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HomeMy WebLinkAbout2016/03/22 Agenda Packet 1 dalarc under penalry of perjury that I un employed by t6e City o(Chul�Visn in the office o(thc Ciry Clak ud thu 1 postad the document ucordin�ro Brown Aa requuemenb. Dnced:2�i�Sip�ed:_���""� � c� QiUTA V15TA / ` ����Z��� � Mary Casillas Salas, Mayor Paficia Aguilar, Councilmember Gary Halbert, City Manager Pamela Bensoussan, Counalmember Glen R. Googins, City Attomey John McCann. Councilmember ponna R. Norris, City Clerk Steve Mfesen, Councilmember Tuesday, March 22, 2016 5:00 PM Council Chambers 276 4th Avenue, Building A Chula �sta, CA 91910 REGULAR MEETING OF THE CITY COUNCIL CALLTO ORDER ROLL CALL: Councilmembers Aguilar, Bensoussan, McCann, Miesen and Mayor Casillas SaJas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE �AY A. 16-0144 PRESENTATION OF A PROCLAMATION TO HOPE FOUNDATION FOUNDER SHERRIE RUBIN AND DRUG ENFORCEMENT ADMINISTRATION SUPERVISORY SPECIAL AGENT THOMAS LENNOX PROCLAIMING MARCH 2O16 AS PRESCRIPTION DRUG ABUSE PREVENTION MONTH IN THE CITY OF CHULA VISTA B. 1&0138 PRESENTATION BY 50UTH BAY COMMUNITY SERVICES' PRESIDENT/CEO KATHRYN LEMBO AND ENGAGEMENT DIRECTOR LIZ RAMIREZ REGARDING CESAR CHAVEZ DAY OF SERVICE EVENTS ON MARCH 31, 2016 Ciry a/C�u4 YsG P�9e 1 PnntW on 3M)2016 March 22, 2016City Council Agenda PRESENTATION BY INTERNATIONAL FRIENDSHIP COMMISSION MEMBER EUGENE YEE REGARDING THE 35th ANNIVERSARY OF THE CITY OF CHULA VISTA’S SISTER CITY RELATIONSHIP WITH ODAWARA, JAPAN, AND A PLANNED DELEGATION TRIP TO ODAWARA IN SEPTEMBER 2016 16-0156C. CONSENT CALENDAR (Items 1 - 2) 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. ORDINANCE OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT (SECOND READING AND ADOPTION) 16-01481.16-0148 Economic Development Department Department: The 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. Environmental Notice: Council adopt the ordinance. Staff Recommendation: HOUSING ELEMENT 2015 ANNUAL PROGRESS REPORT The report provides information on the City’s housing activities in 2015, including progress in meeting the regional housing need; the Housing Element’s effectiveness in attaining the community’s housing goals and objectives; and progress toward mitigating governmental constraints identified in the Housing Element. 16-00722. Development Services Department Department: The 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. Environmental Notice: Council accept the report. Staff Recommendation: Page 2 City of Chula Vista Printed on 3/17/2016 2016-03-22 Agenda Packet Page 2 March 22, 2016City Council Agenda ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council’s jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. ACTION ITEMS The Item 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. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TERMS FOR AN AGREEMENT WITH POINT LOMA TRUST FOR THE OPERATION OF THE CHULA VISTA ELITE ATHLETE TRAINING CENTER 16-01493. City Manager Department: The Project was adequately covered in previously adopted/certified Final Environmental Impact Report (EIR 89-11) for the Olympic Training Center Sectional Planning Area (SPA) Plan. Environmental Notice: Council adopt the resolution. Staff Recommendation: CITY MANAGER’S REPORTS MAYOR’S REPORTS COUNCILMEMBERS’ COMMENTS ADJOURNMENT to the Regular City Council Meeting on April 5, 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 for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. Page 3 City of Chula Vista Printed on 3/17/2016 2016-03-22 Agenda Packet Page 3 March 22, 2016City Council Agenda In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Most Chula Vista City Council meetings, including public comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channel 24 (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 notifications when City Council agendas are published online. Page 4 City of Chula Vista Printed on 3/17/2016 2016-03-22 Agenda Packet Page 4 City of Chula Vista Staff Report File#:16-0144, Item#: A. PRESENTATIONOFAPROCLAMATIONTOHOPEFOUNDATIONFOUNDERSHERRIERUBIN ANDDRUGENFORCEMENTADMINISTRATIONSUPERVISORYSPECIALAGENTTHOMAS LENNOXPROCLAIMINGMARCH2016ASPRESCRIPTIONDRUGABUSEPREVENTION MONTH IN THE CITY OF CHULA VISTA City of Chula Vista Printed on 3/17/2016Page 1 of 1 powered by Legistar™2016-03-22 Agenda Packet Page 5 City of Chula Vista Staff Report File#:16-0138, Item#: B. PRESENTATIONBYSOUTHBAYCOMMUNITYSERVICES’PRESIDENT/CEOKATHRYNLEMBO ANDENGAGEMENTDIRECTORLIZRAMIREZREGARDINGCESARCHAVEZDAYOFSERVICE EVENTS ON MARCH 31, 2016 City of Chula Vista Printed on 3/17/2016Page 1 of 1 powered by Legistar™2016-03-22 Agenda Packet Page 6 City of Chula Vista Staff Report File#:16-0156, Item#: C. PRESENTATIONBYINTERNATIONALFRIENDSHIPCOMMISSIONMEMBEREUGENEYEE REGARDINGTHE35th ANNIVERSARYOFTHECITYOFCHULAVISTA’SSISTERCITY RELATIONSHIPWITHODAWARA,JAPAN,ANDAPLANNEDDELEGATIONTRIPTOODAWARA IN SEPTEMBER 2016 City of Chula Vista Printed on 3/17/2016Page 1 of 1 powered by Legistar™2016-03-22 Agenda Packet Page 7 City of Chula Vista Staff Report File#:16-0148, Item#: 1. ORDINANCEOFTHECITYOFCHULAVISTAACTINGASTHELEGISLATIVEBODYOF COMMUNITYFACILITIESDISTRICTNO.17-I(WESTERNCHULAVISTADIFFINANCING PROGRAM)AUTHORIZINGTHELEVYOFASPECIALTAXINSUCHCOMMUNITY FACILITIES DISTRICT (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY InApril2015,theCityCounciladoptedanamendmenttothemunicipalcodethatallowedtheCity CounciltodeferdevelopmentimpactfeesforprojectswithinWesternChulaVista.Thedeferralof impactsfeescanbeaccomplishedbyagreementorbyprojectsannexingintoaCommunityFacilities District(CFD).Atthattime,staffindicatedthatitwouldreturnatalaterdatewiththecurrentactionto establishaCFDthatwouldbeavailabletoprojectslocatedinindustrial,commercialandhighdensity residentialzoneslocatedthroughoutWesternChulaVistaandtheChulaVistaAutoParkarea.On February9,2016,theCounciladoptedResolutionsdeclaringitsintenttoformCFD17-Iandadopting aboundarymapfortheCFD.Thisitemwillincludeapublichearing,theadoptionofaresolution establishingsuchCFD,avoteonthelevyofspecialtaxeswithintheCFD,theadoptionofa resolutiondeterminingtheresultsofsuchelectionandanordinancetoauthorizethelevyofaspecial tax within 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”as definedunderSection15378oftheStateCEQAGuidelinesbecausetheactivityconsistsofa 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 City of Chula Vista Printed on 3/17/2016Page 1 of 4 powered by Legistar™2016-03-22 Agenda Packet Page 8 File#:16-0148, Item#: 1. DISCUSSION InvestmentinWesternChulaVistacontinuestopresentafinancingchallengeforpotentialinvestors anddevelopers.Financingchallengesderiveprimarilyfromthelendingindustry’sincreasedequity requirementsimposeduponinfilldevelopmentprojectsinWesternChulaVista.Tohelpaddressthe additionalequityburdenbeingplacedoninfilldevelopmentinthesubjectarea,theCityCouncil adoptedanOrdinanceinApril2015thatallowsthedeferralofimpactfeestoincentivizefuture investmentinthisarea.Accordingly,staffenlistedthelegalservicesofBestBest&Krieger,and financialservicesfirmWilldanFinancialServices,toassiststaffinpreparingandbringingforwardthis item to initiate formation of the CFD. Thedeferralofthepaymentofimpactfeeswillreducetheadditionalequityburdenbyanamount equaltothefees.TheCFDwillalsoenablethedevelopertoshifttheimpactfeeburdenfromthe construction/developmentcostsideoftheirledgertotheoperatingsideofthedevelopment.TheCFD willnotbeutilizedasamechanismtoissuedebtbutratherasawaytofinanceimpactfeesovertime. TheCFDwillbeavailableforafiveyearwindowinwhichpropertyownerscanelecttoannexintothe District,unlessthetermoftheCFDisextendedbytheCityCouncil.Staffestimates,basedon projectsthathavebeenapprovedorareinthepipeline,approximately800residentialunitsand 300,000squarefeetofcommercialdevelopmentwillhavetheopportunitytoparticipateinthe programpriortoitsexpiration.Theseprojectsareanticipatedtoprovidethecomparablesnecessary to reduce the risk to the lending industry. TheCFDwilldeferthepaymentofthreeDevelopmentImpactFees(DIFs)-thePublicFacilities (PFDIF),theParklandAcquisitionandDevelopmentFee(PADFee)andaportionoftheWestern TransportationDIF(WTDIF).Newdevelopmentprojectswillalsocontinuetoberequiredtomitigate for on-site “direct” impacts. ThroughtheRegionalTransportationCongestionImprovementProgram(RTCIP),anelementofthe TransNetExtensionOrdinance,the18citiesandtheCountyofSanDiegoarerequiredtocollectan exactionfromtheprivatesectorforeachnewhousingunitconstructedintheirjurisdiction.TheCity haspreviouslyagreedtocollectaminimumamountoftheWTDIFrequiredfortheregionalarterial roadwaysystem.Inordertomeetthisobligationthecitywillcontinuetocollectapproximately60%of theWTDIFanddeferapproximately40%.Projectswillcontinuetomitigateforon-site“direct”impacts (i.e.turnpocket,trafficsignal,roadwidening)andpayfeesforitemssuchassewercapacity,school andwaterfees,whicharenoteligiblefordeferralundertheCFDprogramandwillcontinuetobepaid as part of any new development. OnFebruary9,2016,theCounciladoptedtworesolutionstoinitiateproceedingstoconsiderthe formationoftheCFD.Atthatmeeting,theCouncilapprovedaresolutionthatadoptedaboundary mapofthe“Core”propertytobeinitiallyincludedintheCFD.TheCorepropertyislocatedat980- 986Broadway,andwillinclude80condominiumunitsandapproximately2,100squarefeetofretail space.AsecondresolutionapprovedbytheCityCouncilexpressedtheCouncil’sintenttoformCFD 17-I.Inaseparatebutcorrespondingaction,theCounciladoptedresolutionsdeclaringtheirintentto authorizetheannexationFutureAnnexationAreastoallowadditionalpropertyownerstovoluntarily elect to annex individual project sites into the CFD at a future date. ThereareseveralactionstobetakenintheformationofCFD17-I.First,apublichearingwillbeheld City of Chula Vista Printed on 3/17/2016Page 2 of 4 powered by Legistar™2016-03-22 Agenda Packet Page 9 File#:16-0148, Item#: 1. ThereareseveralactionstobetakenintheformationofCFD17-I.First,apublichearingwillbeheld relatingtotheestablishmentoftheDistrict,theextentoftheDistrict,thefinancingofthepaymentof certaindevelopmentimpactfeeobligationsdescribedaboveandallrelatedmatterstotheCFD formation.IfitisdeterminedthatamajorityprotesttotheformationoftheCFDhasnotbeenfiledby theownersofmorethanonehalfofacreageofthepropertyproposedtobeinitiallyincludedinthe CFD,theCityCouncilmayconsideraresolutionformingandestablishingtheCFD.Bytheadoption ofsuchresolution,theCityCouncilwill,amongotheractions,makecertaindeterminationspertaining totheCFD;confirmtheinitialboundariesoftheCFD,confirmthedevelopmentimpactfeesthe paymentofwhichareauthorizedtobefinancedbythepaymentofspecialtaxesleviedwithinthe CFD,authorize,subjecttotheapprovalofthequalifiedelectoroftheCFD,thelevyofspecialtaxes withintheCFDandcallaspecialelectiontobeheldimmediatelyfollowingtheadoptionofsuch resolution.Next,anelectionwillbeheldwiththeowneroftheCoreproperty.Theelectionwillbeto authorizethelevyofspecialtaxesandtoestablishthemaximumannualamountoftheamendedlevy (the “Gann Limit”). Thesecondresolutionwillbetoapprovetheresultsoftheelectionandentertheresultsofthe electionintotheminutes.Iftheelectionpasses,thefinalactionwillbethefirstreadingofan ordinanceauthorizingthelevyandcollectionofthespecialtaxes.Iftheelectionfails,nofurther action is required. 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.). 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 Allconsultantsandstafftimerelatedtothisactionarebeingfundedbyexistingappropriationsinthe Economic Development Department’s fiscal year 2015-16 budget. ONGOING FISCAL IMPACT TheWesternChulaVistaFinancingProgramwilldeferpaymentofthreedevelopmentimpactfees- thePFDIF,PADandapproximately40%oftheWTDIFforaperiodofthirtyyearsincurringtwo percentinterest,perannum,uponreceiptofoccupancy.Therewouldbenoobligationtomakea paymentonthedefermentinyears1through10however;thedeferredfeesarerequiredtoberepaid inyears11through30.Ifapropertyissoldorsubdivided,theobligationtorepaythefeesrunswithCity of Chula Vista Printed on 3/17/2016Page 3 of 4 powered by Legistar™2016-03-22 Agenda Packet Page 10 File#:16-0148, Item#: 1. inyears11through30.Ifapropertyissoldorsubdivided,theobligationtorepaythefeesrunswith theland.Thenon-paymentperiodalignswithstandardcommerciallendingpractices.Itisanticipated the some projects will repay the deferred fees in year ten when the project is refinanced. Newdevelopmentsareassesseddevelopmentimpactfeesfortheincrementalimpactsresultingfrom saiddevelopment.Impactfeesdonotpayfororresolvethedeficienciesoffacilitiesthatmayexist today.Asstatedabove,allnewdevelopmentwillcontinuetomitigateforon-siteimpactsresulting from each respective project. Development Impact Fees Deferred Collected Western Transportation Development Impact Fee (WTDIF) $140,000 $240,000 Western Parkland Acquisition and Dev. (WPAD)$1.0 m $0 Public Facilities Development Impact Fee (PFDIF)$1.0 m $0 Theabovetableillustratestheestimatedamountofimpactfeesthatwouldbedeferredasaresultof theCFDprogramona100unitmulti-familyresidentialproject.Aresidentialprojectwasused becauseitistheonlylandusethatischargedallthreedevelopmentimpactfeeprograms.Allother landuses(i.e.commercial,retailandhotels)areexemptfrompayingintotheWPADfundandare exemptfromcertainportionsofthePFDIF.ItisimportanttonotethattheCitywillstillcollectthefees due,withinterest,andasnotedintheEngineer’sReport(AttachmentA),therewillbeadequate fundingcollectedoverthelifeoftheCFDtoensurethatallanticipatedimprovementsarecompleted. Inaddition,staffhasreviewedthevariousfeeprogramsandthetimingoffacilitiesandhasconcluded that the CFD program would not result in the delay of building any new public facilities. Inconclusion,shouldtheCFDprogrambesuccessfulitisanticipatedtogeneratenewdevelopment which,wouldtranslateintoanincreaseinassessedvaluationandhaveapositiveimpactonthe neighboringpropertyvalueswhilealsoprovidingnewresidentsandemployeestohelpsupportthe surrounding businesses located along the retail corridors. ATTACHMENTS 1 - Hearing Report Staff Contact: Craig Ruiz, Principal Economic Development Specialist City of Chula Vista Printed on 3/17/2016Page 4 of 4 powered by Legistar™2016-03-22 Agenda Packet Page 11 1 ORDINANCE NO. _________ ORDINANCE OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”) andthe City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”). This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 17-I (Western Chula Vista DIF Financing Program) (the “District”). NOW THEREFORE, the City Council of the City of Chula Vista, California, acting as the legislative body of Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program), does hereby ordain as follows: SECTION 1.Authorization of Levy of Special Taxes. This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit “A” attached hereto and incorporated herein by this reference (the “Rate and Method”). SECTION 2.Authorization to Annually Determine the Special Tax. This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annually determine the special tax to be levied within the District for the then current tax year or future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method. SECTION 3.Collection of Special Taxes. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4.Special Tax Lien. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways 2016-03-22 Agenda Packet Page 12 2 Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. SECTION 5.This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall certify to the passage and adoption of this Ordinance and cause this Ordinance to be published or posted pursuant to the provisions of Chula Vista’s City Charter, Section 312(b). Introduced at a regular meeting of the City Council of the City of Chula Vista, California, on March 15, 2016; Enacted at a regular meeting of the City Council of the City of Chula Vista, California, held on the ______ day of ________________, 2015, by the following vote: PREPARED BY:APPROVED AS TO FORM BY: ______________________________ Eric Crockett,Glen R. Googins, Director of Economic Development City Attorney 2016-03-22 Agenda Packet Page 13 A -1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING PROGRAM) 2016-03-22 Agenda Packet Page 14 A -2 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 Fiscal Year 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 realproperty 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 hereinafter set forth have the following meanings: “Accrued Interest Obligation” means for each Assessor’s Parcel, the amount of interest accrued on the Deferred 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 Final Map. 