. of capacity remaining on FC -1 & FC -2 sites. In order to determine if the proposed reduction and remaining 449,000 sq. ft. provide sufficient capacity, staff required the applicant to do a current Commercial Lands Analysis (CLA). The results of the CLA demonstrates that there remains an overage of approximately 93,000 sf of retail commercial capacity beyond demand at build -out within the larger "trade area" evaluated in the CLA. The findings of the CLA along with the mixed use dynamics and compatibility between the FC -1 and FC -2 site(s) support the proposed amendments. Commercial Market Considerations & Commercial Lands Analysis (CLA) The applicant was required to prepare a Commercial Lands Analysis (CLA) to study the potential impacts of the Project on the City's supply of existing and planned commercial development area (see Appendix D of Attachment 3). The CLA studied a 4 -mile "trade area" surrounding the site. The study looked at both the incremental (i.e the delta between the existing and planned commercial at build -out) demand and supply of commercial lands within the trade area. The key findings of the CLA particular to the Freeway Commercial North project are as follows: • The trade area currently experiences an extremely high amount of General Merchandise sales, suggesting that it is already over - saturated with "big -box" stores. • The FC -1 Otay Ranch Town Center mall still contains 317,000 square feet of developable area that can accommodate department stores and other "big -box" retailers. • There are other locations in the trade area, such as Millenia, zoned to accommodate the type of retail that is currently in the market ( "medium box "), generally 20,000 - 50,000 square feet. • At build -out the incremental demand for retail space within the trade area is estimated at 1,930,000 sq. ft. A total of 2,355,000 sq. ft. is currently planned or in the pipeline in the trade area (including the 347,000 sq. ft. of retail for the project as currently proposed). This would result in an over - supply of retail space in the amount of 425,000 square feet. With approval of the proposed project, including the 15,000 square feet of retail proposed, the supply of retail space would be reduced to 2,023,000 square feet. • With the existing over supply of 425,000 square feet and subtracting the reduction of 332,000 square feet from the proposed project, the trade area would still be projected to experience an over - supply of retail space totaling 93,000 sq. ft. at build out. Staff has reviewed the CLA and concurs with its conclusions. The proposed project would reduce approximately 132,000 square feet of commercial (the hotels will utilize approximately 200,000 square feet of the commercial entitlement) from the FC -2 site to accommodate up to 600 multi - family City of Chula Vista Page 5 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 183 File #: 15 -0206, Item #: 10. residential units and a 2 -acre urban park. The City still has adequate remaining commercial square footage within the FC -1 site, and other future sites within the trade area - Addendum and Infrastructure /Service Considerations The previously graded project site is currently served by existing infrastructure. No upgrades or changes to existing infrastructure would be necessitated by the proposed GP /GDP changes to allow mixed use development. As noted below, the graded site is bordered by Olympic Parkway, Eastlake Parkway, and SR -125. The change in use would result in fewer vehicle trips generated by the project, compared to the existing commercial designation for the site. Outlined below is an overview of how existing infrastructure would adequately serve project. Water Resources: The sizing of the existing 16 -inch water line in Olympic Parkway, 20 -inch line in Eastlake Parkway, and 12 -inch line in Town Center Drive, and 12 -inch lines within FC -1 are adequate to support the proposed modifications and, therefore, no changes to the approved project water system as analyzed in the FEIR are necessary as a result of the proposed modifications (Dexter Wilson 2014). Additionally, the proposed modifications would comply with the City of Chula Vista Guidelines for water conservation, including the use of recycled water for landscaping and implementation of additional water conservation measures such as hot water pipe insulation, pressure reducing valves, and water efficient dishwashers. A water supply assessment was approved for the project on April 1, 2015, documenting that there is an assured long term supply of water for the project. The approved water supply assessment indicates the project as proposed would result in an incremental increase of water demand of 173 acere feet beyond what was estimated in the 2010 Otay Water District Water Resources Master Plan. Wastewater: The project is consistent with FEIR Mitigation Measures 5.12 -11 through 5.12 -13, which require the applicant to demonstrate adequate capacity in the Poggi Canyon sewer line. The sewer technical study (Dexter 2014) demonstrates that there is adequate sewer capacity in the existing 8 inch line that serves the site. The existing 8 -inch gravity sewer line is adequate to convey this projected total flow. Moreover, the proposed project does not require additional reaches of the Poggi Interceptor to be upgraded in the future. Traffic: The proposed modifications would result in fewer trips than analyzed in the traffic analysis. A traffic analysis has been conducted to evaluate the potential traffic impacts associated with the proposed modifications (Chen Ryan 2015). The FC -2 site would generate approximately 7,506 daily trips, which is lower than the entitled land use trip generation of approximately 12,145 daily trips for the FC -2 site. Since the proposed modified land uses would generate less traffic than the entitled land uses, there would be no additional traffic impacts associated with the proposed modifications. Therefore, no new significant impacts would occur beyond what is analyzed in the FEIR. As stated above, no new significant impacts would occur from the proposed project, therefore, an Addendum has been prepared. City of Chula Vista Page 6 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 184 File #: 15 -0206, Item #: 10. Schools: Residents expressed concerns of overcrowding within existing schools. Chula Vista Elementary - The proposed project is anticipated to generate approximately 180 students within the Wolf Canyon attendance area. Most of the project was annexed into CVESD's CFD 1 in 1993. This property will be assessed an annual tax pursuant to the mitigation agreement and Rate and Method of Apportionment for CFD 1.This CFD was formed to cover the costs of the District's capital facilities required to serve the development areas. That portion of the project not already annexed in CFD 1 will have the option to annex into the CFD or pay the mandated State school fee. This is a per square -foot fee that would be assessed on the properties prior to building permit Issuance. Sweetwater Union High School District - The proposed project is anticipated to generate approximately 52 middle school students and 121 high school students. The project is currently within the EastLake Middle School and Olympian High School attendance areas. Both schools are at capacity and the Freeway Commercial Project will generate additional need for new schools. All eastside schools are at capacity and closed to new intradistrict transfers. The district has plans for a new middle school and a new high school potentially within Village 8 West and Village 11, respectively. The SUHSD also formed their own CFD 1 which most of the Freeway Commercial Project was annexed into in 1993. The property annexed into CFD 1 will be assessed an annual tax pursuant to the mitigation agreement and Rate and Method of Apportionment for CFD 1. The property outside of CFD 1 will have the option of annexing into the CFD or paying the State mandated school fee. Parking: Residents also expressed concerns regarding the provision of adequate parking for the proposed project that would not impact surrounding neighborhoods. Parking requirements are addressed at a SPA Plan level and will be required as part of the subsequent SPA Plan amendment to implement the proposed Project. The Project is anticipated to utilize the standard parking requirements that are typical of Otay Ranch villages. The SPA Plan Amendment, which will require City Council approval, will establish the parking requirements for each of the different land uses that can potentially locate in the project. Furthermore, the Master Precise Plan, which also will require City Council approval, will demonstrate how those parking requirements will be met. Parks The proposed project park requirement is 4.6 acres. In accordance with provision of the Park Land Dedication Ordinance (PLDO) and the proposed Development Agreement, allows for a 4.6 acre park requirement to be met through the construction, programming and maintenance of a highly - amenitized 2 -acre urban park that is valued at or greater than 4.6 acres of park. The 2 -acre urban City of Chula Vista Page 7 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 185 File #: 15 -0206, Item #: 10. park is a public park, and will be constructed and maintained similar to the urban park that is proposed in the Eastern Urban Center. Proposed General Plan Amendments The proposed mixed use Project would add up to 600 multi - family for sale and rental units and implements a vision of a 24 -hour lifestyle center. Other similar plans in the region such as the Westfield Mall at University Town Center have done this. As proposed, the Chula Vista General Plan (GP) would provide the revised vision and policy direction for the planning of Freeway Commercial North (FC -2). The FC -2 site is proposed to have new mixed use residential with ancillary commercial and an urban park. These new proposed land uses necessitates the crafting of a new objective and supportive policies that address: Uses, Intensity, and Design aspects of the proposed project as well as its relationship to FC -1. The new policies also provide clear guidance for the subsequent preparation of the Sectional Planning Area (SPA) Plan Amendment, which will implement the proposed Project. The proposed amended vision of the GP for this area is that the focus area provides both local and regional- serving retail commercial and entertainment uses as well as high density mixed -use residential. The High Density /Mixed Use Residential in the northerly portion of this area promotes walkability, reduce vehicle miles traveled (VMTs), and decrease traffic impacts through the pedestrian activation of Town Center Drive and close proximity between the hotels, park, retail commercial, residential uses, and the adjacent transit. The new objective and key policies that relate directly to design and land use are listed below. Objective: • Create a high - quality mixed -use, transit supportive development within Freeway Commercial North (FC -2) with hotels, commercial retail, park, and high- density residential uses through a cohesive, coordinated design that integrates well with the Freeway Commercial South (FC -1) shopping center. Policies: • Multi- family density is intended at the lower range of the Mixed Use Residential category and is envisioned to provide both for -sale and rental products. The distribution of uses within the Mixed Use Residential is to be predominantly residential with ancillary retail commercial that is intended to primarily serve the nearby residences, and hotel and park patrons. • The FC -2 site is envisioned as low to mid -rise generally ranging between 3 -5 stories in height. • Provide attractive and appealing design treatment on all sides of the project site with landscaping, hardscape, architectural features and enhanced elevations, and amenities that are aesthetically City of Chula Vista Page 8 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 186 File #: 15 -0206, Item #: 10. coordinated with the surrounding land uses. • The public park should be a high ly- amenitized urban park that is accessible both visually and physically to the surrounding land uses and thoroughfares, and serves local residents, as well as hotel and shopping center patrons, and the public at large. • The design of Town Center Drive should promote a pedestrian orientation while accommodating the necessary vehicular demands of the FC -2 area, and its function as the northerly entrance to the FC -1 Otay Ranch Town Center. • Provide safe, comfortable and easily identifiable pedestrian crossing locations, routes and signage to the southerly Otay Ranch Town Center BRT station to promote use by hotel patrons and residents. The Project is consistent with proposed GP policies listed above and existing GP goals and policies that reinforce the coordination and provision of balanced land uses (e.g. residential, commercial, park), building and pedestrian design features that promote quality urban design, and the provision of public facilities (like the park) to serve residents and visitors. This is consistent with many of the Planning Factors, Objectives and Policies Outlined in Section 7.0 of the LUT Element such as: • Balanced Land Uses - "A balance of land uses - residential; employment; commercial; recreational ... provided at the appropriate intensity, location, and mix. Benefits include: reduced commute times; improved air quality; higher sales tax revenues; increased mobility options." • Urban Design & Form - "Establishing and reinforcing Chula Vista's urban design and form is necessary to ensure the desired character and image of the City is protected and enhanced as the City grows and develops over time." • Compatible Edge Transitions - "Mixed use areas will inherently have higher levels of activity and intensity than solely residential neighborhoods. Both the pattern of mixed use areas and individual project designs must be sensitive to edge transitions." • Enhancing Community Image - "It is created by both natural and man -made features, such as views; open space, city entryways; primary or secondary gateways, streetscapes; buildings; parks; and plazas." The mix of hotels, high- density residential and commercial in a mixed -use format, a 2 -acre urban park, located in close proximity to one another, and a planned BRT route promotes walkability and "smart growth" development. The hotels, urban park, and residential units will also activate the commercial uses along Town Center Drive; encourage walking and transit use; and reduce automotive dependency. The proposed mix use residential with higher density multi - family and ancillary commercial uses located along Town Center Drive adjacent to the Otay Ranch provides a City of Chula Vista Page 9 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet Page 187 File #: 15 -0206, Item #: 10. compatible transition between the FC -2 site and the Town Center mall (FC -1) to the south. The activities of the mall are compatible with the pedestrian- oriented activities envisioned for the mixed use project as higher- density residential are proposed adjacent to and within walking distance of the mall. The planned BRT route is conveniently located between and serves patrons and residents of the FC -1 and FC -2 sites. Residents, park and hotel users on the FC -2 site have easy and convenient access to the FC -1 mall and vice - versa. The ancillary commercial uses in the proposed Project, while serving the hotels, residents and park users, are complimentary to the uses in the mall and provide additional shopping opportunities for patrons of the mall. The placement of an urban park fronting Town Center Drive creates a pedestrian- oriented focal point within Freeway Commercial North. The current southerly terminus of Town Center Drive is adjacent to a main pedestrian walkway within the Town Center Mall and provides for a primary pedestrian link between Freeway Commercial North and South. At the SPA Plan level, in accordance with the GP and GDP, the Applicant will provide pedestrian features such as enhanced pavement, trellises, seating areas, and low monument signage surrounding the urban park that will accentuate a pedestrian- oriented focal area within Freeway Commercial North. The comprehensive list of all the proposed GP policies is located in Appendix A of Attachment 3. A subsequent SPA Plan amendment is necessary and will be required to show consistency with the new objective and associated policies. 2. Otay Ranch GDP The Otay Ranch GDP provides a vision and direction for the planning of the Freeway Commercial area, including the FC -2 subarea. The vision of the GDP for this area, as amended, is that Freeway Commercial North (FC -2) will provide hotels and high density residential in a mixed -use urban character setting that includes ancillary commercial uses and an urban park. Hotels are a permitted use in the existing SPA Plan for both the South (FC -1) and North (FC -2) subareas. Because the proposed Development Agreement ensures that hotels will be constructed in FC -2, the proposed GDP amendments identify hotels as a required part of FC -2 in conjunction with the other uses as described above. A similar revision is not being made in FC -1 because there is no requirement or assurance that hotels would be constructed on the FC -1 site. Key new policies are added to the Otay Ranch GDP to ensure the quality of development anticipated with the FC -2 project. They include the following: • Orient hotels and high density residential mixed -use buildings in a manner that defines the primary pedestrian areas, creates a strong pedestrian connection between buildings, and City of Chula Vista Page 10 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 188 File #: 15 -0206, Item #: 10. provides for a continuous pedestrian experience. • Mixed -Use buildings facing Town Center Drive and primary pedestrian urban spaces shall contain commercial uses that support pedestrian activities such as dining, retail and entertainment, and cultural experiences. • Hotels and mixed -use buildings shall exhibit an urban character through the use of quality building materials, textures, and scale. • Establish an urban identity through the use of streetscape features and amenities, such as bollards, street furnishings, and enhanced pavement between vehicular driveways. • Provide safe and accessible pedestrian connections to the existing and anticipated routes to the planned Bus Rapid Transit (BRT) stations. Provide features to buffer pedestrians from the BRT travel lanes where pedestrian walkways are located along the travel lanes. • Internal and external circulation systems shall be provided including a strong pedestrian - orientation, and enhanced pedestrian connectivity to the regional shopping center and internal connections between the high density residential and mixed -use areas, the hotels and the urban park. • A centrally located urban park including amenities shall be provided at a highly visible location and will serve as a public attraction in addition to serving the surrounding high density residential. • In Freeway Commercial North (FC -2), the freeway commercial land use category permits hotels and high density residential in an urban character mixed -use setting, allowing for primarily 3 to 6 story mid -rise buildings (heights will be established at the SPA level). The comprehensive list of all the proposed GDP policies is located in Appendix B of Attachment 3. The Freeway Commercial SPA Plan will require subsequent amendment so that it implements these GDP goals and objectives. Fiscal Impact Analysis (FIA) City of Chula Vista Page 11 of 16 Wrow-TOKOTIMPAWOR 2015 -05 -26 Agenda Packet Page 189 File #: 15 -0206, Item #: 10. A FIA has been prepared using the City's Fiscal Impact Framework (see Appendix C of Attachment 3). Typical GPA and GDPA's are evaluated only in a build -out condition. However, given the DA and proposed GP and GDP policies that stipulate specified project features, and even though a SPA Plan is not being processed, staff required the FIA to include development phasing increments typically not required until a SPA Plan is prepared. When the SPA Plan amendment is be processed this FIA will fulfill that requirement. Based on the FIA and the assumptions contained therein, the fiscal impact generated by the proposed Project as compared to the currently approved plan (i.e. base), are zero in Years 0 & 1 and positive in all future study years including at build -out. This is because no construction is taking place on the site in Years 0 & 1. Both the base and proposed Project are estimated to generate more revenues than expenditures throughout the build -out period. The base is estimated to generate annual revenues of $4.1 million and expenses of $2.1 million resulting in a net positive fiscal impact to the City of $2.0 million annually at build -out. The proposed Project is estimated to generate revenues of $4.8 million and expenses of $2.3 million resulting in a net positive fiscal impact to the City of $2.5 million annually at build -out. Overall, the proposed Project is estimated to generate approximately $0.5 million more than the base primarily due to the Transient Occupancy Tax (TOT) revenues estimated from the development of the hotels. The fiscal surplus (difference between the base and the Project) starts in Year 2 at $391,720 and grows to an annual net fiscal surplus of approximately $536,318 by build out, Year 10. As required by the development agreement, construction for the first hotel will begin prior to the issuance of a residential permit. Due to the TOT collected early on, the project will produce greater revenues than costs, creating the early surplus. With more residential development underway between years 2 and 4, the surplus temporarily declines to a Year 4 low of $173,609 before increasing again to the ultimate surplus of $536,318. While hotel uses are allowed under the current FC entitlement, the original FIA for the Freeway Commercial SPA Plan did not include revenues for hotels, therefore, the base (i.e. existing approved project) does not include revenues for hotels because there are no assurances that hotels would be developed on either FC -1 or FC -2 sites. The Development Agreement for the proposed project ensures that the City will get two hotels, one of which will be under construction prior to issuance of a building permit for residential uses. The findings in the FIA show that hotel uses generate revenues for the City at a higher rate than general commercial, and the proposed project will generate over a half million dollars more than the base, as described above. 3. Development Agreement State and City Requirements for Development Agreements California Government Code sections 65864 et seq. authorizes cities to enter into a development agreement with any person having a legal or equitable interest in real property for the development of City of Chula Vista Page 12 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet Page 190 File #: 15 -0206, Item #: 10. the property. A development agreement is a contract negotiated between the project proponent and the public agency that specifies certain mutual benefits negotiated for a particular project and vests, subject to certain conditions in the agreement, the rights of the project applicant to develop the property under current land use regulations for a specified term. Through City Resolution No. 11933 (adopted in 1985), the City Council has determined that development of large projects within the City create unique and complex development considerations and that, in addition to the minimum requirements for development agreements contained in the Government Code, additional procedures and requirements for the consideration of development agreements shall be contained within each individual agreement. The Development Agreement presented here includes the requirements for development agreements contained in the Government Code, as well as additional procedures and requirements designed to address the unique and complex development considerations presented by the Project. The following discussion summarizes the benefits of the Development Agreement to both the City and the Applicant, and describes the fundamental terms of the agreement. Public Benefits Beyond the basic benefits of developing a project of the character of Freeway Commercial North (FC -2), the City will receive the following benefits from entering into the Development Agreement, which is presented in draft in Attachment6: • Dedication of right of way and construction easements necessary for the completion of the South Bay Bus Rapid Transit (BRT) line. • Provision of two hotels totaling at least 300 rooms. • Increase in net fiscal revenue of over $500,000 annually at build out as compared to the currently approved project. • A highly amenitized (see Exhibit "E" of DA) two acre public park provided in a turnkey manner after the construction of 300 residential units. • Funding to cover regular maintenance of the two acre public park. Benefits to the Master Developer • Predictability in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of development consistent with the Freeway Commercial SPA Plan and existing land use laws, regulations and policies for up to twenty (20) years. • Use of the City's Development Impact Fee Deferral Policy for the life of the Development Agreement (up to 20 years). Pursuant to the Development Impact Fee Deferral Policy, the Master Developer may defer the payment of Development Impact Fees until the request for final City of Chula Vista Page 13 of 16 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 191 File #: 15 -0206, Item #: 10. inspection of each individual residential unit upon satisfaction of specified conditions. • Ability to convert commercial area into mixed use development with a total of 600 high density multi - family units and 15,000 square feet of retail space. • Ability to meet a reduced total park acreage obligation through an onsite equivalency program. Other Terms of the Agreement The Development Agreement will contain the following additional major points: • The term of the Development Agreement, all tentative maps and other development approvals will be twenty (20) years. • For the Term of the Development Agreement, the Master Developer and its merchant builders shall have the vested right to develop the property pursuant to the Sectional Planning Area (SPA) Plan, Tentative Map, Development Agreement, and existing land use laws, regulations and policies. The Development Agreement will vest permitted uses, density, intensity, timing and phasing of development, and reservations and dedications of land. • The Development Agreement may be amended from time to time by the mutual written consent of the City and Master Developer and the Owner of any affected portion of the property. • The City shall accept and process with reasonable promptness all completed applications for subsequent approvals. • The Development Agreement shall run with the land and benefit and bind future owners should the Master Developer sell or transfer ownership. The Development Agreement (DA) ensures that the 2 hotels and urban park are constructed, and phased appropriately with residential development to ensure balanced land uses are planned and built. The DA requires that the Developer meet all of its park obligations, but allows for flexibility in how those requirements are achieved. This park will be constructed to standards that exceed the requirements of a 4.6 acre park that would otherwise apply to the project. The DA contains a list of features for the Urban Park in Exhibit "E" such as water features, public art, amphitheater, sculptural landforms, rockscape /informal play areas, urban "botanical" garden, video projection screen /shade structure, adult fitness spaces /stations that would be considered as "highly - amenitized" because they are generally not included in urban parks. To the extent the cost of the urban park is less than the estimated cost to construct a standard 4.6 acre park, based on an audit, the developer must pay the excess to the City for use on other parks in the area. The highly - amenitized urban park enhances the community image of Freeway Commercial North as well as for Chula Vista. The hotels will provide jobs and higher revenues to the City through Transient Occupancy Tax (TOT) and the City of Chula Vista 2015 -05 -26 Agenda Packet Page 14 of 16 Printed on 5/21/2015 powered by Legistar Page 192 File #: 15 -0206, Item #: 10. ancillary commercial will also provide additional jobs and sales tax to the City. 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 that is subject to this action. In addition, staff has conducted a decision maker conflict of interest review concerning Councilmember Miesen and has determined that a potential conflict of interest may exist because it may be reasonably foreseeable that a financial effect on a business entity in which Councilmember Miesen has a financial interest may be material. 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. The Freeway Commercial North Project supports the Economic Vitality goal, particularly City Initiative 2.1.3 (Promote and support development of quality master - planned communities). The proposed GP and GDP policies support the development of a quality master - planned community (as described above) with parks, jobs, transit, shopping, and other amenities, all within walking distance for residents. The Project also results in positive net economic benefit for the City as described in the FIA section. CURRENT YEAR FISCAL IMPACT The processing for the GP and GDP Plan amendments, Addendum, and all supporting documents were funded by a developer deposit account. This account funded city staff and consultants representing the City on the Freeway Commercial North project. ONGOING FISCAL IMPACT The Supplemental FIA for the Freeway Commercial North Amendment estimates that during years 0 and 1 there would be no difference between the base and proposed Project's fiscal impact of $1.9 million net annual positive surplus because the hotels have not yet been constructed. From years 2 through 10 (build -out), when comparing the base to the proposed Project, there would be a net positive fiscal benefit to the City starting at approximately $390,000 per year and increasing to over $536,000 per year. If approved, the proposed Project will yield an overall estimated $2.5 million annual net positive fiscal impact to the City at build -out, compared to an estimated $2.0 million under the adopted plan. ATTACHMENTS City of Chula Vista 2015 -05 -26 Agenda Packet Page 15 of 16 Printed on 5/21/2015 powered by Legistar Page 193 File #: 15 -0206, Item #: 10. 1. Locator Map 2. Planning Commission Resolution 3. Proposed GP /GDP Amendments (Provided on 4/30/15) 4. Addenum to FEIR 02 -04 (Provided on 4/30/15) 5. Discloure Statement 6. Development Agreement 7. Chula Vista Elementary School District Letter 8. Sweetwater Union High School District Letter 9. Water Supply Assessment Staff Contact: Stan Donn, Senior Planner, Development Services Department City of Chula Vista Page 16 of 16 Wrow-TOKOTIMPAMON 2015 -05 -26 Agenda Packet Page 194 \�I// � �H�v�A Memorandum Development Services Department DATE: May 22, 2015 TO: Honorable Mayor and City Council VIA: Kelly Broughion, FASLA; Development Services Director I�� FROM: Steve Power, Principal Planner �� sP `� REGARDI\iG: Freeway Commercial North Project and Addendum This memorandum is being provided in response to concerns that were espressed at the Council meeting of May 12; 201� re�arding the issue areas noted below. Each of the subjects has been addressed through the projecYs technical studies, the Addendum, and in the staff report and presentation. This information provides further explanation under each area of concem noted. Water Availabilitv The Otay Water District approved a�Vater Supply Assessment (�'�'SA) and Verification RepoR for the proposed project on April 1, 201�. The Water Supply Assessment and Verification Report projected an approximately 173 acre-feet per year increase in demand beyond�vhat was estimated in the 2010 Water Resowces Master Plan. The demand is accounted for throueh the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 Urban �'�'ater Management Plan. The VVSA concluded that there is sufficient water supply to serve the long term water needs of the project The WSA accounts for multiple drought years and uncertainty in supply sources. An approved WSA constitutes substantial evidence of adequate water supply for CEQA compliance purposes. Staff has im�ited a representative froin the Otay Water Disfict to the continued hearine on May 26 should there be fuRher technical questions. Traffic and the 15 Percent Trip Reduction _ The current commercial use approved for the site results in 12,14� trips. As proposed, the project would result in 7,506 trips. The 7,506 trip figure indudes a 1�% reduction in trips pursuant to the SANDAG trip generation rate table. The SANDAG table calls out a �% trip reduction for transit access within a 1/4 mile of a transit station, and a 10% reduction for a mixed use project. The FC North project qualifies for both reductions as it is within the noted distance from the future Otay Ranch Town Center BRT station, and is a mixed use project; hence the resulting trip reduction of 1�%. Although the traffic study�nentions that up to 30%could be applied, staff��ent�vith the more Council 1•temo �-22-1� pabe � conservative SANDAG criteria of 1�%. Please note that a 1�%trip reduction equates to about 1,12� trips; based on the conservative estimate of 7,506 project trips. The project would have a trip generation of about 3,625 trips without the reduction; which is still si�mificantly lo�ver than the 12,14� trips that the approved project �enerates. Adequacy of Parkina Concems �vere expressed regarding the adequacy of parking to be provided on site. A site specific parkin� analysis has not been performed yet since the project being considered at this time is a General Pian and General Development Plan Amendment (GPA/GDPA); rather than a specific development project. Should the GPA/GDPA be approved, a subsequent Sectional Planning r�.rea (SPA) Plan amendment would be required to move to��ard implementation. Parking standards are established�vithin the SPA Plan;wiih final parking quantities and design determined when specific, individual development projects are evaluated through the Design Review process. This latter process is��hen details necessary to detennine actual parking demand are known, such as final unit counts and the number of bedrooms. Adequacy of Public Services Police—the project site will be adequately semed by existing police facilities. Development Impact Fees will be paid consistent with City requirements. The project is required to pay all applicable impact fees, assuring that there is no adverse impact to public services. Construction of the City's main police facility was completed in 2004.This project included the construction of a new Police DepaRment Headquarters;parking structure;and necessary on-site and off-site improvements. When compared�vith the previous facility,the new Police facility added 98,000 square-feet for a total of 148,000 square feet, in addition to a 150;000 square foot parking facility. This additional usable area�vill house all ofthe additional staff necessary to attain police service thresholds. At build out,this facility will house 326 s�vom officers and 207 civilian personnel. The proposed project �vill not result in the need for the construction of any new police facilities, thus not causing any environmental impacts not previously analyzed in the Freeway Commercial EIR. Fire—the project site will be adequately sen�ed by fire facilities. A Fire Facility Master Plan �vas approved by the City Council in January of 2014. The approved master plan calls for a total of 12 fire station city-wide. The master plan calls for ne�v stations in the Mille�ia and Village 8 azeas. The project is required to pay development impact fees for fire facilities. The proposed project will not result in the need for tbe construction of any new fire stations; thus not causing any environmental impacts not previously analyzed in the Free�vay Commercial E[R. Library — the current Chula Vista Public Library Strategic Vision plan �vas completed in February of 2014. This plan identifies the need for 60,000 square-feet of additional library space for the City to support buildout. If General Plan amendmenis invoh�ing new Council Memo 5-22-15 Page 3 residential units aze approved, which has occurred on multiple occasions over the years, subsequent updates to master plans,such as the Library Mater Plan,are warranted in order to accordingly incorporate and reflect any associated new demand resulting from the approved GPA. Following action on any revised Master Plan, the City then makes any according adjustment to the associated Development Impact Fee(DIF) amounts as necessary to ensure that the needed facilities in the updated Master Plan aze sufficiently funded. This is our standazd practice since the establishment of the DIF programs in the eazly 1990s. The FC North project results in the incremental demand for an additional approximately 855 squaze-feet of library space (applying the 500 sq.ft./1000 population standard). This figure represents about 1% of the 60;000 squaze-feet of additional library space in the current Library Master Plan (LMP). The LMP current identifies two sites for meeting those needs; Rancho Del Rey and Millenia. Both of these sites have been analyzed in project EIRs, and the physical environmental effects of future library facilities on those sites disclosed. The associated, small net incremental demand from the FC North Project can be accommodated one or both of those sites, and no ne�v library sites are needed; resulting in no new physical impacts beyond those previously evaluated. Accordingly, and as with other, similaz public facility needs, library requirements will be addressed through the payment of associated development impact fees and will not result in any physical impact on the environment. CEQA Guidelines Section 15164 Addendum, states the lead agency or responsible agency shall prepaze an addendum to a previously ceRified EIR if some changes or additions are necessary but none of the conditions described in Section 15162 calling for prepazation of a subsequent EIR have occurred.Section 15162(a)(2)states an addendum is appropriate when there are no new srgi:ificant environmental effects. Signifrcant environmenta/ eJject is defined in CEQA as a substantial or potentially substantial adverse chanee in the phvsical conditions ofthe environment. The disdosure and imposition of an impact fee, including a library impact fee, does no[ rise to this level, and is, therefore, not a significant environmental effect. cc: Gary Halbert, Ciry Manager Glen Googins, City Attomey Ed Batchelder, Planning Manager Stan Donn, Project Manager RESOLUTION NO. GPA 12 -03, GDPA /PCM 12 -15 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION HEREBY NOT RECOMMENDING THAT THE CITY COUNCIL: 1) CONSIDER THE ADDENDUM (IS- 12 -03) TO FEIR 02 -04; 2) APPROVE AMENDMENTS TO THE GENERAL PLAN, OTAY RANCH GENERAL DEVELOPMENT PLAN (GDP), AND 3) APPROVE AN ASSOCIATED DEVELOPMENT AGREEMENT, ALL FOR THE FREEWAY COMMERCIAL NORTH PORTION OF OTAY RANCH PLANNING AREA 12 LOCATED SOUTH OF OLYMPIC PARKWAY, EAST OF SR -125 AND WEST OF EASTLAKE PARKWAY WHEREAS, on July 9, 2012, a duly verified application was filed with the City of Chula Vista Development Services Department by Baldwin and Sons, LLC (Applicant) requesting approval of amendments to the General Plan (GPA 12 -03), Otay Ranch GDP (GDPA 12 -15), and a new Development Agreement affecting nearly 35 acres of the Freeway Commercial North (FC -2) area located south of Olympic Parkway, east of SR- 125 and west of EastLake Parkway (Project) and more specifically described below; and WHEREAS, the Project proposes to develop two hotels, add 600 new high - density residential units and approximately 15,000 square feet of ancillary commercial in a mixed -use format, and a 2 -acre highly amenitized urban park in FC -2; and WHEREAS, City staff has negotiated a development agreement with the Applicant for certain mutual benefits of the Project and determined it to be consistent with the Otay Ranch General Development Plan and the City's General Plan; and WHEREAS, a Fiscal Impact Analysis (FIA) and Commercial Land Analysis (CLA) were prepared to evaluate the fiscal implications of the proposed Project and any potential impacts of the proposed Project on the City's supply of commercial zoned lands; and WHEREAS, the proposed GPA and GDPA, Development Agreement, FIA and CLA are contained in a document entitled "PA12 - Freeway Commercial North (FC2) Amendment "; and WHEREAS, a subsequent Sectional Planning Area (SPA) Plan amendment and Tentative Subdivision Map are required to fully implement the Project; and WHEREAS, the area of land that is the subject of this Resolution are existing parcels located in the northerly approximate 35 -acre portion of Freeway Commercial (Project Site); and WHEREAS, the Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was covered in the previously adopted Final Environmental 2015 -05 -26 Agenda Packet Page 196 Planning Commission Resolution GPA 12 -03, GDPA 12 -15 Page 2 Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area (SPA) Plan - Planning Area 12 (FEIR 02 -04) (SCH #1989010154), and has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Development Services Director has prepared an addendum to FEIR 02 -04; and WHEREAS, the Development Services Director set the time and place for a hearing on the Project, and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owners within 500 feet of the exterior boundaries of the property, at least 10 days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m., April 22, 2015, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and the hearing was thereafter closed; and WHEREAS, the Planning Commission having received certain evidence on April 22, 2015, as set forth in the record of its proceedings and incorporated herein by this reference, voted 2 -2 -2 -1 recommending that the City Council approve the Project; and WHEREAS, the Planning Commissions 2 -2 -2 -1 vote resulted in a failed motion because there was not a majority vote; and WHEREAS, to forward the project to the City Council, after concurrence from the Applicant, the Planning Commission took another vote recommending that City Council deny the Project, acknowledging that two of the Planning Commissioners recommended approval of the Project; and WHEREAS, the Planning Commission vote to recommend that the City Council deny the project carried 4- 0 -2 -1. NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA hereby recommends that the City Council not adopt the attached Draft City Council Resolution and Ordinance approving the Project. BE IT FURTHER RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA THAT a copy of this Resolution and the draft City Council Resolution and Ordinance be transmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA, CALIFORNIA, this 22nd day of April, 2015, by the following vote, to -wit: 2015 -05 -26 Agenda Packet Page 197 Planning Commission Resolution GPA 12 -03, GDPA 12 -15 Page 3 AYES: Fragomeno, Anaya, Fuentes and Gutierrez NOES: ABSENT: Calvo and Nava ABSTAIN: Livag ATTEST: Pat Laughlin, Secretary Presented by: Kelly Broughton, FSALA Development Services Director Yolanda Calvo, Chairperson Approved as to form by: Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 198 Project: PA 12 - FREEWAY COMMERCIAL NORTH (FC2) AMENDMENT Date: MARCH 2015 Documents: GP: (GPA 12 -13) GDP. (PCM 12 -15) By: BALDWIN & SONS 610 WEST ASH STREET, #1500 SAN DIEGO, CALIFORNIA 92101 T. 6191234 -4050 2015 -05 -26 Agenda Packet Page 199 2015 -05 -26 Agenda Packet Page 200 CITY OF CHULA VISTA GENERAL PLAN OTAY RANCH GENERAL DEVELOPMENT PLAN AMENDMENTS Project: PA 12 - FREEWAY COMMERCIAL NORTH (FC2) AMENDMENT Date: MARCH 2015 Documents: GP: (GPA 12 -13) GDP. (PCM 12 -15) By: BALDWIN & SONS 610 WEST ASH STREET, #1500 SAN DIEGO, CALIFORNIA 92101 T. 6191234 -4050 2015 -05 -26 Agenda Packet Page 201 2015 -05 -26 Agenda Packet Page 202 CITY OF CHULA VISTA GENERAL PLAN OTAY RANCH GENERAL DEVELOPMENT PLAN AMENDMENTS Contents: Project Overview Introduction.................................. ............................... 1 OtayRanch Background .................. ............................... 1 Freeway Commercial Background ...... ............................... 2 Project Description GeneralProject Description ................. ............................... 3 ProposedSite Plan ............................ ............................... 4 SitePlanning Concept .................... ............................... 4 Justification For Proposed Amendments General Plan Justification ................ ............................... 6 General Plan (GP) Amendments ...... .......................Appendix A General Development Plan (GDP) Amendments Appendix B Fiscal Impact Analysis ............ ............................... Appendix C Commercial Lands Analysis .. ............................... Appendix D BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS TABLE OF CONTENTS e 2015 -05 -26 Agenda Packet Page 203 2015 -05 -26 Agenda Packet Page 204 INTRODUCTION For over 50 years, Baldwin & Sons has developed master - planned communities in Southern California's San Diego and Orange Counties. In that time, the company has built over 18,000 homes and has proudly earned a reputation for creating high quality communities. Many of those communities have been honored for outstanding achievement including the Pacific Coast Builders Gold Nugget Award, the Los Angeles County Beautification Award, and the Good Housekeeping Award. Baldwin & Sons is also a 3 -time winner of the National Association of Homebuilders' "Home of the Yeas" Award. Locally, Baldwin & Sons is a founding developer of the Otay Ranch community in Chula Vista. Baldwin & Sons is responsible for planning many of the community's villages as well as building numerous homes, commercial spaces, schools, and parks while preserving open spaces for recreation and enjoyment of residents. Baldwin & Sons is pleased to present the following project application. The proposed project establishes a unified, walkable, mixed -use plan for the FC2 district of Otay Ranch Planning Area 12. It is intended to enhance living, working, shopping, and transit options in the area. The project amends existing commercial entitlements on approximately 28.7 acres of the 35.0 acre FC2 site to implement 600 multi - family dwelling units and a 2 -acre public park. Commercial entitlements for the residual 6.3 acres of FC2 will remain unchanged and will accomodate two hotels with 300 total rooms. The project requires amendments to the City of Chula Vista General Plan (GP), the Otay Ranch General Development Plan (GDP), and the Freeway Commercial Specific Planning Area (SPA) Plan. The project also involves addenda to the approved Freeway Commercial Environmental Impact Report (EIR) and Public Facilities Financing Plan (PFFP), as well as a new Fiscal Impact Analysis (FIA). OTAY RANCH BACKGROUND The Otay Ranch General Development Plan/ Sub Regional Area Plan (GDP/ SRP) was originally adopted by the Chula Vista City Council and the San Diego County Board of Supervisors October 28, 1993. The plan governs the 23,000+ acre Otay Ranch Properties. The Otay Ranch GDP is based upon, and directly implements, the City of Chula Vista General Plan. The Otay Ranch GDP includes plans for urban villages, a resort community, the Eastern Urban Center, industrial areas, rural estate planning areas, and a university. Since its adoption in 1993, the GDP was amended in 1998, 2001, 2005, 2006, and most recently in 2014 to address Village- specific planning issues. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT OVERVIEW 1 2015 -05 -26 Agenda Packet Page 205 EXISTING PA 12 1FC2 SITE , EASTLAKE` ' 4 am (commercial) OTAY • RANCH A , PA12 V6 M1 • • / / " °/ f (project site) `♦ o o a�^` W �� OTAY RANCH V11 OTAY RANCH ` PA12 /TOWN CENTER (existing commercial) FREEWAY COMMERCIAL BACKGROUND , The Freeway Commercial SPA was originally envisioned to be the freeway commercial component of the regional commercial, cultural, social, and public services center of the East Urban Center (EUC). It was also the freeway commercial area in the heart of Otay Ranch as established in the Otay Ranch General Development Plan (GDP). The Otay Ranch Freeway Commercial Center represents a southward and eastward extension of the initial development approved in Otay Ranch Sectional Planning Area (SPA) One, containing Villages 1 and 5. It also represents an eastward extension of Village 6 and a westward extension of Village 11. Additionally, the Freeway Commercial Center is an extension of the urban development approved and constructed in the Eastlake Planned Community, located immediately to the north. In 2001, a GDP amendment separated the EUC and Freeway Commercial components into separate planning areas. In September 2004 the Freeway Commercial SPA Plan was adopted and entitled approximately 1,214,000 sf of commercial uses: 867,000 sf on FC1 and 347,000 sf on FC2. In 2006, the Otay Ranch Town Center Mall was constructed on FC1 and in 2007 a SPA amendment was approved which raised the total commercial area allowed on FC1 from 867,000 sf to 960,000 sf. Today, the FC2 site remains vacant and undeveloped. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT OVERVIEW 2 2015 -05 -26 Agenda Packet Page 206 BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT DESCRIPTION 3 2015 -05 -26 Agenda Packet Page 207 PROJECT DESCRIPTION PROJECT IMPLEMENTATION The proposed project establishes a unified, walkable, mixed -use plan for the FC2 district of Otay Ranch Planning Area 12. It is intended to enhance Planning living, working, shopping, and transit options in the area. Amendments to the City of Chula Vista General Plan (GP), and the Otay Ranch The project amends existing commercial entitlements on approximately 28.7 General Development Plan acres of the 35.0 acre FC2 site to implement 600 multi - family dwelling units, (GDP). An amendment to 15,000 square feet of mixed use retail, and a 2 -acre park. the existing SPA plan and preparation of a Master Precise Plans will be Commercial entitlements for the residual 6.3 acres of FC2 will remain required. unchanged and are planned for construction of two hotels totaling 300 rooms. Because commercial entitlements have already been established, Mapping A new tentative map for and the hotels are consistant with the commercial zoning, processing (such the entire FC2 site will be as Design Review and building permits) for the hotels will remain separate necessary to separate from this proposed project. out the residential and commercial zoning areas as well as the The proposed project will generate approximately 2.2 acres of Community public park. Additional Purpose Facility (CPF) obligations. CPF obligations will be provided either lots within those zoning on site or off -site and may include meeting rooms /gathering areas in the areas will be proposed to facilitate a variety of hotels, child care and gathering facilities in the retail spaces, and shared development scenarios bicycle facilities or other recreational opportunities in any of the uses. The and opportunities. future SPA Plan Amendment and Master Precise Plan will provide detail on exactly how and where the obligation is met. The proposed project will also Environmental Addendum to the generate approximately 4.7 acres of park facility obligations. This obligation approved EIR. New will be satisfied by providing two acres of park land onsite and utilizing technical studies have the value of the remaining 2.7 acres on that site through an enhancement been prepared for traffic, program (as detailed in the Project's development agreement). Any noise, AQ/GHG, health risk, water, and sewer equivalency value not spent on the park enhancement will be paid to the City as an in -lieu payment. Facilities Addendum to the existing PFFP that identifies, Implementing the proposed project requires amendments to planning summarizes and documents, maps, environmental documents, financing plans, as well as implements facility costs preparation of new technical and fiscal studies. This current application associated with the project consists of a General Plan Amendment, a General Development Plan Fiscal Amendment, and a development Agreement. The proposed project is less A Fiscal Impact Analysis intensive than the currently approved commercial zoning on the site and (FIA) has been prepared caused no new mitigation to be required. An addendum to FEIR 02 -04 has to analyze revenue and service costs for the City. been prepared pursuant to CEQA. Future applications will be required for a SPA Plan Amendment, a Master Precise Plan, a tentative map, and final maps. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT DESCRIPTION 3 2015 -05 -26 Agenda Packet Page 207 ILL US FRATIVE PA121FC2 SITE PLAN I ryl 71 C4 — r Ir , Hotel: 148 rooms Hotel: 152 rooms Q1 2 Acre Public Park' { Iwrm27r f v Residential: 300 units (apartments) Retail: 15,000 sf (mixed -use buildings, -� along Town Center Drive) Residential: 300 units (condos) SITE PLANNING CONCEPT: The proposed project establishes a unified, walkable, mixed -use plan for the FC2 district of Otay Ranch Planning Area 12. It is intended to enhance living, working, shopping, and transit options in the area. Site uses are located to engender project goals, and enhance the viability of proposed uses. Although new residential uses are proposed, the importance of commercial uses, including hotels, is recognized. As a result, the amount, and location of the uses has been prioritized in the site planning process. Site planning responds to hotel needs by locating the hotel uses on the northwest corner of the site where they will have optimal visibility from both Olympic Parkway and SR -125. The planned retail uses (provided in a mixed use format) are located along Town Center Drive. This location provides the cretail optimal visibility from the street, and the planned diagonal parking will provide convenient accessibility for customers. This is crucial to the viability of retail /commercial uses on PA12. The park, fronting on Town Center Drive, is located at the center of the project and intended to link all of the uses toqether. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT DESCRIPTION 4 2015 -05 -26 Agenda Packet Page 208 PA 12 1FC2 SITE PLAN CONCEPT rj ri► �y.L �� Commercia ' ��(hotels) .� 1 / Internal park /� / Mixed Use connections f Residential, - between (w/ 15,000 SF e SR 125 Residential setback uses J ► of retail) Mixed Use I ��. \VA ps \� \ \ \ \ \VR Residential 1) �.Oj L. s r' row �.O �♦ \\ \\ �� Transit stop: Pedestrian connection to �� Walkable from OR Village 6 via BRT �� residential ♦�� \ \ \ \ \ \ \ \ \ \ \ \ \ \ \' \ \ \ \ \ \ \ \ \ \ \ \Pedestrian/ Vehicular overpass Connection to Otay Ranch Town Center Residential uses span both sides of Town Center Drive and were located to provide direct adjacency to the Otay Ranch Town Center mall. The location is also proximate to Otay Ranch Village 6 (via the pedestrian linkage that will be provided by the BRT bridge) which includes park and school uses as well as residential. The close proximity to these neighboring uses, as well as to the park and integrated retail uses on the FC2 site, encourages residents to walk to uses, rather than drive. The proposed residential uses are also within a short walk, less than half of a mile, of the proposed BRT transit stop along Eastlake Parkway at the Otay Ranch Town Center Mall. This further encourages residents to reduce automobile use in favor of walking and transit. Although residential uses are adjacent to SR125, buildings have been setback/buffered from the western property line to minimize the effects of the freeway. Additionally, the freeway is located well below the level of the residential pad. To connect uses in a walkable, cohesive manner on site, pedestrian walkways will connect residential, hotel and commercial uses. Additionally, in some cases, enhancements will be added to create a pedestrian friendly environment and encourage residents to walk. Architecture will be complementary across all uses to further establish a cohesive site design. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT DESCRIPTION 5 2015 -05 -26 Agenda Packet Page 209 GENERAL PLAN JUSTIFICATION EXISTING SITE CONDITIONS The FC2 project site is bounded by the SR125 (west), Olympic Parkway (north), Eastlake Parkway (east), and the Otay Ranch Town Center mall (south). Adjacent land uses include Otay Ranch Village 6 (west), a commercial center in the Eastlake planned community (north), Otay Ranch Village 11 (east), and the Otay Ranch Town Center Mall (south). A future Bus Rapid Transit (BRT) guideway is planned to bridge across SR125 from Village 6, cross the southwest portion of FC2, and progress east on the south side of FC2s southern boundary. Town Center Drive, an existing roadway, bisects FC2 into eastern and western sections. FC2 is approximately 35.0 gross acres. Approximately 347,000 sf of regional commercial uses were entitled on FC2 in 2003. In the mid 2000s, FC2 was rough graded. The site is currently vacant aside from temporary signage. Pedestrian and vehicular access to FC2 is taken from Olympic Parkway to the north and the Otay Ranch Town Center to the South. Town Center Drive provides pedestrian /vehicular access across the site and connects Olympic Parkway to the Otay Ranch Town Center. Additionally, the proposed BRT alignment will provide pedestrian access to the site from an off -site transit stop fronting the Otay Ranch Town Center along Eastlake Parkway. A pedestrian walkway will be provided on the proposed BRT bridge that spans SR125. This will provide pedestrian connection between FC2 and Otay Ranch Village 6. PROPOSED AMENDMENTS The proposed project creates a unified, walkable, mixed use FC2 site that enhances living, working, shopping, and transit options in the area. The project proposes to amend the General Plan to change 28.7 acres from Commercial Retail to 26.7 acres of Mixed Use Residential to implement 600 multi - family dwelling units, and two acres of Parks and Recreation. Implementation of the proposed project involves proposed amendments to the City of Chula Vista General Plan, the Otay Ranch General Development Plan, and a future amendment to the Freeway Commercial SPA Plan. In the General Plan, land use maps are updated to reflect a portion of the site changing from commercial to mixed use residential and parkland and tables are updated to reflect 600 new dwelling units and a resultant population of approximately 1,566 new residents. Additionally, City staff has crafted new policies to guide the development of a mixed use place. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT JUSTIFICATION 6 2015 -05 -26 Agenda Packet Page 210 In the Otay Ranch General Development Plan, land use maps are updated to reflect a portion of the site changing from commercial to mixed use. Additionally, tables are updated to reflect new dwelling units and population, and account for the additional park and recreation acreage. Additional new policies have also been crafted to provide further direction for SPA Plan implementation of the mixed use places. A Commercial Lands Analysis was prepared and supports the conversion of land from retail uses to residential showing that the region has an oversupply of planned retail area. A Fiscal Impact Analysis (FIA) was also prepared as part of the project, and shows that the project is a net positive to the City. Related to but independent from the proposed project, Baldwin & Sons will process a Design Review application for the construction of 2 hotels on the FC2 site. Hotels provide an undersupplied use to Chula Vista residents and significant fiscal benefit to the City of Chula Vista. The hotel uses are allowed under existing commercial entitlements. A CUP is required due to the height of the proposed hotels. I W_ \1011011116-1091611016-1101 MI: T_ T4 1[*] 101 6- FC2 is currently entitled with approximately 347,000 sf of commercial uses. No residential uses are entitled at this time. As a result, land use amendments are necessary for implementation of proposed residential uses on FC2. In replacing 332,000 sf of retail (though almost 200,000 square feet of commercial is provided in the form of the hotels) with 600 residential units on 26.7 acres, the proposed project changes density from 0 du /ac to approximately 23 du /ac. The proposed project complements and enhances the aforementioned surrounding land uses in OR Village 6 (to the west), Eastlake Commercial Center (to the north), OR V11 (to the east), and OR Town Center Mall (to the south) by adding a high- density housing option, and associated residents, within walking distance of these existing uses. These surrounding properties do not require a zone change due to the proposed project. The inclusion of residential dwelling units provides benefit to the neighborhood, community, and City of Chula Vista as a whole. In particular, the proposed project will engender development of a complete, mixed -use, multi -hour neighborhood that is unified, walkable, and dynamic. This is demonstrated in the following ways: More Walking, Less Driving Locating residential uses close to commercial uses will increase walkability and decrease vehicular trips. Residents will be able to walk to adjacent uses such as the Otay Ranch Town Center mall, Eastlake commercial center, and schools and parks in OR V6 (via pedestrian pathway on BRT bridge). BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT JUSTIFICATION 7 2015 -05 -26 Agenda Packet Page 211 Dynamic, Active, Safe By implementing residential uses, FC2 will become more active throughout the day, and will attract a broader set of visitors. This activity increases vibrancy and attracts residents /shoppers. Activity also creates a safer environment for residents /shoppers by increasing `eyes on the street'. Synergy Between Uses Increasing residential uses (and the resultant increase in population) will encourage and enhance existing uses in the project area. The increased population will support existing commercial uses and attract others. In so doing, adding residential uses will create a stronger, more dynamic retail environment. This not only benefits the commercial uses in the immediate area, it also benefits the community and city due to tax revenue generation. Increased Transit Ridership for BRT By locating residential uses near the proposed BRT transit stop on Eastlake Parkway, the proposed project will increase BRT ridership. This conforms to Chula Vista General Plan objectives by placing higher density residential near transit stations. It also increases the viability of BRT, and encourages alternatives to automobile use. Balanced Land Uses Currently, there is an oversupply of retail uses in the immediate area. This is evident in the low rents and high vacancy rates seen in commercial projects in the area. By converting commercial land to residential, the proposed project will reduce this oversupply. Commercial uses will also benefit from the new residential population /shoppers generated by proposed residential uses. Sense of Place and Character Adding residential to FC2 will create a sense of place and character to the district. The combination of residential, commercial, hotel, parkland, and regional transit (BRT) located in close proximity to the existing Otay Ranch Town Center will result in a vibrant, semi -urban node of activity. This unique environment in Otay Ranch will attract residents and visitors. Increased Housing Choices The proposed project will provide Chula Vista residents an increased number of housing choices /opportunities within the immediate Freeway commercial area, and in the city as a whole. The proposed residential apartments include a high - quality architectural design with equally high - quality on -site amenities. This combination of design and amenities in apartments is currently undersupplied in Chula Vista and one that will further attract residents to the community. Additionally, the for sale units will allow BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT JUSTIFICATION 8 2015 -05 -26 Agenda Packet Page 212 residents additional housing options within a highly walkable project that will offer access to already existing commercial uses. Contextual Design The proposed project will be similar to surrounding projects in terms of bulk, scale, and architectural design. Project site planning includes pedestrian and vehicular connections to the adjacent Otay Ranch Town Center Mall to facilitate/ encourage pedestrian and vehicular access. Internally, the uses on site will be designed in a cohesive manner. ECONOMIC CONSIDERATIONS The proposed project encourages economic growth and diversity within the City of Chula Vista. Increasing residential units and local population will increase viability of the existing commercial sites to the north and south as well as those uses proposed on the site. This will help existing retailers to flourish, and will attract others to the area. Also, although processed seperately, approval of residential uses will allow the development of hotels on a portion of FC2 which is currently entitled for commercial entitlements. Hotels will provide the City of Chula Vista with significant fiscal benefit. To further define these benefits, a fiscal impact analysis has been conducted. Although the proposed project reduces commercial acreage in the immediate area, a significant amount of the originally entitled 347,000 square feet of commercial will remain. Almost 200,000 square feet of the commercial entitlement will be used for the two hotels and another 15,000 square feet of retail will be provided in a mixed use format with the residential. Additionally, it is important to consider the economic benefit/ impact of project timing. Entitling residential uses will allow hotel and retail uses to be developed earlier. Without residential uses, the site would likely remain undeveloped for a longer period of time. As a result, residential uses will provide the City of Chula Vista revenues from hotel and retail uses in a more immediate timeframe. Finally, many of the retail users that were intended for this site have been able to relocate to projects in the Eastern Urban Center allowing the City to still capture sales tax revenues from those users while also helping to energize other area of Otay Ranch. ENVIRONMENTAL CONSIDERATIONS Historically, the Otay Valley Parcel of the Otay Ranch property was used for ranching, grazing, dry farming and truck farming activities. Because the site has been graded and is located in an urbanized area, there are few environmentally sensitive considerations on the project site. In particular, vegetation, sensitive wildlife, soils, topography, watercourses, visual corridors, noise sources and hazardous materials are not specific concerns. BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT JUSTIFICATION 9 2015 -05 -26 Agenda Packet Page 213 Due to the project's proximity to the the SR125 freeway, a health risk assessment was performed as part of the project analysis. Residential site planning will attempt to minimize any impacts from the SR125 freeway. The proposed project will provide preserve land acreage consistent with Otay Ranch General Development Plan and the existing Freeway Commercial SPA Plan prior to issuance of final map. HOUSING DEVELOPMENT CONSIDERATIONS The proposed project will accommodate affordable housing in a manner consistent with the City of Chula Vista Municipal Code and the Otay Ranch General Development Plan. INFRASTRUCTURE CONSIDERATIONS Water Currently water is provided to the area via a 16" water line in Olympic Parkway, a 20" line in Eastlake Parkway, and a proposed 12" line in Town Center Drive. A technical consultant (Dexter Wilson) has analyzed these facilities for the proposed project and has been deemed them adequate to support the proposed development. Additional connections to Olympic Parkway will be made to serve the hotel, park and residential uses with both potable and reclaimed water. The future PA12 SPA Amendment development will be required to comply with the City of Chula Vista Guidelines for water conservation. In addition to using recycled water where feasible for landscape irrigation, the proposed apartment units will implement additional water conservation measures such as hot water pipe insulation, pressure reducing valves, and water efficient dishwashers. Sewer The proposed onsite sewer system for the PA12 SPA area consists of gravity sewer lines that will convey flow to the Poggi Canyon Interceptor in Olympic Parkway. Based on the average flow, an 8" gravity sewer line is adequate to convey total project flow. The available capacity in the Poggi Canyon Interceptor was also evaluated under the proposed condition. Only the two reaches already identified for future replacement are shown to be over capacity. The proposed amendment does not require additional reaches of the Poggi Canyon Interceptor to be upgraded in the future. Upon approval of the proposed PA12 amendment, the Poggi Basin Gravity Sewer Development Impact Fee should be updated to reflect additional units. Schools School generation impacts will be mitigated through tax obligations and BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT JUSTIFICATION 10 2015 -05 -26 Agenda Packet Page 214 development fees at time of building permit issuance. Public Facilities Financing Plan To identify, summarize and implement the various facility costs associated with the Freeway Commercial project, a Public Facility Financing Plan (PFFP) was created in conjunction with the existing Freeway Commercial SPA Plan. The PFFP implements the City's Growth Management Program and meets General Plan/ Growth Management Element goals and objectives. The Chula Vista Growth Management Program implements the City's necessary public facilities and services exist or are provided concurrent with the demands of new development. Prior to approval of the SPA Plan Amendment, the Public Facilities Financing plan will be amended to ensure timely provision of necessary project services and utilities. PUBLIC BENEFIT CONSIDERATIONS The proposed project provides a number of public benefits to the immediate area, the Otay Ranch, and to the City of Chula Vista. These project benefits have been discussed in the `land use considerations' section of the general plan justification. ANNEXATION No annexation considerations are applicable to this application BALDWIN & SONS PA12 :FC2 :GP +GDP AMENDMENTS PROJECT JUSTIFICATION 11 2015 -05 -26 Agenda Packet Page 215 PA -12 FREEWAY COMMERCIAL NORTH (FC2) AMENDMENT Appendix A: General Plan Amendment 2015 -05 -26 Agenda Packet Page 216 Draft General Plan Amendment Otay Ranch, Planning Area 12 March 2015 Project Sponsor /Applicant: Baldwin & Sons 610West Ash Street, #1500 San Diego, CA 92101 (619) 234 -4050 Contact: Nick Lee Prepared By: William Hezmalhalch Architects, Inc. 2850 Redhill Ave., Suite 200 Santa Ana, CA 92705 -5543 (949) 250 -0607 Contact: Nicholle Wright, AICP 2015 -05 -26 Agenda Packet Page 217 Otay Ranch, Planning Area 12 Draft General Plan Amendment I. Introduction A. Purpose of the General Plan Amendment (GPA) Baldwin & Sons proposes to amend portions of the General Plan in order to establish consistency between the 2005 General Plan as amended in December 2014, and proposed in the 2015 General Development Plan Amendment for Planning Area 12 (PA -12). Adopted General Plan page numbers, exhibit numbers, and figure numbers pertain to the General Plan document adopted December 13, 2005 as amended December 2014. B. Purpose of the Project /Proposal This GPA application is one part of Baldwin & Sons intent to implement long -range development goals and strategies as they pertain to portions of PA -12. Baldwin & Sons has submitted an application for Otay Ranch General Development Plan Amendment (GDPA), and will submit applications for a Sectional Planning Area (SPA) Plan Amendment, Tentative Subdivision Maps (TM) and the associated environmental documentation. The purpose of this set of submittals is to establish compliance with the current General Plan. As part of this application, a revised definition of two Freeway Commercial land use designation is proposed to allow for a better mix of permitted commercial and residential land uses that promote walkability, reduce vehicle miles traveled (VMTs), and support transit. These plans are intended to fulfill the goals of smart - growth development, SB 375 and the reduction of greenhouse gas emissions and are generally consistent with current 2005 General Plan policies. This application updates selected text and tables to reflect updated U.S. Census Bureau population statistics and dwelling unit counts based on proposed PA12 amendment. Existing text and tables being amended by this application reflect the current City- adopted version and do not reflect other amendments proposed under separate applications. Population and dwelling unit revisions proposed by this application are a result of actual growth in the area and planned development under proposed amendments and do not reflect increases that can be attributed solely to PA12. March 2015 DRAFT Intro -1 2015 -05 -26 Agenda Packet Page 218 Otay Ranch, Planning Area 12 Draft General Plan Amendment II. List of Proposed Amendments This section provides a list of proposed amendments by page number in the General Plan. ■ Page LUT -47, General Plan Land Uses: a. Updated map to reflect PA -12 amendment ■ Page LUT -57, Projected Population: a. Update text to reflect projected population of "399,978" to "401,544" b. Update percent growth of "49%" to "80%" c. Update growth rate from "1.8 percent" to "2.7 percent" ■ Page LUT -57, Table 5 -5, Chula Vista Projected Population in 2030: Update table to reflect projected population of "207,690" to "209,256" for East (incorporated area) and projected population of "339.978" to "401,544" for Total ■ Page LUT -59, Table 5 -6, General Plan Land Use Distribution in 2030 by Planning Area: a. Update acreage for the category "East Chula Vista Subareas" for PA -12 Land Use changes: o Reduce Retail from "506" to "477" acres o Increase Mixed Use Residential from "590" to "617" acres o Increase Parks and Recreation from "604" to "606" acres ■ Page LUT -60, Table 5 -7, General Plan Land Use in 2030: a. Update 2030 to reflect proposed PA -12 Land Use changes: o Reduce Retail from "855" to "826" acres o Increase Mixed Use Residential from "912" to "939" acres o Increase Parks and Recreation from "976" to "978" acres b. Update 2030 dwellings to reflect these changes: • Increase Mixed Use Residential from "17,356" to "17,956" dwellings • Increase Total Dwelling Units "124,358" to "124,958" dwellings • Page LUT -269, Figure 5 -46: Otay Ranch Subarea - Eastern University District: Revise "Retail Commercial" call -out to "Retail Commercial and High Density Residential" • LUT -288, Section 10.5.8, Existing Conditions: revise text to reflect current conditions of the site. • LUT -289, Vision for Focus Area: Revise text to include High density /Mixed Use Residential uses. • LUT -285, Policy LUT 99.1: Revise text to include hotels uses. ■ LUT 289.1 Add new Objective LUT99a and supporting policies: Add new text to create a high - quality mixed -use transit supportive development. Add policies LUT 99a.1 through LUT99a.16. March 2015 DRAFT Intro -2 2015 -05 -26 Agenda Packet Page 219 Otay Ranch, Planning Area 12 Draft General Plan Amendment III. Adopted Versus Proposed This section provides a visual comparison of the proposed General Plan amendments as they would appear in the General Plan: • Text to be added to the body of the document and within tables is shown as underlined text. An example follows: The quick brown fox • Text to be deleted from the body of the document and within tables is shown as strikethrough text. An example follows: The quie- bFA ;A ;p f^" • Exhibits and Tables are shown as a side -by -side comparison between both the "Adopted" and "Proposed ". o The currently Adopted is outlined by a blue solid: o The Proposed revised exhibit is outlined by a red dashed: March 2015 DRAFT Intro -3 2015 -05 -26 Agenda Packet Page 220 Adopted LAND USE AND TRANSPORTATION ELEMENT CHAPTER 5 University Study Area The University Study Area is applied to four focus areas that are located on the site of the future university and surrounding properties in the East Area Plan, and includes the University Campus; University Village; the Regional Technology Park; and the Eastern Urban Center. The purpose of the University Study Area is to develop a coordinated strategy to address the important relationships between the Focus Areas and the need for coordinated development to enhance the economic and community success and vitality of the District This Study Area is further described in LUT Section 10.5.4 MEN 4.10 Projected Population and Projected Land Use 4.10.1 Projected Population At build -out in 2030, the overall Chula Vista Planning Area will accommodate a population of approximately 331,100, an increase of about 49% percent over the 2004 estimated population of 222,300. The Planning Area also includes lands outside the City's 2004 corporate boundary. This reflects an overall annual growth rate of about 1.8 percent over the next 26 years. The City's annual growth rate over the past 30 years was about 4.6 percent, not including the annexation of the inhabited Montgomery community in 1985, which included approximately 26,000 residents. Table 5.5, Chula Vista Projected Population in 2030, below, shows the current estimated and projected populations for Chula Vista by Planning Area. Additional historic population growth information can be found in Chapter 3, Section 3.1, Chula Vista in Perspective. TABLE 5 -5 CHULA VISTA PROJECTED POPULATION IN 2030 Planning Area Year 2004* Year 2030* * Ba front 0 4,860 Southwest 53,560 72,401 Northwest 56,930 89,090 East (incorporated area 98,710 207,690 East (unincorporated area)*** 13,100 25,937 TOTAL 222,300 399,978 Source: Year 2004 population estimate derived from State DOF Jan. 1, 2004 estimate for the City of Chula Vista and 2000 Census for unincorporated area. Year 2030 population estimate derived using year 2010 Census and State DOF factors Jan. 1, 2013 estimate for the City of Chula Vista. "East (unincorporated area)" includes the Sweetwater and East Otay Ranch Planning Subareas, with most of the growth occurring in the East Otay Ranch Planning Subarea. Page LUT -57 CNOF CHULA Vlfge 1 1 1 1 Planning Area ■Proposed Year 2030 ** Ba front ■! �� 4,860 1 53,560 1 Northwest LAND USE AND TRANSPORTATION ELEMENT 1 1 CHAPTER 5 1 1 13,100 1 1 University Study Area 1 1 1 The University Study Area is applied to four focus areas that are located on the site of the future 1 university and surrounding properties in the East Area Plan, and includes the University Campus; 1 1 University Village; the Regional Technology Park; and the Eastern Urban Center. The purpose of the University Study Area is to develop a coordinated strategy to address the important 1 1 relationships between the Focus Areas and the need for coordinated development to enhance the economic and community success and vitality of the District This Study Area is further described 1 1 in LUT Section 10.5.4 1 1 1 1 4.10 Projected Population and Projected Land Use 1 - - - 1 1 4.10.1 Projected Population 1 1 At build -out in 2030, the overall Chula Vista Planning Area will accommodate a population of 1 approximately 331,10,0401-544 an increase of about 4.980% percent over the 2004 estimated 1 population of 222,300. The Planning Area also includes lands outside the City's 2004 corporate 1 1 boundary. This reflects an overall annual growth rate of about +.92.7 percent over the next 26 1 years. The City's annual growth rate over the past 30 years was about 4.6 percent, not including 1 the annexation of the inhabited Montgomery community in 1985, which included approximately 1 26,000 residents. Table 5.5, Chula Vista Projected Population in 2030, below, shows the current 1 estimated and projected populations for Chula Vista by Planning Area. Additional historic 1 1 population growth information can be found in Chapter 3, Section 3.1, Chula Vista in Perspective. 1 1 TABLE 5 -5 1 1 CHULA VISTA PROJECTED POPULATION IN 2030 1 1 1 1 1 Planning Area Year 2004* Year 2030 ** Ba front 0 4,860 Southwest 53,560 72,401 Northwest 56,930 89,090 East (incorporated area) 98,710 209,256 East (unincorporated area)*** 13,100 25,937 TOTAL 222,300 401,544 1 1 � 1 1 Source: Year 2004 population estimate derived from State DOF Jan. 1, 2004 estimate for the City of Chula Vista and 2000 Census for unincorporated area. 1 ** Year 2030 population estimate derived using year 2010 Census and State DOF factors 1 Jan. 1, 2013 estimate for the City of Chula Vista. 1 * ** "East (unincorporated area)" includes the Sweetwater and East Otay Ranch Planning 1 Subareas, with most of the growth occurring in the East Otay Ranch Planning Subarea. 1 2015 -05 -26 A enda Packet Page LUT -57 �HULAV11 e12 =i■ = = = = = = = = = = = = = = = = = = = N Adopted LAND USE AND TRANSPORTATION ELEMENT CHAPTER 5 TABLE 5 -6 GENERAL PLAN LAND USE DISTRIBUTION IN 2030 (ACREAGES) Total General Plan Land Use General Bay- North- South- Designation Plan front west west Area East East Chula Vista Subareas Unincorp. Sweet- water Subarea Unincorp. Otay Ranch Subarea RESIDENTIAL Low 6,977 64 1,560 2,4531 2,900 Low Medium 8,021 1,354 1,401 4,748 307 211 Medium 1,610 187 288 1,031 32 72 Medium High 640 143 113 287 97 High 525 124 253 148 Urban Core 84 84 Bayfront High 14 14 COMMERCIAL Retail 855 115 202 506 32 Visitor 143 130 11 2 Professional & Admin. 157 18 61 7 59 12 MIXED USE Mixed Use Residential 912 174 98 590 50 Mixed Use Commercial 146 25 37 58 26 Mixed Use Transit Focus Area 122 83 39 INDUSTRIAL Limited Industrial 1,875 62 116 384 1,097 216 Regional Technology Park 85 85 General Industrial 175 175 PUBLIC, QUASI PUBLIC AND OPEN SPACE Public /Quasi- Public 2,901 55 225 321 1,880 381 39 Parks and Recreation 976 74 73 106 604 88 31 Open Space 7,314 100 215 617 3,587 1,101 1,694 Open Space Preserve 16,926 362 1 18 97 4,582 1,997 9,870 Open Space -Active Recreation 375 8 44 323 Water 2,672 1,498 9 1,165 SPECIAL PLANNING AREA Eastern Urban Center 266 266 Resort 230 230 Town Center 85 85 OTHER2 4,606 99 866 829 2,343 408 61 TOTAL ACRES 58,692 2,620 3,994 4,815 23,807 6,820 16,636 1 -The unincorporated portion of the Northwest Planning Area (87 acres of Residential Low) is included in the Unincorporated Sweetwater Subarea column only. 2- Streets, freeways, utility right -of -ways Agenda Packet Page LUT -59 Cny OF CHUTA V �� ■Proposed ■r 1 1 1 LAND USE AND TRANSPORTATION ELEMENT 1 1 CHAPTER 5 1 1 TABLE 5 -6 1 1 GENERAL PLAN LAND USE DISTRIBUTION IN 2030 (ACREAGES) 1 1 Total East 1 General Plan Land Use General Bay- North- South- East Chula Unincorp. Unincorp. 1 Designation Plan front west west Vista Sweet- Otay 1 1 Area Subareas water Subarea Ranch Subarea 1 1 RESIDENTIAL 1 Low 6,977 64 1,560 2,4531 2,900 1 Low Medium 8,021 1,354 1,401 4,748 307 211 1 1 Medium 1,610 187 288 1,031 32 72 Medium High 640 143 113 287 97 1 1 High 525 124 253 148 1 Urban Core 84 84 1 Bayfront High 14 14 1 1 COMMERCIAL 1 Retail 826 115 202 477 32 1 Visitor 143 130 11 2 1 1 Professional & Admin. 157 18 61 7 59 12 MIXED USE 1 1 Mixed Use Residential 939 174 98 617 50 1 Mixed Use Commercial 146 25 37 58 26 1 Mixed Use Transit Focus Area 122 83 39 1 1 INDUSTRIAL 1 Limited Industrial 1,875 62 116 384 1,097 216 1 Regional Technology Park 85 85 1 1 General Industrial 175 175 PUBLIC, QUASI PUBLIC 1 AND OPEN SPACE 1 Public /Quasi - Public 2,901 55 225 321 1,880 381 39 1 1 Parks and Recreation 978 74 73 106 606 88 31 1 Open Space 7,314 100 215 617 31587 1,101 1,694 1 Open Space Preserve 16,926 362 18 97 4,582 1,997 9,870 1 Open Space - Active Recreation 375 8 44 323 1 Water 2,672 1,498 9 1,165 1 1 SPECIAL PLANNING AREA 1 Eastern Urban Center 266 266 1 Resort 230 230 1 1 Town Center 85 85 1 OTHER? 4,606 99 866 829 2,343 408 61 1 TOTAL ACRES 58,692 2,620 3,994 1 4,815 1 23,807 6,820 16,636 , 1 1 -The unincorporated portion of the Northwest Planning Area (87 acres of Residential Low) is included in the Unincorporated Sweetwater Subarea column only. 2- Streets, freeways, utility right -of -ways 1 zo e a Pa e LUT -59 < c "Y ' 224 =ini'1i�i Chula Vista Vision 2020 Adopted LAND USE AND TRANSPORTATION ELEMENT TABLE 5 -7 GENERAL PLAN LAND USE IN 2030 CHAPTER 5 General Plan Land Use Designation 2030 Acres 2030 Dwelling Units RESIDENTIAL Low 6,977 8,232 Low Medium 8,021 41,337 Medium 1,610 16,230 Medium High 640 9,875 High 525 15,382 Urban Core 84 3,830 Bayfront High 14 1,500 COMMERCIAL Retail 855 Visitor 143 Professional & Admin. 157 MIXED USE Mixed Use Residential 912 17,356 Mixed Use Commercial 146 Mixed Use Transit Focus Area 122 3,782 INDUSTRIAL Limited Industrial 1,875 Regional Technology Park 85 General Industrial 175 PUBLIC, QUASI PUBLIC AND OPEN SPACE Public /Quasi - Public 2,901 Parks and Recreation 976 Open Space 7,314 Open Space Preserve 16,926 Open Space — Active Recreation 375 Water 2,672 SPECIAL PLANNING AREA Eastern Urban Center 266 4,905 Resort 230 Town Center 85 1,929 OTHER 4,606 TOTAL ACRES 58,692 124,358 * Streets, freeways, utilit 5 P - City of Chula Vista General Plan Page 225 M ■ ■ ■ ■ ■ ■■ ■ Proposed ■� ■ ■! 1 Chula 1 1 Vista LAND USE AND TRANSPORTATION ELEMENT � 1 Vision CHAPTER 5 F 1 2020 1 TABLE 5 -7 GENERAL PLAN LAND USE IN 2030 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 General Plan Land Use Designation 2030 Acres 2030 Dwelling Units RESIDENTIAL Low 6,977 8,232 Low Medium 8,021 41,337 Medium 1,610 16,230 Medium High 640 9,875 High 525 15,382 Urban Core 84 3,830 Bayfront High 14 1,500 COMMERCIAL Retail 826 Visitor 143 Professional & Admin. 157 MIXED USE Mixed Use Residential 939 17,956 Mixed Use Commercial 146 Mixed Use Transit Focus Area 122 3,782 INDUSTRIAL Limited Industrial 1,875 Regional Technology Park 85 General Industrial 175 PUBLIC, QUASI PUBLIC AND OPEN SPACE Public /Quasi- Public 2,901 Parks and Recreation 978 Open Space 7,314 Open Space Preserve 16,926 Open Space —Active Recreation 375 Water 2,672 SPECIAL PLANNING AREA Eastern Urban Center 266 4,905 Resort 230 Town Center 85 1,929 OTHER 4,606 TOTAL ACRES 58,692 124,958 1 * Streets, freeways, utility right of ways 1 10 1S- 0S- 26PALOW�WWT&to City of Chula Vista General Plan Page 226 81RCH Adopted East Planning Area Otay Ranch Subarea - Eastern University District % RETAIL COMMERCIAL N/ /r Figure 5 -46 Page LUT -273 CNOF 2015 -05 -26 Agenda Packet CHULA V%ge 227 East Planning Area Otay Ranch Subarea - Eastern University District 1 ■ ■ O' S ANA PNt ■ ■ ■ ■ ■ Figure 5 -46 1 ..�.; Page LUT -273 �,, -LA j Proposed ■ ■ ■ ■ ■ ■ ■iiii�gi rV , A, w"' Chula Vista Vision 2020 LUT 98.4 LAND USE AND TRANSPORTATION ELEMENT CHAPTER 5 The transit center location shall enhance the function and convenience of the Bus Rapid Transit (BRT) system for residents, workers, and visitors in the EUC. LUT 98.5 The requirements for park area, function, and design shall be provided for in an EUC Parks Master Plan prepared as part of any SPA Plan within the EUC. The EUC Parks Master Plan shall be guided by the needs and standards identified in the Strategic Framework Policies prepared for the University Study Area. LUT 98.6 The precise boundary between the EUC and the University Village will be determined by the design of the Town Center Arterial during the preparation of the Strategic Framework Policies-and subsequent SPA plans for the EUC and University Village. LUT 98.7 Off- street parking facilities within the Eastern Urban Center shall be located and designed to promote the urban character and pedestrian orientation intended for the EUC. Parking shall conform to the urban architecture and form; provide convenient pedestrian access to the areas it serves; and promote the efficient use of shared parking facilities. To help insure successful buildout of the EUC, regulatory measures and design standards shall allow for flexibility in the siting of off - street parking facilities to accommodate temporary, interim, or phased parking facilities. LUT 98.8 Promote the development of public or private parking structures that can be shared by multiple uses within the Eastern Urban Center. 10.5.8 Freeway Commercial Focus Area Description of Focus Area The Freeway Commercial Focus Area is composed of approximately 120 acres in the most northerly portion of the Eastern University District (see Figure 5 -47). It is bounded by State Route 125 on the west, Olympic Parkway on the north, and Eastlake Parkway on the east Existing Conditions The southerly 85 -acre portion of the area (Freeway Commercial South WC-1) is currently developed as a regional sh000ina mall. The northerlv 35 -acre portion (Freewav Commercial North WC-2)) is vacant and undeveloped. Planning and engineering for the development of t-H� the northerly area is currently underway, following the adoption of a SPA amendment application and approval of a tentative map and associated zoning permits authorizing construction of -a hotels, high density residential units, park, and retail commercial in a mixed -use format 2015- 05- 26rAjp.BA k488 City of Chula Vista General Plan Page 229 LAND USE AND TRANSPORTATION ELEMENT CHAPTER 5 Vision for Focus Area This Focus Area provides both local and regional - serving retail commercial and entertainment uses. These uses are an important component of the Eastern University District's role as the urban and cultural center for the East Planning Area, as well as serving the surrounding south San Diego County region. The area's immediate proximity to State Route 125 and other major streets provides for an automobile orientation, although it is also served by the regional bus rapid transit BR system. High Density /Mixed Use Residential uses in the northerly portion of this area promote walkability, reduce vehicle miles traveled (VMTs), and decrease traffic impacts through the pedestrian activation of Town Center Drive and close proximity between the hotels, park, retail commercial, residential uses, and the adjacent transit Objective - LUT 9 M Create a retail commercial center that supports the East Planning Area /Otay Ranch population by providing regional goods and services that are not accommodated in the residential Village Cores or Town Centers; functions integrally with the intense, pedestrian- oriented urban activity of the Eastern Urban Center (EUC) Focus Area; and accommodates the Bus Rapid Transit (BRT) system connecting it to other villages, the Eastern Urban Center (EUC), and the region. Policies LUT 99.1 Accommodate uses that provide regional retail commercial and entertainment services, including: department stores; multiplex theatres; specialty retail shops; hotels, and eating and drinking establishments, but not office use. LUT 99.2 Locate the BRT route and station stop within the Freeway Commercial Focus Area to facilitate an appropriate BRT alignment and transit center for the EUC. 2015 -05 -26 Agenda Packet Page LUT -289 �HUCLWAOF ge 2 3o L-�NChula Vista Qa> Vision 2020 LAND USE AND TRANSPORTATION ELEMENT Objective - LUT 99.a CHAPTER 5 Create a high- quality mixed -use, transit supportive development within Freeway Commercial North (FC -2) with hotels, commercial retail, park, and high - density residential uses through a cohesive, coordinated desian that intearates well with the Freewav Commercial South (FC -1) shopping center. Policies Uses LUT 99a.1 Multi - family density is intended at the lower ranae of the Mixed Use Residential category and is envisioned to provide both for -sale and rental products. The distribution of uses within the Mixed Use Residential is to be predominantly residential with ancillary retail commercial that is intended to primarily serve the nearby residences, and hotel and park patrons, as generally shown on the chart below: ❑ Residential ■ Retail Design LUT 99a.2 Locate ancillary retail commercial uses primarily along Town Center Drive, to ensure visibilitv and easv access. LUT 99a.3 Commercial uses may be provided in a vertical or horizontal mix format. LUT 99a.4 Ensure phasing of commercial uses is coordinated with residential phasing. 2015- 05- 26rA�89 1 City of Chula Vista General Plan Page 231 LAND USE AND TRANSPORTATION ELEMENT CHAPTER 5 Intensity /Height LUT 99a.5 The FC -2 site is envisioned as low to mid -rise generally ranging between 3 -5 stories in height c c ^c Desi gn LUT 99x.6 Provide attractive and appealing design treatment on all sides of the project site with landscaping, hardscape, architectural features and enhanced elevations, and amenities that are aesthetically coordinated with the surrounding land uses. LUT 99x.7 Any residential units adjacent to SR -125 must be setback from the highway centerline, consistent with policy E6.10. LUT 99x.8 The public park should be a highly- amenitized urban park that is accessible both visually and physically to the surrounding land uses and thoroughfares, and serves local residents, as well as hotel and shopping center patrons, and the public at large. LUT 99x.9 Provide prominent identification features via architecture, signage, and landscaping at the corner of Easlake Parkway and Olympic Parkway, Town Center entrance that reflects high -guali . development LUT 99a.10 Utilize streetscape and /or landscape design elements, including directional signage to provide a clear design tie to the Otay Ranch Town Center (FC -1) to promote a sense of cohesion. LUT 99x.11 The design of Town Center Drive should promote a pedestrian orientation while accommodating the necessary vehicular demands of the FC -2 area, and its function as the northerly entrance to the FC -1 Otay Ranch Town Center. LUT 99x.12 To promote a pedestrian- oriented and activated street environment buildings should generally front internal streets, roadways, and the BRT corridor, with parking lots located behind buildings. LUT 99x.13 Entrances to buildings should be inviting and easily identified. LUT 99x.14 Inviting pedestrian access should be provided between all buildings and uses along Town Center Drive and between the FC -1 and FC -2 site. 2015 -05 -26 Agenda Packet OF Page LUT -289.2 CHULA,fte232 Chula Vista Vision 2020 LAND USE AND TRANSPORTATION ELEMENT CHAPTER 5 LUT 99a.15 Provide for multi -modal ingress and egress between Freeway Commercial North K -2) and South K -1) areas. LUT 99x.16 Provide safe, comfortable and easily identifiable pedestrian crossing locations, routes and signage to the southerly Otay Ranch Town Center BRT station to promote use by hotel patrons and residents. 2015- 05 -26P. JWL-489.3 City of Chula Vista General Plan Page 233 PA -12 FREEWAY COMMERCIAL NORTH (FC2) AMENDMENT Appendix B: General Development Plan Amendment 2015 -05 -26 Agenda Packet Page 234 Draft General Development Plan Amendment (GDPA) Otay Ranch, Planning Area 12 March 2015 Project Sponsor /Applicant: Baldwin & Sons 610 West Ash Street, #1500 San Diego, CA 92101 (619) 234 -4050 Contact: Nick Lee Prepared By: William Hezmalhalch Architects, Inc. 2850 Redhill Ave., Suite 200 Santa Ana, CA 92705 -5543 (949) 250 -0607 Contact: Nicholle Wright, AICP 2015 -05 -26 Agenda Packet Page 235 I. Introduction The following document includes proposed amendments to the Otay Ranch General Development Plan (GDP) to ensure consistency between the proposed changes to the 2005 General Plan as amended in December 2014, and the PA -12 SPA. Baldwin & Sons has submitted an application for a General Plan Amendment (GPA), and will submit applications for a Sectional Planning Area (SPA) Plan Amendment, Tentative Subdivision Maps (TM) and the associated environmental documentation. The majority of proposed amendments to the GDP are updates to various land use definitions and descriptions as well as corresponding land use summary tables. It is important to note that at the time of this application, other proposed general development plan amendments may be under review. Since the City has not formally adopted these plans, the following revisions do not necessarily reflect these changes. The revisions proposed by this General Development Plan Amendment application are limited to those that are directly related to the PA -12. II. List of GDP Amendments The following table, Table 1.1 - General Development Plan Amendments for PA -12, includes a list of the proposed General Development Plan Amendments associated with the PA -12. Each amendment is identified by page number and section and is described under the "issues" column. Each amendment also includes a corresponding discussion of the resolution between staff and the applicant as well as justification for the proposed change. General Development Plan Amendment, Planning Area 12, March 2015 2015 -05 -26 Agenda Packet Page 236 O Ul N va c. w ro co Table 1.1- 2015 General Development Plan Amendments for Planning Area 12 PAGE NO. SECTION ISSUE RESOLUTION JUSTIFICATION Notes Part II Chapter 1 FC, Freeway Revise the Freeway Commercial land use definition to Section C Commercial describe two planning areas and to include hotels and high Page II -12 density residential uses with ancillary commercial Part II- Chapter Exhibit 18a: Update statistics; Table provided Section C Overall Project by City Page II -15 Summary Table Part II- Chapter Exhibit 18b Otay Update Exhibit Exhibit provided Section C Ranch GDP /SRP by City Page II -17 Land Use Plan Part II- Chapter 1 First Paragraph Update total number of dwelling units and residents in Section C Page19 Otay Valley Parcel Part II- Chapter 1 Exhibit 19 Update statistics Table provided Section C by City Pages II -21 Allows for the development of Part II- Chapter 1 Exhibit 20 Otay Update Exhibit Exhibit provided Section C Valley Parcel Land high density residential units and by City Pages II -23 Use Map a hotel that promotes walkability, reduces VMTs, and Part II- Chapter 1 Exhibit 25 Otay Update Exhibit Need exhibit Section C Page II- Ranch Village supports transit from City 35 Types & Rural Estate Areas Part II- Chapter 1 c. Eastern Urban Update population Section C Page II- Center Revised description of Freeway Commercial to include the 38 two planning areas and to include hotels and high density residential uses with some commercial uses. Part II- Chapter 1 Exhibit 26 Update Exhibit Need exhibit Section C Page II- Commercial, from City 39 Industrial & Business Sites Part II- Chapter 1 b. Freeway Revise description of the Freeway Commercial to describe Section D Page II Commercial two planning areas and to include a regional shopping -65 opportunities and hotels and high density residential in a mixed -use urban character setting that includes ancillary commercial use and an urban park. ro w oc N General Development Plan Amendment, Planning Area 12, March 2015 III w O Ul N a va a. w ro x Table 1.1- 2015 General Development Plan Amendments for Planning Area 12 PAGE NO. SECTION ISSUE RESOLUTION JUSTIFICATION Notes Part II- Chapter 1 b. Freeway Add new or revised policies: Section D page II- Commercial o In Freeway Commercial South (FC -1), the ... 65 & 66 Policies o In Freeway Commercial North (FC -2), the freeway commercial land use category permits hotels and high density residential in an urban character mixed -use setting, allowing for primarily 3- to 6 -story mid -rise buildings (heights will be established at the SPA level). o The mass of the buildings shall be balanced with usable active and passive open space areas including an urban park adjacent to commercial mixed -uses. o Provide pedestrian- oriented features, such as tree -lined landscape parkways or hardscape with tree - wells, to buffer pedestrian sidewalks located next to roadways, transit routes and parking areas. o Setbacks, which promote a pedestrian- oriented Allows for the development of environment and prevent a strip development high density residential units and appearance, should be established at the SPA level. a hotel that promotes o Landscaping shall create a well -kept and attractive reduces VMTs, and commercial and residential environment... o Prepare a signage program for freeway upporility, supports transit s commercial uses concurrent with the first SPA containing freeway commercial uses. Developed separately, the north and south freeway commercial areas (FC -1 and FC -2 on Exhibit 62) will provide separate signage programs that ensures clear design ties between FC -1 and FC -2 to promote a sense of cohesion.. Part II- Chapter 1 Exhibit 60 Update Table Provided by City Section F, Part 12 Planning Area 12 Page II -135 Part II- Chapter 1 d Freeway Add description of Freeway Commercial Section F, Part 12 Commercial Planning Area 12 Description Page II -139 w va N General Development Plan Amendment, Planning Area 12, March 2015 iv w co O Ul N va a w ro x co Table 1.1- 2015 General Development Plan Amendments for Planning Area 12 PAGE NO. SECTION ISSUE RESOLUTION JUSTIFICATION Notes Part II- Chapter 1 Freeway Describe the planning areas and add entirely new policies Section F, Part 12 Commercial for: Planning Area 12 Policies o Freeway Commercial South (FC -1) Page II- 140 -142 o Freeway Commercial North (FC -2) o Freeway Commercial North (FC -2) Character o Freeway Commercial North (FC -2) Urban Design o Freeway Commercial North (FC -2) Parks and Open Allows for the development of Space high density residential units and o Other Freeway Commercial Policies a hotel that promotes walkability, and reduces VMTs, Part II- Chapter 1 Exhibit 62 Update Exhibit Provided by City Section F, Part 12 supports transit Planning Area 12 Page II -143 Part II- Chapter 4 Exhibit 94 Update Exhibit Provided by City Section F Riding and Hiking Trails Page -224 w va N General Development Plan Amendment, Planning Area 12, March 2015 w III. Proposed GDP Amendments The following section provides the actual existing and proposed text and graphics for the proposed General Plan Amendment. Text amendments are indicated using a strikethrough and underline format as indicated below: Proposed Text Deletion T"^ ^ u 0 r-- Ic "r^ ^ fex Proposed Text Addition The quick brown fox Graphic Amendments have been shown as "Adopted" versus "Proposed" with each exhibit labeled accordingly. General Development Plan Amendment, Planning Area 12, March 2015 2015 -05 -26 Agenda Packet Page 240 General Development Plan Amendment, Planning Area 12, March 2015 2015 -05 -26 Agenda Packet Page 241 Ranch GDP /SRP 0 Part II EUC Eastern Urban This designation indicates a regional center comprised of local and Center regional shopping opportunities and office and employment uses configured up to 15 stories. Visitor Commercial such as transit lodging, hotel, motels, commercial recreation and other retail are allowed. High density residential, including high rise residential is also an essential part of the EUC. FC Freeway This eateg w designation includes two planning areas: Commercial (1) the southern portion (Freeway Commercial South, or FC -1) includes regional land uses which require an automobile orientation near regional transportation systems. Expected uses include thoroughfare commercial, visitor commercial, and regionally oriented retail commercial and (2) the northern portion (Freeway Commercial North, or FC -2) land uses are envisioned to include hotels and high density residential with ancillary commercial in a mixed -use urban character setting that includes an urban park. RTP Regional This designation applies the Regional Technology Park (RTP) land Technology Park use designation that is intended to be a large, master - planned business park that integrates research and development activities with high tech manufacturing along with the administrative and office space associate with such a facility as well as other light Industrial uses. It accommodates new research institutions, industries and businesses able to capitalize upon the research activities of the adjacent University Campus and University Village. The RTP accommodates a limited amount of supporting retail, service, professional office and finance businesses and is able to provide services and amenities that provide a high quality work environment. I Industrial This category includes light manufacturing, warehousing, flexible use buildings and public utilities. Very limited amounts of restaurant and office oriented commercial are also permitted. Village Three and Planning Area 18 are identified in the Otay Ranch to contain Industrial land uses P /QP Public/ This includes public uses such as sewerage treatment plants, utility Quasi Public yards, corporate yards, etc. CP /P Community This overlay designation indicates the approximate location of Park/ Park Community Parks (CP) and Neighborhood Parks (P). These facilities to be fixed in location at the SPA level. Adopted October 28, 1993 Last Amended February 26, 2013 Amended March 2015 Page II -12 2015 -05 -26 Agenda Packet Page 242 Ranch GDP /SRP 0 Part II Overall Project Summary Parcel Dwelling Units Acreage Approx. Pop. SF Units MIT Units Total Units Res. Ac. Park Ac. CPF Ac. Sch Ac. Cut]. Ac. Ind. Ac. Uni. Ac. Open Sp. Art Ac. Total Ac. Otay Valley Parcel 11,255 23,356 34,611 3,249.3 259.5 105.2 230.5 212.9 423.2 279.3 3,973.1 716.3 9,449 99,234 Proctor Valley Parcel 2,631 1,558 4,189 1,885.4 12.5 17.1 10.0 252.0 - - 5,656.7 61.3 7,895 12,391 San Ysidro Mountains Parcel 779 - 779 1,499.8 3.4 2.3 10.0 3.3 - - 4,036.2 - 5,555 2,494 Total: 14,665 24,914 39,579 6,634.4 275.4 124.6 250.5 468.2 423.2 2793 13,666.0 777.6 22,899 114,119 Exhibit 18a Overall Project Summary Table(Proposed)) Adopted October 28, 1993 2015 -05 -26 AgW&DA vended February 26, 2013 Amended March 2015 Page II -15 Page 243 This Page Intentionally Left Blank Adopted October 28, 1993 2015 -05 -26 ngW&DA waded February 26, 2013 Amended March 2015 Ranch GDP /SRP 0 Part II Page II -16 Page 244 Ranch GDP /SRP 0 Part II I n OF IHUTA wsfA 'WG May Ranch — W GDP /SRP� �r \\ Land Use Plan Legend / / Resmential �, aamn a:vaama n�) Spam I Plano, n4 Areal Cammeroal � nruocn - Mwtl ms MN liqusltrial RuaNi W IInNhV aviabiel F0W Open Spar Other �_.:e. • :.. 1 � :. � ear WpwwclR) Lower L I- l.�aSp4vdm(4TS1 m � ,4 � Reazervalr pµn Are � Iaa,watr..x.EWe� �•.,� 7i ce . �� Wakyy4i b11x 1 * Portion of University Alternative DRaFr w� .. . Ap"DotV1110Uriu ty Site also has a.""N For Review Only lark — Ge99naeon of rewd ndd as Jev:AbM in dart n, Ch ter ), SFMOne Pe aM P1 o. - Exhibit 18b Otay Ranch GDP /SRP Land Use Plan (Proposed) Adopted October 28, 1993 Page II -17 20 5 -o5 -z6 AgW&eAnwnded February 26, 2013 Amended March 2015 Page 245 This Page Intentionally Left Blank Adopted October 28, 1993 2015 -05 -26 ngW&DA waded February 26, 2013 Amended March 2015 Ranch GDP /SRP 0 Part II Page II -18 Page 246 Ranch GDP /SRP 0 Part II a. Otay Valley Parcel The Otay Valley Parcel is the most urban of the three Otay Ranch parcels. The land use plan provides continuity to adjacent developed areas, while creating a unique character. At build -out, this parcel will provide a maximum3 of "6�T34, 111 dwelling units, accommodating approximately_' ^ ^99.234 residents. The major components of the land use plan for the Otay Valley Parcel include: o Nine urban villages, with village cores which include mixed use areas, neighborhood parks, and elementary schools. o A circulation system which includes a planned highway (SR -125), Transit routes, and a system of regional arterials. o A pedestrian trail system that features a network of trails for walking, bicycles, equestrian travel and potential use of low - speed /neighborhood vehicles utilizing facilities such as neighborhood paseos, the `village pathway ", pedestrian bridges and regional trails providing linkages to the Otay Ranch Village Greenway and the Chula Vista Greenbelt. • Highest intensity uses along SR -125, including the EUC, more intense urban villages, and freeway commercial areas. • Industrial uses on the western edge adjacent to existing business park uses and the Otay Landfill, and at the southern edge adjacent to planned industrial uses on the Otay Mesa. • A university site located in Planning Area 10 on the eastern portion of the parcel, adjacent to Village Nine. • The Eastern Urban Center with regional services and activities, and the highest residential intensities. • The Otay Valley Regional Park (a portion of the overall regional park currently being planned for the entire length of the Otay River Valley). • The Otay Valley Parcel land use table below shows the distribution of land use categories. The maximum DU number reflects all residential development on the Otay Valley Parcel, However, Village Three has a primary land use designation of Industrial, a portion of Village Nine is University, and Plannig Area Ten has a primary land use designations of University. Adopted october 28, 1993 Page II -19 2015-5- sM�$ii n�ecftebruary 26, 2013 Amended March 2015 Page 247 Ranch GDP /SRP 0 Part II This Page Intentionally Left Blank Adopted october 28, 1993 Page II -20 2015 -5i'M � i n�ecekebruary 26, 2013 Amended March 2015 Page 248 Ranch GDP /SRP 0 Part II Otay Valley Parcel Village Dwelling Units Acreage Approx. Pop. SF Units MF Units Total Units Res. Ac. Park Ac. CPF Ac. Sch Ac. C'ml. Ac. Ind. Ac. Uni. Ac. Open Sp. Art. Ac. Total Ac. Village 1 2,454 1,522 3,976 7012 211 13.4 10.0 63 - - 264.8 465 1,0673 11,734 Village 2 604 3,941 4,545 346.0 24.0 12.6 19.8 82.5 - 2263 63.5 774.7 14,726 Village 1,002 595 1,597 147.5 79 4.2 8.3 11.3 ++ 39.9 129.5 19.8 368.4 4,873 Village 4 453 - 453 118.0 62.8 2.1 - - - 309.9 35.0 527.8 1,495 Village 5 1,263 1,550 2,813 370.7 16.6 11.3 10.0 2.0 - - 70.4 1 15.4 496.4 7,995 Village 6 941 1,497 2,438 282.0 76 13.7 10.0 * ** - - 22.0 58.3 393.6 6,830 Village 7 1,008 448 1,456 234.3 93 6.3 60.0 7.2 38.8 17.1 373.0 4,369 Village 1,564 4,046 5,610 356.0 35.2 10.0 42.4 * ++ 52.7 40.0 536.3 15,646 Village 9 Res 266 3,734 4,000 177.4 27.5 5.0 19.8 * - 41.3 6.8 26.1 303.9 10,519 Portion of University/Village9 (Alternative) * * 68 ** 93 ** 161 ** 23.2 ** 0.9 ** 0.6 ** 0.9 ** 0.8 ** - - 12.4 ** 2.5 ** 41.3 ** 454 ** University/RTP - - - - - - - - 85.0 238.0 - - 323.0 - Village 10 695 1,045 1,740 113.1 76 4.3 9.2 - - 16.5 - 150.7 5,010 Portion of University (Alternative)**** 291 * * ** 213 * * ** 504 * * ** 71.7 * * ** 10.4 * * ** 2.1 * * ** 8.3 * * ** 2.2 * * ** - - 26.1 * * ** 7.8 * * ** 128.6 * * ** 1,475 * * ** Village 11 1,005 1,385 2,390 306.7 10.0 9.4 35.0 10.0 - - 51.4 66.5 489.0 6,749 Ping. Area 12 - 3,593 3,593 94.4 27.9 12.9 6.0 161.1 - 2.8 71.0 376.1 9,288 Ping. Area 18 - - - - - - - - 215.8 - - - 215.8 - Ping. Area 20 15.0 188.0 6.0 2090 . OpenSpace+ - - - - - - - - - - 2,573.6 - 2,573.6 - SR -125 - - - - - - - - - - - 182.0 182.0 - Public 19.6 - 19.6 Arterial Total: 11,255 23,356 1 34,611 312493 2595 1052 2325 - 212.9 1 4232 2793 - 3,973_] 69.1 1 716.3 69.1 9,449 99,234 ++ Commercial developmentmay occur vertically or horizontally within Village 2 (up to 130,000 square feet), Village 3 (20,000 square feet), Village 8 East (20,000 square feet), Freeway Commercial FC2 (from 15,000 to 30,000 square feet); therefore, actual acreage within each land use will be determined at final map. * 1,800,000 square feet of commercial may occur vertically or horizontally within Village 8 West and Village 9, therefore, actual acreage within each land use will be determined at final map. ** Portion of University /Village 9 has a primary land use designation of University and a secondary land use of residential. The secondary land use is not included in the total. * ** Commercial included as component of residential acreage. * * ** Portion of University has a primary land use designation of University and a secondary land use of residential. The secondary land use is not included in the total. + Open Space includes open space preserve, mdevelopable land, streets, and right -of -way. Exhibit 19 Otay Valley Parcel Land Use Table (Proposed) Adopted October 28, 1993 Page II -21 Last Amended February 26,2013 Amended March 2015 2015 -05 -26 Agenda Packet Page 249 Ranch GDP /SRP 0 Part II This Page Intentionally Left Blank Adopted October 28, 1993 Page II -22 Last Amended February 26,2013 Amended March 2015 2015 -05 -26 Agenda Packet Page 250 Ranch GDP /SRP 0 Part II Exhibit 20 Otay Valley Parcel Land Use Map Adopted October 28, 1993 Page II -23 Last Amended February 26,2013 Amended March 2015 2015 -05 -26 Agenda Packet Page 251 Ranch GDP /SRP 0 Part II This Page Intentionally Left Blank Adopted October 28, 1993 Page II -24 Last Amended February 26,2013 Amended March 2015 2015 -05 -26 Agenda Packet Page 252 Otay Ranch Village Types, Rural Estate and Planning Areas Industrial Planning Urban Villages - Areas - Villages 2W a 3 Otay Valley r Parcel I ","a j jw 6 Mixed Use Planning Area 20 r Only Exhibit 25 Otay Ranch Village Types & Rural Estate Areas FL� Rural Estate Planning Areas - 16 & 17 Specialized Villages - Villages 13, 14 & 15 r ��. Primary use for a portion of Villages Nine & Planning Area Ten is University/RTP. Industrial Secondary use is urban Planning village Area 18 `t�rr a Otay Ranch GOP / SRP Land Rs'Plan Legend -,-- vaemia� w, ww u��ISb.:r Ml rurrygllFaetiN ��Fneb►.w -wN9 A n.mc..ePi sperm rwx:gl�tiear oammercw R,pW oyansc.w ww � rou.•w.n,..nm S note_ Pa tim of Planning Area 10fUniversity Ate""' •+ p •[4'ra.unl.+l:eM>Vlrstr + ka *x.a wwMiy rrle weayr.m:ln :.yQemr a76[rlbee In vat q p.ye3 S. SRepa F4 atl Frp. �� Adopted October 28, 1993 Page 11 -35 2015- n$- S� 1HIlAKYIePebruary 26, 2013 Amended March 2015 Page 253 This Page Intentionally Left Blank Adopted October 28, 1993 Page 11 -36 z0" -f5 O � NFMAMIePebruary 26, 2013 Amended March 2015 Page 254 Ranch GDP /SRP 0 Part II A potential university site is designated on the GDP /SRP land use map west of the lake along Wueste Road. C. Eastern Urban Center A projected Otay Ranch population of approximately 88�T114,119 creates a need for a centralized urban area to provide the regional goods and services which cannot be provided in village cores. Certain goods and services are not available in village cores because of the problems caused by permitting regional traffic into the villages. The 400 -acre Eastern Urban Center and Freeway Commercial area are located east of SR -125, on a rise overlooking the Otay Valley Parcel. This area will provide an intense, vital activity center to include an employment base with office, retail, business park, and visitor- serving commercial uses; cultural, entertainment, civic, recreation activity and residential uses. The bus rapid- transit (BIM system connects the EUC to the region and some of the villages of the Otay Ranch. d. Industrial /Business Park /Freeway Commercial The Otay Ranch Land Use Plan designates industrial /business park and freeway commercial uses primarily along the SR -125 corridor. Policies relating to these uses are discussed in Section D, Land Use Design, Character, and Policies. Industrial /commercial uses are located in the following areas: o There are two areas for industrial uses: 1) located south of the Otay Valley, adjacent to industrial areas of Otay Mesa and one west of Heritage Road at the extreme western edge of the parcel near existing industrial development 2) Included within Village 3 and within the western portion of Village Two. These light industrial uses total approximately 559.8acres. o Commercial /Office: located in the EUC. These uses include the regional retail commercial, hotel, and office uses. o A business park is located within the EUC. o Freeway commercial uses are located north of the EUC and east of SR -125. The freeway commercial area includes two planning areas with et mix4twe of uses two types of uses: (1) Freeway Commercial South (FC -1) includes a regional shopping center and other commercial uses dependent on direct highway exposure and access, and (2) Freeway Commercial North (FC -2) is envisioned to include hotels and high density residential in a mixed -use setting with some commercial uses. TheseThis areas totals approximately 191120 acres. Adopted October 28, 1993 Page II -38 2015 -05 -2 J'ast da P � qed February 26, 2015, Amended March 2015 Page 255 Otay Ranch Regional Commercial, Office and Industrial Areas VILLAGE I YIL E5 MA Planning Area 12 - Freeway Commercial PL"NING AXER IS DRAFT For Review Only Exhibit 26 Commercial, Industrial & Business Sites i Ranch GDP /SRP 0 Part II ��S►r �a HULA VISTA _ Qtay Ranch GP / SRP sRS Land Use Plan Planning Area 12 Legend Eastern Urban Center - Rewdenllw Wrf Ltr LY�eM�tlX M.1 Regional Office and ivn We•wO�f 4wew full Commercial li_ ++Ampe+ar A.aYxw IX1 Ze% Y $papal plercilnQ Brea( l,'pmine+pal Reservoir � � Xoec L..Iwrl - uvem them firor[�1 i" ` 11Wn�q M avr•.+�.a+mo.s[arrl � In7u5Vi9�� a u.,+w w.er Ponlw Open spacer borer - gWlf� brw�xmrt. an,�[nA Ope�ryz• I`Ye�111ulnul � s?.ew eevw.w wr. rsocl Villages 9 & LO Altemative* a.r rnw. cam se.w r„w,,. % � Wow khnd Mane ae . •9 ,��] ••••• DYS1 Ct�tld Porbion of Planning Area 10 /University Alternabve M • pardon d the Vni, Y uce a5o 110s a MWdM WId use 4ftWQMn of rexLnt a dcwlbed In Part 11, Chapter 1, ser.m F9 and F10. Adopted October 28, 1993 Page II -39 20,MRAM cY 4fruary 26, 2013 Amended March 2015 Page 256 PA +7 ' rRfiEN04v �{MEACM�L • Y14LAGE � �F 'JILLAGE 6 Y�ST tlt{" r� n YILUGE Pf.AHN11M All YILLAGEI LRA'VER°..il'/ Y.E5T L r'- URIYE wLLAGE ! WE vnucEe ; a +f: Ed 5T NLLAGEa =_ r Yelky R0 - v Isc a Industrial Areas - Village 2W, 3 &;; PA 18 PANNING ARM 113 V PL"NING AXER IS DRAFT For Review Only Exhibit 26 Commercial, Industrial & Business Sites i Ranch GDP /SRP 0 Part II ��S►r �a HULA VISTA _ Qtay Ranch GP / SRP sRS Land Use Plan Planning Area 12 Legend Eastern Urban Center - Rewdenllw Wrf Ltr LY�eM�tlX M.1 Regional Office and ivn We•wO�f 4wew full Commercial li_ ++Ampe+ar A.aYxw IX1 Ze% Y $papal plercilnQ Brea( l,'pmine+pal Reservoir � � Xoec L..Iwrl - uvem them firor[�1 i" ` 11Wn�q M avr•.+�.a+mo.s[arrl � In7u5Vi9�� a u.,+w w.er Ponlw Open spacer borer - gWlf� brw�xmrt. an,�[nA Ope�ryz• I`Ye�111ulnul � s?.ew eevw.w wr. rsocl Villages 9 & LO Altemative* a.r rnw. cam se.w r„w,,. % � Wow khnd Mane ae . •9 ,��] ••••• DYS1 Ct�tld Porbion of Planning Area 10 /University Alternabve M • pardon d the Vni, Y uce a5o 110s a MWdM WId use 4ftWQMn of rexLnt a dcwlbed In Part 11, Chapter 1, ser.m F9 and F10. Adopted October 28, 1993 Page II -39 20,MRAM cY 4fruary 26, 2013 Amended March 2015 Page 256 Ranch GDP /SRP 0 Part II This Page Intentionally Left Blank Adopted October 28, 1993 Page II -40 20,MRAMhWcf 4fruary 26, 2013 Amended March 2015 Page 257 Ranch GDP /SRP 0 Part 11 • Design criteria shall consider transit availability in industrial areas. • Light and noise impacts to adjacent open space areas should be minimized. 3. Commercial /Office /Business Park a. Regional Commercial /Office The Eastern Urban Center (EUC) contains the most intense development in Otay Ranch and is the urban heart of the region (Planning Area 12) . Uses and intensities are intended to create a lively, 24 -hour environment, with a creative medley of uses, building types and amenities. These uses include the regional retail commercial, hotel and office uses. Retail and office development within the Eastern Urban Center is of an intensity compatible with a "downtown" urban center. The most intense development is concentrated near the trolley station(s), with building heights and sizes gradually decreasing toward the edge of the planning area. (See Part II, Chapter 1, Section F. 12.; Eastern Urban Center [Planning Area 121 for applicable policies.) b. Freeway Commercial Adjacent to the EUC is approximately 196.5120 acres of freeway commercial (Planning Area 12). The Freeway Commercial contains two planning areas. Freeway Commercial South WC-1 on Exhibit 621 afea provides for a mixture of uses suitable for, and dependent on, direct highway exposure, including large -scale uses which require sites primarily served by vehicular access. such as: automobile centers; discount stores; warehouse outlets; membership clubs; and other large scale uses that require freeway exposure. Public uses such as park- and -ride and transit related services are also permitted. Typical uses permitted in the Freeway Commercial South category WC-1) include regional shopping opportunities, such as a mall with restaurants and entertainment uses. Freeway Commercial North WC-2 on Exhibit 62) is envisioned to provide hotels and high density residential in a mixed -use urban character setting that includes ancillary commercial uses and an urban park. Freeway Commercial Policies o The actual amount and location of freeway commercial uses shall be established at the SPA level. o In Freeway Commercial South (FC -1). The the freeway commercial land use category permits freeway- oriented, low scale buildings of three stories or less (heights will be established at the SPA level). The mass of the buildings shall Adopted October 28, 1993 Page 11 -65 2015- o5 -26 &0 Mded February 26, 2013 Amended March 2015 Page 258 Ranch GDP /SRP 0 Part 11 be balanced with landscaped setbacks and landscaping within parking areas. o In Freeway Commercial North WC-2). the freeway commercial land use category permits hotels and high density residential in an urban character mixed -use setting, allowing for primarily 3- to 6 -story mid -rise buildings (heights will be established at the SPA level). o The mass of the buildings shall be balanced with usable active and passive open space areas including an urban park adjacent to commercial mixed -uses. o Provide pedestrian - oriented features, such as tree -lined landscape parkways or hardscape with tree- wells, to buffer pedestrian sidewalks located next to roadways, transit routes and parking areas. o Setbacks, which promote a pedestrian- oriented environment and prevent a "strip development" appearance, should be established at the SPA level. o Landscaping shall create a well -kept and attractive commercial and residential environment. Large parking areas shall be landscaped to minimize heat gain and break up expanses of asphalt. o Prepare a signage program for freeway commercial uses concurrent with the first SPA containing freeway commercial uses. Developed separately, the north and south freeway commercial areas (FC -1 and FC -2 on Exhibit 62) will provide separate signage programs that ensures clear design ties between FC -1 and FC -2 to promote a sense of cohesion. C. Business Park Business park uses are generally of a "research and development" character. The uses are arranged with various amenities presenting a feeling of a quality corporate setting. Business park uses are permitted within the EUC land use category, located in the EUC (Planning Area 12). Business Park Policies ❑ Exact floor area ratios for business park uses shall be established at the SPA level. o Business park uses shall be low to mid -rise (two to three stories maximum). o These facilities shall be linked by pedestrian and transit systems to other parts of the EUC, as well as to the potential university. o Landscape and amenities such as open space, water features, plazas, and walkways shall be an important part of the business park. Adopted October 28, 1993 Page 11 -66 2015- o5 -26 &0 Mded February 26, 2013 Amended March 2015 Page 259 Planning Area 12 (EUC & FQ Use Dwelling Units Acreage***** Approx. Pop. SF MF Total Dens Res. Park* CPF ** Sch. * ** C'ml. * * ** Open Sp. Art. Total EUC 2,993 2,993 41.2 72.6 23.2 10.7 6.0 33.5 146.0 7,722 Regional Commercial 26.6 26.6 Visitor Commercial 9.9 9.9 Cultural 4.5 4.5 OIT-Low Rise/Bus. 17.2 17.2 e tg ise 10.4 10.4 Other + 1.5 1.5 UCSubtotal 2,993 2,993 41.2 72.6 23.2 10.7 6.0 68.6 1.5 33.5 1 216.1 1 7,722 FC1 86.2 37.5 123.7 FC2 600 600 27.5 21.8 4.7 2.2 6.3" 1.3 36.3 1,566 CSubtotal 600 600 27.5 21.8 4.7 2.2 92.5 1.3 37.5 160.0 TOTAL 3,593.0 3,593.0 38.1 94.4 27.9 12.9 6.0 161.1 2.8 71.0 376.1 9,288 *Part of park acreage requirement have been allocated to community parks. Actual park size to be determined at the SPA level; Park acreage based on ratio of 3.0 acres per 1000 ersons. * *CPF acreage based on ratio of 1.39 -acres per 1000 persons. Square- footage equivalent may be considered at SPA Plan level. ** *School acres will divert to residential if not needed for school. * ** *May include mixed -use and multi -use. * * ** *The maximum permitted non - residential areas may alternatively be measured in square -feet up to the maximum projected yield of 3,487,000 square feet for EUC; 960,000 square feet for FCl; 12,000 square feet for JPB portion within EUC; excludes FC2 area. Fire Station 1+ 6.3 acres hotel and an additional 15,000 to 30,000 square feet of commercial component of Mixed Use Residential. Exhibit 60 Planning Area 12 (EUC & FC) Land Use Tables (Proposed) The mix of uses shown in Exhibit 63 are representative of the expectations and intended character for the Eastern Urban Center. The final land use mix and distribution of uses shall be determined at the SPA planning level. Variation from the uses identified in Exhibit 63 may be approved subject to the following findings: 1. The intended character and purpose of the Eastern Urban Center is maintained; 2. The distribution of uses is compatible with the adopted uses in adjacent villages; and 3. The viability of the Eastern Urban Center is maintained or enhanced. Adopted October 28, 1993 2015- 05- 261A # &MAruauded February 26, 2013 Amended March 2015 Page 11- 135 Page 260 Other Eastern Urban Center Policies o Transit line rights -of -way and bus rapid transit stops /stations shall be approximately located at the SPA level and will be conditioned for dedication at the Tentative Map level within the EUC. d. Freeway Commercial Description The Freeway Commercial consists of two planning areas that provide regional serving commercial uses, hotels, and high density residential with ancillary commercial uses in a mixed -use setting. Freeway Commercial South (FC -1 on Exhibit 62) contains a regional serving commercial shopping center including restaurants and entertainment uses. The shopping center is composed of buildings of varying scale and orientation. Quality architecture is provided throughout the planning area in order to create a pronounced identity for the regional shopping center. o Freeway Commercial South (FC -1) contains: o A regional shopping center, including regional serving commercial uses, restaurants and entertainment uses. Freeway Commercial North (FC -2 on Exhibit 62) is envisioned to contain two hotels and high density residential in an urban character mixed -use setting with some ancillary commercial uses. Quality architecture will be provided for the hotels and high density mixed -use residential buildings, with a central urban park provided at the core of the planning area. Internal and external circulation systems shall be provided including a strong pedestrian- orientation, and enhanced pedestrian connectivity to the regional shopping center and internal connections between the high density residential and mixed -use areas, the hotels and the urban park. Pedestrian sidewalks with landscaped parkways will also be provided along the Bus Rapid Transit (BRT) right -of -way adjacent to the two nearby BRT stations. Freeway Commercial North (FC -2) is envisioned to contain high density residential within a mixed -use environment, hotels, ancillary retail commercial and an urban nark. e. Freeway Commercial Policies: Freeway Commercial South (FC -11 Policies: o This eategel=y� planning area includes regional uses which require an automobile orientation near regional transportation systems. Expected uses include thoroughfare commercial, visitor commercial and regionally oriented retail commercial o The ffeeway afiented eammefeia4 This planning area shall include uses such as: department stores, regional mall /lifestyle center, eating and drinking establishments, movie theaters, fitness clubs, and other uses which benefit Adopted October 28, 1993 2015- 05- 26AA # &MAruauded February 26, 2013 Amended March 2015 Page II - 139 Page 261 from direct freeway exposure, -serve a regional market, and strengthen its relationship and linkages to the EUC and University Campus and University Village to the south. o Develop a signage and graphic program at the SPA level. o Reserve a park- and -ride at the transit stop along the west side of Eastlake Parkway. Freeway Commercial North (FC -21 Policies: o Provide two hotels containing a total of 300 or more rooms. o This planning area is envisioned to include up to 600 -units of high density residential in the mixed -use land use designation category with a density range of 20 to 30 units per acre. o Provide an urban park including amenities that will be a public attraction in addition to serving the surrounding high density residential o A minimum of 15,000 square feet of commercial uses shall be provided in a mixed -use land use designation. Freeway Commercial North (FC -2) Character Policies: o Provide appropriate landscape parkways with trees to separate and buffer pedestrian sidewalks from residential uses adjacent to vehicular roadways and transit right -of -ways. o Provide safe and accessible pedestrian connections to the existing and anticipated routes to the planned Bus Rapid Transit (BRTI stations. Provide features to buffer pedestrians from the BRT travel lanes where pedestrian walkways are located along the travel lanes. o Provide appropriate setbacks from the transit right -of- -way to the residential units located on the north side of BRT lanes. o In order to provide for a well- integrated mixed -use urban environment on both sides of Town Center Drive, and along other key pedestrian routes across vehicular circulation, pedestrian- oriented features such as speed tables, bulb -outs, and reduced travel lanes may be provided. o Complete the connection of the tree -lined pedestrian sidewalk and landscaped parkway coming from the regional shopping center to the high density residential mixed -use areas. o Hotels and high density residential buildings may include commercial uses supporting a 24 -hour environment. Freewav Commercial North (FC -2) Urban Design Policies: o Orient hotels and high density residential mixed -use buildings in a manner that defines the primary pedestrian areas, creates a strong pedestrian connection between buildings, and provides for a continuous pedestrian experience. Adopted October 28, 1993 2015- 05- 26AA # &MAruauded February 26, 2013 Amended March 2015 Page II - 140 Page 262 o Emphasize an urban street scene by locating buildings adjacent to sidewalks and pedestrian- oriented spaces such as patios, plazas, malls and squares. o Mixed -Use buildings facing Town Center Drive and primary pedestrian urban spaces should contain commercial uses that support pedestrian activities such as dining, retail and entertainment, and cultural experiences. o To create vitality and excitement, retail business and community activities should flow out from mixed -use buildings into well designed public space such as patios, plazas, malls and squares. o Enhanced pavement with landscaping should be provided in all usable urban spaces that allow for sidewalk cafes, street vendors, sidewalk entertainment and other inviting pedestrian features. o Hotels and mixed -use buildings shall incorporate design features which complement a pedestrian scale, such as horizontal components, overhangs, facade detail, display areas, and pedestrian seating. o Hotels and mixed -use buildings shall exhibit an urban character through the use of quality building materials, textures, and scale. o Hotels and mixed -use buildings shall display urban design features characteristic of quality architectural design. o Establish an urban identity through the use of streetscape features and amenities, such as bollards, street furnishings, and enhanced pavement between vehicular driveways. o Prominently locate urban parks and plazas between the hotels and mixed -use buildings. o Provide complementary commercial uses within the mixed -use environment that can easily be integrated with the adjacent hotels and the regional shopping center. o Town Center Drive should provide on- street parking as part of incorporating complete street techniques to reduce vehicular conflicts. o Off - street parking should be primarily provided behind buildings or within parking podiums or parking structures in order to maintain pedestrian- orientation and preserve the character of the mixed -use environment. Garages fronting on internal streets shall be allowed on residential units. Freeway Commercial North (FC -2) Parks and Open Space Policies: Application of the 3 acres per 1,000 residents standard would result in a requirement for approximately 4.70 -acres of parks considering the development of 600 residential units. Freeway Adopted October 28, 1993 2015- 05- 26AA # &MAruauded February 26, 2013 Amended March 2015 Page II - 141 Page 263 Commercial North shall Provide sufficient Parkland. Park enhancements, and /or in -lieu fees to meet this obligation. o A centrally located urban Park with amenities shall be Provided at a highly visible location to encourage and attract Public use. The Park shall be accessible to all residents. Other Freeway Commercial Policies: o Provide appropriate sound attenuation for all required residential open space areas that are exposed to a noise level of 65 CNEL or greater. o Provide appropriate sound attenuation for all public open space areas such as parks that are exposed to a noise level of 65 CNEL or greater. Adopted October 28, 1993 2015- 05- 26AA # &MAPmntided February 26, 2013 Amended March 2015 Page II - 142 Page 264 Exhibit 61 Planning Area 12 EUC Land Use Map Adopted October 28, 1993 2015- 05- 26A#&tdjm&jcIed February 26, 2013 Amended March 2015 Page II - 143 Page 265 -PA 12 s FREEWAY —- COMMFpr' Transit Route 75 -foot AVerpge Buffer Along Birch Rd Arterials t w r. r PA 12 ;� . ■'■ �Np EASTERN Buffer/Allow for URBAN Visual Access to EUC and Free way CENTER ■ Commercial Cndal � P ; FS ' MS/HS Reserve Right -of- +` Way for Transit ' _ - �� ■ ' pedesdian Bridge I 75 -foot Average Width within Village �c�II, A NOWH r CH LA V i57A LJLA Planning Area 12 Eastern Urban Center Adopted October 28,1993; Amended June 4,1996; Amended November 10, 1998; Amended October 23,2001; Amended December 13, 2005; Amended May 23, 2006. Exhibit 61 Planning Area 12 EUC Land Use Map Adopted October 28, 1993 2015- 05- 26A#&tdjm&jcIed February 26, 2013 Amended March 2015 Page II - 143 Page 265 Exhibit 62 Planning Area 12 Freeway Commercial Land Use Map (Proposed) Adopted October 28, 1993 Page 11- 144 2015- 05- 26A#&MAvuauded February 26, 2013 Amended March 2015 Page 266 Buffer Edge 0, y�plc PA- ~ * 0 Reserve Right -af- r r r way for Transit ■ ,. ■ 0 * Provide for Multi- Model Parkand Ride Facility Transit Route PA 12 N FREEWAY COMMERCIAL Buffer /Allow for �~ Visual Access to Birch Rd ' Freeway commercial from SR -125 75 -foot Average ' r Buffer Along . • Arterials • =' uRBP,, A NORTH CHUL4 OF Planning Area 12 Freeway Commercial Exhibit 62 Planning Area 12 Freeway Commercial Land Use Map (Proposed) Adopted October 28, 1993 Page 11- 144 2015- 05- 26A#&MAvuauded February 26, 2013 Amended March 2015 Page 266 Ranch GDP /SRP o Part 11 CITY oF CHUL A VISTA pa __ Otay Ranch GDP / SRP VILLAGES Land Use Plan Legend VILLAGE 1 Residential -- iau UensM R�aarma (L) ES ned um oensry aeslderma (LM) P '• -• VILLAGE it Ma (sh ES PA 12 ...•E•Pa1 a FREEWAY '. P M no COMMERCIAL ES l' ed yIold nta (MM) VILLAGE 1 o�me VILLAGE s - M -sneer (M) WEST FS HIS e bRa EA Special Planning ommerca STER Fw1.— (1c) UAN ! . Reservoir ........ ENTER l Cn - al(MUE) yOFS ` d Use (MU) _ VILLAGE] RS !w1 ES L i Town cenrer(tt) VI—ET ••,� UNIVERSITY EasRrn Urban-ol(EM) WEST - Um—w. ES rff r 5 RTP J ! 90 � �a0• � : ' {f 11e nal TeTrwJO9Y Park (mP) High sah.1 ES I • FreSG,ean Ind Uatral VILLAGE4 F • � = F— Researha-ildlmunna _ — V c VILLAGE B V VILLAGE a T VILLAGES ESti PLANNING AREA 18 Public/ Open Space/ Other A E EAST % VILLAGE 10 I I v vubk apuaa Wd "c (ap) TC w�e _I 1 VILLAGE v - * �/ Portion of Alternative DRAFT For Review Only _I_ -I Sen4GVe Resource shay A—(srz7 E5 _ •• �ES� J s J Open slece p` 1 • Olay Valley Rd R Ra�#aaecreanon - - • O nr r VILLAGE3 f - �• f - -R n .•:••: • . + JX-J' ePreserve .. -'• � Hw. R J / I' /// Tetl 4veromvR Aiw nan A PuNN NG} J /s S SR 1259 Piad) �..•i` n AREA 20r � � � • eementery SCbw �.�-•-.-- � ( \ \ �� • • M'MeSCFao Exhibit 94 Otay Valley Parcel Park and Trail Map (Proposed) Adopted October 28, 1993 Page 11 -232 2h945 &c1Pf )uraiy 26, 2013 Amended March 2015 Page 267 2U AREA... • FreSG,ean • � = � �. Rtlulrun Brldae �� k PLANNING AREA 18 Ta s PLANNING '•, w�e _I AREA 18'. * �/ Portion of Alternative DRAFT For Review Only _I_ — - • - .... n ® A portion of the University t also h secondary land use designation of— dental as described s J Part ]I, Chapter 1, Sections F9 and F10. Exhibit 94 Otay Valley Parcel Park and Trail Map (Proposed) Adopted October 28, 1993 Page 11 -232 2h945 &c1Pf )uraiy 26, 2013 Amended March 2015 Page 267 PA -12 FREEWAY COMMERCIAL NORTH (FC2) AMENDMENT Appendix C: Fiscal Impact Analysis 2015 -05 -26 Agenda Packet Page 268 Fiscal Impact Analysis of the Freeway Commercial SPA FC2 Amendment Prepared for: The City of Chula Vista March 17, 2015 Prepared by: HR&A Advisors, Inc. 700 South Flower Street, Suite 2730 Los Angeles, CA 90017 Analyze. Advise. Act. 2015 -05 -26 Agenda Packet Page 269 Executive Summary The City of Chula Vista ( "City ") retained HR&A Advisors ( "HR&A ") to evaluate the fiscal impacts of a proposed amendment to the Freeway Commercial Sectional Planning Area ( "SPA ") to the City of Chula Vista's General Fund. The Freeway Commercial SPA includes approximately 1,215,000 square feet of commercial uses, 867,000 square feet on the FC1 site and 347,000 square feet on the FC2 site. The Otay Ranch Town Center Mall was constructed and is operating on the bulk of the FC1 site, but the FC2 site remains vacant. The proposed amendment will allow for the addition of 600 residential units and a 2 -acre park on the designated FC2 site. The proposed amendment also includes two hotels with a total of 300 rooms on the FC2 site. Purpose of the Study A fiscal impact analysis of the proposed Freeway Commercial SPA FC2 Amendment is required as part of the supplemental Public Facilities Financing Plan (PFFP). The Supplemental PFFP ensures that the future development of the Freeway Commercial SPA is consistent with the overall goals and policies of the City's General Plan, Growth Management Program and that the development of the project will not adversely impact the City's Quality of Life Standards. The following analysis evaluates the net fiscal impact of the Freeway Commercial SPA FC2 Amendment ( "FC2 Amendment ") across a 10 -year period, including build out, and reviews the annual net fiscal impact of the approved Freeway Commercial SPA ( "Approved FC SPA ") across a similar 10 -year period as a point of comparison. For the purposes of this analysis, net fiscal impacts refer to the fiscal revenues of the SPA less the fiscal costs generated by the SPA. A positive net fiscal impact means that the SPA's fiscal revenues cover the costs generated by the SPA. The FC2 Amendment's net fiscal impact above or below the Approved FC SPA net fiscal impact is the opportunity cost or benefit generated as a result of the amendment. As part of this study, we also include a sensitivity analysis to understand the performance of the Approved FC SPA relative to the FC2 Amendment if specific land uses, particularly the hotels, are not fully built out. The sensitivity analysis reviews the net fiscal performance of the FC2 Amendment in the scenario that only one hotel is built out or a lower number of rooms are developed and also provides an understanding of net fiscal performance at different price levels. Results Including sales tax receipts based on onsite sales' generated from the Otay Ranch Town Center, the Freeway Commercial SPA has a current (Year 0) positive annual impact of $1.00 million that is expected to grow based on the proposed development. ' This sales tax receipt approach is an adjustment from the standard SPA Framework. The SPA Framework evaluates sales tax receipts based on spending of residents within a SPA. The approach was adjusted in this study because the standard approach would not provide an understanding of the impact of the proposed commercial changes in the FC2 Amendment. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 2 2015 -05 -26 Agenda Packet Page 270 Using the City of Chula Vista's SPA Fiscal Impact Analysis Framework, the FC2 Amendment is expected to generate an annual positive net fiscal impact of approximately $2.54 million in Year 10. The FC2 Amendment is expected to generate total fiscal revenues of approximately $4.80 million in Year 10. Sales tax receipts and transient occupancy tax (hotel tax) receipts are the greatest sources of fiscal revenue. Sales and use tax receipts represent 55 percent of fiscal revenues while transient occupancy tax represent 25 percent of fiscal revenues. The FC2 Amendment is expected to generate annual fiscal expenditures of $2.26 million in Year 10. Public safety costs make up the majority of anticipated fiscal expenditures. The Approved FC SPA is projected to generate annual net fiscal revenues of $2.00 million in Year 10. The Approved FC SPA, which is projected to consist solely of retail commercial uses, will generate annual fiscal revenues of $4.11 million in Year 10. Sales and use tax receipts represent approximately 85 percent of total fiscal revenues for the Approved FC SPA. Annual fiscal expenditures generated by the Approved FC SPA are estimated at $2.11 million annually. Conclusions Both the FC2 Amendment and Approved FC SPA are projected to generate positive net fiscal revenues to the City of Chula Vista throughout the study period. However, starting in Year 2, the FC2 Amendment will generate more fiscal revenues than the Approved FC SPA. In Year 10, the FC2 Amendment is expected to generate approximately $540,000 more than the Approved FC SPA. Transient occupancy taxes are a key factor in the greater fiscal performance of the FC2 Amendment and further analysis was completed to understand the sensitivity of the overall land use program to variation in the number of hotel rooms developed and the hotel room rate. The sensitivity analysis revealed that, at an average room rate of $140 per night, 175 hotel rooms is the point of neutrality between the FC2 Amendment and Approved FC SPA, i.e. the number of developed rooms in which the net fiscal revenues both scenarios generate are approximately equal. If less than 175 rooms are built the Approved FC SPA will outperform the FC2 Amendment. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 3 2015 -05 -26 Agenda Packet Page 271 Figure 1: FC2 Amendment (2015$) Source: HR &A HR &A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 4 2015 -05 -26 Agenda Packet Page 272 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2075 Dollar Inflation Factor 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 Total Expenditures $1,181,099 $1,181,099 $1,366,202 $1,631,904 $1,968,914 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 Total Revenues $2,196,150 $2,371,333 $3,070,167 $3,609,828 $3,902,236 $4,547,213 $4,830,694 $4,780,735 $4,785,342 $4,790,806 $4,797,091 Net Fiscal Impacts (2015 Dollars) $1,015,051 $1,190,234 $1,703,965 $1,977,925 $1,933,322 $2,287,966 $2,571,447 $2,521,488 $2,526,095 $2,531,559 $2,537,844 Source: HR &A Figure 2: Approved FC SPA (2015 $) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year Year Year Year Year Year Year Year7 Year Year Year 10 2074 Dollar Inflation Factor 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 Total Expenditures $1,181,099 $1,181,099 $1,320,051 $1,540,639 $1,848,072 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 Total Revenues $2,196,150 $2,371,333 $2,632,296 $3,056,538 $3,607,785 $4,085,358 $4,120,423 $4,100,065 $4,102,961 $4,106,321 $4,110,135 Net Fiscal Impacts (2015 Dollars) $1,015,051 $1,190,234 $1,312,245 $1,515,899 $1,759,713 $1,976,749 $2,011,815 $1,991,456 $1,994,352 $1,997,713 $2,001,526 Source: HR &A HR &A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 4 2015 -05 -26 Agenda Packet Page 272 Table of Contents ExecutiveSummary ............................................................................................................................... ..............................2 Introduction............................................................................................................................................. ..............................6 Project..................................................................................................................................................... ..............................7 LandUse Program ........................................................................................................................... ..............................7 Populationand Employment .......................................................................................................... ..............................7 Employment....................................................................................................................................... ..............................7 ProjectedAbsorption Schedule ..................................................................................................... ..............................9 DevelopmentProgram Absorption ............................................................................................... ..............................9 ExistingDevelopment (FC1 Site) ............................................................................................... ..............................9 RetailAbsorption ......................................................................................................................... ..............................9 ResidentialAbsorption ............................................................................................................ ............................... 10 HotelAbsorption ...................................................................................................................... ............................... 10 Absorptionof Other Uses ...................................................................................................... ............................... 10 Methodology..................................................................................................................................... ............................... 13 Budgetand Revenue Factors ..................................................................................................... ............................... 13 Service Standard Adjustment (Real Inflation Adjustment) ............................................... ............................... 13 RetailExpenditure Density Factor ........................................................................................ ............................... 13 2015 Dollar Adjustment ......................................................................................................... ............................... 14 RevenueMethodology ................................................................................................................ ............................... 14 ExpenditureMethodology .......................................................................................................... ............................... 18 FiscalImpacts ..................................................................................................................................... ............................... 20 ApprovedFC SPA .......................................................................................................................... .............................22 NetFiscal Impact Conclusions ...................................................................................................... .............................24 SensitivityAnalysis ......................................................................................................................... .............................26 Appendices........................................................................................................................................ ............................... 28 HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 5 2015 -05 -26 Agenda Packet Page 273 Introduction Baldwin and Sons (the "Developer ") is currently preparing an amendment to the previously approved Otay Ranch Planning Area 12 Freeway Commercial SPA to add 600 residential units, 300 hotel rooms, and a 2 -acre park to the FC2 site. The Freeway Commercial SPA was approved in 2004 and includes approximately 1,215,000 square feet of commercial uses, 867,000 square feet on the FC1 site and 347,000 square feet on the FC2 site. Otay Ranch Town Center Mall was constructed and is operating on the FC1 site, but the FC2 site remains vacant. Figure 3: Freeway Commercial SPA FC1 and FC2 Site Map Source: Google Maps and HR &A Advisors HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 6 2015 -05 -26 Agenda Packet Page 274 Project The Developer has proposed a mixed -use plan for the FC2 site that includes residential, hotel, and commercial uses. The proposed project amends existing commercial entitlements on the approximately 35 acre FC2 site to implement 600 multi - family dwelling units and a 2 -acre park. The residential development is planned as high quality multi - family rental apartments and for -sale multi - family townhomes, with the possibility of multi - family detached units2. Commercial development is planned to include 15,000 square feet of mixed -use retail uses and two hotels, with a total of 300 rooms. The proposed project is projected to fill its Community Purpose Facility (CPF) obligations using excess CPF from developments in the Village 2 SPA. Park requirements will be met onsite through an equivalency program and maintenance will be satisfied through a Community Facilities District. Land Use Program Figure 4 presents the land use program for the Approved FC SPA at build out and the FC2 Amendment at build out. Population and Employment Estimated population for the project site under the FC2 Amendment are based on an estimated 2.61 persons per household for multi - family residences. The Approved FC SPA does not have any residential units and thus no projected population. Employment Retail employment is estimated at an industry average of approximately one employee per 450 square feet of occupied building space. Hotel employees for comparable limited- service upper to midscale hotels are approximately 0.8 to 1 employee per room. 2 For the purposes of this analysis, all for -sale multi - family products are assumed to be townhouses. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 7 2015 -05 -26 Agenda Packet Page 275 Figure 4: Land Use Program Hotels (Rooms) Approved SPA Freeway Commercial Amendment Land Use 0.0 2.0 (2 Ac. onsite) Single Family Residential Units 0 0 Multi - Family Residential Units 0 600 (26.70 Ac.) MF Attached - For Sale Townhomes 0 290 MF Attached - Rental Apartments 0 310 Retail Commercial Square Feet (SF)' 1,214,000 (120.7 Ac) 882,000 (86.20 Ac.) Hotels (Rooms) 0 300 (6.30 Ac.) Parks 0.0 2.0 (2 Ac. onsite) CPF 0.00 School 0.0 0.0 Subtotal Developed Acres 120.7 121.2 Open Space 0 0 Preserve 0 0 Other Acres /ROW 0 0 Total Acres 120.7 121.2 Population _ Multi Family Persons/DU di 2.61 0 1,566 Total Est. Population 0 1,566 Employment Retail SF/Emp 450 2,698 1,960 Hotel Employees per Room 0.90 0 270 Total Est. Employment 2,698 2,230 Mixed Use retail acreage is included with residential Source: Baldwin and Sons, City of Chula Vista and HR &A Advisors HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 8 2015 -05 -26 Agenda Packet Page 276 Projected Absorption Schedule The absorption schedules shown in Figure 6 and Figure 7 were developed based on input from the Otay Ranch Town Shopping Center, the FC2 site Developer, and a review of the historical absorption of single - family and multi - family units in the City of Chula Vista across the last 10 years. Development Program Absorption Existing Development (FC1 Site) The Otay Ranch Town Shopping Center reports that they currently have 655,000 square feet of building area on the FC1 site. An estimated 26,000 square feet of open air common area exists in addition to the building area. For purposes of this analysis, existing retail square feet on the FC1 site is estimated at 680,000 square feet and 187,000 square feet of retail is estimated for future development on the FC1 site. Retail Absorption The retail absorption was estimated based on a brief benchmark of future retail demand. The table below calculates total City of Chula Vista retail gross leasable area on a per dwelling unit basis and applies this estimate to the projected dwelling unit development from the latest City of Chula Vista Growth Management Plan, to estimate a benchmark of demand3 for new retail. On average, there is benchmark demand for 155,000 square feet of gross leasable area. This includes all types of retail. Assuming the Freeway Commercial SPA is able to capture approximately 50 percent of the benchmarked demand, we estimate that the remaining balance of the FC1 parcel retail, 187,000 square feet, will be built out at approximately 80,000 square feet a year. The proposed 15,000 square feet of retail on the FC2 site is expected to be absorbed in line with the development of the rental multi - family in Year 4. Figure 5: Benchmark Retail Demand Shopping Center Retail per Household Calculation Chula Vista Shopping Center Retoil(4Q201 4)' 7,264,655 City of Chula Vista Households (20 14)2 82,026 Shopping Center SF Per HH 88.57 Benchmark Retail Demand Estimate 2014 2015 2016 2017 2018 Eastern Chula Vista Forecast Dwelling Units3 1,450 1,692 1,902 1,868 1,845 Benchmark Retail Demand @ 88.57 128,420 149,852 168,451 165,440 163,403 Costar 2 C Dept. of Finance 3City of Chula Vista 2013 Growth Management Plan Source: HR &A Advisors 3 Based on a market review, not a detailed market analysis. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 9 2015 -05 -26 Agenda Packet Page 277 Residential Absorption The FC2 site Developer anticipates development of the rental apartments and for -sale units starting at the end of 2016 with absorption starting in 2017. The historical absorption of residential units in Chula Vista is shown in the Appendix Table A -2. Between 2008 and 2014, an average of approximately 400 multi - family units were added in Chula Vista. For the FIA, we assume absorption starting in mid -2017 and use 250 units as the max annual multi - family residential absorption in 2018 and 2019. Hotel Absorption There are a limited number of quality hotels in the Otay Ranch and Chula Vista areas. Actual hotel absorption will be linked with the ability to attract an interested hotel chain /developer. The Developer anticipates the first hotel will open in 2016. The Developer anticipates the second hotel will be opened three years after the first. The FIA includes the first hotel in 2016 and the second hotel in 2019. It should be noted that we assume a buildup period in occupancy when estimating transient occupancy tax. Absorption of Other Uses Park uses are projected to develop in line with residential uses. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 10 2015 -05 -26 Agenda Packet Page 278 Figure 6: FC2 Amendment Projected Absorption 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Land Use Program Land Use Multi - Family Residential Units (Includes Multi -Use Residential) 0 0 0 120 370 600 600 600 600 600 600 MF Attached Townhomes 0 0 0 90 190 290 290 290 290 290 290 MF Attached Apartments (Mixed Use) 0 0 0 30 180 310 310 310 310 310 310 Retail Commercial SF 680,000 680,000 760,000 840,000 882,000 882,000 882,000 882,000 882,000 882,000 882,000 Freeway Commercial - Parcel 1 680,000 680,000 760,000 840,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 Mixed Use Commercial - Parcel 2 0 0 0 0 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Retail Commercial Acres 67.6 67.6 75.6 83.5 86.2 86.2 86.2 86.2 86.2 86.2 86.2 Hotel Rooms 0 0 148 148 148 300 300 300 300 300 300 Hotel Acres 0 0 3 3 3 6 6 6 6 6 6 Parks 0.0 0.0 0.0 0.4 1.2 2.0 2.0 2.0 2.0 2.0 2.0 CPF 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 School 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Acres 67.6 67.6 78.7 92.4 107.0 121.2 121.2 121.2 121.2 121.2 121.2 Cumulative Population Multi Family Persons /DU@ 2.6 0.0 0.0 0.0 313 966 1,566 1,566 1,566 1,566 1,566 1,566 Total Est. Population 0.0 0.0 0.0 313 966 1,566 1,566 1,566 1,566 1,566 1,566 Employment Retail SF /Emp@ 450 1,511 1,511 1,689 1,867 1960 1,960 1,960 1,960 1,960 1,960 1,960 Hotel Employees per Room 0.9 0 0 133 133 133 270 270 270 270 270 270 Total Est. Employment 1,511 1,511 1,822 2,000 2093 2,230 2,230 2,230 2,230 2,230 2,230 Source: Baldwin and Sons, HR &A HR &A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA I 11 2015 -05 -26 Agenda Packet Page 279 Figure 7: Approved FC SPA Projection Absorption Source: Baldwin and Sons, HR &A HR &A Advisors, Inc. 2015 -05 -26 Agenda Packet Chula Vista SPA FC2 Amendment FIA 1 12 Page 280 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Land Use Program Land Use Multi - Family Residential Units (Includes Multi -Use Residential) 0 0 0 0 0 0 0 0 0 0 0 MF Attached Townhomes 0 0 0 0 0 0 0 0 0 0 0 MF Attached Apartments 0 0 0 0 0 0 0 0 0 0 0 Retail Commercial SF 680,000 680,000 760,000 887,000 1,064,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 Freeway Commercial - Parcel 1 680,000 680,000 760,000 840,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 Freeway Commercial - Parcel 2 0 0 0 47,000 197,000 347,000 347,000 347,000 347,000 347,000 347,000 Retail Commercial Acres 67.6 67.6 75.6 88.2 105.8 120.7 120.7 120.7 120.7 120.7 120.7 Hotel Rooms 0 0 0 0 0 0 0 0 0 0 0 Hotel Acres 0 0 0 0 0 0 0 0 0 0 0 Parks 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CPF 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 School 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Acres 67.6 67.6 75.6 88.2 105.8 120.7 120.7 120.7 120.7 120.7 120.7 Cumulative Population Multi Family Persons /DU p@ 2.6 0.0 0.0 0.0 0 0 0 0 0 0 0 0 Total Est. Population 0.0 0.0 0.0 0 0 0 0 0 0 0 0 Employment Retail SF /Emp p@ 450 1,511 1,511 1,689 1,971 2364 2,698 2,698 2,698 2,698 2,698 2,698 Hotel Employees per Room 0.9 0 0 0 0 0 0 0 0 0 0 0 Total Est. Employment 1,511 1,511 1,689 1,971 2,364 2,698 2,698 2,698 2,698 2,698 2,698 Source: Baldwin and Sons, HR &A HR &A Advisors, Inc. 2015 -05 -26 Agenda Packet Chula Vista SPA FC2 Amendment FIA 1 12 Page 280 Methodology The FC2 Amendment fiscal impact analysis was prepared in accordance with the City's previously developed SPA Fiscal Impact Analysis (FIA) Framework. As prescribed in the SPA Fiscal Impact Framework, HR&A used revenue and expenditure factors from the SPA Fiscal Impact Framework to estimate fiscal revenues and expenditures expected to grow proportionally with new development. Special analysis models were used to estimate revenues, such as property tax revenues, transient occupancy tax, vehicle license fee (VLF) revenues, and sales taxes that may not grow proportionately with new development. The detailed methodology of the SPA Fiscal Impact Framework is described in the memorandum "SPA Fiscal Analysis — Fiscal Model Methodology Including the Development of Fiscal Factors in the Analysis of SPA Proposals ", dated February 2008. The following methodology section highlights key inputs and updates made to the methodology for the FC2 Amendment FIA. Budget and Revenue Factors The budget revenue and expenditure factors provided by the City are based on the FY 2009 City of Chula Vista budget. Adjustments have been made to these budget factors to provide a more accurate accounting of future impacts, including: (1) an expenditure and revenue adjustment to account for appropriate service standards, (2) a retail expenditure density adjustment, and (3) a 2015 dollar adjustment. In addition, as described in the methodology section, the calculation of onsite retail sales differs from the calculation in the SPA Fiscal Impact Framework. Service Standard Adjustment (Real Inflation Adjustment) Due to the 2007 recession, the City of Chula Vista implemented several rounds of budget reduction between FY 2007 and FY 2009, cutting the City's service standard below the desired level. The expenditure and revenue adjustment factors use a 5 -year average of inflation adjusted per capita revenue and expenditures to determine an appropriate level of future expenditures and revenues. Retail Expenditure Density Factor Retail expenditure factors were developed based on historical citywide acres and account for a historical citywide floor -to -area (FAR) ratios. Based on the citywide FAR, a factor is determined that translates the retail expenditure budget acre factor into a square foot factor. Figure 8: Retail Expenditure Factor Density Adjustment Land Use Citywide Density Village Per SF Density Factor Retail 0.28 FAR 0.00008 Source: City of Chula Vista, SPA Fiscal Framework HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 13 2015 -05 -26 Agenda Packet Page 281 2015 Dollar Adjustment Finally, given that the FIA is based on FY 2009 budget, the inflation adjustment adjusts final total revenues and expenditures from 2009 dollars to 2015 dollars. It should be noted that the 2015 dollar amount is approximated using the mid -year 2014 San Diego Consumer Price Index. Revenue Methodology Special Models Special models were used to estimate fiscal impacts for property taxes, property transfer taxes, MVLF in- lieu fees, transient occupancy tax and sales tax. Special models were built based on the SPA Fiscal Framework with updated tax rates, as appropriate, and assessed value and household income inputs. Assessed Values and Property Taxes The incremental assessed value attributable to the Project is used to estimate property taxes, property transfer taxes, and MVLF in -lieu fees. The actual assessed building and improvement value for the FC1 site are used as the existing Year 0 value for the FC1 site. The current assessed value of the FC2 land reported by the County Assessor's Office and an estimate of the land value on the unimproved FC1 site are used as the base land value for undeveloped land. HR&A reviewed current market residential and commercial data and the assessed value of comparable projects to determine appropriate assessed values for new FC2 development. The capitalized value approach was used to estimate the market value of the retail properties and hotel properties as shown in Appendix Table A -5 and B -4. Retail Assessed Value The average 2014 41" quarter rental rate for shopping center retail in the greater Eastlake retail submarket was approximately $2.10 per gross leasable square foot according to Costar. This average includes a variety of retail types. HR&A reviewed historic and current retail property rents to estimate the rents for the mixed use retail product that is planned for the FC2 Amendment. Mixed use retail tends to achieve more conservative rents relative to community center and neighborhood center retail. The mixed use commercial proposed in the FC2 Amendment is most likely to be similar to mixed use retail such as Heritage Town Center at 1 392 E. Palomar Street. For the mixed -use retail in the FC2 Amendment, HR&A uses an average retail lease rent of $1.85, and a conservative capitalization rate (cap rate) based on cap rates reported by the RERC Real Estate Report. The capitalized value approach, as shown in Appendix Table A -5, provided an assessed value of approximately $240.00 per square foot of building square foot for retail uses. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 14 2015 -05 -26 Agenda Packet Page 282 Figure 9: 302013 East Chula Vista Retail Properties For Lease Windingwalk 2315 Otay Lakes Rd Neighborhood Center Rentable 2004 82.9 Average Heritage Town Center 1392 E Palomar St Mixed Use Retail Building 2003 Percent Monthly Building Name Building Address Property Type Area Year Built Leased Weighted Rent 2110 Birch Rd Community Center 8,686 2008 26.87 $2.25 1741 Eastlake Pky Community Center 10,387 2008 62.74 $2.25 The Marketplace at 1745 Eastlake Pky Community Center 106,000 2008 96.12 $2.25 Windingwalk 2315 Otay Lakes Rd Neighborhood Center 8,400 2004 82.9 $3.50 Heritage Town Center 1392 E Palomar St Mixed Use Retail 38,000 2003 93.61 $1.95 2318 Proctor Valley Rd Neighborhood Center 12,109 2007 69.5 $2.00 2322 Proctor Valley Rd Neighborhood Center 11,896 2007 57.91 $2.00 851 -881 Showroom PI Community Center 162,967 2006 85.47 $1.81 891 Showroom PI Community Center 14,542 2006 87.19 $2.45 Average 73.59 $2.27 Source: Costar and HR &A Hotel Assessed Value Current Chula Vista accommodations have low asking room rates of $60 to $120 per room. However, existing accommodations options include primarily economy -level limited service hotels. The Developer anticipates that the hotels located on the site may be similar to a Residence Inn or Courtyard by Marriott which are mid -scale to upscale in nature. The following table includes the asking room rates for comparable hotels in the San Diego area. HR&A estimates that a Residence Inn or Courtyard Marriott level hotel will have average asking rates of $150 to $200 and will achieve average revenue of between $120 to $160 per room night. Figure 1 1 shows average room metrics for San Diego County hotels. Based on a review of comparable hotels and countywide averages, we use an estimated average room rate of $140 to estimate the assessed value. Using standard industry margins and a current cap rate of approximate 9 percent, each hotel room is projected to have a value of approximately $146,000 per room. Figure 10: Comparable Hotel Room Rates Hotel Asking Room Rate Property Type Market Segment Courtyard by Marriott Oceanside $150-$180/ Limited - Service Hotel Upscale - Limited $250 -$280 Peak Residence Inn San Diego $180-$230/ Extended Stay Hotel Upscale - Limited Oceanside $270 - $370 Peak Residence Inn San Marcos $160-$170/ Extended Stay Hotel Upscale - Limited $210 -$220 Peak Source: HR &A Advisors HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 15 2015 -05 -26 Agenda Packet Page 283 Figure 11: San Diego County Hotel Performance Hotel Market Occupancy Average Daily Rate REVPAR 2012 73.7% $155.76 $1 14.80 2013(Estimated) 73.8% $158.10 $116.65 2014 (Forecasted) 73.8% $163.46 $120.67 Source: PKF 2014 Southern California Hotel Forecast Report and HR &A Rental Residential Assessed Value Average rental apartment rents were based on an analysis of comparable Otay Ranch apartment complexes. HR&A evaluated average monthly rental rents for various rental floor plans. Six rental complexes were reviewed. Figure 12 below presents select comparable project rents and their current assessed value per unit. Based on comparable rents, the projects average monthly rent is estimated at approximately $1,850. Figure 12: Select Otay Ranch Rental Residential Comparables Apartment Rental Rates Residential Complex Bedrooms Baths Unit Size Average Monthly Rent Toscana at Rancho Del Rey 1 2 767 $1,535 $1,585 Toscana at Rancho Del Rey 2 2 1,000 $1,835 $1,985 Toscana at Rancho Del Rey 3 2 1,300 $2,030 $2,090 Sunbow Villas 1 2 715 $1,460 $1,820 Sunbow Villas 2 2 1,020 $1,800 $2,165 Camden Sierra at Otay Ranch 1 1 720 $1,559 $1,849 Camden Sierra at Otay Ranch 1 1 825 $1,659 $1,949 Terra Vista 1 1 709 $1,516 $1,636 Terra Vista 2 2 1,098 $1,904 - $2,197 Terra Vista 3 2 1,356 $1,979 $2,201 Missions at Sunbow 2 2 1,1 1 1 $1,726 $1,886 Missions at Sunbow 3 2 1,327 $2,189 $2,336 Pinnacle at Otay Ranch 1 1 809 $1,635 $1,635 Pinnacle at Otay Ranch 2 2 1,186 $1,849 $1,849 Average 996 $1,763 - $1,942 Source: HR&A It should be noted that, currently, rental residential is the highest performing real estate land use in Southern California and is the most sought after land use by investors. The new rental apartment product included within the project will likely be considered Class A product. Assuming a gross expense estimate of 30 percent and 95 percent occupancy, expected apartment rents were capitalized using a capitalization rate of 6.00 percent. Based on these calculations, rental apartments were valued at approximately $246,000. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 16 2015 -05 -26 Agenda Packet Page 284 For -Sale Residential Assessed Value The assessed value for for -sale residential product was estimated based on recent sales of multi - family product in Otay Ranch, as shown in Figure 13. An average sales price of $325,000 was used as the assessed value for the for -sale multifamily units. Figure 13: Sales of Multi - Family Product Built Since 2010 Address City State SF Bedrooms Sales Date Sales Price Price per SF 1831 Crimson Ct #2 Chula Vista CA 1,292 3 2/4/2015 $320,000 $ 247.68 1711 Rolling Water Dr #4 Chula Vista CA 1,891 4 1/6/2015 $390,000 $ 206.24 1430 Trouville Ln #6 Chula Vista CA 1,008 2 1/2/2015 $275,000 $ 272.82 2236 Antonio Dr #19 Chula Vista CA 1,984 4 12/31/2014 $409,000 $ 206.15 1875 Violet Ct #1 Chula Vista CA 1,565 3 12/29/2014 $350,000 $ 223.64 1432 Levant Ln #5 Chula Vista CA 1,372 3 12/12/2014 $315,000 $ 229.59 1724 Rolling Water Dr #1 Chula Vista CA 1,579 2 12/12/2014 $310,000 $ 196.33 1831 Crimson Ct #3 Chula Vista CA 1,175 2 12/2/2014 $280,000 $ 238.30 1830 Crimson Ct #9 Chula Vista CA 1,175 2 11/26/2014 $275,000 $ 234.04 1824 Peach Ct #3 Chula Vista CA 1,175 2 11/24/2014 $301,000 $ 256.17 1823 Casa Morro St #21 Chula Vista CA 1,860 3 11/14/2014 $378,000 $ 203.23 2161 Barrel Ct #93 Chula Vista CA 1,581 3 11/7/2014 $352,000 $ 222.64 1713 Cripple Creek Dr #1 Chula Vista CA 1,579 2 10/30/2014 $330,000 $ 208.99 1721 Cripple Creek #1 Chula Vista CA 1,579 2 10/21/2014 $347,500 $ 220.08 1874 Violet Ct #1 Chula Vista CA 1,292 2 10/2/2014 $305,000 $ 236.07 1875 Violet Ct #3 Chula Vista CA 1,175 2 9/29/2014 $299,000 $ 254.47 1876 Caminito Treviana Chula Vista CA 1,400 2 9/4/2014 $317,000 $ 226.43 Average 1,452 $326,676 $ 228.40 Source: Trulia and HR &A Advisors Property Tax Rates The Freeway Commercial SPA is included in tax rate area 01265. The City's proportion of the 1 percent tax distribution is 10.64% within this tax rate area. Transfer taxes were assessed at $0.55 per $1000 of assessed value. VLF Fees Until July of 2011, 0.65 percent VLF revenues were estimated based on population increases while the property taxes in -lieu of VLF fees ( "MVLF In -Lieu Fees ") are based on incremental growth in assessed value. The State of California's Legislature passed SB89 in 2011 that eliminates 0.65% VLF payments as of July 2011. The California League of Cities filed suit to challenge the law, but the State Superior Court recently ruled against the League in March of 2012. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 17 2015 -05 -26 Agenda Packet Page 285 The 0.65% VLF fees generated based on population have been excluded from this analysis. The MVLF In- Lieu Fees are still allocated proportionally, based on incremental growth in assessed value as described in the SPA Fiscal Impact Framework. Sales Tax It should be noted that the calculation of sales tax in this fiscal impact differs from the SPA FIA Framework. In the SPA FIA Framework, sales tax receipts to the City are analyzed on the basis of the project's incremental residents' retail spending. The SPA Framework used this sales tax analysis approach to ensure that retail sales tax receipts were not double counted by both the developer of a new retail shopping center and by a separate developer of nearby residential whose spending will support the new center. To better understand the variation in fiscal revenues generated from the different levels of commercial development in the FC2 Amendment and the Approved SPA, this analysis evaluates sales tax receipts based on the gross leasable square feet within each of the sites4. Estimated taxable sales for the existing FC1 site is based on current Chula Vista taxable sales averages and the taxable sales for new retail was estimated based on average California taxable sales per square estimates produced by HdL. Taxables sales per square foot of $270 and a 95 percent occupancy rate were used to estimate the taxables sales from both existing and future retail development. Other Discretionary Revenues As described above, revenue factors from the SPA Fiscal Framework were used to estimate revenues that are expected to grow proportionally with development. These are derived in Appendix Tables A -10 & A- 1 1 and B -8 & B -9. These factors are summarized in the table below. Figure 14: Other Discretionary Revenue Factors Summary of Other Discretionary Revenue Factors Hotel Commercial (Per Acre) $839.44 Retail Commercial ( Per SF) $0.07 Residential (Acre) $1,600.36 Residential (Per DU) $3.60 Employees (Per Employee) $19.45 Population (Per Resident) $3.86 Source: City of Chula Vista and HR &A Advisors Expenditure Methodology As described above, expenditure factors from the SPA Fiscal Framework were used to estimate expenditures that are expected to grow proportionally with development. The factors provided by the City of Chula Vista are shown in Appendix Table A -7 & B -6 and are summarized below. Special models are used to estimate the allocation of public safety fiscal expenditures generated by dwelling units. The public safety expenditures allocated to dwelling units are estimated proportionally 4 As such, the FC Amendment FIA should not be considered additive to other fiscal impact analysis results in Otay Ranch. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 18 2015 -05 -26 Agenda Packet Page 286 (there are no adjustments at this time), but are presented in a special model because these costs are typically a major fiscal expenditure. Figure 15: Expenditure Factors and Public Safety Dwelling Unit Factors Expenditure Factors Retail (Per SF) $1.36 Hotel (Acres) $11,584 Population (Per Resident) $76.53 Private Parks (Acres) $160.46 Public Use (Per Acre) $2,710.85 Dwelling Unit Factor $119.40 (Not including Public Safety) Special Model Factors Approved FC SPA FC2 Amendment Police (Per DU) $293.70 $293.70 Fire (Per DU) $210.64 $210.64 Source: City of Chula Vista and HR &A Advisors HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 19 2015 -05 -26 Agenda Packet Page 287 Fiscal Impacts The following section describes the fiscal impacts generated by the FC2 Amendment and the Approved FC SPA scenarios. Figure 16 and Figure 17 present the annual fiscal revenues and annual fiscal expenditures of each of the scenarios. As described in the Methodology section, the tables present anticipated revenues estimated based on special models such as property taxes, MVLF in -lieu fee revenues, transient occupancy tax, and sales and use tax, and other revenues, calculated on a pro rata basis, are summarized. Estimated expenditures are calculated and presented by land use category.5 The figures in these tables have been adjusted to reflect 2015 dollars. FC2 Amendment Figure 16 presents the annual fiscal revenues and fiscal expenditures of the FC2 Amendment. The detailed analysis of the FC2 Amendment is included within Appendix A. Using the methodology described above, the FC2 Amendment will generate annual fiscal revenues of approximately $4.80 million in Year 10 (2015 dollars). Sales and use tax receipts represent 55 percent of revenues and are the greatest sources of fiscal revenue. Annual sales tax receipts are currently estimated at $1.84 million and are expected to grow by $778,000 at buildout of retail properties in Year 5. Transient occupancy tax (TOT) are the second greatest source of revenue for the FC2 Amendment scenario. At approximately $1.17 million annually at build out, TOT receipts are projected to generate approximately 25 percent of the total revenues. TOT will begin to be generated with the first hotel in Year 2, which will reach full occupancy (70 %) in Year 3. The second hotel and its related TOT taxes are projected to come online in Year 5 with TOT growing at full occupancy in Year 6. The FC2 Amendment is projected to generate annual expenditures of $2.26 million in Year 10 (2015 dollars). Public safety (police and fire) are the City's greatest fiscal costs and are expected to be the greatest costs generated as a result of new development. Including both the dwelling unit allocation and allocations of public safety costs from other land uses, the FC2 Amendment will generate approximately $1.26 million in public safety costs. In Year 10, the FC2 Amendment is expected to generate a positive net fiscal impact of approximately $2.54 million. The Freeway Commercial SPA, including all onsite retail tax receipts, currently generates an estimated $1.00 million positive net fiscal revenue to the City annually. This net fiscal revenue grows with the build out of the retail developments and hotel developments. One -time property transfer and the incremental property taxes create the largest spikes after the inclusion of the hotels in Year 2 and Year 5. Net fiscal revenues grow on a constant basis after Year 7. 5 Also includes expenditures calculated based on population. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 20 2015 -05 -26 Agenda Packet Page 288 Figure 16: FC2 Amendment Fiscal Impact (2015 $) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2075 Dollar Inflation Factor 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 Revenues Property Taxes $151,249 $151,249 $151,400 $193,236 $252,906 $343,356 $445,798 $447,556 $449,842 $452,634 $455,908 Property Transfer Taxes $0 $3,911 $3,989 $29,665 $41,154 $60,156 $69,862 $16,514 $16,844 $17,181 $17,525 VLF Revenues $107,880 $107,987 $137,828 $180,388 $244,902 $317,970 $319,224 $320,855 $322,846 $325,181 $327,848 Sales and Use Tax $1,841,152 $2,012,317 $2,249,251 $2,489,140 $2,613,250 $2,619,223 $2,619,223 $2,619,223 $2,619,223 $2,619,223 $2,619,223 Transient Occupancy Tax $0 $414,009 $579,613 $579,613 $1,004,812 $1,174,891 $1,174,891 $1,174,891 $1,174,891 $1,174,891 Other Revenues $95,869 $95,869 $113,690 $137,786 $170,410 $201,696 $201,696 $201,696 $201,696 $201,696 $201,696 Total Annual Revenues $2,196,150 $2,371,333 $3,070,167 $3,609,828 $3,902,236 $4,547,213 $4,830,694 $4,780,735 $4,785,342 $4,790,806 $4,797,091 Expenditures Retail (SF) $1,181,099 $1,181,099 $1,320,051 $1,459,004 $1,531,954 $1,531,954 $1,531,954 $1,531,954 $1,531,954 $1,531,954 $1,531,954 Hotel (Acres) $0 $0 $46,150 $46,150 $46,150 $93,548 $93,548 $93,548 $93,548 $93,548 $93,548 Park (Acres) $0 $0 $0 $82 $254 $411 $411 $411 $411 $411 $411 Population (Persons) $0 $0 $0 $30,723 $94,730 $153,616 $153,616 $153,616 $153,616 $153,616 $153,616 Expenditures Allocated to DUs (excluding Public Safety) $0 $0 $0 $18,367 $56,630 $91,833 $91,833 $91,833 $91,833 $91,833 $91,833 Public Safety Costs Allocated to DUs $0 $0 $0 $77,577 $239,195 $387,884 $387,884 $387,884 $387,884 $387,884 $387,884 Total Annual Expenditures $1,181,099 $1,181,099 $1,366,202 $1,631,904 $1,968,914 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 Net Fiscal Impact $1,015,051 $1,190,234 $1,703,965 $1,977,925 $1,933,322 $2,287,966 $2,571,447 $2,521,488 $2,526,095 $2,531,559 $2,537,844 Source: HR &A Advisors HR &A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 21 2015 -05 -26 Agenda Packet Page 289 Approved FC SPA Figure 17 presents the annual fiscal revenues and fiscal expenditures of the Approved FC SPA. Using the methodology described above, the Approved FC SPA will generate fiscal revenues of approximately $4.11 million in Year 10 (2015 dollars). Sales and use tax receipts are the greatest sources of fiscal revenue in the Approved FC SPA scenario. Sales tax receipts make up almost 85 percent of total revenues. Current sales tax receipts are estimated at $1.84 million annually. With a greater amount of future retail in this scenario, sales tax receipts are expected to grow by $1.60 million at buildout of retail properties in Year 5. After sales tax receipts, property tax, at $280,000 annually, and VLF "in -lieu" fee revenues, $200,000 annually, are the next greatest sources of revenue. The Approved FC SPA is projected to generate annual expenditures of $2.11 million in Year 10 (2015 dollars). Public safety costs are also expected to be the greatest costs generated as a result of new development. Within the retail land use factor, public safety costs account for more than 50 percent of the costs, or $1.14 million. In Year 10, the Approved FC SPA is expected to generate a positive net fiscal impact of approximately $2.00 million. Similar to the FC2 Amendment, the Approved FC SPA currently generates a net fiscal revenue of $1.00 million to the City. As additional retail development is absorbed, the annual net fiscal revenue increases. In this scenario, the retail is projected to be fully built out in Year 5. Net fiscal revenues stabilize in Year 6 and grow on a constant basis, thereafter. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 22 2015 -05 -26 Agenda Packet Page 290 Figure 17: Approved FC SPA Fiscal Impact (2015$) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2074 Dollar Inflation Factor 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 7.095 Revenues Property Taxes $151,249 $151,249 $151,400 $169,222 $198,245 $239,763 $276,205 $277,401 $278,876 $280,623 $282,635 Property Transfer Taxes $0 $3,911 $3,989 $16,119 $24,277 $33,593 $31,363 $8,757 $8,932 $9,111 $9,293 VLF Revenues $107,880 $107,987 $120,699 $141,400 $171,014 $197,006 $197,859 $198,911 $200,157 $201,592 $203,212 Sales and Use Tax $1,841,152 $2,012,317 $2,249,060 $2,604,744 $3,064,243 $3,443,841 $3,443,841 $3,443,841 $3,443,841 $3,443,841 $3,443,841 Transient Occupancy Tax $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Revenues $95,869 $95,869 $107,148 $125,053 $150,007 $171,154 $171,154 $171,154 $171,154 $171,154 $171,154 Total Annual Revenues $2,196,150 $2,371,333 $2,632,296 $3,056,538 $3,607,785 $4,085,358 $4,120,423 $4,100,065 $4,102,961 $4,106,321 $4,110,135 Expenditures Retail (SF) $1,181,099 $1,181,099 $1,320,051 $1,540,639 $1,848,072 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 Hotel (Acres) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Park (Acres) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Population (Persons) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Open Space (Acres) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Use (Acres) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Expenditures Allocated to DUs (excluding Public Safety) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Safety Costs Allocated to DUs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Annual Expenditures $1,181,099 $1,181,099 $1,320,051 $1,540,639 $1,848,072 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 Net Fiscal Impact $1,015,051 $1,190,234 $1,312,245 $1,515,899 $1,759,713 $1,976,749 $2,011,815 $1,991,456 $1,994,352 $1,997,713 $2,001,526 Source: HR &A Advisors HR &A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 23 2015 -05 -26 Agenda Packet Page 291 Net Fiscal Impact Conclusions Both the FC2 Amendment and Approved FC SPA are projected to generate a positive net fiscal revenue to the City of Chula Vista in Year 10. In Year 10, the FC2 Amendment is expected to generate $540,000 more than the Approved FC SPA. Figure 18 presents the annual opportunity (cost) /benefit between the two scenarios. Key variations in fiscal impacts include sales tax differences, TOT differences, and property tax receipt differences. The FC2 Amendment generates $820,000 less in sales tax revenues than the Approved FC SPA, but generates $1.17 million in TOT that is not generated in the Approved FC SPA, assuming it is built fully as retail. Overall, development of the FC2 Amendment is not expected to adversely impact the City of Chula Vista's quality of life. However, given that TOT receipts are key fiscal revenues, the timing and number of hotel rooms that are successful developed will impact the City net fiscal impacts The next section presents a sensitivity analysis evaluating the variation in net fiscal impact at various room rates and at different levels of hotel room absorption. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 24 2015 -05 -26 Agenda Packet Page 292 Figure 18: Annual Comparison of FC2 Amendment Relative to Approved FC SPA (2015 $) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Revenue 0 $0 $0 $437,871 $553,290 $294,450 $461,855 $710,271 $680,670 $682,381 $684,485 $686,956 Total Expenditure 4 $0 $0 $46,150 $91,264 $120,842 $150,639 $150,639 $150,639 $150,639 $150,639 $150,639 Difference in Net Fiscal Impacts (2015 Dollars) $0 $0 $391,720 $462,026 $173,608 $311,217 $559,632 $530,031 $531,743 $533,847 $536,318 Source: HR &A HR &A Advisors, Inc. 2015 -05 -26 Agenda Packet Chula Vista SPA FC2 Amendment FIA 1 25 Page 293 Sensitivity Analysis The sensitivity matrix presents the opportunity (cost) /benefit of the FC2 Amendment relative to the Approved FC SPA for three different levels of hotel rooms and at three different estimated average hotel room rates. The opportunity (cost) /benefit represents the FC2 Amendment net fiscal impacts less the base Approved FC SPA scenario's net fiscal impacts. Based on absorption information from the Developer and HR&A's brief survey of the San Diego and Chula Vista hotel market, the FIA includes the projected average room rate ($140) and number of hotel rooms (300). The current assumption is highlighted in the sensitivity matrix. Three different hotel amounts have been modeled to provide the City with information regarding varying scenarios. Hotel Room Scenarios: • 148 Rooms. Only one hotel gets built in Year 2. • 175 Rooms. Point of Neutrality. One hotel gets built in Year 2 and 27 additional rooms are built in Year 56. • 300 Rooms. The Developer anticipates the development of two hotels, one with 148 and another with 152 rooms each. The FIA models a 148 -room hotel in Year 2 and a second hotel with 152 rooms in Year 5. Figure 19: Hotel Sensitivity Analysis FC2 Amendment Average Room Rate Sensitivity Matrix $120 $140 $160 148 Hotel Rooms Net Fiscal Impact $1,799,200 $1,888,700 $1,978,200 Opportunity (Cost) Gain - $202,315 - $112,800 - $23,300 175 Hotel Rooms (Point of Neutrality) Net Fiscal Impact $2,004,037 Opportunity (Cost) Gain $2,500 300 tel Rooms Net Fiscal Impact $2,356,088 $2,537,800 $2,719,500 Opportunity (Cost) /Gain $354,600 $536,300 $718,000 Source: HR &A Advisors Please note, the sensitivity analysis does not assume that changes in hotel rooms impact other uses, Le the land planned for hotel is not assumed to be used for retail or any other interim or permanent purpose, but is instead assumed to remain vacant. As shown above, the FC2 Amendment generates positive net fiscal impacts within the $120 to $160 average room rate range and 175 to 300 hotel rooms range. However, if only one hotel is built, of approximately 148 rooms, there will be an opportunity cost of the FC2 Amendment relative to the Approved FC SPA. At an average room rate of $140 per room night, 175 hotel rooms is the point of neutrality between the FC2 Amendment and Approved FC SPA. Assuming an average of $140 per room night and assuming that 6 Note that it is not likely that a new hotel will be built with 27 rooms (though an expansion of an existing hotel may be possible). Instead, this number of rooms is included to understand the theoretical point of neutrality of the project in terms of hotel rooms. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 26 2015 -05 -26 Agenda Packet Page 294 the amount of land used for hotel uses does not change, every additional hotel room adds approximately $4,000 in additional benefit above the approved scenario, 90 percent from additional TOT receipts and the balance from additional property taxes.? 7 Please note, this metric is not true on all scales, but near the 200 hotel room mark, the $4,000 per room net fiscal impact variation is a reasonable benchmark. HR&A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 27 2015 -05 -26 Agenda Packet Page 295 Appendices A - FC2 Amendment Fiscal Impact Analysis B - Approved FC SPA Fiscal Impact Analysis HR &A Advisors, Inc. Chula Vista SPA FC2 Amendment FIA 1 28 2015 -05 -26 Agenda Packet Page 296 Appendix A Freeway Commercial Amendment 2015 -05 -26 Agenda Packet Page 297 Anply;r. Arlvixs..i{i. Table A -1 Proposed Land Uses Approved SPA Freeway Commercial Amendment Land Use Single Family Residential Units 0 0 Multi - Family Residential Units 0 600 (26.70 Ac.) MF Attached - For Sale Townhomes 0 290 MF Attached - Rental Apartments 0 310 Retail Commercial Square Feet (SF)' 1,214,000 (120.7 Ac) 882,000 (86.20 Ac.) Hotels (Rooms) Parks CPF School Subtotal Developed Acres Open Space Preserve Other Acres /ROW Total Acres Population Multi Family Persons /DU@ 2.61 Total Est. Population Employment Retail SF /Emp 450 Hotel Employees per Room 0.90 Total Est. Employment Mixed Use retail acreage is included with residential Source: Baldwin and Sons, City of Chula Vista and HR &A Advisors 0 300 (6.30 Ac.) 0.0 2.0 (2 Ac. onsite) 0.00 0.0 0.0 120.7 121.2 0 0 0 0 0 0 120.7 121.2 0 1,566 0 1,566 2,698 1,960 0 270 2,698 2,230 2015 -05 -26 Agenda Packet Page 298 rl I yp� Table A -2 Historical Housing Absorption Housing Units Family Multi Family Total 2,000 35,671 19,975 55,646 2,001 37,215 20,441 57,656 2,002 39,286 21,305 60,591 2,003 40,969 22,545 63,514 2,004 42,986 23,235 66,221 2,005 45,163 24,066 69,229 2,006 46,446 25,308 71,754 2,007 47,133 26,067 73,200 2,008 47,614 26,417 74,031 2,009 47,817 26,722 74,539 2,010 51,938 27,478 79,416 2,011 52,155 27,625 79,780 2,012 52,522 27,886 80,408 2,013 52,912 28,339 81,251 2,014 53,251 28,775 82,026 Change in Housing Units Family Multi Family Total 2000 2001 1,544 466 2,010 2002 2,071 864 21935 2003 1,683 1,240 2,923 2004 2,017 690 21707 2005 2,177 831 31008 2006 1,283 1,242 2,525 2007 687 759 1,446 2008 481 350 831 2009 203 305 508 2010 190 200 390 2011 217 147 364 2012 367 261 628 2013 390 453 843 2014 339 436 775 Source: California Department of Finance E -5 2015 -05 -26 Agenda Packet Page 299 HPsLA Table A -3 Proposed Land Uses Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Land Use Program Land Use Multi - Family Residential Units (Includes Multi -Use Residential) 0 0 0 120 370 600 600 600 600 600 600 MF Attached Townhomes 0 0 0 90 190 290 290 290 290 290 290 MF Attached Apartments (Mixed Use) 0 0 0 30 180 310 310 310 310 310 310 Retail Commercial SF 680,000 680,000 760,000 840,000 882,000 882,000 882,000 882,000 882,000 882,000 882,000 Freeway Commercial - Parcel 1 680,000 680,000 760,000 840,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 Mixed Use Commercial - Parcel 2 0 0 0 0 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Retail Commercial Acres 67.6 67.6 75.6 83.5 86.2 86.2 86.2 86.2 86.2 86.2 86.2 Hotel Rooms 0 0 148 148 148 300 300 300 300 300 300 Hotel Acres 0 0 3 3 3 6 6 6 6 6 6 Parks 0.0 0.0 0.0 0.4 1.2 2.0 2.0 2.0 2.0 2.0 2.0 CPF 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 School 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Acres 67.6 67.6 78.7 92.4 107.0 121.2 121.2 121.2 1 21 .2 121.2 121.2 Cumulative Population Multi Family Persons /DU@ 2.6 0.0 0.0 0.0 313 966 1,566 1,566 1,566 1,566 1,566 1,566 Total Est. Population 0.0 0.0 0.0 313 966 1,566 1,566 1,566 1,566 1,566 1,566 Employment Retail SF /Emp@ 450 1,511 1,511 1,689 1,867 1960 1,960 1,960 1,960 1,960 1,960 1,960 Hotel Employees per Room 0.9 0 0 133 133 133 270 270 270 270 270 270 Total Est. Employment 1,511 1,511 1,822 2,000 2093 2,230 2,230 2,230 2,230 2,230 2,230 Source: Baldwin and Sons and HR &A Advisors 2015 -05 -26 Agenda Packet Page 300 HP&A Table A -4 Chula Vista - Expenditure Real Inflation Adjustment' 2005 2006 2007 2008 2009 Population Households City Staff Revenues (Actuals) Expenditures (Actuals) CPI (San Diego Area) Expenditure/Capita Revenues /Capita 2009 CPI Adjustment Factor Exp/Cap in 2009 Dollars Rev /Cap in 2009 Dollars Expenditure Adjustment Factor Revenue Adjustment Factor (Relative to 2009 Levels) Provided by the City of Chula Vista Source: City of Chula Vista and HR &A Advisors 216,961 223,604 227,850 231,157 234,011 70,916 73,365 74,527 75,259 75,752 1,169 1,227 1,264 1,249 1,1 1 0 $137,763,583 $157,809,965 $161,564,721 $153,938,093 $140,502,938 $142,195,531 $160,826,968 $166,056,406 $155,021,736 $140,365,277 220.6 228.1 233.3 242.3 242.3 $655.40 $719.25 $728.80 $670.63 $599.82 $634.97 $705.76 $709.08 $665.95 $600.41 1.10 1.06 1.04 1.00 1.00 $719.87 $764.02 $756.91 $670.63 $599.82 $697.43 $749.69 $736.44 $665.95 $600.41 120% 127% 126% 112% 100% 116% 125% 123% 111% 100% 2015 -05 -26 Agenda Packet Page 301 Ev Table A -5 Chula Vista Estimated Commercial Assessed Value Commercial Land Uses Building Admin /Vacancy Assessed Mo. Rent NNN /SF Efficiency Occupancy Rate Cost Net Income /SF Cap Rate Value Per SF Retail $1.85 90% 95% 5% 18.03 7.5% o 240.43 Avg. Room Price Avg. Annual Rev. Per Assessed per Night Occupancy Rate Room Other Revenues Other Revenues Hotel Net Income Net Income /Unit Cap Rate Value per Unit 5% of Room Hotel $140 70% $35,770 Revenues $1,790 35% $13,146 9.0% $146,067 Avg. Monthly Avg. Annual Gross Expense Assessed Value Rental Residential Land Use Rent /Unit Rent /Unit Estimate Occupancy Rate Net Income /Unit Cap Rate per Unit Rental Apartments $ 1,850 $22,200 30% 95% $ 14,763 6.00% $246,050 Source: Loopnet, RERC Real Estate Cap Rate Report, and HR &A Advisors 2015 -05 -26 Agenda Packet Page 302 HL]L I m, R�higr, .lp. Table A -6 Projected Program Assessed Value 'The assessed value of existing retail square feet in Year 0 is based on reported assessed values for these properties. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 303 Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 01 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Est. Assessed Value Cumulative Program Assessed Value Per Unit (Millions $) Land Use MF Attached T- nhomes $325,000 $0.0 $0.0 $0.0 $29.3 $67.8 $94.3 $94.3 $94.3 $94.3 $94.3 $94.3 Total For Sale Product 0 0 0 29 62 94 94 94 94 94 94 Rental Residential - MF Attached Apartments $246,000 0 0 7 44 76 76 76 76 76 76 Retail Commercial SF' $240 130 130 149 168 178 178 178 178 178 178 178 Hotel (Rooms) $146,100 0 0 22 22 22 44 44 44 44 44 44 Total Income Generating Product $129.9 $129.9 $170.7 $197.4 $244.3 $298.5 $298.5 $298.5 $298.5 $298.5 $298.5 Total Assessed Value $129.9 $129.9 $170.7 $226.6 $306.1 $392.8 $392.8 $392.8 $392.8 $392.8 $392.8 'The assessed value of existing retail square feet in Year 0 is based on reported assessed values for these properties. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 303 i Table A -7 Citywide Cost Factors by Function /Department' Land Uses Population Retail Office Hotel Industrial Parks ( per acre) Public Use Open Space Other Residential (Per Person) (Per Acre) (Per Acre) (Per Acre) (Per Acre) Private Public (Per Acre) (Per Acre) (Per Acre) (Per DU) Legislative and Administration City Council $2.00 Boards and Commissions City Clerk $1.37 City Attorney $80.11 $86.52 $51.21 $21.13 $12.1 1 Administration $0.29 $0.35 Management and Information Services $4.60 Human Resources Development and Maintenance Services Economic Development Function $0.00 $301.43 $325.55 $192.68 $79.51 $0.00 Planning and Building Services $0.00 $203.44 $219.57 $130.70 $55.00 $31.70 $30.69 Engineering $274.44 $145.29 $64.57 $27.44 $15.53 $16.85 $3.07 Public Works $5,914.17 $3,131.03 $1,391.57 $591.42 $69.58 $347.89 $347.89 $68.43 General Services Public Safety Police (Excluding Residential) $11.01 $6,836.27 $6,836.27 $6,836.27 $1,006.09 $2,202.49 $2,202.49 $2,202.49 Fire (Excluding Residential) $1.05 $2,917.22 $2,917.22 $2,917.22 $396.88 $160.46 $160.46 $160.46 $160.46 $160.46 Culture and Leisure Parks and Recreation $18.90 Library $37.32 $4.77 Nature Center Sub -Total Unit Cost $76.53 $16,527.08 $13,661.45 $11,584.21 $2,177.48 $160.46 $2,448.06 $2,710.85 $160.46 $2,759.40 $119.40 Acre to SF Density Adjustment Factors 0.00008 Total - Density Adjusted Unit Costs $76.53 $1.36 $13,661.45 $11,584.21 $2,177.48 $160.46 $2,448.06 $2,710.85 $160.46 $2,759.40 $119.40 IAll Cost Factors and Subtotal Cost factors provided by the City Source: City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 304 Table A -8 Dwelling Unit Public Safety Costs Freeway Commercial Amendment Project Residential Units Current Service Costs Police Service Costs/ DU $293.70 Fire Service Costs/ DU $210.64 i 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 120 370 600 600 600 600 600 600 Annual Public Safety (Allocated to Project Dwelling Units) Police $0 $0 $0 $35,244 $108,669 $176,220 $176,220 $176,220 $176,220 $176,220 $176,220 Fire $0 $0 $0 $25,277 $77,937 $126,384 $126,384 $126,384 $126,384 $126,384 $126,384 Total Annual Public Safety Costs $0 $0 $0 $60,521 $186,606 $302,604 $302,604 $302,604 $302,604 $302,604 $302,604 Source: City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 305 Mi Table A -9 $1.36 $1,078,770 $1,078,770 $1,205,684 $1,332,598 $1,399,228 $1,399,228 $1,399,228 $1,399,228 $1,399,228 $1,399,228 Expenditure Summary (2009 $) Freeway Commercial Amendment $0 $0 $42,152 $42,152 $42,152 $85,443 $85,443 $85,443 $85,443 $85,443 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expense Drivers Unit Cost Year 0 Year] Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Dwelling Units 0 0 0 120 370 600 600 600 600 600 600 Population 0 0 0 313 966 1,566 1,566 1,566 1,566 1,566 1,566 Retail (SF) 680,000 680,000 760,000 840,000 882,000 882,000 882,000 882,000 882,000 882,000 882,000 Hotel Acres 0.0 0.0 3.1 3.1 3.1 6.3 6.3 6.3 6.3 6.3 6.3 Park Acres 0.0 0.0 0.0 0.4 1.2 2.0 2.0 2.0 2.0 2.0 2.0 Expenditure Adjustment Factor 777% 777% 777% 777% 777% 777% 777% 777% 777% 777% 777% Retail (SF) $1.36 $1,078,770 $1,078,770 $1,205,684 $1,332,598 $1,399,228 $1,399,228 $1,399,228 $1,399,228 $1,399,228 $1,399,228 $1,399,228 Hotel (Acres) $11,584.21 $0 $0 $42,152 $42,152 $42,152 $85,443 $85,443 $85,443 $85,443 $85,443 $85,443 Park (Acres) $160.46 $0 $0 $0 $75 $232 $376 $376 $376 $376 $376 $376 Population (Persons) $76.53 $0 $0 $0 $28,061 $86,523 $140,307 $140,307 $140,307 $140,307 $140,307 $140,307 Expenditures Allocated to DUs (excluding Public Safety) $119.40 $0 $0 $0 $16,775 $51,724 $83,877 $83,877 $83,877 $83,877 $83,877 $83,877 Public Safety Costs Allocated to DUs $0 $0 $0 $70,856 $218,472 $354,278 $354,278 $354,278 $354,278 $354,278 $354,278 Total Est. Annual Expenditures (2009 Dollars) $1,078,770 $1,078,770 $1,247,836 $1,490,518 $1,798,330 $2,063,509 $2,063,509 $2,063,509 $2,063,509 $2,063,509 $2,063,509 Source: HR &AA&isors 2015 -05 -26 Agenda Packet Page 306 4 Table A -10 City of Chula Vista - Discretionary Revenues (Based on the FY 2009 Amended Budget) Non - Departmental Revenue Categories Discretionary Revenues Program Revenues Net Revenues Revenue Distribution 2015 -05 -26 Agenda Packet Page 307 Amended Budget 2009 (Estimate) Fixed Revenues Variable Revenues Property Taxes Current Taxes - Secured $28,363,165 $28,363,165 $28,363,165 State Secured - Unitary $300,000 $300,000 $300,000 Current Taxes - Unsecured $979,200 $979,200 $979,200 Delinquent Taxes $590,000 $590,000 $590,000 Subtotal $30,232,365 $0 $30,232,365 $0 $30,232,365 Other Local Taxes Sales and Use Taxes $29,677,977 $29,677,977 $29,677,977 Franchise Fees $8,732,093 $8,732,093 $8,732,093 Utility Taxes $7,122,095 $7,122,095 $7,122,095 Business License Tax $1,322,847 $1,322,847 $1,322,847 Transient Occupancy Taxes $2,752,514 $2,752,514 $2,752,514 Real Property Transfer Tax $841,402 $841,402 $841,402 Subtotal $50,448,928 $0 $50,448,928 $0 $50,448,928 Use of Money and Property Subtotal $4,163,212 $0 $4,163,212 $4,163,212 $0 Revenues from other Agencies Sales Tax: Public Safety Augment $875,347 $875,347 $875,347 State Homeowners Property Tax Relief $282,800 $282,800 $282,800 State Motor Vehicle Licenses $20,215,866 $20,215,866 $20,215,866 Other Revenues from other Agencies $4,324,532 $4,324,532 $4,324,532 Subtotal $25,698,545 $25,698,545 $25,698,545 Charges for Services' Subtotal $8,854,774 $0 $8,854,774 $8,854,774 $0 Other Revenues (less CIP)z Subtotal $10,580,609 $0 $10,580,609 $10,580,609 $0 Transfers In Subtotal $12,272,473 $0 $12,272,473 $12,272,473 $0 Total Discretionary Revenues (Less CIP Transfers) $142,250,906 $0 $142,250,906 $35,871,068 $106,379,838 Includes Licenses and Permits 2Other Revenue excludes funds from the CIP fund. Fines, Forfeitures, and Penalties are included in this category. Source: City of Chula Vista 2015 -05 -26 Agenda Packet Page 307 Table A -11 Chula Vista - Other Discretionary Revenue Allocation Factors (Based on 2009 Information) 2009 Citywide Conditions Population 226,694 Dwelling Units 78,615 Employees 71,153 Land Uses Developed Acres Employees (estimated) AV Share (Estimates) Commercial (Retail and Office) 2,048 46,842 25% Industrial 917 21,162 8% Residential 9,565 $68.59 Acres 67% Subtotal Taxable 12,530 68,004 $72.01 Acres Other (Parks, Public/Quasi- public, Open Space) 7,171 3,149 25% Total 19,702 71,153 Industrial AV Incremental Revenue Factors by Development Unit $979,200 Commercial AV 25% $119.51 Acres Revenue Category 2009 Revenues Allocation Method Share Allocation Units Property Taxes $3.60 Residential AV 67% $68.59 Acres Current Taxes - Secured $28,363,165 Calculated Separately 25% $72.01 Acres State Secured - Unitary $300,000 Commercial AV 25% $36.61 Acres Industrial AV 8% $26.17 Acres Other Local Taxes Residential AV 67% $21.01 Acres Current Taxes - Unsecured $979,200 Commercial AV 25% $119.51 Acres $282,800 Dwelling Units $3.60 DU State Motor Vehicle Licenses Industrial AV 8% $85.42 Acres Residential (DU) $3.60 Residential AV 67% $68.59 Acres Delinquent Taxes $590,000 Commercial AV 25% $72.01 Acres Industrial AV 8% $51.47 Acres Residential AV 67% $41.33 Acres Other Local Taxes Sales and Use Taxes $29,677,977 Calculated Separately Franchise Fees' $8,732,093 Commercial Land 7% $298.40 Acres Industrial Land 3% $285.66 Acres Residential Land 90% $821.63 Acres Utility Taxes' with Adjustment $7,122,095 Commercial Land 9% $312.92 Acres Industrial Land 4% $310.65 Acres Residential Land 87% $647.80 Acres Business License Tax $1,322,847 Employees (Non - Public) $19.45 Employees Transient Occupancy Taxes $2,752,514 Not Included Real Property Transfer Tax $841,402 Calculated Separately Revenues from Other Agencies Sales Tax: Public Safety Augment $875,347 People $3.86 Person State Homeowners Property Tax Relief $282,800 Dwelling Units $3.60 DU State Motor Vehicle Licenses $20,215,866 Calculated Separately Total Discretionary Revenues $102,055,306 Summary of Other Discretionary Revenue Factors Commercial (Acres) $839.44 Retail Commercial (SF) $0.07 Industrial (Acres) $759.37 Residential (Acres) $1,600.36 Residential (DU) $3.60 Employees $19.45 Population $3.86 1 As presented in SPA Fiscal Impact Framework, allocation share by land use based on FIND model estimates Source: City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 308 Table A -12 Property Tax Estimate For Sale Residential Product Year Property First Sold: Yr 0 Freeway Commercial Amendment $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Yr 2 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual For Sale Product AV (Millions) Yr 3 $0.0 $0.0 $0.0 $29.3 $32.5 $32.5 $0.0 $0.0 $0.0 $0.0 $0.0 Annual Income Generating Product AV (Millions) Yr 4 $129.9 $0.0 $40.9 $26.6 $47.0 $54.2 $0.0 $0.0 $0.0 $0.0 $0.0 Appreciation Factor: Ann -I Refs Year 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Real Appreciation Rate 2.00% 100% 102% 104% 106% 108% 110% 113% 115% 117% 120% 122% Proposition 13 AV Limitation less Inflation of 2% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Residential Annual Turnover Rate 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Commercial Turnover Rate 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% For Sale Residential Product Year Property First Sold: 2015 -05 -26 Agenda Packet Page 309 Yr 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 2 $0.00 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 3 $31.0 $31.1 $31.2 $31.4 $31.6 $31.9 $32.2 $32.5 Yr 4 $35.2 $35.2 $35.4 $35.6 $35.8 $36.1 $36.5 Yr 5 $35.9 $36.0 $36.1 $36.3 $36.5 $36.9 Yr 6 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 7 $0.0 $0.0 $0.0 $0.0 Yr 8 $0.0 $0.0 $0.0 Yr 9 $0.0 $0.0 Yr 10 $0.0 For Sale Residential Assessed Value (Millions) $0.0 $0.0 $0.0 $31.0 $66.3 $102.4 $102.7 $103.3 $104.0 $104.9 $105.9 Commercial and Rental Residential Product Year Property First Sold: Yr0 $129.9 $130.0 $130.3 $130.6 $131.1 $131.8 $132.5 $133.3 $134.3 $135.3 $136.5 Yr 1 $0.00 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 2 $42.51 $42.6 $42.6 $42.8 $42.9 $43.1 $43.4 $43.6 $43.9 Yr 3 $28.24 $28.3 $28.3 $28.4 $28.5 $28.7 $28.8 $29.0 Yr 4 $50.87 $50.9 $51.0 $51.2 $51.4 $51.6 $51.9 Yr 5 $59.83 $59.9 $60.0 $60.2 $60.4 $60.7 Yr 6 $0.00 $0.0 $0.0 $0.0 $0.0 Yr 7 $0.00 $0.0 $0.0 $0.0 Yr 8 $0.00 $0.0 $0.0 Yr 9 $0.00 $0.0 Yr 10 $0.00 Commercial and Rental Residential Assessed Value (Millions) $129.9 $130.0 $172.8 $201.4 $252.9 $313.6 $314.7 $316.1 $317.8 $319.8 $322.0 Total Assessed Value (Residential and Commercial) (Millions) $129.9 $130.0 $172.8 $232.5 $319.2 $415.9 $417.5 $419.4 $421.8 $424.6 $427.8 Less Bose Assessed Vole 0.0 0.0 (6.8) (75.3) (24.4) (33.7) (33.7) (33.7) (33.7) (33.7) (33.7) Incremental AV (Residential and Commercial) (Millions) $129.9 $130.0 $165.9 $217.2 $294.8 $382.8 $384.3 $386.3 $388.7 $391.5 $394.7 Total Incremental Property Taxes Collected' 1.00% $1,298,801 $1,298,801 $1,300,100 $1,659,357 $2,171,754 $2,948,466 $3,828,156 $3,843,249 $3,862,883 $3,886,853 $3,914,974 Property Tax Share to the City 10.64% $138,145 $138,145 $138,283 $176,495 $230,995 $313,608 $407,175 $408,780 $410,869 $413,418 $416,409 'With a year lag to account for property tax receipt to the City. Given the Otay Ranch Town Center is built, property tax for this parcel is Included in Year 0. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 309 Table A -13 Annual Property Transfer Tax Estimate Freeway Commercial Amendment Annual For Sale Product AV (Millions) Annual Income Generating Product AV (Millions) Appreciation Factor: Annual Rate Real Appreciation Rate 2.00% Residential Annual Turnover Rate 10% Commercial Turnover Rate 5% For Sale Residential Property Transfer Taxes Commercial and Rental Residential Product Year Property First Sold: a W-N, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $0.0 $0.0 $0.0 $29.3 $32.5 $32.5 $0.0 $0.0 $0.0 $0.0 $0.0 $129.9 $0.0 $40.9 $26.6 $47.0 $54.2 $0.0 $0.0 $0.0 $0.0 $0.0 Year 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 100% 102% 104% 106% 108% 110% 113% 115% 117% 120% 122% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% $0 $0 $0 $17,072 $21,090 $23,485 $5,838 $5,954 $6,074 $6,195 $6,319 Yr 0' $3,572 $3,643 $3,716 $3,790 $3,866 $3,943 $4,022 $4,103 $4,185 $4,269 $4,354 Yr1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Yr 2 $23,379 $1,192 $1,216 $1,241 $1,265 $1,291 $1,316 $1,343 $1,370 Yr3 $15,534 $792 $808 $824 $841 $858 $875 $892 Yr 4 $27,980 $1,427 $1,455 $1,485 $1,514 $1,545 $1,575 Yr 5 $32,905 $1,678 $1,712 $1,746 $1,781 $1,816 Yr6 $0 $0 $0 $0 $0 Yr 7 $0 $0 $0 $0 Yr 8 $0 $0 $0 Yr 9 $0 $0 Yr 10 $0 Commercial and Rental Residential Property Transfer Tax $3,572 $3,643 $27,095 $20,516 $33,854 $40,324 $9,246 $9,430 $9,619 $9,811 $10,008 Total Annual Property Taxes to the City $3,572 $3,643 $27,095 $37,589 $54,944 $63,809 $15,083 $15,385 $15,693 $16,006 'The model accounts for only the property transfer tax annual allocation for the developed FC1 parcel. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 310 Table A -14 Motor Vehicle License Fee Estimates VLF Revenues' 2009 Population of the City 226,691 2009 Allocation of the 0.65% $1,328,857 Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Motor Vehicle In Lieu Fee (MVLF) Adjustment Base Year (2004) Assessed Valuation of the City (Millions) $15,596 Base Year (2004) Motor Vehicle In Lieu Fee Adjustment (MVLF) (Millions) $11.8 Cumulative AV of New Development (Millions) $129.9 $130.0 $172.8 $232.5 $319.2 $415.9 $417.5 $419.4 $421.8 $424.6 $427.8 AV Adjustment of Base Value (Millions) $0.0 $0.0 ($6.8) ($15.3) ($24.4) ($33.1) ($33.1) ($33.1) ($33.1) ($33.1) ($33.1) Adjusted Cumulative AV Development (Millions) $130 $130 $166 $217 $295 $383 $384 $386 $389 $391 $395 Cumulative Citywide AV Growth (Millions) $15,726 $15,726 $15,762 $15,813 $15,891 $15,979 $15,981 $15,982 $15,985 $15,988 $15,991 Percent Increase In AV 0.83% 0.83% 1.06% 1.39% 1.89% 2.45% 2.46% 2.48% 2.49% 2.51% 2.53% Cumulative MVLF generated by the Project $98,533 $98,632 $125,887 $164,759 $223,684 $290,422 $291,567 $293,056 $294,875 $297,008 $299,444 Total Annual MVLF Fees $98,533 $98,632 $125,887 $164,759 $223,684 $290,422 $291,567 $293,056 $294,875 $297,008 $299,444 ' As presented in the SPA Fiscal Impact Framework Source: City of Chula Vista and HRBA Advisors 2015 -05 -26 Agenda Packet Page 311 Mi Table A -15 Estimated Onsite Retail Sales Tax Occupied GLA Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 793,175 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Retail Absorption (Square Feet) 12,825 12,825 Taxable Sales Estimate PC 1 Site - Oray Ranch Town Center - Regional /Superregional 680,000 680,000 760,000 840,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 PC 2 Site Retail 0 0 0 0 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Gross Leasable Area Building Efficiency $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 PC 2 Site Taxable Sales Taxables Sales PSF PC 1 Site - Oray Ranch Town Center 96% 654,840 654,840 731,880 808,920 834,921 834,921 834,921 834,921 834,921 834,921 834,921 PC 2 Site Retail - Neighborhood /Community Center 90% 0 0 0 0 13,500 13,500 13,500 13,500 13,500 13,500 13,500 Occupied GLA Occupancy Rate PC 1 Site - Oray Ranch Town Center 95% 622,098 622,098 695,286 768,474 793,175 793,175 793,175 793,175 793,175 793,175 793,175 PC 2 Site Retail - Neighborhood /Community Center 95% 0 0 0 0 12,825 12,825 12,825 12,825 12,825 12,825 12,825 Taxable Sales Estimate FC1 Site Taxable Sales Est.Taxables Sales PSF PC 1 -Site - Oray Ranch Town Center $270.00 $167,966,460 $183,600,000 $205,200,000 $226,800,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 PC 2 Site Taxable Sales Taxables Sales PSF PC 2 Site Proposed Project $270.00 $0 $0 $0 $0 $3,462,750 $3,462,750 $3,462,750 $3,462,750 $3,462,750 $3,462,750 $3,462,750 Total Taxable Retail Sales $167,966,460 $183,600,000 $205,200,000 $226,800,000 $237,552,750 $237,552,750 $237,552,750 $237,552,750 $237,552,750 $237,552,750 $237,552,750 Annual Sales Taxes to the City @ 1 % $1,679,665 $1,836,000 $2,052,000 $2,268,000 $2,375,528 $2,375,528 $2,375,528 $2,375,528 $2,375,528 $2,375,528 $2,375,528 ' Derived based on estimate of rental rate as 25% of income American Community Survey 2009 3Board of Equalization 2009 Annual Data per county capita Source: HR&A Advisors 2015 -05 -26 Agenda Packet Page 312 Table A -16 Estimated Whit, RMail Sales Tax Average Ea. HH Income' Multi Family Units For Sole Townhouses $78,000 Rent.I Ap.nments $68,000 Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Households Multi Family Units For Sole Townhouses 80% 80% 70% 60% 30% 0 0 0 90 190 290 290 290 290 290 290 MF Aa.ahed 0 0 0 30 180 310 310 310 310 310 310 Total Unirs $1,175 0 0 0 120 370 600 600 600 600 600 600 Employees 1,511 1,511 1,822 2,000 2,093 2,230 2,230 2,230 2,230 2,230 2,230 Aggregate HH Income 10% $0 $0 $0 $9,060,000 $27,060,000 $43,700,000 $43,700,000 $43,700,000 $43,700,000 $43,700,000 $43,700,000 Average An null - /HH 5% $0 $0 $0 $75,500 $73,135 $72,833 $72,833 $72,833 $72,833 $72,833 $72,833 Comtyw dle Income /HH2 $83,935 0 0 0 0 0 0 0 0 0 0 0 Comtyw dle Recoil E.p /HH3 $36,583 0 0 0 0 0 0 0 0 0 0 0 Retail Ezpenditure /HH Adj. F.C., FC SPA 10% 0% 0% 0% 90% 87% 87% 87% 87% 87% 87% 87% Project Avg. Recoil Ezpenditure /HH $0 $0 $0 $32,907 $31,876 $31,745 $31,745 $31,745 $31,745 $31,745 $31,745 Gross Retail Soles from Project 80% $142,044 $142,044 $171,276 $187,987 $196,761 $209,620 $209,620 $209,620 $209,620 $209,620 $209,620 Neghb -h.od Center 33% $0 $0 $0 $1,303,112 $3,892,078 $6,285,432 $6,285,432 $6,285,432 $6,285,432 $6,285,432 $6,285,432 Community Center 20% 0 0 0 789,765 2,358,835 3,809,353 3,809,353 3,809,353 3,809,353 3,809,353 3,809,353 Regional Center 4% 0 0 0 157,953 471,767 761,871 761,871 761,871 761,871 761,871 761,871 Super Region. l Center 7°7u 0 0 0 276,418 825,592 1,333,273 1,333,273 1,333,273 1,333,273 1,333,273 1,333,273 Other Centers 36% 0 0 0 1,421,5T 4,245,903 6,856,835 6,856,835 6,856,835 6,856,835 6,856,835 6,856,835 Off Site Shore 64% $90,908 $90,908 $109,617 $187,031 $325,201 $455,971 $455,971 $455,971 $455,971 $455,971 $455,971 Neghb -h.od Center 10% $0 $0 $0 $130,311 $389,208 $628,543 $628,543 $628,543 $628,543 $628,543 $628,543 Community Center 20% $0 $0 $0 $157,953 $471,767 $761,871 $761,871 $761,871 $761,871 $761,871 $761,871 Regio..I Center 30% $0 $0 $0 $47,386 $141,530 $228,561 $228,561 $228,561 $228,561 $228,561 $228,561 Super Region. I Center 30% $0 $0 $0 $82,925 $247,678 $399,982 $399,982 $399,982 $399,982 $399,982 $399,982 Other Centers 10% $0 $0 $0 $142,158 $424,590 $685,683 $685,683 $685,683 $685,683 $685,683 $685,683 Chul. Via. C.pture Neghb -h.od Center Community Center Regio..I Center Super Region. I Center Other Centers 80% 80% 70% 60% 30% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $104,249 $126,362 $33,170 $49,755 $42,647 $311,366 $377,414 $99,071 $148,607 $127,3T $502,835 $609,496 $159,993 $239,989 $205,705 $502,835 $609,496 $159,993 $239,989 $205,705 $502,835 $609,496 $159,993 $239,989 $205,705 $502,835 $609,496 $159,993 $239,989 $205,705 $502,835 $609,496 $159,993 $239,989 $205,705 $502,835 $609,496 $159,993 $239,989 $205,705 Gross Retail Soles from SPA Employees Annul Ezpenditure /Employee $1,175 Offiste Spending Neghb -h.od Center 10% $W,556 $1T,556 $214,095 $234,984 $245,951 $262,025 $262,025 $262,025 $262,025 $262,025 $262,025 Community Center 5% 88,m 88,T 8 107,048 117,492 122,976 131,013 131,013 131,013 131,013 131,013 131,013 Regional Center 0% 0 0 0 0 0 0 0 0 0 0 0 Super Regional Center 0% 0 0 0 0 0 0 0 0 0 0 0 Other Centers 10% 1T ,556 177,556 214,095 234,984 245,951 262,025 262,025 262,025 262,025 262,025 262,025 Chul. Via. C.pture Neghb -h.od Center 80% $142,044 $142,044 $171,276 $187,987 $196,761 $209,620 $209,620 $209,620 $209,620 $209,620 $209,620 Community Center 80% $71,022 $71,022 $85,638 $93,994 $98,380 $104,810 $104,810 $104,810 $104,810 $104,810 $104,810 Regional Center 70% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Super Regional Center 60% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Centers 30% $53,267 $53,267 $64,229 $70,495 $73,785 $78,608 $78,608 $78,608 $78,608 $78,608 $78,608 T... ble Recoil Soles %T ... ble Neghb -h.od Center 64% $90,908 $90,908 $109,617 $187,031 $325,201 $455,971 $455,971 $455,971 $455,971 $455,971 $455,971 Community Center T7% $54,687 $54,687 $65,941 $169,674 $366,361 $550,016 $550,016 $550,016 $550,016 $550,016 $550,016 Regio..I Center 97% $0 $0 $0 $32,175 $96,099 $155,193 $155,193 $155,193 $155,193 $155,193 $155,193 Super Region. I Center 100% $0 $0 $0 $49,755 $148,607 $239,989 $239,989 $239,989 $239,989 $239,989 $239,989 Other Centers 97% $51,669 $51,669 $62,302 $109,748 $195,128 $275,783 $275,783 $275,783 $275,783 $275,783 $275,783 Tot.1 T... ble Recoil Soles $197,264 $197,264 $237,860 $548,384 $1,131,396 $1,676,952 $1,676,952 $1,676,952 $1,676,952 $1,676,952 $1,676,952 Annu.I Sales T.-to the City@ 1% $1,973 $1,972.64 $2,379 $5,484 $11,314 $16,770 $16,M $16,M $16,T70 $16,M $16,770 'DeH -d! b.sed on estimme of rent.l cote .s 32% of income �A -ic.n Community Survey 2009 3Bo. rd of Equ.Iizmion 2009 Annul Dm. per county mpit. Source: City of Chul. Via. ..d HRBA Advisors 2015 -05 -26 Agenda Packet Page 313 Table A- 17 Estimated Transient Occupancy Tax Annual Transient Occupancy Tax to the City@ 10% $0 $0 $378,140 $529,396 $529,396 $917,756 $1,073,100 $1,073,100 $1,073,100 $1,073,100 $1,073,100 Source: HRBA Advisors 2015 -05 -26 Agenda Packet Page 314 Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Hotel Rooms 0 0 148 148 148 300 300 300 300 300 300 Occupancy Estimated Occupancy 50% 70% 70% 60% 70% 70% 70% 70% 70% Estimated Hotel Room Nights 70% 0 0 27,010 37,814 37,814 65,554 76,650 76,650 76,650 76,650 76,650 Avg. Room Rate Room Revenues $140.00 $0 $0 $3,781,400 $5,293,960 $5,293,960 $9,177,560 $10,731,000 $10,731,000 $10,731,000 $10,731,000 $10,731,000 Annual Transient Occupancy Tax to the City@ 10% $0 $0 $378,140 $529,396 $529,396 $917,756 $1,073,100 $1,073,100 $1,073,100 $1,073,100 $1,073,100 Source: HRBA Advisors 2015 -05 -26 Agenda Packet Page 314 . �lrFa'n1•. M':. Table A -18 Revenue Revenue Summary (2009 $) Annual Revenues Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 115% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Revenue Drivers $6,949 $6,949 $6,949 $6,949 Private Employment (Employees) $19.45 $33,780 $33,780 $40,732 $44,706 $46,792 Population(Persons) 0 0 0 313 966 1,566 1,566 1,566 1,566 1,566 1,566 Private Employment (Employees) 1,511 1,511 1,822 2,000 2,093 2,230 2,230 2,230 2,230 2,230 2,230 Dwelling Units 0 0 0 120 370 600 600 600 600 600 600 Retail Commercial (SF) 680,000 680,000 760,000 840,000 882,000 882,000 882,000 882,000 882,000 882,000 882,000 Hotel (Acres) 0.0 0.0 3.1 3.1 3.1 6.3 6.3 6.3 6.3 6.3 6.3 Residential Land (Acres) 0.0 0.0 0.0 5.3 16.5 26.7 26.7 26.7 26.7 26.7 26.7 Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 315 Revenue Annual Revenues Factors Revenue Adjustment Factor 115% 115% 115% 115% 115% 115% 115% 115% 115% 115% 115% Population(Persons) $3.86 $0 $0 $0 $1,390 $4,285 $6,949 $6,949 $6,949 $6,949 $6,949 $6,949 Private Employment (Employees) $19.45 $33,780 $33,780 $40,732 $44,706 $46,792 $49,851 $49,851 $49,851 $49,851 $49,851 $49,851 Dwelling Units $3.60 $0 $0 $0 $496 $1,530 $2,480 $2,480 $2,480 $2,480 $2,480 $2,480 Retail Commercial (SF) $0.07 $53,783 $53,783 $60,110 $66,438 $69,760 $69,760 $69,760 $69,760 $69,760 $69,760 $69,760 Commercial (Acres) $839.44 $0 $0 $2,998 $2,998 $2,998 $6,077 $6,077 $6,077 $6,077 $6,077 $6,077 Residential Land (Acres) $1,600.36 $0 $0 $0 $9,821 $30,281 $49,104 $49,104 $49,104 $49,104 $49,104 $49,104 Property Taxes $138,145 $138,145 $138,283 $176,495 $230,995 $313,608 $407,175 $408,780 $410,869 $413,418 $416,409 Property Transfer Taxes $0 $3,572 $3,643 $27,095 $37,589 $54,944 $63,809 $15,083 $15,385 $15,693 $16,006 MVLF Revenues $98,533 $98,632 $125,887 $164,759 $223,684 $290,422 $291,567 $293,056 $294,875 $297,008 $299,444 Sales and Use Tax $1,681,637 $1,837,973 $2,054,379 $2,273,484 $2,386,841 $2,392,297 $2,392,297 $2,392,297 $2,392,297 $2,392,297 $2,392,297 Transient Occupancy Tax $0 $0 $378,140 $529,396 $529,396 $917,756 $1,073,100 $1,073,100 $1,073,100 $1,073,100 $1,073,100 Total Annual Revenues $2,005,878 $2,165,884 $2,804,172 $3,297,078 $3,564,151 $4,153,248 $4,412,169 $4,366,538 $4,370,747 $4,375,737 $4,381,478 Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 315 Mt, 11 Table A -19 Net Fiscal Impacts FC2 Amendment CPI ( San Diego Area)' 265.25 242.27 Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2015 Dollar Inflation Factor 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 Total Expenditures $1,181,099 $1,181,099 $1,366,202 $1,631,904 $1,968,914 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 Total Revenues $2,196,150 $2,371,333 $3,070,167 $3,609,828 $3,902,236 $4,547,213 $4,830,694 $4,780,735 $4,785,342 $4,790,806 $4,797,091 Net Fiscal Impacts (2015 Dollars) $1,015,051 $1,190,234 $1,703,965 $1,977,925 $1,933,322 $2,287,966 $2,571,447 $2,521,488 $2,526,095 $2,531,559 $2,537,844 'Bureau of Labor Statistics. 2015 Approximated using mid -2014 San Diego CPI Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 316 Appendix B Original Plan 2015 -05 -26 Agenda Packet Page 317 :, .,�yzc, Adv 5r. A0. Table B -1 Proposed Land Uses Hotels (Rooms) Approved SPA Land Use 0.0 Single Family Residential Units 0 Multi - Family Residential Units 0 MF Attached - For Sale Townhomes 0 MF Attached - Rental Apartments 0 Retail Commercial Square Feet (SF)' 1,214,000 (120.70 Ac.) Hotels (Rooms) 0 Parks 0.0 CPF 0.00 School 0.0 Subtotal Developed Acres 120.7 Open Space 0 Preserve 0 Other Acres/ROW 0 Total Acres 120.7 Population Multi Family Persons/DUt7G 2.61 0 Total Est. Population 0 Employment Retail SF/Emp 450 2,698 Hotel Employees per Room 0.90 0 Total Est. Employment 2,698 Mixed Use retail acreage is included with residential Source: Baldwin and Sons, City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 318 Table B -2 Proposed Land Uses Original Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Land Use Program Land Use Multi - Family Residential Units (Includes Multi -Use Residential) 0 0 0 0 0 0 0 0 0 0 0 MF Attached Townhomes 0 0 0 0 0 0 0 0 0 0 0 MF Attached Apartments 0 0 0 0 0 0 0 0 0 0 0 Mixed Use (Attached) 0 0 0 0 0 0 0 0 0 0 0 SF Acres 0 0 0 0 0 0 0 0 0 0 0 MF Acres 0 0 0 0 0 0 0 0 0 0 0 Retail Commercial SF 680,000 680,000 760,000 887,000 1,064,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 Freeway Commercial - Parcel 1 680,000 680,000 760,000 840,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 Freeway Commercial - Parcel 2 0 0 0 47,000 197,000 347,000 347,000 347,000 347,000 347,000 347,000 Retail Commercial Acres 67.6 67.6 75.6 88.2 105.8 120.7 120.7 120.7 120.7 120.7 120.7 Hotel Rooms 0 0 0 0 0 0 0 0 0 0 0 Hotel Acres 0 0 0 0 0 0 0 0 0 0 0 Parks 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CPF 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 School 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Acres 67.6 67.6 75.6 88.2 105.8 120.7 120.7 120.7 120.7 120.7 120.7 Cumulative Population Multi Family Persons /DU@ 2.6 0.0 0.0 0.0 0 0 0 0 0 0 0 0 Total Est. Population 0.0 0.0 0.0 0 0 0 0 0 0 0 0 Employment Retail SF /Emp@ 450 1,511 1,511 1,689 1,971 2364 2,698 2,698 2,698 2,698 2,698 2,698 Hotel Employees per Room 0.9 0 0 0 0 0 0 0 0 0 0 0 Total Est. Employment 1,511 1,51 1 1,689 1,971 2,364 2,698 2,698 2,698 2,698 2,698 2,698 Source: Baldwin and Sons and HR &A Advisors 2015 -05 -26 Agenda Packet Page 319 HP&A Table B -3 Chula Vista - Expenditure Real Inflation Adjustment' 2005 2006 2007 2008 2009 Population Households City Staff Revenues (Actuals) Expenditures (Actuals) CPI (San Diego Area) Expenditure/Capita Revenues /Capita 2009 CPI Adjustment Factor Exp/Cap in 2009 Dollars Rev /Cap in 2009 Dollars Expenditure Adjustment Factor Revenue Adjustment Factor (Relative to 2009 Levels) Provided by the City of Chula Vista Source: City of Chula Vista and HR &A Advisors 216,961 223,604 227,850 231,157 234,011 70,916 73,365 74,527 75,259 75,752 1,169 1,227 1,264 1,249 1,1 1 0 $137,763,583 $157,809,965 $161,564,721 $153,938,093 $140,502,938 $142,195,531 $160,826,968 $166,056,406 $155,021,736 $140,365,277 220.6 228.1 233.3 242.3 242.3 $655.40 $719.25 $728.80 $670.63 $599.82 $634.97 $705.76 $709.08 $665.95 $600.41 1.10 1.06 1.04 1.00 1.00 $719.87 $764.02 $756.91 $670.63 $599.82 $697.43 $749.69 $736.44 $665.95 $600.41 120% 127% 126% 112% 100% 116% 125% 123% 111% 100% 2015 -05 -26 Agenda Packet Page 320 Table B4 Chula Vista Estimated Commercial Assessed Value Commercial Land Uses Retail Source: Loopnet, RERC Real Estate Cap Rate Report, and HR &A Advisors Building Mo. Rent NNN /5F Efficiency Occupancy Rate $1.85 90% 95% r.iw ASl. Admin /Vacancy Assessed Cost Net Income /5F Cap Rate Value Per 5F 5% $18.03 7.5% $240.43 2015 -05 -26 Agenda Packet Page 321 I M 4 9MIL Table B-5 Projected Program Assessed Value I The assessed value of existing retail square feet in Year 0 is based on reported assessed values for these properties. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 322 Original Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 01 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Est. Assessed Value Cumulative Program Assessed Value Per Unit (Millions $) Land Use MF Attached T- nhomes $325,000 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total For Sale Product 0 0 0 0 0 0 0 0 0 0 0 Rental Residential - MF Attached Apartments $246,000 0 0 0 0 0 0 0 0 0 0 Retail Commercial SF' $240 130 130 149 180 222 258 258 258 258 258 258 Hotel (Rooms) $146,100 0 0 0 0 0 0 0 0 0 0 0 Total Income Generating Product $129.9 $129.9 $149.1 $179.6 $222.2 $258.3 $258.3 $258.3 $258.3 $258.3 $258.3 Total Assessed Value $129.9 $129.9 $149.1 $179.6 $222.2 $258.3 $258.3 $258.3 $258.3 $258.3 $258.3 I The assessed value of existing retail square feet in Year 0 is based on reported assessed values for these properties. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 322 i Table B -6 Citywide Cost Factors by Function /Department' IAll Cost Factors and Subtotal Cost factors provided by the City Source: City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 323 Land Uses Population Retail Office Hotel Industrial Parks ( per acre) Public Use Open Space Other Residential (Per Person) (Per Acre) (Per Acre) (Per Acre) (Per Acre) Private Public (Per Acre) (Per Acre) (Per Acre) (Per DU) Legislative and Administration City Council $2.00 Boards and Commissions City Clerk $1.37 City Attorney $80.11 $86.52 $51.21 $21.13 $12.1 1 Administration $0.29 $0.35 Management and Information Services $4.60 Human Resources Development and Maintenance Services Economic Development Function $0.00 $301.43 $325.55 $192.68 $79.51 $0.00 Planning and Building Services $0.00 $203.44 $219.57 $130.70 $55.00 $31.70 $30.69 Engineering $274.44 $145.29 $64.57 $27.44 $15.53 $16.85 $3.07 Public Works $5,914.17 $3,131.03 $1,391.57 $591.42 $69.58 $347.89 $347.89 $68.43 General Services Public Safety Police (Excluding Residential) $11.01 $6,836.27 $6,836.27 $6,836.27 $1,006.09 $2,202.49 $2,202.49 $2,202.49 Fire (Excluding Residential) $1.05 $2,917.22 $2,917.22 $2,917.22 $396.88 $160.46 $160.46 $160.46 $160.46 $160.46 Culture and Leisure Parks and Recreation $18.90 Library $37.32 $4.77 Nature Center Sub -Total Unit Cost $76.53 $16,527.08 $13,661.45 $11,584.21 $2,177.48 $160.46 $2,448.06 $2,710.85 $160.46 $2,759.40 $119.40 Acre to SF Density Adjustment Factors 0.00008 Total - Density Adjusted Unit Costs $76.53 $1.36 $13,661.45 $11,584.21 $2,177.48 $160.46 $2,448.06 $2,710.85 $160.46 $2,759.40 $119.40 IAll Cost Factors and Subtotal Cost factors provided by the City Source: City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 323 HIS, m.a,,,_,, Table B -7 Expenditure Summary (2009 $) Original Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expense Drivers Unit Cost Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Dwelling Units 0 0 0 0 0 0 0 0 0 0 0 Population 0 0 0 0 0 0 0 0 0 0 0 Retail (SF) 680,000 680,000 760,000 887,000 1,064,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 Hotel Acres 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Park Acres 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Expenditure Adjustment Factor 117% 117% 117% 117% 117% 117% 117% 117% 117% 117% 117% Retail (SF) $1.36 $1,078,770 $1,078,770 $1,205,684 $1,407,160 $1,687,958 $1,925,921 $1,925,921 $1,925,921 $1,925,921 $1,925,921 $1,925,921 Hotel (Acres) $11,584.21 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Park (Acres) $160.46 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Population (Persons) $76.53 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Expenditures Allocated to DUs (excluding Public Safety) $119.40 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Safety Costs Allocated to DUs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Est. Annual Expenditures (2009 Dollars) $1,078,770 $1,078,770 $1,205,684 $1,407,160 $1,687,958 $1,925,921 $1,925,921 $1,925,921 $1,925,921 $1,925,921 $1,925,921 Source: HR &AA&isors 2015 -05 -26 Agenda Packet Page 324 4 Table B -8 City of Chula Vista - Discretionary Revenues (Based on the FY 2009 Amended Budget) Non - Departmental Revenue Categories Discretionary Revenues Program Revenues Net Revenues Revenue Distribution 2015 -05 -26 Agenda Packet Page 325 Amended Budget 2009 (Estimate) Fixed Revenues Variable Revenues Property Taxes Current Taxes - Secured $28,363,165 $28,363,165 $28,363,165 State Secured - Unitary $300,000 $300,000 $300,000 Current Taxes - Unsecured $979,200 $979,200 $979,200 Delinquent Taxes $590,000 $590,000 $590,000 Subtotal $30,232,365 $0 $30,232,365 $0 $30,232,365 Other Local Taxes Sales and Use Taxes $29,677,977 $29,677,977 $29,677,977 Franchise Fees $8,732,093 $8,732,093 $8,732,093 Utility Taxes $7,122,095 $7,122,095 $7,122,095 Business License Tax $1,322,847 $1,322,847 $1,322,847 Transient Occupancy Taxes $2,752,514 $2,752,514 $2,752,514 Real Property Transfer Tax $841,402 $841,402 $841,402 Subtotal $50,448,928 $0 $50,448,928 $0 $50,448,928 Use of Money and Property Subtotal $4,163,212 $0 $4,163,212 $4,163,212 $0 Revenues from other Agencies Sales Tax: Public Safety Augment $875,347 $875,347 $875,347 State Homeowners Property Tax Relief $282,800 $282,800 $282,800 State Motor Vehicle Licenses $20,215,866 $20,215,866 $20,215,866 Other Revenues from other Agencies $4,324,532 $4,324,532 $4,324,532 Subtotal $25,698,545 $25,698,545 $25,698,545 Charges for Services' Subtotal $8,854,774 $0 $8,854,774 $8,854,774 $0 Other Revenues (less CIP)z Subtotal $10,580,609 $0 $10,580,609 $10,580,609 $0 Transfers In Subtotal $12,272,473 $0 $12,272,473 $12,272,473 $0 Total Discretionary Revenues (Less CIP Transfers) $142,250,906 $0 $142,250,906 $35,871,068 $106,379,838 Includes Licenses and Permits 2Other Revenue excludes funds from the CIP fund. Fines, Forfeitures, and Penalties are included in this category. Source: City of Chula Vista 2015 -05 -26 Agenda Packet Page 325 Table B -9 Chula Vista - Other Discretionary Revenue Allocation Factors (Based on 2009 Information) 2009 Citywide Conditions Population 226,694 Dwelling Units 78,615 Employees 71,153 Land Uses Developed Acres Employees (estimated) AV Share (Estimates) Commercial (Retail and Office) 2,048 46,842 25% Industrial 917 21,162 8% Residential 9,565 $68.59 Acres 67% Subtotal Taxable 12,530 68,004 $72.01 Acres Other (Parks, Public/Quasi- public, Open Space) 7,171 3,149 25% Total 19,702 71,153 Industrial AV Incremental Revenue Factors by Development Unit $979,200 Commercial AV 25% $119.51 Acres Revenue Category 2009 Revenues Allocation Method Share Allocation Units Property Taxes $3.60 Residential AV 67% $68.59 Acres Current Taxes - Secured $28,363,165 Calculated Separately 25% $72.01 Acres State Secured - Unitary $300,000 Commercial AV 25% $36.61 Acres Industrial AV 8% $26.17 Acres Other Local Taxes Residential AV 67% $21.01 Acres Current Taxes - Unsecured $979,200 Commercial AV 25% $119.51 Acres $282,800 Dwelling Units $3.60 DU State Motor Vehicle Licenses Industrial AV 8% $85.42 Acres Residential (DU) $3.60 Residential AV 67% $68.59 Acres Delinquent Taxes $590,000 Commercial AV 25% $72.01 Acres Industrial AV 8% $51.47 Acres Residential AV 67% $41.33 Acres Other Local Taxes Sales and Use Taxes $29,677,977 Calculated Separately Franchise Fees' $8,732,093 Commercial Land 7% $298.40 Acres Industrial Land 3% $285.66 Acres Residential Land 90% $821.63 Acres Utility Taxes' with Adjustment $7,122,095 Commercial Land 9% $312.92 Acres Industrial Land 4% $310.65 Acres Residential Land 87% $647.80 Acres Business License Tax $1,322,847 Employees (Non - Public) $19.45 Employees Transient Occupancy Taxes $2,752,514 Not Included Real Property Transfer Tax $841,402 Calculated Separately Revenues from Other Agencies Sales Tax: Public Safety Augment $875,347 People $3.86 Person State Homeowners Property Tax Relief $282,800 Dwelling Units $3.60 DU State Motor Vehicle Licenses $20,215,866 Calculated Separately Total Discretionary Revenues $102,055,306 Summary of Other Discretionary Revenue Factors Commercial (Acres) $839.44 Retail Commercial (SF) $0.07 Industrial (Acres) $759.37 Residential (Acres) $1,600.36 Residential (DU) $3.60 Employees $19.45 Population $3.86 1 As presented in SPA Fiscal Impact Framework, allocation share by land use based on FIND model estimates Source: City of Chula Vista and HR &A Advisors 2015 -05 -26 Agenda Packet Page 326 i i Table B -10 Property Tax Estimate Commercial and Rental Residential Product $129.9 $130.0 Original Plan $183.1 $229.7 $270.3 $271.3 $272.6 $274.1 Year Property First Sold: $277.8 Less Base Assessed Value 0.0 0.0 2014 2015 2016 2017 (33.7) 2018 2019 2020 2021 2022 2023 2024 $132.5 $133.3 $134.3 Year 0 Year 1 Year 2 Year 3 $0.00 $0.0 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $0.0 Annual For Sale Product AV (Millions) Yr 2 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Annual Income Generating Product AV (Millions) $32.4 $129.9 $0.0 $19.2 $30.5 $42.6 $36.1 $0.0 $0.0 $0.0 $0.0 $0.0 Appreciation Factor: Annual Rate Year 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Real Appreciation Rate 2.00% 100% 102% 104% 106% 108% 110% 113% 115% 1 17% 120% 122% Proposition 13 AV Limitation less Inflation of 2% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Residential Annual Turnover Rate 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Commercial Turnover Rate 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Commercial and Rental Residential Product $129.9 $130.0 $150.3 $183.1 $229.7 $270.3 $271.3 $272.6 $274.1 Year Property First Sold: $277.8 Less Base Assessed Value 0.0 0.0 (5.0) (72.8) (23.8) (33.7) (33.7) Yr0 $129.9 $130.0 $130.3 $130.6 $131.1 $131.8 $132.5 $133.3 $134.3 $135.3 $136.5 Yr 1 $0.00 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Yr 2 $20.01 $20.0 $20.1 $20.1 $20.2 $20.3 $20.4 $20.5 $20.7 Yr 3 $138,283 $32.40 $32.4 $32.5 $32.6 $32.7 $32.9 $33.1 $33.3 Yr 4 $46.06 $46.1 $46.2 $46.3 $46.5 $46.7 $47.0 Yr 5 $39.82 $39.9 $39.9 $40.1 $40.2 $40.4 Yr 6 $0.00 $0.0 $0.0 $0.0 $0.0 Yr 7 $0.00 $0.0 $0.0 $0.0 Yr 8 $0.00 $0.0 $0.0 Yr 9 $0.00 $0.0 Yr 10 $0.00 Commercial and Rental Residential Assessed Value (Millions) $129.9 $130.0 $150.3 $183.1 $229.7 $270.3 $271.3 $272.6 $274.1 $275.8 $277.8 Total Assessed Value (Residential and Commercial) (Millions) $129.9 $130.0 $150.3 $183.1 $229.7 $270.3 $271.3 $272.6 $274.1 $275.8 $277.8 Less Base Assessed Value 0.0 0.0 (5.0) (72.8) (23.8) (33.7) (33.7) (33.7) (33.7) (33.7) (33.7) Incremental AV (Residential and Commercial) (Millions) $129.9 $130.0 $145.3 $170.2 $205.9 $237.2 $238.2 $239.5 $241.0 $242.7 $244.7 Total Incremental Property Taxes Collected' 1.00% $1,298,801 $1,298,801 $1,300,100 $1,453,142 $1,702,370 $2,058,892 $2,371,825 $2,382,096 $2,394,762 $2,409,762 $2,427,037 Property Tax Share to the City 10.64% $138,145 $138,145 $138,283 $154,561 $181,070 $218,990 $252,275 $253,367 $254,715 $256,310 $258,147 'With a year lag to account for property tax receipt to the City. Given the Otay Ranch Town Center is built, property tax for this parcel is included in Year 0. Source: HRBA Advisors 2015 -05 -26 Agenda Packet Page 327 Table B -11 Annual Property Transfer Tax Estimate Oriainal Plan Annual For Sale Product AV (Millions) Annual Income Generating Product AV (Millions) Appreciation Factor: Annual Rate Real Appreciation Rate 2.00% Residential Annual Turnover Rate 10% Commercial Turnover Rate 5% For Sale Residential Property Transfer Taxes Commercial and Rental Residential Product Year Property First Sold: a W-N, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $129.9 $0.0 $19.2 $30.5 $42.6 $36.1 $0.0 $0.0 $0.0 $0.0 $0.0 Year 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 100% 102% 104% 106% 108% 110% 113% 115% 117% 120% 122% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Yr 0' $3,572 $3,643 $3,716 $3,790 $3,866 $3,943 $4,022 $4,103 $4,185 $4,269 $4,354 Yr1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Yr2 $11,006 $561 $573 $584 $596 $608 $620 $632 $645 Yr 3 $17,822 $909 $927 $946 $965 $984 $1,004 $1,024 Yr 4 $25,335 $1,292 $1,318 $1,344 $1,371 $1,399 $1,427 Yr 5 $21,900 $1,117 $1,139 $1,162 $1,185 $1,209 Yr6 $0 $0 $0 $0 $0 Yr 7 $0 $0 $0 $0 Yr 8 $0 $0 $0 Yr 9 $0 $0 Yr 10 $0 Commercial and Rental Residential Property Transfer Tax $3,572 $3,643 $14,722 $22,173 $30,682 $28,646 $7,998 $8,158 $8,322 $8,488 $8,658 Total Annual Property Taxes to the City $3,572 $3,643 $14,722 $22,173 $30,682 $28,646 $7,998 $8,158 $8,322 $8,488 'The model accounts for only the property transfer tax annual allocation for the developed FC1 parcel. Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 328 Table &12 Motor Vehicle License Fee Estimates VLF Revenues' 2009 Population of the City 226,691 2009 Allocation of the 0.65% $1,328,857 Original Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Motor Vehicle In Lieu Fee (MVLF) Adjustment Base Year (2004) Assessed Valuation of the City (Millions) $15,596 Base Year (2004) Motor Vehicle In Lieu Fee Adjustment (MVLF) (Millions) $11.8 Cumulative AV of New Development (Millions) $129.9 $130.0 $150.3 $183.1 $229.7 $270.3 $271.3 $272.6 $274.1 $275.8 $277.8 AV Adjustment of Base Value (Millions) $0.0 $0.0 ($5.0) ($12.8) ($23.8) ($33.1) ($33.1) ($33.1) ($33.1) ($33.1) ($33.1) Adjusted Cumulative AV Development (Millions) $130 $130 $145 $170 $206 $237 $238 $239 $241 $243 $245 Cumulative Citywide AV Growth (Millions) $15,726 $15,726 $15,742 $15,766 $15,802 $15,833 $15,834 $15,836 $15,837 $15,839 $15,841 Percent Increase in AV 0.83% 0.83% 0.93% 1.09% 1.32% 1.52% 1.53% 1.54% 1.55% 1.56% 1.57% Cumulative MVLF generated by the Project $98,533 $98,632 $110,242 $129,150 $156,197 $179,938 $180,717 $181,678 $182,816 $184,126 $185,606 Total Annual MVLF Fees $98,533 $98,632 $110,242 $129,150 $156,197 $179,938 $180,717 $181,678 $182,816 $184,126 $185,606 ' As presented in the SPA Fiscal Impact Framework Source: City of Chula Vista and HR&A Advisors 2015 -05 -26 Agenda Packet Page 329 i "8111 Table &13 Estimated Onsite Retail Sales Tax Occupied GLA Original Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 793,175 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Retail Absorption (Square Feet) 296,685 296,685 Taxable Sales Estimate PC 1 Site - Oray Ranch Town Center - Regional /Superregional 680,000 680,000 760,000 840,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 PC 2 Site Retail 0 0 0 47,000 197,000 347,000 347,000 347,000 347,000 347,000 347,000 Gross Leasable Area Building Efficiency $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 PC 2 Site Taxable Sales Taxables Sales PSF PC 1 Site - Oray Ranch Town Center 96% 654,840 654,840 731,880 808,920 834,921 834,921 834,921 834,921 834,921 834,921 834,921 PC 2 Site Retail - Neighborhood /Community Center 90% 0 0 0 42,300 177,300 312,300 312,300 312,300 312,300 312,300 312,300 Occupied GLA Occupancy Rate PC 1 Site - Oray Ranch Town Center 95% 622,098 622,098 695,286 768,474 793,175 793,175 793,175 793,175 793,175 793,175 793,175 PC 2 Site Retail - Neighborhood /Community Center 95% 0 0 0 40,185 168,435 296,685 296,685 296,685 296,685 296,685 296,685 Taxable Sales Estimate FC1 Site Taxable Sales Est.Taxables Sales PSF PC 1 -Site - Oray Ranch Town Center $270.00 $167,966,460 $183,600,000 $205,200,000 $226,800,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 $234,090,000 PC 2 Site Taxable Sales Taxables Sales PSF PC 2 Site Proposed Project $270.00 $0 $0 $0 $10,849,950 $45,477,450 $80,104,950 $80,104,950 $80,104,950 $80,104,950 $80,104,950 $80,104,950 Total Taxable Retail Sales $167,966,460 $183,600,000 $205,200,000 $237,649,950 $279,567,450 $314,194,950 $314,194,950 $314,194,950 $314,194,950 $314,194,950 $314,194,950 Annual Sales Taxes to the City @ 1% $1,679,665 $1,836,000 $2,052,000 $2,376,500 $2,795,675 $3,141,950 $3,141,950 $3,141,950 $3,141,950 $3,141,950 $3,141,950 Source: HR&A Advisors 2015 -05 -26 Agenda Packet Page 330 Table B -14 Estimated Whit, RMail Sales Tax Average Ea. HH I.-' Multi Family Units For Sole Townhouses $78,000 Rent.I Ap.nments $68,000 Origi.al Pla. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Households Multi Family Units For Sole Townhouses 80% 80% 70% 60% 30% 0 0 0 0 0 0 0 0 0 0 0 MF Aff-hed 0 0 0 0 0 0 0 0 0 0 0 Total Unirs $1,175 0 0 0 0 0 0 0 0 0 0 0 Employees 1,511 1,511 1,689 1,971 2,364 2,698 2,698 2,698 2,698 2,698 2,698 Aggregate HH Income 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Average An nu.I l ncome/HH 5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Countywide Income /HH2 $83,935 0 0 0 0 0 0 0 0 0 0 0 Countywide Retail E.p /HH3 $36,583 0 0 0 0 0 0 0 0 0 0 0 Retail Ezpenditure /HH Adj. F.C., FC SPA 10% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Project Avg. Retail Ezpenditure /HH $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Gross Retail Soles from Project 80% $142,044 $142,044 $158,756 $185,284 $222,258 $253,591 $253,591 $253,591 $253,591 $253,591 $253,591 Neghb -h.od Center 33% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Community Center 20% 0 0 0 0 0 0 0 0 0 0 0 Regional Center 4% 0 0 0 0 0 0 0 0 0 0 0 Super Region. l Center 7° /u 0 0 0 0 0 0 0 0 0 0 0 Other Centers 36% 0 0 0 0 0 0 0 0 0 0 0 Off Site Shore 64% $90,908 $90,908 $101,604 $118,582 $142,245 $162,298 $162,298 $162,298 $162,298 $162,298 $162,298 Neghb -h.od Center 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Community Center 20% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Regional Center 30% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Super Region. l Center 30% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Centers 10% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Chul. Via. C.pture Neghb -h.od Center Community Center Regional Center Super Region. I Center Other Centers 80% 80% 70% 60% 30% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Gross Retail Soles from SPA Employees Annul Ezpenditure /Employee $1,175 Offiste Spending Neghb -h.od Center 10% $W,556 $1T,556 $198,444 $231,606 $2T,822 $316,989 $316,989 $316,989 $316,989 $316,989 $316,989 Community Center 5% 88,m 88,T 8 99,222 115,803 138,911 158,494 158,494 158,494 158,494 158,494 158A94 Regional Center 0% 0 0 0 0 0 0 0 0 0 0 0 Super Regional Center 0% 0 0 0 0 0 0 0 0 0 0 0 Other Centers 10% 1T ,556 177,556 198,444 231,606 2T ,822 316,989 316,989 316,989 316,989 316,989 316,989 Chul. Via. C.pture Neghb -h.od Center 80% $142,044 $142,044 $158,756 $185,284 $222,258 $253,591 $253,591 $253,591 $253,591 $253,591 $253,591 Community Center 80% $71,022 $71,022 $79,378 $92,642 $111,129 $126,796 $126,796 $126,796 $126,796 $126,796 $126,796 Regional Center 70% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Super Regional Center 60% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Centers 30% $53,267 $53,267 $59,533 $69,482 $83,347 $95,097 $95,097 $95,097 $95,097 $95,097 $95,097 T... ble Retail Soles % T ... ble Neghb -h.od Center 64% $90,908 $90,908 $101,604 $118,582 $142,245 $162,298 $162,298 $162,298 $162,298 $162,298 $162,298 Community Center T7% $54,687 $54,687 $61,121 $71,335 $85,569 $97,633 $97,633 $97,633 $97,633 $97,633 $97,633 Regional Center 97% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Super Region. l Center 100% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Centers 97% $51,669 $51,669 $57,747 $67,397 $80,846 $92,244 $92,244 $92,244 $92,244 $92,244 $92,244 Tot.1 T... ble Retail Soles $197,264 $197,264 $220,472 $257,314 $308,660 $352,175 $352,175 $352,175 $352,175 $352,175 $352,175 Annu.I Sales T.-to the City@ 1% $1,973 $1,972.64 $2,205 $2,573 $3,087 $3,522 $3,522 $3,522 $3,522 $3,522 $3,522 'DeH -d! b.sed on estimme of rent.l mte .s 32% of income �A-i- Community Survey 2009 3Bo. rd of Equ.Iizmion 2009 Annul Dm. per county mpit. Source: City of Chul. Via. ..d HRBA Advisors 2015 -05 -26 Agenda Packet Page 331 16A Table B -15 Revenue Summary (2009 $) Original Plan 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Revenue Drivers Population(Persons) 0 0 0 0 0 0 0 0 0 0 0 Private Employment (Employees) 1,511 1,511 1,689 1,971 2,364 2,698 2,698 2,698 2,698 2,698 2,698 Dwelling Units 0 0 0 0 0 0 0 0 0 0 0 Retail Commercial (SF) 680,000 680,000 760,000 887,000 1,064,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 1,214,000 Hotel (Acres) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Residential Land (Acres) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Revenue Annual Revenues Factors Revenue Adjustment Factor 115% 115% 115% 115% 115% 115% 115% 115% 115% 115% 115% Population(Persons) $3.86 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Private Employment (Employees) $19.45 $33,780 $33,780 $37,754 $44,063 $52,856 $60,307 $60,307 $60,307 $60,307 $60,307 $60,307 Dwelling Units $3.60 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Retail Commercial (SF) $0.07 $53,783 $53,783 $60,110 $70,155 $84,155 $96,018 $96,018 $96,018 $96,018 $96,018 $96,018 Commercial (Acres) $839.44 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Residential Land (Acres) $1,600.36 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Property Taxes $138,145 $138,145 $138,283 $154,561 $181,070 $218,990 $252,275 $253,367 $254,715 $256,310 $258,147 Property Transfer Taxes $0 $3,572 $3,643 $14,722 $22,173 $30,682 $28,646 $7,998 $8,158 $8,322 $8,488 MVLF Revenues $98,533 $98,632 $110,242 $129,150 $156,197 $179,938 $180,717 $181,678 $182,816 $184,126 $185,606 Sales and Use Tax $1,681,637 $1,837,973 $2,054,205 $2,379,073 $2,798,761 $3,145,471 $3,145,471 $3,145,471 $3,145,471 $3,145,471 $3,145,471 Transient Occupancy Tax $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Annual Revenues $2,005,878 $2,165,884 $2,404,237 $2,791,724 $3,295,212 $3,731,408 $3,763,435 $3,744,841 $3,747,486 $3,750,555 $3,754,038 Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 332 W M� Table B -16 Net Fiscal Impacts FC2 Amendment CPI ( San Diego Area)' 265.25 242.27 Original Plan 'Bureau of Labor Statistics. 2015 Approximated using mid -2014 San Diego CPI Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 333 2014 Year 0 2015 Year 1 2016 Year 2 2017 Year 3 2018 Year 4 2019 Year 5 2020 Year 6 2021 Year 7 2022 Year 8 2023 Year 9 2024 Year 10 2014 Dollar Inflation Factor 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 Total Expenditures $1,181,099 $1,181,099 $1,320,051 $1,540,639 $1,848,072 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 $2,108,609 Total Revenues $2,196,150 $2,371,333 $2,632,296 $3,056,538 $3,607,785 $4,085,358 $4,120,423 $4,100,065 $4,102,961 $4,106,321 $4,110,135 Net Fiscal Impacts (2015 Dollars) $1,015,051 $1,190,234 $1,312,245 $1,515,899 $1,759,713 $1,976,749 $2,011,815 $1,991,456 $1,994,352 $1,997,713 $2,001,526 'Bureau of Labor Statistics. 2015 Approximated using mid -2014 San Diego CPI Source: HR &A Advisors 2015 -05 -26 Agenda Packet Page 333 PA -12 FREEWAY COMMERCIAL NORTH (FC2) AMENDMENT Appendix D: Commercial Lands Analysis 2015 -05 -26 Agenda Packet Page 334 ADVISORS IN: REAL ESTATE AFFORDABLE HOUSING ECONOMIC DEVELOPMENT MEMORANDUM Nick Lee, PE Baldwin & Sons /SunRanch Capital Partners, LLC KEYSER MARSTON ASSOCIATES, INC. March 12, 2015 LOS ANGELES To: SAN FRANcIsco A.IERRY KEYSER Subject: Commercial Market Overview Update TIMOTHYC. KELLY KATE EARLE FUNK Otay Ranch PA -12 DEBBIE M. KERN From: REED T. KAWAHARA DAVID DOEZEMA Date: MEMORANDUM Nick Lee, PE Baldwin & Sons /SunRanch Capital Partners, LLC KEYSER MARSTON ASSOCIATES, INC. March 12, 2015 LOS ANGELES KATHLEEN H. HEAD ;Ati,ES A. RABE Subject: Commercial Market Overview Update GREGORY D. Soo- Hoo KEVIN E. ENGSTROti, Otay Ranch PA -12 JULIE L. ROMEY SAN DIEGO PAUL C. MARRA I. INTRODUCTION A. Background Per our agreement dated January 19, 2015, Keyser Marston Associates, Inc. (KMA) has completed an update of our commercial market overview for Baldwin & Sons and SunRanch Capital Partners, LLC's (Owners') Olympic Parkway property in the City of Chula Vista (City). As background, the subject property is the approximately 35 -acre Parcel FC -2 (Property) located directly north of the existing Otay Ranch Town Center. The Property is bounded by Olympic Parkway on the north, Eastlake Parkway on the east, and State Route (SR) 125 on the west. The Property is currently vacant and designated "Freeway Commercial" per the Otay Ranch Freeway Commercial Sectional Planning Area Plan (SPA Plan) adopted in 2003. This designation allows approximately 350,000 square feet (SF) of commercial space. The Owners propose to amend the SPA Plan to allow development of approximately 600 residential units and a two -acre park. The Owners propose to develop the balance of the Property with two hotels comprising 300 rooms and 15,000 SF of mixed -use retail space; both of these components are compatible with the existing entitlements. City staff has expressed concerns about the 2015 -05 -26 Agenda Packet Page 335 potential loss of commercial land inventory as a result of the proposed amendment. In response to these concerns, the KMA commercial market overview evaluates the current (and anticipated) supply of retail space /commercial land in the trade area relative to current (and anticipated) demand. The findings contained in this commercial market overview with respect to the demand for commercial land uses are specific to the evaluation of development on the Property. This commercial market overview was commissioned to assist the City in evaluating the feasibility of a proposed project containing two hotels and a mixed -use project on the Property. The findings contained in the commercial market overview are specific to the Property. As such, they are not subject to be used to draw conclusions or make inferences with respect to formulating future recommendations regarding changes to existing commercial land uses within the City. B. KMA Approach In completing the commercial market overview, KMA undertook the following tasks: 1. Reviewed the existing SPA Plan land use designations and proposed amendments. 2. Toured the Property and competitive commercial properties in the trade area. 3. Compiled information on current and projected demographic factors from multiple sources. 4. Collected and reviewed available commercial and residential market data for the trade area. 5. Reviewed the City's extensive database on built and planned commercial and residential developments in the trade area. 6. Prepared a retail sales surplus /(leakage) model and a projection of retail space demand resulting from buildout of planned developments in the trade area. 7. Assessed the need for commercial development on the Property to serve the anticipated demand in the trade area. C. Report Organization This memorandum report has been organized as follows: • Following this introduction, Section II summarizes our key findings. • In Section III, KMA reviews the existing situation in the trade area in terms of demographic factors and retail sales surplus /(leakage). • Section IV presents the KMA retail space demand projection. • In Section V, KMA evaluates the potential supply of retail space relative to anticipated demand. 2015 -05 -26 Agenda Packet Page 336 • Section VI presents limiting conditions pertaining to the commercial market overview. • Our detailed technical analysis is presented as a series of attachments. II. KEY FINDINGS 1. The trade area currently has a healthy balance between the supply of, and demand for, retail space. The Otay Ranch trade area, defined as a four -mile ring, currently experiences - leakage of approximately 19% of total potential retail sales. This level of leakage can be considered relatively minor, given that the trade area is dominated by suburban residential uses. Additionally, most trade area residents commute to work outside the trade area, and have access to extensive shopping, services, dining, and entertainment options in other communities. 2. The trade area currently experiences an extremely high "import" of General Merchandise sales, suggesting that it is already over - saturated with "big box" General Merchandise stores. Taken together, the Owners' plans to develop hotels and apartments on the Property reduce the retail building area from a maximum of 350,000 SF to 15,000 SF. The reduction of 335,000 SF would likely have accommodated two "big box' retailers, which are the typical retail formats found around the periphery of regional malls. 3. The total potential supply of retail space in the trade area through buildout exceeds total anticipated retail space demand, as summarized in the chart below. The KMA retail space demand projection considers demand from four sources: (a) new residents, (b) new workers, (c) new students /staff /faculty at the University Park and Innovation District (UPID), and (d) potential recapture of 20% of current retail sales leakage from the trade area. Supply Estimate of Retail Overl(Under) Trade Incremental Retail Space Demand 1,930,000 SF Incremental Retail Space Supply * 2,023,000 SF Over /(Under) Supply 93,000 SF * Assumes the proposed amendment for the Property with retail at 15,000 SF. 4. Although the Property is currently designated for community and /or regional serving commercial, there are numerous other locations in the trade area designated for similar uses The commercial land use designation encompasses a range of uses, including retail /restaurant /services, office space, and visitor commercial. For example, approximately 1.3 million SF of retail use and 3.2 million SF of office use are planned for the Millenia project 2015 -05 -26 Agenda Packet Page 337 (EUC) and Village Nine (adjacent to UPID). These districts are located one to two miles south of the Property. The Millenia and Village Nine locations also have SR 125 frontage and (future) Bus Rapid Transit (BRT) service. Both of these areas are planned as synergistic mixed -use districts combining residential, shopping, and employment uses in a walkable configuration. Shifting future retail demand from the Property to these newly developing communities will help support the City's vision for these districts. 5. It is the KMA view that the reduced amount of retail space that the Owners propose for the Property will be viable. This retail space will benefit from its configuration in a "main street" format along a key access route to the existing regional mall, as well as its proximity to the (future) BRT station. Moreover, the new apartment residents and hotel guests will drive additional retail demand for the Property. Taken together, the Property and Otay Ranch Town Center will form a mixed -use district — not unlike the concepts planned for Millenia and Village Nine. III. EXISTING SITUATION A. Demographic Trends The Property is located adjacent to a regional shopping mall. KMA evaluated existing land use patterns and competitive retail locations and determined that a trade area comprising a four -mile ring is appropriate. As shown in Exhibit A -1, the trade area encompasses most of eastern Chula Vista, a portion of Otay Mesa, and portions of the unincorporated County. The nearest competitive regional mall, Westfield Plaza Bonita, is located just to the northwest outside the trade area boundary. KMA compiled and reviewed current and projected demographic factors for the trade area, City of Chula Vista, County of San Diego, and State of California from ESRI, a supplier of Geographic Information System (GIS) software and geo- database applications. Demographic trends for these areas are detailed in Tables A -1 through A -3 and summarized below. • Table A -1 summarizes current demographic factors for the trade area, City, County, and State. The 2014 population of the trade area was estimated as 140,255, with a per capita income of $32,281. Aggregate personal income for the trade area was estimated to be approximately $4.5 billion. 2015 -05 -26 Agenda Packet Page 338 • Table A -2 presents recent historic growth trends, as well as a five -year projection. The trade area population grew rapidly during 2000 -2014, at an annualized rate of 5.2 %. During this period, the trade area growth rate significantly outpaced the City, County, and State. Slower growth is projected for all of these areas over the next five years, estimated at just 1.4% per year for the trade area. • Table A -3 presents median household and per capita income trends for 2014 -2019. With an estimated 2014 median household income of $92,883 and per capita income of $32,281, trade area residents are considerably more affluent than their counterparts at the City, County, and State level. B. Existing Retail Sales Surplus /(Leakage) Using ESRI data on existing household retail expenditures and retail outlet sales volumes, KMA prepared retail sales surplus /(leakage) models for the trade area and City. These models are presented in Tables A -4 and A -5 and summarized below. • Table A -4 presents a comparison of retail demand and supply, and resulting surplus /(leakage), for the trade area. ESRI estimates total retail expenditure potential (demand) in the trade area in 2014 of $1.1 billion, compared to total retail sales (supply) of $920 million. This results in a retail sales leakage of approximately ($220 million), as summarized below: Total Retail Expenditure Potential (Demand) $1,140,585,000 Total Retail Sales (Supply) $920,634,000 Total Retail Sales Surplus /(Leakage) ($219,951,000) Percent of Total Expenditure Potential -19.3% These figures reflect sales to consumers by retail establishments. Sales to businesses are excluded. Gasoline stations, non -store retailers, and motor vehicle and parts dealers have been excluded, as these types of stores are not likely uses for the Property. The trade area is largely a suburban "bedroom" community dominated by residential land use and supporting retail stores, restaurants, and services. Many residents commute to employment elsewhere in the County. Moreover, while there is an existing regional mall at the center of the trade area, it contains only one department store. Thus, many trade area residents seek shopping and services outside the trade area, e.g., Mission Valley for other 2015 -05 -26 Agenda Packet Page 339 department stores and specialty shops, Downtown San Diego for dining and entertainment, and Las Americas Premium Outlets for discount retail. Given these existing trends, the 19% retail sales leakage currently experienced in the trade area is not surprising. As new mixed -use districts are developed within the trade area, this leakage can be expected to decline. • If the Owners did not pursue the proposed SPA Plan amendment — and did not plan to build hotels and apartments on the Property -- then the maximum amount of retail space that could be developed on the Property would be approximately 350,000 SF. Taken together, the Owners' plans to develop hotels and apartments reduce the retail building area to approximately 15,000 SF. The reduction of 335,000 SF would likely have accommodated two "big box" General Merchandise stores, which are the typical retail formats found around the periphery of regional malls. This retail category includes "big boxes" like Costco, WalMart, Sam's Club, and Target, as well as traditional department stores. As shown in Table A -4, and summarized below, the trade area currently experiences an extremely high "import" of General Merchandise sales. This suggests that the trade area is already over - saturated with General Merchandise stores. General Merchandise Retail Expenditure Potential (Demand) $231,091,000 General Merchandise Retail Sales (Supply) $352,713,000 General Merchandise Retail Sales Surplus /(Leakage) $121,622,000 Percent of General Merchandise Expenditure Potential +52.6% The high level of retail sales leakage from other specialty goods stores provides further evidence that the trade area is over - saturated with General Merchandise stores. For example, the retail store categories of Sporting Goods, Clothing, Furniture, and Health & Personal Care all exhibit trade area retail sales significantly below the level supported by existing residents' demand. This indicates that residents are either transferring expenditures in these retail categories to the trade area General Merchandise stores, or exporting their expenditures outside the trade area. As shown in the chart below, trade area retail sales in these major retail store categories are $147 million lower than expenditure potential (refer to Table A -4 for detail by category). 2015 -05 -26 Agenda Packet Page 340 Trade I Specialty III Retail Stores Estimates, per ESRI Specialty Goods Retail Expenditure Potential (Demand) $359,233,000 Specialty Goods Retail Sales (Supply) $212,338,000 Specialty Goods Retail Sales Surplus /(Leakage) ($149,895,000) Percent of Specialty Goods Expenditure Potential -40.6% (1) Includes categories of Sporting Goods, Hobby, Musical Instrument Stores; Clothing & Clothing Accessories Stores; Furniture & Home Furnishing Stores; Health & Personal Care Stores; and Miscellaneous Store Retailers. • Similarly, Table A -5 presents a comparison of retail demand and supply, and resulting surplus /(leakage), for the City of Chula Vista. ESRI estimates total retail expenditure potential (demand) in the City in 2014 of $1.702 billion, compared to total retail sales (supply) of $1.940 billion. This results in a retail sales surplus of approximately $238 million, as summarized in the table below. Retail Expenditure Potential (Demand) $1,702,255,000 Retail Sales (Supply) $1,939,927,000 Retail Sales Surplus /(Leakage) $237,672,000 Percent of Total Expenditure Potential 14.0% It is worth noting that the City as a whole exhibits a similar "import" of General Merchandise sales. Total General Merchandise sales are almost double the level supported by existing households' expenditure potential. In general, the data show that the City is a strong importer of retail expenditures. This is likely due in significant part to its proximity to Mexico and ability to attract spending by Mexican nationals. IV. PROJECTED RETAIL SPACE DEMAND A. Growth Projection KMA prepared a projection of retail space demand in the trade area resulting from the buildout of planned developments. For this purpose, KMA relied on the SANDAG 2050 Regional Growth Forecast for Subregional Area 20 — Sweetwater. As shown in Exhibit B -1, this area includes all of eastern Chula Vista, as well as portions of Bonita and National City. It is bounded on the west by Interstate 805, on the south by the Otay River, on the east by the Otay Reservoir, and on the north by the Sweetwater Reservoir, Bonita Road, and Highway 54. 2015 -05 -26 Agenda Packet Page 341 Table B -1 presents the SANDAG 2013 -2050 growth projection for Subregional Area 20 — Sweetwater (Sweetwater). SANDAG projects that total population will increase by 63,544 residents over this period. SANDAG also projects an increase of 21,589 new housing units by 2050. Over 80% of the housing growth is expected to take the form of multi - family units. As a measure of comparison, KMA compared the SANDAG growth forecast for Sweetwater with the remaining development capacity in eastern Chula Vista. These two geographic areas largely overlap. Table B -2 summarizes the existing /built and pipeline /planned residential units for all master - planned communities in eastern Chula Vista. This information was compiled from detailed project data provided by City staff. As summarized in the table below, approximately 15,269 new housing units remain for development in eastern Chula Vista. This figure is lower than the SANDAG projection of 21,589 new housing units in the Sweetwater subregion. Although the two areas are not exactly coterminous, most new growth will be occurring within Otay Ranch, which falls within both areas. Eastem Chula Vista Single - Family Units ExistinglBuilt 19,789 PipelinelPlanned 4,156 Total Buildout 23,945 % Completed 83% Multi - Family Units 11,448 11,113 22,561 51% Total Residential Units 31,237 15,269 46,506 67% B. Retail Space Demand from New Households Tables B -3 through B -6 present the KMA projection of retail space demand resulting from new trade area households (using the Sweetwater growth projection). • Table B -3 presents the KMA estimate of aggregate personal income for new households residing in the new housing units. Household income is calculated based on the minimum income required to purchase or rent a housing unit. KMA assumed average market prices of $520,000 for a single - family unit and $350,000 for a multi - family unit. Average market rent was estimated at $1,500 per unit per month. These assumptions were compiled based on review of current market prices /rents for comparable new construction, presented in Tables B -4 and B -5. Based on these assumptions, KMA estimates total aggregate income for all new households through buildout of $1.705 billion. (All figures are expressed in 2015 dollars.) 2015 -05 -26 Agenda Packet Page 342 • Table B -6 presents the KMA estimate of retail space demand resulting from the expenditure potential of new households in the trade area. KMA estimates total incremental retail space demand generated by new households totaling 1,050,000 SF. The KMA demand estimate reflects the following key assumptions: Assumption • Estimate of office space (see Table C -1) Basis Retail expenditures as % of income 33.0% Analysis of San Diego County annual retail • $6,500 per year, or say $26 per work day (assuming 250 work days /year) • Percent of expenditures captured in trade area sales volumes relative to population and • Estimated retail sales productivity per SF per year • $350 income Retail expenditures captured in trade 67.0% KMA assumption based on review of area competitive retail locations inside /outside trade area Estimated retail sales productivity per SF $350 International Council of Shopping Centers per year (ICSC), Quick Stats, 2013 Retail Vacancy 2.5% KMA assumption based on a review of retail market data provided by local real estate brokers C. Retail Space Demand from Other Sources In addition to retail space demand from new households, there will be other sources of demand for new retail space. These include demand from employees in new office space; students, staff, and faculty in the University Park and Innovation District (UPID); and visitors from beyond the trade area. These additional sources of demand are addressed in Tables B -7 through B -9. It should be noted that there are many unknowns regarding specific land use proposals, retail industry trends, and other economic conditions over the long -term buildout of the trade area. The following are key assumptions used in preparing these projections. Source of Demand New Office Workers (Table 8 -7) • Estimate of office space (see Table C -1) • Based on data provided by the City of Chula Vista • Office employment density • 200 SF per worker • Retail expenditure per worker • $6,500 per year, or say $26 per work day (assuming 250 work days /year) • Percent of expenditures captured in trade area • 75% of total expenditures • Estimated retail sales productivity per SF per year • $350 • Office Vacancy • 7.5% of retail space supported by new office workers 2015 -05 -26 Agenda Packet Page 343 Source I Demand UPID Students, Staff, and Faculty (Table 8 -8) 1,050,000 SF Key Assumptions • Projected number of students • 18,000 • Retail expenditures per student • 50.0% of retail expenditures per resident • Percent of expenditures captured in trade area • 75.0% of total expenditures • Projected number of staff /faculty • 1,800 • Retail expenditure per staff /faculty • $6,500 per year (same as office workers) • Percent of expenditures captured in trade area • 75% of total expenditures • Estimated retail sales productivity per SF per year • $350 • Retail Vacancy • 2.5% of retail space supported by students and faculty/staff Visitors from beyond Trade Area (Table 8 -9) • Additional retail space supported by visitors from beyond trade area • 25% of total retail space supported by residents, workers, and UPID students /staff /faculty The KMA estimates of demand from all of the above sources are presented in Table B -9 and summarized below. New Households (Residents) 1,050,000 SF New Office Space (Employees) 200,000 SF UPID (Students /Staff /Faculty) 191,000 SF Visitors from beyond Trade Area 360,000 SF Total Demand 1,801,000 SF KMA notes that the above projections potentially overstate future retail space demand in the trade area. No adjustment has been made for the potential double- counting of new residents who also work in the trade area, either in the new office space or UPID facilities. Additionally, KMA considered the potential for the trade area to recapture a portion of existing retail sales leakage as new mixed -use districts are developed. KMA estimated that the trade area could recapture 20% of current retail sales leakage, or $44.0 million in annual sales volume. Assuming a $350 /SF /year sales productivity and 2.5% vacancy, the trade area could support an additional 129,000 SF of retail space. Total adjusted retail space demand is summarized in the chart below. 2015 -05 -26 Agenda Packet Page 344 Total Demand from New Residents, Workers, and UPID 1,801,000 SF Total Demand from 20% Recapture of Existing Leakage 129,000 SF Adjusted Total Demand 1,930,000 SF V. ANTICIPATED SUPPLY OF RETAIL SPACE The final step in the KMA analysis involved a comparison of the total projected retail space demand with the anticipated supply of retail space. KMA formulated an estimate of the remaining capacity for commercial development in the trade area based on data provided by the City. Development of new commercial space in the trade area is planned for Eastlake III — Vistas and Otay Ranch. As shown in Table C -1, a total of 5,417,000 SF of commercial development capacity remains in these two areas. Almost 85% of this commercial space is planned for two sub - areas: • The Millenia project (EUIC), located less than one mile south of the Property fronting SR 125, is planned for 2,976,000 SF. Of this total, 980,000 SF is planned as retail space. • Village Nine, located less than two miles south of the Property fronting SR 125, is planned for 1,500,000 SF. Of this total, 300,000 SF is planned as retail space. For the FWC (Freeway Commercial) area, KMA has assumed the remaining development capacity of Otay Ranch Town Center (317,000 SF), plus the remaining retail land use allowance on the Property assuming that the proposed amendment is approved (15,000 SF). As shown in Table C -1, City planners anticipate incremental retail space development totaling 2,075,000 SF. KMA has adjusted this figure to 2,023,000 SF occupied space after a 2.5% vacancy factor. The following table compares the projected supply of retail space in the trade area relative to anticipated demand. As shown in the table, KMA estimates that buildout of the trade area, assuming the proposed amendment for the Property, could result in an oversupply of retail estimated at 93,000 SF. Incremental Retail Space Demand Incremental Retail Space Supply Over /(Under) Supply * Assumes the proposed amendment for the Property with retail at 15,000 SF. 1,930,000 SF 2,023,000 SF 93,000 SF 2015 -05 -26 Agenda Packet Page 345 VI. LIMITING CONDITIONS 1. The analysis contained in this document is based, in part, on data from secondary sources such as state and local government, planning agencies, real estate brokers, and other third parties. While KMA believes that these sources are reliable, we cannot guarantee their accuracy. 2. The analysis assumes that neither the local nor national economy will experience a major recession. If an unforeseen change occurs in the economy, the conclusions contained herein may no longer be valid. 3. The findings are based on economic rather than political considerations. Therefore, they should be construed neither as a representation nor opinion that government approvals for development can be secured. 4. Market feasibility is not equivalent to financial feasibility; other factors apart from the level of demand for a land use are of crucial importance in determining feasibility. These factors include the cost of acquiring sites, relocation burdens, traffic impacts, remediation of toxics (if any), and mitigation measures required through the approval process. 5. Development opportunities are assumed to be achievable during the specified time frame. A change in development schedule requires that the conclusions contained herein be reviewed for validity. 6. The analysis, opinions, recommendations and conclusions of this document are KMA's informed judgment based on market and economic conditions as of the date of this report. Due to the volatility of market conditions and complex dynamics influencing the economic conditions of the building and development industry, conclusions and recommended actions contained herein should not be relied upon as sole input for final business decisions regarding current and future development and planning. attachments 2015 -05 -26 Agenda Packet Page 346 ATTACHMENT A Existing Conditions 2015 -05 -26 Agenda Packet Page 347 EXHIBIT A -1 TRADE AREA 4 -MILE RING OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS aw LEGZND Mile 4.0 ± 'uathairr Belt Jr Hsf�� --.. Swo&tw_yter C I loin 1111t 8 -di l It "'n"r&de inentary School - a o n a Zj rarer - Ilk I. '�,�, t;!alliri�y.HU� Park. _ri Allen - menkary Ssh E kat& FA— 'Aary Schnd ri al srervdr Brnaita.usta fulitldleScJvaol AL- rt, mD' Disco �r ark -r3- y [.... r- ❑iao ory Eleil .1i ol �� lmke CoiiMry r'luh .- .ii gg', m Jl Olyaov View Bw,mmivary SchVSa1 tll fjYS Ele $copts ed ry spttool STA"W 125 AT OLYMPIC PKWY _ JOS�ph casmaa uJIN school a ff r - � HerKm,x* Part; m Wig, er kl einei ary 3chao! dtr' r ¢ y E —ti a �I P-i V 11, HStrtl d Chula Vlsta - n Y'rr �r� 'e qy ` i l > 5O s is El lentary School r7tay (ice P Lindo EI nenkary School IementAry,. hoof k Lterpr main Sr �,� 125 San DiPpp City 'I Easi Lies i Field Municipal LIirl-n r� Richard i tMntinn Facility 2015 -05 -26 Agenda Packet Page 348 TABLE A -1 OVERVIEW OF DEMOGRAPHIC FACTORS, 2014 OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Population II. Per Capita Income III. Aggregate Personal Income IV. Households V. Average Household Size VI. Median Household Income VII. Median Age VIII. Housing Units $4.5 Billion Owner Occupied $97.1 Billion Renter Occupied 38,845 Vacant 1,113,315 Total IX. Median Home Value Trade Area City of County of State of 4 -Mile Ring Chula Vista San Diego California 140,255 254,740 3,179,381 38,120,066 $32,281 $25,415 $30,554 $28,657 $4.5 Billion $6.5 Billion $97.1 Billion $1,092.4 Billion 38,845 78,162 1,113,315 12,837,135 3.43 3.24 2.76 2.91 $92,883 $61,471 $60,904 $58,469 34.6 34.2 35.0 35.6 28,170 70% 44,300 54% 584,690 49% 6,945,700 50% 10,660 27% 33,840 41% 528,720 44% 5,883,580 42% 1,240 3% 3,600 4% 79,780 7% 1,131,990 8% 40,068 100% 81,732 100% 1,190,812 100% 13,975,243 100% $457,145 $390,737 $405,052 $337,905 2015 -05 -26 Agenda Packet Page 349 TABLE A -2 COMPARATIVE POPULATION AND HOUSEHOLD TRENDS, 2000 -2019 OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Trade Area - 4 -Mile Ring Population Households II. City of Chula Vista Population Households III. County of San Diego Population Households IV. State of California Population Households 2015 -05 -26 Agenda Packet Page 350 Average Annual Growth Average Annual Growth 2000-2014 2014-2019 2000 2014 Absolute Percent 2019 Absolute Percent 69,223 140,255 5,074 5.2% 150,216 1,992 1.4% 18,794 38,845 1,432 5.3% 41,625 556 1.4% 175,855 254,740 5,635 2.7% 269,486 2,949 1.1% 58,336 78,162 1,416 2.1% 82,400 848 1.1% 2,813,833 3,179,381 26,111 0.9% 3,332,601 30,644 0.9% 994,677 1,113,315 8,474 0.8% 1,167,637 10,864 1.0% 33,871,648 38,120,066 303,458 0.8% 39,606,515 297,290 0.8% 11,502,870 12,837,135 95,305 0.8% 13,339,518 100,477 0.8% 2015 -05 -26 Agenda Packet Page 350 TABLE A -3 COMPARATIVE INCOME TRENDS, 2014 -2019 OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS 2015 -05 -26 Agenda Packet Page 351 Average Annual Growth 2014-2019 2014 2019 Absolute Percent I. Trade Area - 4 -Mile Ring Median Household Income $92,883 $104,272 $2,278 2.3% Per Capita Income $32,281 $37,352 $1,014 3.0% II. City of Chula Vista Median Household Income $61,471 $71,656 $2,037 3.1% Per Capita Income $25,415 $29,324 $782 2.9% III. County of San Diego Median Household Income $60,904 $72,109 $2,241 3.4% Per Capita Income $30,554 $35,613 $1,012 3.1% IV. State of California Median Household Income $58,469 $68,212 $1,949 3.1% Per Capita Income $28,657 $33,354 $939 3.1% 2015 -05 -26 Agenda Packet Page 351 TABLE A -4 RETAIL SURPLUS /(LEAKAGE) - TRADE AREA - 4 -MILE RING OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Industry I. Retail Surplus General Merchandise Stores Electronics & Appliance Stores Subtotal Retail Surplus II. Retail Leakage Building Materials, Garden Equipment & Supply Stores Sporting Goods, Hobby, Musical Instrument Stores Clothing & Clothing Accessories Stores Furniture & Home Furnishing Stores Miscellaneous Store Retailers Food Services & Drinking Places Health & Personal Care Stores Food & Beverage Stores Subtotal Retail Leakage Trade Area - 4 -Mile Ring Demand Supply Retail (Retail Expenditure) (1) (Retail Sales) (2) Surplus / (Leakage) $231,091,000 $352,713,000 $121,622,000 $39,833,000 $93,842,000 $54,009,000 $270,924,000 $446,555,000 $175,631,000 $53,159,000 $48,769,000 ($4,390,000) $37,873,000 $21,680,000 ($16,193,000) $111,761,000 $88,385,000 ($23,376,000) $39,881,000 $7,399,000 ($32,482,000) $48,048,000 $24,594,000 ($23,454,000) $182,409,000 $113,598,000 ($68,811,000) $121,670,000 $70,280,000 ($51,390,000) $274,860,000 $99,374,000 ($175,486,000) $869,661,000 $474,079,000 ($395,582,000) Total (3) $1,140,585,000 $920,634,000 ($219,951,000) -19.3% Leakage Per Capita $8,132 $6,564 ($1,568) (1) Reflects the expected amount spent by consumers at retail establishments. (2) Reflects sales to consumers by retail establishments. Sales to businesses are excluded. (3) Excludes gasoline stations, non -store retailers, and motor vehicle & parts dealers. 2015 -05 -26 Agenda Packet Page 352 TABLE A -5 RETAIL SURPLUS /(LEAKAGE) - CITY OF CHULA VISTA OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Industry I. Retail Surplus General Merchandise Stores Electronics & Appliance Stores Sporting Goods, Hobby, Musical Instrument Stores Food Services & Drinking Places Subtotal Retail Surplus II. Retail Leakage Building Materials, Garden Equipment & Supply Stores Clothing & Clothing Accessories Stores Miscellaneous Store Retailers Health & Personal Care Stores Furniture & Home Furnishing Stores Food & Beverage Stores Subtotal Retail Leakage $76,908,000 City of Chula Vista ($6,335,000) Demand Supply Retail (Retail Expenditure) (1) (Retail Sales) (2) Surplus /(Leakage) $346,218,000 $645,448,000 $299,230,000 $58,626,000 $144,396,000 $85,770,000 $55,526,000 $76,817,000 $21,291,000 $270,475,000 $272,788,000 $2,313,000 $730,845,000 $1,139,449,000 $408,604,000 $76,908,000 $70,573,000 ($6,335,000) $166,269,000 $159,555,000 ($6,714,000) $71,113,000 $60,226,000 ($10,887,000) $181,660,000 $161,314,000 ($20,346,000) $57,944,000 $36,786,000 ($21,158,000) $417,516,000 $312,024,000 ($105,492,000) $971,410,000 $800,478,000 ($170,932,000) II. Total (3) $1,702,255,000 $1,939,927,000 $237,672,000 14.0% Surplus Per Capita $6,682 $7,615 $933 (1) Reflects the expected amount spent by consumers at retail establishments. (2) Reflects sales to consumers by retail establishments. Sales to businesses are excluded. (3) Excludes gasoline stations, non -store retailers, and motor vehicle & parts dealers. 2015 -05 -26 Agenda Packet Page 353 ATTACHMENT 6 Projected Demand 2015 -05 -26 Agenda Packet Page 354 EXHIBIT B -1 SANDAG SUBREGIONAL AREA 20 - SWEETWATER OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Imo... s a1 s a �� U T _ F�T � . � .�1 Q.. E�i 3� 34.01 9 33.07 w sn Y:V,7 l 3'l 07 - uagc x 33.5 31. 31 14 91 -73 3A.01 ° 33.03 _ 32.14 35.02 1 i 31.09 }ice 110.02 �'' 32 69 22 13 56 03 ti 32.01 �ty1 it &.02. 0 22 778.71 12U,02 32.09 13�:`i'0 h ! T 117.00 r 1 M.03 02 3-2 11 NATIONA1 121.02 . . . 3Z -12 32.07 11601 121.01 - , CI T 11a,Qx 134.11 SZO wrk 124.01 123.03f 134.12 �Q 4 u.lF 134 -16 a 1.94,21 134.10 XD 12502 124.02 123. @4 -F-91 . , ' 125.(12 '� 1 a4.so 194.16 125.01 127 H 12S 13441 134.G4 SW EE Tll! 1 134.74 126 1 13301 FCm""\� R #q 133.70 ` 131.02 933 -e 732.03 103.05 132. 133 133,15 130 O4 133.07 10,.D4 332.05 ..l 133.09 r mom, 02 s► 7DRA7 MIA 191.07 eftm � 44.01 100.11 1 R 100.14 100.03 7� VE R 04.02 . s� Hu 1101,10 .12 10106 10D.04 22 Ina ,w K � ,n1 n4 l?�1', a1Fr 1a�0. - „ 1.V,.,S Cr-%l 1 T i..J 0 A `NJ 133.14 2015 -05 -26 Agenda Packet Page 355 TABLE B -1 COMPARATIVE POPULATION AND HOUSEHOLD TRENDS, 2013 -2050 - TRADE AREA OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS (1) Source: SANDAG Demographic & Socio Economic Estimates - Sweetwater, January 1, 2013. (2) Source: SANDAG 2050 Regional Growth Forecast (adopted October 2011) Subregional Area 20 - Sweetwater. (3) Includes Single Family- Detached and Single Family- Multiple -Unit. 2015 -05 -26 Agenda Packet Page 356 Average Annual Growth Pipeline /Planned 2013 -2050 2013 (1) 205012 2013 -2050 Absolute Percent I. Total Population Population 141,735 205,279 63,544 1,717 1.0% II. Total Housing Units Single Family (3) 32,295 36,001 3,706 100 0.3% Multi - Family 11,121 29,011 17,890 484 2.6% Mobile Homes 197 190 (7) (0) -0.1% Total Housing Units 43,613 65,202 21,589 583 1.1% (1) Source: SANDAG Demographic & Socio Economic Estimates - Sweetwater, January 1, 2013. (2) Source: SANDAG 2050 Regional Growth Forecast (adopted October 2011) Subregional Area 20 - Sweetwater. (3) Includes Single Family- Detached and Single Family- Multiple -Unit. 2015 -05 -26 Agenda Packet Page 356 TABLE B -2 PROJECT DEVELOPMENT STATUS - RESIDENTIAL OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS (1) Reflects proposed amendment. Source: City of Chula Vista, as of January 5, 2015 2015 -05 -26 Agenda Packet Page 357 Existing /Built Pipeline /Planned Total Buildout %Completed 1. Bella Lago Single Family 87 53 140 Multi - Family 0 0 0 Total Bella Lago 87 53 140 62% 2. Eastern Urban Center - Millenia Single Family 0 0 0 Multi - Family 0 2,983 2,983 Total Eastern Urban Center - Millenia 0 2,983 2,983 0% 3. Eastlake Greens Single Family 2,106 0 2,106 Multi - Family 1,253 0 1,253 Total Eastlake Greens 3,359 0 3,359 100% 4. Eastlake Trails Single Family 956 0 956 Multi - Family 189 0 189 Total Eastlake Trails 1,145 0 1,145 100% 5. Eastlake Woods /Trails North Single Family 634 27 661 Multi - Family 0 0 0 Total Eastlake Woods 634 27 661 96% 6. Eastlake Vistas Single Family 777 0 777 Multi - Family 967 230 1,197 Total Eastlake Vistas 1,744 230 1,974 88% 7. Otay Ranch PA 12 (1) Single Family 0 0 0 Multi - Family 0 600 600 Total Otay Ranch PA 12 0 600 600 0% 8. Otay Ranch V1 - Heritage Single Family 1,565 0 1,565 Multi - Family 1,225 0 1,225 Total Otay Ranch V1 2,790 0 2,790 100% 9. Otay Ranch V1 West - Heritage Hills Single Family 909 0 909 Multi - Family 0 0 0 Total Otay Ranch V1 West 909 0 909 100% 10. Otay Ranch V2 - Montecito Single Family 316 1,054 1,370 Multi - Family 590 1,023 1,613 Total Otay Ranch V2 906 2,077 2,983 30% (1) Reflects proposed amendment. Source: City of Chula Vista, as of January 5, 2015 2015 -05 -26 Agenda Packet Page 357 TABLE B -2 PROJECT DEVELOPMENT STATUS - RESIDENTIAL OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS 11. Otay Ranch V3 North and Portion of V4 Total Buildout Single Family 0 Multi - Family 1,002 Total Otay Ranch V3 and Portion of V4 12. Otay Ranch V5 - Countryside 595 Single Family 0 Multi - Family 1,597 Total Otay Ranch V5 13. Otay Ranch V5- McMillin 944 Single Family 382 Multi - Family 382 Total Otay Ranch V5- McMillin 14. Otay Ranch V6 - Hillsborough 1,326 Single Family 699 Multi - Family 699 Total Otay Ranch V6 15. Otay Ranch V6 - McMillin -Lomas Verdes 827 Single Family 1,526 Multi - Family 1,526 Total Otay Ranch V6- McMillin 16. Otay Ranch V7 - Montecito Ridge /Lomas Verdes 443 Single Family 986 Multi - Family 1,094 Total Otay Ranch V7 17. Otay Ranch V8 West 1,537 Single Family 482 Multi - Family 482 Total Otay Ranch V8 West 18. Otay Ranch V8 East 212 Single Family 694 Multi - Family 694 Total Otay Ranch V8 East 19. Otay Ranch V10 804 Single Family 304 Multi - Family 316 Total Otay Ranch V10 20. Otay Ranch V11- WindingWalk 1,120 Single Family 0 Multi - Family 331 Total Otay Ranch V11 21. Rancho Del Rey I 1,719 Single Family 0 Multi - Family 2,050 Total Rancho Del Rey I Source: City of Chula Vista, as of January 5, 2015. 2015 -05 -26 Agenda Packet Existing /Built Pipeline /Planned Total Buildout %Completed 0 1,002 1,002 0 595 595 0 1,597 1,597 0% 944 0 944 382 0 382 1,326 0 1,326 100% 699 0 699 827 0 827 1,526 0 1,526 100% 443 0 443 986 108 1,094 1,429 108 1,537 93% 482 0 482 212 0 212 694 0 694 100% 771 33 804 304 12 316 1,075 45 1,120 96% 0 331 331 0 1,719 1,719 0 2,050 2,050 0% 0 943 943 0 2,617 2,617 0 3,560 3,560 0% 0 695 695 0 1,045 1,045 0 1,740 1,740 0% 1,101 0 1,101 1,144 43 1,187 2,245 43 2,288 98% 1,328 0 1,328 785 0 785 2,113 0 2,113 100% Page 358 TABLE B -2 PROJECT DEVELOPMENT STATUS - RESIDENTIAL OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS 22. Rancho Del Rey II Single Family Multi - Family Total Rancho Del Rey II 23. Rancho Del Rey III Single Family Multi - Family Total Rancho Del Rey III 24. Rolling Hills Ranch Single Family Multi - Family Total Rolling Hills Ranch 25. Salt Creek 1 Single Family Multi - Family Total Salt Creek 1 26. San Miguel Ranch Single Family Multi - Family Total San Miguel Ranch 27. Sunbow II Single Family Multi - Family Total Sunbow II 28. Telegraph Canyon Estates Single Family Multi - Family Total Telegraph Canyon Estates 29. Terra Nova Single Family Multi - Family Total Terra Nova 30. University Park and Innovation District (UPID) Single Family Multi - Family Total University Park and Innoviation District Total Development Single Family Multi - Family Total Source: City of Chula Vista, as of January 5, 2015. 2015 -05 -26 Agenda Packet Existing /Built Pipeline /Planned Total Buildout %Completed 559 10 569 0 0 0 559 10 569 98% 952 0 952 280 0 280 1,232 0 1,232 100% 2,104 8 2,112 343 0 343 2,447 8 2,455 100% 166 0 166 357 0 357 523 0 523 100% 889 0 889 425 138 563 1,314 138 1,452 90% 1,128 0 1,128 849 0 849 1,977 0 1,977 100% 344 0 344 0 0 0 344 0 344 100% 529 0 529 330 0 330 859 0 859 100% 0 0 0 0 0 0 0 0 0 0% 19,789 4,156 23,945 83% 11,448 11,113 22,561 51% 31,237 15,269 46,506 67% Page 359 TABLE B -3 AGGREGATE ANNUAL INCOME FROM PIPELINE /PLANNED RESIDENTIAL DEVELOPMENT IN TRADE AREA OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Total Monthly Costs 35% Pipeline /Planned Residential Development, 2013 -2050 $2,353 Single - Family Multi - Family For -Sale Multi - Family Rental $80,678 Households Households Households I. Number of Households (1) $60,000 III. Aggregate Annual Income $488,592,000 Number of Units 3,699 8,945 8,945 Average Occupancy Rate 97.5% 97.5% 95.0% Number of Occupied Households 3,607 8,721 8,498 II. Required Annual Income Fair Market Value Per Unit $520,000 $350,000 Down Payment 10% $468,000 $315,000 Interest Rate 5.5% Term (Years) 30 Monthly Mortgage Payment $2,657 $1,789 Property Tax 1.25% of Value $542 $365 HOA Fees (Per Month) $200 $200 Total Monthly Costs 35% $3,399 $2,353 $1,500 Income Allocation Per Year @ $116,534 $80,678 $60,000 Minimum Income Required (Rounded) $117,000 $81,000 $60,000 III. Aggregate Annual Income $488,592,000 $706,401,000 $509,880,000 (1) Source: SANDAG Demographic & Socio Economic Estimates - Sweetwater, January 1, 2013. 2015 -05 -26 Agenda Packet Page 360 TABLE B -4 ACTIVE RESIDENTIAL DEVELOPMENTS IN TRADE AREA - DETACHED OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Source: Otay Ranch New Homes, South County Sales Traffic Recap, February 1, 2015. 2015 -05 -26 Agenda Packet Page 361 Total Total Total Units Development Community Developer Units Released Sold Remaining Unit Size (SF) Sales Price Price SF Anacapa Otay Ranch Otay Ranch New Homes 54 46 35 19 2,221 2,249 $480,500 $803,898 $287 Bocara Otay Ranch Heritage Building & Developmen 126 54 45 81 1,609 1,940 $415,900 $436,900 $240 Corta Bella Otay Ranch Sunrise Company 68 60 58 10 1,936 2,652 $455,900 $493,900 $207 Presidio: V2 Otay Ranch Otay Ranch New Homes 47 22 19 28 2,571 2,649 $545,000 $560,000 $212 Presidio: V7 Otay Ranch Otay Ranch New Homes 24 20 20 4 2,631 2,639 $577,900 $582,900 $220 Total 319 202 177 142 Minimum 24 20 19 4 1,609 $415,900 $207 Maximum 126 60 58 81 2,652 $803,898 $287 Median 54 46 35 19 2,410 $519,450 $220 Average 64 40 35 28 2,310 $535,280 $233 Source: Otay Ranch New Homes, South County Sales Traffic Recap, February 1, 2015. 2015 -05 -26 Agenda Packet Page 361 TABLE B -5 ACTIVE RESIDENTIAL DEVELOPMENTS IN TRADE AREA - ATTACHED, 2ND QUARTER 2013 OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Source: Otay Ranch New Homes, South County Sales Traffic Recap, May 12, 2013. 2015 -05 -26 Agenda Packet Page 362 Total Total Total Units Average Average Average Development Community Developer Units Released Sold Remaining Unit Size (SF) Sales Price Price SF Avalon Otay Ranch Sunrise Company 165 162 152 13 1,163 1,621 $294,900 $364,900 $237 Avaire Otay Ranch Sunrise Company 144 30 22 122 1,098 1,928 $289,900 $375,900 $220 Tosara Otay Ranch Pacific Coast Communities 89 16 13 76 1,635 2,366 $357,900 $409,900 $192 Total 398 208 187 211 Minimum 89 16 13 13 1,098 $289,900 $192 Maximum 165 162 152 122 2,366 $409,900 $237 Median 144 30 22 76 1,628 $361,400 $220 Average 133 69 62 70 1,635 $348,900 $216 Source: Otay Ranch New Homes, South County Sales Traffic Recap, May 12, 2013. 2015 -05 -26 Agenda Packet Page 362 TABLE B -6 RETAIL SPACE SUPPORTED BY PIPELINE /PLANNED RESIDENTIAL DEVELOPMENT IN TRADE AREA (1) OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Total Annual Aggregate Income Single - Family Households Multi - Family For -Sale Households Multi - Family Rental Households Total Annual Aggregate Income II. Aggregate Annual Income Spent on Retail Expenditures @ Per Capita @ III. Retail Spending Captured in Trade Area @ IV. Estimated Sales Productivity per SF per Year@ 33.0% 63,544 population (2) 67.0% $488,592,000 $706,401,000 $509,880,000 $1,704,873,000 $562,608,000 $8,854 $376,947,000 $350 V. Estimated Retail Space Supported by New Households Retail Space Supported by New Households 1,077,000 SF (Less) Vacancy @ 2.5% (27,000) SF Net Retail Space Supported by New Households 1,050,000 SF (1) Assumes Trade Area is SANDAG Subregional Area 20 - Sweetwater. (2) See Table B -1. 2015 -05 -26 Agenda Packet Page 363 TABLE B -7 RETAIL SPACE SUPPORTED BY NEW OFFICE WORKERS - TRADE AREA (1) OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Estimate of Office Space (2) II. Estimate of New Office Employment SF per Office Worker Total New Office Workers III. Estimated Office Worker Retail Expenditures per Year (3) IV. Total Annual Retail Expenditures by Office Workers V. Share of New Office Worker Retail Expenditures Captured in Trade Area @ VI. Total New Office Worker Retail Expenditures Captured in Trade Area Estimated Sales per SF per Year VII. Total Retail Space Demand from New Office Workers Retail Space Supported by New Office Workers (Less) Vacancy @ 7.5% 3,105,000 SF 200 SF 15,525 Workers $6,500 $100,912,500 75 $75,684,375 $350 /SF 216,000 SF (16,000) SF Net Retail Space Demand from New Office Workers 200,000 SF (1) Assumes Trade Area is SANDAG Subregional Area 20 - Sweetwater. (2) See Table C -1 regarding assumed allocation of pipeline /planned commercial space uses in trade area. (3) Source: International Council of Shopping Centers. Office Worker Retail Spending, 2012. Reflects Office Worker spending, including those who spent nothing, and excluding transportation and on -line purchases. Assumes average expenditures for 50 weeks. Excludes demand from non - office workers visitors, and residents beyond trade area. 2015 -05 -26 Agenda Packet Page 364 TABLE B -8 RETAIL SPACE SUPPORTED BY UPID STUDENTS AND FACULTY /STAFF OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Students A. Projected Number of Students B. Per Capita Retail Expenditures Per Capita Retail Expenditures by Students @ 50% C. Estimated Total Annual Retail Expenditures by Students D. Share of Student Retail Expenditures Captured in Trade Area @ E. Total Annual Student Retail Expenditures Captured in Trade Area Estimated Sales Per SF F. Total Retail Space Demand from Students II. Faculty /Staff A. Projected Number of Faculty /Staff Projected Number of Students Student to Faculty Ratio @ Total Projected Faculty /Staff B. Estimated Faculty /Staff Retail Expenditures per Year C. Estimated Total Annual Retail Expenditures by Faculty /Staff D. Share of Faculty /Staff Retail Expenditures Captured in Trade Area @ E. Total Faculty /Staff Retail Expenditures Captured in Trade Area Estimated Sales Per SF F. Total Retail Space Demand from Faculty /Staff 18,000 Students (1) $8,854 (2) $4,427 $79,685,000 75% $59,764,000 $350 /SF 171,000 SF 18,000 Students 10.0 Students Per 1.0 Faculty /Staff (3) 1,800 Faculty /Staff $6,500 (4) $11,700,000 75% $8,775,000 $350 /SF 25,000 SF III. Total Retail Space Supported by Students and Faculty /Staff Retail Space Supported by Students and Faculty /Staff 196,000 SF (Less) Vacancy @ 2.5% (5,000) SF Total Retail Space Supported by Students and Faculty /Staff 191,000 SF (1) Source: City of Chula Vista Vision 2020. (2) Estimated per capita retail expenditures by new residents (see Table B -6). (3) Based on a review of student to faculty /staff ratios at UC San Diego, San Diego State University, and University of San Diego. (4) Source: International Council of Shopping Centers. Office Worker Retail Spending, 2012. Reflects Office Worker spending, including those who spent nothing, and excluding transportation and on -line purchases. Assumes average expenditures for 50 weeks. Excludes demand from non - office workers, visitors, and residents beyond trade area. 2015 -05 -26 Agenda Packet Page 365 TABLE B -9 TOTAL RETAIL SPACE SUPPORTED BY PIPELINE /PLANNED DEVELOPMENT IN TRADE AREA OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Retail Space Supported by New Households II. Retail Space Supported by New Office Workers III. Retail Space Supported by UPID Students and Faculty /Staff IV. Total Retail Space Supported V. Add: Retail Space Supported by Visitors from Beyond Trade Area VI. Total New Retail Space Supported through Buildout of Trade Area VII. Add: Retail Space Suppported by Recapture of Retail Leakage 1,050,000 SF 200,000 SF 191,000 SF 1,441,000 SF 25% 360,000 SF 1,801,000 SF 129,000 SF VIII. Total New Retail Space Supported through Buildout of Trade Area 1,930,000 SF 2015 -05 -26 Agenda Packet Page 366 TABLE B -10 RECAPTURE OF RETAIL LEAKAGE OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS I. Retail Leakage - Trade Area - 4 -Mile Ring (Table A -4) II. Assumed Recapture @ III. Total Retail Recaptured IV. Estimated Sales Productivity per SF per Year@ V. Retail Space Supported by Recapture of Retail Leakage Recapture of Retail Leakage Add: Vacancy Allowance @ ($219,951,000) 20.0% of Leakage $43,990,000 350 /SF 126,000 SF 2.5% 3,000 SF Retail Space Supported by Recapture of Retail Leakage 129,000 SF 2015 -05 -26 Agenda Packet Page 367 ATTACHMENT C Projected Supply 2015 -05 -26 Agenda Packet Page 368 TABLE C -1 PIPELINE /PLANNED COMMERCIAL SQUARE FEET - EASTLAKE III AND OTAY RANCH OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS III. Total Pipeline /Planned Commercial SF Pipeline /Planned Commercial SF 2,075,000 SF 3,357,000 SF 5,432,000 SF (Less) Vacancy @ 2.5% (52,000) SF 7.5% (252,000) SF (304,000) SF Net Pipeline /Planned Commercial SF 2,023,000 SF 3,105,000 SF 5,128,000 SF Source: City of Chula Vista; Baldwin & Sons 2015 -05 -26 Agenda Packet Page 369 Retail Office Total I. Eastlake III Vistas 15,000 SF - 15,000 SF II. Otay Ranch Village Two 130,000 SF - 130,000 SF Village Three 48,000 SF 111,000 SF 159,000 SF Village Eight East 20,000 SF - 20,000 SF Village Eight West 250,000 SF 50,000 SF 300,000 SF Village Nine 300,000 SF 1,200,000 SF 1,500,000 SF FWC (Includes ORTC) 317,000 SF - 317,000 SF PA 12 15,000 SF - 15,000 SF EUC (Millenia) 980,000 SF 1,996,000 SF 2,976,000 SF UPID - - 0 SF Subtotal Otay Ranch 2,060,000 SF 3,357,000 SF 5,417,000 SF III. Total Pipeline /Planned Commercial SF Pipeline /Planned Commercial SF 2,075,000 SF 3,357,000 SF 5,432,000 SF (Less) Vacancy @ 2.5% (52,000) SF 7.5% (252,000) SF (304,000) SF Net Pipeline /Planned Commercial SF 2,023,000 SF 3,105,000 SF 5,128,000 SF Source: City of Chula Vista; Baldwin & Sons 2015 -05 -26 Agenda Packet Page 369 PROJECT NAME: PROJECT LOCATION: PROJECT APPLICANT: DATE: 1 INTRODUCTION Otay Ranch Planning Area 12 City of Chula Vista City of Chula Vista April 15, 2015 The Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area Plan Planning Area 12 (FEIR) contains a comprehensive disclosure and analysis of potential environmental effects associated with the implementation of the Sectional Planning Area (SPA) Plan and Freeway Commercial (FC) site (referred to as "approved project" or "SPA Plan ") in the City of Chula Vista (City) (City of Chula Vista 2003). The SPA Plan was developed to refine and implement the land use plans, goals and objectives of the Otay Ranch General Development Plan (GDP) for the development of Planning Area (PA) 12. This Addendum addresses proposed modifications to the designations in the General Plan and Otay Ranch GDP for the northern portion of Planning Area 12, which would allow for the construction of 600 multi - family residential units, 15,000 square -feet of commercial space in a mixed use format, and 2.0 acres of public parkland. To achieve this, the definition of the current freeway commercial zone would be modified to allow for residential uses. These proposed residential uses would account for approximately 26.7 acres of the Freeway Commercial 2 (FC -2) site. 2 CEQA REQUIREMENTS Sections 15162 through 15164 of the CEQA guidelines discuss a lead agency's responsibilities in handling new information that was not included in a project's final environmental impact report (EIR). Section 15162 of the CEQA Guidelines provides: a. When an EIR has been certified... for a project, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: 2015 -05 -26 Agenda Packet Page 370 1. Substantial changes are proposed in the project which will require major revisions of the EIR ... due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified as complete, shows any of the following: A. The project will have one or more significant effects not discussed in the [Final] EIR; B. Significant effects previously examined will be substantially more severe than shown in the [Final] EIR; C. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or D. Mitigation measures or alternatives which are considerably different from those analyzed in the [Final] EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. In the event that one of these conditions would require preparation of a subsequent EIR, but "only minor additions or changes would be necessary to make the [Final] EIR adequately apply to the project in the changed situation," the City could choose instead to issue a supplement to the FEIR (CEQA Guidelines, § 15163, subd. (a)). In the alternative, where the changes or new information will result in no new impacts, or no more severe impacts than any that were disclosed in the FEIR for the approved project, the City "shall prepare an addendum" pursuant to CEQA Guideline, § 15164. That section states that an addendum should include a "brief explanation of the decision not to prepare a subsequent EIR pursuant to § 15162," and that the explanation needs to be supported by substantial evidence (CEQA Guidelines, § 15164, subd. (e).) The addendum need not be circulated for public review, but may simply be attached to the FEIR (Ibid.; CEQA Guideline, § 15164, subd. (c)). 2015 -05 -26 Agenda Packet Page 371 Thus, in the following inquiry the City considers under the standards articulated above whether each of these changed circumstances reveal or create previously undisclosed significant environmental impacts or a substantial increase in the severity of previously disclosed impacts (CEQA Guidelines, §15162, 15163, 15164, subd. (a); 15088.5, subds. [a], [b]). As the following discussion demonstrates, it is appropriate for the City to prepare this Addendum to the Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area Plan Planning Area 12 project, pursuant to CEQA Guideline, § 15164. 3 PROJECT LOCATION AND REGIONAL SETTING Otay Ranch lies within the East Planning Area of the City of Chula Vista. The East Planning Area is bordered by Interstate 805 (I -805) to the west, San Miguel Mountain and State Route 54 to the north, the Otay Reservoir and the Jamul foothills to the east, and the Otay River Valley to the south. The SPA Plan is located in the northeastern portion of the Otay Valley Parcel of the 22,899 -acre Otay Ranch GDP project area (Figures 1 and 2). The project site, which comprises the FC portion of PA 12 in the adopted Otay Ranch GDP, is located east of State Route 125, west of Eastlake Parkway, south of Olympic Parkway, and north of Birch Road. The project area is characterized by flat mesa tops and rolling hills including a sloping canyon located in the central portion of the project site, which heads west towards Poggi Canyon. Site elevation ranges from approximately 560 feet above mean sea level (amsl) to approximately 640 feet amsl. The site was previously used for agricultural uses and livestock grazing. The site contains a small system of dirt roads and cattle trails, as well as inactive agricultural fields and non - native grasslands. The project site is surrounded by other Otay Ranch development areas including Village 6 to the west, Village I I to the east, a portion of the existing Eastlake community to the north and northeast, Village 7 to the southwest, and the EUC to the south of Birch Road. Eastlake High School and a commercial area are located north of the project site and the Arco Olympic Training Center is located east of the project site, immediately adjacent to Otay Lake. The proposed modifications are located in the northern portion of PA 12, which is identified as FC -2 in the FEIR. FC -1 is fully developed as the Otay Ranch Town Center. 4 PROJECT DESCRIPTION The project site (SPA Plan area) is comprised of approximately 120.5 acres of commercial land development, and approximately 12.4 acres for circulation improvements. A total of 1,215,000 square feet of commercial uses were proposed including administrative and professional office 2015 -05 -26 Agenda Packet Page 372 services, general commercial uses, and public and semipublic uses. The approved project also included a light rail alignment or transit way and a station site for the San Diego Trolley accompanied by a park -and -ride facility. The project site is divided into two major sections, including FC -1 to the south and FC -2 to the north. Under the proposed modifications, no changes to the FC -I area would occur as FC -I is currently developed as the Otay Ranch Town Center. All proposed modifications would occur within the FC -2 portion of the site (Figure 3). Town Center Drive, a north -south oriented road, runs through the center of FC -2 to connect Olympic Parkway to FC -1. All graded material would be balanced on site and would consist of approximately 1,620,000 total cubic yards of grading over the entire site (City of Chula Vista 2003). This Addendum addresses proposed modifications to the General Plan and Otay Ranch GDP designations to the northern portion of Planning Area 12, which would allow for the construction of 600 multi - family residential units, 15,000 square -feet of commercial space in a mixed use format, and 2.0 acres of public parkland. To achieve this, the definition of the current freeway commercial zone would be modified to allow for residential uses. These proposed residential uses would account for approximately 26.7 acres of the FC -2 site. Commercial space under the proposed modifications would decrease from the approved project (FC -1 and FC -2) as analyzed in the FEIR from 1,215,000 square -feet to approximately 1,092,000 square -feet (including approximately 210,000 square -feet for the hotel uses with the FC -2 site). It should be noted that no changes to the hotel portion of the FC -2 site would occur as a result of the proposed modifications, as it is consistent with the current entitlements; the hotel portion may be included on site plans and throughout parts of the analysis to give a holistic look at the FC -2 site. This action would allow for the only anticipated residential units within the Planning Area 12 SPA boundary and would change the character of the FC -2 site from a general commercial center to a mixed use community offering multifamily residential units, retail commercial, hotels, and a centralized public park. The proposed modification in land use would require amendments to the City of Chula Vista General Plan (GP), the Otay Ranch General Development Plan (GDP). A SPA amendment would also need to be approved at a future date. The proposed modifications would not require an expansion of the project site from that studied in the Final EIR and the proposed modifications would result in a decrease in trip generation and traffic impacts, and would not substantially change trip distribution patterns. No additional significant impacts beyond those previously analyzed in the FEIR, or substantial increases in any identified significant impacts are anticipated; however, the proposed modification represents new information that was not available at the time that the FEIR was certified. Therefore, the City has prepared this addendum pursuant to CEQA § 15162 to disclose minor changes in the approved project, and minor changes in some of the environmental effects as a result of proposed modifications. 2015 -05 -26 Agenda Packet Page 373 5 IDENTIFICATION OF ENVIRONMENTAL EFFECTS The following environmental analysis provided in Section 6.0 supports a determination that approval and implementation of the proposed zoning modifications to the FC -2 site on PA 12 would not result in any additional significant environmental effects beyond those previously analyzed under the FEIR for the approved project. 6 ANALYSIS Aesthetics /Landform Alterations Impacts to aesthetics are addressed in Section 5.2 of the FEIR. As analyzed in the FEIR, the SPA Plan would not obstruct a scenic vista and no scenic resources are visible from nearby roadways, including Olympic Parkway, which is not a designated scenic highway, but is considered a "scenic corridor" as designated by the City of Chula Vista General Plan. As part of project design, the approved project would include an enhanced landscaped buffer along the border of the project site to minimize impacts along the scenic corridor. Additionally, although the project site is currently undeveloped, the site is located adjacent to large areas of developed land and future planned development areas. Moreover, the adopted SPA Plan includes design development standards to minimize impacts to visual quality. The proposed modification to the FC -2 site would change a portion of the current commercial land use designation of the site to residential and mixed use and would include a neighborhood park; however, the aesthetic nature of the residential development within these areas would not be substantially different. Additionally, because no changes to the hotel portion of the FC -2 site would occur, no aesthetic changes would occur. The addition of a 2.0 acre park space within the FC -2 site would enhance the visual character through increased greenspace and natural elements. Therefore, the proposed modifications would not result in any significant impacts to scenic vistas or resources. The FEIR identified significant impacts resulting from additional light and glare to the area as the approved project would introduce new land uses to a currently undeveloped site. The proposed modifications would introduce similar light and glare elements to the area; however, the project site boundaries would remain as analyzed previously and no new light and glare impacts beyond those identified in the FEIR would occur. Therefore, no new mitigation would be required beyond mitigation measures 5.2 -1 through 5.2 -9 as identified in the FEIR. Although the proposed modifications would result in different land uses primarily consisting of residential development, thereby altering previously discussed development patterns, the 2015 -05 -26 Agenda Packet Page 374 modification would maintain all previously analyzed design standards and architectural considerations. Therefore, the proposed modifications from primarily commercial to mixed -use residential would not result in new substantial or significant impacts beyond those previously analyzed in the FEIR. Agriculture Impacts to agriculture are addressed in Section 5.9 of the FEIR. The proposed modifications would not result in development outside of previously established boundaries for the approved project development as proposed in the approved SPA Plan. Therefore, no new or increased levels of impacts to agricultural resources would result from implementation of the proposed modifications beyond those previously analyzed in the FEIR. Additionally, an Agricultural Plan has been prepared as part of the previously adopted SPA Plan in accordance with the mitigation identified in the Otay Ranch GDP Program EIR. This plan is intended to allow for interim agricultural activity and to prevent the potential for land use impacts between developed land and ongoing agricultural activities by providing separation between urban and adjacent agricultural uses. The Agricultural Plan includes a requirement for notification of adjacent property owners of pesticide use and other potentially harmful activities, as well as physical barriers, if warranted. Consequently, no new impacts to agriculture beyond those previously analyzed would occur. Air Quality Impacts to air quality are addressed in Section 5.4 of the FEIR. The proposed modifications addressed in this Addendum would not result in an increase in overall land use intensity or substantially change traffic distribution patterns, and would result in a decrease in traffic generation. An air quality technical report was prepared for the proposed modifications by Scientific Resources Associated (SRA 2014a). The air quality technical report analyzed air quality impacts from the proposed modifications. Information provided in the air quality technical report was compared against the analysis in the FEIR for a determination of overall net impacts resulting from the proposed modifications. Construction emissions as estimated in the air quality technical report would be below all significance thresholds for criteria air pollutants, and would not exceed those levels identified in the FEIR. The site would be watered at least three times daily to control fugitive dust emissions, and vehicle speeds would not exceed 15 miles per hour, per FEIR mitigation measure 5.4 -2. In addition, low -VOC paints would be utilized during architectural coatings. With incorporation of these design features, construction emissions were estimated to be below construction emissions 2015 -05 -26 Agenda Packet Page 375 estimated in the FEIR. The FEIR also identified mitigation measures 5.4 -1 and 5.4 -2, which reflect dust control measures and measures to reduce VOC and NO,, emissions. With the proposed modifications to land uses, operational emissions would be well below the levels identified in the FEIR. As discussed, the proposed modifications would result in fewer trips than the approved project; therefore, mobile emissions resulting from the proposed modifications would be lower than that previously analyzed in the FEIR. Additionally, mitigation measures 5.4 -3 and 5.4 -4 are identified in the FEIR, which would further reduce operational emissions. A health risk assessment was prepared for the proposed modifications in addition to estimates for construction and operational criteria pollutant emissions. Maximum excess cancer risk due to inhalation of diesel particulate matter (DPM) was predicted to be 17.77 in a million at the point of maximum exposure, based on a 70 -year scenario. Maximum excess cancer risk for the 9 -year scenario was estimated to be 4.44 in a million. The maximum excess cancer risks due to inhalation of DPM at an actual residential dwelling were predicted to be 9.801 in a million based on a 70 -year residential exposure scenario. Maximum excess cancer risks for the 9 -year exposure scenario at this location were 2.29 in a million. These values are below the significance thresholds of 10 in a million (SRA 2013). Therefore, no new significant sources of construction or operational air emissions or health risk impacts beyond those identified in the FEIR would occur with implementation of the proposed modifications to the approved project. Biological Resources Impacts to biological resources are addressed in Section 5.8 of the FEIR. As indicated in the FEIR, no sensitive habitat or wetlands occur on the project site, and there is a low potential for sensitive plant species to occur on site and no sensitive plant species were observed at the time of surveying. Sensitive animal species observed on site include golden eagles and tricolored blackbirds; however, no nesting activity or suitable habitat for these species were observed. The proposed modifications would not exceed previously established boundaries for project development as approved in the SPA Plan and the proposed modifications would be subject to mitigation as provided in Section 5.8. Therefore, no new or increased levels of impacts to biological resources would result from implementation of the proposed modifications beyond those previously analyzed in the FEIR. 2015 -05 -26 Agenda Packet Page 376 Geology and Soils Impacts to geology and soils are addressed in Section 5.11 of the FEIR. The geotechnical analysis presented in Section 5.11 of the FEIR was derived from GEOCON, Inc.'s Geotechnical Investigation Otay Ranch, Village 12 prepared in August of 2001. As previously discussed, the proposed modifications would not exceed previously established boundaries for project development as approved in the SPA Plan, and all proposed modifications would be subject to mitigation provided in Section 5.11. Due to the fact that proposed modifications would not increase acreage undergoing grading and excavation, no new significant impacts beyond those previously identified in the EIR would occur. Therefore, implementation of the proposed modifications would not require additional analysis beyond that which is presented in Section 5.11 of the FEIR, and no new impacts would occur. Greenhouse Gases Impacts resulting from greenhouse gas emissions were not addressed in the FEIR. The proposed modifications would not increase the severity of previously identified air quality impacts, nor would it result in any new significant effects related to air emissions that were not previously identified in the FEIR. Additionally, the proposed modifications would result in fewer vehicle trips compared to the approved project as analyzed in the FEIR; therefore, greenhouse gas (GHG) emissions from mobile sources would be less. Moreover, in light of the wide range of global warming activity prior to certification of the FEIR in 2003, there are no substantial changes to the circumstances under which the proposed modifications would be undertaken, and no new information of substantial importance that was not known and could not have been known when the FEIR was completed has since been identified. A Global Climate Change Evaluation was prepared for the proposed project by SRA. GHG emissions were calculated in the report for "business as usual" conditions and for conditions with implementation of GHG emission reduction project design features proposed by the proposed project applicants. "Business as usual" is defined as the emissions that would have occurred in the absence of reductions mandated under AB 32, including GHG reductions from implementation of the Pavley 1 and Pavley 2 motor vehicle standard, GHG reductions from implementation of the Low Carbon Fuel Standard, and GHG reductions from implementation of the Renewable Portfolio Standard. "Business as usual" conditions also are based on energy efficiency standards codified in Title 24 as of 2005, and do not take into consideration energy efficiency measures codified in Title 24 as of 2013, nor do they take into account other programs such as the Federal CAFE standards (SRA 2014). 2015 -05 -26 Agenda Packet Page 377 To evaluate impacts from discretionary projects, many lead agencies have set a goal to reduce GHG emissions by a certain amount to demonstrate consistency with AB 32. Different agencies and studies estimate different goals for reduction of emissions to achieve 1990 levels by the year 2020, as set forth in AB 32. Other agencies have estimated a reduction of 28% to 29% based on the ARB's analysis that statewide 2020 business as usual GHG emissions would be 596 MMTCO2e, with 1990 emissions of 427 MMTCO2e, for a reduction of 28.35% (ARB 2010). Based on this goal, a significance threshold of 28.35% below "business as usual" conditions was used in this analysis to evaluate potential significance of impacts from GHG emissions. The City has established a significance threshold of 20% below "business as usual ". GHG emissions associated with the proposed modifications were estimated separately for four categories of emissions: (1) construction; (2) energy use, including electricity and natural gas usage; (3) water consumption; (4) waste management; and (5) transportation. The analysis includes a baseline estimate assuming 2005 Title 24- compliant buildings, which is considered business as usual for the proposed modifications. For "business as usual" conditions, emissions were calculated without implementation of the Pavley standards or Low Carbon Fuel Standard. The proposed modifications would include a number of project design features that would reduce the project's GHG emissions including land use and community design measures, transit facilities, and building siting and construction, as identified in the Global Climate Change Evaluation. These measures were taken into account when estimating the proposed modifications' total CO2 equivalent emissions as shown in Table 1 below. As noted in Section 3.0 above, no changes to the hotel portion of the FC -2 site are proposed; however, the GHG emissions calculations include the hotel use in order to achieve a holistic view of the FC -2 site. As such, the GHG emissions from the proposed modifications would be expected to be lower than that outlined in Table 1 below. Amortized over 30 years, construction would contribute 174 metric tons per year of CO2 emissions. These emissions were added to the operational GHG emissions to evaluate their significance. The results of the inventory for operational emissions for business as usual are presented in Table 1. These include GHG emissions associated with buildings (natural gas, purchased electricity) and water consumption (energy embodied in potable water). 2015 -05 -26 Agenda Packet Page 378 Table 1 Summary of Estimated Operational Greenhouse Gas Emissions Source: SRA2014 As shown in Table 1, the proposed modifications would meet the significance threshold by reducing operational GHG emissions by 38.27 %. Project emissions, with inclusion of GHG reduction measures, would achieve a reduction greater than the City's 20% reduction from "business as usual" threshold. Again, as noted previously, these calculated emissions also include the hotel portion of the FC -2 site, which would not change under the proposed modifications. As such, the GHG emissions resulting from the proposed modifications would be lower than that identified in Table 1 above. The proposed modifications would, therefore, meet the goals of AB 32. Impacts resulting from emissions of greenhouse gases would therefore be less than significant. Water Resources and Water Quality Impacts to water quality are addressed in Section 5.10 of the FEIR. SPA -level water quality technical reports were completed for the approved project as analyzed in the FEIR. The proposed modifications would continue to comply with all applicable rules and regulations including compliance with NPDES permit requirements for urban runoff and storm water discharge. Best Management Practices (BMPs) for design, treatment and monitoring for storm water quality would be implemented as delineated in the FEIR with respect to municipal and construction permits. Compliance with all applicable rules and regulations governing water quality as well as implementation of all mitigation measures outlined in Section 5.10 of the FEIR would ensure no additional impacts to water quality beyond those previously analyzed would occur as a result of the proposed modifications. 2015 -05 -26 Agenda Packet Page 379 Emission Source Annual Emissions (metric tonslyear) I CO2 CHa N20 Operational Emissions Electricity Use Emissions 464 0.0193 0.0052 Natural Gas Use Emissions 813 0.0904 0.0015 Water Consumption Emissions 208 0.0087 0.0023 Waste Management Emissions 25 1.14850 — Vehicle Emissions 4,571 0.0317 0.2093 Amortized Construction Emissions 174 — — Total 6,255 1.6351 0.2183 Total CO2 Equivalent Emissions 6,360 Business as Usual CO2 Equivalent Emissions 10,606 Reduction 38.27% Source: SRA2014 As shown in Table 1, the proposed modifications would meet the significance threshold by reducing operational GHG emissions by 38.27 %. Project emissions, with inclusion of GHG reduction measures, would achieve a reduction greater than the City's 20% reduction from "business as usual" threshold. Again, as noted previously, these calculated emissions also include the hotel portion of the FC -2 site, which would not change under the proposed modifications. As such, the GHG emissions resulting from the proposed modifications would be lower than that identified in Table 1 above. The proposed modifications would, therefore, meet the goals of AB 32. Impacts resulting from emissions of greenhouse gases would therefore be less than significant. Water Resources and Water Quality Impacts to water quality are addressed in Section 5.10 of the FEIR. SPA -level water quality technical reports were completed for the approved project as analyzed in the FEIR. The proposed modifications would continue to comply with all applicable rules and regulations including compliance with NPDES permit requirements for urban runoff and storm water discharge. Best Management Practices (BMPs) for design, treatment and monitoring for storm water quality would be implemented as delineated in the FEIR with respect to municipal and construction permits. Compliance with all applicable rules and regulations governing water quality as well as implementation of all mitigation measures outlined in Section 5.10 of the FEIR would ensure no additional impacts to water quality beyond those previously analyzed would occur as a result of the proposed modifications. 2015 -05 -26 Agenda Packet Page 379 Noise The Acoustical Assessment (Dudek 2015) concludes that the future noise levels from traffic would exceed the City's maximum exterior noise level criterion of 65 dBA CNEL above the first floor at the both the residential units fronting SR -125 and the Bus Rapid Transit corridor. Additionally, the noise levels at the exterior use areas for the mixed use buildings on the northeastern portion of the site would exceed the City's limit. However, the Otay Ranch GDP has policies in place to require appropriate sound attenuation project features for all required residential open space and public open space areas that are exposed to a noise level of 65 dBA CNEL or greater. Consistent with these policies, balconies planned on these residential units that are counted toward any open space requirements would incorporate appropriate sound attenuating project features around the perimeter of the balconies. As a result, these outdoor areas would not exceed the 65 dB CNEL threshold. This analysis also demonstrates that HVAC, truck traffic, loading and unloading, and trash collection would not exceed the City's applicable limits established in the noise ordinance in accordance with Mitigation Measure 5.5 -1 of the approved FEIR. Additionally, consistent with Mitigation Measure 5.5 -2 of the approved FEIR, the proposed project would not result in noise levels that exceed 70 dBA CNEL at patron - occupied exterior areas of the proposed commercial land uses. Therefore, no new significant impacts would occur beyond what is analyzed in the FEIR. Traffic, Circulation, and Access Impacts to traffic are addressed in Section 5.3 of the FEIR. A traffic analysis has been conducted to evaluate the potential traffic impacts associated with the proposed modifications (Chen Ryan 2015). The trip generation rate utilized for the entire PA 12 (Freeway Commercial land use) as analyzed in the FEIR was 40 trips per 1,000 square -feet of commercial space. The FC -2 site, when accounting for the proposed modifications, consists of hotel uses, residential, mixed- use commercial, and park, and is located within 1,500 feet (less than 10 minutes of walking) of the Otay Ranch Town Center, grocery, banking, drugstore, postal services, both fast food and sit - down restaurants, as well as a future BRT station (this area encompasses the FC -1 portion of PA 12). A 15% trip reduction was utilized in the project's traffic analysis to account for the mixed - use nature of the project as well as its proximity to transit, consistent with SANDAG guidance (Chen Ryan 2015). With a 15% transit and mixed -use reduction, the FC -2 site would generate approximately 7,506 daily trips, which is lower than the entitled land use trip generation of approximately 12,145 daily trips for the FC -2 site. Additionally, the traffic analysis accounted for the hotel portion of the FC -2 site; under the proposed modifications, the hotel portions for the FC -2 site would not 2015 -05 -26 Agenda Packet Page 380 change. Therefore, the proposed modifications would result in fewer trips than analyzed in the traffic analysis. Since the proposed modified land uses would generate less traffic than the entitled land uses, there would be no additional traffic impacts associated with the proposed modifications. Therefore, no new significant impacts would occur beyond what is analyzed in the FEIR. Public Services and Utilities Impacts to public services and utilities are addressed in Section 5.12 of the FEIR. A Water System Evaluation memorandum was prepared by Dexter Wilson for the project (Dexter Wilson 2014a). Additionally, a Sewer System Evaluation was prepared for the proposed project (Dexter Wilson 2014b). Water Demand and Water System The approved project water demands were included in the 2010 Water Resources Master Plan. Table 2 summarizes the approved project water demands as presented in the Water Resources Master Plan and projected demand based on the proposed modifications. As shown, projected water demand from the proposed modifications would increase by 136,378 gallons per day, or 13 acre -feet per year from that assumed in the Water Resources Master Plan (Dexter Wilson 2014). Table 2 Proposed Project Water Demand Summary Land Use Acres Building Units Unit Demand Factor Total Demand (gpd) Approved Water Demand (2010 WRMP) Commercial 29.9 1 T 1,785 gpd /ac 53,372 Proposed Modification Potable Water Demand Multi - Family Residential 600 255 gpd /unit' 153,000 Hotels 300 115 gpd /unit' 34,500 Commercial 1.4 1,607 gpd /ac' 2,250 Subtotal 189,750 Increased Water Demand 136,378 Source: Dexter Wilson 2014a Notes: gpd = gallons per day Assumes recycled water to be used for irrigation The recommended water system was outlined in the 2002 Sub Area Master Plan for the approved project and included in the 2010 Water Resources Management Plan. As shown in Table 2, the 2015 -05 -26 Agenda Packet Page 381 water demand for the project exceeds what was estimated in the 2010 Water Resources Management Plan. On April 1, 2015 the Otay Water District approved a Water Supply Assessment and Verification Report for the proposed project. The Water Supply Assessment and Verification Report projected an approximately 173 acre -feet per year increase in demand beyond what was estimated in the 2010 Water Resources Master Plan, and an approximately 46 acre -feet per year increase in demand beyond what was estimated in the 2013 Water Supply Assessment and Verification Report for a prior iteration of the proposed project. The demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 Urban Water Management Plan. The sizing of the existing 16 -inch water line in Olympic Parkway, 20 -inch line in Eastlake Parkway, and 12 -inch line in Town Center Drive, and 12 -inch lines within FC -1 are adequate to support the proposed modifications and, therefore, no changes to the approved project water system as analyzed in the FEIR are necessary as a result of the proposed modifications (Dexter Wilson 2014). Additionally, the proposed modifications would comply with the City of Chula Vista Guidelines for water conservation, including the use of recycled water for landscaping and implementation of additional water conservation measures such as hot water pipe insulation, pressure reducing valves, and water efficient dishwashers. Regarding recycled water use, the proposed modification would use recycled water for irrigation of the park site and common areas associated with the commercial and residential sites. Table 3 shows the average recycled water demand associated with the proposed project. Table 3 Proposed Project Projected Recycled Water Demand Source: Dexter Wilson 2014a Notes: gpd = gallons per day As shown in Table 3, the estimated average recycled water demand for the proposed modifications is 31,610 gallons per day, or 35.4 acre -feet per year (Dexter Wilson 2014). 2015 -05 -26 Agenda Packet Page 382 Land Use Quantity Recycled Water Factor Net Recycled Acreage Unit Rate Average Demand Multi - Family Residential 600 units 15% 45 gpd /unit 27,000 Commercial 1.4 acres 10% 0.4 2,155 gpd /ac 300 Park 2.0 acres 100% 2.0 2,155 gpd /ac 4,310 Total 31,610 gpd Source: Dexter Wilson 2014a Notes: gpd = gallons per day As shown in Table 3, the estimated average recycled water demand for the proposed modifications is 31,610 gallons per day, or 35.4 acre -feet per year (Dexter Wilson 2014). 2015 -05 -26 Agenda Packet Page 382 Wastewater Demand and Wastewater System The August 2004 approved SPA plan provided projected wastewater flows. Table 4 shows a comparison between projected wastewater flows for the approved project and wastewater flows based on the land uses of the proposed modifications. Table 4 Proposed Modifications Wastewater Flow Summary Land Use Acres Building Units I Generation Factor Average Flow (gpd) Previously Approved Wastewater Flow Commercial 34.5 2,500 gdp /ac 1 2,500 gpd /ac 86,250 Proposed Project Wastewater Flow Multi - Family Residential -- 600 182 gpd /unit 109,200 Hotels -- 300 76 gpd /unit' 22,800 Park 2.0 -- 410 gpd /ac 820 Commercial 1.4 1,401 gpd /ac 1,960 Subtotal 134,780 Increased Wastewater Flow 48,530 Increased Wastewater EDUs 211 Source: Dexter Wilson 2014b Notes: gpd = gallons per day, EDU = equivalent dwelling unit Assumes recycled water to be used for irrigation As shown, an increase of 211 equivalent dwelling units is estimated from that estimated as part of the approved project (Dexter Wilson 2014). The Poggi Canyon Basin Gravity Sewer Development Impact Fee Update (DIF report) was completed in April 2009, which projected wastewater flows associated with the Poggi Canyon Interceptor. Table 5 shows a comparison of wastewater flows associated with the proposed modifications and projected flows as presented in the DIF report. Table 5 Proposed Project and Poggi Basin Wastewater Flow Summary Description Quantity Unit Flow Factor I Average Flow, gpd EDUs 2009 DIF Study C -1 30.4 ac 2,500 gdp /ac 76,000 330.4 C -2 8.2 ac 2,500 gdp /ac 20,500 89.1 Subtotal 2009 DIF Study 420 2015 -05 -26 Agenda Packet Page 383 Table 5 Proposed Project and Poggi Basin Wastewater Flow Summary Description Quantity Unit Flow Factor I Average Flow, gpd EDUs Proposed Modifications Multi - Family Residential 600 units 182 gpd /unit 109,200 474.8 Hotels 300 units 76 gpd /unit 22,800 99.1 Park 2.0 acre 410 gpd /ac 820 3.6 Commercial 1.4 acre 1,401 gpd /ac 1,960 8.5 Subtotal Proposed Modifications 586 Increase 1 166 Source: Dexter Wilson 2014b Notes: gpd = gallons per day As shown, the proposed modifications exceed the Poggi Basin projections in the 2009 DIF report by approximately 166 equivalent dwelling units. The proposed on -site wastewater system would consist of gravity sewer lines that would convey flow to the Poggi Canyon Interceptor in Olympic Parkway. Based on the average flow presented in Table 4 and a peak factor of 2.28 from the City Subdivision Manual, the projected peak flow for the proposed modifications is 0.39 million gallons per day. An 8 -inch gravity sewer line with a minimum slope of 0.53% is adequate to convey this projected total flow. Additionally, the proposed modifications do not require additional reaches of the Poggi Interceptor to be upgraded in the future. Therefore, although the proposed modifications would exceed the units anticipated in the 2009 Poggi DIF report, the limits of the required DIF improvements remain the same. Additionally, the proposed modifications would be required to update the Poggi DIF study as a condition of approval (Dexter Wilson 2014b). The project is consistent with FEIR Mitigation Measures 5.12 -11 through 5.12 -13, which require the applicant to demonstrate adequate capacity in the Poggi Canyon sewer line. As demonstrated above, there is adequate sewer capacity. Also, when the proposed project comes forward for approval, it will be conditioned to pay sewer fees and connect to the sewer system. Summary When compared to what was previously analyzed in the FEIR, the proposed project would represent an increase in water and wastewater demand. However, the proposed modifications would not exceed the capacities of the existing water and wastewater systems as well as those proposed under the FEIR. Additionally, on April 1, 2015 the Otay Water District approved a Water Supply Assessment and Verification Report for the proposed project. As such, the 2015 -05 -26 Agenda Packet Page 384 Addendum to EIR Otay Ranch r Commercial Sectional Planning Area Plan Plannina Area proposed modifications would not result in any new significant environmental effects beyond those previously analyzed under the FEIR for the approved project. I This document has identified all changed circumstances and new information and memorializes in detail the City's reasoned conclusion that none of these changes create the conditions requiring the preparation of a Subsequent or Supplemental EIR pursuant to CEQA Guidelines, Sections 15162 and 15163. Pursuant to Section 15164 of the State CEQA Guidelines and based upon the above discussion, I hereby find that approval and implementation of the proposed project will result in only minor technical changes or additions, which are necessary to make the FEIR adequate under CEQA. ;� Chen Ryan. 2015. Otay Ranch PA 12 - Trip Generation Review. February 12. City of Chula Vista. 