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HomeMy WebLinkAbout2016-02-09 Agenda Packet I declare wder penairy of perjury that I am employed by the Ciry of Chula Vista in the office of the City Clerk end that I posted the document according to Brown Act requiremenu. ' �. . .-=y-i-• Datod: 2 I� Signed� � .. ->;,,, ��{// i . _�,;;r�r � %�� � �. . , cm oF , " CHULA VISTA • p o • � f����.�%��/ � Mary Casillas Salas, Mayor Patricia Aguilar, Councilmember Gary Halbert, City Manager Pamela Bensoussan, Councilmember Glen R. Googins, City Attomey John McCann, Councilmember ponna R. Norris, City Clerk Steve Miesen, Councilmember 7uesday, February 9, 2016 5:00 PM Council Chambers 276 4th Avenue, Buiiding A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL REVISED February 5, 2016 CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Bensoussan, McCann, Miesen and Mayor Casillas Salas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY A. 16-0069 PRESENTATION OF A PROCLAMATION TO CHULA VISTA PUBLIC WORKS DEPARTMENT PUMP TECHNICIAN KENNETH THILTGEN, ON 25 YEARS OF SERVICE TO THE CITY OF CHULA VISTA Ciry o!Chula Ysta Page 1 Pnnted on 1/5/2076 City Council Agenda February 9,2016 B. 16-0074 PRESENTATION OF A PROCLAMATION TO HEALTH & HUMAN SERVICES AGENCY, CENTRAL & SOUTH REGION DIRECTOR BARBARA JIMENEZ AND SWEETWATER UNION HIGH SCHOOL DISTRICT SUPERINTENDENT FOR EQUITY, CULTURE & SUPPORT SERVICES DR. JOE FULCHER, PROCLAIMING THURSDAY, FEBRUARY 11, 2016, AS LOVE YOUR HEART DAY IN CHULA VISTA CONSENT CALENDAR (Items 1 -4) 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. 15-0593 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; REJECTING THE BID OF THE FIRST APPARENT LOW BIDDER, PIPERIN CORPORATION, AS NON-RESPONSIVE; AWARDING A CONTRACT FOR THE "SEWER REHABILITATION PROJECT, FISCAL YEAR 2012/2013 AT VARIOUS LOCATIONS (CIP# SW276)" PROJECT TO SOUTHWEST PIPELINE AND TRENCHLESS CORP. IN THE AMOUNT OF $508,450; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS oe��u,e�r Public Works Department EnvironmentalNOlice: Th2 Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. sanae�ommenaauo�: Council adopt the resolution. Ciry of Ch Wa V4sta Page 2 Pnmed on YS/207E Ciry Council Agenda February 9,2016 2. 15-0611 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT FOR PAVEMENT TESTING AND MANAGEMENT SERVICES BETWEEN THE CITY OF CHULA VISTA AND NICHOLS CONSULTING ENGINEERS, CHARTERED oe�,�e�r: Public Works Department EnvironmenlalNOtice: TF1E activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. smeRecomme�aauon: Council adopt the resolution. 3. 16-0024 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $1,100,000 FROM THE AVAILABLE BALANCE OF THE GAS TAX FUND TO THE "STORM DRAIN REPAIRS AT VARIOUS LOCATIONS (CIP# DR204)" PROJECT AND REDUCING THE "STORM DRAIN REHABILITATION PROJECT, FISCAL YEAR 2015/2016 (CIP# DR202)" CIP BUDGET BY $269,000 IN TRANSNET FUNDS, AND APPROPRIATING THE EQUIVALENT AMOUNT TO CIP# DR204 (4/5 VOTE REQUIRED) oePa�e�r. Public Works Department EnvironmentalNotice: Th2 Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. smna�omme�aauo�: Council adopt the resolution. 4. 16-0013 ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.47 - "HEALTHY CHULA VISTA ADVISORY COMMISSION" (FIRST READING) oe��n„e�r: Development Services Department EnvironmenlalNoUce: TI1B activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. smeRecomme�aauo�: Council place the ordinance on first reading. ITEMS REMOVED FROM THE CONSENT CALENDAR Ciry o/ChuW Visfa Paga 7 Printed on?/5l1018 City Council Agenda February 9,2016 PUBLIC COMMENTS Persons speaking dunng Public Comments may address the Council on any subject matte� within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refe�the matter to staff. Comments a�e limited to three minutes. 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. 5. 15-0634 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TERMS FOR A TRANSFER AGREEMENT AND OPERATING AGREEMENT BETWEEN THE UNITED STATES OLYMPIC COMMITTEE (USOC) AND THE CITY OF CHULA VISTA (CITY) PROVIDING FOR USOC TRANSFER TO CITY OF THE CHULA VISTA OLYMPIC TRAINING CENTER PROPERTY AND FACILITIES, AND CITY OPERATION OF THE FACILITY WITH THE USOC AS ITS PRIMARY TENANT FOR A PERIOD OF FOUR YEARS (WITH EXTENSIONS) oe�,r,,,e�c City Manager EnvironmentalNOlice: TI18 activity is not a "Project" as defined under Section 15378of the California Environmental Quality Act ("CEQA") State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. smna�omme�dauo�: Council adopt the resolution. 6. 15-0684 CONSIDERATION OF ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICT CFD N0. 17-I, WESTERN CHULA VISTA DEVELOPMENT IMPACT FEE (DIF) FINANCING PROGRAM (THE "FORMATION PROCEEDINGS") A) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED TO BE INCLUDED IN COMMUNITY FACILITIES DISTRICT NO. 17 -I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) Ciry o/Chula Ysta Paga I Pnnted on 7/5l1018 City Council Agenda February 9,2016 B) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE PAYMENT OF CERTAIN DEVELOPMENT IMPACT FEE OBLIGATIONS, ORDERING AND DIRECTING THE PREPARATION OF A REPORT FOR SUCH PROPOSED COMMUNITY FACILITIES DISTRICT, AND SETTING THE PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF SUCH DISTRICT oePa.m,e�t: Economic Development Department Environmental Nolice: TI1B activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. saaaecomme�aauo�: Council adopt the resolutions. 7. 16-0019 CONSIDERATION OF AUTHORIZING THE ANNEXATION IN THE FUTURE OF A CERTAIN TERRITORY TO CFD NO. 17-I (THE "FUTURE ANNEXATION AUTHORIZATION PROCEEDINGS") A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A BOUNDARY MAP SHOWING TERRITORY PROPOSED TO BE AUTHORIZED TO BE ANNEXED IN THE FUTURE TO COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION IN THE FUTURE OF A CERTAIN TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM), AND SETTING THE PUBLIC HEARING TO CONSIDER SUCH ANNEXATION oePa,v�e�r Economic Development Department EnvlronmentalNOtice: TI12 activity is not a "ProjecY' as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. smeRecomme�aa�o�: Council adopt the resolutions. Clty o/Chula VsW Paga 5 Pnnted on YS/1016 City Council Agenda February 9,2076 CITY MANAGER'S REPORTS MAYOR'S REPORTS 8. 16-0073 RATIFICATION OF APPOINTMENTS TO THE FOLLOWING COMMISSIONS: - Mayra Swanson, Board of Library Trustees - Carlos Jaime, Resource Conservation Commission COUNCILMEMBERS' COMMENTS 9. 16-0077 Consideration of City Council endorsement of the Community Opus Project Viva Musica event, May 7, 2016. ADJOURNMENT to the Regular City Council Meeting on Feb�uary 16, 2016, 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 lor public review at the City Clerk's Of/ice, located in City Hall at 276 FouRh Avenue, Building A, dunng normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The Cdy of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the Cdy Clerk's O�ce at(619) 691-5041(Califomia Relay Service is available for the heanng impaired by dialing 711) at least loRy-eight hours in advance ol the meeting. Most Chula Vista City Council meetings, including pu6lic comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channe124 (only in Chula Vista), and online at www.chulavistaca.gov. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels)and are archived on the City's website. Sign up at www.chulavistaca.gov to receive email notilications when City Council agendas are published online. Ciry o7 ChuW Yub Page 6 Pnnted on YS/1076 City Council Agenda February 9,2016 NOTICE OF REVIEW AND PENDING APPROVAL OF FINAL MAP(S) In accordance with Cali(omia Govemment Code Section 66458(d), notice is hereby given that the City Enginee�has reviewed and, immediately following this City Council meeting of Febivary 9, 2016, will approve the following final map: Chula Vista Tract No. 07-07, Concordia Cove, 23 single-/amily units located on 3.899 acres at 267 East Oxford Street, north of East Ox/oN Street and east of Melrose Avenue. Spec�cally, the City Engineer has caused the map to be examined and has made the following findings: (1) The map substantially conforms to the approved tentative map, and any approved alterations thereof and any conditions o/approval imposed with said tentative map. (2) The map complies with the provisions of the Subdivision Map Act and any local ordinances applicable at the time of approval o/the tentative map. (3) The map is technically correct. Said map will be finalized and recorded, unless an interested party�les a valid appeal of the City Engineers action to City Council no late�than 2:00 p.m., 10 calenda�days from the date of this City Council meeting. A valid appeal must identify the improper�ncorrect�nding and the basis for such conclusion. 1/you have any questions about the map approval findings or need additional information about the map or your appeal rights. please feel free to contact Tom Adle�at(619) 409-5483. Cify ol Chufa Vista Page 7 Pnntetl on 7/52078 City of Chula Vista Staff Report File#:16-0069, Item#: A. PRESENTATIONOFAPROCLAMATIONTOCHULAVISTAPUBLICWORKSDEPARTMENT PUMPTECHNICIANKENNETHTHILTGEN,ON25YEARSOFSERVICETOTHECITYOF CHULA VISTA City of Chula VistaPage 1 of 1Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 7 City of Chula Vista Staff Report File#:16-0074, Item#: B. PRESENTATIONOFAPROCLAMATIONTOHEALTH&HUMANSERVICESAGENCY,CENTRAL &SOUTHREGIONDIRECTORBARBARAJIMENEZANDSWEETWATERUNIONHIGHSCHOOL DISTRICTSUPERINTENDENTFOREQUITY,CULTURE&SUPPORTSERVICESDR.JOE FULCHER,PROCLAIMINGTHURSDAY,FEBRUARY11,2016,ASLOVEYOURHEARTDAYIN CHULA VISTA City of Chula VistaPage 1 of 1Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 8 City of Chula Vista Staff Report File#:15-0593, Item#: 1. RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAACCEPTINGBIDS; REJECTINGTHEBIDOFTHEFIRSTAPPARENTLOWBIDDER,PIPERINCORPORATION,AS NON-RESPONSIVE;AWARDINGACONTRACTFORTHE“SEWERREHABILITATIONPROJECT, FISCALYEAR2012/2013ATVARIOUSLOCATIONS(CIP#SW276)”PROJECTTOSOUTHWEST PIPELINEANDTRENCHLESSCORP.INTHEAMOUNTOF$508,450;WAIVINGCITYCOUNCIL POLICYNO.574-01;ANDAUTHORIZINGTHEDIRECTOROFPUBLICWORKSTOEXECUTE ALL CHANGE ORDERS RECOMMENDED ACTION Council adopt the resolution. SUMMARY OnNovember18,2015,theDirectorofPublicworksreceivedfour(4)sealedbidsforthe"Sewer RehabilitationProject,FY2012/2013atVariousLocations(CIP#SW276)".Theprojectconsistsof lining existing sewer main pipes, spot repairs of sewer main pipes, and manhole rehabilitation. ENVIRONMENTAL REVIEW Environmental Notice TheProjectqualifiesforaClass1CategoricalExemptionpursuanttoSection15301(Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedprojectforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthatthe“SewerRehabilitation Project,FY2012/2013ATVARIOUSLOCATIONS(CIP#SW276)”projectqualifiesforaClass1 categoricalexemptionpursuanttoSection15301(ExistingFacilities)Thus,nofurtherenvironmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Based on the results of field inspections a number of sewer pipes and manholes have been identified by the Public Works Department as requiring replacement and/or rehabilitation. Certain sections of pipe are cracked and need to be replaced or repaired to prevent groundwater infiltration or leaching of raw sewage into the ground. The general scope of Sewer Rehabilitation Project, FY 2012/2013 at Various Locations (CIP# SW276) consists of lining existing sewer main pipes, spot repairs of sewer main pipes, and epoxy lining of manholes. The locations of work to be done are highlighted in the City of Chula VistaPage 1 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 9 File#:15-0593, Item#: 1. attached project Location Summary Map (Attachment 1). On October 30, 2015, the Director of Public Works received four (4) sealed bids as follows: CONTRACTORBASE BID TOTAL 1Piperin Corporation - Vista, Ca$497,850 2Southwest Pipeline and Trenchless$508,450 Corp. - Torrance, Ca 3Palm Engineering - San Diego, Ca$595,550 4Weir Construction - Escondido, Ca$660,915 TheapparentlowbidbyPiperinCorporationwasdeemednon-responsivebasedonthelisted subcontractor,AcePipeline,notmeetingexperiencerequirementsasdescribedinthecontract documentsforsewermainliningwork.Thecontractdocumentsstatedtheinstallermusthavea minimumexperienceof500,000linearfeetofinstallationsforthelinerintendedforuseonthis project.AcePipeline’sexperienceisapproximately20%oftheminimumstipulation.Additionally, PiperinCorporationandAcePipelinefailedtomeetthecontractrequirementofownershipand operationofitsownpermittedwet-outfacilitywhereresinimpregnationofthecuredinplacepipe (CIPP)tubewillbecarriedout.Experiencedocumentationwasself-reportedbyPiperinandits subcontractorAcePipeline.Sewerliningworkishighlyskilledwork;minimuminstallationexperience andwet-outfacilityrequirementsensuretheCityreceivesaproperinstallationthatmeetsorexceeds the 50 year design life of CIPP lining. ThesecondlowbidbySouthwestPipelineandTrenchlessCorp.of$508,450is$109,595 (approximately 18%) below the Engineer's estimate of $618,045. SouthwestPipelineandTrenchlessCorp.isacurrentlyanactivelicensedClass“A”,General EngineeringContractor(LicenseNo.773862)andhasperformedsimilarworkintheCitywith satisfactoryperformance.StaffhasreviewedSouthwestPipelineandTrenchlessCorp.bidand determinedittoberesponsive.Therefore,staffrecommendsawardingSW276projectcontractto Southwest Pipeline and Trenchless Corp. TheproposedresolutionwouldalsoauthorizetheDirectorofPublicWorkstoapprovechangeorders overandaboveexistingpolicylimits.UnderCityCouncilPolicyNo.574-01,ifanindividualchange ordercausesthecumulativeincreaseinchangeorderstoexceedtheDirector’sauthority,(“Maximum AggregateIncreaseinChangeOrders”),CityCouncilapprovalisrequired.Thecorresponding maximumaggregatecontractincreasethatmaybeapprovedbytheDirectorofPublicWorksunder PolicyNo.574-01is$38,591.50.ApprovaloftheresolutionwouldincreasetheDirectorofPublic Worksauthoritytoapprovechangeorders,withoutCityCouncilapprovalasnecessary,upto contingencyamountof$76,270(approximately15%ofthecontract),anincreaseof$37,678.50over PolicyNo.574-01.IncreasingtheDirector’sauthoritywillallowtheprojecttocontinuewithoutdelay shouldunforeseencircumstancesariseresultinginincreasedprojectcostsduringthecourseof construction. Wage Statement TheContractoranditssubcontractorsarerequiredbybidspecificationstopayprevailingwage City of Chula VistaPage 2 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 10 File#:15-0593, Item#: 1. (“PrevailingWageRates”)topersonsemployedbythemforworkunderthisContract.Inaccordance withtheprovisionsofSection1773oftheLaborCodeoftheStateofCalifornia,theCityofChula Vistahasascertainedthegeneralprevailingwagescalesapplicabletotheworktobedone.The prevailingwagescalesarethosedeterminedbytheDirectorofIndustrialRelations,Stateof California. Disclosure Statement Attachment 2 is a copy of the Contractor’s Disclosure Statement for resolution A. DECISION-MAKER CONFLICT StaffhasreviewedthepropertyholdingsoftheCityCouncilandhasfoundnopropertyholdings within500feetoftheboundariesoftheproperties,whicharethesubjectoftheseactions.Staffisnot independentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofanyotherfactthat may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.TheSewer RehabilitationProject,FY2012/2013atvariouslocations(CIP#SW276)projectsupportstheStrong andSecureNeighborhoodsStrategicGoalasitmaintainspublicinfrastructurevitaltothequalityof life for residents. CURRENT YEAR FISCAL IMPACT ApprovalofthefirstresolutionwillinitiatetheconstructionphaseofSW276.SufficientSewerfunds are available in SW276 to complete the project. Therefore, there is no additional impact to the fund. The table below summarizes the anticipated project costs. FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount$508,450 B. Contingency (Approximately 15% of contract)$76,270 C. Construction Inspection Staff Cost$110,000 TOTAL FUNDS REQUIRED FOR CONSTRUCTION$694,720 ONGOING FISCAL IMPACT Uponcompletionoftheprojects,theimprovementswillrequireonlyroutinemaintenanceofthesewer and drainage facilities. ATTACHMENTS 1.Project Locations Map 2.Contractor’s Disclosure Statement from Southwest Pipeline and Trenchless Corp. Staff Contact: David Hicks, Assistant Civil Engineer City of Chula VistaPage 3 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 11 File#:15-0593, Item#: 1. City of Chula VistaPage 4 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 12 0 ¦¤ 13 N Location of Work Legend Feet 0200400 SW276 FY 2012/13 Rehabilitation Location Summary Map Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 14 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 15 RESOLUTION NO. 2016-______ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; REJECTING THE BID OF THE FIRST APPARENT LOW BIDDER, PIPERIN CORPORATION, AS NON-RESPONSIVE; AWARDING A CONTRACT FOR THE "SEWER REHABILITATION PROJECT, FY 2012/2013 AT VARIOUS LOCATIONS (CIP# SW276)" PROJECT TO SOUTHWEST PIPELINE AND TRENCHLESS CORP. IN THE AMOUNT OF $508,450; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS WHEREAS, the purpose of the project is to rehabilitate the City’s sewer system by lining existing sewer main pipes, spot repairs of sewer main pipes,and manhole rehabilitation; and WHEREAS, The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the “Sewer Rehabilitation Project, FY 2012/2013 at Various Locations (CIP# SW276)” project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities).Thus, no further environmental review is necessary; and WHEREAS, On October 30, 2015, the Director of Public Works received four (4) sealed bids for the “Sewer Rehabilitation Project, FY 2012/2013 at Various Locations (CIP# SW276)”; and WHEREAS, the following bids were received: CONTRACTORBASE BID TOTAL 1Piperin Corporation -Vista, Ca$497,850 Southwest Pipeline and Trenchless Corp. – 2$508,450 Torrance, Ca 3Palm Engineering –San Diego, Ca$595,550 4Weir Construction –Escondido, Ca$660,915 WHEREAS, The apparent low bid by Piperin Corporation was deemed non-responsive based a listed subcontractor, Ace Pipeline, not meeting experience requirements as described in the contract documents for their associated lines of work; and WHEREAS, SouthwestPipeline and Trenchless Corp. is a currently an active licensed Class “A”, General Engineering Contractor (License No. 773862) and has performed similar work in the City with satisfactory performance; and WHEREAS, all companies associated with this contract are registered as public works contractors with the California Department of Industrial Relations (DIR); and ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 16 WHEREAS, in accordance with the provisions of Section 1773 of the Labor code of the State of California, the contractor and its subcontractors are required by bid specifications to pay prevailing wages to persons employed by them for work under this contract; and WHEREAS, in the City Council Policy No. 