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 Fiscal Year on any Assessor’s Parcel which 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 anAssessor’s Parcel of Developed Property in any Fiscal Year, 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 Fiscal Year, 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.. 2016-03-22 Agenda Packet Page 15 A -3 “Annual Special Tax for Current Interest”means the amount levied on an Assessor’s Parcel of Developed Property in any Fiscal Year, 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 Assessor's Parcel Number. “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 for purposes of identification. “Assigned Special Tax Obligation” means for each Assessor’s Parcel, the amount determined in accordance with Section 3.B below. “Building Permit”means a building permit issued by the City for construction of a Residential Unit or Non-Residential Property located within CFD No. 17-I. “Building Square Footage” means all of the square footage of usable area within the perimeter of a residential 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 approval granted by the City, or other applicable government entity, that authorizes the actual occupancy of a Residential Unit for 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 calculating the Backup Special Tax. “CFD No. 17-I” means the City of Chula Vista Community Facilities District No. 17-I (Western Chula Vista DIF Financing). “City” means the City of Chula Vista, California. “Council” means the City Council of the City acting as the legislative body ofCFD 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 have been deferred on such Assessor’s Parcel since Building Permit issuance as determined in accordance with Section 3.C below. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. 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 2016-03-22 Agenda Packet Page 16 A -4 Property has been cancelled and/or voided prior to the Fiscal Year for 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 Development Impact Fees by and between the owner of such Assessor’s Parcel and the City. “DIF” or “DIFs”shall, as to an Assessor’s Parcel, have the meaning given suchterms 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 agreement as specified therein. “Exempt Property” means for each Fiscal Year, 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 adjustment, pursuant to the Subdivision Map Act (California Government Code Section66410 et 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” means the period starting on July 1 andending the following June 30. “Initial Interest Accrual Date”shall mean, as to any Assessor’s Parcel of Developed Property, the date on which the Certificate of Occupancy for such Assessor’s Parcel is issued. “Initial Accrued Interest Obligation FY” shall mean, as to any Assessor’s Parcel of Developed Property, the Fiscal Year in which the Initial Interest Accrual Date for such Assessor’s Parcel falls. “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 building permit has been issued for the purpose of constructing one or more non-residential structures or facilities. “Original Parcel” means anAssessor’s Parcel within the boundaries of CFD No. 17-I that was assigned a Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the prior Fiscal Year but has been subsequently subdivided into Successor Parcels for the current Fiscal Year. “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. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 17-I owned in fee by a property owner association, including any master or sub-association. “Public Property” means any property within the boundaries of CFD No. 17-I, which is owned by, or irrevocably 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. 2016-03-22 Agenda Packet Page 17 A -5 “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 and Method of Apportionment of Special Tax. “Special Tax Commencement FY”shall mean, as to each Assessor’s Parcel classified as Developed Property, the Fiscal Year falling 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 Fiscal Year commencing on July 1 of nineteenth (19th) Fiscal Year following the Special Tax Commencement FY. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Developed Property to pay the Special Tax for the remaining term of the Special Tax applicable to such Assessor’s 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, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2016-17, 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 Taxesin 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 Deferral Agreement in the Initial Fiscal Year applicable to such Assessor’s Parcel shall be determined pursuant to Table 1 below. Table 1 Initial Fiscal Year Maximum Special Tax Obligation Assessor’s Parcel No. Maximum Special Tax Obligation 618-010-17 1,600,000 2016-03-22 Agenda Packet Page 18 A -6 Commencing on July 1 of the Fiscal Year following the Initial Interest Accrual Date, the Maximum Special Tax Obligation for such Assessor’s Parcel shall increase on July 1 of each Fiscal Year by an amount equal to two percent (2%) of the Maximum Special Tax Obligation in effect for the prior Fiscal Year. B. Assigned Special Tax Obligation On July 1 of each Fiscal Year commencing the Special Tax Commencement FY, the CFD Administrator shall determine the Assigned Special Tax Obligation for that Fiscal Year. The Assigned Special Tax Obligation in any given Fiscal Year commencing the Special Tax Commencement FY shall be the sum of the Deferred DIF Obligation plus the Accrued Interest Obligation. If for any Fiscal Year the 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 Property shall 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 Permitfor 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 included in the DIF Fee Obligation 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 Fiscal Year applicable to an Assessor’s Parcel of Developed Property shall be equal to the Deferred DIF Obligation in the prior Fiscal Year less any Annual Special Tax for Facilities payments made in the prior Fiscal Year. 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 Fiscal Year 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 Fiscal Year 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 Fiscal Year multiplied 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 Fiscal Year and the denominator of which is 365. The Accrued Interest Obligation for each subsequent Fiscal Year 2016-03-22 Agenda Packet Page 19 A -7 prior to the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation in the prior Fiscal Year plus two percent (2%) of the Deferred DIF Obligation as of July 1 of the prior Fiscal Year. The Accrued Interest Obligation in the Special Tax Commencement FY and each subsequent Fiscal Year applicable to an Assessor’s Parcel classified as Developed Property shall be equal to the Accrued Interest Obligation as of July 1 of the prior Fiscal Year less any Annual Special Tax for Accrued Interest payments made in the prior Fiscal Year. 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 Fiscal Year commencing 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 Fiscal Year commencing 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 in Table 2 belowthat corresponds with such Fiscal Year. In each subsequent Fiscal Year, 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 Fiscal Year commencing 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 in Table 2 below that corresponds with such Fiscal Year. In each subsequent Fiscal Year, 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 Fiscal Year commencing the Special Tax Commencement FY shall be equal to the Deferred DIF Obligation on July 1 of such Fiscal Year times the Current Interest Rate in Table 2 below that corresponds with such Fiscal Year. Table 2 Amortization Table Fiscal Year Repayment Rate Current Interest Rate Initial Accrued Interest Obligation FY through the Fiscal Year preceding the Special Tax Commencement FY 0%0% Special Tax Commencement FY through the Special Tax Final FY 5%2% 2016-03-22 Agenda Packet Page 20 A -8 4. METHOD OF APPORTIONMENT Commencing with the Special Tax Commencement FY and for each following Fiscal Year, 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 Fiscal Year will be assigned a Maximum Special Tax Obligation and AssignedSpecial 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 Fiscal Year will 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 Fiscal Year will be considered Original Parcels in the following Fiscal Year. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 17-I by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 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 delinquency as 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 2016-03-22 Agenda Packet Page 21 A -9 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: Step No.: 1.Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2.For Assessor’s Parcels of Developed Property, determine the Deferred DIF Obligation and the Accrued Interest Obligation. For Assessor’s Parcels of Undeveloped Property for whicha 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.Calculatethe administrative fees and expenses of CFD No. 17-I, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 17-I, and the costs of recording any notices to evidence the prepaymentand 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”). 5.The Prepayment Amount shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 3 shall be retained by CFD No. 17-I. 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 theSpecial 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 suitable notice to be recorded in compliance with the Act, to indicate the prepayment ofthe Special Tax and the release 2016-03-22 Agenda Packet Page 22 A -10 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 which a 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 = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 6.A 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) Fiscal Years commencing with Special Tax Commencement FY, provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all CFD No. 17-I obligations have been satisfied. 8. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, or (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, and (v) Assessor’s Parcels of 2016-03-22 Agenda Packet Page 23 A -11 Developed Property classified as Non-Residential Property as determined reasonably by the CFD Administrator. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of Section 8 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, 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 firstconsult 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 Fiscal Year prior 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. 2016-03-22 Agenda Packet Page 24 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com/financial City of Chula Vista Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) CFD Report March 2012 2016-03-22 Agenda Packet Page 25 TABLE OF CONTENTS I. INTRODUCTION ............................................................................ 1 II. GENERAL DESCRIPTION & BOUNDARIES OF CFD NO. 17-I .............. 2 III. DESCRIPTION OF FACILITIES ......................................................... 3 IV. COST ESTIMATES ........................................................................ 4 V. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ............... 5 EXHIBIT A – BOUNDARY MAP EXHIBIT B – FUTURE ANNEXATION AREA EXHIBIT C – RATE AND METHOD OF APPORTIONMENT 2016-03-22 Agenda Packet Page 26 Page 1 I. Introduction WHEREAS, the City Council of the City of Chula Vista (hereinafter referred to as the “City Council”), in the State of California, did, pursuant to the terms and provisions of Chapter 2.5 of Part 1, of Division 2, of Title 5 of the Government Code of the State of California, as amended (the “Act”), adopted a Resolution of Intention for the proposed formation of City of Chula Vista Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) (“CFD No. 17-I”). WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following: 1. A brief description of Community Facilities District No. 17-I (Western Chula Vista DIF Financing Program) of the City of Chula Vista (“CFD NO. 17-I”); 2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 17-I. 3. A brief description of the Boundaries of CFD 17-I; and 4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing. For particulars, reference is made to the Resolution of Intention, Resolution No. 6301 as previously approved. All capitalized terms not defined herein are defined in the Rate and Method of Apportionment of Special Tax section (Exhibit C) of this report. NOW THEREFORE Willdan Financial Services, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: 2016-03-22 Agenda Packet Page 27 Page 2 II. General Description & Boundaries of CFD No. 17-I A description of the exterior boundaries of the territory proposed for inclusion in CFD No. 17-I, including properties and parcels of land proposed to be subject to the levy of a Special Tax by CFD No. 17-I, is shown on the boundary map designated as “PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING)”, which is on file in the office of the Clerk of the City Council of the City of Chula Vista and was recorded with the County Recorder of the County of San Diego in Book 45 of Maps of Assessment and Community Facilities Districts at page 26 and as Instrument Number 2016-7000074. A copy of the map is attached hereto as Exhibit A and hereby incorporated by reference. A description of the exterior boundaries of the future annexation area of CFD No. 17-I, including properties and parcels of land that may use an expedited process to annex to CFD No. 17-I, is shown on the boundary map designated as “FUTURE ANNEXATION AREA COMMUNITY FACILITIES DISTRICT NO. 17-I (WESTERN CHULA VISTA DIF FINANCING)”, which is on file in the office of the Clerk of the City Council of the City of Chula Vista and was recorded with the County Recorder of the County of San Diego in Book 45 of Maps of Assessment and Community Facilities Districts at page 33 and as Instrument Number 2016-7000075. A copy of the map is attached hereto as Exhibit B and hereby incorporated by reference. 2016-03-22 Agenda Packet Page 28 Page 3 III. Description of Facilities The General Description of the Facilities that may be acquired or constructed is as follows:  the Public Facilities Development Impact Fee pursuant to Chula Vista Municipal Code (“CVMC”) section 3.50, et seq. (“PFDIF”);  the Western Transportation Development Impact Fee pursuant to CVMC section 3.55, et seq. (“TDIF”);  the Park Development Fee pursuant to CVMC section 17.10, et seq. (“PAD”);  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 This description of the public capital facilities is general in nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans and specifications may show substitutes in lieu of, or modifications to, proposed work. Any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in the Report. 2016-03-22 Agenda Packet Page 29 Page 4 IV. Cost Estimates The proceeds of CFD No. 17-I will be used to fund deferred development impact fees in the estimated amount of approximately $1,366,800. This amount may be revised at the time of Building Permit issuance to equal the exact fee amount to be deferred. 2016-03-22 Agenda Packet Page 30 Page 5 V. Rate and Method of Apportionment of Special Tax The Rate and Method of Apportionment (RMA) provide sufficient information to allow a property owner within CFD No. 17-I to estimate the Maximum Special Tax for his or her property. It also includes method of prepayment in full or prepayment in part and th e procedure for prepayments. For particulars on the rate and method of apportionment, reference is made to Exhibit C of this report. 2016-03-22 Agenda Packet Page 31 EXHIBIT A Boundary Map 2016-03-22 Agenda Packet Page 32 EXHIBIT B Future Annexation Area 2016-03-22 Agenda Packet Page 33 2016-03-22 Agenda Packet Page 34 2016-03-22 Agenda Packet Page 35 2016-03-22 Agenda Packet Page 36 2016-03-22 Agenda Packet Page 37 2016-03-22 Agenda Packet Page 38 2016-03-22 Agenda Packet Page 39 2016-03-22 Agenda Packet Page 40 EXHIBIT C Rate and Method of Apportionment 2016-03-22 Agenda Packet Page 41 60297.00044\21522561.2 A-1 Rate and Method of Apportionment of Special Tax Community Facilities District No. 17-I (Western Chula Vista DIF 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 Fiscal Year 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 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 hereinafter set forth have the following meanings: “Accrued Interest Obligation” means for each Assessor’s Parcel, the amount of interest accrued on the Deferred 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 Final Map. 