2003. Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area (SPA) Plan Planning Area 12. SCH ff 1989010154. Dexter Wilson Engineering, Inc. 2014a. Otay Ranch Planning Area 12 Freeway Commercial SPA Amendment Water System Evaluation. December 17. Dexter Wilson Engineering, Inc. 2014b. Sewer System Evaluation for the Otay Ranch Planning Area 12 Freeway Commercial SPA Amendment. December 17. Dudek. 2015. PA -12 Acoustical Assessment Report. February 12. GEOCON, Inc. 2001. Geotechnical Jnvestigation Otay Ra7l.ch, Village 12. August. 116 7266 April 2015 2015 -05 -26 Agenda Packet Page 385 SRA (Scientific Resources Associated). 2014a. Air Quality Analysis for the Otay Ranch Planning Area 12. July 24. SRA. 2014b. Global Climate Change Evaluation for the Otay Ranch Planning Area 12. 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Copyright 2009 ES ncinitas Ra a San Diego Country Fbway Estates P a c i f i c San Gigo Santee cp. aside Ai� Ha ton 1p Ca rryo n C e a /% Ell La ) Casa J Mesa OFD-Wunt Hela Rancho San n spring' ff;o Grore Vslsy Coy ado Project Site Na ❑ I Rrit's ym m `LAY. Chula Vista nil � Reach ii'ri — --- ---- I ! MEXICO e 0 5 10 s ' 'l Miles � DUDEK Otay Ranch Freeway Commercial SPA Plan - Planning Area 12 Addendum FIGURE 1 Regional Map 2015 -05 -26 Agenda Packet Page 387 rT . r fanz "W MW 4-MWdM"rq" i _ I 12 `- s ' 6 V Project Site .1 i � s� ! I• ` II S wow C. I C. O 125 � �� •�� , .. 0W mono MRIVOW t r •r. Lka e 0 250 500 0 ' 'Feet a IV D U D E K I AERIAL SOURCE BING MAPPING SERVICE U 0 Otay Ranch Freeway Commercial SPA Plan - Planning Area 12 Addendum FIGURE 2 Vicinity Map 2015 -05 -26 Agenda Packet Page 388 n �Ga I� I � I�I D U D E K SOURCE: BALDWIN AND SONS, LLC Hotel: 148 rooms CYqJ 2 Acre Public Park (with 2 acres of equivalency enhancement) Hotel: 152 rooms O /yiryp c� ark way mss_, i T I i - Residential: 300 units (apartments) Retail: 15,000 sf (mixed -use buildings, along Town Center Drive) Residential: 300 units (condos) Otay Ranch Freeway Commercial SPA Plan - Planning Area 12 Addendum FIGURE 3 Site Plan 2015 -05 -26 Agenda Packet Page 389 N O N U7 0 1.0 Executive S N Table 1 -1. Summary of Impacts and Mitigation OtnvRnnA Plnnnina Area V) lid'' .QPA Plate Landform Alteration/Aesthetics: There would.be an overall Significant. change from existing Otay Ranch area topography and landscape from predominantly rural to more urban /developed character. There are no scenic vistas in the area or are there at present scenic highways. The existing visual character of open space would be de ded. Light and Glare: Significant. Light and glare impacts would increase with development of the FC Site and nighttime illumination impacts would increase with implementation of the FC Site No feasible mitigation measures have been identified to reduce this impact. 5.2 -1 All street lighting shall conform to City standards. The design of poles and fixtures shall be consistent with those adopted for the Otay Ranch community. Parking areas, access, drives, and internal vehicular circulation areas shall have sufficient illumination for safety and security. lighting fixtures shall be a zero cutoff at the project edges. The parking lot illumination level shall achieve a uniformity ratio of 3:1 (average to minimum with a minimum of 1.0 foot candles. unmitigated visual impacts would occur Impacts would not be significant Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -11 1X192 CHAPTER 01 Table 1 -l.d" 113I M3 ' ro m as �o w - ........ Significance Potential Environmental Impacts determination Before Mitigation Measures Level of Significance Mitigation After Mitigation 11MA11I: FU 1 0"W .. � . A ) . ldi Land Use Compatibility: Landscaping, grading, and buffering No significant impacts. No mitigation measures are required. Impacts would not be significant standards have been incorporated into the SPA Plan to avoid land use interface impacts between uses, both internally and extemall . Established Community Character: Development of the Significant No feasible mitigation measures have been identified to Significant and not mitigable cumulative impacts. property would result in a significant change in the character of reduce this impact. the site from rural open s ace to an urban use. Relevant Plans, Policies, and Ordinances: land use policies No significant impacts. No mitigation measures are required. Impacts would not be significant that are provided in the SPA PIan include landscape design concepts, building siting and construction, grading policies, buffering guidelines, and provision of public facilities. These policies are part of the project design and are not included as Landform Alteration/Aesthetics: There would.be an overall Significant. change from existing Otay Ranch area topography and landscape from predominantly rural to more urban /developed character. There are no scenic vistas in the area or are there at present scenic highways. The existing visual character of open space would be de ded. Light and Glare: Significant. Light and glare impacts would increase with development of the FC Site and nighttime illumination impacts would increase with implementation of the FC Site No feasible mitigation measures have been identified to reduce this impact. 5.2 -1 All street lighting shall conform to City standards. The design of poles and fixtures shall be consistent with those adopted for the Otay Ranch community. Parking areas, access, drives, and internal vehicular circulation areas shall have sufficient illumination for safety and security. lighting fixtures shall be a zero cutoff at the project edges. The parking lot illumination level shall achieve a uniformity ratio of 3:1 (average to minimum with a minimum of 1.0 foot candles. unmitigated visual impacts would occur Impacts would not be significant Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -11 1X192 CHAPTER 01 Table 1 -l.d" 113I M3 ' ro m as �o w - ........ Executive gage 1 -12 Otay Ranch Planning Area 12 EIR 2 Free or rCommercial W Significance Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation Mitigation 5.2 -3 Light standards shall not exceed 35 feet in height. 5.2-4 Unless otherwise specifically approved in the Design Review process, exterior pole lighting shall be either high Pressure Sodium (HPS) or Metal halide (MH). 5.2 -5 Lighting shall be indirect, except for parking areas. Overhead pole mounted downward lighting shall be implemented. Light fixtures shall not be placed more than 35 feet above grade- 5.2-6 Lighting levels shall emphasize wailing areas so as to clearly identify the pedestrian walkway and direction of travel. 5.2-7 Outdoor pedestrian use areas, such as courtyards, entryways, and walkways, shall have sufficient illumination for safety and security. Primary pedestrian use area lighting shall achieve a uniformity ratio of 3:1, with an average illumination of 0.60 -foot candles and a minimum of 1.0 foot candles. 5.2 -8 Service area lighting shall be contained within the service yard boundaries and enclosure walls. No light spillover shall be permitted. 5.2 -9 Earthen berms, walls, or dense landscaping shall be provided as appropriate throughout the site to minimize off -site spill lighting from vehicular headlights in parking lots. gage 1 -12 Otay Ranch Planning Area 12 EIR 2 Free or rCommercial W N O N U7 .3 G. w ro x co Significance 'Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures Aber Mitigation Mitigation As,. Direct Impacts impacts would not be significant Direct Impacts Existing + Project Scenario (1,215,000 square feet) Significant. The following driveways would be directly impacted with Existing + EWect Scenario implementation of the project. 5.3 -1 Olympic Parkway/Eastlake Olympic Parkway/Eastlake Commercial/Project Driveway Commercial/Project Driveway intersection'. Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of the intersection improvement, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal, including interconnect wiring, mast arms, signal heads, and associated equipment , underground improvements, standards and luminaries at the Olympic Parkway /Eastlake Commercia"mject Driveway intersection. Provide intersection lane geometry as shown in Figure 29 on opening day. The design of the signal shall be to the satisfaction of the City Engineer. Provide tarn lane storage lengths as indicated in Table 20 of the Freeway Commercial Traffic Report (hereinafter referred to as Traffic Report). Eastlake ParkwayNillage I I Access/Project Driveway Significant. 5.3 -2 Village I l/Eastlake Parkway Access/Project Impacts would not be significant. Driveway intersection. Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to the issuance of building permits triggering the construction of intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal, Including interconnect wiring, ..... _ ----- ,, ......................__ _�..— -..._. 0 ui N OC G. It L0 Executive Page 1 -14 Otay Ranch Planning Area 12 EIR – Freeway Commercial 1K192 CHAPTER Of Table 1 -Ldar 1131A3 W w Significance Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation Mitigation mast arms, signal heads, and associated equipment, underground improvements, standards and luminaries at the Eastlake ParkwayNiliage 11 Access/Project Driveway intersection. Provide intersection lane geometry as shown in Figure 29 on opening day. The design of the signal shall be to the satisfaction of the City Engineer. Provide turn lane storage lengths as indicated in Table 20 of the Traffic Report Year 2005 without SR 125 at 871,000 square feet .Impacts would not be significant. Olympic Parkway/Eastlake Commercial/Project Driveway Significant 5.3 -3 Olympic ParkwaylEastlake Commercial/Project Driveway: Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to the issuance of building permits triggering the construction of intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal, including interconnect wiring, mast arms, signal heads and associated equipment, underground improvements, standards and luminaries at the Olympic Parkway/Eastlake Commercid/Project Driveway (Street A) intersection. Provide intersection lane geometry as shown in Figure 29 of the Traffic Report The design of the signal shall be to the satisfaction of the City Engineer. Turn lane storage lengths shall be provided as indicated in Table 20 of the Traffic Report Eastlake ParkwayNillage 11 Access/Project Driveway Significant 5.3-4 Village I I/Eastlake Parkway Access/Project Impacts would not be significant Driveway: Phasing of the following improvements shall be consistent with the project PFFP and to the Page 1 -14 Otay Ranch Planning Area 12 EIR – Freeway Commercial 1K192 CHAPTER Of Table 1 -Ldar 1131A3 W w v n Potential Environmental Impacts - _._ F....._.. M N Level of Significance After Mitigation O F+ U7 O U7 v n Potential Environmental Impacts Significance Determination Before Miti anon Mitigation Measures Level of Significance After Mitigation satisfaction of the City Engineer. Prior to the issuance of building permits triggering the construction of intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal, including interconnect wiring, mast arms, signal heads and associated equipment, underground improvements, standards and luminaries at the Eastlake Parkway/Village 11 Access//Project Driveway (Street "B ") intersection. Provide intersection lane geometry as shown in Figure 29 of the Traffic Report. The design of the signal shall be to the satisfaction of the City Engineer. Turn lane storage lengths shall be provided as indicated in Table 20 of the Traffic Report. Birch Road/EUC Access/Project Driveway Significant. 5.3 -5 Birch Road/EUC Access/Project Driveway: Impacts would not be significant. Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to the issuance of building permits triggering the construction of intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal, including interconnect wiring, mast arms, signal heads and associated equipment, underground improvements, standards and luminaries at the Birch Road/EUC Accesst/Project Driveway intersection. Provide intersection lane geometry as shown in Figure 29 of the Traffic Report The design of the signal shall be to the satisfaction of the City Engineer. Turn lane storage lengths shall be provided as indicated in Table 20 of the Traffic Report. Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -15 1 %!92 CHAPTER 01 Table l -I.doc U31N3 ro w va w 4 0 ui N OC a 1.0 Executive Sumtza ro w x co " Significance Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation Mi tion Cumulative Impacts Significant. Cumulative Impacts impacts would not be significant. Existing + Project (1,215,000 square feet) Fast "H" Street from 1-805 to Hidden Vista Drive 5.3.6 East "H" Street -- I -805 to Hidden Vista Drive (Existing + Project) Prior to issuance of building permits, the applicant shall contribute to the Traffic Development Impact Fee (TDIF) program toward adding a 0 westbound lane on East "ll" Street between I -805 and Hidden Vista Drive. Year 2005 without SR 125 at 871,000 square feet Significant. 5.3.7 Telegraph Canyon Road/Paseo Ranchero Impacts would not be significant. Telegraph Canyon Road/Pasco Ranchero Intersection Intersection (Year 2005 Without SR 125) Prior to issuance of building permits, the applicant shall contribute to the TDIF toward providing northbound and eastbound right -turn overlap phasing. Telegraph Canyon Road/Otay Lakes Road Intersection Significant. 5.3 -8 Telegraph Canyon Road/Otay Calves Road Impacts would not be significant. intersection (Year 2005 Without SR 125) Prior to issuance of building permits, the applicant shall contribute to the TDIF toward providing a third northbound through lane at the intersection and continue the third northbound lane north of the intersection. Year 2005 without SR 125 with entire project (1,215,000 Significant. 5.3 -9 East "H" Street/Paseo Ranchero Intersection — Impacts would not be significant square feet) Year 2005 without SR 125 with entire project East "H" Street/Paseo Ranchero Intersection Prior to issuance of building permits, the applicant shall contribute to the TDIF toward providing a new eastbound right tum lane m Fast "H" Street at Pasco Ranchero if the entire project is constructed before SR 125, Page 1 -16 Otay Ranch Planning Area 12 EIR -- Freeway Commercial b 110192 CHAPTER 01 Table 1 -1 dae NIA73 OQ w N Page 1 -16 Otay Ranch Planning Area 12 EIR -- Freeway Commercial b 110192 CHAPTER 01 Table 1 -1 dae NIA73 OQ w N I:I N O N U7 G. w ro x co K ro w va w Otay Ranch Planning Area 12 EIR — Freeway Commercial 1K192 CHAPTER 01 Table I -1-doc 1131103 Page 1 -17 Significance Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation Miggoom Eastlake Parkway /Otay Lakes Road Intersection Significant 5.3 -10 Eastlake Parkway /Otay lakes Road Impacts would not be significant Intersection — Year 2005 without SR 125 with entire project Prior to issuance of building permits, the applicant shall contribute to the TDIF toward adding a fourth through lane on Otay Lakes Road west of Eastlake Parkway, and a southbound right -turn lane on Eastlake Parkway if the entire project is constructed before SR 125, Telegraph Canyon Road/Paseo Ranchero Intersection Significant. 5.3.11 Telegraph Canyon Road/Paseo Ranchero Impacts would not be significant Intersection Prior to issuance of building permits, the applicant shall contribute to the TDIF toward providing northbound and eastbound right -turn overlap phasing. Telegraph Canyon Road/Otay lakes Road Intersection Significant 5.3 -12 Telegraph Canyon Road/Otay Lakes Road Impacts would not be significant intersection Prior to issuance of building permits, the applicant shall contribute to the TDIF toward providing a third northbound through lane at the intersection and continue the third northbound lane north of the intersection. East "H" Street from 1 -805 to Hidden Vista Drive. Significant 5.3 -13 East "H" Street -- I -805 to Hidden Vista Drive Impacts would not be significant. Prior to issuance of building permits, the applicant shall contribute to the TDIF toward adding a Vu westbound lane on East "H" Street between I -805 and Hidden Vista Drive. Otay Ranch Planning Area 12 EIR — Freeway Commercial 1K192 CHAPTER 01 Table I -1-doc 1131103 Page 1 -17 .0 Executive Page 1 -18 Otay Ranch Planning Area 12 ErIR�— aUnER Commercial ro w va w Significance Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation Mitigation Year 2010 (1,215,000 square feet) Significant. 5.3 -14 Otay Lakes Road -- North of "H" Street Impacts would not be significant. Otay Lakes Road north of "H" Street Prior to issuance of building permits, the applicant shall contribute to the TDIF toward widening to 6 lanes or towards an intersection improvement, which provides additional capacity along Otay Lakes Road to the satisfaction of the City Engineer. Year 2020 (1,215,000 square feet) Significant. 5.3 -15 Telegraph Canyon Road — I -805 to Pasco Del Impacts would not be significant. Telegraph Canyon Road between 1 -805 and Pasco del Rey Rey Prior to issuance of building permits, The applicant shall contribute to the TDIF toward the planned City project to add a 4's westbound lane on Telegraph Canyon Road between I- 805 and the Vons Driveway. Freeways (1,215,000 square feet) Significant, 5.3 -16 1 -805 East "H" Street to Telegraph Canyon Impacts would remain significant. Existing + Project Road I -805 East "H" Street to Telegraph Canyon Road Additional lanes would be required to maintain acceptable LAS. Continued freeway planning efforts and deficiency planning by Caltrans and SANDAG will determine mitigation strategies for the regional freeway system. Year 2005 without Sit 125 (1,215,000 square feet) Significant. 5.3 -17 I -805 — Bonita Road to East' H" Street Impacts would remain significant. I -805 Bonita Road to Past "H" Street Additional lanes would be required to maintain acceptable LOS. Continued freeway planning efforts and deficiency planning by Caltrans and SANDAL will determine mitigation strategies for the regional freeway system. Page 1 -18 Otay Ranch Planning Area 12 ErIR�— aUnER Commercial ro w va w N O N U7 O U1 N y _ 1.0 Executive Su va a w ? Significance Potential Environmental Impacts Determination Before Mitigation Measures Level of Significance Mitigation After Mitigation 1 -805 Fast "H" Street to Telegraph Canyon Road Significant. 5.3 -18 I -805 — East "H" Street to Telegraph Canyon Impacts would remain significant. Road Additional lanes would be required to maintain acceptable LAS. Continued freeway planning efforts and deficiency planning by Caltrans and SANDAG will determine mitigation strategies for the regional freeway system. Year 2005 with SR 125 (1,215,000 square feet) Significant 5.3 -19 I -805 — Bonita Road to East "H" Street Impacts would remain significant 1 -805 Bonita Road to Bast "H" Street Additional lanes would be required to maintain acceptable LAS. Continued freeway planning efforts and deficiency planning by Caltrans and SANDAG will determine mitigation strategies for the regional freeway system. I -805 East "H" Street to Telegraph Canyon Road Significant 5.3 -20 I- 805 -- East "H" Street to Telegraph Canyon Impacts would remain significant. Road Additional lanes would be required to maintain acceptable CAS. Continued freeway planning efforts and deficiency planning by Caltrans and SANDAG will determine mitigation strategies for the regional freeway system. Internal Circulation (1,215,000 square feet) 5.3.21 Street "A" (Spine Road)/Driveway 5 Impacts would not be significant. Street "A" (Spine Road) Driveway 5 Intersection Intersection Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of the intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal including interconnect wiring, mast arms, signal heads, and associated equipment, underground improvements, standards and luminaries at the Street "A" Otay Ranch Planning Area 12 EIR — Freeway Commercial IK192 CHAPTER 01 T-We I -l.dac 1131103 ro w va w CO CO Page 1 -19 N O N U7 O Ul ro w oc w n "PYP1`ITtlVP- Significance Potential Environmental Impacts Determination Before Mitigation Measures (Spine Road)/Driveway 5 intersection. The design of the signal shall be to the satisfaction of the City Engineer. The applicant shall provide turn lane storage lengths as illustrated in Appendix K of the Traffic Report Street "A" (Spine RoadyDriveway 6 Intersection Significant 1 5.3.22 Street "A" (Spine Intersection Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of the intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal including interconnect wiring, mast arms, signal heads, and associated equipment, underground improvements, standards and luminaries at the Street "A" (Spine RoadyDriveway 6 intersection. The design of the signal shall be to the satisfaction of the City Engineer. The applicant shall provide turn lane storage lengths as illustrated in Appendix K of the Traffic Report Street "A" (Spine Road�Street "B" Intersection Significant 5.3.23 Street "A" (Spine Road)/Street Intersection Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of the intersection improvements, the applicant shall enter into an agreement to design, construct, and secure a fully actuated traffic signal including interconnect wiring, mast arms, signal heads and associated equipment, underground improvements, standards and luminaries at the Street "A" -- Level of Significance After Mitigation Impacts would not be significant. Impacts would not Page 1 -20 Otay Ranch Planning Area 12 EIR -- Freeway Commercial IK192 CHAPTER 01 Table 1 -1.dac 1131103 ■ N O N U7 O U7 N � l .Q Executive S2= .. o� a ti Potential Environmental Impacts Significance Determination Before Mitigation Measures Significance Level of Si Mimi ation After Mitigation (Spine RoadyStreet "B" intersection. The design of the signal shall be to the satisfaction of the City Engineer. The applicant shall provide turn lane storage lengths as illustrated in Appendix K of the Traffic Report. PFFP (1,215,000 square feet) Significant 5.3 -24 Street "A" (Spine Road)- Olympic Parkway to Impacts would not be significant. Street "A" (Spine Road), Olympic Parkway to Birch Road Birch Road Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of these street improvements, the applicant shall enter into an agreement to design, construct, and secure full street improvements. Eastlake Parkway, Olympic Parkway to Birch Road Significant, 5.3 -25 Eastlake Parkway — Olympic Parkway to Birch Impacts would not be significant Road Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of these street improvements, the applicant shall enter into an agreement to design, construct, and secure full street improvements. Birch Road, La Media Road to Eastlake Parkway Significant. 5.3 -25 Birch Road — La Media Road to Eastlake Impacts would not be significant Parkway-, Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of these street improvements, the applicant shall enter into an agreement to Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -21 W92 CHAPTER 01 Table 1 -!alit 1137N3 ro w va 4- 0 0 0 u� N oD Z a w ro ro w va 4- 0 1 A Executive Summary Significance Level of Significance Potential Environmental ]Impacts Determination Before Mitigation Measures After Mitigation Mitt tion design, construct, and secure full street improvements la Media Road, Olympic Parkway to Birch Road Significant 5.3 -27 La Media Road — Olympic Parkway to Birch Impacts would not be significant Road: Phasing of the following improvements shall be consistent with the project PFFP and to the satisfaction of the City Engineer. Prior to issuance of building permits triggering the construction of these street improvements, the applicant shall enter into an agreement to design, construct, and secure full street improvements. Transit Significant. 5.3 -28 All transit crossings within the project site and Impacts would not be significant at the project driveways shall conform to MTDB standards. MTDB will likely conduct a traffic report at the time of introducing rapid transit on -site. Construction: Estimated construction emissions of NO. would exceed the Significant. 5.4-1 The following measures shall be specified as Air quality impacts would remain significant with threshold. With the use of commercial power, the estimated NO. notes on the project grading plans, and shall be implementation of the mitigation measures. emissions would be less than the threshold. implemented to minimize VOC and N% construction emissions: • Bring commercial power to the site prior to construction and require contractors to use commercial power wherever feasible • Develop a ride -share plan for workers • Develop a site construction traffic management plan to minimize vehicle traffic and vehicle idling time • Consolidate construction deliveries • Develop a plan for maximizing loads during hauling operations Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -22 1K192 cmAffER of Table l -Ldoc RUM 0 ui N a, o� a ro K ro w va 4- 0 N 1.0 Executive Summar Potential Environmental Impacts Significance Determination Before Ml ' tlon Mitigation Measures level of Significance After Mitigation • Prohibit truck idling in excess of two minutes • Use solar, battery or electrically powered lighted signs • To the extent possible, use vehicles powered by natural gas (CNG, LNG) rather than diesel or gasoline engines • Use architectural coatings with the lowest VOC content feasible 5.4-2 Although PMio construction emissions would not be a significant impact on regional air quality, the following measures shall be specified as notes on the project grading plans, and shall be implemented to minimize construction fugitive dust PM,o emissions: • Apply non -toxic soil stabilizers or area covers to all inactive construction areas • Replace ground cover in disturbed areas as quickly as possible • Enclose, cover, water or apply soil stabilizers to exposed piles • Water active sites at least twice daily and unpaved roads at least three times daily, particularly at the end of the days construction operations • Suspend all excavating and grading operations when wind gust speeds exceed 25 mph • All haul trucks to be covered or maintain at least two feed of freeboard • Maintain vehicle speeds on unpaved roads to 15 mph or less • Pave or use gravel at all construction access roads at least 100 feet on to the site from the main road(s) Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -23 1K)92 CNAnM 01 Table 1 -Ldoc 1131173 0 ui N 1.0 Executive Summary After Mitigation a v Use track -out and grizzlies to remove soil ro w Significance Level of Significance ro Potential Environmental Impacts K Determination Before Mitigation Measures After Mitigation 1M ation v Use track -out and grizzlies to remove soil and dust from vehicles leaving the site • Wash construction vehicles regularly Operation 5.4 -3 The following measures shall be implemented Estimated operations emissions of CO, VOC and NO. would to reduce mobile source operation emissions: exceed the guideline thresholds in both 2005 and 2010. s Provide preferential parking spaces for carpools and vanpools a Encourage ride-sharing a Encourage low emission fleet vehicles such as natural gas powered vehicles • Encourage use of public transportation • Work with local officials to provide efficient public transportation o Provide on -site or nearby access locations for bus or trolley stops • Encourage the use of shuttles to major transit stations and multi -modal centers s To the extent feasible, provide bicycle trails, paths and lanes o include bicycle parking facilities s Encourage tenants to provide showers for bicycling employees use Schedule truck deliveries and pickups for off -peak hours • Require on -site truck loading zones 5.4-4 To the extent feasible, the following measures shall be implemented to reduce stationary area source operation emissions: • Use solar or low- emission and energy efficient water heaters • Use central water heating systems • Use double -paned glass in windows • Use MM efficient pEkW lot ii is N O N U7 O U7 1.0 Executive Summary OC G. ° wPotential Environmental Impacts Siguifcance Determination Before Mitigation Measures Level of Significance Mi ' tion Aber Mitigation + Use lighting controls and energy efficient interior and exterior tights • Use energy efficient systems to control interior HVAC systems • Keep interior building temperatures at levels consistent with energy efficiency and human health and comfort • Use light- colored roof materials to reflect heat • Increase wall and attic insulation • Include passive solar building designs Construction: No significant impacts have been identified. No significant impacts. No mitigation measures are required. Impacts would not be significant. Operation: Noise -Land Use Compatibility: There would be a significant Significant. 5.5 -1 Prior to the approval of site development plans, With the mitigation measures described, there would be noise impact if commercial land uses on the project site are the Applicant shall submit a supplemental noise no significant noise -land use compatibility impacts, and developed such that persons using the properties would be analysis acceptable to the Director of Planning no significant impacts from noise generated on site. exposed to noise in excess of 70 dBA CNEL. There would be a and Building demonstrating the following. significant noise impact if a school or school -type use is included in the project, and is located such that students and staff are • Noise levels at exterior use areas of proposed exposed to noise levels in excess of 65 dBA CNEL. Hotels would not exceed 65 dBA CNEL; • Interior noise levels in habitable rooms of Noise Generated on the Project Site: There would be a proposed hotels would not exceed 45 dBA significant noise impact if stationary HVAC equipment generated CNEL; noise in excess of the limits of the Chula Vista noise ordinance. o Noise levels at student and staff- occupied There would be a significant noise impact if trucking, loading, areas of proposed school or day care facilities, and trash disposal activities on the site generated noise in excess including playgrounds, would not exceed 65 of the limits of the Chula Vista noise ordinance. dBA CNEL; • Noise levels generated on the project site, being the combined noise levels of HVAC Project - Generated Traffic Noise: There would be a significant equipment, truck traffic, loading and noise impact to the homes and school adjacent to Eastlake unloading, and trash collection, where these Parkway south of Clubhouse Drive. may occur simultaneously, would not exceed the applicable limits of the noise ordinance. • The sound wall to be constructed adjacent to the loading dock at the northeastern portion of Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -25 IKI92 CHAPTER OI Table I -Idoc WIM ro w va 4- 0 Kt- 0 ui N o� a. ro w K .e w uc 4 0 N 1.0 Executive Summary Potential Environmental impacts No significant impacts to cultural resources would occur. No archaeological or historical resources were identified during the cultural resource survey and through research conducted on the property Significance Determination Before No significant impacts. Grading impacts from development of the site could result in Significant. potentially significant impacts to buried paleontological resources in the Otay Formation. This could result in significant long -term direct impacts if fossils are found during the grading process. Page 1 -26 Mitigation Measures the McMillin property shall be designed to ensure that sound levels generated from the loading dock do not exceed 65 dBA CNEL for exterior use areas and 45dBA CNEL for habitable rooms, for a planned hotel to be located at the southeastern portion of the Otay Ranch Company portion of the site. 5.5 -2 If the applicant proposes outdoor uses (i.e., dining or recreation), prior to issuance of building permits, the applicant shall submit a supplemental noise analysis for outdoor uses proposed in the locations identified as impacted (70 dBA CNEL) in Figure 5.5 -1 of the EIR. The noise analysis shall demonstrate the following. • Noise levels at patron- occupied exterior areas of proposed commercial Iand uses would not exceed 70 dBA CNEU Since no prehistoric or historic resources were identified on the FC property, no mitigation measures are required. Level of Significance After Mitigation Impacts would not be significant. In accordance with the Program E1R mitigation measures, Impacts would not be significam the following mitigation measures are required for the development of the Planning Area 12- FC SPA and Tentative Map (TM) area: 5.7 -1 Prior to issuance of grading permits, the applicant shall confirm to the City of Chula Vista that a qualified paleontologist has been retained to carry out an appropriate mitigation program. The paleontologist shall attend pregrading meetings to consult with grading Otay Ranch Planning Area 12 EZR — Freeway Commercial 1K192 C11AMR 01 Wle 1 -1.dw 1/31103 N O N U7 O N OC a. w ro x co K LO Executive Sutr►mary ),Potential Environmental Impacts Significance Determination Before Miti anon Mitigation Measures Level of Significance After Mitigation paleontologist is defined as an individual with an M.S. or Ph.D. in paleontology or geology who is familiar with paleontological procedures and techniques. 5.7 -2 A paleontological monitor shall be present on- site at all times during the original cutting of previously undisturbed sediments of highly sensitive geologic formations (the Otay Formation) to inspect cuts for fossils. The paleontological monitor shall work under the direction of a qualified paleontologist. The monitor shall also periodically inspect original cuts in deposits with unknown resource sensitivity. A paleontological monitor is defined as an individual who has experience in the collection and salvage of fossil materials. In the event fossils are discovered in unknown sensitive formations, it may be necessary to increase the per -day field monitoring time. Conversely, if fossils are not discovered, the monitoring effort may be reduced. 5.7 -3 When fossils are discovered, the paleontologist or paleontological monitor shall recover them. In situations where recovery requires an extended salvage time, the paleontologist or paleontological monitor shall be allowed to direct, divert, or halt grading to allow recovery of fossil remains. Where deemed appropriate by the paleontologist or paleontological monitor, a screen- washing operation for small fossil remains shall be employed. 5.74 Prepared fossils, along with copies of all pertinent field notes, photographs, and maps shall be deposited at a scientific institution with paleontological collections, such as the San Diego Natural History Museum. A final summary report shall be completed that outlines the results of the mitigation program. Otay Ranch Planning Area 12 EIR — Freeway Commercial I %192 CHAPTER 01 Table I -I.dac 113103 ^0 OC A 4- O _. _ . Page 1 -27 N O N U7 O U7 N 1.0 Executive Sutnm a ro w Significance Level of Significance K Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation TR:ti....4:.... This report shall include discussion of the methods used, stratigraphy exposed, fossils collected, and the significance of the recovered fossils. There would be direct impacts to biological resources because Direct impacts would be 5.8 -1 Focused surveys for burrowing owl shall be Impacts would not be sil burrowing owl and northern harrier have been identified on the significant. conducted prior to grading. If occupied the mitigation measures. site. burrows are detected, passive relocation of the species shall be conducted to avoid impacts from grading. 5.8 -2 Focused surveys for active nests of the northern harrier shaIl be conducted prior to grading. If active nests are detected, and if construction activities occur between March 1 and July 31, construction activities shall be restricted within 900 feet of active nest sites. 5.8 -3 Prior to recordation of each final map, the applicant shall convey land within the Otay Ranch RMP Preserve at a ratio of 1.188 acres for each acre of development area as defined in the RMP, for a total of 135 acres. Implementation of the Freeway Commercial site would eliminate No mitigation is available None are available. Significant and unmitigable cumulative impacts. approximately 133 acres of agricultural fields, which could be to lessen this impact used as foraging areas for raptor species. 'The Program EIR 90-01 identified loss of raptor habitat as a significant impact, and development of the Freeway Commercial site would cumulatively contribute to this significant impact. The loss of agricultural grazing land and land suitable for the Direct impacts would not None available for the cumulative loss of agricultural Significant and not production of crops would result in a significant impact due to the be significant. Cumulative land. incremental loss of agricultural resources. These impacts were impacts would be assessed in the Program EIR (Elk 90 -01) for the larger Otay significant. Ranch GPA/GDP /SRP project, and were determined to be significant and not fully mitigated. The loss of 132+ acres of land Page 1 -28 ro w oc 4- 0 Otay Ranch Planning Area 12 EIR — Freeway Commercial IK192 CHAPTER 01 Table 1 -Ld" 11311V3 N O N Ul O Ul N a, a o� a ro K ro w va 4- O CO 1.0 Executive Summ Potential Environmental Impacts Significance Determination Before Mitigation Measures 'Level of Significance Miti lion After Mitigation would incrementally contribute to the loss of agricultural land in this region. The impacts of continued agricultural use of the land with Significant and mitigable. 5.9 -1 The agricultural plan in the Planning Area 12 Impacts would not be significant. adjacent land uses could also be significant upon those uses. FC SPA Plan shall be implemented. The plan Noise, odors, insects, rodents, and chemicals associated with includes, the following measures, which shall agricultural operations would result in indirect, short -term, be implemented to the satisfaction of the potentially significant impacts between the agricultural uses and Director of Planning and Building.- the adjacent developing urban uses. 0 A 200 -foot buffer shall be placed between property boundaries and agricultural operations; • If permitted interim agricultural uses require the use of pesticides, limits shall be established as to the time of day and the type of pesticide applications that may be used; • The use of vegetation along field edges to shield adjacent urban development (within 400 feet) from agriculture activities shall be encouraged; • Notification of adjacent property owners of potential pesticide applications through newspaper advertisement shall be accomplished prior to spraying; and • Fencing, where necessary, shall be installed to ensure the safety of Planning Area 12 PC patrons. 5.10 -1 Prior to issuance of each grading permit, a Impacts would not be significant Hydrology /Surface Water: Development of the proposed Significant. Planning Area 12 -FC site would result in an increase in the detailed drainage system design study shall be amount of runoff during storms due to the overall increase in prepared in accordance with the City of Chula impervious surfaces in the area. Based on the amount of Vista's standards and shall be approved by the additional development area, the surface runoff in a 50 -year and City Engineer - 100 -year storm event would increase with the implementation of the Planning Area 12 -FC site. Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -29 IK192 CHAPTER 01 Table 1 -1 -doe 1131)73 N O N U7 O U1 N 1.0 Executive Summ a ro w ro K x Significance Level of Significance Potential Environmental Impacts Determination ]Before Mitigation Measures Mitigation .after Mitigation Water Quality: Potential contamination of surface water could Significant. 5.10-2 Prior to issuance of each grading permit, the result from mishandling of fuel or other hazardous materials used project proponent shall submit an NOI and in the construction of the project. Construction activities and obtain an NPDES Permit for Construction equipment would utilize fuels and other hazardous substances that Activity from SWRCB. Adherence to all could be subject to runoff. conditions of the General Permit for Construction Activity is required. The permit requires development of a SWPPP and a Monitoring Plan for all phases of project construction. The SWPPP shall be incorporated into the grading and drainage design plans and shall provide for implementation of construction and postconstruction BMPs on -site to reduce the amount of pollutants and sediments in construction and postconstruction surface runoff before it is discharged into the natural drainages. The grading plans will note the condition requiring a SWPPP and Monitoring Program Plan. No grading will be performed during the rainy season (October 1 through April 30) without special erosion control measures approved by RWQCB. Groundwater Hydrology: The proposed development of the No significant impacts. 5.10-3 Prior to construction, all parties involved shall Impacts would not be significant. Planning Area 12- FCsite could increase the amount of meet to discuss the BMPs required by the impermeable surfaces, which could result in increased runoff and erosion control plan and identified in the reduced on -site water percolation. SWPPP prepared by the contractor pursuant to NPDES. The applicant shall be responsible for implementing, monitoring, and maintaining the required BMPs to ensure that the measures are working property, until the construction area has been permanently stabilized. Groundwater Quality: Although the increased exposure to No significant impacts. 5.10.4 Prior to approval of the TM and/or Site Plan Impacts would not be significant. urban pollutants could affect the quality of water recharging by the Design Review Committee, whichever groundwater, filtering would occur during percolation and the occurs first, the applicant shall demonstrate Planning Area 12 PC site has not been identified as a source of compliance with the City of Chula Vista significant groundwater recharge Storm Water and Discharge Control Ordinance and the National Pollutant Discharge Elimination 5 tem (NPDES) Page 1 -30 ro w oc 4- O ID Otay Ranch Planning Area 12 EIR -- Freeway Commercial IK192CHAPTFR0ITebiel -/aloe 1131193 O Ul N o� a ro ro w va 4- N 0 1.0 Executive Summar Potential Environmental Impacts Significance Determination Before Mitigation Mitigation Measures Level of Significance After Mitigation Municipal Permit (including the Final Model Si1SMP for the San Diego Region). The applicant shall obtain the approval of the City Engineer of a report that includes the following elements: i. Description of project characteristics, site conditions, flow patterns, pollutants emanating from the project site, and conditions of concern. ii. Description of site design and source control BMPs considered and to be implemented. iii. Description of applicable treatment control BMPs considered and to be implemented to reduce or treat the identified pollutants. iv. Justification for selection of the proposed treatment control BMP(s) including 1) targeted pollutants, justification, and alternative analysis, 2) design criteria (including calculations), 3) pollutants removal information (other than vendors specifications), and 4) literature references. v. Site plan depicting locations of the proposed treatment control BMPs; and vi. Operation and maintenance plan for the proposed treatment control BMPs. 5.10 -5 Prior to issuance of each grading permit, a SwPPP shall be prepared to the satisfaction of the City Engineer to ensure implementation of the BMPs required by the erosion control plan. Potential BMPs that could be used include the following. However, this does not preclude the use of other BMPs that would meet the requirements of the NPDES: i. Short-term placement of sediment trapping facilities such as sand bags, mattin , Otay Ranch Planning Area 12 EIR — Freeway Commercial Page 1 -31 1 %192 CHAPTER 01 ThUe 1 -Ldoc 1131163 P 1.0 Executive Summar n V S P 7 v Potential Environmental Impacts Significance Determination Before Mitigation Measures Level of Significance a Miti anon After Mitigation K e mulch, brash barriers, filters, berms, hay bales, silt fences, and/or sediment pools or other similar devices, along with all pertinent graded areas to minimize off -site sediment transport, Such facilities would likely be required for the base of manufactured slopes, as well as all areas adjacent to, or upstream of, major drainage courses and wetlands. ii. Hydroseeding of manufactured slopes following construction, together with provision of adequate water (through irrigation or truck watering) for an appropriate establishment period to be determined by the City Engineer. iii. Reclamation of all disturbed areas as soon as practicable after completion of grading. iv. Placement of temporary and/or permanent (if applicable) desilting basins, dikes, check dams, sediment basins, riprap, or other appropriate structures at applicable points upstream of all drainage courses and wetlands, or where substantial drainage alteration is proposed. v. Placement of energy dissipating structures (e.g., sediment basins, riprap aprons, water bars, or drop structures) at all storm drain, subdrain, and pipe outlets, as well as all drainage crossings, downstream outlets at all culverts and brow ditches, and applicable areas within drainage ditches or swales. vi. Use of subdrains in applicable areas to redirect subsurface flows. vii. Stabilization of construction vehicle and equipment access points by temporary Paving, graveling, and/or use of sediment trapping devices to reduce the movement of sediment onto public roads and rights - of-wa . Page 1 -32 Otay Ranch Planning Area 12 EIR — Freeway Commercial IX192 CHAPTER 01 Table l -l.doc I/3IA73 1.0 Executive S N OC Significance Level of Significance ro Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation ?; Mitigation viii. Restriction of grading during the rainy season, October 1 through April 30, unless related erosion and sedimentation control measures are implemented to the satisfaction of the City Engineer. Erosion and sedimentation control measures shall be in place a minimum of five days prior to any forecasted rain and shall include, but not be limited to: • Silt fencing shall be placed in all locations along the corridor where grading is higher than adjacent natural areas_ • Silt fencing shall be maintained in a functioning condition until site preparation for the next phase of construction begins. • Sand hags will be used as necessary to ensure that the silt fence adequately maintains its integrity. A solid line of sand bags will be placed on the silt fence adjacent to any body of water or creek. • Construction fencing shall be placed along the corridor to keep vehicles and equipment from inadvertently entering natural areas. • Adequate liners will be used to eliminate the potential for soil migration which might be caused by precipitation from construction areas where there is bare soil. Surface Rupture. The project site is not located within an No significant impacts. n _, No mitigation measures are required. acts would not be significant g Alquist- Priolo Earthquake Study Zone and no evidence of active faults or potentially active faults was found during the field investigations. Page 1 -33 Otay Ranch Planning Area 12 EIR — Freeway Commercial 1 K192 CHAPTER 01 Table 1 -1.&c 113103 ro m as �o N N 0 u, N y 1.0 Executive Summary o� a ro K Significance !Level of Signitirance Potential Environmental Impacts Determination Before Mitigation Measures % After Mitigation Mitigation ro w oc 4- N w Page 1 -34 Otay Ranch Planning Area 12 E1R — Freeway Commercial 1 %192 CHAPTER 01 Table 1 -Ldoc 1131103 Seismicity: The closest active fault is the Rose Canyon fault zone, Direct, long -term, The use of site - specific foundation, building, and seismic Impacts would not be significant. approximately 11 miles to the west of the site. A major significant impacts could designs, as well as special construction equipment, earthquake occurring on this fault or other regional active faults in occur. techniques and materials can mitigate or avoid significant Southern California could subject the proposed development to geologic impacts as indicated below. Designs for the moderate -to- severe ground shaking. Impacts from ground project components must demonstrate conformance shaking would be significant. Exposure of people to earthquakes standards adhering to the UBC, the City of Chula Vista along off -site faults would be a direct, long -term and significant Grading Ordinance, current seismic design specifications impact. of the Structural Engineering Association of California, and other various regulatory requirements. The following measures shall be implemented. 5.11 -1 Prior to the issuance of each grading permit, the applicant shall verify that the applicable recommendations of the geotechnicai investigation prepared by Geotechnics, Incorporated, Section 8, dated September 2002, for the McMillin Otay Ranch property bave been incorporated into the project design and construction documents to the satisfaction of the City Engineer of the City of Chula Vista. 5.11 -2 Prior to the issuance of each grading permit, Impacts would not be significant the applicant shall verify that the applicable recommendations of the geotechnical investigation prepared by Geocon, Inc., Section 8, dated August 30, 2001, for the Otay Ranch Company property have been incorporated into the project design and construction documents to the satisfaction of the City Engineer of the City of Chula Vista. Landslides and Lateral Spreading: The colluvium, alluvium, Significant. See Mitigation Measures 5.11 -1 and 5.11 -2. Impacts would not be significant. and residuum, as well as the predominantly clayey sand and sandy clay material within the Otay Formation, have a moderate to high expansion potential. Expansive soils in contact with pavement, foundation, or slab subgrade could heave when wetted, resulting in cracking or failure of the development improvements. Page 1 -34 Otay Ranch Planning Area 12 E1R — Freeway Commercial 1 %192 CHAPTER 01 Table 1 -Ldoc 1131103 0 u� N OC a. w ro w K b w as 4- 1.0 Executive Summ Significance Level of Significance Potential Environmental Impacts Determination Before Mitigation Measures After Mitigation Miti anon Colluvium, alluvium, and residuum were compressible soils found on site. Development on compressible soils could potentially settle under increased loads, or due to an increase in moisture content from site irrigation or changes in drainage conditions. This settlement could result in damage to structures, roads, and property. Several locally continuous claystone beds were observed which may intersect the proposed cut slopes around the perimeter of the site. Daylighting or exposure of these claystone layers could potentially result in surficiat slope failures. Due to the bentonite interbed found on site and the extrapolated layer from Village 6, it is anticipated future site grading may reveal beds of bentonite. Where the bentonite daylights in cut slopes, there is the potential for surFicial slope failures. If bentonite beds are found, special consideration with respect to placement of fill, undercutting pad and street subgrade and buttressing slope stability may be required. Tsunamis, Seiches, and Earthquake - Induced i Flooding: Given Not sig ifcaut. As impacts are not significant, no mitigation measures are lmpacts would not he significant. the distance of the project from the coast, the property will not be required• affected by tsunamis or seiches. In regard to earthquake - induced flooding, the site is elevated above the floodplain and will not be affected by flooding that could occur that would be associated with an earthquake. E 4? 9,% Potable Water- Development MA) of the proposed project would S r Significant 5.12 -1 The final Subarea Water Master Plan shall be hefin impacts would not be significant result in an incremental increase in water consumption and Place approved prior to the approval of each TM. of The Master Plan shall include the design additional demands on water storage and pumping, facilities. water system infrastructure including timing and cost of development and must be in compliance with the OWD Master Plan. 5.12 -2 Prior to approval of each TM, the applicant shall provide the City with a letter from the OWD stating that adequate pumping and Page i -35 Otay Ranch Planning Area 12 EIR — Freeway Commercial IKI92 CHAPTER OI Table 1 -I.doc I13L03 0 u� N OC G. w ro co K b w oc 4- 1.0 Executive Summary Potential Environmental Impacts Significance Determination Before Mitigation Mitigation Measures Level of Significance .After Mitigation storage capacities are available or would be available concurrent with need. 5.12 -3 Prior to approval of each Final Map, the applicant shall provide the City with a letter from the OWD stating that adequate storage capacity exists or would be available to serve the FC need. 5.124 Water facilities improvements shall be financed or installed on- and off -site in accordance with the fees and phasing in the approved Public Facilities Finance Plan (PFFP) for the Planning Area 12 FC site. 5.12 -5 Prior to approval of the fast TM, the applicant shall submit a Sub -Area Master Plan (SAMP) for the FC site. The SAMP shall ensure an adequate supply of water on a long -term basis for the McMillin and Otay Ranch Planning Area 12 SPA- Freeway Commercial properties. Recycled Water: Development of the proposed project would Significant. 5.12 -6 Prior to the approval of the first Final Map, the impacts would not be significant. result in an incremental increase in the need for recycled water applicant shall provide for adequate recycled and place additional demands on water storage and pumping water storage and distribution facilities, which facilities. shall be constructed in accordance with the Subarea Water Master Plan and to the satisfaction of the OWD. These water infrastructure improvements are described in the Planning Area 12 FC PFFP and SPA Plan. The proposed PFFP identifies development impact fees that the applicant shall pay to mitigate impacts, the estimated cost of the facility, the applicant's responsibility to construct or pay for necessary mitigation, and the phasing improvements. 5.12 -7 Prior to approval of the first Final Map, the applicant shall provide written proof from the OWD that adequate water storage and Page 1 -36 Otay Ranch Planning Area 12 EIR — Freeway Commercial IK192 CHAPTER 01 Table I -lilac 1131M O Ul N OC G. w ro io K ro w va 4- N 1.0 Executive Summ Potential Environmental Impacts Significance Determination Before Mitigation Mitigation Measures i -Level of Significance / After Mitigation distribution facilities are available to serve the proposed project site. 5.12 -8 A complete Subarea Water Master Plan shall be required prior to approval of the TM. The recycled water system shall be designed at that time and the timing and cost shall be identified by phase of development_ 5.12 -9 The final Subarea Water Master Plan shall be submitted to the City for review and approved by OWD prior to approval of each TM. The Master PIan shall include the design of water system infrastructure including timing and cost of phase of development and must be in compliance with the OWD Master Plan. 5.12 -10 The proposed project shall be responsible for constructing all potable and recycled water improvements necessary to serve the projects, which include but are not limited to the proposed water lines along Eastlake Parkway and Birch Road. The proposed project shall adequately provide potable and recycled water service without relying on any proposed water construction phasing by other developments. Sewer: The existing sewage disposal system does not currently Significant. 5.12 -11 Prior to the recordation of the first Final Map, Impacts would not be significant have sufficient capacity to accommodate flows from the FC site, the applicant shall demonstrate to the City which would result in a near -term significant impact until Engineer that the Poggi Canyon Interceptor has adequate capacity in the interim to handle upgrades to the system, currently underway, are completed. projected sewage flows for the entire SPA. 5.12 -12 Sewer facility improvements shall be financed or installed on- and off -site in accordance with the fees and phasing in the approved PFFP. 5.12 -13 The project shall be responsible for constructing all sewer improvements necessary to serve the project, which include but are not limited to the proposed sewer lines Page 1 -37 Otay Ranch Planning Area 12 EIR -- Freeway Commercial IK192 CHAPTER 01 Table I -I.doc 1131173 0 ui N OC 1.0 Executive Summary "? Miti lion After Mitigation. I along Birch Road east and west of Sit 125 and La Media Road to connect to the existing Poggi Canyon Sewer. The proposed project shall adequately provide sewer service without relying upon any proposed sewer construction phasing by other developments. The developer shall also underwrite the cost of all studies and reports needed to support the addition of sewer flows to existing lines. Solid Waste Management: Sufficient capacity is available in the Not significant. No mitigation measures are required, Impacts would not be significant. local waste management system Law Enforcement: The Chula Vista Police Department does not Significant. 5.12 -14 Police service facilities shall be financed or Impacts would not be significant. currently meet the threshold standard for the response time for the provided in accordance with the fees and City. However, a new facility is planned at Fourth and F Street in phasing in the approved PFFP for the FC site. the City of Chula Vista to meet law enforcement requirements as population growth in the service area warrants. 5.12 -15 The City will monitor Police Department responses to emergency calls and report the results to the GMOC on an annual basis to the satisfaction of the City. Fire Protection and Emergency Medical Services: The Chula Significant. 5.12 -16 Fire service facilities shall be financed or Impacts would not be significant. Vista Fire Department does not currently meet the threshold provided in accordance with the fees and standard for the response time for the City, including the Otay phasing in the approved PFFP for the FC site. Ranch community. However, as population growth in the service area warrants, fire stations would be constructed with Villages 5.12 -17 The City will monitor Fire Department Two and Nine of the Otay Valley parcel and within Village responses to emergency fire and medical calls Thirteen of the Proctor Valley Parcel. and report the results to the GMOC on an annual basis to the satisfaction of the City. Schools: Schools are not required for implementation of the FC Significant, 5,12 -18 Prior to issuance of building permits, the Impacts would not be significant. Site since the development would be for commercial purposes. applicant shall pay all required school However, payment of school fees is still required per the PFFP. mitigation fees. Library Service: Library services are not required for No significant impacts. No mitigation measures are requited. Impacts would not be significant implementation of the FC Site since the development would be for commercial purposes. Page 1-38 Otay Ranch Planning Area 12 EIR — Freeway Commercial IK192 CHAPTER 01 Table 1 -Ldoc 1131103 Significance Potential Environmental Impacts D Determination Before M Mitigation Measures L Level of Significance Page 1-38 Otay Ranch Planning Area 12 EIR — Freeway Commercial IK192 CHAPTER 01 Table 1 -Ldoc 1131103 0 N OC G. w ro K 1 -0 Executive Summ Potential Environmental Impacts Significance Determination Before MW anon Mitigation Measures Level of Significance After Mitigation Parks and Recreation: The project would not impact parks or No significant impacts. No mitigation measures are required. Impacts would not be significant. recreation services since the development would be for commercial purposes. Significant. 5.13-1 The use, transport, and disposal of hazardous Impacts would not be significant Hazards and Hazardous Materials: Potentially significant impacts related to hazardous materials could result from implementation of the FC site because hazardous materials could materials on the site shall be conducted in accordance with the relevant regulations of be used or transported to the site as a result of the proposed federal, state, and local agencies, including the commercial facility. EPA, the California DHS, and Caltrans. Otay Ranch Planning Area 12 ETR — Freeway Commercial Page 1 -39 IK192 CHAPTER 01 Table 1 -l.doe 1131A73 b w as �o 4- F+ CO ._ D e v e l o p m e n t S e r v i c e s D e p a r t m e n t Planning Division I Development Processing CITY OF C:HUTAVISTA APPLICATION APPENDIX B Disclosure Statement Pursuant to City Council Policy 101 -01, prior to any action on a matter that requires discretionary action by the City Council, Planning Commission or other official legislative body of the City, a statement of disclosure of certain ownerships, financial interest, payments, and campaign contributions must be filed The following information must be disclosed: 1., List the names of all persons having a financial interest in the project.that is the subject of the application, project or contract (e.g , owner, applicant, contractor, subcontractor, material supplier) Alfred E. Baldwin Deeann Baldwin 2. if any person identified in section 1. above is a corporation or partnership, list the names of all individuals with an investment of $2000 or more in the business (corporation /partnership) entity. 3. If any person' identified in section 1_;. -above is a non - profit organization or trust, list the names of any person who is the director of the non- profit organization or the names of the trustee, beneficiary and trustor of the trust N/A 4. Please identify every person, including any agents, employees, consultants, or independent contractor's, whom you have authorized to represent you before the City in this matter. Stephen M. Haase (Baldwin & Sons, LLC) Nick Lee ( Baldwin & Sons, LLC) S.. Has any person *identified in 1., 2 , 3., or 4., above, or otherwise associated with this contract, project or application, had any financial dealings with an official' of the City of Chula Vista as it relates to this contract, project or application within the past 12 months? Yes No x If yes, briefly describe the nature of the financial interest the official' may have in this contract. Farm APP. 6 Rev 03.70 > 276 Fourth Avenue J Chula Vista I California I 91910 1 (619) 591 .5101 112 2015 -05 -26 Agenda Packet page 419 A ,.a.. 1- ..,.......+ n D e v e l o p m e n t S e r v i c e s D e p a r t m e n t Planning Division I Development Processing crry of CHULA VISTA APPLICATION APPENDIX B Disclosure Statement - Page 2 6., Has any person *identified in 1 , 2 , 3 , or 4., above, or otherwise associated with this contract, project or application, made a campaign contribution of more than $250 within the past (12) months to a current member of the City of Chula Vista Council? Yes X No if yes which council member? Marysa €as 7,. Has any person *identified in 1 ., 2 , 3., or 4 , above, or otherwise associated with this contract, project or application, provided more than $420 (or an item of equivalent value) to an official ** of the City of Chula Vista in the past (12) months? (This includes any payment that confers a personal benefit on the recipient, a rebate or discount in the price of anything of value, money to retire a legal debt, gift, loan, etc ) Yes No X If yes, which official ** and what was the nature of the item provided? 8.. Has any person *identified in 1 , 2., 3, or 4., above, or otherwise associated with this contract, project or application, been a source of income of $500 or more to an official ** of the City of Chula Vista in the past (12) months? Yes No x If yes, which official ** and the nature of the item provided? Date 4/1114 24"-oo�— Signature of Contractor /Applicant G�lC Print or type name of Contractor /Applicant * Person is identified as: any individual, firm, co- partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, or any other group or combination acting as a unit. ** official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission or committee of the City, and City employee or staff members * ** This disclosure Statement must be completed at the time the project application, or contract, is submitted to City staff for processing, and updated within one week prior to consideration by legislative body. Last Updated: March 16, 2010 276 Fourth Avenue I Chula Vista I California I 91910 I (619) 691 5101 2015 -05 -26 Agenda Packet Farm AP63P. B Rev .i0 P9 2/2 Page 420 RECORDED AT REQUEST OF AND ��HEN RECORDED RETURN TO: City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: City Clerk Fee Exempt—Gov't Code §6103 (Space above(or Recorder's Use) DEVELOP��IENT AGREE��IENT among THE CITY OF CHULA VISTA, a California charter cit�� and municipal corporation and VILLAGE II TO�VN CENTER, LLC & SUNRANCH CAPITAL PARTNERS, LLC 60093.00025\3523646.9 -�- THtS DEVELOPMENT AGREEMENT ("A�eemenP') is entered into as ofthe Effective Date (as defined belo�v) by and a�nong THE CITY OF CHULA VISTA; a Califomia charter city and municipal corporation ("City"); V[LLAGE 11 TO�Wi CENTER; LLC; a California limited liability company ("Village [[") and SUNRANCH CAPITAL PART�IERS, LLC, a Delaware limited liability company ("Sunranch"). Village 11 and Sunranch are collectively referred to in this Aereement as the "O�vner°. The City or fhe Owner are sometimes individually referred to in this Agreement as a "Party' and are collectively referred to as the "Parties". The Parties enter into this Ad eement with reference to the follo�ving recited facts (each a "Recital"): RECITALS A. To stren�hen the public planning process, encourage pri��ate participation in comprehensive planning and to reduce the economic risk of de��elopment; the State of Califomia has enacted the Development Agreement Statute, found at Sections 6�864 et seq., of the Califomia Govemment Code. B. The City is authorized by the Development Agreement Statute and by its City Charter to enter into development a�reements ��ith persons and entities having leeal or equitable interests in real property for the purpose of establishing predictability for both the City and the property owner in the development process and in the provision of public infrastructure and public benefits. C. O�ener has a legal or equitable interest in that certain real property consisting of approximately 363 acres of land located in the City of Chula Vista, County oF San Diego, State of California, more particularly described and depicted in Exhibit "A" to this Agreement (the "Property"). D. The Property is located in the Otay Ranch Freeway Commercial Sectional Plannine Area Plan ("SPA Plan"). It is currendy partially developed havine previously been entitled by the City for development as contemplated by the SPA Plan. E. Owner desires ro amend the land use designations for the FC-2 area of the SPA Plan to allow for up to 600 residential units, 2 acres of enhanced parkland; 15,000 square feet of retail provided i❑ a mised use format (with an additional 1�,000 square feet constructed to com�nercial standards, as defined in this Agreement); and two hotels of approsimately I�0 guestrooms each, to enhance the Property as a unified, walkable and mixed-use development �rhich offers potential residents additional housine options (the "ProjecP'). A aeneral description and depiction of key elements of the Project is contained in Exhibit "B" to this Agreement. F. O�vner has requested that the City enter into a development agreement for the de��elopment of the Project, and the City desires to enter into this Agreement pursuant to the provisions of the California Govemment Code, the City Charter, the General Plan, the City Municipal Code, and applicable City policies. 60093.0002513523616.9 -�- G. This Agreement assures that development of the Project will occur in accordance �vith the General Plan; the Otay Ranch General Development Plan ("Otay Ranch GDP"), the SPA Plan; as amended by the Project Approvals; and all of the implementin� regulations for those various Plans. H. This Agreement constitutes a cunent exercise of the City's police powers to provide predictability to the Owner in the development approval process by vestine the permitted uses; density; intensity of use; and timing and phasing of the Project in exchanee for the O�vner's commitment to provide significant public benefits to the City. 1. This Agreement is also intended to ensure that the Owner has provided funding sufficient to provide the adequate and appropriate infrastructure and public facilities required by the development of the Project, and that this infrastructure and public facilities �vill be available no later than when required to sen�e the ProjecYs demand. J. The commitments of the Owner made in this A�'eement allow the City to realize si�ificant economic; recreational; park, open space, social; public facilities or other public benefits. These public benefits �vill advance the interests and meet the needs of Chula Vista's residents and visitors to a significantly greater extent than would development of the Project under the current entidements and absent this Agreement. K. In retum for the Owners commitment to provide these public benefits, the City is willing to exercise its authority to enter into this Agreement and to make a commit�nent of predictability for the development process for the Project. AGREEME\'T For good and valuable consideration, the City and Owner aeree as follo�vs: 1. DEFINITIONS. [n this Agreement unless the context othenvise requires, the followin� terms and phrases shall have the following meanings: 1.1 "AgreemenP' means this Development Agreement between the City and the Owner. The term "AgreemenY' shall include any amendment to the Agreement properly approved and esecuted pursuant to the terms of this A�eement. 1.2 "Approval Date" means the date on �ahich the City Council conducted the first reading of the Enabling Ordinance as part of the Project Approvals. 1.3 "City" means the City of Chula Vista, a California charter city and municipal corporation. 1.4 "City Charter" means the City of Chula Vista's City Charter. 1.� "City Council"means the govemine body of the City. 1.6 "City Manager" means the City Manager of the City or the City ManagePs designee. 60093.0002518523G16.9 -.i- 1.7 "City Municipal Code" means the Chula Vista Municipal Code. 1.3 "Day" means a calendar day unless specifically stated as a `business day." 19 "Effective Date" means the date on which the Enabling Ordinance becomes effective and the Parties have each siened this A2reement. 1.10 "Enablin� Ordinance" means City Ordinance No. by which this A�reement was approved. I.l 1 "Existine Land Use Regulations ' means all Land Use Re�ulations in effect on the Appro��al Date, including the General Plan, Otay Ranch GDP and other Project Appro��als but excluding any amendment or modification of the Land Use Regulations adopted; approved or imposed after the Approval Date that impairs or restricts Owner's Vested Right; as defined in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or a=reed to by Owner in writing. Owner has consented to the Generai Plan; Otay Ranch GDP and other Project Approvals; in effect on the Approval Date, which shall all be considered part oFthe Existine Land Use Reeulations. 1.12 "General Plan" means the General Plan of the City of Chula Vista. 1.13 `General Plan AmendmenY' ineans the amendments to the General Plan that are enacted as part of the Project Appro��als. 1.14 "Land Use Regulations" means all ordinances; resolutions, codes, rules. regulations and official policies of the City governin� the development and use of land, including, without limitation, the permitted use of land; the density or intensity of use, subdivision requirements, timine and phasine of development; the maximum heieht and size of buildings; the provisions for resen�ation or dedication of land for public purposes, the City's public improvement engineering ordinances, policies, rules, reeulations and standards, and the design, improvement, construction; and initial occupancy standards and specifications applicable to the Project. "Land Use Regulations" do not include any City ordinance, resolution; code, rule, re�ulation or official policy goveming: 1.14.1 The conduct or taxation of businesses, professions, and occupations applicable to all businesses, professions; and occupations in the City; L 14.2 Taxes and assessments of general application upon all residents of the City. 1.14.3 The control and abatement of nuisances. l.l� "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device, a lender, and their successors and assigns. 60093.0002i�8523616.9 -�- 1.16 "Owner'' means, joindy and se��erally, Village II and Sunranch; and Owner's successors and assigns as set forth in the Agreement. Village II and Sunranch are each jointly and severally responsible for all obli�ations of the O��mer set forth in this A�Reement. y 1.U "Owner's Vested RiehP' shall have the meaning set forth in Section 4.1. L l3 "Otay Ranch GDP" means the Otay Ranch General Development Plan. L l9 "Otay Ranch GDP Amendments" means the amendments to the Otay Ranch GDP that are enacted as par[ of the Project Approvals. 1.20 "Parties" means the City on the one hand; and Village fl and Sunranch on the other hand (with Villaoe 11 and Sunranch being joinHy and severally defined as "O��mer"). A "Party" means either the City or the Owner. 1?I "ProjecY' means the development of the Property; including all related on-site and off-site improvements, as set forth in the Project Approvals and Subsequent Project Approvals. 1.22 "Project Approvals" means all permits and other entidements approved or issued by the City for the use of, construction upon, and/or development of the Project on the Property. A listing of the Project Approvals is contained in Exhibit "C" to this Agreement. ]?3 "Property" means the real propeRy described and depicted in Exhibit "A". 1.24 "Reservatio❑ of Authority" or "Reserved Authority" means the rights and authority specifically reserved to the City which limits the assurances and riehts provided to the Owner and the Owner's Vested Right under this Agreement. 1.2i "Section" means a numbered section of this Agreement, unless specifically stated to refer to another document or matter. 1.26 "SPA Plad' means the Otay Ranch Freeway Commercial Sectional Planning Area Plan. 1.27 "SPA Plan Amendments" means the amendments to the SPA Plan that are enacted as part of the Subsequent Project Approvals. 1.28 "Subsequent Project Approvals" means all Project Approvals approved, granted; or issued after the Approval Date which are required or permitted by the Project Appro��als; Existing Land Use Reeulations, any applicable Subsequent Land Use Regulations and this Agreement. Subsequent Project Approvals includes, but is not limited tq the SPA Plan Amendinents. A listing of the anticipated Subsequent Project Approvals is contained in Exhibit "D" to this Aereement. bIX193.000?5445?3 W 69 -J- 1?9 "Subsequent Land.Use Regulations ' means those Land Use Regulations which are both adopted and effective after the Approval Date and �vhich are not included �vithin the definition of Existing Land Use Rewlations. "Subsequent Land Use Regulations" include any Land Use Regulations adopted by moratorium, initiative, City action; or othenvise. 130 "Term" means the tenn of this Aereement as set forth in Section 6.l of this Agreement. 2. INTEREST OF O�Wi ER. Owner represents that it has a legal or equitable interest in the Property and is authorized to enter into this Agreeinent. 3. PUBLIC HEARI\GS. On April 22, 201� the Plannin� Commission and on May 12; 201� and vlay 26, 2015 the City Council; after providing notice as required by law, held public hearings on this Agreement �vherein the City Council inade the le�ally required findings as set forth in the Enabling Ordinance. 4. DEVELOPMENT OF THE PROJECT. 4.1 Owner's Vested Rieht. Owner shall have the vested right to complete the Project during the Tenn in accordance with the Project Approvals; the Subsequent Project Approvals; the Existing Land Use Regulations; any applicable Subsequent Land Use Regulations, the City's Reservation of Authority and this A�eement ("Owner's Vested RiehP'). 4.2 Govemine Land Use ReQulations. Escept as othenvise provided in this Agreement, the Land Use Regulations applicable to the development of the Project shall be those contained in the Project Approvals, the Subsequent Project Approvals and the Existing Land Use Regulations. Subsequent Land Use � Regulations shall not apply to the development of the Project, unless expressly authorized by this Agreement or agreed to by O�rner in writing. 4.3 Permitted Uses. Except as othenvise provided within this Agreement; the permitted uses shall be as provided in the Project Approvals, the Subsequent Project Approvals and the Existing Land Use Re�ulations. 4.4 Density and Intensitv: Requirement for Reservation and Dedication of Land. Except as othen��ise provided in this Agreement, the density and intensity of use for the development of the Project; and the requirements for reservation and dedication of land; shall be as pro��ided in the Project Approvals, the Subsequent Project Approvals and the Existing Land Use Reeulations. 4.5 Reservation of Authoritv. The follo��ing Land Use Regulations, Subsequent Land Use Rewlations or other requirements shall apply to the Property and the Project: 45.1 Processing fees and charges imposed by the City to cover the City's estimated or actual wsts of re��ie�vina and processing applications for 60093.00025\85236i6.9 -(- � the Project; providing inspections; conducting annual re��ie�vs, providing enviromnental analysis, or for monitoring compliance with this Ab eement or any Project or Subsequent Project Approvals b anted or issued, provided such fees and charees are in force and effect on a general basis on the date of filing such applications with the City. This Section shall not be construed to limit the authority of City to cl�arge its � ihen-current, nonnal and customary appiication, processing, and permit fees for Project or Subsequent Project Approvals, building permits and other similar pennits; which fees are desiened to reimburse City's expenses attributable to such application, processine; and pennitting and are in force and effect on a City-wide basis on the date of filina such applications �vith City, notwithstanding the fact that such fees may have been increased by City subsequent to the Approval Date. 4.�.2 Development impact fees; monetary exactions or other mitieation requirements imposed by the City as a condition precedent to the issuance of any permit or approval to cover the impacts associated with the development of the Project ("De��elopment Impact Fees"); as required by the Project Approvals or Subsequent Project Approvals; provided such fees or other initigation requirements are in force and effect on a �eneral basis on the date of filing for such pennit or approval with Ihe City. However, this Agreement vests Owner the right, at its sole option, to defer the payment of the following Development Impact Fees, as applicable to the Project, and the Property, at the then-current amount, until the request for final inspection of a building pennit: Se��er Capacity Fee; Public Facility Development Impact Fee; Eastern Transportation Development Impact Fee; Westem Transportation Development Impact Fee; Tele�aph Canyon Drainage Fee; Pogei Canyon Sewer Development Impact Fee; Salt Creek Se�ver Development Impact Fee; Otay Ranch Villave 1 and � Pedestrian Bridge Development Impact Fee; Otay Ranch Village 11 Pedestrian Bridge Development Impact Fee; and any successor or replacement fees for the fees named above. This Section shall not be � construed to limit the authority of the City to charee its then-current, normal and customary impact fees or other mitigation requirements i❑ place at the time of the application for the permit or approval; notwithstanding the fact that such fees may have been increased by the City subsequent to the Approval Date. 45.3 Procedural regulations relating to hearing bodies; petitions, applications; notices; findings, records; hearings; reports; recommendations, appeals, and any other matter of procedure. 45.4 The followine; provided that they are uniformly applied to all development projects within the City: 60093.0002544i23Gi6.9 _�_ . 4.�.4.1 Unifonn codes governing engineering and construction standards and specifications adopted by the City pursuant to state law. Such codes include; without limitation, the City's adopted version of the Uniform Administrative Code; California Building Code, Califomia Plumbing Code, California �lechanical Code, Califomia Electrical Code; and California Fire Code. 4.�.4.2 Local amendments to those unifonn codes which are adopted by the City pursuant to state law, provided they pertain exclusively to the preservation of life and safety. 4.�.43 The City's standards and procedures regarding the granting of encroachment pernlits and the com�eyance of rights and interests ��hich provides for the use of or the entry upon public property. 4.�.4.4 The City's public improvement engineering ordinances, policies, rules; reeulations and standards in effect �vhen construction dra�vings for those improvements are submitted to City. City will reasonably consider requests for exceptions to and deviations from these public improvement engineerine ordinances; policies; rules, regulations and standards necessary or desirable for implementation of the Project or the Project Approvals. 4.5.� Regulations which may be in conflict with this Agreement, but ��fiich are objectively required to protectthe public health and safety. 4.�.6 State or federal laws or regulations which preempt local rewlations or mandate local regulations or conditions that conflict with the development of the Project. This expressly includes mandates imposed throueh the Clean Water Act or the Porter-Colo�me Water Quality Control Act. 4.5.7 Prior to exercising the Resen�ation of Authority provided in Sections 4.SS and 4.�.6; the City shall provide O�vner with written notice of the state or federal la�v or regulation; or the regulation required to protect the public health and safety that conflicts «�ith this Agreement, and a �vritten explanation of the conflict created. �Vithin ten (10) days of the City's �vritten notice; City and O��mer shall meet and confer in good faith in a reasonable attempt to apply the state or federal la�v, or the regulation required to protect the public health and safety, in a manner � that is most consistent with this Agreement; best preserves the terins of this Agreement and that protects rights of Owner as.dem�ed from this Agreement; to the extent reasonably possible, while still following the applicable law or rewlation. Failure of the City to provide this notice .. 60093.000?5�852i W 6.9 -3- shall not relieve Owner of its obligation to comply �vith such law or regulation. 4.5.8 Owner shall be issued building pennits for the Project after permit applications are revie��ed and approved by City in the City's customary fashion for such review and approval. 4S9 The exercise of the power of eminent domain. 4.6 Vested Ri2hts Upon Termination. Owner acknowledges that follo�vin� tennination of this A�eemenL escept as to any Project Approval or Subsequent Project Approval that has vested under state law �vithout reliance on this Agreement; City may amend the General Plan, Otay Ranch GDP, SPA Plan or Land Use Regulations as they relate to the Project. �.7 Compliance �vith CEOA. The City Council has found that the environmental impacts of the Project have been addressed in the Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area (SPA) Plan-Planning Area l2 ("FEIR 02-04") (SCH # 1939010154); including addenda to FEIR 02-04. Where the California Environmental Quality Act requires that an additional environmental analysis be performed in connection with a Subsequent Project Approval or other future discretionary approval granted by the City for the Project; the O�vner shall pay all of the City's reasonable costs to perfonn that additional analysis. 4.3 Timing of Development. Because the Califomia Supreme Court held in Pardee Construction Co. v. Citv of Camarillo; 37 Cal. 3d 46� (1934), that the failure of the parties in that case to provide for the timing of development resulted in a later- adopted initiative restricting the timing of development to prevail over the parties' agreement, it is the specific intent of the Parties to provide for the timing of the Project in this Agreement. To do so; the Parties acknowledge and provide that, subject to espress terms of this Agreement includine, without limitation, Sections 4.�.� and 4.�.6, O��mer shall have the right, but not the obligation; to complete the Project in such order, at such rate, at such times, and in as many development phases and sub-phases as Owner deems appropriate in its sole subjective business judgment. 4.9 Delav of TD[F and PFD[F ObliEations. Nohvithstanding Section 4.5.2 above or any other provision in this Agreement, each of the h��o hotels described in Section 5.1 below shall not be required to pay Transportation Development Impact Fees ("TDIF") or Public Facility De��elopment Lnpact Fees ("PFD[F") until 18 months after issuance of the Certificate of Occupancy for each hotel. The total amount of the TDIF and PFDIF payment delayed for this 13 month period shall be secured throueh a promissory note and security agreement betn�een the City and Owner, the terms of which documents shall be subject to approval of the City Attorney and the City Manager. At a minimum; however, the agreements shall require that: (1) payment of the outstanding balance shall be secured through a promissory 60093.000?5445?3616.9 -9- note and a recorded lien, deed of trust or other security instrument acceptable to ' the City in real property of at least equivalent value as the outstanding balance owned by Owner (2) the outstanding balance shall accrue interest from the date the fees would othenvise have been due and payable at the fair market rate of Two Percent (2%) per annum; and (3) the outstanding balance shall become immediately due and payable if O�vner transfers the hotel property to any other party �vithout the reasonable ad��ance approval of the City and the acceptance by the other party of the obligation to pay the outstanding balance of the deferred fees as provided herein, including, �vithout limitation, the provision of appropriate security acceptable to the City. �. O�Wi ER'S OBLIGAT[O\'S AND PROVISION OF PUBLIC BENEFITS. �.1 Construction of Hotels. As set forth in more detail in the Project Approvals, the Owner shall construct or cause to be constructed rivo hotels of quality not less than AAA Three Diamond ratine, or reasonable equivalent as approved by the Director of Development Services; on the Property at the general locations depicted in Exhibit "B;" containing a minimum of 300 hotel rooms (approximately 1�0 rooms each). The City acknowled�es that the hotel proposed in O�vner's current design review and building permit applications meets this standard. �.L I Owner shall obtain building permits for and shall commence construction of the foundation of one hotel containing a minimum of 148 hotel rooms prior to the City s issuance of any buildin� permits for any residential components of the Project. O�aner agrees and acknowledges that City �vould not ha��e enacted the amendments to the General Plan, Otay Ranch GDP and the SPA Plan included in the Project Approvals but for Owners agreement to obtain permits for and commence substantial construction of one hotel containin� a minimum of 143 hotel rooms prior to obtaining any building permits for any residential componenis of the Project. O�vner further a��ees and ackno��ledges that its failure to satisfy the provisions of this Section shall constitute a default of its obligations under the Agreement and that upon any such default the City may pursue anv of the remedies provided in this Ad eement. �.L2 Owner shall use commercially reasonable efforts to obtain buildin2 permits and commence substantial construction of the second hotel containine 1�0 hotel rooms (or the number of rooms needed to brin2 the total hotel room count of the t��o hotels to a total of 300 rooms) prior to the full build-out of and issuance oF final occupancy pennits for the final components of the residential portion of the Project. [f O�vner has not obtained building permits and commenced substantial construction of the second hotel prior to the full build-out of and issuance of final occupancy permits for the final components of the residential portion of the Project, O��•ner's obligation to build the 60093.000?518523636.9 -�Q- second hotel shall com�ert automatically into a use restriction on the Property that restricts the use of the portion of the Property desienated for the second hotel to hotel uses only. �Vithout approvai by the City Council allowing a different use, the portion of the Property desienated for the second hotel shall only be used for a hotel and for no other use. Prior to the full build-out of and issuance of final occupancy permits for the final components of the resideniial portion of the Project; Owner shall rewrd an express covenant, to the satisfaction of the Director of Development Services, reflecting this use restriction. Owner's failure to record such an express covenant shall be a breach of this Agreement, but shall not negate in any way the use restriction as reflect in this paragraph. �.2 Construction of Commercial/Mixed Use. Owner a�rees and acknowledaes that the SPA Plan ori�inally contemplated only commercial de��elopment Von the Property. Although the City has agreed to amend the SPA Plan to allow residential development on the Property, commeroial development is still an important use for the site. Therefore, Owner agrees to obtain building permits for and commence substantial construction of 1�;000 square feet of commercial development on the Property in accordance with the Project Approvals prior to or concurrendy with obtaining buildinQ permits and commencing construction of the residential development located east of Town Center Dm�e. In addition to and concurrendy with the construction of the 1�;000 square feet of commercial development; Owner shall construct an additional 1�;000 square feet of the development to construction standards that qualify for commercial occupancy ("B" or "M" occupancy), but may allow the use of this portion of the development for non-commercial purposes, including residential uses. 5.3 Public Facilities and Services. �.31 Park and Park Site. Based on City standards in effect as of January, 201�, Owner's park oblieations (land and improvements) related to the Project would require the dedication and the impro��ement to City standards of up to a 4.69 acre park on the Property. Owner's actual baseline park obligations shall be calculated- at the time park oblieations become due for the Project in accordance �vith Ciry standards, including, but not limited to, Chapter 17.10 of the Chula Vista Municipal Code. Owner shall satisfy its actual park obligations as follows: �.3.1.1 Granting of Park Site and Development of the Park. Owner shall erant two (2) acres of the Property (the "Park Site") to the City in a permanent easement for public usaee, shall develop a highly amenitized, "tumkey' park (the "Park") on the Park Site, as described in this Agreement, to the satisfaction of the Director of Development Services. The Park shall generally be located as depicted in Exhibit `B', �vith the final location 60093.00025\S523W6.9 '� �' . subject to City approval. In order to create an extraordinary public space, the Park shall generally consist of the elements described in Exhibit "E" to this Agreement. Owner shall invest substantially more to the development and erantine of the Park than ��ould be typical For a City standard park; up to and including the value equivalent to the dedication and improvement required to achieve the O�vner's full park obligations, as calculated at the time park obli�ations for the Project become due. Owner shall commence construction of the Park prior to the issuance of the three hundredth (300th) residential building permit and substantially complete the Park within fifteen (15) months of commencement of construction. �.3.1.2 Audit and Pavment of Excess Park Oblisations. Owner shall, within sixty (60) days of the date on �vhich the Director of Development Sen�ices reasonably determines, in �vriti�g, that the Park has been completed; exclusive of the ��arranty period; provide the City, for its review and approval, all documentation the City reasonably requires; to determine the cost (land and improvement) of the Owner's construction of the Park on the Pazk Site. The City shall use this infonnation to prepare an audit of the actual costs of the development of the Park on the Park Site. The audit shall also compare the actual costs of the development of the Park on the Park Site (including the actual costs incurred during the warranty period) with the value of the O�vner's actual baseline park obligations, calculated at the time the park obligations become due for the Project in accordance with City standards; including; but not limited to; Chapter 17.10 of the Chula Vista Municipal Code. Based on this audit, O�vner shall satisfy its remaining park obligations, if any, by paying the excess park oblieations to the City's PAD fee account for the development of other parks in Otay Ranch. Such excess park obligations shall be calculated through the audit and shall be paid as either a pro rata pennit fees collected in cormection with any remaining residential permits or, if no residential permits remain, in a lump sum payment to the City made within sixty (60) days of the audit; or such later date as is approved by the Director of Development Services. �.3.1 3 Park Maintenance. Owner shall be solely responsible for the cost of maintaining the Park. Prior to the appro��al oF the first final map for the Project, O��ner shall have caused ihe creation of a maintenance Community Facilities District ("CFD"), or other funding mechanism, to the satisfaction of the Director of Development Services; for the perpetual maintenance of the Park. The pe�petual funding mechanism, which may include 60093.0002513523636.9 '��' related agreements with the City, shall have provisions for the inFlation of maintenance costs and a restriction on the Owners ability to unilaterally amend the funding mechanism or its provisions. The City shall be solely responsible for all life cycle and replacement costs for the Park but replacement decisions are at the sole discretion of the City. �.3.1.4 Park Pro�rainmine. The City shall control programming of the Park; and leasing and concessions within the Pazk; subject to the City's customary pennitting process. In order to encourage a � sense of community for the PA 12 residents and businesses; O�vner, or its Homeo�vner's Association ("HOA"); may program up to hveh�e (12) events per year; or more if approved by the Director of Development Seroices, subject to reasonable insurance, public health and safety requirements and in accordance �vith both Chula Vista Policy \�o. 102-06 and applicable zoning requirements. Any proposed event shall not exclude attendance by any member of the public; provided; ho�vever, that with the approval of the Director of Development Sen�ices, Owner, or its HOA; may proeram up to six (6) events in addition to the above referenced twelve (12) events for events where portions of the Park (but not the entire Park) may be closed to the �eneral pubiic for HOA specific events funded solely by HOA fees. �.3.2 Community Pumose Facilities. Owner shall provide a total of hvo and one-third (2.3) acres of net usable land for Community Purpose Facilities ("CPF"). Owner may satisfy this CPF requirement in any marmer consistent with Chula Vista Municipal Code Section 19.43.02�; which may include the provision of the CPF land offsite or adjustments to the peroentage limitations on the types of facilities, including recreational facilities; that may count to�vard satisfyine the CPF requirement, all in the discretion of the Director of Development Services. �.3.3 Dedication for the Bus Rapid Transit Line. O�vner shall dedicate the right-of-way for the bus rapid transit line consistent �vith the Project Approvals. 6. TERMS AND TERM[1\TATION. 6.1 Term of Aereement The Term shall commence on the Effective Date. The Term shall continue for a period of twenty(20) years from the Effecti��e Date, subject to the follo�ving: 6.1.I The Term shall be extended for periods equal to the time during which: 60093.000?5�3i236-t6.9 -�.i- 6.1.1.1 Litigation is pending which challenges any matter, including compliance with CEQA or any other local; state; or federal la��, related in any �vay to the approval or implementation of all or any part of the Project Approvals. Any such extension�shall be equal to the time bet�veen the filing of litigation; on the one hand, and the entry of final jud�ment or dismissal; on the other. 6.1.L2 Any other delay occurs which is beyond the control of the Parties. as described in Section I 1.6. 6.1? During the Tenn; certain portions of the Property inay be released from this Agreement as provided elsewhere in this Agreement. 6.1.3 As provided in Section 6.2 and elsewhere �vithin this Agreement, the Term may end earlier than the end of the Tenn as specified in this Agreement. 6.2 Termination. This Agreement shall be deemed terminated and of no further effect upon the earlier occurrence of any of the followine events: 6.2.1 Expiration of the Tenn as set foRh in Section 6.I; 6?.2 Entry of a final judb ent setting aside; voiding; or annulling the adoption of the Enabling Ordinance; 6.2.3 The adoption of a referendum measure overriding or repealing the Enabling Ordinance; 6?.4 Completion of the Project in accordance with the terms of this Agreement, including issuance of all required occupancy permits and acceptance; as required by state law; by City; or the applicable public agency; of all required dedications and the satisfaction of all of O�vner's obligations under this Agreement; and 6.2.� As may be provided by other specific provisions of this Aereement. 63 Effect of Termination. Subject to Section 6.4; upon any termination of this Agreement, the only rights or obligations under this Agreement which either Party shall have are: 6.3.1 The completion of oblieations which were to ha��e been performed prior to termination, other than those which are separately addressed by this Aereement: 63Z The performance and cure rights set forth in Section 9.3; and - 60093.000?5\85?3646.9 -�4- . 633 Those obligations .that are specifically set forth as surviving this Agreement; such as those described in Sections 3.1 through 3.4 and 1 I.20. 6.4 Release of ObliQations �Vith Respect to Individual Lots Unon Certification of Occupancv. Noh��ithstanding any other provision of this Agreement: 6.4.1 �Vhen any individual lot has been finally subdivided and sold, leased; or made a��ailable for lease to a member of the public or any other ultimate user; and a ceRificate of occupancy has been obtained for the building(s) on the lot, that lot and its o«�ner shall have no further obligations under and shall be released from this Agreement. 6.4.2 Upo❑ the com�eyance of any lot, parcel, or other property, whether residential, commercial, or open space, to a homeowners' association; propeRy owners' association, or public or quasi-public entity, that lot, parcel, or property and its o�vner shall have no further obligations under and shall be released from this Agreement. � No foanal action by the City is required to effect this release, but; upon Owner's request, City shall sign an estoppel certificate or other document to evidencethe release. 6.� Term of Mao(s) and Other Project Aoprovals. 6.�.1 Subdivision Maps. Pursuant to Govemment Code Section 664�2.6. the term of all subdivision or parcel maps that are approved for all or any portion of the Project on the Property shall be automatically extended to a date coincident with the Term and; where not prohibited by State law; with any eztension of the Term. 6.�.2 Other Proiect Aqprovals. Pursuant to Government Code section 65863.9; the Project Approvals shali automatically be estended for a term ending concurrently �vith the applicable subdivision maps for the Project. 60093.000?5�$5236-i6.9 -��' . 7. A�'UALREV[EW. 7.1 Timin� of Annual Revie��. Pursuant to Govemment Codc Section 6�86�.1; at least once during every twelve (12) month period of the Tenn; City shall review the good faith compliance of O�vner �vith the tenns of this Aereement ("Annual , Revie�v"). 7.2 Standards for Annual Review. During the Annual Re��iew; Owner shall be required to demons[rate good faith compliance �vith the tenns of this Agreement. `"Good faith compliance" shall be established if Ou�ner is in compliance ��ith the terms and conditions of this Agreement. If the City Council or its desi�nee finds and determines that Owner is not in �ood faith compliance; then City may proceed in accordance with Section 93 pertainina to the potential default of Owner and the opportunities for cure. O��mer shall pay the City's reasonable fees and costs incurred in connection �vith the Annual Re��iew. 7.3 Procedures for Annual Revie�v. The Annual Review shall be conducted by the City Council or its designee. Owner shall be gi��en a minimum of sixtv(60) davs' notice of any date scheduled for an Annual Review. 7.4 Certificate of Comoliance. At any time during any year that the City Council or its designee finds that Owner is not in default under this Agreement; City shall; upon written request by O�vner, pro��ide Owner �ti�ith a written certificate of eood faith compliance�vithin fifteen (1�) days of City's receipt of that request. S. THIRD PARTY LITIGATION. S.l General Plan Litieation. City has determined that this Agreement is consistent with its General Plan; the Otay Ranch GDP and the SPA Plan. O��ner has reviewed the General Plan; the Otay Ranch GDP and the SPA Plan and concurs �vith City's determinatioa Ciry shall not have any liability; �vhether through equitable or legal arguments, under this Agreement or the associated approvals or dowments (e.g., General Plan .4inend�nent, SPA Plan; tentative maps), for any failure of City to perform under this Agreement; or for the inability of Owner to develop the Property as contemplated by the Project Approvals or this Agreement; if such failure or inability is the result of a judicial determination that part or all of the General Plan; Otay Ranch GDP or SPA Plan is im�alid, inadequate, or not in compliance with law. 8.2 Third Partv Litiaation Concernin� Proiect or A�reement. Owner shall, at O�vner's expense, defend; indemnify, and hold City, its officers, employees and independent contractors engaged in Project plannine, approval or implementation; harmless from any third-party claim; action or proceeding against City, its agents, officers or einployees to attack; set aside; void; or annul the Project Approvals; Subsequent Project Approvals or this Agreement. City shall prompdy notify O�vner of any such claim, action or proceedine; and City shall reasonably cooperate in the defense. City may in its discretion participate in the defense of 6009i.000?S\3i236�16.9 -i b- any such claim; action or proceeding. If the City uses its discretion to participate in the defense of any such claim; action or proceedine, the City shall pay the City's attomeys' fees and litigation costs incurred in that defense. 3.3 Indemnitv. In addition to the provisions of Section 5.2; O��mer shall indemnify; defend and hold City; its officers, agents; employees and independent contractors; eneaged in Project planning or implementation, free and harmless from any third- party liability or claims based or alle�ed upon any act or omission of O�timer, its officers; agents, employees, subcontractors and independent contractors, for propertY damage, bodily injury or death (Oumer's employees included) or any other element of damaee of any kind or nature; relating to or arising from development of the Project, except for claims for damages arising through active negligence or �villful misconduct of City; its officers, agents; employees and independent contractors. Owner shall defend, at Owner's expense; including attorneys' fees, City; its officers; agents, employees and independent contractors in any Iegai action based upon such alleged acts or omissions of O�vner. City may in its discretion participate in the defense of any such leeal claim; action, or proceedin�. [f the City uses its discretion to participate in the defense of any such claim; action or proceeding, the City shall pay the City's attomeys' fees and litieation costs incurred in that defense. 3.4 Environmental Contamination. Owner shall indemnify and hold City, its officers, agents; and employees free and harmless fi�om any liability; based or alleged, upon any act or omission of Owner, its officers, agents; employees; subcontractors, predecessors in interest; successors, assi�ns; and independent contractors; resultine in any violation of any federal, state or local la�v, ordinance or reeulation relating to industrial hygiene or to environmental conditions on; under, or about the Property, includine, but not limited to, soil and groundwater conditions, and Owner shall defend, at its expense, including attomeys' fees, City, its officers, agents and employees in any action based or asserted upon any such alieged act or omission. City may in its discretion participate in the defense of any such claim, action; or proceeding. If the City uses its discretion to participate in the defense of any such claim; action or proceeding, the City shall pay the City's participatory attorneys' fees and litigation costs incurred in that defense. The City's payment of participatory attorneys' fees and litigation costs does not relieve that Developer of is oblieations under this Section 8.4 S.� City to Approve Counsel; Conduct of Litieation. �Vith respect to Sections 8.1 through 3.4, City reserves the rieht either (a) to approve the attomey(s) that O�ti�ner selects, hires, or othenviseyengages to defend City, which approval shall not be unreasonably withheld or delayed, or (b) in the City's sole discretion, conduct its o��n defense, with the understandine that Owner's attomeys shall generally serve as lead counsel. If City elects to conduct its own defense, the Ciry shall pay the City's attorneys' fees and litigation costs incurred for such defense. 60093.00025\S523Cr{6.9 -17- S.6 Sun�ival. The provisions of Sections S.1 through 3.4; inclusive, shall survive the tennination; cancellation, or expiration of this Agreement. 9. DEFAULTS AND REMEDIES. 9.l Default by Owner. Onmer shall be in default of this A��eement if it does any or any combination of the follo�vin�: 9.L I Willfully violates any order, ruling or decision of any administrative or judicial body having jurisdiction over the Property or the Project. Owner may contest any such order; ruline or decision by appropriate proceedings conducted in eood faith; in which event no default of this Agreeinent shall be deemed to have occurred until there is a final; non- appealable judicial decision that Owner willfully violated such obligation. 9.1.2 Fails to cure a material breach of this Agreement within the time set forth in a written notice of default from the City. 9.2 Default bv Citv. The City shall be in default of this Agreement only if it fails to cure a material breach of this Agreement within the time set forth in a written notice of default from the Oumer to the City. 9.3 Notice and Temiination. A Party alleQing a default by any other Party shall sen�e written notice thereof. Each such notice shall state with specificity all of the following: 9.3.1 The nature of the alleged default, with reference to the specific Sections of the Agreement that are alleged to have been breached and the specific facts supportine those allegations; 9.3.2 The manner in �vhich the alleeed default may be satisfactorily cured. 9.3.3 A period of time in which the default may be cured. The notice of default shall allow at least sixty (60) days to cure the default If the default is of such a nature as not to be susceptible of cure within sixry (60) days using diligent efforts, then the defaulting Party shall only be deemed to ha��e failed to cure the default if it fails dilieently to commence such cure ��ithin sixty (60) days or if it fails diligently to prosecute such cure to its conclusion. 9.4 Default Remedies. A Party who complies �vith the notice of default and opportunity to cure requirements of Section 9.3 may; at its option; institute legal action to cure; correct, or remedy the alleged default as provided in this Agreement. 9.� Owner's Remedv. The O«�ner ackno�aledaes that ihe City would not have entered into this A�eement if it were to be liable in damages under or with . 60093.000?5�4523G16.9 -�3- respect to all or any part of the development of the Project on the Property. Accordinely; Oumer shall not sue the City for dama�es or monetary relief For any matter relafed to the development of the Project on the Property. O�vner's litigation remedies shall be limited to declaratory and injunctive relief, mandate, and specific performance. 9.6 Citv's Remedv. In the event of an uncured default by Owner; the City may pursue any and all available legal or equity remedies for the default. 9.7 \Vaiver. Remedies Cumulative. All waivers of perforn�ance must be in a writing si�ed by the Party Vranting the ��aiver. There are no implied waivers. Failure by City or Owner to insist upon the strict performance of any provision of this Agreement; irrespective of the leneth of time for �ti�hich such failure continues; shall not constitute a waiver of the right to demand strict compliance �vith this Agreement in the future. A written waiver affects only the specific matter waived and defines the perfonnance waived and the duration of the waivec Unless expressly stated in a �vritten waiver; future perfonnance of the same or any other condition is not wai��ed. A Party �vho complies with the notice of default and opportuniry to cure requirements of Section 9.3; �vhere applicable; and elects to pursue a legal or equitable remedy available under this Agreemeni does not �vaive its right to pursue any other remedy available under this Aereement; unless prohibited by statute; court rules, orjudicial precedent. Delays, tolling, and oiher aciions arising under Section 1 L16 shall not be considered waivers subject to this Section 9J. 9.3 Alternative Disqute Resolution. Any dispute bem�een the Parties may, upon the mutual agreement of the Parties, be submitted to mediation, binding arbitration, or any other mutually agreeable form of altemative dispute resolution. �4'hile an altemative dispute process is pending, the statute of limitation shall be tolled for any claim or cause of action which either of the Parties may have against the other. 10. E\iCUMBRANCES. ASSIGNMENTS. AND RELEASES. 10.1 Discretion to Encumber. This Agreement shall not prevent or limit O�vner, in any manner; at Owners sole discretion, from encumbering some or all of the Property or any improvement on the Property by any mortgage, deed of trust; or other security device to secure financing related to the Property or the Project. \bhvithstanding the foregoing, any project or property shall be free and clear of all liens and encumbrances other than those previously approved in writine by the City prior to transfer to the City. V 60093.00025\8i23616.9 -�9- 10.2 Mort�agee Protection. City ackno�vledges that the lender(s) providi�g financing secured by the Property and/or its improvements may require certain Agrcement interpretations and modifications. City shall, at any time requested by Owner or the lender; meet with Owner and representati��es of such lender(s) to negotiate in good faith any such interpretation or modification. City will not unreasonablv �vithhold or delay its consent to any requested interpretation or modification provided such interpretation or modification is consistent with the intent and parposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following riehts and privile�es: 10.2.1 Neither entering into this Aereement nor a breach of this Agreement shall defeat; render im�alid; diininish; or impair the lien of any mortgage or deed of trust on the Property made in good faith and for value. � 10.2? [f City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Owner under the terms of this Aereement City shall provide a copy of that notice to the Mortgaaee within ten (10) days of sending the notice of default to Owner. The Mortgagee shall have the rieht, but not the oblioation; to cure the default durine the remaining cure period allo��-ed Owner under Section 9.3 of this Agreement. 10.2.3 Except as othenvise provided within this Ab eement, any Mortgaeee who comes into possession of some or all of the Property pursuant to foreclosure of a mortgage or deed of trust; or deed in lieu of such foreclosure or othenvise. shall: ]0.2.3.1 Take that property subject to the terms of this Agreement and as O�vner's successor. 10.23.2 Have the riahts and obligations of an Assi�ee as set forth in Sections 10.�.1 and ]0.�.3; 10.23.3 Have the right to rely on the provisions of Section 4 of this Agreement, provided that any development proposed by the Mortgagee is in substantial conformance with the terms of this Agreement; and 10.2.3.4 \'ot be liable for any defaults, whether material or immaterial, or monetary obligations of O�vner arising prior to acquisition of title to the Property by the Mortgagee, except that the Mortgagee may not pursue development pursuant to this Agreement until all delinquent and current fees and other monetary obligations due under this Agreement for the portions of the Property acquired by the Mortgagee have been paid to City. 60093.0002i185236i6.9 '7�' ]0.� Estoppel CeRificate. �Vithin ten (10) business days following a �vritten request�by either of the PaRies, the other Party shall execute and deliver to the requesting _ � Party a statement certifying that (i) either this A�eement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Ageement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this A�eement or that the responding Party alleges that specified (date and nature) defaults esist. The statement shall also provide any other reasonable infonnation requested. The failure to timely deliver this statement shall constitute a conclusi��e presumption that this Agreement is in full force and effect without modification, eYCept as may be represented by the requesting Partv and that there are no uncured defaults in the performance of the requestine Party; except as may be represented by the requesting Party. Owner shail pay to City all reasonable administrative costs incurred by City in connection �vith the issuance of estoppel certificates under this Section prior to City's issuance of such certificates. 10.4 Transfer or Assi�nment. Subject to Section 10.� and 10.6; each individual entity comprising Owner shall have the right to selL transfer, or assign its rights and obligations under this Agreement (collectively; an "AssignmenY') in connection with a transfer of Owner's interest in all, any poRion of, or any interest in the Property (the "Transferred Property"). No Assignment shall be �nade unless made together �vith the sale; transfer, or assignment of all or any portion of O�vner's interest in the Property. At least fifteen (1�) business days prior to the effective date of any Assignment; Owner shall notify City in writing of the proposed Assignment and provide City �rith an Assignment and Assumption A�reement, in a fonn substantially similar to Exhibit "F", executed by the purchaser, transferee; or assignee (collectively, the "Assignee") to expressly and unconditionally assume all duties and obligations of O�vner under this Aereement remaining to be perfortned at the time of the Assignment. 10.� Effect of Assi�nment. Subject to Section 10.6 and unless oihenvise stated �vithin the Assignment; upon an Assignment: lOS.I The Assignee shall be liable for the performance of all obligations of Owner with respect to Transferred Property, but shall have no obligations with respect to the portions of the Property, if any, not transferred (the "Retained Property"). 10.�.2 The owner of the Retained Property shall be liable for the performance of all obligations of Owner with respect to Retained Property, but shall have no further obligations with respect to the Transferred Property. 10.53 The Assienee's exercise, use, and enjoyment of the Transferred Property shall be subject to the terms of this Agreement and the 60093.000?544i23W6.9 -��- Assionee shall have all of the rights under this A�eement to the same extent as if the Assignee were the Owner. 10.6 Citv's Consent. An Owner shall not be released from its obligations with respect to the Transferred Property until it has obtained the City's reasonable consent to the transfer or assignment of all or a portion of this Agreement; which consent shall not be unreasonably withheld, conditioned or delayed. I 1. Y1ISCELLANEOUS PROVISIONS. 1 I.l Rules of Construction. The singular includes the plural; the masculine �ender inciudes the feininine; "shalP' is mandatory; "�nay' is permissive. 11.2 Bindina Effect of Aereement. 7�his Agreement shall be recorded against the Property and shall run with the land. Until released or terminated pursuant to the provisions of this Aereement or until O�aner has fully performed its obligations arisine out of this A�reement no portion of the Property shall be released from this Ad eement. 11.3 Entire Aereement. This Agreement constitutes the entire understandine and agreement of City and Owner wi[h respect to the matters set forth in this A�reement This A�eetnent supersedes all neeotiations or previous agreements between City and Owner respecting the subject matter of this Agreement. 11.4 Recorded Statement Upon Termination. Upon the completion of perfonnance of this Agreement or its cancellation or termination, a statement evidencing completion, cancellation, or termination signed by the appropriate agents of City, shall be recorded in the Official Records of San Diego County, Califomia. 1 LS Amendment or Cancellation of A�reemenL This Agreement may be amended from time to time or canceled only by the written consent of both City and Owner in the same manner as its adoption; as set forth in California Go�ernment Code Section 6�568. Any amendment or cancellation shall be in a form suitable for recording in the Official Records of San Dieeo County; Califomia. An amendment or other modification of this A�n-eement will continue to relate back to the Effective Date of this A�eement (as opposed to the effective date of the amendment or modification), unless the amendment or modification expressly states othern�ise. 11.6 Minor Chanees/Operatin� Memorandmn. The provisions of this Agreement require a close de�ree of cooperation beh��een the Parties. It is anticipated that minor chanees to the Project may be required from time to time to acwmmodate design changes, engineering changes, and other refinements related to the details of the Parties' perfonnance. Minor changes are those changes to the Project that are othern�ise consistent �vith the Project Approvals; and which do not result in a change in the type of use, an increase in density or intensity of use, significant ne�� or increased environmental impacts that cannot be mitigated, or violations of 60093.000?i44523 W 6.9 -��_ any applicable health and safety re�ulations in effect on the Approval Date. Accordingly, the Parties may mutually consent to adopting minor chanees through their signing of an operating memorandum reflecting the minor changes. Neither the minor changes nor any operating memorandum shall require public notice or hearing. The City Attorney and City Manager shall be authorized to detennine whether proposed modifications and refinements are minor changes subject to this Section or more significant chanees requiring amendment of this Agreement The City Manager may execute any operating memorandum for minor changes �vithout City Council action. Minor changes would include, without limitation, minor boundary or lot line adjustments necessary to properly reflect the applicability of this Agreement in the chain of title. 1 I J Proiect as a Private Undertaking. It is specifically understood by City and Owner that (i) the Project is a private development; (ii) City has no interest in or responsibilities for or duty to third parties conceming any improvements to the Property unless City accepts the improvements pursaant to the provisions of this Agreement or in cormection with subdivision map appro��als; and (iii) O��mer shall have the full power and exciusive control of the Property; subject to the oblieations of Owner set forth in this Agreement. l 1.8 Incorporation of Recitals. Each of the Recitals set forth at the beginning of this Agree�nent are part of this Agreement. 1 1.9 Captions. The captions of this Agreement are for convenience and reference only and shall not define, esplain; modify, construe; limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement. 1 1.10 Consent. R'here the consent or approval of City or Owner is needed to imple�nent Development under this Agreement the consent or approval shall not be unreasonably withheld; delayed; or conditioned. 1 l.11 Covenant of Cooaeration. City and O��mer shall cooperate and deal with each other in good faith and assist each other in the perfonnance of the pro��isions of this Agreement. 11.12 Execution and Recordine. The City Clerk shall cause a copy of this A�reement to be siened by the appropriate representatives of the City and recorded ��ith the Office of the County Recorder of San Die�o County, Califomia, within ten (10) days follo�ving the Effective Date. The failure of the City to sign and/or record this Aereement or notice thereof shall not affect the validity of and bindina obligations set forth �vithin this Aereement. 11.13 Relationshin of City and Owner. The contractual relationship behveen City and Owner arising out of this Agreement is one of independent contractor and not agency. This Agreement does not create any third-party beneficiary rights. 60093.0002518i23Gi6.9 -�3- 11.14 Notices. All �iotices; demands, and correspondence required or permitted by this Agreement shall be in writing and deli��ered in person, sent by electronic mail; or mailed by first class or certified mail; postage prepaid, addressed as follows: If to City, to: City of Chula Vista 276 Fourth A��enue Chula Vista. Califomia 91910 Attn: City Manager \Vith a copy to: City Attomey City of Chula Vista 276 Fourth Avenue Chula Vista. Califomia 91910 [f to O�vner, to: Village II Town Center, LLC 610 \'�'est Ash Street. #i500 San Diego; Califomia 92101 Attn: Mr. Nick Lee AND Sunranch Capital Partners, LLC 610 West Ash Street. #1�00 San Diego; Califomia 92101 Attn: Mr. Nick Lee �Vith a copy to: Law Offices of R. Martin Bohl �O1 \Vest Broadway, Suite 520 San Diego, California 92101 Attn: R. Martin Bohl City or O�vner may change its address by eivine notice in �vritine to each of the other names and addresses listed above. Thereafter, notices.�demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given upon personal delivery; the date of actual receipt or; if mailed; not later than hvo (2) business days following deposit in the United States mail. il.l� VJaiver of Rieht to Protest. Execution of this Agreement is made by Owner �vithout protest. Owner kno�vingly and willinely waives any rights it �nay have under Government Code section 66020 or any other provision of law to protest the imposition of any fees, dedications; reservations; or other exactions imposed 60093.0002544523646.9 -�4- on the Project as authorized by this Agreement; the Project Approvals or the Subsequent Project Approvals. ll.16 Delay for Events Beyond the Parties' Control. Delay of perfonnance by either Party of its obligations under this Agreement shall not be deemed a breach of the Agreement and the Tenn shall be extended; for periods equal to the time durine �vhich (I) litigation is pending which challenges any tnatter, including compliance �vith CEQA or any other local; state; or federal law, related in any way to the approval or implementation of all or any part of the Project Approvals or Subsequent Project Approvals. Any such extension shall be equal to the time beh��een the filing of litigation, on the one hand, and the entry of final judement or dismissal, on the other. All such extensions shall be cumulative; (2) a delay is caused by reason of any event that cannot reasonably be anticipated or controlled by the City or Owner which prevents or delays performance by City or Owner of oblications under this Agreement. Such events shall include; by way of example and not limitation; acts of nature; riots, strikes, or damage to work in process by reason of fire, mud, rain, floods, earthquake, or other such casualties. Such an event does not include a market or business downturn; recession or other change in the business cycle. [f City or Owner seeks excuse from performance for the period of a delay, it shall provide written notice of such delay to the other �vithin thirty (30) days of the commencement of such delay. [f the delay or default, �vhether material or immaterial, is due to an event that cannot be reasonably anticipated or controlled by City or Owner it shall be excused, and an extension of time for such cause shall be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. [n the event of a disagreement between the Parties with respect to whether this Section applies to a particular delay; a Party may file an action for judicial review of the matter, includine requests for declaratory and/or injunctive relie£ 'I�he right to seek judicial re��iew shall not limit any other remedies, whether legal or equitable; to which the Party may be entitled. 11.17 Inteipretation and Governin� Law. In any dispute regarding this Agreement, the Aereement shall be govemed and interpreted in accordance �vith the laws of the State of Califomia. Venue for any litigation conceming this AQreement shall be in San Diego County, California. 11.18 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 11.19 Successors and Assi¢ns. This Ageement shali be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 11.20 Future Litisation Exqenses. 11.20.1 Payment to Prevailing Partv. If either Party brines a le�al or equitable proceeding against the other Party �vhich arises in any way out of this 60093.000?�\45?3636.9 -��- - Agreement, the prevailing Party shall be entitled to recover its reasonable attomeys' fees and all other reasonable costs and expenses incurred in that proceeding. 11.20? Scope of Fees. Attornevs' fees ander this Section shall include attorneys' fees on any appeal and in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the tennination of this Aereement. 12. E;CHBITS. All exhibits attached to this Agreement are incorporated as a part of this Agreement. Those exhibits are: Exhibit Description "A" Legal Description and Depiction of the Property "B" General Description and Depiction of the Project "C" Listing of Project Approvals "D" Listing of Anticipated Subsequent Project Approvals "E" Description oF Park Impro��ements "F" Assignment and Assumption A�reement [Signtures on following page� 60093.000?513 5 2 3 64 6.9 -�6- � Owner and City have executed this A�reement on the dates set forth below. CITY O�VNER CITY OF CHULA VISTA, a Califomia charter V[LLAGE 11 TO\VN CENTER, LLC, a city and municipal corporation Califomia limited liability company* BY: By: ,[!��/L�i MaryCasillas Salas, Mayor Name: Tl�c.rc L�� Tide: V�r�E PRc'S��N* Date: ATTEST: By: Name: Tide: By: Date: S!2 Z ll S Donna Noms; City Clerk SUNRANCH CAPITAL PARTNERS. LLC, a APPROVED AS TO FORM: Delaware limited liability company* By: By: Name: /✓�c� LgG Glen R. Googins, City Attomey Title: �/�oE P2F5��Ei�r By: Name: Title: Date: * Company signature authorization must be provided upon document execution. J:W[romeyL\IichaelSh\Freeway CommerciallAgmement�\DA POST 5.1?.li CC Mtg�DA-512.1>-FI`ALdocx 60093.000?i�%5236-i6.9 -2�- EXHIBIT A LEGAL DESCRIPTION AND DEPICITION OF THE PROPERTY PARCEL "A": THAT PORTION OF PARCEL 2 OF PARCEL �9AP NO. 18759 FILED [�I THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON SEPTEMBER 19, 2001 TOGETHER �VITH THAT PORTION OF FRACTIONAL SOUTHEAST QUARTER OF SECTION 3; TOWNSH[P 1S SOUTH; RANGE 1 �VEST; SAN BERNARDINO v1ERIDlA\T; ACCORD[V'G TO THE OFF[C[AL PLAT THEREOF, ALL 1\' THE CITI' OF CHULA VISTA; COLT�ITY OF SAN DIEGO, STATE OF CALIFORN[A BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COJ'I�'IENCING AT THE MOST EASTERLI' CORNER OF SAID PARCEL 2; THENCE ALONG THE SOUTHERLY LINE OF SAfD PARCEL 2 SOUTH 71°�7'23" \VEST. 706.OS FEET TO THE SOUTH�VESTERLl' CORNER OF TOWN CENTER DRIVE AS OFFERED A\'D ACCEPTED FOR DEDICATION TO THE C[TY OF CHULA VISTA PER DOCUMENTS RECORDED IN SA[D OFFICE OF THE COUNTY RECORDER ON SEPTEMBER 16; 200� AS DOCUVIENT NO. 200�-0801099 AND JA\'UAR1' 23; 2009 AS DOCUMENT NO. 2009-0031753. RESPECTNELY. AND THE TRUE POINT OF BEGINNING; SAID POII�'T BEING THE BEGINNING OF A 11�5.00 FOOT Rr1DIUS CURVE CONCAVE EASTERLY: A RADIAL LI\E TO SAID POINT BEARS SOUTH 33°42'16" �'�'EST; THENCE LEAVING SAID SOUTHERLY LI\'E \ORTHERLY ALONG THE \'VESTERLl' S[DELNE OF SAID TO�Wi CENTER DRIVE AND THE ARC OF SA[D CURVE THROUGH A CENTRAL ANGLE OF 30°1546" A DISTANCE OF 61011 FEET: THE\iCE LEAVI\'G SAID «�ESTERLY SIDELI\'E \iORTH 66°Ol'S2" �VEST. 324.30 FEET TO A PO[\T ON THE EASTERL7' LINE OF THAT LA\D OFFERED FOR DED[CATION TO THE CITY OF CHULA VISTA ON MAY 22, 2003 AS DOCUMENT \'O. 2003-0604609 OF OFFIC[AL RECORDS: THENCE ALONG SAID EASTERLl' LINE NORTH 19°23'44" EAST. 3732 FEET; THENCE NORTH 24°09'46" EAST, 100.00 FEET: THENCE NORTH 23°�543" EAST. 100.00 FEET: THE\'CE NORTH 37°26'�I" EAST. 100.00 FEET: THENCE I�'ORTH 41°29'�6" EAST, 100.00 FEET; THENCE NORTH 43°17'13" EAST; 100.00 FEET; THENCE NORTH 43°06'10" EAST, 100.00 FEET TO THE MOST \VESTERLY CORNER OF PARCEL 33170-1 OF FREEWAY CONVEYA\'CE AS GRANTED TO THE STATE OF CALIFORN[A PER DOCUMENT RECORDED [N SAID OFFICE OF THE COUivTY RECORDER O\' NOVEVIBER 16. 2007 AS DOCUMEn'T NO. 2007-0723396: THENCE ALO\'G THE SOUTH�VESTERLI' AND SOUTHEASTERLI' LINE OF SAID PARCEL 33170-1 SOUTH 46°3357" EAST, 3�J4 FEET; THENCE NORTH �5°42'37" EAST, 33.09 FEET TO A POII�'T ON THE SOUTHERLY SIDELI\E OF OLYMP[C PARKWAY AS DEDICATED TO THE C[TY OF CHULA VISTA PER DOCUMENT RECORDED I\' SAID OFFICE OF THE COliNTY RECORDER O\' DECEVIBER 17. 2002 AS DOCUME\'T NO. 2002-11�3497; THENCE LEAVIi�iG SAID SOUTHEASTERLY LII�'E ALO\'G SA[D SOUTHERLY SIDEUNE OF OLYMPIC PARK\�VAY SOUTH 34°17'OS" EAST. 221.05 FEET TO THE BEGI\'�'ING OF A 1680.00 FOOT RADIliS CURVE CONCAVE EXHIBIT A-1 60093.000?5�$5236-46.9 � NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 39°13'02° A DISTA\iCE OF 1152.35 FEET: THENCE SOUTH 73°3503" EAST, 239.34 FEET; THENCE SOUTH 36°�9'17" EAST; 21.46 FEET; THENCE NORTH 89°36'33" EAST, 12.00 FEET; THENCE SOUTH 71°10'26" EAST, 127.OS FEET; THENCE NORTH 39°36'33" EAST, 12.00 FEET; THE\'CE NORTH �3°00'43" EAST, 25.90 FEET; THENCE SOUTH 73°3503" EAST; 3239 FEET; THENCE LEAVING SAID SOUTHERLY SIDELINE SOUTH 71°ST23" WEST. 1463.49 FEET TO THE TRUE POINT OF BEGINNING. EYCEPTING THEREFROM THAT PORTION OF EASTLAKE PARKWAY AS DED[CATED TO THE CITl' OF CHULA VISTA PER DOCU�9ENT RECORDED IN SAID OFFICE OF THE COUNTY RECORDER ON MARCH 13. 2003 AS DOCUME\'T NO. 2003- 0233321. ALSO EYCEPT[NG THEREFROM TO\�/'iV CENTER DRIVE AS OFFERED A\D ACCEPTED FOR DED[CAT[ON TO THE CIT1' OF CHULA V[STA PER DOCUMENTS RECORDED II�i SAID OFFICE OF THE COU\�TY RECORDER ON SEPTEMBER 16, 200� AS DOCUMENT NO. 200�-OS01099 AND JANUARY 23, 2009 AS DOCUME\iT \O. 2009- 00317�8. RESPECTIVELY. THE HEREINABOVE PARCEL OF LAVD CONTAINS 20.473 ACRES MORE OR LESS. SAID PARCEL BE[NG DESCRIBED AS PARCEL "A" OF CER'TIFICATE OF COMPL[ANCE RECORDED MARCH l6. 2009 AS DOC # 2009-0123393 OF OFFICIAL RECORDS. PARCEL "B": THAT PORTION OF PARCEL 2 OF PARCEL MAP \70. 13739 FILED IiV THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON SEPTEMBER 19. 2001 TOGETHER WITH THAT PORT[ON OF FRACTIONAL SOUTHEAST QUARTER OF SECTION 3, TOWI�'SHIP 13 SOUTH. RANGE 1 \�'EST. SAN BERNARDINO MERIDIAN. ACCORDING TO THE OFFICIAL PLAT THEREOF, ALL I\7 THE CITY OF CHULA VISTA; COINTI' OF SAN DIEGO. STATE OF CALIFORNIA BEING MORE PARTICULARLY DESCRIBED AS FOLLO�'�'S: CO�I�[E\�CING AT THE MOST EASTERLI' CORNER OF PARCEL 2 OF PARCEL MAP NO. 15789 FILED [N THE OFFICE OF THE SAN DIEGO COiTiVTY RECORDER ON SEPTEA4BER 19. 2001: THENCE ALONG THE SOUTHERLY L[�!E OF SAID PARCEL 2 SOUTH 71°�7'23" �l'EST, 706.03 FEET TO THE SOUTH\VESTERLY COR�\iER OF TO�'�'\' CENTER DRIVE AS OFFERED AND ACCEPTED POR DEDICATION TO THE CITY OF CHULA VISTA PER DOCUMENTS RECORDED IN SAID OFFICE OF THE COU\TY RECORDER ON SEPTEMBER 16. 200� AS DOCUMENT NO. 200�-0801099 AND EXHIBIT A-2 60093.0002i\8i?3 W 6.9 JANUARY 23, 2009 AS DOCUMENT NO. 2009-0031753, RESPECTNELY, AND THE TRUE POINT OF BEGINNING; SAID PO[NT BEING THE BEGINNING OF A L 15�.00 FOOT RADIUS CURVE CONCAVE EASTERLY: A RADIAL LINE TO SA[D POINT BEARS SOUTH 83°42'16" WEST; THENCE LEAVI\'G SA[D SOUTHERLY LNE NORTHERLY ALONG THE �VESTERLY SIDELINE OF SAID TO�V�i 1 CENTER DRIVE AND THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 30°1�'46" A DISTANCE OF 610.11 FEET; THENCE LEAVI�'G SAID WESTERLY S[DELI�'E NORTH 66°O1'�2° WEST, 324.30 FEET TO A POINT ON THE EASTERLY LINE OF THAT LA\iD OFFERED FOR DEDICATION TO THE C[TY OF CHULA VISTA ON MAY 22. �003 AS DOCU�4ENT NO. 2003-0604609 OF OFF[CIAL RECORDS: THENCE ALO\'G SA[D EASTERLY LI�IE SOUTH 19°23'44" �VEST; 12.63 FEET; THENCE SOUTH l4°37'42" �VEST; 100.00 FEET; THENCE SOUTH 09°�1'40" �VEST, 100.00 PEET; THENCE SOUTH 12°12'10" WEST, 49.32 FEET; THENCE SOUTH 10°��'23" \VEST; 67.32 FEET; THENCE SOUTH 0�°12'4�" �VEST; 227.» FEET; THENCE SOUTH 00°20'00" \VEST. 301.34 FEET: 'THENCE SOUTH 00°»'20" �'�EST, 328.14 FEET TO THE SOUTHERLY LINE OF SAID PARCEL 2; THENCE ALONG SAID SOUTHERLY L[\iE NORTH 71°�T23" EAST, 797.34 FEET TO THE TRUE POINT OF BEGINNING. THE HEREINABOVE PARCEL OF LAND CO\'TAINS 15.345 ACRES MORE OR LESS. SAID PARCEL BEING DESCRIBED AS PARCEL "B" OF CERTIF[CATE OF COMPLIANCE RECORDED MARCH 16. 2009 AS DOC # 2009-012339� OF OFFICIAL RECORDS. ._.-� EXHIBIT A-3 60093.000?5�8523646.9 � � LXHI BI T �//y I� SHEET 4 OF 4 1J73J5'OB'I% 82.39' � N53'00'43'E 28.90' �1 N8936'33'E 12.00' EASTLAKE " PARKfYAY�- - N7t'10769Y l2Z08' K00237TY1 39.0 ' , � y � � � ry rh o,�4C° > ;v ^hry�'i�h - 0 300 600 900 � _ � ; ' .. ._ ^Y ^ � SCA�E 1"=300' � � y ^ m �o "� � � P.O,C.P�RCELS A' AND 'B' YA��I �� ry"� = p E1Y CORNER OF PARCfL 2 /�hry �� i N0. 19244 � �4 643-OZO-BS � J ��"�oo PARCEL "A;'o oN �` � /0' 20.473 ACR£5 � � °' m 4Q'� 6� � � m�EX. LOT CINE � �%\ ,� p 1 O O OI � N � N /pti M b o+ �66• �� , ��, .,g ��a. � �'�'�rl, �" r.PO.e. �N �'� �'�g ��' a�h' �DR. �r,wcECS n• c^ y ,Sg09 �, Gj' Ra��s,so0•/5'i4b,. _ AF�O 'B' � � f � tj� � O' ltL=610.11' 1z 2y'I �o` � '� �. �NEY/ LOT LIF'£�� \w o� h,�ti�'`op ' ��OR�i�'O/��, l.�U, �'b�o 1�AlLl.�L �� vinii \'��i cn 1J � ,,�oy ,�g"� SQ�,cE �c�.•� � � 15.845 ACRES �i POR. ��o �13k 3�g1� � �\C� �� O`'�ry 1p�' O 2i 1'l1h�G� m `° c°r� r Q I V �6 _�t � t�J �, ��o�O ry �� 1 2 ' ?_ � N ��0�`�p0� � B� 0 �P 5�4�dEk9'�6�a �ARCL' I_ �/a ,�806�\��6� oo.�o�� '2�r,,ti�,'�/�`21�`�y�i2j ;�10. I 5739 J I �a a�'L95 5�'E �00� p6�• \ ,� ' N0070'OD'E t� ��'I•�628�5qBE �qk090�� N797.J�q4�r ��'Q5�'J2'45E' � 301.328.14,--_ _ _ _ _ SR — 125 1 N00'S570'E L�C °�l' � £LY CI.VE OF SR=125 �— �-� ' T � i�IAP M0. i44�6 � ' CHU� VI�rA 7k�CT N0. o2—O� \ � � &ASSOCIATES OTAY RANCH VILLI�GE fi UNI7 1 j �.� 0��4 �� 'A" ivlAP N0. i � \ �ti „��:M. OJ�!d�Z.NG Si GR9 G 9N1 alnmNC nit�uy,wsao�n�sclisauu x:\�aro�ere�y�cr o�.,�.«m�� vrr w.e.�pr�n-ii-zois.roe:se xo. zs�a-is EXHIBIT A-4 60093.000?iV4523676.9 - EXHIBIT B GENERAL DESCRIPTIOV AND DEP[CT[ON OF THE PROJECT .`� � % '� � �2 p • D�� f°�� .0�y s , � `��`?Opc�ai��o 8 �r�°'� �� . l/ � sl � � 1r'1 % �A�r�F 9 ['� �y0o; o;�y � � � 2 ACRE ��1 Mixed Use �,��•+�� N ' PARK /p� Residential �h � .. B / � (wi 15,000 SF�/ � � � y � Mixed Use �, '.�resid ntial)�1�� , /6 Residerttial ��'�� . +Q ��`�Gi � _ I�' I � �� I '. l� ° - BRT Pedes:rian wnnecr.'on to �;,� _ stop OR Vllage o'via 6RT � � - o . overpass ,�, ��6��„�oWay 60oTo!a!M` � � P.esidentia/units � v Existing Otay Ranch Town Center (not a part) Project Features: • 600 total multi-family residential units • 15,000 square feet of non-residential in a mixed use format • 2 hotels with a total of 300 rooms • 2 acrc public park enhanced with equi��alenc�� value of 2.7 acres EXHIBIT B-1 . 60093.000?5�%i23G16.9 EXHIB[T C LISTING OF PROJECT APPROVALS • Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area (SPA) Plan-Planning Area 12 ("FE[R 0204") (SCH i#19390101�4) e FEIR 02-04 Addendu�n • Development Agreement • City of Chula Vista General Plan, as amended • Otay Ranch General Development Plan, as amended. EXHIBIT C-1 60093.000?5�85236-76.9 EaHIBIT D LISTING OF ANTIC[PATED SUBSEQUENT PROJECT APPROVALS o Freeway Commercial SPA Plan Amendment e Planning Area 12, FC-2 �4aster Precise Plan • Plannine Area 12; FC-2 Tentative Map • Various final maps Other subsequent approvals are anticipated including Design Re��ie�v approvals and grading, improvement and building permits issued pursuant to the Project Approvals EXH[BIT D-1 60093.000?5135?36t6.9 EYH[BIT E DESCRIPTION OF PARK IIIPROVE�1E�\'TS Anticipated park features include: • Open lawn/flexible event space • Shaded picnic grove/gathering e Amphitheater seating o Tables and benches • Flexible use plaza with enhanced paving • Restroom and storage buildin� • Concrete and/or stabilized decomposed eranite trails • Seating and gathering areas includine picnic areas ��ith shade structures • Play featuresincorporated into landscape • Lo�ti� water use plant palette on non-turf areas • Park lighting Additional park features may include: • Water feature(s) • Space for mobile/temporary food vendors or other concessions • Vendor kiosk with shade structure • Sculptural land fonns • Rockscape/ informal boulder fields/play area(s) • Urban "botanical" garden • Enhanced lighting • Public art • Hillside seatine/informal staircase • Infonnal /hiliside slide • Video projection screen/shade structure • Knoll top vantage point • Privacy berms • Adult fitness spaces / stations • Small play equipment Areas for on-site storm ��atcr treatment EXHIBIT E-1 60093.000?5�8 i?3 616.9 � EYHIBIT F ASSIGN��IENT AND ASSU�9PTION AGREEiYIENT ASSIGN�1ENT AND ASSU�IPTION OF DEVELOP�iENT AGREE�7E\T Ai1lONG CITY OF CHULA VISTA AND THIS ASSIGNMENT AND ASSUMPTIO\� OF DEVELOPMENT AGREEVIENT ("Assi�nmenY') is made as of the _ day of . �0_ ("Effective Date"), by and among the ("Owner") and ("Assignee") with reference to the following facts: RECITALS A. Owner has entered into that certain Development AereemenC dated by and bet�veen the City of Chuia Vista ("Cin"); on the one hand; and the Villaee [I & Sons and Sunranch Capital Partners on the other hand ("Agreement") for certain real property consistina of approximately acres of land located in the City, more particularly described in Exhibit "A" ("Properri"). B. Owner desires to assign and delegate; and Assignee desires to accept and assume, all of Owner's riehts and obligations under the A�reement in accordance with the terms and conditions set forth herein. C. By signing this Assigmnent; the City approves the Assignment in accordance with the terms and conditions set forth herein and in the Agreement. AGREEi17ENT NO�V, THEREFORE, for good and valuable consideration; the receipt and sufficiency of �vhich are hereby acknowledged; Owner and Assignee do hereby agree as follo��s: 1. Assienment and Assumotion. Effective as of the Effective Date, Owner hereby assigns, transfers, and com�eys to Assignee all of Owner's rights, interest, duties, liabilities, and obligations in, to, and under the Ad eement, and Assignee hereby accepts and assumes all such rights, interests, duties; liabilities, and obligations under the Agreement from Owner for [the Property or a portion of the Property] ("Assigned Property") [; except to the extent Owner has retained a portion of the PropeRy(the "Retained Property")]. 2. City Consent ro Assienment. Effective as of the Effective Date, City hereby consents to the Assignment and hereby fully releases and forever discharges O�vner from any and all obligations to City under the Agreement for the Assigned Property; [except Owner's obligations with respect to the Retained Property]. 3. Entire Aereement. This Agreement represents the final and entire agreement bet�veen the parties in connection with the subject matter hereof, and may not be modified except by a«�ritten agreement signed by both O�vner and Assignee. EXHIBIT F-1 3. Governina Law. This Agreement has been prepared, negotiated; and executed in, and shall be construed in accordance �vith, the laws of the State of California, without regard to conflict of law�rules. IN �VITNESS NHEREOF, the par[ies hereto have esecuted this Ab eement as of the date first above written. Owner: By: Assignee: By: Name: Iis: Cit��: City of Chula Vista, a CaliFornia Municipal Corporation By: I�'ame: Its: EXHIBIT F-2 RESOLUTION NO. 2015- RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL CONSIDERING THE ADDENDUM (IS- 12 -03) TO FEIR 02 -04; APPROVING AMENDMENTS TO THE CITY'S GENERAL PLAN AND THE OTAY RANCH GENERAL DEVELOPMENT PLAN TO REFLECT LAND USE AND POLICY CHANGES FOR APPROXIMATELY 35 ACRES WITHIN THE OTAY RANCH PLANNED COMMUNITY, INCLUDING ASSOCIATED TEXT, MAPS AND TABLES I RECITALS A. Project Site WHEREAS, the areas of land which are the subject of this Resolution contain all lands within the boundaries of Exhibit 1 attached hereto and incorporated into this Resolution by this reference, and includes approximately 35 acres of land generally located south of Olympic Parkway, west of EastLake Parkway and east of SR -125 within the Otay Ranch Planned Community Freeway Commercial North (FC -2) area; and B. Project; Application for Discretionary Approvals WHEREAS, in July, 2012, the City of Chula Vista deemed the Baldwin and Sons, LLC (Applicant) application complete and initiated a General Plan Amendment (GPA) and Otay Ranch General Development Plan Amendment (GDPA) (the "Project "); and WHEREAS, the proposed GPA involves amending portions of the Land Use and Transportation element of the City's General Plan, including associated text, maps and tables; and WHEREAS, the proposed GDPA involves amending portions of Part II of the Otay Ranch General Development Plan (GDP), including associated text, maps and tables; and WHEREAS, the proposed GPA and GDPA are contained in a document entitled "PA12 — Freeway Commercial North (FC -2) Amendment (GPA 12 -13, PCM 12 -15), March 2015" as represented in Exhibit 2 attached hereto and incorporated herein by this reference; and C. Prior Discretionary Approvals WHEREAS, the City of Chula Vista's current General Plan was last comprehensively updated in December 2005; and WHEREAS, the Otay Ranch General Development Plan was approved on October 23, 1993, and most recently updated on December 2, 2014; and 2015 -05 -26 Agenda Packet Page 422 Resolution 2014 - Page 2 of 4 WHEREAS, the GPA and GDPA as presented are necessary to accommodate the land uses anticipated in the associated Development Agreement (DA) between the City of Chula Vista and Village II Town Center, LLC and Sunranch Capital Partners, LLC for Freeway Commercial North (FC -2) ( "Development Agreement"); and WHEREAS, the GPA and GDPA were designed to address and accommodate development of a transit- supportive mixed use residential development with ancillary commercial and a highly amenitized urban park; and WHEREAS, the next step in the process would require the approval of an amendment to the Sectional Planning Area (SPA) Plan, and a Tentative Map (TM) for Freeway Commercial North (FC -2); and D. Planning Commission Record of Application WHEREAS, pursuant to California Government Code section 65090, the Planning Commission held a duly noticed public hearing on the GPA and GDPA on April 22, 2015; and WHEREAS, the proceedings and all evidence introduced before the Planning Commission at the public hearing on this Project held on April 22, 2015, and the minutes and resolution resulting there from, are hereby incorporated into the record subsequent to these proceedings; and WHEREAS, the Planning Commission voted 0 -4 -2 -1 recommending that City Council deny the Project; and E. City Council Record of Application WHEREAS, the City Clerk set the time and place for the hearing on the GPA and GDPA and notice of said hearing, together with its purpose given by its publication in a newspaper of general circulation in the City, at least ten days prior to the hearing; and WHEREAS, pursuant to California Government Code section 65090, the City Council held a duly noticed public hearing on May 12, 2015, on the subject GPA and GDPA. NOW, THEREFORE BE IT RESOLVED, the City Council hereby finds and determines as follows: II. COMPLIANCE WITH CEQA That the Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the project was covered in the previously adopted Final Environmental Impact Report for the Otay Ranch Freeway Commercial Sectional Planning Area (SPA) Plan — Planning Area 12 ( "FEIR- 02 -04 ") (SCH 91989010154). The Development Services Director has determined that only minor technical changes or additions to this document are necessary and that none of the conditions described in 2015 -05 -26 Agenda Packet Page 423 Resolution 2014 - Page 3 of 4 Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, the Development Services Director has prepared an Addendum to FEIR- 02-04. The City Council of the City of Chula Vista finds that, in the exercise of their independent review and judgment, the Addendum to FEIR -02 -04 in the form presented, has been prepared in accordance with the requirements of the California Environmental Quality Act and the Environmental Review Procedures of the City of Chula Vista and has considered the Addendum to FEIR- 02 -04. III. GENERAL PLAN INTERNAL CONSISTENCY The City Council hereby finds and determines that the General Plan, as amended, is internally consistent and shall remain internally consistent following amendment thereof by this Resolution. IV. GENERAL DEVELOPMENT PLAN INTERNAL CONSISTENCY The City Council hereby finds and determines that the General Development Plan, as amended, is internally consistent and shall remain internally consistent following amendment thereof by this Resolution. V. ADOPTION OF GENERAL PLAN AND GENERAL DEVELOPMENT PLAN AMENDMENTS In light of the findings above, the General Plan and General Development Plan Amendment provisions are hereby approved and adopted in the form as presented in Exhibits 2 and 3 attached hereto and incorporated herein by this reference and on file in the City Clerk's Office. Presented by: Approved as to form by: Kelly Broughton, FASLA Glen R. Googins Development Services Director City Attorney 2015 -05 -26 Agenda Packet Page 424 Resolution 2014 - Page 4 of 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 12th day of May, 2015, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: ABSTAIN: Councilmembers: Mary Casillas Salas, Mayor ATTEST: Donna Norris, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 12th day of May, 2015. Executed this 12th day of May, 2015. Donna Norris, City Clerk 2015 -05 -26 Agenda Packet Page 425 ORDINANCE NO. ORDII�'AI�'CE OF THE CITY OF CHLTLA VISTA APPROVII�'G A DEVELOPMENT AGREEMEI�'T BETWEEN THE CITY OF CHiJLA VISTA. VILLAGE II TOWN CENTER. LLC AND SUivRAi�'CH CAPITAL PARTI�'ERS. LLC FOR THE FREE�\'AY COA4MERCIAL I�ORTH PORTIOI�' OF OTAY RANCH PLAI�'i��Ii�'G AREA 12 R'HEREAS, the propem� ��hich is the subject matter of this Ordinance is identified in the De��elopment Agreement as"Exhibit A.`-on file in the office ofthe Ciri�Clerk and commonly I;no�im 'as the Freen�ay Commercial I�'orth(or FGZ)portion of Ota}�Ranch Planning Area 12(Propem�);and A'HEREAS, The Development Services Director has reviewed the proposed project for compliance ��ith the Califomia Environmental Qualin� Act (CEQA) and has determined that the project was covered in the pre��ioush� adopted Fi�1a1 Em>ironmenta! Impact Report for �he Otay Ranch Freeiray Commercial Sectional Planning Area(SPA)Plan-Planni��g.9rea 12(FEIR 02-0�) (SCH�19890101�4). The Deeelopment Services Director has determined that only minor technical chanees or additions to this document are necessan� and that none of the conditions described in Section 1�162 of the State CEQA Guidelines calline for the preparation of a subsequent document ha��e occurred;therefore;the De��elopment Service Director has prepazed an addendum to FEIR 02- 04: and R'HEREAS. the FG2 Developer desires to defer pa��ment of Public Faciliri Development Impact Fees and Transportation De��elopment Impact Fees required by Chula Vista Municipal Code Chapter's 3.�0 and 3.�4.respectively, for the proposed hotels for 18 months follo��ina Cit}�issuance of a Certificate of Occupancy for each hotel; and A'HEREAS, the Plannine Commission set the time and place for a hearing on said De��elopment Aereement and notice of said hearine, toeether ��ith its purpose, �ti�as gi��en by its publication in a ne«�spaper of eeneral circulation in the Cit�� and its mailing to property o��mers ��ithin �00 feet of the exterior boundaries of the Propem�at least ten days prior to the hearine; and WHEREAS,the hearing��as held at the time and place as ad��ertised;namelv 6:00 p.m.April 22.201�. in the Council Chambers.276 Fourth A�enue.and the Plannine Commission��oted 0-4-2-1 recommending that Cin�Council den��the Development Aereement berii-een the City of Chula Vista Villaee ll To��m Center; LLC and Sunranch Capital Partners, LLC for the Freewa}� Commercial North portion of Otav Ranch Plannine Area 12 (the Development Agreement); and �'HEREAS. on May 12; 201�, a duly noticed public hearino�vas scheduled before the Cin� Council of the Ciri of Chula Vista to consider adopting the ordinance to appro��e the De��elopment Agreement bet��een the Cin-of Chula Vista, Bald�vin 8 Sons,LLC and Sunranch Capital Partners. LLC for Freewa�� Commercial North (FC-2); and Ordinance No. Page 2 WHEREAS, City staff has re��iewed the Development Agreement and determined it to be consistent with the Otay Ranch General Development Plan and the City's General Plan; both as amended. NOW, THEREFORE, THE CITY COIJNCIL of the City of Chula Vista does hereby order and ordain as follows: I. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing held on April 22, 2015 and the minutes and resolutions resulting therefrom; are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any Califomia Environmental Quality Act (CEQA) claims. � D. COMPLIANCE V�'ITH CEQA The Cit��Council hereby finds,based upou their independent review and judgement that the adoption of the ordinance approving the Development Aareement for the project, as described and anal}'zed in the Final EIR 02-04; would have no new effects that ��ere not examined in said Final EIR (CEQA Guideline 15]68 (c)(2)). I[l. CONSISTENCY WITH GENERAL PLAN AND OTAY RANCH GENERAL DEVELOPMENT PLAN The City Council finds that the proposed Development Agreement is consistent with the City's Genera] Plan and Otay Ranch General Development Plan, both as amended. The � De��elopment Agreement implements the General Plan and the Otay Ranch General Development Plan by providing a comprehensive program to implement the future Sectional Planning Area (SPA) Plan a�nendment and Tentative Map. The plans provide design incotporatine a mixture of land uses connected by a walkable system of public streets and pedestrian paths, neighborhood parks and plazas, retail opportunities, and commercial activities designed ro promote a safe pedestrian euvironment. The Freeway Commercia] North plan, including the number of residentia] units,number of hotel rooms, park acreage; and commercial mixed use area, is consistent with the General Plan and the Otay Ranch General Development Plan; as amended. N. DEFERRAL OF DEVELOPMEN'1� IMPACT FEES The Development Agreement provides for a limited and conditional delay in the payment of the Public Faciliry Development Impact Fee(Chula Vista Municipal Code,Chapter 3.�0)and Transportation Development Impact Fee (Chula Vista Municipal Code, Chapter 3.54) applicable to the hotel portion of the project. The City Council finds that this limited and conditional deferral is in the public`s interest and consistent with public health;.safety and welfare because: (1) the projeet provides a significant public benefit, including, but not limited to, a public park with enhanced amenities, significant tax revenue and desirable Ordinance No. Paee 3 commercial and residential developmenr (Z) the deferral is needed to make the project financially feasible; and (3) the amount deferred will be adequately secured bv aereement ��ith the applicant. To the extent that such a deferral is not alreadv authority bv Chula V'ista n4unicipal Code Chapters 3.�0 and 3.�4.this ordinance expressl}�authorizes this deferral for this project. V. ACTION The Cin� Council hereby adopts an Ordinance approvine the Development Agreement benreen the Cih of Chula Vista, Village ]I To��m Center, LLC and SunRanch Capital Partners; LLC for the Free��a��Commercial North portion of Otay Ranch Planning Area 1 Z(a cop� of Hfiich is on file in the City Clerk`s office) finding it consistent �vith the California Government Code, adopted Cit�� policies, the General Plan. and the Ota}� Ranch General De��elopment Plan. VI. SEVERABiLITY If any portion of this Ordinance; or its application to an��person or circumstance; is for an�� reason held to be invalid. unenforceable or unconstimtional, by a court of competent jurisdiction;that portion shall be deemed severable, and such invalidity; unenforceabilin�or unconstimtionalin�shall not affect the validin�or enforceabilin�of the remaining portions of the Ordinance,or its application to an��other person or circumstance.The City Council ofthe Cim oFChula Vista hereb} declares that it would ha��e adopted each section.sentence:clause or phrase of this Ordinance, irrespecti��e of the fact that any one or more other sections, sentences; clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Vll. CONSTRUCTION ' The Citv Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict;applicable state and federal la��and this Ordinance shall be construed in lieht of that intent. V[ll. EFFECTIVE DATE This Ordinance shall take effect and be in full Force on the thirtieth da�� from and afrer its adoption. IX. PUBLICATIOi�i The Cit��Clerk shall certift�to the passaQe and adoption ofthis Ordinance and shall cause the same�to be published or posted accordine to la�v. Presented b�� Approved as to form b�� I Ordinance No. Pa�e 4 Gary Halbert, AICP; PE Glen R. Googins City Manager Ciry Attorney � J'U;ttorn=yVdichaelShlf¢�woy Comme�daPCL�POeT 5.72.75 GC i�tg1CC-0rd-FreBwayGommerclallJOrth-0.4POST5.1215CG5,22.15FINALtloc Item 10 - Link to Audio File An audio file with a recording of the community meeting held on May 4, 2015, related to this item, is available on our website at: http : //cvapps.chulavistaca.gov f audio /Council f 2015-05 - 04CommunityMeetingAudio.mp3 Note: The volume on the audio recording is low. You may need to raise the volume on your device. If the file does not open, please copy and paste the link directly into your internet browser. A copy of the audio recording is also on file in the Office of the City Clerk. 2015 -05 -26 Agenda Packet Page 428 CITY COUNCIL MEETING ,. 4u� CITY OF CHULA VISTA 2015 -05 -26 Agenda Packet �r� r� Fr. _ • 0 II.A yaueN Aelo ; ,E r •yi:- •�ir ,1 � � 1 f I i ti,; � A{ t\ 3�.3 MSUBJI 1219 421 HOMI13 Rte+`.. _ • r g aaell!n yaUeN Aelo WTIA' Zua u ISUea 1 1219 � v, O r 4�1 CITY OF CHULAVISTA jl Previous W 1 pprovals and Activities 1993 — Retail Commercial designation GP and GDP 2003 — Freeway Commercial EIR and SPA Plan approved • FC -1 867,000 sq. ft. • FC -2 347,000 sq. ft. 2006 — FC -1 was constructed 2007 —Approved 93,000 sq. ft. commercial increase in FC -1 (960,000 s.f. total) Today — FC -1: 643,000 sq. ft. built; 317,000 sq. ft. remaining FC -2: 0 sq. ft. built; 347,000 sq. ft. remaining 2015 -05 -26 Agenda Packet Page 434 Existing of GP Land Use FTS FS 2015-05-26 eAda Packet Proposed GP Land Use FTS Rd � ' U� Existing GDP Land Use .ft } 201 A h PA 12 FREEWAY COMMERCIAL Birch Rd P A11 2 N EASTERN CD URBAN FS. r Proposed GDP Land Use ti to FREEWAY i COMMERCIAL Birch Rd ■ ~ • ' ~ • PA 12 , ' EASTERN •' URBAN CENTER FS • Page 436 • g w LEGEND M11e4.0 + lrahurn "I Jr Hs Sweetw:der'C unmA a � � - Sum do mor Kxy School � d e n � a y G d:rl�►Yti or.rse 4 j °crq `�ptYd q ROW rig_,l4r - P ar l: Allen mimtary Sch E l a v e Henier wy School Df ial C artery C ►� 125 ^ Lhiper OtayWservoir a -.1 Ronita Vista K& ik J1 e kcho ol � Pu." Par f QD. sooxw ar 1 Disco ofy Elenwro x y School ake Cary Club ii� gyrrrtaic vrlw Elementary School U,�l�tps Elem Scl,00i Y - er y School STATF,jTiE 125 AT OLYMPIC PiQVY m m 3oah Caslifas School r (kay R a a � mefrtaw Park r r A Y+ a Eastl. A] Aar l- Eiertrer ary .�choal � c �r � .� � r 4 ty Hspd at Cheri a Vl sto SFr Lp f Vie El eMary School rxly r ce Pr9sor e Llnda El ratary school lernertJrry, pool hl7 dry y i 1da�, 6 a � ,� 12' San Diego r'ity ii E.,st Nfes eter,tion Facility 4Vl,iti yon Par I Rich wd [wnov it Facifity tiM'warA �e El�rri r1�001 &Y Mu. m z 2015 -05 -26 Agenda Packet m Field 1601ovotpal Airfrorr - Brows Frr4ri- MwvcipW Airport o L Page 437 Commercial Supply Current Plans: 2,203,000 s.f. Proposed Plan: 2,075,000 s.f. 1703 M04M 11 Ir 21 P ® IUF Retail Space Supply W/ CLA 2.5% Vacancy Factor Retail Space Demand Oversupply of Retail Current Approved Plans 2,207,000 SF (2) 2,151,825 SF (3) 1,930,000 SF 221,825 SF (10.1 %) With Proposed Project (1) 2,075,000 SF (2) 2,023,000 SF (4) 1,930,000 SF 93,000 SF (4.5 %) (1) Proposed project would reduce retail commercial capacity in PA12 by 132,000 sq. ft. (2) Excludes the 200,000 sq. ft. of current retail capacity in PA12 associated with the proposed hotels. (3) 2.5% vacancy factor from CLA applied by staff for comparative purposes (supply reduced by 55,175 sq. ft.) (4) 2.5% vacancy factor in CLA reduces assumed supply by 52,000 sq. ft. Comparative acreage Chula Vista 1988 2004 2012 Residential 73% Commercial 10% Industrial 17% 100% San Diego 2006 82% 84% 76% 10% 11% 11% 8% 5% 13% 100% l00% 100% 2015 -05 -26 Agenda Packet Page 440 Table I -1. EXISTING LAND USE; CITE' OF CHU LA VISTA Land Use Acres Perreent Residential 5,621 32.3%. Commercial (Retail and Office).. 804 4.6% Industrial Heavy; Light and Extr'active 610 3.5% Transportation, Communication, and Utilities 568 3.,8% Other Educational and Institutional 954 5j%.. . Parks and Recreation 1,082. 6.1% Agriculture 311 1.8% Vacant 4,893 .281%.. streets 2,481 14.2% TOTAL 17,424 100.0% Source: Chula Vista Planning Department, Land Use Inventory, February, 1988.. Note: Net aches excluding streets 2015 -05 -26 Agenda Packet Page 441 TABLE 5.4 CITY OF CHULA VISTA. EXISTING DEVELOPED LAND USE (2004) !`late: This table only includes the Gtys incorporated area.. =<4 Page L.UT 1.3 2015 -05 -26 Agenda Packet Page 442 Dumber of .Acres within CRY. Per cent Land Use Residential 964 Single-Family 6,537 �20 _ Multi-Family-- _ 1,797 5 - Commercial Retail ~_ 721 2 Office _w __..� ._w. _ _ _ _ 214 _ <1 — _ _- - yisitm. 29 C1 xndustri al. $ 1 2 Other Educational & Institutional 807 2 _ Parks; &'Recreation _ 394 u _ 2 Open Space 2,875 9 Water -, Streets & Vacant _.._ 19.181 57 - -- _ _ TOTAL Soux'Ce; Chula Vista Planning & Building Department, 200 33,366 100 !`late: This table only includes the Gtys incorporated area.. =<4 Page L.UT 1.3 2015 -05 -26 Agenda Packet Page 442 Employment Land Demand Overview ■ 2005 GPU Projection - Industrial Space Demand • Moderate Scenario: 5.6 Million SF / (342 Acres) • High Scenario: 9.1 Million SF / (558 Acres) ■ 2012 Projection - Industrial Space Demand • Moderate Scenario: 2.8 Million SF / (171 Acres) • High Scenario: 4.1 Million SF / (253 Acres) ■ 2005 GPU Projection - Office Space Demand ■ Moderate Scenario: 2.2 Million SF ■ High Scenario: 3.8 Million SF ■ 2012 Projection - Office Space Demand ■ Moderate Scenario: 1.2 Million SF ■ High Scenario: 2.2 Million SF 2015 -05 -26 Agenda Packet Page 443 Employment Land Supply Overview Area Industrial Office Acres Square Feet * Acres Square Feet VILLAGE 8 WEST _ 85 1,850,300 n/a 50,000 VILLAGE 9 n/a 1,200,000 EASTERN URBAN CENTER (EUC) n/a 2,000,000 UNIVERSITY n/a 11.3 818,261 ** 120,000* REGIONAL TECHNOLOGY PARK (RTP) VILLAGE 3 28.6 22 280,300 229,000 URBAN CORE SPECIFIC PLAN, n/a PM n/a 1,300,000 540,000 SOUTHWEST CHULA VISTA BAYFRONT 110 46 83 24 1,149,000 480,000 867,700 250,900 SUN BOW VILLAGE 2 EASTLAKE BUSINESS CENTER OTAY VALLEY ROAD 56 548,000 TOTAL 454.6 5,655,200 nla 5,090,000 * Uses 20 -25% reduction on acres for net land. Assumes 0.3 FAR on net area. ** Academic and Administrative Offices 2015 -05 -26 Agenda Packet Page 444 CITY OF CHULAVISTA j Infrastructure &Services Considerations ■ Technical studies: Traffic, sewer, water, noise, air quality, green house gas, health risk assessment, geo- technical, drainage, and water quality. ■ Parking: Parking provisions at SPA Plan level, Design Review ■ Parks: 2 -acre Highly Amenitized Park ■ Schools: a) Chula Vista Elementary approximately 180 students within Wolf Canyon attendance area; and b) Sweetwater Union High School District approximately 52 middle school and 121 high school students within EastLake Middle School and Olympian High School attendance areas. 2015 -05 -26 Agenda Packet Page 445 School Locations Bonita Vista k - Tiffany -R-- , or- Casillas Elementary NORTH OF Rancho Del Ray Middle School Heritage Future Future Elementary Future Elementary McMillin Elementary EastLake r. Middle School Salt Creek Elementary EastLake High School T1 Arroyo Vista Elementary 'nk Olympic View Elementary ENN OTC Elemen tary Veterans Elementary Future Future • Elementary High School • High Tech.. Wolf Canyon High Schook Elementary Nlymplan Future Elementary Middle School Future Elementary L W-" Future A . v Future &L Elementary Future Elementary IM CHUIA VISTA V� d ,fisa Ne' CHULA VISTA ELEMENTARY SCHOOL DISTRICT 84 EAST "J" STREET • CHULA VISTA, CALIFORNIA 81910. 619 425 -9600 EACH CHILD IS AN INDIVIDUAL OF GREAT WORTH May 7, 2015 Mr. Stan Dann City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Re: stay Ranch PA12 Project and CVESD Mitigation Dear Stan: The Chula Vista Elementary School District (CVESD) is aware of the proposal to modify the General Plan and General Development Plan for Planning Area 12 to allow for a mix at uses including residential uses. It is anticipated that the 600 residential units proposed would generate approximately 180 elementary school students which were not previously anticipated. A majority of the site, approximately 80 %, is already annexed into a Community Financing District that was established to fund capital improvement necessary to provide schools to serve community residents. We have met with the applicant, Baldwin & Sons, to discuss options for the portion of Otay Ranch PA12 that is located outside of the boundary of the CFD. At the time of the meeting Baldwin & Sons expressed their willingness to annex the remainder of the property into a CFD prior to the development of the s1te. We are satisfied that Baldwin & Sons will either annex the property into an existing CFD (there are several options including CFD 1) or will form a new CFD solely for the PA12 project, Proceeds from the CFD(s) will help fund the additional capacity needed. By annexing the un- mitigated property Into a CFD or establishing a new CFD, Baldwin & Sans will have met their obligation to fully mitigate for the students generated from the project, if approved. Sincerely, Sehall Facilities Planning Manager BOARD Of EDUCATION MARISSAA. 13EJARMO ♦ LESLIE RAY BUNKER • EDUARDO REYES, Eo.D. • FRANCISCO TAMAYO • GLENDORA M. TREMPER SUPERINTENDENT FRANCISCO ESCOSEDO, Ea.D. PLANNING AND CONSTRUCTION .SvWE- R1t /A -MR 1130 Flfth Avenue . Chula Vista, CA 93911 -2896 UNION NIGH SCHOOL DISMICT (619) 691 -5553 • FAX (619) 420 -0339 PAUL D. WOODS DIRECTOR OF PLANNING & CONSTRUCTION May 7, 2015 Mr. Stan Donn City of Chula Vista 276 Fourth Avenue Chula V- ssta,Califomin 91910 Re; Otay Ranch PA11 Project and SURSD Mitigation Dear Stan: The Sweetwater Union High School District (SUIdSD) is aware of t e proposal to modify the General Plan and General Development Plan for Planning Area 12 to allow for a mix of uses including residential uses. It is anticipated that the 600 residential units proposed would generate approximately 52 middle school students and 121 high school students which were not previously anticipated. A majority of the site, approximately 804, is already within Community Facilities District (CPD) #1 that was established to fund capital improvement necessary to provide schools to serve community residents. We have met with met with the applicant, Baldwin & Sons, to discuss options for the portion of Olay Ranch PAf2 that is located outside of the boundary of the CFD. At the time of the meeting Baldwin & Sons expressed their willingness to annex the remainder of the property into a CFD prior to the development of the site or to create a new CFD for this project. We are satisfied that Baldwin & Sons will either annex the property into an existing CFD (there are several options including CFD PI) or will form a new CFD for the PA12 project. Proceeds from the CFD funding will help fund the middle and high schools that are current being planned for Village 8 West and Village 11, respectively. We discussed with Baldwin & Sons a level of funding from an annexation or a new CPD that would be approximately 50 percent of the total cost to house students from new development. Assuming that the other 50 percent of the cost will come from State Funding in tile future, SU14SD will he able to accommodate the new students expected to be generated by approval ofthis pmject- Sincerely, �� Paul D. Woods Director of Planning and Construction cc: P. Stover, SUHSD C. Scholl, CVESD Maximizing student achievement for 711 --12rs grade students and adult learners throu bout South San Diego County "S:oreturater Uniax High Srhovl L;W ict programs and acli vties shod be free from descrimimrliors b—don age, garderrgender idmtihj or .Preesioa, v &-Iic injirrn tiro sec, tare, color, M ancestry, rmtiomrr or(gin, ahniegm p idrnhfwnlion, mmihrf or prneninl statics, phy-1 .