574-01, the maximum aggregated contract increase that may be approved by the Director of Public Works for the SW276 project is $38,591.50; and WHEREAS, approval of the resolution would increase the Director of Public Works authority to approve change ordersas necessary, without further City Council approval, in an amount not to exceedthe contingency amount of $76,270 (approximately 15% of the contract); and WHEREAS, a breakdown of construction costs are as follows: FUNDS REQUIRED FOR CONSTRUCTION A.Contract Amount$508,450 B.Contingency (Approximately 15% of contract)$76,270 C.Construction Inspection Staff Cost$110,000 TOTAL FUNDS REQUIRED FOR CONSTRUCTION$694,720 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby accept bidsandaward a contract for the “Sewer Rehabilitation Project, FY 2012/2013 at Various Locations (CIP# SW276)” project to Southwest Pipeline and Trenchless Corp. in the amount of $508,450; NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City ofChula Vista, that it does waive City Council Policy 574-01 and authorize the expenditure of all contingency funds in an amount not to exceed $76,270. Presented byApproved as to form by ________________________________________________________________________ Richard A. HopkinsGlen R. Googins Director of Public WorksCity Attorney ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 17 City of Chula Vista Staff Report File#:15-0611, Item#: 2. RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAAPPROVINGAN AGREEMENTFORPAVEMENTTESTINGANDMANAGEMENTSERVICESBETWEENTHECITY OF CHULA VISTA AND NICHOLS CONSULTING ENGINEERS, CHARTERED RECOMMENDED ACTION Council adopt the resolution. SUMMARY ThelastCitywidepavementtestingandevaluationtookplacein2011.Thecurrentpavement managementdataisoutdatedandnolongerreflectstheactualpavementconditionofCitystreets. Fourconsultantssubmittedproposals;oneoftheseproposalswasnotconsideredsinceitwasnot receivedbytheduedate.Basedonreviewoftheremainingproposals,staffrecommendsthatthe contract be awarded to Nichols Consulting Engineers, Chartered. ENVIRONMENTAL REVIEW Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality ActStateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)noenvironmental review is required. Environmental Determination TheproposedactivityhasbeenreviewedforcompliancewiththeCaliforniaEnvironmentalQuality Act(CEQA)andithasbeendeterminedthattheactivityisnota“Project”asdefinedunderSection 15378oftheStateCEQAGuidelinesbecauseitwillnotresultinaphysicalchangeinthe environment;therefore,pursuanttoSection15060(c)(3)oftheStateCEQAGuidelines,theactivity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable DISCUSSION TheCaliforniaStreetsandHighwaysCoderequiresCaliforniaCitiestoinitiateandmaintaina PavementManagementSystem(PMS)asaconditionofobtainingStateTransportationImprovement Programsfunding.Roadwaypavementsareoneofamunicipality’slargestassetsandaprimary infrastructureresponsibility.TheCityofChulaVistaownsapproximately463centerlinemilesof pavementwithanestimatedvalueofabout$1billion.Annually,pavementrehabilitationand maintenance requires one of the largest annual City expenditures of transportation funding. Since2006,theCityhasbeenutilizingthePMSsoftwareStreetSavertodeveloptheannual City of Chula VistaPage 1 of 3Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 18 File#:15-0611, Item#: 2. pavementrehabilitationprogramthatreliesonacitywidepavementinspection.TheCity’scurrent overallPavementConditionIndex(PCI)isestimatedtobe71,whichisconsideredaverygood conditionrating(“verygood”rangesfrom70to85).Streetsaverrequiresperiodicinspectionofthe entirestreetnetwork(typicallyeveryfiveyears)inordertocalibratetherateofdeteriorationcurves usedintheprogramandinsuretheaccuracyofthepavementratings.Thelastcitywideinspection was conducted in 2011. OnAugust28,2015,staffissuedaRequestforProposals(RFP)toProvidePavementTestingand ManagementServices.ThiscontractwouldincludetheinspectionofalloftheCity’spublicstreets andalleysusingvisualmethodscompatiblewithStreetSaverrequirements.Twoaddendumswere posted to the City’s web site on September 11 andSeptember 28, 2015. TheCityreceivedthreeproposalsbytheduedateofOctober7,2015.AproposalfromAdhara SystemswasreceivedonOctober9,anditwasthereforenotopenedandnotconsidered.All selection panel members agreed with the ranking given to these firms. RANKCONSULTANTLOCATIONFEEUPDATE HOURS ESTIMATE 1Nichols ConsultingFountain Valley,$132,800940 EngineersCA 2Petil EngineeringSan Diego, CA$176,117.761152 3The Barnhardt GroupSan Bruno, CA$143,112.50Not given Afterreviewingthethreeproposals,staffdeterminedthatinterviewswouldnotbenecessary,since the most qualified firm could be determined without going through the interview process. NicholsEngineeringhadthebestunderstandingoftheworkrequiredunderthecontractandthey submittedalldocumentsrequiredbytheRFP.Additionally,theyincludedhighlyexperiencedstaff membersontheirteam,havegoodplansforqualitycontroloftheirinspectionwork,andhaveavery goodunderstandingofStreetSaverandinspectionprocedures.Staffissatisfiedwiththe thoroughnessandaccuracyoftheworkdoneonthepreviouspavementmanagementcontract.Their costestimateiswellwithinthefundingprovidedforconsultantandstafftimeassociatedwiththis Capital Improvement Project (OP219). Their cost breakdown is provided in Attachment 1. Theproposedagreementisattached(Attachment2).ThisagreementfollowstheScopeofWork withonemodification.NicholsEngineeringproposedanoptionalservicetoprovideGeographic InformationSystems(GIS)linkagewithintheStreetSaverprogram.ThiswouldallowCitystaffto easilycreateup-to-datemapsoncitywidepavementconditions,pavementsegmentsselectedfor treatment,theimpactofdifferentbudgetscenarios,etc.Thisfeaturewouldenhancestaff’sabilityto puttogetherannualpavementrehabilitationprogramsandprovideinformationtoCouncilandthe public.TheGISlinkageadds$7,200totheprojectbudgetandstaffrecommendsitbeincludedin this contract. TheRFPincludedaprovisionforOptionalServices.Thisprovides,attheCity’soption,inspectionof selectedstreetstwotothreeyearsaftercompletionoftheCitywideinspection.Inthelastinspection contract,asimilarprovisionallowedforare-inspectionofalltheCity’smajorstreets(Collectorsand City of Chula VistaPage 2 of 3Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 19 File#:15-0611, Item#: 2. Arterials).Thisprovisionisincludedintheagreementforanottoexceedamountof$60,000.Thisis largerthantheamountinNichols’CostEstimateinordertoallowforinspectionofalargernumberof street segments (800 to 900) in the mid-cycle inspection. DECISION-MAKER CONFLICT Staffhasreviewedthedecisioncontemplatedbythisactionandhasdeterminedthatitisnotsite- specificandconsequently,the500-footrulefoundinCaliforniaCodeofRegulationsTitle2,section 18702.2(a)(11),isnotapplicabletothisdecisionforpurposesofdeterminingadisqualifyingreal property-relatedfinancialconflictofinterestunderthePoliticalReformAct(Cal.Gov’tCode§87100, et seq.). Staffisnotindependentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofany other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.Thegoalofthe PavementTestingandManagementcontractistosupporttheStrongandSecureNeighborhood Strategy.ItwillguideCitystaffinpreparingprogramsforthemaintenanceandrehabilitationofthe City’sstreets,therebyprovidingasafeandefficientroadwaysystemforresidents,businessesand visitors. CURRENT YEAR FISCAL IMPACT Thecurrentyearcostincludes$132,800forthebasiccontractand$7,200fortheadditionalGIS Linkagetask,foratotalof$140,000.TherearesufficientTransNetfundsinCIPProjectOP219: Pavement Management System to cover this expenditure. Therefore, no appropriation is required. ONGOING FISCAL IMPACT Thisagreementincludesanoptional$60,000toinspectmajorstreetsandotherstreetsofinterest. ThistaskmustbecompletedbyJune30,2019,andwillbefundedbyTransNetfundsassociated with CIP OP219. ATTACHMENTS 1.Nichols Engineering Cost Proposal 2.Proposed Agreement Staff Contact: Elizabeth Chopp, Senior Civil Engineer City of Chula VistaPage 3 of 3Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 20 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 21 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 22 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 23 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 24 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 25 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 26 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 27 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 28 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 29 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 30 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 31 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 32 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 33 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 34 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 35 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 36 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 37 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 38 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 39 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 40 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 41 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 42 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 43 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 44 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 45 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 46 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT FOR PAVEMENT TESTING AND MANAGEMENT SERVICES BETWEEN THE CITY OF CHULA VISTA ANDNICHOLS CONSULTING ENGINEERS, CHARTERED WHEREAS,the Cityrequires updated information on the pavement condition of all public streets included in the City’s Pavement Management System in order to determine which streets need to be part of a rehabilitation program.The City’s most recent Citywide inspection was done in fall 2011; and WHEREAS,staff issued a Request for Proposals to provide Pavement Testing and Management Services on August 28, 2015; and WHEREAS, four proposals were submitted by consultants. One of the proposals was received after the due date andwas therefore disqualified; and WHEREAS, the Selection Committee reviewed the three remaining proposals and decided that Nichols Consulting Engineers was the most qualified firm; and WHEREAS, Consultant warrants and represents that it is experienced andstaffed 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 the agreement; and WHEREAS, Consultant’s original bid for the required services was $132,800. Staff recommends adding work related to Geographic Information Systems linkage for $7,200 for a total of $140,000; and WHEREAS, the Request for Proposals included a stipulation for additional services (re- inspecting a selection of City streets within two to three years) at the option of the City. Staff estimates that the maximum cost of this work would be $60,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves theAgreement for Pavement Testing and ManagementServices, between the City of Chula Vista and Nichols Consulting Engineers, Chartered, inthe form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which , shall be kepton file in the Office of the City Engineerand authorizesand directsthe Mayoror Public Works Directorto execute same. Presented by Richard A. Hopkins ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 47 Resolution No. Page 2 Director of Public WorksApproved as to form by Glen R. Googins City Attorney ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 48 City of Chula Vista Staff Report File#:16-0024, Item#: 3. RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAAPPROPRIATING $1,100,000FROMTHEAVAILABLEBALANCEOFTHEGASTAXFUNDTOTHE“STORMDRAIN REPAIRSATVARIOUSLOCATIONS(CIP#DR204)”PROJECTANDREDUCINGTHE“STORM DRAINREHABILITATIONPROJECT,FISCALYEAR2015/2016(CIP#DR202)”CIPBUDGETBY $269,000INTRANSNETFUNDS,ANDAPPROPRIATINGTHEEQUIVALENTAMOUNTTOCIP# DR204 (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY Duetotheinclementweathertheregionhasrecentlyexperiencedandisexpecting,failuresinthe CorrugatedMetalPipe(CMP)areanticipatedtooccur.Suchfailurescouldresultindamagetopublic andprivatepropertyandmayjeopardizethehealth,safetyandthegeneralwelfareofthecommunity. Becauseoftheimminentnatureofthethreatsinvolved,onNovember6,2015,theDirectorofPublic WorksissuedaninformationalmemonotifyingtheMayorandCityCouncilthatstaffwaspreparing constructioncontractstoaddressthepotentialCMPfailuresandthattheworkwouldbeprocuredin accordance with the emergency provisions contained in Section 1009 of the City Charter. Theproposedresolution,ifapproved,willappropriate$1,100,000fromtheGasTaxFundtoCIP# DR204(StormDrainRepairsatVariousLocations)andtransfer$269,000fromCIP#DR202(Storm DrainRehabilitationProjectFY2015/16)toCIP#DR204torepairfailingcorrugatedmetalpipe(CMP) intheCity’sstreetright-of-waythatposesahighriskofdamagetopublicandprivatepropertyand may jeopardize the health, safety, and general welfare of the community. ENVIRONMENTAL REVIEW Environmental Notice TheProjectqualifiesforaClass1CategoricalExemptionpursuanttoSection15301(Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedprojectforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheproject,whichconsistsof removingdebrisandblockages,spotrepairs,andliningofexistingCMPstormdrainpipesatvarious locations,qualifiesforaClass1CategoricalExemptionpursuanttoSection15301(Existing Facilities)oftheStateCEQAGuidelinesbecausetheproposalinvolvesnegligibleornoexpansionof anexistinguse,andallworkwillbedonewithinexistingCityofChulaVistaright-of-way.Thus,no further environmental review is required. City of Chula VistaPage 1 of 3Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 49 File#:16-0024, Item#: 3. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION CityStaffreviewedrecentCorrugatedMetalPipe(CMP)videosandidentifiedanumberofpipe segmentsthathavedegradedtoapointoffailure.WhiletheseCMPsegmentshavenotfully collapsed,theyareconsideredtobeinastateoffailurenowduetotheirinabilitytoperformas designed(flowcapacity)aswellastheclearlossofstructuralintegrity.Theimminentcollapseofthe pipes,ifnotrepairedintime,mayleadtolossoftheroadway,damageofadjacentpropertiesand facilities,andpossiblestormsystemdischargeviolations(NPDESpermit).Throughaninformational memo,datedNovember6,2015,theDirectorofPublicWorksnotifiedtheMayorandCityCouncil thatstaffwaspreparingconstructioncontractsinaccordancewiththeemergencyprovisions containedinCityCharterSection1009toavoidthethreatsposedtopublicandprivateproperty (Attachment1).Inordertofundtherepairs,itisnecessarytoappropriatefundsintoCIP#DR204 (Storm Drain Repairs at Various Locations). Theproposedresolution,ifapproved,willappropriate$1,100,000fromtheGasTaxFundtoCIP# DR204(StormDrainRepairsatVariousLocations)andtransfer$269,000fromCIP#DR202(Storm DrainRehabilitationProjectFY2015/16)toCIP#DR204torepairthefailingcorrugatedmetalpipe (CMP). AllconstructionunderthisprojectoccurswithinCityright-of-way,understreetsandsidewalk.No work is proposed in open channels, sensitive habitat, or wetland areas. Due to the nature of drainage repair work, actual costs can vary widely. Staff will return with a Council Agenda item to report final emergency repair costs and to ratify the actions taken under the stated provision of the City Charter. DECISION-MAKER CONFLICT Staffhasreviewedthedecisioncontemplatedbythisactionandhasdeterminedthatitisnotsite- specificandconsequently,the500-footrulefoundinCaliforniaCodeofRegulationsTitle2,section 18702.2(a)(11),isnotapplicabletothisdecisionforpurposesofdeterminingadisqualifyingreal property-relatedfinancialconflictofinterestunderthePoliticalReformAct(Cal.Gov'tCode§87100, et seq.). Staffisnotindependentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofany other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.TheEmergencyStorm DrainRepairsatvariouslocations(CIP#DR204)projectsupportstheStrongandSecure NeighborhoodsStrategicGoalasitmaintainspublicinfrastructurevitaltothequalityoflifefor residents. City of Chula VistaPage 2 of 3Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 50 File#:16-0024, Item#: 3. CURRENT YEAR FISCAL IMPACT Approvaloftheproposedresolutionwillappropriate$1,100,000fromtheGasTaxFundtoCIP# DR204andtransfer$269,000inTransNetfundsfromCIP#DR202toCIP#DR204tocomplete emergencydrainagerepairswithinthestreetright-of-way.SufficientfundsareavailableintheGas Tax Fund and in CIP# DR202 for this appropriation. ONGOING FISCAL IMPACT Upon completion of the repairs, the pipes will only require routine maintenance. ATTACHMENTS 1.DR204 Emergency Repair Memo Staff Contact: Alan Reyes, Associate Civil Engineer City of Chula VistaPage 3 of 3Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 51 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 52 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 53 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 54 RESOLUTION NO. 2016-______ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $1,100,000 FROM THE AVAILABLE BALANCE OF THE GAS TAX FUND TO CIP# DR204(STORM DRAIN REPAIRS AT VARIOUS LOCATIONS)ANDREDUCING THE DR202 (STORM DRAIN REHABILITATION PROJECT FY2015/16)CIP BUDGET BY $269,000 IN TRANSNET FUNDS AND APPROPRIATING THE EQUIVALENT AMOUNT TO CIP# DR204 WHEREAS, City staff reviewed the most recent Corrugated Metal Pipe (CMP) videos from the City’s Closed Circuit Television contractor(delivered October 2015), and identified a number of pipe segments that havedegraded to a point of failure; and WHEREAS, failure of these segments could result in damage to private and public propertyandviolation of the City’s NPDES permit; and WHEREAS, through an informational memo, datedNovember 6, 2015, the Directorof Public Works notified the Mayor and City Council that staff was preparing construction contracts in accordance with the emergency provisions contained in City Charter Section 1009 to avoid the threats posed by failure of the CMP; and WHEREAS,in order tocompletethe emergency drainage repairs, additional funding is necessary. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves anappropriationof $1,100,000from the available balanceof the Gas Tax Fundto CIP#DR204(Storm Drain Repairs at Various Locations)and reducing the DR202 (Storm Drain Rehabilitation Project FY2015/16)CIP budget by$269,000 in TransNet funds and appropriating the equivalent amount to CIP#DR204. Presented byApproved as to form by ________________________________________________________________________ Richard A. HopkinsGlen R. Googins Director of Public WorksCity Attorney ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 62 City of Chula Vista Staff Report File#:16-0013, Item#: 4. ORDINANCEOFTHECITYOFCHULAVISTAADDINGCHULAVISTAMUNICIPALCODE CHAPTER 2.47 - “HEALTHY CHULA VISTA ADVISORY COMMISSION” (FIRST READING) RECOMMENDED ACTION Council place the ordinance on first reading. SUMMARY OnJanuary5,2016theCityofChulaVistaadoptedthefirstHealthyActionPlaninclusiveofa strategytodevelopanadvisorycommissiontoguidefutureprogramsandpoliciesrelatedtothe healthandwell-beingofChulaVistaresidents.Atthistime,staffisbringingforwardanordinanceto adopt the Healthy Chula Vista Advisory Commission. ENVIRONMENTAL REVIEW Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality ActStateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)noenvironmental review is required. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedactivityforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheactivityisnota“Project”as definedunderSection15378oftheStateCEQAGuidelinesbecauseitwillnotresultinaphysical changeintheenvironment;therefore,pursuanttoSection15060(c)(3)oftheStateCEQAGuidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Citiesplayacriticalroleinsupportingthehealthandwell-beingoftheircommunities.Recognizing theimportanceofhealthtoacommunity,theChulaVistaCityCounciladoptedSection3.1.1ofthe City’sStrategicPlan,whichsupportstheimplementationofpoliciesandprogramsthatsupportthe goalofcreatingaHealthyCommunity.ConsistentwiththeStrategicPlan,onJanuary5,2016the firstHealthyChulaVistaActionPlanwasadopted,providingasetofstrategiestoreview,createand evaluatepoliciesandprogramswithinthecityanddevelopkeycommunitypartnershipstopromote wellnesswithinourcommunity.AkeycomponentofthePlanincludesthedevelopmentofan advisory board to aid the City with future decisions related to health policies. City of Chula VistaPage 1 of 2Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 63 File#:16-0013, Item#: 4. TheproposedHealthyChulaVistaAdvisoryCommissionwouldincludefiveexpertsinoneormoreof theActionPlan’sfocusareasofLandUse,Transportation,Nutrition,HealthCare,PhysicalActivity and/orEnvironment;andthefourremainingseatsshallincludearesidentfromeachofthefourCity Council districts. Next Steps Once the Ordinance is approved and takes effect, staff will seek applications for the commission. DECISION-MAKER CONFLICT Staffhasdeterminedthattheactioncontemplatedbythisitemisministerial,secretarial,manual,or clericalinnatureand,assuch,doesnotrequiretheCityCouncilmemberstomakeorparticipatein makingagovernmentaldecision,pursuanttoCaliforniaCodeofRegulationsTitle2,Section18704 (d)(1).Consequently,thisitemdoesnotpresentaconflictofinterestunderthePoliticalReformAct (Cal. Gov't Code § 87100, et seq.). Staffisnotindependentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofany other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.Thisitemsupports Section3.1.1-Implementpoliciesandprogramsthatsupportahealthycommunity,byprovidingfor an advisory board on health related policies. CURRENT YEAR FISCAL IMPACT StaffsupportfortheremainderoftheyearwillbeprovidedunderexistingHealthyChulaVista Initiative funding sources. ONGOING FISCAL IMPACT Future year staffing expenses will be requested during the annual budget cycle. ATTACHMENTS 1.Ordinance Adopting CVMC 2.47 Healthy Chula Vista Advisory Commission Staff Contact:Stacey Kurz, Senior Project Coordinator City of Chula VistaPage 2 of 2Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 64 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.47- “HEALTHY CHULA VISTA ADVISORY COMMISSION” WHEREAS, the City of Chula Vista adopted the Healthy Chula Vista Initiative in 2013 to promote the healthand wellbeing of residents through partnerships, programs and policies; and WHEREAS, on January 5, 2016,the City Council adopted the Healthy Chula Vista Action Plan,which identifieda strategy of creating a health advisory commission to help guide theCity with policy and programs under the Initiative; and WHEREAS, the City staff recommends that the Healthy Chula Vista Advisory Commission be established, and has prepared anordinance to add Chapter 2.47 to the Chula Vista Municipal Code, establishingrules and procedures for the Healthy Chula Vista Advisory Commission. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. That Chapter 2.47 is hereby added to the Chula Vista Municipal Code, to read as follows: Chapter 2.47 HEALTHY CHULA VISTA ADVISORY COMMISSION Sections: 2.47.010Creation. 2.47.020Purpose and intent. 2.47.030Functions and duties. 2.47.040Membership. 2.47.050Meeting schedule. 2.47.010 Creation. TheHealthy Chula Vista Advisory Commission was created as a result of the Healthy Chula Vista Action Plan adopted January 5, 2016.The general rules governing boards and commissions set forth in CVMC Chapter2.25, shall govern the Healthy Chula Vista Advisory Board, except as specifically provided below. 2.47.020 Purpose and intent. It is the purpose and intent of the City Council, in establishing the Board, to create an advisory and coordinating body which is to serve as a resource, to advise and to make recommendations to the City Council and City Manager on health related policies and opportunities under the Healthy Chula Vista Initiative that would benefit the community. C:\\Users\\GRANIC~1\\AppData\\Local\\Temp\\BCL Technologies\\easyPDF 7\\@BCL@D0051932\\@BCL@D0051932.doc ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 65 Ordinance Page 2 2.47.030 Functions and duties. The functions and duties of the Healthy Chula Vista Advisory Commission shall be as follows: A. Serve as an advisory body to the City Council and City Manager. B. Periodically assess the health needs of the residents of Chula Vista and review health related policies and strategies, including the general plan and Healthy Chula Vista Action Plan to make recommendations to improve said plans to address identified community health needs. C. Perform such others functions or duties as may be delegated by the City Council. 2.47.040 Membership. A. The Healthy Chula Vista Advisory Commission shall consist of nine voting members, to be appointed in accordance with Article VI, sections 600 through 604, of the City Charter, CVMC Chapter 2.25, and this chapter. B. The voting members shall be appointed according to the following specifications: Five members shall have expertise and experience in at least one of the focus areas of the Healthy Chula Vista Action Plan: Land Use, Transportation, Nutrition, Health Care, Physical Activity and/or Environment; and the four remaining seats shall include a resident from each of the four City Council districts developed by the Chula Vista Districting Commission and approved by the Chula Vista City Council on July14, 2015, and shall, throughout their terms, maintain their residency and elector status. 2.47.050 Meeting schedule. The Commission shall hold regular meetings monthly on the second Thursday at 4:00 p.m., in the Council Conference Room (C-101), located in Building 100 (City Hall) in the Civic Center at 276 Fourth Avenue. The Commission may change its regular meeting day, time,or location by written resolution in accordance with CVMC section 2.25.200. Section II.Severability If any portion of this Ordinance, or its application to any person or circumstance, is for anyreason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted eachsection, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicateor contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 66 Ordinance Page 3 Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented byApproved as to form by _________________________________________________________________________ Kelly BroughtonGlen R. Googins Director of Development ServicesCity Attorney ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 67 City of Chula Vista Staff Report File#:15-0634, Item#: 5. RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAAPPROVINGTHE TERMSFORATRANSFERAGREEMENTANDOPERATINGAGREEMENTBETWEENTHE UNITEDSTATESOLYMPICCOMMITTEE(USOC)ANDTHECITYOFCHULAVISTA(CITY) PROVIDINGFORUSOCTRANSFERTOCITYOFTHECHULAVISTAOLYMPICTRAINING CENTERPROPERTYANDFACILITIES,ANDCITYOPERATIONOFTHEFACILITYWITHTHE USOC AS ITS PRIMARY TENANT FOR A PERIOD OF FOUR YEARS (WITH EXTENSIONS) RECOMMENDED ACTION Council adopt the resolution. SUMMARY Related documents will be uploaded as they become available. Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality ActStateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)noenvironmental review is required. City of Chula VistaPage 1 of 1Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 68 City of Chula Vista Staff Report File#:15-0684, Item#: 6. CONSIDERATIONOFESTABLISHMENTOFCOMMUNITYFACILITIESDISTRICTCFDNO. 17-I,WESTERNCHULAVISTADEVELOPMENTIMPACTFEE(DIF)FINANCING PROGRAM (THE “FORMATION PROCEEDINGS”) A)RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAADOPTINGAMAP SHOWINGTHEBOUNDARIESOFTHETERRITORYPROPOSEDTOBEINCLUDEDIN COMMUNITYFACILITIESDISTRICTNO.17-I(WESTERNCHULAVISTADIFFINANCING PROGRAM) B)RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTADECLARINGITS INTENTIONTOESTABLISHCOMMUNITYFACILITIESDISTRICTNO.17-I(WESTERN CHULAVISTADIFFINANCINGPROGRAM)ANDTOAUTHORIZETHELEVYOFA SPECIALTAXTHEREINTOFINANCETHEPAYMENTOFCERTAINDEVELOPMENT IMPACTFEEOBLIGATIONS,ORDERINGANDDIRECTINGTHEPREPARATIONOFA REPORTFORSUCHPROPOSEDCOMMUNITYFACILITIESDISTRICT,ANDSETTING THE PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF SUCH DISTRICT RECOMMENDED ACTION Council adopt the resolutions. SUMMARY InApril,2015,theCityCounciladoptedanamendmenttothemunicipalcodethatallowedtheCity CounciltodeferdevelopmentimpactfeesforprojectswithinWesternChulaVista.Thedeferralof impactfeescanbeaccomplishedbyagreementorbyprojectsannexingintoaCommunityFacilities District.Atthattime,staffindicatedthatitwouldreturnatalaterdatewiththecurrentactionto establishsuchaCommunityFacilitiesDistrictthatwouldbeavailabletoprojectslocatedinindustrial, commercialandhighdensityresidentialzoneslocatedthroughoutWesternChulaVistaandtheMain StreetAutoPark.ThisisthefirstofseveralactionsrequiredbytheCityCounciltoconsiderthe formationoftheCommunityFacilitiesDistrictwhichisproposedtobedesignatedasCommunity Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (the “CFD”). ENVIRONMENTAL REVIEW Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality ActStateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)noenvironmental review is required. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedactivityforcompliancewiththe City of Chula VistaPage 1 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 69 File#:15-0684, Item#: 6. CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheactivityisnota“Project” asdefinedunderSection15378oftheStateCEQAGuidelinesbecausetheactivityconsistsofa governmentalestablishedfeeprogramactivitywhichdoesnotinvolveanycommitmenttoany specificprojectwhichmayresultinapotentiallysignificantphysicalimpactontheenvironment. Therefore,pursuanttoSection15060(c)(3)oftheStateCEQAGuidelines,theactivityisnotsubject toCEQA.Thus,noenvironmentalreviewisrequired.Althoughenvironmentalreviewisnotrequired atthistime,oncethescopeofpotentialindividualprojectshasbeendefined,environmentalreview will be required for each project and the appropriate environmental determination will be made. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION InvestmentinWesternChulaVistacontinuestopresentafinancingchallengeforpotentialinvestors anddevelopers.Financingchallengesderiveprimarilyfromthelendingindustry’sincreasedequity requirementsimposeduponinfilldevelopmentprojectsinWesternChulaVista.Tohelpaddressthe additionalequityburdenbeingplacedoninfilldevelopmentinthesubjectarea,theCityCouncil adoptedanOrdinanceinApril2015thatallowsthedeferralofimpactfeestoincentivizefuture investmentinthisarea.Accordingly,staffenlistedthelegalservicesofWarrenDiven,Best,Best& Krieger,andfinancialservicesfirmWilldanFinancialServices,toassiststaffinpreparingand bringing forward this item to initiate formation of the CFD. Thedeferralofthepaymentofcertainimpactfeeswillreducetheadditionalequityburdenbyan amountequaltosuchfees.TheCFDwillalsoenablethedevelopertoshiftsuchimpactfeeburden fromtheconstruction/developmentcostsideoftheirledgertotheoperatingsideofthedevelopment. TheCFDwillnotbeutilizedasamechanismtoissuedebtbutratherasawaytofinancethe paymentofimpactfeesovertime.TheCFDwillbeavailableforafiveyearwindowinwhichproperty ownerscanelecttoannexintotheCFD,unlesstheavailabilityoftheCFDisextendedbytheCity Council.Itisanticipatedthatthislimitationwillprovideenoughtimeforprojectscurrentlyinprocess andthosepreviouslyapprovedtobeconstructed,soldand/orleasedout.Theseprojectswillprovide thecomparablesnecessarytoreducetherisktothelendingindustry.Oncelendingstandardsarein accordance with other markets, the CFD financing mechanism will no longer be necessary. TheresolutionsproposedwiththisreportarethefirstofseveralactionstobetakenbytheCity CouncilintheconsiderationoftheformationoftheCFD.Ingeneral,theseFormationProceedings willconsidertheadoptionoftheboundariesoftheCFDtoencompasstheproposed“Core”property upon its formation and declare the City Council’s intent to form the CFD. Morespecifically,ResolutionA(BoundariesofCommunityFacilitiesDistrictNo17-I)isamapofthe subjectpropertytobeincludedintheCFDboundary..Thesubjectpropertyislocatedat980-986 Broadway,atthenorthwestcornerofBroadwayandMossStreet.Allothermulti-family,commercial andindustriallandbetweenInterstate5and805,aswellastheAutoParkandadjacentindustrial landeastofInterstate805willbewithintheproposedFutureAnnexationAreaoftheCFD.Future separateCityCouncilactionsaspartofAgendaItem16-0019willrequiretheadoptionofthe boundary of the Future Annexation Area. City of Chula VistaPage 2 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 70 File#:15-0684, Item#: 6. ResolutionBdescribesthefeesthatwillbedeferredaswellastheRateandMethodof Apportionmentofthespecialtaxesthatwillbeleviedagainstthecorepropertytopaythedeferred impactfees(ExhibitAofResolutionB).TheproposedtermsforprojectsthatannexintotheCFD wouldallowforthedeferralofthePublicFacilitiesDevelopmentImpactFee,ParklandAcquisition andDevelopmentFeeandtheeligibleportionoftheTransportationDevelopmentImpactFee.There willbenospecialtaxpaymentsduefor10yearsfromthetimetheprojectreceivesacertificateof occupancy,butwillaccrueinterestattwopercent(2%)perannumfromthedateofissuanceofthe certificateofoccupancy.Specialtaxpaymentstowardthedeferredimpactfeeswillbeduefollowing th thetenth(10)anniversaryofthedateofthecertificateofoccupancyandwillcontinueuntilthefees th havebeenpaidinfullbythe30year.Thebalanceofthedeferredfeeandtheaccruedinterestwill bear2%currentinterestduringthe20yeartermofthelevyofthespecialtax.Prepaymentofthe deferredimpactfeesapplicabletoaparcelisavailableatanytimebyprepayingthespecialtax obligation for such parcel. ResolutionBalsosetsapublichearingonMarch15,2015toallowthepublictheopportunityto testifyregardingtheconsiderationoftheestablishmentoftheproposedCFD,therateandmethodof apportionmentofthespecialtaxproposedtobeleviedwithintheCFD,andallothermattersasset forthintheresolutionofintention.Lastly,theresolutiondirectstheDirectorofPublicWorksto prepareorcausetobepreparedtheCommunityFacilitiesDistrictReporttobepresentedtotheCity Council,generallysettingforthandcontainingtheDIFObligations,CostEstimateandtheratesand methods of apportionment of the special taxes proposed to be levied within the CFD. DECISION-MAKER CONFLICT StaffhasdeterminedthatapotentialconflictofinterestmayexistforCouncilmemberMiesen becauseitmaybereasonablyforeseeablethatafinancialeffectonabusinessentityinwhich Councilmember Miesen has a financial interest may be material. Inadditiontotheabove,StaffhasreviewedthepropertyholdingsofalloftheCityCouncilmembers andhasfoundnorealpropertyholdingswithin500feetoftheboundariesoftherealpropertywhich isthesubjectofthisaction.Consequently,thisitemdoesnotpresentadisqualifyingrealproperty- relatedfinancialconflictofinterestunderCaliforniaCodeofRegulationsTitle2,section18702.2(a) (11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). Staffisnotindependentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofany other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.Thedeferralofimpact feesfurtherstheEconomicVitalityinitiative2.1.2to“fosteropportunitiesforinvestmentinWestern ChulaVista”byremovingimpedimentsfordevelopmentprojectsinthesubjectarea,acceleratingthe completion of planned and future developments. CURRENT YEAR FISCAL IMPACT AllconsultantsandstafftimerelatedtothisactionarebeingfundedbytheEconomicDevelopment Department’s General Fund Budget. City of Chula VistaPage 3 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 71 File#:15-0684, Item#: 6. ONGOING FISCAL IMPACT Thereisnoongoingfiscalimpactasaresultofthisaction.Asstatedabove,theDirectorofPublic WorkswillprepareorcausetobepreparedtheCommunityFacilitiesDistrictReporttobepresented totheCityCouncil,generallysettingforthandcontainingtheDIFObligations,CostEstimateandthe ratesandmethodsofapportionmentofthespecialtaxesproposedtobeleviedwithintheCFD.This report will address the impacts of the future fee deferrals. ATTACHMENTS None Staff Contact: Craig Ruiz, Principal Economic Development Specialist City of Chula VistaPage 4 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 72 RESOLUTION NO. _____________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ADOPTING A MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED TO BE INCLUDED IN COMMUNITY FACILITIES DISTRICT NO. 17-I(WESTERN CHULA VISTA CFD) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (“City Council”), desires to initiate proceedings to create a Community Facilities District pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XIof the Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”). This Community Facilities District shall hereinafter be designated as COMMUNITY FACILITIES DISTRICT NO. 17-I(Western Chula Vista CFD) (the “District”); and, WHEREAS, there has been submitted a map showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. NOW, THEREFORE, IT IS HEREBY RESOLVEDby the City Council of the City of Chula Vista, that: SECTION 1.The above recitals are all true and correct. SECTION 2.The map designated as “BOUNDARIES OF COMMUNITYFACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA CFD), CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA” showing the boundaries of the territory proposed for inclusion in the District including the parcels of land proposed to be subject to the levy of a special tax by the District, attached hereto as Exhibit “A” and by this reference incorporated herein, is hereby approved and adopted. SECTION 3.A certificate shall be endorsed on the original and on at least one (1) copy of the map of the District,evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the formation or extent of such District, a copy of such map shall be filed with the correctand proper endorsements thereon with the County Recorder, all in the manner and form provided for in Sections 3110 and 3111 of the Streets and Highways Code of the State of California. SECTION 4.If any section, subsection, subdivision, sentence, clause,or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining 1 09960.00000\\21522545.1 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 73 portions of this Resolution or any part thereof. The City Council of the City of Chula Vista hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 5.This Resolution shall become effective immediately upon its adoption. Presented by:Approved as to form by: Eric Crockett,Glen R.Googins, Director of Economic DevelopmentCity Attorney 2 09960.00000\\21522545.1 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 74 EXHIBIT “A” BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO.17-I (WESTERN CHULA VISTA CFD), CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A-1 09960.00000\\21522545.1 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 75 RESOLUTION NO. _________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION OR CONSTRUCTION OF CERTAIN PUBLIC FACILITIES, AND ORDERING AND DIRECTING THE PREPARATION OF A REPORT FOR SUCH PROPOSED COMMUNITY FACILITIES DISTRICT, AND SETTING THE PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF SUCH DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the “City Council”), at this time desires to initiate proceedings to establish a Community Facilities District pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (commencing with Section 53311) (the “Act”) and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”). This Community Facilities District shall hereinafter be referred to as Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (the “District”); and WHEREAS, the District is proposed to be established for the purpose of financing, at the voluntary request and election of the owners of multi-family, commercial or industrial properties generally located in that portion of the City between Interstate 5 and Interstate 805, including the Palomar Gateway and Urban Core Specific Planning Areas and the Auto Park located east of Interstate 805 (such properties to be referred to herein as “Western Chula Vista”), the payment of certain development impact fee obligations described hereinbelow and imposed on such properties; and WHEREAS, this City Council desires to proceed to adopt its Resolution of Intention to initiate the proceedings to consider the establishment of such District, to set forth the proposed boundaries for such District, to describe the development impact fee obligations proposed to be financed by such District, to indicate the proposed rate and apportionment of a special tax sufficient to finance the payment of such development impact fee obligations and the administration of the District and to fix a time and place for a public hearing on the establishment of such District; and WHEREAS, the Community Facilities District Law provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policiesconcerning the use of the Community Facilities District Law; and WHEREAS, this City Council has adopted local goals and policies as required pursuant to the Community Facilities District Law; and 1 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 76 WHEREAS, this City Council desires to declare its intention to consider the establishment of such proposed District; and WHEREAS, this City Council further desires to direct, pursuant to the provisions of Section 53321.5 of the Government Code, the preparation of a report to provide more detailed information relating to the proposed District, the proposed development impact fee obligations to be financed through the District, and estimate of the cost of financing the payment of such development impact fee obligations (the “Community Facilities District Report”); and WHEREAS, this City Council desires to approve the form of an Agreement for Deferral of Development Impact Fees required to be entered into by the owner of the property proposed to be included within the boundaries of the District upon the establishment thereof and the City. NOW, THEREFORE, IT IS HEREBY RESOLVEDby the City of Chula Vista, that: SECTION 1.Recitals.The above recitals are all true and correct. SECTION 2.Initiation of Proceedings. These proceedings are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. SECTION 3.Boundaries of District. It is the intention of this City Council to establish the boundaries of the proposed District. A description of the proposed boundaries of the territory to be included in the District including the properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: All that property as shown on a map as previously approved by this City Council, such map entitled “Boundaries of Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program), City of Chula Vista, County of San Diego, State of California” a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. SECTION 4.Name of District. The name of the proposed District shall be Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program). SECTION 5.Description of the Development Impact Fee Obligations and the Related Facilities. It is the intention of this City Council to finance the payment of the development impact fees imposed by the City in connection with the approval of a development project to be developed on property located within the District. Such fees may include: (i)the Public Facilities Development Impact Fee pursuant to Chula Vista Municipal Code (“CVMC”) section 3.50, et seq. (“PFDIF”); (ii)the Western Transportation Development Impact Fee pursuant to CVMC section 3.55, et seq. (“TDIF”); and (iii)the Park Development Fee pursuant to CVMC section 17.10, et seq. (“PAD” and together with the PFDIF and TDIF, the “DIFs” and the obligation to pay the DIFs, the “DIF Obligation”). 2 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 77 The proceeds of the payment of the DIF Obligations will pay for facilities which this legislative body is authorized by law to contribute revenue to or to construct, own, or operate (the “DIF Facilities”). It is hereby further determined that the DIF Facilities are necessary to meet increased demands and needs placed upon the City as a result of development within the District. The cost of the payment of DIF Obligations includes certain Incidental Expenses as such term is defined in Government Code Section 53317(e) and may include, but not be limited to, all costs associated with the establishment of the District; the costs of collecting any special taxes; and costs otherwise incurred in order to carry out the authorized purposes of the District. SECTION 6.Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to finance the payment of the DIF Obligations and related Incidental Expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the boundaries of the District. For further particulars as to the rate and method of apportionment of the proposed special tax (the “Rate and Method of Apportionment”) reference is made to the attached and incorporated Exhibit A, which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay. Under no circumstances will the special tax levied in any fiscal year against any residential parcel be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. The special taxes herein proposed, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner asthis City Council or its designee shall determine, including, without limitation, direct billing of the affected property owners, and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista (the “City”), acting for and on behalf of the District. The special tax obligation for any parcel may be prepaid and permanently satisfied in whole or in part pursuant to the provisions therefor contained in the Rate and Method of Apportionment. Pursuant to Government Code Section 53340 and except as provided in Government Code Section 53317.3, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax. 3 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 78 SECTION 7.Public Hearing.NOTICE IS GIVEN THAT ON MARCH 15, 2016, AT THE HOUR OF 5:00 O'CLOCK P.M. OR AS SOON THEREAFTER AS THE PUBLIC HEARING MAY BE CALLED, IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED DISTRICT, THE RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX PROPOSED TO BE LEVIED WITHIN THE DISTRICT, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT THE ABOVE-MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD. THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE DISTRICT, THE EXTENT OF THE DISTRICT, OR THE FINANCING OF THE PAYMENT OF THE DIF OBLIGATIONS, WILL BE HEARD AND CONSIDERED. ANY PROTESTS MAY BE MADE ORALLY OR IN WRITING, HOWEVER, ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND CLEARLY SET FORTH THE IRREGULARITIES AND DEFECTS TO WHICH THE OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THE CITY ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. If a written majority protest against the establishment ofthe District is filed, the proceedings shall be abandoned. If such majority protest is limited to certain DIF Obligations or portions of the special tax, those DIF Obligations or that portion of the special tax shall be eliminated by the City Council. Amajority protest shall exist if 50 percent or more of the registered voters, or six (6) registered voters, whichever is more, residing within the land of the territory proposed to be included in the District, or the owners of one-half or more of the area of the land in the territory proposed to be included in the District and not exempt from the special tax, file written protests against the establishment of the District, and the protests are not withdrawn so at to reduce the value of the protests to less than a majority. SECTION 8.Election. If, following the public hearing described in the section above, the City Council determines to establish the District and proposes to levy a special tax within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the District, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of District who were the owners of record at the close of the subject hearing, with eachsuch landowner or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within the District. 4 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 79 SECTION 9.Notice. Notice of the time and place of the public hearing shall be given by the City Clerk bycausing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. The City Clerk shall also cause notice to be given by first-class mail to each registered voter, if any, and to each landowner as defined in the Community Facilities District Law within the proposed boundaries of the District. Such notice shall be mailed at least 15 days before the public hearing and shall contain the same information as is required to be contained in the notice published pursuant to the preceding paragraph. SECTION 10.Preparation of Report. The Directorof Public Works is hereby directed and ordered to prepare or cause to be prepared the Community Facilities District Report to be presented to this City Council, generally setting forth and containing the following: DIF OBLIGATIONS: A full and complete description of the DIF Obligations the payment of which are proposed to be financed through the District and the facilities that are authorized to be funded from the proceeds of the payment of the DIF Obligations. COST ESTIMATE:A general cost estimate setting forth costs of the payment of the DIF Obligations. SPECIAL TAX: Further particulars and documentation regarding the rates and methods of apportionment of the special taxes proposed to be levied within the District. The Community Facilities DistrictReport, upon its preparation, shall be submitted to this City Council for review, and such report shall be made a part of the record of the public hearing on the Resolution of Intention to establish such District. SECTION 11.Agreement for Deferral of Development Impact Fees. The owner of any property who requests that such owner’s property be included in the District shall be required to enter into the Agreement for Deferral of Development Impact Fees, the form of which is attached hereto as Exhibit B hereto and incorporated herein by this reference. The City Manager or his or her designee is hereby authorized to execute the form of any such agreement following review by the City Attorney or special counsel to the City designated by the City Attorney. SECTION 12.Survival. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council of the City of Chula Vista hereby declares that it would have adopted each section irrespective of the fact that any one or 5 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 80 more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 13.Effective Date of Resolution. This Resolution shall become effective immediately upon its adoption. Prepared by:Approved as to form by: Eric Crockett,Glen R. Googins, Director of Economic DevelopmentCity Attorney 6 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 81 EXHIBIT A RATE AND METHOD OF APPORTIONMENT 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 82 Rate and Method of Apportionment of Special Tax Community Facilities District No. 17-I (Western Chula VistaDIF Financing) A Special Tax shall be levied on each Assessor’s Parcel of Taxable Property within the boundaries of Community Facilities District No. 17-I (Western Chula Vista DIF Financing) of the City of Chula Vista (the “City”) and collected each FY commencing in Special Tax Commencement FY applicable to such Assessor’s Parcel, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFDNo. 17-I, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafter set forth have the following meanings: “Accrued Interest Obligation” means for each Assessor’s Parcel, the amount of interest accrued on theDeferred DIF Obligation from the date of the issuance or grant of a Certificate of Occupancy for such property as determined in accordance with Section 3.D below. “Acre” or “Acreage” meansthe land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map,or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. “Act”means the Mello-RoosCommunity Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Annual Special Tax”means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcelwhich is equal to the sum of the Annual Special Tax for Facilities and the Annual Special Tax for Accrued Interest in accordance with Section 3.E below. “Annual Special Tax for Facilities”means the amount of the Special Tax levied on an Assessor’s Parcelof Developed Property in any FY, commencing with the Special Tax Commencement FY, to satisfy the repayment of the Deferred DIF Obligation over the term of the Special Tax as set forth in Section 7 determined in accordance with Section 3.E below unless the Special Tax Obligation is prepaid pursuant to the provisions of Section 6 thereto. “Annual Special Tax for Accrued Interest”means the amount levied on an Assessor’s Parcel of Developed Property in any FY, commencing with the Special Tax Commencement FY, to satisfy the repayment of the Accrued Interest Obligation over the term of the Special Tax as set forth in Section 7 determined in accordance with Section 3.E below unless the Special Tax Obligation is prepaid pursuant to the provisions of Section 6 thereto.. ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 83 “Annual Special Tax for Current Interest”means the amount levied on an Assessor’s Parcel of Developed Property in any FY, commencing with the Special Tax Commencement FY, to satisfy the requirement to pay interest on unpaid deferred fees during the 20-year repayment period commencing with the Special Tax Commencement FY and ending on June 30th of the Special Tax Final Year. “Assessor” means the Assessor of the County of San Diego. “Assessor's Parcel” means a lot or parcel shown on an Assessor's Parcel Map with an assigned mber. Assessor's Parcel Nu “Assessor's Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor's Parcel Number” means the number assigned to an Assessor's Parcel by the Assessor rposes of identification. for pu “Assigned Special Tax Obligation” means for each Assessor’s Parcel, the amount determined in Section 3.B below. accordance with “Building Permit”means a building permit issued by the City for construction of a Residential Unit Residential Property located within CFD No. 17-I. or Non- “Building Square Footage” means all of the square footage of usable area within the perimeter of aresidential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City. “Certificate of Occupancy”means a certificate issued or approvalgranted by the City, or other government entity, that authorizes the actual occupancy of a Residential Unit for applicable habitation by one or more residents or the occupancy of Non-Residential Property. “CFD Administrator” means an authorized representative of the City, or designee thereof, for determining the Assigned Special Tax Obligation and the Annual Special Tax, for responsible preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 17-I” means the City of Chula Vista Community Facilities District No. 17-I (Western Chula inancing). Vista DIF F “City”means the City of Chula Vista, California. “Council” means the City Council of the City acting as the legislative body of CFD No. 17-I under the Act. “County”means theCounty of San Diego, California. “Deferred DIF Obligation” means for each Assessor’s Parcel, the remaining balance of DIFs that havebeen deferred on such Assessor’s Parcel since Building Permit issuance as determined in accordance with Section 3.C below. “Developed Property” means for each FY, all Taxable Property for which a Building Permit was issuedprior to May 1 of the previous FY. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 84 Property has been cancelled and/or voided prior to the FYfor which Special Taxes are being levied shall be reclassified as Undeveloped Property. “DIF Deferral Agreement”means, as to an Assessor’s Parcel, the Agreement for Deferral of t Impact Fees by and between the owner of such Assessor’s Parcel and the City. Developmen “DIF”or“DIFs”shall, as to an Assessor’s Parcel, have the meaning given such terms in the DIF Deferral Agreement applicable to such Assessor’s Parcel. “Effective Date”shall mean, as to each DIF Deferral Agreement, the effective date of such as specified therein. agreement “Exempt Property” means for each FY, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 8 below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line t, pursuant to the Subdivision Map Act (California Government Code Section66410 et adjustmen seq.) or recordation of a condominium plan pursuant to California Civil Code4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” or “FY” means the period starting on July 1 and ending the following June 30. “Initial Fiscal Year”means, as to any Assessor’s Parcel subject to a DIF Deferral Agreement, the FY e Effective Date of such DIF Deferral Agreement falls. in which th “Initial Interest Accrual Date”shall mean, as to any Assessor’s Parcel of Developed Property, the which the Certificate of Occupancy for such Assessor’s Parcel is issued. date on “Initial Accrued Interest Obligation FY” shall mean, as to any Assessor’s Parcel of Developed Fiscal Year in which the Initial Interest Accrual Date for such Assessor’s Parcel falls. Property, the “Maximum Special Tax Obligation” means for each Assessor’s Parcel, the amount assigned in Sections 3.A below. accordance with “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a permit has been issued for the purpose of constructing one or more non-residential building structures or facilities. “Original Parcel” means an Assessor’s Parcel within the boundaries of CFD No. 17-I that was a Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the prior FY assigned but has been subsequently subdivided into Successor Parcels for the current FY. “Prepayment Amount” means the amount required to prepay the Annual Special Tax obligation in full for an Assessor’s Parcel as described in Section 6.A below. “Public Property”means any property within the boundaries of CFD No. 17-I, which is owned by, orirrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 85 “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Special Tax” means any special tax levied within CFD No. 17-I pursuant to the Act and this Rate thod of Apportionment of Special Tax. and Me “Special Tax Commencement FY”shall mean, as to each Assessor’s Parcel classified as Developed Property, the FYfalling after the first day of the eleventh calendar year after the Effective Date of the DIF Deferral Agreement applicable to such Assessor’s Parcel. “Special Tax Final FY”shall mean, as to each Assessor’s Parcel of Developed Property, the FY July 1 of nineteenth (19th) FYfollowing the Special Tax Commencement FY. commencing on “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Developed Property pay the Special Tax for the remaining term of the Special Tax applicable to such Assessor’s to Parcel. “Successor Parcel” means an Assessor’s Parcel created by the Subdivision of one or more Original ant to Section 4 below. Parcels pursu “State”means the State of California. “Taxable Property” means all of the Assessor's Parcels within the boundaries of CFD No. 17-I, t exempt from the levy of the Special Tax pursuant to law or Section 8 below. which are no “Undeveloped Property” means, for each FY, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each FY, beginning with FY2016-17, each Assessor’s Parcel within CFD No. 17-I shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or UndevelopedProperty, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. 3. SPECIAL TAX RATES A. Maximum Special Tax Obligation The Maximum Special Tax Obligation applicable to an Assessor's Parcel subject to a DIF DeferralAgreement in the Initial FYapplicable to such Assessor’s Parcel shall be determined pursuant to Table 1 below. Table 1 Initial FYMaximum Special Tax Obligation Maximum Assessor’s Parcel No. Special Tax Obligation 618-010-17$1,366,800 - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 86 The Maximum Special Tax Obligation applicable to an Assessor’s Parcel subject to a DIF DeferralAgreement shall be subject to escalation by the increase in any DIF included in the Deferred DIF Obligation between amount of such DIF in effect on the Effective Date of such DIF Deferral Agreement and the amount of such DIF in effect on the date of issuance of the first Building Permit for development of such Assessor’s Parcel. Commencing on July 1 of the FYfollowing the Initial Interest Accrual Date, the Maximum Special Tax Obligation for such Assessor’s Parcel shall increase on July 1 of each FYby an amount equal to two percent (2%) of the Maximum Special Tax Obligation in effect for the prior FY. B. Assigned Special Tax Obligation On July 1 of each FYcommencing the Special Tax Commencement FY, the CFD Administrator shall determine the Assigned Special Tax Obligation for that FY. The Assigned Special Tax Obligation in any given FYcommencing the Special Tax Commencement FY shall be the sum of the Deferred DIF Obligation plus the Accrued Interest Obligation. If for any FYthe Assigned Special Tax Obligation is determined to be greater than the Maximum Special Tax Obligation, then the Assigned Special Tax Obligation shall be equal to the Maximum Special Tax Obligation. C. Deferred DIF Obligation The Deferred DIF Obligation applicable to an Assessor’s Parcel classified as Undeveloped shall be zero. Property The initial Deferred DIF Obligation applicable to an Assessor's Parcel classified as Developed Property shall be determined by the CFD Administrator at the time of issuance of a Building Permit for such Assessor’s Parcel. The Deferred DIF Obligation shall be equal to the sum of the applicable DIFs specified in the DIF Deferral Agreement for each Building Permit issued for Assessor’s Parcels within CFD No. 17-I. The amount of each DIF specified in the DIF Deferral Agreement for an Assessor’s Parcel shall be based on the fee schedule applicable to such DIF in effect at the time of issuance of such Building Permit. The Deferred DIF Obligation in any FYapplicable to an Assessor’s Parcel of Developed Property shall be equal to the Deferred DIF Obligation in the prior FYless any Annual Special Tax for Facilities payments made in the prior FY. If a partial prepayment is made pursuant to Section 6.B below, the Deferred DIF Obligation will also be reduced by the applicable amount of the Deferred DIF Obligation that was prepaid. D. Accrued Interest Obligation The Accrued Interest Obligation in the Initial FYand each subsequent FY prior to the Initial AccruedInterest Obligation FY applicable to an Assessor’s Parcel classified as Developed Property for which a Certificate of Occupancy has not been issued prior to July 1 of such FY shall be zero. - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 87 The Accrued Interest Obligation applicable to any Assessor’s Parcel classified as Developed Propertyshall commence to accrue on the Initial Interest Accrual Date. The Accrued Interest Obligation applicable to such Assessor’s Parcel in the Initial Accrued Interest Obligation FY shall be equal to two percent (2%) of the Deferred DIF Obligation as of July 1 of such FYmultiplied by a fraction the numerator of which is the number of calendar days from and including the Initial Interest Accrual Date to and including June 30th of such FY and the denominator of which is 365. The Accrued Interest Obligation for each subsequent FYprior to the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation in the prior FYplus two percent (2%) of the Deferred DIF Obligation as of July 1 of the prior FY. The Accrued Interest Obligation in the Special Tax Commencement FY and each subsequent FYapplicable to an Assessor’s Parcel classifiedas Developed Property shall be equal to the Accrued Interest Obligation as of July 1 of the prior FYless any Annual Special Tax for Accrued Interest payments made in the prior FY. If a partial prepayment is made pursuant to Section 6.B below, the Deferred DIF Obligation will also be reduced by the applicable amount of the Accrued Interest Obligation that was prepaid. E. Annual Special Tax The Annual Special Tax for Developed Property in any FYcommencing the Special Tax Commencement FY shall be equal to (i) the Annual Special Tax for Facilities plus (ii) the Annual Special Tax for Accrued Interest plus (iii) the Annual Special Tax for Current Interest. The Annual Special Tax for Facilities in any FYcommencing the Special Tax Commencement FY shall be equal to the Deferred DIF Obligation on July 1 of the Special Tax Commencement FY times the Repayment Ratespecifiedin Table 2 below that corresponds with such FY. In each subsequent FY, the Annual Special Tax for Facilities will remain unchanged until the Deferred DIF Obligation is paid in full. The Annual Special Tax for Accrued Interest in any FYcommencing the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation on July 1 of the Special Tax Commencement FY times the Repayment Rate specified in Table 2 below that corresponds with such FY. In each subsequent FY, the Annual Special Tax for Accrued Interest will remain unchanged until the Accrued Interest Obligation is paid in full. The Annual Special Tax for Current Interest in any FYcommencing the Special Tax Commencement FY shall be equal to the Deferred DIF Obligation on July 1 of such FYtimes the Current Interest Rate in Table 2 below that corresponds with such FY. - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 88 Table 2 Amortization Table Current Interest Fiscal Year Repayment Rate Rate Initial Accrued Interest Obligation FY through the FYpreceding the0%0% Special Tax Commencement FY Special Tax Commencement FY through the Special Tax 5%2% Final FY 4. METHOD OF APPORTIONMENT Commencing with the Special Tax Commencement FY and for each following FY, the CFD Administrator shall apportion the Assigned Special Tax Obligation as set forth below. First:All Original Parcels that are reflected on the Assessor’s Parcel Maps applicable to the current FYwill be assigned a Maximum Special Tax Obligation and Assigned Special Tax Obligation in accordance with Section 3 above. Second:All Original Parcels that are not reflected on the Assessor’s Parcel Maps applicable to the current FYwill be assigned a Maximum Special Tax Obligation and Assigned Special Tax Obligation in accordance with Section 3 above as if such parcels still existed in their previous form. Third:The Maximum Special Tax Obligation and Assigned Special Tax Obligation that were calculated in the Second step above will be assigned to each applicable Successor Parcel based on the amount of Taxable Acreage contained in such Successor Parcel divided by the amount of Taxable Acreage contained in the relevant Original Parcel. The sum of the Maximum Special Tax Obligations of each group of Successor Parcels shall be equal to Maximum Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. Likewise, the sum of the Assigned Special Tax Obligations of each group of Successor Parcels shall be equal to Assigned Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. Fourth:The Special Tax shall be levied on each Assessor’s Parcel of Developed Property at 100% of the applicable Annual Special Tax. Successor Parcels that are assigned a Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the current FYwill be considered Original Parcels in the following FY. 5. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Taxshall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Council may provide for (i) other means of collecting the Special Tax, including - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 89 direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 6. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect toa particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay, and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request, and may charge a reasonable fee for providing this service. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): Deferred DIF Obligation plus Accrued Interest Obligation plus Prepayment Administrative Fees and Expenses Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 4 below) shall be calculated as follows: Step No.: 1.Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. For Assessor’s Parcels of Developed Property, determine the Deferred 2. DIF Obligation and the Accrued Interest Obligation. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Deferred DIF Obligation for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3.Calculate the administrative fees and expenses of CFD No. 17-I, including the costs of computation of the prepaymentand the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 90 4.The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 1, 2 and 3 (the “Prepayment Amount”). The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor's Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a notice of cancellation of Special Tax lien to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor's Parcel to pay the Special Tax shall cease. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for whicha building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 6.A,except that a partial prepayment shall be calculated according to the following formula: PP = (P-A) x F+A E These terms have the following meaning: PP = the partial prepayment P= the Prepayment Amount calculated according to Section 6.A E F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 6.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of CFD No. 17-I that there has been a partial prepayment of the Special Tax Obligation and that the remaining Special Tax Obligation of such Assessor’s Parcel, equal to the outstanding percentage (1.00 -F) of the Deferred DIF Obligation and the Accrued Interest Obligation, shall continue to be levied on such Assessor’s Parcel in the same manner as before the Partial Prepayment. 7. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to satisfy the Assigned Special Tax Obligation for a period not to exceed thirty (30) FYs commencing with Special Tax Commencement FY, - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 91 provided however that the Special Tax will cease to be levied in an earlier FYif the CFD Administrator has determined that all CFD No. 17-I obligations have been satisfied. 8. EXEMPTIONS The CFD Administrator shall classify only Assessor’s Parcelsof Public Property as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as Public Property, perthe first paragraph of Section 8 above, such Assessor’s Parcel shall ceaseto be classified as Exempt Property and shall be deemed to be Taxable Property. 9. APPEALS Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation the CFD Administrator determines that an error has occurred, then theCFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i)Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current FYprior to the payment date, (ii)Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or (iii)Grant a credit against, eliminate or reduce the future Special Taxes on the landowner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the City Council. Upon the receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Council or designee shall be final. - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 92 EXHIBIT B AGREEMENT FOR DEFERRAL OF DIF - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 93 AGREEMENTFORDEFERRAL OF DEVELOPMENT IMPACT FEES This AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES (“Agreement”), is enteredinto effective _________, 20__ (“Effective Date”), by and between the City of Chula Vista, a chartered municipal corporation (the “City”),and, a (“Developer”). The City and Developer are collectively referred to in this Agreement as the “Parties”. The Parties enter into this Agreementwith reference to the following recited facts (each a “Recital”). RECITALS A.Developer (and/or its affiliates) owns, in fee simple, the real property generally known as, Chula Vista, CA, as described and depicted in the attached Exhibit“A” (the “Property”), incorporated herein by this reference. B.TheDeveloperhas applied for and the City has approved a mixed used development of80 unit multi-family development and approximately 2,100 square feet of commercial spaceon the Property (the “Project”). C.As authorized by California Government Codesection 66000, et seq., the City imposesdevelopment impact fees in connection with the approval of a development project. Such fees include: (i) the Public Facilities Development Impact Fee pursuant to Chula Vista Municipal Code (“CVMC”) section 3.50, et seq.(“PFDIF”); (ii) the Western Transportation Development Impact Fee pursuant to CVMC section 3.55, et seq. (“TDIF”); and (iii) the Park Development Fee pursuantto CVMC section 17.10, et seq. (“PAD” and together with the PFDIF and TDIF, the “DIFs” and the obligation to pay the DIFs, the “DIF Obligation”). D.Developer has pursued numerous financing sources to finance the Project, and has obtained a commitment for the requisite financing to commence and complete the Project; however, the terms of the financing require that payment of the DIF Obligation be deferred and paid in installments, rather than at the issuance of the certificate of occupancy for the residential units, as otherwise required by the City. E.Without such deferral, the Developer will be unable to secure financing and the Project will not be financially feasible. F.Developer has requested that the City defer the aggregate DIF Obligationfor the Property estimated to be $,in orderto obtain the financing necessary to construct the Project. G.The City is initiating proceedings to form the City of Chula Vista Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (“CFD No. 17-I”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”), as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “State”), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City under Sections 3, 5 and 7 of Article XI of the Constitution of the ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 94 State (the “CFD Ordinance” and, together with the Mello Roos Act, the “CFD Law”), for the purpose of financing, at the voluntary request of the owners of multi-family, commercial or industrial properties located in that portion of the City between Interstate 5 and Interstate 805, including the Palomar Gateway and Urban Core Specific Planning Areas and the Auto Park located east of Interstate 805 (such properties to be referred to herein as “Western Chula Vista”), the DIF Obligation imposed on such properties and thereby enabling the owners of such properties to pay the DIF Obligations through the levy of special taxes on such properties. G.The Developer has requested that the Property be included in CFD No. 17-I to enable the DIF Obligation for the Property to be paid over time through the levy of special taxes on the Property. AGREEMENT NOW THEREFORE, in consideration of the above Recitals and for good and valuable consideration the receipt and sufficiency of which the Parties hereby acknowledge, Developer and the City agree as follows: Agreement Regarding Payment of the DIF Obligation. 