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 Fiscal Year on any Assessor’s Parcel which 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 Parcel of Developed Property in any Fiscal Year, 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 Fiscal Year, 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.. “Annual Special Tax for Current Interest” means the amount levied on an Assessor’s Parcel of Developed Property in any Fiscal Year, commencing with the Special Tax Commencement FY, to satisfy 2016-03-22 Agenda Packet Page 42 60297.00044\21522561.2 A-2 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 Assessor's Parcel Number. “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 for purposes of identification. “Assigned Special Tax Obligation” means for each Assessor’s Parcel, the amount determined in accordance with Section 3.B below. “Building Permit” means a building permit issued by the City for construction of a Residential Unit or Non-Residential Property located within CFD No. 17-I. “Building Square Footage” means all of the square footage of usable area within the perimeter of a residential 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 approval granted by the City, or other applicable government entity, that authorizes the actual occupancy of a Residential Unit for 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 calculating the Backup Special Tax. “CFD No. 17-I” means the City of Chula Vista Community Facilities District No. 17-I (Western Chula Vista DIF Financing). “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 have been deferred on such Assessor’s Parcel since Building Permit issuance as determined in accordance with Section 3.C below. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. 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 Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property. 2016-03-22 Agenda Packet Page 43 60297.00044\21522561.2 A-3 “DIF Deferral Agreement” means, as to an Assessor’s Parcel, the Agreement for Deferral of Development Impact Fees by and between the owner of such Assessor’s Parcel and the City. “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 agreement as specified therein. “Exempt Property” means for each Fiscal Year, 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 adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Initial Interest Accrual Date” shall mean, as to any Assessor’s Parcel of Developed Property, the date on which the Certificate of Occupancy for such Assessor’s Parcel is issued. “Initial Accrued Interest Obligation FY” shall mean, as to any Assessor’s Parcel of Developed Property, the Fiscal Year in which the Initial Interest Accrual Date for such Assessor’s Parcel falls. “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 building permit has been issued for the purpose of constructing one or more non-residential structures or facilities. “Original Parcel” means an Assessor’s Parcel within the boundaries of CFD No. 17-I that was assigned a Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the prior Fiscal Year but has been subsequently subdivided into Successor Parcels for the current Fiscal Year. “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. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 17-I owned in fee by a property owner association, including any master or sub-association. “Public Property” means any property within the boundaries of CFD No. 17-I, which is owned by, or irrevocably 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. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. 2016-03-22 Agenda Packet Page 44 60297.00044\21522561.2 A-4 “Special Tax” means any special tax levied within CFD No. 17-I pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Commencement FY” shall mean, as to each Assessor’s Parcel classified as Developed Property, the Fiscal Year falling 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 Fiscal Year commencing on July 1 of nineteenth (19th) Fiscal Year following the Special Tax Commencement FY. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Developed Property to pay the Special Tax for the remaining term of the Special Tax applicable to such Assessor’s 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, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2016-17, 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 The Maximum Special Tax Obligation applicable to an Assessor's Parcel subject to a DIF Deferral Agreement in the Initial Fiscal Year applicable to such Assessor’s Parcel shall be determined pursuant to Table 1 below. Table 1 Initial Fiscal Year Maximum Special Tax Obligation Assessor’s Parcel No. Maximum Special Tax Obligation 618-010-17 $1,600,000 Commencing on July 1 of the Fiscal Year following the Initial Interest Accrual Date, the Maximum Special Tax Obligation for such Assessor’s Parcel shall increase on July 1 of each Fiscal Year by an amount equal to two percent (2%) of the Maximum Special Tax Obligation in effect for the prior Fiscal Year. 2016-03-22 Agenda Packet Page 45 60297.00044\21522561.2 A-5 B. Assigned Special Tax Obligation On July 1 of each Fiscal Year commencing the Special Tax Commencement FY, the CFD Administrator shall determine the Assigned Special Tax Obligation for that Fiscal Year. The Assigned Special Tax Obligation in any given Fiscal Year commencing the Special Tax Commencement FY shall be the sum of the Deferred DIF Obligation plus the Accrued Interest Obligation. If for any Fiscal Year the 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 Property shall 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 included in the DIF Fee Obligation 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 Fiscal Year applicable to an Assessor’s Parcel of Developed Property shall be equal to the Deferred DIF Obligation in the prior Fiscal Year less any Annual Special Tax for Facilities payments made in the prior Fiscal Year. 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 Fiscal Year 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 Fiscal Year 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 Fiscal Year multiplied 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 Fiscal Year and the denominator of which is 365. The Accrued Interest Obligation for each subsequent Fiscal Year prior to the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation in the prior Fiscal Year plus two percent (2%) of the Deferred DIF Obligation as of July 1 of the prior Fiscal Year. The Accrued Interest Obligation in the Special Tax Commencement FY and each subsequent Fiscal Year applicable to an Assessor’s Parcel classified as Developed Property shall be equal to 2016-03-22 Agenda Packet Page 46 60297.00044\21522561.2 A-6 the Accrued Interest Obligation as of July 1 of the prior Fiscal Year less any Annual Special Tax for Accrued Interest payments made in the prior Fiscal Year. 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 Fiscal Year commencing 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 Fiscal Year commencing 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 in Table 2 below that corresponds with such Fiscal Year. In each subsequent Fiscal Year, 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 Fiscal Year commencing 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 in Table 2 below that corresponds with such Fiscal Year. In each subsequent Fiscal Year, 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 Fiscal Year commencing the Special Tax Commencement FY shall be equal to the Deferred DIF Obligation on July 1 of such Fiscal Year times the Current Interest Rate in Table 2 below that corresponds with such Fiscal Year. 2016-03-22 Agenda Packet Page 47 60297.00044\21522561.2 A-7 Table 2 Amortization Table Fiscal Year Repayment Rate Current Interest Rate Initial Accrued Interest Obligation FY through the Fiscal Year preceding the Special Tax Commencement FY 0% 0% Special Tax Commencement FY through the Special Tax Final FY 5% 2% 4. METHOD OF APPORTIONMENT Commencing with the Special Tax Commencement FY and for each following Fiscal Year, 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 Fiscal Year will 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 Fiscal Year will 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 Fiscal Year will be considered Original Parcels in the following Fiscal Year. 2016-03-22 Agenda Packet Page 48 60297.00044\21522561.2 A-8 Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 17-I by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 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 delinquency as 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: 2016-03-22 Agenda Packet Page 49 60297.00044\21522561.2 A-9 Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Deferred 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 prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 17-I, and 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”). 5. The Prepayment Amount shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 3 shall be retained by CFD No. 17-I. 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 suitable notice 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 which a 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 = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 6.A 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 2016-03-22 Agenda Packet Page 50 60297.00044\21522561.2 A-10 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) Fiscal Years commencing with Special Tax Commencement FY, provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all CFD No. 17-I obligations have been satisfied. 8. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, or (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, and (v) Assessor’s Parcels of Developed Property classified as Non-Residential Property as determined reasonably by the CFD Administrator. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of Section 8 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, 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 Fiscal Year prior 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 2016-03-22 Agenda Packet Page 51 60297.00044\21522561.2 A-11 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. 2016-03-22 Agenda Packet Page 52 City of Chula Vista Staff Report File#:16-0072, Item#: 2. HOUSING ELEMENT 2015 ANNUAL PROGRESS REPORT ThereportprovidesinformationontheCity’shousingactivitiesin2015,includingprogressinmeeting theregionalhousingneed;theHousingElement’seffectivenessinattainingthecommunity’shousing goalsandobjectives;andprogresstowardmitigatinggovernmentalconstraintsidentifiedinthe Housing Element. RECOMMENDED ACTION Council accept the report. SUMMARY TheCityofChulaVistaisrequiredtoprepareanAnnualProgressReport(Report)onthe implementationoftheCity’sHousingElement.CaliforniaGovernmentCodeSection65400requires thereporttoincludethefollowing:(1)progressinmeetingtheRegionalHousingNeed;(2)the effectivenessoftheHousingElementintheattainmentofthecommunity’shousinggoalsand objectives;and(3)progresstowardmitigatinggovernmentalconstraintsidentifiedintheHousing Element.ThisReportprovidesdetailedinformationregardingthehousingactivitiesoftheCityof Chula Vista from January 1, 2015 through December 31, 2015. 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 Noactionisrequired.TheHousingAdvisoryCommissionwillbeprovidedwithasummaryofthe Report at their next meeting. DISCUSSION AdoptedonApril23,2013andacceptedbytheCaliforniaDepartmentofHousingandCommunity Development(StateHCD)inJune2013,theCityofChulaVista’s2013-2020HousingElement addressestheadequatehousingneedsandopportunitiesforpresentandfutureChulaVista residents.Eachyear,theCitymustsubmittoStateHCDasummaryofitsprogressinimplementing City of Chula Vista Printed on 3/17/2016Page 1 of 2 powered by Legistar™2016-03-22 Agenda Packet Page 53 File#:16-0072, Item#: 2. residents.Eachyear,theCitymustsubmittoStateHCDasummaryofitsprogressinimplementing thepolicyandactionprogramsoutlinedwithintheHousingElementbasedonthespecifiedgoalsand objectives.TheChulaVistaHousingElement2015AnnualProgressReport,includedasAttachment 1(ExecutiveSummary)andAttachment2(RequiredReportingForms),providesdetailedinformation regardingthehousingactivitiesoftheCityofChulaVistafromJanuary1,2015throughDecember 31, 2015. DECISION-MAKER CONFLICT Staffhasreviewedthedecisioncontemplatedbythisactionandhasdeterminedthatitisnotsite- specificandconsequently,the500-footrulefoundinCaliforniaCodeofRegulationsTitle2,section 18702.2(a)(11),isnotapplicabletothisdecisionforpurposesofdeterminingadisqualifyingreal property-relatedfinancialconflictofinterestunderthePoliticalReformAct(Cal.Gov'tCode§87100, et seq.). Staffisnotindependentlyaware,andhasnotbeeninformedbyany[InsertappropriateLegislative Bodyname]member,ofanyotherfactthatmayconstituteabasisforadecisionmakerconflictof interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.The2015Housing Elementupdateengagedthecommunityinordertoestablishasevenyearstrategyofhousing policiesandprogramsfortheenhancementandpreservationofthecommunity’scharacter, expansionofhousingopportunitiesfortheCity’svariouseconomicsegments,andtoguidelocal decisionmakingrelatedtohousing.ThenatureoftheseactivitiesisconsistentwiththeGoals, Strategies and Initiatives in a Connected Community. Strategy 5.1:Provide opportunities that enhance the community’s quality of life. Initiative 5.1.2:Provide services and programs responsive to residents’ priorities. CURRENT YEAR FISCAL IMPACT Allstafftimeandcoststopreparethisreportwereincludedintheadoptedfiscalyear2016-2017 budget. No additional appropriations are required. ONGOING FISCAL IMPACT There are no ongoing fiscal impacts related to this item. ATTACHMENTS 1.Executive Summary 2.Reporting Forms Staff Contact:Stacey Kurz, Senior Project Coordinator City of Chula Vista Printed on 3/17/2016Page 2 of 2 powered by Legistar™2016-03-22 Agenda Packet Page 54 2015Housing Element –Executive Summary Page iof i ATTACHMENT 1 HOUSINGELEMENT2015ANNUALPROGRESSREPORT EXECUTIVE SUMMARY Some significant facts about affordable housing efforts during the 2015calendaryear (January 1, 2015 –December 31, 2015)include: New Development Lofts on Landis completedconstruction ofanew 33-unit mixed-use affordable development in Western Chula Vista. A total of two million in federal funds ($1,500,000 of HOME funds and $500,000 of NSP funds) was awarded to the project. Through aninclusionary agreement in Eastern Chula Vista (Millenia) and approval of the issuance of $41.1 million in tax exempt bonds to finance, a total of 123 low- income senior units and 87 family units, respectively known as Volta and Dueta, were entitled for development. Construction is expectedto start in 2016. Rental Activities Section 8, administrated by the County of San Diego, provided3,020vouchers to Chula Vista households. Codeenforcement staff inspected 1,407 rental units within 256 complexes through the City’s Rental Housing Programand through Title 25 inspected 94 units within ninemobilehome parks. Code enforcement staff also responded to 463residential complaints during 2015, for unpermitted construction on condos and single-family dwellings (rentals and owner- occupied). Homeowner/Homebuyer Activities Code enforcement staff registered 5,775properties in the Residential Abandoned Properties Program (RAPP) since the ordinance was adopted in August 2007. Onelow income household received down payment assistance through the First Time Homebuyer program. Preventing Homelessness The City was the lead agency in planning and coordinationof the fourthannual Project Connect event in the South Bay. The one day event connected over 125homeless or near homeless individualsand familieswith services and programs ranging from social service benefits, haircuts, medical attention and food services. 