—W disability, sex:raf mientaeivn; the p —pd-of ant or nm of s oil chnra wishes; vrnssocurrion -d, a person argnwp with one m more of these actual or perceived cimrrrcteristics. "- SL[HSD 11—d Parley 0420. Los progmmae y actividades dd disfrito Sweetwater Untan High School DWKet Mahn libres & diserindrmcion basada en edad, genera, identidodv espres16n degh —, o informoc16x gendff", sexy, raz4 eolar, religion, ascend, —, vrlgen national, c idcntifcac l dgrup dnit, -tad cvil dirncdad fisk. mtal, orntad6n --J; opor to p gddn & una a m6s & dihss cmtestim, n 1n x roe rum Paw- grupv mn una .,.,& d. &,h. ca nettrtsticns pertibtdas v rmres. " - Potitica 0410 dot Consejo de SUHSD. 2015 -05 -26 Agenda Packet Page 447 CITY OF CHULAVISTA j Addendum to Otay Ranch Planning Area Twelve FEIR -02 -04 CEQA Guidelines state ... "where the changes or new information will result in no new impacts, or no more severe impacts than any that were disclosed in the FEIR for the approved project, the City shall prepare an addendum" Technical studies were performed by qualified experts for the following: Traffic Noise Greenhouse Gas Air Quality Sewer Water Availability No new or more severe impacts than those identified in EIR- 02 -04. Addendum prepared for consideration by Planning Commission and City Council consistent with CEQA 2015 -05 -26 Agenda Packet Page 448 CITY OF 05-_ CHULAVISTA Fiscal Impact 2015 -05 -26 Agenda Pai naiysis 4 At "W -0 Own rob- CITY OF CHULAVISTA 11L Development Agreement Key Provision &Benefits • Assurance for the construction of 2 hotels - 1St Hotel: Commence construction prior to issuance of first residential permit — 2nd Hotel: Commence substantial construction prior to issuance of last residential permit • Construction and Maintenance of a highly - amenitized 2 -acre Urban Park • Dedication of Right of Way for BRT 2015 -05 -26 Agenda Packet Page 450 CITY OF CHULAVISTA 'fir 'y PLANNING COMMISSION RECOMMENDATION b) Initial vote 2- 2 -2 -1, motion failed Second motion that City Council deny project, acknowledging commissioners Fuentes and Gutierrez previously recommended approval. This motion recommending City Council deny the project, carried 4- 0 -2 -1. 2015 -05 -26 Agenda Packet Page 451 4�1 CITY OF CHULAVISTA 1. Fr. NDATION 1 ............r y City Council Consider the Addendum to FEIR 02 -04; and Approve: —' a) Amendments to Chula Vista GP, Otay Ranch GDP (Freeway Commercial PA12); and b) Associated Development Agreement 2015 -05 -26 Agenda Packet Page 452 �y5'Ca RLxn,t, CHULA VISTA ELEMENTARY SCHOOL DISTRICT 84 EAST "J" STREET • CHULA VISTA, CALIFORNIA 919'10.619 425 -9600 EACH CHILD IS AN INDIVIDUAL OF GREAT WORTH May 7, 2015 Mr. Stan Donn City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Re: Otay Ranch PA12 Project and CVESD Mitigation Dear Stan: The Chula Vista Elementary School District (CVESD) is aware of the proposal to modify the General Plan and General Development Plan for Planning Area 12 to allow for a mix of uses including residential uses. It is anticipated that the 600 residential units proposed would generate approximately 180 elementary school students which were not previously anticipated. A majority of the site, approximately 80 %, is already annexed into a Community Financing District that was established to fund capital improvement necessary to provide schools to serve community residents. We have met with the applicant, Baldwin & Sons, to discuss options for the portion of Otay Ranch PA12 that is located outside of the boundary of the CFD. At the time of the meeting Baldwin & Sons expressed their willingness to annex the remainder of the property into a CFD prior to the development of the site. We are satisfied that Baldwin & Sons will either annex the property into an existing CFD (there are several options including CFD 1) or will form a new CFD solely for the PA12 project. Proceeds from the CFD(s) will help fund the additional capacity needed. By annexing the un- mitigated property into a CFD or establishing a new CFD, Baldwin & Sons will have met their obligation to fully mitigate for the students generated from the project, if approved. Sincerely, Scholl Facilities Planning Manager BOARD OF EDUCATION MARISSA A. BEJARANO ♦ LESLIE RAY BUNKER ♦ EDUARDO REYES, ED.D. ♦ FRANCISCO TAMAYO ♦ GLENDORA M. TREMPER SUPERINTENDENT FRANCISCO ESCOBEDO, ED.D. 2015 -05 -26 Agenda Packet Page 454 PLANNING AND CONSTRUCTION 1130 Fifth Avenue a Chula[ Vista, CA 91 91 1 -2896 (619) 691 -5553 a FAX (619) 420 -0339 PAUL D. WOODS DIRECTOR OF PLANNING & CONSTRUCTION May 7, 2015 Mr. Stan Donn City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Re: Otay Ranch PA12 Project acrd SUHSD Mitigation Dear Stan: The Sweetwater Union High School District (SUHSD) is aware of the proposal to modify the General Plan and General Development Plan for Planning Area 12 to allow for a mix of uses including residential uses. It is anticipated that the 600 residential units proposed would generate approximately 52 middle school students and 121 high school students which were not previously anticipated. A majority of the site, approximately 80 %, is already within Community Facilities District (CFD) #1 that was established to fund capital improvement necessary to provide schools to serve community residents. We have met with met with the applicant, Baldwin & Sons, to discuss options for the portion of Otay Ranch PA12 that is located outside of the boundary of the CFD. At the time of the meeting Baldwin & Sons expressed their willingness to annex the remainder of the property into a CFD prior to the development of the site or to create a new CFD for this project. We are satisfied that Baldwin &, Sons will either annex the property into an existing CFD (there are several options including CFD #1) or will form a new CFD for the PA12 project. Proceeds from the CFD funding will help fund the middle and high schools that are current being planned for Village 8 West and Village 11, respectively. We discussed with Baldwin & Sons a level of funding from an annexation or a new CFD that would be approximately 50 percent of the total cost to house students from new development. Assuming that the other 50 percent of the cost will come from State Funding in the future, SUHSD will be able to accommodate the new students expected to be generated by approval of this project. Sincerely, Paul D. Woods Director of Planning and Construction cc: P. Stover, SUHSD C. Scholl, CVESD Maximizing student achievement for 71h - -12t1i grade students and adult Iearners throughout South San Diego Counttj "Sweetwater Union High School District programs and activities shall be free from discrimination based on age, gender, gender identihj or expression, or genetic information, sex, race, color, religion, ancestnj, national origin, ethnic group identification, marital or parental status, physical or mental disability, sexual orientation; the perception of one or more of such characteristics; or association with a person or group with one or more of these actual or perceived characteristics. " - SUHSD Board Policy 0410. Los programas y actividades del distrito Sweetwater Union High School District estarnn libres de discrimination basada ell edad, genera, identdad o expresi6n de gendro, o information genetica, sexo, raza, color, religi6n, ascendencia, origen national, identificacion con un gruuo etnico, estado civil, sCt�1��tCt ad Sic o ental, orientaci6n sexual- o por la perception de una o mas de dichas caracteristicas, o la asociaci6n con una persona o ns o 20 U3 -L6 Age claYacicet Oag�455 con una o etas de dichas caracteristicas percibidas o reales." - Politica 0410 del Consejo de SUHSD. TYPE MEETING: Regular Board AGENDA ITEM 8a 4 STAFF REPORT MEETING DATE: April 1, 2015 SUBMITTED BY: Lisa Coburn -Boyd CIP. /G.F. NO: D0933- Environmental Compliance 090217 Specialist Bob Kennedy Engineering Manager APPROVED BY: ® Rod Posada, Chief, Engineering ® German Alvarez, Assistant General Manager ® Mark Watton, General Manager SUBJECT: Approval of Water Supply (February 2015) for the Commercial Project DIV. NO. 1 Assessment and Verification Report Otay Ranch Planning Area 12 Freeway GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve the Water Supply Assessment Report (WSA &V Report) dated February 2015 for the Otay Ranch Planning Area 12 Freeway Commercial Project, as required by Senate Bills 610 and 221 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PTTR PO .qF. To obtain Board approval of the February 2015 WSA &V Report for the Otay Ranch Planning Area 12 Freeway Commercial Project, as required by Senate Bill 610 and Senate Bill 221 (SB 610 and SB 221) . ANAT.VCTC The City of Chula Vista submitted a request to the District for an updated WSA &V Report, pursuant to SB 610 and SB 221. SB 610 and SB 221 require that, upon the request of the City or County, a water purveyor, such as the District, prepare a water supply assessment and verification report to be included in the 2015 -05 -26 Agenda Packet Page 456 California Environmental Quality Act (CEQA) environmental documentation. The original WSA &V Report for the Freeway Commercial Project was approved by the District Board of Directors in July 2013. An updated WSA &V Report is needed because of changes in the configuration of the Project and in the Project's potable and recycled water demands. SB 610 requires a city or county to evaluate whether water supplies will be sufficient to meet the projected water demand for certain "projects" that are otherwise subject to the requirement of the CEQA. SB 610 provides its own definition of "project" in Water Code Section 10912. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are planned to be available for certain residential subdivisions of property. The requirements of SB 610 and SB 221 are addressed by the February 2015 WSA &V Report for this Project. The WSA &V Report was prepared by the District in consultation with Dexter Wilson Engineering, Inc., the San Diego County Water Authority (Water Authority), and the City of Chula Vista (City) . Prior to transmittal to the City, the WSA &V Report must be approved by the Board of Directors. An additional explanation of the intent of SB 610 and SB 221 is provided in Exhibit C, Otay Ranch Planning Area 12 Freeway Commercial Project WSA &V Report is provided as Exhibit D. For the Otay Ranch Planning Area 12 Freeway Commercial Project, the City is the responsible land use agency that requested the SB 610 and SB 221 water supply assessment and verification report from the District. The request for the WSA &V Reports, in compliance with SB 610 and SB 221 requirements, was made by the City because the Project meets or exceeds one or both of the following SB 610 and SB 221 criteria: • A proposed residential development of more than 500 dwelling units. • A proposed commercial office building employing more than 1,000 persons or having more than 250,000 square feet of floor space. • A mixed -use project that includes one or more of the land uses specified in SB 610. 2 2015 -05 -26 Agenda Packet Page 457 • A project that would demand an amount of water equivalent to, or greater than, the amount of water required by a 500 dwelling unit project. The Otay Ranch Planning Area 12 Freeway Commercial Project is located along the southern boundary of Olympic Parkway and includes development on both sides of Town Center Drive. Baldwin and Sons development concept for the approximately 34.5 acre site includes multi - family residential, hotel, commercial, and a park site. The Project site is planned for 650 residential units, 310 hotel rooms, and up to 25,000 square feet of commercial development. The current entitlement on the property was for the entire 34.5 acres to be commercial with up to 347,000 square feet of building space. The expected potable water demands for the Planning Area 12 Freeway Commercial Project are 0.208 million gallons per day (MGD) or about 233 acre -feet per year (AFY). This is 173 AFY higher than the demand estimate in the District's 2010 Water Resources Master Plan Update and the District's 2010 UWMP (60 AFY)and 46 AFY higher than the 2013 WSA &V Report projections (187 AFY). The projected recycled water demand for the proposed Project is approximately 0.035 MGD or about 38.8 AFY, representing about 160 of total Project water demand. The table below illustrates the changes in the project since the 2013 report. Land Use WSA &V (May 2013) WSA &V (Feb 2015) Area Dwelling Average Average Area Dwelling Average Average (ac.) Units Potable Recycled (ac.) Units Potable Recycled Demand Demand Demand Demand (AFY) (AFY) (AFY) (AFY) Multi - Family 448 129 22.7 650 188 33.0 Residential Hotel (2) 257 33 0 310 39 0 Commercial 14.5 25 3.4 4.0 6 1.0 Park 1.0 0 2.4 2.0 0 4.8 Total 187 233 38.8 The 173 AFY increase is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 UWMP. As documented in the Water Authority's 2010 UWMP, the Water Authority is planning to meet future and existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents 3 2015 -05 -26 Agenda Packet Page 458 provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. In addition, the next update of the demand forecast for the Water Authority's 2015 UWMP will be based on SANDAG's most recently updated forecast, which will include the Project. Therefore, based on the findings from the District's 2010 UWMP and the Water Authority's 2010 UWMP, this Project will result in no unanticipated demands. The request for compliance with SB 221 requirements was made by the City because the Project will exceed the SB 221 criteria of a proposed residential development subdivision of more than 500 dwelling units. Pursuant to SB 610 and SB 221, the WSA &V Report incorporates by reference the current Urban Water Management Plans and other water resources planning documents of the District, the Water Authority, and the Metropolitan Water District of Southern California (Metropolitan). The District prepared the WSA &V Report in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the City, which demonstrates and documents that sufficient water supplies are planned for and are intended to be made available over a 20 -year planning horizon under normal supply conditions, in single and multiple -dry years to meet the projected demand of the Otay Ranch Planning Area 12 Freeway Commercial Project and other planned development projects within the District. FISCAL IMPACT: ® Joe Beachem, Chief Financial Officer The District has been reimbursed $8,000 for all costs associated with the preparation of the Otay Ranch Planning Area 12 Freeway Commercial Project WSA &V Report. The reimbursement was accomplished via an $8,000 deposit the Project proponents placed with the District on December 16, 2014. STRATEGIC GOAL: The preparation and approval of the WSA &V Report for the Otay Ranch Planning Area 12 Freeway Commercial Project supports the District's Mission statement, "To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner" and the District's Strategic Goal 3.1.1, "Actively manage water supply and demand." 4 2015 -05 -26 Agenda Packet Page 459 LEGAL IMPACT: Approval of a WSA &V Report for the Otay Ranch Planning Area 12 Freeway Commercial Project in form and content satisfactory to the Board of Directors would allow the District to comply with the requirements of Senate Bills 610 and 221. LC- B /BK:jf P: \WORKING \WO D0933 Freeway Commercial \Staff Report \BD 04- 01 -15, Staff Report, PA12 Freeway Commercial WSA -V, (LCB- BK).doc Attachments: Attachment A - Committee Action Exhibit A - Location Map Exhibit B - Explanation of the Intent of SB 610 & SB 221 Exhibit C - Otay Ranch Planning Area 12 Freeway Commercial Project WSA &V Report Exhibit D - Presentation 2015 -05 -26 Agenda Packet Page 460 I* ATTACHMENT A SUBJECT /PROJECT: Approval of Water Supply Assessment and Verification D0933- 090217 Report (February 2015) for the Otay Ranch Planning Area 12 Freeway Commercial Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 12, 2015, and the following comments were made: • Staff requested that the Board approve the Water Supply Assessment Report (WSA &V Report) dated February 2015 for the Otay Ranch Planning Area 12 Freeway Commercial Project, as required by Senate Bills 610 and 221. • Staff indicated that the City of Chula Vista requested that the District prepare the WSA and Verification Report for the Otay Ranch Planning Area 12 Freeway Commercial Project. SB 610 requires that the District honor the City's request, and that board approval for the submittal of the WSA &V Report to the City of Chula Vista is required. Exhibit A provides the location of the project site. • Plans for the Project are provided on page 3 of the staff report. Staff indicated that the current plan is to develop 28.7 acres of the 34.5 acre site and includes two hotels, 650 multi - family residential dwellings, 25,000 sq. ft. of commercial /retail and a park. Overall, the total water demand of the project is 46 AFY higher for potable and 20.3 higher for recycled than what was previously approved by the Board in May 2013. • Staff noted that the 46 AFY increase in demand over what was previously approved is accounted for through the Accelerated Forecasted Growth (AFG) demand increment of the Water Authority's 2010 UWMP. 2015 -05 -26 Agenda Packet Page 461 • It was indicated that the first WSA &V for the Project had been approved for the use of 127 AFY of the AFG demand increment; the total approved use is now 173 AFY. Staff stated that based on the findings from the District's and the Water Authority's 2010 UWMPs, this Project will result in no unanticipated demands. • A PowerPoint presentation was provided to the Committee that included the following: o Background of Senate Bills 610 and 221, which became effective on January 1, 2002, and its intent and how it relates to the WSA &V Report o Land use plan and description for the Otay Ranch PA12 Freeway Commercial Project • Changes since the 2013 WSA &V and the Potable demand estimates for the Otay Ranch PA12 Freeway Commercial Project • Otay Water District's and the San Diego County Water Authority's Urban Water Management Plan o Otay Water District's Projected Balance of Supply and Demand o Projected and Historical Potable Water Fiscal Year Demands • It was noted that the Otay Ranch PA12 Freeway Commercial Project's WSA &V Report includes (2) two other Otay Water District Planned Local Water Supply Projects: o Rosarito Ocean Desalination Project (20,000- 50,000 AFY) o Otay Mesa Lot 7 Groundwater Well (300 AFY) • A slide was presented that showed the Water Authority Supplies, which included IID Water Transfer, ACC and CC Lining, and the Carlsbad Desalination project. • Staff indicated that the status of the current water supply situation is documented in the WSA &V Report with the intent that the water agencies plan to develop sufficient water supplies to meet demands. Staff believes that the Board has 2015 -05 -26 Agenda Packet Page 462 met the intent of SB 610 and 221 statutes in that Land use agencies and water suppliers have demonstrated strong linkage. The Otay Ranch PA12 Freeway Commercial Project WSA &V Report clearly documents the current water supply situation. Staff believes that based on existing documentation, the WSA &V Report demonstrates and documents that sufficient water supplies are planned for and are intended to be acquired and also identifies the actions necessary to develop the supplies for a 20 -year planning horizon. • In response to a question by the Committee, staff stated that a change in the density of the Project's plan caused an increase in the project's potable and recycled water demand. The developer decided that it would be more beneficial to develop multi - family residential dwellings instead of commercial developments. • In response to a question by the Committee, staff stated that the Millenia Annexation Project is taking place near the vicinity of the Otay Ranch Planning Area 12 Freeway Commercial Project. These two projects are just the beginning of development in the area; staff anticipates that it may take up to (10) ten years for build out of the vicinity. • Staff indicated that the District and the City of Chula Vista have worked well together to align projected water supply and demands for projects. • In response to a comment by the Committee, staff stated that the Accelerated Forecasted Growth (AFG) demand increment of the Water Authority's 2010 UWMP helps balance the District's projected water supply and demand to avoid future water supply shortages. • The Committee commented on the reasonable fee of $8,000 to complete the WSA &V Report Update. Staff stated that they work with consultants, who is hired by developers, to prepare the WSA &V Report Update and has become more efficient at preparing WSA &V Report Updates over the years as they are prepared on a regular basis. • The Committee inquired about including a notation in the WSA &V Report Update about the risk of water supply associated with the City of San Diego's Pure Water Program 2015 -05 -26 Agenda Packet Page 463 that may result in the City taking recycled water from the District. Staff indicated that the notation is outside of the planning period but staff will include it in future WSA &V Report Updates. Following the discussion, the Committee supported staffs' recommendation and presentation to the full board as an action item. 2015 -05 -26 Agenda Packet Page 464 a DIY 3 I •_y PROJECT wm DIV 2 -r VICINITY MAP ��'•"•`"ti,�. ••p� r 'yxti.s ••�� _ .. - -. - - �. -mot =- �'. Ti!114 :� ?vr:t {err .._ - =- � • y"� j� � +.rK��._ I,,`r�� . .•Lip • 4�1� _ `SSA -�� ^� .tiy�, yk�ti . I ' •�,��. t Tti y � a� �. tip,. f �.• A' V. p ti • c �s y �1 �..•V•w I �F^ OTAY WATER DISTRICT e PA -12 FREEWAY COMMERCIAL LOCATION MAP EXHIBIT A N f� -r e'? .a ssc 1,100 FCfT H WO D0933 2015 -05 -26 Agenda Packet Page 465 EXHIBIT B Background Information The Otay Water District (District) prepared the updated February 2015 Water Supply Assessment and Verification (WSA &V) Report for the Otay Ranch Planning Area 12 Freeway Commercial Project at the request of the City of Chula Vista (City). The City's WSA &V request letter dated February 25, 2015 was received by the District on February 25, 2015 so the 90 -day deadline for the District to provide the Board an approved WSA &V Report to the City ends May 25, 2015. The Otay Ranch Planning Area 12 Freeway Commercial Project is located within the jurisdictions of the District, the San Diego County Water Authority (Water Authority), and the Metropolitan Water District of Southern California (MWD). See Exhibit A for Project location. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the District, Water Authority, and MWD. The February 2015 WSA &V Report for the Otay Ranch Planning Area 12 Freeway Commercial Project has been prepared by the District in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the City, pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate Bill (SB) 610 and Government Code Sections 65867.5, 66455.3, and 66473.7 referred to as SB 221. SB 610 and SB 221 amended state law, effective January 1, 2002, intending to improve the link between information on water supply availability and certain land use decisions made by cities and counties. SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA) environmental documentation and approval process of certain proposed projects. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are to be available for certain residential subdivision of property. The requirements of SB 610 and SB 221 are addressed in the May 2013 WSA &V Report for the Otay Ranch Planning Area 12 Freeway Commercial Project. The expected potable water demands for the Planning Area 12 Freeway Commercial Project are 0.208 million gallons per day (MGD) or about 233 acre -feet per year (AFY). This is 173 AFY higher than the demand estimate in the District's 2010 Water Resources Master Plan Update and District's 2010 UWMP and 46 AFY higher than the 2013 WSA &V report first done for the project. The projected recycled water demand for the proposed Project is approximately 0.035 MGD or about 38.8 AFY, representing about 16% of total Project water demand. The 173 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 UWMP. As documented in the Water Authority's 2010 UWMP, the Water Authority is planning to meet future and 2015 -05 -26 Agenda Packet Page 466 existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. In addition, the next update of the demand forecast for the Water Authority's 2015 UWMP will be based on SANDAG's most recently updated forecast, which will include the Project. Therefore, based on the findings from the Otay WD's 2010 UWMP and the Water Authority's 2010 UWMP, this Project will result in no unanticipated demands. The District currently depends on the Water Authority and the MWD for all of its potable water supplies and regional water resource planning. The District's 2010 Urban Water Management Plan (UWMP) relies heavily on the UWMP's and Integrated Water Resources Plans (IRPs) of the Water Authority and MWD for documentation of supplies available to meet projected demands. These plans are developed to manage the uncertainties and variability of multiple supply sources and demands over the long -term through preferred water resources strategy adoption and resource development target approvals for implementation. MWD, in October 2010, approved the update of their Integrated Water Resources Plan (IRP). The 2010 IRP Update describes an adaptive management approach to mitigate against future water supply uncertainty. The new uncertainties that are significantly affecting California's water resources include: The Federal Court ruling on previous operational limits on Sacramento -San Joaquin Delta to protect the Delta species. Water agencies are still trying to determine what effect the ruling will have on State Water Project (SWP) deliveries. Actual supply curtailments for MWD are contingent upon fish distribution, behavioral patterns, weather, Delta flow conditions, and how water supply reductions are divided between state and federal projects. • Periodic extended drought conditions. These uncertainties have rightly caused concern among Southern California water supply agencies regarding the validity of the current water supply documentation. MWD is currently involved in several proceedings concerning Delta operations to evaluate and address environmental concerns. In addition, at the State level, the Delta Vision and Bay -Delta Conservation Plan processes are defining long -term solutions for the Delta. The SWP represents approximately 9% of MWD's 2025 Dry Resources Mix, with the supply buffer included. A 22% cutback in SWP supply represents an overall 2% (22% of 9% is 2 %) cutback in MWD supplies in 2025. Neither the Water Authority nor MWD has stated that there is insufficient water for future planning in Southern California. Each agency is in the process of reassessing and reallocating their water resources. 2015 -05 -26 Agenda Packet Page 467 Under preferential rights, MWD can allocate water without regard to historic water purchases or dependence on MWD. Therefore, the Water Authority and its member agencies are taking measures to reduce dependence on MWD through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation. As calculated by MWD (December 11, 2012), the Water Authority's current preferential right is 17.22% of MWD's supply, while the Water Authority accounted for approximately 25% of MWD's total revenue. So MWD could theoretically cut back the Water Authority's supply and theoretically, the Water Authority should have alternative water supply sources to make up for the difference. In the Water Authority's 2010 UWMP, they had already planned to reduce reliance on MWD supplies. This reduction is planned to be achieved through diversification of their water supply portfolio. The Water Authority's Drought Management Plan (May 2006) provides the Water Authority and its member agencies with a series of potential actions to engage when faced with a shortage of imported water supplies due to prolonged drought conditions. Such actions help avoid or minimize impacts of shortages and ensure an equitable allocation of supplies throughout the San Diego County region. The Otay Water District Board of Directors could acknowledge the ever - present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions. The responsible regional water supply agencies have and will continue to adapt their resource plans and strategies to meet climatological, environmental, and legal challenges so that they may continue to provide water supplies to their service areas. The regional water suppliers (i.e., the Water Authority and MWD), along with the District, fully intend to maintain sufficient reliable supplies through the 20 -year planning horizon under normal, single, and multiple -dry year conditions to meet projected demand of the Otay Ranch Planning Area 12 Freeway Commercial Project, along with existing and other planned development projects within the District's service area. If the regional water suppliers determine additional water supplies will be required, or in this case, that water supply portfolios need to be reassessed and redistributed with the intent to serve the existing and future water needs throughout Southern California, the agencies must indicate the status or stage of development of actions identified in the plans they provide. MWD's 2010 1 R update will then cause the Water Authority to update its IRP, which will then provide the District with the necessary water supply documentation. Identification of a potential future action in such plans does not by itself indicate that a decision to approve or to proceed with the action has been made. The District's Board approval of the Otay Ranch Planning Area 12 Freeway Commercial Project WSA &V Report does not in any way guarantee water supply to the Project. 2015 -05 -26 Agenda Packet Page 468 Alternatively, if the WSA &V Report is written to state that water supply is or will be unavailable; the District must include, in the assessment, a plan to acquire additional water supplies. At this time, the District should not state there is insufficient water supply. So the best the District can do right now is to state the current water supply situation clearly, indicating intent to provide supply through reassessment and reallocation by the regional, as well as, the local water suppliers. In doing so, it is believed that the Board has met the intent of the SB 610 statute, that the land use agencies and the water agencies are coordinating their efforts in planning water supplies for new development. With District Board approval of the Otay Ranch Planning Area 12 Freeway Commercial Project WSA &V Report, the Otay Ranch Planning Area 12 Freeway Commercial Project proponents can proceed with the draft environmental documentation required for the CEQA review process. The water supply issues will be addressed in these environmental documents, consistent with the WSA &V Report. The District, as well as others, can comment on the draft EIR with recommendations that water conservation measures and actions be employed on the Otay Ranch Planning Area 12 Freeway Commercial Project. Some recent actions regarding water supply assessments and verification reports by Otay Water District are as follows: • The Board approved the Otay Ranch L.P. Otay Ranch Preserve and Resort Project Water Supply Assessment and Verification Report on February 4, 2009. • The Board approved water supply assessment and verification reports for the City of Chula Vista Village 8 West Sectional Plan Area and Village 9 Sectional Plan Area on January 5, 2011. • The Board approved the water supply assessment report for the San Diego - Tijuana Cross Border Facility on February 2, 2011. • The Board approved the water supply assessment for the County of San Diego Rabago Technology Park on April 6, 2011. • The Board approved the water supply assessment report for the Pio Pico Energy Center Project on October 5, 2011. • The Board approved the water supply assessment report for the Hawano Project on March 7, 2012. • The Board approved the water supply assessment reports for the Sunroad Otay Plaza and Otay Tech Center Projects on March 6, 2013. 2015 -05 -26 Agenda Packet Page 469 • The Board approved the water supply assessment report for the Otay Ranch University Villages Project on November 6, 2013. The Board approved the water supply assessment report for the Otay Ranch Resort Village Project on May 7, 2014. Water supplies necessary to serve the demands of the proposed Otay Ranch Planning Area 12 Freeway Commercial Project, along with existing and other projected future users, as well as the actions necessary to develop these supplies, have been identified in the water supply planning documents of the District, the Water Authority, and MWD. The WSA &V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, or agreements relevant to the identified water supply needs for the proposed Otay Ranch Planning Area 12 Freeway Commercial Project. The WSA &V Report demonstrates and documents that sufficient water supplies are planned and are intended to be available over a 20 -year planning horizon, under normal conditions and in single and multiple -dry years, to meet the projected demand of the proposed Otay Ranch Planning Area 12 Freeway Commercial Project and the existing and other planned development projects within the District. Accordingly, after approval of a WSA &V Report for the Otay Ranch Planning Area 12 Freeway Commercial Project by the District's Board of Directors, the WSA &V Report may be used to comply with the requirements of the legislation enacted by Senate Bills 610 and 221 as follows: Senate Bill (SB) 610 Water Supply Assessment: The District's Board of Directors approved WSA &V Report may be incorporated into the California Environmental Quality Act (CEQA) compliance process for the Otay Ranch Planning Area 12 Freeway Commercial Project as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610. The City of Chula Vista, as lead agency under the CEQA for the Otay Ranch Planning Area 12 Freeway Commercial Project environmental documentation, may cite the approved WSA &V Report as evidence that a sufficient water supply is planned and intended to be available to serve the Otay Ranch Planning Area 12 Freeway Commercial Project. Senate Bill (SB) 221 Water Supply Verification: The District's Board of Directors approved WSA &V Report may be incorporated into the Otay Ranch Planning Area 12 Freeway Commercial Project as a water supply verification report, consistent with the requirements of the legislation enacted by SB 221. The City, within their process of approving the Otay Ranch Planning Area 12 Freeway Commercial Project, may cite the approved WSA &V Report as verification of intended sufficient water supply to serve the Project. 2015 -05 -26 Agenda Packet Page 470 EXHIBIT C OTAY WATER DISTRICT WATER SUPPLY ASSESSMENT AND VERIFICATION REPORT Otay Ranch Planning Area 12 Freeway Commercial D0933- 090217 Prepared by: Lisa Coburn -Boyd Environmental Compliance Specialist and Robert Kennedy, P.E. Engineering Manager Otay Water District in consultation with Dexter Wilson Engineering, Inc. and San Diego County Water Authority February 2015 2015 -05 -26 Agenda Packet Page 471 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Otay Water District Water Supply Assessment and Verification Report February 2015 Otay Ranch Planning Area 12 Freeway Commercial Table of Contents ExecutiveSummary------------------------------------------------------------------------------------------------------------------------------ - - - - -- I Section1- Purpose-------------------------------------------------------------------------------------------------------------------------------- - - - - -- 6 Section2 - Findings------------------------------------------------------------------------------------------------------------------------------- - - - - -- 7 Section3 - Project Description ---------------------------------------------------------------------------------------------------------- - - - - -- 10 Section 4 — Otay Water District--------------------------------------------------------------------------------------------------------- - - - - -- 11 4.1 Urban Water Management Plan .............................. .............................13 Section 5 — Historical and Projected Water Demands ........................................... ............................... 14 5.1 Demand Management (Water Conservation) ........... .............................19 Section 6 - Existing and Projected Supplies ............................................................ ............................... 22 6.1 Metropolitan Water District of Southern California 2005 Regional Urban Water Management Plan ................ .............................23 6.2 San Diego County Water Authority Regional Water Supplies ................24 6.3 Otay Water District ................................................. .............................41 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies ..................... .............................42 6.3.1.1 Imported and Regional Supplies .... .............................43 6.3.1.2 Recycled Water Supplies .............. .............................46 Section 7 — Conclusion: Availability of Sufficient Supplies ................................... ............................... 53 SourceDocuments ------------------------------------------------------------------------------------------------------------------ - - --59 Appendix A: Otay Ranch PA 12 Freeway Commercial Regional Location Map Appendix B: Otay Ranch PA 12 Freeway Commercial Proposed Development Plan 2015 -05 -26 Agenda Packet Page 472 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Otay Water District Water Supply Assessment and Verification Report February 2015 Otay Ranch Planning Area 12 Freeway Commercial Executive Summary The Otay Water District (Otay WD) prepared this Water Supply Assessment and Verification Report (WSA &V Report) at the request of the City of Chula Vista (City) for the Otay Ranch Planning Area 12 Freeway Commercial project. Baldwin and Sons submitted a Specific Planning Area (SPA) Amendment to the City for the development of the Planning Area 12 Freeway Commercial project. This study is only for the FC -2 portion of the Planning Area 12 Freeway Commercial Project as the FC -1 site has already been developed. Otay WD approved a WSA &V Report for the project that was prepared in May 2013, but the land use plan has since changed. Otay Ranch Planning Area 12 Freeway Commercial Project Overview and Water Use The Planning Area 12 Freeway Commercial project is included within a land use planning document known as the Otay Ranch General Development Plan/Sub- regional Plan (Otay Ranch GDP). The County of San Diego and City of Chula Vista jointly prepared and adopted the Otay Ranch GDP. The Planning Area 12 Freeway Commercial project is located within a portion of the Otay Ranch GDP. The project is a part of the designated 14 villages and five planning areas within the Otay Ranch GDP area. The Chula Vista City Council and the San Diego County Board of Supervisors adopted the Otay Ranch GDP on October 28, 1993, which was accompanied by a Program Environmental Impact Report EIR -90 -01 (SCH #89010154). As the Otay Ranch area has developed over time, the Otay Ranch GDP has been periodically amended to address land use and circulation element issues specific to individual Villages. The Planning Area 12 Freeway Commercial project is located along the southern boundary of Olympic Parkway and includes development on both sides of Town Center Drive. Baldwin and Sons development concept for the approximately 34.5 acre site includes multi - family residential, hotel, commercial, and a park site. The project site is planned for 650 residential units, 310 hotel rooms, and up to 25,000 square feet of commercial development. The current entitlement on the property was for the entire 34.5 acres to be commercial with up to 347,000 square feet of building space. 2015 -05 -26 Agenda Packet Page 473 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The expected potable water demands for the Planning Area 12 Freeway Commercial Project are 0.208 million gallons per day (mgd) or about 233 acre feet per year (AFY). This is 173 AFY higher than the demand estimate in the District's 2010 Water Resources Master Plan Update and District's 2010 UWMP and 46 AFY higher than the 2013 WSA &V Report projections. The projected recycled water demand for the proposed project is approximately 0.035 mgd or about 38.8 AFY, representing about 16% of total project water demand. The 173 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 UWMP. As documented in the Water Authority's 2010 UWMP, the Water Authority is planning to meet future and existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. In addition, the next update of the demand forecast for the Water Authority's 2015 UWMP will be based on SANDAG's most recently updated forecast, which will include the Project. Therefore, based on the findings from the Otay WD's 2010 UWMP and the Water Authority's 2010 UWMP, this project will result in no unanticipated demands. The Water Authority's 2010 Urban Water Management Plan (UWMP) provides for a comprehensive planning analysis at a regional level and includes water use associated with accelerated forecasted development as part of its municipal and industrial sector demand projections. These housing and commercial units were identified by the San Diego Association of Government (SANDAG) in the course of its regional housing needs assessment, but are not yet included in existing general land use plans of local jurisdictions. The demand associated with accelerated forecasted residential development is intended to account for SANDAG's land -use development currently projected to occur between 2035 and 2050, but has the likely potential to occur on an accelerated schedule. SANDAG estimates that this accelerated forecasted residential and commercial development forecasted could occur within the planning horizon (2015 to 2035) of the 2010 UWMP. This land -use is not included in local jurisdictions' general plans, so their projected demands are incorporated at a regional level. When necessary, this additional demand increment, termed Accelerated Forecasted Growth, can be used by member agencies to meet the demands of development projects not identified in the general land use plans. Planned Imported Water Supplies from the Water Authority and MWD The Water Authority and the Metropolitan Water District of Southern California (MWD) have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the SANDAG updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast 2 2015 -05 -26 Agenda Packet Page 474 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their UWMP's. Prior to the next forecast update, local jurisdictions may require water supply assessment and /or verification reports for proposed land developments that are not within the Otay WD, Water Authority, nor MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans than what is reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations or revised land use plans typically result in the creation of higher demand and supply requirements than anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. The California Urban Water Management Planning Act (Act), which is included in the California Water Code, requires all urban water suppliers within the state to prepare an UWMP and update it every five years. The purpose and importance of the UWMP has evolved since it was first required 25 years ago. State agencies and the public frequently use the document to determine if agencies are planning adequately to reliably meet future demands. As such, UWMPs serve as an important element in documenting supply availability for the purpose of compliance with state laws, Senate Bills 610 and 221, linking water supply sufficiency to large land -use development approval. Agencies must also have a UWMP prepared, pursuant to the Act, in order to be eligible for state funding and drought assistance. MWD's Integrated Resource Plan (IRP) identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full - service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The MWD's 2010 update to the IRP (20 10 IRP Update) includes a planning buffer supply intended to mitigate against the risks associated with implementation of local and imported supply programs. The planning buffer identifies an additional increment of water that could potentially be developed if other supplies are not implemented as planned. As part of implementation of the planning buffer, MWD periodically evaluates supply development to ensure that the region is not under or over developing supplies. Managed properly, the planning buffer will help ensure that the southern California region, including San Diego County, will have adequate water supplies to meet future demands. Water supply agencies throughout California continue to face climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento -San Joaquin Delta issues and the recent drought impacting the western states. Challenges such as these will always be present. The regional water supply agencies, the Water Authority and MWD, along with Otay WD nevertheless fully intend to have sufficient, reliable supplies to serve demands. 2015 -05 -26 Agenda Packet Page 475 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial In Section ES -5 of MWD's 2010 Regional Urban Water Management Plan (20 10 RUWMP), MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2015 through 2035. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in- region storage that enables the region to meet its water supply needs. MWD's 2010 RUWMP identifies potential reserve supplies in the supply capability analysis (Tables 2 -9, 2 -10, and 2- 11), which could be available to meet the unanticipated demands such as those related to the Planning Area 12 Freeway Commercial Project. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority "as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs." As part of preparation of a written water supply assessment report, an agency's shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority's 2010 UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Emergency Response Plan, Emergency Storage Project, and Drought Management Plan (DMP) are taking actions to prepare for and appropriately handle an interruption of water supplies. The DMP, adopted in May 2006, provides the Water Authority and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. Otay Water District Water Supply Development Program In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway Commercial project proponents are required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay Water district Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents and are in response to the regional water supply issues. These new alternative water supply projects are not currently developed and are in various stages of the planning process. A few examples of these projects include the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled Water Supply Concept and the Rosarito Ocean Desalination Facility project. The Water Authority and MWD next forecast and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Findings F1 2015 -05 -26 Agenda Packet Page 476 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The WSA &V Report identifies and describes the processes by which water demand projections for the proposed Planning Area 12 Freeway Commercial project will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed project, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Planning Area 12 Freeway Commercial project WSA &V Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA &V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or agreements relevant to the identified water supply needs for the proposed Planning Area 12 Freeway Commercial project. The WSA &V Report demonstrates and documents that sufficient water supplies are planned for and are intended to be available over a 20 -year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the proposed Planning Area 12 Freeway Commercial project and the existing and other planned development projects to be served by the Otay WD. Accordingly, after approval of a WSA &V Report for the Planning Area 12 Freeway Commercial project by the Otay WD Board of Directors (Board), the WSA &V Report may be used to comply with the requirements of the legislation enacted by Senate Bills 610 and 221 as follows: Senate Bill 610 Water Supply Assessment: The Otay WD Board approved WSA &V Report may be incorporated into the California Environmental Quality Act (CEQA) Environmental Impact Report (EIR) compliance process for the Planning Area 12 Freeway Commercial project as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610. The City as lead agency under CEQA for the Planning Area 12 Freeway Commercial project EIR amendment may cite the approved WSA &V Report as evidence that a sufficient water supply is planned for and is intended to be made available to serve the Planning Area 12 Freeway Commercial project. 2. Senate Bill 221 Water Supply Verification: The Otay WD Board approved WSA &V Report may be incorporated into the City's Tentative Map approval process for the Planning Area 12 Freeway Commercial project as a water supply verification report, consistent with the requirements of the legislation enacted by SB 221. The City, within their process of approving the Planning Area 12 Freeway Commercial project's Tentative Map, may cite the approved WSA &V Report as verification of intended sufficient water supply to serve the Planning Area 12 Freeway Commercial project. 2015 -05 -26 Agenda Packet Page 477 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Section 1 - Purpose The Planning Area 12 project is located in the Otay Ranch Freeway Commercial core area. This report is being prepared for the FC -2 site only within Planning Area 12 as the FC -1 site has already been developed. The northern portion of Planning Area 12 is identified as FC -2 in the August 2004 approved SPA plan and allows for up to 347,000 square feet of commercial development on 34.5 acres. Baldwin and Sons submitted a SPA amendment to the City of Chula Vista (City) for the development of the Otay Ranch Planning Area 12 Freeway Commercial project. The City requested that Otay WD prepare a WSA &V Report for the Planning Area 12 Freeway Commercial project. A WSA &V Report was prepared for the project in May 2013, but the land use plan has since changed. The current Planning Area 12 Freeway Commercial project description is provided in Section 3 of this WSA &V Report. This WSA &V Report for the Planning Area 12 Freeway Commercial project has been prepared by the Otay WD in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the City pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate Bill (SB) 610 and Business and Professions Code Section 11010 and Government Code Sections 65867.5, 66455.3, and 66473.7 referred to as SB 221. SB 610 and SB 221 amended state law, effective January 1, 2002, intending to improve the link between information on water supply availability and certain land use decisions made by cities and counties. SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA) environmental documentation and approval process of certain proposed projects. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are to be available for certain residential subdivisions of property prior to approval of a tentative map. The requirements of SB 610 and SB 221 are being addressed by this WSA &V Report. The City also requested, since the requirements of SB 610 and SB 221 are substantially similar, that Otay WD prepare both the water supply assessment and verification concurrently. This WSA &V Report evaluates water supplies that are planned to be available during normal, single dry year, and multiple dry water years during a 20 -year planning horizon to meet existing demands, expected demands of the Planning Area 12 Freeway Commercial project, and reasonably foreseeable planned future water demands served by Otay WD. The Otay WD Board of Directors approved WSA &V Report is planned to be used by the City in its evaluation of the Planning Area 12 Freeway Commercial project under the CEQA and Tentative Map approval processes. 31 2015 -05 -26 Agenda Packet Page 478 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Section 2 - Findings The Otay WD prepared this WSA &V Report at the request of the City for the Otay Ranch Planning Area 12 Freeway Commercial project. Baldwin and Sons submitted a SPA amendment application to the City for the revised development plan of the Planning Area 12 Freeway Commercial project. The Planning Area 12 Freeway Commercial Project is located within the jurisdictions of the Otay WD, the Water Authority, and MWD Water District of Southern California (MWD). To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The expected potable water demands for the Planning Area 12 Freeway Commercial Project are 0.208 million gallons per day (mgd) or about 233 acre feet per year (AFY). This is 173 AFY higher than the demand estimate in the District's 2010 Water Resources Master Plan Update and District's 2010 UWMP and 46 AFY higher than the projections in the 2013 WSA &V Report. The projected recycled water demand for the proposed project is approximately 0.035 mgd or about 38.8 AFY, representing about 13% of total project water demand. The 173 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 UWMP. As documented in the Water Authority's 2010 UWMP, the Water Authority is planning to meet future and existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. In addition, the next update of the demand forecast for the Water Authority's 2015 UWMP will be based on SANDAG's most recently updated forecast, which will include the Project. Therefore, based on the findings from the Otay WD's 2010 UWMP and the Water Authority's 2010 UWMP, this project will result in no unanticipated demands. The Planning Area 12 Freeway Commercial Project development proponents are required to use recycled water for irrigation and other appropriate uses. The primary benefit of using recycled water is that it will offset the potable water demands by an estimated 38.8 AFY. The WRMP Update and the 2010 Urban Water Management Plan (UWMP) anticipated that the land area to be utilized for the Planning Area 12 Freeway Commercial Project would use both potable and recycled water. The Water Authority's 2010 UWMP provides for a comprehensive planning analysis at a regional level and includes water use associated with accelerated forecasted development as part of its municipal and industrial sector demand projections. These housing and commercial 7 2015 -05 -26 Agenda Packet Page 479 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial units were identified by the SANDAG in the course of its regional housing needs assessment, but are not yet included in existing general land use plans of local jurisdictions. The demand associated with accelerated forecasted residential development is intended to account for SANDAG's land -use development currently projected to occur between 2035 and 2050, but has the likely potential to occur on an accelerated schedule. SANDAG estimates that this accelerated forecasted residential and commercial development forecasted could occur within the planning horizon (2015 to 2035) of the Water Authority's 2010 UWMP. This land -use is not included in local jurisdictions' general plans, so their projected demands are incorporated at a regional level. When necessary, this additional demand increment, termed Accelerated Forecasted Growth, can be used by member agencies to meet the demands of development projects not identified in the general land use plans. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the SANDAG updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and /or verification reports for proposed land developments that are not within the Otay WD, Water Authority, nor MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations or revised land use plans typically result in creating higher demand and supply requirements than anticipated. The Otay WD, the Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. This process is utilized by the Water Authority and MWD to document the water supplies necessary to serve the demands of the proposed Planning Area 12 Freeway Commercial project, along with existing and other projected future users, as well as the actions necessary to develop these supplies. Through this process the necessary demand and supply information is thus assured to be identified and incorporated within the water supply planning documents of the Water Authority and MWD. The Otay Water District 2010 UWMP included a water conservation component to comply with Senate Bill 7 of the Seventh Extraordinary Session (SBX 7 -7), which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package, and seeks to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7 -7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. 2015 -05 -26 Agenda Packet Page 480 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Otay WD has adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State's Draft 20x2020 Water Conservation Plan. The Otay WD 2015 target is 171 gallons per capita per day (gpcd) and the 2020 gpcd target at 80 percent of baseline is 152 gpcd. The Otay WD's recent per capita water use has been declining to the point where current water use already meets the 2020 target for Method 1. This recent decline in per capita water use is largely due to drought water use restrictions, increased water costs, and economic conditions. However, Otay WD's effective water use awareness campaign and enhanced conservation mentality of its customers will likely result in some long -term carryover of these reduced consumption rates. In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway Commercial project proponents are required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay Water District Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to the Sacramento -San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. A few examples of these alternative water supply projects include the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled Water Supply Concept and the Rosarito Ocean Desalination Facility project. The Water Authority and MWD next forecast and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Water supplies necessary to serve the demands of the proposed Planning Area 12 Freeway Commercial project, along with existing and other reasonably foreseeable projected future users, as well as the actions necessary and status to develop these supplies, will be identified and included within the water supply planning documents of the Water Authority and MWD. This WSA &V Report demonstrates and verifies that with development of the resources currently identified and those that may be additional acquired, that there is sufficient water supplies being planned for and is intended to be developed over the next 20 -year planning horizon to meet the projected demand of the proposed Planning Area 12 Freeway Commercial project and the existing and other reasonably foreseeable planned development projects within the Otay WD. This WSA &V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, proposed water supply projects, or agreements relevant to the identified water supply needs for the proposed Planning Area 12 Freeway Commercial project. This WSA &V Report incorporates by reference the current 7 2015 -05 -26 Agenda Packet Page 481 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Urban Water Management Plans and other water resources planning documents of the Otay WD, the Water Authority, and MWD. The Otay WD prepared this WSA &V to verify and document that sufficient water supplies are being planned for and are intended to be acquired to meet projected water demands of the Planning Area 12 Freeway Commercial project and the existing and other reasonably foreseeable planned development projects within the Otay WD for a 20 -year planning horizon, in normal supply years, and in single dry and multiple dry years. Based on a normal water supply year, the five -year increments for a 20 -year projection indicate projected potable and recycled water supply is being planned for and is intended to be acquired to meet the estimated water demand targets of the Otay WD (44,883 acre -feet (AF) in 2015 to 56,614 AF in 2035 per the Otay Water District 2010 UWMP). Based on dry year forecasts, the estimated water supply is also being planned for and is intended to be acquired to meet the projected water demand, during single dry and multiple dry year scenarios. On average, the dry -year demands are about 6.4 percent higher than the normal year demands. The Otay WD recycled water supply is assumed to be drought -proof and not subject to reduction during dry periods. Together, these findings demonstrate and verify that sufficient water supplies are being planned for and are intended to be acquired, as well as the actions necessary and status to develop these supplies are and will be further documented, to serve the proposed Planning Area 12 Freeway Commercial project and the existing and other reasonably foreseeable planned projects within the Otay WD in both normal and single and multiple dry year forecasts for a 20 -year planning horizon. Section 3 - Project Description The Otay Ranch Planning Area 12 Freeway Commercial project is located within the City of Chula Vista, California. Refer to Appendix A for a regional location map of the proposed project. The Planning Area 12 Freeway Commercial project is included within a land use planning document known as the Otay Ranch General Development Plan/Sub- regional Plan (Otay Ranch GDP). The County of San Diego and City of Chula Vista jointly prepared and adopted the Otay Ranch GDP. The project is a part of the designated 14 villages and five planning areas within the Otay Ranch GDP area. The Otay Ranch Freeway Commercial Project current development plan approval is dependent on the City's eventual adoption of their Sectional Planning Area Plan (SPA) amendment. The Chula Vista City Council and the San Diego County Board of Supervisors adopted the Otay Ranch GDP on October 28, 1993, which was accompanied by a Program Environmental Impact Report EIR -90 -01 (SCH 989010154). 10 2015 -05 -26 Agenda Packet Page 482 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The approximately 23,000 acre Otay Ranch is a master - planned community that includes a broad range of residential, commercial, retail, and industrial development interwoven with civic and community uses, such as libraries, parks, and schools, together with an open space preserve system consisting of approximately 11,375 acres. The Baldwin and Sons proposed development concept for the approximately 34.5 acre Planning Area 12 Freeway Commercial project is planned as a combination of land uses as shown in Table 1. Table 1 Otay Ranch PA 12 Freeway Commercial FC -2 Proposed Land Uses Location Land Use Description Area Dwelling Units PA 12 Freeway Commercial Multi - Family Residential - -- 650 units PA 12 Freeway Commercial Hotel - -- 310 rooms PA 12 Freeway Commercial Commercial 4.0 acres - -- PA 12 Freeway Commercial Park 2.0 acres - -- The proposed development within Planning Area 12 Freeway Commercial consists of 650 multi - family residential units, 310 hotel rooms, commercial, and a park. The project is located along the southerly edge of Olympic Parkway on both sides of Town Center Drive. Refer to Appendix B for the proposed development plan of the Planning Area 12 Freeway Commercial project. The City has identified discretionary actions and /or permit approval requirements for the Planning Area 12 Freeway Commercial project. The projected potable and recycled water demands and resulting water supply requirements associated with the Planning Area 12 Freeway Commercial project have considered the discretionary actions and /or permit approvals and are incorporated into and used in this WSA &V Report. The water demands for the proposed Planning Area 12 Freeway Commercial project are provided in Section 5 — Historical and Projected Water Demands. Section 4 — Otay Water District The Otay WD is a municipal water district formed in 1956 pursuant to the Municipal Water District Act of 1911 (Water Code §§ 71000 et seq.). The Otay WD joined the Water Authority as a member agency in 1956 to acquire the right to purchase and distribute imported water throughout its service area. The Water Authority is an agency responsible for the wholesale supply of water to its 24 public agency members in San Diego County. 11 2015 -05 -26 Agenda Packet Page 483 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The Otay WD currently relies on the Water Authority for 100 percent of its treated potable water supply. The Water Authority is the agency responsible for the supply of imported water into San Diego County through its membership in MWD. The Water Authority currently obtains the vast majority of its imported supply from MWD, but is in the process of diversifying its available supplies. The Otay WD provides water service to residential, commercial, industrial, and agricultural customers, and for environmental and fire protection uses. In addition to providing water throughout its service area, Otay WD also provides sewage collection and treatment services to a portion of its service area known as the Jamacha Basin. The Otay WD also owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) which has an effective treatment capacity of 1.2 mgd or about 1,300 AFY to produce recycled water. On May 18, 2007 an additional source of recycled water supply, at least 6 mgd or about 6,720 AFY, became available to Otay WD from the City of San Diego's South Bay Water Reclamation Plant (SBWRP). The Otay WD jurisdictional area is generally located within the south central portion of San Diego County and includes approximately 125 square miles. The Otay WD serves portions of the unincorporated communities of southern El Cajon, La Mesa, Rancho San Diego, Jamul, Spring Valley, Bonita, and Otay Mesa, the eastern portion of the City of Chula Vista and a portion of the City of San Diego on Otay Mesa. The Otay WD jurisdiction boundaries are roughly bounded on the north by the Padre Dam Municipal Water District, on the northwest by the Helix Water District, and on the west by the South Bay Irrigation District (Sweetwater Authority) and the City of San Diego. The southern boundary of Otay WD is the international border with Mexico. The planning area addressed in the Otay WD 2010 WRMP Update and the Otay WD 2010 UWMP includes the land within the jurisdictional boundary of the Otay WD and those areas outside of the present Otay WD boundaries considered to be in the Area of Influence of the Otay WD. Figure 2 -1 contained within the Otay WD 2010 WRMP Update shows the jurisdictional boundary of the Otay WD and the Area of Influence. The planning area is approximately 143 square miles, of which approximately 125 square miles are within the Otay WD current boundaries and approximately 18 square miles are in the Area of Influence. The area east of Otay WD is rural and currently not within any water purveyor jurisdiction and potentially could be served by the Otay WD in the future if the need for imported water becomes necessary, as is the case for the Area of Influence. The City of Chula Vista, the City of San Diego, and the County of San Diego are the three land use planning agencies within the Otay WD jurisdiction. Data on forecasts for land use planning, demographics, economic projections, population, and the future rate of growth within Otay WD were obtained from the SANDAG. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information through the year 2050. Population growth within the Otay WD service area is expected to increase from the 2010 figure of approximately 198,616 to an estimated 284,997 by 2035. Land use 12 2015 -05 -26 Agenda Packet Page 484 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial information used to develop water demand projections are based upon Specific or Sectional Planning Areas, the Otay Ranch General Development Plan /Sub - regional Plan, East Otay Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego Otay Mesa Community Plan, City of Chula Vista, and County of San Diego General Plans. The Otay WD long -term historic growth rate has been approximately 4 percent. The growth rate has significantly slowed due to the current economic conditions and it is expected to slow as the inventory of developable land is diminished. Climatic conditions within the Otay WD service area are characteristically Mediterranean near the coast, with mild temperatures year round. Inland areas are both hotter in summer and cooler in winter, with summer temperatures often exceeding 90 degrees and winter temperatures occasionally dipping to below freezing. Most of the region's rainfall occurs during the months of December through March. Average annual rainfall is approximately 12.17 inches per year. Historic climate data were obtained from the Western Regional Climate Center for Station 042706 (El Cajon). This station was selected because its annual temperature variation is representative of most of the Otay WD service area. While there is a station in the City of Chula Vista, the temperature variation at the City of Chula Vista station is more typical of a coastal environment than the conditions in most of the Otay WD service area. 4.1 Urban Water Management Plan In accordance with the California Urban Water Management Planning Act and recent legislation, the Otay WD Board of Directors adopted an UWMP in June 2011 and subsequently submitted the plan to the California Department of Water Resources (DWR). The Otay WD 2010 UWMP is currently being reviewed by DWR. As required by law, the Otay WD 2010 UWMP includes projected water supplies required to meet future demands through 2035. In accordance with Water Code Section 10910 (c)(2) and Government Code Section 66473.7 (c)(3), information from the Otay Water District 2010 UWMP along with supplemental information from the Otay WD WRMP Update have been utilized to prepare this WSA &V Report and are incorporated herein by reference. The state Legislature passed Senate Bill 7 as part of the Seventh Extraordinary Session (SBX 7 -7) on November 10, 2009, which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package and seeks to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7 -7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. The SBX 7 -7 target setting process includes the following: (1) baseline daily per capita water use; (2) urban water use target; (3) interim water use target; (4) compliance daily per capita 13 2015 -05 -26 Agenda Packet Page 485 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial water use, including technical bases and supporting data for those determinations. In order for an agency to meet its 2020 water use target, each agency can increase its use of recycled water to offset potable water use and also step up its water conservation measures. The required water use targets for 2020 and an interim target for 2015 are determined using one of four target methods — each method has numerous methodologies. The 2020 urban water use target may be updated in a supplier's 2015 UWMP. In 2015, urban retail water suppliers will be required to report interim compliance followed by actual compliance in 2020. Interim compliance is halfway between the baseline water use and 2020 target. Baseline, target, and compliance -year water use estimates are required to be reported in gallons per capita per day (gpcd). Failure to meet adopted targets will result in the ineligibility of a water supplier to receive grants or loans administered by the State unless one (1) of two (2) exceptions is met. Exception one (1) states a water supplier may be eligible if they have submitted a schedule, financing plan, and budget to DWR for approval to achieve the per capita water use reductions. Exception two (2) states a water supplier may be eligible if an entire water service area qualifies as a disadvantaged community. Otay WD has adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State's Draft 20x2020 Water Conservation Plan. The Otay WD 2015 target is 171 gpcd and the 2020 gpcd target at 80 percent of baseline is 152 gpcd. The Otay WD's recent per capita water use has been declining to the point where current water use already meets the 2020 target for Method 1. This recent decline in per capita water use is largely due to drought water use restrictions, increased water costs, and poor economic conditions. However, Otay WD's effective water use awareness campaign and enhanced conservation mentality of its customers will likely result in some long -term carryover of these reduced consumption rates beyond the current drought period. Section 5 — Historical and Projected Water Demands The projected demands for Otay WD are based on Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub- regional Plan, the East Otay Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego Otay Mesa Community Plan, City of Chula Vista and County of San Diego General Plans. This land use information is also used by SANDAG as the basis for its most recent forecast data. This land use information is utilized in the preparation of the Otay WD 2010 WRMP, and Otay WD 2010 UWMP to develop the forecasted demands and supply requirements. 14 2015 -05 -26 Agenda Packet Page 486 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial In 1994, the Water Authority selected the Institute for Water Resources - Municipal and Industrial Needs (MAIN) computer model to forecast municipal and industrial water use for the San Diego region. The MAIN model uses demographic and economic data to project sector -level water demands (i.e. residential and non - residential demands). This econometric model has over a quarter of a century of practical application and is used by many cities and water agencies throughout the United States. The Water Authority's version of the MAIN model was modified to reflect the San Diego region's unique parameters and is known as CWA -MAIN. The foundation of the water demand forecast is the underlying demographic and economic projections. This was a primary reason, why, in 1992 the Water Authority and SANDAG entered into a Memorandum of Agreement (MOA), in which the Water Authority agreed to use the SANDAG current regional growth forecast for water supply planning purposes. In addition, the MOA recognizes that water supply reliability must be a component of San Diego County's regional growth management strategy required by Proposition C, as passed by the San Diego County voters in 1988. The MOA ensures a strong linkage between local general plan land use forecasts and water demand projections and resulting supply needs for the San Diego region. Consistent with the previous CWA -MAIN modeling efforts, on February 26, 2010, the SANDAG Board of Directors accepted the Series 12: 2050 Regional Growth Forecast. The 2050 Regional Growth Forecast will be used by SANDAG as the foundation for the next Regional Comprehensive Plan update. SANDAG forecasts also are used by local governments for planning, including the Water Authority's 2010 UWMP update. The municipal and industrial forecast also included an updated accounting of projected conservation savings based on projected regional implementation of the California Urban Water Conservation Council (CUWCC) Best Management Practices and SANDAG demographic information for the period 2010 through 2035. These savings estimates were then factored into the baseline municipal and industrial demand forecast. A separate agricultural model, also used in prior modeling efforts, was used to forecast agricultural water demands within the Water Authority service area. This model estimates agricultural demand to be met by the Water Authority's member agencies based on agricultural acreage projections provided by SANDAG, crop distribution data derived from the Department of Water Resources and the California Avocado Commission, and average crop -type watering requirements based on California Irrigation Management Information System data. The Water Authority and MWD update their water demand and supply projections within their jurisdictions utilizing the SANDAG most recent growth forecast to project future water demands. This provides for the important strong link between demand and supply projections to the land use plans of the cities and the county. This provides for consistency between the retail and wholesale agencies water demand projections, thereby ensuring that adequate 15 2015 -05 -26 Agenda Packet Page 487 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial supplies are and will be planned for the Otay WD existing and future water users. Existing land use plans, any revisions to land use plans, and annexations are captured in the SANDAG updated forecasts. The Water Authority and MWD will update their demand forecasts based on the SANDAG most recent forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and /or verification reports consistent with Senate Bills 610 and 221 for proposed land use developments that either have pending or proposed annexations into the Otay WD, Water Authority, and MWD or that have revised land use plans than originally anticipated. The Water Authority and MWD next forecast and supply planning documents would then capture any increase or decrease in demands caused by annexations or revised land use plans. In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway Commercial project proponents are required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento -San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. A few examples of these alternative water supply projects include the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled Water Supply Concept and the Rosarito Ocean Desalination Facility project. The Water Authority and MWD next forecast and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. In addition, MWD's 2010 Regional Urban Water Management Plan identified potential reserve supplies in the supply capability analysis (Tables 2 -9, 2 -10, and 2 -11), which could be available to meet any unanticipated demands. The Water Authority and MWD's next forecast and supply planning documents would capture any increase in necessary supply resources resulting from any new water supply resources. The Otay WD water demand projection methodology utilizes a component land use approach. This is done by applying representative values of water use to the acreage of each land use type and then aggregating these individual land use demand projections into an overall total demand for the Otay WD. This is called the water duty method, and the water duty is the amount of water used in acre - feet per acre per year. This approach is used for all the land use types except residential development where a demand per dwelling unit was applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are established. 16 2015 -05 -26 Agenda Packet Page 488 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial To determine water duties for the various types of land use, the entire water meter database of the Otay WD is utilized and sorted by the appropriate land use types. The metered consumption records are then examined for each of the land uses, and water duties are determined for the various types of residential, commercial, industrial, and institutional land uses. For example the water duty factors for commercial and industrial land uses are estimated using 1,785 and 893 gallons per day per acre, respectively. Residential water demand is established based on the same data but computed on a per - dwelling unit basis. The focus is to ensure that for each of the residential land use categories (very low, low, medium, and high densities), the demand criteria used is adequately represented based upon actual data. This method is used because residential land uses constitute a substantial percentage of the total developable planning area of the Otay WD. The WRMP Update calculates potable water demand by taking the gross acreage of a site and applying a potable water reduction factor (PWRF), which is intended to represent the percentage of acreage to be served by potable water and that not served by recycled water for irrigation. For industrial land use, as an example, the PWRF is 0.95 (i.e., 95% of the site is assumed to be served by potable water, 5% of the site is assumed to be irrigated with recycled water). The potable net acreage is then multiplied by the unit demand factor corresponding to its respective land use. This approach is used in the WRMP Update for all the land use types except residential development where a demand per dwelling unit is applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are allocated. By applying the established water duties to the proposed land uses, the projected water demand for the entire Otay WD planning area at ultimate development is determined. Projected water demands for the intervening years were determined using growth rate projections consistent with data obtained from SANDAG and the experience of the Otay WD. The historical and projected potable water demands for Otay WD are shown in Table 2. 17 2015 -05 -26 Agenda Packet Page 489 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Table 2 Historical and Projected Potable Water Fiscal Year Demands (AF) Water Use Sectors 2005 2010 2015 2020 2025 2030 2035 Single Family 21,233 17,165 23,633 28,312 33,600 37,211 40,635 Multi-Family 3,095 3,605 3,444 4,126 4,897 5,423 5,922 Commercial & 1,657 2,243 1,844 2,209 2,622 2,904 3,171 Institutional & 2,262 1,867 2,518 3,017 3,580 3,965 4,330 Landscape 6,458 3,732 10,134 12,141 14,408 15,957 17,425 AFG* 743 743 743 743 743 Other 2,426 584 2,700 3,235 3,839 4,252 4,643 Unaccounted for 547 23 608 729 865 958 1,046 Totals 37,668 29,219 45,626 54,511 64,554 71,412 77,914 * Accelerated Forecasted Growth Increment Source: Otay Water District 2010 UWMP. The historical and projected recycled water demands for Otay WD are shown in Table 3. Table 3 Historical and Projected Recycled Water Fiscal Year Demands (AF) Water Use Sector 2005 2010 2015 2020 2025 2030 2035 Landscape 4,090 4,000 4.400 5.000 5.800 6,800 8,000 Totals 4,090 4,000 4,400 5,000 5,800 6,800 8,000 Source: Otay Water District 2010 UWMP, Table 10. Using the land use demand projection criteria as established in the WRMP Update, the current projected potable water demand for the proposed Planning Area 12 Freeway Commercial project, which now proposes 650 multi - family residential units, 310 hotel rooms, commercial, and park land uses, is shown in Table 4and totals approximately 0.208 mgd or about 233 AFY. The existing land use plan for the project that was used in the WRMP Update included 34.5 acres of commercial development and resulted in a projected water use of 60 AFY. Thus, projected water demands for the property would be increased by 173 AFY as a result of the proposed land use change. This is 46 AFY more than was projected in the May 2013 WSA &V Report. IN 2015 -05 -26 Agenda Packet Page 490 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Table 4 Planning Area 12 Freeway Commercial Projected Potable Water Annual Average Demands The current projected recycled water demand for the proposed Planning Area 12 Freeway Commercial project is provided in Table 5, which totals approximately 0.035 mgd or about 38.8 AFY, representing about 16% of total Planning Area 12 Freeway Commercial project demand. Table 5 Planning Area 12 Freeway Commercial Projected Recycled Water Average Demands Location (Land Use) Quantity Potable Net Potable Unit Rate Average Location (Land Use) Quantity Water Acreage/Units Unit Rate Demand Multi - Family Residential 650 units Factor 45 gpd/unit 29,250 Multi - Family Residential 650 units 85% 0.4 255 gpd/unit 165,750 Commercial 4.0 ac 90% 3.6 1,785 gpd/ac 6,428 Hotel 310 rooms 115 gpd/room 35,650 Park 2.0 ac 0 0 2,155 gpd/ac 0 207,828 gpd Total (0.208 mgd) The current projected recycled water demand for the proposed Planning Area 12 Freeway Commercial project is provided in Table 5, which totals approximately 0.035 mgd or about 38.8 AFY, representing about 16% of total Planning Area 12 Freeway Commercial project demand. Table 5 Planning Area 12 Freeway Commercial Projected Recycled Water Average Demands Location (Land Use) Quantity Recycled Water Net Recycled Unit Rate Average Factor Acreage Demand Multi - Family Residential 650 units 15% 45 gpd/unit 29,250 Commercial 4.0 ac 10% 0.4 2,155 gpd/ac 1,078 Park 2.0 100% 2.0 2,155 gpd/ac 4,310 34,638 gpd Total (0.035 mgd) 5.1 Demand Management (Water Conservation) Demand management, or water conservation is a critical part of the Otay WD 2010 UWMP and its long term strategy for meeting water supply needs of the Otay WD customers. Water 19 2015 -05 -26 Agenda Packet Page 491 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial conservation, is frequently the lowest cost resource available to any water agency. The goals of the Otay WD water conservation programs are to: Reduce the demand for more expensive, imported water. Demonstrate continued commitment to the Best Management Practices (BMP). Ensure a reliable water supply. The Otay WD is signatory to the Memorandum of Understanding (MOU) Regarding Urban Water Conservation in California, which created the California Urban Water Conservation Council (CUWCC) in 1991 in an effort to reduce California's long -term water demands. Water conservation programs are developed and implemented on the premise that water conservation increases the water supply by reducing the demand on available supply, which is vital to the optimal utilization of a region's water supply resources. The Otay WD participates in many water conservation programs designed and typically operated on a shared cost participation program basis among the Water Authority, MWD, and their member agencies. The demands shown in Tables 2 and 3 take into account implementation of water conservation measures within Otay WD. As one of the first signatories to the MOU Regarding Urban Water Conservation in California, the Otay WD has made BMP implementation for water conservation the cornerstone of its conservation programs and a key element in its water resource management strategy. As a member of the Water Authority, Otay WD also benefits from regional programs performed on behalf of its member agencies. The BMP programs implemented by Otay WD and regional BMP programs implemented by the Water Authority that benefit all their member agencies are addressed in the Otay WD 2010 UWMP. In partnership with the Water Authority, the County of San Diego, City of San Diego, City of Chula Vista, and developers, the Otay WD water conservation efforts are expected to grow and expand. The resulting savings directly relate to additional available water in the San Diego County region for beneficial use within the Water Authority service area, including the Otay WD. Additional conservation or water use efficiency measures or programs practiced by the Otay WD include the following: • Supervisory Control and Data Acquisition System The Otay WD implemented and has operated for many years a Supervisor Control and Data Acquisition ( SCADA) system to control, monitor, and collect data regarding the operation of the water system. The major facilities that have SCADA capabilities are the water flow control supply sources, transmission network, pumping stations, and water storage reservoirs. The SCADA system allows for many and varied useful functions. Some of these functions provide for operating personnel to monitor the water supply source flow rates, reservoir levels, turn on or off pumping units, etc. The SCADA system aids in the prevention of water reservoir overflow events and increases energy efficiency. 20 2015 -05 -26 Agenda Packet Page 492 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial • Water Conservation Ordinance California Water Code Sections 375 et seq. permit public entities which supply water at retail to adopt and enforce a water conservation program to reduce the quantity of water used by the people therein for the purpose of conserving water supplies of such public entity. The Otay WD Board of Directors established a comprehensive water conservation program pursuant to California Water Code Sections 375 et seq., based upon the need to conserve water supplies and to avoid or minimize the effects of any future shortage. A water shortage could exist based upon the occurrence of one or more of the following conditions: 1. A general water supply shortage due to increased demand or limited supplies. 2. Distribution or storage facilities of the Water Authority or other agencies become inadequate. 3. A major failure of the supply, storage, and distribution facilities of MWD, Water Authority, and /or Otay WD. The Otay WD water conservation ordinance finds and determines that the conditions prevailing in the San Diego County area require that the available water resources be put to maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use, or unreasonable method of use, of water be prevented and that the conservation of such water be encouraged with a view to the maximum reasonable and beneficial use thereof in the interests of the people of the Otay WD and for the public welfare. Otay WD is currently engaged in a number of conservation and water use efficiency activities. Listed below are the current programs that are either on -going or were recently concluded: • Residential Water Surveys: 1,349 completed since 1994 • Large Landscape Surveys: 194 completed since 1990 • Cash for Water Smart Plants Landscape Retrofit Program: over 217,600 square feet of turf grass replaced with water wise plants since 2003 • Rotating Nozzles Rebated: 3,170 • Residential Weather -Based Irrigation Controller (WBIC) Incentive Program: 231 distributed or rebated since 2004 • Residential High Efficiency Clothes Washers: 7,187 rebates since 1994 • Residential ULFT /HET Rebate Program: 22,376 rebates provided between 1991 -2010 • Outreach Efforts to Otay WD Customers - the Otay WD promotes its conservation programs through staffing outreach events, bill inserts, articles in the Otay WD's quarterly customer Pipeline newsletter, direct mailings to Otay WD customers, the Otay WD's webpage and through the Water Authority's marketing efforts. • School Education Programs - the Otay WD funds school tours of the Water Conservation Garden, co -funds Splash Labs, provides classroom water themed kits, 21 2015 -05 -26 Agenda Packet Page 493 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial maintains a library of school age appropriate water themed books, DVDs, and videos, and runs both a school poster contest and a water themed photo contest. Water efficiency in new construction through Cal Green and the Model Water Efficient Landscape Ordinance Focus on Commercial /Institutional /Industrial through Promoting MWD's Save a Buck (Commercial) Program in conjunction with the Otay WD's own Commercial Process Improvement Program As a signatory to the MOU Regarding Urban Water Conservation in California, the Otay WD is required to submit biannual reports that detail the implementation of current water conservation practices. The Otay WD voluntarily agreed to implement the fourteen water conservation BMP's beginning in 1992. The Otay WD submits its report to the CUWCC every two years. The Otay WD BMP Reports for 2005 to 2010, as well as the BMP Coverage Report for 1999 -2010, are included in the Otay WD 2010 UWMP. The Planning Area 12 Freeway Commercial project will implement the CUWCC Best Management Practices for water conservation such as installation of ultra low flow toilets, development of a water conservation plan, and potential beneficial use of recycled water, all of which are typical requirements of development projects within the City of Chula Vista. Section 6 - Existing and Projected Supplies The Otay WD currently does not have an independent raw or potable water supply source. The Otay WD is a member public agency of the Water Authority. The Water Authority is a member public agency of MWD. The statutory relationships between the Water Authority and its member agencies, and MWD and its member agencies, respectively, establish the scope of the Otay WD entitlement to water from these two agencies. The Water Authority currently supplies Otay WD with 100 percent of its potable water, through two delivery pipelines, referred to as Pipeline No. 4 and the Helix Flume. The Water Authority in turn, currently purchases the majority of its water from MWD. Due to the Otay WD reliance on these two agencies, this WSA &V Report includes referenced documents that contain information on the existing and projected supplies, supply programs, and related projects of the Water Authority and MWD. The Otay WD, Water Authority, and MWD are actively pursuing programs and projects to diversify their water supply resources. The description of local recycled water supplies available to the Otay WD is also discussed below. 22 2015 -05 -26 Agenda Packet Page 494 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial 6.1 Metropolitan Water District of Southern California 2005 Regional Urban Water Management Plan In November 2010, MWD adopted its 2010 Regional Urban Water Management Plan ( RUWMP). The 2010 RUWMP provides MWD's member agencies, retail water utilities, cities, and counties within its service area with, among other things, a detailed evaluation of the supplies necessary to meet future demands, and an evaluation of reasonable and practical efficient water uses, recycling, and conservation activities. During the preparation of the 2010 RUWMP, MWD also utilized the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority service area. 6.1.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies MWD is a wholesale supplier of water to its member public agencies and obtains its supplies from two primary sources: the Colorado River, via the Colorado River Aqueduct (CRA), which it owns and operates, and Northern California, via the State Water Project (SWP). The 2010 RUWMP documents the availability of these existing supplies and additional supplies necessary to meet future demands. 6.1.1.1 MWD Supplies MWD's Integrated Resources Plan (IRP) identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full - service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2010 update to the IRP (20 10 IRP Update) includes a planning buffer supply intended to mitigate against the risks associated with implementation of local and imported supply programs. The planning buffer identifies an additional increment of water that could potentially be developed if other supplies are not implemented as planned. As part of implementation of the planning buffer, MWD periodically evaluates supply development to ensure that the region is not under or over - developing supplies. Managed properly, the planning buffer will help ensure that the southern California region, including San Diego County, will have adequate supplies to meet future demands. In November 2010, MWD adopted its 2010 RUWMP in accordance with state law. The resource targets included in the preceding 2010 IRP Update serve as the foundation for the planning assumptions used in the 2010 RUWMP. MWD's 2010 RUWMP contains a water supply reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 25 -year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority's service area. 23 2015 -05 -26 Agenda Packet Page 495 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial As stated in MWD's 2010 RUWMP, that plan may be used as a source document for meeting the requirements of SB 610 and SB 221 until the next scheduled update is completed in 2015. The 2005 RUWMP includes a "Justifications for Supply Projections" in Appendix A.3, that provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. A copy of MWD's 2010 RUWMP can be found on the World Wide Web at the following site address: htlp: / /www.mwdh2o.com /mwdh2o /pies /yourwater /RUWMP /RUWMP 2010.pdf Water supply agencies throughout California continue to face climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento -San Joaquin Delta and the current western states drought conditions. Challenges such as these essentially always will be present. The regional water supply agencies, the Water Authority and MWD, along with Otay WD nevertheless fully intend to have sufficient, reliable supplies to serve demands. 6.1.2 Metropolitan Capital Investment Plan As part of MWD's annual budget approval process, a Capital Investment Plan is prepared. The cost, purpose, justification, status, progress, etc. of MWD's infrastructure projects to deliver existing and future supplies are documented in the Capital Investment Plan. The financing of these projects is addressed as part of the annual budget approval process. MWD's Capital Investment Plan includes a series of projects identified from MWD studies of projected water needs, which, when considered along with operational demands on aging facilities and new water quality regulations, identify the capital projects needed to maintain infrastructure reliability and water quality standards, improve efficiency, and provide future cost savings. All projects within the Capital Investment Plan are evaluated against an objective set of criteria to ensure they are aligned with the MWD's goals of supply reliability and quality. 6.2 San Diego County Water Authority Regional Water Supplies The Water Authority has adopted plans and is taking specific actions to develop adequate water supplies to help meet existing and future water demands within the San Diego region. This section contains details on the supplies being developed by the Water Authority. A summary of recent actions pertaining to development of these supplies includes: In accordance with the Urban Water Management Planning Act, the Water Authority adopted their 2010 UWMP in June 2011. The updated Water Authority 2010 UWMP identifies a diverse mix of local and imported water supplies to meet future demands. A copy of the updated Water Authority 2010 UWMP can be found on the internet at http: / /www.sdcwa.org /2010- urban- water - management -plan 24 2015 -05 -26 Agenda Packet Page 496 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Deliveries of conserved agricultural water from the Imperial Irrigation District (IID) to San Diego County have increased annually since 2003, with 70,000 ac -ft of deliveries in Fiscal Year (FY) 2010. These quantities will increase annually to 200,000 ac -ft/yr by 2021, and then remain fixed for the duration of the transfer agreement. • As part of the October 2003 Quantification Settlement Agreement (QSA), the Water Authority was assigned MWD's rights to 77,700 ac -ft/yr of conserved water from the All- American Canal (AAC) and Coachella Canal (CC) lining projects. Deliveries of this conserved water from the CC reached the region in 2007 and deliveries from the AAC reached the region in 2010. Expected supplies from the canal lining projects are considered verifiable Water Authority supplies. Through implementation of the Water Authority and member agency planned supply projects, along with reliable imported water supplies from MWD, the region anticipates having adequate supplies to meet existing and future water demands. To ensure sufficient supplies to meet projected growth in the San Diego region, the Water Authority uses the SANDAG most recent regional growth forecast in calculating regional water demands. The SANDAG regional growth forecast is based on the plans and policies of the land -use jurisdictions with San Diego County. The existing and future demands of the member agencies are included in the Water Authority's projections. 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The Water Authority currently obtains imported supplies from MWD, conserved water from the AAC and CC lining projects, and an increasing amount of conserved agricultural water from IID. Of the twenty -seven member agencies that purchase water supplies from MWD, the Water Authority is MWD's largest customer. Section 135 of MWD's Act defines the preferential right to water for each of its member agencies. As calculated by MWD, the Water Authority's preferential right as of December 11, 2012 is 17.22 percent of MWD's supply, while the Water Authority accounted for approximately 25 percent of MWD's total revenue. Under preferential rights, MWD could allocate water without regard to historic water purchases or dependence on MWD. The Water Authority and its member agencies are taking measures to reduce dependence on MWD through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation. MWD has stated, consistent with Section 4202 of its Administrative Code that it is prepared to provide the Water Authority's service area with adequate supplies of water to meet expanding and increasing needs in the years ahead. When and as additional water resources are required to meet increasing needs, MWD stated it will be prepared to deliver such supplies. In Section ES -5 of their 2010 RUWMP, MWD M 2015 -05 -26 Agenda Packet Page 497 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial states that MWD has supply capacities that would be sufficient to meet expected demands from 2015 through 2035. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in- region storage that enables the region to meet its water supply needs. The Water Authority has made large investments in MWD's facilities and will continue to include imported supplies from MWD in the future resource mix. As discussed in the Water Authority's 2010 UWMP, the Water Authority and its member agencies are planning to diversify the San Diego regions supply portfolio and reduce purchases from MWD. As part of the Water Authority's diversification efforts, the Water Authority is now taking delivery of conserved agricultural water from IID and water saved from the AAC and CC lining projects. The CC lining project is complete and the Water Authority has essentially completed construction of the AAC lining project. Table 6 summarizes the Water Authority's supply sources with detailed information included in the sections to follow. Deliveries from MWD are also included in Table 6, which is further discussed in Section 6.1 above. The Water Authority's member agencies provided the verifiable local supply targets for groundwater, groundwater recovery, recycled water, and surface water, which are discussed in more detail in Section 5 of the Water Authority's 2010 UWMP. Table 6 Projected Verifiable Water Supplies - Water Authority Service Area Normal Year (AF) Water Supply Sources 2015 2020 2030 2035 Water Authority Supplies (2) MWD Supplies 358,189 230,601 259,694 293,239 323,838 Water Authority /IID Transfer 100,000 190,000 200,000 200,000 200,000 AAC and CC Lining Projects 80,200 80,200 80,200 80,200 80,200 Proposed Regional Seawater Desalination (1) 0 56,000 56,000 56,000 56,000 Member Agency Supplies Surface Water 48,206 47,940 47,878 47,542 47,289 Water Recycling 38,660 43,728 46,603 48,278 49,998 Groundwater 11,710 11,100 12,100 12,840 12,840 Groundwater Recovery 10,320 15,520 15,520 15,520 15,520 Total Projected Supplies 647,285 675,089 717,995 753,619 785,685 Source: Water Authority 2010 Urban Water Management Plan - Table 9 -1. Note 1: On November 29, 2012, the Water Authority approved a water purchase agreement with Poseidon for 48,000 AFY with the right to purchase up to 56,000 AFY Note 2: The Water Authority's 2010 WWMP includes water use associated with accelerated forecasted development including the Planning Area 12 Freeway Commercial and the 173 AFY additional demand. 26 2015 -05 -26 Agenda Packet Page 498 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Section 5 of the Water Authority's 2010 UWMP also includes a discussion on the local supply target for seawater desalination. Seawater desalination supplies represent a significant future local resource in the Water Authority's service area. The Carlsbad Desalination Project (Project) is a fully - permitted seawater desalination plant and conveyance pipeline designed to provide a highly reliable local supply of up to 56,000 AF per year for the region. In 2020, the Project would account for approximately 8% of the total projected regional supply and 30% of all locally generated water in San Diego County. If the project becomes operational in 2016, it will more than double the amount of local supplies developed in the region since 1991. The desalination plant itself will be fully financed, built, and operated by Poseidon. The Water Authority will purchase water from the plant under a water purchase agreement. The new pipeline connecting the desalination plant with the Water Authority's Second Aqueduct will be owned and operated by the Water Authority, but responsibility for design and construction will reside with Poseidon through a separate Design -Build Agreement. The Water Authority will be responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority's system for optimal distribution to member agencies. On July 22, 2010, the Board approved a Term Sheet between the Water Authority and Poseidon Resources that outlined the key terms and conditions that would be detailed and incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October 2011 and under the direction of the Board's Carlsbad Desalination Project Advisory Group, staff began developing and negotiating with Poseidon a WPA consistent with the July 22, 2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific conditions precedent to Board consideration of the WPA. On November 29, 2012, the Water Authority Board adopted a resolution approving the Water Purchase Agreement (WPA). The Water Authority's existing and planned supplies from the IID transfer and canal lining projects are considered "drought- proof' supplies and should be available at the yields shown in Table 6 in normal water year supply and demand assessment. Single dry year and multiple dry year scenarios are discussed in more detail in Section 9 of the Water Authority's 2010 UWMP. As part of preparation of a written water supply assessment and /or verification report, an agency's shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority's 2010 UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Emergency Response Plan, Emergency Storage Project, and Drought Management Plan (DMP) are taking actions to prepare for and appropriately handle an interruption of water supplies. The DMP, adopted in May 2006, provides the Water Authority 27 2015 -05 -26 Agenda Packet Page 499 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies throughout the San Diego region. 6.2.1.1 Water Authority- Imperial Irrigation District Water Conservation and Transfer Agreement The QSA was signed in October 2003, and resolves long- standing disputes regarding priority and use of Colorado River water and creates a baseline for implementing water transfers. With approval of the QSA, the Water Authority and IID were able to implement their Water Conservation and Transfer Agreement. This agreement not only provides reliability for the San Diego region, but also assists California in reducing its use of Colorado River water to its legal allocation. On April 29, 1998, the Water Authority signed a historic agreement with IID for the long -term transfer of conserved Colorado River water to San Diego County. The Water Authority -IID Water Conservation and Transfer Agreement (Transfer Agreement) is the largest agriculture -to- urban water transfer in United States history. Colorado River water will be conserved by Imperial Valley farmers who voluntarily participate in the program and then transferred to the Water Authority for use in San Diego County. Implementation Status On October 10, 2003, the Water Authority and IID executed an amendment to the original 1998 Transfer Agreement. This amendment modified certain aspects of the 1998 Agreement to be consistent with the terms and conditions of the QSA and related agreements. It also modified other aspects of the agreement to lessen the environmental impacts of the transfer of conserved water. The amendment was expressly contingent on the approval and implementation of the QSA, which was also executed on October 10, 2003. On November 5, 2003, HD filed a complaint in Imperial County Superior Court seeking validation of 13 contracts associated with the Transfer Agreement and the QSA. Imperial County and various private parties filed additional suits in Superior Court, alleging violations of the California Environmental Quality Act (CEQA), the California Water Code, and other laws related to the approval of the QSA, the water transfer, and related agreements. The lawsuits were coordinated for trial. The IID, Coachella Valley Water District, MWD, the Water Authority, and state are defending these suits and coordinating to seek validation of the contracts. In January 2010, a California Superior Court judge ruled that the QSA and 11 related agreements were invalid, because one of the agreements created an open -ended financial obligation for the state, in violation of California's constitution. The QSA parties appealed this decision and are continuing to seek validation of the contracts. The appeal is currently pending in the Third District Court of Appeal. A stay of the trial court judgment has been issued during the appeal. Implementation of the transfer provisions is proceeding during litigation. 2015 -05 -26 Agenda Packet Page 500 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Expected Supply Deliveries into San Diego County from the transfer began in 2003 with an initial transfer of 10,000 AFY. The Water Authority received increasing amounts of transfer water each year, according to a water delivery schedule contained in the transfer agreement. In 2012, the Water Authority will receive 90,000 AFY. The quantities will increase annually to 200,000 AFY by 2021 then remain fixed for the duration of the transfer agreement. The initial term of the Transfer Agreement is 45 years, with a provision that either agency may extend the agreement for an additional 30 -year term. During dry years, when water availability is low, the conserved water will be transferred under the IID Colorado River rights, which are among the most senior in the Lower Colorado River Basin. Without the protection of these rights, the Water Authority could suffer delivery cutbacks. In recognition for the value of such reliability, the 1998 contract required the Water Authority to pay a premium on transfer water under defined regional shortage circumstances. The shortage premium period duration is the period of consecutive days during which any of the following exist: 1) a Water Authority shortage; 2) a shortage condition for the Lower Colorado River as declared by the Secretary; and 3) a Critical Year. Under terms of the October 2003 amendment, the shortage premium will not be included in the cost formula until Agreement Year 16. Transportation The Water Authority entered into a water exchange agreement with MWD on October 10, 2003; to transport the Water Authority -IID transfer water from the Colorado River to San Diego County. Under the exchange agreement, MWD will take delivery of the transfer water through its Colorado River Aqueduct. In exchange, MWD will deliver to the Water Authority a like quantity and quality of water. The Water Authority will pay MWD's applicable wheeling rate for each acre -foot of exchange water delivered. According to the water exchange agreement, MWD will make delivery of the transfer water for 35 years, unless the Water Authority elects to extend the agreement another 10 years for a total of 45 years. Cost /Financing The costs associated with the transfer are financed through the Water Authority's rates and charges. In the agreement between the Water Authority and HD, the price for the transfer water started at $258 per acre -feet and increased by a set amount for the first seven years. In December 2009, the Water Authority and HD executed a fifth amendment to the water transfer agreement that sets the price per acre -feet for transfer water for calendar years 2010 through 2015, beginning at $405 per acre -feet in 2010 and increasing to $624 per acre -feet in 2015. For calendar years 2016 through 2034, the unit price will be adjusted using an agreed -upon index. The amendment also required the Water Authority to pay IID $6 million at the end of calendar year 2009 and another $50 million on or before October 1, 2010, provided that a transfer 29 2015 -05 -26 Agenda Packet Page 501 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial stoppage is not in effect as a result of a court order in the QSA coordinated cases. Beginning in 2035, either the Water Authority or IID can, if certain criteria are met, elect a market rate price through a formula described in the water transfer agreement. The October 2003 exchange agreement between MWD and the Water Authority set the initial cost to transport the conserved water at $253 per acre -feet. Thereafter, the price is set to be equal to the charge or charges set by MWD's Board of Directors pursuant to applicable laws and regulation, and generally applicable to the conveyance of water by MWD on behalf of its member agencies. The transportation charge in 2010 was $314 per acre -feet. The Water Authority is providing $10 million to help offset potential socioeconomic impacts associated with temporary land fallowing. IID will credit the Water Authority for these funds during years 16 through 45. In 2007, the Water Authority prepaid IID an additional $10 million for future deliveries of water. IID will credit the Water Authority for this up -front payment during years 16 through 30. As part of implementation of the QSA and water transfer, the Water Authority also entered into an environmental cost sharing agreement. Under this agreement the Water Authority is contributing a total of $64 million to fund environmental mitigation projects and the Salton Sea Restoration Fund. Written Contracts or Other Proof The supply and costs associated with the transfer are based primarily on the following documents: Agreement for Transfer of Conserved Water by and between IID and the Water Authority (April 29, 1998). This Agreement provides for a market -based transaction in which the Water Authority would pay IID a unit price for agricultural water conserved by IID and transferred to the Water Authority. Revised Fourth Amendment to Agreement between IID and the Water Authority for Transfer of Conserved Water (October 10, 2003). Consistent with the executed Quantification Settlement Agreement (QSA) and related agreements, the amendments restructure the agreement and modify it to minimize the environmental impacts of the transfer of conserved water to the Water Authority. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 20038 This agreement was executed pursuant to the QSA and provides for delivery of the transfer water to the Water Authority. Environmental Cost Sharing, Funding, and Habitat Conservation Plan Development Agreement among IID, Coachella Valley Water District (CVWD), and Water Authority (October 10, 2003). This Agreement provides for the specified allocation of QSA - related 30 2015 -05 -26 Agenda Packet Page 502 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial environmental review, mitigation, and litigation costs for the term of the QSA, and for development of a Habitat Conservation Plan. Quantification Settlement Agreement Joint Powers Authority Creation and Funding Agreement October 10, 2003). The purpose of this agreement is to create and fund the QSA Joint Powers Authority and to establish the limits of the funding obligation of CVWD, IID, and Water Authority for environmental mitigation and Salton Sea restoration pursuant to SB 654 (Machado). Fifth Amendment to Agreement Between Imperial Irrigation District and San Diego County Water Authority for Transfer of Conserved Water (December 21, 2009). This agreement implements a settlement between the Water Authority and IID regarding the base contract price of transferred water. Federal, State, and Local Permits /Approvals Federal Endangered Species Act Permit. The U.S. Fish and Wildlife Service (USFWS) issued a Biological Opinion on January 12, 2001, that provides incidental take authorization and certain measures required to offset species impacts on the Colorado River regarding such actions. State Water Resources Control Board ( SWRCB) Petition. SWRCB adopted Water Rights Order 2002 -0016 concerning IID and Water Authority's amended joint petition for approval of a long- term transfer of conserved water from IID to the Water Authority and to change the point of diversion, place of use, and purpose of use under Permit 7643. Environmental Impact Report (EIR) for Conservation and Transfer Agreement. As lead agency, IID certified the Final EIR for the Conservation and Transfer Agreement on June 28, 2002. U. S. Fish and Wildlife Service Draft Biological Opinion and Incidental Take Statement on the Bureau of Reclamation's Voluntary Fish and Wildlife Conservation Measures and Associated Conservation Agreements with the California Water Agencies (12/18/021 The U. S. Fish and Wildlife Service issued the biological opinion/incidental take statement for water transfer activities involving the Bureau of Reclamation and associated with IID/other California water agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002 EIR). Addendum to EIR for Conservation and Transfer Agreement. IID as lead agency and Water Authority as responsible agency approved addendum to EIR in October 2003. Environmental Impact Statement (EIS) for Conservation and Transfer Agreement. Bureau of Reclamation issued a Record of Decision on the EIS in October 2003. CA Department of Fish and Game California Endangered Species Act Incidental Take Permit 92081- 2003 - 024 -006). The California Department of Fish and Game issued this permit 31 2015 -05 -26 Agenda Packet Page 503 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial (10/22/04) for potential take effects on state - listed/fully protected species associated with IID /other California water agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002 EIR). California Endangered Species Act (CESA) Permit. A CESA permit was issued by California Department of Fish and Game (CDFG) on April 4, 2005, providing incidental take authorization for potential species impacts on the Colorado River. 6.2.1.2 All- American Canal and Coachella Canal Lining Projects As part of the QSA and related contracts, the Water Authority was assigned MWD's rights to 77,700 ac -ft/yr of conserved water from projects that will line the All- American Canal (AAC) and Coachella Canal (CC). The projects will reduce the loss of water that currently occurs through seepage, and the conserved water will be delivered to the Water Authority. This conserved water will provide the San Diego region with an additional 8.5 million acre -feet over the 110 -year life of the agreement. Implementation Status The CC lining project began in November 2004 and was completed in 2006. Deliveries of conserved water to the Water Authority began in 2007. The project constructed a 37 -mile parallel canal adjacent to the CC. The AAC lining project was begun in 2005 and was completed in 2010. The lining project constructed a concrete -lined canal parallel to 24 miles of the existing AAC from Pilot Knob to Drop 3. In July 2005, a lawsuit (CDEM v United States, Case No. CV -S -05- 0870 -KJD -PAL) was filed in the U. S. District Court for the District of Nevada on behalf of U.S. and Mexican groups challenging the lining of the AAC. The lawsuit, which names the Secretary of the Interior as a defendant, claims that seepage water from the canal belongs to water users in Mexico. California water agencies note that the seepage water is actually part of California's Colorado River allocation and not part of Mexico's allocation. The plaintiffs also allege a failure by the United States to comply with environmental laws. Federal officials have stated that they intend to vigorously defend the case. Expected Supply The AAC lining project makes 67,700 AF of Colorado River water per year available for allocation to the Water Authority and San Luis Rey Indian water rights settlement parties. The CC lining project makes 26,000 AF of Colorado River water each year available for allocation. The 2003 Allocation Agreement provides for 16,000 AFY of conserved canal lining water to be allocated to the San Luis Rey Indian Water Rights Settlement Parties. The remaining amount, 77,700 AFY, is to be available to the Water Authority, with up to an additional 4,850 AFY available to the Water Authority depending on environmental requirements from the CC lining project. For planning purposes, the Water Authority 32 2015 -05 -26 Agenda Packet Page 504 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial assumes that 2,500 AF of the 4,850 AF will be available each year for delivery, for a total of 80,200 AFY of that supply. According to the Allocation Agreement, IID has call rights to a portion (5,000 AFY) of the conserved water upon termination of the QSA for the remainder of the 110 years of the Allocation Agreement and upon satisfying certain conditions. The term of the QSA is for up to 75 years. Transportation The October 10, 2003, Exchange Agreement between the Water Authority and MWD also provides for the delivery of the conserved water from the canal lining projects. The Water Authority will pay MWD's applicable wheeling rate for each acre -foot of exchange water delivered. In the Agreement, MWD will deliver the canal lining water for the term of the Allocation Agreement (I 10 years). Cost /Financing Under California Water Code Section 12560 et seq., the Water Authority received $200 million in state funds for construction of the canal lining projects. In addition, $20 million was made available from Proposition 50 and $36 million from Proposition 84. The Water Authority was responsible for additional expenses above the funds provided by the state. The rate to be paid to transport the canal lining water will be equal to the charge or charges set by MWD's Board of Directors pursuant to applicable law and regulation and generally applicable to the conveyance of water by MWD on behalf of its member agencies. In accordance with the Allocation Agreement, the Water Authority will also be responsible for a portion of the net additional Operation, Maintenance, and Repair (OM &R) costs for the lined canals. Any costs associated with the lining projects as proposed, are to be financed through the Water Authority's rates and charges. Written Contracts or Other Proof The expected supply and costs associated with the lining projects are based primarily on the following documents: U.S. Public Law 100 -675 (1988). Authorized the Department of the Interior to reduce seepage from the existing earthen AAC and CC. The law provides that conserved water will be made available to specified California contracting water agencies according to established priorities. California Department of Water Resources - MWD Funding Agreement (2001). Reimburse MWD for project work necessary to construct the lining of the CC in an amount not to exceed $74 million. Modified by First Amendment (2004) to replace MWD with the Authority. Modified by Second Amendment (2004) to increase funding amount to $83.65 million, with addition of funds from Proposition 50. 33 2015 -05 -26 Agenda Packet Page 505 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial California Department of Water Resources - IID Funding Agreement (2001). Reimburse IID for project work necessary to construct a lined AAC in an amount not to exceed $126 million. MWD - CVWD Assignment and Delegation of Design i Obligations Agreement (2002] Assigns design of the CC lining project to CVWD. MWD - CVWD Financial Arrangements Agreement for Design Obligations (2002). Obligates MWD to advance funds to CVWD to cover costs for CC lining project design and CVWD to invoice MWD to permit the Department of Water Resources to be billed for work completed. Allocation Agreement among the United States of America, The MWD Water District of Southern California, Coachella Valley Water District, Imperial Irrigation District, San Diego County Water Authority, the La Jolla, Pala, Pauma, Rincon, and San Pasqual Bands of Mission Indians, the San Luis Rey River Indian Water Authority, the City of Escondido, and Vista Irrigation District (October 10, 2003). This agreement includes assignment of MWD's rights and interest in delivery of 77,700 AF of Colorado River water previously intended to be delivered to MWD to the Water Authority. Allocates water from the AAC and CC lining projects for at least 110 years to the Water Authority, the San Luis Rey Indian Water Rights Settlement Parties, and IID, if it exercises its call rights. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water October 10, 2003) This agreement was executed pursuant to the QSA and provides for delivery of the conserved canal lining water to the Water Authority. Agreement between MWD and Water Authority regarding Assignment of Agreements related to the AAC and CC Lining Projects. This agreement was executed in April 2004 and assigns MWD's rights to the Water Authority for agreements that had been executed to facilitate funding and construction of the AAC and CC lining projects. Assignment and Delegation of Construction Obligations for the Coachella Canal Lining Project under the Department of Water Resources Funding Agreement No. 4600001474 from the San Diego County Water Authority to the Coachella Valley Water District, dated September 8, 2004. Agreement Regarding the Financial Arrangements between the San Diego Coun . Water Authority and Coachella Valley Water District for the Construction Obligations for the Coachella Canal Lining Project, dated September 8, 2004. Agreement No. 04- XX- 30 -W0429 Among the United States Bureau of Reclamation, the Coachella Valley Water District, and the San Diego County Water Authori , for the Construction of the Coachella Canal Lining Project Pursuant to Title II of Public Law 100 -675, dated October 19, 2004. 34 2015 -05 -26 Agenda Packet Page 506 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial California Water Code Section 12560 et seq. This Water Code Section provides for $200 million to be appropriated to the Department of Water Resources to help fund the canal lining projects in furtherance of implementing California's Colorado River Water Use Plan. California Water Code Section 79567. This Water Code Section identifies $20 million as available for appropriation by the California Legislature from the Water Security, Clean Drinking Water, Coastal, and Beach Protection Fund of 2002 (Proposition 50) to DWR for grants for canal lining and related projects necessary to reduce Colorado River water use. According to the Allocation Agreement, it is the intention of the agencies that those funds will be available for use by the Water Authority, IID, or CVWD for the AAC and CC lining projects. California Public Resources Code Section 75050(b)(1). This section identifies up to $36 million as available for water conservation projects that implement the Allocation Agreement as defined in the Quantification Settlement Agreement. Federal, State, and Local Permits /Approvals AAC Lining Project Final EIS/EIR (March 1994). A final EIR/EIS analyzing the potential impacts of lining the AAC was completed by the Bureau of Reclamation (Reclamation) in March 1994. A Record of Decision was signed by Reclamation in July 1994, implementing the preferred alternative for lining the AAC. A re- examination and analysis of these environmental compliance documents by Reclamation in November 1999 determined that these documents continued to meet the requirements of the NEPA and the CEQA and would be valid in the future. CC Lining Project Final EIS/EIR (Apri12001). The final EIR/EIS for the CC lining project was completed in 2001. Reclamation signed the Record of Decision in April 2002. An amended Record of Decision has also been signed to take into account revisions to the project description. Mitigation, Monitoring, and Reporting Program for Coachella Canal Lining Project, SCH 91990020408, prepared by Coachella Valley Water District, May 16, 2001. Environmental Commitment Plan for the Coachella Canal Lining Project, approved by the US Bureau of Reclamation (Boulder City, NV) on March 4, 2003. Environmental Commitment Plan and Addendum to the All- American Canal Lining Project EIS /EIR California State Clearinghouse Number SCH 90010472 (June 2004, prepared by H91 Addendum to Final EIS /EIR and Amendment to Environmental Commitment Plan for the All- American Canal Lining Project (approved June 27, 2006, by IID Board of Directors). 35 2015 -05 -26 Agenda Packet Page 507 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial 6.2.1.3 Carlsbad Seawater Desalination Project Development of seawater desalination in San Diego County will assist the region in diversifying its water resources, reduce dependence on imported supplies, and provide a new drought - proof, locally treated water supply. The Carlsbad Desalination Project is a fully - permitted seawater desalination plant and conveyance pipeline currently being developed by Poseidon, a private investor —owned company that develops water and wastewater infrastructure. The project, located at the Encina Power Station in Carlsbad, has been in development since 1998 and was incorporated into the Water Authority's 2003 Water Facilities Master Plan and the 2010 UWMP. The Carlsbad Desalination Project has obtained all required permits and environmental clearances and, when completed, will provide a highly reliable local supply of 48,000 to 56,000 AFY for the region. Implementation Status The Project has obtained all required permits and environmental clearances, including the following: • National Pollutant Discharge Elimination System (NPDES) Discharge Permit (Regional Water Quality Control Board) • Conditional Drinking Water Permit (California Department of Health Services) State Lands Commission Lease (State Lands Commission) Coastal Development Permit (California Coastal Commission) IDE Technologies, a worldwide leader in the design, construction, and operation of desalination plants, was selected by Poseidon to be the desalination process contractor for the Proj ect. On July 22, 2010, the Board approved a Term Sheet between the Water Authority and Poseidon Resources that outlined the key terms and conditions that would be detailed and incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October 2011 and under the direction of the Board's Carlsbad Desalination Project Advisory Group, staff began developing and negotiating with Poseidon a WPA consistent with the July 22, 2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific conditions precedent to Board consideration of the WPA. On November 29, 2012, the Water Authority Board adopted a resolution approving the Design -Build Agreement between the Water Authority and Poseidon. The Design -Build Agreement establishes the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consist of an approximate 10 -mile long, 54 -inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority's Second Aqueduct. The pipeline will generally be constructed within 36 2015 -05 -26 Agenda Packet Page 508 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority will own the Project Water Pipeline Improvements upon execution of the Design -Build Agreement, and upon completion and acceptance of construction, the Water Authority will assume operational control of all pipeline improvements. Expected Supply When completed, the Project will provide a highly reliable local supply of 48,000 to 56,000 AFY of supply for the region, available in both normal and dry hydrologic conditions. In 2020, the Project would account for approximately 8% of the total projected regional supply and 30% of all locally generated water in San Diego County. When the project becomes operational in 2016, it will more than double the amount of local supplies developed in the region since 1991. Transportation On November 29, 2012, the Water Authority Board adopted a resolution approving the Design -Build Agreement between the Water Authority and Poseidon. The Design -Build Agreement establishes the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consist of an approximate 10 -mile long, 54 -inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority's Second Aqueduct. The pipeline will generally be constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority will own the Project Water Pipeline Improvements upon execution of the Design -Build Agreement, and upon completion and acceptance of construction, the Water Authority will assume operational control of all pipeline improvements. The Water Authority will be responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority's system for optimal distribution to member agencies. Cost /Financing The plant and the offsite pipeline will be financed through tax exempt government bonds issued for the Water Authority by the California Pollution Control Financing Authority (CPCFA). On November 29, 2012, the Water Authority Board adopted a resolution approving agreements to accomplish tax exempt project financing through the CPCFA. 37 2015 -05 -26 Agenda Packet Page 509 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial A preliminary September 2012 unit cost estimate was $2,300 /AF. The Water Authority's water purchase costs will be financed through Water Authority rates and charges. Poseidon is financing the capital cost of the Project with a combination of private equity and tax - exempt Private Activity Bonds. Written Contracts or Other Proof The expected supply and costs associated with the Carlsbad Desalination Project are based primarily on the following documents: Development Agreement between City of Carlsbad and Poseidon (October 2009). A Development Agreement between Carlsbad and Poseidon was executed on October 5, 2009 Agreement of Term Sheet between the Water Authority and Poseidon Resources (July 2010). The Water Authority approved the Term Sheet at its July 2010 Board Meeting. The Term Sheet outlines the terms and conditions of a future Water Purchase Agreement with Poseidon and allocates the resources to prepare the draft Water Purchase Agreement. Federal, State, and Local Permits /Approvals Carlsbad Desalination Proiect Final EIR The City of Carlsbad, acting as lead agency for Carlsbad Seawater Desalination Plant and appurtenant facilities proposed by Poseidon (the "Project ") prepared an Environmental Impact Report for the Project in compliance with the California Environmental Quality Act ( "CEQA "), which the City of Carlsbad certified on June 13, 2006. http: / /www.sdcwa.org /rwfinp -peir The City of Carlsbad prepared an Addendum to the Carlsbad EIR ( "Addendum ") which was adopted on September 15, 2009, and reflects minor and immaterial design modifications to the Project site plan, appurtenant facilities, and water delivery pipeline network. The environmental documents and permits are found at the following link: htlp://www.carlsbad-desal.com/EIR.asp The Water Authority, as a Responsible Agency under CEQA, adopted a resolution on November 29, 2012 approving a Second Addendum to the Carlsbad Precise Development Plan and Desalination Plant Final EIR and First Addendum that evaluates the environmental impacts of several proposed facility modifications that are necessary to allow for operational flexibility and efficiency in receiving and delivering desalination product water. These modifications include: a realignment of a portion of the approved desalination pipeline, the addition of chemical injection at the approved San Marcos Aqueduct Connection site, the relining of a portion of Pipeline 3, the addition of a pipeline and expanded flow control facility at Twin Oaks Valley Water Treatment Plant and a replacement of the San Marcos Vent on Pipeline 4. Impacts associated with the proposed modifications would not result in a 2015 -05 -26 Agenda Packet Page 510 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial new significant impact or substantial increase in the severity of impacts previously evaluated in the Carlsbad FEIR or the First Addendum. There are no substantial changes to the circumstances under which the project will be undertaken, and no new information of substantial importance that was not known and could not have been known when the FEIR was certified and the First Addendum was approved, and that have since been identified. Therefore, the Second Addendum satisfies the CEQA requirements for the proposed project modifications. Regional Water Facilities Master Plan EIR On November 20, 2003, the Water Authority Board of Directors adopted Resolution No. 2003 -34 certifying the Final Program Environmental Impact Report (State Clearinghouse No. 2003021052) for the Water Authority's Regional Water Facilities Master Plan Project (the "Master Plan EIR "), which evaluated, among other things, potential growth inducing impacts associated with new water supplies to the region including, but not limited to, up to 150 million gallons per day (mgd) of new supplies from seawater desalination. This certification included a 50 mgd plant located in the City of Carlsbad. The environmental documents and permits are found at the following link: htlp: / /www.sdcwa.org /rwfinp -peir Sub regional Natural Community Conservation Plan/Habitat Conservation Plan (NCCP /HCP) On December 8, 2010, the Board adopted Resolution No. 2010 -18 certifying a Final Environmental Impact Report/Environmental Impact Statement for the San Diego County Water Authority Subregional Natural Community Conservation Plan/Habitat Conservation Plan (State Clearinghouse No. 2003121012) (the "Habitat Conservation Plan EIR/EIS "), which Plan was implemented on December 28, 2011. The environmental documents and permits are found at the following link: hLtp://www.sdcwa.org/nccp-ho Twin Oaks Vallev Water Treatment Plant EIR On September 8, 2005, the Board adopted Resolution No. 2005 -31 certifying a Final Environmental Impact Report for the Twin Oaks Valley Water Treatment Plant Project (State Clearinghouse No. 20040071034) (the "Twin Oaks EIR "), which project was constructed as a 100 mgd submerged membrane water treatment facility, including treated water holding tanks and distribution pipelines and other facilities, consistent with the conditions and mitigation measures included in the Twin Oaks EIR. http: / /www.sdcwa.org /twin -oaks- valley- treatment - plant - final -eir 2010 Urban Water Management Plan http: / /www.sdcwa.org /2010-urban-water-management-plan Drinking Water Permit (October 2006). The California Department of Health Services approved the Conditional Drinking Water Permit on October 19, 2006. 39 2015 -05 -26 Agenda Packet Page 511 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Coastal Development Permit The Project is fully permitted, with the California Coastal Commission issuing the following permits: Coastal Development Permit No. E -06 -013, Energy Minimization and Greenhouse Gas Reduction Plan (December 2008), Marine Life Mitigation Plan (December 2008), Erosion Control Plan (November 2009), Landscaping Plan (September 2009), Lighting Plan (August 2009), Construction Plan (September 2009), and Water Pollution Control Plan (September 2009); the California Department of Public Health issuing Conceptual Approval Letter dated October 19, 2006; the California Regional Water Quality Control Board issuing NPDES Permit No. CA0109223 and Notice of Intent to Discharge for Storm Water Associated with Construction Activities (WDID 99 37C361181); the City of Carlsbad issuing Redevelopment Permit RP 05- 12(A), Specific Plan 144 with Amendment 144(J) SP 144(J), Habitat Management Plan Permit Amendment HMP 05- 08(A), Precise Development Plan PDP 00- 02(B), Mitigation Monitoring and Reporting Program for EIR 03- 05(A), Development Agreement DA 05- 01(A), Standard Urban Storm Water Mitigation Program (September 2009), and Coastal Development Permit 04 -41; the State of California State Lands Commission issuing an Amendment of Lease PRC 8727.1 (August 2008). The environmental documents and permits are found at the following link: htlp: / /www.sdcwa.org /carlsbad- desalination -prof ect- approved- permits - and -plans State Lands Commission Lease Application (Amendment of Lease PRC 8727.1 August 2008). Amends lease of land by Cabrillo Power I LLC (Cabrillo) from the State Lands Commission for the lands where the project will be constructed. Cabrillo and Poseidon entered into agreement on July 1, 2003, authorizing Poseidon to use those lands to construct the project. 6.2.2 Water Authority Capital Improvement Program and Financial Information The Water Authority's Capital Improvement Program (CIP) can trace its beginnings to a report approved by the Board in 1989 entitled, The Water Distribution Plan, and a Capital Improvement Program through the Year 2010. The Water Distribution Plan included ten projects designed to increase the capacity of the aqueduct system, increase the yield from existing water treatment plants, obtain additional supplies from MWD, and increase the reliability and flexibility of the aqueduct system. Since that time the Water Authority has made numerous additions to the list of projects included in its CIP as the region's infrastructure needs and water supply outlook have changed. The current list of projects included in the CIP is based on the results of planning studies, including the 2005 UWMP and the 2002 Regional Water Facilities Master Plan. These CIP projects, which are most recently described in the Water Authority's Adopted Multi -Year Budget, include projects valued at $3.50 billion. These CIP projects are designed to meet projected water supply and delivery needs of the member agencies through 2035. The .o 2015 -05 -26 Agenda Packet Page 512 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial projects include a mix of new facilities that will add capacity to existing conveyance, storage, and treatment facilities, as well as repair and replace aging infrastructure: • Asset Management — The primary components of the asset management projects include relining and replacing existing pipelines and updating and replacing metering facilities. • New Facilities — These projects will expand the capacity of the aqueduct system, complete the projects required under the Quantification Settlement Agreement (QSA), and evaluate new supply opportunities. • Emergency Storage Project— Projects remaining to be completed under the ongoing ESP include the San Vicente Dam Raise, the Lake Hodges projects, and a new pump station to extend ESP supplies to the northern reaches of the Water Authority service area. • Other Projects — This category includes out -of- region groundwater storage, increased local water treatment plant capacity, and projects that mitigate environmental impacts of the CIP. The Water Authority Board of Directors is provided a semi -annual and annual report on the status of development of the CIP projects. As described in the Water Authority's biennial budget, a combination of long and short term debt and cash (pay -as- you -go) will provide funding for capital improvements. Additional information is included in the Water Authority's biennial budget, which also contains selected financial information and summarizes the Water Authority's investment policy. 6.3 Otay Water District The Otay WD 2010 Water Resources Master Plan Update and the 2010 Urban Water Management Plan contain comparisons of projected supply and demands through the year 2035. Projected potable water resources to meet planned demands as documented were planned to be supplied entirely with imported water received from the Water Authority. Recycled water resources to meet projected demands are planned to be supplied from local wastewater treatment plants. The Otay WD currently has no local supply of raw water, potable water, or groundwater resources. The development and /or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD have evolved and are planned to occur in response to the regional water supply issues. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new additional water supply projects are not currently developed and are in various stages of the planning process. These local and regional water supply projects will allow for less reliance upon imported water and are considered a new water supply resource for the Otay WD. 41 2015 -05 -26 Agenda Packet Page 513 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The Otay WD expansion of the market areas for the use of recycled water within the watersheds upstream of the Sweetwater Reservoir, Otay Mesa, and the Lower Otay Reservoir will increase recycled water use and thus require less dependence on imported water for irrigation purposes. The supply forecasts contained within this WSA &V Report do consider development and /or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD. 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The availability of sufficient potable water supplies and plans for acquiring additional potable water supplies to serve existing and future demands of the Otay WD is founded upon the preceding discussions regarding MWD's and the Water Authority's water supply resources and water supplies to be acquired by the Otay WD. Historic imported water deliveries from the Water Authority to Otay WD and recycled water deliveries from the Otay WD Ralph W. Chapman Water Reclamation Facility ( RWCWRF) are shown in Table 7. Since the year 2000 through mid May 2007, recycled water demand has exceeded the recycled water supply capability typically in the summer months. The RWCWRF is limited to a maximum production of about 1,300 ac- ft/yr. The recycled water supply shortfall had been met by supplementing with potable water into the recycled water storage system as needed by adding potable water supplied by the Water Authority. On May 18, 2007 an additional source of recycled water supply from the City of San Diego's South Bay Water Reclamation Plant ( SBWRP) became available. The supply of recycled water from the SBWRP is a result of essentially completing construction and commencement of operations of the transmission, storage, and pump station systems necessary to link the SBWRP recycled water supply source to the existing Otay WD recycled water system. 42 2015 -05 -26 Agenda Packet Page 514 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Table 7 Historic Imported and Local Water Supplies Otay Water District Calendar Year Imported Water (AF) Recycled Water (AF) Total (AF) 1980 12,558 0 12,558 1985 14,529 0 14,529 1990 23,200 0 23,200 1995 20,922 614 21,536 2000 29,901 948 30,849 2005 37,678 1,227 38,905 2010 29,270 4,090 33,270 2011 30,158 3,880 34,038 2012 31,268 4,155 35,423 2013 31,844 4,390 36,234 2014 33,409 4,595 38,004 Source: Otay Water District operational records. 6.3.1.1 Imported and Regional Supplies The availability of sufficient imported and regional potable water supplies to serve existing and planned uses within Otay WD is demonstrated in the above discussion on MWD and the Water Authority's water supply reliability. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority "as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs." The Water Authority provides between 75 to 95 percent of the total supplies used by its 24 member agencies, depending on local weather and supply conditions. In calendar year 2010 the supply to Otay WD was 29,270 AF of supply from the Water Authority. An additional 4,090 AF of recycled water was supplied from the City of San Diego and from the District's Ralph W. Chapman Water Reclamation Facility. The demand for potable water within the Otay WD is expected to increase to about 77,177 AF by 2035 as per the Otay WD 2010 UWMP. Potable Water System Facilities The Otay WD continues to pursue diversification of its water supply resources to increase reliability and flexibility. The Otay WD also continues to plan, design, and construct potable water system facilities to obtain these supplies and to distribute potable water to meet customer demands. The Otay WD has successfully negotiated two water supply 43 2015 -05 -26 Agenda Packet Page 515 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial diversification agreements that enhance reliability and flexibility, which are briefly described as follows. The Otay WD entered into an agreement with the City of San Diego, known as the Otay Water Treatment Plant (WTP) Agreement. The Otay WTP Agreement provides for raw water purchase from the Water Authority and treatment by the City of San Diego at their Otay WTP for delivery to Otay WD. The supply system link to implement the Otay WTP Agreement to access the regions raw water supply system and the local water treatment plant became fully operational in August 2005. This supply link consists of the typical storage, transmission, pumping, flow measurement, and appurtenances to receive and transport the treated water to the Otay WD system. The City of San Diego obligation to supply 10 mgd of treated water under the Otay WTP Agreement is contingent upon there being available 10 mgd of surplus treatment capacity in the Otay WTP until such time as Otay WD pays the City of San Diego to expand the Otay WTP to meet the Otay WD future needs. In the event that the City of San Diego's surplus is projected to be less than 10 mgd the City of San Diego will consider and not unreasonably refuse the expansion of the Otay WTP to meet the Otay WD future needs. The Otay WTP existing rated capacity is 40 mgd with an actual effective capacity of approximately 34 mgd. The City of San Diego's typical demand for treated water from the Otay WTP is approximately 20 mgd. It is at the City of San Diego's discretion to utilize either imported raw water delivered by the Water Authority Pipeline No. 3 or local water stored in Lower Otay Reservoir for treatment to supply the Otay WD demand. The Otay WD entered into an agreement with the Water Authority, known as the East County Regional Treated Water Improvement Program ( ECRTWIP Agreement). The ECRTWIP Agreement provides for transmission of raw water to the Helix WD R. M. Levy WTP for treatment and delivery to Otay WD. The supply system link to implement the ECRTWIP Agreement is complete allowing access to the regions raw water supply system and the local water treatment plant. This supply link consists of the typical transmission, pumping, storage, flow control, and appurtenances to receive and transport the potable water from the R. M. Levy WTP to Otay WD. The Otay WD is required to take a minimum of 10,000 AFY of treated water from the R.M. Levy WTP supplied from the regions raw water system. Cost and Financing The capital improvement costs associated with water supply and delivery are financed through the Otay WD water meter capacity fee, New Water Supply Fee, and user rate structures. The Otay WD potable water sales revenue are used to pay for the wholesale cost of the treated water supply and the operating and maintenance expenses of the potable water system facilities. Written Agreements, Contracts, or Other Proof , 2015 -05 -26 Agenda Packet Page 516 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The supply and cost associated with deliveries of treated water from the Otay WTP and the R.M. Levy WTP is based on the following documents. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. The Otay WD entered into an agreement dated January 11, 1999 with the City of San Diego that provides for 10 mgd of surplus treated water to the Otay WD from the existing Otay WTP capacity. The agreement allows for the purchase of treated water on an as available basis from the Otay WTP. The Otay WD pays the Water Authority at the prevailing raw water rate for raw water and pays the City of San Diego at a rate equal to the actual cost of treatment to potable water standards. Agreement between the San Diego County Water Authority and Otay Water District Regarding Implementation of the East County Regional Treated Water Improvement Program. The ECRTWIP Agreement requires the purchase of at least 10,000 AFY of potable water from the Helix WD R.M. Levy WTP at the prevailing Water Authority treated water rate. The ECRTWIP Agreement is dated April 27, 2006. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. The Otay WD entered into the Otay 14 Flow Control Facility Modification Agreement dated January 24, 2007 with the Water Authority to increase the physical capacity of the Otay 14 Flow Control Facility. The Water Authority and Otay WD to 50% share the capital cost to expand its capacity from 8 mgd to 16 mgd. Federal, State, and Local Permits /Approvals The Otay WD acquired all the permits for the construction of the pipeline and pump station associated with the Otay WTP supply source and for the 640 -1 and 640 -2 water storage reservoirs project associated with the ECRTWIP Agreement through the typical planning, environmental approval, design, and construction processes. The transmission main project constructed about 26,000 feet of a 36 -inch diameter steel pipeline from the Otay 14 Flow Control Facility to the 640 -1 and 640 -2 Reservoirs project. The Otay 14 Flow Control Facility modification increased the capacity of the existing systems from 8 mgd to 16 mgd. CEQA documentation is complete for both projects. Construction of both of these projects was completed October 2010. The City of San Diego and the Helix Water District are required to meet all applicable federal, state, and local health and water quality requirements for the potable water produced at the Otay WTP and the R.M. Levy WTP respectively. Ci 2015 -05 -26 Agenda Packet Page 517 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial 6.3.1.2 Recycled Water Supplies Wastewater collection, treatment, and disposal services provided by the Otay WD is limited to a relatively small area within what is known as the Jamacha Basin, located within the Middle Sweetwater River Basin watershed upstream of the Sweetwater Reservoir and downstream of Loveland Reservoir. Water recycling is defined as the treatment and disinfection of municipal wastewater to provide a water supply suitable for non - potable reuse. The Otay WD owns and operates the Ralph W. Chapman Water Reclamation Facility, which produces recycled water treated to a tertiary level for landscape irrigation purposes. The recycled water market area of the Otay WD is located primarily within the eastern area of the City of Chula Vista and on the Otay Mesa. The Otay WD distributes recycled water to a substantial market area that includes but is not limited to the U.S. Olympic Training Center, the EastLake Golf Course, and other development projects. The Otay WD projects that annual average demands for recycled water will increase to 8,000 AFY by 2035. About 1,300 AFY of supply is generated by the RWCWRF, with the remainder planned to be supplied to Otay WD by the City of San Diego's SBWRP. North District Recycled Water Concept The Otay WD is a recognized leader in the use of recycled water for irrigation and other commercial uses. The Otay WD continues the quest to investigate all viable opportunities to expand the successful recycled water program into areas that are not currently served. One of these areas is in the portion of the service area designated as the North District, located within the Middle Sweetwater River Basin watershed upstream of the Sweetwater River. The close proximity of the recycled water markets in the North District to the Otay WD's source of recycled water, the RWCWRF, means that the distribution system to serve this area could be constructed relatively cost effectively. This makes the North District a logical location for the expansion of the Otay WD's recycled water system and market area. The purpose of the North District Recycled Water System Development Project, Phase I Concept Study, is to identify the feasibility of using recycled water in the North District and to investigate and assess any limitations or constraints to its use. The Phase I study components of the North District Recycled Water Concept encompassed the preparation of six technical memorandums including the project definition, a discussion of the regulatory process, a discussion of the protection of the watershed that would be affected by recycled water use in the North District, identification of stakeholders, public outreach, and an implementation plan. Several opportunities that could be realized with the implementation of the use of recycled water in the North District were identified. These include a reduction of demand on the potable water system and maximizing recycled water resources which in turn minimizes treated wastewater discharges to the local ocean outfall. Other opportunities are a possible partnership with Sweetwater Authority to monitor any benefits and impacts of increased .e 2015 -05 -26 Agenda Packet Page 518 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial recycled water use in the watershed and stakeholder outreach to resolve any water quality concerns and to retain consumer confidence. Also identified were two major constraints associated with the North District Recycled Water System Development Project. One constraint is the water quality objectives for the Middle Sweetwater Basin that will affect the effluent limitations for the recycled water produced at the RWCWRF. At this time, the effluent limit that is of concern is total nitrogen. An examination as to how the treatment process might be modified to enhance nitrogen removal and an action plan is being developed. The other major constraint is the cost of the infrastructure needed to convey and store recycled water in the North District. These costs are estimated to be in the range of $14 to $15 million dollars. There are two additional phases proposed for the North District Recycled Water System Development Project. Phase II would include further investigation of the issues identified in Phase I as requiring further study. These include stakeholder outreach, regulatory issues, and facility planning. The third phase of the effort would include the facility planning, permitting, environmental compliance, design, and construction of the improvements necessary for delivery of recycled water to the North District markets. The estimated amount of imported water saved at full implementation of the North District Recycled Water System Development Project is 1,200 ac- ft/yr. This saved imported water could then be used to offset new potable water demands. Recycled Water System Facilities The Otay WD has and continues to construct recycled water storage, pumping, transmission, and distribution facilities to meet projected recycled water market demands. For nearly 20 years, millions of dollars of capital improvements have been constructed. The supply link consisting of a transmission main, storage reservoir, and a pump station to receive and transport the recycled water from the City of San Diego's SBWRP are complete and recycled water deliveries began on May 18, 2007. Cost and Financing The capital improvement costs associated with the recycled water supply and distribution systems are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD recycled water sales revenue, along with MWD and the Water Authority's recycled water sales incentive programs are used to help offset the costs for the wholesale purchase and production of the recycled water supply, the operating and maintenance expenses, and the capital costs of the recycled water system facilities. 47 2015 -05 -26 Agenda Packet Page 519 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of recycled water from the SBWRP is based on the following document. Agreement between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. The agreement provides for the purchase of at least 6,721 ac -ft per year of recycled water from the SBWRP at an initial price of $350 per acre -foot. The Otay WD Board of Directors approved the final agreement on June 4, 2003 and the San Diego City Council approved the final agreement on October 20, 2003. Federal, State, and Local Permits /Approvals The Otay WD has in place an agreement with MWD for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. Also, the Otay WD has in place an agreement with the Water Authority for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. The Water Authority sales incentive agreement was approved by Water Authority on July 26, 2007 and by Otay WD on August 1, 2007. All permits for the construction of the recycled water facilities to receive, store, and pump the SBWRP supply have been acquired through the typical planning, environmental approval, design, and construction processes. The California Regional Water Quality Control Board San Diego Region (RWQCB) "Master Reclamation Permit for Otay Water District Ralph W. Chapman Reclamation Facility" was adopted on May 9, 2007 (Order No. R9- 2007 - 0038). This order establishes master reclamation requirements for the production, distribution, and use of recycled water in the Otay WD service area. The order includes the use of tertiary treated water produced and received from the City of San Diego's SBWRP. Recycled water received from and produced by the SBWRP is regulated by Regional Board Order No. 2000 -203 and addenda. The City of San Diego is required to meet all applicable federal, state, and local health and water quality requirements for the recycled water produced at the SBWRP and delivered to Otay WD in conformance with Order No. 2000 -203. 