1.City agreesthat the Developer’s obligation to pay the DIF Obligation for the Project may be satisfied on the terms and conditions set forth in this Agreement. Developer agrees and affirms that it has the obligation to pay the DIF Obligation for the Project and agrees to do so on the terms and conditions set forth within this Agreement. a.Amount of DIF Obligation. At thetime of the execution of this Agreement, the DIF Obligation is estimated to be. This amount is an estimate only, and the amount of DIF Obligationunder this Agreement shall be calculated according to the rates in effect at the time of issuance of the building permits for the Project. b.Interest. Interest shall accrue from the date of issuance of a certificate of occupancy for the Project at a rate oftwo percent (2.00%) per annumon any outstanding DIF Obligation balance during the term of the Special Tax (defined below). Inclusion of Property in CFD No. 17-I. 2. a.Consent and Agreement to Cooperate. Developer consents and agrees to cooperate with the City to include the Property in CFD No. 17-I for the purpose enabling the DIF Obligation for the Property to be paid through the levy of a special tax by the City on the Property (the “Special Tax”). b.Timing of Completion of Inclusion of Property in CFD No. 17-I. The Property must be legally included in CFD No. 17-I and the Special Tax must be authorized to be levied against the Property prior to the issuance of the initial building permit required for the construction of the Project. c.Consent to Waive Certain Provisions of the CFD Law. In order to shorten the period of time to complete the inclusion of the Property in CFD No. 17-I Developer agrees - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 95 that Developer shall waive any time limit or requirement specified in the CFD Law applicable to any election conducted pursuant to the CFD Law to authorize the levy of the Special Tax on the Property, including without limitation, the time period for holding such election, the analysis and arguments that would otherwise be applicable to such an election. d.Waiver of Right to Protest. Developer acknowledges that Developer has voluntarily requested that the Property be included in CFD NO. 17-1 and that the Special Tax be authorized to be levied against the Property. Developer therefore waives any right that Developer may have to protest against the proceedings to include the Property in CFD NO. 17-1 and/or the authorization to levy the Special Tax against the Property. e.Payment of the DIF Obligation. Upon inclusion of the Property in CFD No. 17-I the authorization of the levy of the Special Tax on the Property, the payment of the DIF Obligation for the Project shall be satisfied by the payment of the Special Tax as levied on the Property throughout the term of the Special Tax. The Special Tax shall be levied pursuant to the Rate and Method of Apportionment thereof (the “Rate and Method”). The authorization to levy the Special Tax on the Property pursuant to the Rate and Method shall be subject to the approval of the Developer in a special election called for such purposeas a part of the proceedings to include the Property in CFD NO. 17-1. The Special Tax shall be collected in the same manner as ordinary ad valoremtaxes arecollected and shall be subject to the same penalties and same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes; provided, however,the Special Tax may be collected by direct billing if so authorized and directed by the City Council. The Special Tax shall be annually levied commencing in the fiscal year falling after the first day of the eleventh year after the Effective Date of this Agreement (the “Special Tax Commencement Date”) for the term of such Special Tax as set forth in the Rate and Method until the DIF Obligation, and any accumulated interest and penalties on the DIF Obligation have been paid in full. All interest that has accrued prior to the Special Tax Commencement Date shall be incorporated into the Special Tax over the repayment term and no further interest shall accrue on said accrued interest amount; provided, however, that interest shall continue to accrue on any unpaid DIF Obligation. f.Prepayment. The Developer may prepay the Special Tax pursuant to the provisions of the Rate and Method. Results of Special Election to Authorize Levy of the Special Tax. 3.If the canvas of ballot to authorize the levy of the Special Tax on the Property determines that such vote is in favor of such authorization, the City shall record or cause the recordation of a Notice of Special Tax Lien against the Property pursuant to the provisions of the CFD Law and Streets & Highways - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 96 Code Section 3115.5. If the canvas of such ballot determines that such vote is in opposition to such authorization or the Developer fails to submit such a ballot, this Agreement shall terminate without further action by the Parties and the DIF Obligation in effect at the time of commencement of development of the Project shall be due and payable as provided for in the CVMC. Challenge to Formation of CFD No. 17-I or Authorization to Levy theSpecial Tax. 4. If legal proceedings are initiated to challenge the validity of the proceedings to form CFD No. 17-I and/or the authorization to levy the Special Tax, the City may tender the defense of any such action to the Developer. If the Developer elects to accept the defense of such action, the Developer shall bear all costs, including attorneys’ fees, of such defense. If the Developer refuses or fails to accept the defense of such action, the City Council may, in its sole discretion, elect to defendsuch action at the City’s expense or may, alternatively, elect to abandon such proceedings in which event this Agreement shall terminate without further action by the Parties and the DIF Obligation in effect at the time of commencement of development of the Project shall be due and payable as provided for in the CVMC. Development of the Project. 5. This Agreement does not obligate Developerto develop the Project on the Property. If Developer provides notice to the City of its abandonment of the Project at any time prior to issuance of a certificate of occupancy,Developer shall have no obligations or liabilities under this Agreement and the City Council shall instruct the City Clerk to record a notice of cessation of the Special Tax against the Property thereby terminating the Special Tax Lien; provided, however, if Developer or any successor thereto thereafter proceeds with development of the Project, the DIF Obligation therefor, recalculated at the time of filing written notice of intent to proceed, shall be due and payable as a condition of issuance of a certificate of occupancy. Assignments and Transfers. 6.Developer may not assign or transfer all or any portion of its interest in the Property or Project, unless and until (a) Developer prepays the Special Tax obligation pursuant to the Rate and Method, or (b) City reasonably approves the proposed transferee(s), and such transferee(s) agrees in writing to assume Developer’s obligations hereunder. In determining whether to consent to an assignment or transferof interest, the City may evaluate the financial position of the entity or individual to whom the transfer is proposed, the length of time such entity or individual has engaged in a similar business to the Developer, and such other reasonable factors which may affect such entity’s or individual’s ability to satisfy the terms and conditions under this Agreement. Developer agrees to cooperate with the City as reasonably necessary during the approval process, which shall be completed within 21 days after delivery of written consent by the proposed transferee(s) to assume Developer’s obligations under this Agreement (the “Review Period”). The City’s determination shall be final. The proposed transferee(s) of Developer’s interest in the Property or Project shall be deemed approved if the City does not approve or reject the transferee(s) prior to expiration of the Review Period. Recitals and Exhibits. 7.Any recitals set forth above and exhibits attached hereto are incorporated by reference into this Agreement. - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 97 Authority. 8.Each of the signatories to this Agreement warrants and represents that he or she is competent and authorized to enter this Agreement on behalf of the Party for whom he or she purports to sign. Notices. 9.Unless otherwise specifically permitted by this Agreement, all notices or other communications required or permitted under this Agreement shall be in writing, and shall be personally delivered; sent by registered or certified mail, postage prepaid, return receipt requested; or sent by facsimile, provided that the telecopy cover sheet contain a notation of the date and time of transmission, and shall be deemed received: (a) if personally delivered, upon the date of delivery to the address of the person to receive such notice, (b) if mailed in accordance with the provisions of this paragraph, two (2) business days after the date placed in the United States mail, (c) if mailed other than in accordance with the provisions of this paragraph or mailed from outside the United States, upon the date of deliveryto the address of the person to receive such notice, or (d) if given by facsimile during business hours when deliverycan be confirmed, when delivered. Notices shall be given at the following addresses: If to City:City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: Director of Development Services Email: kbroughton@chulavistaca.gov If to Developer:__________________ __________________ __________________ With copies to: __________________ __________________ __________________ City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Attorney Captions. 10.Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. Allocation of Legal Expenses. 11.Each Party shall bear its own costs relative to any costs or expenses incurred in compliance with, or in the drafting or negotiation of, and the approval process, of this Agreement. Entire Agreement. 12.This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect and are intended to be replaced in total by this Agreement. Each Party warrants and represents that no - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 98 representative of any other Party has made any oral representation or oral agreements not contained in this Agreement. Each party further warrants and represents that it has not relied upon any oral statements or promises made by any representatives of any other Party to this Agreement in executing this Agreement. Preparation of Agreement. 13.No inference, assumption or presumption shall be drawn from the fact that a party or its attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting of this Agreement. Administrative Claims Requirements and Procedures 14.. 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, Developer shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement.. Governing Law. 15.This Agreement shall be subject to and governed by the laws of the State of California, without regard to conflict of law rules. Severability. 16.In the event that any provision of this Agreement is declared by any court of competent jurisdiction or any administrative judge to be void or otherwise invalid, all of the other terms, conditions and provisions of this Agreement shall remain in full force and effect to the same extent as if that part declared void or invalid had never been incorporated in the Agreement and in such form, the remainder of the Agreement shall continue to be binding upon the Parties, provided that the provision stricken is not a material term or condition of this Agreement. In the event that the provision is material, the Parties agree to meet and confer to amend the Agreement such that its original purpose and intent can be fulfilled. If the Parties are unable to amend the Agreement, then payment of the outstanding balance of the DIF Obligation shall be accelerated in the manner identified in Section 4 of this Agreement. Counterparts. 17.This Agreement may be signed and executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one Agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or email shall be effective as delivery of an originally executed counterpart of this Agreement. Time of the Essence. 18.Time is of the essence in the performances of the Parties’ obligations contained herein. Waiver. 19.A failure of a Party to enforce strictly a provision of this Agreement shall in no event be considered a waiver of any party of such provision. No waiver by a Party ofany breach or default by the other Party shall operate as a waiver of any succeeding breach or - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 99 other default or breach by such other Party. No waiver shall have any effect unless it is specific, irrevocable and in writing. Further Acts. 20.In addition to the acts recited in this Agreement, the Parties agree to perform, or cause to be performed on the date of this Agreement, or thereafter, any and all such further acts as may be reasonably necessary to consummate the transactions contemplated hereby. Each ofthe Parties agrees that itwill execute and deliver all such documents and instruments as may be necessary and appropriate to effectuate the terms of this Agreement. \[SIGNATURE PAGE TO FOLLOW\] - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 100 IN WITNESS WHEREOF, this Agreement for Deferral of Development Impact Fees has been executed by the Parties as of the last date set forth below. Dated:_____________________________ By: ___________________________ Name: _________________________ Title: _________________________ CITY OF CHULA VISTA, a chartered municipal corporation Dated: By: Name:Gary Halbert Approved as to Form:Title:City Manager By: Glen R. Googins, City Attorney - ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 101 EXHIBIT A –Depiction and Description of Property APN: LEGAL DESCRIPTION A-1 60297.00044\\21522561.2 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 102 City of Chula Vista Staff Report File#:16-0019, Item#: 7. CONSIDERATIONOFAUTHORIZINGTHEANNEXATIONINTHEFUTUREOFACERTAIN TERRITORY TO CFD NO. 17-I (THE “FUTURE ANNEXATION AUTHORIZATION PROCEEDINGS”) A.RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAADOPTINGA BOUNDARYMAPSHOWINGTERRITORYPROPOSEDTOBEAUTHORIZEDTOBE ANNEXEDINTHEFUTURETOCOMMUNITYFACILITIESDISTRICTNO.17-I(WESTERN CHULA VISTA DIF FINANCING PROGRAM) B.RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTADECLARINGITS INTENTIONTOAUTHORIZETHEANNEXATIONINTHEFUTUREOFACERTAIN TERRITORYTOCOMMUNITYFACILITIESDISTRICTNO.17-I(WESTERNCHULAVISTA DIFFINANCINGPROGRAM),ANDSETTINGTHEPUBLICHEARINGTOCONSIDER SUCH ANNEXATION RECOMMENDED ACTION Council adopt the resolutions. SUMMARY InApril,2015,theCityCounciladoptedanamendmenttothemunicipalcodethatallowedtheCity CounciltodeferdevelopmentimpactfeesforprojectswithinWesternChulaVista.Thedeferralof impactfeescanbeaccomplishedbyagreementorbyprojectsannexingintoaCommunityFacilities District.Atthattime,staffindicatedthatitwouldreturnatalaterdatewiththecurrentactionto establishsuchaCommunityFacilitiesDistrictthatwouldbeavailabletoprojectslocatedinindustrial, commercialandhighdensityresidentialzoneslocatedthroughoutWesternChulaVistaandtheMain StreetAutoPark.ThisisthesecondofseveralactionsrequiredbytheCityCounciltoconsiderthe formationoftheCommunityFacilitiesDistrictwhichisproposedtobedesignatedasCommunity Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (the “CFD”).. ENVIRONMENTAL REVIEW Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality ActStateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)noenvironmental review is required. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedactivityforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheactivityisnota“Project” asdefinedunderSection15378oftheStateCEQAGuidelinesbecausetheactivityconsistsofa City of Chula VistaPage 1 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 103 File#:16-0019, Item#: 7. governmentalfeedeferralagreementprogramand/orannexationactivitywhichdoesnotinvolve anycommitmenttoanyspecificprojectwhichmayresultinapotentiallysignificantphysicalimpact ontheenvironment.Therefore,pursuanttoSection15060(c)(3)oftheStateCEQAGuidelines,the activityisnotsubjecttoCEQA.Thus,noenvironmentalreviewisrequired.Althoughenvironmental reviewisnotrequiredatthistime,oncethescopeofpotentialindividualprojectshasbeendefined, environmentalreviewwillberequiredforeachprojectandtheappropriateenvironmental determination will be made. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION InvestmentinWesternChulaVistacontinuestopresentafinancingchallengeforpotentialinvestors anddevelopers.Financingchallengesderiveprimarilyfromthelendingindustry’sincreasedequity requirementsimposeduponinfilldevelopmentprojectsinWesternChulaVista.Tohelpaddressthe additionalequityburdenbeingplacedoninfilldevelopmentinthesubjectarea,theCityCouncil adoptedanOrdinanceinApril2015thatallowsthedeferralofimpactfeestoincentivizefuture investmentinthisarea.Subsequently,staffenlistedthelegalservicesofWarrenDiven,Best,Best& Krieger,andfinancialservicesfirmWilldianFinancialServices,toassiststaffinpreparingand bringing forward this item to initiate the future annexation proceedings. Thedeferralofthepaymentofcertainimpactfeeswillreducetheadditionalequityburdenbyan amountequaltosuchfees.TheCFDwillalsoenablethedevelopertoshiftsuchimpactfeeburden fromtheconstruction/developmentcostsideoftheirledgertotheoperatingsideofthedevelopment. TheCFDwillnotbeutilizedasamechanismtoissuedebtbutratherasawaytofinancethe paymentofsuchimpactfeesovertime.TheCFDwillbeavailableforafiveyearwindowinwhich propertyownerscanelecttoannexintotheCFD,unlesstheavailabilityoftheCFDisextendedby theCityCouncil.Itisanticipatedthatthislimitationwillprovideenoughtimeforprojectscurrentlyin processandthosepreviouslyapprovedtobeconstructed,soldand/orleasedout.Theseprojectswill providethecomparablesnecessarytoreducetherisktothelendingindustry.Oncelending standardsareinaccordancewithothermarkets,theCFDfinancingmechanismwillnolongerbe necessary. TheresolutionsproposedwiththisreportarethesecondofseveralactionstobetakenbytheCity Councilintheconsiderationoftheauthorizationoftheannexationinthefutureofcertainterritoryto theCFD.Ingeneral,theseFutureAnnexationProceedingswillconsidertheadoptionofthe proposedBoundaryofFutureAnnexationAreasanddeclaretheCityCouncil’sintenttoauthorizethe annexation of such territory into the CFD in the future. Morespecifically,ResolutionAisamapofallpropertieseligibletoannexintotheCFD.Allmulti- family,commercialandindustriallandbetweenInterstate5and805,aswellastheAutoParkand adjacentindustriallandeastofInterstate805willbewithintheCFD(SeeAttachmentA-Boundary Map).AfutureCityCouncilactionwillrequiretheadoptionofamaptoexpandtheboundariesofthe CFDasanyparcelisannexedintotheCFD.WhilethisExhibitestablishestheeligibleproperties,a property owner must voluntarily elect to annex individual project sites into the CFD. City of Chula VistaPage 2 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 104 File#:16-0019, Item#: 7. ResolutionBdescribestheimpactfeesthatwillbedeferredaswellastheRateandMethodof ApportionmentofthespecialtaxesthatwillbeleviedagainsttheprojectslocatedintheFuture AnnexationAreathatareannexedintotheCFDinthefuturetopaythedeferredimpactfees(Exhibit AofResolutionB)iftheownersofsuchparcelshaveelectedtohavesuchparcelsannexedintothe CFD.TheproposedtermsforprojectsthatannexintotheCFDwouldallowforthedeferralofthe PublicFacilitiesDevelopmentImpactFee,ParklandAcquisitionandDevelopmentFeeandthe eligibleportionoftheTransportationDevelopmentImpactFee.Thewillbenospecialtaxpayments duefor10yearsfromthetimetheprojectreceivesacertificateofoccupancy,butwillaccrueinterest attwopercent(2%)perannumfromthedateofissuanceofthecertificateofoccupancy.Specialtax th paymentstowardthedeferredimpactfeeswillbeduefollowingthetenth(10)anniversaryofthe th dateofthecertificateofoccupancyandwillcontinueuntilsuchfeeshavebeenpaidinfullbythe30 year.Thebalanceofthedeferredfeeandtheaccruedinterestwillbear2%currentinterestduringthe 20yeartermofthelevyofthespecialtax.Prepaymentofthedeferredfeesapplicabletoaparcelis available at any time by prepaying the special tax obligation for such parcel. ResolutionBalsosetsapublichearingonMarch15,2015toallowthepublictheopportunityto testifyregardingtheconsiderationofauthorizingtheannexationofterritorywithintheFuture AnnexationAreatotheCFD,therateandmethodofapportionmentofthespecialtaxproposedtobe leviedagainstanyterritorywithintheFutureAnnexationAreathatannexestotheCFD,andallother matters as set forth in the resolution of intention.. DECISION-MAKER CONFLICT StaffhasreviewedthepropertyholdingsoftheCityCouncilmembersandhasfoundthat,Mayor Salas,andCityCouncilmembersBensoussanandMcCannhaverealpropertyholdingswithin500 feetoftheboundariesofthepropertywhichisthesubjectofthisaction.Consequently,pursuantto CaliforniaCodeofRegulationsTitle2,sections18700and18702.2(a)(11),thisitempresentsa disqualifyingrealproperty-relatedfinancialconflictofinterestunderthePoliticalReformAct(Cal. Gov't Code § 87100, et seq.) for the above-identified member. Inadditiontotheabove,staffhasdeterminedthatapotentialconflictofinterestmayexistfor CouncilmemberMiesenbecauseitmaybereasonablyforeseeablethatafinancialeffectona business entity in which Councilmember Miesen has a financial interest may be material . Staffisnotindependentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofany other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.Thedeferralofimpact feesfurtherstheEconomicVitalityinitiative2.1.2to“fosteropportunitiesforinvestmentinWestern ChulaVista”byremovingimpedimentsfordevelopmentprojectsinthesubjectarea,acceleratingthe completion of planned and future developments. CURRENT YEAR FISCAL IMPACT AllconsultantsandstafftimerelatedtothisactionarebeingfundedbytheEconomicDevelopment City of Chula VistaPage 3 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 105 File#:16-0019, Item#: 7. Department’s General Fund budget. ONGOING FISCAL IMPACT Thereisnoongoingfiscalimpactasaresultofthisaction.Previously,theCityCouncildirectedthe DirectorofPublicWorkstoprepareorcausetobepreparedtheCommunityFacilitiesDistrictReport tobepresentedtotheCityCouncil,generallysettingforthandcontainingtheDIFObligations,Cost Estimateandtheratesandmethodsofapportionmentofthespecialtaxesproposedtobelevied within the District. This report will address the impacts of the future fee deferrals. ATTACHMENTS None Staff Contact: Craig Ruiz, Principal Economic Development Specialist City of Chula VistaPage 4 of 4Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 106 RESOLUTION NO. _____________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING BOUNDARY MAP SHOWING TERRITORY PROPOSED TO BE AUTHORIZED TO BE ANNEXED IN THE FUTURE TO COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (“City Council”), desires to initiate proceedings to authorize the annexation in the future of certain territory to Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (the “District”) pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”); and WHEREAS, there has been submitted a map showing the territory proposed to be authorized to be annexed in the future to the District, suchterritory to be designated as Future Annexation Area, Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program)(the "Future Annexation Area"). NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1.The above recitals are all true and correct. SECTION 2.The map showing the property and territory proposed to beauthorized to beannexed in the future to the District and to be subject to the special tax to be levied is hereby approved and adopted. Said map is designated as "Future Annexation Area, Community Facilities District No. 17- I(Western Chula Vista DIF Financing Program), City of Chula Vista, County of San Diego, State of California" (the "Future Annexation Area Map") and is attached hereto as Exhibit Aand incorporated herein by this reference. SECTION 3.A certificateshall be endorsed on the original and on at least one (1) copy of the map of the Future Annexation Area, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the resolution fixing the time and place of the hearing on the establishment or extent of such Future Annexation Area, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Sections 3110 and 3111 of the Streets and Highways Code of the State of California. SECTION 4.If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any courtof competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining 1 60297.00044\\21972566.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 107 portions of this Resolution or any part thereof. The City Councilof the City of Chula Vista hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 5.This Resolution shall become effective immediately upon its adoption. PREPARED BY:APPROVED AS TO FORM BY: Eric CrockettGlen R. Googins Director of Economic DevelopmentCity Attorney 2 60297.00044\\21972566.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 108 109 0 ¦¤ (WESTERN CHULA VISTA DIF FINANCING PROGRAM), CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA BOUNDARIES OF FUTURE ANNEXATION AREA, COMMUNITY FACILITIES DISTRICT NO. 17-I EXHIBIT “A” A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ 110 0 ¦¤ A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ 111 0 ¦¤ A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ 112 0 ¦¤ A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ 113 0 ¦¤ A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ 114 0 ¦¤ A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ 115 0 ¦¤ A-1 Packet !¦¤­£  ΑΏΐΕȃΏΑȃΏΘ RESOLUTION NO. _____________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, DECLARING INTENTION TO AUTHORIZE THE ANNEXATION IN THE FUTURE TO COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM). AND SETTING THE PUBLIC HEARING TO CONSIDER SUCH ANNEXATION WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (“City Council”), desires to initiate proceedings to authorize the annexation in the future of certain territory to Community Facilities District No.17-I (Western Chula Vista DIF Financing Program) (the “District”) pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”); and WHEREAS, it is determined to be within the public interest and convenience to establish a procedure to allow and provide for future annexations to the District and further to specify the amount of special tax that would be levied and set forth the terms and conditions for certification of any annexation in the future; and WHEREAS, the territory proposed to be authorized to be annexed in the future shall be known and designated as Future Annexation Area, Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (the "Future Annexation Area"), and a map designated as "Future Annexation Area, Community Facilities District No. No. 17-I (Western Chula Vista DIF Financing Program), City of Chula Vista, County of San Diego, State of California" (the “Future Annexation Area Boundary Map”) showing the territory proposed to be authorized to be annexed in the future has been previously submitted and approved and a copy thereof shall be kept on file with the transcript of these proceedings. NOW, THEREFORE, IT IS HEREBY RESOLVEDby the City of ChulaVista, that: SECTION 1.Recitals. The above recitals are all true and correct. SECTION 2.Authorization. These proceedings for future annexations are authorized and initiated by this legislative body pursuant to the authorization of the Community Facilities District Law and specifically Section 53339.2 of the Government Code of the State of California. SECTION 3.Public Convenience and Necessity. This City Council hereby determines that the public convenience and necessity requires a procedure to allow and authorize territory to be annexed in the future to the District in order to finance the payment of the DIF Obligations (defined below) for the territory that is annexed to the District. 1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 116 SECTION 4.Boundaries of the District and the Future Annexation Area. A general description of the territory included in the District is hereinafter describedas follows: All that property and territory as previously included within District, as said property was shown on a map as approved by this City Council designated as "Proposed Boundary Map of Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program), City of Chula Vista, County of San Diego, State of California," a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A description of the boundaries and territory proposed to be authorized to be annexed in the future includes all that property and territory shown on the Future Annexation Area Boundary Map, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. Future annexation proceedings may only be completed with the unanimous consent of the owner or owners of any parcel proposed for annexation. SECTION 5.Name of the District and Future Annexation Area. The name of the District is Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) of the City of Chula Vista, and the designation for the Future Annexation Area shall be Future Annexation Area, Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program). SECTION 6.Description ofthe Development Impact Fee Obligations and the Related Facilities. It is the intention of this City Council to finance the payment of the development impact fees imposed by the City in connection with the approval of a development project on property located in the District or on property annexed to the District in the future. Such fees may include: (i)the Public Facilities Development Impact Fee pursuant to Chula Vista Municipal Code (“CVMC”) section 3.50, et seq. (“PFDIF”); (ii)the Western Transportation Development Impact Fee pursuant to CVMC section 3.55, et seq. (“TDIF”); and (iii)the Park Development Fee pursuant to CVMC section 17.10, et seq. (“PAD” and together with the PFDIF and TDIF, the “DIFs” and the obligation to pay the DIFs, the “DIF Obligation”). The proceeds of the payment of the DIF Obligations will pay for facilities which this legislative body is authorized by law to contribute revenue to or to construct, own, or operate (the “DIF Facilities”). It is hereby further determined that the DIF Facilities are necessary to meet increased demands and needs placed upon the City as a result of development within the District or any territory annexed to the District in the future. The cost of the payment of DIF Obligations includes certain Incidental Expenses as such term is defined in Government Code Section 53317(e) and may include, but not be limited to, all costs associated with the establishment of the District; the costs of collecting any special taxes; and costs otherwise incurred in order to carry out the authorized purposes of the District. 2 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 117 SECTION 7.Special Taxes. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to finance the payment of the DIF Obligations (the “Special Tax”)for the territory of the Future Annexation Area upon the annexation of such territory to the District and related Incidental Expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt territory in the Future Annexation Area that annexes to the District, will be levied annually within the boundaries of such territory upon the annexation thereof to the District. For further particulars as to the rates and method of apportionment of the proposed Special Tax (the “Rateand Method of Apportionment”), reference is made to the attached and incorporated Exhibit A, which sets forth in sufficient detail the rates and method of apportionment of the Special Tax to allow each landowner or resident within the territory in the proposed Future Annexation Area to clearly estimate the maximum amount of the Special Tax that such person will have to pay upon the annexation of such territory to the District. The Special Tax for any parcel may be prepaid and permanently satisfied in whole or in part pursuant to the provisions of the Rate and Method of Apportionment. Notwithstanding the foregoing, if the actual cost of the DIF Obligation applicable to any parcel within the proposed Future Annexation Area is higher or lower than the cost of the DIF Obligation applicable to the parcels within the existing District, a higher or lower Special Tax may be levied on such parcel within the proposed Future Annexation Area subject to the unanimous approval and election of the owner or owners of suchparcel. In any such circumstance, the Rate and Method of Apportionment may be revised to reflect the higher or lower Special Tax, as applicable. Under no circumstances will the Special tax levied in any fiscal year against any residential parcel be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. The Special Tax herein proposed, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner as this City Council or its designee shall determine, including, without limitation, direct billing of the affected property owners, and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any Special Tax that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista (the “City”), acting for and on behalf of the District. The Special Tax obligation for any parcel may be prepaid and permanently satisfied in whole or in part pursuant to the provisions therefor contained in the Rate and Method of Apportionment. Pursuant to Government Code Section 53340 and except as provided in Government Code Section 53317.3, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax. 3 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 118 SECTION 8.Effective Date of Future Annexation. Annexation of any parcel in the Future Annexation Area to the District in the future shall be effective only upon the unanimous approval and election of the owner or owners of any such parcel authorizing the levy of the Special Tax upon such parcel following the annexation of such parcel to Districtand only after the owner or owners of such parcel enter into a written agreement with the City (“Agreement for Deferral of Development Impact Fees,” in the form previously approved by the City and on file in the Office of the City Clerk), and no further public hearings or additional proceedings will be required to accomplish such annexation. SECTION 9.Public Hearing. NOTICE IS GIVEN THAT ON MARCH 15, 2016 AT 5 PM, OR AS SOON THEREAFTER AS THE PUBLIC HEARING MAY BE CALLED, IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL OF BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE AUTHORIZATION FOR ANNEXATION OF CERTAIN TERRITORY IN THE FUTURE TO THE DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN SAID PROPOSED FUTURE ANNEXATION AREA, UPON THE ANNEXATION THEREOF TO THE DISTRICT, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. ANY INTERESTED PERSONS MAY APPEAR AND BE HEARD, AND WRITTEN PROTESTS SHALL BE FILED ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. SECTION 10.Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. SECTION 11.Survival. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council of the City of Chula Vista hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 12.This Resolution shall become effective immediately upon its adoption. PREPARED BY:APPROVED AS TO FORM BY: Eric CrockettGlen R. Googins Director of Economic DevelopmentCity Attorney 4 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 119 EXHIBIT A RATE AND METHOD OF APPORTIONMENT A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 120 Rate and Method of Apportionment of Special Tax Community Facilities District No. 17-I (Western Chula VistaDIF Financing) A Special Tax shall be levied on each Assessor’s Parcel of Taxable Property within the boundaries of Community Facilities District No. 17-I (Western Chula Vista DIF Financing) of the City of Chula Vista (the “City”) and collected each FYcommencing in Special Tax Commencement FY applicable to such Assessor’s Parcel, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 17-I, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafterset forth have the following meanings: “Accrued Interest Obligation” means for each Assessor’s Parcel, the amount of interest accrued on theDeferred DIF Obligation from the date of the issuance or grant of a Certificate of Occupancy for such property as determined in accordance with Section 3.D below. “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map,or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable FinalMap. An Acre means 43,560 square feet of land. “Act”means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Annual Special Tax”means the Special Tax actually levied in any FYon any Assessor’s Parcel whichis equal to the sum of the Annual Special Tax for Facilities and the Annual Special Tax for Accrued Interest in accordance with Section 3.E below. “Annual Special Tax for Facilities”means the amount of the Special Tax levied on an Assessor’s Parcelof Developed Property in any FY, commencing with the Special Tax Commencement FY, to satisfy the repayment of the Deferred DIF Obligation over the term of the Special Tax as set forth in Section 7 determined in accordance with Section 3.E below unless the Special Tax Obligation is prepaid pursuant to the provisions of Section 6 thereto. “Annual Special Tax for Accrued Interest”means the amount levied on an Assessor’s Parcel of Developed Property in any FY, commencing with the Special Tax Commencement FY, to satisfy the repayment of the Accrued Interest Obligation over the term of the Special Tax as set forth in Section 7 determined in accordance with Section 3.E below unless the Special Tax Obligation is A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 121 prepaid pursuant to the provisions of Section 6 thereto.. “Annual Special Tax for Current Interest”means the amount levied on an Assessor’s Parcel of Property in any FY, commencing with the Special Tax Commencement FY, to satisfy the Developed requirement to pay interest on unpaid deferred fees during the 20-year repayment period commencing with the Special Tax Commencement FY and ending on June 30th of the Special Tax Final Year. “Assessor” means the Assessor of the County of San Diego. “Assessor's Parcel” means a lot or parcel shown on an Assessor's Parcel Map with an assigned mber. Assessor's Parcel Nu “Assessor's Parcel Map” means an official map of the Assessor designating parcels by Assessor’s er. Parcel Numb “Assessor's Parcel Number” means the number assigned to an Assessor's Parcel by the Assessor for purposes of identification. “Assigned Special Tax Obligation” means for each Assessor’s Parcel, the amount determined in Section 3.B below. accordance with “Building Permit”means a building permit issued by the City for construction of a Residential Unit Residential Property located within CFD No. 17-I. or Non- “Building Square Footage” means all of the square footage of usable area within the perimeter of residential structure, not including any carport, walkway, garage, overhang, or similar area. The a determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City. “Certificate of Occupancy”means a certificate issued or approval granted by the City, or other government entity, that authorizes the actual occupancy of a Residential Unit for applicable habitation by one or more residents or the occupancy of Non-Residential Property. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Assigned Special Tax Obligation and the Annual Special Tax, for preparing the Annual Special Tax roll and/or calculatingthe Backup Special Tax. “CFD No. 17-I” means the City of Chula Vista Community Facilities District No. 17-I (Western Chula inancing). Vista DIF F “City”means the City of Chula Vista, California. “Council” means the City Council of the City acting as the legislative body of CFD No. 17-I under the Act. “County”means the County of San Diego, California. “Deferred DIF Obligation” means for each Assessor’s Parcel, the remaining balance of DIFs that havebeen deferred on such Assessor’s Parcel since Building Permit issuance as determined in accordance with Section 3.C below. A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 122 “Developed Property” means for each FY, all Taxable Property for which a Building Permit was issuedprior to May 1 of the previous FY. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the FYfor which Special Taxes are being levied shall be reclassified as Undeveloped Property. “DIF Deferral Agreement”means, as to an Assessor’s Parcel, the Agreement for Deferral of t Impact Fees by and between the owner of such Assessor’s Parcel and the City. Developmen “DIF”or“DIFs”shall, as to an Assessor’s Parcel, have the meaning given such terms inthe DIF Deferral Agreement applicable to such Assessor’s Parcel. “Effective Date”shall mean, as to each DIF Deferral Agreement, the effective date of such as specified therein. agreement “Exempt Property” means for each FY, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 8 below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line t, pursuant to the Subdivision Map Act (California Government Code Section66410et adjustmen seq.) or recordation of a condominium plan pursuant to California Civil Code4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” or “FY” means the period starting on July 1 and ending the following June 30. “Initial Fiscal Year”means, as to any Assessor’s Parcel subject to a DIF Deferral Agreement, the FY e Effective Date of such DIF Deferral Agreement falls. in which th “Initial Interest Accrual Date”shall mean, as to any Assessor’s Parcel of Developed Property, the which the Certificate of Occupancy for such Assessor’s Parcel is issued. date on “Initial Accrued Interest Obligation FY” shall mean, as to any Assessor’s Parcel of Developed he FYin which the Initial Interest Accrual Date for such Assessor’s Parcel falls. Property, t “Maximum Special Tax Obligation” means for each Assessor’s Parcel, the amount assigned in accordance with Sections 3.A below. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a permit has been issued for the purpose of constructing one or more non-residential building structures or facilities. “Original Parcel” means an Assessor’s Parcel within the boundaries of CFD No. 17-I that was assigneda Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the prior FY but has been subsequently subdivided into Successor Parcels for the current FY. “Prepayment Amount” means the amount required to prepay the Annual Special Tax obligation in full for an Assessor’s Parcel as described in Section 6.A below. “Public Property” means any property within the boundaries of CFD No. 17-I, which is owned by, orirrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency; provided however that any property owned by a A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 123 public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building as been issued for the purpose of constructing one or more Residential Units. Permit h “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Special Tax” means any special tax levied within CFD No. 17-I pursuant to the Act and this Rate thod of Apportionment of Special Tax. and Me “Special Tax Commencement FY”shall mean, as to each Assessor’s Parcel classified as Developed Property, the FYfalling after the first day of the eleventh calendar year after the Effective Date of the DIF Deferral Agreement applicable to such Assessor’s Parcel. “Special Tax Final FY”shall mean, as to each Assessor’s Parcel of Developed Property, the FY July 1 of nineteenth (19th) FYfollowing the Special Tax Commencement FY. commencing on “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Developed Property pay the Special Tax for the remaining term of the Special Tax applicable to such Assessor’s to Parcel. “Successor Parcel” means an Assessor’s Parcel created by the Subdivision of one or more Original Parcels pursuant to Section 4 below. “State”means the State of California. “Taxable Property” means all of the Assessor's Parcels within the boundaries of CFD No. 17-I, t exempt from the levy of the Special Tax pursuant to law or Section 8 below. which are no “Undeveloped Property” means, for each FY, all TaxableProperty not classified as Developed Property. 2. LAND USE CLASSIFICATION Each FY, beginning with FY2016-17, each Assessor’s Parcel within CFD No. 17-I shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. 3. SPECIAL TAX RATES A. Maximum Special Tax Obligation A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 124 The Maximum Special Tax Obligation applicable to an Assessor's Parcel subject to a DIF DeferralAgreement in the Initial FYapplicable to such Assessor’s Parcel shall be determined pursuant to Table 1 below. Table 1 YMaximum Special Tax Obligation Initial F Maximum Assessor’s Parcel No. Special Tax Obligation The Maximum Special Tax Obligation applicable to an Assessor’s Parcel subject to a DIF Deferral Agreement shall be subject to escalation by the increase in any DIF included in the Deferred DIF Obligation between amount of such DIF in effect on the Effective Date of such DIF Deferral Agreement and the amount of such DIF in effect on the date of issuance of the first Building Permit for development of such Assessor’s Parcel. Commencing on July 1 of the FYfollowing the Initial Interest Accrual Date, the Maximum Special Tax Obligation for such Assessor’s Parcel shall increase on July 1 of each FYby an amount equal to two percent (2%) of the Maximum Special Tax Obligation in effect for the prior FY. B. Assigned Special Tax Obligation On July 1 of each FYcommencing the Special Tax Commencement FY, the CFD or shall determine the Assigned Special Tax Obligation for that FY. Administrat The Assigned Special Tax Obligation in any given FYcommencing the Special Tax Commencement FY shall be the sum of the Deferred DIF Obligation plus the Accrued Interest Obligation. If for any FYthe Assigned Special Tax Obligation is determined to be greater than the Maximum Special Tax Obligation, then the Assigned Special Tax Obligation shall be equal to the Maximum Special Tax Obligation. C. Deferred DIF Obligation The Deferred DIF Obligation applicable to an Assessor’s Parcel classified as Undeveloped Propertyshall be zero. The initial Deferred DIF Obligation applicable to an Assessor's Parcel classified as Developed Property shall be determined by the CFD Administrator at the time of issuance of a Building Permit for such Assessor’s Parcel. The Deferred DIF Obligation shall be equal to the sum of the applicable DIFs specified in the DIF Deferral Agreement for each Building Permit issued for Assessor’s Parcels within CFD No. 17-I. The amount of each DIF specified in the DIF Deferral Agreementfor an Assessor’s Parcel shall be based on the fee schedule applicable to such DIF in effect at the time of issuance of such Building Permit. A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 125 The Deferred DIF Obligation in any FYapplicable to an Assessor’s Parcel of Developed Propertyshall be equal to the Deferred DIF Obligation in the prior FYless any Annual Special Tax for Facilities payments made in the prior FY. If a partial prepayment is made pursuant to Section 6.B below, the Deferred DIF Obligation will also be reduced by the applicable amount of the Deferred DIF Obligation that was prepaid. D. Accrued Interest Obligation The Accrued Interest Obligation in the Initial FYand each subsequent FY prior to the Initial AccruedInterest Obligation FYapplicable to an Assessor’s Parcel classified as Developed Property for which a Certificate of Occupancy has not been issued prior to July 1 of such FY shall be zero. The Accrued Interest Obligation applicable to any Assessor’s Parcel classified as Developed Property shall commence to accrue on the Initial Interest Accrual Date. The Accrued Interest Obligation applicable to such Assessor’s Parcel in the Initial Accrued Interest Obligation FY shall be equal to two percent (2%) of the Deferred DIF Obligation as of July 1 of such FYmultiplied by a fraction the numeratorof which is the number of calendar days from and including the Initial Interest Accrual Date to and including June 30th of such FY and the denominator of which is 365. The Accrued Interest Obligation for each subsequent FYprior to the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation in the prior FYplus two percent (2%) of the Deferred DIF Obligation as of July 1 of the prior FY. The Accrued Interest Obligation in the Special Tax Commencement FY and each subsequent FYapplicable to an Assessor’s Parcel classified as Developed Property shall be equal to the Accrued Interest Obligation as of July 1 of the prior FYless any Annual Special Tax for Accrued Interest payments made in the prior FY. If a partial prepayment is made pursuant to Section 6.B below, the Deferred DIF Obligation will also be reduced by the applicable amount of the Accrued Interest Obligation that was prepaid. E. Annual Special Tax The Annual Special Tax for Developed Property in any FYcommencing the Special Tax FY shall be equal to (i) the Annual Special Tax for Facilities plus (ii) the Commencement Annual Special Tax for Accrued Interest plus (iii) the Annual Special Tax for Current Interest. The Annual Special Tax for Facilities in any FYcommencing the Special Tax Commencement FY shall be equal to the Deferred DIF Obligation on July 1 of the Special Tax Commencement FY times the Repayment Rate specified in Table 2 below that corresponds with such FY. In each subsequent FY, the Annual Special Tax for Facilities will remain unchanged until the Deferred DIF Obligation is paid in full. A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 126 The Annual Special Tax for Accrued Interest in any FYcommencing the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation on July 1 of the Special Tax Commencement FY times the Repayment Ratespecifiedin Table 2 below that corresponds with such FY. In each subsequent FY, the Annual Special Tax for Accrued Interest will remain unchanged until the Accrued Interest Obligation is paid in full. The Annual Special Tax for Current Interest in any FYcommencing the Special Tax Commencement FY shall be equal to the Deferred DIF Obligation on July 1 of such FYtimes the Current Interest Rate in Table 2 below that corresponds with such FY. Table 2 on Table Amortizati Current Interest Fiscal Year Repayment Rate Rate Initial Accrued Interest Obligation FY through the FYpreceding the0%0% Special Tax Commencement FY Special Tax Commencement FY through the Special Tax 5%2% Final FY 4. METHOD OF APPORTIONMENT Commencing with the Special Tax Commencement FY and for each following FY, the CFD Administrator shall apportion the Assigned Special Tax Obligation as set forth below. First:All Original Parcels that are reflected on the Assessor’s Parcel Maps applicable to the current FYwill be assigned a Maximum Special Tax Obligation and Assigned Special Tax Obligation in accordance with Section 3 above. Second:All Original Parcels that are not reflected on the Assessor’s Parcel Maps applicable to the current FYwillbe assigned a Maximum Special Tax Obligation and Assigned Special Tax Obligation in accordance with Section 3 above as if such parcels still existed in their previous form. Third:The Maximum Special Tax Obligation and Assigned Special Tax Obligation that were calculated in the Second step above will be assigned to each applicable Successor Parcel based on the amount of Taxable Acreage contained in such Successor Parcel divided by the amount of Taxable Acreage contained in the relevant Original Parcel. The sum of the Maximum Special Tax Obligations of each group of Successor Parcels shall be equal to Maximum Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. Likewise, the sum of the Assigned Special Tax Obligations of each group of Successor Parcels shall be equal to Assigned Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 127 Fourth:The Special Tax shall be levied on each Assessor’s Parcel of Developed Property at 100% of the applicable Annual Special Tax. Successor Parcels that are assigned a Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the current FYwill be considered Original Parcels in the following FY. 5. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquencyas ad valorem taxes; provided, however, that the Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 6. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay, and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request, and may charge a reasonable fee for providing this service. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): Deferred DIF Obligation plus Accrued Interest Obligation plus Prepayment Administrative Fees and Expenses Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 128 Step No.: 1.Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. For Assessor’s Parcels of Developed Property, determine the Deferred 2. DIF Obligation and the Accrued Interest Obligation. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Deferred DIF Obligation for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3.Calculate the administrative fees and expenses of CFD No. 17-I, including the costs of computation of the prepaymentand the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). 4.The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 1, 2 and 3 (the “Prepayment Amount”). The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor's Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a notice of cancellation of Special Tax lien to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor's Parcel to pay the Special Tax shall cease. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for whicha building permit has been issued may be partially prepaid. The amount of the prepaymentshall be calculated as in Section 6.A, except that a partial prepayment shall be calculated according to the following formula: PP = (P-A) x F+A E These terms have the following meaning: PP = the partial prepayment P= the Prepayment Amount calculated according to Section 6.A E F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 6.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 129 company or agency that will be acting as the escrow agent, if any. The CFD Administrator shallprovide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of CFD No. 17-I that there has beena partial prepayment of the Special Tax Obligation and that the remaining Special Tax Obligation of such Assessor’s Parcel, equal to the outstanding percentage (1.00 -F) of the Deferred DIF Obligation and the Accrued Interest Obligation, shall continue to be levied on such Assessor’s Parcel in the same manner as before the Partial Prepayment. 7. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to satisfy the Assigned Special Tax Obligation for a period not to exceed thirty (30) FYscommencing with Special Tax Commencement FY, provided however that the Special Tax will cease to be levied in an earlier FYif the CFD Administrator has determined that all CFD No. 17-I obligations have been satisfied. 8. EXEMPTIONS The CFD Administratorshall classify only Assessor’s Parcels of Public Property as Exempt Property (i) Assessor’s Parcels of Public Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as Public Property, per the first paragraph of Section 8 above such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 9. APPEALS Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i)Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current FYprior to the payment date, (ii)Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or (iii)Grant a credit against, eliminate or reduce the future Special Taxes on the landowner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the City Council. Upon the receipt of such notice, the City Council or designee may establish such procedures as deemed A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 130 necessary to undertake the review of any such appeal. If the City Council or designee determines anerror still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Council or designee shall be final. A-1 60297.00044\\21972945.3 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 131 City of Chula Vista Staff Report File#:16-0073, Item#: 8. RATIFICATION OF APPOINTMENTS TO THE FOLLOWING COMMISSIONS: -Mayra Swanson, Board of Library Trustees -Carlos Jaime, Resource Conservation Commission City of Chula VistaPage 1 of 1Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 132 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 133 City of Chula Vista Staff Report File#:16-0077, Item#: 9. ConsiderationofCityCouncilendorsementoftheCommunityOpusProjectVivaMúsicaevent,May 7, 2016. City of Chula VistaPage 1 of 1Printed on 2/4/2016 powered by Legistar™ ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 134 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 135 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 136 ΑΏΐΕȃΏΑȃΏΘ !¦¤­£  Packet0 ¦¤ 137