2016-03-22 Agenda Packet Page 55 - (9) Total of Moderate and Above Moderate from Table A3 ► ► ► ► ► ► 689 689 0 ANNUAL ELEMENT PROGRESS REPORT (10) Total by income units (Field 5) Table A ► ► ►00 Moderate- Income Above Moderate- Income Deed Restricted Units 75a Project Identifier (may be APN No., project name or address) Unit Category Tenure R=Renter O=Owner Affordability by Household Incomes Very Low- Income Low- Income Jurisdiction City of Chula Vista Reporting Period 01-Jan-15 31-Dec-15 1 2 Housing Development Information 3 4 Housing without Financial Assistance or Deed Restrictions 8 Total Units per Project Notebelowthenumber of units determined to be affordable withoutfinancial ordeed restrictions and attach an explanation how thejurisdiction determinedtheunitswere affordable. Refer to instructions.See Instructions See Instructions Assistance Programs for Each Development 5 6 Housing with Financial Assistance and/or Deed Restrictions Housing Element Implementation (CCR Title 25 §6202 ) Table A Annual Building Activity Report Very Low-, Low-, and Moderate-Income Units and Mixed-Income Multifamily Projects Est. # Infill Units 2016-03-22 Agenda Packet Page 56 - ANNUAL ELEMENT PROGRESS REPORT Jurisdiction City of Chula Vista Reporting Period 01-Jan-15 31-Dec-15 Housing Element Implementation (CCR Title 25 §6202 ) 0 0(5) Total Units by Income 0 (2) Preservation of Units At-Risk 00 (1) Rehabilitation Activity (3) Acquisition of Units Table A2 Please note: Units may only be credited to the table below when a jurisdiction has included a program it its housing element to rehabilitate, preserve or acquire units to accommodate a portion of its RHNA which meet the specific criteria as outlined in GC Section 65583.1(c)(1) TOTAL UNITS Activity Type Low- Income Extremely Low- Income* Affordability by Household Incomes Very Low- Income (4) The Description should adequately document how each unit complies with subsection (c )(7) of Government Code Section 65583.1 Annual Building Activity Report Summary - Units Rehabilitated, Preserved and Acquired pursuant to GC Section 65583.1(c)(1) Moderate- Income 2016-03-22 Agenda Packet Page 57 - ANNUAL ELEMENT PROGRESS REPORT Jurisdiction City of Chula Vista Reporting Period 01-Jan-15 31-Dec-15 Housing Element Implementation (CCR Title 25 §6202 ) Single Family No. of Units Permitted for Moderate Table A3 90 9 2 - 4 Units Second Unit5+ Units 590 Mobile Homes No. of Units Permitted for Above Moderate 689 TOTAL Annual Building Activity Report Summary for Above Moderate-Income Units 2016-03-22 Agenda Packet Page 58 50 2,318 56 0 81 0 21 39 11 24 72 9 1,097 Deed Restricted: Year 1 (2013) Kiku Garden, 5 NSP/HOME properties;Year 2 (2014) Lake Pointe, Tavera, Lofts on Landis, 536 Anita Street NOTE: In the 2013 HE Annual Progress Report the restricted units in Table A2 were not included in the RHNA count as permitted. Total Units ► ► ►740 10,335 Remaining Need for RHNA Period ► ► ► ► ► Total RHNA by COG. Enter allocation number:12,861 Above Moderate 4,956 597 1,032 689 Non-deed Restricted 2,186Moderate Deed Restricted 2,257 21 Year 2 Year 3 2,358Non-deed Restricted Low Deed Restricted 2,439 3,153 Year 5 Year 6 Year 7 Total Remaining RHNA by Income Level Very Low Deed Restricted 3,209 Income Level RHNA Allocation by Income Level Year 1 Non-deed Restricted 32 2018 2019 2020 Total Units to Date (all years)Year 8 2017 2,638 Table B Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability 2013 2014 2015 2016 Year 4 2016-03-22 Agenda Packet Page 59 Objective Priority Level Deadline in H.E.Status of Program Implementation Rehabilitation of Owner Occupied Housing: Continue implementation of the City’s Community Housing Improvement Program (CHIP), which provides favorable loans to low-income homeowners, and to include improvements for water conservation, energy efficiency, and lead based paint abatement. Assistance will be focused on a block by block basis to homeowners residing in the Northwest and Southwest Planning Areas with priority given to those single-family home owners of very low-income, special needs and/or senior households. The City will leverage its Home Upgrade, Carbon Downgrade (HUCD) program, which provides low interest loans to homeowners for energy efficiency and renewable energy upgrades, to better serve low-income and moderate-income residents. The City will also increase marketing and outreach efforts for the CHIP, especially in lower-income neighborhoods and mobile home parks, and integrate the HUCD program into the City’s First-Time Homebuyers Program as an optional financing tool. 1 2021 In 2014, staff evaluated the CHIP loan program to determine leveraging opportunities and potential revisions to increase program efficiency. Alterations were made and the program was relaunched in mid-2014. In 2015, 7 grants were provided to mobilehomeowners for minor repairs and rehabilitation (4 elderly / 3 disabled / 5 female head of household) and 1 single-family home (1 female head of household). During 2015, the City also expanded and supported the Property Assessed Clean Energy (PACE) programs, a private-public partnership, that financed over 600 projects for a total of more than $12 million in energy and water upgrades in the community in 2015. PACE allows residents to finance energy or water saving improvements through a tax assessment placed on their property. Staff worked closely with the MAAC Weatherization Program to prioritize and maximize rehabilitation between programs and assisted 6 households in Chula Vista. In addition we referred 4 low income households to the SDG&E’s Energy Saving Assistance Program and referred 6 middle income households to their Residential Direct Install program. During the 2013-2020 Housing Element period: 5 households were assisted with energy efficiency loans (1 female headed) and 13 CHIP loans issued (12 mobilehomes, 9 elderly, 4 disabled, 11 female headed). To respond to a changing climate and promote sustainability in the community, the City has adopted policies and programs to reduce the impacts of climate change through adaptation strategies. Many of these strategies, such as designing more energy-efficient buildings, also help to mitigate climate change by reducing greenhouse gas emissions. To support the City of Chula Vista’s Climate Action Plan and its related goals, the City supports the following design measures to improve climate change resilience: design natural ventilation and passive solar into residential buildings; limit internal heat by specifying high-efficiency lighting and equipment; modeling of energy performance with higher cooling design temperatures; avoid building in flood zones; elevate mechanical and electrical equipment to minimize damage and danger from flooding; specify Class A roofing to reduce risk of wildfire; and design buildings to maintain livable conditions in the event of loss of power or heating fuel, or shortages of water. 2 2021 During 2015, staff further incorporated resiliency to climate change into City operations through the draft Multi-Jurisdictional Hazard Mitigation Plan. Specifically, two climate-related hazards – drought and extreme heat – were added and evaluated in the planning document and actions to mitigate those hazards’ risks were identified. The PACE program, reference Section 1.1.1, provides residents and businesses with financing for energy and water upgrades, which improve their resiliency. 1.1.2 Encourage Climate Resilient Design Techniques Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Policy H1.1 - Facilitate rehabilitation of the City's existing housing stock to correct housing deficiencies and increase the useful life and sustainability of existing housing. 1.1.1 Rehabilitation of Owner Occupied Housing Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program 2016-03-22 Agenda Packet Page 60 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Support a program focusing financial resources and efforts that improve the conditions and appearances of neighborhoods. This on- going program will target specific low-and moderate-income neighborhoods within Western Chula Vista that can be leveraged with other public and private investments. 2 As resources are available In 2013, the City completed infrastructure improvements to the Castlepark Area with $9.5 million HUD Section 108 Loan and $800,000 of Community Development Block Grant funds. A total of 11 streets were improved by the installation of new curbs, gutter, sidewalks, streets and lighting. In addition in 2013 the city completed approximately 24 curb cuts in low/moderate income census tracts using CDBG funds. The 13th Annual Beautify Chula Vista Day event (funded by a California Redemption Value grant) was held Saturday, Oct 10, 2015. Over 700 volunteers spanned out across Rice Canyon at Discovery Park and Otay Recreation neighborhood areas, where they removed litter and graffiti, pulled invasive plants, and planted native plants. A combined total of 5,555 trash and 8,765 Recyclables and Greenery were collected. As part of a comprehensive neighborhood revitalization strategy, the City seeks to provide financial assistance to private property owners of existing and deteriorating multifamily rental housing within Northwest and Southwest planning areas and requiring the property owner to set aside a number of housing units for lower income households at affordable rents. Efforts will be made to target properties in such areas where privately initiated improvements in other neighborhood developments may be generated. 1 As resources are available The City continues to meet with developers as contacted regarding the inclusion of affordable housing units into existing multifamily housing. 1.1.2 Neighborhood Revitalization (Note: Program numbering duplicative in HE) 1.1.3 Rental Housing Rehabilitation 2016-03-22 Agenda Packet Page 61 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program As part of a comprehensive neighborhood revitalization strategy, the City Seeks to acquire and rehabilitate existing rental housing throughout the Northwest and Southwest planning areas of the City and set aside a number of the housing units for very low-income and/or special needs households at affordable rents. 1 As resources are available In 2013, the Housing Authority and City Council approved the issuance of $8 million in tax exempt bonds to acquire and rehabilitate 100 (99 units are income restricted with one on- site manager's unit) apartments at Kiku Gardens (aka Garden Villas) for very-low and low- income households and restricted for a period of 55 years. In addition, the City acquired and rehabilitated a total of five properties (three in Western Chula Vista and two in Eastern Chula Vista) utilizing HOME and NSP funds. Two of the units will be restricted for special needs and extremely low-income households, while three will be restricted for low-income households. Additionally, in 2012, the Housing Authority approved the issuance of $21 million of tax exempt bonds for the interior renovations and systems upgrades of 184 apartments at Congregational Towers. The complex will continue to serve low-income seniors at 60 percent AMI for a term of 55 years. Renovations began in 2013 and are expected to be completed in late 2014/early 2015. During the 2013-2020 Housing Element period: 315 units were secured for long-term affordable rentals, 103 in Western Chula Vista and 212 in Eastern Chula Vista. Support applications for available Federal or State funding to reduce housing related environmental hazards, including lead hazard control, building structural safety, electrical safety, and fire protection to address multiple childhood diseases and injuries in the home, such as the Healthy Homes Initiative. 2 2021 Due to the City’s budgetary reductions, funding levels, priority needs and scoring criteria, the City did not respond to the U.S. Department of HUD NOFA’s for its Healthy Homes and Lead Hazard Control Programs. In 2013, City staff applied for and received a SANDAG Smart Growth Planning Grant in the amount of $100,000 for the development of our Healthy Communities program. During 2015 amendments were made to the General Plan to incorporate health throughout the document and a Complete Streets policy was adopted. In addition, on January 5, 2016 the first Healthy Chula Vista Action Plan was adopted establishing over 66 strategies for healthy policy, programs and partnerships. Provide for the continuance of a multifamily inspection program that evaluates conditions of rental housing complexes of three or more units and reports violations to the City’s Code Enforcement Division regarding current health and safety codes. The City will follow up on all reports of violations to ensure the correction of any identified deficiencies. 1 2021 In 2015, the City's Code Enforcement staff inspected 1,407 rental units within 256 complexes through the City's Rental Housing Program. During the 2013-2020 Housing Element period: 2,949 rental units within 618 complexes. 1.2.1 Multifamily Housing Inspection Policy H1.2 - Eliminate, to the greatest extent feasible, overcrowded, unsafe, and unsanitary housing conditions through the enforcement of building, safety, and housing codes. 1.1.5 Funding for Housing Related Environmental Hazard Control 1.1.4 Rental Housing Acquisition and Rehabilitation 2016-03-22 Agenda Packet Page 62 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Provide for the continued systematic inspection of mobilehome and trailer park communities for compliance with Title 25 of the California Code of Regulations to promote safe and sanitary housing and neighborhoods. 1 2021 In 2015, the City's Code Enforcement staff inspected 94 mobilehome/trailer units through the City's Title 25 program within nine parks. During the 2013-2020 Housing Element period: 332 mobilehome/trailer units. Continue Code Enforcement activities that proactively monitor housing and neighborhood conditions for adherence to minimum standards of habitability and appearance by responding to service requests from concerned citizens. 1 2021 Due to the growing foreclosure issue in Chula Vista, the City adopted a Residential Abandoned Properties Program (RAPP) ordinance in August 2007, which requires mortgage lenders to inspect defaulted properties to confirm that they are occupied. If a property is found to be vacant, the program requires that the lender exercise the abandonment clause within their mortgage contract, register the property with the City and immediately begin to secure and maintain the property to the neighborhood standard. As of December 31, 2015 a total of 5,775 registries were recorded since program inception. Additionally, Code Enforcement responded to 463 residential complaints during 2015. This includes general complaints and unpermitted construction on condos and single-family dwellings (renter and owner-occupied). During the 2013-2020 Housing Element period: 1,311 residential code cases. Promote the inclusion of state-of-the art water conservation practices in existing and new development projects where proven to be safe and environmentally sound through targeted policies and incentives in partnership with the local utilities. These practices can include, but are not limited to, low-flow plumbing fixtures, and EPA WaterSense-labeled appliances. 1 2021 During 2015, residential and commercial buildings met the Green Building Standard, which requires a 20% reduction in potable water use (compared to national standards) in new construction and major renovation projects and met the requirement for laundry water re-use pre-plumbing. Through its SDG&E Local Government Partnership, the City also distributed water-savings devices to existing residences and businesses in 2015. Finally, the new PACE program, as mentioned in Section 1.1.2, helped fund indoor and outdoor water conservation measures in existing buildings. Objective H2 - Promote efficient use of water and energy through sustainable design, adopted standards, and incentives to conserve limited resources and reduce long-term operational costs of housing, consistent with the California Long- Term Energy Efficiency Strategic Plan, the most recent Energy Code including City-specific amendments, Green Building Standards, and other related City ordinances. 1.2.2 Mobilehome Inspection Program Policy H2.1 - Encourage the conservation, efficient use, and appropriate reuse of water by residents. 2.1.1 Water Conservation Practices 1.2.3 Code Enforcement Activities 2016-03-22 Agenda Packet Page 63 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Promote the use of low water demand (WaterSmart) landscaping, which incorporates high efficiency irrigation and drought-tolerant plant materials in existing and new development. When developing landscape designs, encourage the minimal use of turf areas and the implementation of the City’s Shade Tree Policy, which requires a certain percentage of shade coverage within parking lots and along streets excluding alleyways. Water reuse techniques, such as graywater systems, rain water harvesting, and recycled water, to meet outdoor landscaping water demand should be encouraged. 