6.3.1.3 Potential Groundwater Supplies The Otay WD 2010 UWMP, the WRMP Update, and the Otay WD March 2007 Integrated Water Resources Plan (2007 IRP) both contain a description of the development of potential groundwater supplies. Over the past several years, Otay WD has studied numerous potential groundwater supply options that have shown, through groundwater monitoring well activities, poor quality water and /or insufficient yield from the basins at a cost effective level. The Otay WD has a few capital improvement program projects to continue the quest to develop potential groundwater resources. Local Otay WD groundwater supply development is currently considered as a viable water supply resource to meet projected demands. M. 2015 -05 -26 Agenda Packet Page 520 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The development and /or acquisition of potential groundwater supply projects by the Otay WD has been resurrected and evolved in response to the regional water supply issues related to water source supply conditions. Local ground water supply projects will allow for less reliance upon imported water, achieve a level of independence of the regional wholesale water agencies, and diversify the Otay WD's water supply portfolio consistent the Otay WD 2007 IRP. In recognition of the need to develop sufficient alternative water supplies, the Otay WD has taken the appropriate next steps towards development of production groundwater well projects. There aree groundwater well projects that the Otay WD is pursuing to develop as new local water supplies. They are known as the Middle Sweetwater River Basin Groundwater Well, and the Otay Mesa Lot 7 Groundwater Well. Middle Sweetwater River Basin Groundwater Well The Middle Sweetwater River Basin Groundwater Well is an additional water supply project that was thoroughly studied and documented in the 1990s. The Middle Sweetwater River Basin is located within the Sweetwater River watershed and that reach of the river extends from Sweetwater Reservoir to the upstream Loveland Reservoir. The next step in development of the Middle Sweetwater River Basin Groundwater Well is the implementation of a pilot well project. The ultimate objective of the Otay WD is to develop a groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water as a local supply. The purpose of the Middle Sweetwater River Basin Groundwater Well Pilot project is to identify the feasibility of developing a groundwater resource production system and then determine and assess any limitations or constraints that may arise. The Middle Sweetwater River Basin Groundwater Well Pilot Project will accomplish six primary goals: • Update project setting • Update applicable project alternatives analysis • Prepare groundwater well pilot project implementation plan • Construct and test pilot monitoring and extraction wells • Provide recommendations regarding costs and feasibility to develop a groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water • Prepare groundwater well production project implementation plan and scope of work The groundwater conjunctive use concept is described as the extraction of the quantity of water from the groundwater basin that was placed there by customers of the Otay Water District, Helix Water District, and Padre Dam Municipal Water District by means of their use of imported treated water that contributed to the overall volume of groundwater within the ME 2015 -05 -26 Agenda Packet Page 521 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial basin. An estimated quantity was developed to be approximately 12.5 percent of the total consumption of the Otay WD customers within that basin, as measured by water meters. In the 1994 -1995 period, the quantity of water that was returned to the groundwater basin by Otay WD customers was estimated to be 810 AFY. Currently, that 12.5 percent quantity could be on the order of 1,000 AFY. A future scope of work will need to addresses this concept while considering further development of the groundwater basin as an additional supply resource. If it is deemed that a Middle Sweetwater River Basin Groundwater Well Production Project is viable then the consultant will develop and provide a groundwater well production project implementation plan, cost estimate, and related scope of work. Further development of the groundwater basin to enhance the total groundwater production could be accomplished by the Otay WD by means of additional extraction of water from the basin that is placed there by means of either injection and /or spreading basins using imported untreated water as the resource supply. The existing La Mesa Sweetwater Extension Pipeline, owned by the Water Authority, once converted to an untreated water delivery system, could be the conveyance system to transport untreated water for groundwater recharge in support of this conjunctive use concept. These two distinct water resource supply conjunctive use concepts will be addressed so they may coexist and to allow for their development as separate phases. The scope of work to complete Middle Sweetwater River Basin Groundwater Well Pilot Project consists of many major tasks and is to address the groundwater supply concepts outlined above. It is anticipated that the cost for the entire scope of work, will be on the order of $2,000,000, which includes a contingency and may take up to one and a half years to complete. The primary desired outcome of the Middle Sweetwater River Basin Groundwater Well Pilot Project is for the engineering consultant to determine and make recommendations if it is financially prudent and physically feasible to develop a Phase I groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of up to 1,500 ac -ft/yr of potable water for the Otay WD. If it is deemed that a Middle Sweetwater River Basin Groundwater Well Production Project is viable then the consultant will develop and provide a groundwater well production project implementation plan and related scope of work. Otay Mesa Lot 7 Groundwater Well In early 2001 the Otay WD was approached by a landowner representative about possible interest in purchasing an existing well or alternatively, acquiring groundwater supplied from the well located on Otay Mesa. The landowner, National Enterprises, Inc., reportedly stated that the well could produce 3,200 AFY with little or no treatment required prior to introducing the water into the Otay WD potable water system or alternatively, the recycled water system. In March 2001 authorization to proceed with testing of the Otay Mesa Lot 7 Groundwater 50 2015 -05 -26 Agenda Packet Page 522 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Well was obtained and the Otay WD proceeded with the investigation of this potential groundwater supply opportunity. The May 2001 Geoscience Support Services, Inc. completed for the Otay WD the preparation of a report entitled, "Otay Mesa Lot 7 Well Investigation," to assess the Otay Mesa Lot 7 Well. The scope of work included a geohydrologic evaluation of the well, analyses of the water quality samples, management and review of the well video log, and documentation of well pump testing. The primary findings, as documented in the report, formed the basis of the following recommendations: • For the existing well to be use as a potable water supply resource, a sanitary seal must be installed in accordance with the CDPH guidelines. • Drawdown in the well must be limited to avoid the possibility of collapsing the casing. • Recover from drawdown from pumping is slow and extraction would need to be terminated for up to 2 days to allow for groundwater level recovery. • The well water would need to be treated and /or blended with potable water prior to introduction into the potable water distribution system. The existing Otay Mesa Lot 7 Well, based upon the above findings, was determined not to be a reliable municipal supply of potable water and that better water quality and quantity perhaps could be discovered deeper or at an alternative location within the San Diego Formation. The Otay WD may still continue to pursue the Otay Mesa groundwater well opportunity with due consideration of the recommendations of the existing report. Based on the recommendations of the investigation report, a groundwater well production facility at Otay Mesa Lot 7 could realistically extract approximately 300 AFY. 6.3.1.4 Otay Water District Desalination Project The Otay WD is currently investigating the feasibility of purchasing desalinated water from a seawater reverse osmosis plant that is planned to be located in Rosarito, Mexico, known as the Otay Mesa Desalinated Water Conveyance System (Desalination) project. The treatment facility is intended to be designed, constructed, and operated in Mexico by a third party. The Otay WD's draft Desalination Feasibility Study, prepared in 2008, discusses the likely issues to be considered in terms of water treatment and monitoring, potential conveyance options within the United States from the international border to potential delivery points, and environmental, institutional, and permitting considerations for the Otay WD to import the Desalination project product water as a new local water supply resource. While the treatment facility for the Desalination project will likely not be designed or operated by the Otay WD as the lead agency, it is important that the Otay WD maintain involvement with the planning, design, and construction of the facility to ensure that the implemented processes provide a product water of acceptable quality for distribution and use 51 2015 -05 -26 Agenda Packet Page 523 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial within the Otay WD's system as well as in other regional agencies' systems that may use the product water, i.e. City of San Diego, the Water Authority, etc. A seawater reverse osmosis treatment plant removes constituents of concern from the seawater, producing a water quality that far exceeds established United States and California drinking water regulations for most parameters, however, a two -pass treatment system may be required to meet acceptable concentrations of boron and chlorides, similar to the levels seen within the existing Otay WD supply sources. The Desalination Feasibility Study addresses product water quality that is considered acceptable for public health and distribution. The Otay WD, or any other potential participating agencies, will be required to get approval from the CDPH in order to use the desalinated seawater as a water source. Several alternative approaches are identified for getting this approval. These alternatives vary in their cost and their likelihood of meeting CDPH approval. The Rosarito Desalination Facility Conveyance and Disinfection System Project report addresses two supply targets for the desalinated water (i.e. local and regional). The local alternative assumes that only Otay WD would participate and receive desalinated water, while the regional alternative assumes that other regional and /or local agencies would also participated in the Rosarito project. On November 3, 2010, the Otay WD authorized the General Manager to enter into an agreement with AECOM for the engineering design, environmental documentation, and the permitting for the construction of the conveyance pipeline, pump station, and disinfection facility to be constructed within the Otay WD. The supply target is assumed to be 50 mgd while the ultimate capacity of the plant will be 100 mgd. The Otay WD is proceeding with negotiations among the parties to establish water supply resource acquisition terms through development of a Principles of Understanding document. 6.3.2 Otay WD Capital Improvement Program The Otay WD plans, designs, constructs, and operates water system facilities to acquire sufficient supplies and to meet projected ultimate demands placed upon the potable and recycled water systems. In addition, the Otay WD forecasts needs and plans for water supply requirements to meet projected demands at ultimate build out. The necessary water facilities and water supply projects are implemented and constructed when development activities proceed and require service to achieve timely and adequate cost effective water service. New water facilities that are required to accommodate the forecasted growth within the entire Otay WD service area are defined and described within the Otay WD WRMP Update. These facilities are incorporated into the annual Otay WD Six Year Capital Improvement Program (CIP) for implementation when required to support development activities. As major development plans are formulated and precede through the land use jurisdictional agency approval processes, Otay WD prepares water system requirements specifically for the proposed 52 2015 -05 -26 Agenda Packet Page 524 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial development project consistent with the Otay WD WRMP Update. These requirements document, define, and describe all the potable water and recycled water system facilities to be constructed to provide an acceptable and adequate level of service to the proposed land uses, as well as the financial responsibility of the facilities required for service. The Otay WD funds the facilities identified as CIP projects. Established water meter capacity fees and user rates are collected to fund the CIP project facilities. The developer funds all other required water system facilities to provide water service to their project. Section 7 — Conclusion: Availability of Sufficient Supplies The Planning Area 12 Freeway Commercial Project is currently located within the jurisdictions of the Otay WD, Water Authority, and MWD. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and /or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with either lower or higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. MWD's Integrated Resources Plan (IRP) identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full - service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2010 update to the IRP includes a planning buffer supply intended to mitigate against the risks associated with implementation of local and imported supply programs and for the risk that future demands could be higher than projected. The planning buffer identifies an additional increment of water that could potentially be developed when needed and if other supplies are 53 2015 -05 -26 Agenda Packet Page 525 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial not fully implemented as planned. As part of implementation of the planning buffer, MWD periodically evaluates supply development, supply conditions, and projected demands to ensure that the region is not under or over developing supplies. Managed properly, the planning buffer will help ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long -term future demands. In Section ES -5 of their 2010 RUWMP, MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2015 through 2035. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in- region storage that enables the region to meet its water supply needs. MWD's 2010 RUWMP identifies potential reserve supplies in the supply capability analysis (Tables 2 -9, 2 -10, and 2 -11), which could be available to meet the unanticipated demands. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority "as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs." As part of preparation of a written water supply assessment report, an agency's shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority's 2010 Updated UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Emergency Response Plan, Emergency Storage Project, Carlsbad Desalination Project, and Drought Management Plan (DMP) are taking actions to prepare for and appropriately handle an interruption of water supplies. The DMP, adopted in May 2006, provides the Water Authority and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. The WSA &V Report identifies and describes the processes by which water demand projections for the proposed Planning Area 12 Freeway Commercial Project will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed Planning Area 12 Freeway Commercial Project, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Planning Area 12 Freeway Commercial WSA &V Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA &V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or 54 2015 -05 -26 Agenda Packet Page 526 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial agreements relevant to the identified water supply needs for the proposed Planning Area 12 Freeway Commercial Project. This WSA &V Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be available over a 20 -year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the proposed Planning Area 12 Freeway Commercial Project and the existing and other planned development projects to be served by the Otay WD. Table 8 presents the forecasted balance of water demands and required supplies for the Otay WD service area under average or normal year conditions. The total actual demand for FY 2010 was 33,270 acre feet. The demand for FY 2010 is 5,635 acre feet lower than the demand in FY 2005 of 38,905 acre feet. The drop in demand is a result of the unit price of water, the conservation efforts of users as a result of the prolonged drought, and the economy. Table 9 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year conditions. Table 9 presents the forecasted balance of water demands and supplies for the Otay WD service area under multiple dry year conditions for the three year period ending in 2018. The multiple dry year conditions for periods ending in 2023, 2028, and 2033 are provided in the Otay Water District 2010 UWMP. The projected potable demand and supply requirements shown the Tables 8 and 9 are from the Otay Water District 2010 UWMP. Hot, dry weather may generate urban water demands that are about 6.4 percent greater than normal. This percentage was utilized to generate the dry year demands shown in Table 9. The recycled water supplies are assumed to experience no reduction in a dry year. 55 2015 -05 -26 Agenda Packet Page 527 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Table 8 Projected Balance of Water Demands and Supplies Normal Year Conditions (AF) Description FY 2015 FY 2020 FY 2025 FY 2030 FY 2035 Demands Otay WD Demands 44,883 53,768 63,811 70,669 77,171 Previous Water Authority Accelerated Forecasted Growth Demands 570 570 570 570 570 PA 12 Freeway Comm. Demands 173 173 173 173 173 Additional Conservation Target 0 (7,447) (13,996) (17,895) (20,557) Total Demand 45,626 47,064 50,558 53,517 57,357 Supplies Water Authority Supply 40,483 41,321 44,015 45,974 48,614 Water Authority Accelerated Forecast Growth Increment 743 743 743 743 743 Recycled Water Supply 4,400 5,000 5,800 6,800 8,000 Total Supply 45,626 47,064 50,558 53,517 57,357 Supply Surplus /(Deficit) 0 0 0 0 0 The 743 (570 +173) AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority's 2010 UWMP. Table 9 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year and multiple dry year conditions as from the Otay WD 2010 UWMP. 56 2015 -05 -26 Agenda Packet Page 528 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Table 9 Projected Balance of Water Demands and Supplies Single Dry and Multiple Dry Year Conditions (acre feet) Dry year demands assumed to generate a 6.4% increase in demand over normal conditions for each year in addition to new demand growth. Table 9 also presents the forecasted balance of water demands and supplies for the Otay WD service area under multiple dry year conditions for the three year period ending in 2015. In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway Commercial Project development proponents will be required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento -San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled Water Supply Concept, and the Otay WD Desalination project. The Water Authority and MWD's next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. 57 2015 -05 -26 Agenda Packet Page 529 Normal Year Single Dry Year Multiple Dry Years FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Demands Otay WD Demands 37.176 41,566 43.614 46,385 50,291 Total Demand 37,176 41,566 43,614 46,385 50,291 Supplies Water Authority Supply 33,268 37,535 39,460 42,108 45,891 Recycled Water Supply 3,908 4,031 4,154 4,277 4,400 Total Supply 37,176 41,566 43,614 46,385 50,291 Supply Surplus /(Deficit) 1 0 1 0 0 1 0 0 District Demand totals with SBX7 -7 conservation target achievement plus single dry year increase as shown. The Water Authority could implement its DMP. In this instances, the Water Authority may have to allocate supply shortages based on it equitable allocation methodology in its DMP. Dry year demands assumed to generate a 6.4% increase in demand over normal conditions for each year in addition to new demand growth. Table 9 also presents the forecasted balance of water demands and supplies for the Otay WD service area under multiple dry year conditions for the three year period ending in 2015. In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway Commercial Project development proponents will be required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento -San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled Water Supply Concept, and the Otay WD Desalination project. The Water Authority and MWD's next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. 57 2015 -05 -26 Agenda Packet Page 529 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial The Otay WD acknowledges the ever - present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions. The responsible regional water supply agencies have and will continue to adapt their resource plans and strategies to meet climate, environmental, and legal challenges so that they may continue to provide water supplies to their service areas. The regional water suppliers along with Otay WD fully intend to maintain sufficient reliable supplies through the 20 -year planning horizon under normal, single, and multiple dry year conditions to meet projected demand of the Planning Area 12 Freeway Commercial Project, along with existing and other planned development projects within the Otay WD service area. This WSA &V Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be acquired, as well as the actions necessary and status to develop these supplies, to meet projected water demands of the Planning Area 12 Freeway Commercial Project as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20 -year planning horizon, in normal and in single and multiple dry years. WOR 2015 -05 -26 Agenda Packet Page 530 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Source Documents City of Chula Vista, Otay Ranch Planning Area 12 Freeway Commercial SB 610 and SB 221 Compliance request letter received February 25, 2015. City of Chula Vista, "Otay Ranch General Development Plan/Sub- regional Plan, The Otay Ranch Joint Planning Project," October 1993 amended June 1996. County of San Diego, "East Otay Mesa Specific Plan Area," adopted July 27, 1994. Otay Water District, "2010 Water Resources Master Plan Update," Revised 2013. Atkins and Otay Water District, "Otay Water District 2010 Urban Water Management Plan," June 2011. Camp Dresser & McKee, Inc., "Otay Water District Integrated Water Resources Plan," March 2007 San Diego County Water Authority, "Urban Water Management Plan 2005 Update," November 2005 amended May 2007. MWD Water District of Southern California, "Regional Urban Water Management Plan," November 2005. Dexter Wilson Engineering, Inc., "Otay Ranch Planning Area 12 Freeway Commercial SAMP Amendment " memorandum, February 8, 2015. Camp Dresser & McKee, Inc., "Rosarito Desalination Facility Conveyance and Disinfection System Project," June 21, 2010. PBS &J, "Draft Otay Water District North District Recycled Water System Development Project, Phase I Concept Study," December 2008. NBS Lowry, "Middle Sweetwater River System Study Water Resources Audit," June 1991. Michael R. Welch, "Middle Sweetwater River System Study Alternatives Evaluation," May 1993. Michael R. Welch, "Middle Sweetwater River Basin Conjunctive Use Alternatives," September 1994. Geoscience Support Services, Inc., "Otay Mesa Lot 7 Well Investigation," May 2001. 59 2015 -05 -26 Agenda Packet Page 531 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Boyle Engineering Corporation, "Groundwater Treatment Feasibility Study Ranch del Ray Well Site," September 1996. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. Agreement between the San Diego County Water Authority and Otay Water District regarding Implementation of the East County Regional Treated Water Improvement Program. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. Agreement between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. 60 2015 -05 -26 Agenda Packet Page 532 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Appendix A Planning Area 12 Freeway Commercial Regional Location Map 2015 -05 -26 Agenda Packet Page 533 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Planning Area 12 Freeway Commercial Appendix B Otay Ranch Planning Area 12 Freeway Commercial Proposed Development Plan 2 2015 -05 -26 Agenda Packet Page 535 ( �\ Hotel: 148 rooms Hotel: 152 rooms All•r Ali �Arr,A a r ca , r. r 2 Acre Public Park, !'. (wlth2 acres of ' N equlva encyenhancement) C. f i f ; i Residential, 325 units (apartments) �- 6R R etai I. 25,000 sf (mixed -use buildings, along Town Center Drive) a a a K)) Residential. 325 units (condos) O O V d O 'U N E E 0 U T 0 3 d d li M M 19 1 � °�� OTAY WATER DISTRICT PA -12 FREEWAY COMMERCIAL LAND USE MAP WO D0933 a 2015 -05 -26 Agenda Packet APPENDIX B Page 536 Otay Water District Board of Directors Meeting April 1, 2015 EXHIBIT D VVa «r SUpply Assessment & Verification Report Update for the Otay Ranch Planning Area 12 Freeway Commercial Project SB 610 & SB 221 Compliance r 2015 -05 -26 Agenda Packet IL Page 537 ,WT1 BACKGROUND Senate Bills 610 and 221 became effective on January 1, 20020 Primary Intent: Improve the link between water supply availability and land use decisions. ■ SB 610 requires a Water Supply Assessment (WSA) to be included in the CEQA documents for a project. ■ SB 221 requires a Water Supply Assessment & Verification (WSA &V), also included in the CEQA documents. ■ Board approval required for submittal of the WSA &V Report to the City of Chula Vista. 2 2015 -05 -26 Agenda Packet Page 538 2015 -05 -26 Agenda Packet Tanning Area 12 imercial Project er Demand 38.8 AFY Recycled • 28.7 acres developed of the 34.5 acre site • Two hotels — 310 units • 650 multi - family ® residential dwellings • 25,000 sq.ft. of commercial/ retail • Park Page 539 3 Changes since the 2013 WSA &V ■ Potable water demand has increased to 233 AFY, 46 AFY higher than 2013 report. ■ Recycled water demand has increased to 38.8 AFY, 20.3 AFY higher than 2013 report. ■ Land Use has changed. Land Use Description WSA &V (May 2013) WSA &V (Feb 2015) Area (acres) Dwelling Units Area (acres) Dwelling Units Multi - Family Residential 448 650 Hotel (2) 257 310 Commercial 14.5 4.0 Park 1.0 2.0 0 2015 -05 -26 Agenda Packet Page 540 WSA &V Report Flo Acknowledges the challenges for regional and local water supply agencies in meeting demands and that a diversified portfolio is needed to serve existing and future needs. The Report documents planned water supply projects and the actions necessary to develop the supplies. Description of how water supply is planned and available for the project and for existing and future development over a 20 -year planning horizon, under normal and in single -dry and multiple -dry years. 5 2015 -05 -26 Agenda Packet Page 541 F Water Supply Projects Otay Water District Planned Water Supply Projects Project Supply (AF) Rosarito Ocean Desalination Project 20,000- 50,000 Otay Mesa Lot 7 Groundwater Well 300 Water Authority Supplies Project 2015 2020 2025 2030 -2035 IID Water Transfer 100,000 190,000 200,000 200,000 ACC and CC Lining 80,200 80,200 80,200 80,200 Carlsbad Desalination 0 56,000 56,000 56,000 Total: 180,200 326,200 336,200 336,200 2015 -05 -26 Agenda Packet Page 542 Otay Water District Projected Balance of Supply and Demand L osarito Desalination Project not included, will be added to future supplies when a Water Purchase Agreement is approved by the OWD Board. urce: Table 8 of the Otay Ranch PA 12 Freeway Commercial WSA &V Report. Description FY 2015 FY 2020 FY 2025 FY 2030 FY 2035 Demands Otay WD Demands 44,883 53,768 63,811 70,669 77,171 Previous Water Authority Accelerated 570 570 570 570 570 Forecasted Growth Demands PA 12 Freeway Comm. Demands 173 173 173 173 173 Additional Conservation Target 0 (7,447) (13,996) (17,895) (20,557) Total Demand 45,626 47,064 50,558 53,517 57,357 Supplies Water Authority Supply 40,483 41,321 44,015 45,974 48,614 Water Authority Accelerated Forecast 743 743 743 743 743 Growth Increment Recycled Water Supply 4,400 5,000 5,800 6,800 8,000 Total Supply 45,626 47,064 50,558 53,517 57,357 Supply Surplus /(Deficit) 0 0 0 0 0 The 743 (570 +173) AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water uthority 2015 -05 -26 Agenda Packet Page 543 's 2010 UWMP. L osarito Desalination Project not included, will be added to future supplies when a Water Purchase Agreement is approved by the OWD Board. urce: Table 8 of the Otay Ranch PA 12 Freeway Commercial WSA &V Report. Description FY 2015 FY 2020 FY 2025 FY 2030 FY 2035 Demands Otay WD Demands 44,883 53,768 63,811 70,669 77,171 Previous Water Authority Accelerated 570 570 570 570 570 Forecasted Growth Demands PA 12 Freeway Comm. Demands 173 173 173 173 173 Additional Conservation Target 0 (7,447) (13,996) (17,895) (20,557) Total Demand 45,626 47,064 50,558 53,517 57,357 Supplies Water Authority Supply 40,483 41,321 44,015 45,974 48,614 Water Authority Accelerated Forecast 743 743 743 743 743 Growth Increment Recycled Water Supply 4,400 5,000 5,800 6,800 8,000 Total Supply 45,626 47,064 50,558 53,517 57,357 Supply Surplus /(Deficit) 0 0 0 0 0 The 743 (570 +173) AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water uthority 2015 -05 -26 Agenda Packet Page 543 PROJECTED & HISTORICAL POTABLE WATER FISCAL YEAR DEMANDS –4—Historical f Projected (2 010 UWMP] —*— Projected (2015 WFMP Update) 80600 70000 60000 LL LLI c� 50006 40000 30000 20006 1990 /\V*** 2000 2010 2020 2030 2040 2050 2060 YEAR 2015 -05 -26 Agenda Packet Page 544 CONCLUSION • Water demand and supply forecasts are included in the planning documents of Metropolitan Water District of Southern California, San Diego County Water Authority, and the Otay Water District. Actions necessary to develop the identified water supplies are documented. The Otay Ranch Planning Area 12 Freeway Commercial Project SB 610 & SB 221 WSA &V Report documents that sufficient water supplies are planned for and available over the next 20 years. The Board has met the intent of the SB 610 and SB 221 statutes. E 2015 -05 -26 Agenda Packet Page 545 I STAFF RECOMMENDATION That the Board of Directors approve Senate Bills 610 & 221 updated Water Supply Assessment & Verification Report dated February 2015 for the Otay Ranch Planning Area 12 Freeway Commercial Project 10 2015 -05 -26 Agenda Packet Page 546 I ip I I I CIA � +f1+ I n � 'r jt� r 1 '►I j i• ji fil }'i -fowpr C\ I' N w cn m a. d x u 0. !C C N V7 O V7 O N fit .y �^' }• OF to 0 -V - N&rfkl -cow --mom." `� c- ■ r •rte. _ - ; , -- - i - Gateway to otay Ranch t - — -.� --- - -- Town Center A Place to... W hether they choose to relit lim apartment or l)uy a home, rcsi- dents will he treated to � ,i urli(lue lk' ing environment stlr- rounded by inviting outdoor spaces and activity. F11111:1nced pedd'striarl routes provide connectiv- ity and Will erreour- age walking between the residences and 2015 -05 -26 Agenda Packet Otaurants, caw upping, -WA T� :�, tertain- Drive, Q ant, parks its shops, d schools. restau- rect links rants, and two Rapid beautiful RT) Sta� streetscape, i111), sev- will offer it 1()Cal WI, it unique hir, md hike urban experience routes give residents of shopping, dining and visitors al1kc and gathering with alternative modes of friends. The ground transportation to all floor commercial that the surrounding uses are envi�io �ned region has to offer. to include coffee L ire j b w+1 a U ,3na D()U- tiClue retail hobs fo�'uS- ing ctrl the deeds of the residents and the hotel guests. Additionally, �i d i rec:t con- rmC 1 iml to tilt= Otay Ranch "Fown Center ,y will allow people to take ad ntage Of it pleth&a of other shopping and dining options. 0 tay Ranch hotels have arrived; people visit- ing friends and family, or those in town on business, will have a place t o, .. stay that is close to all that Otay Ranch has to offer. Two hotels w)i a total R of 300 rooms will anchor to north - western ,portion Of the ❑reject and be a focal point with their vis- lblllty from South Bay Expressway and Olym- pic Park - way. Hotel x tests will f e find svlvs in a location that allows them to walk to the bark, enjoy a inner at a nearby r . au- rant, catch a movie or shop at the Otay Ranch `Down Cent,�,Y.r: t Agenda Packet • Tlie park will be the high- light of this mixed use community offering a variety of public places for picnics, communal gather- ing, and structured play. This highly amenitifed bark w i l be a statement facill. � ity that draws in not only residents of the immediate area, but also visiting Hoppers, otel guests pnd resi- f t" fits of the e ntire City. s central cation al- ws for the various land uses o all have park frontage and will pro- vide opportunities for special events, while its eft2hanced design will —W it to serve as the project's unify- ing link. ", - age 550 Residential (Live): Approximately 300 for sale multi- family residential units. These homes will be a combi- nation of 3 to 4 story town - homes and small lot detached homes exhibiting an urban character and quality architec- tural design. 2015 -05 -26 Agenda Packet (stay): Two four story hotels provide at least 300 rooms. The first hotel, a Marriott Residence Inn, is sched- uled for construction later this To BRT Station Ba, rL- 2015 -05 -26 Agenda Packet Public Park (Play): A highly amenitized urban place offers a variety of public spaces, both small and large, for picnics, communal gatherings; water features, and other recreational options. Commercial (Shop): Retail commercial uses will occu- py the ground floor of the apart- ment buildings that front on Town Center Drive. This 15,000 square feet will provide space for neighborhood serving restaurants and shops. 'Apartments (Live): Approximately 300 Tor- rent apartment units in 3 and 4 story buildings located just north of a Rapid (BRT) Station and integrated with mixed use commercial space. Page 552 � ■ • • ,mot � %' , / S■ � / F I I / ( %1 M A 11 ��III r I 1�711��r �R 4 r A �� 1 If Alft JIL -ion popor r i.FA f, • �.f �� + ' nie +s. FiE00 e PIZ X00 00 ** 46 4*.0 p sAVi ;s�� T 1 L. t � 3 •.e �� The location and land uses of the Project serve to set it as the gateway to the Otay Ranch Town Center and to enhance living, working, shopping, and transit op- tions in the area. Commer- cial uses are located so that they're visibile from South Bay Expressway and Town Center Drive to ensure their viability. Residential uses are located adjacent to the Otay Ranch Town Center and will be connected to Village 6 by the construc- tion of the BRT bridge; this allows access to schools, parks, shopping and transit all within a 1/. mile walk. ` wf rd Currently Approved Project: • 347,000 square feet of general commercial • Configured for large format, car oriented retail wit Fi surface parking �J �r 49, ' tK ti_ �'+' q. r id Proposed Project: • 215,000 - 230,000 square feet of general commercial including: - Two hotels with a total of 300 guestrooms - 15,000 - 30,000 square feet of general commercial in a mixed use format - 500 multifamily residential units • A two acre public park enhanced to the equivalent value of ap- proximately 4.7 acres s 610 West Ash Street, Suite 1500 San Diego, California 92101 � ' w Q ! rf Public Benefits: • Increase in annual revenue to the City of over $500,000 as compared to the currently ap- proved project • Provision of funding to cover regular public park maintenance • Dedication of right of way necessary for completion of the South Bay Bus Rapid Transit Line • Reduction of almost 5,900 daily trips (almost 50%) as compared to the currently approved project Contact: Nick Lee (619) 234 -4050 writ�Cn Cornmunica�-tonr 5/12/2015 • • . Mark Livag 598 Port Harwick Chula Vista, CA 919103 M. Salas, P. Bensoussan, P. Aguilar, J. McCann, S. Miesen 276 Fourth Avenue Chula Vista, CA 91910 Subject- Item #8 Consideration of amendments to the city's general plan and the Otay ranch general development plan, including a new development agreement involving portions of the Otay ranch freeway commercial planning area 12. Dear Mayor and City Council Members, I would be here in person today to discuss this item directly with you, but my father- in -Iaw is in the hospital having some surgery done and I need to be with my wife during this time. I have multiple concerns with this proposed change, but the foremost is the loss of what is the only area left in Chula Vista to be a destination shopping area that many other cities seem to be able to accomplish for their city's'. The city really needs such a place, both financially and for services for its residents, especially the ever growing eastern residence. I have attached some supporting documents that are either directly or derived from the planning packets submitted for the project for you to consider. Chula Vista should have place to shop like other cities. The incomes in the area show it can support this type of shopping area. Do not give up on this potential, because it will be lost forever. If it cannot be done on this site, it will never be done anywhere in the city. Sincerely, Mark Liva "Very Concerned Citizen" PS I would propose that staff prepare a SWOT analysis on all changes so that both sides of an item get equal consideration in their presentation. This will reduce the perception that City Staff are beholden to the developers or that they already concluded how it should be decided and there is little choice. 2015 -05 -26 Agenda Packet Page 556 SWOT Analysis of Otay Town Center Project Strengths • Proposal is ready now. • Includes 2 acre park with maintenance not the responsibility of City. • Includes two new hotels. Opportunities • $2.5 net revenue to the City annually. • Reduction in traffic. Weakness • This is last shopping area in the city to be a destination shopping center such as Plaza Bonita, Parkway Plaza, Horton Plaza, Mission Valley, Fashion Valley, North County Fair, Carlsbad Factory Stores, and San Ysidro Factory Stores. • Assumes hotels can only be developed if residential is allowed in the adjacent properties. • There will no trouble long -term in funding maintenance. What are the guarantees the funding mechanism will stand test of time. • Potential issues with parking in the shopping center for non- shoppers • Under service automotive retail in the area which was one of elements within the General Plan. • Market analysis did not include automotive, a clear category in the General Plan for this property. Threats • $3.5M net revenue to the City annually would lost. • $395M of leakage (Demand exceed Supply) of retail dollars not captured or serviced within the 4 mile radius of the project. (note $93k annual median income in the same area as compared to $61k for the City of Chula Vista and the County which support this analysis) • Ridership of MTS would be lessened without a destination shopping area. Could hamper financial feasibility of the route. • The Millennium Project not as attractive of spot not being close to a destination shopping area. • Otay Town Center reduced to only a local shopping center 2015 -05 -26 Agenda Packet Page 557 City of Chula Vista STRATEGIC PLAN ANNUAL REPORT About the Plan - In 2013 the City prepared a Strategic Plan. The goals are broad statements of what we are striving for in delivering services to our community. The five overarching goals are: Operational Excellence Economic Vitality Healthy Community Strong and Secure Neighborhoods Connected Community The Plan identifies strategies and initiatives to support the core goals. Implementation of these strategies and initiatives is how we achieve our shared vision of a vibrant and sustainable quality of life for Chula Vista residents and businesses. One of the key provisions of the Strategic Plan is for review and feedback on an annual basis. Reporting out to City Council, the community, and staff on our progress is an essential component of accountability. Summary of the year - This report shares some highlights from the 2013 -2014 fiscal year. The City continues to provide stellar services every day to the community, and achieve significant advancements toward long term goals. Looking back on the last fiscal year, there are some common themes that stand out. Partnerships - The City works with others to accomplish shared goals. The City has been able to increase or enhance service delivery by working with other agencies, businesses, nonprofit organizations, and community groups. Community engagement - This community is proud and participates in making it even better. Our citizens are contributing in the betterment of this community whether it is through volunteering, attending public meetings or joining in a community celebration. Innovation in process and technology - The City is improving service delivery through process improvement tools and technology. We are not afraid to ask if there is a better way of doing things. Looking Forward - A successful year does not mean that our work is done. The Annual Report process gives us the ability to look back in order to plan ahead for the upcoming fiscal year (2015/2016). Evaluation of past performance helps identify necessary changes in initiatives and recommendations for resource allocations. 2015 -05 -26 Agenda Packet Page 558 N O N U7 O ui N va a w ro >v x co TABLE A -4 RETAIL SURPLUS /(LEAKAGE) - TRADE AREA - 4 -MILE RING OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Ind_ ustry I. Retail Surplus General Merchandise Stores Electronics & Appliance Stores Subtotal Retail Surplus 11. Retail Leakage Building Materials, Garden Equipment & Supply Stores Sporting Goods, Hobby, Musical Instrument Stores Clothing & Clothing Accessories Stores Furniture & Home Furnishing Stores Miscellaneous Store Retailers Food Services & Drinking Places Health & Personal Care Stores Food & Beverage Stores Subtotal Retail Leakage III. I Total 131 Per C; (1) Reflects the expected amount spent by consumers at retail establishments. (2) Reflects sales to consumers by retail establishments. Sales to businesses are excluded. (3) Excludes gasoline stations, non -store retailers, and motor vehicle & Parts dealers. Source: esri, 2014 Prepared by: Keyser Marston AssOCIates, Inc. IV rilename 1:\Chula Vista — Otay Ranch 12 v6;3/12/2015;1ag SD rD va N N e Trade Area - 4 -Mile Ring Demand Supply Retail Retail Ex enditurel i11 laftiaqmgg (2) Sur lus Leaka e $231,091,000 $352,713,000 $121,622,000 3 833 000 3 842 000 54 009 000 $270,924,000 $446,555,000 $175,631,000 $53,159,000 $48,769,000 ($4,390,000) $37,873,000 $21,680,000 ($16,193,000) $111,761,000 $88,385,000 ($23,376,000) $39,881,000 $7,399,000 ($32,482,000) $48,048,000 $24,594,000 ($23,454,000) $182,409,000 $113,598,000 ($68,811,000) $121,670,000 $70,280,000 ($51,390,000) 74 860 000 99 374 000 175 486 000 $869,661,000 $474,079,000 ($395,582,000) $1,140,585,000 $8,132 $920,634,000 ($219,9S1,OOo) - 19.3% Leakage $6,564 lei SAat (1) Reflects the expected amount spent by consumers at retail establishments. (2) Reflects sales to consumers by retail establishments. Sales to businesses are excluded. (3) Excludes gasoline stations, non -store retailers, and motor vehicle & Parts dealers. Source: esri, 2014 Prepared by: Keyser Marston AssOCIates, Inc. IV rilename 1:\Chula Vista — Otay Ranch 12 v6;3/12/2015;1ag SD rD va N N e N O N U7 O U7 N a o� a w ro w va N O O TABLE A -3 COMPARATIVE INCOME TRENDS, 2014 -2019 OTAY RANCH PA 12 SUN RANCH CAPITAL PARTNERS Average Annual Growth 2014-2019 I. Trade Area - 4 -Mile Ring Median Household Income Per Capita Income II. City of Chula Vista Median Household Income Per Capita Income Ill. County of San Diego Median Household Income Per Capita Income IV. State of California Median Household income Per Capita Income Source: esri Prepared by: Keyser Marston Associates, Inc. Filename is \Chula Vista_Otay Ranch 12 v6;3/12/2015;1ag 2014 2019 Absolute Percent $92,883 $104,272 $2,278 2.3% $32,281 $37,352 $1,014 3.0% $61,471 $71,656 $2,037 3.1% $25,415 $29,324 $782 2.9% $60,904 $ 72,109 $2,241 3.4% $30,554 $35,613 $1,012 3.1% $58,469 $68,212 $1,949 3.1% $28,657 $33,354 $939 3.1% ., Not in Chula Vista today Sam's Club with a gas station Home Goods Factory Stores Adidas Ann Taylor Factory Store Barneys New York Warehouse BCBG Max Azria Bebe Bose Brooks Brothers Factory Store Calvin Klein Chico's Coach Converse Destination Maternity Outlet DKNY Elie Tahari G.H. Bass & Co. Gap Factory Store Guess Factory Store izod Jockey Joe's Jeans Jones New York Kate Spade New York Lacoste Lucky Brand Michael Kors Nautica Nike Factory Store Oakley Vault PacSun Polo Ralph Lauren Factory Store Puma Reebok Theory Tommy Hilfiger Tommy Bahamas True Religion Brand Jeans Van Heusen Vince Wilsons Leather Zumiez Dick's Sporting Goods Sports Chalet Cost Plus Nordstrom Nordstrom Rack Restaurants Johnny Rockets Buca di Beppo Red Robbin Claim Jumper Apple Bee's Phil's Barbecue Ruby's Dinner Wahoo's Fish Tacos Sonic Drive In Dairy Queen Outback Steakhouse The Habit Burger Grill Forever 21 Pottery Barn Crate and Barrel William Sonoma Dixieline Brighton Collectibles Things Remembered Golfsmith The Container Store Motherhood Maternity Needed in the East side of the City Courtney Tires Gas Station with automotive repair Car Wash 2015 -05 -26 Agenda Packet Page 561 CITY OF CHULA VISTA File #: 15 -0192, Item #: 11. City of Chula Vista Staff Report PRESENTATION OF THE CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 2015/2016 RESOLUTION OF THE CITY COUNCIL /SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY /HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2015/2016 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON THE BUDGET AND THEIR FINAL CONSIDERATION AND BUDGET ADOPTION RECOMMENDED ACTION Council /Agency /Authority hear the presentation, provide comments and proposed changes. If Council is prepared to approve the budget, with or without modifications, as the City Council Proposed Budget, the City Council /Successor Agency /Housing Authority may adopt a resolution in accordance with the heading set forth above. City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 1 Printed on 5/21/2015 powered by Legistar Page 562 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL /SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ AND HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2015 -16 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON THE BUDGET AND THEIR FINAL CONSIDERATION AND BUDGET ADOPTION By minutes resolution, the City Council, Successor Agency to the Redevelopment Agency and Housing Authority accepted the City Manager's report, approved the City Manager's report, approved the City Manager's proposed budgets, in the form presented, as the their proposed budgets, and set the public hearing on the budget for June 9, 2015, at 5:00 p.m, in City Council Chambers. Presented by Maria Kachadoorian Deputy City Manager Approved as to form by Glen R. Googins City Attorney 2015 -05 -26 Agenda Packet Page 563 CITY OF j;H!jAX!gA L A Page 564 2015 -05 -26 Agenda Packet Page 565 PATRICIA AGUILAIR COUNCILMEMBER f 444 CITY OF CHULA VISTA MARY CASILLAS SALAS MAYOR PAMELA BENSOUSSAN JOHN MCCANN COUNCILMEMBER COUNCILMEMBER GARY HALBERT City Manager DONNA NORRIS City Clerk GLEN R. GOOGINS City Attorney STEVE MIESEN COUNCILMEMBER 2015 -05 -26 Agenda Packet Page 566 2015 -05 -26 Agenda Packet Page 567 m f/- �^ �r CITY OF CHULA VISTA ADMINISTRATION Gary Halbert City Manager Kelley Bacon Deputy City Manager Maria Kachadoorian Deputy City Manager /Chief Financial Officer 1111 .1I[I1 IM'Mi Kelly Broughton Director of Development Services Eric Crockett Interim Director of Economic Development Jim Geering Fire Chief Courtney Barrett Director of Human Resources Edward Chew Director of Information Technology Services Betty Waznis Director of Library David Bejarano Chief of Police Richard Hopkins Director of Public Works Kristi McClure Huckaby Director of Recreation 2015 -05 -26 Agenda Packet Page 568 2015 -05 -26 Agenda Packet Page 569 CITY Or CHU A VISTA ORGANIZATION CHART Citizen Advisory ' • ' I Citizen Advisory Commissions Citv Cou-rcil Boards City Manager City At City Clerk Deputy City Manager I Deputy City Manager Police Human Resources Library Public Works Fire Information & Recreation Development Technology Svcs Services 4 Animal Care Housing Facility Authority Successor Agency to the Redevelopment Agency Finance Economic Development Communications 2015 -05 -26 Agenda Packet Page 570 2015 -05 -26 Agenda Packet Page 571 44 Table of Contents BUDGET MESSAGE 1 Letter from the City Manager 3 Budget Process 7 Strategic Plan 9 Economic Overview 13 All Funds Summary 17 Summary of Staffing Changes 25 GENERAL FUND SUMMARY 37 General Fund Expenditure Summary 39 General Fund Revenue Summary 51 General Fund Net Cost 61 Department Summary Reports 63 DEVELOPMENT SERVICES FUND 81 SUCCESOR AGENCY AND HOUSING FUNDS 89 Successor Agency Funds 91 Housing Authority Funds 99 SEWER FUNDS 103 TRANSIT FUNDS 115 FLEET FUND 123 CAPITAL PROJECTS FUNDS 131 DEBT SERVICE FUNDS 143 2015 -05 -26 Agenda Packet Page 572 OTHER FUNDS PROGRAM SUMMARY 179 CAPITAL IMPROVEMENT PROGRAM (CIP) 233 Capital Improvement Program Summary 235 CIP Revenue Summary 237 CIP Expenditure Summary 241 Capital Improvement Projects Summary 249 SUMMARY TABLES 253 Fund Appropriations by Department and Expenditure Category 255 Schedule of Revenues 261 Fund Balance Projections 277 Schedule of Interfund Transfers 287 Authorized Positions by Department 295 APPENDIX 309 Fiscal Policies 311 Investment Policies 317 Debt Administration 325 GANN Appropriations Limit 329 Legal Debt Margin 331 Accounting Systems and Budgetary Control 333 List of Acronyms 335 Glossary 339 Chula Vista at a Glance 343 2015 -05 -26 Agenda Packet Page 573 The budget document is organized in a manner to facilitate a general understanding of the City's fiscal status, to present management's assessment of major issues and, finally, to present the plan for allocating resources to address those issues during the coming fiscal year. The budget document is organized as follows: Budget Message, General Fund Summary, Other Funds, Program Summary, Capital Improvement Program, Summary Tables, and Appendix. BUDGET MESSAGE This section provides an executive summary of the City's all funds budget, summarizes the region's economic outlook, and highlights significant budgetary changes for fiscal year 2015 -16. It also highlights the sources and uses of funds and provides information on the General Fund reserves. A summary of staffing changes is provided at the end of this section. GENERAL FUND The General Fund budget funds the day -to -day operations of most city services. This section of the document provides an overview of General Fund revenues and expenditures, staffing changes, and budgetary trends. This section is followed by Department Summary reports that include departmental mission statements and operating budgets for each General Fund department. OTHER FUNDS In order to facilitate understanding of the different funding sources, this portion of the document has been organized into the following categories: Development Services Fund, Redevelopment, Successor Agency to the Redevelopment Agency, and Housing funds, Sewer Funds, Transit Funds, Fleet Fund, Capital Project Funds, Debt Service Funds, and Other Funds. Detailed descriptions, funding and staffing levels are provided for each fund. Due to various legal restrictions these funds are limited in their uses and generally cannot be applied to fund day -to -day operations such as Police and Fire services. PROGRAM SUMMARY REPORT This report is intended to identify key functions in each department and provide a management assessment of the current level of service, using Continuous Document Guide Improvement Visual Controls for ease of reference. The visual categories assist the reader in determining the status of the current level of service for each function of the department. CAPITAL IMPROVEMENT PROGRAM This section provides an overview of the City's Capital Improvement Program for the coming fiscal year. The Capital Improvement Program accounts for the acquisition, rehabilitation, or construction of major capital facilities, infrastructure, or equipment. More detailed information about each capital project, including project area maps, project status, expenditures to date, current year appropriations, and future funding, can be found in the Capital Improvement Program budget document. SUMMARY TABLES AND APPENDIX The summary tables provide a quick way to view budget allocations by department (or fund) and expenditure category, revenues by fund and type, projected fund balances by fund, and Council authorized positions by department. The appendix contains supplementary information on a variety of topics including an overview of the budget development process along with relevant timelines and milestones, fiscal and investment policies, debt administration, and a glossary of finance and budget terms. 2015 -05 -26 Agenda Packet Page 574 2015 -05 -26 Agenda Packet Page 575 2015 -05 -26 Agenda Packet Page 576 2015 -05 -26 Agenda Packet Page 577 BUDGET MESSAGE Letter from the City Manager Budget Process Strategic Plan Economic Overview All Funds Summary Summary of Staffing Changes 2015 -05 -26 Agenda Packet Page 578 2015 -05 -26 Agenda Packet Page 579 CITY OF CHULAVESTA May 21, 2015 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL I am pleased to submit for your consideration the operating budget and capital improvement program for fiscal year 2015 -16. The combined budget for all City funds totals $294.5 million. This amount includes a General Fund operating budget of $139.2 million and a Capital Improvement Program (CIP) budget of $27.7 million. The General Fund presented in this document is balanced and includes funding for programs supported by the City Council in prior fiscal years. The City's financial outlook is more stable than it has been in recent years. Positive revenue growth, implementation of efficiency measures, the cooperation of City labor groups, and strong Council leadership have helped stabilize the City's financial base. The City continues to seek new ways maximize limited resources to deliver high quality services to our community. In preparing the General Fund budget for fiscal year 2015 -16, staff focused on the following budget development goals: • Develop a balanced budget using fiscally responsible financial practices • Maintain service levels adopted in the Council's 2014 -15 budget • Fund the highest level of municipal services possible based on available resources • Make significant progress on key programs and projects in support of the City's Strategic Plan • Continue growing Chula Vista's financial base • Continue to improve efficiency and effectiveness of government services through the implementation of Continuous Improvement principles The City's General Fund reflects positive growth in most major revenue sources. This modest growth in projected revenues allowed for a limited number of funding enhancements. It is important to note that OFFICE OF THE CITY MANAGER departments identified millions of dollars in funding requests in order to improve service demands and only a small portion of those requests were improved for inclusion in the fiscal year 2016 proposed budget. Budget Highlights The following budget enhancements that support the City's Strategic Goals are included in the fiscal year 2016 budget: • Connected Community o Otay Ranch Library and the Hub — Added 1.0 Senior Librarian to ensure stable and enhanced hours of operation at the Otay Ranch Library and the Hub. o Civic Center Library /Museum — Added $75,000 in funding to match the Mayor's and Department's fund raising efforts towards renovations at the Civic Center Library auditorium. o Cultural Arts Manager — This new position will manage the City's cultural arts programs and take the lead in developing and implementing the City's Cultural Arts Master Plan. • Economic Vitality • Special Events - Included $40,000 in funding to support three Citywide special events such as Starlight Parade and Harbor Days • Economic Development — Converted hourly staffing to a new Project Coordinator position to support Economic Development's efforts to assist our local business community and to attract investment and jobs. 2015 -05 -26 Agenda Packet Page 580 rh»>-a Victim Dv- ,m",mCAA 3 dget • Health Community o Storm Drain Maintenance — Added 1.0 Maintenance Worker to provide staffing for the operation of the third storm drain vactor. This will help address new NPDES regulations that increased inspections and cleaning requirements of storm drain pipes and catch basins to reduce pollutants to the bay. • Strong and Secure Neighborhoods o Equipment Replacement — Added $330,000 for the replacement of the highest priority vehicles; includes two vehicles for Fire, 1 vehicle for Police, and 1 vehicle for Public Works. o Tree Trimming - Increased funding for tree trimming by $100,000 for the removal of dead and dying trees as identified in the Asset Management program. This funding will also allow the City to address some high risk tree trimming requests. • Operational Excellence Committee will have a positive impact in ensuring a bright future for Chula Vista. In the coming fiscal year, staff will also focus on the implementation of Smart City concepts which focus on the use of technology to improve and streamline service delivery and communications with our residents. Bayfront — The Chula Vista Bayfront Master Plan is Southern California's largest development opportunity at 535 acres. The Bayfront will offer panoramic views from Baja California to San Diego. With proximity to both Baja California and San Diego, the Bayfront will supply a unique bi- cultural tourist opportunity for South San Diego County. The Bayfront project includes the future development of 3,100 new hotel rooms, 415,000 square feet of conference meeting space, 1,500 new high -rise residential units and 225,000 square feet of waterfront visitor serving retail uses and 750,000 square feet of new office and commercial space. The following projects are being pursued to implement the Chula Vista Bayfront Master Plan: • Bayfront Hotel and Conference Center — in negotiations for an option to lease with the RIDA Development Corporation for the development of a hotel and conference center. o Training and Continuous Improvement - • Residential Development — in negotiations for a Added approximately $70,000 in new development agreement with Pacifica Companies funding for Citywide training for for development of residential units, hotel rooms, Leadership training and the Continuous and mixed commercial space. Improvement Academy. o Computer Replacement - The budget includes a $60,000 increase for the lease of an additional 200 computers in year 2 of a 4 year plan to modernize and standardize the City's aging computers. o IFAS Upgrade - includes approximately $160,000 in funding to transition the City's accounting system to a newer version that will improve efficiency and user interface. Major Projects and the Future The City has a number of major projects that will help shape the future of the City of Chula Vista. These unique projects will help strengthen Chula Vista's economic base, create new jobs, and attract new visitors. The Bayfront and University projects as well as the ongoing negotiations with the U.S. Olympic University and Innovation District — The City of Chula Vista is a leader in innovation and is committed to attracting a future four -year University and Innovation District. The proposed educational and business format is being designed to engage students, faculty and corporations in the creation and application of knowledge that will spur innovative economic, social, and cultural development. In the coming fiscal year, staff will continue working towards this important goal. Staff is seeking to secure a development partner for the University and Innovation District by the end of fiscal year 2016. Olympic Training Center - The USOC and the City have entered into a joint agreement with consultant JMI Sports to analyze the feasibility of an operations transfer, including determining alternative compatible uses for the facility. The USOC is seeking to change their operating model and focus more of their 2015 -05 -26 Agenda Packet Page 581 resources on sustained competitive excellence and not in operating and maintaining buildings and fields. It is both the USOC and the City's desire that we be able to preserve and improve on the great sport legacy that is the Chula Vista Olympic Training Center. The City, JMI representatives and USOC staff are continuing to work on a memorandum of understanding for the City's takeover and operation of the facility. The focus is to have the facility remain as much as possible an elite Olympic training center with events and other activities that would be compatible uses of the facility. Smart City — Chula is making strides as a Smart City to provide businesses, institutions, and residents with access to state of the art technology and a communications system that empowers them with tools to improve their quality of life, build their prosperity, and provide the most efficient government to our citizens. The City is working to assemble a communications infrastructure system and provide a gigabyte level of broadband that will drive the economic, healthcare, education, and innovation sectors to levels that distinguish Chula Vista as a national Smart City leader. ACKNOWLEDGEMENT Staff developed a budget for fiscal year 2015 -16 that is both responsive to community needs and continues to fund core services most important to our community. City staff is the key component in delivering high quality municipal services to our residents. I am proud of the men and women who work for the City of Chula. They work tirelessly to deliver the best services we can deliver to our community with the resources we have. I would like to thank the City Council and Executive Team for their leadership and support. Finally, I would like to recognize the Finance Department for their exceptional work in once again preparing a balanced budget using good financial management practices. Respectfully, Gary Halbert City Manager 2015 -05 -26 Agenda Packet Page 582 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 583 The City of Chula Vista's budget is created in conjunction with City Council, City staff, and City residents. The budget process begins each year with development of the preliminary base budget and is completed with the City Council adoption of the budget in June. The fiscal year 2015 -16 budget cycle began in January 2015 with the development of a preliminary base budget by the Finance Department's Budget and Analysis staff. The base budget accounts for the normal operating costs of the City. Through April, Finance worked with departments to refine the base budgets and incorporate departmental changes to align the budgets with current department operations. The budget process provided Departments the opportunity to recommended budget adjustments based on department operational requests and /or one- time funding requests. Requests are reviewed by City Administration and are included in the City Manager's Proposed Budget. While Finance staff was developing the operating budget, Public Works staff worked to develop and finalize the Capital Improvement Program (CIP) budget during this same time frame. On March 3rd, a public hearing was held for City Council to consider and adopt the TransNet Local Street Improvement Program of projects for fiscal years 2015 -16 through 2019 -20. And on April 2nd, staff held a Council Workshop on Infrastructure. Finance will present the City Council with a balanced General Fund budget on May 26, 2015. The City Council will then set a public hearing date prior to Council taking action on the adoption of the budget. Copies of the proposed budget will be made available for public review in the Office of the City Clerk, City libraries, and the City's website at least 10 days prior to the public hearing. As set forth in the City Charter, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members. Throughout Budget Process the year, the Finance Department provides the City Council with quarterly financial status reports comparing expenditure and revenue projections to budgeted amounts, highlighting any variances and recommending corrective actions as necessary. BUDGET DEVELOPMENT MILESTONES • March 3, 2015 Public hearing to adopt TransNet Local Street Improvement Program • April 2, 2015 Infrastructure Workshop • May 19 and May 21, 2015 Public workshops to provide overview of the City Manager's Proposed Budget • May 21, 2014 Budget Document submitted to City Council As required by City Charter, the City Manager's proposed budget was submitted to the City Council at least thirty -five days prior to the beginning of the fiscal year. Copies of the proposed budget are available for public review in the Office of the City Clerk, City libraries, as well as on the City's website. • May 26, 2015 Presentation to City Council of the Fiscal Year 2015- 2016 City Manager Proposed Budget and Council consideration and acceptance of City Budget. The City Council's Proposed Budget will be made available for public review. • June 2015 A public hearing will be held before the City Council considers the adoption of the budget in order to give residents an additional opportunity to participate in the budget process. In compliance with the City Charter, a notice of this meeting will be published in the local newspaper at least ten (10) days prior to the public hearing. Adoption of the budget requires the affirmative votes of at least three members of the Council. 2015 -05 -26 Agenda Packet Page 584 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 585 The City of Chula Vista is implementing a Citywide Strategic Plan. This plan is an annual cycle that encourages focused, meaningful service delivery to benefit all of Chula Vista. It is a comprehensive framework that ensures: priorities set by the City Council are clear to all employees, goals are laid out that respond to priorities, objectives are achieved that meet the goals, and that the City government is accountable to meeting community needs. General Process Strategic Plan - Begins with a long -range Strategic Plan that identifies where we want to get to. This ensures we are all working in same direction toward clearly defined goals Annual Plan - Development of a short -term annual plan that identifies Initiatives for the next year in support of achieving the strategic goals. Resources are aligned with annual initiatives through service levels identified in the budget process. This step is where we align and Strategic Plan link the city's initiatives and resources in pursuit of goals. Performance Measurement - Based on the annual plan, performance measurements are created to track achievement toward service levels /Initiatives identified through the annual plan. When implemented at the departmental and individual performance goal levels, everyone understands how they are contributing to City goals. Tracking - Verify progress towards goals. Constant monitoring allows us to evaluate progress and make any necessary corrections. Report Out - Reporting out on our progress against identified goals is an essential component of accountability. Evaluation of past performance also helps identify necessary changes in initiatives /resource allocation /measurements. The following chart reflects the annual Strategic Planning Update Process. Strategic Plan Process z ��W` "'� 2015 -05 -26 Agenda Packet Page 586 HOW DID WE GET HERE A staff committee, which included representatives from every department, was formed to assist in the creation and oversight of the Plan. They met regularly between November, 2012 and March, 2013 to create the Plan; their work included developing the long- term strategies and annual initiatives. The Strategic Plan was presented to nearly all City Boards and Commissions. The final Plan was presented to the City Council with the fiscal year budget in May, 2013. The committee now meets periodically to review performance on the objectives, recommend any needed adjustments and check in on initiatives. The feedback loop is continuous, not a start and stop process. The "Plan, Do, Check, Act" philosophy is a foundation of Continuous Improvement. Reporting out to City Council and staff on our progress against identified goals is an essential component of accountability. Evaluation of past performance also helps identify necessary changes in initiatives and recommendations for resource allocations. The most recent report -out to City Council was February 2015. Strategic Goals and Initiatives @OPERATIONAL EXCELLENCE Collaborate with Residents and businesses to provide responsive and responsible public service by implementing effective and efficient operations. • Uphold a commitment to Fiscal Health Establishing a financially resilient City is a long- term goal that can be reached by first stabilizing the City's financial condition, then working towards financially sustainability, and finally establishing an organization that is financially resilient. Financial resiliency better positions the City to withstand future economic downturns with minimal impacts to service levels. • Develop a Long Term Financial Plan • Excel in service delivery by continuously improving Cities by their very definition are service delivery organizations. Many of these services are critical to the well -being of the citizens, but all city services enhance residents' "quality of life ". The City of Chula Vista is committed to maximizing its service delivery through continually looking to eliminate waste in the processes of service delivery and maximizing the value of those services to our customers. • Implement Continuous Improvement efforts throughout the organization • Leverage new and emerging technology to provide efficient, effective and secure Information Technology solutions • Retain and attract quality employees • Ensure interaction with the City is a positive experience The City of Chula Vista provides services to a diverse customer base. They rely on the City to perform those services in a cost effective and quality manner. The City of Chula Vista strives to make the interaction of service delivery a positive experience in which our customers can have confidence that they are valued. • Foster public trust through an open and ethical government • Provide quality customer service 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. • Provide policies, planning, infrastructure, and services that are fundamental to an economically strong, vibrant city A strong, vibrant city relies on a foundation of forward looking decisions and quality infrastructure that support education, high quality jobs, and well - balanced livable communities. The City has made great progress in several long -term major development projects. These significant projects are vital to revitalizing the City. • Implement the Bayfront Master Plan • Foster opportunities for investment in Western Chula Vista • Promote and support development of quality master - planned communities • Plan and implement the University Park 2015 -05 -26 Agenda Packet Page 587 and Research Center • Promote an environment for residents and businesses to prosper The City wants to strengthen and diversify the City's economy by supporting existing local businesses as well as identifying and recruiting new industries and businesses. We want to encourage opportunities for businesses and residents through quality job creation. • Implement strategies that build prosperity and quality employment opportunities for existing businesses • Identify and recruit complementary businesses that provide quality employment and expand the goods and services available to residents �r 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. • Support an environment that fosters health & wellness The City will encourage residents to choose healthy lifestyles by promoting and facilitating healthy options in our community and make it easier for residents to lead healthy lives. The City will promote policies and programs that enhance the well -being of residents. We are also committed to connecting residents in need with critical services that increase their potential for wellness and self- sufficiency. • Implement policies and programs that support a healthy community • Develop and implement strategies and programs that restore and protect natural resources and promote sustainability Promote responsible development and land use decisions that benefit current and future residents. The City is committed to protecting and promoting the sustainability of natural resources through innovative programs and policies. We will continue to show leadership in the area of climate change. • Design and implement innovative environmental & conservation programs • Update and implement the Climate Action Plan • Provide parks, open spaces, outdoor experiences, libraries and recreational opportunities that residents can enjoy The City is supporting residents in choosing healthy lifestyles. Essential to a healthy community is the community infrastructure the City implements through libraries, parks, trails, and other recreational areas where residents can be active. • Plan, construct, maintain, and operate community and neighborhood facilities • Preserve and restore City Infrastructure through the Asset Management Program (AMP). ft STRONG AND SECURE NEIGHBORHOODS Create and maintain safe and appealing neighborhoods where people choose to shop, work, play and stay. • Ensure a sustainable and well maintained infrastructure to provide safe and appealing communities to live, work, and play One of the key functions of city government is to provide citizens and businesses a safe environment to live, work, play and conduct business on a daily basis. As such, the provision and maintenance of public infrastructure is vital to the quality of life for the residents. Ensuring that the homes we live in, the businesses we frequent and the roads we drive on are safe, is key to attracting home buyers, businesses and visitors to our community. • Preserve and restore City Infrastructure through the Asset Management Program (AMP). • Provide comprehensive plan review and inspection services to ensure safety and code compliance • Enhance prevention efforts and prepare communities for natural disasters and other emergencies 2015 -05 -26 Agenda Packet Page 588 Cities provide public safety programs which include various prevention and emergency preparedness efforts. Prevention efforts are designed to help mitigate issues before they become a problem through thorough analysis of problems, enforcement of various codes and laws, and educational efforts to help residents improve their safety. Preparedness efforts are designed to ensure that the City and its residents are ready to respond to, survive and recover from a multitude of emergencies. • Maintain a responsive Emergency Management Program • Continue and enhance analysis led policing. • Increase the public's perception of safety. • Promote safety and readiness through community education and engagement. • Ensure adequate emergency response and post emergency recovery services to our community The citizens of Chula Vista expect that the City's public safety providers will respond to emergency calls for service quickly, with adequately staffed, equipped and trained personnel to carry out the duties for which they are assigned. Additionally, the City wants to provide adequate follow -up services to help recover from emergencies. • Provide and support an efficient and effective Advanced Life Support Program. • Restore and enhance public safety service capacity. *CONNECTED COMMUNITY Promote diverse opportunities that connect community and foster civic pride through comprehensive communication strategies, and cultural, educational & recreational programming. • Encourage residents to engage in civic activities A key component to a connected community is to have citizens engaged with their government and each other. The City will create a communication strategic plan to better inform the public and staff. Additionally, the City wants to create opportunities for residents to be engaged within their community through such mechanisms as ■ volunteer opportunities or serving on a Board or Commission. • Implement Marketing and Communications Program • Foster an environment of community engagement • Provide opportunities that enrich the community's quality of life The City can contribute to a connected community by having ample opportunities to have citizens to interact with each other. The level of civic pride is also increased when the City can enrich lives with quality programming. Toward that end the City will promote culture, art, and community connections. As much as possible the City will cultivate and promote partnerships that expand and improve services. • Provide services /programs responsive to residents' priorities 2015 -05 -26 Agenda Packet Page 589 This section of the budget document identifies and outlines economic indicators that impact revenue forecasts at the local level. Several sources are used to forecast City revenues using national, state and local area economic trends. Sources include: the UCLA Anderson Forecast (National and State), U.S. Department of Commerce (National), California Employment Development Department (National, State, and Local), California Department of Finance (State and Local), and the University of San Diego Index of Leading Economic Indicators (San Diego region). NATIONAL In its first quarter report the UCLA Anderson Forecast characterizes the .� U.S. economy as "an island of stability in a very volatile world." The implication is that the U.S. is still on track for 3% GDP growth for the next two years, despite slow growth and currency devaluations throughout much of the rest of the developed world. Payroll employment is expected to increase at a 250,000 - per -month pace and the national unemployment rate is projected to hit 5% by year's end. While the U.S. economy appears to be stable at this time, UCLA Anderson Forecast Senior Economist David Shulman writes that a number of nations' central banks are involved in a series of "competitive devaluations" in an attempt to export their economic weakness to the rest of the world. According to Shulman, the Unites States initiated the phenomenon in 2010; the value of U.S. dollars has risen 16% from the third quarter of 2014 through the first quarter of 2015. Shulman says that for the world economy to thrive as a result of such devaluations, they must ignite global growth. Shulman goes on to point out that most of the world's major economies are mired at or near zero growth leaving the U.S. economy as an exception for any real growth potential. The forecast further calls for inflation to rise above the 2% level once the economy works its way out the temporary drop in oil prices. Interest rates are expected to rise as the Fed begins a gradual tightening process of the nation's money supply in June. 44 Economic Overview Real Gross Domestic Product: Percent Change from Preceding Period 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 2012Q1 2013Q1 20 Q1 2015Q1 -2.0 -3.0 Source: Bureau of Economic Analysis, U.S. Department of Commerce CALIFORNIA In the California report of the UCLA Anderson Forecast report, Senior Economist Jerry Nickelsburg predicts continued steady gains in employment through 2017. He bases his forecast on the impact the increase in U.S. growth rates due to construction, automobiles, and business investment, as well as higher consumer demand, will continue to have on our local economy. Nickelsburg expects this impact will also benefit the state' unemployment situation as he forecasts a steady decrease in the state's unemployment rate over the next three years. The estimate for the 2015 total employment growth is 2.4 %, and 2.2% for 2016 and 1.5% for 2017. Payrolls will grow at about the same rate during the next three years. Real personal income growth is estimated to be 4.2% in 2015 and forecast to be 4.6% and 3.7% in 2016 and 2017, respectively. The unemployment rate will hover around 6.5% through the balance of 2015. Unemployment is projected to fall through 2016 and will average approximately 5.5 %, which is a slight decrease from Anderson's last forecast. In 2017, an unemployment rate of approximately 5.1% is forecast, essentially the same as in the nation. Overall, Nickelsburg estimates that the State's employment performance will slightly exceed the nation as jobs are expected to be created across all sectors of the economy. Nikesburg indicates that a 2015 -05 -26 Agenda Packet Page 590 possible downturn in housing as a factor affecting employment in this sector as the main reason for the State's economy to under - perform over the forecast period. • COUNTY The County's economic performance appears to be gaining momentum as University of San Diego's Index of Leading Economic Indicators for San Diego County rose 1.3 percent in March. It was the third straight strong gain for the USD Index and the third month in a row where all six components were positive. As was the case in the two previous months, initial claims for unemployment insurance, help wanted advertising, and building permits led the way with sharp gains, while consumer confidence, local stock prices, and the outlook for the national economy were up more modestly. February's increase was the tenth advance in a row for the USD Index, and the gains have been large in four of the previous five months. This signals strong growth in the local economy through the rest of the year and possibly into early 2016. San Diego is mirroring what is happening at the state level. The major developments in the March 2015 index were as follows: • Residential units authorized by building permits were up significantly for the third consecutive month. But because permits were weak at the end of 2014, the year- over -year quarterly comparison was only modest. Residential units authorized were up only 1.5 percent in the first quarter compared to the year before. Single- family permits led the way with a gain of 18.6 percent, while multi - family units were down 7.2 percent. Such was not the case for the labor market variables, both of which have been positive for a significant consecutive measurement periods. • A total of 42,457 initial claims for unemployment insurance were filed in the first quarter of 2015, which was down 29 percent from the nearly 60,000 initial claims filed in the first quarter of 2014. Online help wanted advertising increased from almost 128,000 for the first quarter of 2014 to more than 150,000 this year, a gain of nearly 18 percent. The net result was that the seasonally adjusted local unemployment rate fell to 5.1 ■ percent in March 2015, which was down from 5.4 percent in February and 7.1 percent in March 2014. Consumer confidence was positive in March signaling the 14th monthly increase in a row for this component. • Local stock prices gained a strong 6.73 percent in the first quarter. By comparison, the Dow Jones Industrial Average fell 0.26 percent, the S &P 500 Index gained 0.44 percent, and the NASDAQ Composite Index increased 3.48 percent in the same period • The national Index of Leading Economic Indicators was up for the 15th consecutive month, which signals continued growth in the national economy. 140 135 130 125 120 115 110 105 100 San Diego Index of Leading Economic Indicators San Diego County, 2009 - 2015 2015 -05 -26 Agenda Packet Page 591 CITY The City of Chula Vista continues on the slight upward trend in terms of regaining its revenue capacity as its CnY OF major sources of revenues are CHUIiA VISTA projected to increase in the fiscal year 2015 -16 budget. Sales Tax, Property Tax, Franchise Fees and Motor Vehicle License fees are increasing by a combined $3.5 million over the estimates for these revenues as reported in the fiscal year 2014 -15 Third Quarter Financial Report. Although the increase is modest it may signal that the City's revenue base is returning to more stable and predictable revenue growth that the City can rely upon to meet its growing needs. One indicator of this stability is the continuing improvement in the housing market as the year over year median home price within the City increased by 5.8% from March of 2014 to April of 2015. The median home price is projected to further rise by 2.7% in 2016 (based on Zillow estimate), further improving City property tax revenue opportunities. Another indicator of improved revenue stability can be seen in the overall 4% projected increase in the City's assessment roll assumed in for the property tax projection. A 2% growth rate in assessed valuation of taxable property is legally permitted under Proposition 13 law assuming that there is a commensurate increase in the State's consumer price index (CPI) of 2% or greater. The City is projecting to receive this increase for fiscal year 2015 -16 as the state CPI exceeded the 2% level. This 2% valuation increase in the City's assessment role provides an important yearly boost to property tax revenues as the increase is applied to the entire assessment roll. It is important to note that in recent fiscal years the City has not benefitted from the increase as the CPI has failed to reach the 2% threshold due to the recession. In those years, where the City did not receive the 2% increase in assessment role valuation, property tax growth may have resulted from upward re- assessments of properties that were re -sold at increased price levels or re- assessments of properties that increased values under Proposition 8 law. Under Proposition 8, property owners may apply for an assessment appeal and be granted a lower assessed valuation on their property for property tax purposes when their property values decrease. The lower assessed valuations are granted under the stipulation that their property assessments will be re- assessed in the future when property values recover. The table below provides a year over year summary of home price sale improvements that have taken place within the City's zip codes. The improvement in home sales prices will also help to improve the City's property tax base. Examination of other key demographic factors indicates that the City's unemployment situation improved to 6.7% in February 2015 down from 8.1% for the same month of the prior year. Additionally, Chula Vista's population remains stable as it continues to maintain its place as the 14th largest incorporated city in the state according to the California Department of Finance. Chula Vista Home Sales February 2014 Compared to February 2015 Source Zillow.com /research 2015 -05 -26 Agenda Packet Page 592 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 593 The following section provides an overview of the combined all funds budget. Detailed descriptions, funding, and staffing levels are provided for each fund under the corresponding fund section in this document. This section is intended to provide a citywide overview of the proposed budget for fiscal year 2015 -16. ALL FUNDS REVENUE SUMMARY The combined revenue budget for all City funds totals $277.5 million; $35.5 million represents inter -fund transfers. Projected revenues for all funds are anticipated to decrease by $4.9 million when compared to the fiscal year 2014 -15 projected year -end total of $282.5 million. The largest change in revenue is occurring in the Revenue from Other Agencies revenue category, which reflects a net decrease of $3.8 million when compared to the prior fiscal year. This revenue category includes grants from other agencies and can vary significantly from year to year. The largest change in this category is reflected in the Other Transportation Programs Fund, which reflects $9.0 million in Federal Grant funds. This is a $3.8 million increase when compared to the prior year. This grant funding will be used for two capital improvement projects - Willow Street Bridge Widening and Heritage Road Bridge Improvements. The increase in the Other Transportation Programs Fund is offset by decreases in various other funds. Most notably, the budget for the Transit CVT fund ($1.8 million) is being eliminated. During fiscal year 2014 -15, the City Council took action to approve the City's divestment of public transportation services and transition the operation of these services to the Metropolitan Transit System (MTS). Other decreases in this category reflect adjustments in grant revenues for fiscal year 2015 -16. The Energy Conservation Fund ($1.8 million), Police Department Grants Fund ($1.2 million), and Federal Grants Fund ($1.0 million) all reflected decreased grant revenues. The next largest change is reflected in the Charges for Services revenue category, which reflects a reduction of $3.2 million when compared to the prior fiscal year. All Funds Summary The elimination of Transit Funds is also reflected in the Charges for Services category. This category reflects the elimination of $4.8 million in Bus Fare Fees. Other major changes in this category include projected increases in the Development Services Fund ($1.2 million in Zoning Fees - Deposit Based and Plan Checking Fees), Traffic Signal Fund ($0.2 million in Traffic Signal Fees), and General Fund ($0.3 million in Jail related revenues and Zoning Fees - Deposit Based). The Other Local Taxes revenue category reflects an increase of $2.3 million when compared to the prior fiscal year. This increase is largely reflected in the General Fund; changes in this fund include a $2.3 million increase in Sales and Use Taxes which are somewhat offset by a decrease of $1.6 million in Sales Tax -in -Lieu revenues. This change reflects the elimination of the "Triple Flip" midyear. Other changes in the General Fund include a $1.1 million increase in Franchise Fees and a combined increase of $0.2 million in Transient Occupancy Taxes and Business License Tax revenues. The Transportation Sales Tax Fund also includes a $0.4 million increase. The Development Impact Fees revenue category reflects an increase of $1.0 million when compared to the prior fiscal year. This increase is reflected in the Transportation DIF Fund. This change is intended to bring budgeted revenues in line with actual revenues. The Other Revenue category reflects increases and decreases in various funds which result in a net decrease of $1.0 million. Most notably it reflects the elimination of $1.2 million in the General Fund in Reimbursements from Other City Funds. This is due to the elimination of reimbursements for the Third Avenue Streetscape Improvement Phase II. The Schedule of Revenues report, included in the Summary Tables section, reflects the projected revenues for fiscal year 2015 -16 at the fund and revenue type level. The following table reflects a summary of all City revenues by category. 2015 -05 -26 Agenda Packet Page 594 Sources of Funds (All Funds Combined) Fiscal Year 2013 to Fiscal Year 2016 Revenues In Thousands (000) Revenue Category Other Local Taxes FY12-13 $ Actual 55,209 FY13-14 $ Actual 63,036 FY Projected $ 14-15 59,402 FY Proposed $ 15-16 61,729 Change $ 2,327 Property Taxes $ 32,333 $ 28,517 $ 35,436 $ 36,305 $ 869 Revenue from Other Agencies $ 44,050 $ 50,764 $ 54,381 $ 50,575 $ (3,807) Transfers In $ 32,027 $ 40,487 $ 36,448 $ 35,508 $ (940) Licenses and Permits $ 3,877 $ 3,102 $ 3,310 $ 3,381 $ 71 Use of Money & Property $ 3,261 $ 6,330 $ 3,471 $ 3,443 $ (28) Fines, Forfeitures, Penalties $ 1,640 $ 1,666 $ 2,046 $ 1,776 $ (270) Other Revenue $ 36,660 $ 81,959 $ 33,063 $ 32,095 $ (968) Charges for Services $ 59,144 $ 58,400 $ 50,438 $ 47,270 $ (3,169) Development Impact Fees $ 14,667 $ 9,784 $ 4,457 $ 5,467 $ 1,009 Total Revenues $ 282,868 $ 344,045 $ 282,453 $ 277,548 $ Total Revenues Fiscal Year 2015 -2016 (All Funds Combined) Transfers In, 13 %I Property Taxes, 13% Other Revenue, 12% Other Local Taxes, Development Impact 22% Fees, 2% Licenses and Permits, 1% Charges for Services, 17% Fines, Forfeitures, Penalties, 1% Revenue from h er Agencies, 18Ot Use of Money & % Property, 1% 2015 -05 -26 Agenda Packet Page 595 ALL FUNDS EXPENDITURE SUMMARY The combined expenditure budget for all City funds for fiscal year 2015 -16 totals $294.3 million of which $35.5 million represents inter -fund transfers. This amount includes a General Fund operating budget of $139.2 million and a Capital Improvement Program (CIP) budget of $27.5 million. The fiscal year 2015 -16 budget includes $92.2 million in operating budgets for the non - General Fund funds including Sewer, Successor Agency to the Redevelopment Agency, Development Services, CV Housing, and Fleet. When compared to the prior year budget, the fiscal year 2015 -16 proposed budget reflects a decrease of $11.6 million. The largest change in expenditures is reflected in the Supplies and Services expense category. This category reflects a decrease of $11.8 million when compared to the prior fiscal year. Half of this reduction ($5.9 million) reflects the elimination of the Transit Fund budget as a result of the City's divestment of public transportation services and transition to the operation of these services by the Metropolitan Transit System (MTS). This category also reflects a $3.2 million decrease in the General Fund. This decrease largely reflects the elimination of prior year encumbrances from the proposed budget and one -time appropriations approved by the City Council mid -year. The Energy Conservation Fund reflects a $1.1 million decrease in this expenditure category. This decrease is largely reflected in contractual services and reflects anticipated expenditures for fiscal year 2015 -16. The TUT Common Fund reflects a decrease of $0.8 million. The budget for fiscal year 2015 -16 reflects planned expenditures. The remaining changes in this category are a combination of increases and decreases across various funds. The next largest change in expenditures is reflected in the Personnel Services category. This category is projected to grow by $3.5 million when compared to the fiscal year 2014 -15 projected year end total. This increase reflects the following changes: • The fiscal year 2015 -16 budget reflects a net increase of approximately 5.25 positions when compared to the fiscal year 2014 -15 adopted budget, this includes positions that were approved during fiscal year 2014 -15 or are recommended as part of the development of the fiscal year 2015 -16 budget. These position changes are reflected in the General Fund, Federal Grants, Police Grants, Development Services, Transit, and Environmental Services funds. • The annualized cost of the salary increases approved for all employee groups during fiscal year 2014 -15 and negotiated wage increases for public safety employees in fiscal year 2015 -16. • Increased costs related to retirement and medical (flex) benefits • An increase in workers comp charges based on higher expenditure trends in the Workers Comp fund The Capital expenses category reflects a net decrease of $1.4 million. This decrease is largely reflected in the TUT Common Fund, which is decreasing by $1.2 million. In fiscal year 2014 -15, these one -time funds were used for the purchase of eligible public safety vehicles and communications equipment. The Transfers Out expenditure category reflects a decrease of $1.2 million; this decrease is the net impact of increases and decreases in multiple funds. The most significant changes are reflected in the following funds: • Salt Creek Sewer Basin DIF — reflects a decrease of $2.4 million related to the loan repayment to the Trunk Sewer Capital Reserve fund. Fiscal year 2014 -15 included an extra payment. The fiscal year 2015 -16 reflects the loan repayment amount as identified in the Consolidated Interfund Loan Amortization Schedules. • Telegraph Canyon Sewer Basin DIF — reflects an increase of $1.1 million. These funds will be transferred to the Trunk Sewer Fund and the Telegraph Canyon Sewer Basin DIF will be closed out. The total number of recommended permanent positions for fiscal year 2015 -16 is 966.0, of which 815.5 are included in the General Fund and 150.50 are included in various other funds. The adopted staffing represents a net increase of 5.25 positions when compared to the fiscal year 2014 -15 adopted budget. The Authorized Positions by Department report is included in the Summary Tables section of this document; it provides the new staffing by classification and department. A summary of the new staffing changes is also included in the Staffing Changes section. The following table reflects the expenditures for all 2015 -05 -26 Agenda Packet Page 596 funds by expense category. Uses of Funds (All Funds Combined) Fiscal Year 2013 to Fiscal Year 2016 Expenditures In Thousands (000) Expenditure Category Personnel Services $ FY12-13 Actual 115,792 $ FY13-14 Actual 119,238 FY Projected $ 14-15 127,576 FY Proposed $ 15-16 131,147 $ Change 3,571 Supplies and Services $ 54,214 $ 55,286 $ 67,265 $ 55,450 $ (11,815) Other Expenses $ 41,739 $ 91,816 $ 30,829 $ 30,174 $ (656) Capital $ 1,724 $ 1,773 $ 4,619 $ 3,206 $ (1,412) Transfers Out $ 32,027 $ 40,487 $ 36,683 $ 35,508 $ (1,175) CIP Project Expenditures $ 23,253 $ 18,229 $ 26,959 $ 27,492 $ 533 Non -CIP Project Expenditures $ 5,319 $ 3,195 $ 3,161 $ 2,221 $ (940) Utilities $ 7,001 $ 7,977 $ 8,882 $ 9,149 $ 266 Total Expenditures $ 281,068 $ 338,001 $ 305,975 $ 294,347 $ (11,628) Total Budget Fiscal Year 2015 -16 (All Funds Combined) Non -CIP Project Utilities, 3% CIP Pro 1 ect Expenditures, 1 %� Expenditures, 9 %� Transfers Out, 12 %-/ Personnel Services, Capital, 1% 45% Other Expenses, 10% Supplies and Services, 19% 2015 -05 -26 Agenda Packet Page 597 PROJECTED CHANGES IN UNDESIGNATED FUND BALANCES The following table provides a summary by fund type of the projected revenues and expenditures for fiscal year 2015 -16 and the projected impact to their respective undesignated fund balance. Undesignated fund balance represents available, expendable financial resources in a governmental fund. Undesignated fund balance is sometimes referred to as available reserves. As noted in the table below, most funds are anticipated to draw down reserve levels in the coming year. The General Fund is balanced; there is no projected change in operating reserves for the General Fund. Summary of Net Impact to Reserves by Fund In Thousands (000) T[&lI!1L ALL IF [:7iIf:13}: i Z7p5t!: .i ZLU',347 .i (1b75:lii Note: The Debt Service Funds and Successor Agency and CV Housing Authority carry a deficit that reflects long -term advances /outstanding debt obligations in Fund 451 and Fund 692. 2015 -05 -26 Agenda Packet Page 598 Fund 0. .. 0. Capital Projects Funds $ 65,058 $ 15,143 $ 21,339 $ (6,196) $ 58,861 Sewer Funds $ 100,046 $ 34,897 $ 38,345 $ (3,448) $ 96,598 Gas Tax $ 5,908 $ 5,514 $ 8,590 $ (3,076) $ 2,832 Successor Agency and $ (21,920) $ 14,802 $ 17,031 $ (2,229) $ (24,149) CV Housing Authority Other Funds $ 6,509 $ 10,261 $ 12,386 $ (2,125) $ 4,383 Public Liability Trust $ 1,685 $ 520 $ 1,653 $ (1,133) $ 552 TUT Common Fund $ 624 $ - $ 616 $ (616) $ 8 Environmental Services Fund $ 1,118 $ 1,372 $ 1,811 $ (439) $ 680 Grant Funds $ 485 $ 13,328 $ 13,568 $ (240) $ 245 Workers Comp Fund $ - $ 3,249 $ 3,403 $ (153) $ (153) Fleet Management $ 209 $ 3,822 $ 3,882 $ (61) $ 148 General Fund $ 14,555 $ 139,704 $ 139,704 $ - $ 14,555 Development Services Fund $ (882) $ 7,304 $ 7,304 $ - $ (882) Transit Funds $ 17 $ - $ - $ - $ 17 Maint Districts & Open Space $ 14,869 $ 12,759 $ 12,759 $ - $ 14,869 Debt Service Funds $ (26,343) $ 14,873 $ 11,954 $ 2,918 $ (23,425) T[&lI!1L ALL IF [:7iIf:13}: i Z7p5t!: .i ZLU',347 .i (1b75:lii Note: The Debt Service Funds and Successor Agency and CV Housing Authority carry a deficit that reflects long -term advances /outstanding debt obligations in Fund 451 and Fund 692. 2015 -05 -26 Agenda Packet Page 598 Analysis of Significant Changes in Anticipated Fund Balances The net impact to reserves for all funds is a net decrease of $16.8 million; this change includes the following: Capital Projects Fund (Thousands) Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ 65,058 $ 58,861 $ (6,196) -9.5% Capital Project funds reflect a net decrease of $6.2 million in reserves in fiscal year 2015 -16. This decrease largely reflects the use of $4.6 million in reserves in the Public Facility DIF funds. These funds will be used to pay debt service related to the construction of various City facilities and the annual payment to the TDIF for a prior year loan. The Transportation DIF fund will use approximately $1.5 million in fund balance for various capital improvement projects. Most notably, the budget includes $2.0 million in funding for the Bike Lane Along East "H" Street CIP. Sewer Funds (Thousands) Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ 100,046 $ 96,598 $ (3,448) -3.4% The Sewer Funds reflect a net decrease of $3.5 million in reserves in fiscal year 2015 -16. Major changes are reflected in the following funds: • Salt Creek Sewer Basin DIF - includes a $2.2 million decrease in reserves. The fiscal year 2015 -16 budget includes a loan repayment to the Trunk Sewer Capital Reserve fund. • Trunk Sewer Capital Reserve Fund — includes a $1.7 million increase in reserves. This change largely reflects the transfer from the Telegraph Canyon Sewer Basin DIF. • Sewer Service Revenue — includes a $1.4 million decrease in reserves. This largely reflects the use of reserves for the purchase of $1.7 million in vehicle equipment. • Telegraph Canyon Sewer Basin DIF — reflects a $1.1 million decrease in reserves. This fund will be closed in fiscal year 2015 -16 and funds will be transferred to the Trunk Sewer Capital Reserve Fund. • Sewer Facility Replacement — reflects a $0.5 million decrease in reserves. This fund includes various CIP projects including - Sewer Access Rehabilitation Project, Parkside Drive Lift Station Upgrades, Sewer Manhole Rehabilitation Project, Sewer Manhole Inspection Study, and Sewer Rehabilitation Project. Gas Tax Fund (Thousands) NOMEM1111- Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ 5,908 $ 2,832 $ (3,076) -52.1% The Gas Tax fund reflects the use of $3.1 million in reserves. The fiscal year 2015 -16 budget includes funding for the following capital improvement projects: • $2.0 million for Pavement Minor Rehabilitation Program • $1.6 million for Storm Drain Repairs at various locations Citywide • $0.4 million for Replacement of Curb & Gutter Citywide • $0.3 million for Cross Gutter Rehabilitation Citywide Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ (21,920) $ (24,149) $ (2,229) 10.2% Successor Agency to the Redevelopment Agency and CV Housing Funds reflect a net decrease of $2.2 million. This decrease is largely reflected in the RDA 2008 TARBS Project Funds —SA fund, which reflects the use of $1.3 million in reserves. The remaining use of reserves are reflected in the following funds: • Long -term Advances DSF -RDA SA - reflects ($350,000) related to interest accruals for interfund loans. • CV Housing Authority ($0.4 million) and Housing SA ($0.3 million) - reflects the combined use of $0.6 million from these funds' reserves, which will be used to fund a loan for the Millenia affordable housing development. 2015 -05 -26 Agenda Packet Page 599 Other Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ 6,509 $ 4,383 $ (2,125) -32.7% Other Funds — this category reflects the use of $2.1 million in reserves in fiscal year 2015 -16. Included in this category are the following funds: • Transportation Sales Tax Fund reflects the use of $1.2 million in reserves. These funds will be used to fund various capital improvement projects in fiscal year 2015 -16, including: ■ $4.0 million for major pavement rehabilitation ■ $0.4 million for raised median improvements ■ $0.4 million for Main Street Fiber Optics installation (SANDAG) • The Traffic Signal Fund reflects the use of $0.5 million in reserves. These funds will be used to fund various capital improvement projects in fiscal year 2015 -16 including: ■ $0.3 million for pedestrian improvements at Hazelcook Elementary School ■ $0.3 million for traffic signal installation at Jacqua Street and Main Street Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ 1,685 $ 552 $ (1,133) -67.3% Public Liability Trust Fund reflects a budgeted net impact of $1.1 million. In order to balance the General Fund, the transfer to the Public Liability Trust Fund has been reduced in fiscal year 2015 -16. The use of Public Liability Trust Fund reserves will depend on actual expenditures, which can be difficult to predict. Anticipated Anticipated FY 16 Beginning FY 16 Ending Increase Percent Balance Balance (Decrease) Change $ (26,343) $ (23,425) $ 2,918 -11.1% The Debt Services funds reflect a positive impact of $3.0 million in reserves. This change reflects interfund loan repayments accounted for in the Long -term Advances DSF — City Fund. As noted previously, this fund reflects a negative fund balance because it accounts for long- term advances /outstanding debt obligations. GENERAL FUND RESERVES In November 2009, the City Council approved a resolution updating the City's General Fund Reserve Policy. The updated reserve policy: • Provides guidelines for the use of reserves • Sets a new long -term goal for higher General Fund Reserve level, from 8% to 15% • Includes the establishment of two new reserve funds - Economic Contingency Reserve and Catastrophic Event Reserve Achieving these reserve levels is a long -term goal; once fully implemented, the new General Fund Reserve policy will require higher reserve levels. This will help mitigate the negative impact on revenues from economic fluctuations, position the City to withstand potential State revenue takeaways, provide debt service coverage, and provide a resource to fund unforeseen expenditure requirements. The Third Quarter Financial Report for fiscal year 2014- 15 projected that the General Fund would end the fiscal year with a modest surplus ($0.2 million). The projected surplus reflects higher than anticipated salary savings as a result of vacancies. As reflected on the following table, General Fund reserve levels have not only stabilized but have increased slightly since fiscal year 2009. It is important that the City maintain reserves in order to address the following potential issues: • Dramatic economic fluctuations • Debt service coverage • Development impacts — there may be gaps in timing when services will need to be provided to new developments but the development area has not yet generated the revenues needed to fully offset the cost of those services • Unfunded liabilities — deferred building and equipment repairs, equipment replacement, deteriorating infrastructure. The following chart depicts the General Fund operating reserves since fiscal year 2008 -09. The fiscal year 2015- 16 General Fund Proposed Budget is balanced and there is no budgeted impact to the General Fund reserves. 2015 -05 -26 Agenda Packet Page 600 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% General Fund Operating Reserves Fiscal Year 2009 to Fiscal Year 2016 FY09 FY10 FY11 FY12 FY13 FY14 Reserves — Reserve Policy (Updated 2009) FY15 FY16 Projected Estimated Note: The preceding chart reflects only the General Fund Operating Reserves. It does not include the Economic Contingency Reserve, which has a balance of approximately $3.6 million. Combined with the operating reserve, these two reserve funds total approximately 13% of the fiscal year 2015 -16 General Fund budget. 2015 -05 -26 Agenda Packet Page 601 The fiscal year 2015 -16 adopted budget includes 966.00 positions for all funds. This is a net increase of 5.25 positions when compared to the fiscal year 2014 -15 adopted budget that included 960.75 authorized positions. The summary of staffing changes is divided into two sections — the staffing changes that were approved by Council during fiscal year 2014 -15 and changes made as part of the development of the fiscal year 2015 -16 budget. POSITION CHANGES AUTHORIZED DURING FISCAL YEAR 2014 -15 During fiscal year 2014 -15, Council approved the addition of 2.50 FTE citywide as well as several reclassifications to reflect changes in duties. Changes in the General Fund resulted in a net increase of 0.50 FTE and changes to other funds resulted in a net increase of 2.00 FTE. These changes included the following: • City Council — 1.00 Chief of Staff and 1.00 Policy Aide were added to address the department's operational needs. 2.0 Constituent Services Manager positions were eliminated to offset the additions. • Administration — The City Manager recommended changes in the City management structure which resulted in the addition of 1.00 Deputy City Manager position to share in the oversight of City departments. This change was offset with the elimination of the Director of Finance position from the Finance Department. Summary of Staffing Changes • Finance — the department was reorganized to ensure continued success in the overall management of the City's finances. This resulted in an addition of 1.00 Senior Accountant, 1.00 Fiscal Office Specialist, and the elimination of 2.00 Associate Accountant positions. The reorganization also resulted in the reclassification of the Assistant Director of Finance position to Finance Director and the Finance Manager was reclassified to a Finance and Purchasing Manager. The approved changes resulted in no net changes to the authorized position count for the department. • Animal Care Facility — the department requested to reclassify 5.00 Animal Care Assistants to Animal Care Specialists and 2.00 Senior Animal Care Assistants to 2.00 Senior Animal Care Specialists to better reflect assigned duties. • Police — A net 0.50 FTE was added to the Police Department. 1.00 Automated Fingerprint Technician was approved as part of the County of San Diego Cal -ID Program. The department also requested the addition of 1.00 Senior Police Technology Specialist and the elimination of 1.00 Parking Enforcement Officer and 0.50 Range Master to better reflect department needs. The department also requested a reclassification of an Administrative Services Manager to a Police Administrative Services Administrator. • The Administration Department also requested to reclassify an Assistant to the City Manager /CI Manager to a Performance and Organizational Development Manager to better reflect the duties assigned to this position. • • Human Resources — the department requested to reclassify two positions in order to address operational needs. The Assistant Director of Human Resources was reclassified to Director of Human Resources and a Senior Human Resources Analyst position was reclassified to a Principal Human Resources Analyst. Fire — A Secretary was reclassified to a Training Program Specialist as requested by the Fire department. In addition, 4.00 Firefighter positions were reclassified to Firefighter /Paramedic as part of the implementation of the Advanced Life Support Program. Public Works — the department received approval for the following reclassifications: (a) 2.00 Administrative Analyst II positions to Management Analysts; (b) an Assistant Surveyor II to an Associate Land Surveyor; (c) a Construction and Repair Manager to Construction and Repair Supervisor; (d) a Custodial and Facilities Manager to Facilities Manager; (e) 1.00 Lead Custodian and 1.00 Custodial Supervisor to 2.00 Custodians. These 2015 -05 -26 Agenda Packet Page 602 reclassifications were approved to better reflect the position responsibilities and to address service needs. for these programs include the addition of a 1.00 FA (Fiscal Agent) Program Manager, and the reclassification of a FA Public Safety Analyst position to a FA Senior Public Safety Analyst. • Recreation — the department requested to reclassify 2.00 Recreation Supervisor II positions to • Federal Grants Fund — the addition of a GIS 2.00 Recreation Supervisor III to address Specialist position was approved in this fund to operational needs. assist in the UASI preplan project. • Library — the department requested to reclassify a Library Associate to a Librarian II position in order to address operational needs. The department also reclassified an Administrative Analyst II to a Management Analyst as part of a citywide effort to better reflect the position responsibilities. • Police Grants Fund — The City serves as the fiscal agent for CBAG and SD LECC. Changes approved • Development Services Fund — 3.00 Plans Examiner Positions were reclassified to 3.00 Associate Plan Check Engineers to better reflect the responsibilities of these positions. The following table summarizes the position changes Council authorized during fiscal year 2014 -15. Summary of Fiscal Year 2014 -15 Staffing Changes Approved by City Council Department/Fund City Council (0.00) Mayor Position Chief of Staff FTE 1.00 Policy Aide 1.00 Constituent Services Manager (2.00) Administration (1.00) Administration Deputy City Manager 1.00 Reclassification Assistant to the City Manager /CI Manager (1.00) Performance & Organizational Development Manager 1.00 Human Resources (0.00) Reclassifications Director of Human Resources 1.00 Assistant Director of Human Resources (1.00) Senior HR Analyst (1.00) Principal HR Analyst 1.00 Finance ( -1.00) Finance Administration Fiscal Office Specialist 1.00 Director of Finance (08/12/2014) (1.00) Reclassifications Treasury Manager (1.00) Treasury and Business Manager 1.00 Finance Manager (1.00) Finance and Purchasing Manager 1.00 Assistant Director of Finance (1.00) Director of Finance (03/03/2015) 1.00 Comptroller Senior Accountant 1.00 Associate Accountant (2.00) 2015 -05 -26 Agenda Packet Page 603 ■ Department/Fund Animal Care Facility (0.00) Reclassifications Position Animal Care Assistant FTE (5.00) Animal Care Specialist 5.00 Senior Animal Care Assistant (2.00) Senior Animal Care Specialist 2.00 Police (0.50) Reclassification Administrative Services Manager (1.00) Police Administrative Services Administrator 1.00 Police Technology Senior Police Technology Specialist 1.00 Forensic Services Automated Fingerprint Technician 1.00 Parking Enforcement Parking Enforcement Officer (1.00) Force Operations Range Master (0.50) Fire (0.00) Reclassifications Firefighter (112 HR) (4.00) Firefighter /Paramedic (112 HR) 4.00 Secretary (1.00) Training Programs Specialist 1.00 Public Works (0.00) Reclassifications Administrative Analyst 11 (2.00) Management Analyst 2.00 Assistant Surveyor 11 (1.00) Associate Land Surveyor 1.00 Construction and Repair Manager (1.00) Construction and Repair Supervisor 1.00 Custodial and Facilities Manager (1.00) Facilities Manager 1.00 Custodian 2.00 Lead Custodian (1.00) Custodial Supervisor (1.00) Recreation (0.00) Reclassifications Recreation Supervisor 11 (2.00) Recreation Supervisor 111 2.00 Library (0.00) Reclassifications Administrative Analyst 11 (1.00) Management Analyst 1.00 Library Associate (1.00) Librarian 11 1.00 Police Grants Fund (1.00) Reclassification FA Public Safety Analyst (1.00) FA Senior Public Safety Analyst 1.00 Fiscal Agent (FA) positions - CBAG and SD LECC FA Program Manager 1.00 Federal Grants Fund (1.00) UASI GIS Specialist 1.00 Development Services Fund (0.00) TOTAL CITYWIDE Reclassifications Plans Examiner (3.00) Associate Plan Check Engineer 3.00 2.50 2015 -05 -26 Agenda Packet Page 604 FISCAL YEAR 2015 -16 CHANGES The fiscal year 2015 -16 budget largely reflects a carryover of the service levels and programs funded in the current fiscal year with limited service enhancements. In total, the changes result in a net increase of 2.75 FTE when compared to the fiscal year 2014 -15 amended budget. These changes include the following changes summarized by department: • City Council — The fiscal year 2015 -16 proposed budget reflects the addition of an Administrative Secretary to address operational needs of City Council Administration. • City Clerk — An addition of a Deputy City Clerk is being recommended in order to improve efficiency within the Office of the City Clerk. • City Attorney — The fiscal year 2015 -16 budget includes the transfer of a Senior Risk Management Specialist from the Human Resources Department • to the Office of the City Attorney. • Administration — the Performance and Organizational Development Manager is being transferred from Administration to the Human Resources Department to focus on citywide training, Continuous Improvement (CI), succession planning, and employee engagement. • Administration /Economic Development — In order to better address workload, the budget includes the following recommendations for Economic Development: (a) the transfer of an Environmental Resource Manager and Real Property Manager from Public Works; (b) the elimination of a Senior Administrative Secretary, and (c) the addition of a Project Coordinator I and Cultural Arts Program Manager. The Cultural Arts Manager will take the lead in developing and implementing the City's Cultural Arts Master Plan. The Project Coordinator will assist the small business community as their ombudsman at the development services front counter assist in conducting workshops and trainings for our local business community. • Information Technology — in reviewing the workload for the Geographic Information Systems unit, it was determined that current staffing levels are sufficient to handle the normal day -to -day workload of the unit. To better address workload, the department recommended the addition of a Senior Information Technology Support Specialist and the elimination of a vacant GIS Specialist. Human Resources — The proposed budget includes the transfer of a Senior Risk Management Specialist from Human Resources to the Office of the City Attorney and a transfer of a Performance and Organizational Development Manager from Administration to the Human Resources Department. These transfers will improve operational efficiencies within their respective departments. The proposed budget also includes funding for the addition of a Senior Fiscal Office Specialist to provide clerical support to the Human Resources and Information Technology Services departments. Police — During fiscal year 2014 -15, the Police Department worked with Human Resources on a number of classification reviews. As a result, Human Resources is recommending the reclassification of several positions. Two Evidence Control Assistants will be reclassified to Senior Property and Evidence Specialists and two Police Records Transcriptionists to a Police Records Specialists. The department is also recommending the addition of a part -time Fiscal Office Specialist to provide additional clerical support in the Fiscal Operations Division. • Fire — The Fire Department is recommending the addition of a Fire Prevention Aide in order to be more efficient in delivering general use certificate and complaint inspection services. This position was previously filled on a part -time hourly basis. The proposed budget also reflects the staffing changes needed to implement the reorganization of the department. The reorganization results in the elimination of 2.0 Deputy Fire Chief positions, the addition of 1.0 Battalion Chief, and the funding of two previously frozen positions (Fire Engineer and Fire Division Chief.) • Public Works — During fiscal year 2014 -15, the Public Works Department worked with Human Resources on a number of reclassifications. As a result Human Resources is recommending the 2015 -05 -26 Agenda Packet Page 605 reclassification of a Fiscal Office Specialist to Senior Fiscal Office Specialist and a Senior Public Works Specialist to Graffiti Abatement Coordinator. The proposed budget also reflects the following changes: (a) the transfer of the Environmental Resource Manager and Real Property Manager to the Administration Department; (b) the elimination of an Environmental Resource Specialist and the addition of two Conservation Specialist positions; (c) the conversion of a part -time Engineering Technician II position to a full -time position to complete traffic monitoring and data collection; (d) the addition of a Pump Maintenance Technician to support required maintenance and repairs for City facilities; and (e) the addition of a Maintenance Worker I to provide staffing for the operation of the third storm drain vactor. Library — The proposed budget includes an additional Senior Librarian that will be assigned to the Otay Ranch Library. This position will help ensure stable and enhanced hours of operation at the Otay Ranch Library and the Hub. Police Grants Fund — Changes in the CBAG and SD LECC programs include the elimination of five positions and the reclassification of five FA Senior Public Safety Analyst positions to FA Senior Intelligence Analyst positions. The City serves as the Fiscal Agent to CBAG and SD LECC. Environmental Services Fund — Human Resources is recommending the reclassification of an Environmental Services Program Manager to an Environmental Services Manager based on the job duties of the position. In addition, the budget includes the addition of a Recycling Specialist II position which was previously filled on an part -time hourly basis. • Transit — Due to the transition of Chula Vista Transit to MTS, all Transit Funds and the Transit Manager position have been eliminated from the fiscal year 2015 -16 proposed budget. • Development Services Fund — As part of a continuing effort to align available development related resources with the demand for development related services, staff has recommended the elimination of vacant Senior Planner and Senior Office Specialist Positions, and the elimination of a Landscape Planner 11. The Development Services Department is also recommending the addition of a Building Inspection Manager and Senior Plan Check Technician in order to remain responsive to workload demands. These recommended changes result in a net reduction of 1.0 FTE to the Development Services Fund. Reclassifications - During the development of the fiscal year 2015 -16 budget, departments worked with the Human Resources Department to review positions that are working out of class due to changing job duties. Departments worked with Human Resources to determine the appropriate classification and compensation for these reclassification requests. The recommended staffing changes are based on changes to scope of responsibility. The following table summarizes the changes reflected in the fiscal year 2015 -16 budget. 2015 -05 -26 Agenda Packet Page 606 Department/Fund Administration (1.75) Reclassification Position W ebmaster FTE (1.00) Senior Webmaster 1.00 Transfer to Human Resources Performance & Organizational Development Manager (1.00) Economic Development Senior Administrative Secretary (1.00) Project Coordinator 1 1.00 Cultural Arts Program Manager 0.75 Transfer from Public Works Environmental Resource Manager 1.00 Real Property Manager 1.00 Information Technology Services (0.00) Micro - Computers Senior Information Technology Support Specialist 1.00 Geographic Information Systems GIS Specialist (1.00) Human Resources (1.00) HR Operations Senior Fiscal Office Specialist 1.00 Transfer from Administration Performance & Organizational Development Manager 1.00 Transfer to City Attorney Senior Risk Management Specialist (1.00) Police (0.50) Reclassifications Police Records Transcriptionist (2.00) Police Records Specialist 2.00 Evidence Control Assistant (2.00) Senior Property & Evidence Specialist 2.00 Fiscal Operations Fiscal Office Specialist 0.50 Fire (0.00) Fire Administration Deputy Fire Chief (2.00) Fire Training Fire Battalion Chief (80 HR) 1.00 Fire Prevention Fire Prevention Aide 1.00 Public Works (1.50) Reclassifications Fiscal Office Specialist (1.00) Senior Fiscal Office Specialist 1.00 Senior Public Works Specialist (1.00) Grafitti Abatement Coordinator 1.00 Transfer to Administration Environmental Resource Manager (1.00) Real Property Manager (1.00) Conservation and Environmental Services Environmental Resource Specialist (1.00) Conservation Specialist 2.00 Traffic Engineering Engineering Technician 11 0.50 Lift Station /Pool Maintenance Pump Maintenance Technician 1.00 Storm Drain Maintenance Maintenance Worker 1 1.00 Library (1.00) 10tay Ranch Library iSenior Librarian 1.00 2015 -05 -26 Agenda Packet Page 607 ■ Department/Fund Police Grants Fund ( -5.00) Reclassifications Position FA Senior Public Safety Analyst FTE (5.00) FA Senior Intelligence Analyst 5.00 Fiscal Agent (FA) positions - CBAG and SD LECC FA Public Safety Analyst (1.00) FA Analyst (2.00) FA Program Manager (2.00) Environmental Services Fund (1.00) Reclassification Environmental Services Program Manager (1.00) Environmental Services Manager 1.00 Environmental Services Recycling Specialist 11 1.00 Transit ( -1.00) Transit Transit Manager (1.00) Development Services Fund ( -1.00) TOTAL CITYWIDE Development Planning Senior Planner (1.00) Building Senior Office Specialist (1.00) Senior Plan Check Technician 1.00 Building Inspection Manager 1.00 Land Development Landscape Planner 11 (1.00) 2.75 SUMMARY OF FROZEN POSITIONS In a prior fiscal year there were a number of positions that were frozen (not funded) in order to help balance the budget. Due to the continued fiscal constraints, the majority of these positions remain frozen in fiscal year 2015 -16. As funding becomes available the status of these positions will be reevaluated; recommended funding changes will be brought to Council for consideration. During fiscal year 2014 -15, the following positions were "unfrozen" -2.0 Police Dispatch positions. The proposed budget includes funding for the previously frozen Fire Division Chief and Fire Engineer. A Development Services Technician II was frozen as part of the budget development process in order to help balance the Development Services Fund. The fiscal year 2015 -16 budget reflects 16.0 frozen positions; this is a net reduction of 3.0 frozen positions when compared to the prior fiscal year. The frozen positions are summarized by department and fund on the following table. Summary of Fiscal Year 2015 -16 Frozen Positions Department/Fund Position FTE City Council Service Grants Chief Service Officer 1.00 Community Patrol Peace Officer 11.00 Police Street Crime /Gang Suppression Peace Officer 1.00 City Jail Detention Facility Manager 1.00 Police Dispatch Police Communications Systems 1.00 Manager Development Services Fund Development Services Counter Development Services Technician II 1.00 TOTALCITYWIDE 16.00 2015 -05 -26 Agenda Packet Page 608 0 SUMMARY OF STAFFING CHANGES BY DEPARTMENT AND BARGAINING UNIT The following tables summarize the staffing changes budget and the fiscal year 2015 -16 proposed budget, by occurring between the fiscal year 2014 -15 adopted bargaining unit and by department. Summary of Staffing Changes by Bargaining Unit 2015 -05 -26 Agenda Packet Page 609 Adopted FY 14-15 Mid Proposed Proposed % Bargaining Unit Unrepresented Professionals Staffing YearChanges Changes Staffing Change and Mid Managers 34.00 2.00 - 36.00 5.9% Executives 16.00 2.00 - 18.00 12.5% Chula Vista Mid Managers and Professionals Association 66.50 (1.00) 3.75 69.25 4.1% Chula Vista Employee's Association 385.75 3.50 5.00 394.25 2.2% City Council 5.00 - - 5.00 0.0% International Association of Firefighters 125.00 - 1.00 126.00 0.8% Peace Officer's Assocation 233.00 - - 233.00 0.0% Western Council of Engineers 27.00 - - 27.00 0.0% Senior Managers 36.50 (1.00) (4.00) 31.50 -13.7% Confidential 32.00 (3.00) (3.00) 26.00 -18.8% TOTAL .0 00 2015 -05 -26 Agenda Packet Page 609 Summary of Staffing Changes by Department 7E TOTAL 9b0.75 Z.50 Z.75 9bb.Q0 C 2015 -05 -26 Agenda Packet Page 610 Adopted FY 14-15 Mid Proposed Proposed % Department/Fund Staff i ng YearChanges Changes Staffing Change Administration 14.00 1.00 1.75 16.75 19.6% Development Services - GF 20.25 - - 20.25 0.0% Animal Care Facility 21.00 - - 21.00 0.0% Police 321.50 0.50 0.50 322.50 0.3% City Attorney 13.00 - 1.00 14.00 7.7% City Clerk 5.00 - 1.00 6.00 20.0% City Council 14.00 - 1.00 15.00 7.1% Finance 28.00 (1.00) - 27.00 -3.6% Fire 136.00 - - 136.00 0.0% Human Resources 15.00 - 1.00 16.00 6.7% Information Technology Services 17.00 - - 17.00 0.0% Library 21.50 - 1.00 22.50 4.7% Public Works 163.00 - 1.50 164.50 0.9% Recreation 17.00 - - 17.00 0.0% General Fund Total 806.25 0.50 8.75 815.50 1.1% Other Funds Federal Grants Fund 2.00 1.00 - 3.00 50.0% Fleet Management 10.00 - - 10.00 0.0% Police Grants Fund 40.00 1.00 (5.00) 36.00 -10.0% Development Services Fund 45.50 - (1.00) 44.50 -2.2% Advanced Life Support 1.00 - - 1.00 0.0% CV Housing 4.00 - - 4.00 0.0% Environmental Services Fund 5.00 - 1.00 6.00 20.0% Sewer Fund 46.00 - - 46.00 0.0% Transit 1.00 - (1.00) - - 100.0% Successor Agency to RDA I - I - I - I - 1 0.0% Other Funds Total 1 154.50 1 2.00 1 (6.00)1 150.50 1 -2.6% 7E TOTAL 9b0.75 Z.50 Z.75 9bb.Q0 C 2015 -05 -26 Agenda Packet Page 610 N O N U7 CITY STAFF EMPLOYEES DEPARTMENT FY 2011 -12 FY 2012 -13 FY 2013 -14 FY 2014 -15 FY 2015 -16 LEGISLATIVE'ADMINISTRATIVE City Clerk/Elections 5.00 5.00 5.00 5.00 6.00 City Attorney 12.00 13.00 13.00 13.00 14.00 Administration 9.00 10.00 13.00 14.00 16.75 Information Technology Services 18.00 18.00 17.00 17.00 17.00 Human Resources 15.00 15.00 15.00 15.00 16.00 Finance 26.00 26.00 28.00 28.00 27.00 TOTAL 99.00 101.00 105.00 106.00 111.75 •� Animal Care Facility 17.75 19.25 20.50 21.00 21.00 Development Services 21.50 20.50 19.50 20.25 20.25 Public Works Operations 160.50 162.00 163.00 163.00 164.50 TOTAL 199.75 201.75 203.00 204.25 205.75 Police 306.50 313.00 319.00 321.50 322.50 Fire 134.00 135.00 136.00 136.00 136.00 TOTAL 440.50 448.00 455.00 457.50 458.50 • Recreation 17.00 17.00 17.00 17.00 17.00 Library 21.00 21.10 21.50 21.50 22.50 TOTAL 38.00 38.10 38.50 38.50 39.50 GENERAL FUND SUBTOTAL 777.25 788.85 801.50 806.25 815.50 ro w oc N N N O N Ul O Ul N CITY STAFF EMPLOYEES 5 -Year Position Summary ro w - x • � �o Advanced Life Support 0.00 0.00 1.00 1.00 1.00 Development Services 39.00 41.50 44.50 45.50 44.50 Police Grant Funds /California Border Alliance Group (CBAG) 34.00 34.00 37.00 40.00 36.00 Federal Grants Fund 0.00 0.00 1.00 2.00 3.00 American Renewal & Reinvestment Act 4.50 0.00 0.00 0.00 0.00 Environmental Services 4.00 5.00 5.00 5.00 6.00 Housing Authority 7.00 7.00 4.00 4.00 4.00 Successor Agency 0.00 1.00 1.00 0.00 0.00 Fleet Management 8.00 8.00 8.00 10.00 10.00 Transit 1.00 1.00 1.00 1.00 0.00 Sewer 46.00 46.00 46.00 46.00 46.00 Redevelopment Agency 4.00 0.00 0.00 0.00 0.00 TOTAL 147.50 143.50 148.50 154.50 150.50 GRAND TOTAL (does not include hourly staffing) 924.75 932.35 950.00 960.75 966.00 ro w oc N N ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 613 GENERAL FUND SUMMARY General Fund Expenditure Summary General Fund Revenue Summary General Fund Net Cost Department Summary Reports 2015 -05 -26 Agenda Packet Page 614 2015 -05 -26 Agenda Packet Page 615 General Fund Expenditure Summary The General Fund Proposed Operating Budget for fiscal year 2015 -16 totals $139.2 million, which reflects an increase of $1.7 million (1.2 %) when compared to the Fiscal Year 2014 -15 projected year -end total. The General Fund Proposed CIP Budget for fiscal year 2015- 16 is $0.5 million, bringing the total General Fund Proposed Budget to $139.7 million. The General Fund Proposed Budget is balanced. The City defines a budget as balanced when the amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. The General Fund includes funding for programs and services supported by the City Council in previous fiscal years. The fiscal year 2015 -16 Proposed Budget reflects a continuation of current service levels with the exception of a small number of service enhancements approved as part of the development of the budget. The City's General Fund reflects positive growth in most major revenue sources. This modest growth in projected revenues allowed for a limited number of funding enhancements. Program /Service enhancements include: • Otay Ranch Library and the Hub — Added 1.0 Senior Librarian to ensure stable and enhanced hours of operation at the Otay Ranch Library and the Hub. • Civic Center Library /Museum — Added $75,000 in funding to match the Mayor's and Department's fund raising efforts towards renovations at the Civic Center Library auditorium. • Cultural Arts Manager — This new position will manage the City's cultural arts programs and take the lead in developing and implementing the City's Cultural Arts Master Plan. • Special Events - Included $40,000 in funding to support three Citywide special events such as Starlight Parade and Harbor Days • Economic Development — Converted hourly staffing to a new Project Coordinator position to support Economic Development's efforts to assist our local business community and to attract investment and jobs. • Storm Drain Maintenance — Added 1.0 Maintenance Worker to provide staffing for the operation of the third storm drain vactor. This will help address new NPDES regulations that increased inspections and cleaning requirements of storm drain pipes and catch basins to reduce pollutants to the bay. • Equipment Replacement — Added $330,000 for the replacement of the highest priority vehicles; includes two vehicles for Fire, 1 vehicle for Police, and 1 vehicle for Public Works. • Computer Replacement - The budget includes a $60,000 increase for the lease of an additional 200 computers in year 2 of a 4 year plan to modernize and standardize the City's aging computers. A comparison of the fiscal year 2015 -16 Proposed budget, the fiscal year 2014 -15 projected expenditures, and the fiscal year 2013 -14 actual expenditures are summarized in the following table. 2015 -05 -26 Agenda Packet Page 616 General Fund Expenditure Summary In Thousands (000) 2015 -05 -26 Agenda Packet Page 617 Z1114-15 FY 2013-14 3rd Qtr FY 2015-16 Description Actual Projected Proposed Personnel Services $ 101,760 $ 107,428 $ 111,610 $ 4,182 Supplies and Services $ 14,042 $ 17,455 $ 14,269 $ (3,186) Other Expenses $ 506 $ 929 $ 551 $ (378) Capital $ 604 $ 638 $ 266 $ (372) Transfers Out $ 15,522 $ 5,400 $ 6,099 $ 699 Non -CIP Project Expenditures $ 133 $ 256 $ 509 $ 253 Utilities $ 4,957 $ 5,423 $ 5,889 $ 466 Total Operating Budget $ 137,524 $ 137,529 $ 139,193 $ 1,664 CIP Project Expenditures $ 849 $ 5,519 $ 510 $ (5,009) Total General Fund Budget $ 138,373 $ 143,048 $ 139,703 1 $ (3,345) MAJOR EXPENDITURE CHANGES BY CATEGORY The fiscal year 2014 -15 3rd Quarter Projected column The next largest change is occurring in Personnel reflects the projected June 30, 2015 costs as reported in Services. This category reflects an increase of $4.2 the Third Quarter Financial Report. This column million and includes the following major changes: includes the Council adopted budget for fiscal year ' $4.0 million increase in budgeted Salaries -this 2014 -15, midyear appropriations, and the carryover of prior year encumbrances (mostly reflected in CIP and increase reflects the annualized cost of wage Supplies and Services). increases approved by the City Council during fiscal year 2014 -15 for all employee groups, negotiated When compared to the prior fiscal year, the largest wage increases for Public Safety that will occur change is occurring in CIP Project Expenditures during fiscal year 2015 -16, step increases, and the category. This category reflects a decrease of $5.0 addition of 5.25 new positions. million when compared to the fiscal year 2014 -15 • A $1.2 million increase for retirement costs which projected year -end total. The fiscal year 2015 -16 reflects the increased contribution rates based on budget only reflects new projects for fiscal year 2015- the October 2014 Annual Valuations report from 16 and excludes the budget for projects that were CalPERS and salary savings projected in fiscal year appropriated in prior fiscal years. The fiscal year 2015- 2014 -15 but not budgeted in this object in fiscal 16 capital budget includes $0.5 million for the following year 2015 -16. projects: • $0.5 million for increased flex /insurance costs to • $400,000 for Sign Reflectivity Replacement citywide account for anticipated increases in health (offset by SAFE revenues) premiums based on the projected health premium $110,000 for the City's Asset Management increases. Program. • $0.5 million in Worker's Comp charges, based on increased costs in the Workers Compensation Fund. 2015 -05 -26 Agenda Packet Page 617 City of Chula Vista Proposed Budget M • The increase in Salaries, retirement costs, and flex costs also reflect projected salary savings in fiscal year 2014 -15 that are not budgeted in these objects in fiscal year 2015 -16. The fiscal year 2015- 16 budget reflects $1.7 million in budgeted salary savings. The Supplies and Services expense category reflects a decrease of $3.2 million when compared to the fiscal year 2014 -15 projected year -end total. The majority of this decrease reflects the elimination of midyear (one- time) appropriations and prior year encumbrances. The fiscal year 2015 -16 proposed budget reflects a $0.1 million increase when compared to the fiscal year 2014- 15 adopted budget of $14.2 million. This increase reflects adjustments to various objects in the category including software maintenance, fleet maintenance, and other agencies permits and fees. One major changer reflected in this category is a decrease in city liability insurance costs as a result of the dissolution of the San Diego Pooled Insurance Authority for Municipal Entities (SANDPIPA). The City has joined CSAC Excess Insurance Authority for pooled liability insurance coverage at a lower cost. ■ The Transfers -Out expense category reflects an increase of $0.7 million. This change consists of various budgeted increases from the General Fund to other funds that include: • $0.3 million to the Equipment Replacement Fund • $0.2 million to the Police Grants Fund • $0.1 million to the Public Liability Trust Fund • $0.1 million to other City Funds including the Development Services Fund, Local Law Enforcement Block Grant Fund, and various debt service funds. The Utilities expense category has been increased by $0.5 million when compared to the fiscal year 2014 -15 projected year -end total. Utility budgets have been adjusted to reflect projected expenditures for fiscal year 2015 -16 based on actual usage and expected rate increases. 2015 -05 -26 Agenda Packet Page 618 General Fund Expenditures by Category Fiscal Year 2015 -2016 Health Benefits, 9% Other Personnel Retirement Benefits, � Expense, 4% 15% Overtime, 4% Hourly Wages, 2% Personnel Services Totals 79.9% Salaries, 46% Supplies and Services, 10% Other Expenses, Less than 1% Capital, Less than 1% 'Transfers Out, 4% CIP Project Expenditures, 1% Non -CIP Project Expenditures, Less than 1% Utilities, 4% General Fund Expenditures History by Category Fiscal Year 2012 through 2016 $160 — $140 $120 $100 $80 c $60 2 $40 $20 $- FY12 Actual FY13 Actual FY14 Actual FY15 Q3 Projected FY16 Proposed • Personnel Services ■ Supplies and Services ■ Other Expenses • Capital Transfers Out MCI P Project Expenditures Non -CIP Project Expenditures Utilities 2015 -05 -26 Agenda Packet Page 619 General Fund Expenditure by Department Fiscal Year 2015 -2016 Other - reflected on Fire, 18% chart below, 23% $25.6M $31.6M Non - Departmental, 6% $9.1M Public Works Operations, 19% $27.OM Police, 35% $48.8M Note: The chart above does not reflect net cost of each department, only their expenditure allocations. The following chart reflects the "Other" department costs included in the previous chart that includes the $31.6 million of the General Fund department budget expenditures. General Fund Expenditure by Department (Other Department Detail — totals $31.6 million) Fiscal Year 2015 -2016 Boards and City Clerk, 1% Commissions, Less than City Council, 1% 1% Recreation, 3 %_,----- _ Human Resources, 2% Development Services, Finance, 3% 2% Library, 3% ITS, 2% Animal Care Facility, 2% City Attorney, 2% Administration, 2% Note: The chart above does not reflect net cost of each department, only their expenditure allocations. 2015 -05 -26 Agenda Packet Page 620 STAFFING LEVELS As revenue levels have improved, the City has continued the trend of slowly recovering its staffing levels previously reduced as a result of the Great Recession. Since fiscal year 2011 -12 the City has been able to achieve a modest 4.5% increase in staffing managing to keep pace with a population 4.0% increase over the same period of time. Staffing for Community Services and the Development and Maintenance Services categories have grown modestly 3.9% and 2.4% respectively from 2011 -12. Staffing for the Legislative and Administrative service category has increased by 11.2% primarily due to reorganizations /consolidations that have shifted staff from other service categories. Public Safety staffing levels have increased 4.4% - this increase includes the addition of various grant funded positions. Budget constraints necessitated the net elimination of 331.4 full time equivalent (FTE) positions from the City's peak employment of 1,263.75 FTEs during fiscal year 2006 -07. The last major reduction occurred in 2011 and is reflected in the fiscal year 2011 -12 budget. As shown in the following graph, the number of FTEs per thousand has remained flat since fiscal year 2011 -12. Staffing Level Fiscal Year 2011 -2012 to Fiscal Year 2015 -2016 City of Chula Vista Staffing (FTEs) Compared to FTEs per Thousand Residents 1,200 5.0 4.5 Council Adopted Budget Legislative and Administrative FY 11-12 100.50 FY 12-13 101.00 FY 13-14 105.00 FY 14-15 106.00 111.75 11.2% Development and Maintenance 308.75 311.25 312.50 315.75 316.25 2.4% Public Safety 477.50 482.00 494.00 500.50 498.50 4.4% Community Services 1 38.00 1 38.10 1 38.50 1 38.50 1 39.50 1 3.9% Total City Staff 924.75 932.35 950.00 960.75 966.00 4.5% City of Chula Vista Staffing (FTEs) Compared to FTEs per Thousand Residents 1,200 5.0 4.5 1,000 3.7 3.7 3.7 3.7 3.7 4.0 800 3.5 3.0 °o W LL 600 2.5 W 2.0 LL 400 1.5 200 1.0 0.5 0 0.0 FY11 -12 FY12 -13 FY13 -14 FY14 -15 FY15 -16 Total FTE's FTE's /1000 2015 -05 -26 Agenda Packet Page 621 SALARY ADJUSTMENTS Over the last several years, the City's bargaining groups worked with City management to reach new agreements that reduced personnel costs in an effort to balance the budget. The adjustments to employee compensation included wage concessions and pension reform. Subsequently, the City finances have stabilized and improved to the point where the City has been able to grant salary increases to its employee bargaining groups. The fiscal year 2015 -16 proposed budget reflects the annualized cost of salary increases for all employee groups; these salary increases were approved by the City Council during fiscal year 2014 -15. The proposed budget also includes the second year of wage increases for the Police Officers' Association and the International Association of Firefighters. The City is currently in negotiations with three of the City's bargaining groups. The actual impact of salary adjustments will depend on the final agreements with the bargaining groups. As these agreements are reached, staff will bring forward for Council approval the memorandums of understanding and include the fiscal impact. RISING RETIREMENT COSTS The increase in retirement costs driven by rising CalPERS costs is a significant budgetary challenge facing the City. The payments made to the retirement system equal 15.3% of the City's General Fund in the fiscal year 2015 -16 proposed budget. Increases in CalPERS contributions can be attributed to several factors. In the early 2000's the City approved enhanced formula benefits for all City employees. During the recent economic downturn, the City also approved an early retirement incentive to encourage employees to retire thereby reducing the number of layoffs, but increasing the City's payment to CaIPERS. During this same time period, CalPERS experienced significant investment losses. Over the last several years, CalPERS has made a series of changes that have resulted in higher contribution rates. Prior to fiscal year 2005 -06, the CalPERS investment pool assumed a rate of return of 8.25% and any market gains (or losses) less than that amount could significantly affect the City's overall contribution rate. In fiscal year 2005 -06, CalPERS adjusted their investment return assumption to 7.75 %. In 2012, the CalPERS Board of Administration approved a recommendation to lower the rate investment return assumption from 7.75% to 7.50 %. Additional changes that have been implemented by CalPERS include a change the CalPERS amortization and smoothing policies. With this change, CalPERS has employed an amortization and smoothing policy that will pay for all gains and losses over a fixed 30 -year period with the increases or decreases in the rate spread directly over a 5 -year period. CalPERS has also focused in on current asset allocations in an effort to stem the volatility of investment returns as it implements its investment strategies to achieve the long -term assumed rate of 7.5% for the retirement fund. In addition the CalPERS board also adopted significant changes to actuarial assumptions with respect to mortality rates after evaluation of a demographic study that covered the years 1997 -2011. This study yielded the following conclusions that will impact employer contribution rates: • Men are living two years longer on average • Women are living one and half years longer on average • There are higher rates of service retirement for certain groups including firefighters and police officers • Lower rates of disability retirements for all groups • Members with longer service received higher salary increases CalPERS is sensitive to the impact mortality improvements are likely to have on employer retirement contribution rates and has subsequently sought input from employer organizations. As such, CalPERS adopted the recommendation for local public agencies to first reflect the change in assumptions in fiscal year 2016 -17 with the cost spread over twenty years with the increases phased in over the first five years and ramped down over the last five years of the twenty year amortization period. The estimated impact of these changes on the City's fiscal year 2016 -17 retirement contribution rates is outlined in the CalPERS October 2014 Annual Valuation Report. The budgetary impacts caused by the increased employer contribution rates for retirement costs have 2015 -05 -26 Agenda Packet Page 622 been significant and will continue to challenge the City in future years. The impact of these cost increases have been partially offset through negotiations with City's bargaining groups that have resulted in the implementation of pension reform. Under the negotiated pension reform, employees have agreed to pay their share of pension costs thereby reducing the impact of pension cost increases to the City's budget. For fiscal year 2015 -16, Tier 1 Miscellaneous employees contribute 8% of their salary, Tier 2 employees contribute 7% and Tier 3 employees contribute 6.75 %. Tier 1 and Tier 2 public safety employees contribute 9% of their salary towards pension costs; Tier 3 public safety employees contribute 12.25% of their salary. To follow is a series of charts related to pension costs. The first chart depicts the actual market rates of return for the CaIPERS investment portfolio relative to the assumed 7.5% rate of return. The second chart reflects actual CaIPERS costs in the General Fund for fiscal years 2009 to 2014, the projected cost for fiscal year 2014 -15, and the proposed budget cost for 2015 -16. The final chart reflects historical CaIPERS contributions illustrating the employer (City) contribution rates from fiscal years 2003 -04 to 2015 -16 and projected rates for fiscal years 2016 -17 through 2020 -21. CalPERS Historical Market Value Rates of Return Relative to Assumed Investment Return of 7.5% 30.0% 22.5% 15.0% 7.5% 0.0% -7.5% -15.0% -22.5% -30.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -05 -26 Agenda Packet Page 623 c 0 $27.5 40.0% $25.0 30.0% $22.5 25.0% — $20.0 $17.3 $17.5 10.0% $15.0 — $12.5 — $10.0 — F $7.5 — $5.0 — F $2.5 $- F FY11 -12 Retirement Costs (General Fund) Fiscal Years 2011 -12 to 2015 -16 $19.3 FY12 -13 FY13 -14 Fiscal Year FY14 -15 FY15 -16 Proposed 3rd Qtr Projected CalPERS Employer Contribution Rates Fiscal Years 2003 -04 to 2020 -21 Protected 45.0% 40.0% 35.0% 30.0% 25.0% — 20.0% 15.0% 10.0% 5.0% 0.0% 1 01 1 JO JO JO ,O JO ,O ,O Jti Jti Jti Jti Jti Jti \ \ \ \ \ Miscellaneous —1 Public Safety Notes: 1. Reflects Employer Contribution. The actual employer contribution is higher due to Employer Paid Member Contributions (EPMC) ranging from 1.3% to 4.2 %, and for applicable years an additional 8% and 9% for the Employer Paid Member Contribution (Employee Contribution). 2. Projected rates (FY 2017 through FY 2021), based on CAPERS Actuarial Valuation Report as of June 30, 2013, reflects assumed ROI of 7.5 %. 2015 -05 -26 Agenda Packet Page 624 HEALTH CARE COSTS Flex /Health insurance represents 8.5% of the total fiscal year 2015 -16 General Fund expenditure budget and account for the health care costs for permanent employees. To follow are charts and tables reflecting the increased expenditures related to flex /health insurance. The first chart illustrates the actual Flex /Health insurance costs in the General Fund for fiscal years 2010 to 2014, the projected expenditures for fiscal year 2014 -15 and the proposed budget for fiscal year 2015 -16. It is important to note that the decrease in actuals in fiscal year 2010- 11 and fiscal year 2011 -12 was due to the reduction in staffing levels over the same period of time and not caused by a decrease in flex /health insurance costs. In actuality, Flex /Health insurance costs have increased annually. The annually increasing flex /health insurance cost is a challenge that the City will continue to address in future budgets. The subsequent table displays Flex Allotments by bargaining group from calendar year 2010 to calendar year 2015. Flex Allotments are the amounts provided by the City for employees to use towards the purchase of their health benefits. This allotment is negotiated between the City and each bargaining group. As illustrated by the table, costs to the City in the area of flex /health insurance have increased significantly since calendar year 2010. Flex /Health Insurance Costs (General Fund) Fiscal Years 2011 -12 to 2015 -16 2015 -05 -26 Agenda Packet Page 625 $15.0 c 0 $12.5 $12.0 � $10.1 $10.3 9.3 $10.0 $7.5 $5.0 $2.5 FY11-12 FY12 -13 FY13 -14 FY14 -15 FY15 -16 3rd Qtr Proposed Fiscal Year Projected 2015 -05 -26 Agenda Packet Page 625 Flex Allotment Increases by Bargaining Group Calendar Year 2011 to Calendar Year 2015 FLEX BargainingGroup Confidential Allotment 2011 $ 11,348 $ 2012 11,936 by $ 2013 12,386 $ 2014�1' 13,074 $ 2015 13,524 Change 19.2% Chula Vista Employees Association $ 10,848 $ 11,436 $ 11,886 $ 12,574 $ 13,024 20.1% Executive $ 14,248 $ 14,836 $ 15,162 $ 15,850 $ 16,300 14.4% Mid Managers and Professionals $ 11,848 $ 12,436 $ 12,762 $ 13,450 $ 13,900 17.3% Senior Managers $ 12,848 $ 13,436 $ 13,762 $ 14,450 $ 14,900 16.0% Western Council of Engineers $ 11,848 $ 12,436 $ 12,762 $ 13,450 $ 13,900 17.3% Mayor &Council $ 14,248 $ 14,836 $ 15,162 $ 15,850 $ 16,300 14.4% "' Flex allotments remain at the 2013 amounts for all Employee Only members within the following employee groups: Confidential, Executive, Mid Managers and Professionals, Senior Managers, Western Council of Engineers, and Mayor & Council. The public safety bargaining group is not included in the preceding table as their negotiated benefits differ from the other bargaining groups. For the public safety bargaining group the City pays the full premium for Kaiser HMO Health Plan and Cigna DHMO pre -paid dental plan for the employee and any eligible dependents. Employees who choose a non - Kaiser HMO coverage pay a flat annual amount regardless of the number of dependents covered. Employees choosing the Cigna DPPO preferred provider plan are responsible for any additional costs over and above the Cigna DHMO pre -paid plan. Due to the annual increase of flex /health insurance costs the amount the City has paid in insurance premiums have risen. As illustrated in the table below, medical premiums the City pays on behalf of public safety employees have increased by between 21% and 34% (depending on medical group elections) since calendar year 2011. Due to a switch in dental care providers, the City has seen a decrease of 3% in dental premiums over the same period of time. The following table presents the range of benefits the City provides in medical and dental insurance to public safety employees and their dependents. City Provided Public Safety Flex Benefit Ranges Calendar Year 2011 to Calendar Year 2015 Medical 1 $4,776 - $14,7721 $5,352 - $15,8521 $5,436 - $16,7521 $5,988 - $18,1801 $5,784 - $19,848 21 % -34% Dental"' 8180-84441 8204-84921 8168-83961 8168-83961 8180-84321 0%-(3%) ('Dental insurance for public safety employees is fully compensated for at the DHMO level. Employees may choose PPO and pay the variance between DHMO and PPO. 2015 -05 -26 Agenda Packet Page 626 Insurance Premiums Kaiser and AETNA insurance premiums have increased an average of 6.4% per year since the beginning of calendar year 2011. As noted in the table below, Kaiser premiums have increased a total of 21.1% during this time while AETNA premiums have increased 33.0% over the same period. The annual budget for flexible spending accounts /medical premiums has increased from $9.1 million in fiscal year 2010 -11 to $12.0 million in the fiscal year 2015 -16 proposed budget. Recent discussions with health care professionals indicate these high trends in health care costs are likely to continue for the foreseeable future. For fiscal year 2015 -16, the proposed budget reflects an anticipated premium increase of 5% based on the preliminary information provided by the health care providers. The following table reflects the changes in health care rate premiums the City has experienced from January 2011 to January 2015. The final rate premium that will be in effect for January 2016 will not be known until late summer or early fall. Premium Increases by Health Care Provider Calendar Year 2011 to 2015 2015 -05 -26 Agenda Packet Page 627 Date of Increase January 2011 Kaiser 5.1% AETNA 8.0% January 2012 12.2% 7.0% January 2013 1.5% 5.5% January 2014 10.2°% 8.2% January 2015 -3.4°% 8.9% Annual Average Premium Increase 4.9% 7.4% Total Increase (January 2011 — January 2015) 21.1% 33.0% 2015 -05 -26 Agenda Packet Page 627 44 General Fund Revenue Summary The estimated General Fund revenues for fiscal year 2015 -16 General Fund total $139.3 million excluding CIP related revenues. This reflects an increase of $3.3 million (2.4 %) when compared to the FY 2014 -15 third quarter projected revenues. The increase is largely due to increases in Franchise Fee, Property Tax, and Sales Tax revenue estimates. The following table compares the fiscal year 2015 -16 estimated revenues to the fiscal year 2014 -15 third quarter projections. CIP related revenues can vary significantly from year and are reported separately on the table below. General Fund Revenues In Thousands (000) 2015 -05 -26 Agenda Packet Page 628 Category Actual Qtr Projected Proposed Sales Tax $ 29,171 $ 30,320 $ 31,015 $ 695 Property Taxes $ 27,451 $ 28,930 $ 29,897 $ 967 Motor Vehicle License Fees $ 16,774 $ 17,884 $ 18,597 $ 713 Franchise Fees $ 8,845 $ 10,342 $ 11,426 $ 1,085 Transfers From Other Funds $ 10,097 $ 10,584 $ 9,988 $ (596) Interfund Reimbursements $ 9,901 $ 9,753 $ 9,360 $ (393) Utility Users Tax $ 17,525 $ 6,500 $ 6,500 $ - Charges for Services $ 6,476 $ 6,281 $ 6,476 $ 195 Transient Occupancy Taxes $ 2,633 $ 2,807 $ 2,891 $ 84 Use of Money and Property $ 2,523 $ 2,583 $ 2,677 $ 94 Other Agency Revenue $ 2,711 $ 2,511 $ 2,327 $ (184) Other Local Taxes $ 2,278 $ 2,130 $ 2,262 $ 133 Development Revenue $ 1,619 $ 1,223 $ 1,399 $ 177 Police Grants $ 807 $ 771 $ 1,279 $ 508 Licenses and Permits $ 1,162 $ 1,090 $ 1,135 $ 45 Fines, Forfeitures & Penalties $ 1,010 $ 1,403 $ 1,134 $ (270) Other Revenues $ 1,077 $ 881 $ 941 $ 60 Total Operating Budget $ 142,061 $ 135,993 $ 139,304 $ 3,311 Capital Projects $ 298 $ 1,809 $ 400 $ (1,409) Total General Fund $ 142,359 $ 137,802 $ 139,704 $ 1,902 2015 -05 -26 Agenda Packet Page 628 MAJOR REVENUE INCREASES BY CATEGORY • Franchise Fees — Franchise fee revenues are estimated to increase by $1.1 million in comparison to the fiscal year 2014 -15 third quarter projection. This increase is a result of the annualizing revenues from new franchise agreements negotiated by the City. • Property Taxes — This category reflects an increase of $1.0 million. Based on the most recent fiscal year 2014 -15 quarterly projections, property taxes are trending slightly higher than anticipated, mainly in secured property tax revenue. This trend is anticipated to be continued into the coming fiscal year. The projection for fiscal year 2015 -16 reflects a 4% increase in assessed valuation. • Other Local Taxes — When compared to the most recent fiscal year 2014 -15 quarterly projections, this category is anticipated to increase $0.1 million. This is due to higher than expected revenues from Business License Tax and Real property Transfer Taxes. • Use of Money and Property — Revenues are projected to increase by $0.1 million based on fees derived from the rental of City facilities. • Transient Occupancy Taxes — Transient occupancy tax revenues are projected to increase by $0.1 million from the fiscal year 2014 -15 third quarter projection. This increase reflects the continued upward trend for this revenue source. • Motor Vehicle License Fees — This category reflects an increase of $0.7 million, primarily in Motor • Vehicle License In -Lieu revenue. These revenues also reflect a 4% increase in assessed valuation. • Sales Tax — This category reflects an increase of $0.7 million when compared to the fiscal year 2014 -15 third quarter projections. Projections show sales tax revenues improving, and continuing with this trend, sales taxes are estimated to grow 2% from the current projections. • Police Grants — Police Grants revenue are anticipated to be $0.5 million better than the fiscal year 2014 -15 third quarter projections due to anticipated federal grant revenue. • Charges for Services — Revenues within this category are anticipated to increase by $0.2 million when compared to fiscal year 2014 -15 third quarter projections. This can be attributed to an anticipated increase in activity in recreation programs and reimbursements associated with the Jail facility. Other Revenues — This category reflects an increase of $0.1 million reflecting an anticipated increase in contributions from entertainment facilities within the City, such as Sleep Train Amphitheater and Aquatica SeaWorld's Waterpark. These revenue increases are partially offset by the decreases in the following revenue categories: • Capital Projects — This category reflects a decrease of $1.4 million when compared to fiscal year 2014- 15 third quarter projections. This is largely due to reimbursements for the Third Avenue Streetscape Improvement Phase II project which is accounted for in the prior year. • Development Revenue — This category reflects an increase of $0.2 million when compared to the most recent quarterly projections. This can be • attributed to an anticipated increase in workload for reimbursable projects. Transfers from Other Funds — This category reflects a decrease of $0.6 million when compared to the fiscal year 2014 -15 third quarter projections. This decrease can be attributed to a one -time transfer to the General Fund to offset fleet maintenance for the Fire and Police Departments from the TUT Common Fund approved as part of the fiscal year 2014 -15 adopted budget. Inter -fund Reimbursements —This category reflects a decrease of $0.4 million when compared to fiscal year 2014 -15 third quarter projections. This decrease can be attributed to one -time reimbursements for prior year activities and the closure of the Transit Fund. 2015 -05 -26 Agenda Packet Page 629 • Fines, Forfeitures and Penalties — Revenue in this • Other Agency Revenue — This category is category reflects a decrease of $0.3 million from anticipated to decrease from the fiscal year 2014 - the most recent quarterly projection. This is due to 15 third quarter projections due to the elimination lower anticipated Code Enforcement Violations and of one -time contributions from various agencies. False alarm Penalties revenue in fiscal year 2015- 16. The following charts provide a summary view of the major General Fund revenue sources. General Fund Revenues by Category Fiscal Year 2015 -2016 Transient Occupancy Taxes, 2.1% Sales Tax, 22.2% Other Revenues,\ 9.7% Utility Users Tax,— ' 4.7% Charges for l Services, 4.6% Franchise Fees, ty Taxes, -.4% Motor Vehicle License Fees, 13.3% Transfers from /Other Funds, 7.1% Interfund Reimbursements, 6.7% Note: Other Revenues include the following categories: Development Revenue, Other Agency Revenue, Other Local Taxes, Other Revenues, Use of Money & Property, Licenses and Permits, Police Grants, and Fines, Forfeitures & Penalties, CIP, and Other Revenue. N $160 C $140 $120 $100 $80 $60 $40 $20 Historical and Estimated General Fund Revenue Sources rl.�l. Cll ICCII GV V7 -GV 1V LI II VUr, I GV 1J -GV 1U FY 10 Actual FY 11 Actual FY 12 Actual FY 13 Actual FY 14 Actual • Property Taxes ■ Sales Tax ■ Franchise Fees ■TOT ■ Other Local Taxes ■ Development Rev. • Fines Forfeitures & Penalties ■ Use of Money & Property ■ Motor Vehicle Licenses • Other Agency Revenue ■ Charges for Services ■ Interfund Reimb. ■CIP Related Transfers In FY15 3rd Qtr FY16 Proposed Projected • Utility Users Taxes • Licenses & Permits • Police Grants • Other Revenues 2015 -05 -26 Agenda Packet Page 630 MAJOR REVENUE SOURCES The following is a description of the City's major revenue sources along with a brief discussion of the trends impacting these revenues for the fiscal year 2015 -16. Sales Tax Prior to fiscal year 2004 -05, the City received 1% of sales tax revenue applied to all taxable retail sales occurring within the City limits. Beginning in fiscal year 2004 -05, the State reduced the local allocation by 0.25% and applied these funds as security for the State's Economic Recovery Bonds. The State committed to replacing the 0.25% sales tax revenues dollar for dollar in local property taxes from the County Educational Revenue Augmentation Fund (ERAF). Fiscal year 2015 -16 is the final year that the City will receive a Triple Flip allocation. For forecasting and comparison purposes, sales tax revenues are projected at the full 1% rate. Sales tax revenues are collected by the State at a rate of 8.00% for the City of Chula Vista. The sales tax revenues are then allocated based on the following rates: State General Fund (includes K- 4.1875% 12 /Community Colleges) State Fiscal Recovery Fund (Triple Flip) (City Share) 0.2500% Local Jurisdiction (City or County of place sale /use) (City Share) 0.7500% Public Safety (Prop 172) 0.5000% County Realignment (Mental Health /Welfare /Public Safety) 1.5625% Countywide Transportation Fund 0.2500% San Diego County Regional Transportation Commission (TransNet) 0.5000% Total Sales Tax Rate — Chula Vista 1 8.0000% ' Total sales tax rates will vary by City due to local sales tax initiatives. For example, National City's sales tax rate is 9.00% due to voter approved increase of 1% funding public services. Sales tax revenue is highly sensitive to economic conditions, and reflects the factors that drive taxable sales, including the levels of unemployment, consumer confidence, per- capita income, and business investment. Sales tax revenue is the City's largest discretionary revenue source, accounting for 22.6% of total revenue for the General Fund in the fiscal year 2015 -16 proposed budget. Consumer spending decreased significantly nationwide due to the economic recession. However, recent trends show that sales tax revenues are beginning to increase due to improvement in local economic indicators. The positive trend is expected to continue in fiscal year 2015 -16 and is reflected in the projections with an increase of 2.3% or approximately $0.7 million from the fiscal year 2014- 15 third quarter projections. The graph below illustrates the decrease in Sales tax revenue, due to the economic recession, and the slow ascent to pre - recession levels. City of Chula Vista Sales Tax Revenues Fiscal Year 2008 — Fiscal Year 2016 Chula Vista continues to be challenged in the generation of taxable sales per capita when compared to other County cities. As noted on the following chart, taxable sales per capita for the City is only $2,916 while Del Mar has the highest taxable sales per capita at a rate of $8,360. This comparison indicates that the City's residents spend a high percentage of their retail dollars elsewhere. 2015 -05 -26 Agenda Packet Page 631 Taxable Sales Per Capita $9,000 $8,000 $7,000 $6,000 — $5,000 $4,000 $3,000 $2,000 _ $1,000 1 1 , - ■ � � � � � $0 cp M �' T C O aJ N t n O y aJ N O y aJ t U -0 N N +�+ a�J in O O C i N N U C c0a m 0 m M U O w 0 Ln m C c 0 O m w N w Ln E N U U N Z O ai Ln a L J C ■ Autos & Trans. ■ Building & Constr. Business & Industry ■ Food & Drugs C Fuel & Svc Stations General Goods Restrnts & Hotels Other Notes: 1. Based on 4th Quarter 2014Taxable Sales 2. Chula Vista Ranks 16`h out of 18 cities in San Diego County. 3. Prior budget documents reflected Sales Tax Per Capita information, which changes the scale of the presentation presented above but does not change the City's standing when compared to other cities. The City of Chula Vista continues to pursue development opportunities that have the potential to positively impact sales tax revenue for the City. The City is working on policies and programs that would increase the residential densities and office development in the Western area of the City. The City is also in discussions with developers on the possibility of locating additional automobile dealerships within the Chula Vista AutoPark. In Eastern Chula Vista the development of the Eastern Urban Center (Millenia) is moving forward and there are discussions about the development of new office space which would increase employment opportunities in the City. While all of these opportunities could provide more employees and residents to the City that would shop and dine in these areas, the projects are several years away from actually being built and occupied. In the short term, the City is reaching out to various retail tenants to showcase areas where they could locate new retail establishments within existing vacant retail space. In an effort to boost sales tax receipts, the City of Chula Vista launched the "Shop Chula Vista Now" campaign. The Shop Chula Vista Now campaign promotes purchases by Chula Vista residents, visitors, and employees at Chula Vista businesses. The program seeks to educate residents, public officials, businesses and community leaders about how buying goods and C H U LA VISTA NOW services locally CHULA VISTA'S translates into URBA114- OftCHARO more money shopthulavistnnnv -com for Chula Vista services, improves the success of local businesses, creates employment, and benefits the local economy and future of the City. The City is collaborating to promote the program at member businesses, on ShopChulaVistallow.com, Facebook and Twitter, as well as other communications vehicles. The website has been updated, a mobile /smartphone feature has been added, and a targeted advertising campaign generated a boost in awareness In fiscal year 2015 -16, staff will focus on additional cross - promotional efforts with local businesses as well as partner with Third Avenue Village Association and the Chula Vista Chamber of Commerce to secure participation from their members. 2015 -05 -26 Agenda Packet Page 632 Property Tax Property tax revenues represent a major funding source for the City of Chula Vista as well as other local jurisdictions. The distribution of property tax funding has changed over time as the State legislature and voter approved initiatives have altered property tax allocations among local jurisdictions. As a result, the City currently receives property tax in -lieu revenues and property tax in -lieu of vehicle license fee revenues. These revenues were meant to replace the Special Districts 3.4 %_ 2Cities in Lieu of Vehicle License 5.3 %_ zCounty in Lieu o- Vehicle License 8.0 4Redevelopment 10.7% Cities state -wide reallocation of sales tax and vehicle license fee revenues but do not increase the City's revenue base. Currently, the City of Chula Vista and other cities receive approximately 12.7% of each property tax dollar. The distribution of the property tax dollar among the other local jurisdictions is depicted in the graph below. ;y I ax collar ulstrioutlon t 'Cities in Lieu of Library 0.7% jurisdiction 'County in Lieu of & Use Tax 0.2% County 13.2% 3Schools 43.0% 1 Represents the exchange of Property Tax for Cities and County Sales and Use Tax as authorized under Assembly Bill 1766, chaptered August 2, 2003. Z Represents the exchange of Property Tax for Cities and County Vehicle License Fees as authorized under Senate Bill 1096, chaptered August 5, 2004. 3 Revenue for Schools has been reduced by the ERAF deficit as authorized under Senate Bill 1096, chaptered August 5, 2004. 4 Effective February 1, 2012 Redevelopment Agencies were dissolved and related revenue is allocated as provided by Health & Safety Code, Division 24, Part 1.85. Historical Change in Assessed Value City of Chula Vista and Countywide Comparison 25% 20% 15% 10% 5% 0% mom _5% 2005 2006 2007 2008 2009 10 11 2012 2013 2014 2015 -10% -15% ■ Chula Vista ■ County Overall Source: County of San Diego Assessors Office. 