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.
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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
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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.
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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
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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)
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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.
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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.
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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.
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City of Chula Vista
Staff Report
File#:16-0069, Item#: A.
PRESENTATIONOFAPROCLAMATIONTOCHULAVISTAPUBLICWORKSDEPARTMENT
PUMPTECHNICIANKENNETHTHILTGEN,ON25YEARSOFSERVICETOTHECITYOF
CHULA VISTA
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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
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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
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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
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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
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Location of Work
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SW276 FY 2012/13 Rehabilitation
Location Summary Map
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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
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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
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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
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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
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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
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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
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Resolution No.
Page 2
Director of Public WorksApproved as to form by
Glen R. Googins
City Attorney
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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.
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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.
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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
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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
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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.
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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
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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.
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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.
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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
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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.
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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
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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.
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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.
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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
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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
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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
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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
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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
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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”).
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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.
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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.
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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
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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
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EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
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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..
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“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
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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.
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“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
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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.
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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.
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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
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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”).
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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,
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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.
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EXHIBIT B
AGREEMENT FOR DEFERRAL OF DIF
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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
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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
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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
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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.
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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
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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
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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.
\[SIGNATURE PAGE TO FOLLOW\]
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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
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EXHIBIT A –Depiction and Description of Property
APN:
LEGAL DESCRIPTION
A-1
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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
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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.
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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
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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
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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
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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
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(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”
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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.
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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.
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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.
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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
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EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
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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
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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.
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“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
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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
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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.
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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.
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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.
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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:
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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
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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
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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.
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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
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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
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