1 2021 The City continues to promote low water demand landscaping through its revised Landscape Water Conservation Ordinance (large parcels) and Outdoor WaterSmart Guidelines & Checklist (small parcels), which both guide landscaping projects towards high water use efficiency. Continue to develop, update, and enforce water-related building codes and development requirements such as the City’s Landscape Water Conservation Ordinance, Green Building Standard, Design Manual, and Water Conservation Plan Guidelines (or their equivalent) as part of the residential development review and approval process. Developers shall provide homebuyers with an “Outdoor WaterSmart Package” at occupancy, which also includes information about the City of Chula Vista NatureScape program. 1 2021 The City continues to promote low water demand landscaping through its revised Landscape Water Conservation Ordinance (large parcels) and Outdoor WaterSmart Guidelines & Checklist (small parcels), which both guide landscaping projects towards high water use efficiency. The City continues to require Water Conservation Plans for large developments (over 50 dwelling units or equivalent) which emphasize both indoor and outdoor water use efficiency and homes to be pre-plumed for water re-use systems from cloths washers. Promote water conservation, efficiency, and reuse in the community by providing appropriately targeted public education and by offering free technical assistance in partnership with the local water districts. 1 2021 The City continues to work with the Sweetwater and Otay Water Districts in implementing the Chula Vista NatureScape program (focused on sustainable landscaping practices), hosting community educational workshops, and distributing general water efficiency educational materials. In addition, the City provides free home and business water evaluations and has distributed water-saving devices over the last year. Maximize energy efficiency and integrate renewable energy into existing and new development projects through appropriate site and building design, energy efficient materials and appliances, onsite renewable energy systems, and home energy performance ratings by developing targeted policies consistent with the California Long- Term Energy Efficiency Strategic Plan and by offering incentives in coordination with San Diego Gas & Electric and other regional partners. 1 2021 The City encourages energy efficiency, renewable energy, and other green building technologies and design principles in new and existing developments. During 2015, the City provided over 1, 008 no-cost home and business energy evaluations, which led to over 86% of participants implementing a recommended energy-saving behavior or retrofit. See comments Section 1.1.1. Policy H2.2 - Encourage efficient and renewable energy use of residents. 2.1.2 Landscaping-Specific Water Conservation Strategies 2.1.3 New Development - Specific Water Conservation 2.2.1 General Energy Efficiency and Renewable Energy Strategies 2.1.4 Public Education for Water Conservation 2016-03-22 Agenda Packet Page 64 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to develop, update, and enforce energy-related building codes and development requirements. Applicable codes and development requirements include, but are not limited to, the City’s Enhanced Energy Efficiency, Green Building (includes Cool Roof standards), and Solar Ready ordinances (or their equivalent) as part of the residential development review and approval process. 1 2021 Through Chula Vista’s Green Building Standard, new residential and commercial buildings met the required 15-20% higher energy efficiency standards. All new residential units in eastern Chula Vista (Climate Zone 10) were also built with “cool roofs,” which help save energy and reduce urban heat island impacts. New residential and commercial buildings were also required to be pre wired for solar PV & solar hot water. Facilitate progress towards the development of “Zero Net Energy” residential buildings, which have a net energy consumption of zero over a typical year as envisioned by the California Long-Term Energy Efficiency Strategic Plan. This progress will be accomplished by creating developer incentives (such as expedited permitting or reduced permit fees) and by leveraging state and federal housing funds administered by the City’s Housing Division. 1 2021 In 2015 the Center for Sustainable Energy held 19 trainings to promote “Zero Net Energy (ZNE)” building construction. Promote energy efficiency and renewable energy in the community by providing appropriately targeted public education and by offering free technical assistance in partnership with San Diego Gas & Electric. 1 2021 The City continues to provide energy-related materials and services through free energy evaluations, community outreach events, the Library Energy Lounges, and the South Bay Energy Roadshow trailer. In 2015, the City continued collaborating with the Department of Education’s Promise Neighborhood program by training the program’s “Promotores” and establishing energy information kiosks in the program’s Parent Resource Centers. Finally, the City continues to sponsor a “Sustainability Desk” at the building permit counter to provide technical assistance on energy conservation and other green building topics. Encourage transit-oriented housing consistent with SANDAG’s Sustainable Communities Strategy (SB 375). 2.2.4 Public Education for Energy Conservation Objective H 3- Encourage planning practices that create sustainable communities and reduce greenhouse gas emissions consistent with the 2050 Regional Transportation Plan’s Sustainable Communities Strategy. 2.2.2 New Development - Specific Energy Conservation Requirements 2.2.3. Zero Net Energy Home Target 2016-03-22 Agenda Packet Page 65 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program The City’s General Plan, including this 2013 – 2020 Housing Element, promote a land use pattern that is anticipated to reduce Vehicle Miles Traveled (VMT) and result in the region meeting or exceeding the targets established by the California Air Resources Board (CARB). The key component of the 2013 – 2020 Housing Element will be to promote the integration of land use planning and transit, whereby: the City encourages the use of incentives, when available, for mixed-use development, which includes housing, retail, and office space, at transit nodes and other high-intensity locations as appropriate. The City supports implementation of the San Diego Association of Governments (SANDAG)’s Sustainable Communities Strategy (SCS), including the adopted Regional Housing Needs Assessment (RHNA) Plan, which includes the following: increasing the housing supply and the mix of housing types, tenure, and affordability in an equitable manner, promote infill development and socioeconomic equity, the protection of environmental and agricultural resources, and the encouragement of efficient development patterns, promote an improved intraregional relationship between jobs and housing, allocate a lower proportion of housing need to an income category when there is a disproportionately high share of households in that income category, as compared with the most recent decennial United States census, work with SANDAG to update the Smart Growth Concept Map to reflect the changes to Chula Vista’s land use plans contained in the 2050 Regional Growth Forecast and to the regional transportation network. Encourage joint development opportunities to promote the construction of sustainable housing and mixed-use projects at existing and planned transit stations. 1 2021 In 2014, City staff participated in SANDAG regional workshops regarding the incorporation of Transportation Demand Management (TDM) into the Development Process. TDM refers to programs and strategies that manage and reduce traffic congestion during peak travel times. Two Specific Planning Area's (SPA's), Millennia and Village 8 East, will include TDM. During 2013-2014 several western Chula Vista infill projects were entitled that incorporate mixed use development. The City of Chula Vista’s Sustainable Communities Program (SCP) seeks to promote energy efficiency and reduce green house gas emissions in the planning and building process and in neighborhood design. In 2013, the SCP developed a modeling tool for energy efficient community and site planning standards. The model is based on LEED’s Neighborhood Development rating system, which integrates the principles of smart growth, New Urbanism and green building and encourages better neighborhood planning and development by assisting developers to select the appropriate mix of energy efficient features to maximize their site’s sustainability score. This evaluation tool will be available on the City’s website. 3.1.1 Integration of Land Use Planning and Transit Objective H4 - As required by State law, preserve existing affordable housing opportunities, when feasible and practical, to maintain an adequate supply of affordable housing. Policy H4.1 - Preserve publicly assisted rental housing “at-risk” of converting to market rents 2016-03-22 Agenda Packet Page 66 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Proactively work with property owner(s) of "at-risk" assisted housing developments whose affordability restriction are due to expire by 2020, as identified within Appendix A of this Element, and affordable housing developers to evaluate the viability of continuing the affordability of such housing through owner participation, public subsidies, or participation, public subsidies or participation by affordable housing developers. 1 2012-2016 The City continues to work with those property owners who own affordable housing where recorded covenants are nearing expiration. Since 2013, both Congregational Tower and Kiku Gardens (Garden Villas) were refinanced and rehabilitated, totaling 284 units that resulted in an additional 55 years of affordability. See comments in 1.1.4. In 2015, the City continued to monitor those projects with expiring affordability restrictions. Two projects terminated their affordable covenants and provided residents with resources. Eucalyptus Grove and Eucalyptus Parkview completed HCD’s notification procedures per State Preservation Noticing Requirements. http://www.hcd.ca.gov/housing-policy-development/housing-resource- center/technical/presrv/ Comply with State Law regarding the monitoring and reporting of housing units occupied by low-or moderate-income households demolished within the Coastal Zone. 1 Annually In 2015, no units occupied by low or moderate-income households in the Coastal Zone were lost or demolished. Where conversion or demolition of housing units in the Coastal Zone is occupied by low-or moderate income households is proposed, replacement of such housing will be completed in accordance with State Law and the City's adopted Local Coastal Plan. 1 2021 See comments in 4.2.1. Policy H5.1 - Balanced Communities-Affordable Housing: Require newly constructed residential developments to provide a portion of their development affordable to low-and moderate-income households. 4.2.2 Replacement Housing 4.1.1 Expiring Affordability Restrictions Policy H4.2 - Monitor housing located in the Coastal Zone occupied by low-and moderate-income households and mitigate the loss of housing in these areas. Objective H5 - Encourage the provision of a wide range of housing choices and equitable distribution by location, type of unit, and price level, in particular the establishment of permanent affordable housing for low-and moderate income households. 4.2.1 Monitoring of Units Lost 2016-03-22 Agenda Packet Page 67 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to implement the Balanced Communities-Affordable Housing Policy first adopted by the City’s Housing Element in 1981 and any implementing guidelines as adopted and updated. For all new residential projects consisting of 50 or more dwelling units,10 percent of the residential units within the development (“on-site”) shall be affordable to low and moderate income households (5 percent low-income and 5 percent moderate-income). 1 2021 The City continues to implement this objective through the Affordable Housing Program requiring new residential developments of 50 units or more to provide 10% of the housing for low and moderate income households. In September 2015, the Balanced Communities Policy Guidelines were adopted to address market conditions and to ensure the Policy is meeting intended goals to provide affordable housing opportunities throughout the community. In 2014 through the Inclusionary Housing Program building permits were issued for two developments with inclusionary agreements in Eastern Chula Vista. 11 moderate-income units will be built at Lake Pointe in the Eastlake III community and 10 moderate-income units at Monarch @ Tavera in Otay Ranch Village 2. In-lieu of low income units the developers are contributing $1,751,502 to the Inclusionary Housing Fund toward the production of future affordable housing. In February 2015 the Housing Authority and the City approved $5 million in financial assistance for the new construction of a 123 unit senior and 87 unit family rental project for very low and low income households in the Millenia master planned community within Eastern Chula Vista, respective known as Volta and Duetta. Subsequently in October 2015, the Housing Authority and City Council took those necessary actions for the proposed issuance of $41.1 million in tax exempt bonds to finance the majority of the development and construction costs. The financial closing of Volta and Duetta is expected in March 2016, with construction to begin in the Spring 2016. During the 2013-2020 cycle: 21 moderate income units in Eastern Chula Vista and $1,751,502 in-lieu fees. Continue assistance to low-income households in purchasing their first home through the City’s First Time Homebuyer Down Payment and Closing Cost Assistance Program. Consider amendments, as necessary, to the Program to adequately reflect real estate market conditions. 1 2014: Continue as funds are available During 2014, the City provided financial assistance to one first-time homebuyer. The City also extended its contract with SpringBoard CDFI (formerly known as Community HousingWorks Realty and Lending) to administer the City’s First Time Homebuyer program. In addition in 2014, the City was awarded $1,000,000 in CalHome funds to assist first time homebuyers. The City continues to market this program to eligible households. During the 2013-2020 Housing Element period: 5 households were assisted. 5.1.1 Affordable Housing ("Inclusionary") Policy 5.2.1 First Time Homebuyer Assistance Policy H5.2 - Support efforts to increase homeownership rates, particularly in the Northwest and Southwest planning areas, meeting or exceeding the regional average as a means to build individual wealth and stabilize existing residential neighborhoods. 2016-03-22 Agenda Packet Page 68 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to participate with the County of San Diego and other cities to issue and renew Mortgage Credit Certificates (MCC) to qualified first-time low-and moderate-income homebuyers. First-time homebuyers are referred by the Development Services Department to the administrating agency. 1 2021 The MCC program is now administered by CalHFA and the City’s non-profit partner, SpringBoard CDFI( formerly Community HousingWorks) is authorized the provide MCC's to eligible households in the San Diego Region, including Chula Vista. In 2013, four households became new homeowners in Chula Vista utilizing the MCC program which entitled them to take a federal income tax credit of fifteen to twenty percent (15% to 20%) of the annual interest they pay on their home mortgage and increasing their qualified maximum loan amount. No MCC's were issued in Chula Vista during 2014 while the program was transitioning from the current provider County of San Diego and AHA Housing to Cal-HFA. The City no longer has access to the total number of MCC's issued within its jurisdiction. Support and encourage developers, lenders and social service organizations to provide educational programs, loan counseling, and materials for homeowners and potential homeowners on home maintenance, improvement, and financial management. The purpose of these educational programs will be to help first-time homebuyers prepare for the purchase of a home and to understand the importance of maintenance, equity appreciation, and personal budgeting to minimize foreclosure rates. 