2015 -05 -26 Agenda Packet Page 633 Property tax revenues fell throughout the economic recession with Chula Vista being one of the hardest hit areas. From 2005 through 2008 Chula Vista kept pace or exceeded the County average assessed valuation growth as result of new development and increasing property values. During the economic recession the City's assessed valuation dropped significantly, and up until recently the change was negative. This history is depicted in the preceding graph. Over the last two fiscal years, the City's assessed value has increased and this positive trend is anticipated to continue into fiscal year 2015 -16 and is reflected in the estimated property tax revenues. Property tax revenues comprise the City's second largest discretionary revenue source and accounts for 21.4% of the total revenue for the General Fund. This revenue source is estimated at $29.9 million in the fiscal year 2015 -16 proposed budget and represents a $1.0 million (3.4 %) increase from the fiscal year 2014- 15 third quarter projections. Property Tax revenues are based on a 1.0% levy on the assessed value of all real property. Under the terms of Proposition 13, which was approved in California in 1978, annual increases in the assessed value are capped at a maximum of 2% per year unless there is a change in ownership or new construction. Annual increases in assessed value are limited by either the California Consumer Price Index (CPI) or the 2% cap, whichever is less. The recent recession resulted in decreases in assessed valuations due to lower prices from home re- sales. Also, some years experienced little inflation or negative inflation (deflation) that precluded the County Assessor from applying the normal increase of up to 2% to the assessment roll as permitted under the terms of Proposition 13. As recently as fiscal year 2012 -13, assessed values decreased by 0.7% based on data from the County of San Diego Assessor's Office. The reductions in assessed valuations and the less than full application of the 2% growth factor to the assessment roll resulted in several years of negative or no growth in property tax revenues for the City during the recession, as illustrated in the chart below. $35 N C $30 $25 $20 $15 $10 $5 *FY13 Property Tax includes a one -time payment related to the elimination of the City's Redevelopment Agency. The most recent change in the October to October CPI was 2.1 %, which will allow the full 2% growth rate to be applied to the assessment roll. The fiscal year 2015 -16 proposed budget has been increased to reflect this projected rate, as well as another estimated 2% growth in reassessed properties, for a total increase of 4% in assessed valuation. Historical Change in Assessed Value vs Changes in the California CPI 15% - - - -------------------------------------------------------- -Assessed Valuation Increase Calif. CPI 10% -- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5% - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 2.0% 0% -5% 10 qti �'� �y �'� �O Oti 03 Ci 01 00 O," O'� Oy 01 Ooi 1ti 13 1a 4 $ 4' 00 O'1' oiP FISCAL YEAR 2015 -05 -26 Agenda Packet Page 634 Franchise Fees Franchise fee revenues are generated from public utility sources such as San Diego Gas & Electric (SDG &E) (2% on gas and 1.25% on electricity), trash collection franchises (20% fee), and cable franchises (5% fee) conducting business within City limits. SDG &E collects the franchise fee from Chula Vista customers which can vary due to usage trends. Trash franchise fees and cable fees are more predictable due to the fixed rates charged and the monthly and quarterly receipt of the revenues respectively. Revenue growth is projected based on population and inflation factors. The following chart illustrates the historic and projected revenue trends for the City's Franchise Fee revenue. Overall, fiscal year 2015 -16 proposed budget franchise fee revenues are increasing by $1.1 million or 10.5% over the fiscal year 2014 -15 third quarter projections. This increase is attributable to the annualizing of revenues of the waste management franchise renewal negotiated by the City in fiscal year 2014 -15. Franchise Fee Revenues by Utility $10 c $9 $8 $7 $6 $5 $4 $3 $2 $1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16(Est.) (Prof.) Energy Trash /Cable 2015 -05 -26 Agenda Packet Page 635 Motor Vehicle License Fees With the State Budget Act of 2004, the allocation of VLF revenues to cities and counties was substantially changed. Since 2005 -06 the majority of VLF revenues for each city grew essentially in proportion to the growth in the change in gross assessed valuation. Due to the new formula by the State, 96% of the City's VLF revenues fluctuated with changes in assessed values within the City. The other 4% of VLF revenues received by the City were based on a per capita formula but has since been shifted per S1389. Provisions in SB89 shifted hundreds of millions of Vehicle License Fee revenues to fund the state law enforcement grants. Statewide, SB89 took $130 million of city general revenue and shifted it to save state law enforcement grant programs. This change applied to the 4% of VLF revenues that were based on a per capita formula. The City of Chula Vista lost approximately $700,000 annually due to the State take away. Only $100,000 is reflected in the City's fiscal year 2015 -16 estimated VLF revenues. $ts The chart above represents actual VLF revenues since fiscal year 2007 -08, the projection for fiscal year 2014- 15, and the fiscal year 2015 -16 estimates. In total the proposed fiscal year 2015 -16 VLF revenues are projected to increase by 4% when compared to the fiscal year 2014 -15 third quarter projections. This revenue is estimated to increase in accordance with projected increases in assessed values at 4 %. Utility Users Tax The City adopted its Utility Users Tax (UUT) in 1970. The City of Chula Vista imposes a UUT on the use of telecom at a rate of 4.75% of gross receipts. For natural gas services UUT is applied at a rate of $0.00919 per therm and $0.00250 per kilowatt on electricity services, which equates to a tax of approximately a 1% of utility charges. Fiscal year 2015 -16 energy related UUT is budgeted at $2.5 million. On April 12, 2013 the City approved a settlement agreement that resolved a class action lawsuit challenging the City's collection of the wireless telecom portion of the UUT from customers. The settlement received final approval of the court and became fully effective as of February 11, 2014. Pursuant to the terms of the Settlement Agreement, the City brought forward an action and approved Ordinance No. 3318, reducing the Telephone Users' Tax rate from 5% to 4.75 %. The reduction of the rate, and the possible impact of users transitioning to prepaid cards, has decreased the amount of anticipated wireless telephone users' tax funds. Telephone users' tax funds are budgeted at $4.0 million in the fiscal year 2015 -16 proposed budget, which includes wireless and landline revenues. Transient Occupancy Tax (TOT) The City of Chula Vista imposes a Transient Occupancy Tax (TOT) upon all hotel stays within the City boundaries. The TOT tax rate in the City is 10 %. The potential for significant revenue growth is feasible provided additional hotels are built capturing the market created by the growth in the eastern section of the City. Several potential new hotel developments are being proposed in the City primarily in the Millenia project and the Bayfront. As illustrated in the following graph, during the economic recession, TOT revenue dropped due to the lack of discretionary spending by consumers. However, the trend for city TOT revenues has been improving since 2010 as actual TOT revenue has increased on a yearly basis. Fiscal year 2014 -15 TOT revenues are projected to exceed the budget by $0.3 million. Continuing with this improving trend, fiscal year 2015- 16 TOT revenues have been increased by 3.0% over the fiscal year 2014 -15 third quarter TOT projections. 2015 -05 -26 Agenda Packet Page 636 TOT Revenues Percent Change Year by Year 15.0% 10.0% 5.0% , 0.0% -5.0% - 10.0% - 15.0% - 20.0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Proj. Proposed Other Revenue Revenue projections are continually reviewed and updated by City staff. As described above, major general revenues, such as property taxes, sales taxes, franchise fees, utility users tax, transient occupancy tax and motor vehicle license fees, are projected by the Finance Department based on prior history, growth and inflation projections, and economic climate. Additional assistance in the projection of revenues is provided by subject- matter experts such as the City's sales and property tax consultants, the County Assessor and by reviewing regional and local economic forecasts provided by the UCLA Anderson Forecast and the University of San Diego's Index of Leading Economic Indicators for San Diego County, respectively. 2015 -05 -26 Agenda Packet Page 637 r -i The fiscal year 2015 -16 General Fund budget of $139.7 million is based on funding from estimated program revenues totaling $30.6 million and discretionary revenues totaling $109.1 million. Program revenues are broadly defined as those revenues generated by a given activity (e.g. grant revenues, charges for services, licenses, permits). General revenues, or "discretionary revenues," are broadly defined as those revenues that are generated not by any given activity, but by general or specific taxing authority such as property taxes and sales tax. Police, 41% General Fund Net Cost Departments that generate small amounts of revenue relative to their size generally have higher net costs. Departments that generate large amounts of revenue relative to their size generally have lower net costs. The majority of discretionary revenue is allocated to public safety services, with Police at 41% followed by Fire at 22 %. The next highest portion was allocated to Public Works at 13 %. The following chart depicts the net cost of each department, excluding Non - Departmental, based on the Fiscal Year 2015 -16 Proposed Budget. General Fund Net Cost by Department Fiscal Year 2015 -2016 City Attorney, 3 %, Finance, 3% Administration, Other, 24% ITS, 3% Human Resources, 2 %_ Library, 3% Boards/ Recreation72%-j Commissions, Less than 1% Fire, 22% Development Public Works, 13% Animal Care Facility, 1% Services, 0.8% City Council, 2% City Clerk, 1% 2015 -05 -26 Agenda Packet Page 638 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 639 City of Chula Vista Proposed Budge PW- 44 General Fund Department Summary The General Fund budget funds the day -to -day operations of most City services. For fiscal year 2015- 2016 the proposed General Fund operating budget totals $139.7 million. This funds the following departments: • Mayor and City Council • Boards and Commissions • City Clerk • City Attorney • Administration • Information and Technology Services • Human Resources • Finance • Non - Departmental • Animal Care Facility • Development Services • Police • Fire • Public Works • Recreation • Library To follow is a series of summary reports that reflect the anticipated revenues, expenditures, and staffing information for each of the General Fund departments. 2015 -05 -26 Agenda Packet Page 640 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 641 MISSION STATEMENT The City Council is comprised of a fulltime Mayor and four part -time Councilmembers. The Mayor and City Council are elected at- large, and each holds office for a four -year term. The City Council reviews and approves the budget, enacts ordinances, authorizes public improvements, adopts traffic regulations, approves contracts, sits as the Housing Authority, and oversees the Successor Agency to the Redevelopment Agency. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Capital Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Revenue from Other Agencies Charges for Services Other Revenue TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 600,298 554,996 637,749 819,432 157,428 147,795 125,323 6,022 141,499 133,609 163,117 211,923 191,621 196,816 212,406 263,168 59,290 44,886 52,988 74,908 1,150,136 1,078,102 1,191,583 1,375,453 46,641 53,276 113,033 108,479 0 2,789 3,190 3,190 1,614 1,114 1,520 1,520 48,255 57,179 117,743 113,189 $1,198,391 $1,135,281 $1,309,326 $1,488,642 39,144 0 0 0 39,118 4,254 0 0 4,525 0 0 0 $82,787 $4,254 $0 $0 7% 0% N/A N/A 14.00 14.00 14.00 15.00 2015 -05 -26 Agenda Packet Page 642 MISSION STATEMENT The process of establishing boards and commissions is one that began with the City Charter as a method to give citizens a greater voice in the determination of policies at all levels of government. Four commissions were established by the Charter- the Planning Commission, the Board of Library Trustees, Civil Service Commission, and the Parks & Recreation Commission. All other boards and commissions have been established through an ordinance or resolution since that time in order to meet a specific need of the City Council. The members for Chartered commissions are appointed by a majority vote of the City Council, with applications for these appointments accepted throughout the year from all interested residents. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Overtime Retirement Benefits Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Other Revenue TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 0 0 1,985 0 0 0 15 0 0 0 2,000 0 7,210 5,443 138,576 11,476 7,210 5,443 138,576 11,476 $7,210 $5,443 $140,576 $11,476 260 0 0 0 $260 $0 $0 $0 4% N/A N/A N/A 0.00 0.00 0.00 0.00 2015 -05 -26 Agenda Packet Page 643 MISSION STATEMENT The City Clerk's Office is committed to accurately recording and preserving the actions of the City Council; safeguarding all vital, historic and permanent records of the City; providing information and support to the City Council, City staff, and the public in a timely, courteous and fiscally responsible manner; and administering open and free elections in accordance with statutory requirements. SUMMARY OF DEPARTMENT RESOURCES Non - Personnel Expenses - 1- CATEGORY BUDGET 192,759 166,029 R• JECTED PROPO EXPENDITURES 0 1,200 0 0 Personnel Expenses 0 6,954 2,254 8,950 Salaries 381,069 403,209 429,854 486,084 Hourly Wages 0 0 16,560 19,000 Overtime 133 0 0 0 Health Benefits 66,087 68,736 73,576 91,849 Retirement Benefits 111,005 125,383 138,019 163,787 Other Personnel Expense 23,642 21,624 17,675 30,599 Personnel Expenses Subtotal 581,936 618,952 675,684 791,319 Non - Personnel Expenses Supplies and Services 192,759 166,029 305,160 140,766 Other Expenses 0 1,200 0 0 Capital 0 6,954 2,254 8,950 Utilities 454 678 521 750 Non - Personnel Expenses Subtotal 193,213 174,861 307,935 150,466 TOTAL EXPENDITURES $775,149 $793,813 $983,619 $941,785 REVENUES Revenue from Other Agencies 0 2,345 0 0 Charges for Services 21,122 10,477 9,510 11,600 Other Revenue 18,231 16,730 36,430 0 TOTAL REVENUES $39,353 $29,552 $45,940 $11,600 REVENUE RECOVERY % 5% 4% 5% 1% AUTHORIZED FULL TIME POSITIONS 5.00 5.00 5.00 6.00 2015 -05 -26 Agenda Packet Page 644 MISSION STATEMENT The mission of the City Attorney's Office is to provide high quality legal services to the City in order for the City to operate in a lawful and effective manner, safeguard taxpayer resources and to improve quality of life for City residents. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Capital Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Charges for Services Other Revenue Transfers In TOTAL REVENUES 1,389,582 1,446,103 1,530,410 1,662,578 0 0 0 1,816 162,199 173,109 171,901 220,755 381,220 425,709 464,178 531,572 47,983 36,342 59,937 53,569 1,980,984 2,081,263 2,226,426 2,470,290 492,282 415,724 409,645 431,857 0 2,891 4,948 4,948 1,974 1,732 2,200 1,850 494,256 420,347 416,793 438,655 $2,475,240 $2,501,610 $2,643,219 $2,908,945 45,599 65,916 73,694 73,694 110,110 66,668 99,215 95,126 8,163 9,453 0 0 $163,872 $142,037 $172,909 $168,820 REVENUE RECOVERY % 7% AUTHORIZED FULL TIME POSITIONS 13.00 6% 7% 6% 13.00 13.00 14.00 2015 -05 -26 Agenda Packet Page 645 MISSION STATEMENT The mission of the Administration Department is to provide the leadership necessary for the implementation of City Council policies, administration of the organization and delivery of services to our community. SUMMARY OF DEPARTMENT RESOURCES Non - Personnel Expenses I - 1- CATEGORY BUDGET 131,249 212,732 R• R• • EXPENDITURES 0 3,423 4,936 4,936 Personnel Expenses 1,205 1,193 1,412 1,520 Salaries 1,176,180 1,529,195 1,744,671 2,059,482 Hourly Wages 122,006 41,690 16,938 0 Overtime 0 0 216 0 Health Benefits 133,607 179,955 202,920 259,160 Retirement Benefits 355,523 486,292 568,236 690,507 Other Personnel Expense 53,380 71,397 106,801 (28,895) Personnel Expenses Subtotal 1,840,696 2,308,529 2,639,781 2,980,254 Non - Personnel Expenses Supplies and Services 131,249 212,732 349,269 248,159 Capital 0 3,423 4,936 4,936 Utilities 1,205 1,193 1,412 1,520 Non - Personnel Expenses Subtotal 132,454 217,348 355,617 254,615 TOTAL EXPENDITURES $1,973,150 $2,525,877 $2,995,398 $3,234,869 REVENUES Charges for Services 5,411 7,545 4,250 57,050 Other Revenue 136,260 103,454 62,500 260,405 Transfers In 0 77,210 77,210 0 TOTAL REVENUES $141,671 $188,209 $143,960 $317,455 REVENUE RECOVERY % 7% 7% 5% 10% AUTHORIZED FULL TIME POSITIONS 10.00 13.00 14.00 16.75 2015 -05 -26 Agenda Packet Page 646 MISSION STATEMENT The mission of the Information Technology Services Department is to provide technology, planning, development support and management to City employees and departments so they can perform their jobs effectively and meet their strategic goals for the City. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Capital Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Use of Money & Property Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 1,482,928 1,407,617 1,500,259 1,561,141 0 18,780 13,290 0 230,732 223,496 219,338 255,352 408,137 413,476 457,130 504,718 84,317 66,476 84,263 95,485 2,206,114 2,129,845 2,274,279 2,416,696 583,841 533,144 705,190 865,157 63,901 81,018 89,099 148,500 43,649 34,303 34,180 47,045 691,391 648,465 828,469 1,060,702 $2,897,505 $2,778,310 $3,102,748 $3,477,398 13 70 0 0 4,742 7,128 10,025 10,000 5,488 837 6,699 20,000 11,680 35,348 10,000 8,900 $21,923 $43,383 $26,724 $38,900 1% 2% 1% 1% 18.00 17.00 17.00 17.00 2015 -05 -26 Agenda Packet Page 647 MISSION STATEMENT The mission of the Human Resources Department is to provide superior services to employees, departments, and the public to ensure an informed, quality work force and community, while treating everyone with fairness, dignity, and respect. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Overtime Health Benefits Retirement Benefits Professional Enrichment Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Capital Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 1,202,205 1,160,951 1,264,800 1,355,354 25,138 23,572 29,956 16,708 0 40 0 204 172,884 197,041 195,213 239,982 331,863 341,690 386,360 428,242 0 (1,025) 0 0 68,607 56,648 62,468 77,419 1,800,697 1,778,917 1,938,797 2,117,909 250,617 299,310 332,112 422,305 7,609 234 2,299 0 0 9,307 9,264 8,920 1,613 1,364 1,289 1,530 259,839 310,215 344,964 432,755 $2,060,536 $2,089,132 $2,283,761 $2,550,664 82,285 90,196 65,200 67,000 156,735 97,823 80,175 70,000 40,653 42,221 35,000 35,000 $279,673 $230,240 $180,375 $172,000 14% 11% 8% 7% 15.00 15.00 15.00 16.00 2015 -05 -26 Agenda Packet Page 648 MISSION STATEMENT The Chula Vista Finance Department is dedicated to supporting the long -term financial stability of the City and enhancing public and organizational trust through integrity of financial reporting and sound financial practices. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Capital Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Other Local Taxes Fines, Forfeitures, Penalties Use of Money & Property Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 1,994,549 2,130,946 2,088,119 2,172,086 101,994 108,037 40,024 55,325 314,933 351,061 358,300 394,253 559,652 626,263 628,983 700,642 118,569 110,679 117,802 135,968 3,089,697 3,326,986 3,233,228 3,458,274 160,623 150,177 220,300 185,530 34 0 0 0 0 12,408 15,499 15,499 2,334 2,164 1,762 2,500 162,991 164,749 237,561 203,529 $3,252,688 $3,491,735 $3,470,789 $3,661,803 61,038 66,445 38,675 60,000 25,054 30,844 31,266 30,000 106,284 109,722 103,994 108,364 66,798 47,972 30,007 57,750 688,288 321,122 359,253 466,400 326,744 317,274 348,500 348,500 $1,274,206 $893,379 $911,695 $1,071,014 39% 26% 26% 29% 26.00 28.00 28.00 27.00 2015 -05 -26 Agenda Packet Page 649 MISSION STATEMENT The Non - Departmental budget reflects expenditures and expenditure savings that are not directly related to any single department. The budget includes such items as insurance, interest expense, transfers out to the Public Liability fund, and transfers out to various Debt Service Funds for the General Fund's debt service obligations. This budget also includes all General Fund discretionary revenues. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Health Benefits Retirement Benefits Professional Enrichment Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Capital Utilities Transfers Out CIP Project Expenditures Non -CIP Project Expenditures Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Property Taxes Other Local Taxes Use of Money & Property Revenue from Other Agencies Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 0 0 513,611 331,387 6,850 0 0 0 (6,014) 448 7,581 8,427 143 44,309 98,590 (232,064) 85,624 105,263 121,250 209,800 0 2,046 2,635 (1,818,574) 86,603 152,066 743,667 (1,501,024) 2,530,471 1,935,027 2,872,571 1,596,447 211,459 223,477 476,867 167,500 1,430,222 0 270,000 0 778 18,887 52,466 61,327 5,499,121 14,493,456 4,948,916 5,483,642 1,172,734 849,234 5,518,759 510,000 0 19,500 38,100 490,316 10,844,785 17,539,581 14,177,679 8,309,232 $10,931,388 $17,691,647 $14,921,346 $6,808,208 27,876,534 27,451,232 28,930,278 29,896,924 47,119,435 61,200,066 52,859,490 54,850,192 1,107,626 1,412,411 1,507,963 1,586,709 18,009,284 17,631,740 18,503,595 19,135,591 24,379 0 65 0 2,465,916 1,456,167 2,737,360 1,794,339 1,901,130 2,292,658 2,511,130 1,869,717 $98,504,304 $111,444,274 $107,049,881 $109,133,473 N/A N/A N/A N/A 0.00 0.00 0.00 0.00 2015 -05 -26 Agenda Packet Page 650 MISSION STATEMENT The mission of the Chula Vista Animal Care Facility is to ensure the health and safety of animals and citizens in Chula Vista, Imperial Beach, National City and Lemon Grove. SUMMARY OF DEPARTMENT RESOURCES Non - Personnel Expenses ., , ,, ., CATEGORY BUDGET 519,357 555,060 R• JECTED PROPO EXPENDITURES 2,962 3,503 4,133 4,500 Personnel Expenses 0 16,948 77,282 6,282 Salaries 968,728 1,033,350 1,077,411 1,168,141 Hourly Wages 183,534 199,798 198,592 205,930 Overtime 54,154 54,914 60,713 53,168 Health Benefits 227,328 244,571 251,595 290,404 Retirement Benefits 295,664 324,638 335,346 384,156 Other Personnel Expense 85,461 75,979 92,593 104,002 Personnel Expenses Subtotal 1,814,869 1,933,250 2,016,249 2,205,801 Non - Personnel Expenses 143,871 150,879 135,145 132,600 Supplies and Services 519,357 555,060 600,055 569,555 Other Expenses 2,962 3,503 4,133 4,500 Capital 0 16,948 77,282 6,282 Utilities 42,548 43,224 39,984 41,495 Non - Personnel Expenses Subtotal 564,867 618,735 721,454 621,832 TOTAL EXPENDITURES $2,379,736 $2,551,985 $2,737,704 $2,827,633 REVENUES Licenses and Permits 143,871 150,879 135,145 132,600 Fines, Forfeitures, Penalties 300 21,533 34,252 20,000 Use of Money & Property 112 83 41 0 Charges for Services 305,916 260,337 225,008 252,600 Other Revenue 763,949 953,207 1,068,208 947,785 TOTAL REVENUES $1,214,148 $1,386,039 $1,462,653 $1,352,985 REVENUE RECOVERY % 51% 54% 53% 48% AUTHORIZED FULL TIME POSITIONS 19.25 20.50 21.00 21.00 2015 -05 -26 Agenda Packet Page 651 MISSION STATEMENT The mission of the Development Services Department is to guide the physical development of the City through the implementation of the General Plan and building Codes. We are committed to enhancing the quality of life in our community by planning for sound infrastructure and public services, protection of the environment, and promotion of high quality social and economic growth. SL 1V11Vl,An x yr ijr r AATly1ENT rc r,3v LJRUES EXPENDITURES Personnel Expenses Salaries Hourly Wages Overtime Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Licenses and Permits Fines, Forfeitures, Penalties Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 1,515,396 1,363,715 1,527,052 1,476,258 96,491 41,124 32,247 0 0 0 36 1,530 247,156 241,475 260,713 273,244 435,017 416,462 462,864 479,368 79,187 59,767 70,149 85,478 2,373,247 2,122,543 2,353,061 2,315,878 138,831 133,863 136,287 146,322 10,915 10,950 10,950 12,000 1,840 2,033 2,113 2,200 151,586 146,846 149,350 160,522 $2,524,833 $2,269,389 $2,502,411 $2,476,400 388,123 438,010 402,937 339,328 322,563 345,541 508,008 387,100 400,466 401,479 176,614 275,370 443,801 427,561 325,964 326,661 332,061 204,408 348,738 333,777 $1,887,014 $1,816,999 $1,762,261 $1,662,236 75% 80% 70% 67% 20.50 19.50 20.25 20.25 2015 -05 -26 Agenda Packet Page 652 MISSION STATEMENT The mission of the Chula Vista Police Department is to enhance the quality of life in the City of Chula Vista by: • Providing a proactive and professional level of police service ensuring safety through commitment, integrity and trust • Managing resources effectively • Treating all persons with fairness, respect and dignity • Maintaining a partnership with the community to meet contemporary and future challenges SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Overtime Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Capital Utilities Transfers Out Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Licenses and Permits Fines, Forfeitures, Penalties Use of Money & Property Revenue from Other Agencies Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 22,593,757 22,463,339 23,541,480 25,480,762 404,362 408,678 438,840 229,931 2,606,094 3,011,310 3,359,567 2,494,418 3,595,903 3,801,570 3,865,104 4,599,403 7,439,191 7,562,935 8,240,012 9,191,352 2,586,528 2,484,890 2,544,768 2,777,850 39,225,835 39,732,722 41,989,771 44,773,716 2,798,583 3,251,758 4,321,845 3,141,063 83,300 105,003 89,290 123,243 0 188,934 91,686 0 373,144 404,786 507,889 570,942 175,000 600,000 0 162,989 3,430,027 4,550,481 5,010,710 3,998,237 $42,655,862 $44,283,203 $47,000,481 $48,771,953 256,465 151,341 181,664 250,000 479,410 473,750 721,286 533,700 0 9,666 4,203 8,000 1,360,671 1,127,508 1,156,054 1,579,824 4,413,008 4,247,798 4,095,126 4,129,158 32,065 36,214 42,492 37,453 617,974 491,630 556,927 404,445 $7,159,593 $6,537,907 $6,757,752 $6,942,580 17% 15% 14% 14% 313.00 319.00 321.50 322.50 2015 -05 -26 Agenda Packet Page 653 MISSION STATEMENT The mission of the Fire Department is to protect life, environment, and property SUMMARY OF DEPARTMENT RESOURCES Non - Personnel Expenses Supplies and Services ., , ,, ., CATEGORY BUDGET 450 0 R• JECTED PROPO EXPENDITURES 33,215 103,242 0 0 Personnel Expenses 169,843 183,389 189,533 226,715 Transfers Out 0 322,582 334,726 407,430 Salaries 10,390,812 10,818,654 10,912,213 11,614,479 Hourly Wages 47,529 69,217 105,923 1,336 Overtime 4,701,459 4,057,858 4,360,577 3,417,445 Health Benefits 1,708,694 1,909,031 2,015,015 2,246,002 Retirement Benefits 3,559,767 3,916,950 4,148,735 4,650,816 Other Personnel Expense 1,007,694 951,240 1,020,593 1,038,294 Personnel Expenses Subtotal 21,415,955 22,045,532 22,897,782 23,375,802 Non - Personnel Expenses Supplies and Services 2,259,085 2,029,541 2,127,870 1,911,336 Other Expenses 450 0 0 0 Capital 33,215 103,242 0 0 Utilities 169,843 183,389 189,533 226,715 Transfers Out 152,226 43,060 60,230 62,326 Non - Personnel Expenses Subtotal 2,614,819 2,359,232 2,377,633 2,200,377 TOTAL EXPENDITURES $24,030,774 $24,404,764 $25,275,416 $25,576,179 REVENUES Licenses and Permits 530,069 460,319 464,743 552,519 Use of Money & Property 7,800 14,300 15,600 15,600 Revenue from Other Agencies 664,407 719,695 666,907 664,000 Charges for Services 584,631 563,717 568,468 469,157 Other Revenue 514,475 450,574 553,453 92,157 Transfers In 50,000 559,846 634,333 833,510 TOTAL REVENUES $2,351,382 $2,768,451 $2,903,503 $2,626,943 REVENUE RECOVERY % 10% 11% 11% 10% AUTHORIZED FULL TIME POSITIONS 135.00 136.00 136.00 136.00 2015 -05 -26 Agenda Packet Page 654 MISSION STATEMENT The mission of the Public Works Department is to provide and manage the City's infrastructure, parks and open space through high quality operations, maintenance and construction in order to optimize mobility, public and environmental health and safety. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Overtime Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Capital Utilities Transfers Out Non -CIP Project Expenditures Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Licenses and Permits Fines, Forfeitures, Penalties Use of Money & Property Revenue from Other Agencies Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 10,393,670 10,579,045 10,817,300 11,169,396 336,803 304,046 371,171 367,927 166,741 201,817 198,048 207,545 1,916,863 2,061,900 2,054,847 2,302,340 2,915,293 3,173,538 3,336,129 3,643,005 791,324 681,145 786,087 874,237 16,520,694 17,001,491 17,563,582 18,564,450 3,391,045 3,559,967 3,933,675 3,665,992 118,063 117,387 139,966 128,000 41,784 115,635 66,921 61,921 3,463,601 3,632,468 3,902,766 4,156,884 184,936 385,321 390,802 390,290 99,525 113,674 217,901 18,700 7,298,954 7,924,452 8,652,031 8,421,787 $23,819,648 $24,925,943 $26,215,613 $26,986,237 76,991 114,896 47,488 35,000 0 900 0 0 241,084 264,252 207,856 247,700 32,344 (10,597) 27,407 0 911,050 878,137 886,091 828,440 7,530,368 7,177,535 6,881,661 6,530,998 6,373,042 6,065,093 6,062,637 6,154,472 $15,164,879 $14,490,216 $14,113,140 $13,796,610 64% 58% 54% 162.00 163.00 163.00 51% 164.50 2015 -05 -26 Agenda Packet Page 655 MISSION STATEMENT The mission of the Recreation Department is to enrich our community through recreational opportunities and services. SUMMARY OF DEPARTMENT RESOURCES Non - Personnel Expenses 698,906 I - 1- 652,883 CATEGORY BUDGET 549,502 474,854 R• JECTED PROPO EXPENDITURES 16,055 43,603 205,451 115,657 Personnel Expenses 0 22,414 2,523 2,523 Salaries 1,038,618 1,122,152 1,139,707 1,226,239 Hourly Wages 825,536 907,257 938,183 1,014,577 Overtime 4,253 1,487 449 5,100 Health Benefits 183,892 213,558 214,253 241,333 Retirement Benefits 349,075 395,755 412,263 475,696 Other Personnel Expense 81,770 61,605 68,189 80,583 Personnel Expenses Subtotal 2,483,144 2,701,814 2,773,044 3,043,528 Non - Personnel Expenses 698,906 674,453 687,144 652,883 Supplies and Services 549,502 474,854 583,396 621,146 Other Expenses 16,055 43,603 205,451 115,657 Capital 0 22,414 2,523 2,523 Utilities 313,857 346,008 384,923 420,057 Non - Personnel Expenses Subtotal 879,414 886,879 1,176,293 1,159,383 TOTAL EXPENDITURES $3,362,558 $3,588,693 $3,949,337 $4,202,911 REVENUES Use of Money & Property 698,906 674,453 687,144 652,883 Revenue from Other Agencies 4,331 5,418 6,683 5,330 Charges for Services 1,372,499 1,280,852 1,141,526 1,354,344 Other Revenue 72,457 115,745 86,509 50,773 TOTAL REVENUES $2,148,193 $2,076,468 $1,921,862 $2,063,330 REVENUE RECOVERY % 64% 58% 49% 49% AUTHORIZED FULL TIME POSITIONS 17.00 17.00 17.00 17.00 2015 -05 -26 Agenda Packet Page 656 MISSION STATEMENT The mission of the Chula Vista Public Library is to increase knowledge and enrich lives within the community. We accomplish this by connecting people equitably to responsive programs, services and resources in a manner that reflect the ideals of a democratic society. SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Overtime Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non - Personnel Expenses Supplies and Services Other Expenses Capital Utilities Non - Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Fines, Forfeitures, Penalties Use of Money & Property Revenue from Other Agencies Charges for Services Other Revenue Transfers In TOTAL REVENUES REVENUE RECOVERY % AUTHORIZED FULL TIME POSITIONS 1,336,308 1,400,375 1,417,854 1,529,015 533,010 498,601 620,796 665,707 0 49 0 0 250,375 277,300 261,321 318,698 440,987 481,552 503,778 587,364 102,460 90,203 105,766 121,296 2,663,140 2,748,080 2,909,515 3,222,080 256,597 266,062 306,177 203,852 360 360 400 400 0 38,257 0 0 262,386 283,617 299,991 352,925 519,343 588,296 606,568 557,177 $3,182,483 $3,336,376 $3,516,083 $3,779,257 175,620 137,168 108,500 163,000 39,665 37,958 55,900 57,550 2,000 2,000 5,000 2,000 80,484 75,956 77,000 115,013 80,751 52,097 102,800 8,850 0 2,352 0 0 $378,520 $307,531 $349,200 $346,413 12% 9% 10% 9% 21.10 21.50 21.50 22.50 2015 -05 -26 Agenda Packet Page 657 DEVELOPMENT SERVICES FUND 2015 -05 -26 Agenda Packet Page 658 2015 -05 -26 Agenda Packet Page 659 The Development Services fund accounts for revenues and expenditures related to the processing of development plans and permits. The fund is comprised of three divisions, Planning, Building, and Engineering, which provide direct services to property owners, developers, and the City as required for the entitlement and /or improvement of property. The services provided encompass most development activities, including land use entitlements; public infrastructure, open space, and landscape planning; public infrastructure construction, grading and building permits. Historically, the staff involved in the processing of development plans and permits were reflected in the City's General Fund. Beginning in fiscal year 2008 -09, all the staff involved in the processing of development plans and permits were budgeted directly in the Development Services Fund. Consolidating all development service cost centers in a single fund clearly delineates development related costs and revenues from General Fund supported services; thereby making the nexus between development related activities, costs, fees, and revenues more transparent. This also allows operating expenses to be adjusted to coincide with changes in demand for development services. This adjustment of operating expenses aids in avoiding impacts to the General Fund when revenue fluctuations occur as result of changes in development activity. Beginning in fiscal year 2011 -12, the Development Services fund was accounted for as an enterprise fund. Development Services Fund REVENUES In fiscal year 2015 -16 revenues are projected to be sufficient to support projected expenditures - the proposed budget for the Development Service Fund is balanced. The fiscal year 2015 -16 Development Services budget reflects an overall increase of 16% in projected revenues when compared to the most recent quarterly projections. However, it is important to note that the most current fiscal year 2014 -15 projections estimate that revenues will be short of budget. It is anticipated that this fund will end the current fiscal year (FY2015) with an $882,000 deficit. Staff will continue to monitor revenue trends and may need to make adjustments accordingly. Staff recognizes it may require modification to its existing composition of staff to remain responsive to the type of work being received. The proposed fiscal year 2015 -16 budget reflects the continued effort of balancing development related resources with the demand for development related services. Development related revenues consist of two categories: development processing fee revenues and deposit based revenues. Development processing fee revenues include building permits, planning fees, other building department fees, and engineering fees. Deposit based revenues are generated through staff time reimbursements related to specific projects. The table below provides a comparison of the projected revenue for fiscal year 2014 -15 compared to the estimated fiscal year 2015 -16 revenues. The City is anticipating that the following major projects will continue to move forward in fiscal year 2015 -16: • Bayfront Redevelopment Project • Millenia Project • Otay Ranch Villages • University Land Entitlement Projects 2015 -05 -26 Agenda Packet Page 660 Development Services Fund Revenues Fiscal Years 2014 to 2016 Projections for fiscal year 2015 -16 revenues were based on a trend analysis of fiscal year 2013 -14 actual revenues and fiscal year 2014 -15 projections. A summary of the notable changes by category are listed below: Licenses and Permits — The decrease in this category of $6,502 reflects the projected decrease in development activity. Charges for Service — The increase in this category of $1.2 million reflects the change in nature or composition of development activity moving from processing of large master planned communities to processing of improvement and development plans. The largest increase in this category is in Plan Checking Fees. Other Revenue — The proposed fiscal year 2015 -16 budget reflects a decrease of $212,684 from the fiscal year 2014 -15 third quarter projections. This decrease is due to the anticipated decrease in CIP related staff time reimbursements. Transfers In — The fiscal year 2015 -16 proposed budget reflects a change of $78,477 in projected transfers from the General Fund. The increase is due to a reimbursement for the General Fund's portion of the Accela software upgrade. This reimbursement is to be paid by the General Fund in five (5) equal payments for five (5) years. EXPENDITURES The fiscal year 2015 -16 proposed budget includes funding for 44.5 positions in the Development Services Fund. This reflects a net decrease of 1.0 position when compared to the fiscal year 2014 -15 Council adopted budget. These changes are a result of the following personnel changes: • The addition of 1.0 Building Inspection Manager and 1.0 Senior Plan Check Technician • The elimination of 1.0 Senior Planner, 1.0 Senior Office Specialist, and 1.0 Landscape Planner II positions As illustrated in the following table, Personnel Services expenditures in the Development Services fund are the largest component of the Fund's expenditures, much the same as the City's General Fund budget. The Transfers Out expenditure category reimburses the General Fund for citywide and departmental overhead. Reimbursed citywide overhead includes support costs associated with Finance, Human Resources, Information Technology Services, Custodial Services, and City Attorney. 2015 -05 -26 Agenda Packet Page 661 ■ Development Services Fund Expenditures Fiscal Year 2014 to 2016 Fy 2111-14 FY 2114-1.r, FY 2415-14 Personnel Services $ 5,367,696 $ 5,434,240 $ 5,734,293 $ 300,053 6% Supplies and Services $ 664,015 $ 304,015 $ 268,532 $ (35,483) -12% Other Expenses $ 68,663 $ 93,807 $ 98,812 $ 5,005 5% Capital $ 8,316 $ 11,340 $ 9,500 $ (1,840) -16% Transfers Out $ 1,143,810 $ 1,328,299 $ 1,187,557 $ (140,742) -11% Utilities $ 4,441 $ 4,828 $ 5,000 $ 172 4% Total Expenditures $ 7,256,941 $ 7,176,529 $ 7,303,694 $ 127,165 2% A summary of the notable changes between the fiscal • Capital — The Capital category reflects a net year 2014 -15 third quarter projections to the fiscal year decrease of $1,840 when compared to the most 2015 -16 proposed budget by category are listed as recent fiscal year 2014 -15 projections. This follows: decrease is due lower anticipated copier lease payments. • Personnel Services — This category reflects a net increase of $300,053 when compared to the most recent fiscal year 2014 -15 projections. The increase can be attributed to the annualized costs of salary increases approved by Council in fiscal year 2014- 15, the addition of 1.0 Building Inspection Manager and 1.0 Senior Plan Check Technician, and increases to various personnel costs including overtime, PERS, flex /insurance, Worker's Comp charges, and vacation in -lieu expenses. • Transfers Out — The transfers out expenditure category reflects a decrease of $140,742 when compared to the fiscal year 2014 -15 third quarter projections. This transfer reflects the reimbursement amount from the Development Services Fund to the General Fund for department and citywide overhead costs. The decrease is due a reduction in citywide and department overhead allocated to this fund. These increases were partially offset by a reduction Utilities — The utilities category reflects the of 1.0 Senior Planner, 1.0 Senior Office Specialist, projected amounts necessary for fiscal year 2015- 1.0 Landscape Planner II, and freezing the funding 16 projected utility expenses. This change is for a Development Services Technician II. consistent with the projected costs for fiscal year 2014 -15. • Supplies and Services — The proposed budget reflects a net decrease of $35,483 in this category. This decrease is due to the shift of a portion of software maintenance fees to the General Fund for its share of Accela. The decrease was partially offset by an increase in contractual services that will be used in the plan check process. • Other Expenses — The Other Expenses category reflects an increase of $5,005 in comparison to the fiscal year 2014 -15 third quarter projections. This is due to an increased volume of credit card transaction fees charged to the City for customers who choose to pay fees using a credit card. 2015 -05 -26 Agenda Packet Page 662 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 663 EXPENDITURES Personnel Services Supplies and Services Other Expenses Capital Utilities Transfers Out TOTAL EXPENDITURES REVENUES Other Local Taxes Licenses and Permits Charges for Services Other Revenue Transfers In TOTAL REVENUES NET FUND ACTIVITY FUND SUMMARY 5,214,558 5,367,696 5,434,240 405,599 664,015 304,015 92,205 68,663 93,807 0 8,316 11,340 4,951 4,441 4,828 1,175,724 1,143,810 1,328,299 $6,893,037 $7,256,941 $7,176,529 6,796 7,845 7,072 2,399,259 1,735,402 1,979,717 3,502,059 3,776,359 3,187,658 746,222 819,006 671,684 439,238 628,181 448,137 $7,093,574 $6,966,793 $6,294,268 $200,537 ($290,148) ($882,261) 5,734,293 268,532 98,812 9,500 5,000 1,187,557 $7,303,694 7,000 1,973,215 4,337,865 459,000 526,614 $7,303,694 $0 2015 -05 -26 Agenda Packet Page 664 STAFFING SUMMARY - 408 Assoc Engineer 3.00 - - 3.00 Assoc Plan Check Engineer - 3.00 - 3.00 Assoc Planner 4.00 - - 4.00 Building Inspection Mgr - - 1.00 1.00 Building Inspector II 4.00 - - 4.00 Building Inspector III 1.00 - - 1.00 Building Off /Code Enf Mgr 1.00 - - 1.00 Development Services Tech 1 1.00 - - 1.00 Development Svcs Tech Iii 6.00 - - 6.00 Devlpmt Svcs Counter Mgr 1.00 - - 1.00 Engineering Tech 11 1.00 - - 1.00 Landscape Architect 2.50 - - 2.50 Landscape Planner 11 1.00 - (1.00) - Plan Check Supervisor 1.00 - - 1.00 Planning Manager 1.00 - - 1.00 Plans Examiner 3.00 (3.00) - - Principal Civil Engineer 1.00 - - 1.00 Principal Planner 2.00 - - 2.00 Secretary 1.00 - - 1.00 Sr Building Inspector 1.00 - - 1.00 Sr Engineering Technician 1.00 - - 1.00 Sr Office Specialist 2.00 - (1.00) 1.00 Sr Plan Check Tech - - 1.00 1.00 Sr Planner 4.00 - (1.00) 3.00 Sr Project Coordinator 1.00 - - 1.00 Sr Secretary 1.00 - - 1.00 Transportation Engineer W /Cert 1.00 - - 1.00 2015 -05 -26 Agenda Packet Page 665 SUCCESSOR AGENCY AND HOUSING FUNDS Successor Agency Funds Housing Authority Funds 2015 -05 -26 Agenda Packet Page 666 2015 -05 -26 Agenda Packet Page 667 On December 29, 2011, the California Supreme Court upheld AB x1 26 dissolving California redevelopment agencies. Effective February 1, 2012, all redevelopment agencies were dissolved and the City of Chula Vista assumed the role of Successor Agency (resolution 2011- 164). The Successor Agency is responsible for the wind down of the former Redevelopment Agency activities and obligations. The act of winding down the former Redevelopment Agency is significant. The Successor Agency will continue to oversee and implement all legally obligated contracted work, projects and programs as well as dispose of the former Redevelopment Agency assets. Since approximately 68% of the former Redevelopment Agency -owned land (24 acres of 35.24 acres) is contaminated there are clean up requirements as well as remediation that will be necessary to dispose of these properties. Significant administrative obligations will continue to exist in the preparation of budgets and documentation to be submitted to and reviewed by the Successor Agency, Oversight Board, County of San Diego and the State Department of Finance. As required by AB x1 26, an Oversight Board, composed of affected taxing entities within the City, was created. The primary responsibility of the Oversight Board is reviewing and approving the Recognized Obligation Payment Schedule and serving in a fiduciary role to the taxing entities that the Oversight Board represents. Some historical information follows regarding the former Redevelopment Agency. The Chula Vista Redevelopment Agency was created on October 24, 1972 by City Council Ordinance. The goals of the former Redevelopment Agency were to reduce blight and to encourage new development, reconstruction, and rehabilitation of residential, commercial, industrial, and retail uses. Since the Agency's creation, the City adopted and amended six project areas to encompass a total of approximately 3,563 acres of City territory. Land uses within these areas are mostly commercial and industrial, but also includes some residential and public uses (e.g., governmental administrative centers, corporation yards, streets, etc.). Successor Agency Funds FUND DESCRIPTIONS The Successor Agency budget is organized into Redevelopment Obligation Retirement Fund (RORF) and debt service funds. The RORF accounts for the staffing and other expenditures required in winding down activities of the former Redevelopment Agency. The Debt Service funds are used to pay for the former Redevelopment Agency's debt service on its outstanding Tax Allocation Bonds, loans and other debt of the former Redevelopment Agency. Several funds were eliminated as a result of the dissolution of the Redevelopment Agency. The eliminated funds are former operating funds 317, 611, 651 and pass- through funds 671 -675. In addition the debt service funds listed below replace funds 691 and 693 -697. Operating Funds • Fund 318: Redevelopment Obligation Retirement Fund (RORF) The RORF will serve as the primary operating funds in the winding down of the former Redevelopment Agency. This fund will be used to pay the documented enforceable obligations of the former redevelopment agency that have been approved by the Successor Agency Oversight Board and the State Department of Finance. • Fund 319: Successor Agency Housing Fund The City's Housing Authority became the Successor Housing Agency. This fund accounts for all assets (everything but fund balance) originally held by the Low and Moderate Income Housing fund and will account for activities similar to the Low and Moderate Income Housing program. The fund revenues are not discretionary and must be used for the production of affordable housing. Debt Service Funds The Debt Service funds are used to pay for former Redevelopment Agency debt service on its outstanding Tax Allocation Bonds, loans and other 2015 -05 -26 Agenda Packet Page 668 debt of the former Redevelopment Agency. • Fund 692: Long Term Advances Debt Service Fund — Redevelopment Agency This fund was established to account for Redevelopment Agency interfund loans. • Fund 661: 2005 Taxable Revenue Bonds Series A — CRA /ERAF Loan Program In April 2005, the Agency entered into a Loan Agreement with the California Statewide Communities Development Authority to borrow the amount of $765,000. This amount was used to pay the Agency's portion of the 2005 Educational Revenue Augmentation Fund (ERAF) to the County of San Diego pursuant to Section 33681.12 of the California Health and Safety Code. This loan was paid off in fiscal year 2014- 15. Fund 662: 2006 Taxable Revenue Bonds Series A — CRA /ERAF Loan Program In April 2006, the Agency entered into a Loan Agreement with the California Statewide Communities Development Authority to borrow the amount of $930,000. This amount was used to pay the Agency's portion of the 2006 Educational Revenue Augmentation Fund (ERAF) to the County of San Diego pursuant to Section 33681.12 of the California Health and Safety Code. Fund 663: 2006 Senior Tax Allocation Refunding Bonds, Series A In July 2006, the Redevelopment Agency issued the 2006 Senior Tax Allocation Bonds, Series A in the amount of $13,435,000 to refinance the Agency's outstanding Bayfront /Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds Series A (the "1994 A Bonds). The original bonds were issued to finance improvements in the Bayfront /Town Centre Project Areas. The Annual Debt Service is paid from property tax increment generated in the project areas. The term of the bonds runs through 2027. • Fund 664: 2006 Subordinate Tax Allocation Refunding Bonds, Series B In July 2006, the Redevelopment Agency issued the 2006 Subordinate Tax Allocation Bonds, Series B in the amount of $12,325,000 to refinance the Agency's outstanding Bayfront /Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds Series D (the "1994 D Bonds) and the 1994 Subordinate Tax Allocation Refunding Bonds, Series C (the 1994 C Bonds) The original bonds were issued to finance improvements in the Bayfront /Town Centre Project Areas. The Annual Debt Service is paid from property tax increment generated in the project areas. The term of the bonds runs through 2021. • Fund 665: RDA 2008 Tax Allocation Refunding Bonds (TARBs) This fund was established to account for the debt service payments for the refunding of the Redevelopment Agency 2000 Tax Allocation Bonds (Merged Redevelopment Project) in the amount of $21,625,000. The Merged Redevelopment Project was created on August 22, 2000, pursuant to an amendment to the redevelopment plans for three of the Agency's four existing redevelopment projects, the Town Centre II Project Area, the Otay Valley Project Area and the Southwest Project Area. The Merged Project Area was amended in 2004 adding 494 acres. The Bonds were issued to provide funds for the repayment of certain obligations of the Merged Redevelopment Project and other interfund loans, and for general redevelopment purposes. The term of the bonds is through the year 2036. REVENUES A summary of the notable changes by category are listed below: • Property Taxes — The increase in this category is due to the dissolution of the Redevelopment Agency. Property tax increment revenues are now received by the County of San Diego and will be distributed to the Successor Agency based on documented enforceable obligations that have been approved by both the Successor Agency Oversight Board and the State Department of 2015 -05 -26 Agenda Packet Page 669 • Finance. Enforceable obligations are projected to be $97,507 less than the previous fiscal year therefore property taxes have been adjusted accordingly. Transfers In — Transfer -In amount is the same as for the prior fiscal year. The Successor Agency has received permission to repay the Successor Agency Housing Fund for a loan previously received to pay the State of California required SERAF payment in 2010 and 2011. The table below provides a comparison of the projected revenues for fiscal year 2014 -15 to the estimated fiscal year 2015 -16 revenues. The table does not reflect the revenue budget of the debt service funds which are reflected in the debt service section of the budget document. Redevelopment /Successor Agency Operating Fund Revenues Fiscal Years 2014 to 2016 2015 -05 -26 Agenda Packet Page 670 EXPENDITURES Expenditures for fiscal year 2015 -16 are for winding down the former Redevelopment Agency and Low and Moderate Income Housing activities and documented enforceable obligations. Services and Supplies — The budget has been decreased due to project related consultant services. Other Expenses — The increase in this category reflects a $2.0 million loan to be made to subsidize affordable housing in the anticipated development of the Millennia project. Capital — The capital category reflects the projected amounts necessary for fiscal year 2015- 16. • Transfers Out — The transfers out expenditure category accounts for the required debt service for the Successor Agency. Bonded debt service for the 2006 and 2008 TABS and the 2006 ERAF loan is approximately $3.7 million. The Agency is also repaying a loan from the Successor Agency Housing Fund of $1.9 million. The Transfers Out category has decreased due to the payoff of the 2005 ERAF loan. • Utilities — The utilities category reflects the projected amounts necessary for fiscal year 2015- 16 projected utility expenses. The table below provides a comparison of the proposed budgeted expenditures for fiscal year 2015 -16 to the adopted fiscal year 2014 -15 expenditures. The table does not reflect the debt service expenditure budget which is discussed in the debt service section of this document. Redevelopment /Successor Agency Operating Fund Expenditures Fiscal Year 2014 to 2016 2015 -05 -26 Agenda Packet Page 671 IFY 2013-14 IFY 2014-15 FY 2015-16 Category Actual Projected Proposed Personnel Services $ 84,065 $ - $ - $ Supplies and Services $ 62,859 $ 147,993 $ 143,770 $ (4,223) Other Expenses $ 911,862 $ 897,972 $ 2,846,109 $ 1,948,137 Capital $ 7,978 $ 12,040 $ 12,040 $ - Transfers Out $ 3,122,997 $ 5,698,895 $ 5,601,309 $ (97,586) CIP Project Expenditures $ - $ - $ - $ - Non -CIP Project Expenditures $ - $ 484 $ - $ (484) Utilities $ 1,594 $ 1,700 $ 1,780 $ 80 Total Expenditures $ 4,191,355 $ 6,759,084 $ 8,605,008 $ 1,845,924 2015 -05 -26 Agenda Packet Page 671 FUND SUMMARY EXPENDITURES Personnel Services 92,044 84,065 0 0 Supplies and Services 79,810 59,965 80,270 80,270 Other Expenses 2,296,468 759,626 718,540 718,540 Capital 0 4,940 6,040 6,040 Utilities 382 1,594 1,700 1,780 Transfers Out 9,156,742 3,122,997 5,698,895 5,601,309 CIP Project Expenditures 641,835 0 0 0 Non -CIP Project Expenditures 4,000,000 0 0 0 TOTAL EXPENDITURES $16,267,281 $4,033,187 $6,505,445 $6,407,939 REVENUES Property Taxes Use of Money & Property Other Revenue Transfers In TOTAL REVENUES NET FUND ACTIVITY 4,456,770 1,065,528 6,505,446 (23,899) 10,640 0 322 0 0 641,835 0 0 $5,075,028 $1,076,168 $6,505,446 ($11,192,253) ($2,957,019) $1 6,407,939 0 0 0 $6,407,939 $0 2015 -05 -26 Agenda Packet Page 672 FUND SUMMARY EXPENDITURES Supplies and Services 30,943 2,894 63,500 63,500 Other Expenses 76,561 152,236 179,432 2,127,569 Capital 4,241 3,038 6,000 6,000 Transfers Out 29,000 0 0 0 TOTAL EXPENDITURES $140,745 $158,168 $248,932 $2,197,069 REVENUES Use of Money & Property 670,962 495,183 17,885 15,000 Charges for Services 0 20,979 0 0 Other Revenue 90,452 106,064 0 0 Transfers In 237,450 0 1,927,748 1,927,748 TOTAL REVENUES $998,864 $622,226 $1,945,633 $1,942,748 NET FUND ACTIVITY $858,119 $464,058 $1,696,701 ($254,321) 2015 -05 -26 Agenda Packet Page 673 FUND SUMMARY EXPENDITURES Other Expenses 0 158,165 1,274,067 1,274,067 Transfers Out 641,835 0 0 0 TOTAL EXPENDITURES $641,835 $158,165 $1,274,067 $1,274,067 REVENUES Use of Money & Property (147) 578 0 0 TOTAL REVENUES ($147) $578 $0 $0 NET FUND ACTIVITY ($641,982) ($157,587) ($1,274,067) ($1,274,067) 2015 -05 -26 Agenda Packet Page 674 FUND SUMMARY EXPENDITURES Supplies and Services 8,192 8,502 10,600 15,000 Other Expenses 3,515,315 3,513,384 4,110,547 4,008,561 Transfers Out 0 0 1,927,748 1,927,748 TOTAL EXPENDITURES $3,523,507 $3,521,886 $6,048,895 $5,951,309 :7=kT /:Ik111 :K Use of Money & Property Other Revenue Transfers In TOTAL REVENUES NET FUND ACTIVITY 101,938 22 8,917,421 $9,019,381 $5,495,874 102,377 541 3,122,996 $3,225,914 ($295,972) 0 0 0 0 5,698,895 5,601,309 $5,698,895 $5,601,309 ($350,000) ($350,000) FUND DETAIL FY 2012-13 FY - FY 2014-15 FUND # FUND DESCRIPTION ACTUAld�CTUAIdo�PROJECTED PROPOSED EXPENDITURES 661 05 ERAF - SA 99,528 100,356 100,883 0 662 06 ERAF - SA 125,784 125,187 129,285 127,795 663 06 TABs Series A - SA 1,017,893 1,018,180 1,017,345 1,018,570 664 06 TABs Series B - SA 993,006 990,981 992,297 993,559 665 08 TABs - SA 966,158 966,044 1,531,337 1,533,637 692 Successor Agency Long -term Deb 321,138 321,138 2,277,748 2,277,748 TOTAL EXPENDITURES $3,523,507 $3,521,886 $6,048,895 $5,951,309 REVENUES 661 05 ERAF - SA 99,463 100,305 100,883 0 662 06 ERAF - SA 125,696 125,110 129,285 127,795 663 06 TABs Series A - SA 1,017,861 1,018,221 1,017,345 1,018,570 664 06 TABs Series B - SA 992,637 1,016,121 992,297 993,559 665 08 TABs - SA 966,122 966,157 1,531,337 1,533,637 692 Successor Agency Long -term Deb 5,817,602 0 1,927,748 1,927,748 TOTAL REVENUES $9,019,381 $3,225,914 $5,698,895 $5,601,309 NET FUND ACTIVITY $5,495,874 ($295,972) ($350,000) ($350,000) 2015 -05 -26 Agenda Packet Page 675 The Housing Authority was formed in 1993. A Housing Authority can provide tax - exempt bond financing, own and operate housing, and operate various housing programs. The Chula Vista Housing Authority does not own or operate housing, and the Section 8 rental assistance programs including Public Housing are operated in Chula Vista by the County of San Diego Housing Authority. The staff of the Housing Authority provides comprehensive housing services for the City. In addition, with the elimination of the City's redevelopment agency, the Housing Authority will assume the housing functions of the former Redevelopment Agency, becoming a "Successor Housing Agency ". The Chula Vista Housing Authority fund is the clearinghouse for all housing related staff activity. Included in this fund are personnel expenses which are reimbursed by various funding sources such as Federal Housing and Urban Development Grant Funds. The Housing Fund will receive $0.8 million in staff time reimbursements for administering the City's Housing, CDBG, HOME and other grants and for monitoring of bond covenants for affordable housing bonds issued by the City's Housing Authority. The Housing Authority focuses on the development of sustainable neighborhoods through a variety of investments such as: • Production of affordable housing • Expand home ownership • Oversee social service contracts for low income households • Oversee policies and programs related to affordable housing FUND DESCRIPTIONS • Fund 313: Chula Vista Housing Authority The Chula Vista Housing Authority Fund accounts for all housing related activities not considered eligible for reimbursement by other sources. Housing Authority Funds t_i The Landings Project pictured above, is an example of the type of project developed with Housing Funds. The Landings consists of 92 three - bedroom townhome units. Each unit includes an enclosed 2 -car garage, in -unit washer and dryer, balcony, and full sized appliances. Project amenities include a pool, spa, clubhouse, and a tot lot. 2015 -05 -26 Agenda Packet Page 676 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 677 FUND SUMMARY EXPENDITURES Personnel Services 767,659 537,460 571,868 583,385 Supplies and Services 5,649 16,942 37,800 87,800 Other Expenses 0 0 0 372,660 Utilities 184 406 1,000 1,100 Transfers Out 166,085 147,555 177,145 155,968 TOTAL EXPENDITURES $939,577 $702,363 $787,813 $1,200,913 REVENUES Use of Money & Property (5,868) 5,355 0 0 Charges for Services 230,513 622,790 71,000 100,000 Other Revenue 456,505 721,727 706,871 749,889 Transfers In 97,000 0 0 0 TOTAL REVENUES $778,150 $1,349,872 $777,871 $849,889 NET FUND ACTIVITY ($161,427) $647,509 ($9,942) ($351,024) 2015 -05 -26 Agenda Packet Page 678 STAFFING SUMMARY - 313 Housing Manager 1.00 - - 1.00 Project Coordinator II 2.00 - - 2.00 Sr Project Coordinator 1.00 - - 1.00 2015 -05 -26 Agenda Packet Page 679 SEWER FUNDS 2015 -05 -26 Agenda Packet Page 680 2015 -05 -26 Agenda Packet Page 681 The Sewer enterprise funds account for revenues and expenditures related to the City's Sewer programs, including maintenance and expansion of the City's conveyance system and payment of San Diego Metro wastewater treatment costs. The City of Chula Vista provides wastewater conveyance and treatment services to approximately 49,000 billing accounts, including residential and non- residential uses. The wastewater generated by Chula Vista customers is collected and sent to treatment facilities in the South Bay and Point Loma through the City's extensive sewer collection system, which consists of 14 pump stations and over 500 miles of sewer pipe. The San Diego Metropolitan Wastewater System provides wastewater treatment services to the City of Chula Vista on a contract basis ($20 million in fiscal year 2014 -15). The City is currently analyzing options to secure sufficient treatment capacity to see the City through build out. Per the 2014 Wastewater Master Plan, the City will need approximately 29.89 MGD at build out. This treatment capacity may be provided by either purchasing additional treatment capacity in the San Diego Metro Wastewater System or construction of a wastewater reclamation plant in Chula Vista. The following figure illustrates the City's current trunk sewer network, which conveys flows to the San Diego Metro trunk sewer (shown in red). Sewer Funds Current Trunk Sewer Network Main StreeVSa It Creek Se Salt Creek Trunk Sewer el eg raph Canyon Trunk .S Poggi Canyon Trunk Sewe Sar, Diego Mb4F4+4FD Sprirg''alley Trunk Sewer Sar Diego Otay MWWD City of Chula Vista Bounde REVENUES The Sewer Fund derives the majority of its revenue from various service charges that are collected from system users. This fund also derives revenues from other sources such as permit fees for new connections to the sewer system, interest earnings from investments, development impact fees, transfers from other funds designated to support Sewer fund operations. Other revenues include revenue reimbursements from other city funds and various service charges. Sewer revenues are projected to increase by $1.1 million in the fiscal year 2015 -16 proposed budget. This mostly reflects a $1.1 million Transfer -In from the Telegraph Canyon Sewer DIF fund. In fiscal year 2015 -16, the Telegraph Canyon Sewer Basin DIF will be closed and remaining funds will be transferred to the Trunk Sewer Capital Reserve Fund. Sewer Fund revenues are summarized in the table on the following page. 2015 -05 -26 Agenda Packet Page 682 Lill Sewer Fund Revenues Note: Revenue amounts include Sewer Operating Funds: 411, 412, 413, 414, and 428. EXPENDITURES Sewer fund operations and capital programming contains no General Fund contribution. Sewer fund operations and capital programming costs are offset by fees paid by residential and non - residential users. In addition, other revenue sources generated within the Sewer fund through normal operations that fund 46.0 permanent positions that are contained in the fiscal year 2015 -16 proposed budget. Changes to the Sewer Fund budget for fiscal year 2015 -16 are as follows: • • Personnel Services — Personnel services in the fiscal year 2015 -16 are increasing by $67,913. This increase represents the annualized wage increases approved by the City Council during fiscal year 2014 -15. Personnel Services also reflects cost increases in Workers Compensation Charges, Flex (medical insurance), and PERS (retirement benefits). Supplies and Services — Supplies and services costs are increasing by $39,350. This change is primarily due to increased contracted services for wastewater treatment ($20,000), equipment rental charges ($10,000), and $9,350 for increased fleet maintenance charges and necessary travel expenses for the certification of personnel assigned to this fund. Capital — Capital expenses are increasing by $766,180 due vehicle replacement expenditures. CIP Project Expenditures — CIP Projected Expenditures are decreasing by $931,000. This proposed budget reflects the normal funding levels for the rehabilitation effort on pipes, manholes, access roads and pump stations. Several studies are under way to define the scope of future CIP projects that will be funded by the Trunk Sewer Capital Reserve Fund to upsize sewer pipe capacity within the City. The City continues to focus on its Annual Sewer Rehabilitation Program, which expends approximately $1.0 million to $2.0 million annually for the replacement and rehabilitation of sewer pipes, Pictured above: Point Loma Treatment Facility connections between sewer mains and laterals, access roads, and access covers. The City also utilizes standardized evaluation and ranking criteria in televising and evaluating the condition of sewers in order to ensure that the most critically impacted sewer infrastructure is replaced or rehabilitated first. To date, the funds collected from City's rate payers have been sufficient to maintain and operate the City's wastewater collection system as well as to pay for the treatment of the wastewater. In order to ensure the future adequacy of the sewer funds, City Council has adopted an updated sewer rate case study that set the sewer rates for the next five years that went into effect July 2014. One of the issues considered of significantly impact to the sewer rates for the City is the Point Loma Treatment Plant 2015 -05 -26 Agenda Packet Page 683 (PLTP) Secondary Treatment Waiver. In 2010, the City of San Diego was successful in obtaining a five -year waiver that allowed the continued operation of the PLTP at an advance primary level of sewer treatment before discharging into the ocean. A regional effort, led by the City of San Diego is in progress to prepare the application for the next waiver. The application for the next waiver will be submitted in 2015. Expensive infrastructure investments are expected as a condition of the next waiver. The 2014 City of Chula Vista sewer rate adjustment will help pay for said infrastructure investments or the upgrade of the PLTP to secondary. In fiscal year 2007 -08 the City transitioned its Sewer funds from 'special revenue' funds to 'enterprise' funds. Enterprise funds may be used to report any activity for which a fee is charged to external users for goods or services, and are appropriate in situations wherein there is either a legal requirement or policy decision to recover costs of providing services for an activity. This change complies with the GFOA recommended accounting structure, should the City decide to issue bonds for capital improvements solely guaranteed by sewer fees and charges in the future. City staff expenditures incurred supporting wastewater system maintenance and operations are funded by the Sewer Service fund through a combination of direct expenditures and inter -fund transfers. Positions 100% funded by Sewer funds (wastewater maintenance and wastewater engineering) are budgeted directly in the Sewer fund ($4.5 million in fiscal year 2015 -16). The remaining support staff is budgeted in either the General or Development Services funds. These positions are partially offset via inter -fund transfers ($3.3 million in fiscal year 2015 -16). All supplies and services, capital, and utilities budgets associated with supporting the wastewater system are also budgeted in the Sewer Service fund in fiscal year 2015 -16. PROPOSED CAPITAL IMPROVEMENT PROJECTS The second highest commitment of CIP funding is for the Wastewater Management System (WMS). The appropriation for Wastewater projects is $2.2 million which represents 8% of the proposed CIP budget. The single project type within the WMS is Sewer. However, the discussion below is divided into the following two categories: Sewer Rehabilitation and Specific Sewer Improvements, and Sewer Pump Stations and Access Roads. Sewer Rehabilitation and Specific Sewer Improvements The following projects are included in fiscal year 2015- 16 budget: • $406,000 to complete sewer improvements at Industrial Boulevard & Main Street • $300,000 to complete sewer rehabilitation projects for citywide work • $250,000 for the manhole rehabilitation citywide • $200,000 for a sewer manhole inspection and evaluation study Sewer Pump Stations and Access Roads The lift station at Parkside Drive will be rehabilitated, at an estimated cost of $450,000. Sewer access roads at various locations will be rehabilitated, at a cost of $600,000. Sewer Fund expenditures are summarized in the table on the following page. 2015 -05 -26 Agenda Packet Page 684 Sewer Fund Expenditures Note: Expenditure amounts include Sewer Operating Funds: 411, 412, 413, 414, and 428. FUND DESCRIPTIONS • Fund 411: Sewer Income Fund This fund is used to account for all revenues collected to recover the City's costs incurred constructing the public wastewater system. The funds are collected from new properties receiving a permit to connect to the City's wastewater collection system. The owner or person making the application for connection pays fees to the City as designated in the master fee schedule. All funds received may be used only for the acquisition, construction, reconstruction, maintenance and operation of sanitation or sewerage facilities, or to reimburse a subdivider or any person who has constructed sewer facilities benefiting other properties. The fund may also be used to reimburse the City for any expense incurred in connection with the construction and installation of any sewer facility including engineering work and acquisition of rights -of -way. • Fund 412: Special Sewer Fund The Special Sewer Fund is used to account for the sale of the City's excess Metropolitan Sewerage capacity. On December 17, 2013 Council approved closing this fund and transferring the available fund balance to the Trunk Sewer Capital Reserve Fund (Fund 413). • Fund 413: Trunk Sewer Capital Reserve Fund The Trunk Sewer Capital Reserve Fund is used to account for sewerage facility participation fees received from the owner or person applying for a permit to develop or modify the use of any residential, commercial, industrial or other property, which is projected to increase the volume of flow in the City's sewer system, as determined by the City Engineer. All revenue derived from the sewerage facility participation fee shall be used solely for: 1. Paying the cost and expense to repair, replace or enlarge trunk sewer facilities of the City so as to enhance efficiency of utilization and /or adequacy of capacity to serve the needs of the City, or; 2. Paying the cost and expense to plan and /or evaluate any future proposals for area -wide sewage treatment and /or water reclamation systems or facilities. The City Council can appropriate the funds for another purpose, provided such purpose shall be for the planning, design, construction, maintenance or operations of sewage collection or treatment or water reclamation purposes. • Fund 414: Sewer Service Revenue Fund The Sewer Service Revenue Fund is used to account for all monies collected from the monthly sewer service charge. Monies in this fund may be used for any and all sewer related activities. The primary use of these funds is the payment of the City's annual San Diego Metropolitan Sewer Capacity and Maintenance fees and to pay the operational costs of the 'in -city' sewer collection system. • Fund 428: Sewer Facility Replacement Fund A portion of the revenues derived from the monthly sewer service charge is deposited into the Sewerage Facilities Replacement Fund. Monies in this fund are used solely for the purpose of paying the cost of refurbishment 2015 -05 -26 Agenda Packet Page 685 and /or replacement of structurally deficient sewerage facilities including related evaluation, engineering, and utility modification costs. The City Council can appropriate the funds for another purpose provided such purpose is for the construction, maintenance, or operation of sewers or incidental thereto, including any charge for its collection. • Funds 431, 432, 433: Sewer Development Impact Fee Funds These fees are levied against new development in specific areas of the City, based upon the sewer facility their project will impact. The monies collected are used to fund construction of public improvements designed to increase the capacity of the subject facilities, allowing the City to maintain service levels with increased demand. Included DIF programs are the Telegraph Canyon Sewer Basin DIF, the Poggi Canyon Sewer Basin DIF, and the Salt Creek Sewer Basin DIF. 2015 -05 -26 Agenda Packet Page 686 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 687 FUND SUMMARY EXPENDITURES Personnel Services 4,058,923 4,253,032 4,469,564 4,537,477 Supplies and Services 19,689,382 20,852,964 22,821,121 22,860,471 Other Expenses 5,515,363 5,384,245 245,000 245,000 Capital 42,926 30,152 1,047,500 1,813,680 Utilities 172 172 315 315 Transfers Out 2,843,760 3,339,821 3,196,098 3,291,270 CIP Project Expenditures 1,466,947 2,881,110 3,150,000 2,219,000 TOTAL EXPENDITURES $33,617,473 $36,741,496 $34,929,598 $34,967,213 REVENUES Licenses and Permits 40,500 11,120 40,000 40,000 Use of Money & Property 314,191 1,373,068 301,726 301,726 Charges for Services 34,382,920 33,114,340 32,881,199 32,881,199 Other Revenue 592,175 714,030 325,000 325,000 Transfers In 3,578 565,495 3,400,000 1,279,047 TOTAL REVENUES $35,333,364 $35,778,053 $36,947,925 $34,826,972 NET FUND ACTIVITY $1,715,891 ($963,443) $2,018,327 ($140,241) FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTUAL FY - ACTUAL FY 2014-15 PROJECTED PROPOSED EXPENDITURES 412 Special Sewer 0 449,972 0 0 413 Trunk Sewer Capital Reserve 5,398,948 5,742,045 1,250,000 606,000 414 Sewer Service Revenue 27,036,771 28,185,121 31,429,598 32,411,213 428 Sewer Facility Replacement 1,181,754 2,364,358 2,250,000 1,950,000 TOTAL EXPENDITURES $33,617,473 $36,741,496 $34,929,598 $34,967,213 REVENUES 411 Sewer Income (10,033) 22,561 0 0 412 Special Sewer (2,431) 3,157 0 0 413 Trunk Sewer Capital Reserve 3,879,455 3,821,010 4,500,000 2,379,047 414 Sewer Service Revenue 29,653,340 29,874,434 30,991,199 30,991,199 428 Sewer Facility Replacement 1,813,033 2,056,891 1,456,726 1,456,726 TOTAL REVENUES $35,333,364 $35,778,053 $36,947,925 $34,826,972 NET FUND ACTIVITY $1,715,891 ($963,443) $2,018,327 ($140,241) 2015 -05 -26 Agenda Packet Page 688 STAFFING SUMMARY - 414 Assoc Engineer 2.00 - - 2.00 Engineering Tech II 2.00 - - 2.00 Equipment Operator 3.00 - - 3.00 Maintenance Worker II 18.00 - - 18.00 Pub Works Specialist 1.00 - - 1.00 Public Works Supervisor 4.00 - - 4.00 Sr Civil Engineer 1.00 - - 1.00 Sr Fiscal Office Specialist 1.00 - - 1.00 Sr Maintenance Worker 14.00 - - 14.00 2015 -05 -26 Agenda Packet Page 689 FUND SUMMARY EXPENDITURES Supplies and Services 0 3,724 0 0 Other Expenses 122,927 125,555 164,091 37,500 Transfers Out 250,000 250,000 3,500,000 2,249,047 CIP Project Expenditures 0 726 0 0 Non -CIP Project Expenditures 0 0 100,000 1,091,264 TOTAL EXPENDITURES $372,927 $380,005 $3,764,091 $3,377,811 REVENUES $70,000 $223,473 ($9,809) ($3,644,091) Use of Money & Property (48,615) 102,104 0 0 Development Impact Fees 645,015 268,092 120,000 70,000 TOTAL REVENUES $596,400 $370,196 $120,000 $70,000 NET FUND ACTIVITY $223,473 ($9,809) ($3,644,091) ($3,307,811) EXPENDITURES 431 Tel Cyn Sewer Basin Plan DIF 432 Poggi Cyn Sewer Basin DIF 433 Salt Creek Sewer Basin DIF TOTAL EXPENDITURES REVENUES 431 Tel Cyn Sewer Basin Plan DIF 432 Poggi Cyn Sewer Basin DIF 433 Salt Creek Sewer Basin DIF TOTAL REVENUES NET FUND ACTIVITY FUND DETAIL 60,000 60,000 35,000 1,129,047 0 726 10,000 10,000 312,927 319,279 3,719,091 2,238,764 $372,927 $380,005 $3,764,091 $3,377,811 (5,932) 12,118 0 0 45,755 141,452 20,000 20,000 556,577 216,626 100,000 50,000 $596,400 $370,196 $120,000 $70,000 $223,473 ($9,809) ($3,644,091) ($3,307,811) 2015 -05 -26 Agenda Packet Page 690 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 691 TRANSIT FUNDS 2015 -05 -26 Agenda Packet Page 692 2015 -05 -26 Agenda Packet Page 693 The MTS - Chula Vista Transit (CVT) was an independent municipal transit system with the Chula Vista City Council as its governing board. CVT formed part of the Metropolitan Transit System (MTS), which is a network of local and regional transit operators. MTS provides a seamless transit system composed of local, regional, and ADA paratransit services. MTS coordinates fares, transfers, routes and information services to the region. Over the last few years, MTS has been expanding its transit (South Bay) facility located at 3650 Main Street in Chula Vista. The expansion includes additional bus parking and new administrative and maintenance buildings. With this expansion, MTS acquired the necessary capacity to consolidate the Chula Vista Transit operations into their South Bay operations yard and vacate the City's Public Works Corp (PWC) yard. Accordingly, on January 13, 2015, the Chula Vista City Council voted to divest the City's responsibility for ■ Transit Fund providing public transit services redirecting this responsibility back to MTS. Through this process, MTS had agreed to continue to fund the Transit Manager position for an unspecified amount of time to aide in the transition to MTS. MTS has notified the City that it will no longer fund this position. All Transit Funds and the Transit Manager position have been eliminated from the City's proposed budget. For comparison purposes the following tables reflect revenues and expenditures for Transit Funds. Chula Vista Transit Revenues 2015 -05 -26 Agenda Packet Page 694 City of Chula Vista P Uludget STATISTICS Routes 7 Service Six local routes most within Chula Vista city limits, with some service in unincorporated areas of the County (Bonita). One Sunday route operated by MTS from their South Bay Division Square Miles Served 48 Fiscal Year 2015 1,742,744 thru January 23rd, 2015 Total Passengers 38 Buses Fleet Size (32) 40 -foot, CNG New Flyers (6) 30 -foot CNG El Dorado Nationals 2015 -05 -26 Agenda Packet Page 695 _ •, `FNE � �� _ cal � P l -M 2�m ��j� ni _1� Lid I Ii Rio } in OF 1 ar _ -ESE it 4m wj-L �5 2015 -05 -26 Agenda Packet Page 696 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 697 FUND SUMMARY EXPENDITURES Personnel Services 154,480 156,895 166,164 0 Supplies and Services 5,632,377 6,039,420 5,954,031 0 Other Expenses 1,159,823 587,088 463,496 0 Capital 0 0 177,800 0 Utilities 143,652 152,196 174,177 0 Transfers Out 34,750 34,750 34,750 0 CIP Project Expenditures 0 0 261,556 0 TOTAL EXPENDITURES $7,125,082 $6,970,349 $7,231,974 $0 REVENUES Use of Money & Property (4,223) 7,903 0 0 Revenue from Other Agencies 3,095,626 3,800,358 2,200,372 0 Charges for Services 2,841,619 2,672,230 4,853,816 0 Other Revenue 303,968 212,196 0 0 Transfers In 0 23,701 0 0 TOTAL REVENUES $6,236,990 $6,716,388 $7,054,188 $0 NET FUND ACTIVITY ($888,092) ($253,961) ($177,786) $0 FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTUAL FY - ACTUAL FY 2014-15 PROJECTED PROPOSED EXPENDITURES 401 Bayfront Trolley Station TDA 92,843 61,823 109,553 1 0 402 Transit CVT 6,775,587 6,908,526 6,683,065 1 0 403 Transit Capital Projects 256,652 0 439,356 1 0 TOTAL EXPENDITURES $7,125,082 $6,970,349 $7,231,974 $0 REVENUES 401 Bayfront Trolley Station TDA 92,843 143,504 109,553 0 402 Transit CVT 6,143,717 6,523,389 6,683,079 0 403 Transit Capital Projects 430 49,495 261,556 0 TOTAL REVENUES $6,236,990 $6,716,388 $7,054,188 $0 NET FUND ACTIVITY ($888,092) ($253,961) ($177,786) $0 2015 -05 -26 Agenda Packet Page 698 Transit Manager STAFFING SUMMARY - 402 1.00 - (1.00) 2015 -05 -26 Agenda Packet Page 699 FLEET FUND 2015 -05 -26 Agenda Packet Page 700 2015 -05 -26 Agenda Packet Page 701 The Fleet Fund is an internal service fund which like other internal service funds is used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. The Fleet Management fund consists of two functions, Central Garage Operations and Equipment Replacement. Funds are collected on an annual basis through each affected department's operating budget and deposited in the Fleet Management Fund. The Central Garage Operations function maintains the City's fleet of vehicles, both through City equipment mechanics and through contracts with local vendors for more specialized maintenance work, such as major transmission and air conditioning repairs. All City vehicles are maintained by the Central Garage, these vehicles include those associated with safety services, streets and sewers, parks and open space, building and housing and the library. Services provided include maintenance of the vehicles, vehicle fuel, and other specialized services not directly related to any single vehicle. REVENUES Revenues in the Fleet Fund come directly from affected departments within the City through vehicle maintenance charges. These charges are based on the actual vehicles that reside within a department and include costs ranging from routine (oil changes, preventive maintenance) to major (transmission repair) 44 Fleet Fund as well as fuel costs. Vehicle replacement costs also used to be charged in a similar manner. However, due to continuing economic constraints, the City has discontinued this practice and has transitioned to pay as you go for the replacement of vehicles depending on the availability of funds. For fiscal year 2015 -16, the proposed revenue budget for the Fleet Fund is $3.8 million. This represents a net increase of $167,920 over the fiscal year 2014 -15 year - adopted budget. The major revenue changes are as follows: • The $330,000 increase in the Transfers In Revenue category is due to an increase of the transfer from the General Fund. These funds will be used for vehicle replacement. • A $172,159 decrease in Other Revenue category is the net difference between the reduction in transit reimbursements from the Transit Fund and a increase in fleet maintenance charges. Transit Fund activities are scheduled to cease at the end of the 2014 -15 fiscal year and are therefore eliminated from the budget. • A $15,000 increase in Charges for Services reflects a projected increase in revenues recovered for cost recovery. Fleet Fund Revenues 2015 -05 -26 Agenda Packet Page 702 EXPENDITURES The Fleet fund's expenditures include costs to repair and replace equipment (motor vehicles, mowers, generators, equipment trailers, etc.) throughout the City. As discussed in the revenue summary above, these costs are then allocated back to the affected departments based on several factors such as the number of vehicles /equipment, repair history, and fuel usage. The proposed budget for fiscal year 2015 -16 for Fleet Management is $3.9 million. This amount includes funding for the necessary resources that will be required to sustain operations for service, repairs, and to fuel the City's fleet in fiscal year 2015 -16. • The Personnel Services category is increasing by $22,836 over the fiscal year 2014 -15 budgeted personnel services costs. This change is reflects the anticipated personnel cost increases due salary increases approved in fiscal year 2014 -15, scheduled step increases, and associated benefit costs (retirement and health). • The Supplies and Services category is increasing by $96,070 over the adopted fiscal year 2014 -15 supplies and services costs. This change is due to increased costs for maintenance and equipment repair and automotive maintenance costs. • Capital expenditures are increasing by $141,194 in order to fund vehicle replacement costs. The fiscal year 2015 -16 budget includes $330,000 for the purchase of the following vehicles: ■ 2004 Chevrolet Tahoe, Fire Department ■ 2005 Chevrolet Suburban, Fire Department ■ 2004 Nissan Titan, Police Department ■ 2006 Ford F450 Aerial Truck, Public Works • The Utilities expense category is decreasing by $212,176 reflecting the elimination of Transit Fund activities that will result in lower gas and electric costs. 2015 -05 -26 Agenda Packet Page 703 FUND SUMMARY EXPENDITURES Personnel Services 797,796 848,459 1,022,503 1,045,349 Supplies and Services 2,775,188 2,308,518 2,237,885 2,333,955 Other Expenses 384,629 254,424 400 400 Capital 85,358 23,757 188,806 330,000 Utilities 598 438,864 384,748 172,572 Transfers Out 104,000 23,701 0 0 TOTAL EXPENDITURES $4,147,569 $3,897,723 $3,834,342 $3,882,276 REVENUES Use of Money & Property (7,250) 15,189 0 0 Charges for Services 26,203 55,542 20,000 35,000 Other Revenue 3,508,232 3,593,021 3,628,744 3,456,585 Transfers In 404,000 0 0 330,000 TOTAL REVENUES $3,931,185 $3,663,752 $3,648,744 $3,821,585 NET FUND ACTIVITY ($216,384) ($233,971) ($185,598) ($60,691) FUND DETAIL FY 2012-13 FY - FY 2014-15 FUND # FUND DESCRIPTION ACTUAL EXPENDITURES 391 Central Garage 3,573,582 3,595,841 3,645,536 3,552,276 392 Equipment Replacement 573,987 301,882 188,806 330,000 TOTAL EXPENDITURES $4,147,569 $3,897,723 $3,834,342 $3,882,276 REVENUES 391 Central Garage 3,873,425 3,592,186 3,611,665 3,491,585 392 Equipment Replacement 57,760 71,566 37,079 330,000 TOTAL REVENUES $3,931,185 $3,663,752 $3,648,744 $3,821,585 NET FUND ACTIVITY ($216,384) ($233,971) ($185,598) ($60,691) 2015 -05 -26 Agenda Packet Page 704 STAFFING SUMMARY - 391 Equipment Mechanic 4.00 - - 4.00 Fire Apparatus Mech 2.00 - - 2.00 Fiscal Office Specialist 1.00 - - 1.00 Fleet Inventory Control Spec 1.00 - - 1.00 Fleet Manager 1.00 - - 1.00 Sr Equipment Mechanic 1.00 - - 1.00 2015 -05 -26 Agenda Packet Page 705 1 Projected Mileage for June 2016. 2 Does not reflect total cost of vehicles for those funded through Public Safety Realignment 2015 -05 -26 Agenda Packet Page 706 EQUIPMENT • 1 FY 2015-16 FUND DEPT DESCRIPTION Vehicle Replacement Fire 2004 Chevrolet Tahoe 189,375 $60,000 Fund Vehicle Replacement Fire 2005 Chevrolet Suburban 130,105 $125,000 Fund Vehicle Replacement Police 2004 Nissan Titan 178,057 $40,000 Fund Public Safety Police Crown Victoria 130,875 $23,173 Z Realignment Public Safety Police Ford 500 86,291 $23,173 RealignmentZ TUT Common Fund Police Toyota Camry 169,636 $40,000 TUT Common Fund Police Vehicle Outfitting $46,158 Public Safety Police Xterra 91,254 $23,173 RealignmentZ Vehicle Replacement Public 2006 Ford F450 Aerial Truck 10,295 $105,000 Fund Works hours Sewer Sewer 19990Caterpillar M318 Excavator 2,433 $325,000 hours Sewer Sewer 2001 International 4700 Dump Truck 68,466 $92,000 Sewer Sewer 2002 Ford F450 Service Body Truck 4,943 $84,000 hours Sewer Sewer 2004 GMC P3100 W /TV 51,515 $275,000 Sewer Sewer 2008 IHC 7400 Vactor 5,228 $475,000 hours Sewer Sewer 2008 IHC 7400 Vactor 6,073 $410,000 hours Sewer Sewer Vehicle Outfitting $55,000 TOTAL $2,201,677 GRAND TOTAL - ALL EQUIPMENT $2,201,677 1 Projected Mileage for June 2016. 2 Does not reflect total cost of vehicles for those funded through Public Safety Realignment 2015 -05 -26 Agenda Packet Page 706 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 707 CAPITAL PROJECT FUNDS 2015 -05 -26 Agenda Packet Page 708 2015 -05 -26 Agenda Packet Page 709 Capital Projects Funds account for resources used for • the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds. ASSESSMENT DISTRICT IMPROVEMENT FUNDS These funds were established as depositories for monies received from issuance of bonds for various assessment districts. The monies are used to finance the construction of public works improvements in the related districts. Included in this group are funds 501 through 518. DEVELOPMENT IMPACT FEES (DIF) These funds were established as depositories for various development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth. Included in this group are the following funds: • Fund 542: Telegraph Cannon Drainage Development Impact Fee This fee is levied against new development in specific areas of the City, based upon the drainage facility their project will generate an impact on. The monies collected are used to fund construction of public improvements designed to increase the capacity of the subject facilities, allowing the City to maintain service levels with increased demand. • Funds 567 -582: Public Facilities Development Impact Fees The Public Facilities Development Impact Fee (PFDIF) is levied against new development throughout the City to mitigate the impacts of growth on the City's public services. The monies collected are used in the construction of new, and renovation of existing, public facilities. • Fund 587: Otay Ranch Pedestrian Bridge DIF The Otay Ranch Pedestrian Bridge DIF is levied against all new development in Otay Ranch Villages 1, 2, 5, and 6 to fund the construction of pedestrian bridge improvements, as necessitated by growth in these villages. Capital Project Funds Fund 588: Otay Ranch Village 11 Pedestrian Bridge DIF The Otay Ranch Village 11 Pedestrian Bridge DIF is levied against all new development in Otay Ranch Village 11 to fund the construction of pedestrian bridge improvements, as necessitated by growth in this village. • Fund 591: Transportation Development Impact Fee The Transportation Development Impact Fee (TDIF) is levied against all new development in the City east of 1 -805 to fund the construction of transportation improvements, as necessitated by growth in the eastern portion of the City. • Fund 593: Western Transportation Development Impact Fee The Western Transportation Development Impact Fee (W -TDIF) is levied against all new development in the City between Interstate 5 and Interstate 805, to fund the construction of transportation improvements, as necessitated by growth in the western portion of the City. • Fund 594: Bayfront Development Impact Fee The Bayfront Development Impact Fee (BFDIF) is levied against all new development within the Bayfront Area of the City, to fund construction of transportation improvements, as necessitated by growth in the Bayfront Area of the City. OTHER TRANSPORTATION FUNDS Included as a part of this group are the following: • Fund 723: Bicycle Facilities This fund is a depository for local Transportation Development Act funds, Article 3.0, received from the County for the purpose of bicycle related programs. • Fund 735: Transportation Partnership This fund is a depository for the revenues received from the State and Local Transportation Partnership Program. Funds must be spent on street purposes. 2015 -05 -26 Agenda Packet Page 710 • Fund 736: Other Transportation Programs This fund accounts for other miscellaneous Federal and State transportation grants received by the City. • Fund 737: Transportation Equity Act 21 This fund is a depository for revenues received from the federal government under the Transportation Equity Act of the 21st Century. Funds must be spent on street purposes. • Fund 739: Traffic Congestion Relief This fund is a depository for revenues allocated to the City under Streets and Highways Code Section 2182 and Revenue and Taxation Code Section 7104. Funds must be expended for maintenance or reconstruction of public streets and roads no later than the end of the fiscal year following the fiscal year in which the allocation is received. Any funds not expended within that period must be returned to the State Controller. • Fund 741: Proposition 1B Highway Safety This fund is a depository for revenues received from the State government under Proposition 1B (The Highway Safety, Traffic Reduction, Air Quality, and Port Security Act), as approved by voters in the November 2006 general election. Funds must be spent on street purposes. MISCELLANEOUS CAPITAL IMPROVEMENT PROGRAM FUNDS Included as part of this group are the following: • Fund 715: Park Acquisition and Development (East) This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivision east of the 805. These funds are collected pursuant to Chapter 17.10 of the Chula Vista Municipal Code, in accordance with authority granted by Section 66477 of the California Government Code. • Fund 716: Park Acquisition and Development West This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivision west of the 805. These funds are collected pursuant to Chapter 17.10 of the Chula Vista Municipal Code, in accordance with authority granted by Section 66477 of the California Government Code. • Fund 717: Residential Construction Tax This fund is a depository for fees levied for the construction, replacement, or conversion of all dwelling units within the City including hotels and motels, collected pursuant to Chapter 3.32 of the Chula Vista Municipal Code. • Fund 725: Industrial Development Authority The Industrial Development Authority (IDA) is a conduit - issuer of bonds, formed in February 1982 (Ordinance 1970) by the City of Chula Vista City Council. The IDA enables bonds to be issued with a tax - exempt status, but does not pledge City funds to repay the bond issues. The City is able to issue and sell bonds to provide financial assistance that has a public benefit for the acquisition, construction and installation of facilities for industrial, commercial, business or public utility purposes. 2015 -05 -26 Agenda Packet Page 711 FUND SUMMARY EXPENDITURES Supplies and Services 7,765 1,248 0 0 Transfers Out 27,538 8,900 54,760 100,195 CIP Project Expenditures 0 161 0 0 TOTAL EXPENDITURES $35,303 $10,309 $54,760 $100,195 0ATA:I ill 01 :K Use of Money & Property Other Revenue TOTAL REVENUES NET FUND ACTIVITY (12,228) 18,836 $6,608 ($28,695) 24,792 18,784 $43,576 $33,267 0 0 19,045 19,285 $19,045 $19,285 ($35,715) ($80,910) FUND DETAIL FY 2012-13 FY - FY 2014-15 FUND # FUND DESCRIPTION ACTUMI& ACTUALAVROJECTED PROPOSED EXPENDITURES 507 Otay Valley Rd AD 90 -2 Improv 7,765 1,248 0 0 508 AD97 -2 0 161 0 0 517 AD2004 -1 Dixon Drive 27,538 0 30,981 9,598 518 AD2005 -1 Tobias Drive 0 8,900 23,779 90,597 TOTAL EXPENDITURES $35,303 $10,309 $54,760 $100,195 REVENUES 507 Otay Valley Rd AD 90 -2 Improv (498) 903 0 0 511 Otay Vly Rd Fee Recovery Dist (4,916) 10,013 0 0 512 EL Greens II AD 94 -1 Improv (6,062) 12,371 0 0 515 Twin Oaks Ave AD 96 -1 Improv (117) 233 0 0 516 Oxford St AD 97 -1 Improv (24) 49 0 0 517 AD2004 -1 Dixon Drive 9,253 9,509 9,358 9,598 518 AD2005 -1 Tobias Drive 8,972 10,498 9,687 9,687 TOTAL REVENUES $6,608 $43,576 $19,045 $19,285 NET FUND ACTIVITY ($28,695) $33,267 ($35,715) ($80,910) 2015 -05 -26 Agenda Packet Page 712 FUND SUMMARY EXPENDITURES CIP Project Expenditures 14,045 4,252 0 200,000 TOTAL EXPENDITURES $14,045 $4,252 $0 $200,000 REVENUES Use of Money & Property (32,730) 66,577 0 0 TOTAL REVENUES ($32,730) $66,577 $0 $0 NET FUND ACTIVITY ($46,775) $62,325 $0 ($200,000) 2015 -05 -26 Agenda Packet Page 713 EXPENDITURES Supplies and Services Other Expenses Transfers Out TOTAL EXPENDITURES REVENUES Use of Money & Property Development Impact Fees Other Revenue Transfers In TOTAL REVENUES NET FUND ACTIVITY EXPENDITURES 567 DIF -Adamo Property Acquisition 571 General Administration 572 Civic Center Expansion 573 Police Facilities Remodel 574 Corporation Yard Relocation 575 Library for Eastern Territory 576 Fire Suppression Sys Expansion TOTAL EXPENDITURES REVENUES 567 DIF -Adamo Property Acquisition 571 General Administration 572 Civic Center Expansion 573 Police Facilities Remodel 574 Corporation Yard Relocation 575 Library for Eastern Territory 576 Fire Suppression Sys Expansion 582 Recreation Facilities TOTAL REVENUES NET FUND ACTIVITY FUND SUMMARY 490 2,521 55,300 55,300 232,517 289,212 300,000 300,000 4,221,342 6,111,579 7,050,654 7,114,789 $4,454,349 $6,403,312 $7,405,954 $7,470,089 (220,306) 260,009 0 0 6,808,865 4,554,723 2,850,000 2,850,000 0 146,608 0 0 0 0 140,338 0 $6,588,559 $4,961,340 $2,990,338 $2,850,000 $2,134,210 ($1,441,972) ($4,415,616) ($4,620,089) FUND DETAIL 52,575 35,743 0 0 233,007 294,448 495,638 355,300 2,385,939 3,076,482 3,323,662 3,625,369 1,723,283 1,720,438 1,601,035 1,600,000 0 845,273 844,795 844,420 59,545 0 0 0 0 430,928 1,140,824 1,045,000 $4,454,349 $6,403,312 $7,405,954 $7,470,089 (1,420) 2,113 0 0 548,557 576,962 300,000 300,000 1,137,555 1,216,883 600,000 600,000 1,242,685 766,447 400,000 400,000 317,502 215,957 100,000 100,000 1,294,730 956,237 500,000 500,000 1,006,193 591,461 640,338 500,000 1,042,757 635,280 450,000 450,000 $6,588,559 $4,961,340 $2,990,338 $2,850,000 $2,134,210 ($1,441,972) ($4,415,616) ($4,620,089) 2015 -05 -26 Agenda Packet Page 714 FUND SUMMARY EXPENDITURES Other Expenses 0 0 6,200 6,200 TOTAL EXPENDITURES $0 $0 $6,200 $6,200 REVENUES Use of Money & Property (18,213) 40,741 0 0 Development Impact Fees 251,872 345,770 90,000 90,000 TOTAL REVENUES $233,659 $386,511 $90,000 $90,000 NET FUND ACTIVITY $233,659 $386,511 $83,800 $83,800 FUND DETAIL Y -FUND# FUND DESCRIPTION FY 2012-13 ACTUAL FY - ACTUAL FY 2014-15 PROJECTED PROPOSED EXPENDITURES 587 DIF -OR Village Pedestrian Ramp 0 0 - 3,0001_ 3,000 588 OR VIg11 Pedestrian Bridge DIF 0 0 3,200 3,200 TOTAL EXPENDITURES $0 $0 $6,200 $6,200 REVENUES 587 DIF -OR Village Pedestrian Ramp 194,064 303,130 40,000 40,000 588 OR VIg11 Pedestrian Bridge DIF 39,595 83,381 50,000 50,000 TOTAL REVENUES $233,659 $386,511 $90,000 $90,000 NET FUND ACTIVITY $233,659 $386,511 $83,800 $83,800 2015 -05 -26 Agenda Packet Page 715 FUND SUMMARY EXPENDITURES Supplies and Services 0 0 211,000 0 Other Expenses 182,819 172,098 580,916 265,000 Transfers Out 0 36,851 6,444 0 CIP Project Expenditures 2,635,057 3,337,454 573,686 2,955,845 TOTAL EXPENDITURES $2,817,876 $3,546,403 $1,372,046 $3,220,845 REVENUES Use of Money & Property (79,286) 138,990 119,290 0 Development Impact Fees 2,527,830 2,001,362 772,477 1,831,600 Other Revenue 71,902 0 0 0 Transfers In 0 36,851 6,444 0 TOTAL REVENUES $2,520,446 $2,177,203 $898,211 $1,831,600 NET FUND ACTIVITY ($297,430) ($1,369,200) ($473,835) ($1,389,245) FUND DETAIL FUND # FUND DESCRIPTIOJA FY 2012-17' ACTUAI.ACTUAL FY - ,,PROJECTED 2014-15 FY 2015-16 PROPOSI�,t EXPENDITURES 591 Transportation DIF 2,817,876 3,509,552 1,277,321 3,220,845 593 Western Transportation DIF Fund 0 36,851 94,725 0 TOTAL EXPENDITURES $2,817,876 $3,546,403 $1,372,046 $3,220,845 REVENUES 591 Transportation DIF 2,453,265 2,123,447 869,290 1,750,000 593 Western Transportation DIF Fund 67,181 53,756 28,921 81,600 TOTAL REVENUES $2,520,446 $2,177,203 $898,211 $1,831,600 NET FUND ACTIVITY ($297,430) ($1,369,200) ($473,835) ($1,389,245) 2015 -05 -26 Agenda Packet Page 716 FUND SUMMARY EXPENDITURES Supplies and Services 0 0 50,000 50,000 Other Expenses 0 0 50,000 50,000 Transfers Out 687,941 606,675 677,336 1,193,205 CIP Project Expenditures 3,616 29,522 0 0 TOTAL EXPENDITURES $691,557 $636,197 $777,336 $1,293,205 REVENUES Other Local Taxes 413,552 209,075 374,557 325,505 Use of Money & Property (130,310) 310,082 0 0 Development Impact Fees 4,433,468 2,614,066 625,000 625,000 Transfers In 100,001 383,900 302,779 352,700 TOTAL REVENUES $4,816,711 $3,517,123 $1,302,336 $1,303,205 NET FUND ACTIVITY $4,125,154 $2,880,926 $525,000 $10,000 FUND DETAIL FY 2012-17' FY - 2014-15 FY 2015-16 EXPENDITURES 715 PAD Fund - Eastern 3,616 29,522 75,000 75,000 716 PAD Fund - Western 0 0 25,000 540,000 717 Resid. Construction /Conversion 677,319 606,675 677,336 678,205 725 Indust. Development Authority 10,622 0 0 0 TOTAL EXPENDITURES $691,557 $636,197 $777,336 $1,293,205 REVENUES 715 PAD Fund - Eastern 4,217,838 2,630,550 600,000 600,000 716 PAD Fund - Western 87,645 292,895 25,000 25,000 717 Resid. Construction /Conversion 511,274 593,686 677,336 678,205 725 Indust. Development Authority (46) (8) 0 0 TOTAL REVENUES $4,816,711 $3,517,123 $1,302,336 $1,303,205 NET FUND ACTIVITY $4,125,154 $2,880,926 $525,000 $10,000 2015 -05 -26 Agenda Packet Page 717 FUND SUMMARY EXPENDITURES Supplies and Services 0 50,406 0 0 Other Expenses 7,607 0 0 0 Transfers Out 0 19,999 32,192 0 CIP Project Expenditures 2,292,368 2,153,803 5,261,877 9,048,589 TOTAL EXPENDITURES $2,299,975 $2,224,208 $5,294,069 $9,048,589 REVENUES Use of Money & Property (4,664) 5,085 0 0 Revenue from Other Agencies 2,224,650 1,594,834 5,261,877 9,048,589 Other Revenue 0 300,000 0 0 Transfers In 79,838 0 0 0 TOTAL REVENUES $2,299,824 $1,899,919 $5,261,877 $9,048,589 NET FUND ACTIVITY ($151) ($324,289) ($32,192) $0 FUND DETAIL FY 2012-17' FY - 2014-15 FY 2015-16 EXPENDITURES 723 Bicycle Facilities 7,607 0 0 0 736 Other Transportation Program 2,166,128 1,552,057 5,294,069 9,048,589 741 Prop 1B Hwy Safety 126,240 672,151 0 0 TOTAL EXPENDITURES $2,299,975 $2,224,208 $5,294,069 $9,048,589 REVENUES 723 Bicycle Facilities 7,607 0 0 0 735 Transportation Partnership (151) 309 0 0 736 Other Transportation Program 2,166,128 1,552,058 5,261,877 9,048,589 741 Prop 1 B Hwy Safety 126,240 347,552 0 0 TOTAL REVENUES $2,299,824 $1,899,919 $5,261,877 $9,048,589 NET FUND ACTIVITY ($151) ($324,289) ($32,192) $0 2015 -05 -26 Agenda Packet Page 718 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 719 DEBT SERVICE FUNDS 2015 -05 -26 Agenda Packet Page 720 2015 -05 -26 Agenda Packet Page 721 The debt service requirement for the City and Public Financing Authority is $11.6 million for fiscal year 2015- 16. Successor Agency to the Redevelopment Agency debt is reported in the "Debt Administration" section of the budget. The $11.6 million are the required payments for the debt per the amortization schedules however, the amounts budgeted or actually paid are usually less due to funds available with the trustee as a result of interest earnings or excess cash in the various debt service funds that reduce the required cash outlay budgeted for the annual payment of the debt. Debt service payments are made from various City and Funds in accordance with the legal documents governing each borrowing. Present debt is in the form of Certificates of Participation, Long Term Notes and Lease - Purchase Obligations. Debt has been issued by the City to finance a wide variety of projects, including the construction of the new Public Works Center and the new Police Facility, parking facilities, refurbishment of the Chula Vista Shopping Mall, property acquisitions, building remodeling, and equipment and software acquisition. Annual debt service costs are funded by the General Fund and Public Facilities Development Impact Fee Fund. DEBT SERVICE — CITY FUND Debt Service for City Fund accounts for the activities of the City's bonds (not issued by the CV Public Financing Authority), notes and capital leases. Debt service expenditures for the City Fund are approximately $2.6 million offset by revenues of $3.8 million. To follow is a brief description of the City Fund - debt service funds. • Fund 442: CDBG Section 108 Loan In June of 2008, the City received a loan of $9.5 million from the U.S. Department of Housing and Urban Development (HUD), under the Section 108 program. These funds will be repaid with a portion of the City's annual CDBG allocation, over the next 20 years. The funds will be used for the 'Castle Park Infrastructure Project'. The Section 108 loan is an 'advance' of future CDBG entitlement funds, and, as such, is repaid with a portion of the City's annual entitlement. Debt Service Funds • Fund 451: Long Term Advances DSF — City This fund was established to account for inter -fund loans. • Fund 452: Capital Leases This fund was established to account for the lease /purchase of the Fire Department's defibrillator equipment, the Police Department's Mobile Data Computers, and Energy Conservation equipment. In December 2012, the City entered into a lease purchase agreement with Bank of America to purchase certain energy conservation equipment. The agreement would bridge the financial gap between the Municipal Streetlight Retrofit Project capital costs and the available rebates for energy conservation equipment. In March 2015, the City entered into lease purchase agreement with PCS Mobile to purchase mobile data computers and associated software. • Fund 453: Energy Loan Repayment This fund accumulates payment of principal and interest on a loan obtained through the California Energy Commission to fund various energy conservation capital projects. On July 23, 2013, the City Council authorized a 16 year lease purchase agreement with Banc of America to fund various solar energy projects for City facilities. The original amount of the loan was $2,121,500 and will be repaid through future energy savings. 2015 -05 -26 Agenda Packet Page 722 DEBT SERVICE — CHULA VISTA PUBLIC FINANCING • Fund 475: 2014 Refunding Certificates of AUTHORITY Participation The Chula Vista Public Financing Authority (PFA) formed In March 2014, the Public Financing Authority in April 1995 to provide for financing of acquisition, issued the 2014 COP in the amount of $45,920,000 construction and improvement of public capital to refinance the outstanding principal balance of improvements. The PFA has been used to issue the 2002 Certificates of Participation. The source of Certificates of Participation on behalf of the City. repayment of the certificates is the lease payments to be made by the General Fund and PFDIF to the Debt service expenditures for the PFA are Public Financing Authority. The term of the approximately $9.8 million with offsetting revenues of certificates is through calendar year 2032. $9.8 million. To follow is a brief description of the Chula Vista PFA - debt service funds. • Fund 472: 2004 Certificates of Participation — Civic Center Protect — Phase I In August 2004, the Public Financing Authority issued the 2004 COP in the amount of $37,240,000 to finance the construction and equipping of certain improvements to the Civic Center complex and to provide funds for infrastructure improvements in western Chula Vista. The source of repayment of the certificates is the lease payments to be made by the General Fund and PFDIF to the Public Financing Authority. The term of the certificates is through the year 2034. • Fund 473: 2006 Certificates of Participation — Civic Center Protect — Phase I I In March 2006, the Public Financing Authority issued the 2006 COP in the amount of $20,325,000 to finance the construction and equipping of additional improvements to the Civic Center complex and for the renovation of the City's Nature Center. • Fund 474: 2010 COP Refinance — Corooration Yard and Civic Center Phase III) In February 2010, the Public Financing Authority issued the 2010 COP in the amount of $29,355,000 to refinance the outstanding $15,640,000 principal balance of the 2000 Certificate of Participation and to finance certain capital improvement projects. The source of repayment of the certificates is the lease payments to be made by the General Fund and PFDIF to the Public Financing Authority. The term of the certificates is through the year 2033. 2015 -05 -26 Agenda Packet Page 723 FUND SUMMARY EXPENDITURES Other Expenses 1,817,640 2,735,944 2,704,272 2,173,048 Transfers Out 0 36,851 100,482 0 TOTAL EXPENDITURES $1,817,640 $2,772,795 $2,804,754 $2,173,048 REVENUES Use of Money & Property (679) 1,055 0 0 Revenue from Other Agencies 1,149 0 0 0 Other Revenue 0 145,494 183,262 183,262 Transfers In 2,164,114 2,741,033 3,613,757 4,928,498 TOTAL REVENUES $2,164,584 $2,887,582 $3,797,019 $5,111,760 NET FUND ACTIVITY $346,944 $114,787 $992,265 $2,938,712 FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTUAld�CTUAIdo�PROJECTED FY - FY 2014-15 PROPOSED EXPENDITURES 442 CDBG Section 108 Loan 749,073 752,752 756,715 758,243 446 Notes Payable Adamo Property 52,575 35,744 0 0 449 SD Co Regional Comm Systems 295,734 295,729 0 0 451 Long -term Advances DSF - City 0 696,971 750,000 150,000 452 KS Fire Equipment Capital Lease 143,513 298,741 488,114 452,952 453 CES Loan Repayment 576,745 692,858 809,925 811,853 TOTAL EXPENDITURES $1,817,640 $2,772,795 $2,804,754 $2,173,048 REVENUES 442 CDBG Section 108 Loan 749,073 752,752 756,715 758,243 446 Notes Payable Adamo Property 52,575 35,743 0 0 449 SD Co Regional Comm Systems 295,643 295,706 0 0 451 Long -term Advances DSF - City 350,000 817,779 1,878,202 3,190,000 452 KS Fire Equipment Capital Lease 418,516 294,301 352,177 351,664 453 CES Loan Repayment 298,777 691,301 809,925 811,853 TOTAL REVENUES $2,164,584 $2,887,582 $3,797,019 $5,111,760 NET FUND ACTIVITY $346,944 $114,787 $992,265 $2,938,712 2015 -05 -26 Agenda Packet Page 724 FUND SUMMARY EXPENDITURES Supplies and Services 15,056 12,885 18,500 21,000 Other Expenses 10,114,463 59,155,359 9,764,365 9,760,349 Transfers Out 0 3,455,008 0 0 TOTAL EXPENDITURES $10,129,519 $62,623,252 $9,782,865 $9,781,349 Use of Money & Property Other Revenue Transfers In TOTAL REVENUES NET FUND ACTIVITY 276,668 0 7,769,142 $8,045,810 ($2,083,709) 111,629 49,457,111 12,842,973 $62,411,713 ($211,539) 0 0 0 0 9,764,400 9,760,794 $9,764,400 $9,760,794 ($18,465) ($20,555) FUND DETAIL FY 2012-13 FY - FY 2014-15 FUND # FUND DESCRIPTION ACTUAld�CTUAIdo�PROJECTED PROPOSED EXPENDITURES 450 2002 COP Police Facility Proj 3,919,532 7,103,845 0 0 471 2003 Refunding Cert of Part 1,065,416 495,852 0 0 472 2004 COP Civ Ctr Proj Phase I 2,394,846 2,395,317 2,396,449 2,399,514 473 2006 COP Civ Ctr Proj Phase 2 1,271,308 1,273,239 1,277,309 1,276,960 474 2010 Refunding COP 1,478,417 2,494,705 2,494,107 2,492,319 475 2014 Refunding COP 0 48,860,294 3,615,000 3,612,556 TOTAL EXPENDITURES $10,129,519 $62,623,252 $9,782,865 $9,781,349 REVENUES 450 2002 COP Police Facility Proj 3,953,149 3,792,276 0 0 471 2003 Refunding Cert of Part 29,311 11,687 0 0 472 2004 COP Civ Ctr Proj Phase I 2,516,041 2,266,820 2,391,449 2,394,514 473 2006 COP Civ Ctr Proj Phase 2 1,331,717 1,207,036 1,271,309 1,270,960 474 2010 Refunding COP 215,592 2,492,651 2,491,607 2,487,320 475 2014 Refunding COP 0 52,641,243 3,610,035 3,608,000 TOTAL REVENUES $8,045,810 $62,411,713 $9,764,400 $9,760,794 NET FUND ACTIVITY ($2,083,709) ($211,539) ($18,465) ($20,555) 2015 -05 -26 Agenda Packet Page 725 OTHER FUNDS 2015 -05 -26 Agenda Packet Page 726 2015 -05 -26 Agenda Packet Page 727 The funds included in this section include miscellaneous Special Revenue and Internal Service funds. Special Revenue Funds are used to account for proceeds derived from specific revenue sources, which are legally restricted to expenditures for special purposes. Internal Service Funds are used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. Internal Service Funds account for the activities of worker's compensation, insurance, and technology replacement. To follow is a brief description of special revenue funds. TRANSPORTATION FUNDS Included in this group are the following funds: • Fund 221: Gas Tax This fund accounts for the receipt and expenditure of all monies received from the State under Street and Highway Code Sections 2106, 2107, 2107.5. The allocations must be spent for street maintenance or construction and a limited amount for engineering. Historically, these monies were deemed highly restrictive insofar as expenditure, but with adoption of AB1502 effective January 1, 1978 most of the money can be used for any street purpose. • Fund 225: Traffic Signal Fee This fund accounts for the receipt and expenditure of fees collected from private developers for financing and / or installation of new traffic signals, as required by City of Chula Vista Council Policy 478 -01. • Fund 227: Transportation Sales Tax This fund was established to account for the receipt and disbursement of all transportation sales tax (TransNet) revenues for the City. In November 1987, San Diego County voters first approved the Transportation Program (TransNet). In November of 2004, voters approved a 40 -year extension of the program, which funds transportation improvements throughout the region via a half - cent local sales tax. The City's allocation of regional funds is based upon population and the number of local street and road miles maintained by the City. Other Funds PARKING FUNDS Included as part of this group are the following funds: • Fund 241:Parking Meter Parking Meter Fund revenues are generated through two sources: coin deposits from parking meters located in the downtown area, and parking citation payments for expired meter violations. These funds pay for the coin collection and maintenance of the meters, the parking enforcement staff that monitors the downtown area, and general upkeep and signage of the downtown parking lots. • Fund 243: Town Center I Parking This fund is used to account for revenues from an in -lieu parking fee. This in -lieu parking fee applies to any developer of a new commercial building or addition to an existing commercial building within the Downtown Parking District. Use of monies in this fund is restricted to the purchase or development of parking sites. PUBLIC SAFETY FUNDS Included in this group are the following funds: • Fund 245: Traffic Safety This fund is a depository for all monies derived from vehicle code fines, excluding parking violations. The fines are collected through the County court system and remitted to the City monthly. These monies may be expended only for traffic control devices and equipment and maintenance thereof or for the maintenance, improvement or construction of public streets. • Fund 251: Supplemental Law Enforcement Services This fund accounts for the Supplemental Law Enforcement grant funds awarded to the Police Department; these funds can be used to supplement general fund appropriations for Police related personnel, overtime, and equipment expenditures. 2015 -05 -26 Agenda Packet Page 728 • Fund 252: Police Department Grants This fund includes the California Border Alliance Group (CBAG) and miscellaneous police grants. CBAG is funded with federal funds. While CBAG employees are technically City of Chula Vista employees they do not work in the City of Chula Vista nor do they provide direct services for the City of Chula Vista; the City serves only as a fiscal agent for CBAG. • Fund 253: Inmate Welfare Fund This fund is a depository for monies collected from pay phones commissions and operation of a commissary, in accordance with the Sheriff's Penal Code section 4025. Monies in this fund shall be expended for the benefit, education, and welfare of the inmates. • Fund 254: Local Law Enforcement Block Grant Funds This fund accounts for federal Justice Assistance Grant funds awarded to the Police Department; these funds can be used to supplement general fund appropriations for Police related personnel, overtime, and equipment expenditures. • Fund 256: Asset Seizure This fund is a depository for assets seized under Federal statutes through the process of "equitable sharing" of drug money and real property. By law these funds may only be used for law enforcement purposes and are intended to supplement, not supplant, existing funds. LIBRARY /CULTURAL ARTS FUNDS Included in this group are the following funds: • Fund 261: California Library Service Act The California Library Services Act (CLSA) helps public libraries provide coordinated reference services and provides reimbursement for interlibrary loans of materials and loans to nonresident borrowers through the Transaction Based Reimbursement program, also known as the Direct Loan program. The Chula Vista Public Library participates in the Universal Borrowing provision of CLSA that reimburses the City for any over -the- counter loan service to the residents of all other California public library jurisdictions (Direct Loan). The Interlibrary Loan program reimburses the City for handling costs when books are lent to other California libraries. • Fund 262: Public Library Foundation Fund The Public Library Foundation Act (PLF) is a funding formula under which the State contributes funding for basic local library services, under specified conditions, to assure the availability to every resident of the state an adequate level of public library service regardless of the taxable wealth of the local jurisdiction providing the service. The legislation provides that to every library jurisdiction which allocates to its public library at least as much local funding as it had the previous year, the state will award a dollar amount equal to the proportional share of the total amount allocated for the Public Library Foundation program based on the population of the library's service area as certified by the State Librarian for that fiscal year. The annual funding is dependent upon appropriations made by the legislature and the Governor. • Fund 267: McCandliss Awards The Gayle McCandliss Fund was established in 1991 shortly after she passed away. Consistent with her wishes, it was established as a perpetual fund to recognize and provide monetary support or recognition to individuals or groups who make substantial contribution to the arts in the City of Chula Vista. SUNDRY GRANT FUNDS Included as part of this group are the following funds: • Fund 268: State Recreation Grants This fund was established to account for the receipt and disbursement of all State Recreation Grants received by the City. • Fund 269: Other Grant Fund The Other Grants Fund was established to account for all grants other than Federal and State grants such as: San Diego Neighborhood Reinvestment Program and Be the Change grants. • Fund 272: Federal Grants Fund This fund was established to account for the receipt and disbursement of all Federal Grants received by the City. 2015 -05 -26 Agenda Packet Page 729 • Fund 273: State Grants Fund This fund was established to account for the receipt and disbursement of all State Grants received by the City (excluding Recreation related grants). • Fund 274: ARRA Fund This fund was established to account for the receipt and disbursement of federal grant funds received by the City, authorized by the American Recovery and Reinvestment Act of 2009. ENVIRONMENTAL SERVICES AND CONSERVATION FUNDS Included as part of this group are the following funds: • Fund 281: Waste Management and Recycling Revenue for the Waste Management fund is generated by a variety of grants which are used to implement, operate and educate the public on waste diversion, recycling, environmental actions and impacts. Current grant programs include litter reduction and bottle and can recycling programs; a regional used motor oil and oil filter recycling program; regional household hazardous waste program, regional universal waste program, and a regional needles and sharps disposal program. • Fund 282: Environmental Services The Environmental Services fund is a depository for revenue that is generated primarily by a 5% surcharge (AB 939 fees) applied to the refuse rates for residential and commercial customers. The surcharge is authorized by the State to recover the costs of developing and implementing source reduction, recycling, and composting programs that are implemented to meet the State mandate to divert 50% of all waste generated annually in the City from landfills. The fund also includes two annual flat fees paid by the franchise hauler under the franchise agreement to cover litter container costs and to support the programs public education and enforcement service costs. • Fund 285: Energy Conservation Fund Revenue for the Energy Conservation fund is generated by grants and inter - agency agreements for specific energy conservation projects. The energy conservation fund reflects the budget for the SDG &E energy conservation grant. This grant funds energy conservation programs for local residents, businesses, and City operations that reduce the amount of natural gas and electricity consumed. STORM DRAIN FUND Storm Drain Revenue (Fund 301) — In accordance with Chapter 14.16 of the Chula Vista Municipal Code all proceeds of the storm drain fee are deposited into the Storm Drain Revenue Fund. Monies in this fund may only be used for storm drain purposes. The monthly storm drain service charge is included on the sewer bill. COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS These funds are depositories of grant entitlement monies received from the Department of Housing and Urban Development including funds 311, 314, 321, 325, and 333. The purpose of these monies is for community development projects; eligible activities include those that: • Benefit low and moderate income people. • Eliminate slums and blight. • Alleviate conditions posing a serious health and /or safety hazard. OPEN SPACE DISTRICT FUNDS These funds are a depository for all monies received for all flat rate property tax assessments levied against benefiting property owners for all maintenance of open space areas. Included in this group are funds 342 through 389. The total assessment amount for each Open Space District is calculated each year based upon the cost of providing services within the district. This assessment rate is limited to the prior year's amount, increased by the lesser of two local indexes. In recent years the indexed increases were not effectively keeping pace with the actual costs of providing these services to the property owners. In fiscal year 2007 -08 staff went through the Proposition 218 process on seven districts /zones, in order to bring revenues in line with actual maintenance costs. Only one of the seven districts was approved for an increase in assessment. As a result a concentrated effort has been made to reduce expenditures to within available resources. 2015 -05 -26 Agenda Packet Page 730 MISCELLANEOUS SPECIAL REVENUE FUNDS Included in this grouping are the following funds: • Fund 223: Telephone Users Tax (TUT) Common Fund This fund is used to account for funds in accordance with a 2014 settlement agreement that resolved a class action lawsuit challenging the City's collection of Telephone Users' Taxes from wireless customers. • Fund 270: Mobile Home Rent Review Program Fund This fund is a depository for monies collected for the Mobile Home Administrative Fee. This fee was established in July 2011 to ensure a consistent funding source for administration and implementation of Chula Vista Municipal Code 9.50 — Mobile Home Park Space Rent Review. • Fund 316: Public Educational & Government Fee Fund This fund accounts for funds received through State Video Franchise Fees to support Public, Education, and Governmental (PEG) access channel facilities. These funds are restricted. In fiscal year 2013 -14 they will be used to replace presentation and broadcasting equipment for Council Chambers and the Police Department Community Room. INTERNAL SERVICE FUNDS Included as part of this group are the following funds: • Fund 232: Flexible Spending Account This fund is used to account for employee health, medical and dependent care benefits. In fiscal year 2011 -12 this fund was transitioned to a trust and agency type fund. • Fund 234: Advanced Life Support (ALS) Fund This fund accounts for the receipt of pass- through revenue from ambulance services to fund First Responder Advanced Life Support program. • Fund 235: Legislative Counsel Fund This fund accounts for the expenditures and revenues used to fund outside legal counsel services as necessary to implement Proposition C. • Fund 341: Public Liability Trust Fund This fund is a depository for contributions made from the General Fund to provide an appropriate reserve level to pay for uninsured and deductibles for public liability losses. The City is self- insured for amounts up to $250,000 per claim. • Fund 393: Technology Replacement Fund The Technology Replacement Fund is an internal service function that provides for the replacement of computers and related technology equipment. Funds from departments' operating budgets are transferred to the Technology Replacement Fund for future replacement of equipment included in the program. Due to economic reasons, the program has not been funded for several years. Computer replacement has been included in various funds based on available resources. • Fund 398: Workers Compensation This fund is a depository for contributions made from all funds, which have personnel allocated to them, to pay for annual costs related to workers' compensation liabilities including the provision of an appropriate reserve to pay uninsured claims costs. The City is self- insured for amounts up to $1.0 million per claim. The amount of the reserve and the required annual transfer is determined by the Director of Finance, based on experience and consultation with the Risk Manager. In fiscal year 2010 -11 the Workers Compensation Fund was moved from Fund 231 to Fund 398, this change is necessary to change the fund type from General Fund to internal service. 2015 -05 -26 Agenda Packet Page 731 FUND SUMMARY EXPENDITURES Supplies and Services 0 0 1,265,500 490,000 Other Expenses 1,960 3,774,828 90,000 45,000 Capital 0 0 1,465,000 125,902 Transfers Out 4,518,652 4,342,351 4,869,428 4,259,428 CIP Project Expenditures 9,319,294 5,704,542 11,529,119 12,090,343 Non -CIP Project Expenditures 0 0 637,500 100,000 TOTAL EXPENDITURES $13,839,906 $13,821,721 $19,856,547 $17,110,673 REVENUES Other Local Taxes 6,196,036 898,172 5,522,000 5,886,000 Use of Money & Property (36,887) 95,894 0 0 Revenue from Other Agencies 7,249,106 12,504,188 6,249,431 5,642,500 Charges for Services 240,397 207,016 0 200,000 Other Revenue 30,692 355,944 288,900 0 Transfers In 0 8,037,452 32,192 0 TOTAL REVENUES $13,679,344 $22,098,666 $12,092,523 $11,728,500 NET FUND ACTIVITY ($160,562) $8,276,945 ($7,764,024) ($5,382,173) FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTUAL ,,,.,,ACTUAL FY - FY 2014-15 PROJECTED PROPOSED EXPENDITURES 221 Gas Tax 6,266,602 5,358,418 6,839,428 8,590,428 223 TUT Common Fund 0 3,790,423 4,228,219 615,902 225 Traffic Signal 948,417 352,060 965,000 659,000 227 Transportation Sales Tax 6,624,887 4,320,820 7,823,900 7,245,343 TOTAL EXPENDITURES $13,839,906 $13,821,721 $19,856,547 $17,110,673 REVENUES 221 Gas Tax 5,651,471 12,262,328 6,159,431 5,514,157 223 TUT Common Fund 0 8,037,009 0 0 225 Traffic Signal 251,405 251,244 25,738 200,000 227 Transportation Sales Tax 7,776,468 1,548,085 5,907,354 6,014,343 TOTAL REVENUES $13,679,344 $22,098,666 $12,092,523 $11,728,500 NET FUND ACTIVITY ($160,562) $8,276,945 ($7,764,024) ($5,382,173) 2015 -05 -26 Agenda Packet Page 732 FUND SUMMARY EXPENDITURES Personnel Services 40,000 0 0 0 Supplies and Services 175,157 210,705 220,300 220,300 Other Expenses 135,684 154,537 166,400 166,400 Utilities 10,715 11,323 11,855 12,448 CIP Project Expenditures 2,125 273,882 100,000 0 TOTAL EXPENDITURES $363,681 $650,447 $498,555 $399,148 REVENUES Licenses and Permits 42,489 39,897 35,000 35,000 Fines, Forfeitures, Penalties 209,862 232,857 200,000 200,000 Use of Money & Property 349,463 392,208 350,000 350,000 Other Revenue 0 2,001 0 0 TOTAL REVENUES $601,814 $666,963 $585,000 $585,000 NET FUND ACTIVITY $238,133 $16,516 $86,445 $185,852 FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTIAIMM.ACTU� FY 2013 - FY 2014-15 ROJECT EXPENDITURES 241 Parking Meter 363,681 650,447 498,555 399,148 TOTAL EXPENDITURES $363,681 $650,447 $498,555 $399,148 REVENUES 241 Parking Meter 602,080 666,405 585,000 585,000 243 Town Centre I- Parking District (266) 558 0 0 TOTAL REVENUES $601,814 $666,963 $585,000 $585,000 NET FUND ACTIVITY $238,133 $16,516 $86,445 $185,852 2015 -05 -26 Agenda Packet Page 733 FUND SUMMARY EXPENDITURES Personnel Services 4,333,413 4,616,850 6,214,773 5,479,457 Supplies and Services 971,226 903,145 1,453,615 1,387,216 Other Expenses 0 0 0 8,999 Capital 16,839 224,681 225,000 269,519 Transfers Out 623,876 486,325 531,364 418,678 TOTAL EXPENDITURES $5,945,354 $6,231,001 $8,424,752 $7,563,869 REVENUES Fines, Forfeitures, Penalties 426,373 427,460 437,640 437,640 Use of Money & Property 5,951 22,525 20,000 20,000 Revenue from Other Agencies 5,004,264 5,725,752 7,257,863 6,023,705 Charges for Services 52,975 144,800 122,445 123,046 Other Revenue 15,946 38,089 60,000 60,000 Transfers In 115,522 42,753 36,786 220,824 TOTAL REVENUES $5,621,031 $6,401,379 $7,934,734 $6,885,215 NET FUND ACTIVITY ($324,323) $170,378 ($490,018) ($678,654) FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTUAL FY - ACTUAL FY 2014-15 PROJECTED PROPOSED EXPENDITURES 245 Traffic Safety 529,896 394,316 437,640 437,640 251 Suppl Law Enforcement Services 213,022 325,920 504,657 543,384 252 Police Department Grants 4,516,887 5,122,623 6,815,112 5,726,767 253 Inmate Welfare Fund 50,364 50,245 45,000 60,000 254 Local Law Enf Block Grant 188,497 85,126 77,343 91,078 256 Asset Seizure 446,688 252,771 545,000 705,000 TOTAL EXPENDITURES $5,945,354 $6,231,001 $8,424,752 $7,563,869 REVENUES 245 Traffic Safety 425,760 427,702 437,640 437,640 251 Suppl Law Enforcement Services 228,244 388,412 401,014 401,014 252 Police Department Grants 4,520,563 5,125,949 6,728,737 5,665,483 253 Inmate Welfare Fund 13,610 16,043 30,000 30,000 254 Local Law Enf Block Grant 174,966 95,989 77,343 91,078 256 Asset Seizure 257,888 347,284 260,000 260,000 TOTAL REVENUES $5,621,031 $6,401,379 $7,934,734 $6,885,215 NET FUND ACTIVITY ($324,323) $170,378 ($490,018) ($678,654) 2015 -05 -26 Agenda Packet Page 734 STAFFING SUMMARY - 252 CBAG Deputy Director 1.00 - - 1.00 CBAG Deputy Exec Dir 1.00 - - 1.00 CBAG Director Of IV -LECC 1.00 - - 1.00 CBAG Executive Director 1.00 - - 1.00 FA Admin Analyst II 2.00 - - 2.00 FA Analyst 4.00 - (2.00) 2.00 FA Director Of SD LECC 1.00 - - 1.00 FA Geospatial Intel Analyst 1.00 - - 1.00 FA Graphic Designer/Wbmstr 1.00 - - 1.00 FA Info Security Program Mgr 1.00 - - 1.00 FA LECC IT Manager 1.00 - - 1.00 FA Ntwrk Administrator II 4.00 - - 4.00 FA Program Analyst 1.00 - - 1.00 FA Program Assistant 2.00 - - 2.00 FA Program Manager 2.00 1.00 (2.00) 1.00 FA Public Safety Analyst 2.00 (1.00) (1.00) - FA RCFL Ntwk Engineer 2.00 - - 2.00 FA Sr Intelligence Analyst - - 5.00 5.00 FA Sr Public Safety Analyst 4.00 1.00 (5.00) - FA Sr Secretary 1.00 - - 1.00 Peace Officer 3.00 - - 3.00 Police Agent 1.00 - - 1.00 Police Comm Relations Spec 1.00 - - 1.00 Police Sergeant 2.00 - - 2.00 2015 -05 -26 Agenda Packet Page 735 FUND SUMMARY EXPENDITURES Supplies and Services 59,175 97,409 2,281 400 Other Expenses 1,400 500 1,200 1,200 Transfers Out 0 2,352 0 0 TOTAL EXPENDITURES $60,575 $100,261 $3,481 $1,600 REVENUES Use of Money & Property (1,254) 1,820 0 0 Transfers In 59,545 0 0 0 TOTAL REVENUES $58,291 $1,820 $0 $0 NET FUND ACTIVITY ($2,284) ($98,441) ($3,481) ($1,600) FUND DETAIL FUND # FUND DESCRIPTION FY 2012-13 ACTUAII& FY - ACTUAL FY 2014-15 PROJECTED PROPOSED EXPENDITURES 261 California Library Service Act 24,867 88,920 0 - 262 Public Library Act 34,308 8,489 1,881 - 265 CA Dept of Education Sect. 321 0 2,352 0 - 267 McCandliss Cultural Arts 1,400 500 1,600 - TOTAL EXPENDITURES $60,575 $100,261 $3,481 $1,600 REVENUES 261 California Library Service Act 58,540 1,637 0 0 262 Public Library Act (168) 32 0 0 267 McCandliss Cultural Arts (81) 151 0 0 TOTAL REVENUES $58,291 $1,820 $0 $0 NET FUND ACTIVITY ($2,284) ($98,441) ($3,481) ($1,600) 2015 -05 -26 Agenda Packet Page 736 FUND SUMMARY EXPENDITURES Personnel Services 412,662 595,186 772,804 827,244 Supplies and Services 682,825 842,356 745,076 573,409 Other Expenses 415,515 278,622 365,484 107,333 Capital 5,173 413,519 309,173 0 Transfers Out 112,736 9,889 0 0 CIP Project Expenditures 2,509,427 514,060 386,310 0 Non -CIP Project Expenditures 19,642 306,267 940,500 0 TOTAL EXPENDITURES $4,157,980 $2,959,899 $3,519,347 $1,507,986 REVENUES Use of Money & Property (187) 1,521 0 0 Revenue from Other Agencies 2,274,972 1,703,950 3,312,325 1,314,484 Charges for Services 129,650 117,055 120,000 73,500 Other Revenue 2,236,671 25,067 22,333 22,333 Transfers In 52,226 43,060 64,689 62,326 TOTAL REVENUES $4,693,332 $1,890,653 $3,519,347 $1,472,643 NET FUND ACTIVITY $535,352 ($1,069,246) $0 ($35,343) FUND DETAIL EXPENDITURES 268 State Recreation Grants 269 Other Grant Fund 270 Mobile Home Rent Review Progra 272 Federal Grants Fund 273 State Grants Fund 274 ARRA Fund TOTAL EXPENDITURES REVENUES 269 Other Grant Fund 270 Mobile Home Rent Review Progra 272 Federal Grants Fund 273 State Grants Fund 274 ARRA Fund TOTAL REVENUES NET FUND ACTIVITY 62,736 67,562 99,824 1,178,156 551,407 2,198,295 $4,157,980 0 243,315 67,025 1,556,035 673,358 420,166 $2,959,899 0 0 120,000 2,347,398 1,029,616 22,333 $3,519,347 0 0 93,000 1,316,810 75,843 22,333 $1,507,986 298,000 16,737 0 0 129,459 118,495 120,000 73,500 1,085,599 1,575,961 2,347,398 1,316,810 529,930 158,867 1,029,616 60,000 2,650,344 20,593 22,333 22,333 $4,693,332 $1,890,653 $3,519,347 $1,472,643 $535,352 ($1,069,246) $0 ($35,343) 2015 -05 -26 Agenda Packet Page 737 STAFFING SUMMARY - 272 Emergency Svcs Coordinator 1.00 - - 1.00 GIS Specialist 1.00 1.00 - 2.00 2015 -05 -26 Agenda Packet Page 738 FUND SUMMARY EXPENDITURES Personnel Services 686,793 782,723 990,910 1,035,473 Supplies and Services 1,056,540 903,015 3,768,394 2,307,229 Other Expenses 913,224 689,476 1,658,450 1,014,079 Capital 0 52,659 8,250 4,600 Utilities 30 56 5,100 5,100 Transfers Out 120,959 132,585 107,585 107,585 CIP Project Expenditures 105,000 2,098,662 (21,881) 0 TOTAL EXPENDITURES $2,882,546 $4,659,176 $6,516,808 $4,474,066 REVENUES Use of Money & Property (7,528) 16,680 0 0 Revenue from Other Agencies 1,602,544 1,225,335 4,792,489 2,663,079 Charges for Services 1,071,724 1,104,573 1,264,279 1,262,279 Other Revenue 306,839 2,353,731 200,000 110,000 Transfers In 13,374 0 0 0 TOTAL REVENUES $2,986,953 $4,700,319 $6,256,768 $4,035,358 NET FUND ACTIVITY $104,407 $41,143 ($260,040) ($438,708) 285 Energy Conservation 1,361,582 3,171,992 FUND DETAIL EXPENDITURES 281 Waste Management & Recycling 249,306 174,825 1,311,697 987,385 282 Environmental Services Fund 1,252,440 1,335,673 1,699,564 1,810,987 285 Energy Conservation 1,380,800 3,148,678 3,505,547 1,675,694 TOTAL EXPENDITURES $2,882,546 $4,659,176 $6,516,808 $4,474,066 REVENUES 281 Waste Management & Recycling 248,119 177,760 1,289,744 987,385 282 Environmental Services Fund 1,377,252 1,350,567 1,464,279 1,372,279 285 Energy Conservation 1,361,582 3,171,992 3,502,745 1,675,694 TOTAL REVENUES $2,986,953 $4,700,319 $6,256,768 $4,035,358 NET FUND ACTIVITY $104,407 $41,143 ($260,040) ($438,708) 2015 -05 -26 Agenda Packet Page 739 Environ Svcs Mgr Environ Svcs Prog Mgr Recycl Spec I Recycling Specialist 11 STAFFING SUMMARY - 282 - - 1.00 1.00 1.00 - (1.00) - 1.00 - - 1.00 3.00 - 1.00 4.00 2015 -05 -26 Agenda Packet Page 740 EXPENDITURES Supplies and Services Other Expenses Utilities Transfers Out TOTAL EXPENDITURES REVENUES Licenses and Permits Fines, Forfeitures, Penalties Use of Money & Property Charges for Services TOTAL REVENUES NET FUND ACTIVITY FUND SUMMARY 222,722 296,107 348,100 24,361 0 0 754 776 800 340,463 340,463 487,378 $588,300 $637,346 $836,278 (1,180) 0 23,750 600 (4,341) 5,000 (961) 1,850 0 587,887 600,025 555,500 $586,346 $597,534 $584,250 ($1,954) ($39,812) ($252,028) 348,100 0 800 210,000 $558,900 23,750 5,000 0 555,500 $584,250 $25,350 2015 -05 -26 Agenda Packet Page 741 FUND SUMMARY EXPENDITURES Supplies and Services 48,032 13,303 43,427 16,527 Other Expenses 332,381 381,381 1,467,566 1,289,420 Capital 0 1,161 75,419 75,419 Transfers Out 817,073 752,752 756,715 758,243 CIP Project Expenditures 3,090,468 381,766 0 468,292 Non -CIP Project Expenditures 1,199,362 2,755,132 1,226,612 520,592 TOTAL EXPENDITURES $5,487,316 $4,285,495 $3,569,739 $3,128,493 REVENUES Use of Money & Property 40,950 12,067 79,000 79,000 Revenue from Other Agencies 3,055,233 3,415,216 3,406,739 3,019,493 Charges for Services 132 140 0 0 Other Revenue 205,184 55,710 0 0 Transfers In 27,538 0 30,981 9,598 TOTAL REVENUES $3,329,037 $3,483,133 $3,516,720 $3,108,091 NET FUND ACTIVITY ($2,158,279) ($802,362) ($53,019) ($20,402) FUND DETAIL FY 2012-13 FY - FY 2014-15 FUND # FUND ,RESCRIPTION ACTUAI,.ACTUAL PROJECTED PROPOSE--b EXPENDITURES 311 CDBG Housing Program 25,432 16,685 451,500 46,100 314 Emergency Shelter Grant Prog 86,380 162,060 151,402 153,270 321 Home Program 520,697 1,808,221 949,902 922,183 333 FY2000 Comm Dev Block Grant 4,854,807 2,298,529 2,016,935 2,006,940 TOTAL EXPENDITURES $5,487,316 $4,285,495 $3,569,739 $3,128,493 REVENUES 311 CDBG Housing Program 51,346 21,643 451,500 46,100 314 Emergency Shelter Grant Prog 86,380 162,060 151,402 153,270 321 Home Program 488,847 1,756,996 949,902 922,183 325 CDBG Program - Income Projects (340) 688 0 0 333 FY2000 Comm Dev Block Grant 2,702,804 1,541,746 1,963,916 1,986,538 TOTAL REVENUES $3,329,037 $3,483,133 $3,516,720 $3,108,091 NET FUND ACTIVITY ($2,158,279) ($802,362) ($53,019) ($20,402) 2015 -05 -26 Agenda Packet Page 742 FUND SUMMARY EXPENDITURES Supplies and Services 7,326,683 6,272,554 7,406,837 7,629,005 Supplies and Services 0 0 0 126,905 Other Expenses 0 0 0 1,000 Other Expenses 1,869,929 1,777,609 1,886,707 1,942,358 Utilities 0 0 0 10,500 Utilities 2,158,934 2,409,959 2,875,327 3,049,715 CIP Project Expenditures 0 0 200,000 0 TOTAL EXPENDITURES $11,355,546 $10,460,122 $12,368,871 $12,759,483 REVENUES Use of Money & Property Other Revenue Other Revenue TOTAL REVENUES NET FUND ACTIVITY (82,226) 12,142,259 0 $12,060,033 $704,487 169,146 9,204,603 0 $9,373,749 ($1,086,373) 0 0 11,862,234 12,621,078 0 138,405 $11,862,234 $12,759,483 ($506,637) $0 FUND DETAIL FY 2012-13 FY - FY 2014-15 FUND # FUND DESCRIPTION ACTUAL EXPENDITURES 342 CFD 11 -M RHR McMillin 53,047 77,712 136,650 152,521 343 CFD 12 -M Vlg7 465,789 372,688 472,569 469,962 344 CFD 13 -M Vlg2 125,762 111,442 171,155 222,930 345 CFD 12M - OR Village 7 498,215 416,130 457,600 463,261 346 Not in Use 0 0 0 138,405 352 Bay Blvd Landscaping Dist 7,140 6,618 10,661 12,294 353 Eastlake Maintenance Dist #1 278,009 274,687 364,524 408,743 354 Open Space District #1 83,358 74,347 106,506 112,134 355 Open Space District #2 19,480 17,600 24,649 35,602 356 Open Space District #3 50,549 52,544 59,512 74,769 357 Open Space District #4 100,501 89,245 97,844 116,984 358 Open Space District #5 56,233 47,562 53,288 64,629 359 Open Space District #6 32,994 30,823 35,818 44,049 361 Open Space District #7 15,679 5,941 19,725 11,451 362 Open Space District #8 84,753 76,322 87,957 104,949 363 Open Space District #9 86,429 79,471 90,655 107,252 364 Open Space District #10 88,641 77,286 91,925 107,776 365 Open Space District #11 172,000 152,951 180,550 214,242 2015 -05 -26 Agenda Packet Page 743 367 Open Space District #14 411,196 431,230 462,170 471,556 368 Open Space District #15 28,518 24,745 39,277 50,112 369 Open Space District #17 9,971 10,125 11,680 26,891 371 Open Space District #18 160,393 138,268 166,215 171,516 372 Open Space District #20 1,294,705 1,310,310 1,546,914 1,664,218 373 Open Space District #23 51,803 42,706 47,156 51,430 374 Open Space District #24 35,492 34,290 53,087 66,643 375 Open Space District #26 14,387 14,443 17,583 20,654 376 Open Space District #31 160,359 128,413 202,047 160,172 378 CFD 07M- Eastlk 11 Woods, Vista 621,887 525,515 591,945 661,776 379 CFD 08M -VIg 6 McM & Oty Ranch 907,143 807,745 940,601 994,455 380 CFD 09M OR VIg 11 1,021,932 891,083 995,457 1,025,267 382 CFD 99 -2 Otay Ranch VIg 1 We 780,462 710,433 829,887 825,691 386 Otay Ranch Acquisition Dist 428,742 445,890 719,000 505,000 387 CFD 98 -3 Sunbow 2 1,003,410 870,360 916,105 884,381 388 Comm Facility 97 -1 (Otay Rnch) 2,203,641 2,109,216 2,356,639 2,303,677 389 Otay Ranch Village 1,2,6,7,12 2,926 1,981 11,520 14,091 TOTAL EXPENDITURES $11,355,546 $10,460,122 $12,368,871 $12,759,483 REVENUES 342 CFD 11 -M RHR McMillin 94,557 32,240 136,650 152,521 343 CFD 12 -M Vlg7 594,145 12,873 462,569 469,962 344 CFD 13 -M Vlg2 213,130 125,532 171,155 222,930 345 CFD 12M - OR Village 7 389,060 357,560 442,600 463,261 346 Not in Use 0 0 0 138,405 351 Town Centre Landscaping Dist 1 (125) 278 0 0 352 Bay Blvd Landscaping Dist (306) 527 10,661 12,294 353 Eastlake Maintenance Dist #1 308,895 229,564 319,524 408,743 354 Open Space District #1 78,997 65,422 81,506 112,134 355 Open Space District #2 13,972 14,659 24,649 35,602 356 Open Space District #3 49,992 49,183 54,512 74,769 357 Open Space District #4 85,103 85,940 97,844 116,984 358 Open Space District #5 50,571 49,007 53,288 64,629 359 Open Space District #6 31,521 32,038 35,818 44,049 361 Open Space District #7 13,655 11,293 11,725 11,451 362 Open Space District #8 69,378 70,109 82,957 104,949 363 Open Space District #9 68,408 69,707 80,655 107,252 364 Open Space District #10 78,221 80,304 84,925 107,776 365 Open Space District #11 162,122 133,224 170,550 214,242 366 Open Space District #13 2 3 0 0 367 Open Space District #14 335,839 345,081 442,170 471,556 368 Open Space District #15 20,948 21,806 29,277 50,112 369 Open Space District #17 8,168 8,327 11,680 26,891 371 Open Space District #18 148,619 151,737 160,215 171,516 372 Open Space District #20 1,379,378 548,803 1,455,914 1,664,218 373 Open Space District #23 29,820 21,314 47,156 51,430 2015 -05 -26 Agenda Packet Page 744 374 Open Space District #24 375 Open Space District #26 376 Open Space District #31 378 CFD 07M- Eastlk II Woods, Vista 379 CFD 08M -Vlg 6 McM & Oty Ranch 380 CFD 09M OR Vlg II 382 CFD 99 -2 Otay Ranch Vlg 1 We 383 Town Ctr Business Impry Distr 386 Otay Ranch Acquisition Dist 387 CFD 98 -3 Sunbow 2 388 Comm Facility 97 -1 (Otay Rnch) 389 Otay Ranch Village 1,2,6,7,12 TOTAL REVENUES NET FUND ACTIVITY 29,205 29,866 38,087 66,643 10,750 11,049 17,583 20,654 127,309 131,024 157,410 160,172 895,048 566,564 571,945 661,776 1,241,913 1,218,945 925,601 994,455 925,298 931,909 995,457 1,025,267 802,407 692,729 784,887 825,691 (3,210) 194 0 0 100,216 122,817 719,000 505,000 871,933 679,592 886,105 884,381 2,825,849 2,468,370 2,286,639 2,303,677 9,245 4,159 11,520 14,091 $12,060,033 $9,373,749 $11,862,234 $12,759,483 $704,487 ($1,086,373) ($506,637) $0 2015 -05 -26 Agenda Packet Page 745 FUND SUMMARY EXPENDITURES Supplies and Services 0 576,747 300,000 300,000 Capital 0 131,062 300,000 300,000 TOTAL EXPENDITURES $0 $707,809 $600,000 $600,000 REVENUES Other Local Taxes 627,766 654,842 600,000 600,000 Use of Money & Property (675) 4,924 0 0 TOTAL REVENUES $627,091 $659,766 $600,000 $600,000 NET FUND ACTIVITY $627,091 ($48,043) $0 $0 2015 -05 -26 Agenda Packet Page 746 EXPENDITURES Personnel Services Supplies and Services Capital Transfers Out TOTAL EXPENDITURES REVENUES Revenue from Other Agencies TOTAL REVENUES NET FUND ACTIVITY FUND SUMMARY 0 235,080 505,041 0 220,673 307,203 0 275,764 160,701 143,513 559,846 746,051 $143,513 $1,291,363 $1,718,996 214,000 1,316,182 1,534,429 $214,000 $1,316,182 $1,534,429 $70,487 $24,819 ($184,567) 294,242 134,039 0 833,510 $1,261,791 1,475,907 $1,475,907 $214,116 2015 -05 -26 Agenda Packet Page 747 STAFFING SUMMARY - 234 EMS Nurse Coordinator 1.00 - - 1.00 2015 -05 -26 Agenda Packet Page 748 FUND SUMMARY EXPENDITURES Supplies and Services 0 0 80,000 80,000 TOTAL EXPENDITURES $0 $0 $80,000 $80,000 REVENUES Transfers In 80,000 0 0 0 TOTAL REVENUES $80,000 $0 $0 $0 NET FUND ACTIVITY $80,000 $0 ($80,000) ($80,000) 2015 -05 -26 Agenda Packet Page 749 FUND SUMMARY EXPENDITURES Supplies and Services 117,131 261,530 713,439 713,439 Other Expenses 1,200,913 385,083 940,000 940,000 TOTAL EXPENDITURES $1,318,044 $646,613 $1,653,439 $1,653,439 REVENUES Other Revenue 0 304,810 0 0 Transfers In 1,164,000 1,321,009 429,000 520,000 TOTAL REVENUES $1,164,000 $1,625,819 $429,000 $520,000 NET FUND ACTIVITY ($154,044) $979,206 ($1,224,439) ($1,133,439) 2015 -05 -26 Agenda Packet Page 750 FUND SUMMARY EXPENDITURES Supplies and Services 0 0 600,000 284,576 Capital 362 0 0 0 TOTAL EXPENDITURES $362 $0 $600,000 $284,576 REVENUES Transfers In 0 600,000 0 0 TOTAL REVENUES $0 $600,000 $0 $0 NET FUND ACTIVITY ($362) $600,000 ($600,000) ($284,576) 2015 -05 -26 Agenda Packet Page 751 FUND SUMMARY EXPENDITURES Supplies and Services 594,867 622,965 711,610 733,610 Other Expenses 3,135,192 2,472,973 2,669,000 2,669,000 TOTAL EXPENDITURES $3,730,059 $3,095,938 $3,380,610 $3,402,610 REVENUES Other Revenue 2,909,831 2,109,108 2,652,549 3,249,426 TOTAL REVENUES $2,909,831 $2,109,108 $2,652,549 $3,249,426 NET FUND ACTIVITY ($820,228) ($986,830) ($728,061) ($153,184) 2015 -05 -26 Agenda Packet Page 752 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 753 COMMUNITY DEVELOPMENT BLOCK GRANT Rapid ReHousing Program and HMIS Casa Nueva Vida I EMERGENCY SHELTER GRANT TOTAL R• • P Housing Services $50,000 At -Risk and Homeless Youth Svcs. $39,550 F.R.C. Emergency and Basic Services $39,312 Family Violence Treatment Program $39,000 Fair Housing Services $35,000 C.V. Solar Affordable Homes Pgm. $30,000 Norman Park Senior Center Services $30,000 KidCare Express Mobile Medical Unit $27,000 Rice Elementary Fire Hydrant Project $20,855 Therapeutic Program $20,100 Food 4 Kids Backpack Program $15,000 Home Delivered Meals for Seniors $12,000 Rotational Shelter Network $11,000 South Bay Food Program $10,000 COMMUNITY DEVELOPMENT BLOCK GRANT TOTAL $378,817 EMERGENCY SHELTER GRANT Rapid ReHousing Program and HMIS Casa Nueva Vida I EMERGENCY SHELTER GRANT TOTAL $78,998 $62,777 $141,775 GAS TAX FY 2015-16 PROPOSED Tree Trimming - Citywide $100,000 GAS TAX TOTAL $100,000 2015 -05 -26 Agenda Packet Page 754 PW Mobile Radio Replacement IFAS Upgrade Civic Center Library Auditorium Remodel Eucalyptus Park Improvements GENERAL FUND TOTAL Preserve Maintenance Enhancement GENERAL FUND $256,000 $159,316 $75,000 $18,700 $509,016 SALT CREEK SEWER BASIN DIF SALT CREEK SEWER BASIN DIF TOTAL $1,091,264 $1,091,264 GRAND TOTAL - ALL PROJECTS $2,220,872 2015 -05 -26 Agenda Packet Page 755 PROGRAM SUMMARY 2015 -05 -26 Agenda Packet Page 756 2015 -05 -26 Agenda Packet Page 757 In January 2012, the City Manager presented to the City Council the Fiscal Recovery and Progress Plan (Fiscal Years 2013 to 2017). This plan is an expansion to the Fiscal Health Plan and is intended to identify major challenges the City faces in moving from financial stability to financial sustainability and eventually to financial resiliency. The Plan identifies the major components of City finances such as General Fund revenues, Pension Liability, Debt Service and Infrastructure, provides an assessment of the status or level of risk for each component and identifies next steps to address the issues identified. The Plan uses the Continuous Improvement Visual Controls (Green, Yellow and Red) to indicate the status of each particular component. Over the past several years of a declining economy, City revenues have been reduced dramatically. As a result, the number of City staff as well as City supplies and services budgets has been decreased significantly. With the City's efforts to improve efficiencies through the Continuous Improvement Program, consolidate departments and reduce overhead, and moderately improving revenues the level of service in many key City functions have slightly improved. This report is intended to identify key functions in each department and provide a management assessment of the current level of service, including the above Continuous Improvement Visual Controls for ease of reference. The following visual categories assist the reader in determining the status of the current level of service for each function: — Objective achieved. Level of service standards are being met. Yellow — Caution. Not fully achieving level of service goals. M— High risk area. Additional funding or operational efficiencies needed. FUNCTION OVERVIEW The following section summarizes each department's key functions and their changes from January 2014 to January 2015. Program Summary Animal Care Facilitv Function Jan 2014 Jan 2015 Animal Control 2014 2015 Animal Care Services - ■ Animal Placement City Attornev Function Jan 2014 Jan 2015 Department Support Services 2014 2015 City Council, Boards and Commissions Public Outreach Claims and Insurance N/A ■ Proactive Risk Management N/A "Offensive" Litigation Defense of the City — Standard Litigation ■ Defense of the City — Specialty Litigation ■ Code Enforcement City Clerk Function Jan Jan 2014 2015 Manage Records of Legislative Actions (City Council, Housing Authority, and Public Finance ■ Authority) Prepare and Distribute Agenda Packets ■ Customer Service ■ Boards & Commissions Elections ■ Carry Out Legally Required Duties as Filing Officer Post /Publish Legally Required Notices ■ Maintain /Update Municipal Code and Council Policy Manual Public Records Act Requests Citywide Records Management Program ■ 2015 -05 -26 Agenda Packet Page 758 Development Services Department Function Jan 2014 Jan 2015 Project Reviews 2014 2015 Building Plan Review N/A ■ Building Inspection N/A ■ General Code Enforcement r ■ Affordable Housing /Grant Administration ■ ■ General Plan Implementation & Maintenance ■ Long Range Planning Reviews N/A ■ Economic Development Department Function Jan Jan Financial Compliance Reporting 2014 2015 Business Support N/A ■ Regional and Bi- National N/A ■ Collaboration r ■ Finance Department Function Jan 2014 Jan 2015 Financial Compliance Reporting 2014 ■ Payroll Services ■ ■ Accounts Payable ■ Debt Service Management r ■ Banking and Investment Services ■ Fixed Asset Management ■ Deferred Compensation ■ Tax Administration Program ■ Accounts Receivable ■ ■ Collections 4 ■ Revenue Generation /Fee Management ■ Acquisitions d N/A Budget Development ■ Financial Management Information ■ Analysis ■ Long -Term Financial Planning ■ Fire Department Function Jan 2014 Jan 2015 Dispatch 2014 ■ Turnout ■ ■ Response /Travel Time ■ 100% of Mandatory Training Completed Annually ■ 0 General Use Certificate Inspections Jan 2014 Jan 2015 Fire Company Inspection Program 2014 ■ Fire Safety Engineering Plan Reviews ■ ■ Origin and Cause of Fire Investigations ■ Purchasing ■ Contracts ■ Payroll ■ Records Management /Reports ■ Data Research Human Resources Department Function Jan 2014 Jan 2015 Recruitment & Selection 2014 ■ Classification /Compensation ■ ■ Training ■ Offer Comprehensive Benefits ■ Employee Wellness Initiative ■ Administration of Retiree Health Insurance and COBRA ■ Ensure Compliance with Employee Benefit Laws and Regulations ■ Data Processing and Maintenance Employee Online Enrollment N/A ■ Management of Tort Claims 4 N/A Administration of Insurances N/A Insurance in Contracts d N/A Disability Management ■ Occupational Health and Safety Recovery on Damages to City Property ■ Information Technology Services Function Jan Jan 2014 2015 Operations & Telecommunications ■ Programming and Application ■ Support — Custom Applications Programming and Application Support — Support of 3rd Party Software Help Desk Response Server Environment N/A ■ Network Uptime Geographic Information Systems ■ (GIS) 2015 -05 -26 Agenda Packet Page 759 Library Function Jan 2014 Jan 2015 Open Hours 2014 2015 Civic Center Branch ■ ■ South Chula Vista Branch ■ Otay Ranch Branch ■ Space ■ ■ Staff Assistance ■ ■ Collection N/A ■ Information Technology ■ Marketing and Communications Function Jan Jan Community Patrol 2014 2015 Marketing and Communications ■ Program ■ Community Engagement ■ City of Chula Vista Programs and i Services i ■ Big Picture Projects N/A ■ City Website ■ Police Department Function Jan 2014 Jan 2015 Community Patrol ■ ■ Community Engagement ■ Criminal Investigations ■ Support Operations ■ Employee Services i Police Dispatch i ■ Police Technology N/A ■ Administrative Services Public Works Function Jan 2014 Jan 2015 Roadway Maintenance ■ ■ Pothole Repair Litter and Weed Abatement ■ Graffiti Abatement ■ Traffic Striping and Signing i Street Sweeping ■ ■ Traffic Signal and Street Light Maintenance ■ Vehicle Service and Repairs Preventative Maintenance ■ Monitor MTS Services for Chula Vista Community N/A Asset Management Program (AMP) ■ Maintenance of Districts Urban Forestry ■ National Pollutant Discharge Elimination System (NPDES) Construction i Drainage Management System ■ Wastewater Management System ■ Maintain City Parks Safety and Security of Parks Design ■ Surveys ■ Building and Park Construction ■ Compliance with Waste Management Act (AB939) and Waste Diversion Act (AB341) Citywide Solid Waste Collection Services Household Hazardous Waste Disposal Services Municipal Energy & Water Conservation Upgrades Community Energy & Water Conservation Services Resource Conservation Commission Climate Change Working Group & City Operations Green Team City Building Facilities Service Requests Perform Routine Preventative Maintenance on City Building Facilities Minor CIP Projects Basic Cleaning Services Detailed Cleaning Events Special Event Set -Ups and Break - Downs Traffic Engineering Wastewater Engineering Advanced Planning 2015 -05 -26 Agenda Packet Page 760 Recreation Department Function Jan Jan 2014 2015 Provision of Recreational Swim Operation of Recreation Hours ■ Operation of Norman Park Center Provision of After - School "Critical Hours" Programming , ■ Provision of City- Sponsored Youth Leagues, Programs, and Camps Provision of City- Sponsored Adult Leagues and Programs Therapeutics Programming Aquatic Facilities Community Use ■ Arena Soccer Facilities for Community Use ■ ■ Provision of Instructional Swimming Programs ■ Provision of Adult Lap Swim Provision of Contractual Classes ■ Provision of Elementary Learn -to- Swim Programs , ■ Facility Lease Agreements at Norman ■ Park Center Facility Lease Agreements at N/A ■ Parkway Community Center Provision of Community Capacity - Building Programs Fiscal Management Policies and Procedures Information /Technology ■ Marketing and Communications Provision of Safe, Adequate, and Appropriate Recreational Equipment Community Access to Ball Fields Ball Field Rentals Mt. San Miguel Park Tournaments ■ Provision of Water Safety Programs 2015 -05 -26 Agenda Packet Page 761 ANIMAL CARE FACILITY ANIMAL CONTROL (Yellow) The ACF currently provides Animal Control services for Chula Vista as well as Lemon Grove and Imperial Beach under contract. There are two Animal Control Officers (ACO) funded for Chula Vista. The Animal Control Officers are generally able to adequately respond to calls for service (reactive) from Chula Vista residents and can be backed up as need by the ACO's assigned to Lemon Grove and Imperial Beach. Priority calls address public safety issues. This function would be considered (Green) if the ACF was able to provide "proactive" Animal Control services. This would require one additional ACO. ANIMAL CARE SERVICES The ACF currently provides Animal Care kenneling services for Chula Vista as well as Lemon Grove, Imperial Beach, and National City under contract. This service level is considered (Green). The ACF consistently meets the standards for kenneling in municipal shelters. The expansion of the cattery has significantly reduced overcrowding and improved the health and behavior of cats. ANIMAL PLACEMENT (Yellow) The ACF currently places 85% of dogs (goal area is 89 %) and 40% of cats (goal to reach 50 %) through adoptions and rescue organizations and currently does not euthanize any cats or dogs which are healthy and without behavioral issues. In addition to trying to increase the percentage of placements, another significant goal of the ACF is to reduce the number of intakes of animals in Chula Vista. Since acquiring the spay /neuter vehicle back in December 2011, the ACF has performed over 2,500 surgeries at no cost to low income families in Chula Vista and its contract cities. This function would move to Green if we could decrease intakes into the shelter. Staff has implemented new initiatives to try and reduce the number of animal intakes in Chula Vista. In 2013, City Council approved changes to City Ordinances regarding animals. Since implementing these initiatives there has been a reduction in intakes of cats; however, the intake of dogs continues to increase, which appears to be related to the depressed economy. Animal Care Facility (ACF) Gree [A.�nievetll Red [HIBk Rhk, Function Animal Control Animal Care Services Animal Placement 2015 -05 -26 Agenda Packet Page 762 CITY ATTORNEY The City Attorney's Office serves as legal counsel to the City Council, all City Boards and Commissions, City Manager, City Clerk and all City Departments. The Office's primary responsibility is to provide these clients with the legal services they need to develop and implement City policy and to deliver City services in a lawful and efficient manner. The Office also defends the City against claims and lawsuits, files claims on behalf of the City when necessary, advocates for City's interests in administrative proceedings and enforces the City's municipal code. The City Attorney's Office is staffed with nine full - attorneys, one manager, one risk management specialist, and three administrative assistants. From time to time the City Attorney also engages outside counsel to assist with major litigation or specialty law issues. Volunteer legal interns also provide valuable support. ADVISORY SERVICES (Yellow) The City Attorney's Office "Advisory Group" provides legal advice and services that involves legal research, analysis, and /or document production across a broad spectrum of legal disciplines including federal, state and local government law, corporate law, elections law, public and private contracts, land use, regulations of businesses and personal conduct, finance, economic development, labor and employment, environmental, and real estate law. The types of Advisory Group work is driven largely by the legal needs and demands of its various departments. The City Council and Boards and Commissions present additional needs and demands. The primary challenges to achieving optimum service levels for the Advisory Group are: (1) very -high work volumes, (2) work flow volatility, (3) competing demands for services within and across departments; and, (4) the complexity of many work assignments. Combined, these challenges can result in below optimum service levels including: (a) slower than optimum response times, (b) oral versus written advice (when written advice is more desirable for clarity and consistency) and (c) inadequate time and opportunities for the delivery of proactive services (e.g., training, form standardization, opinion banks, code review and updates, and "standard work" capture). With the addition of the office manager, there is now a person dedicated to developing and managing processes to improve efficiency and more effectively manage the City Attorney's Office resources. • Department Support Services (Yellow) The Advisory Group provides legal service to every City department. To provide this service effectively requires a broad spectrum of legal knowledge, training and experience, along with a working understanding of each "client" department's own workings and challenges. The type of legal work required by each department varies, of course, but typically falls within one of the following categories: Contracts: Negotiate, draft, review, interpret, and help enforce every conceivable type of contract or agreement, including: service and infrastructure agreements with other governmental agencies, franchises for the provision of utilities, solid waste disposal, telecommunications, and ambulance transport, development agreements, sales and acquisitions of real property, leases, licenses, subdivision improvement agreements, financings, public works contracts, consulting agreements, labor group MOUs and side letter agreements, waivers, indemnities and releases, affordable housing, and public private partnerships. Also draft and interpret procurement policies. Contract Standardization: The City Attorney works with staff from all departments to evaluate, update, revise and /or draft contracts to ensure that the contracts comply with current law and City policies, and that they contain adequate provisions to protect the interests of City and its residents in the event of any adverse incident or dispute. State and Local Regulations: Provide on -going legal advice regarding City (1) fees, assessments and taxes; (2) land use regulations, including general and specific plans, zoning, special use permits, development impact fees, tentative and final maps, the California Environmental Quality Act (CEQA) and related environmental and resource requirements; and (3) code provisions regulating business and individual conduct. Advice includes assistance with the preparation of any proposed 2015 -05 -26 Agenda Packet Page 763 revisions to the Municipal Code, and with interpretations of and responses to federal and state legislation. Open and Ethical Government Compliance: Provide on -going counsel on numerous legal matters relating to elections law, the Brown Act, the Public Records Act, the Political Reform Act, conflicts of interest, the noticing and conduct of City Council meetings, budget approval, the City's Ethics Code, and related City ordinances and policies. Risk Management and Public Safety: Advise on personnel and disciplinary matters; coordinate with risk management staff to manage claims and assure adequate insurance coverage. Provide on -going counsel regarding police response and enforcement activities and protocols including constitutional law updates and recommendations on policy /training modifications; assist with community outreach and proactive policing policies and programs designed to reduce crime and disorder; prepare, review, and revise ordinances and agreements for police, fire and public works regulations and services. Agenda Review: Review and advise on every agenda item for legal compliance, including conflicts of interest, CEQA and identification of special risks; prepare ordinances, resolutions and agreements, and approve all such items as to form and legality. The current overall department support service level is (Yellow). It should be noted, however, that service levels to individual departments can —and do —vary, both throughout the year (depending largely on work volumes), and from department to department (depending both upon work volumes and the availability of in -house expertise). Achieving a high level of service with greater consistency, both in times of higher and lower volume work flows, and achieving this high level of service throughout the organization, is what the Department is striving to achieve. This greater consistency is also what will be necessary in order to warrant a service level rating of (Green) for departmental support services. • City Council, Boards and Commissions (Yellow) The City Attorney attends all City Council meetings and workshops and advises the City Council on all legal matters. Staff attorneys also regularly attend meetings of the Ethics Commission, Planning Commission, Rent Review Commission, Civil Service Commission, Charter Review Commission and the Districting Commission. Advisory Group attorneys review all agendas and documents for these meetings, and are the primary staff for the Ethics, Charter Review and Districting commissions. The Advisory Group also provides legal counsel on an "as- needed" basis to all other City Boards and Commissions. This service level is (Yellow). More frequent and tailored training for these groups on Brown Act and Ethics laws, along with more formal written advice, provided in advance, on key legal issues, is necessary in order to move this service level to (Green). • Public Outreach (Yellow) The office frequently works with City departments to conduct community outreach programs to identify and respond to community issues and concerns. Direct public inquiries are also responded to by telephone and email. The City Attorney website is frequently updated to provide referrals to legal resources and information. This service level is (Yellow). City Attorney website enhancements to add content and explanations of the legal parameters that regulate City and individual conduct, and additional open government practices and policies will be necessary to move this service level to (Green). City Attorney- Advisory Services �rc.e retie. Red F—ion Department Support Services Gty Council, Boards and Public Out reach C. miens 2015 -05 -26 Agenda Packet Page 764 LITIGATION AND CODE ENFORCEMENT SERVICES (Yellow) The City Attorney's Office responsibilities include representation of the City in litigation at all levels of state and federal courts and administrative agencies, and enforcement of the City's Municipal Code. The overall service level for the Litigation Group in meeting litigation and code enforcement needs and demands is (Yellow). Administrative improvements in document and case management (including document management software), more strategic use of outside attorneys, and other resource management enhancements and /or additions that create more pro- active "risk management" time, will be necessary before this service level can be increased to (Green). Recent incorporation of Claims and Insurance management from Human Resources to the City Attorney's Office affords enhanced ability to achieve category (Green) in Proactive Risk Management. • Claims and Insurance Tort Claims: Litigation Group works with Risk Management daily providing legal advice and settlement authority consensus articulated in Municipal Code on "tort claims ", where negligence or misconduct is alleged against the City. Collaborative actions include evaluation of potential liability and damages exposure, including case facts as impacted by government, and municipal code, case law; consideration of risk transfer including but not limited to contract indemnity and insurance clauses favoring city; reporting periodically to excess insurers in compliance with city's coverage rights and obligations; determination of whether best interests of city call for efforts to settle, mediate, or litigate to facilitate best practices claim resolution on a case by case basis. When unresolved claims proceed to litigation, Risk and Litigation Group continue to coordinate case management through final resolution whether by final judgement, settlement, or dismissal. Insurance Oversight to Protect City Assets This includes maintenance of property insurance policy schedules applicable to City's real property, business property including vehicles, crime, boiler and machinery; collection of information from departments citywide to facilitate insurance policy renewal applications including liability (municipal, cyber and pollution) and property insurance including crime coverages; and assisting in recovery from third parties and their insurers responsible for damage to City property and personnel. T Contract Risk Transfer Risk Management reviews and negotiates the insurance provisions in City contracts to ensure that the requirements transfer risk in the way that most protects the City and reviews and verifies, as needed, to ensure insurance compliance. • Proactive Risk Management (Yellow) Training: The City Attorney provides periodic training to individual departments, and elected and appointed officials regarding municipal law to ensure the City's activities remain lawful and efficient, and respectful of individual rights. This also minimizes exposure to costly and time - consuming lawsuits. A more robust program in this area is under development to more proactively mitigate or eliminate City's liability exposure. • "Offensive" Litigation (Yellow) With City Council approval, the City Attorney initiates litigation against outside entities or individuals who cause harm to the City in some manner (i.e., breach of contract or failing to provide indemnity owed to City on a matter). This typically occurs only when reasonable resolution attempts by staff and the City Attorney fail to yield a satisfactory remedy, and the City Attorney has determined it is entitled to a legal remedy. The City Attorney handles standard offensive litigation in- house in order to maximize cost recovery to the City. Although funding is limited, the City Attorney utilizes outside counsel for offensive litigation when the matter involves specialized legal issues. • Defense of the City — Standard Litigation (Yellow) The City Attorney defends the City in personal injury, property damage, dangerous condition of public property, and civil rights cases using in- house "Litigation Group" staff whenever possible. The addition of a litigation Deputy in FY 2011/2012 has substantially increased the capacity of the office to handle matters in -house and to be more assertive with "terminating motions" at early 2015 -05 -26 Agenda Packet Page 765 stages of litigation. The City Attorney's goals in defensive litigation are to mitigate or eliminate risk to the City through streamlined discovery, preparing and filing terminating motions, and settling matters when it is in the City's best interest to do so. • Defense of the City— Specialty Litigation (Yellow) The City Attorney utilizes outside counsel to defend the City in litigation involving specialized legal issues. Recent reductions in funding for outside counsel results in service close to (Red). The office is working on systems to better manage these reduced resources. • Code Enforcement (Yellow) The City Attorney assists with the enforcement of City Code provisions related to building standards, zoning requirements, neighborhood preservation, and other conditions or conduct affecting public health, safety or welfare. Violations are addressed by employing the various legal enforcement tools available to the City: administrative actions, civil actions and /or criminal prosecution. 2015 -05 -26 Agenda Packet Page 766 City Attorney - Litigation and Cade Enforcement services Green Inmrere� reiwn tl c.nwnl nee 1ni¢n wwa Function w� .