1 2021 The City continues to participate with Community HousingWorks to offer bilingual homebuyer education (HBE) and foreclosure counseling. In 2014, no HBE classes were held in Chula Vista, and 40 Chula Vista residents graduated from HBE. Four Chula Vista residents received pre-purchase counseling in 2014 and five residents purchased in Chula Vista through Community HousingWorks programs. Community HousingWorks also offers foreclosure prevention counseling and 18 Chula Vista residents were seen in 2014. In addition, the City partnered with the Housing Opportunities Collaborative, Community HousingWorks, and Wells Fargo to host a Loan Modification and Refinancing event for existing homeowners in September 2013. Approximately, 33 homeowners attended the event, and as a result, 20 homeowners modified or refinanced their loans. During the 2013-2020 Housing Element period: 2 HBE classes held in Chula Vista, 69 HBE resident graduates, 6 households received pre-purchasing counseling, 46 households received foreclosure counseling. Support and encourage lenders, Development Services organizations and others to use non-traditional financial approaches to assist low-and moderate-income first-time homebuyers such as Individual Accounts and other emerging financial approaches. 2 As funds are available Staff will continue to support and seek non-traditional approaches as opportunities exist. See comments listed above for Programs 5.2.1 - 5.2.3. 5.2.2 Mortgage Credit Certificates (MCC) Policy H5.3 - Support mobilehome parks as an alternative housing opportunity 5.2.3 Homebuyer Education and Counseling 5.2.4 Support Private Financial Assistance Programs 2016-03-22 Agenda Packet Page 69 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to enforce CVMC Chapter 9.50 to protect mobilehome residents’ investment in their home while at the same time providing a reasonable return to the park owner in order to preserve this housing alternative. 1 2021 The City continues to monitor and enforce the Mobilehome Space Rent Review Ordinance. In August 2011, ordinance amendments provided temporary decontrol on change of ownership, in an effort to allow rents to be raised to market on a one-time basis. The amendments also included the establishment of an administrative fee to allow residents to retain rent control services as desired. The changes were updated in February 2012, with implementing guidelines to the fee and minor amendments in February 2013 to streamline administration and require adequate notification of residents. During the 2013-2020 cycle, the commission held 8 public meetings, and did not review any proposed rent increases. Promote the purchase of those mobilehome parks with a Mobilehome Park (MHP) zone designation by park residents, when a park becomes available for sale in accordance with CVMC Chapter 9.60 (Sale of a Mobilehome Park). Accordingly, resident organizations shall have a right to purchase a park listed for sale if the organization is able to reach an acceptable price and terms and conditions with the mobilehome park owner. Financial assistance that may be provided by the State, or other funding sources may be limited to income eligible residents and require affordable housing costs. 2 2021 No mobilehome/trailer parks were listed for sale in 2015. Continue to enforce CVMC Chapter 9.40 to protect the rights of residents as mobilehome/trailer parks are closed or converted to other uses. 1 2021 The City will continue to enforce CVMC 9.40 if and when a park is proposed for closure. Policy H6.1 - Support the coordination of existing and new regional and local efforts to provide housing and services for the homeless through a continuum of care model. Objective H6 - Promote the development of a variety of housing choices, coupled with appropriate services, to meet the needs of special population groups, including the homeless, those "at-risk" of becoming homeless, persons with disabilities, and seniors. 5.3.1 Mobilehome Space Rent Review 5.3.3 Mobilehome Park Conversion 5.3.2 Resident Ownership of Mobilehome Parks 2016-03-22 Agenda Packet Page 70 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to participate in regional planning efforts to address needs of the homeless, including the Regional Task Force on the Homeless and the South Bay Homeless Coalition. 1 2021 The City continues to participate in regional organizations focused on housing and other needs of the homeless or near homeless population. Such organizations include the South Bay Homeless Advocacy Coalition, Regional Continuum of Care Council of San Diego County, Local Emergency Food and Shelter Board, South Bay Homeless Advocacy Coalition, the Regional Task Force on the Homeless (RTF), and the FEMA and County of San Diego Hotel/Motel Voucher Program. In November 2015, the City was the lead agency in the planning and coordination of the fourth annual Homeless Project Connect event in the South Bay. The one-day event connected over 125 homeless individuals with services and programs ranging from social service benefits, haircuts, medical attention and food services. Continue to support regional funding efforts to develop new housing facilities for the homeless and maintain existing facilities and services, including the Regional Continuum of Care Council for San Diego County and its application for funding through the Federal Supportive Housing Program, local FEMA Board, County of San Diego Hotel/Motel Voucher Program and temporary winter shelters. 1 2021 South Bay Community Services (SBCS) is the primary service agency that provides homeless shelter and services in Chula Vista. SBCS operates four transitional living programs and the City has allocated annual CDBG funds to SBCS for youth and family support services, and housing services. The City also provides annual funding for the Rotational Shelter Network program to provide shelter to homeless at various congregational sites throughout the County, including Chula Vista. See comments in 6.1.1. Continue in-kind and financial assistance for existing and new emergency shelters and transitional housing facilities that serve the City by providing technical assistance, siting opportunities, grants, or low cost loans to operating agencies. 1 2021 See comments in 6.1.1. In 2014, the City continued to provide funding to South Bay Community Services (SBCS) to operate its short term shelter. SBCS received $62,777 of Emergency Solutions Grant funding in 2015 to serve 90 extremely low-income homeless individuals and families that meet HUD’s definition of homelessness. Over the last two years, the City has acquired 3 residential units that are used to provide housing for chronic homeless with mental health issues with wrap around services provided by the County of San Diego's Health and Human Services. The units are fully occupied. 6.1.2 Homeless & "At-Risk Homeless"-Regional Funding 6.1.3 Existing & New Emergency Shelters & Transitional Housing 6.1.1 Homeless & "At-Risk" Homeless-Regional Planning 2016-03-22 Agenda Packet Page 71 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Implement a homeless prevention program providing rent subsidies for those at-risk of becoming homeless 1 2021 In 2013, the City contracted with South Bay Community Services (SBCS) to administer the Emergency Solutions Grant (ESG) to assist those to rapidly become re-housed after experiencing a recent incident of homelessness. The contract was extended September 18, 2015 for an additional $78,998 to provide housing assistance to homeless households and individuals. During 2015 the Section 8 program administered by the County of San Diego issued 3,020 vouchers in Chula Vista, 1,098 to elderly and 347 to large families. 10,290 households remain on the waiting list at the end of 2015, the majority of those families (6,239). Distribute informational materials to provide contact information regarding basic needs, such as emergency food, shelter, and services for the homeless. Materials can be distributed on an as needed basis at public/civic center public counters and by City personal in regular contact with homeless or near homeless households. 2 2021 Staff continues to provide updated information on basic resources on the City's website and at the public counters. In September 2013, staff created a Community Resources guide, which provides local and regional contact information for services ranging from emergency shelter and food to legal assistance and health services. The Community Resources Guide, along with many other informational materials, are available at City's Development Services public counter. In addition, the City works closely with South Bay Community Services, the lead homelessness agency, to ensure that informational material is updated on a regular basis and made available to households seeking information and resources. See comments in 6.1.1. Continue to allow construction of new accessory secondary dwelling units in areas where the units do not compromise the neighborhood character, as defined in Section 19.58.022, Accessory Second Dwelling Units, of the Chula Vista Municipal Code as needed to facilitate and encourage development. 1 2021 In 2014 ten permits were issued for accessory second dwelling units. During the 2013-2020 Housing Element period: 16 permits. Support private programs for shared living that connect those with a home and are willing to share living accommodations with those that are seeking housing, particularly seniors, students, and single person households. The City can identify the programs offered in the community and assist in program outreach efforts for shared living programs through advertisements in the City's website and placement of program brochures in key community locations. 1 2021 City policies continue to support alternative housing types. The City has provided past financial support to Social Service providers offering shared housing services. In 2005, CDBG funding for these services was provided. However in 2006, the local social service agency that provided shared living referrals ceased providing this service. Evaluate the viability of co-housing where residents share common facilities (e.g., cooking facilities) and amendments to Title 19 of the Chula Vista Municipal Code and other documents, where appropriate, to facilitate its development. 2 2021 This program is identified as a Level 2 priority. Due to the City’s current budgetary reductions, review and amendments of the City’s Municipal Code are being completed on an as needed basis. Any proposal to provide co-housing will be evaluated and processed on a project-by-project basis. 6.1.4 Tenant Rental Assistance 6.2.2 Shared Living 6.2.3 Co-Housing Policy H6.2 - Encourage the development of alternative housing types in locations with easy access to goods, services, transportation, recreation and other appropriate services to accommodate the special needs of seniors, and persons with disabilities. 6.2.1 Second Dwelling Units 6.1.5 Information on Resources for Basic Needs 2016-03-22 Agenda Packet Page 72 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to maintain and implement California Title 24 provisions for the review and approval of residential developments.1 2021 In July 2012, the City adopted a Reasonable Accommodation Ordinance (Title 1 and Chapter 19.14 of CVMC) to establish a formal procedure to consider whether a land use development standard or regulation of the City's can be modified or exempted in order to allow an individual with a disability to occupy their home. Develop and consider for adoption Specific Plans for the Southwest Planning Areas in order to implement the housing-related land use policy General Plan Update of 2005. 1 2013-14 Subsequent to the adoption of the Palomar Gateway District Specific Plan and certification of the EIR on August 13, 2013, staff began working with property owners/developers to redevelop certain sites within the PGD area pursuant to the Specific Plan land use regulations and the EIR environmental determinations. Currently, there is a 21-unit residential project under construction at 778 Ada Street; the City is reviewing conceptual plans for the construction of a 42-unit condominium project at 1350 Industrial Boulevard; and an application is expected by March 2015 for review of plans for the construction of another 40-unit residential project at 745-765 Dorothy Street. It is expected that these two last projects will be fully entitled by the end of 2015 and built during 2016. During 2014, staff made significant progress on the Main Street Streetscape Master Plan process by finalizing the Concept Plan for the Corridor and conducting other tasks conducive to the completion of the Master Plan. The Concept Plan represents a conceptual framework for a “Complete Street” for the Main Street Corridor. A Complete street is a balanced, connected, safe, and convenient transportation network designed to serve all users regardless of their mode of transportation. The traffic analysis and report are expected to be completed by February of 2015, while the Master Plan is expected to be completed by the Summer 2015. Update Title 19 of the Chula Vista Municipal Code, to implement housing-related land use policy contained in the General Plan Update of 2005. 1 2021 Due to the City’s current budgetary reductions, review and amendments to Title 19 of the City’s Municipal Code are being completed on an as needed basis. In 2009, the City began to draft specific plans for the South West area of the City to implement the land use policy of the General Plan. The Palomar Gateway District Specific Plan was adopted by the City Council in 2013. See comments in 7.1.1 and 7.4.1. Objective H7 - Facilitate the creation, maintenance, preservation and conservation of affordable housing for lower and moderate-income households through comprehensive planning documents and processes, and the provision of financial assistance and other incentives. Policy H7.1 - Ensure Chula Vista’s plans and policies addressing housing, such as the Zoning Ordinance, Sectional Planning Area Plans, and Specific Plans, encourage a variety of housing product that responds to variations in income level, the changing livework patterns of residents and the needs of the City’s diverse population. 7.1.1 Specific Plans 7.1.2 Zoning 6.2.4 Accessible Housing Regulations 2016-03-22 Agenda Packet Page 73 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program The City will amend its Zoning Ordinance within one year of adoption of the Housing Element to address emergency shelters, and permit this use by right, without requiring a CUP, PUD or other discretional action within identified zones, consistent with Senate Bill 2 (Housing Accountability) enacted in 2007. The zones being considered are the General-Industrial (I-G) and/or Limited Industrial (I-R) zones and the Community Purpose Facility within the Planned Community (P-C) zone. 1 2013-14 Staff is currently updating the Zoning Ordinance to comply with Senate Bill 2. It is anticipated that the updates will be taken to the Planning Commission and Council for consideration in 2015, as a comprehensive package of zoning ordinance updates to comply with State Law. The Zoning Ordinance will be amended to specifically define transitional/supportive housing. Transitional housing, pursuant to Health and Safety Code Section 50675.2, and supportive housing, pursuant to Health and Safety Code 50675.14, will be permitted as a residential use in all residential uses and subject to the same development standards as the same type of housing units in the same zone consistent with Senate Bill 2 (Housing Accountability) enacted in 2007. 1 2013-14 Staff is currently updating the Zoning Ordinance to comply with Senate Bill 2. See comments in Section 7.1.3 above. The Zoning Ordinance does not contain specific provisions for SRO units. The City will amend the Zoning Ordinance to facilitate the provision of SRO's, consistent with the Assembly Bill 2634 (Housing for Extremely Low-Income Households) enacted in 2007. 1 2013-14 Staff is currently updating the Zoning Ordinance to comply with Assembly Bill 2634. See comments in Section 7.1.3 above. The Zoning Ordinance will be amended within one year of adoption of the Housing Element to comply with Section 17021.5 and 17021.6 of the State Health and Safety Code regarding employee housing. 1 2013-14 Staff is currently updating the Zoning Ordinance to comply with State Health and Safety Code. See comments in Section 7.1.3 above. Pursuant to Assembly Bill 162, amend the safety and conservation elements of the City's General Plan upon adoption of the City's Housing Element to include an analysis and policies regarding flood hazards and management. Upon the amendment of the safety and conservations elements, the City will review the adopted Housing Element to maintain internal consistency and amend the Element as may be necessary. 