-- « 2015 -05 -26 Agenda Packet Page 766 CITY CLERK CITY CLERK OPERATIONS • • • Manage records of legislative actions taken by the City Council, Housing Authority, and Public Financing Authority The City Clerk's office prepares minutes and finalizes agreements, resolutions and ordinances for the City Council, Housing Authority and Public Financing Authority. The City Clerk's goal is to provide minutes to the City Council for approval within two weeks of a meeting. Within the last three years, the delay in preparation has been reduced from five months to two weeks. An upgraded software program was implemented in January 2014 to further enhance minutes preparation and publication, as well as other City Council agenda - related functions. The program also allows minutes to be posted alongside the meeting video with hyperlinks to the relevant sections of the recorded meeting, making public access more user - friendly. Prepare and Distribute Agenda Packets Agenda packets are compiled the week prior to Council Meetings. To meet state and local requirements, the City makes agenda packets available to the Mayor, Council, and public on Thursdays prior to Council Meetings. Upgraded software to process City Council agendas was implemented in January 2014. The software implementation has also allowed for posting the agenda packet alongside the meeting video with hyperlinks to backup materials for the agenda, as well as relevant sections of the recorded meeting, improving accessibility and transparency. Significant progress has been made in preparing and distributing Council agenda packets, and efforts continue to further enhance the process; greater efficiency is expected as a result of additional staff training and acclamation to the improved system, as well as efforts to continually review the process for potential improvements. Customer Service The City Clerk's office is the primary public counter for City Hall and is often the first stop for residents and other customers in need of assistance. As such, one of the primary goals of the department is to provide quality, accurate customer care. Most of the remaining duties of the department are mandated by state or local law, requiring strict deadlines to be met by specifically trained, professional staff. Staff is often pulled away from state - mandated duties to answer phones and assist customers. The department was able to hire a qualified, part -time, hourly employee to provide phone, counter, and administrative services in January 2015, which allowed this function to advance from (Yellow) to (Green) in fiscal year 2015. • Boards & Commissions (Yellow) The City Clerk's office provides support to board and commission secretaries and staff, maintains original resolutions and meeting minutes for every board and commission, assists with the appointment and onboarding of board and commission members, and oversees mandated ethics training. In fiscal year 2014, a handbook was developed and training provided by the City Clerk's office to staff who support boards and commissions. Training is expected to be provided on an annual basis in the future. Additionally, templates were made available to staff in order to standardize agendas, minutes and commonly used documents. Although great strides have been achieved in this area, City Clerk staff remains unable to provide the degree of support and process oversight needed city -wide to assist board and commission staff. The function will advance to (Green) with continuous improvement efforts to streamline processes, as well as additional staff support to free up those with subject- matter expertise to provide process oversight. (Green) The City Clerk serves as the local Elections Official. The City Clerk plans and conducts local elections, and works with the Registrar of Voters to ensure compliance with local, state, and federal laws. Additionally, the City Clerk provides relative information and assistance to all candidates and to the public. Great strides have been made to increase available election information for the public via the City's website. • Carry out legally required duties as filing officer for FPPC - regulated documents (Yellow) 2015 -05 -26 Agenda Packet Page 767 The Fair Political Practices Commission (FPPC) requires the filing officer (City Clerk) to notify filers of their mandated duty to file, review filed campaign statements and Statements of Economic Interest (Form 700), as well as other duties, including updating the City's Conflict of Interest Code. The City Clerk has used existing resources to streamline this process as much as possible. The process of notifying designated filers of their filing requirements was improved by implementing new software designed for the management of Form 700s in February 2015. The City also received approval from the Fair Policital Practices Commission to allow for online filing of Form 700s though this software system. However, funds have not yet been appropriated to allow for online filing and management of campaign statements. With certain fields being required, the software reduces the likelihood of errors and missing information on the statements and thus reduces the amount of time required to review the statements and request amendments. It also would allow statements to be made available online immediately upon filing, in a searchable, easy -to- use format for public viewing. The program would reduce staff resources currently used to manage the campaign statement notification and receipt process, as well as allow the potential for future e- filing, better facilitating the City's open and ethical governance. As ready access to information continues to grow in importance to the public, the comprehensive implementation of this software remains a high priority for the City Clerk's office. Public complaints have received related to lack of online access to campaign statements. Online statements are quickly becoming the industry standard and are now available in many jurisdictions. Therefore, this category is classified as (Yellow) and will become (Green) upon the online availability of all FPPC - regulated documents. • Post and /or publish leeally reauired notices There are a variety of notices that are required to be posted and /or published, such as notices of hearings, ordinance adoption, meeting cancellations, and board and commission term expirations. All notices are published on time and in accordance with legal mandates. • Maintain and update Municipal Code and Council Policy Manual (Yellow) As changes are made to the Municipal Code or Council Policies, the City Clerk's office makes the required changes. Most Municipal Code updates are available online within two weeks of the effective date of ordinances. This has been classified as (Yellow) due to the need to evaluate the policies contained in the Council Policy Manual as well as the need to provide a more user - friendly manual. In order to update the Council Policy Manual, a committee consisting of managers from each department would need to determine which policies are outdated. Once other functions are (Green), staff can focus on this project and develop a maintenance plan. Once complete this function will advance to (Green). Grtrn In�M1�.wa� lum�o�l m Fro IMph W�NI F�ne[fen City Clerk - Operations RECORDS MANAGEMENT • Public Records Act Requests (Yellow) The City Clerk's Office processes, tracks, and coordinates requests made under the California Public Records Act (CPRA). As of mid -April 2015, 484 requests were processed in fiscal year 2015; 86% of the requests for records were fulfilled within 10 days, 11% required an extension, and 3% of the requests are currently open and in process. This has been classified as (Yellow) because the records management program has not been updated, and city -wide records management training has not yet been provided. An updated records management program as well as training events are currently in process and will help City staff locate and provide records in a timely manner. The function will advance to (Green) if 95% of the records requested are provided within the 10 -day period; unnecessary paper copies and manual processes minimized, which may be possible through the use of workflow software; and city- wide records management standards used. 2015 -05 -26 Agenda Packet Page 768 • Citywide Records Management Program (Yellow) The Citywide Records Management program requires managing City records in accordance with state and federal laws, as well as best practices. This includes establishing and managing standard procedures related to records, training staff, regularly updating and revising the retention schedule as regulations and needs change, and purging files. This function is considered (yellow) as the existing program is extremely outdated. During fiscal year 2015, with the assistance of a records management consultant, the City Clerk's office began the process of reviewing and updating the records program to include electronic records and newer document types, as well as account for business changes since the implementation of the previous version. The update to the program is currently underway and is anticipated to be brought before the City Council for approval in the first quarter of fiscal year 2016. Additionally, city- wide training will be provided to ensure consistent application of the new procedures. An updated records management program, record - keeping training events, and adequate staff to assist with the continuous maintenance of active files and off - site records are necessary to consider this function (Green). City Clerk - Records Management Green F.U yellow _ [Caution] Hee [HighR ki Fundlon PutPc RecwdsAct Requests citywide Records Management Program 2015 -05 -26 Agenda Packet Page 769 DEVELOPMENT SERVICES DEPARTMENT The Development Services Department is comprised of five divisions, Planning, Building /Code Enforcement, Housing, Successor Agency and Engineering /Land Development, which provide direct services to property owners, developers, and the City as required for the entitlement and /or improvement of property. The services provided encompass most development related activities, including but not limited to, land use entitlements, public infrastructure, production of affordable housing, code enforcement, historic preservation, growth management, grant administration, open space, landscape planning, grading and building permits. DEVELOPMENT PLANNING, LAND DEVELOPMENT The Development Planning and Land Development Divisions are responsible for administering the City's Zoning Ordinance and processing all applications for planning entitlements and for all Engineering / Land Development Permits within the City. Performance metrics have been established to measure the level of service to the public in the following areas: o Complete Proiect Reviews within established review cycles (typically 2 -3 weeks) depending on the application type. The Development Services Department (DSD) is the central department to receive projects for review, but relies on multiple departments to review projects. The performance metric for project reviews is to complete 85% of all project plan reviews within the established due dates. Currently 54% of all project reviews are completed within the established due dates. Primary factors include inconsistent adherence to Permits Plus data entry protocols, and turn- around times not being met by all members of the multi - disciplinary team. Increased attention and improvement is needed, and will become a focus as DSD shifts to the Acella Automation software system beginning in May 2015. (Yellow) MEN& Development Services- Development Planning Ureen Yellow �caWaMl �d ,HIgh RISM� F—i- Project Re i- BUILDING DIVISION • Building Plan Review (Yellow) This Section protects the health and safety of Chula Vista residents and visitors by ensuring all building plans conform to minimum requirements of adopted Federal, State and local building codes. The primary functions of the Building Plan Review Section are: 1) to conduct plan review of each building project to confirm design conforms to minimum requirements of adopted codes, and 2) to provide applicants with clear and comprehensive direction on modifying plans to meet code requirements, and do this in the most efficient and timely manner possible. o The performance metric is to complete 85 % of oroiect reviews within established review cycles. On average 60% of building plan reviews are completed within established timelines which is lower than the target of 85 %. During FY2014, the section performed 2,951 initial reviews and rechecks of building permit plans, and in FY2015, as of March 24, 2015 has performed 2984 reviews. • Building Inspection This Section conducts several specific inspections of each permitted building project to confirm that construction is in accordance with permitted plans and construction documents. The primary functions of our Building Inspection Section include: 1) conducting periodic inspections of each building project to confirm that construction is in accordance with approved plans and 2) preparing accurate records of inspection activities and archiving permit records. 2015 -05 -26 Agenda Packet Page 770 o The performance metric is to perform 90% of building inspections within 24 hours of request. On average, 98% of the building inspections are performed the next business day which exceeds the target of 90 %. During FY2014, the section performed close to 21,500 building inspections, and in FY2015, as of March 24, 2015 has performed close to 15,000 inspections. reap. � tteunoe] Red IHyM1 ksYj Development Services- Building Division F-dind Building Flan Review Building[nspection CODE ENFORCEMENT DIVISION Code Enforcement serves to protect the health and safety of Chula Vista's citizens by identifying and addressing violations of the Chula Vista Municipal Code. Our Housing, Hotel /Motel and Mobile Home Inspection programs upgrade and make safe the City's inventory of affordable housing by requiring private reinvestment in properties that are unsafe and substandard. Our Abandoned Residential Properties program protects residential neighborhoods from becoming blighted though the lack of adequate maintenance and security of abandoned properties. General Code Enforcement Officers respond to and investigate code violation complaints. Complaints are made on a range of enforcement matters including building without a permit, illegal dwelling units, garage conversions, accumulation of refuse and garbage, substandard single - family housing conditions, abandoned construction, illegal businesses, abandon vehicle illegal signs and other code violations and blight. Notices are issued to property owners and follow - up enforcement commences if voluntary compliance is not achieved. o The performance metric is to perform 85% of reported code enforcement inspections within 48 hours of complaint. In the current fiscal year Grr lae M1i evedl Icaw�on, Wre --skl Function eighty -six percent (86 %) of initial code enforcement inspections were performed within 48 hours of receiving complaint which exceeds the target of 85 %. During FY2014, around 670 cases were opened, and in FY2015, as of March 24, 2015, 436 cases were opened. DevelopmentServices -Code Enforcement General Cade Fnforo —rui AFFORDABLE HOUSING /GRANT ADMINISTRATION The Chula Vista Housing Authority coordinates and administers the City's programs for promoting balanced housing for families of all income levels. The Housing Division staff is responsible for management of Housing programs and policies as well as grant administration of several Federal grants. The performance metrics for the Housing Division are set by State and Federal Law and are tracked through various reporting requirements on a quarterly and annual basis. Currently all grants, projects and programs are meeting or exceeding the metrics as required by either State or Federal law. Green ,uni<eed, vellaw ,rawer, aed luignru,a Function DevelopmentS —ices- Affordable Housing/Grant Administration Affordable HousingfGrant Administration LONG RANGE PLANNING The Advance Planning Section is responsible for the City's long -range planning activities involving the following major areas of emphasis: Growth Management, Historic Preservation, Multiple Species 2015 -05 -26 Agenda Packet Page 771 Conservation Program, regional planning and General Planning Maintenance and implementation. • General Plan Implementation & Maintenance Advance Planning is responsible for the periodic update, and ongoing implementation /maintenance of the City's General Plan (GP), as well as the review of projects for GP conformance and any related General Plan amendments. The GP is a state - mandated document which serves as the land use and policy guide for City decision making across a broad set of subjects including land use, environmental protection, economic development, and public facilities and services among others. Comprehensive GP updates are conducted approximately every 15 years, with our last comprehensive update approved in December 2005. Current work is focused on completing GP amendments in support of the Healthy Communities /Complete Streets initiative; supporting preparation of the University SPA Plan; wrapping up GP amendments for the Freeway Commercial area of Otay Ranch; coordinating with the County on the Village 13 project; providing support to the Arts Master Plan update; and preparing framework provisions for a Transportation Demand Management (TDM) program. • Project Reviews (Yellow) Advance Planning Staff also conducts planning project reviews. The performance metric for advance planning project reviews is to complete 85% of all project plan reviews within the established due dates. Currently 78% of all project reviews are completed within the established due dates. Development Services -Long Range Planning Green jAchhVMF vellaw rrea tn��ha,�l FUMIon General Plan Implementation &Maintenance Project Review 2015 -05 -26 Agenda Packet Page 772 ECONOMIC DEVELOPMENT DEPARTMENT Economic Development is a collaborative effort between the community, businesses and government to grow the local economic base through actions that support the expansion and creation of businesses, develop new markets for goods and services and attract top talent into the workforce. The following program summary is a proactive approach to address the increased demands and challenges facing our local businesses by allocating resources and time to enhance our outreach efforts and provide excellent customer service to new and existing businesses. In addition to the below mentioned efforts, economic development, staff actively participates on the City team involved in the Chula Vista Bayfront Project, efforts to revitalize western Chula Vista, implementation of the Eastern Urban Center, the University and Innovation District, as well as, discussions concerning the acquisition of the Olympic Training Center. BUSINESS SUPPORT (Yellow) Assisting new and established businesses to start, grow and succeed is the mission of any Economic Development Department. Our primary focus is to help our business community thrive. The most important business is the one that has already invested in the City and so a number of our programs (workshops, training, financial aid, tax rebates, employee recruitment and training) and the programs of our local partners (Chamber of Commerce, Third Avenue Village Association, South County Economic Development Council) are focused on helping Chula Vista businesses succeed, grow, expand and start new businesses. This year we are proposing new personalized services (economic development ombudsman at the front counter, staff to assist in understanding codes and procedures) for the small business community to help them get through the regulatory process, find financing and apply for tax credits. Our programs are focused on assisting new businesses to ensure they get through the regulatory process, locate strategically, find financing and are successful in their business venture. The metric of these programs is to have a 90% satisfaction rate for customers going through these processes. In order to ensure this sense of satisfaction we will be surveying our customers after service has been complete. The FREBE program, is one of our most successful programs, and averages fifteen site visits with businesses per week. REGIONAL AND BI- NATIONAL COLLABORATION (Yellow) To strengthen regional accountability and sustainable development within the region, collaboration with regional partners is essential. Businesses are more willing to invest in a region whose communities work together and understand its neighboring jurisdictions as well as its own unique assets. Chula Vista can boost its economy in both the short and long term by implementing a coordinated and collaborative approach with a specific focus on engaging neighboring communities, trade associations, regional economic development organizations and the private sector. The 2013 Business Cluster Study identified a number of organizations the City could partner with to pro - actively market the opportunities available in Chula Vista. A coordinated sustainable economic strategy can guide Chula Vista in creating a culture of stewardship, innovation and action that can lead to prosperity and future economic gains. The goal is to educate every Chula Vista resident, business, business association and all our regional partners on the opportunities available so that everyone can help market our City as the best opportunity for investment. The metric is to attend 70% to 90% of all our partners' board meetings, conferences and trade shows. Our coordinated sustainable economic strategy guides Chula Vista in creating a culture of stewardship, innovation and action that can lead to prosperity and future economic gains. Economic Development Department Green larn dj � IcoWbnl -d IHi8hl6fk} F—i- ausine S.pporr Re0 1 and BI- Nari —I Collaborarion 2015 -05 -26 Agenda Packet Page 773 FINANCE DEPARTMENT COMPTROLLER The Comptroller Division is responsible for the day to day accounting transactions of the City, preparation of the annual financial statements, debt management, annual disclosure requirements, IRS payroll tax compliance, coordination of the annual independent audit, issuing accounts payable checks and processing bi- weekly payroll. The information provided by the Comptroller Division assists City Council, City Management, and the public and other agencies so they can be informed of the City's financial standing. • Financial Compliance Reporting Function provides financial reports to the public, City Departments, and other agencies so they can be in compliance with Federal, State, and Local legal requirements. • Payroll Services Function (Yellow): processes biweekly paychecks and prepares various compensation related reports for employees and governmental agencies as required by law. While we are currently meeting deadlines this function is (Yellow) because are at risk of not meeting deadlines due to inadequate staffing coverage and continuing technical problems with the financial system. In order to shift this category into (Green), funding for a business system analyst is needed in order to optimize the use of the City's existing financial system. This will lead to significant process improvements and reliability of our systems benefitting all departments. • Accounts Payable Function : processes approximately 14,000 payment requests for all City Departments. The division is responsible for reviewing each payment request for proper authorization, documentation and available budget in accordance with City Charter Section 504. While there is room for efficiency and improvement, we are meeting all deadlines without risk. • Debt Service Management Function provides debt management services for the City which involves processing debt payments, annual disclosure reporting and information to creditors and the public on the status of City bonded indebtedness. • Banking and Investment Services Function provides cash and portfolio management services to the City in order to meet daily cash obligations and optimize return on investments. We are meeting all deadlines without risk. • Fixed Asset Management (Yellow) provide Capital Asset inventory and reporting services to City Departments so they can safeguard City Property and to accurately reflect the asset value in the financial statements. Even though the Finance Department made major strides towards accomplishing its goal of taking a full Citywide inventory of all its assets, this function is (Yellow) for this Fiscal Year. Due to budget constraints the Finance Department could only hire an hourly employee to assist in the process of taking a full Citywide inventory. Due to the restricted time allocated to the hourly employee, the Finance Department accomplished taking a full inventory of the City's Equipment Assets, but still leaving the inventory audit on Buildings, Land & Improvements pending. The duties have been transitioned to a fulltime staff on a permanent basis. • Deferred Compensation Function : provides administration and educational services to City employees informing them of tax - deferred savings programs. REVENUE & RECOVERY The Revenue & Recovery Division administers the City's revenue programs including utility taxes, sales taxes, transient occupancy taxes and business licenses taxes; directs and controls the accounting and revenue functions of the City that include bank to book 2015 -05 -26 Agenda Packet Page 774 reconciliations and assists in the preparation and monitoring of the City operating budget. • • • • Tax Administration Program : implements and enforces the tax provisions of the Chula Vista municipal code which includes Sales Tax, Business License Tax, Transient Occupancy Tax, Utility Users Tax, Real Property Transfer Tax and Residential Construction Tax. We are meeting all deadlines without risk. Accounts Receivable Function=: generates invoices, revenue reports and collection services for the City. The Accounts Receivable (A /R) function is (Red) due to continued financial system challenges. In order to move this function to (Green), the Finance Department recently hired a consultant to assess the overall financial system (accounting software) which includes A /R. An implementation plan for some of the consultant's recommendations is currently under development. As previously discussed, in order to implement all of the recommendations, the department will request funding for business system analyst services in a subsequent fiscal year. Collections Function r=: Previous reductions in staffing levels limited the Revenue & Recovery Division's ability to actively pursue city wide collections and led to a rating of (Yellow) in the past. In order to move this function into the (Green) category, the Department contracted with a full service collection agency to pursue delinquent accounts that are over 60 days delinquent. Delinquent accounts in several program areas are being regularly turned over to the collection agency, resulting in increased collection rates. Full implementation is projected by the end of calendar year 2015. Revenue Generation /Fee Management Function �: is the lead in updating the City's Master Fee Schedule. The Master Fee Schedule provides details for the various fees charged by the City for services provided to residents and customers. The function recently improved from (Yellow) as a result of shifting an analyst position from the Budget & Analysis Division to Revenue & Recovery who supports the coordination and analysis required to update City fees in a timely manner. ,� rellaw a.e I�ua��r Finance - Revenue & Recovery Function Tax Administration Accounts Receivable Collections Revenue Program Generatm/Fee Management PURCHASING The purpose of the Purchasing Division is to provide acquisition services to City staff so they can obtain products and services at best value. • Acquisitions Function (Yellow): provides procurement and related services to City Departments so they can obtain required products and services for the best value in a timely manner. This function is (Yellow) because of lengthy processes to get products /services to departments as well as limitations in ensuring the best prices for the City due to limitations in the accounting software and 50% reductions in staff over the past five years. In order to move this function into (Green), the department is including this process in the systems review project and looking at implementing Workflow, another feature of the accounting software. In addition, the purchasing process is being reviewed through the continuous improvement program. A new Finance and Purchasing Manager position was added to help address these issues. r<naw Irn�enssa} Funcdon Finance - Purchasing Acquisitions 2015 -05 -26 Agenda Packet Page 775 BUDGET AND ANALYSIS The purpose of the Budget and Analysis Division is to provide budget development, strategic planning, and analysis services to the City Council, City Manager, and departments so they can make informed decisions that: better align resources with citizen needs, improve operational efficiency and contribute to the overall financial health of the City. • Budget Development Function : is to provide budget development, reporting, and support services to the City Council, City Manager, and departments so they can make timely and accurate performance -based budgetary decisions that are aligned with Council priorities, demonstrate sound financial planning, and strengthen public accountability and trust. • Financial Management Information Function �: provides financial reports to the City Council, the City Manager, and Department Heads so they can be informed as to the current and projected financial status of the City. (i.e. quarterly fiscal status reports and monthly fiscal status reports) • Analysis Function (Yellow): is to provide fiscal and operational analysis services to the City Council, City Manager and departments so they can make informed decisions that improve operational efficiency and contribute to the overall financial health of the City. This function is (Yellow) due to the operating departments limited ability to provide analytical support as a result of the elimination of analyst positions in those departments over the past few years. This has impacted the Budget & Analysis division due to the significant increase in analysis and departmental support required over the past few years. The division worked continuously through the fiscal crisis to identify budget balancing strategies in order to keep the City budget balanced and avoid impacting the City's reserves. In addition, the division was involved in costing analysis for ongoing labor negotiations and analysis of continued high profile projects. We anticipate that this function may move into (Green) as the City's financial condition improves and the need to provide ongoing budget balancing strategies is reduced. • Long -Term Financial Planning Function involves the development of the City's Five Year Financial Forecast as well as the City's Fiscal Recovery & Progress Plan. The Division has embarked on the development of the City's Long - Term Financial Plan. In 2014, the data collection and analysis is taking place in order to create the Long -Term Financial Plan. G` iachieveni m Yellow ialnwwi P" iNigh NMO Finance - Budget & Analysis "nmm Budget Development Financial Management AnaNy is Long Term Financial Information Planning 2015 -05 -26 Agenda Packet Page 776 FIRE DEPARTMENT OPERATIONS DIVISION Emergency response can be broken down into three areas: Dispatch, Turn -out, and Response Time. Each of these areas depends on different indicators and is budgeted for separately. • Dispatch: Less than 1 minute(Yellow) This is done through a contract with San Diego Dispatch. This is the time from the 911 call received to station alerting for response. The current dispatch time averages 1 minute 14 seconds. The goal is to dispatch in less than 1 minute. During future contract negotiations with San Diego, efforts will be made to enhance service performance. • Turnout: Less than 1 minute This is the time it takes for crews to don their protective gear and respond out of the station to a call. The current turnout remains over 2 minutes according to FirstWatch and as a result we are not meeting our GMOC response standards. In FY16, Fire will continue to use FirstWatch software, as a tool, to monitor and develop recommendations to improve performance. • Response /Travel Time: Less than 5 minutes The new threshold adopted through the Fire Facility Master Plan is 5 minutes. Since then we met the 5 minute response time standard approximately 60% of the time. Implementation of the new Fire Facility Master Plan anticipates enhancing these levels to the 90th percentile. In FY16, Fire will continue to use FirstWatch software, as a tool, to monitor and develop recommendations to improve performance. Fire - Operations 6reen Welereel Yelbx Fed t'loWru Fundlen Dispatch Tuln l Respnree/Trael7me TRAINING DIVISION • 100% of mandatory training completed annually (Yellow) The Department is in the process of updating Training's organizational chart by adding a Battalion Chief and a Fire Engineer at the Training Division. This additional staff and new rank structure will create efficiency and capability to allow the Training Division to facilitate compliance for mandatory training. The Battalion Chief will focus on managing the division to include the budget and planning, while the existing Captain and new Engineer will focus on implementing the training plan. Additionally, in FY16 the Training Division will be developing a Training Program Administration manual which identifies mandatory and other required training. Fire- Training 6rcen [Mhlevea� Yell" �d inl�a,�l Funrtfcn 100%eaandatory Training Completedannualy PREVENTION DIVISION • General Use Certificate Inspections: Complete new business license inspections within one month of application receipt (Yellow) The Fire Department General Use Certificates (GUC) are provided to each new business applying for a business license. As a result of a current vacancy and other capacity issues, improvements in this category have been delayed. For FY16, Fire requested consolidating hourly Fire Prevention Aides to a new full -time position. This new position along with dedicating other staff time should help improve this function. • Fire Comoanv Insoection Program: Percent of FCIP inspections completed annuallyf�J The Fire Company Inspection Program (FCIP) inspection assignments are divided amongst geographical districts and shifts. Further, the 2015 -05 -26 Agenda Packet Page 777 assignments are provided on a quarterly basis. At this time, all FCIP inspections are tracking to be completed before the end of the calendar year. Additionally, inspections are now completed on Department iPad minis. This has helped improve efficiency in data entry. The department will seek purchasing more iPad minis in order to improve efficiency in the field to allow crews to complete inspections more efficiently. • Fire Safety Engineering Plan Reviews: Conduct plan reviews within established time frames 90% of the time - - The established time frames vary based upon the permit types (i.e. tenant improvement, residential, commercial, etc.). At this time, the reviews are being completed higher than the 901h percentile. • Prevention to perform origin and cause fire investigations for 100% of fires as defined under the policy This performance measure includes all fires being investigated by a trained Fire Investigator from the Fire Prevention Division. At this time, Prevention Fire Investigators only investigate origin and cause fire investigations as defined under the policy. The current policy limits the fires that Investigators respond to. This policy was set in place to create a manageable workload and help limit overtime. The department's goal is to have all fires be investigated by a trained Investigator. This would require additional resources. ADMINISTRATIVE DIVISION • Purchasing (Yellow) Provides procurement and related services to all Divisions of the Department, processes payments and obtains required insurance documents for all vendors as specified by the Department of Finance's insurance requirements, works with Department of Finance to ensure lowest cost while meeting all safety requirements. The Department has a Principal Management Analyst, who oversees the purchasing unit and ensures funds are spent according to budget, as well as, review and approve purchase requisitions and backup documentation. The Department also has two hourly Sr. Office Specialists who process and track all purchase order requisitions, and serve as the liaison for the department with vendors and the Finance Department. The goal of the department is to hire a full -time Sr. Fiscal Office Specialist to create more efficiencies and consistency in the process. • Contracts(Yellow) The Department is responsible for several contracts with various vendors. These include purchasing, shared services, mutual aid, automatic aid, and fees for service contracts. Contracts are now managed by the Principal Management Analyst, which means all contracts are centralized. Oversight has improved during the last year and this function should move to green in the near future. . (Green) This function processes biweekly payroll for all Divisions of the Department. A recent change which eliminated the paper system and moved us to using the fully automated "Telestaff' system has greatly improved the efficiency of the process. Additionally, the Principal Management Analyst reviews the biweekly payroll processed and any corrections are done prior to payroll being finalized. This change adds a layer of control to payroll processing to eliminate errors. • Records Management /Reports(Yellow) Management of the RMS reports to both State and Federal authorities. This function manages our day to day incident reports. This function also facilitates our regulatory and legal compliance with HIPPA and other mandates. Monthly reports are generated for compliance to GMOC and NFPA Standards relating to Operational Responses. This function also responds to public requests under the Public Information Act. Due to other responsibilities 2015 -05 -26 Agenda Packet Page 778 this function has been delayed in meeting goals and needs for the Department. • Data Research(Yellow) This function collects and analyzes department - wide data related to all lines of business. Software is used to determine the best suitable locations for future Fire Stations (Fire Facility Master Plan) and project unit placement. This function also develops best suitable locations for the phased in implementation of the new Advanced Life Support Program. Due to other responsibilities this function has been delayed in meeting goals and needs for the Department. 2015 -05 -26 Agenda Packet Page 779 HUMAN RESOURCES DEPARTMENT HUMAN RESOURCES OPERATIONS • Recruitment & Selection Recruitments are monitored from when the recruitment is assigned to the establishment of the eligibility list. The department is meeting the goal to complete recruitments in less than 60 days from assignment to analyst to establishment of an eligibility list. The service level is considered (Green) if the recruitment is completed in less than 60 days, (Yellow) if the recruitment falls between 60 to 90 days to complete, (Red) if the recruitment is over 90 days. • Classification /Compensation Classification reviews from departments are analyzed and a recommendation is completed within 60 days of receipt. This service level is considered (Red) because it is currently taking the department approximately over 90 days to complete the assignment. The service level is considered (Green) if the classification review is completed in less than 60 days, (Yellow) if the review completion falls between 60 to 90 days to complete, and (Red) if the classification review is over 90 days. Historically, classification reviews were only conducted if initiated by a Department Head. In late 2013, the City allowed for employee - initiated position classification reviews which have substantially increased the number of reviews conducted by the Human Resources Department. The number of requests increased from an average of three per year to an average of 29 in each of the last two years. The department is modifying this measurement in future years to completion within 60 days of being assigned to an analyst in order to be reflective of the increased number of requests based on procedure changes. • Training (Yellow) While we are currently providing all mandated training programs training is an area the City has fallen short due to reductions in staff and budget to support training activities. With the analysts' current workload, in -house training will continue at service level (Yellow). This function would be considered (Green) if we were able to provide staff training in the areas of supervisory training, leadership development, individual development and advanced software training. In absence of being able to provide this proactive training directly, we pass on information on free trainings offered by partner agencies. TNbw I-to" Human Resources- Operations wnuwn Remitment & Selection ClassiRcation/Compemaion Training BENEFITS • Offer Comprehensive Benefits Maintaining a comprehensive benefit program is essential to attracting and retaining well - qualified employees. The City has continually offered benefits that are at the same level, if not better, when compared to other public sectors. The City's benefit program includes: a Cafeteria Plan (medical, dental, vision, Flexible Spending Accounts), life insurance, disability insurance, Employee Assistance Program (EAP), Professional Enrichment Program, Wellness Program, CaIPERS /PARS and Unemployment (EDD). • Employee Wellness Initiative Studies have shown that a strong and healthy workforce results in greater productivity, lower health costs and increased employee satisfaction. Our employees play a role in the health of our community. By supporting wellness and healthy outcomes for our City employees we can set an example and support a healthy community. We are in our second year of our in -house initiative, "Wellness Works." Over the past year we have been able to offer a number of opportunities aimed at raising employee awareness of health concerns that they have the power to control through lifestyle changes. Initiatives this year included a Lazyman Triathlon, blood pressure and skin cancer screenings, on site flu shots, and a Weight Loss Challenge. We continue to make improvements to our fitness centers to improve employee usage of 2015 -05 -26 Agenda Packet Page 780 those facilities. The Committee continues work on their goals for the year with monthly wellness topics. The Committee will continue to develop innovative ways to get employees involved. Some of these may involve incentives that will most likely require additional resources to achieve. • Administration of Retiree Health Plan for retirees and their dependents, and COBRA continuation plan (health, dental, vision, Flexible Spending Accounts (FSA) and Employee Assistance Program EAP Retired employees are eligible to continue to participate in the City's medical insurance plans at their own cost. Retirees and other former employees and qualified dependents are also allowed to participate in certain benefit plans (health, dental, vision, flexible spending accounts and our Employee Assistance Program) again at their own cost for a period of time prescribed by law. The administration of the Retiree Health Plan was brought back in -house effective January 1, 2013. After reviewing the processes using the tools of continuous improvement it was determined that efficiencies and service levels improvements would be achieved by doing so. It was also determined that the administration of the COBRA plans is still better served by contracting with a third party administrator. • Ensure compliance with employee benefit laws and regulations To date, the City's benefit program is in compliance with federal and state laws. This includes newly approved and revised legislations affecting employee benefits such as Paid Sick Leave, Patient Protection Affordable Care Act, the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA). • Data processing and maintenance (Yellow) This includes employee payroll set -up, differential pay, benefit coverage updates, retirement set -up (PARS and CaIPERS) and fiscal /calendar year -end updates. Although payroll transactions are processed in a timely manner, we do not have resources to carry out periodic audit functions. Service level would be (Green) if we can fund IFAS programming modifications and devote staff to implement changes. • Employee Online Enrollment (Yellow) The City currently maintains a web -based system where employees are able to make their benefit elections, access and make changes to their personal information. The system currently used, "Employee Online (EO)" is a product of SunGard. In 2006 when the system was implemented EO was chosen because of its relation to IFAS, our payroll and accounting system, and initially it served our purposes. It has become increasingly more challenging to customize the system to accommodate the complexity of the unique and multiple benefit plan designs of each employee group. Every change, no matter how minor, requires hours of HR and IT staff time in addition to the amount charged by SunGard to make the changes. Additionally the time and resources spent have not always produced solutions. Three months after the close of 2015 Open Enrollment, Human Resources Technicians were still manually processing enrollments. The current system has made it extremely difficult to keep up with the increasing complexity and ever changing federal and state requirements of benefits administration. Service level will be (Green) if we can replace or upgrade online employee benefit system in order to achieve full operational excellence and to be able to provide quality customer service to our employees and our partners in benefits administration, such as the Finance and IT Departments. 2015 -05 -26 Agenda Packet Page 781 RISK MANAGEMENT • Disability Management This function serves as a liaison between injured employees, their departments, medical providers and our third party administrators for workers compensation (Tristar Risk Management), short - and long -term benefit providers to ensure that injuries are reported in compliance with applicable laws, that claims are investigated to determine whether they are work related, that communication between the department, the injured employee and the treating physician are maintained in order to identify ways of returning the employee to some type of work within their limitations so that they may remain a productive part of our workforce. In addition the Disability Management function ensures that the City follows all applicable leave laws: Family Medical Leave Act (FMLA), California Family Rights Act (CFRA), and Pregnancy Disability Leave which due to their nature are complex and convoluted. The department is meeting all requirements in this function. However, staff is aware that there are many manual processes in this area that should be reviewed for improvement. Greater efficiencies could free up staff time more aggressively carry out the recently promulgated Return to Work /Transitional Duty program. • Occupational Health and Safety (Yellow) This program ensures that the City is compliant with all CalOSHA requirements and identifies and provides education, corrective measures, personal protective equipment to prevent injuries to employees and the public. For the most part Safety staff has been able to keep up with the requirements. The area of this program that brings ■ it to a yellow status is that the City is behind in two of the major components of OSHA compliance: record keeping, and follow -up and documentation of corrective actions. Additionally, the City's Injury Illness and Prevention Plan (IIPP) that was drafted in the 1990's is in need of updating and dissemination amongst the workforce. • Recovery on Damages to City Property This function pursues restitution either from the perpetrator or their insurance when the City has suffered damages to its property or staffing resources impacts have resulted from the third party's action. Staff works with other City departments to obtain reports and estimates of the damages incurred. This program recovers approximately $200,000 per fiscal year. The funds collected reimburse DUI response staff costs and provide revenue to pay for repairs incurred. These recoveries benefit many City funds including the General Fund, the Central Garage Fund, and Open Space funds. Func[4an Human Resources - Risk Management o� 2015 -05 -26 Agenda Packet Page 782 Human Resources- Benefits Func�len � + s W 3 e e � q RISK MANAGEMENT • Disability Management This function serves as a liaison between injured employees, their departments, medical providers and our third party administrators for workers compensation (Tristar Risk Management), short - and long -term benefit providers to ensure that injuries are reported in compliance with applicable laws, that claims are investigated to determine whether they are work related, that communication between the department, the injured employee and the treating physician are maintained in order to identify ways of returning the employee to some type of work within their limitations so that they may remain a productive part of our workforce. In addition the Disability Management function ensures that the City follows all applicable leave laws: Family Medical Leave Act (FMLA), California Family Rights Act (CFRA), and Pregnancy Disability Leave which due to their nature are complex and convoluted. The department is meeting all requirements in this function. However, staff is aware that there are many manual processes in this area that should be reviewed for improvement. Greater efficiencies could free up staff time more aggressively carry out the recently promulgated Return to Work /Transitional Duty program. • Occupational Health and Safety (Yellow) This program ensures that the City is compliant with all CalOSHA requirements and identifies and provides education, corrective measures, personal protective equipment to prevent injuries to employees and the public. For the most part Safety staff has been able to keep up with the requirements. The area of this program that brings ■ it to a yellow status is that the City is behind in two of the major components of OSHA compliance: record keeping, and follow -up and documentation of corrective actions. Additionally, the City's Injury Illness and Prevention Plan (IIPP) that was drafted in the 1990's is in need of updating and dissemination amongst the workforce. • Recovery on Damages to City Property This function pursues restitution either from the perpetrator or their insurance when the City has suffered damages to its property or staffing resources impacts have resulted from the third party's action. Staff works with other City departments to obtain reports and estimates of the damages incurred. This program recovers approximately $200,000 per fiscal year. The funds collected reimburse DUI response staff costs and provide revenue to pay for repairs incurred. These recoveries benefit many City funds including the General Fund, the Central Garage Fund, and Open Space funds. Func[4an Human Resources - Risk Management o� 2015 -05 -26 Agenda Packet Page 782 City of Chula Vista Proposed Budge Iq INFORMATION TECHNOLOGY SERVICES The Information and Technology Services Department is currently undergoing a thorough top -to- bottom review at the time of this report (April 2015). Data from this review will most likely change the outcomes of many of these categories reported below. OPERATIONS & TELECOMMUNICATIONS (Yellow) Operations & Telecommunications provides planning, support and maintenance of the City's voice communication systems. This service level is considered (Yellow) based on the need to do a full scale replacement of the City's phone system. Currently the City deploys an analogue phone system with limited functionality in terms of advanced communication capabilities. Modern phone systems are digital and utilize Voice Over IP (VOIP) protocols which result in advanced communications capabilities which will be fully integrated into the City's office productivity applications (i.e Outlook) and be able to provide seamless communications connectivity for the employees whether it be by phone, video conferencing, instant messaging or other forms of communications. Staff anticipates development of a Request for Proposal in the 2nd quarter of Fiscal Year 2016 for a new system. Operations and Telecommunications also provides support to the City's main computer data back -up system. As the current system is comprised of older technology, staff has begun work on identifying a replacement system which will provide a much more robust disaster recovery capability as well as much quicker recovery speeds. By utilizing cloud technologies, should a disaster occur in Chula Vista, the City will be able to maintain continuity of operations through a virtualized computing environment which can be activated in mear minutes for all critical systems. PROGRAMMING AND APPLICATION SUPPORT — CUSTOM APPLICATIONS MM Programming and Application Support provides design, management, and support for custom and 3rd Party ( "off the shelf') software applications. The service level for programming and support of custom applications is considered (Red) based on the current workload levels for the two Sr. Programmer Analysts. As the City moves forwards on various major software purchases /upgrades, the Sr. Programmer Analysts are normally dedicated almost 100% to these major projects which means a significant number of other important projects are often not able to be completed in a timely manner. With upcoming upgrades to the City's financial system (IFAS), and other projects which require programming (open enrollment, MOU implementations, various data warehousing projects, etc), the need for skilled application support for custom applications are at an all -time high. Without this much needed support, access to valuable data in our various data management systems is not available to City staff. PROGRAMMING AND APPLICATION SUPPORT — SUPPORT OF 3RD PARTY SOFTWARE (Yellow) Programming and Application Support provides design, management, and support for 3rd party software. The service level for support of 3rd party software is considered (Yellow). It would be considered (Green) if we were able to be proactive and implement additional software features that allow users to take full advantage of the software being used. This would require additional dedication application support staff. HELP DESK RESPONSE (Yellow) Since the beginning of Fiscal Year 2015, the Department has responded to 6,588 Web Help Desk tickets. This will result in approximately 8,000 tickets for the entire fiscal year. Although great effort has been made over the last 6 months to incorporate all calls for service into the Web Help Desk, staff estimates that approximately 10% of calls to ITS don't get logged into the Web Help Desk. Conservative estimates of the total number of calls into ITS for service is probably closer to 9,000 per year. There are 4 different types of Priority calls and the overall response time for all calls. Staff strives to handle Priority 1 emergency calls within 4 hours, Priority 2 high priority calls within 1 business day, and Priority 3 medium priority within 2 days and priority 4 low priority calls within one week. The chart below details the percentage of calls handled within the allotted time period: on Time 1 87% 1 72% 1 71% 64% 2015 -05 -26 Agenda Packet Page 783 Staff is doing an extraordinary job keeping up with the number of Web Help Desk tickets, although not at the desired level of 90% on -time threshold. There are a wide variety of reasons as to why staff is unable to meet the 90% threshold. The three primary reasons are: 1) Staffing Levels — with well over 1,000 PC's, 160 servers, numerous printers, copiers and other devices which are connected to the City's network infrastructure, staff is literally jumping from one ticket to the next with little time available for proactive work. 2) Desktop Environment Out of Date — well over half of the desktops in the City need to be replaced with updated hardware and software. 3) Server Environment — Nearly 60% of the server fleet is on aging hardware well beyond the typical lifespan of a server, as well as operating on operating systems that are no longer supported by Microsoft. Staff is currently working with various vendors to try to remediate the issues stated above. SERVER ENVIRONMENT This category is (Red) as over one half of the servers which support the various software applications are Windows 2003 or older servers. This has become problematic for two reasons: 1) Microsoft will end all support for Windows Server 2003 servers in July 2015. This will mean no important security updates will be pushed out, and no bug fixes will be issued. 2) Applying new Windows Server 2012 servers into the fleet of older servers has resulted in a variety of failures due to conflicts between the versions of server software. This has significantly impacted email services to the Police Department, as well as a host of other issues throughout the City which have required significant amount of IT staff time creating work - arounds to get the software working correctly. And oftentimes, these work - arounds require constant tweaking as new issues arise. Staff is currently working with various vendors to seek solutions to these issues. DESKTOP ENVIRONMENT Nearly 60% of the 1097 desktop computers in the City still run the Windows XP operating system. Microsoft ended support for Windows XP in April of 2014. That means the majority of the City's desktop computers haven't had a security or software update to their operating systems in a year. This presents a significant security concern as any new security exploits discovered will go untreated in Windows XP. With the large amounts of confidential information that the City has, this presents a significant liability, especially if there is a data breach which is a result of a Windows XP system being compromised. The other issue that we are starting to see is that Windows XP can only run Internet Explorer 8.0. This has become problematic as many of the newer software solutions utilize Internet Explorer 10 and above as the "front end" of their software solution (what you see when you're using the program). The Finance Department is a perfect example of where we needed to do upgrades to all the computers in order to be able to run the latest versions of Springbrook. The Police Department was also forced to upgrade several computers throughout the Department as their backgrounding software would only work on the latest versions of Internet Explorer. This is a trend that will be accelerating as we upgrade software throughout the City. NETWORK UPTIME (Unknown) The City does not currently have adequate network monitoring software to make a proper determination of the network uptime. GEOGRAPHIC INFORMATION SYSTEMS (GIS) The GIS Section provides GIS data and mapping support to all Departments. We currently have 2 full time GIS Specialists who assist in maintaining our GIS databases. GIS also houses numerous interns throughout the year which contribute to a wide variety of GIS Although GIS meets or exceeds current staff expectations, we are collaborating with agencies in the South Bay to possibly provide GIS support and find more efficient ways to exchange and maintain our GIS database. Sharing GIS data and resources between agencies will result in a better product for staff and the general public. Information Technology Services 1�� gal 2015 -05 -26 Agenda Packet Page 784 LIBRARY ACCESS • Open Hours • The Library needs to be open in order to provide books and materials, trained and friendly assistance, and a safe community gathering place for study, meeting and community outreach. Service level goals are based on national norms, patterns of local public use, and input from residents and elected officials. (Green) = 7 days a week, 4 evenings a week, with at least 52 hours of service per week per branch (Yellow) = 6 days, 2 or 3 evenings, with between 52 and 40 hours of service per week per branch (Red) = 5 days, 40 hours or less per outlet Civic Center Branch open hours Em South Chula Vista Branch open hours Otay Ranch Branch open hours (Yellow) I v Staff Assistance Im The Library is not a self- service institution. Trained staff is needed to assist, guide, direct, interface with computers, present literacy and early learning experiences, train and evaluate volunteers, provide class visits, and perform outreach and represent the City to community groups and organizations. Population served per FTE staff: Statewide mean = 4,121 population served per FTE staff (Source: California State Library 2012 -13 data, California LibraryStatistics .com) (Green) =4,121 (statewide mean) (Yellow) = 5,151 (exceeds mean by 25 %) (Red) = 6,182 (exceeds mean by 50 %) Chula Vista Public Library System= 6,363 FTE @ Chula Vista Public Library = 40.35 • Space= Library - Access Adequate space per person is needed to allow µemrea� access to the basics of tables and chairs for study, shelving to house and manage an adequate collection of materials, space for necessary "a "' computers, opportunities for study, meetings and a a� gathering places, community information display and distribution, children's story times, activities F —im and early learning support. z = Square foot per person threshold is based on Growth Management Oversight Commission (GMOC) standards and library best practices. (Green) = 0.5 to 0.7 square foot per capita (Yellow) = 0.4 to 0.5 per capita (Red) = below 0.4 per capita Chula Vista Public Library System = 0.38 Im There is also a County Library Branch (Bonita) on City owned land that services the residents in the area. If the square footage (10,400) and population of the service area (13,882) of the Bonita Branch of San Diego County Library were included the result would still be below the standard at 0.402 (Yellow). COLLECTION JE • Materials spending per capita Statewide mean = $4.02 (Source: California State Library 2012 -13 data, California LibraryStatistics .com) (Green) _ $4.02 (statewide mean) (Yellow) _ $3.02 (75% of mean) (Red) _ $2.01 (50% of mean) Chula Vista Public Library System= $0.78 0 2015 -05 -26 Agenda Packet Page 785 Library - Collection Green SPChkreEl Yrl1m.r ([au 'onl `d _R lu4ph aisYl Func ivn Collection INFORMATION TECHNOLOGY (Yellow) The Library's goal is to provide up -to -date technology that responds to the needs of the residents. • Computers per 1,000 population Statewide mean = 0.81 (Source: California State Library 2012 -13 data, California LibraryStatistics .com) (Green) = 0.81 (statewide mean) (Yellow) = 0.47 (40th percentile) (Red) = 0.36 (25th percentile) Chula Vista Public Library System= 0.47 (Yellow) Library- Information Technology IGNIanI Iled IHllnweq F—d- I nformation Technology 2015 -05 -26 Agenda Packet Page 786 MARKETING AND COMMUNICATIONS MARKETING AND COMMUNICATIONS PROGRAM (Yellow) The City of Chula Vista implements a proactive, informative, creative, and innovative marketing and communications program. The Office of Communications coordinates this program which supports the wide - ranging initiatives and activities for the City of Chula Vista. A Marketing and Communications Plan guides these efforts, and elements of the plan also are included and tracked as part of the City's Strategic Plan. Key elements of this plan include implementation of a branding /marketing program, community engagement efforts, strategic alliances, Web and social media programs, media relations, and process improvements for internal and external customers. Progress has been made in the last three years, so this is at (Yellow) status. As more elements are implemented, this will move to (Green) status. COMMUNITY ENGAGEMENT (Yellow) The City of Chula Vista implements a proactive community engagement, outreach, and participation program. These efforts include involving residents in the decision - making process, providing information to the public, holding public meetings, updating and enhancing our Web site, expanding our social media program, and implementing innovative solutions to communicating with and getting information from residents and stakeholders. This effort involves enhancing strategic alliances with South Bay and regional community stakeholders, representatives of agencies and organizations, marketing, and communications, print and broadcast media representatives, and business leaders. Progress has been made in the last three years, but remains (Yellow) as elements continue to be developed. CITY OF CHULA VISTA PROGRAMS AND SERVICES (Yellow) The Office of Communications provides strategic and creative communications, marketing, graphic design, and web services for numerous programs and services. The team assists staff in their efforts to promote City services, provide public education, engage communities, build media awareness, and enhance economic development in Chula Vista. Marketing, communications, and graphics support will be provided to: • Provide communications, marketing, branding, and graphic design support for Economic Development work plan • Develop and implement Explore Chula Vista program to promote existing City assets and attractions. • Retain quality local special events and pursue larger -scale public events to attract local and regional audiences • Collaborate with other stakeholders to enhance tourism in the City of Chula Vista • Further streamline and enhance special events and film production process to attract more events to the City • Continue to promote the Library, Parks and Recreation, CLEAN program, Public Safety, and other City programs • Expand involvement with communications professionals through the South County Alliance of Marketing Professionals (SCAMP) • Continue expanding social media efforts to benefit all City programs There have been a number of successes to report in the last three years. A new city website was developed and launched. Programs have been developed, social media has greatly expanded and collaborations have increased. This will move from (Yellow) to (Green) as more elements are implemented. MARKETING BIG PICTURE PROJECTS The City of Chula Vista is developing a number of projects that will transform the City. Each of these projects requires communications and marketing efforts to be implemented in collaboration with other agencies, business and community leaders, organizations, residents, and other stakeholders. The Office of Communications provides strategic and creative communications and graphic design support for the Chula Vista Bayfront, University and Innovation Center, Millenia Project, Third Avenue revitalization, and other projects. A strong collaboration has been established with the Port of San Diego and other entities to advance the Bayfront Master Plan. 2015 -05 -26 Agenda Packet Page 787 CITY WEBSITE The new City website was launched in February 2015. The website promotes and markets City services, programs, and events as well as Chula Vista's assets and attractions. City staff has been trained on the new content management system to update web pages so the most current information is available to the public. The new website promotes access to public broadcast of council meetings, social media, community engagement, public participation, and two -way communication. The new website is accessible with mobile devices, provides easy access to translation function and it is ADA compliant. The new website also serves as a tool to market the City. ia`,!` Q r Marketing and Communications d 2015 -05 -26 Agenda Packet Page 788 POLICE DEPARTMENT COMMUNITY PATROL (Yellow) Responding to citizen's calls for service in a timely manner and providing quality police service are primary functions of the Community Patrol Division. In February 2015, Growth Management Oversight Committee (GMOC) response time thresholds were amended to be consistent with industry standards for the Police Department to 1) Respond to 81% of the Priority I emergency calls within 7 minutes 30 seconds and maintain average response time of 6 minutes; and 2) Respond to all Priority 11 urgency calls within 12 minutes. In 2012, the Department commissioned a staffing study from Matrix Consulting Group which recommended that the department should maintain approximately 40% average proactive patrol time. Through various changes to the Patrol Division via scheduling and various management changes, the Community Patrol Division has been able to increase the availability of proactive time from a low of 21% to nearly 34 %. Although this is an overall increase in proactive time, the availability of proactive time during the peak patrol hours (8AM — 8PM) remains low. With five Community Service Officer (CSO) positions restored in the Patrol Division, the Department was able to redirect low priority calls for service to these civilian positions and free up officers to focus on high priority calls for service. Additionally, the Department implemented a new Security Alarm Ordinance effective July 1, 2014, which reduced the number of false security alarms throughout the City, thereby freeing up officers to respond to higher priority calls for service. Based on the first nine months of the Ordinance in place, the number of false alarms calls has decreased by 9 %, when compared to the prior nine months. With 13 total sworn vacancies, the Department has placed a high priority on hiring new officers. Beyond the current vacancies, the Department is expecting a sizeable number of retirements throughout 2015. The Department also expects a number of vacancies in the sworn classifications due to employees accepting positions in various law enforcement agencies in San Diego County. This could further exacerbate the staffing issues if the Department is unable to recruit and hire officers in a timely manner (A discussion regarding hiring is mentioned in "Employee Services "). The overall function is (Yellow) considering the operational changes that are being implemented and resources are already budgeted for this function. The overall function for this division is (Yellow) mainly due to anticipated revenue decreases in Police grants that fund personnel. Funding for one sergeant and one agent assigned to the Southwest Border Ant -Money Laundering Alliance will end in December 2015, and funding for one officer assigned to the Promise Neighborhood program will end in December 2017. Additionally, one Police Community Relations Specialist is partially funded by the Justice Assistance Grant (JAG), and one sergeant and two officers are funded by the State Law Enforcement Supplemental Fund ( SLESF). Because JAG funds have been decreasing each year and SLESF is not guaranteed funding, the Police Department is recommending to restore these positions in the General Fund and utilize grant funding for one -time equipment expenditures rather than ongoing personnel costs. While sworn officer vacancies and a high volume of employee retirements continue as challenges, Chula Vista remains among the safest cities in the country with populations over 200,000. According to FBI Uniform Crime Statistics, the total overall crime rate in Chula Vista decreased by 13% in 2014 when compared to 2013. • Community Engagement The Police Department conducts a variety of community outreach functions in order to ensure that the Police Department is responsive to the needs of our diverse community, and that important information is relayed to residents regarding crime and disorder issues throughout the community. This function is (Green), although it should be noted that the Department does not currently conduct any formalized community -wide survey to ascertain what the citizens feel are important issues in terms of crime and disorder in their neighborhoods. This type of survey would help the Department set overarching goals to address these issues. 2015 -05 -26 Agenda Packet Page 789 Police - Community Patrol Green � Ydlmv ,tautio�, rota (nlgn nkkl Function Community Patrol Lam muniry Engagement CRIMINAL INVESTIGATIONS (Yellow) The Criminal Investigations Division is comprised of General and Special Operations detectives charged with investigating various felony and misdemeanor crime cases and providing detailed crime reports to the San Diego District Attorney's Office (or other judicial authority) for prosecution. The overall function is (Yellow) due to high caseloads, increased expectations from stakeholders (Community members and prosecutors), as well as position reductions in detective staffing over the last eight years. In 2007, five of the ten property crimes detectives were eliminated and one family protection unit detective was frozen. The reductions have negatively impacted the division's ability to investigate both lower level felony and misdemeanor cases. A majority of property crimes are only proactively investigated if they become series related and evidence of suspect identity is discovered. Furthermore, the implementation of the body worn camera program will require additional time for investigations to review standard arrest cases. Staff reductions in the Investigations Division in 2010 eliminated a Special Operations Lieutenant, and two Narcotics Enforcement Team positions thus reducing the Department's effectiveness in dealing with narcotic related complaints received by the community. In 2013, the Special Operations Division eliminated another five detectives in regional task forces thereby reducing our presence and influence to investigate organized and cross border related crimes. The reductions in the Special Operations task force positions have reduced the Department's ability to work large -scale conspiracy cases, thus reducing asset forfeiture funding. Recent changes in the Attorney General's asset forfeiture guidelines will continue to have a negative impact on the department's forfeiture funds. The second phase of the Matrix study was completed in 2013, and there were various recommendations for staffing changes in the Criminal Investigations Division. These changes have not been implemented yet, but will be considered in the Department's strategic plan. Police -Criminal Investigations [em tool Yellow w 1[aW4onl fi �d JHieh Ri%kl F-lan Criminal lnyes[igations SUPPORT OPERATIONS (Yellow) The Support Operations Division provides operational support to both the Patrol Operations and Criminal Investigations divisions. The Support Operations Division consists of the Professional Standards Unit, City Jail, Forensic and Property /Evidence Units, Police Technology and Police Dispatch. These units all provide direct support to the field officers and detectives. The overall function is (Yellow) due to the ongoing recruitment challenges in Employee Services and the critical staffing and equipment needs in Police Dispatch; both of which are high priority functions in the Police Department. • Employee Services (Yellow) The Professional Standards Unit is responsible for personnel recruiting, background investigations and hiring for the Police Department. The Unit is also responsible for training and internal affairs investigations. This function is currently (Yellow). Currently there are 13 vacancies (as of April 7, 2015) in sworn staff which has a significant effect on the Department's ability to achieve proactive patrol time targets. Although the Department has taken steps to increase the number of staff in Professional Standards, the workload involved in successfully recruiting qualified candidates, and conduct thorough and detailed background investigations, impact the unit's ability to meet hiring goals. The unit plans to implement a new internal affairs /professional standards software system which will significantly improve operational efficiencies. 2015 -05 -26 Agenda Packet Page 790 Additionally, the Professional Standards Unit is responsible for coordinating mandatory qualifications and training for the Department. Funding for training remains an issue for the Department, especially in light of reduced funding from the State of California. Since police work is a high liability function, training is a critical component to the overall risk reduction for the City. Further erosion of training funds will mean reduced training, and potentially more liability claims against the City. This function will positively impact Community Patrol if addressed with adequate resources. Police Dispatch The Police Dispatch unit provides critical communication between officers in the field, and citizens reporting emergencies to the Department. The unit is currently facing some of the same staffing issues that Community Patrol does. There are several retirements anticipated within the next year and the hiring process for Dispatchers is much like a Police Recruit, with long training cycles after hire. Therefore, when a vacancy occurs, it could take up to one year before a new hire is capable to work as a Dispatcher. Current staffing levels also offer no flexibility in terms of being able to absorb leave use by dispatchers. Each time leave is used, the vacancy must be filled by overtime. This is putting additional stress on dispatchers as they work longer hours, and have less down time from an already stressful job. There are also several information technology related issues related to the Computer Aided Dispatch (CAD) system that continues to cause operational issues for the dispatchers. The Department considers these IT issues as critical as they affect the ability of dispatchers to operate the CAD system which is used to track each incident that is called into the Police Department. Much of this information is critical to officer safety. Police Technology ME The Department remains resolute for the need a manager level position to oversee the department's security and technology needs. The Department is facing multiple high -level technology projects that will require the skill and experience of a manager who thoroughly understands law enforcement technology needs. These projects include replacement of the aging Mobile Data Computer fleet, implementation of the new federally mandated Advanced Authentication protocol, replacement and upgrades of various police related software programs, as well as future replacements of the Computer Aided Dispatch (CAD) system and new radio system. As a result of budget reductions from prior years, the Department has not been able to replace its aging desktop computers. The Department has over 100 computers running on Microsoft XP, which is obsolete and no longer supported or updated by Microsoft. This represents a tremendous security risk to the Department's secure network which cannot be remedied without upgrading these computers to a modern operating system. Currently the Department's network is extremely vulnerable to attack by hackers. Police- Support Operations Gre In�nlered� � eNiow � i[an,lunF FFd Ixieh Fisk] FunFiion Support OpeWbris Employee SewkN Police Dispatch Ppl- Te(hit0lop, ADMINISTRATIVE SERVICES (Yellow) The Administrative Services Division provides workload support to all three divisions in the Police Department. This includes Fiscal Operations, Police Support Services and Research and Analysis. The Administrative Services Division is working with Public Works to address concerns over its aging fleet. With the elimination of the vehicle replacement fund from prior year budget cuts, the Department increased the replacement mileage of its fleet from 80,000 miles to 100,000+ miles. The Department has replaced over 40 vehicles using non - General Fund monies but struggles to identify funding to replace its aging vehicle fleet. The Police Department is currently implementing its strategic plan (also known as SP14), which aligns with 2015 -05 -26 Agenda Packet Page 791 the City's Strategic Plan and gives the Police Department a solid resource to make quality informed decisions about deployment and implementation of three focused initiatives: People, Partnership & Processes. SP14 will identify action plans of opportunities and challenges that the Department will face in the next five years, including recruiting, succession planning, personnel deployment, community partnerships and technology /equipment needs. Police - Adminstrative Services Green µariereel Yellow ra Inas�++V Fundion AdminisrrMive Semites 2015 -05 -26 Agenda Packet Page 792 PUBLIC WORKS STREETS SECTION City crews provide routine maintenance within the roadway and respond to service requests related to failures including pavement, curbs & gutters, sidewalks, traffic signs, fences and railings. They also respond to requests for removal of graffiti, litter, and other debris in the Public Right of Way. These requests are prioritized by considering health, safety, and protection of property. In addition, an emphasis is being placed on the aesthetics on major thoroughfares at the City entry ways. Current staffing generally provides for adequate response to high priority requests such as health and safety issues. Tasks are almost exclusively in reaction to complaints, as opposed to being proactive. Thereby leaving City crews limited time to proactively perform preventative maintenance or preservation strategies. We currently utilize the Roadway Management System (RMS) to spread the limited funding in the most effective way so as to minimize overall deterioration of the roadway assets. To determine the level of service of the various section responsibilities, staff is tracking the following performance measures: Goal: 95% of priority 1 "work orders" are completed within two working days. Currently we are achieving that turn around target 88% of the time; Goal: 95% of priority 2 "work orders" are completed 10 working days of notification. • Roadway Maintenance In fiscal years prior to the economic slowdown of the 2000's, the City used General Fund dollars to support its in -house roadway maintenance crews. The City currently relies on Gas Tax Funds to pay for its' in -house crews. The Federal and State Gas tax rates have not kept pace with rising costs for roadway preservation and restoration needs. In fact, the rates have remained unchanged for over 22 years. In this same period, more vehicle miles are being travelled while revenues decrease due to alternate fuels and improved vehicle gas mileage. If the City were to invest the necessary funds, it would position itself to avoid more expensive street repairs in future years, minimizing the need to undertake costly reconstruction projects for streets that had not been properly maintained. In the February 2013 Council Workshop, City staff recommended a target Level of Service in terms of the Pavement Condition Index (PCI). Specifically, the recommendation embraced by Council, directs staff to target average PCI's of 80 for Arterials, 75 for collectors and 70 for residential streets. It is estimated that an annual investment of $11 to $12M dollars (not including inflation) would achieve and sustain these targets over the next 30 years. Considering the current annual investment, we see a $5 to $6 million dollar gap in order to bring this function to a Green level of service. Roadway preservation and restoration efforts are almost exclusively performed by outside contractors through our competitive bidding procurement processes. City crews spend most of their time responding to work requests such as the following: • Pothole Repair (Yellow) Routine pavement preservation and repairs made by our in -house Street Maintenance Crews include pothole repairs, asphalt crack filling and minor street reconstruction to help to prevent further damage to street surfaces. Currently, the City has met 75% of the pothole backlog. • Litter and Weed Abatement ME City crews are no longer scheduled to perform these services on a routine basis. Constituent requests for litter and /or weed abatement are completed within 2 weeks of receiving the request as this activity is the lowest priority. We currently promote volunteerism through the Buff -a -Block program. Currently, volunteers assist with small portions of our street system and have minimal impact on the needs. Providing additional resources would bring this service level up. • Graffiti Abatement The City currently employs one fulltime employee and two hourly employees who responds to service requests related to public infrastructure only. Increasing the graffiti budget by $85,000 will allow 2015 -05 -26 Agenda Packet Page 793 • • staff to utilize dedicated fulltime staff to assist with graffiti removal efforts on public infrastructure and resume with the eradication of graffiti from private property as well. Increased funding will support and achieve a (Yellow) level within this function. This program currently promotes the Buff -a -Block program which uses volunteers to abate and reduce graffiti in the community. A total of eight individual community groups have entered the program. These groups have taken responsibility for approximately 10% of the City's neighborhoods. Goal: 95% of graffiti would be removed within 48 hours of notification on public property. Currently 85% of reported graffiti is removed within 48 hours of notification (the average is 3 work days). Rapid removal of graffiti is one of the best deterrents to repeat offenses and not removing graffiti within 24 hours is inconsistent with the City's graffiti removal ordinance. Providing additional resources would bring this service level up. Traffic Striping and Signing (Yellow) City crews maintain street markings and traffic control signs for motorists, pedestrians, and residents so they can travel on clearly marked streets. Crews are assigned to assist with repainting stop legends, limit lines, school crosswalks, curbs, etc. but are only able to repaint 75% of the inventory on a bi- annual basis with on a goal of repainting 100% bi- annually. Street Sign work requests are prioritized by risk assessment. Regulatory and Warning signs are priority 1 and Informational signs are ranked as 2 or 3 as appropriate. Goal: 100% of legends would be repainted bi- annually. Adding a 2 person crew to this Section, with an annual cost of $200,000, would bring this area to a (Green) Service Level. Street Sweeping (Yellow) The City is required by National Pollutant Discharge Elimination System ( NPDES) regulations to implement a program to sweep improved (possessing a curb and gutter) municipal roads, streets, highways, and parking facilities. The current degree of street sweeping is the bare minimum to keep the City in compliance. Anything less than the current frequency could move the category to (Red.) Increasing the street sweeping contract from $150,000 to $300,000 would allow the sweeping frequency to increase from once every two months to once a month for residential streets that generate moderate volumes of trash and /or debris, to achieve greater compliance with NPDES standards. . Public Works - Streets in� �ev.m tE tEE 2 TRAFFIC SIGNALS AND STREET LIGHTS SECTION • Traffic Signal and Street Light Maintenance City crews respond to service requests related to failures in the signals and lights. These requests are prioritized by considering health, safety, and protection of property. Traffic Device Technicians are responsible for the following related to the City's traffic control devices: Emergency Calls, Service Requests, Preventive Maintenance, Dig Alert and Inspections. Technicians assist the City's Construction Inspections Section by doing electrical inspections on streetlights and traffic signals located in the public right -of -way (ROW). Dig Alert mark -outs are necessary for any excavation in the ROW which requires Technicians to mark all underground conduits related to the City's extensive streetlight and traffic signal system. Dig Alert notifications occur daily by email. Traffic Devices Maintained: Traffic Signals Nearly 300 signalized intersections are dutifully maintained by three City technicians, many more than the FHWA recommendation of 40 -60 2015 -05 -26 Agenda Packet Page 794 intersections per technician. Key components that make the job challenging are: o Communications (essential for timing, coordination and monitoring) include; twisted - pair copper (leased AT &T lines), fiber optic lines and wireless radios. o Controllers (essentially microprocessors), Detection; inductive loops and video detection systems, replacement of LED modules for vehicle and pedestrian signal and Accessible Pedestrian Systems. o Preventive Maintenance includes annual testing of the conflict monitor (210 module), verifying planned operation of timing parameters and all controller modules, cleaning inside controller cabinets and identifying long term maintenance concerns. Maintenance repairs that can not be made on the spot are typically contracted out using operating budget or by CIP Roadway Lighting The City has approximately 9,000 roadway lights nearly all which have been converted to energy efficient LEDs. Although this has eliminated the need for frequent lamp replacement, there is still the burden of repairing and replacing failures, photo electric controls, maintaining miles of underground conduit and cables and knock downs. Since 2002, the average number of Citywide knock downs is 15 caused mainly by vehicle accident. Know down replacements are typically contracted out and are completed within 30 -60 days from date of incident. Other devices maintained include: Advanced Crosswalk Warning; In- pavement and Mast Arm Mounted Flashers and Hard -wired and Slar Powered Flashing Beacons. The number of these devices increase as requested by Traffic Engineering for pedestrian safety. In addition, Condition Assessments are current and Preventative Maintenance Schedules on track. Current staffing levels are adequate to provide sufficient service in this function. G_ Yellow Red l4hel F, tl n Public Works -Traffic Sign @ls and Street Lights Traffic Signal and Street Light Maintenance FLEET MANAGEMENT SECTION (Yellow) • Vehicle Service and Repairs (Yellow) Current funding for service and repair of City vehicles and equipment is not keeping pace with the demand. Mechanic productivity is above industry standards and fleet availability is close to the goal of 95 %. However, vehicles are not being replaced on the recommended schedule due to limited funds. As vehicles and equipment age beyond their recommended replacement date, the service and repair needs increase significantly in order to keep them in service. The service requests are prioritized considering health and safety first. Other City services are often impacted due to delays in completing needed service. The section reviewed its operation and determined that discontinuing a contract with NAPA for parts procurement and bringing inventory control in house would be more efficient for mechanics and represent cost savings. An in -house fleet inventory control specialist position was approved by council in the previous fiscal year. Staff has been added now, so improvement will be seen in FY16. Adding an additional Equipment Mechanic would bring this service to a (Green) level. • Preventative Maintenance (Yellow) Preventative Maintenance (PM) Programs utilize a systematic approach of scheduling fleet maintenance to ensure that manufacturers' recommended service intervals are met and repairs are made before "major" mechanical failures occur. Prior to staff reductions, PM's were performed on sedans and light -duty trucks every 3,000 miles and 85% were performed on schedule, which is an Industry Standard. PM's are now completed every 5,000 miles and only 72% are completed on schedule. Proactive PM Programs result in a more dependable fleet with extended equipment life, 2015 -05 -26 Agenda Packet Page 795 City of Chula Vista Proposed Budget lower repair costs (by avoiding costly repairs), less vehicle downtime, warranty tracking, and helps ensure operators' safety. The section implemented continuous improvement tools to increase the percentage of scheduled vehicle PM inspections that are completed each month. Staff identified a number of countermeasures to reduce or remove non -value added steps, reducing the PM process from 32 to 15 steps and saving an estimated 8.4 mechanic hours per day. Additionally, an equipment mechanic position was approved by council in the previous fiscal year.. Combined the improvements bring this service to a (Yellow) level. Goal: 85% of PM's was anticipated to be completed on schedule with the addition of staff. We did get up to 80% on schedule. Unfortunately a mechanic is out with a Workers' Comp injury, which makes it difficult to achieve this goal. Public Works - Fleet Management �e (x16�WSMi F�netkn While 5e ice and Repairs Prexer tANe Maintenance OPERATIONS ADMINISTRATION • Asset Management Program (AMP) ZM The Operations Administration Section is responsible for developing and administering the Citywide AMP. . Additional resources are being used through a consultant contract to inventory the assets, evaluate their condition, and prioritize and determine the investment needs required to sustain their use. The City worked with a citizen advisory committee last year to better vet gaps and priorities. The next fiscal year the City will conduct additional outreach and education. ■ Drainage Management System $1,100,00 Asset Management Program 0 Wastewater Management System $150,000 (Sewer Funds) $0 Roadway Management Systems $250,000 Parks Management System $150,000 ■ Drainage Management System $450,000 Fleet Management System $0 Buildings Management System $150,000 General Government Management System $0 Open Space Management System (District Funds) /Urban Forestry Management System $100,000 Public Works -Operations Administration Function Asset Management Program iAMPI OPEN SPACE AND URBAN FORESTRY SECTION • Maintain the Ooen Space Districts (OSDs) and Community Facilities Districts(CFDs) This section provides stewardship over the OSDs and the CFDs. City staff administers contracts with private companies to perform this work. The City has also contracted with CEO, a non - profit organization to augment these services at well below market rates. This section is adequately staffed to perform these services at the appropriate level. • Urban Forestry " This section is responsible for monitoring the overall health of street trees. Industry standard sets the ideal schedule for periodic tree trimming as follows: Palms need to be trimmed every 1 or 2 years. Pine trees and broad - leaved trees are recommended to be trimmed every 3- years . Based on an inventory of about 27,500 trees and using 3 years as the trimming cycle, the annual goal is 200 trees. Due to multi -year budget constraints, we are currently backlogged by over 13,000 trees. A one -time expenditure of $1,600,000 would bring this area to a (Green) level. An additional $350,000 over the current budget allocation of $150,000 would stop the current backlog from increasing this year. A one -time cost of $100,000 will be spent in FY16 as part of a 2015 -05 -26 Agenda Packet Page 796 Capital Improvement Project to remove approximately 250 dead and /or dying trees. crepe In�n�e�eal �a �X�gM1rFrk] runamn Public Works - Open Space and Urban Forestry Wint —re. aF Di=icu ❑ — wr—,v INSPECTIONS SERVICES • National Pollutant Discharee Elimination Svstem NPDES This section manages the City's participation in the NPDES, which includes program planning, enforcement, education, and compliance. This section is adequately staffed to perform these services at the appropriate level. • Construction This section provides inspection, contract and permit administration services to private developments as well as City projects to enforce compliance with City standards and requirements. This section's activities are vital to insure public infrastructure is constructed as designed and to the expected level of quality. Current staffing levels are adequate to provide sufficient service in this section. Public Works -I nspections Services Ia.X� at yellow Icauamt rue (xlg�NsMi Fnnrtfon NPDES constmction STORM WATER AND WASTEWATER COLLECTIONS • Drainage Management System The current Drainage Management System (DMS) is currently unsustainable. Inventories and Condition Assessments are incomplete and outdated (Corrugated Metal Pipe Assessment -10 years old). Preventative Maintenance is very limited as funding falls well short of the needs. Current activities have primarily been limited to a reactive approach when failure occurs. Corrugated Metal Pipe and Reinforced Concrete Pipe Replacement and Rehab efforts are unfunded and Drainage Basins are deteriorating due to excess vegetation and erosion of channels. Funds ($60,000) are also needed to increase contractual services for channel cleaning, NPDES inspections, etc. in non -CFD (funded) areas. The NPDES Permit requires regular inspection and cleaning of trash and debris from the City's storm drainage systems, including open channels, culverts, detention basins, etc. • Wastewater Management System This function is appropriately staffed and funding is sustainable. The Inventory and Condition Assessments are current on all facilities. Preventative Maintenance is being completed as scheduled. A study for potential adjustment to Sewer Fees is underway. Current system capacity meets or exceeds demand. Public Works - Storm Water and Wastewater Collections Green Umleveal Yeller � tCSnlml rnnrgw� Draina ge Man gemen t5 tem Wa ater Mana ge menl System PARKS SECTION (Yellow) • Maintain City Parks (Yellow) City crews provide grounds keeping and maintenance services Monday through Friday each week for the 56 neighborhood and community parks including contracted out areas such as Connoley, Sherwood, and the Holiday Estates Parks and the medians along Main Street, Broadway, J Street and Orange Avenue.. A total of $150,000 is 2015 -05 -26 Agenda Packet Page 797 • needed in park materials to purchase fertilizer (533 acres), plant material and also to complete repairs associated with playground equipment in order to maintain a (Yellow) level. As additional new park acreage is added such as the Orange Park and Stylus and Montecito Parks in new development; additional staff, and supplies and services will need to be allocated to prevent park maintenance from deteriorating to a (Red) condition. Safety and Security of Parks (Yellow) The Park Ranger program was dismantled in the early days of the fiscal crisis, but in the current fiscal year, a Park Ranger Supervisor position was approved by council in the previous fiscal year. The services provided by the Ranger Program are accomplished by part -time hourly employees focusing on very limited weekend services only. Services include: opening and closing of the parks, posting rented gazebos, cleaning and restocking restrooms, and trash receptacle management. The Park Ranger program also monitors all City sports fields for non - permitted sport activity that may cause damage to City fields. In addition, City Council adopted an Ordinance authorizing the Park Rangers to issue infraction citations. A new approach is envisioned to bring this area to a (Green) service level. The Public Works department is working with the Police Department to develop a Park Volunteer Program to assist with park monitoring services, picnic shelter and reservation systems, and park security duties. A full time Park Ranger Supervisor has been hired to oversee this volunteer program and to provide enforcement. In addition, this position oversees the weekend hourly Ranger staff and provides enforcement in the parks for 3 weekdays. Public Works - Parks r .e, �. tn�r+�n funeWon Maintain Cty Parks Safety and Sew rely of Parks PROJECT DELIVERY • Design The Design Section is responsible for the preparation and development of construction documents, specifications, and right -of -way acquisition necessary to successfully build the various infrastructure rehabilitation projects within the City of Chula Vista. The section provides the City with invaluable in -house expertise with respect to its ability to design and manage both large and small Capital Improvement Projects (CIP). This section is adequately staffed at the appropriate level to provide these services and would be adjusted to meet program needs if necessary. • Surveys The Survey Section is responsible for providing professional in -house expertise in construction staking, engineering design surveys for Capital Improvement Projects, and design related survey information for roadways, sewer lines or other public improvements. The section also provides property surveys for City - related projects. This section is adequately staffed at the appropriate level to provide these services and would be adjusted to meet program needs if necessary. rend. Public Works - Project Delivery 0esip sx-y' REAL PROPERTY SECTION Real Property provides comprehensive real property services to the City, development community, and general public. The Real Property Management program provides professional right -of -way and real property services including right -of -way acquisition and relocation; property management and disposition; and property document research, interpretation, and creation. Current staffing levels are adequate to provide sufficient service in this function. 2015 -05 -26 Agenda Packet Page 798 • Building and Park Construction (B & PC) The Building and Park Construction Section manages, monitors, and completes all new facility and park construction projects for the City, and ensures that all programming issues are addressed during the design /development and construction drawing phases of these projects. In addition, the Inspectors of the B & PC section ensure quality control and contract compliance in the areas of facilities and landscape construction. Current staffing levels are adequate to provide sufficient service in this function. G- V-1 a Intdiwsq Public Works - Real Property F-1- 9uilding and Park Corntru ion ENVIRONMENTAL SERVICES SECTION • • Compliance with AB 939 Waste Management Act and AB 341 Waste Diversion Environmental Services currently provides solid waste management program planning, development, implementation and ongoing operations designed to meet the waste reduction and recycling goals of keeping the City of Chula Vista in compliance with AB 939, the California Waste Management Act. (5.3 Ibs per person, per day or less disposed — Chula Vista is at 3.5 Ibs per person, per day). Chula Vista is also in compliance with AB 341. The Clean Business program is continuing to grow with continued collaboration with the Storm Water and Conservation Sections. Citywide Solid Waste Collection Services This section has oversight of the City's franchise agreement with Republic Services, who provides some of the services and program enhancements that assist the City with compliance with AB 939. There are service standards and performance indicators built into the contract, which Allied Waste has met and continues to meet. Current staffing levels are adequate to provide sufficient service in this function. • Household Hazardous Waste Disposal Services Environmental Services also has oversight of the South Bay Regional Household Hazardous Waste Drop -off Facility at the Public Works Facility. The contract for service includes turnkey operation of the drop -off facility for residential and commercial small quantity generators hazardous waste, and door -to -door pickup for select individuals. These services are provided for National City, Imperial Beach, the County of San Diego, and Chula Vista. The current contract has been in place for two years and Clean Harbors, Inc. has met all the performance indicators. Current staffing levels are adequate to provide sufficient service in this function. 6- V-1 Yellow Red Iwranw,sl Public Works - Environmental Services raaKtror� Compliance with Waste Cityv6de Solid Waste Houshold Hazardous Waste Management and Waste Collection Services Disposal Services 0, -.1.n CONSERVATION SECTION • Municipal Energy & Water Conservation Upgrades (Yellow) The Public Work's Conservation Section assists various departments in identifying, financing, and implementing capital projects to lower energy and water use and to reduce related municipal utility costs. Over the last year, the Conservation Section facilitated an indoor LED lighting pilot project, an adaptive street light control test bed, and the transition to a web -based utility management system to better track and analyze the 600+ municipal energy accounts. However, the City continues to struggle with securing funds for indoor and outdoor water use efficiency upgrades. This problem will become more urgent over the next 6 months as new statewide emergency drought orders become mandatory. 2015 -05 -26 Agenda Packet Page 799 • Community Energy & Water Conservation Services Through its two core community programs — Free Resource & Energy Business Evaluations (FREBE) and Home Upgrade, Carbon Downgrade, the Conservation Section provides no -cost energy and water conservation services to businesses and residents. Over the last year, over 600 community members have benefited from these services and received incentives, loans, or audits to help lower their monthly utility costs. In addition, the Conservation Section supports local Property Assessed Clean Energy (PACE) programs in providing new financing for residents and businesses interested in energy and water upgrades. In collaboration with Environmental Services and Storm Water, Conservation staff continues to administer the Chula Vista CLEAN Business Program, which recruited 50 additional businesses into the program over the last year. Finally, the Conservation Section continued to manage the City's Local Government Partnership with San Diego Gas & Electric and the California Public Utilities Commission, which supports additional community energy efficiency programs via numerous City departments. Current staffing levels are adequate to provide sufficient service in this function. • Resource Conservation Commission Climate Change Working Group & City Operations Green Team The Conservation Section administers the Resource Conservation Commission to help guide and to provide an additional public forum for the City's environmental programs and policies. Over the last year, staff has supported monthly meetings for the Resource Conservation Commission. In addition, the Conservation Section reconvened a Climate Change Working Group to help develop recommendations for updating the City's Climate Action Plan. Finally, the Conservation Section, in coordination with Environmental Services and Storm Water, coordinates the implementation of the newly- adopted City Operations Sustainability Plan with the assistance of the multi - departmental Green Team. Current staffing levels are adequate to provide sufficient service in this function. Puhlic Works - Conservation (rW��eved, Yellow � Red Iu�E^a'�1 nxrctioe Muncipa[ Energy &Water Community Energy &Water Resource Conservation Conservation upgrades Conservation Services commission &Climate Change working Gmup CONSTRUCTION AND REPAIR SECTION ME • City Building Facilities Service Requests (Yellow) City crews respond to service requests related to City facility repairs. These requests are prioritized by considering health, safety, and protection of property. Current staffing generally provides for adequate response to health and safety issues. Tasks are almost exclusively in reaction to complaints. A Construction & Repair Supervisor position was added in the previous year to move this function towards (Green). • Perform Routine Preventative Maintenance on City Building Facilities Im City crews have minimal available time to proactively perform preventative maintenance or preservation strategies. We are developing the Buildings Management System (BMS) to enable us to assess the condition of our building assets, establish preventative maintenance schedules and determine appropriate sinking fund investments for future repairs /replacement. Additional resources are needed to move towards (Yellow) in this function in order to maintain the reliability and viability of all electrical, HVAC, plumbing systems, etc. • Minor CI Protects This program has not been funded over the last few years, which continues to create a backlog associated with painting, stucco and drywall, electrical, plumbing, HVAC, and roofing repairs. A list of the Minor CIP Projects is developed each year by coordination with City departments. $200,000 annually is needed to address a $3.4 million citywide Priority 1 critical construction and repair needs. A project of a minor nature is generally approximately $7,000 - $10,000 per improvement. 2015 -05 -26 Agenda Packet Page 800 Public Works - Construction and Repair c.e laanered7 Yell [Cwloe] Wed {ugnsFry Function City Building Facilities Service Perfarm Routine Pi- entaiirve Mina, CIP Projects Requests Mainle nonce on City Building Facilil les CUSTODIAL SERVICES SECTION (Yellow) • Basic Cleaning Services (Yellow) The Custodial staff is responsible to ensure that the City facilities are clean and ready for public use each day. This generally includes the routine cleaning and sanitizing of restrooms, vacuuming and sweeping floors, and emptying trash receptacles. A checklist of basic cleaning tasks is logged daily at each facility. Goal: 95% of basic cleaning services would be completed daily. The Recreation Centers hours of operation were increased within the last fiscal year. The custodial forces are not able to provide the basic cleaning services for these additional hours without an additional $75,000 to augment the baseline budget. This increase would return the basic cleaning service level to (Green). • Detailed Cleaning Events (Yellow) Buffing floors, washing windows, dusting blinds and fixtures, and washing walls are examples of this service. City staff is not resourced to provide adequate service levels for this function. • Special Event set -ups and break -downs (Yellow) Custodial staff is often called upon to assist in setting up and breaking down for special events. This can involve transporting and setting up audio /visual equipment, chairs and tables, etc. The section is not staffed to provide this service and when called upon, must forgo performing basic cleaning in another facility in order to provide for the special event. An annual investment of $73,000 would be needed to move this service area to (Green) including the Basic Cleaning Services function. Public Works - Custodial Services Green IA i*W3 renew Irsnbnl In�ae� FnnNnn Basic Cleaning Services oetailedcleaningEmna Special Ewrt S-Ups and Break -Downs INFRASTRUCTURE PLANNING (Yellow) • Traffic Engineering (Yellow) The Traffic Engineering Section endeavors to establish a public traffic safety service by providing a communication link between the citizens of Chula Vista and City staff, along with the City Council via the Safety Commission. Through this dialogue inquiries regarding traffic safety and other related issues are addressed. In addition, the section works to develop a safe and efficient transportation network, and for compliance to the Growth Management Oversight Commission (GMOC) threshold standards, and monitors the functioning of that network on a daily basis. Traffic Engineering also performs design services for the City with respect to transportation improvements such as traffic signals, improved signing, arterial monitoring services, and other important traffic related projects. The Traffic Engineering section performs field surveys of high accident locations and locations which experience congestion and initiates remedial traffic improvements, investigates all requests for traffic improvements, and takes any necessary corrective actions. Additionally, the Traffic Section is responsible for grant application preparation and submittals. Stretch goals for this year are: • Complete more traffic counts citywide • Complete more speed limit studies • Complete more traffic operation investigations • Expand Adaptive Traffic Signal System • Prepare an Annual Traffic Safety Report • Pursue transportation program grant funds • Synchronize signal timing on key arterials • Update Bicycle & Pedestrian Master Plan It is anticipated that all of the goals may not be met due to staffing levels and funding. 2015 -05 -26 Agenda Packet Page 801 • Wastewater Engineering The Wastewater Engineering section manages the City's sewer system so that Chula Vista residents receive dependable and affordable wastewater treatment and disposal services. This section is adequately staffed at the appropriate level to provide these services and would be adjusted to meet program needs if necessary. • Advanced Planning Advanced Planning manages asset inventories, flood plain inquiries, master plans, pavement management system and special studies to identify current and future deficiencies in the City's sewer, pavement, storm drain, wastewater disposal, and street systems to ensure that the City's infrastructure will adequately serve the community now and in the future. This section also prepares most of the Engineering grant submittal applications throughout the year and is adequately staffed at the appropriate level to provide these services and would be adjusted to meet program needs if necessary. Use Iwi,W] renew w {nighrtski Fencgon Public Wnrks- Infrastructure Planning T-ft En®—li g WarteK r Ergingering Advanced Planning 2015 -05 -26 Agenda Packet Page 802 RECREATION DEPARTMENT Four key functions in the Recreation Department that provide a management assessment of the current levels of service are Recreation Programs and Services, Operations, Customer Service, and Resource Management. These key functions establish what constitutes a quality experience, operational and cost recovery goals, marketing and communications standards for users to access programs and services. RECREATION PROGRAMS AND SERVICES Recreation programs and services provided by the City shall be based on the conceptual foundations of play, recreation, and leisure; essential interests and needs; community opportunities; City's mission and goals; and experiences desirable for participants. Recreation programs and services can be self- directed, leader - directed, facilitated, fee -based or cooperative in nature. SELF - DIRECTED PROGRAMS AND SERVICES provide for recreation opportunities where there is only general supervision, including outdoor basketball courts, trails, tennis courts, and open multipurpose ball fields, game rooms and playgrounds as well as some pool and center based activities. These self- directed areas, facilities, and equipment should be provided to give an opportunity for individuals and groups to participate without leadership, under only general supervision. • Provision of Recreational Swim (Yellow) Recreational swimming provides time when the pools are open to the general public for fee -based and General Fund supported, unstructured, leisure swimming. Target participants are families, elementary school aged youth and teens. The status of Recreational Swim is (Yellow) as a result of outside funding received and additional funding allocations for the budget this FY 2014 -2015 to provide part -time Lifeguards. Recreational swimming is offered during the six weeks of summer, two weeks of spring, and two weeks of fall for 2.5 hours /day, 3 days /week. The status could move to (Green) with increasing total hours of operation and secured outside funding. The status could move to (Red) if significant maintenance items listed on the Citywide Critical Needs List are not addressed and pool operational hours are affected. • Operation of Recreation Centers Facility operations at City Recreation Centers (Parkway Center /Gym, Loma Verde Center, Otay Center, Veterans Center, Heritage Center, Salt Creek Center, and Montevalle Center) include provision of structured and drop -in activities and programs, provision of meeting space for community groups and organizations, oversight of adjoining outdoor amenities, and fitness centers at several locations, including the provision of associated custodial and building maintenance services and utilities funding. Status is (Green), as center operations have expanded back to five to seven days per week. It has been noted by both Recreation and Public Works Departments that custodial and building maintenance services were not increased commensurate with the hours of operation. This is addressed in the Public Works Department under custodial services section. • Operation of Norman Park Senior Center (Yellow) Facility operations at Norman Park Senior Center (NPSC) encompass a variety of services including: the provision of meeting rooms to clubs primarily serving seniors; drop -in as well as organized and structured classes, programs, special events and activities; a place for leisurely socializing; and a membership based fitness center. Norman Park is open five days per week during hours desired by the senior community. The center offers more than 60 programs, classes and activities each month geared toward serving the older adult and senior population. In addition, NPSC leases space upstairs to several nonprofit community service providers including Meals -on- Wheels, Home Start Inc., the Parkinson's Foundation, Southern Caregivers Resource Center. The Department also partners with ElderLaw to provide meeting space for seniors to receive free legal advice and AARP for meeting or event space to offer Drivers Safety Classes and Car -Fit events. In addition to recreation programs and classes, Norman Park Center also offers services such as information and referral, assistance completing low income housing paperwork, the Commission on Aging, bereavement support groups, income tax assistance, the RUOK program, volunteer opportunities, partnerships with a number of senior focused organizations such as Scripps, So- CAN, AIS and HHSA to provide health talks, fraud /scam awareness prevention healthier living 2015 -05 -26 Agenda Packet Page 803 workshops as well as partner events such as Dance for Your Health. The Community Development Block Grant program funds 29 of the center's 53 hours of operation per week (Monday- Thursday, 12 -5pm and Friday 8am -5pm). However CDBG funds continue to decrease while the demands of the center continue to be a high priority. This center site is staff intensive, yet there is no full time Recreation Supervisor, thus the status has moved from Green to Yellow. As the aging population grows, the need for GF and full time staff support for this site are a priority to the department and commissions. If CDBG or GF funding is not continued this could move back to (Red). • Provision of After - School "Critical Hours" Programming Generally, fee -free, after- school programming is offered at all recreation centers and through the mobile recreation program at park location sites in underserved areas without a recreation center. The program is designed to provide a "safe haven" for youth ages 5 -16 during the two to three hours immediately following the close of the school day until parental supervision resumes later in the afternoon /early evening. Activities may be formal (organized) or informal (drop -in) and hours vary by center and school schedules. Currently serving over 350 youth per day at our various program sites. Critical hours for an older age group (16 -25) typically take place later in the evening and on weekends at Parkway Gymnasium and Loma Verde Center and serve 30 -40 teens and young adults daily. Status is (Green) based on recreation centers now being open at least five days per week with extended hours. Recreation- Self- Directed Programs and Services sag IoaN..Ye{ M fled {N�gnrg,kl F—ft. Prom- r Operation of Operators of Norman P— mimofpfter- RevearionalSwim Recreation Centers Park Center Sdml Xrifital 4— " Programming LEADER - DIRECTED PROGRAMS AND SERVICES provide recreation opportunities where participant involvement is directed by a leader, including instructional skills classes, such as sports, camps, art, dance and creative and performing arts for children. • Provision of City- Sponsored Youth Leagues, Programs, and Camps (Yellow) Organized, fee - based, coed recreational leagues for all skill levels for ages 6 -16. Basketball and soccer sports leagues are coached by volunteers from the community. Practices are generally held during the week with games scheduled on Saturdays according to geographic considerations at two City facilities, Parkway Gym (West) and Salt Creek (East). A variety of specialty sport camps are offered on a fee -basis at a variety of recreation centers throughout the year as well. Five centers offered at least one week of camp during the winter quarter and many offered a variety of camps throughout the various intersession breaks. The status could change to (Green) through additional funding resources to provide at least one camp at each center /gym site location. • Provision of City Sponsored Adult Leagues and Programs (Yellow) Organized, fee - based, coed and men's recreational leagues for all skill levels for adults. Softball and basketball leagues are held four times per year, and are facilitated by part -time staff and officiated by contract officials. Softball leagues play at Mt San Miguel Park, Montevalle Park, and Veteran's Park. Basketball leagues play at Parkway Gym, Salt Creek Gym, and Montevalle Gym. The Golf league is held one season per year during the spring /summer and is held at Chula Vista Municipal Golf Course, Bonita Golf Club, Eastlake Country Club, and Salt Creek Golf Club. The status could change to (Green) through additional resources to provide a full time Recreation Supervisor to increase and develop additional programs and services. • Therapeutics Programming (Yellow) This status has shifted from Red to Yellow through Community Development Block Grant funding the entire Therapeutic Recreation Program in FY 2014- 15. This program features classes, events, activities and services specifically designed for individuals with physical and /or developmental disabilities. 2015 -05 -26 Agenda Packet Page 804 Activities offered include parent's night out, dance, fitness, enrichment, and sport classes as well as social events. This year's goal is to serve 100 individuals with physical or developmental disabilities. The department also continues to provide inclusion services, ADA mandated accommodations for requesting individuals, via an assessment and support provided through a Certified Therapeutic Recreation Specialist (CTRS). Expansion of Therapeutics Programming would move this to (Green). If neither CDBG funding nor GF funding is secured for FY16, this would move back to (Red). Recreation- Leader - Directed Programs a {cw�._ n nee {nigh NSRi FunNnn Pm Ni0n or Ciry- Spomored PrwWm or City- Sponsored 7herapeu&s Programming youth Leagues, Programs, and adu4 Leaguesand Program limps FACILITATED PROGRAMS AND SERVICES provide recreation opportunities where individuals and groups of individuals are encouraged and assisted to operate independently of the agency, including rental opportunities. • • Aquatic Facilities for Community Use Both City pools are revenue - producing facilities through use by private local swim clubs, SUHSD for swimming and water polo teams, and individuals or groups for private functions. This was changed from a (Yellow) status to (Green) due to cost changes to make rentals more desirable to users and individuals. The demand for pool space, at least times and seasons, outweighs availability. The status could move to (Red) if significant maintenance items listed on the Citywide Critical Needs List are not addressed and pool operational hours are affected. Arena Soccer Facilities for Community Use Im The soccer arena is a high demand, high use sports facility by the community for rentals and parties. The soccer arena historically realizes more than 130 rentals per year, and has also been utilized by the City- sponsored Youth Indoor Soccer League in the spring for practices and games for the Eastern Division. The soccer arena was closed in August 2014. The site is in need of having the turf and scoreboard replaced to continue its future use. This project was placed on the unfunded proposals Capital Improvement list (item 102150, Speed Soccer Arena $145,000), but has since been approved to utilize TUT funds for replacement costs. An Adult Arena Soccer league will once again be introduced and will generate an additional $30,000 in revenue annually with the turf and scoreboard replacement. µarre..al regw Fra 1x��9 RWAUgn Recreation • Facilitated Programs and Services Aquatic Facilities For Community Use Arena Soccer Facilities for Community Use FEE BASED PROGRAMS AND SERVICES provide recreational opportunities for a fee, as not all programs and services can be offered without charge. To offer some programs and services for a fee can greatly augment the recreational opportunities. Services for a fee may include the rental of aquatic facilities, outdoor soccer arena, and recreation centers. Programs for a fee also include instruction, lap swim and contractual classes • Provision of Instructional Swimming Programs Instructional swimming programs currently include the following: Parent & Tot (parent and child age 6 months -3 years), Toddler Aquatics (children ages 2- 3), Tiny Tot (children ages 4 -5), Learn -to -Swim (children age 6 -17), Swim Clinic (children age 6 -17), Adult Swimming Lessons (ages 18 +), and Private Lessons (ages 4 +). Being able to provide instructional swimming programs nine months per year to all ages on a fee basis keeps this at a (Green) status. The status could move to (Yellow or Red) if significant maintenance items listed on the Citywide Critical Needs List are not addressed and pool operational hours are affected. 2015 -05 -26 Agenda Packet Page 805 • • Provision of Adult Lap Swim (Yellow) Adult Lap Swimming provides time when the pools are open to adult's age 18 +, primarily serving lap swimmers, water - walkers and other water -based aerobic activities, paid for by fees and the General Fund. The status of Adult Lap Swimming is (Yellow) as a result of budget reductions that reduced the program by 50 %, to Monday through Friday hours during the morning and noon time at one pool, instead of both pools. Fees do not cover the full cost. This year we were able to continue to provide an additional two days /week at Parkway Pool from March -June as a result of a generous donation. As this was funded by a donation and could potentially not be funded in the future, we cannot consider the status as Green. Status could move to (Green) with the addition of outside funding for part -time resources (Lifeguards) to provide activities at both pools on a year -round basis. The status could move to (Red) if significant maintenance items listed on the Citywide Critical Needs List are not addressed and pool operational hours are affected. Provision of Contractual Classes The Recreation Department utilizes 60 -80 independent contractors yearly as contractual instructors of a wide variety of 1,200 recreational classes, including, but not limited to: preschool activities, dance, creative and performing arts, martial arts, fitness, sports, personal enrichment and others. These contractual programs are offered at all recreation facilities as well as at various "satellite" parks and locations throughout the city and involve 10,000 participants annually. Although (Green), opportunities remain for further expansion of these programs, particularly in "satellite" locations. yellow ud (xlghk'N Recreation - Fee Based Programs and Services Provision of lnstru d-1 Provisim otAduh Lap Swim Provision of Comracwal Swimmirg zagrams cusses COOPERATIVE PROGRAMMING provides recreational opportunities through coordination with other organizations in the community to provide maximum coverage with a minimum of duplication, as well as to reduce interagency competition for the time of an individual. The desirability of total community programming is in order to avoid unnecessary waste of effort and finances and to match the type and level of programming to community needs. Cooperative programming includes use of Memoranda of Understanding (MOU), Memoranda of Agreement (MOA), partnering, or leasing space available at facility sites (ie Norman Park Senior Center upstairs office spaces). • Provision of Elementary Learn -to -Swim Programs These are group swimming lessons provided primarily to 4th grade classes from schools in the Chula Vista Elementary School District. They are currently funded through a grant from the Kaiser Foundation. The status of this program could switch to (Yellow) or (Red) if grant funding and /or donations are reduced or eliminated. The status could also move to (Red) if significant maintenance items listed on the Citywide Critical Needs List and pool operational hours are affected. • Facility Lease Aereements at Norman Park Center In an effort to assist seniors in accessing needed programs and services, Norman Park Center leases the offices located on its 2nd floor to several non- profit agencies that provide additional services to seniors such as Parkinson's Foundation, Southern Caregivers, HomeStart Inc. and Meals on Wheels. • Facility Lease Agreements at Parkway Community Center= With the expansion of the Chula Vista Learning Community Charter School to include a separate middle school in facilities on Park Way, we have leased out recreation facilities at the Parkway Community Center and Gymnasium for the school to operate physical education, dance, and health classes throughout the week. Howard Gardener Charter School also utilizes Parkway Gym for physical education programs facilitated by Recreation staff. 2015 -05 -26 Agenda Packet Page 806 • Provision of Community Capacity - Building Programs (Yellow) The Recreation Department has been providing programming space at Loma Verde and Norman Park Centers to HHSA /AIS for Healthier Living with Chronic Conditions classes geared toward older adults and seniors. This is a peer lead program administered and funded by HHSA /AIS. The program involves peer led classes encouraging and discussing goal setting for increased health of those with chronic conditions such as arthritis, diabetes, obesity, depression, health disease and much more. Additionally, Norman Park Senior Center partners • with Southwestern College's Continuing Education Department to offer a Senior Strength and Exercise class and So -CAN to offer the yearly "Dance For Your Health" event. These free programs provide added visibility and enhanced services to our scope of programming as well as help to further promote our centers to the public. Recreation - Cooperative Programming OPERATIONS • Fiscal Management (Yellow) Recreation use fees and charges as a revenue source to supplement General Fund appropriations. The department does not currently have a specific mandated cost recovery or specific percentages per recreation programs and services, other than a guidance of a 30% to 70% cost recovery. Fees and charges involve updating the City's Master Fee Schedule as well as policies currently in place. The Department is currently well under way with a cost recovery resource allocation, pricing strategy and revenue enhancement study which is anticipated to ■ be completed by June 2015. This category could move to = once the study is implemented. The study will provide following components: 1. Create a cost recovery resource allocation, pricing strategy and revenue enhancement study In order for the department to maintain cost recovery /subsidy levels that are appropriate based on our community's characteristics, values, and available funding. 2. Develop a pricing methodology policy so that staff is trained and understands the philosophy behind it and how to communicate the price to the users. Policies and Procedures (Yellow) The department has begun to update forms, applications and operational procedures to help facilitate the implementation of policies, how tasks are to be completed, when, and by whom. In coordination with the City Attorney's Office, the department has reviewed cooperative programming Memoranda of Understanding (MOU), Memoranda of Agreement (MOA), leases, permits and partnership opportunities. Public Works staff and Recreation staff reviewed and revised Chapter 2.66 of the Municipal Code (Park and Facilities Rules) updating language to be consistent with current operations and department structures. For the department to be united and to communicate the same message to the community, it needs to have policies and procedures in place that are consistent, which will ultimately move this to a (Green) status. v<I�gv I�unm, i�ld��ta F��_ Recreation- Operations Fiscal M-ap meat Polkies and Procedures 1411J►,l to] LTA 14 *14 ftVA Is]: • Information /Technology =1 The Recreation Department offered all full- time staff an additional day of training on the reporting and marketing features offered through ActiveNet. 2015 -05 -26 Agenda Packet Page 807 This tool continues to help provide consistent communication and increased customer service to our patrons. The status has changed to (Green) based on the improvements made. However, the status can revert to (yellow) without resources to continue training staff and customers on the features of ActiveNet as well as upgrades to technology when needed to ensure good communication to both internal and external customers. The department continues to evaluate computers and software programs needed to be updated at center sites. • Marketing and Communications (Yellow) Continue to work on developing a marketing plan to promote our services. The Recreation Department worked with the Office of Communications to develop a logo for the department to brand the programs and services. Peach Jar (a fee based paperless system) is a electronic marketing tool that the local elementary school system is utilizing. Twenty -six schools in the Chula Vista Elementary School District (CVESD) district are enrolled in this marketing program and 20 schools are not. The department is able to market programs and services to the public through press releases, Nixle, Website and Facebook. The Department continues to seek out additional marketing opportunities that are not fee based and can further reach our community who may not have easy access to computers. All full time staff received one day training on the reporting and marketing features of ActiveNet. Creating a marketing plan within the department should help move this towards a (Green) status. Recreation- Customer Service lam 1) ,xigh RlsR) Function �n4prmatiOn�TeChsq�pyy Marketing OnU COmmUniW[iOxS ■ RESOURCE MANAGEMENT /COMMUNITY ENGAGEMENT /PARTNERSHIPS /SPONSORS • Provision of Safe, Adequate, and Appropriate Recreational Equipment and Facilities (Yellow) Due to no replacement funds being budgeted, durable recreational equipment and supplies used by the public have not been replaced for a number of years. This equipment is showing predictable signs of wear and tear; some items are able to be repaired, rather than being replaced. Equipment that is failing and is non - repairable is being removed from service, having a negative impact on programs with an end result of less revenue. A list of items that includes costs for replacement should be made for future long term planning. Some examples of durable equipment include tables and chairs, fitness center equipment, pool covers, and adjustable /retractable basketball goals. The establishment of a regularly scheduled, preventative maintenance program as well as the addition of an equipment replacement fee component to current and future fees and charges will enable the status to remain (Green) once implemented. Although the status of this broad - scope category would not likely be downgraded to (Red) as a whole, if significant maintenance items listed on the Citywide Critical Needs List are not addressed, individual programs in specialty categories within this report certainly would be downgraded either from (Green) to (Yellow) or from (Yellow) to (Red). • Community Access to Ball Fields (Yellow) The Youth Sports Council (YSC), a group of 22 separate, youth- serving, non - profit organizations that provide organized sports activities in the community, provides coordination among, and support for, organized youth sports activities in the City. YSC organizations utilize 62 designated athletic fields in 32 City parks for 750 teams serving 9,800 youngsters annually. Fields are also utilized to conduct City- sponsored programs and activities, and are rented by private individuals and organizations for athletic activities. The combination of total number of fields, reduced maintenance on fields, and high demand /use has resulted in a shortage of fields available for use; select fields are pulled from available inventory and 2015 -05 -26 Agenda Packet Page 808 are now closed to recover from overuse. A regular field maintenance schedule needs to be developed for all fields to rest at some point. Closing more fields due to overuse, the lack of funding to maintain them, ultimately could shift this to (Red). We need to continue to collaborate with the YSC and Public Works Department on an operational plan to put in place for routine and continuous maintenance needs and funding renovations to continue to sustain the City's facilities and amenities. • Ball Field Rentals (Yellow) The YSC is currently allocated a majority of the City's fields for organized sport use. This does not leave a lot of options for additional ball fields' access for rent. When available, fields are utilized to conduct City- sponsored programs and activities, and are rented by private individuals and organizations for athletic activities. Veteran's Softball field, Veteran's Multi- purpose field, and Salt Creek North Multi- purpose field were removed from the Youth Sports Council inventory of allocated fields to provide fields for the community use and /or City programming to increase field rentals. The combination of total number of fields, reduced maintenance on fields, and high demand /use has resulted in a shortage of fields available for use; fields are pulled from available inventory and are now closed to recover from overuse. Closing more fields due to overuse, and lack of funding to maintain them, ultimately could shift this to (Red). • Mt. San Miguel Park Tournaments Mt. San Miguel Park is a tournament destination site for the City. In 2014, the department secured thirteen multi -day tournaments for both softball and baseball requests. In addition, there were twenty -three single -day tournaments held for both youth and adults. Lutheran High School and High Tech High Chula Vista rent Mt San Miguel softball fields each spring season for their CIF practices and games. These multi -day sports tournaments have provided direct revenue to the department as well as indirect benefit through TOT, sales tax, etc. • Provision of Water Safety Programs (Yellow) This encompasses a variety of programs and activities including Safety Certification Classes (Lifeguarding, Water Safety Instructor, Instructor Training Classes), outreach efforts such as the Aquatic Safety Awareness Program (ASAP) and the Water Awareness in Residential Neighborhoods (WARN) program, and community -based water safety campaigns and events such as April Pools Day, Water Safety Festival, World's Largest Swim Lessons and National Water Safety Month. Staff has been partnering with the Fire Department to increase the awareness to the public. This continues to be (Yellow) as what is currently offered is delivered by full -time staff with no funding to train and implement using part -time staff hours. Due to budgetary constraints, full -time aquatic staff has been doing ASAP and WARN presentations as time has allowed. Status could change to (Green) if qualified volunteers are recruited and trained to become presenters. These volunteers could do the WARN outreach program to homeowner associations, mobile home parks, and community groups, and ASAP outreach program to schools. The status could move to (Red) if significant maintenance items listed on the Citywide Critical Needs List are not addressed and pool operational hours are affected. Green iunie�e] renow �e ,Hgha,,i Function Recreation - Resource Management /Community 2015 -05 -26 Agenda Packet Page 809 v e l r _y q d �T I u n` 2015 -05 -26 Agenda Packet Page 809 CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Summary CIP Revenue Summary CIP Expenditure Summary Capital Improvement Projects Summary 2015 -05 -26 Agenda Packet Page 810 2015 -05 -26 Agenda Packet Page 811 City of Chula Vista Proposed Budge Capital Improvement Program Summary The following is an overview of the Capital Improvement Budget Program. The goal of the Capital Improvement Program (CIP) is to provide for the sustainable preservation of City -owned assets at the lowest cost and to leverage financial strategies to address infrastructure needs within a prioritized framework, which includes an assessment of the asset's condition, capacity to meet service demands, probability of failure, maintenance and preservation strategies, and funding availability. The CIP is a living document used to identify current and future requirements and the basis for determining annual capital budget expenditures. The CIP document can be found in its entirety on the City's website. To follow is a summary of the document. Capital Improvement Projects are defined as capital investments with a value of $50,000 or more and a minimum useful life of 5 years at a fixed location. Equipment, operating and maintenance costs are budgeted in the City's operating budget. New maintenance costs are included in the CIP budget and appropriated in future operating budget cycles. The CIP document provides the capital project budget detail and reporting by asset management category, funding, and location. This format better aids the decision - making process as it allows the City Council to review projects recommended in each asset management system, gain an understanding of the condition of the asset in relation to the overall system and the basis for the recommendation, as well as the availability of funding sources. The proposed projects' detail sheets within each asset management system provides a description, location, project intent, type of project, link to the strategic goals, and funding requirements over the life of the project. FY 2015.16 \ \I r/ PROPOSED CIP BUDGET±. CIP PROCESS The Department of Public Works annually prepares a Capital Improvement Budget for the City Council's approval. The CIP budget includes an estimated five - year Capital Improvement Program. The City is faced with the challenge of managing a range of aging infrastructure assets that are critical to maintaining an aging City and serving new development. Making sound decisions about asset maintenance and replacement requires information about the asset's probability of failure and capacity to meet the requirements of the system. On a continuous basis, project proposals are added to the City's capital improvement budget and project management database (CIPACE) following recommendations from guiding documents (see list below) adopted by the City Council and condition assessments performed by Public Works staff. This year's CIP process includes the process of ranking projects and setting funding priorities. Funding recommendations are based on the evaluation of the 2015 -05 -26 Agenda Packet Page 812 proposed asset's probability of failure, capacity, and level of service requirements including efficiency improvements gained. Another tool used in ranking and formulating the CIP recommendations are Guiding Documents approved by the City Council. The City utilizes "guiding documents" to ensure proposed CIP projects are consistent with established program priorities. The following is a partial list of guiding documents, which have included public input from multiple stakeholders in the community. For example the Five -year Pedestrian Master Plan and Bike Master Plan were recently adopted by the City Council. They identify missing infrastructure needs within those program categories. Additionally, proposed CIP projects are reviewed for consistency with the City's General Plan and specific plan and City policies. • General Plan • Regional Transportation Program • Bikeway Master Plan • Street Saver Condition Index Database • Drainage Master Plan • Wastewater Master Plan • Fire Master Plan • Asset Management Plan • Parks Master Plan • Pedestrian Master Plan /Safe Routes to School • Redevelopment Implementation Plan • Southwest United in Action Survey Results • Third Avenue Streetscape Master Plan • Environmental Mitigation Program • Western TDIF Program • TDIF Program • Redevelopment Implementation Plan • Traffic Monitoring Program • Growth Management Oversight Committee Annual Report • Other Specific Plans (e.g. Urban Core Specific Plan, Palomar, Bayfront and Main Street Specific Plans BUDGET DEVELOPMENT Although a component of the City Manager's overall budget, the CIP budget is developed separately by Public Works staff on an annual basis. The CIP budget process runs parallel to the development process for the City's operating budget, and they are subsequently presented together for City Council approval. On March 3, 2015 a public hearing was held for City Council to consider and adopt the TransNet Local Street Improvement Program of projects for fiscal years 2015- 16 through 2019 -20. Then, on April 2, 2015 Public Works held their annual Infrastructure Workshop. Public comment is a vital component of the CIP process. The public had the opportunity to comment on the proposed CIP. The initial proposed capital improvement project detail sheets are posted annually in April of each year on the Public Works website for public comment and review. http: / /www.chulavistaca.gov /departments /engineering Additionally, the Public Works Department publishes an annual proposed CIP budget. The document will be made available at the City Clerk's Office, the Civic Center Library, Otay Ranch Mall Library, and the South Chula Vista Library. The proposed program reaffirms the City's commitment to identify resources to move us toward long -term sustainability of our City's current assets as well as new improvements that accommodate growth. The City will continue to collaborate with regional agencies, such as the Port, SANDAG, and Caltrans, to ensure that the needs of our City residents are met, taking into account the unique characteristics of our City and recognizing our role as the County's second largest city and a leader in the South Bay. 2015 -05 -26 Agenda Packet Page 813 The Capital Improvement Program is supported by a number of funding sources. City staff continuously explores opportunities to diversify revenue and leverage funding for infrastructure improvements. The CIP Revenue Summary following chart and table summarizes the funding sources for the FY 2015 -2016 CIP budget. Fiscal Year 2015 -16 CIP b) Sewer Facility CDBG, 1.7% Replacement (; I;% I Transportation _ Development, 10.8 Gas Tax, 15.4% Sewer Service Revenue, 0.0 %, Telegraph Canyon DIF, 0.7% Trunk Se Capital Re 1.5% Funding Source ,iway Bridge ;ram, 32.9% Traffic Signal, 2.3% 3eneral Fund, 1.9% Sewer Service Revenue $ 13,000 Telegraph Canyon DIF $ 200,000 Trunk Sewer Capital Reserve $ 406,000 CDBG $ 468,292 General Fund $ 510,000 Traffic Signal $ 644,000 Sewer Facility Replacement $ 1,800,000 Transportation Development $ 2,955,845 Gas Tax $ 4,231,000 TransNet $ 7,215,343 Highway Bridge Program $ 9,048,589 Total FY16 Proposed Budget $ 27,492,069 2015 -05 -26 Agenda Packet Page 814 The Capital Improvement Budget is primarily supported by Transportation Sales Tax (TransNet), Gas Tax, and revenues from the Highway Bridge Program (HBP) for Willow Street and Heritage Bridges. TransNet is the largest stable source of revenues for Capital Improvement projects. Along with TransNet, Gas Tax funds continue to provide a stable source of revenue for street related projects. The HBP is a safety program that provides federal -aid to local agencies to replace and rehabilitate deficient locally owned public highway bridges. Other major revenues in this year's budget include Transportation Development Impact Fees for street related projects and Sewer Facility Replacement funds for ongoing sewer rehabilitation projects. Competitive grant revenue sources remain steady with grant revenue growth opportunities in the imminent future. Transportation grants include the Active Transportation Program and Federal Highway Safety Improvement Program. Revenue decreases include the end of funds available from Proposition 1B and a reduction in Community Block Grant funding traditionally used for ADA pedestrian improvements. The following is a brief description of key funding sources which support the FY 2015 -16 Capital Improvement Budget: DEVELOPMENT IMPACT FEES Traffic Signal Fee The Traffic Signal Fee is a trip -based development impact fee that is charged with the issuance of building permits for new construction. The fee can be utilized for the installation and upgrade of traffic signals throughout the City. $644,000 is programmed in FY 2015 -16 for traffic signal modifications and pedestrian improvements. Transportation Development Impact Fee (TDIF) The City's TDIF Program was established on January 12, 1988, by Ordinance 2251 for the collection of development impact fees to be used to construct transportation facilities to accommodate increased traffic generated by new development within the City's eastern territories. Telegraph Canyon Development Impact Fee The City's Telegraph Canyon DIF was established on August 7, 1990, by Ordinance 2384 for collection of development impact fees to be used to construct drainage and channel improvements for the Telegraph Canyon Basin. Due to outstanding DIF obligations and changing NPDES regulations, an overall study at a cost of $200,000 is programmed in the FY 2015 -16 CIP to identify the improvement required to preserve and protect the infrastructure within the Telegraph Canyon Channel basin. GRANTS Active Transportation Grant Program On September 26, 2013, the Governor signed legislation creating the Active Transportation Program (Senate Bill 99 Chapter 359 and Assembly Bill 101, Chapter 354), a new statewide grant program to encourage increased use of active modes of transportation, such as biking and walking. The Active Transportation Program (ATP) consolidated the Bicycle Transportation Account BTA along with Safe Routes to School Program, the Environmental Enhancement and Mitigation Program and two other programs into one program. The California Transportation Commission (CTC) adopted the ATP guidelines on March 26, 2015. Caltrans announced a call for ATP projects and is accepting application from March 21, 2015 to June 1, 2015. Staff is currently evaluating potential projects to apply for grant funding under this program. Award notifications are expected in November 2015. Bicycle Transportation Account The Bicycle Transportation Account (BTA) is an annual program providing state funds for city and county projects that improve safety and convenience for bicycle commuters. Projects must be designed and developed to achieve the functional commuting needs and physical safety of all bicyclists. No BTA Program Call for Projects has been announced for FY 2015 -16. Therefore, no BTA funds are programmed in the FY 2015 -16 CIP. Community Development Block Grant Funds Each year, the City receives approximately $1.7 million in Community Development Block Grant (CDBG) funds. Of this amount approximately $1.3 million is available for community development activities, which include capital improvement projects. In 2006, the City of Chula Vista received a CDBG Section 108 loan in the amount of $9.5 million for the completion of the Castle Park Infrastructure Projects. The debt service payment is paid back from the City's annual allotment of CDBG funds (approximately $750,000 annually). This reduces the amount of CDBG funds available for other capital 2015 -05 -26 Agenda Packet Page 815 projects to approximately $0.3 -0.5 million annually for the next 14 years. A total of $468,292 in CDBG funds are programmed in the FY 2015 -16 CIP Program. Highway Bridge Program Included in the FY 2015 -16 Capital Improvement Program are two major bridge replacement projects: STL -261, "Willow Street Bridge Widening," at the Sweetwater River and STM -386, "Heritage Road Bridge Replacement," at the Otay River. Both projects will be designed and constructed primarily using Federal Highway Bridge Program (HBP) funds totaling approximately $43.3 million, leveraged with a relatively small local TDIF contribution of about $6.7 million. The environmental documentation and engineering design for STM -364 is also being partially funded by a $2.5 million SAFETEA -LU grant. The Highway Bridge Program (HBP) provides funding to enable states to improve the condition of their highway bridges through replacement, rehabilitation, and systematic preventive maintenance of deficient bridges. The existing bridge at Willow Street was constructed in 1940 and, through a series of studies, was determined that it was not practical to rehabilitate the bridge and funding for full replacement was subsequently approved by the Federal Highway Administration (FHWA) and Caltrans, which administers the HBP Grant Program in California. The existing bridge at Heritage Road was built as an interim facility in 1993 when heavy flood waters destroyed the river crossing; this interim bridge was recently approved by FHWA and Caltrans for replacement because it is inadequate for peak traffic volumes, does not accommodate pedestrians, and is unable to convey the 50 -year storm without being overtopped. Highway Safety Improvement Program The Highway Safety Improvement Program (HSIP) was established to attain a significant reduction in traffic fatalities and serious injuries on all public roads through the implementation of infrastructure - related highway safety improvements. The HSIP Cycle 7 call for projects announcement was made by Caltrans on February 3, 2015, with a beginning schedule on April 2015 and the applications due late July 2015. No HSIP funding has been programmed as part of the FY 2015 -16 CIP. Neighborhood Reinvestment Program The Neighborhood Reinvestment Program (NEP) provides grant funds to County departments, public agencies, and to non - profit community organizations for one -time community, social, environmental, educational, cultural or recreational needs. No NEP funds are programmed in the FY 2015 -16 CIP. Safe Routes to School The State Safe Routes to School (SR2s) program goal is to reduce injuries and fatalities to schoolchildren and to encourage increased walking and bicycling among students. Competitive grants are available to local government agencies for construction of facilities that enhance safety for pedestrians and bicyclists, primarily students in grades K -12 who walk or bicycle to school. No Safe Routes to School funds are programmed in the FY 2015 -16 CIP. The Active Transportation Program (ATP) consolidated the Safe Routes to School Program along with a number of other programs into one program. Smart Growth Incentive Grant The TransNet Smart Growth Initiative Program (SGIP) funds transportation related infrastructure improvements and planning efforts that support smart growth development. The SGIP will award two percent of the annual TransNet revenues for the next 40 years to local governments through a competitive grant program to support projects that will help better coordinate transportation and land use in the San Diego region. Staff will be submitting for an Active SGIP grant for the Third Avenue Streetscape Improvement Project Phase I I I from 200 feet north of "F" Street to "E" Street. No SGIP funds are programmed as part of the FY 2015- 16 CIP. MISCELLANEOUS FUNDS (cncrnl Giinrl The General Fund is the City's main operating fund used to pay for City services. The FY 2015 -16 CIP includes $400,000 for Sign Reflectivity Replacement citywide, a revenue offset project (funded by SAFE funds), and $110,000 for the City's Asset Management Program. Residential Construction Tax (RCT) The Residential Construction Tax (RCT) was established by the City Council in October 1971 to provide a more equitable distribution of the burden of financing parks, open spaces, public facilities, and other capital 2015 -05 -26 Agenda Packet Page 816 improvements, the need for which is created by the increasing population of the City. The RCT is applicable to all new residential units and paid by the person constructing the units. RCT funds are used to pay for debt service obligations resulting from the issuance of Certificates of Participation (COP'S) for western Chula Vista failing CMP repairs. No RCT funds are programmed as part of the FY 2015 -16 CIP. VOTER APPROVED FUNDS Proposition 1B Highway Funds In 2006 -07, the voters of the State of California approved Proposition 1B. This proposition included funds to be provided to cities within the State for local roadway improvements. The initial allocation of $3.6 million was spent on pavement rehabilitation projects in FY 2010 -11. The second allocation of $3.3 million was frozen by the State of California due to the State's financial crisis and released in late April 2010 in monthly installments. As a result, the State provided an additional year of expenditure for Prop 1B funds received in 2009 -10. The City spent the second allocation of Prop 1B funds prior to June 2014. Gas Tax Several years ago the voters approved Proposition 42, which provided funding for cities to improve streets from the sales tax on fuel. The funds can only be utilized for street improvements and the City has utilized these funds to augment its annual pavement rehabilitation efforts. In FY 2015 -16 the proposed CIP budget is $4,231,000 million for minor pavement rehabilitation including street overlays and some street reconstruction based on the City's Pavement Management System, and CMP rehabilitation. Transportation Sales Tax Transportation Sales Tax (TransNet) funds are derived from sales tax revenues levied in San Diego County that are collected by the State specifically for use on transportation related projects in San Diego County. The regional metropolitan planning agency, San Diego Association of Governments (SANDAG), programs these funds to municipalities within San Diego County. Revenues vary from year -to -year, depending on the amount of sales tax available to the region and the number and costs of projects for which municipalities, local transit, and Caltrans request funding. The revenue approved for municipalities is based on the specific cost estimates that are required to be submitted as part of the annual request for funding. The TransNet Extension Ordinance states that at least 70 percent of the funds allocated to local agencies for local road projects should be used to fund Congestion Relief (CR) projects. CR projects include the construction of new or expanded facilities, major rehabilitation and reconstruction of roadways, traffic signalization, transportation infrastructure to support smart growth, capital improvements for transit facilities, and operating support for local shuttle and circulator transit routes. No more than 30 percent of TransNet funds allocated to local agencies are expected to be used for local street and road maintenance. In the FY 2015 -16 CIP, the TransNet budget is nearly $7.2 million. SEWER FUNDS Sewer Service Revenue The Special Sewer fund is used to account for the sale of the City's excess Metropolitan Sewerage Capacity. A total of $13,000 in Special Service funds are programmed in the FY 2015 -16 CIP. Trunk Sewer Capital Reserve The Trunk Sewer Capital Reserve Fund is a permit fee based revenue source received from the owner or person applying for a permit to develop or modify the use of any residential, commercial, industrial or other property, that may increase the volume of flow in the City's sewer system. The funds may be used for: (1) to repair, replace or enlarge trunk sewer facilities to enhance efficiency of utilization and /or adequacy of capacity to serve the needs of the City, or (2) to plan and /or evaluate any future proposals for area -wide sewage treatment and /or water reclamations systems and facilities. In the FY 2015 -16 CIP, $406,000 is programmed to upsize an existing sewer pipe between Industrial Blvd and Main Street to meet operational standards for existing flow. Sewer Facility Replacement Fund The Sewer Facility Replacement Fund is a fee based revenue source that all properties pay each month as part of their sewer bills. The funds can be utilized to replace, rehabilitate or upgrade existing sewer facilities. In the FY 2015 -16 CIP, a total of $1.8 million is proposed for sewer rehabilitation projects. 2015 -05 -26 Agenda Packet Page 817 The 2016 -2020 Capital Improvement Program (CIP) is a five -year expenditure plan that provides the City with a financial strategy for infrastructure improvements. The CIP includes funding for projects and programs in various geographic areas of the City. The Proposed Fiscal Year 2015 -16 capital expenditure budget is approximately $27.5 million. The forecasted five -year program is estimated at $96.1 million. The 2016 -2020 CIP program reflects the actions taken by Council and developed in accordance with Council adopted policies and guiding documents (such as and not limited to the City's General Plan, Master Plans, Specific Plans and the Regional Transportation Plan) as well as generally accepted accounting principles. Overall, the 5 -year program continues to trend favorably despite the economy and the fiscal constraints facing the City. Projects in this year's Capital Improvement Budget have been sorted by the nine -asset management systems identified in the City's Fiscal Recovery Plan and the Infrastructure Workshop with the City Council. This provides a mechanism to track CIP allocations by Asset Management System (AMS). The nine AMS's include the following: • The Roadway Management System (RMS) is comprised of all City -owned assets in the Public Right -of -Way. These assets include: Major and Local Streets, Sidewalks, Traffic Signals & Striping, Bicycle and Pedestrian paths, ADA Ramps and Curbs and Gutters. A majority of the CIP funding is focused on the RMS. • The Wastewater Management System (WMS) is comprised of Sewer Pump Stations, Rehabilitation CIP Expenditure Summary and related projects. • The Drainage Management System (DMS) is comprised of citywide storm drain facilities. • The Building Management System (BMS) is comprised of City -owned facilities including the Civic Center, Fire Stations, Libraries, Police Station, Recreation Centers, and community facilities such as Rohr Manor and the Woman's Club. • The Parks Management System (PMS) is comprised of the citywide park system. • The Open Space Management System (OMS) is comprised of the Open Space Districts and Community Facility Districts (CFDs). • The Fleet Management System (FMS) is comprised of City -owned vehicles. • The General Government Management System (GGMS) includes general - purpose items such as Automation, Utility Undergrounding and Parking Meters. • The Urban Forestry Management System (UMFS) is comprised of City -owned street trees, and trees within Public Right -of -Way and parks. The following chart provides an expenditure breakdown, by Asset Management System, totaling $27.5 million of recommended appropriations: 2015 -05 -26 Agenda Packet Page 818 Fiscal Year 2015 -16 Proposed CIP by Asset Management System Drainage, 7.7% General Government, 1.0% Open Space, 0.4% Wastewater, 8.1% Roadway, 82.9% ROADWAY MANAGEMENT SYSTEM (RMS) A majority of the CIP funding is focused on the Roadway Management System (RMS). The total amount programmed for Roadway projects is $22.8 million, which represents 82.6% of the proposed CIP budget. Project types within the RMS are Major Streets, Local Streets, and Traffic. The following chart and table summarizes the funding by these project types. Project Type Total Cost Local Streets $10,342,459 Major Streets $9,295,267 Traffic $3,159,000 Total Roadway Projects $22,796,726 RMS Protects • Major Streets The $9.3 million in funding includes the Pavement Major Rehabilitation Project (citywide), Heritage Road Bridge Replacement project, Bike Lane along East H Street, and studies for the Bikeway Facility Gap Project and the widening of Main Street and Heritage Road. The Pavement Major Rehabilitation Project includes resurfacing and pavement overlays, which may extend street life by up to 15 years. Failure to complete proactive street maintenance will lead to the accelerated deterioration of City streets, thereby, costing more to repair in the long -term. • Local Streets The $10.3 million in funding includes the Pavement Minor Rehabilitation Project, Willow Street Bridge Road widening, sidewalk installation along portions of Moss Street, and the replacement of curb and cutter (citywide), and Kellog Elementrary School pedestrian improvements. Funding of $50,000 is included for a Pavement Management Study which will further the development of the Roadway Management System, by addressing other roadway elements, besides pavement, on eligible roads. These elements include curbs, gutters, sidewalks, medians, parkways, traffic signals and street lighting. • Traffic The $3.2 million in funding includes the Traffic Calming Program, Traffic Signal System Optimization, Traffic Signal and Streetlight Systems Upgrade and Modification Program, Neighborhood Traffic and Pedestrian Safety Program, and traffic signal modifications at various locations. Funding of $608,000 is included to complete pedestrian improvements at Hazel Cook Elementary School and at various uncontrolled intersections throughout the City. Funding of $400,000 is included to replace city street signs that do not meet State reflectivity standards. In addition, funding of $250,000 is included for the Traffic Signal installation at Main Street and Jacqua Street. 2015 -05 -26 Agenda Packet Page 819 WASTEWATER MANAGEMENT SYSTEM (WMS) The second highest commitment of CIP funding is for the Wastewater Management System (WMS). The appropriation for Wastewater Management System (WMS) is $2.2 million which represents 8% of the proposed CIP budget. The single project type within the WMS is Sewer. However, the discussion below is divided into the following two categories: Sewer Rehabilitation and Specific Sewer Improvements, and Sewer Pump Stations and Access Roads. WMS Protects • Sewer Rehabilitation and Specific Sewer Improvements The annual Sewer and Manhole Rehabilitation project for fiscal year 2015 -16 commits $1.1 million for citywide work. A total of $406,000 is included to complete sewer improvements at Industrial Boulevard and Main Street. In addition, $200,000 is included to complete manhole inspections to establish a baseline condition in order to preserve and extend service life and avoid failures of existing structures. • Sewer Pump Stations and Access Roads The pump station at Parkside Drive will be rehabilitated, at a cost of $450,000. Sewer access roads at various locations will be rehabilitated, at a cost of $900,000. DRAINAGE MANAGEMENT SYSTEM (DMS) The appropriation for Drainage Management System (DMS) projects is $2.1 million which represents 7.7% of the proposed CIP budget. The single project type within the DMS is Drainage. DMS Protects • Drainage A total of $1.6 million in Gas Tax funds has been committed for CMP rehabilitation. This project is to address rehabilitation of CMP at specific locations, as well as for emergency repairs. Funding of $200,000 is included to complete a compliance feasibility study of the Telegraph Canyon Channel. In addition, $280,000 is included to complete a storm drain rehabilitation project at a specific location. BUILDING MANAGEMENT SYSTEM (BMS) Due to budget constrictions, staff has had to identify alternatives to fund building maintenance. Although funding is needed for maintenance on City facilities, the fiscal year 2015 -16 proposed CIP budget does not include appropriations for Building Management System (BMS) projects. The goal is to better manage City assets with dedicated funding for replacement of components or entire facilities when they reach the end of their useful life. FLEET MANAGEMENT SYSTEM (FMS) The City owns and operates over 540 vehicles, from police cars to fire trucks to dump trucks. Maintenance of these vehicles is funded via the individual City department's budgets that operate vehicles. Replacement of the vehicles is funded by the Equipment Replacement Fund, which the City Council established in 1985. However, due to budget constraints, staff has continued to extend the replacement of vehicles over the past several years. However, failure to replace vehicles when needed will result in higher maintenance costs to keep those vehicles running and impact productivity of crews. PARKS MANAGEMENT SYSTEM (PMS) The City owns and operates 54 Parks covering more than 500 acres of land including amenities such as sports fields, lighting, play equipment, basketball and tennis courts, skate features, restrooms, parking lots landscaping, picnic areas and shelters. The preservation and rehabilitation funding for these assets predominantly is from the General Fund. Over the years, the City has also successfully competed for State Grants used for park improvements and received philanthropic donations. Unfortunately, all of these funding sources have been stressed with the economy and the actual maintenance investment has decreased in each of the last four budget cycles. As a result, the condition of the parks and amenities, throughout the system, is suffering visible deterioration. A study was presented to the City Council in 2000, which recommended appropriate staffing levels for adequately maintaining the parks system. Current staffing levels are down by 16 positions from the recommended levels. Additionally, critical needs are estimated to cost $405,000 and include tot lot replacements at Valle Lindo and Los Ninos Parks, tot lot soft fall replacements at various parks, repairs to steps 2015 -05 -26 Agenda Packet Page 820 that join Loma Verde Recreation Center to Rienstra fields, sidewalk repairs at Rohr and Tiffany Parks, jogging trail, restroom and a pump replacement at Rohr Park. PMS Protects • Parks The City has received $2.8 million in Proposition 84 State Parks Grant funds to design and construct Orange Park, south of the South Chula Vista Library, within an SDGE easement. The construction of Orange Park is scheduled to be completed in the summer of 2015. OPEN SPACE MANAGEMENT SYSTEM (OSMS) A total of $98,343 is being appropriated for Open Space Management System (OSMS). OSMS Protects • Open Space A total of $98,343 is being appropriated to restore and enhance approximately 10 acres of degraded habitat for the coastal cactus wren within the Otay Ranch Preserve (Salt Creek /Otay River Valley). Management activities will include invasives species control, habitat restoration (including vegetation planting), and biological monitoring. URBAN FORESTRY MANAGEMENT SYSTEM (UFMS) The Urban Forestry Management System is responsible for monitoring the overall health of trees throughout the City, including street trees, park trees, and trees located on City property. The City continues to maintain City street trees in order to: • Ensure ongoing traffic safety along City streets; • Enhance the appearance and image of the City; • Improve the air quality and the environment for City residents; and • Clear right -of -way obstructions. Industry standard sets the ideal schedule for periodic tree trimming as follows: Palms need to be trimmed every 1 or 2 years. Non -palms are recommended to be trimmed every 3 -5 years (eucalyptus and pine every 2 -3 and broadleaf every 5 -6). Based on an inventory of about 27,500 trees and using 5 years, the annual goal is 5,500 trees. Due to multi -year budget constraints, we are currently backlogged by over 13,000 trees. Maintenance of City trees is primarily funded via Gas Tax Funds. GENERAL GOVERNMENT MANAGEMENT SYSTEM (GGMS) The appropriation for General Government System (GGS) projects is $170,000, which represents 1% of the proposed CIP budget. The single project type within the GGS is General Government. GGMS Protects • General Government Funding of $110,000 from the General Fund will be used for the Asset Management Program. Consultants will be hired to identify all city -owned assets, performing condition assessments, and preparing a Preservation & Rehabilitation Plan to assist the City in prioritizing limited resources. A total of $170,000 in TransNet funds will be used to perform various studies and projects by City staff, including the Bikeway Pedestrian Master Plan, Sweetwater River Pathway Study and infrastructure planning and engineering work related to the application for funds. There is no CIP funding for Utility Undergrounding Districts in the coming year. The City has approximately 164 Miles of aboveground electric distribution wires with an estimated cost to underground of $275 million. The Franchise Agreement with SDGE Allocation is $2 million per year from 20A Funds. Almost $40 million has been expended in undergrounding projects since the 1990's. The most recent completed projects are the Phase I Bayfront project at $20 million, and Fourth Avenue from L Street to Orange Avenue and L Street from Monserate Avenue to Nacion Avenue, at $9.3 million. The City's 20A fund allocation has a negative balance of ($9,629,977). According to Rule 20A, municipalities are allowed in incur debt up to five times the annual allocation. Since the City's annual allocation is $2.0 million, this is within the five- year limit ($10.0 million) allowed by the Public Utilities Commission (PUC). However, it means that, until at least next year, the City cannot currently borrow ahead any additional funds to construct additional undergrounding facilities unless allowed by a revised agreement with SDG &E. 2015 -05 -26 Agenda Packet Page 821 In an effort to contain undergrounding construction costs, the City of Chula Vista as well as several other local agencies formed a Utility Undergrounding District subcommittee to meet and discuss policies and various other methods for controlling underground utility district costs so that additional conversion districts can be funded in the future. Future conversion districts may be established and constructed differently than how we have done previous districts. A letter to the California Public Utilities Commission (CPUC) was sent on May 17, 2011, for CPUC clarification of additional local agency eligible reimbursable expenses. REGIONAL PROJECTS The City of Chula Vista CIP includes funding for several studies related to regional projects. It does not include total costs of regional projects funded or led by other agencies such as Caltrans or SANDAG. However, City staff often partners or gets involved in the delivery of these projects since they provide a direct benefit to the community and sustainable infrastructure. The following is a summary of various projects: • Interstate-5 Multi -modal Corridor Study In an effort to identify all transportation related improvements needed along, across and within the four -mile long Interstate -5 and rail corridor in Chula Vista, the City has combined efforts with Caltrans, Metropolitan Transit System (MTS) and SANDAG to undertake this planning level study. Funding is provided by a combination of TransNet and two Federal grants. The study has several phases of work and the first two phases have been completed. Phase III commenced in FY13/14 and is for the environmental work and preliminary engineering of grade- separating the Palomar Street light rail crossing near the intersection with Industrial Blvd. Phase I identified and prioritized needed transportation improvements to improve mobility and goods movement within the study area bounded by SR -54 and Main Street. The results of the first phase study completed in December 2010 have already been included in the 2050 Regional Transportation Plan adopted by SANDAG in October 2011. This report is used as a technical FY2016 appendix to the SANDAG 2050 Regional Transportation Plan. Rail improvements were identified as the highest near term need. http: / /www.sandag.org /index.asp ?prob ectid =387 &f useaction= proiects.detail Phase 11, the Chula Vista Light Rail Corridor Improvements Project Study Report, is a grade separation study for each of the three light rail trolley stations at E Street, H Street and Palomar Street. This document, completed in August 2012, has planning level work for the ultimate rail corridor improvements in Chula Vista. Final recommendations from the LRT Improvement study are being incorporated into the Phase III environmental work for the Palomar Street location as well as future regional plans and as individual projects into the Bayfront Development Impact Fee Program, the Western Transportation Development Impact Fee (WTDIF) Program and the CIP program. http: / /www.chulavistaca.gov /departments /public- works /engineering /chula- vista - light- rail - corridor- i m provements- project- study- report The completed Phase I and Phase II studies serve to identify an accurate project description for Phase III, a future LRT grade- separation Environmental Impact Report (EIR) that commenced in FY 2013 -14 and completed in FY 2015 -16. This environmental and preliminary design work is the last phase of the 1 -5 Multi -modal Corridor Study. The Palomar Street crossing is the highest priority LRT grade- separation project out of 27 study locations within San Diego County. The H Street and the E street locations rank fourth and sixth, respectively. Furthermore, the Blue Line Improvement Corridor has seen many upgrades and continues with several improvements regionally and state funded. SANDAG has current freight rail improvements throughout the Blue Line corridor that are in various stages of design and /or construction. In addition to the roadway and freeway network, Light Rail Trolley (LRT) maintenance upgrades at all Chula Vista at -grade rail crossings began by MTS /SANDAG in FY 2012 -13 and is still on- going. The remaining work includes the following 2015 -05 -26 Agenda Packet Page 822 locations and scope and is wrapping up in late 2015: • Anita Street • Main Street Freight Rail Bridge • Interstate -805 /East Palomar Street Direct Access Ramp (DAR) Project The Caltrans work on Interstate -805 will provide a new access point to /from the East Palomar Street Bridge to and from the north freeway via Direct Access Ramps which are ramps that lead to /from the center median area of the freeway instead of from the right side of the freeway. The project started construction in April 2013 and construction will be completed by late summer 2015. When completed, the freeway DAR project will connect to the recently completed High Occupancy Vehicle (HOV) lanes that extend from East Naples Street to State Route -94. • The South Bay Bus Rapid Transit ( SBBRT) Project The SBBRT project, coordinated by SANDAG, is expected to follow the Caltrans 1 -805 Direct Access Ramp project. SANDAG, as the project manager, will design and build a 21 -mile BRT line between the Otay Mesa Port of Entry and downtown San Diego via eastern Chula Vista, 1 -805 and SR -94. The eastern Chula Vista section extends from the intersection of East Palomar Street and Oleander Avenue through Otay Ranch Town Center and the Millennia Project to SR -125. The project will include arterial "transit only" lanes, transit signal priority, special shoulder lanes for busses -only on the freeway, and enhanced customer amenities. City staff is providing design and surveying for the portion of the project within the Otay Ranch Shopping Center and Birch Road. Design is complete and the project will be advertised for construction in mid -2015 by SANDAG. Construction is expected to begin in the fall of 2015 and be in operation by summer 2017. • State Route —125 (SR -125) In December 2011, SANDAG purchased the lease to operate the SR -125 toll road (South Bay Expressway). Soon thereafter, the SANDAG Board of Directors did approve the lowering of tolls effective June 30, 2012. Traffic volumes since the 0 1 new toll schedule went into effect show that traffic volumes have increased from approximately 25,000 vehicles per day to over 40,000 vehicles per day. More recent counts show that traffic volumes are still increasing on this facility. As SANDAG completes its transition with South Bay Expressway, city staff will work with Caltrans and SANDAG to pursue construction of the northbound off -ramp and the southbound on -ramp at the San Miguel Ranch subdivision. City staff will be providing cost estimates for completing these ramps and work with Caltrans and SANDAG to agree on financing and expediting completion of this work. For more information, including a list of frequently asked questions, visit: www .sandag.org /southbavexpressway At the south end of the toll road, City staff has continued to work with Caltrans and the development community to determine the ultimate on -ramp and off -ramp needs and geometric configurations where the future Main Street (Rock Mountain Road /Hunte Parkway) and Otay Valley Road local streets eventually will cross the SR -125 corridor. On November 18, 2014, these on -ramps and off -ramps were added into the Transportation Development Impact Fee (TDIF) Program. • Bayshore Bikeway Project The City completed a preliminary engineering study for the segment between E and H Streets, working with SANDAG and a consultant. The study was presented to the SANDAG Bayshore Bikeway Working Group in FY13/14 and was accepted. Staff is looking at grants to fund the preliminary engineering and environmental phase. The multi- purpose bike path segment between H Street and Palomar Street was completed by SANDAG in March 2012 and has high usage rates, especially on the weekends. The City of San Diego is responsible for working with SANDAG on the segment south of Palomar Street to Main Street, which is currently in the environmental and design phases. In 2014, the San Diego Unified Port District completed the bike path on the H Street segment between Bay Blvd to the intersection of Marina Parkway. Future segments of the Bayshore 2015 -05 -26 Agenda Packet Page 823 Bikeway along the Chula Vista Bayfront waterfront will be part of the development of that area and a general alignment of that facility can be seen on the City's 2011 Bikeway Master Plan map. CIP DOCUMENT The initial proposed capital improvement project detail sheets are posted annually in April of each year on the Public Works website for public comment and review. http: / /www.chulavistaca.gov /departments /engineering Additionally, the Public Works Department publishes an annual proposed CIP budget. The document is made available at the City Clerk's Office, the Civic Center Library, Otay Ranch Mall Library, and the South Chula Vista Library. The proposed CIP is presented at a Council Budget Workshop in May and adopted in June of every year. 2 2015 -05 -26 Agenda Packet Page 824 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 825 DRAINAGE DR202 DR203 DR204 Storm Drain Rehabilitation Project FY2015/16 Telegraph Canyon Channel Compliance Feasibility Study Storm Drain Repairs At Various Locations DRAINAGE TOTAL $280,000 $200,000 $1,631,000 $2,111,000 GENERAL GOVERNMENT L IL FY 2015-16 PROPOSED GG222 Asset Management $110,000 OP202 CIP Advanced Planning $45,000 OP225 Sweetwater River Pathway Study $75,000 STL404 Bikeway Pedestrian Master Plan 2016 Update $50,000 GENERAL GOVERNMENT TOTAL $280,000 OP219 STL261 STL366 STL406 STL407 STL408 STL409 STL410 Pavement Management System Willow Street Bridge (Widening)- Phase II Moss Street Sidewalk Installation LOCAL STREETS FY 2015 -16 PROPOSED 000 6,95 $468,292 1 Third Avenue Streetscape Improvement Project - Phase III FY 2015/2016 $150,000 Replacement of Curb & Gutter Program Citywide FY2015/16 $350,000 Cross Gutter Rehabilitation Program Citywide FY 2015/16 $250,000 Pavement Minor Rehabilitation Program FY2015/16 $2,000,000 Kellog Elem. School Pedestrian Improvements $115,000 LOCAL STREETS TOTAL $10,342,459 2015 -05 -26 Agenda Packet Page 826 MAJOR STREETS STM369 STM381 STM382 STM385 STM386 STM387 STM388 STM389 Bikeway Facilities Gap Project (Study) $50,000 South Broadway Improvements Main Street to Southern Limits, Phase II $50,000 Bike Lane along East H Street $2,000,000 Bridge Maintenance Program (BMP) $150,000 Heritage Road Bridge Improvement (HBP) $2,345,267 Pavement Major Rehabilitation Program FY2015/16 $4,000,000 Main Street Widening FY2015/16 $300,000 Heritage Road Widening FY2015/16 $400,000 MAJOR STREETS TOTAL $9,295,267 ` OPEN SPACE FY 2015-16 PROPOSED OP227 Coastal Cactus Wren Habitat -Salt Creek/Otay River Valley $98,343 OPEN SPACE TOTAL $98,343 SEWER FY 2015-16 PROPOSED SW292 Industrial Blvd. & Main St. Sewer Improvements $406,000 SW293 Parkside Drive Lift Station Upgrades $450,000 SW294 Sewer Access Rehabilitation Program FY2015/16 $600,000 SW295 Sewer Rehabilitation Program FY2015/16 $300,000 SW296 Manhole Inspections Program FY 2015/16 (Study Analysis) $200,000 SW297 Manhole Rehabilitation Program FY 2015/16 $250,000 SEWER TOTAL $2,206,000 2015 -05 -26 Agenda Packet Page 827 TRAFFIC 2015 -05 -26 Agenda Packet Page 828 R• • V TF321 Citywide Traffic Count Program $50,000 TF327 Neighborhood Traffic and Pedestrian Safety Program $150,000 TF332 Signing and Striping Program $25,000 TF345 Traffic Calming Program $25,000 TF350 Traffic Signal System Optimization Program $75,000 TF366 Traffic Signal and Streetlight Systems Upgrade and Modification Program $200,000 TF374 Modification of existing traffic signal and equipment at Orange Ave. and $50,000 Palomar TF384 Hazel G Cook Elementary School Pedestrian Improvements $358,000 TF391 Sign Reflectivity Replacement FY 2015/16 $400,000 TF392 Palomar Street Traffic Data Collection $136,000 TF393 Internally Illuminated SNS Conversion Program FY 2015/16 $100,000 TF394 Pedestrian Crosswalk Enhancement at Uncontrolled Intersections $250,000 TF395 SANDAG Main St Fiber Optic - Additional Work $400,000 TF396 Traffic Signal System Communication Network Master Plan $250,000 TF397 Raised Median Improvements $440,000 TF398 Traffic Signal Installation at Main Street and Jacqua Street $250,000 TRAFFIC TOTAL $3,159,000 GRAND TOTAL - ALL PROJECTS $27,492,069 2015 -05 -26 Agenda Packet Page 828 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 829 SUMMARY TABLES Fund Appropriations by Department and Expenditure Category Schedule of Revenues Fund Balance Projections Schedule of Interfund Transfers Authorized Positions by Department 2015 -05 -26 Agenda Packet Page 830 2015 -05 -26 Agenda Packet Page 831 FUND APPROPRIATIONS BY DEPARTMENT AND EXPENDITURE CATEGORY 2015 -05 -26 Agenda Packet Page 832 2015 -05 -26 Agenda Packet Page 833 N O N U7 O U7 N OC G. ro w x co b w va co w 01100 City Council 1,375,453 108,479 1,520 3,190 100,000 8,590,428 1,488,642 02000 Boards and Commissions 11,476 125,902 615,902 225 11,476 03000 City Clerk 791,319 140,766 750 659,000 8,950 Transp Sales Tax Fund 941,785 04000 City Attorney 2,470,290 431,857 1,850 234 4,948 294,242 2,908,945 05000 Administration 2,980,254 248,159 1,520 Legislative Counsel Fund 4,936 80,000 3,234,869 06000 Information Technology Srvcs 2,416,696 865,157 47,045 148,500 12,448 166,400 3,477,398 07000 Human Resources 2,117,909 422,305 1,530 38,500 8,920 399,140 2,550,664 08000 Finance 3,458,274 185,530 2,500 15,499 543,384 3,661,803 09000 Non - Departmental (1,501,024) 1,596,447 61,327 167,500 5,726,767 5,483,642 510,000 490,316 6,808,208 10000 Animal Care Facility 2,205,801 569,555 41,495 4,500 6,282 Local Law Enforc blk Grant Pro 2,827,633 12000 Planning and Building Services 2,315,878 146,322 2,200 12,000 Asset Seizure 2,476,400 14000 Police 44,773,716 3,141,063 570,942 123,243 162,989 48,771,953 15000 Fire 23,375,802 1,911,336 226,715 28,000 62,326 25,576,179 16000 Public Works 18,564,450 3,665,992 4,156,884 128,000 61,921 390,290 18,700 26,986,237 17000 Recreation 3,043,528 621,146 420,057 115,657 2,523 4,202,911 18000 Library 3,222,080 203,852 352,925 400 3,779,257 100 GENERAL FUND TOTAL 111,610,426 14,269,442 5,889,260 551,300 265,669 6,099,247 510,000 509,016 139,704,359 221 Gas Tax 4,259,428 4,231,000 100,000 8,590,428 223 TUT Common Fund 490,000 125,902 615,902 225 Traffic Signal 15,000 644,000 659,000 227 Transp Sales Tax Fund 30,000 7,215,343 7,245,343 234 Advanced Life Support Program 294,242 134,039 833,510 1,261,791 235 Legislative Counsel Fund 80,000 80,000 241 Parking Meter 220,300 12,448 166,400 399,148 245 Traffic Safety 38,500 399,140 437,640 251 Supp Law Enforcement Sery Fund 448,846 75,000 19,538 543,384 252 Police Dept Grants Fund 4,939,533 708,716 8,999 69,519 5,726,767 253 Inmate Welfare Fund 60,000 60,000 254 Local Law Enforc blk Grant Pro 91,078 91,078 256 Asset Seizure 505,000 200,000 705,000 267 McCandliss memorial Cult Arts 400 1,200 1,600 270 Mobilehome Admin fee fund 28,000 65,000 93,000 272 Federal Grants Fund 811,401 505,409 1,316,810 N O N U7 O U7 N OC G. ro w x co b w va co W N 273 State Grants Fund 15,843 40,000 20,000 75,843 274 Amer. Recovery & Reinvest. Act 22,333 22,333 281 Waste Mgmt & Recycling 67,518 908,867 11,000 987,385 282 Environmental Services 704,386 899,316 5,100 90,000 4,600 107,585 1,810,987 285 Energy Consery Fund 263,569 499,046 913,079 1,675,694 301 Storm Drain Revenue 348,100 800 210,000 558,900 313 CV Housing Authority Fund 583,385 87,800 1,100 372,660 155,968 1,200,913 316 Public Educational & Govt. Fee 300,000 300,000 600,000 318 Redv Obligation Retirement Fnd 80,270 1,780 718,540 6,040 5,601,309 6,407,939 319 Housing - SA 63,500 2,127,569 6,000 2,197,069 311 CDBG Housing Program Fund 100 46,000 46,100 314 Emergency Shelter Grnt Prog 11,495 141,775 153,270 321 Home Program Fund 5,000 854,710 62,473 922,183 333 Comm Dev Block Grant Fund 11,427 377,215 12,946 758,243 468,292 378,817 2,006,940 341 Public Liability Trust 713,439 940,000 1,653,439 342 CFD 11 -M RHR McMillin 108,246 21,101 23,174 152,521 343 CFD 12 -M Village 7 MM 263,891 138,120 67,951 469,962 344 CFD 13 -M Otay Ranch Village 2 125,345 69,800 27,785 222,930 345 CFD 12M Village 7 Otay Ranch 234,492 165,500 63,269 463,261 346 CFD 14M- A - EUC Millenia 126,905 10,500 1,000 138,405 352 Bay Blvd Ldscpng Dist Fund 2,848 7,666 1,780 12,294 353 Eastlake Maintenance District 227,623 116,616 64,504 408,743 354 Open Space District #1 54,787 39,670 17,677 112,134 355 Open Space District #2 21,534 6,925 7,143 35,602 356 Open Space District #3 34,759 28,041 11,969 74,769 357 Open Space District #4 70,431 26,550 20,003 116,984 358 Open Space District #5 34,618 17,905 12,106 64,629 359 Open Space District #6 20,647 13,000 10,402 44,049 361 Open Space District #7 4,974 2,240 4,237 11,451 362 Open Space District #8 60,455 27,060 17,434 104,949 363 Open Space District #9 59,150 31,802 16,300 107,252 364 Open Space District #10 57,852 33,034 16,890 107,776 365 Open Space District #11 117,524 67,675 29,043 214,242 367 Open Space District #14 217,536 185,260 68,760 471,556 N O N U7 O U7 N OC G. ro w x co ro w va co w 368 Open Space District #15 30,240 10,375 9,497 50,112 369 Open Space District #17 Fund 21,032 5,859 26,891 371 Open Space District #18 Fund 77,928 66,485 27,103 171,516 372 Open Space District #20 Fund 1,035,393 397,904 230,921 1,664,218 373 Open Space District #23 Fund 33,096 9,815 8,519 51,430 374 Open Space District #24 Fund 38,885 20,115 7,643 66,643 375 Open Space District #26 12,683 4,125 3,846 20,654 376 Open Space District #31 Fund 74,398 50,708 35,066 160,172 378 CFD 07M Improvement Areas 375,798 128,346 157,632 661,776 379 CFD 08M Village 6 507,062 288,490 198,903 994,455 380 CFD 09M OR Vlg II Brookfld She 648,455 216,193 160,619 1,025,267 382 CFD 99 -2 Otay Ranch Vlg 1 West 516,528 198,575 110,588 825,691 386 Otay Ranch Preserve 451,000 54,000 505,000 387 CFD 98 -3 Sunbow 2 558,143 200,924 125,314 884,381 388 Community Facility Dst 97 -1 OR 1,525,124 454,475 324,078 2,303,677 389 Otay Ranch Village 1,2,6,7,12 6,528 5,220 2,343 14,091 391 Central Garage Fund 1,045,349 2,333,955 172,572 400 3,552,276 392 Equip Replacement Fund 330,000 330,000 393 Technology Replacement 284,576 284,576 398 Workers Compensation 733,610 2,669,000 3,402,610 408 Development Services Fund 5,734,293 268,532 5,000 98,812 9,500 1,187,557 7,303,694 413 Trunk Sewer Capital Reserve 200,000 406,000 606,000 414 Sewer Service Revenue 4,537,477 22,860,471 315 45,000 1,813,680 3,141,270 13,000 32,411,213 428 Sewer Facility Replacement 150,000 1,800,000 1,950,000 431 Tele Cyn Sewer Basin Plan Dif 1,129,047 1,129,047 432 Poggi Cyn Sewer Basin DIF 10,000 10,000 433 Salt Creek Sewer Basin DIF 27,500 1,120,000 1,091,264 2,238,764 442 CDBG Section 108 Loan 758,243 758,243 451 Long -term Advances DSF - City 150,000 150,000 452 Equipment Lease 452,952 452,952 453 Energy Conservation Loans 811,853 811,853 472 2004 COP Civ Ctr Proj Ph I 5,000 2,394,514 2,399,514 473 2006 COP Civ Ctr Proj Ph 2 6,000 1,270,960 1,276,960 474 2010 COP Refinance 5,000 2,487,319 2,492,319 N O N U7 O U7 N OC G. ro w x co b w co w 475 2014 Refunding COP 517 AD2004 -1 Dixon Drive 518 AD2005 -1 Tobias Drive 542 Tele Cyn Drainage Plan Dif Fun 571 PFDIF General Administration 572 PFDIF - Civic Center Expansion 573 Police Facilities Remodel 574 Corporation Yard Relocation 576 Fire Suppression Sys Expansion 587 Otay Ranch VLG Ped Ramp DIF 588 OR Vlg11 Pedestrian Bridge DIF 591 Transportation DIF 654 RDA 2008 TARBS ProjFund - SA 662 06 ERAF - SA 663 06 TABs Series A - SA 664 06 TABs Series B - SA 665 08 TABs - SA 692 Long -term Advances DSF -RDA S 715 Park Land Acquisition Fund 716 Western -Park Acquisition & Dev 717 Resident. Construct /Conver Fnd 736 Other Transportation Programs GRAND TOTAL ALL FUNDS 5,000 3,607,556 9,598 90,597 55,300 300,000 3,625,369 1,600,000 844,420 1,045,000 3,000 3,200 265,000 1,274,067 127,795 5,000 1,013,570 5,000 988,559 5,000 1,528,637 350,000 1,927,748 50,000 25,000 25,000 515,000 678.205 2,955,845 9,048,589 131,147,346 55,450,025 9,148,589 30,173,795 3,206,329 35,507,779 27,492,069 3,612,556 9,598 90,597 200,000 355,300 3,625,369 1,600,000 844,420 1,045,000 3,000 3,200 3,220,845 1,274,067 127,795 1,018,570 993,559 1,533,637 2,277,748 75,000 540,000 678,205 9,048,589 2,220,872 294,346,804 SCHEDULE OF REVENUES 2015 -05 -26 Agenda Packet Page 838 2015 -05 -26 Agenda Packet Page 839 N O H N O N N a a w ro w x co Property Taxes 3000 Property Tax 24,518,260 27,876,534 27,451,232 28,930,278 29,896,924 TOTAL $24,518,260 $27,876,534 $27,451,232 $28,930,278 $29,896,924 b w 0 27, 275, 753 Other Local Taxes 3010 Sales Tax 3020 Franchise Fees 3030 Utility Taxes 3040 Business License Tax 3050 Transient Occupancy Tax 3070 Real Property Transfer Tax 6,500,000 TOTAL 1,260,622 Licenses and Permits 3100 Licenses 3120 Dev/ Improvement Permits 3140 Regulatory Permits 2,890,853 TOTAL b w 0 27, 275, 753 Fines, Forfeitures, Penalties 3200 Community Appearance Penalties 3210 Law Enforcement Penalties 3240 Parking Penalties 3250 Other Penalties 3350 TOTAL b w 0 27, 275, 753 Use of Money & Property 3300 Investment Earnings 3310 Sale of Real Property 3320 Sale of Personal Property 3330 Rental /Lease of Equipment 3350 Rental /Lease of Land and Space 3370 Rental /Lease of Buildings 6,500,000 TOTAL b w 0 27, 275, 753 28,627, 785 29, 985,219 ` 31,120, 026 31, 830, 591 8,400,178 9,266,768 8,845,067 M10,341,588 11,426,283 3,465,136 4,428,794 17,525,294 - 6,500,000 6,500,000 1,169,307 1,260,622 1,328,554 - 1,313,405 1,429,643 2,295,675 2,471,252 2,632,774 - 2,806,654 2,890,853 779,981 1,125,252 949,603 ! 816,492 832,822 $43,386,030 $47,180,473 $61,266,511 $52,898,165 $54,910,192 138,036 143,871 150,879 135,145 132,600 268,412 275,133 267,938 189,210 209,317 816,321 976,515 896,628 907,622 967,530 $1,222,769 $1,395,519 $1,315,445 $1,231,977 $1,309,447 675,789 368,357 494,211 r 688,116 420,700 288,439 245,808 99,627 351,191 300,100 263,007 213,162 279,084 255,505 250,000 128,534 175,620 136,814 108,500 163,000 $1,355,769 $1,002,947 $1,009,736 $1,403,312 $1,133,800 633,057 143,601 356,840 300,364 356,912 0 0 0 33,486 26,866 58,043 17,509 46,728 49,262 52,449 63,347 976,237 957,564 963,843 1,071,291 870,214 1,024,197 1,091,740 1,224,295 $2,916,634 $2,201,490 $2,522,915 $2,582,701 $2,676,806 N O N Ul O Ul N Oq 7 O ro w x co ro w oc N Revenue from Other Agencies 3010 Sales Tax 724,185 784,116 0 0 0 3400 State Grants 537,892 667,263 567,615 E� -,331 652,000 3440 State Tax Sharing 236,354 231,546 226,938 1_-,938 243,309 3460 Motor Vehicle License Fees 16,288,377 16,253,826 16,773,957 946 18,597,204 3480 State Reimbursements 2,765 4,331 51,284 -,683 300,408 3500 Federal Grants 844,496 641,161 486,626 ,183 885,824 3580 Federal Reimbursements 25,415 66,936 16,804 42,540 42,000 3600 Other Agency Grants 120,655 793,595 6,845 7,500 2,000 3690 Other Agency Revenue 498,305 669,407 1,348,040 1,109,525 664,000 TOTAL $19,278,444 $20,112,181 $19,478,109 $20,365,646 $21,386,745 Charges for Services 3700 Zoning Fees 995,614 1,080,516 1,449,571 1,075,655 1,213,064 3720 Document Fees 115,910 111,791 87,522 88,474 133,337 3730 Plan Checking Fees 46,311 10,973 6,790 4,899 12,000 3740 Inspection Fees 454,026 594,411 366,158 82,775 322,580 3770 Other Dev Fees 3,902 205 9,886 600 0 3800 Animal Shelter Contracts 1,578,374 1,716,857 1,667,067 111549,692 1,686,600 3830 Services to the Port District 789,223 943,530 957,682 1 973,965 986,625 3900 Recreation Program Fees 791,257 922,828 868,164 1 777,657 938,940 3950 Class Admission Fees 304,773 424,640 403,218 362,445 407,780 3970 Referral Fees 278,588 311,153 164,768 1 246,068 188,000 4200 Staff Services Reimbursements 1,971,852 1,896,995 1,684,748 W 1,571,081 1,491,750 4300 Fees for Other Services 251,152 343,609 276,190 229,273 320,500 TOTAL $7,580,982 $8,357,508 $7,941,764 $7,362,584 $7,701,176 Other Revenue 4410 DIF Reimbursements 124,544 361,512 426,705 _ �� 269,808 4420 Transit Reimbursements 272,739 283,196 292,419 _ - 0 4430 Redev Agency Reimbursements 239,209 630 4,468 0 4440 Open Space /Assess Dist Reimb 2,057,317 2,095,461 1,884,161 2,049,410 4450 CIP Reimbursements 3,337,138 3,921,563 4,273,692 4,097,905 4460 CDBG /Home Reimbursements 741,110 709,814 443,524 68,100 ro w oc N N O N U7 O U7 N OC G. ro w x co ro w oc N 4480 Other City Funds Reimbursement 3,078,903 3,360,321 2,874,051 4,738,970 3,274,754 4600 Assessments 359 0 0 0 0 4700 Collection Charges 343,568 368,520 61,864 47,278 80,000 4800 Sale of Goods 0 1,718 4,643 250 4900 Other Revenue 1,392,583 1,920,944 1,010,207 860,720 TOTAL $11,587,470 $13,023,679 $11,275,734 $12,442,719 $10,700,947 Transfers In 5221 Tfr In from Gas Tax Fund 3,561,417 4,439,428 4,259,428 4,259,428 4,259,428 5223 Tfr In from TUT Common 0 0 82,923 610,000 0 5234 Tfr In Fire Equip Lease Fund 0 0 559,846 634,333 833,510 5245 Tfr In from Traffic Safety 534,140 492,669 366,325 ` 399,140 399,140 5256 Tfr In from Asset Seizure Fund 120,000 120,000 120,000 EM6- 1,-?n nnn 0 5261 Tfr In from CA Library Service 25,000 0 0 0 5265 Tfr In CA Dept of Educ Sec 321 0 0 2,352 _ 0 0 5272 Tfr In from Federal Grants 0 50,000 0 _ 0 0 5274 Tfr in - ARRA 0 0 9,889 n 0 5282 Tfr In from Environmental Sery 107,781 107,585 107,585 107,585 5285 Tfr In from Energy Cons 0 0 25,000 0 5301 Tfr In from Storm Drain Rev 240,463 240,463 240,463 0 5313 Tfr in from CV Hsng Authority 210,227 166,085 147,555 155,968 5402 Tfr In from Transit/CVT Fund 37,849 34,750 34,750 0 5408 Tfr In from Dev Svcs Fund 1,224,416 1,175,724 1,143,810 JL_ 1,- 1,187,557 5414 Tfr In from Sewer Service Rsry 3,142,406 2,824,121 2,723,850 =2,- 3,045,133 5452 Tfr In fr Equipment Cap Lease 0 0 0 _ - 0 5471 Tfr In from 03 Ref COP Fund 0 0 271,002 _ 'NNE% J�� 0 5571 Tfr In from PFDIF -Gen Admin 0 0 2,715 _ 0qll�� 0, 5651 Tfr In from SW /TCII /OV Proj 79,486 0 0 0,� 0 5725 Tfr In from IDA Fund 0 10,622 0 01� 0 i 5736 Tfr in from Other Trans Progra 67,158 0 0 NMMMML 0 10000&0 5739 Tfr In from Prop 42 500,000 0 0 TOTAL $9,850,343 $9,661,447 $10,097,493 $10,584,475 $9,988,321 TOTAL -100 GENERAL FUND $121,696,701 $130,811,778 $142,358,939 $137,801,856 $139,704,359 N O N U7 O U7 N OC G. ro w x co TOTAL -220 TRANSPORTATION FUNDS $8,368,737 $13,679,344 $22,098,666 $12,092,523 $11,728,500 3300 Investment Earnings 39,754 17,745 16,914 0 0 3760 Other Dev Fees 8,522,655 7,720,822 8,022,857 0 0 TOTAL -230 DEVELOPER DEPOSITS $8,562,409 $7,738,567 $8,039,771 $0 $0 232 FLEXIBLE SPENDING ACCOUNT TOTAL - 232 FLEXIBLE SPENDING ACCOUNT $14,015 $0 $0 $0 $0 ME= 1111111110 3690 Other Agency Revenue 214,000 214,000 1,316,182 1,534,429 1,475,907 TOTAL -234 ADVANCED LIFE SUPPORT FUND $214,000 $214,000 $1,316,182 $1,534,429 $1,475,907 235 LEGISLATIVE COUNCIL FUND TOTAL -235 LEGISLATIVE COUNCIL FUND $0 $80,000 $0 $0 $0 ro w oc w 3010 Sales Tax 3,485,185 6,196,036 898,172 _5,522,000 5,886,000 3300 Investment Earnings 34,166 (36,887) 95,894 _ 0 0 3400 State Grants 0 0 4,319,400 ^ 0 3440 State Tax Sharing 3,567,956 5,666,602 7,890,623 5,514,157 3600 Other Agency Grants 989,803 1,582,504 294,165 90,000 128,343 3770 Other Dev Fees 145,470 240,397 207,016 0 200,000 4440 Open Space /Assess Dist Reimb 1,781 3,679 1,778 0 0 4450 CIP Reimbursements 25,806 24,945 24,085 jMr- 0 0 4480 Other City Funds Reimbursement 91,027 2,068 330,081 ` 288,900 0 5000 Transfers In 27,543 0 8,037,452 32,192 0 TOTAL -220 TRANSPORTATION FUNDS $8,368,737 $13,679,344 $22,098,666 $12,092,523 $11,728,500 3300 Investment Earnings 39,754 17,745 16,914 0 0 3760 Other Dev Fees 8,522,655 7,720,822 8,022,857 0 0 TOTAL -230 DEVELOPER DEPOSITS $8,562,409 $7,738,567 $8,039,771 $0 $0 232 FLEXIBLE SPENDING ACCOUNT TOTAL - 232 FLEXIBLE SPENDING ACCOUNT $14,015 $0 $0 $0 $0 ME= 1111111110 3690 Other Agency Revenue 214,000 214,000 1,316,182 1,534,429 1,475,907 TOTAL -234 ADVANCED LIFE SUPPORT FUND $214,000 $214,000 $1,316,182 $1,534,429 $1,475,907 235 LEGISLATIVE COUNCIL FUND TOTAL -235 LEGISLATIVE COUNCIL FUND $0 $80,000 $0 $0 $0 ro w oc w N O N U7 O U7 N OC G. ro w x co TOTAL -240 PARKING $583,487 $601,814 $666,963 $585,000 $585,000 3160 Other Permits 21,582 42,489 39,897 W 35,000 - 3240 Parking Penalties 238,925 209,862 232,857 111MM0,000 3300 Investment Earnings 6,711 (4,433) 12,518 ' 0 3350 Rental /Lease of Land and Space 316,269 353,896 379,690 350111300 4900 Other Revenue 0 0 2,001 0 TOTAL -240 PARKING $583,487 $601,814 $666,963 $585,000 $585,000 TOTAL -250 PUBLIC SAFETY $6,508,704 $5,621,031 $6,401,379 $7,934,734 $6,885,215 3300 Investment Earnings 3,431 (1,254) 1,820 JJW 0 0 3440 State Tax Sharing 938 0 0 0 0 5000 Transfers In 0 59,545 0 0 0 TOTAL -260 LIBRARY /CULTURAL ARTS $4,369 $58,291 $1,820 $0 $0 3300 Investment Earnings 0 (187) 1,521 0 0 IV 3400 State Grants 0 514,588 157,945 29,116 60,000 w va 3210 Law Enforcement Penalties 423,487 426,373 427,460 437,640 437,640 3300 Investment Earnings 17,429 (5,281) 10,352 0 0 3320 Sale of Personal Property 5,980 0 0 0 0 3350 Rental /Lease of Land and Space 9,073 11,232 12,173 20,000 20,000 3400 State Grants 709,365 353,753 383,103 470,588 401,014 3500 Federal Grants 5,009,067 3,900,989 4,302,468 M,534,587 5,003,387 3600 Other Agency Grants 0 741,765 869,705 W 997,052 425,032 3690 Other Agency Revenue 5,769 7,757 170,476 Jj&L 255,636 194,272 4200 Staff Services Reimbursements 0 52,975 144,800 122,445 123,046 4800 Sale of Goods 10,626 2,920 1,868 10,000 10,000 4900 Other Revenue 212,804 13,026 36,221 50,000 50,000 5000 Transfers In 105,104 115,522 42,753 36,786 220,824 TOTAL -250 PUBLIC SAFETY $6,508,704 $5,621,031 $6,401,379 $7,934,734 $6,885,215 3300 Investment Earnings 3,431 (1,254) 1,820 JJW 0 0 3440 State Tax Sharing 938 0 0 0 0 5000 Transfers In 0 59,545 0 0 0 TOTAL -260 LIBRARY /CULTURAL ARTS $4,369 $58,291 $1,820 $0 $0 3300 Investment Earnings 0 (187) 1,521 0 0 IV 3400 State Grants 0 514,588 157,945 29,116 60,000 w va N O N U7 O U7 N OC G. ro w x co 3500 Federal Grants 3,065,521 1,446,120 1,531,268 3,283,209 1,254,484 3600 Other Agency Grants 0 314,264 14,737 0 0 4200 Staff Services Reimbursements 0 129,650 117,055 120,000 73,500 4480 Other City Funds Reimbursement 15,854 17,200 1,633 0 0 4900 Other Revenue 1,665,221 2,219,471 23,434 22,333 22,333 5000 Transfers In 52,226 52,226 43,060 64,689 62,326 4200 TOTAL -270 SUNDRY GRANTS & MISC $4,798,822 $4,693,332 $1,890,653 $3,519,347 $1,472,643 TOTAL -280 CONSERVATION $2,911,618 $2,986,953 $4,700,319 $6,256,768 $4,035,358 3120 3300 Investment Earnings 13,929 (7,528) 16,680 0 0 3400 State Grants (165,161) 240,962 174,843 1,289,744 987,385 3500 Federal Grants 1,669 20,539 0 0 0 3600 Other Agency Grants 797,107 1,341,043 1,050,492 3,502,745 1,675,694 3700 Zoning Fees 0 0 128 JIM& 2,000 0 4200 Staff Services Reimbursements 1,645 3,290 1,830 _ 0 0 4300 Fees for Other Services 1,031,634 1,068,434 1,102,615 W1,262,279 1,262,279 4480 Other City Funds Reimbursement 331,243 306,839 232,231 200,000 110,000 4900 Other Revenue 899,552 0 2,121,500 ■ 0 0 5000 Transfers In 0 13,374 0 ■ 0 0 TOTAL -280 CONSERVATION $2,911,618 $2,986,953 $4,700,319 $6,256,768 $4,035,358 TOTAL -301 STORM DRAIN REVENUE $613,445 $586,346 $597,534 $584,250 $584,250 k 3300 Investment Earnings 30,003 (5,868) 5,355 0 0 3700 Zoning Fees 0 25,215 18,349 0 0 3760 Other Dev Fees 0 0 372,660 0 0 ro w oc U1 N 3120 Dev/ Improvement Permits 9,455 (1,180) 0 23,750 23,750 3230 Environmental Fines Penalties 47,065 600 (4,341) 5,000 5,000 3300 Investment Earnings 1,428 (961) 1,850 0 0 4020 Storm Drain Fees 555,497 587,887 600,025 555,500 TOTAL -301 STORM DRAIN REVENUE $613,445 $586,346 $597,534 $584,250 $584,250 k 3300 Investment Earnings 30,003 (5,868) 5,355 0 0 3700 Zoning Fees 0 25,215 18,349 0 0 3760 Other Dev Fees 0 0 372,660 0 0 ro w oc U1 N N O N U7 O U7 N OC G. ro w x co 4200 Staff Services Reimbursements 0 93,568 1,000 0 0 4300 Fees for Other Services 71,092 111,730 230,781 71,000 100,J00 4430 Redev Agency Reimbursements 260,920 83,238 160,044 178,532 1 M 4460 CDBG /Home Reimbursements 361,138 281,346 405,254 441,339 5� 4480 Other City Funds Reimbursement 0 46,365 56,421 R7 nnn 0 4900 Other Revenue 0 45,556 100,008 M _ 5000 Transfers In 143,882 97,000 0 0 0 4900 TOTAL -310 HOUSING PROGRAM $867,035 $778,150 $1,349,872 $777,871 $849,889 5000 11111111 IIJI�I 111�� i • • 0 237,450 0 1,927,748 3020 Franchise Fees 0 627,766 654,842 600,000 600,000 3300 Investment Earnings 0 (675) 4,924 0 0 TOTAL - 316 PUBLIC EDUCATIONAL & GOVT. FEE $0 $627,091 $659,766 $600,000 $600,000 TOTAL -318 REDV OBLIGATION RETIREMENT $16,952,562 $5,075,028 $1,076,168 $6,505,446 $6,407,939 3000 Property Tax 3,233,347 4,456,770 1,065,528 = 0 NW9 3300 Investment Earnings 80,514 (23,899) 10,640 � 0 0 4450 CIP Reimbursements 504 0 0 NIN- 0 0 4480 Other City Funds Reimbursement 742,116 322 0 0 0 4900 Other Revenue 1,865,730 0 0 0 0 5000 Transfers In 11,030,351 641,835 0 0 0 TOTAL -318 REDV OBLIGATION RETIREMENT $16,952,562 $5,075,028 $1,076,168 $6,505,446 $6,407,939 ro w oc 3300 Investment Earnings (2,451) 653,730 423,627 = 0 0 3310 Sale of Real Property 0 0 56,612 �0 0 3350 Rental /Lease of Land and Space 7,484 17,232 14,944 15,000 4200 Staff Services Reimbursements 25 0 20,979 MW Nll� 0 4420 Transit Reimbursements 0 0 2,192 lift 0 0 4480 Other City Funds Reimbursement 0 400 0 0 0 4900 Other Revenue 0 90,052 103,872 r 0 0 5000 Transfers In 0 237,450 0 1,927,748 ro w oc N O N U7 O U7 N OC G. ro w x co TOTAL -319 HOUSING -SA $5,058 $998,864 $622,226 $1,945,633 $1,942,748 TOTAL -320 COMM DEV BLOCK GRANTS $3,296,750 $3,329,037 $3,483,133 $3,516,720 $3,108,091 4480 Other City Funds Reimbursement 0 0 304,810 ho 0 0 5000 Transfers In 1,653,439 1,164,000 1,321,009 a�a nnn 520,000 TOTAL-341 PUBLIC LIABILITY TRUST $1,653,439 $1,164,000 $1,625,819 $429,000 $520,000 23 M 3300 Investment Earnings 10,200 40,950 12,067 0 0 3350 Rental /Lease of Land and Space 0 0 0 0 79,000 3500 Federal Grants 3,168,968 3,055,233 3,415,216 11,862,234 3,019,493 3720 Document Fees 0 30 0 0 0 4200 Staff Services Reimbursements 250 102 140 0 0 4460 CDBG /Home Reimbursements 0 14,114 0 0 0 4480 Other City Funds Reimbursement 6,302 7,227 441 n 0 0 4900 Other Revenue 111,030 183,843 55,269 0 0 5000 Transfers In 0 27,538 0 30,981 9,598 TOTAL -320 COMM DEV BLOCK GRANTS $3,296,750 $3,329,037 $3,483,133 $3,516,720 $3,108,091 4480 Other City Funds Reimbursement 0 0 304,810 ho 0 0 5000 Transfers In 1,653,439 1,164,000 1,321,009 a�a nnn 520,000 TOTAL-341 PUBLIC LIABILITY TRUST $1,653,439 $1,164,000 $1,625,819 $429,000 $520,000 TOTAL -350 OPEN SPACE DISTRICT $11,446,573 $12,060,033 $9,373,749 $11,862,234 $12,759,483 23 M 3300 Investment Earnings 139,889 (82,226) 169,089 0 0 3350 Rental /Lease of Land and Space 0 0 57 0 0 4600 Assessments 11,306,684 12,142,259 9,203,769 11,862,234 12,759,483 4900 Other Revenue 0 0 834 0 0 TOTAL -350 OPEN SPACE DISTRICT $11,446,573 $12,060,033 $9,373,749 $11,862,234 $12,759,483 ro w oc 23 M 3300 Investment Earnings 17,756 (8,832) 13,613 0 0 3320 Sale of Personal Property 23,705 1,582 1,576 0 0 4200 Staff Services Reimbursements 17,810 26,203 55,542 20,000 35,000 4420 Transit Reimbursements 259,563 274,715 368,561 173,480 0 4480 Other City Funds Reimbursement 0 0 175 0 0 ro w oc N O N U7 O U7 N OC G. ro w x co b w co 3780 Other State Revenue 0 6,796 7,845 7 7,000 3120 Dev/ Improvement Permits 1,710,314 2,399,259 1,735,402 EL 1i 1,973,215 3700 Zoning Fees 2,440,674 2,477,356 2,312,855 2,581,288 3720 Document Fees (500) 208 154 500 3730 Plan Checking Fees 846,298 939,330 1,360,370 3740 Inspection Fees 73,514 71,213 69,449 3770 Other Dev Fees 1,186 890 1,038 297 4200 Staff Services Reimbursements 5,991 13,062 32,493 0 0 co 4900 5000 Other Revenue Transfers In TOTAL -390 FLEET MANAGEMENT 3,232,772 0 $3,551,606 3,233,517 404,000 $3,931,185 3,224,285 0 $3,663,752 ' 3,455,264 R 0 $3,648,744 3,456,585 330,000 $3,821,585 • � ® i k (4,223) 7,903 _ 0 0 3400 State Grants 5000 Transfers In 0 0 600,000 0 0 0 TOTAL -393 TECHNOLOGY REPLACEMENT $0 $0 $600,000 $0 $0 2,667,576 0 4900 Other Revenue 124,554 303,968 212,196 U 4480 Other City Funds Reimbursement 6,968 6,757 2,318 F 25,000 4900 Other Revenue 2,855,153 2,903,074 2,106,790 3,224,426 5000 Transfers In 2,990,161 0 0 0 0 TOTAL -398 WORKERS COMPENSATION $5,852,282 $2,909,831 $2,109,108 $2,652,549 $3,249,426 TOTAL - 400 TRANSIT $6,384,208 $6,236,990 $6,716,388 $7,054,188 $0 3300 Investment Earnings 6,543 (4,223) 7,903 _ 0 0 3400 State Grants 3,524,426 3,095,626 3,800,358 M,200,372 0 4200 Staff Services Reimbursements 1,061 0 4,654 0 4300 Fees for Other Services 2,670,477 2,841,619 2,667,576 0 4900 Other Revenue 124,554 303,968 212,196 U 0 5000 Transfers In 57,147 0 23,701 0 0 TOTAL - 400 TRANSIT $6,384,208 $6,236,990 $6,716,388 $7,054,188 $0 N O H N O N N a a w ro w x co 4410 DIF Reimbursements 47,938 53,360 50,065 %49,112 35,000 4430 Redev Agency Reimbursements 44,927 0 0 0 0 4440 Open Space /Assess Dist Reimb 20,210 19,066 2,170 - 7,850 0 4450 CIP Reimbursements 424,870 229,741 271,980 2,265 85,000 4460 CDBG /Home Reimbursements 19,235 15,818 1,123 0 0 4480 Other City Funds Reimbursement 250,313 428,167 493,551 0,553 339,000 4900 Other Revenue 30,930 70 117 - 11,904 0 5000 Transfers In 485,989 439,238 628,181 8,137 526,614 4410 TOTAL -408 DEVELOPMENT SERVICES $6,401,889 $7,093,574 $6,966,793 $6,294,268 $7,303,694 TOTAL - 410 SEWER $34,347,601 $35,333,364 $35,778,053 $36,947,925 $34,826,972 3300 Investment Earnings 85,053 (48,615) 102,104 0 0 4350 Sewer/ Drainage DIF 174,667 645,015 268,092 120,000 70,000 b TOTAL - 430 SEWER DIF $259,720 $596,400 $370,196 $120,000 $70,000 w 3120 Dev/ Improvement Permits 9,160 40,500 11,120 3300 Investment Earnings 1,182,093 314,191 1,373,068 3700 Zoning Fees 8,197 4,811 21,976 4000 Sewer Fees 32,504,389 34,319,945 33,039,714 4040 Industrial Waste Fees 500 6,100 (2,525) 4100 Pump Station Fees 36,206 48,616 50,625 0 0 4200 Staff Services Reimbursements 33,579 3,448 4,550 0 0 4410 DIF Reimbursements 1,537 2,425 7,200 0 0 4440 Open Space /Assess Dist Reimb 1,878 25,962 58,818 0 4450 CIP Reimbursements 19,945 51,602 20,717 �IkL 15,000 4480 Other City Funds Reimbursement 0 42,434 0 . 0 4600 Assessments 1,610 700 441 111110MEPW 0 4700 Collection Charges 414,778 464,725 626,854 310,000 310,000 4900 Other Revenue 10,905 4,327 0 - 0 0 5000 Transfers In 122,824 3,578 565,495 3,400,000 1,279,047 TOTAL - 410 SEWER $34,347,601 $35,333,364 $35,778,053 $36,947,925 $34,826,972 3300 Investment Earnings 85,053 (48,615) 102,104 0 0 4350 Sewer/ Drainage DIF 174,667 645,015 268,092 120,000 70,000 b TOTAL - 430 SEWER DIF $259,720 $596,400 $370,196 $120,000 $70,000 w N O N U7 O U7 N OC G. ro w x co TOTAL - 440 DEBT SERVICE - CITY $4,928,233 $2,164,584 $2,887,582 $3,797,019 $5,111,760 pill q111111 11 11111 1pil 11111 1111 �- 3300 Investment Earnings 286,417 276,668 111,629 0 — 4900 Other Revenue 0 0 49,457,111 0 — 5000 Transfers In 8,244,395 7,769,142 12,842,973 9,764,400 i TOTAL - 470 DS - CV PUBLIC FINANCING AUTHORITY $8,530,812 $8,045,810 $62,411,713 $9,764,400 $9,760,794 3300 Investment Earnings 21,290 (12,228) 24,792 0 0 4600 Assessments 19,646 18,836 18,784 19,045 19,285 TOTAL -500 ASSESS DIST IMPROVEMENTS $40,936 $6,608 $43,576 $19,045 $19,285 3300 Investment Earnings 57,952 (32,730) 66,577 0 0 TOTAL -542 TELEGRAPH CANYON DRAINAGE DIF $57,952 $(32,730) $66,577 $0 $0 3300 Investment Earnings 80 (679) 1,055 0 0 3600 Other Agency Grants 0 1,149 0 0 4480 Other City Funds Reimbursement 0 0 145,494 183,262 5000 Transfers In 4,928,153 2,164,114 2,741,033 4,928,498 TOTAL - 440 DEBT SERVICE - CITY $4,928,233 $2,164,584 $2,887,582 $3,797,019 $5,111,760 pill q111111 11 11111 1pil 11111 1111 �- 3300 Investment Earnings 286,417 276,668 111,629 0 — 4900 Other Revenue 0 0 49,457,111 0 — 5000 Transfers In 8,244,395 7,769,142 12,842,973 9,764,400 i TOTAL - 470 DS - CV PUBLIC FINANCING AUTHORITY $8,530,812 $8,045,810 $62,411,713 $9,764,400 $9,760,794 3300 Investment Earnings 21,290 (12,228) 24,792 0 0 4600 Assessments 19,646 18,836 18,784 19,045 19,285 TOTAL -500 ASSESS DIST IMPROVEMENTS $40,936 $6,608 $43,576 $19,045 $19,285 3300 Investment Earnings 57,952 (32,730) 66,577 0 0 TOTAL -542 TELEGRAPH CANYON DRAINAGE DIF $57,952 $(32,730) $66,577 $0 $0 TOTAL -560 PUBLIC FACILITIES DIF $3,491,092 $6,588,559 $4,961,340 $2,990,338 $2,850,000 b w co N 0 3300 Investment Earnings 130,523 (220,306) 256,279 0 0 3320 Sale of Personal Property 0 0 3,730 0 0 4330 Public Facilities DIF 3,122,331 6,808,865 4,554,723 4900 Other Revenue 238,238 0 146,608 — 5000 Transfers In 0 0 0 TOTAL -560 PUBLIC FACILITIES DIF $3,491,092 $6,588,559 $4,961,340 $2,990,338 $2,850,000 b w co N 0 N O N U7 O U7 N OC G. ro w x co 3300 Investment Earnings 31,790 (18,213) 40,741 0 4380 OR Pedestrian Bridge DIF 267,302 251,872 345,770 90,000 - TOTAL - 580 PEDESTRIAN BRIDGE DIF $299,092 $233,659 $386,511 $90,000 $90,000 TOTAL -590 TRANSPORTATION DIF $1,736,443 $2,520,446 $2,177,203 $898,211 $1,831,600 3300 Investment Earnings 143,385 (79,286) 138,990 119,290 0 4340 Transportation DIF 1,348,766 2,527,830 2,001,362 772,477 1,831,600 4900 Other Revenue 3,286 71,902 0 0 0 5000 Transfers In 241,006 0 36,851 6,444 0 TOTAL -590 TRANSPORTATION DIF $1,736,443 $2,520,446 $2,177,203 $898,211 $1,831,600 TOTAL -600 REDEVELOPMENT AGENCY $19,543,000 $(147) $578 $0 $0 ..i` 3300 Investment Earnings 51,801 101,938 102,377 0 0 4480 Other City Funds Reimbursement 0 22 541 0 0 5000 Transfers In 4,630,791 8,917,421 3,122,996 5,698,895 5,601,309 TOTAL - 660 DEBT SERVICE - SUCCESSOR AGENCY $4,682,592 $9,019,381 $3,225,914 $5,698,895 $5,601,309 i 3300 Investment Earnings 9,234 0 0 0 0 5000 Transfers In 744,919 0 0 0 0 ro w oc co N F+ 3000 Property Tax 7,954,428 0 0 ` 0 0 3300 Investment Earnings 532,421 (147) 578 0 0 3350 Rental /Lease of Land and Space 10,433 0 0 0 0 4200 Staff Services Reimbursements 50 0 0 0 0 4450 CIP Reimbursements 30,000 0 0 0 0 4480 Other City Funds Reimbursement 23,383 0 0 0 0 5000 Transfers In 10,992,285 0 0 0 0 TOTAL -600 REDEVELOPMENT AGENCY $19,543,000 $(147) $578 $0 $0 ..i` 3300 Investment Earnings 51,801 101,938 102,377 0 0 4480 Other City Funds Reimbursement 0 22 541 0 0 5000 Transfers In 4,630,791 8,917,421 3,122,996 5,698,895 5,601,309 TOTAL - 660 DEBT SERVICE - SUCCESSOR AGENCY $4,682,592 $9,019,381 $3,225,914 $5,698,895 $5,601,309 i 3300 Investment Earnings 9,234 0 0 0 0 5000 Transfers In 744,919 0 0 0 0 ro w oc co N F+ N O N U7 O U7 N OC G. ro w x co TOTAL - 670 SW TAX AGREEMENT $754,153 $0 $0 $0 $0 ii 3300 Investment Earnings 47,471 0 0 0 0 4900 Other Revenue 20 0 0 0 0 5000 Transfers In 24,751,523 0 0 0 0 TOTAL - 680 DEBT SEW - REDEVELOPMENT AGENCY $24,799,014 $0 $0 $0 $0 TOTAL -700 MISC CAPITAL PROJECTS $2,372,783 $4,816,711 $3,517,123 $1,302,336 $1,303,205 • k 0= ® i 3060 Residential Construction Tax 261,252 413,552 209,075 i 374,557 325,505 3300 Investment Earnings 219,787 (130,310) 310,082 0 0 4370 Park Acquisition & Develop Fee 705,759 4,433,468 2,614,066 M,261,877 625,000 4900 Other Revenue 60,000 0 0 0 0 5000 Transfers In 1,125,985 100,001 383,900 0 352,700 TOTAL -700 MISC CAPITAL PROJECTS $2,372,783 $4,816,711 $3,517,123 $1,302,336 $1,303,205 • k 0= ® i 3300 Investment Earnings 37,415 (4,664) 5,085 0 0 3400 State Grants 2,939,684 324,684 362,284 EF 0 0 3500 Federal Grants 1,105,162 1,972,197 1,232,550 M,261,877 9,048,589 3600 Other Agency Grants 30,208 (72,231) 0 0 0 4900 Other Revenue 0 0 300,000 0 0 5000 Transfers In 69,639 79,838 0 0 0 TOTAL -730 OTHER TRANSPORTATION PROGRAMS $4,182,108 $2,299,824 $1,899,919 $5,261,877 $9,048,589 GRAND TOTAL ALL FUNDS $320,713,240 $282,867,708 $344,045,285 $282,485,606 $277,547,600 b w co N N ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 853 FUND BALANCE PROJECTIONS 2015 -05 -26 Agenda Packet Page 854 2015 -05 -26 Agenda Packet Page 855 N O H N O N N a �c a w ro w x co ro w va co N 100 General Fund 14,554,698 139,704,359 154,259,057 (138,685,343) (1,019,016) 14,554,698 TOTAL - GENERAL FUND 14,554,698 139,704,359 154,259,057 (138,685,343) (1,019,016) 14,554,698 • Housing Funds 313 CV Housing Authority 984,246 849,889 1,834,135 (1,200,913) 633,222 TOTAL 984,246 849,889 1,834,135 (1,200,913) 633,222 TOTAL - HOUSING 984,246 849,889 1,834,135 (1,200,913) 633,222 Successor Agency 318 Redv Obligation Retirement Fnd 2,001,459 6,407,939 8,409,398 (6,407,939) 2,001,459 319 Housing - SA 4,472,224 1,942,748 6,414,972 (2,197,069) 4,217,903 654 RDA 2008 TARBS ProjFund - SA 1,329,985 1,329,985 (1,274,067) 55,918 661 05 ERAF - SA 1,017 1,017 1,017 662 06 ERAF - SA 1,244 127,795 129,039 (127,795) 1,244 663 06 TABs Series A- SA 1,027,955 1,018,570 2,046,525 (1,018,570) 1,027,955 664 06 TABs Series B - SA 1,029,620 993,559 2,023,179 (993,559) 1,029,620 665 08 TABs - SA 1,545,679 1,533,637 3,079,316 (1,533,637) 1,545,679 692 Successor Agency Long -term Debt (34,313,246) 1,927,748 (32,385,498) (2,277,748) (34,663,246) TOTAL (22,904,063) 13,951,996 (8,952,067) (15,830,384) (24,782,451) TOTAL - SUCCESSOR AGENCY (22,904,063) 13,951,996 (8,952,067) (15,830,384) (24,782,451) N O H N O N N a �c a w ro w x co w va co N J Transit Funds 402 Transit CVT 14 14 14 403 Transit Capital Projects 17,006 17,006 17,006 TOTAL 17,020 17,020 17,020 Sewer Funds 411 Sewer Income 2,005,115 2,005,115 2,005,115 413 Trunk Sewer Capital Reserve 55,662,354 2,379,047 58,041,401 (200,000) (406,000) 57,435,401 414 Sewer Service Revenue 26,679,097 30,991,199 57,670,296 (32,398,213) (13,000) 25,259,083 428 Sewer Facility Replacement 9,906,618 1,456,726 11,363,344 (150,000) (1,800,000) 9,413,344 431 Tel Cyn Sewer Basin Plan DIF 1,129,047 1,129,047 (1,129,047) 0 432 Poggi Cyn Sewer Basin DIF 2,454,200 20,000 2,474,200 (10,000) 2,464,200 433 Salt Creek Sewer Basin DIF 2,209,444 50,000 2,259,444 (1,147,500) (1,091,264) 20,680 TOTAL 100,045,875 34,896,972 134,942,847 (35,034,760) (3,310,264) 96,597,823 408 Development Services Fund (882,261) 7,303,694 6,421,433 (7,303,694) (882,261) TOTAL - ENTERPRISE FUNDS 99,180,634 42,200,666 141,381,300 (42,338,454) (3,310,264) 95,732,582 i Transportation Funds 221 Gas Tax 5,908,137 5,514,157 11,422,294 (4,259,428) (4,331,000) 2,831,866 223 TUT Common Fund 624,268 624,268 (615,902) 8,366 225 Traffic Signal 1,255,371 200,000 1,455,371 (15,000) (644,000) 796,371 227 Transportation Sales Tax 2,123,663 6,014,343 8,138,006 (30,000) (7,215,343) 892,663 TOTAL 9,911,439 11,728,500 21,639,939 (4,920,330) (12,190,343) 4,529,266 Parking Funds 241 Parking Meter 938,145 585,000 1,523,145 (399,148) 1,123,997 243 Town Centre I- Parking District 40,815 40,815 40,815 TOTAL 978,960 585,000 1,563,960 (399,148) 1,164,812 N O f+ Ul O Ul N OC G. ro w x co w va co N co Public Safety Funds 245 Traffic Safety 32,343 437,640 469,983 (437,640) 32,343 251 Suppl Law Enforcement Services 142,458 401,014 543,472 (543,384) 88 252 Police Department Grants 65,209 5,665,483 5,730,692 (5,726,767) 3,925 253 Inmate Welfare Fund 35,000 30,000 65,000 (60,000) 5,000 254 Local Law Enf Block Grant 0 91,078 91,078 (91,078) 0 256 Asset Seizure 500,000 260,000 760,000 (705,000) 55,000 TOTAL 775,010 6,885,215 7,660,225 (7,563,869) 96,356 Library and Cultural Arts Funds 261 California Library Service Act 19,090 19,090 19,090 262 Public Library Act 16 16 16 267 McCandliss Cultural Arts 12,074 12,074 (1,600) 10,474 TOTAL 31,180 31,180 (1,600) 29,580 Sundry Grant Funds 269 Other Grant Fund 216 216 216 272 Federal Grants Fund 0 1,316,810 1,316,810 (1,316,810) 0 273 State Grants Fund 15,843 60,000 75,843 (75,843) 0 274 ARRA Fund 229 22,333 22,562 (22,333) 229 TOTAL 16,288 1,399,143 1,415,431 (1,414,986) 445 Conservation Funds 281 Waste Management & Recycling 0 987,385 987,385 (987,385) 0 282 Environmental Services Fund 1,118,449 1,372,279 2,490,728 (1,810,987) 679,741 285 Energy Conservation 23,693 1,675,694 1,699,387 (1,675,694) 23,693 TOTAL 1,142,142 4,035,358 5,177,500 (4,474,066) 703,434 N O f+ Ul O Ul N OC G. ro w x co Communitv Development Block Grant 311 CDBG Housing Program 314 Emergency Shelter Grant Prog 321 Home Program 325 CDBG Program - Income Projects 333 FY2000 Comm Dev Block Grant TOTAL w va co N ID 204,927 Open Space District Funds 342 CFD 11 -M RHR McMillin 343 CFD 12 -M VIg7 344 CFD 13 -M VIg2 345 CFD 12M - OR Village 7 346 CFD 12M - OR Village 7 351 Town Centre Landscaping Dist 1 352 Bay Blvd Landscaping Dist 353 Eastlake Maintenance Dist #1 354 -376 Open Space District #1 - #31 378 CFD 07M- Eastlk 11 Woods, Vista 379 CFD 08M -VIg 6 McM & Oty Ranch 380 CFD 09M OR VIg 11 382 CFD 99 -2 Otay Ranch VIg 1 We 383 Town Ctr Business Impry Distr 386 Otay Ranch Acquisition Dist 387 CFD 98 -3 Sunbow 2 388 Comm Facility 97 -1 (Otay Rnch) 389 Otay Ranch Village 1,2,6,7,12 (469,962) TOTAL w va co N ID 204,927 46,100 251,027 (46,100) 204,927 2,995 153,270 156,265 (11,495) (141,775) 2,995 0 922,183 922,183 (922,183) 0 63,826 63,826 63,826 30,000 1,986,538 2,016,538 (1,159,831) (847,109) 9,598 301,748 3,108,091 3,409,839 (2,139,609) (988,884) 281,346 277,307 152,521 429,828 (152,521) 277,308 746,632 469,962 1,216,594 (469,962) 746,632 336,089 222,930 559,019 (222,930) 336,089 531,381 463,261 994,642 (463,261) 531,381 0 138,405 138,405 (138,405) 0 25,126 25,126 25,126 45,259 12,294 57,553 (12,294) 45,259 365,473 408,743 774,216 (408,743) 365,473 2,633,411 3,677,029 6,310,440 (3,677,030) 2,633,410 1,147,748 661,776 1,809,524 (661,776) 1,147,748 2,203,217 994,455 3,197,672 (994,455) 2,203,218 859,734 1,025,267 1,885,001 (1,025,267) 859,734 945,238 825,691 1,770,929 (825,691) 945,238 9,563 9,563 9,563 426,776 505,000 931,776 (505,000) 426,776 910,719 884,381 1,795,100 (884,381) 910,719 3,294,249 2,303,677 5,597,926 (2,303,677) 3,294,249 111,564 14,091 125,655 (14,091) 111,564 14,869,486 12,759,483 27,628,969 (12,759,483) 14,869,487 N O H N O N N a �c a w ro w x co w va co 0 Miscellaneous 270 Mobile Home Rent Review Program 201,104 73,500 274,604 (93,000) 181,604 316 Public Educational & Govt. Fee 579,048 600,000 1,179,048 (600,000) 579,048 TOTAL 780,152 673,500 1,453,652 (693,000) 760,652 301 Storm Drain Revenue 8,667 584,250 592,917 (558,900) 34,017 TOTAL - SPECIAL REVENUE FUNDS 28,815,072 41,758,540 70,573,612 (34,924,991) (13,179,227) 22,469,395 234 Advance Life Support Fund 332,054 1,475,907 1,807,961 (1,261,791) 546,170 235 Legislative Council Fund 80,000 80,000 (80,000) 0 341 Public Liability Trust 1,685,200 520,000 2,205,200 (1,653,439) 551,761 391 Central Garage 154,186 3,491,585 3,645,771 (3,552,276) 93,495 392 Equipment Replacement 54,606 330,000 384,606 (330,000) 54,606 393 Technology Replacement 287,226 287,226 (284,576) 2,650 398 Workers Compensation 0 3,249,426 3,249,426 (3,402,610) (153,184) TOTAL - INTERNAL SERVICE FUNDS 2,593,272 9,066,918 11,660,190 (10,564,692) 1,095,498 N O f+ Ul O Ul N OC G. ro w x co w va co N Assessment District Funds 501 Otay Lakes Rd AD 88 -2 Improv 95,924 95,924 95,924 503 East H St AD 87 -1 Improv 126,839 126,839 126,839 507 Otay Valley Rd AD 90 -2 Improv 83,212 83,212 83,212 508 AD97 -2 555,633 555,633 555,633 511 Otay My Rd Fee Recovery Dist 921,786 921,786 921,786 512 EL Greens II AD 94 -1 Improv 1,138,590 1,138,590 1,138,590 515 Twin Oaks Ave AD 96 -1 Improv 22,019 22,019 22,019 516 Oxford St AD 97 -1 Improv 4,373 4,373 4,373 517 AD2004 -1 Dixon Drive 151 9,598 9,749 (9,598) 51 518 AD2005 -1 Tobias Drive 80,910 9,687 90,597 (90,597) 0 TOTAL 3,029,437 19,285 3,048,722 (100,195) 2,948,527 Development Impact Fee Funds 542 Tel Cyn Drainage Plan DIF 9,081,672 9,081,672 (200,000) 8,881,672 567 -582 DIF - Public Facilities 6,629,495 2,850,000 9,479,495 (7,470,089) 2,009,406 587 DIF -OR Village Pedestrian Ramp 1,028,860 40,000 1,068,860 (3,000) 1,065,860 588 OR VIg11 Pedestrian Bridge DIF 3,074,435 50,000 3,124,435 (3,200) 3,121,235 591 Transportation DIF 11,874,551 1,750,000 13,624,551 (265,000) (2,955,845) 10,403,706 593 Western Transportation DIF Fund 145,443 81,600 227,043 227,043 TOTAL 31,834,456 4,771,600 36,606,056 (7,741,289) (3,155,845) 25,708,922 Misc Capital Project Funds 715 PAD Fund - Eastern 28,866,015 600,000 29,466,015 (75,000) 29,391,015 716 PAD Fund - Western 782,786 25,000 807,786 (540,000) 267,786 717 Resid. Construction /Conversion 10,611 678,205 688,816 (678,205) 10,611 718 Library Construction 124,515 124,515 L 124,515 725 Indust. Development Authority 51 51 L 1 TOTAL 29,783,978 1,303,205 31,087,183 (1,293,205) 29,793,978 N O H N O N N a �c a w ro w x co w va co N Other Transportation Funds 735 Transportation Partnership 736 Other Transportation Program 741 Prop 1 B Hwy Safety TOTAL 29,074 29,074 29,074 335,040 9,048,589 9,383,629 (9,048,589) 335,040 45,736 45,736 45,736 409,850 9,048,589 9,458,439 (9,048,589) 409,850 TOTAL - CAPITAL PROJECTS FUNDS 65,057,721 15,142,679 80,200,400 (9,134,689) (12,204,434) 58,861,277 Debt Service - City Funds 442 CDBG Section 108 Loan 540 758,243 758,783 (758,243) 540 449 SD Co Regional Comm Systems 288 288 288 451 Long -term Advances DSF - City (36,852,341) 3,190,000 (33,662,341) (150,000) (33,812,341) 452 KS Fire Equipment Capital Lease 134,627 351,664 486,291 (452,952) 33,339 453 CES Loan Repayment 4,189 811,853 816,042 (811,853) 4,189 TOTAL (36,712,697) 5,111,760 (31,600,937) (2,173,048) (33,773,985) Debt Service - CV Financing Authority 472 2004 COP Civ Ctr Proj Phase 1 2,464,548 2,394,514 4,859,062 (2,399,514) 2,459,548 473 2006 COP Civ Ctr Proj Phase 2 1,319,953 1,270,960 2,590,913 (1,276,960) 1,313,953 474 2010 Refunding COP 2,551,251 2,487,320 5,038,571 (2,492,319) 2,546,252 474 2014 Refunding COP 4,033,600 3,608,000 7,641,600 (3,612,556) 4,029,044 TOTAL 10,369,352 9,760,794 20,130,146 (9,781,349) 10,348,797 TOTAL - DEBT SERVICE FUNDS (26,343,345) 14,872,554 (11,470,791) (11,954,397) (23,425,188) GRAND TOTAL ALL FUNDS 161,938,235 277,547,600 439,485,836 (264,633,863) (29,712,941) 145,139,033 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 863 SCHEDULE OF INTERFUND TRANSFERS 2015 -05 -26 Agenda Packet Page 864 2015 -05 -26 Agenda Packet Page 865 N O N U7 O U7 N OC G. ro w x co 221 Gas Tax Reimbursement for street related staff time, materials, and utilities - 234 Advanced Life Support Program Staff time reimbursement 245 Traffic Safety Reimbursement for Police fleet maintenance costs 282 Environmental Services Reimbursement for allocated overhead costs 107,585 313 CV Housing Authority Reimbursement for allocated overhead costs 155,968 408 Development Services Fund Reimbursement for allocated overhead costs 1,187,557 414 Sewer Service Revenue Reimbursement for Sewer related staff time and materials 3,045,133 TOTAL TRANSFERS IN -100 GENERAL FUND $9,988,321 .� 100 General Fund Funding for personnel costs 162,989 251 Suppl Law Enforcement Services Funding for personnel costs 19,538 TOTAL TRANSFERS IN - 252 POLICE DEPARTMENT GRANTS $182,527 100 General Fund General Fund support of grant funded positions 38,297 TOTAL TRANSFERS IN - 254 LOCAL LAW ENF BLOCK GRANT $38,297 100 General Fund General Fund match for grant 62,326 TOTAL TRANSFERS IN - 272 FEDERAL GRANTS FUND $62,326 Pooled Cash Repayment of SERAF Loan from Low and Mod Income Housing 1,927,748 fund to former Redevelopment Agency TOTAL TRANSFERS IN - 319 HOUSING - SA $1,927,748 ME= 1110 517 AD2004 -1 Dixon Drive Project cost reimbursement from AD 9,598 TOTAL TRANSFERS IN - 333 COMM DEV BLOCK GRANT FUND $9,598 ro w oc co N O N U7 O U7 N OC G. ro w x co 100 General Fund General Fund transfer for public liability expenses 440,000 414 Sewer Service Revenue Sewer Fund transfer for public liability expenses 80,000 TOTAL TRANSFERS IN - 341 PUBLIC LIABILITY TRUST $520,000 100 General Fund Funding for vehicle replacement 330,000 TOTAL TRANSFERS IN - 392 EQUIPMENT REPLACEMENT $330,000 IZIM= 1110 100 General Fund Staff time reimbursement 110,477 110 414 Sewer Service Revenue TOTAL TRANSFERS IN - 408 DEVELOPMENT SERVICES FUND Permit subsidy Staff time reimbursement 400,000 16,137 $526,614 0=1111111 . k 431 Tele Cyn Sewer Basin DIF Return SW224 project funds transferred in excess 1,129,047 TOTAL TRANSFERS IN - 413 TRUNK SEWER CAPITAL RESERVE $1,129,047 428 Sewer Facility Replacement Staff time reimbursement 150,000 TOTAL TRANSFERS IN - 414 SEWER SERVICE REVENUE $150,000 • • is i« • 333 Comm Dev Block Grant Fund Debt service payment - Section 108 loan 758,243 TOTAL TRANSFERS IN - 442 CDBG SEC108 LOAN $758,243 ro w oc co N O N U7 O U7 N OC G. ro w x co 301 Storm Drain Revenue Interfund loan payment - Trunk Sewer Capl Res -Reso 18996 433 Salt Creek Sewer Basin DIF Interfund loan payment - Trunk Sewer Capl Res- FY00 -01 Budget 1 572 Civic Center Expansion 576 Fire Suppression Sys Expansion 716 Western -Park Acquisition & Dev Reso Interfund loan payment 300,000 Interfund loan payment 1,045,000 Interfund loan payment 515,000 TOTAL TRANSFERS IN - 451 LONG -TERM ADVANCES DSF - CITY $3,190,000 100 General Fund Debt Sery Pymt - Fire Equipment 297,403 TOTAL TRANSFERS IN - 452 EQUIPMENT LEASE FUND $297,403 100 General Fund Debt service payment - California Energy Commission loan 682,852 TOTAL TRANSFERS IN - 453 ENERGY LOAN REPAYMENTS $682,852 100 General Fund Debt service payment - Civic Center Phase 1 314,771 572 Civic Center Expansion Debt service payment - Civic Center Phase 1 1,401,538 717 Resid. Construction /Conversion Debt service payment -Western Chula Vista Infrastructure 678,205 TOTAL TRANSFERS IN - 472 2004 COP CIV CTR PROJ PHASE 1 $2,394,514 100 General Fund Debt service payment - Civic Center Phase 2 281,575 572 Civic Center Expansion Debt service payment - Civic Center Phase 2 989,385 TOTAL TRANSFERS IN - 473 2006 COP CIV CTR PROJ PHASE 2 $1,270,960 ro w oc co co N O N U7 O U7 N OC G. ro w x co 100 General Fund Debt Service Payment - Civic Center Phase 3/2000 COP Refunding Corp Yard 572 Civic Center Expansion Debt Service Payment - Civic Center Phase 3/2000 COP 934,446 Refunding Corp Yard 574 Corporation Yard Relocation Debt Service Payment - Civic Center Phase 3/2000 COP 844,420 Refunding Corp Yard TOTAL TRANSFERS IN - 474 2010 COP REFINANCE $2,487,320 ro w oc co ID 100 General Fund Debt Service Payment - 2002 COP Refunding - Police Facility 573 Police Facilities Remodel Debt Service Payment - 2002 COP Refunding - Police Facility TOTAL TRANSFERS IN -475 2014 REFUNDING COP $3,608,000 318 Redv Obligation Retirement Fnd Debt service payment TAT %95 TOTAL TRANSFERS IN - 662 06 ERAF - SA $127,795 318 Redv Obligation Retirement Fnd Debt service payment 1,018,570 TOTAL TRANSFERS IN - 663 06 TABS SERIES A - SA $1,018,570 ME 0 318 Redv Obligation Retirement Fnd Debt service payment 993,559 TOTAL TRANSFERS IN - 664 06 TABS SERIES B - SA $993,559 318 Redv Obligation Retirement Fnd Debt service payment 1,533,637 TOTAL TRANSFERS IN -665 08 TABS -SA $1,533,637 ro w oc co ID N O N U7 O U7 N OC G. ro w x co 318 Redv Obligation Retirement Find Repayment of SERAF Loan from Low and Mod Income Housing mor"Ig fund to former Redevelopment Agency TOTAL TRANSFERS IN - 692 LONG -TERM ADVANCES DSF -RDA SA $1,927,748 • • • 100 General Fund General Fund transfer for debt service expense 262,103 518 AD2005 -1 Tobias Drive TOTAL TRANSFERS IN - 717 RESID. CONSTRUCTION /CONVERSION GRAND TOTAL ALL FUNDS ro w oc co 0 Project cost reimbursement from the assessment district 90,597 $352,700 $35,507,779 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 871 AUTHORIZED POSITIONS BY DEPARTMENT 2015 -05 -26 Agenda Packet Page 872 2015 -05 -26 Agenda Packet Page 873 i 1.00 - - 1.00 Assistant City Clerk Administrative Secretary - - 1.00 1.00 Chief Of Staff - 1.00 - 1.00 Chief Service Officer 1.00 - - 1.00 Constituent Services Manager 2.00 (2.00) - - Councilperson 4.00 - - 4.00 Executive Secretary 1.00 - - 1.00 Mayor 1.00 - - 1.00 Office Specialist (Myr / @Will) 1.00 - - 1.00 Policy Aide - 1.00 - 1.00 Sr Council Asst 4.00 - - 4.00 CITY COUNCIL TOTAL 14.00 - 1.00 15.00 CITY CLERK TOTAL 5.00 - 1.00 6.00 CITY ATTORNEY 1.00 - - 1.00 Assistant City Clerk City Clerk 1.00 - - 1.00 Deputy City Clerk 1 1.00 - 1.00 2.00 Records Manager 1.00 - - 1.00 Sr Records Specialist 1.00 - - 1.00 CITY CLERK TOTAL 5.00 - 1.00 6.00 CITY ATTORNEY Asst City Attorney 1.00 - - 1.00 City Attorney (Elected) 1.00 - - 1.00 Deputy City Attorney II 3.00 - - 3.00 Deputy City Attorney III 3.00 - - 3.00 Law Office Manager 1.00 - - 1.00 Legal Assistant 2.00 - - 2.00 Sr Asst City Attorney 1.00 - - 1.00 Sr Legal Assistant 1.00 - - 1.00 Sr Risk Management Specialist - - 1.00 1.00 CITY ATTORNEY TOTAL 13.00 - 1.00 14.00 IN - i s Asst City Manager (C) 1.00 - - 1.00 Asst To City Mgr /CI Manager 1.00 (1.00) - - City Manager 1.00 - - 1.00 Cultural Arts Prog Mgr - - 0.75 0.75 Dep City Manager 1.00 1.00 - 2.00 Dir Of Econ Development 1.00 - - 1.00 2015 -05 -26 Agenda Packet Page 874 Envirommntl Resource Mgr - - 1.00 1.00 Executive Secretary 1.00 - - 1.00 Marketing & Communications Mgr 1.00 - - 1.00 Performance & Org Dev Mgr - 1.00 (1.00) - Principal Economic Dev Spec 1.00 - - 1.00 Project Coordinator I - - 1.00 1.00 Public Information Specialist 1.00 - - 1.00 Real Property Manager - - 1.00 1.00 Special Events Coordinator 1.00 - - 1.00 Sr Administrative Secretary 1.00 - (1.00) - Sr Economic Dev Specialist 1.00 - - 1.00 Sr Graphic Designer 1.00 - - 1.00 Sr Webmaster - - 1.00 1.00 Webmaster 1.00 - (1.00) - ADMINISTRATION TOTAL 14.00 1.00 1.75 16.75 INFORMATION TECHNOLOGY SRVCS TOTAL 17.00 - - 17.00 Dir Of Info Tech Svcs 1.00 - - 1.00 GIS Manager 1.00 - - 1.00 GIS Specialist 3.00 - (1.00) 2.00 Info Tech Support Specialist 3.00 - - 3.00 Information Technology Manager 1.00 - - 1.00 Ops &Telecom Mgr 1.00 - - 1.00 Sr Application Support Spec 1.00 - - 1.00 Sr Info Tech Support Spec 3.00 - 1.00 4.00 Sr Programmer Analyst 2.00 - - 2.00 Telecommunications Specialist 1.00 - - 1.00 INFORMATION TECHNOLOGY SRVCS TOTAL 17.00 - - 17.00 2015 -05 -26 Agenda Packet Page 875 Asst Dir Human Resources 1.00 (1.00) - - Benefits Manager 1.00 - - 1.00 Dir Of Human Resources - 1.00 - 1.00 HR Analyst 2.00 - - 2.00 HR Technician 2.00 - - 2.00 Performance & Org Dev Mgr - - 1.00 1.00 Principal HR Analyst - 1.00 - 1.00 Risk Manager 1.00 - - 1.00 Senior HR Technician 1.00 - - 1.00 Sr Fiscal Office Specialist 1.00 - 1.00 2.00 Sr HR Analyst 3.00 (1.00) - 2.00 2015 -05 -26 Agenda Packet Page 875 Sr Risk Management Specialist 3.00 - (1.00) 2.00 HUMAN RESOURCES TOTAL 15.00 - 1.00 16.00 FINANCE TOTAL 28.00 (1.00) - 27.00 Accountant 1.00 - - 1.00 Accounting Assistant 6.00 - - 6.00 Accounting Technician 5.00 - - 5.00 Assoc Accountant 2.00 (2.00) - - Asst Dir Of Finance 1.00 (1.00) - - Budget & Analysis Manager 1.00 - - 1.00 Business License Rep 1.00 - - 1.00 Collections Supervisor 1.00 - - 1.00 Dir Of Finance 1.00 - - 1.00 Finance & Purchasing Mgr - 1.00 - 1.00 Finance Manager 1.00 (1.00) - - Fiscal & Management Analyst 4.00 - - 4.00 Fiscal Office Specialist - 1.00 - 1.00 Procurement Specialist 1.00 - - 1.00 Sr Accountant 1.00 1.00 - 2.00 Sr Procurement Specialist 1.00 - - 1.00 Treasury And Business Manager - 1.00 - 1.00 Treasury Manager 1.00 (1.00) - - FINANCE TOTAL 28.00 (1.00) - 27.00 ANIMAL CARE FACILITY TOTAL 21.00 - - 21.00 2015 -05 -26 Agenda Packet Page 876 Animal Adoption Counselor 1.00 - - 1.00 Animal Care Assistant 5.00 (5.00) - - Animal Care Fac Administrator 1.00 - - 1.00 Animal Care Specialist - 5.00 - 5.00 Animal Care Supervisor 1.00 - - 1.00 Animal Control Officer 3.00 - - 3.00 Animal Control Officer Supvsr 1.00 - - 1.00 Fiscal Office Specialist 1.00 - - 1.00 Office Specialist 0.50 - - 0.50 Registered Veterinary Tech 3.50 - - 3.50 Sr Animal Care Assistant 2.00 (2.00) - - Sr Animal Care Specialist - 2.00 - 2.00 Sr Office Specialist 1.00 - - 1.00 Veterinarian (Permitted) 1.00 - - 1.00 ANIMAL CARE FACILITY TOTAL 21.00 - - 21.00 2015 -05 -26 Agenda Packet Page 876 PLANNING AND BUILDING SERVICES TOTAL 20.25 - - 20.25 F-X#WM Administrative Technician 1.00 - - 1.00 Assistant Dir Development Svcs 1.00 - - 1.00 Assoc Planner 1.75 - - 1.75 Code Enf Offcr II 6.00 - - 6.00 Development Svcs Dept Director 1.00 - - 1.00 Office Specialist 1.00 - - 1.00 Planning Manager 0.50 - - 0.50 Planning Technician 2.00 - - 2.00 Principal Planner 1.00 - - 1.00 Sr Administrative Secretary 1.00 - - 1.00 Sr Code Enforcement Off 2.00 - - 2.00 Sr Planner 1.00 - - 1.00 Sr Planning Technician 1.00 - - 1.00 PLANNING AND BUILDING SERVICES TOTAL 20.25 - - 20.25 F-X#WM Administrative Services Managr 1.00 (1.00) - - Automated Fingerprint Tech 1.00 1.00 - 2.00 Chief Of Police 1.00 - - 1.00 Civilian Background Investigtr 1.00 - - 1.00 Community Sery Officer 8.00 - - 8.00 Crime Laboratory Manager 1.00 - - 1.00 Detention Facility Manager 1.00 - - 1.00 Evidence Control Asst 2.00 - (2.00) - Facility & Supply Specialist 1.00 - - 1.00 Fiscal Office Specialist 0.50 - 0.50 1.00 Forensics Specialist 2.00 - - 2.00 Latent Print Examiner 2.00 - - 2.00 Parking Enforcement Officer 2.00 (1.00) - 1.00 Peace Officer 146.00 - - 146.00 Police Admin Svcs Administrato - 1.00 - 1.00 Police Agent 49.00 - - 49.00 Police Captain 3.00 - - 3.00 Police Comm Systems Manager 1.00 - - 1.00 Police Data Specialist 2.00 - - 2.00 Police Dispatcher 20.00 - - 20.00 Police Dispatcher Supervisor 6.00 - - 6.00 Police Lieutenant 9.00 - - 9.00 Police Records Specialist 6.50 - 2.00 8.50 Police Records Transcriptionis 2.00 - (2.00) - Police Sergeant 23.00 - - 23.00 2015 -05 -26 Agenda Packet Page 877 Police Services Officer 10.00 - - 10.00 Police Support Services Mgr 1.00 - - 1.00 Police Svcs Officer Supervisor 2.00 - - 2.00 Police Technology Specialist 1.00 - - 1.00 Principal Management Analyst 1.00 - - 1.00 Public Safety Analyst 3.00 - - 3.00 Range Master 0.50 (0.50) - - Secretary 3.00 - - 3.00 Sr Administrative Secretary 1.00 - - 1.00 Sr Fiscal Office Specialist 1.00 - - 1.00 Sr Office Specialist 4.00 - - 4.00 Sr Police Data Specialist 1.00 - - 1.00 Sr Police Technology Spec - 1.00 - 1.00 Sr Property & Evidence Spec - - 2.00 2.00 Sr Public Safety Analyst 1.00 - - 1.00 Training Programs Spec 1.00 - - 1.00 POLICE TOTAL 321.50 0.50 0.50 322.50 3.00 - (2.00) 1.00 Deputy Fire Chief Facility & Supply Specialist 1.00 - - 1.00 Fire Battalion Chief (112 Hr) 6.00 - - 6.00 Fire Battalion Chief (80 Hr) - - 1.00 1.00 Fire Captain (112 Hr) 33.00 - - 33.00 Fire Captain (80 Hr) 2.00 - - 2.00 Fire Chief 1.00 - - 1.00 Fire Division Chief 1.00 - - 1.00 Fire Eng (112 Hr) 33.00 - - 33.00 Fire Engineer (80 Hr) 1.00 - - 1.00 Fire Insp /Invest 1 1.00 - - 1.00 Fire Insp /Invest 11 5.00 - - 5.00 Fire Prev Eng /Invest 1.00 - - 1.00 Fire Prevention Aide - - 1.00 1.00 Firefighter (112 Hr) 38.00 (4.00) - 34.00 Firefighter /Paramedic (112 Hr) 4.00 4.00 - 8.00 Principal Management Analyst 1.00 - - 1.00 Public Safety Analyst 1.00 - - 1.00 Secretary 1.00 (1.00) - - Sr Administrative Secretary 1.00 - - 1.00 Sr Fire Insp /Invest 1.00 - - 1.00 Sr Office Specialist 1.00 - - 1.00 Training Programs Spec - 1.00 - 1.00 2015 -05 -26 Agenda Packet Page 878 FIRE TOTAL 136.00 - - 136.00 WORKS PUBLIC Admin Analyst II 2.00 (2.00) - - Administrative Secretary 1.00 - - 1.00 Administrative Services Managr 1.00 - - 1.00 Assistant Surveyor II 1.00 (1.00) - - Assoc Engineer 10.00 - - 10.00 Assoc Land Surveyor - 1.00 - 1.00 Asst Dir Of Public Works 1.00 - - 1.00 Asst Director Of Engineering 1.00 - - 1.00 Asst Engineer 1.00 - - 1.00 Bldg Project Manager 1.00 - - 1.00 Conservation Specialist 1 1.00 - 2.00 3.00 Construction & Repair Mgr 1.00 (1.00) - - Construction & Repair Supvsr - 1.00 - 1.00 Custodial & Facilities Manager 1.00 (1.00) - - Custodial Supervisor 3.00 (1.00) - 2.00 Custodian 9.50 2.00 - 11.50 Dir Of Public Works 1.00 - - 1.00 Electrician 2.00 - - 2.00 Electronics Technician 1.00 - - 1.00 Engineering Tech 11 1.50 - 0.50 2.00 Environmental Hlth Specialist 2.00 - - 2.00 Environmental Resource Spec 1.00 - (1.00) - Envirommntl Resource Mgr 1.00 - (1.00) - Equipment Operator 2.00 - - 2.00 Facilities Manager - 1.00 - 1.00 Fiscal Office Specialist 1.00 - (1.00) - Gardener 11 22.00 - - 22.00 Grafitti Abatement Coord - - 1.00 1.00 HVAC Techncian 2.00 - - 2.00 Lead Custodian 5.00 (1.00) - 4.00 Locksmith 2.00 - - 2.00 Maintenance Worker I - - 1.00 1.00 Maintenance Worker 11 9.00 - - 9.00 Management Analyst 1.00 2.00 - 3.00 Open Space Inspector 5.00 - - 5.00 Open Space Manager 1.00 - - 1.00 Park Ranger Supervisor 1.00 - - 1.00 Parks Operations Manager 1.00 - - 1.00 Parks Supervisor 4.00 - - 4.00 2015 -05 -26 Agenda Packet Page 879 Plumber 1.00 - - 1.00 Principal Civil Engineer 3.00 - - 3.00 Pub Works Specialist 1.00 - - 1.00 Public Works Insp II 6.00 - - 6.00 Public Works Manager 1.00 - - 1.00 Public Works Supervisor 2.00 - - 2.00 Pump Maint Technician 4.00 - 1.00 5.00 Pump Maintenance Supervisor 1.00 - - 1.00 Real Property Manager 1.00 - (1.00) - Secretary 1.00 - - 1.00 Signing &Striping Supervisor 1.00 - - 1.00 Sr Administrative Secretary 1.00 - - 1.00 Sr Civil Engineer 5.00 - - 5.00 Sr Engineering Technician 2.00 - - 2.00 Sr Fiscal Office Specialist 1.00 - 1.00 2.00 Sr Gardener 9.00 - - 9.00 Sr HVAC Technician 1.00 - - 1.00 Sr Landscape Inspector 1.00 - - 1.00 Sr Maintenance Worker 8.00 - - 8.00 Sr Management Analyst 1.00 - - 1.00 Sr Open Space Inspector 1.00 - - 1.00 Sr Pub Works Specialist 1.00 - (1.00) - Sr Public Works Insp 2.00 - - 2.00 Sr Secretary 1.00 - - 1.00 Survey Technician II 1.00 - - 1.00 Traffic Devices Tech 3.00 - - 3.00 Traffic Devices Tech Supv 1.00 - - 1.00 Tree Trimmer Supervisor 1.00 - - 1.00 Wastewater Collections Manager 1.00 - - 1.00 PUBLIC WORKS TOTAL 163.00 - 1.50 164.50 REGREATIVI Administrative Secretary 1.00 - - 1.00 Aquatic Supv 1 1.00 - - 1.00 Aquatic Supv 11 2.00 - - 2.00 Aquatic Supv 111 1.00 - - 1.00 Director Of Recreation 1.00 - - 1.00 Principal Recreation Manager 2.00 - - 2.00 Recreation Supervisor 11 2.00 (2.00) - - Recreation Supervisor 111 5.00 2.00 - 7.00 Sr Fiscal Office Specialist 1.00 - - 1.00 Sr Recreation Mgr 1.00 - - 1.00 2015 -05 -26 Agenda Packet Page 880 RECREATION TOTAL 17.00 - - 17.00 I U ME ME Admin Analyst II 1.00 (1.00) - - Dir Of Library 1.00 - - 1.00 Librarian 1 1.00 - - 1.00 Librarian 11 4.00 1.00 - 5.00 Librarian 111 2.00 - - 2.00 Library Associate 8.50 (1.00) - 7.50 Library Digital Services Mgr 1.00 - - 1.00 Management Analyst - 1.00 - 1.00 Principal Librarian 1.00 - - 1.00 Sr Librarian 2.00 - 1.00 3.00 LIBRARY TOTAL 21.50 - 1.00 22.50 EMS Nurse Coordinator 1.00 - - 1.00 ADVANCED LIFE SUPPORT PROGRAM TOTA 1.00 - - 1.00 POLICE DEPT GRANTS CBAG Deputy Director 1.00 - - 1.00 CBAG Deputy Exec Dir 1.00 - - 1.00 CBAG Director Of IV -LECC 1.00 - - 1.00 CBAG Executive Director 1.00 - - 1.00 FA Admin Analyst II 2.00 - - 2.00 FA Analyst 4.00 - (2.00) 2.00 FA Director Of SD LECC 1.00 - - 1.00 FA Geospatial Intel Analyst 1.00 - - 1.00 FA Graphic Designer /Wbmstr 1.00 - - 1.00 FA Info Security Program Mgr 1.00 - - 1.00 FA LECC IT Manager 1.00 - - 1.00 FA Ntwrk Administrator II 4.00 - - 4.00 FA Program Analyst 1.00 - - 1.00 FA Program Assistant 2.00 - - 2.00 FA Program Manager 2.00 1.00 (2.00) 1.00 FA Public Safety Analyst 2.00 (1.00) (1.00) - FA RCFL Ntwk Engineer 2.00 - - 2.00 FA Sr Intelligence Analyst - - 5.00 5.00 FA Sr Public Safety Analyst 4.00 1.00 (5.00) - 2015 -05 -26 Agenda Packet Page 881 FA Sr Secretary 1.00 - - 1.00 Peace Officer 3.00 - - 3.00 Police Agent 1.00 - - 1.00 Police Comm Relations Spec 1.00 - - 1.00 Police Sergeant 2.00 - - 2.00 POLICE DEPT GRANTS FUND TOTAL 40.00 1.00 (5.00) 36.00 ENVIRONMENTAL SERVICES TOTAL 5.00 - 1.00 6.00 ��:[■ lei+ '�1►[�1��If.�1:[ ■]:�1 ■'�1�1►1�' Emergency Svcs Coordinator 1.00 - - 1.00 GIS Specialist 1.00 1.00 - 2.00 FEDERAL GRANTS FUND TOTAL 2.00 1.00 - 3.00 CV HOUSING AUTHORITY FUND TOTAL 4.00 - - 4.00 4.00 - - 4.00 Environ Svcs Mgr - - 1.00 1.00 Environ Svcs Prog Mgr 1.00 - (1.00) - Recycl Spec I 1.00 - - 1.00 Recycling Specialist II 3.00 - 1.00 4.00 ENVIRONMENTAL SERVICES TOTAL 5.00 - 1.00 6.00 ��:[■ lei+ '�1►[�1��If.�1:[ ■]:�1 ■'�1�1►1�' Housing Manager 1.00 - - 1.00 Project Coordinator II 2.00 - - 2.00 Sr Project Coordinator 1.00 - - 1.00 CV HOUSING AUTHORITY FUND TOTAL 4.00 - - 4.00 4.00 - - 4.00 Equipment Mechanic Fire Apparatus Mech 2.00 - - 2.00 Fiscal Office Specialist 1.00 - - 1.00 Fleet Inventory Control Spec 1.00 - - 1.00 Fleet Manager 1.00 - - 1.00 Sr Equipment Mechanic 1.00 - - 1.00 FLEET MANAGEMENT TOTAL 10.00 - - 10.00 ITETTIMM Transit Manager 1.00 - (1.00) - TRANSIT CVT TOTAL 1.00 - (1.00) 2015 -05 -26 Agenda Packet Page 882 DEVELOPMENT SERVICES FUND TOTAL 45.50 - (1.00) 44.50 KTRX WE 2.00 - - 2.00 Assoc Engineer Assoc Engineer 3.00 - - 3.00 Assoc Plan Check Engineer - 3.00 - 3.00 Assoc Planner 4.00 - - 4.00 Building Inspection Mgr - - 1.00 1.00 Building Inspector II 4.00 - - 4.00 Building Inspector III 1.00 - - 1.00 Building Off /Code Enf Mgr 1.00 - - 1.00 Development Services Tech 1 1.00 - - 1.00 Development Svcs Tech Iii 6.00 - - 6.00 Devlpmt Svcs Counter Mgr 1.00 - - 1.00 Engineering Tech 11 1.00 - - 1.00 Landscape Architect 2.50 - - 2.50 Landscape Planner 11 1.00 - (1.00) - Plan Check Supervisor 1.00 - - 1.00 Planning Manager 1.00 - - 1.00 Plans Examiner 3.00 (3.00) - - Principal Civil Engineer 1.00 - - 1.00 Principal Planner 2.00 - - 2.00 Secretary 1.00 - - 1.00 Sr Building Inspector 1.00 - - 1.00 Sr Engineering Technician 1.00 - - 1.00 Sr Office Specialist 2.00 - (1.00) 1.00 Sr Plan Check Tech - - 1.00 1.00 Sr Planner 4.00 - (1.00) 3.00 Sr Project Coordinator 1.00 - - 1.00 Sr Secretary 1.00 - - 1.00 Transportation Engineer W /Cert 1.00 - - 1.00 DEVELOPMENT SERVICES FUND TOTAL 45.50 - (1.00) 44.50 KTRX WE 2.00 - - 2.00 Assoc Engineer Engineering Tech II 2.00 - - 2.00 Equipment Operator 3.00 - - 3.00 Maintenance Worker II 18.00 - - 18.00 Pub Works Specialist 1.00 - - 1.00 Public Works Supervisor 4.00 - - 4.00 Sr Civil Engineer 1.00 - - 1.00 Sr Fiscal Office Specialist 1.00 - - 1.00 Sr Maintenance Worker 14.00 - - 14.00 2015 -05 -26 Agenda Packet Page 883 SEWER TOTAL 46.00 - - 46.00 NON-GENERAL FUND SUBTOTAL dik 154.50 2.00 (6.00) 150.50 TOTAL AUTHORIZED POSITIONS 960.75 2.50 2.75 966.00 2015 -05 -26 Agenda Packet Page 884 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 885 APPENDIX Fiscal Policies Investment Policies Debt Administration GANN Appropriations Limit Legal Debt Margin Accounting Systems and Budgetary Control List of Acronyms Glossary Chula Vista at a Glance 2015 -05 -26 Agenda Packet Page 886 2015 -05 -26 Agenda Packet Page 887 This section of the budget document reiterates the fiscal policies that were reviewed, acknowledged, or approved /adopted by the City Council. These policies form the overall framework within which the operating budget was formulated. The fiscal policies, most of which are already codified in one form or another, are not considered new or controversial, but are summarized here to assist you to better understand the basis for the resource allocation decisions that were made. General 1. The City's financial assets will be managed in a sound and prudent manner in order to ensure the continued viability of the organization. Q 3. 4 A comprehensive operating and capital budget for all City funds will be developed annually and presented to the City Council for approval. The purpose of the annual budget with be to: a. Identify community needs for essential services. b. Identify the programs and specific activities required to provide these essential services. c. Establish program policies and goals that define the nature and level of program services required. d. Identify alternatives for improving the delivery of program services. e. Identify the resources required to fund identified programs and activities, and enable accomplishment of program objectives. f. Set standards to facilitate the measurement and evaluation of program performance. The City's annual operating budget will be balanced whereby planned expenditures do not exceed anticipated revenues. Recurring revenues will fund recurring expenditures. One -time revenues will be used for capital, reserve augmentation, or other non- recurring expenditures. Fiscal Policies 5. Accounting systems will be maintained in accordance with Generally Accepted Accounting Principles. 6. Investment policy and practice will be in accordance with State statues that emphasize safety and liquidity over yield, including quarterly status reports to the City Council. (Council Policy) 7. City operations will be managed and budgets prepared with the goal of maintaining an available fund balance in the General Fund of no less than fifteen percent of the General Fund operating budget. (Council Policy) 8. General Fund fiscal status reports reflecting comparisons of actual and projected performance with budget allocations for both revenue and expenditures will be presented to the City Council on a quarterly basis. (City Charter) Revenue 1. The City will endeavor to maintain a diversified and stable revenue base in order to minimize the impact to programs from short -term economic fluctuations. 2. Revenue projections will be maintained for the current year and four future fiscal years, and estimates will be based on a conservative, analytical, and objective process. 3. In order to maintain flexibility, except as required by law or funding source, the City will avoid earmarking any restricted revenues for specific purpose or program. 4. The City has established user fees to best ensure that those who use a proprietary service pay for that service in proportion to the benefits received. With few exceptions, such as those services provided for low- income residents, fees have been set to enable the City to recover the full cost of providing those services. (Citywide 2015 -05 -26 Agenda Packet Page 888 Cost Recovery Policy, Council Policy Number 159- 03) 5. User fees will be reviewed and updated on an ongoing basis to ensure that program costs continue to be recovered and that the fees reflect changes in levels of service delivery. (Master Fee Schedule) 6. The City will recover the cost of new facilities and infrastructure necessitated by new development consistent with State law and the City's Growth Management Program. Development Impact Fees will be closely monitored and updated to ensure that they are maintained at a level adequate to recover costs. (GMOC Ordinance) 7. When considering new development alternatives, the City will attempt to determine the fiscal impact of proposed projects, annexations, etc. and ensure that mechanisms are put in place to provide funding for any projected negative impacts on City operations. (GMOC Ordinance) Expenditures 1. Budgetary control will be exercised at the Department /category level, meaning that each department is authorized to spend up to the total amount appropriated for that department within the expenditure categories of Personnel Costs, Supplies & Services, Other Charges, Utilities, and Capital. Transfers of appropriations between expenditure categories of up to $15,000 may be approved by the City Manager. Transfers of appropriations between expenditure categories in excess of $15,000, between departments, and transfers from CIP projects require City Council approval. (City Charter & Council Policy) 2. Appropriations, other than for capital projects, remaining unspent at the end of any fiscal year will be cancelled and returned to Available Fund Balance with the exception of any appropriations encumbered as the result of a valid purchase order or as approved for a specific project or purpose by the City Council or the City Manager. Appropriations for capital projects will necessarily be carried over from year to year until the project is deemed to be complete. (Council Policy) 3. The City will establish and maintain equipment replacement and facility maintenance funds as deemed necessary to ensure that monies are set aside and available to fund ongoing replacement needs. 4. The City will attempt to compensate non - safety employees at rates above the middle of the labor market as measured by the median rate for similar jurisdictions. (Council Policy) Capital Improvement Program (CIP) 1. Major capital projects will be included in a CIP Budget reflecting a five -year period. The CIP budget will be updated annually and presented to City Council for approval. Resources will be formally appropriated (budgeted) for the various projects on an annual basis in accordance with the five -year plan. City Debt Policy & Debt Management 1. The City will consider the use of debt financing primarily for capital improvement projects (CIP) when the project's useful life will exceed the term of the financing and when resources are identified sufficient to fund the debt service requirements. Some exceptions to this CIP driven focus are the issuance of debt such as Pension Obligation Bonds, where the financial benefits are significantly greater than the costs and where the benefits are determined to be a financially prudent option; and short -term instruments such as tax and revenue anticipation notes, which are to be used for prudent cash management purposes. Bonded debt should not be issued for projects with minimal public benefit or support, or to finance normal operating expenses. (Council Policy) If a department has any project which is expected to use debt financing, the department director is responsible for expeditiously providing the Finance Department with reasonable cost 2015 -05 -26 Agenda Packet Page 889 estimates, including specific revenue accounts that will provide payment for the debt service. This will allow the Finance Department to do an analysis of the project's potential impact on the City's debt capacity and limitations. (Council Policy) 2. Debt capacity and affordability will be determined by conducting various analyses prior to the issuance of bonds. The analysis of debt capacity should cover a broad range of factors including but limited to the following: • Statutory or constitutional limitations affecting the amount that can be issued, such as legally authorized debt limits and tax or expenditure ceilings • Other legal limitations, such as coverage requirements or additional bonds tests imposed by bond covenants • Evaluation of trends relating to the government's financial performance, such as revenues and expenditures, net revenues available after meeting operating requirements, reliability of revenues expected to pay debt service and unreserved fund balance levels • Debt service as a percentage of total General Fund Revenues The City will attempt to limit the total amount of annual debt service payments payable by the General Fund to no more than 10% of estimated total General Fund revenues. Under State Law, general obligation bonds shall not exceed 15% of total assessed valuation within the City. An analysis using current market rates and conservative projections showing compliance with the debt affordability limitations included in this Debt Policy shall be conducted before the issuance of any debt with a maturity longer than two years from date of issue. Data showing direct and overlapping debt levels for the City of Chula Vista and surrounding agencies that affect the residents of the City shall be compiled for inclusion in the Comprehensive Annual Financial Report (CAFR) of the City. (Council Policy) 3. In order to maximize the financial options available to benefit the public, it is the policy of the City of Chula Vista to allow for the consideration of issuing all generally accepted types of debt, including, but not exclusive to the following: • General Obligation (GO) Bonds: General Obligation Bonds are suitable for use in the construction or acquisition of improvements to real property that benefit the public at large. Examples of projects include libraries, parks, and public safety facilities. All GO bonds require a 2/3 vote in order to pass. • Revenue Bonds: Revenue Bonds are limited - liability obligations tied to a specific enterprise revenue stream where the projects financed clearly benefit or relate to the enterprise. An example of projects that would be financed by a Revenue Bond would be improvements to the sewer system, which would be paid back with money raised from the property owner's sewer bills. Generally, no voter approval is required to issue this type of obligation but must comply with proposition 218 regarding rate adjustments. • Lease - Backed Debt /Certificates of Participation (COP): Issuance of COP debt is a commonly used form of debt that allows a City to finance projects where the debt service is secured via a lease or installment agreement and where the payments are budgeted in the annual budget appropriation by the City from the general fund. Lease - Backed debt does not constitute indebtedness under the state or the City's constitutional debt limit and does not require voter approval. • Special Assessment /Special District Debt: the City will consider requests from developers for the use of debt financing secured by property based assessments or special taxes in order to provide for necessary infrastructure for new development only under strict guidelines adopted by City Council, which may include minimum value- 2015 -05 -26 Agenda Packet Page 890 to -lien ratios and maximum tax burdens. Examples of this type of debt are Assessment Districts (AD) and Community Facilities Districts (CFD) or more commonly known as Mello -Roos Districts. In order to protect bondholders as well as the City's credit rating, all Rate and Method of Apportionment (RMA) documents must include the provision that the maximum projected annual special tax revenues must equal 110% of the projected annual gross debt service on any bonds of the community facilities district. The City will also comply with all State guidelines regarding the issuance of special district or special assessment debt. For further information, refer to the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facility Districts. Industrial Development Bonds — Industrial Development Bonds (IDBs) are tax - exempt securities which can fund manufacturing businesses or energy development projects which provides a public benefit. While the authorization to issue IDBs is provided by a state statute, the tax - exempt status of these bonds is derived from federal law (IRS Code Section 103(b) (2). Tax Allocation Bonds — Tax Allocation Bonds are special obligations that are secured by the allocation of tax increment revenues that were generated by increased property taxes in the designated redevelopment area. Tax Allocation Bonds are not debt of the City. Due to changes in the law affecting California Redevelopment agencies with the passage of ABX1 26 as codified in the California Health and Safety Code, the City of Chula Vista Redevelopment Agency (RDA) was dissolved as of February 1, 2012, and its operations substantially eliminated but for the continuation of certain enforceable RDA obligations to be administered by the City of Chula Vista Successor Agency. The terms of ABX 1 26 requires successor agencies perform all obligations with respect to enforceable debt obligations, which include Tax Allocation Bonds. • Multi - Family Mortgage Revenue Bonds —The City Housing Authority is authorized to issue mortgage revenue bonds to finance the development, acquisition and rehabilitation of multi - family rental projects. The interest on the bonds can be exempt from Federal and State taxation. As a result, bonds provide below market financing for qualified rental projects. In addition, the bonds issued can qualify projects for allocations of Federal low- income housing tax credits, which can provide a significant portion of the funding necessary to develop affordable housing. For further information, refer to the Chula Vista Housing Authority — Multi - Family Administrative Bond Policies. • HUD Section 108 Loan Guarantee Program — The U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program allows cities to use their annual Community Development Block Grant (CDBG) entitlement grants to obtain federally guaranteed funds large enough to stimulate or pay for major community development and economic development projects. The program does not require a pledge of the City's General Fund, only of future CDBG entitlements. By pledging future CDBG entitlement grants as security, the City can borrow at favorable interest rates because of HUD's guarantee of repayment to investors. (Council Policy) 4. The City will strive to minimize borrowing costs by: • Seeking the highest credit rating possible; • Maintaining transparency and excellent communications with credit rating agencies regarding the City's fiscal condition; • Purchasing bond insurance or taking action to upgrade the City's current credit rating (Council Policy) 5. The City will comply with Rule 15(c) 2 -12 of the Securities Exchange Commission (SEC) and provide timely disclosure of relevant information on an annual basis as well as any material event 2015 -05 -26 Agenda Packet Page 891 notices as required. (Council Policy) • Rates of delinquencies — delays in collection of outstanding revenues. 6. In addition to externally financed debt, the City • Payroll cycles — the timing of fixed cash utilizes inter -fund loans whenever possible to requirement for payroll, as related to the reduce borrowing costs or provide for shorter timing of revenue cycles. term loans. When interest is charged on internal • Unanticipated expenses — expenses whose loans, it is done at the same rate the City earns characteristics make accurate estimation from its pooled investments. difficult, such as increases in wastewater treatment services provided by the City of Sewer Service Revenue Fund Reserve Policy San Diego, energy costs, labor benefits and 1. Working Capital and Rate Stabilization Reserve other consumption based goods and Working Capital and Rate Stabilization reserves services. in the Sewer Service Revenue Fund will be restricted to maintaining operating the The City shall maintain a Sewer Revenue reserve wastewater collection system and paying equivalent to 90 days of operating expenditures treatment charges to City of San Diego and a Rate Stabilization reserve equivalent to 90 Metropolitan Wastewater ( "Metro "). The reserve days of operating expenditures for a minimum will be funded from revenues accumulated in the combined total of 180 days and a maximum Sewer Service Revenue Fund. IT is intended to reserve balance of 125% of the minimum accommodate any natural variability in revenues balance. and expenditures, including potential disruptions of cash flows due to varied billing methodology, If funds are appropriated from the Sewer short term fluctuations and annual cycles. The Revenue Working Capital and Rate Stabilization reserve will also assist in addressing shortfalls Reserves, the funds should be replenished in the which may occur due to unanticipated cost budget process during subsequent fiscal years to increases in labor or energy and other the minimum reserve balance. If the magnitude consumption based goods and services, such as of the event caused the Sewer Revenue Working wastewater treatment services provided by Capital and a Stabilization Reserves to be less Metro. The reserves represent unrestricted than 30 days of operating and maintenance resources available for appropriation by the City budget, the Finance Director shall provide the Council addressing unforeseen needs for sewer City Council with a plan to incrementally services. replenish the reserves to the 180 days minimum reserve balance. (Council Policy) The Working Capital and Rate Stabilization Reserves will assist the City in addressing the 2. Emergency Reserve following items: The Sewer Service Revenue Fund Emergency • Rate Stabilization — the reserves will allow Reserve is necessary to secure funding for the City the flexibility to "smooth" rates and insurance deductibles, unforeseen phase increases in over multiple years, which liabilities /litigation and settlement costs related is prudent given the potential variability in to the City's wastewater system. the City's payments to Metro. • Revenue Collection Fluctuations — the The City shall maintain a minimum Sewer Service reserves will be used to protect the City from Revenue Fund Emergency Reserve target level of natural fluctuations in revenue and 5% of the operating and maintenance budget expenditure cycles which is prudent given and a maximum reserve balance of 125% of the that the City bills customers at different minimum balance. If the funds are appropriated points in time but incurs expenses from the Sewer Revenue Emergency Reserves continuously throughout the year. due to unanticipated needs, the Finance Director 2015 -05 -26 Agenda Packet Page 892 shall provide the City Council with a plan to incrementally replenish the reserves to the minimum reserve balance. (Council Policy) 3. Vehicle Replacement Reserve The Sewer Service Revenue Fund Vehicle Replacement Reserves represents monies set aside to fund the replacement of aging vehicles. The allocation is funded from revenues accumulated in the Sewer Service Revenue Fund. The City shall maintain a minimum Sewer Services Fund Vehicle Replacement Reserve target of 2% of the operating and maintenance budget. This reserve will ensure that vehicles utilized for sewer operations are replaced as scheduled and available to deploy as needed. To achieve a minimum impact to cost of services and rates, funds will be included in the proposed budget on an annual basis as identified in the City's Vehicle Replacement schedule. The cost of replacing all vehicles will be averaged over the lifespan of the existing fleet. This will generate a more normalized cost of services by evenly distributing revenue requirements on a year -to year -basis offsetting temporary cash flow deficiencies and avoid significant increases in rate charges to customers in the years the replacement cost are incurred. (Council Policy) 4. USEPA Permit Renewal Liability Reserve The Sewer Service Revenue Fund USEPA Permit Renewal Liability Reserve will account for monies set aside to fund the City of San Diego Metropolitan Wastewater costs related to the potential upgrade of the Point Loma Wastewater Treatment Plant (PLWTP) or other alternative for secondary treatment. The reserve will be funded from revenues accumulated in the Sewer Service Revenue Fund. Metro's USEPA waiver expires in FY 2015 and may not be renewed. If denied, Metro would need to develop and implement improvements to achieve secondary treatment level at PLWTP. Current cost estimates to establish full secondary treatment at PLWTP as well as possible alternatives are all significant ( >$1 Billion). As a contributing member to the regional treatment plant, the City of Chula Vista's share in the cost of any upgrade would be approximately 10 percent for the capital improvements and any increase in the overall treatment cost. It is expected that Metro will have 10 years after the expiration of the USEPA waiver to institute secondary treatment or alternative. This reserve establishes a dedicated fund that will offset a portion of the City's share of any obligation related to the PLWTP USEPA waiver. By actively planning for the PLWTP upgrade or alternative the City will be in a stronger financial position to afford such costs while mitigating impacts to ratepayers. The Permit Renewal Liability Reserve will be funded through annual contributions with the intent to reach a target balance of 20% of Chula Vista's share of the upgrade cost by FY 2024/25 (10 years after the expiration of the waiver). If substantial increases in Metro - related costs occur sooner than expected, the City may draw down reserve levels prior to FY 2024/25 to manage impacts to ratepayers. To be consistent with the City's policy for managing balances for its other utility reserves, if funds are appropriated from the reserve before its intended use, the funds should be replenished in subsequent fiscal years. If the magnitude of withdrawal is material, the Finance Director shall provide the City Council with a plan to incrementally replenish the reserves. If the actual costs for the PLWTP upgrade or alternative are less than anticipated, any unspent reserves will be rolled into the Working Capital and Rate Stabilization Reserve and utilized to fund City sewer programs, including maintenance and expansion of the City's conveyance system and payment of San Diego Metro wastewater treatment costs. (Council Policy) 2015 -05 -26 Agenda Packet Page 893 1.0 Purpose This "Investment Policy and Guidelines" (the "Investment Policy ") Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista's (the "City') cash balances, and outline policies to assist in maximizing the efficiency of the City's cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. 3.0 Scope This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City's Comprehensive Annual Financial Report. 3.1 Funds The Director of Finance /Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee's retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance /Treasurer will strive to maintain the level of investment of this cash as close as possible to 100 %. These funds are described in the City's annual financial report and include: • General Fund • Special Revenue Funds • Capital Project Funds • Enterprise Funds • Trust and Agency Funds • Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. Investment Policies 4.0 Prudence The standard of prudence to be used by the Director of Finance /Treasurer shall be the "prudent investor standard ". This shall be applied in the context of managing an overall portfolio. The "prudent investor standard" is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: " ... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency..." 4.1 Personal Responsibility The Director of Finance /Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 2015 -05 -26 Agenda Packet Page 894 5.1 Safety Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity The City of Chula Vista's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments The City of Chula Vista's investment portfolio shall be designed with the objective of attaining a market - average rate of return throughout budgetary and economic cycles (market interest rates), within the City's Investment Policy's risk parameters and the City's cash flow needs. See also Section 16.0. 6.0 Delegation of Authority The Director of Finance /Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day -to -day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance /Treasurer may delegate day -to- day investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. 7.0 Ethics and Conflicts of Interest In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for "public officials who manage public investments" [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California's Fair Political Practices Commission (FPPC)]. 8.0 Authorized Financial Dealers and Institutions The City's Director of Finance /Treasurer will maintain a list of the financial institutions and brokers /dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody's Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers /dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City's Director of Finance /Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City's Director of Finance /Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory' in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate - income neighborhoods. To provide for the optimum yield in the investment of City funds, the City's investment procedures shall encourage competitive bidding on transactions from 2015 -05 -26 Agenda Packet Page 895 approved brokers /dealers. In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer must be a "primary" dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 150-1 (Uniform Net Capital Rule); (ii) the dealer's institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers /dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a "Broker /Dealer Application" and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City's Investment Policy and agreeing to comply with the Investment Policy. The City's Director of Finance /Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). A. BANKERS' ACCEPTANCES A maximum of 40% of the portfolio may be invested in bankers' acceptances. The maximum maturity is 180 days. Eligible bankers' acceptances shall have the highest ranking or the highest letter and number rating as provided by a nationally recognized statistical rating organization (NRSRO). Is If the City has an investment advisor, the investment advisor may use its own list of authorized broker /dealers to conduct transactions on behalf of C. the City. 9.0 Authorized & Suitable Investments The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment's credit rating falls below the minimum rating required at the time of purchase, the Director of Finance /Treasurer will perform a timely review and decide whether to sell or hold the investment. Investments not specifically listed below are deemed inappropriate and prohibited: NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD's). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD) differ from other certificates of deposit by their liquidity. NCD's are traded actively in secondary markets. NCD's with maturities under one year must be rated at least "A -1," its equivalent, or better by a NRSRO. NCD's with maturities in excess of one year must be rated "A," its equivalent or better by a NRSRO. In compliance with California Code 53601.8, all FDIC insured CD's, when placed through a deposit placement service, will be measured for compliance with NCD's. COMMERCIAL PAPER A maximum of 25% of the portfolio may be invested in commercial paper. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a.ls organized and operating in the United States as a general corporation. b.Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated "A" or higher, or the equivalent, by a NRSRO. 2015 -05 -26 Agenda Packet Page 896 2) The entity meets the following criteria: H. REVERSE - REPURCHASE AGREEMENTS (Requires a.ls organized within the United States Council approval for each transaction). Reverse as a special purpose corporation, trust, repurchase agreements or securities lending or limited liability company. agreements may be utilized only when all of the b. Has program wide credit following conditions are met: enhancements including, but not a) The security to be sold on reverse limited to, over collateralization, repurchase agreement or securities lending letters of credit, or surety bond. agreement has been owned and fully paid for c. Has commercial paper that is rated "A- by the local agency for a minimum of 30 days 1" or higher, or equivalent, by a prior to sale. NRSRO. b) The total of all reverse repurchase agreements and securities lending D. BONDS ISSUED BY THE CITY OR ANY LOCAL agreements on investments owned by the AGENCY WITHIN THE STAE OF CALIFORNIA. local agency does not exceed 20% of the Bonds must have an "A" rating or better from a base value of the portfolio. NRSRO. There is no limit on the percentage of c) The agreement does not exceed a term of 92 the portfolio that can be invested in this days, unless the agreement includes a category. written codicil guaranteeing a minimum earning or spread for the entire period E. OBLIGATIONS OF THE UNITED STATES TREASURY. between the sale of a security using a United States Treasury Notes, bonds, bills or reverse repurchase agreement or securities certificates of indebtedness, or those for which lending agreement and the final maturity the faith and credit of the United States are date of the same security. pledged for the payment of principal and d) Funds obtained or funds within the pool of interest. There is no limit on the percentage of an equivalent amount to that obtained from the portfolio that can be invested in this selling a security to a counter party by way of category. a reverse repurchase agreement or securities lending agreement, shall not be used to F. FEDERAL AGENCIES. Federal agency or United purchase another security with a maturity States government- sponsored enterprise longer than 92 days from the initial obligations, participations, or other instruments, settlement date of the reverse repurchase including those issued by or fully guaranteed as agreement or securities lending agreement, to principal and interest by federal agencies or unless the reverse repurchase agreement or United States government- sponsored securities lending agreement includes a enterprises. There is no limit on the percentage written codicil guaranteeing a minimum of the portfolio that can be invested in this earning or spread for the entire period category. between the sale of a security using a reverse repurchase agreement or securities G. REPURCHASE AGREEMENT, maximum term 3 lending agreement and the final maturity months. Investments in repurchase agreements date of the same security. Investments in may be made, on any investment authorized in reverse repurchase agreements, securities this section, when the term of the agreement lending agreements, or similar investments does not exceed 3 months. A Master Repurchase in which the local agency sells securities prior Agreement must be signed with the bank or to purchase with a simultaneous agreement broker /dealer who is selling the securities to the to repurchase the security shall only be made City. There is no limit on the percentage of the with primary dealers of the Federal Reserve portfolio that can be invested in this category. Bank of New York or with a nationally or 2015 -05 -26 Agenda Packet Page 897 state - chartered bank that has or has had a from a revenue producing property owned, significant banking relationship with a local controlled or operated by the state, or by a agency. department, board, agency or authority of the e) For purposes of this policy, "significant state. Obligations must be "A" rated or better by banking relationship" means any of the a NRSRO. There is no limit on the percentage of following activities of a bank: the portfolio that can be invested in this i. Involvement in the creation, sale, category. purchase, or retirement of a local agency's bonds, warrants, notes, or other L. OBLIGATIONS OF THE OTHER 49 STATES evidence of indebtedness. Including bonds payable solely out of revenues ii. Financing of a local agency's activities. from a revenue producing property owned, iii. Acceptance of a local agency's securities controlled or operated by any of these states, or or funds as deposits. by a department, board, agency or authority of the state. Obligations must be "A" rated or I. MEDIUM -TERM CORPORATE NOTES. A maximum better by a NRSRO. There is no limit on the of 30% of the portfolio may be invested in percentage of the portfolio that can be invested medium -term corporate notes, with a maximum in this category. remaining maturity of five years or less. Notes eligible for investment shall be rated "A," its M. MONEY MARKET FUNDS. A maximum of 20% of equivalent or better by a NRSRO the portfolio may be invested in money market funds. No more than 10% of the City's portfolio J. TIME DEPOSITS - CERTIFICATES OF DEPOSIT (non- may be invested in shares of beneficial interest negotiable certificates of deposit). The of any one Money Market fund. Local agencies maximum maturity is 3 years. Certificates of may invest in "shares of beneficial interest" deposit are required to be collateralized as issued by diversified management companies specified under Government Code Section 53630 which invest only in direct obligations in U.S. et seq. The City, at its discretion, may waive the Treasury bills, notes and bonds, and repurchase collateralization requirements for any portion agreements collateralized with U.S. Treasuries that is covered by Federal Deposit Insurance with a weighted average of 60 days or less. They Corporation (FDIC) insurance. The City shall have must have the highest rating from two NRSRO's a signed agreement with any depository or have retained an investment advisor accepting City funds per Government Code registered or exempt from registration with the Section 53649. No deposits shall be made at any Securities and Exchange Commission with not time in certificates of deposit issued by a state or less than five years of experience managing federal credit union if a member of the City money market mutual funds and with assets Council or the Chief Financial Officer serves on under management in excess of $500,000,000. the board of directors or any committee The purchase price of the shares may not include appointed by the board of directors of the credit commission. union. In accordance with Government Code Section 53638, any deposit shall not exceed that N. SAN DIEGO COUNTY TREASURER'S POOLED total shareholder's equity of any depository MONEY FUND. Also known as the San Diego bank, nor shall the deposit exceed the total net County Investment Pool, the pool is a local worth of any institution. There is no limit on the government money fund created to invest the percentage of the portfolio that can be invested assets of the County of San Diego and other in this category public agencies located within the County. The three primary objectives of the County Pool are K. OBLIGATIONS OF THE STATE OF CALIFORNIA. to safeguard principal; to meet liquidity needs of Including bonds payable solely out of revenues Pool participants; and to achieve an investment 2015 -05 -26 Agenda Packet Page 898 return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit. O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $50 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). There is no limit on the percentage of the portfolio that can be invested in this category. LGIP's organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (o) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: • The adviser is registered or exempt from registration with the Securities and Exchange Commission. • The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o) Government Code Section 53601, inclusive. • The adviser has assets under management in excess of five hundred million dollars ($500,000,000). Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by an NRSRO and rated in a rating category of "AA" or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass- through security, collateralized mortgage obligation, mortgage - backed or other pay- through bond, equipment lease- backed certificate, consumer receivable pass- through certificate, or consumer receivable - backed bond. 9.1 Investment Pools The City's Director of Finance /Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments Should any investment listed in section 9.0 exceed a percentage -of- portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance /Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 11.0 Collateralization Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City's deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the 2015 -05 -26 Agenda Packet Page 899 underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance /Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. 12.0 Safekeeping and Custody All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a "Delivery -Vs- Payment" (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third - party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank's customer book entry account may be used for book entry delivery. 13.0 Diversification The City's investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP's). A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City's cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long -term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 14.0 Maximum Maturities To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment. 15.0 Internal Control The Director of Finance /Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance /Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing 2015 -05 -26 Agenda Packet Page 900 or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance /Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance /Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Finance Manager 16.0 Performance Standards The investment portfolio shall be managed to attain a market - average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the performance of the City's portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark. 17.0 Reporting The Director of Finance /Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: • Type of investment • Institutional issuer • Purchase date • Date of maturity • Amount of deposit or cost of the investment • Face value of the investment • Current market value of securities and source of valuation • Rate of interest • Interest earnings • Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance • Statement on availability of funds to meet the next six month's obligations • Monthly and year -to -date budget amounts for interest income • Percentage of portfolio by investment type • Days to maturity for all investments • Comparative report on monthly investment balances & interest yields • Monthly transactions • Compare portfolio yield to the yield attained by the County of San Diego and the five largest cities in the county for the same period. In addition, a commentary on capital markets and economic conditions may be included with the report. 18.0 Investment Policy Review and Adoption This Investment Policy shall be reviewed at least annually by the Director of Finance /Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City's current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year. 2015 -05 -26 Agenda Packet Page 901 Based on the most recent audited financial statements, which were for the year ended June 30, 2014, the City and the former Redevelopment Agency (Agency) borrowed funds through several long -term debt issues ■ Debt Administration and held other obligations which are to be funded over a period of time longer than one year, are categorized as follows: 2015 -05 -26 Agenda Packet Page 902 Principal Description Outstanding Outstanding Outstanding Tax Allocation Bonds $ 40,920,000 $ 19,971,231 $ 60,891,231 Certificates of Participation $ 121,650,000 $ 65,702,960 $ 187,352,960 Bond Premium $ 3,442,833 $ - $ 3,442,833 Bond Discount $ (751,434) $ - $ (751,434) Capital Leases $ 2,047,313 $ 684,639 $ 2,731,952 Notes /Loans Payable $ 6,044,912 $ 470,796 $ 6,515,708 CDBG Section 108 Loan $ 7,913,000 $ 3,457,425 $ 11,370,425 Miscellaneous Claims Payable $ 22,361,236 $ - $ 22,361,236 Compensated Absences (Employee Leave) $ 6,625,460 $ - $ 6,625,460 Subtotal $ 210,253,320 $ 90,287,051 $ 300,540,371 Advances from Other Funds $ 50,513,914 $ - $ 50,513,914 TOTAL LONG TERM DEBT $ 260,767,234 1 $ 90,287,051 1 $ 351,054,285 2015 -05 -26 Agenda Packet Page 902 This section discusses the various types of long -term debt that the City has incurred. Bond financings, notes payable, capital leases and advances from other funds are the traditional forms of long -term debt that the City has incurred. However, also captured in this section are professional estimates derived from actuarial studies for workers compensation and general liability claims. In addition, the Finance Department provides an estimate of the City's liability for compensated absences as of the end of each fiscal year. The following sections discuss the details of the City's long- term debt. Tax Allocation Bonds ($40.9 million) Tax Allocation Bonds (TABS) are issued by the Agency and utilize tax increment revenue for debt service. The 2006 Senior TABS, Series A and 2006 Subordinate TABS, Series B were issued to refund the 1994 TABS Series A, C and D that were issued to refund prior obligations of the Bayfront and Town Center 1 project areas. In July 2008 the Agency issued the 2008 Tax Allocation Refunding Bonds to refund the 2000 TABS that were issued by the Southwest, Otay Valley and Town Center 2 project areas to finance certain redevelopment activities in those areas. Certificates of Participation ($121.7 million) As of June 30, 2014, the City currently has four outstanding Certificates of Participation. The Chula Vista Public Financing Authority (Authority) issued the 2004 COP to finance the Phase 1 reconstruction, renovation and equipping of the City's Civic Center Complex. In March 2006, the Authority issued the 2006 COP to finance the Phase 2 construction and equipping of certain improvements to the Civic Center Complex of the City and other existing City Facilities. In February 2010, the Authority issued the 2010 COP to refund the 2000 COP and to provide funds for the construction, reconstruction, modernization and equipping of Phase 3 of the Civic Center Complex, reimburse the PFDIF funds, fund capitalized interest, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. In February 2014, the authority issued the 2014 COP to refund the 2002 COP (Police Facility Project), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. Bond Premium ($3.4 million) The premium is composed of two bond issuances. One is for the premium on the issuance of the 2004 COP Civic Center Phase 1. Original amount was $35,324. This amount is amortized over 30 years. The other premium is in connection with the 2014 COP refunding bonds. The original amount of the premium is $3,537,111 and will be amortized over the life of the bonds. Bond Discount ( -$0.8 million) This is the discount on the issuance of the 2006 Refunding TABS and the 2008 Refunding TABS. The original amounts were $505,884 and $579,161 respectively. These amounts are amortized over 20 years. Capital Leases ($2.0 million) In December 2012, the City entered into a lease purchase agreement with Bank of America to purchase certain energy conservation equipment. The agreement would bridge the financial gap between the Municipal Streetlight Retrofit Project capital costs and the available rebates for energy conservation equipment. As of June 30, 2014 the outstanding balance is $2,003,017. Notes /Loans Payable ($5.7 million) The Redevelopment Agency participated in a Loan Agreement with the California Statewide Communities Development Authority to finance the 2006 share of the Educational Revenue Augmentation Fund (ERAF) payments to the County Auditor ($930,000). In September 2007, the City Council authorized the City's participation in the California Energy Commission and San Diego Gas and Electric On -Bill Financing program. The loans were to bridge the financial gap between energy conservation project capital costs and available rebates for energy conservation equipment. The original loan amount was $665,884 for the On -Bill Financing program. In fiscal year 2011 -12 additional loans were entered into with the California Energy Commission ($3.7 million) and San Diego Gas & Electric On -Bill Financing Program ($256,302). On July 23, 2013, the City Council authorized a 16 year lease purchase agreement with Banc of America to fund various solar energy projects for City facilities. The 2015 -05 -26 Agenda Packet Page 903 original amount of the loan was $2,121,500 and will be repaid through future energy savings. CDBG Section 108 Loan ($7.9 million) The City entered into a contract for Loan Guarantee Assistance with the U.S. Department of Housing and Urban Development (HUD) as part of the Section 108 Loan Program in the amount of $9,500,000 in June 2008. The Section 108 Loan is an "advance" of future CDBG entitlement funds and as such is repaid with a portion of the City's annual entitlement. Proceeds of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future CDBG entitlements for the next 20 years. Miscellaneous Claims Payable ($22.4 million) The Miscellaneous Claims Payable represents the probable amount of loss as estimated by legal counsel and risk management staff due to worker's compensation and general liability claims filed against the City. Compensated Absences ($6.6 million) The obligation for Compensated Absences represents the current dollar value of accumulated leave balances, primarily vacation leave, for employees that would have to be paid off if all permanent employees were terminated as of June 30, 2014. Advances From Other Funds ($50.5 million) The Agency has entered into reimbursement agreements with the City to reimburse the City for certain lease payments made by the City under various lease agreements. The balance as of June 30, 2014, was $9.0 million The City Council authorized loans to Public Facilities DIF for $12,950,160 and Western TDIF for $36,094. The Public Facilities DIF loan for $5,200,000 is due and payable in 13 years, at an interest rate of 3.8% based on the pooled investment rate. The Public Facilities DIF loan for $5,300,000 is due and payable in 13 years, at an interest rate of 0.56% based on the pooled investment rate. The City Council authorized a loan from Eastern PAD to Western PAD in the amount of $9,630,000 to acquire a 14.41 acre site located in the lower Sweetwater Valley owned by the redevelopment agency and $310,000 to acquire the 1.89 acre site located at the Auto Park Place, Chula vista. The loan will be repaid as funds become available through the payment of PAD fees by developers in western Chula Vista. The balance was $10,095,262 at June 30, 2014. The City Council authorized long -term loans from the Trunk Sewer fund to Salt Creek DIF for $16,848,381, to the Storm Drain fund for $744,612 and $803,331 from the Sewer Facility fund for capital improvement projects. General Fund Long -Term Debt for Fiscal Year 2015 -16 The General Fund's annual debt service "commitment" for the Certificates of Participation in fiscal year 2015- 16 is approximately $9.8 million, or 7.3% of the General Fund operating budget. However, it must be noted that although this amount is truly a General Fund commitment, only $3.3 million will actually be paid from General Fund resources, with the remaining amount paid from available development impact fees and residential construction tax. The $3.3 million represents approximately 2.4% of the General Fund operating budget. The $9.8 million represents ongoing level debt service payments as depicted in the chart on the next page. 2015 -05 -26 Agenda Packet Page 904 Annual Debt Service Obligation of the General Fund Fiscal Years 2005-06 through 2035-36 Note: 1) Actual payments are funded uv the General Fund and Development Impact Fee Funds, however all debt service obligations amuackenuvme General Fund. z) The 1994 Pension Obligation Bonds and 2003 COP were paid off in FY2012 and FY2014 respectively. The 2002 COP was refunded in FY2013 and became the mz« Refunding COP. 2015-05-26 Agenda Packet Page 905 in 2004 COP in 2006 COP in 2010 COP in 2014 Refunding COP z2002(OP x1994POR x2063(OP Note: 1) Actual payments are funded uv the General Fund and Development Impact Fee Funds, however all debt service obligations amuackenuvme General Fund. z) The 1994 Pension Obligation Bonds and 2003 COP were paid off in FY2012 and FY2014 respectively. The 2002 COP was refunded in FY2013 and became the mz« Refunding COP. 2015-05-26 Agenda Packet Page 905 Article X111B of the California Constitution, approved by the voters in 1979, imposed the concept of spending limits on local governments. This Constitutional provision and related implementing legislation specifies that annual increases in appropriations financed from "Proceeds of Taxes" are limited to a base year (1978- 79) amount increased annually by an inflation factor comprised of the change in population of the City combined with the greater of the change in new non- residential construction or the change in the California per capita personal income. By definition, "Proceeds of Taxes" includes such revenues as property taxes, sales and use taxes, utility users taxes, transient occupancy taxes, and state subventions. Revenues from other sources like fees /charges and federal grants are considered "Non- Proceeds of Taxes" and are not subject to the annual spending limit. This calculation has always been perfunctory for the City of Chula Vista, 44 GANN Appropriations Limit since the proceeds of taxes for the City are far less than the statutory appropriations limit. The State Department of Finance and the San Diego County Assessor's Office are charged with providing the data necessary for local jurisdictions to establish their appropriations limit. According to these sources, for purposes of the fiscal year 2014 -2015 calculation, the population increased 1.66% and new non - residential construction increased by 1.0103 %. California per capita personal income decreased by 0.23 %; consequently, new non - residential construction was used in the formula to compute the limit since this increase is the greater of the two amounts. Fiscal Year 2014 -15 Appropriations Limit The fiscal year 2014 -15 Appropriations Limit has been calculated as follows: Fiscal Year 2013 -14 Appropriations Limit $ 710,187,628 Increased by an inflation factor composed of the increases in population and New non - residential construction x 1.027199 FISCAL YEAR 2014 -15 APPROPRIATIONS LIMIT $ 729,447,134 2015 -05 -26 Agenda Packet Page 906 Proceeds of Taxes The "Proceeds of Taxes" as included in the fiscal year 2014 -15 Proposed Budget that are subject to the appropriations limit are estimated to be $88,000,256. Therefore the City has what is referred to as an appropriation "gap" of $641,446,878 ■ ($729,447,134 - $88,000,256). Simply stated, this means that the City could collect and spend up to $641,446,878 more in taxes during Fiscal Year 2014- 2015 without exceeding the Constitutional limit. Proceeds of Taxes Compared to Legal Spending Limit $800 $700 $600 $500 $400 $300 $200 $100 $0 FY2010 -2011 FY2011 -2012 FY2012 -2013 FY2013 -2014 FY2014 -2015 D Proceeds of Taxes Appropriations Limit 2015 -05 -26 Agenda Packet Page 907 Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within City boundaries. As of June 30, 2014 the City's legal debt limit is $811,735,084. In accordance with California Government Code Section Legal Debt Margin 43605, only the City's general obligation bonds are subject to this limit. The City of Chula Vista has no outstanding General Obligation Bonds. The table below summarizes the City's debt limit margin. Computation of Debt Limit Margin Fiscal Years Ended 2012 through 2014 The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981 -82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State. 2015 -05 -26 Agenda Packet Page 908 june 1 zltiz june st, zitil.3 1 Z1111.4 Total Assessed Valuation $ 21,153,963,435 $ 20,942,796,908 $ 21,646,268,909 Conversion Percentage 25% 25% 25% Adjusted Assessed Valuation $ 5,288,490,859 $ 5,235,699,227 $ 5,411,567,227 Debt Limitation Percentage 15% 15% 15% Debt Limit $ 793,273,629 $ 785,354,884 $ 811,735,084 Total Debt Applicable to Limit: Pension Obligation Bonds $ - $ - $ - Legal Debt Margin $ 793,273,6291 $ 785,354,884 1 $ 811,735,084 The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981 -82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State. 2015 -05 -26 Agenda Packet Page 908 ,dW4 �Vi ; mp"FW CITY OF CHULAVISTA 2015 -05 -26 Agenda Packet Page 909 44 Accounting Systems and Budgetary Control The City of Chula Vista's budget provides an overview of the fiscal and operational status of the City; highlighting policy issues, decisions, and proposed changes in service levels. The budget is comprised of a series of funds used to account for revenues and expenditures. These funds are generally classified as governmental or proprietary funds. Governmental funds include activities associated with the operations of the City such as the provision of library, recreation, and public safety services. Special revenue funds, capital project funds, debt service funds, and the City's general fund are different categories of governmental funds. Proprietary funds are used to account for activities often found in the private sector including enterprise funds and internal service funds. Operations of the development service and sewer systems are accounted for as enterprise funds. In prior years, the City's transit system was also included as an enterprise fund; however the fund was closed during fiscal year 2014 -2015. Examples of functions accounted for by internal service funds include fleet management and worker's compensation. The budget document is organized around the following major funds — General Fund, Redevelopment Retirement Obligation Fund and Successor Agency to the Redevelopment Agency Funds, Sewer Funds, Fleet Service Funds, Capital Projects Funds, Debt Service Funds, and Other Funds. Details about each of these funds can be found in the corresponding sections of the document. City of Chula Vista Fund Structure Budgetary Funds Governmental Funds Proprietary Funds Capital Project Special Revenue Internal Service General Fund Debt Service Funds Funds Enterprise Funds Funds Funds Redevelopment etirement Obligatio Sewer Funds Fund and Successor Agency to the Redevelopment Agency Funds Development Service Fund 2015 -05 -26 Agenda Packet Page 910 Each fund is considered an autonomous accounting entity. Funds are used to separate the various financial activities of the City and to demonstrate compliance with specific regulations, restrictions, or limitations. This may include demonstrating that restricted revenues are spent only for allowed purposes. The City's accounting records and budget are prepared and maintained using a modified accrual basis of accounting, which follows the accounting practices for governmental units as recommended by the Governmental Accounting Standards Board. Basic City operations are accounted for in the City's General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion. Generally, revenues are recorded when measurable and available, and liabilities are recorded when incurred. In administering the City's accounting systems, primary consideration is given to the adequacy of internal accounting controls, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation necessarily involves estimates and judgments by management. It is believed that the City's internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions. The City Charter charges the Director of Finance with the responsibility to supervise and be responsible for the disbursement of all monies and have control over all expenditures to ensure that budget appropriations are not exceeded. The level of budgetary control, that is the level at which expenditures are not to exceed Council approved appropriations, is established at the department and expenditure category level (e.g., personnel services, supplies and services, capital). Any budget modification that would result in an appropriation increase requires City Council approval. The City Manager and Finance Director are jointly authorized to transfer up to $15,000 of appropriations between expenditure categories within a departmental budget. Any appropriations transfers between departments, in excess of $15,000, and transfers from CIP projects, require City Council approval. An encumbrance (commitment) accounting system is utilized as a technique to enhance budgetary control during the year. Appropriations encumbered (committed) at year -end may be carried forward with City Manager approval and are available to be used for those commitments during the subsequent year. Unspent and unencumbered appropriations lapse at year -end and become generally available for re- appropriation the following year. 2015 -05 -26 Agenda Packet Page 911 A ADA: Americans with Disabilities Act ALS: Advanced Life Support AMP: Asset Management Plan AMS: Asset Management System ARRA: American Recovery and Reinvestment Act ATP: Active Transportation Program B BIG: Business Improvement Grant BFDIF: Bayfront Development Impact Fee BMS: Building Management System BRT: Bus Rapid Transit BTA: Bicycle Transportation Account C CAD: Computer Aided Dispatch CaIPERS: California Public Employees Retirement System CALTRUST: Investment Trust of California CAPPO: California Association of Public Purchasing Officers CBAG: California Border Alliance Group CDBG: Community Development Block Grant CEC: California Energy Commission CES: Conservation Environmental Services CFD: Community Facility District List of Acronyms CIP: Capital Improvement Plan /Project /Program CLSA: California Library Services Act CMP: Corrugated Metal Pipe CMT: Constant Maturity Treasury CONF: Confidential COP: Certificate of Participation CPI: Consumer Price Index CTC: California Transportation Commission CVBMP: Chula Vista Bayfront Master Plan CVACF: Chula Vista Animal Care Facility CVEA: Chula Vista Employee's Association CVPD: Chula Vista Police Department CVT: Chula Vista Transit D DASH: Dynamic After School Hours DIF: Development Impact Fee DMS: Drainage Management System DVP: Delivery Versus Payment E EEBG: Energy Efficiency Block Grant EOC: Emergency Operation Center ERAF: Educational Revenue Augmentation Fund EUC: Eastern Urban Center 2015 -05 -26 Agenda Packet Page 912 F FCIP: Fire Company Inspection Program FDIC: Federal Deposit Insurance Corporation FF: Firefighters FHLB: Federal Home Loan Bank FHLMC: Federal Home Loan Mortgage Corporation FHWA: Federal Highway Administration FICB: Federal Intermediate Credit Bank FLB: Federal Land Bank FLSA: Fair Labor Standards Act FMS: Fleet Management System FNMA: Federal National Mortgage Association FPPC: Fair Political Practices Commission FREBE: Free Resource Energy Business Evaluation FSE: Fire Safety Engineering FTA: Federal Transit Administration FTE: Full -Time Equivalent FY: Fiscal Year G GAAP: Generally Accepted Accounting Principles GDP: Gross Domestic Product GFOA: Government Finance Officers of America GGMS: General Government Management System GIS: Geographic Information System GMOC: Growth Management Oversight Committee GNMA: Government National Mortgage Association 0 GUC: General Use Certificates H HBP: Highway Bridge Program HOV: High Occupancy Vehicle HR: Human Resources HSIP: Highway Safety Improvement Program HUD: Housing and Urban Development HVAC: Heating \Ventilation \Air Conditioning IAFF: International Association of Firefighters ITS: Information and Technology Services L LAIF: Local Agency Investment Fund LAN: Local Area Network LRT: Light Rail Trolley M MGD: Million Gallons per Day MHZ: Megahertz MIS: Management and Information System s\Se rvi ces MLA: Master Lease Agreement MOU: Memorandum of Understanding MSCP: Multiple Species Conservation Plan MTDB: Metropolitan Transit Development Board MTS: Metropolitan Transit System 2015 -05 -26 Agenda Packet Page 913 N NCD: Negotiable Certificate of Deposit NEP: Neighborhood Reinvestment Program NFPA: National Fire Protection Association 0 OSMS: Open Space Management System P PACE: Parcel Assessed Clean Energy PAD: Park Acquisition and Development PCI: Pavement Condition Index PFDIF: Public Facilities Development Impact Fees PLF: Public Library Foundation Act PLTP: Point Loma Treatment Plant PMS: Parks Management System POA: Police Officer's Association PUC: Public Utilities Commission R RCS: Regional Communications System RCT: Residential Construction Tax RDA: Redevelopment Agency RFP: Request for Proposals RMS: Roadway Management System RTIP: Regional Transportation Improvement Program SANDAG: San Diego Association of Governments ■ SANDPIPA: San Diego Pooled Insurance Policy Association SBA: Small Business Association SBBRT: South Bay Bus Rapid Transit SGIP: Smart Growth Initiative Program SHOPP: State Highway Operations and Protection Program SLMA: Student Loan Marketing Association SR2s: Safe Routes to School SRO: School Resource Officer STRETCH: Safe Time For Recreation, Enrichment And Tutoring T TABS: Tax Allocation Bonds TARBS: Tax Allocation Refunding Bonds TDA: Transportation Development Act TDIF: Transportation Development Impact Fee TOT: Transient Occupancy Tax TUT: Telephone Users' Tax TVA: Tennessee Valley Authorities U UUT: Utility Users Tax V VLF: Vehicle License Fee W WCE: Western Council of Engineers 2015 -05 -26 Agenda Packet Page 914 WMS: Wastewater Management System W -TDIF: Western Transportation Development Impact Fee 2015 -05 -26 Agenda Packet Page 915 A Accrual Basis of Accounting — The accounting basis used by the City by which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements. Accounting System — The collective set of records and procedures used to record, classify, and report information on the financial status and operations of the City. Accounts Payable — Amounts owed by the City to external entities for goods and services received. Accounts Receivable — Amounts due to the City from external entities for goods and services furnished. Adopted Budget — The title of the budget following its formal adoption by resolution of the City Council. Ad Valorem — In proportion to value, a basis for levy of taxes on property. Amended Budget — The title of the budget version that includes all amendments to the Adopted Budget approved by Council throughout the fiscal year. Appropriation — A legislative act by the City Council authorizing the expenditure of a designated amount of public funds for a specific purpose. Audit — An examination of City records and accounts by an external source to check their validity and accuracy. B Balanced Budget — The amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. For budgeting purposes, the use of contingency reserves or use of fund balance will be considered revenue in defining a balanced budget. Bond — A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Glossary Budget — A spending plan and policy guide comprised of an itemized summary of the City's probable expenditures and revenues for a given fiscal year. C Calendar Year (CY) — The 12 -month period from January through December. Capital Expenditures — A specific undertaking involving procurement, construction or installation of facilities or related equipment which improves, preserves, enhances or modernizes the City's provision of municipal services, has a useful life of at least five years, and costs in excess of $10,000. Capital Improvement Program — An ongoing five -year plan of single and multiple -year capital expenditures which is updated annually. Capital Improvement Project (CIP) — Any major capital investment with a value of $50,000 or more and a minimum useful life of five years at a fixed location. CIPs may include construction or major repair of City buildings and facilities such as streets, roads, storm drains, traffic signals, parks, community centers, etc. Capital Project Funds — Funds that are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds. Community Development Block Grant (CDBG) Funds — Funds received from the federal government and expenditures as prescribed under the Community Development Grant Program. D Debt Service Funds— Funds used for payment of interest and principal to holders of the City's various debt instruments. Deferred Maintenance —A backlog of needed repairs to City facilities including facility maintenance, painting and structural repairs. 2015 -05 -26 Agenda Packet Page 916 Depreciation — The expense incurred with the expiration of a capital asset. Direct Costs — Operational expenditures exclusive to a specific service or program. Discretionary Revenue — Revenues that are generated by general or specific taxing authority such as Property or Sales Taxes. E Encumbrance —The designation or reserving of funds to buy an item or service. Enterprise Funds — Funds established to account for specific services funded directly by fees and charges to users such as sewer services. These funds are intended to be self- supporting. Expenditure — The actual outlay of monies set aside by appropriation for identified goods and services. F Fiscal Year (FY) — The twelve -month period beginning July 1st and ending June 30th of the subsequent calendar year. Fixed Assets — An asset with a useful life greater than three years. Fringe Benefits — This consists of the costs to provide employee benefits that include the flexible benefit program, insurance, and retirement. Full -time Equivalent Positions (FTE) — The conversion of part -time, temporary, or volunteer positions to a decimal equivalent of a full -time position based on an annual amount of 2,080 hours worked. Fund — A set of interrelated accounts to record revenues and expenditures. Fund Balance — The excess of an entity's assets over its liabilities. A negative fund balance is sometimes referred to as a deficit. G Generally Accepted Accounting Principles — A uniform set of minimum standards for external financial accounting and reporting. Gann Appropriation Limit — A State of California mandated appropriation limit imposed on local jurisdictions. General Fund — The City's main operating fund that is used to pay for City services. General Plan — The fundamental policy document that guides the City's future growth and development. General Revenue — See Discretionary Revenues. Governmental Funds — Funds that are typically used to account for tax - supported activities. These include the general fund, special revenue funds, debt service funds, and capital project funds. Grants — A contribution by a government or other organization to provide funding for a specific project. Grants can either be classified as capital projects or programmatic, depending on the grant. Indirect Cost — Costs that are essential to the operation of the City but not exclusive to any specific service or program. Indirect costs are primarily associated with support departments such as City Clerk, City Attorney, Administration, Management Information Systems (MIS), Human Resources, and Finance. Infrastructure — Basic physical assets such as buildings, streets, sewers, and parks. Interest Expense — Interest costs paid by Chula Vista on loans and bonds. Internal Service Funds— Funds that are used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. 2015 -05 -26 Agenda Packet Page 917 L Levy — To impose of collect a tax, special assessments, or charges for the support of City services. Liability — Debt or other legal obligations arising out of past transactions that will be liquidated, renewed, or refunded at some future date. M Memorandum of Understanding — A document detailing the outcomes of labor negotiations between the City and its various bargaining units. Modified Accrual Basis of Accounting — A method of accounting in which revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred. Municipal Code — A collection of ordinances approved by City Council. N Non - Capital Improvement Project Expenditures — Expenditures in this category are for large maintenance costs, studies and various community outreach programs. By their nature these maintenance upkeeps and programs are expended beyond a one year period. Recording these types of expenditures in an operating type budget would skew the comparison of budgets from year to year, because of this, the City finds it more efficient to record these types of expenditures in the Non - Capital Improvement Project category. 0 Operating Budget — Costs associated with the on -going municipal services. Ordinance — A formal legislative enactment by the City Council. Other Expenditures — All budgeted expenditures that do not fall into one of the following primary expenditure categories: Personnel, Supplies and Services, Utilities, Transfers Out, CIP and Non -CIP Projects, and Capital. P Personnel Services Expenditures — Expenses related to employee compensation including salaries, wages, and benefits. Program Revenue — Revenues generated by a given activity. Proposed Budget — The title of the budget prior to its formal adoption by resolution of the City Council. Proprietary Funds — Funds used to account for a government's business -type activities, which are supported, at least in part, by fees or charges. R Reserves — The portion of the General Fund balance set aside for contingencies. Resolution — A special order of the City Council that requires less legal formality than an Ordinance. Revenue — Funds received from various sources to finance expenditures. Sewer Funds— Funds that account for revenues and expenditures related to the City's sewer programs, including maintenance and expansion of the City's conveyance system and payment of Metro Sewer treatment costs. Special Revenue Funds — Funds that are used to account for proceeds derived from specific revenues sources, which are legally restricted to expenditures for special purposes. (e.g. Transportation Funds, parking Funds, Public Safety Funds) Spending Plan — A preliminary budget approved by Council contingent upon subsequent adoption of appropriations. Supplies and Services Expenditures — Expenditures for supplies required for the daily operation of the City and for contractual and professional services. 2015 -05 -26 Agenda Packet Page 918 T Transfers Out Expenditures — Expenditures in this category are the authorized exchanges of cash, positions, or other resources between organizational units. U Utilities Expenditures — Expenses related to the consumption of services including electricity, natural gas, water, and telephone services. Y Yield — The rate of return earned on an investment based on the price paid. 2015 -05 -26 Agenda Packet Page 919 General Information Incorporated .. ............................... ...........................1911 Government ....................... ................Council /Manager BondRating .................................... ............................AA - Population by Ethnic Group Asian 14% Other 4% Black 4% Hispanic 52% White 26% Source: San Diego Association of Governments, Current Estimates Educational Attainment 1 Graduate or Less than professional 9th grade degree 8.2% 9th to 11.0% 12th Bachelor's grade, no degree diploma 17.4% 0.1% Associate's degree 9.5% High school Some graduate college, 20.2% no degree 23.7% Dd]CU UII PUPUId LIUII ID Yedl] d11U UVCI. Source: U.S. Census Bureau, 2013 American Community Survey Chula Vista at a Glance Population Population ... ............................... ........................257,989 MedianAge .................................... .............................34 Source: Population data, California Department of Finance. Median Age, San Diego Association of Governments estimates. rkiiin %I;c +n Dt%nii1n+;t%n rrn%Al+k *2015 -2016 population numbers are projections. Source: California Department of Finance and City of Chula Vista staff Elementary Schools Chula Vista Elementary School District FY2013 -14 Data www.cvesd.org (619) 425 -9600 Number of Schools 1 ...................... .............................47 Projected Enrollment ................. .........................29,472 llncludes 5 dependent and 2 independent charter schools. Secondary Schools Sweetwater Union High School District FY2013 -14 Data www.sweetwaterschools.org (619) 691 -5500 Number of Schoolsl ...................... .............................31 Projected Enrollment ................. .........................40,901 llncludes middle schools, high schools, adult schools, and alternative education sites. 2015 -05 -26 Agenda Packet Page 920 Housing Housing Units .............................. .........................82,499 Persons per Household ............... ...........................3.26 Vacancy Rate ................................ ...........................4.8% Source: California Department of Finance Household Income 5% 4% 10y, 8% 9% 14% 15% 16% 13 1Y. 15 ■ < $15,000 ■ $15,000 - $29,999 ■ $30,000 - $44,999 ■ $45,000 - $59,999 ■ $60,000 - $74,999 ■ $75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,000 $150,000 - $199,999 >= $200,000 Source: San Diego Association of Governments, Current Estimates Construction Permits 4,000 Housing Type Single Family . ............................... .........................53,405 Multiple Family ........................... .........................25,029 Mobile Homes ............................. ..........................4,065 Source: California Department of Finance Public Safety Fire Uniform Strength ................. ............................108 FireStations ..................................... ..............................9 Emergency Calls to Fire Department 1 ..............16,901 Police Uniform Strength .......................................... 225 Citizen Initiated Calls for Service 1 .....................66,120 1Calls for service data is for calendar year 2014. 2Police uniform strength does not include 12 frozen positions. Source: City of Chula Vista Staff Community Facilities Acres of Developed Parks 1 ..... .........................532.69 Total Number of Parks .................. .............................60 Libraries............................................ ..............................3 Recreation Facilities ....................... .............................11 1 Actual City Ownership Park Acreage Source: City of Chula Vista staff Multi - Family 3,000 - ■ Single Family 2,000 1,000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15* *Fiscal Year 2015 data as of April 30, 2015. Source: City of Chula Vista staff 2015 -05 -26 Agenda Packet Page 921 CITY OF CHULA VISTA File #: 15 -0215, Item #: 12. City of Chula Vista Staff Report REPORT ON THE CITY OF CHULA VISTA CULTURAL ARTS WORK PROGRAM RECOMMENDED ACTION Council accept the report. SUMMARY Across the nation, communities both large and small have recognized the economic value of cultural arts. Cultural arts enriches quality of life and enhances the local economy by strengthening community identity and character, stimulating cultural tourism, increasing consumer purchasing, creating jobs, and increasing tax revenue. The Cultural Arts Master Plan (CAMP) work program will assist in the development of a cultural arts program that will leverage and strengthen the City's cultural arts assets while creating a cultural arts industry in Chula Vista. 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 proposed action is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines because the activity is a report on a City work program; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, projects resulting from the CAMP work program, will require environmental review and a CEQA determination completed prior to commencing said project(s). BOARD /COMMISSION RECOMMENDATION Not Applicable DISCUSSION To date, the City has supported cultural arts through individualized program funding but has not yet adopted a citywide CAMP. The preparation of a citywide CAMP (General Plan Policy PFS 20.1) is an opportunity for Chula Vista to strategically identify, develop and create a cultural arts industry in Chula Vista. Further, the development of a CAMP would meet several of the City's Strategic Plan goals by enhancing Chula Vista's unique image and sense of place and strengthening Chula Vista's local economy. The CAMP work program would, in essence, chart the course for the development of a comprehensive plan that would build upon our unique cultural arts strengths and opportunities while helping Chula Vista become a more creative, innovative, and vibrant place to live, work, and play. The experience of other communities shows that cultural arts can be an economic engine during City of Chula Vista Page 1 of 4 Printed on 5/21/2015 2015 -05 -26 Agenda Packet powered by Le9age 922 File #: 15 -0215, Item #: 12. even the most challenging fiscal times. As stated above, past approaches to cultural arts in Chula Vista have primarily focused on individualized program funding rather than a comprehensive approach to building a sustainable cultural arts industry. While public support of cultural arts programs is important, it is imperative that Chula Vista pursue a more broad approach that integrates cultural arts fully into the community while building cultural arts capital in Chula Vista. CAMP Work Program Over the next year, staff, in collaboration with a variety of stakeholders, will explore opportunities to build upon our unique cultural arts strengths and the development of new cultural arts opportunities. In review of cultural arts master planning processes of other jurisdictions and the importance of creating a CAMP that is not only unique to Chula Vista but that will provide economic benefit to the City, a Cultural Arts Manager position (75 FTE) is proposed in the FY 15 -16 budget. This staff resource would be entirely dedicated to development and implementation of the CAMP work program and the management of the associated tasks that would come out of that work program. Work Program Framework The work program will include tasks related to: 1. Understanding what our cultural assets are. 2. Creating a vision for Cultural Arts in Chula Vista 3. Planning and implementation of strategies that will stimulate the cultural arts industry in Chula Vista. The work program will in essence be divided into three parts, each with identified tasks. It is anticipated that there will be some overlap between each part with variation of stakeholder engagement included in all three. 1. Understanding Chula Vista's Cultural Assets Identifying and mapping Chula Vista's existing cultural assets, activities and resources will allow us to understand the history of Cultural Arts in Chula Vista as well as help us to better understand where we are and where we need to be. This assessment will include: • Researching the History of Cultural Arts in Chula Vista • Identifying and Evaluating Chula Vista's Cultural Arts Resources • Mapping of Cultural Arts Resources • Measurement of the existing Economic Footprint of Cultural Arts in Chula Vista • Researching cultural arts trends, successes, and failures both nationally, regionally and locally including cultural arts funding sources • Research and Evaluation of the existing cultural arts economic footprint in Chula Vista 2. Creating a Vision Cultural Arts can be more than an economic engine it can also be a catalyst for encouraging residents to engage in civic activities. The outcome of the work program should reflect and reinforce Chula Vista's unique image and sense of place and provide opportunities for all socioeconomic levels. Creating a vision for cultural arts in Chula Vista will entail a variety of factors but most importantly it will include collaboration with a variety of stakeholders. This vision will be the framework for where we want to go and how we want to get there. This will be an important part of the work program as the vision will guide the goals, policies and objectives of the City of Chula Vista Page 2 of 4 2015 -05 -26 Agenda Packet Page 923 File #: 15 -0215, Item #: 12. CAMP. The visioning process will include: • Coordination with the City's Cultural Arts Commission • Collaboration with community stakeholders • Public Forums • Individual interviews • Focus Groups • Youth Involvement • Social Media Outreach 3. Planning and Implementation Once the city's cultural arts assets are identified and the vision is set, the next step will be to plan, develop and implement strategies that will support and strengthen the vision and cultural arts opportunities in Chula Vista. Planning and implementation will require collaboration with a variety of community stakeholders. A successful CAMP will include strategies that are integrated broadly throughout the community. This will entail formulating recommendations that will identify key implementers, establish time frames, and identify benefits, required resources and steps necessary to implement the recommendations. Recommendations may include: • Creating policies and initiatives that encourage cultural arts activity • Creating funding sources for support of cultural arts • Review and refinement of existing cultural arts programs • Optimize use of existing cultural arts facilities • Potential Public and Private Partnerships • Marketing and Promotion of Chula Vista's Cultural Arts Assets • Developing Cultural Tourism Opportunities • Cultural Arts Programming and Events Coordination • Create opportunities for artist hubs such as Artist Co -Ops, and Pop -Up Exhibits Next Steps Upon approval of the FY16 budget, the City will begin recruitment for the Cultural Arts Manager position. In addition to managing the CAMP Work Program, the on -going responsibilities of the Cultural Arts Manager will include: • To develop, implement, and manage all cultural arts programs in the City • Oversight and coordination of the City's public art program • To promote a variety of performances, exhibitions, and community cultural art events • To develop and implement initiatives and strategies to encourage cultural tourism in Chula Vista It is anticipated that the recruitment process will be commence as quickly as possible after the FY 15- 16 budget is approved. The CAMP work program is anticipated to be completed within FY16. Conclusion The CAMP work program will explore opportunities that will create a comprehensive approach to City of Chula Vista Page 3 of 4 Printed on 5/21/2015 2015 -05 -26 Agenda Packet Page 924 File #: 15 -0215, Item #: 12. cultural arts in Chula Vista. The benefits of cultural arts are vast and include a better quality of life for citizens, growth of cultural tourism, an increase in consumer purchasing, job creation, and increased tax revenues. 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 18702.2 (a)(11), 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. The CAMP work program supports several of the Strategic Plan Goals, including; Strategy 2.2; to promote an environment for residents and businesses to prosper. Goal 5, Strategy 5; to encourage residents to engage in civic activities, and Strategy 5.2; to provide opportunities that enrich the community's quality of life. The preparation of a city -wide CAMP will reinforce and build upon Chula Vista's unique cultural arts strengths, will provide access to cultural arts for all socioeconomic levels, and will be a catalyst to increase Chula Vista's cultural arts capital. CURRENT YEAR FISCAL IMPACT There is no current year fiscal impact associated with the CAMP work program. ONGOING FISCAL IMPACT An additional, .75 FTE, is proposed in the FY 15 -16 budget. The cost of this position (including salary and benefits) for fiscal year 2016 is approximately $101,500 This staff resource would be entirely dedicated to cultural arts, including the development and implementation of the CAMP work program and the management of the associated tasks that would come out of that work program. All other expenses associated with the development of the Work Program would be accomplished with existing staff and resources. Staff Contact: Lynnette Tessitore- Lopez, Project Manager City of Chula Vista 2015 -05 -26 Agenda Packet Page 4 of 4 Printed on 5/21/2015 powered by Legistar Page 925 CITY OF CHUTA VISTA File #: 15 -0222, Item #: 13. City of Chula Vista Staff Report RATIFICATION OF APPOINTMENTS TO THE FOLLOWING BOARDS & COMMISSIONS: • Gregory Hall, Board of Appeals And Advisors • Jose R. Doria, Board of Appeals And Advisors • Monica Allan, Commission on Aging • Karen Ann Daniels, Cultural Arts Commission • Timothy Demarco, Safety Commission • Hugo Mora, Resource Conservation Commission City of Chula Vista 2015 -05 -26 Agenda Packet Page 1 of 1 Printed on 5/21/2015 powered by Legistar Page 926 OFFICE OF THE MAYOR Mary Casillas Salas MEMO May 20, 2015 TO: Donna Norris, City Clerk CC: Kerry Bigelow, Senior Deputy City Clerk FROM: Judy Walsh- Jackson, Chief of Staff RE: Boards and Commissions Appointees Mayor Mary Casillas Salas would like to recommend Gregory Hall and Jose R. Doria for appointment to the Board of Appeals and Advisors, Monica Allan for appointment to the Commission on Aging, Karen Ann Daniels for appointment to the Cultural Arts Commission, Timothy DeMarco for appointment to the Safety Commission, and Hugo Mora for appointment to the Resource Conservation Commission. Gregory Hall will replace Georgina Starkey and Jose R. Doria will replace Ben West. Monica Allan will replace Charlaine Carter and Karen Ann Daniels will replace Jason Paguio. Timothy DeMarco will replace Ritchie Adair and Hugo Mora will replace Nora Vargas. Please place these items on the May 26, 2015 Council agenda for ratification and schedule the oaths of office for the next available City Council meeting. Thank you. 276 Fourth Avenue - Chula Vista - California 91910 - (619) 691 -5044 - Fax (619) 476 -5-379 2015 -05 -26 Agenda Packet rnsalas@chulavistaca.gov Page 927 CITY OF CHUTA VISTA File #: 15 -0205, Item #: 14. City of Chula Vista Staff Report CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Name of case City of Chula Vista 2015 -05 -26 Agenda Packet Samuel Escalante, et al. v. City of Chula Vista, WCAB, Case Number ADJ9571086 Page 1 of 1 Printed on 5/21/2015 powered by Legistar Page 928