1 2013-14 The City's Environmental Element contains a policy related to flood hazard management, as well the City's Municipal Code. However, due to the City’s current work program budgets, review and amendments of the City’s General Plan elements are being completed on an as needed basis. 7.1.3 Emergency Shelters 7.1.7 Flood Hazard Policy H7.2 - Ensure the entitlement process and infrastructure levies do not affect the feasibility of affordable housing development. 7.1.6 Farmworker Housing 7.1.5 Single Room Occupancy (SRO) Units 7.1.4 Transitional and Supportive Housing 2016-03-22 Agenda Packet Page 74 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to implement priority processing of the necessary entitlements and plan checks to expedite the development process for residential developments, which do not require extensive Engineering or environmental review, with at least 15 percent of the units as affordable for very low-and low-income households. Update the expedite policy as may be necessary to encourage the development of affordable housing for lower income households. 1 2021 In 2009, the Affordable Housing Working Group looked at avenues to improve the development review process, including: fee waivers/deferrals, flexible development standards, and/or other mechanisms to provide incentives to projects meeting certain thresholds of affordability. The City’s "Development Process Streamlining Committee" evaluated impediments to the planning process including: entitlement processing, development fees, and regulatory issues. Affordable housing was specifically addressed by the Streamlining Committee, and is a permitted use for consideration of expedited processing, fee waivers, and flexible development standards. In 2013, an affordable housing development was able to utilize the expedited processing services for a 33 unit rental project, which will be made available to extremely low and low- income households. This project will be restricted to households at 30-60 AMI, and restricted for a period of 55 years. The project pulled building permits in 2014 and completed construction in December 2015. Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities. Continue to consider subsidizing, waiving, or deferring fees for affordable units for very low- and low-income households on a case- by-case basis. Requests are evaluated based upon the development's effectiveness and efficiency in achieving the City's underserved housing needs, particularly extremely low and special needs households as allowed by the City's Municipal Code. 2 As requested See comments in 7.2.1. The City of Chula Vista will provide a copy of the adopted Housing Element to the Otay Water District and Sweetwater Authority within 30 days of adoption. The City will also continue with the District to ensure affordable housing developments receive priority water service provision. 1 2013-14; Within 30 days of adoption of the Housing Element The City provided a copy of the adopted Housing Element to the Otay Water District and Sweetwater Authority. 7.2.1 Priority Processing 7.2.2 Development Fees Policy H7.3 - Pursue opportunities to expand financial resources assisting housing development for lower and moderate-income households. 7.2.3 Water/Sewer 2016-03-22 Agenda Packet Page 75 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to utilize the eCivis software program to proactively pursue available Federal or State funding to increase, preserve and enhance housing affordable to low-income households 1 2021 The City of Chula Vista was invited by the U.S. Department of Housing and Urban Development (HUD) to apply for a Promise Zone designation in November 2013. The Promise Zones initiative primarily focuses on revitalizing areas that are experiencing high poverty rates across the Country by attracting private investment, improving affordable housing, improving educational opportunities, creating jobs, reducing serious and violent crime, and assisting local leaders in navigating federal programs and cutting through red tape. The City of Chula Vista did not receive the Promise Zone designation, however, Staff continues to search for, and apply for affordable housing grant opportunities. In 2014 the City of Chula Vista was successful in a grant application for CalHOME funds towards the creation of first-time homebuyer opportunities. See comments in 5.2.1. The City has adopted affordable housing incentives regulations to facilitate the development of affordable housing for very low, low, and moderate income households and seniors. This policy provides for a density bonus, incentives and waivers of development standards for housing providing the required number of units for the income qualified households and seniors. Continue to provide incentives for the development of affordable housing and housing for seniors through implementation of these regulations. Market incentives to housing developers via the City's website and the Development Services front counters. 1 2021 See comments in 4.1.2. The City of Chula Vista's Density Bonus Ordinance was approved by the City Council on December 11, 2012. The ordinance provides clarity and outlines the State requirements for affordable housing development. One developer proposed a project utilizing Density Bonus incentives in 2014. It is anticipated that an official application for the project would be submitted in mid 2015. Evaluate the viability of providing affordable housing on City owned property that becomes available or is deemed surplus property.2 2021 Staff has evaluated its existing inventory of City and/or Agency owned land. The City has limited ownership of land, of which very little is currently suitable for residential development. As opportunities of surplus land become available, the City will continue to evaluate the suitability of such land for residential purposes and the viability for affordable housing. Evaluate the appropriateness of allowing affordable housing within public or quasi-public zoning designations, when appropriate.2 As opportunities arise See comments in 7.4.1. An incentive considered under the Affordable Housing Working Group was to allow affordable housing development in zones designated for other uses. Policy H8.1 - Ensure equal housing opportunities to prevent housing discrimination in the local housing market. 7.4.2 Public Property 7.4.3 Affordable Housing in Public or Quasi- Public Zones Goal H 8 - Ensure the availability of housing opportunities to persons regardless of race, color, ancestry, national origin, religion, sex, disability, marital status, and familial status, source of income or sexual orientation. Policy H7.4 - Provide financial assistance and incentives for the preservation and creation of affordable housing to address the underserved financial needs of very low-and low-income households throughout the City. 7.3.1 Pursue Affordable Housing Funding 7.4.1 Affordable Housing Incentives (aka Density Bonus) 2016-03-22 Agenda Packet Page 76 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Require affordable housing developments for low-and moderate- income households to comply with the following policies; marketing and leasing efforts, require outreach to minority communities, including advertising in multi-lingual media; require the monitoring of lease and sales efforts for compliance with affirmative marketing; and, require periodic reporting to the Community Development Department on the composition of resident populations in units, income levels and affordability of the units. 1 2021 The City continues to require all developers of affordable housing communities to provide the City with a Marketing Plan, including efforts for affirmative marketing to minority communities. All marketing plans are required as condition of the loan agreement and are subject to review and approval by the City. Continue contracting with a service provider for implementation of programs for broad outreach and education on housing rights to ensure information and materials are available to the entire community through a variety of means, including availability on the City's website and various City and civic buildings, fair housing counseling, and resolution of fair housing complaints. Where appropriate, refer to other agencies, including State and Federal enforcement agencies. 1 2021 In 2013, the City released an RFP for professional fair housing services. Through the competitive process, the City entered into a contract with Center for Social Advocacy (CSA) to provide outreach and counseling for fair housing issues. Information regarding fair housing education and resources is available on the City's website and at the public counter. In 2015, the City extended CSA’s contract. During this period CSA continued to make available brochures, pamphlets and handbooks to interested parties. CSA conducted several workshops during the year. The workshops were held at the following locations: Chula Vista Community Collaborative meeting, Chula Vista Public Library, and at several elementary schools. One workshop was directed to property managers and held at the Pacific Southwest Association of Realtor office. Lastly, a Proclamation was presented to CSA honoring Fair Housing month on April 14, 2015. In addition, the planning process began for the San Diego Regional Analysis of Impediments to Fair Housing Choice. The City is a member of the San Diego Regional Alliance for Fair Housing that consists of 13 participating Cities and the County of San Diego. 8.1.2 Fair Housing Education & Counseling 8.1.1 Affirmative Marketing & Leasing Policy H9.1 - Encourage meaningful public participation by all segments of the community, including low- and moderate-income residents, the business sector, social service agencies, renters and homeowners, when reviewing and developing City housing policies and affordable housing projects. Goal H9 - Promote and facilitate early, transparent public input and participation emphasizing community awareness of the City of Chula Vista's goals, tools, available resources and programs for lower income households. 2016-03-22 Agenda Packet Page 77 Objective Priority Level Deadline in H.E.Status of Program Implementation Objective H1 - Enforce maintenance of safe and decent housing, enhance the quality of existing housing, and maintain the integrity of residential neighborhoods. Table C 2015 Program Implementation Status (Since 2013) Program Description (By Housing Element Program Names) Housing Programs Progress Report - Government Code Section 65583. Describe progress of all programs including progress in removing regulatory barriers as identified in Housing Element . Name of Program Continue to incorporate public input and participation in the design and development of City housing plans and policies.1 2021 The City continues to provide opportunity for public input for all plans and policies. The Mobilehome and Trailer Park Conversion Ordinance (CVMC 9.40) update included an extensive outreach process that included bilingual meetings and materials at each step of the process. The City also took similar measures to look at a variety of policies and ordinances through the Affordable Housing Working Group. The 2013-2020 Housing Element update involved a range of public outreach efforts including several public workshops, and a detailed survey available online and at City Hall. The City Council approved the Draft 2013-2020 Housing Element for public review in December 2012 and was approved by HCD in April 2013. Development of a City-wide policy to provide services to persons with limited English proficiency with the goal of providing such persons with better access to verbal and written information provided by the City, specifically related to affordable housing resources and programs for low-and moderate-income households. 1 2021 The City continues to provide bilingual materials for all housing program marketing materials and provides translation services as needed. In late 2014 the City began evaluating translation service language on all meeting agendas related to Housing and altered agendas to include a request for translation services. Develop and maintain outreach or other appropriate marketing materials identifying available housing resources and programs available in the City of Chula Vista, including affordable housing developments, to ensure existing and potential residents are aware of affordable housing opportunities. Information and materials are to be available via the City's website and the Development Services front counters. 1 2021 Staff continues to provide updated housing resource information as needed on the City's website and at the public counters. In 2013, staff created a unique Housing Division logo, which has been helpful in identifying the City's participation in various programs and services. Additionally, staff updated several of the City's housing program flyers, including the First-time Homebuyer, Affordable Rental Housing, and Community Housing Improvement Program flyers, all of which are available at the front counters. The City also displays materials for Fair Housing services, Foreclosure Intervention services, Homelessness services, and community resources at the public counters. In 2015 the City conducted a comprehensive update of the website. All of the marketing materials and resources described above are incorporated. Provide an annual report to the City Council on the City’s existing housing stock and policies in relation to progress in implementing the policies of the Housing Element. The annual report shall also be made available for review in public locations. 1 Annually Since 2008, the Housing Advisory and Mobilehome Rent Review Commissions have met annually to review Housing Element progress made during the previous year. It is anticipated that the groups will meet again this April in their annual joint meeting to discuss relevant housing issues to each group. In addition, the City Council is presented with the report annually in an open public meeting. 9.1.3 Housing Resources Information 9.1.1 Public Input & Participation 9.1.4 Annual Housing Report 9.1.2 Limited English Proficiency Policy 2016-03-22 Agenda Packet Page 78 City of Chula Vista Housing Successor Page |1  Housing Successor Report 2014‐2015  ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2014- 2015 PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f) FOR THE CHULA VISTA HOUSING SUCCESSOR Senate Bill 341 (SB 341) became effective on January 1, 2014, requiring each housing successor agency that assumed the housing functions of a former redevelopment agency to post a report on its website containing information regarding the low and moderate income housing asset funds of the former redevelopment agency for the previous fiscal year. In addition, Housing Successor Agency is required to conduct and provide an independent financial audit of the Fund within six months of the end of the fiscal year. The Audit may be included as part of the City’s independent financial audit. The Chula Vista Housing Authority assumed the housing functions of the former City of Chula Vista Redevelopment Agency on February 1, 2012. The transfer of the functions included the transfer of formerly designated RDA low- and moderate-income housing funds as were any funds generated by former RDA housing assets. To ensure that the monies in the Fund are expended in accordance with the law, Section 34176.1(f) requires an independent financial audit of the Fund within six months of the end of the fiscal year. The independent audit of the City’s Fund will be included as part of the Comprehensive Audited Financial Report (CAFR) prepared by Lance, Soll & Lunghard, and is on the City’s website at http://www.chulavistaca.gov/departments/finance. This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f). This Report sets forth certain details of the Chula Vista Housing Successor (Housing Successor) activities during fiscal year 2014-2015 (fiscal year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law). 2016-03-22 Agenda Packet Page 79 City of Chula Vista Housing Successor Page |2  Housing Successor Report 2014‐2015  This Report conforms with and is organized into sections I. through XI., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law: I. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the fiscal year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited. A total of $966,453.23 was deposited into the LMIHAF during the fiscal year. Of the total funds deposited into the LMIHAF, a total of $ 0.00 was held for items listed on the ROPS. II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the fiscal year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited. Per the Comprehensive Annual Financial Report ending June 30, 2015, the ending balance in the LMIHAF was $9,138,907 (please refer to page 42). In addition, a SERAF payment was received in the amount of $1,927,748 that was approved by the Department of Finance, listed on ROPS 14-15A. III. Description of Expenditures from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized. LMIHAFExpenditures2014-15 Monitoring and Administration Expenditures $207,307.05 Homeless Prevention and Rapid Rehousing Services Expenditures $0 Total Expenditures $207,307.05 Housing Development Expenditures For Low-Income Units $0.00 For Very Low Income Units $0.00 For Extremely Low Income Units $0.00 TOTAL LMHAF Expenditures in Fiscal Year $207,307.05 IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts. Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as 2016-03-22 Agenda Packet Page 80 City of Chula Vista Housing Successor Page |3  Housing Successor Report 2014‐2015  listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property purchased by the Housing Successor. Further, the value of loans and grants receivable is included in the reported assets held in the LMIHAF. The following provides the statutory value of assets owned by the Housing Successor. Statutory Value of Real Property* $160,000.00 Value of Loans and Grants Receivable $21,829,393.40 Total Value of Housing Successor Assets $21,989,393.40 *The Succesor Housing Agency owns three mobilehome spaces at Orange Tree V. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous fiscal year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing. The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c) (2) during the fiscal year. VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project. The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS. VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset. The Housing Successor did not make any transfers to other Housing Successor(s) under Section 33334.16 during the fiscal year. 2016-03-22 Agenda Packet Page 81 City of Chula Vista Housing Successor Page |4  Housing Successor Report 2014‐2015  VIII. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor’s plans to meet unmet obligations, if any. Replacement Housing: There are no replacement housing obligations by the former Redevelopment Agency that were transferred to the Housing Successor. Inclusionary/Production Housing: According to the Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for a five year period, with the period beginning January 1, 2014 and whether the statutory thresholds have been met. However, reporting of the Income Test is not required until 2019. There is nothing to report at this time. X. Senior Housing Test: This section provides the percentage units of deed- restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former Redevelopment Agency, and its host jurisdiction within the previous ten years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten-year period reviewed is July 1, 2004 through July 1, 2014. The following provides the Housing Successor’s Senior Housing Test- Reporting requirements for Implementation Plans pursuant to CRL Section 33490 (a)(2)(C)(iv): There is nothing to report at this time. No LMIHAF funds were expended during the reporting period. No deed-restricted Senior Housing Units were assisted by the former redevelopment agency, the City of Chula Vista, or the housing successor within the last ten years. XI. Excess Surplus Test: This section provides the amount of excess surplus (unencumbered funds) in the LMIHAF, exceeding one million or the aggregate amount deposited in the fund over the preceding four fiscal years if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus. The computed excess/surplus is $2,297,745. In February 2015, the City of Chula Vista received a development application requesting $1,827,340 in financial assistance using LMIHAF. With this commitment of LMIHAF funds by the Housing Authority, the Housing 2016-03-22 Agenda Packet Page 82 City of Chula Vista Housing Successor Page |5  Housing Successor Report 2014‐2015  Successor will not have an excess surplus exceeding $1,000,000. New Sections Required as of January 1, 2015 XII. An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3. This inventory shall include all of the following information: (A) The number of those units.- There are four (4) Orange Tree Lots that were assisted by the former redevelopment agency that are subject to covenants or restrictions. These loans are due and payable in 2017. (B) In the first report pursuant to this subdivision, the number of units lost to the portfolio after February 1, 2012, and the reason or reasons for those losses. For all subsequent reports, the number of the units lost to the portfolio in the last fiscal year and the reason for those losses. In April 2013, one unit was lost at 521 Orange Avenue #83. The occupant passed away and the heirs sold the property. (C) Any funds returned to the housing successor as part of an adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund. A total of $10,913.24 was returned to the LMIHF due to the sale of the property at 521 Orange Avenue Space #83. (D) Whether the housing successor has contracted with any outside entity for the management of the units and, if so, the identity of the entity. The Housing Agency does not contract with an outside entity to manage the homeownership units assisted with LMIHF. 2016-03-22 Agenda Packet Page 83 City of Chula Vista Staff Report File#:16-0149, Item#: 3. RESOLUTIONOFTHECITYCOUNCILOFTHECITYOFCHULAVISTAAPPROVINGTHE TERMSFORANAGREEMENTWITHPOINTLOMATRUSTFORTHEOPERATIONOFTHE CHULA VISTA ELITE ATHLETE TRAINING CENTER RECOMMENDED ACTION Council adopt the resolution. SUMMARY In2014,theUnitedStatesOlympicCommittee(“USOC”)approachedtheCitytodetermineiftheCity wouldbeinterestedinacquiringtheChulaVistaOlympicTrainingCenterland,facilitiesand equipment,andincontinuingtooperatethefacilityasaU.S.OlympicandParalympicTrainingSite. AfterextensiveanalysisandnegotiationswiththeUSOC,onFebruary23,2016,staffpresentedto theCityCouncil,andtheCityCouncilapproved,thekeyagreementswiththeUSOCtoimplement thistransaction.OneofanumberofkeyremainingactionsistheCity’sapprovalofanagreementfor theoperationsofthefacility(nowknownastheChulaVistaEliteAthleteTrainingFacility)withathird partyoperator.CityworkedwiththeUSOCtosolicitandevaluateproposalsforprospective operators.Intheend,thePointLomaTrust,anaffiliateofPointLomaNazareneUniversity,was selectedasthemostqualifiedandsuitedtothetask.Citystaffhasnownegotiatedsubstantiallyfinal termsforthisagreementwiththePointLomaTrust(“PLT”).Thisitempresentsthesetermstothe CityCouncilforitsconsiderationandapproval.IftheCityCouncilsodirects,staffwillproceedto finalizeitsnegotiationswithPLTconsistentwiththeseterms,andbringbackafinalagreementfor City Council consideration at the April 5th Council meeting. ENVIRONMENTAL REVIEW Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality Act(“CEQA”)StateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)no environmental review is required. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedforcompliancewithCEQAand hasdeterminedthattheactivityisnota“Project”asdefinedunderSection15378oftheCalifornia EnvironmentalQualityActStateGuidelinesbecausetheactivityconsistsofapprovalofproposed businesstermsfortransferandoperatingagreementsfortheUSOCsite,anddoesnotinvolvea potentiallysignificantphysicalimpactontheenvironment.Therefore,pursuanttoStateGuidelines Section 15060(c)(3) no environmental review is required. BOARD/COMMISSION RECOMMENDATION City of Chula Vista Printed on 3/18/2016Page 1 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 84 File#:16-0149, Item#: 3. Not Applicable DISCUSSION In2014,theUSOCapproachedtheCitytodetermineiftheCitywouldbeinterestedinacquiringthe ChulaVistaOlympicTrainingCenterland,facilitiesandequipment,andincontinuingtooperatethe facilityasaU.S.OlympicandParalympicTrainingSite.Negotiationscommencedandanoperating modelwasdevelopedthatwasintendedtoallowtheCitytocontinueoperationofthefacilityasan OlympicandParalympicTrainingSite,withotherusesandeventscompatiblewiththeexistingelite sportstrainingactivities.Themodelincludedtheconstructionofadditionalathletedorms(which CouncilapprovedinitsactiononMarch15,2016pursuanttoacontractforthedevelopmentof100 bedswithBaldwin&Sons).andselectionofathird-partyoperatortominimizerisktotheCity’s general fund. InJuly2015,theCityissuedaRequestforExpressionsofInterest(RFEI)forathirdpartyoperator. Elevenpotentialoperatorsresponded.Throughaseriesofevaluations,theCityandtheUSOC narrowedtheselectionandultimatelyselectedthePointLomaTrust(PLT),andaffiliateofPoint LomaNazareneUniversity(“PLNU”),asitspreferredoperator.PLTwasselectedbecauseof PLNU’sexperiencewithoperatinghighqualitysportsfacilities,buildings,residencehallsanddining facilities;itsunderstandingtheneedtomarketthefacilityforadditionalrevenuegenerationthat complementsthecorebusinesssuchasincreasedusebyinternationalathletes,grassrootcamps, hostingadditionalNGB’s,sportandteambuildingclinics;itsexistinginvestmentinChulaVistawith theirrelationshipwithSouthwesternCollege;itsacceptanceanddesiretoembraceandpromotethe visionoftheCityandtheUSOCregardingtheOlympicmovementandsupportoftheEliteAthletes trainingatthecenter;itsdesiretoexceedtheexpectationsofUSOCandtheCity;itsdesireto developstrategicpartnershipswith,andtomaintainorenhanceservicelevelsforEastonArchery Center of Excellence; and its willingness to bear risks of operating deficits. The proposed key terms for the Operator Agreement (“Agreement”) between the City and PLT for the operation of the CVTC are set forth below. A number of “Notes” are also provided to indicate where negotiating points still remain. 1.In General a.Parties. City of Chula Vista (“City”), and The Point Loma Trust, a California trust, or a wholly owned subsidiary thereof (“PLT”), acting as an independent contractor. b.Basic Agreement. PLT shall have the exclusive right and duty to operate and maintain the Chula Vista Elite Athlete Training Center (“CVTC”) consistent with (1) the terms set forth in this Agreement; (2) City’s Core Agreement with the United States Olympic Committee (“USOC”); and (3) the initial CVTC Business Plan approved by both parties (“Business Plan”), described in Section 3, below. City’s rights and obligations under the Core Agreement will be assigned to PLT except as expressly provided in the Agreement. c.Additional Standards of Performance/Duties. In the performance of its duties, PLT shall also be required to: (1) comply with all laws; (2) maintain an adequate and effective work force; (3) maintain the CVTC facilities and equipment per agreed upon schedules and standards; (4) maintain City of Chula Vista Printed on 3/18/2016Page 2 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 85 File#:16-0149, Item#: 3. records and accounting system(s) in accordance with GAAP; (5) propose and comply with an annual budget approved by the City Manager with quarterly reports demonstrating adherence to the budget and the Core Agreement. 2.Term a.Term. After a transition period from April 1, 2016 until December 31, 2016, commencing January 1, 2017, PLT shall have the right and obligation to operate the Agreement for a period of up to ten (10) years (until December 31, 2026). This includes an eight (8) year initial term and a two (2) year extension at PLT’s discretion. Extension terms beyond 10 years are possible, up to an additional ten (10) years, subject to each party’s approval in its sole discretion. b.PLT’s Early Termination Right. PLT may initiate a potential early termination of the Agreement in the event of substantial operating deficits by providing written notice after four (4) years of operation. In such event, the parties agree to meet and confer in good faith for at least three (3) months in order to determine if there are mutually agreeable terms to continue PLT’s operations for the remainder of the Term, or beyond. In the event that the parties are unable to reach agreement, PLT can elect to terminate the Agreement with adequate notice to City to allow City to transition operations to another provider, or terminate (City is proposing 9 to 12 months). Note: The parties are discussing other possible “early termination” or “re-negotiation” events, but have not yet reached agreement. Any such provisions will be presented to the City Council in the final agreement. 3.Business Plan a.Initial Business Plan. PLT shall prepare a draft Business Plan that does not conflict with the Core Agreement for City review/approval. The draft Business Plan shall include, at a minimum, the following elements: (a) mission/vision statement, (b) transition plan, (c) list of the targeted types and desired mix of users, (d) marketing plan summary, (e) principles for rate setting and/or a proposed preliminary rate structure for facility users, (f) principles for budget development and compliance, including operational and capital reserves, (g) community outreach plan summary, (h) special event plan summary, (i) staffing plan, (j) retail store proposal, and (k) plan for identifying/funding capital enhancements, and (l) plan for identifying potential business opportunities, including without limitation, the addition of on-site retail operations such as restaurant and/or coffee retailers. b.USOC Review. The City-approved draft Business Plan shall be submitted to USOC for review and input, with reasonable consideration by Operator given to USOC proposed adjustments. c.Comprehensive Business Plan. Based upon and consistent with the draft Business Plan, PLT shall develop a more detailed and comprehensive Business Plan and shall submit that plan for City Manager review and approval by no later than July 1, 2016. d.Annual Review Process. The parties shall meet and confer each year of the term starting March 1st to discuss possible updates and modifications to the Business Plan. PLT shall submit its updated plan to the City Manager for review and input, with reasonable consideration given City of Chula Vista Printed on 3/18/2016Page 3 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 86 File#:16-0149, Item#: 3. to the City Manager’s proposed modifications. 4.Staffing/Oversight a.In General. PLT shall have the right and responsibility to hire/manage and terminate employees as necessary to operate/maintain the CVTC per the standards required by the Agreement. b.Key Positions. Initially, City Manager (or designee) and PLT shall confer to identify key existing CVTC employees that may be offered positions with PLT. Until December 31, 2021, PLT shall continue to consult with City Manager (or designee) in advance of hiring, material changes in employment or termination of these individuals/positions. Notwithstanding the foregoing, the ultimate decisions regarding hiring, managing or terminating PLT employees shall be at PLT’s sole discretion. c.City CVTC Coordinator/Liaison. There shall be a CVTC “Coordinator/Liaison” to be employed by City, or a non-profit created thereby (“City Coordinator/Liaison”). The City Coordinator/Liaison shall be responsible for City’s obligations with respect to CVTC operations, shall assist with marketing of the CVTC, and shall be PLT’s point of contact with the City. PLT shall provide the City Coordinator Liaison with full access to the CVTC, along with reasonable office space and reasonable office support services at Operator’s cost. Until December 31, 2021, City shall consult with PLT in advance of hiring, material changes in employment or termination of this position. Notwithstanding the foregoing, the ultimate decisions regarding hiring, managing or terminating the City Coordinator/Liaison shall be at City’s discretion. d.Facility Operations Advisory Committee (“FOAC”). City envisions representative(s) from USOC, Easton, PLT, City and CVTC coaches/athletes to share ideas and issues relative to CVTC operations. This entity shall have no decision making or governance function but shall be consulted from time to time for its input on CVTC operations and policy. This entity shall have not less than 20% CVTC resident athlete representation. The FOAC could potentially serve as the agent for administering the annual review process [Section 11], and/or the “athlete representative” function [Section 30] required under the Core Agreement. 5.Revenues/Compensation a.In General.All CVTC revenues generated by PLT’s operations of CVTC shall go to CVTC operations and maintenance as PLT shall direct, consistent with terms of Business Plan and Budget, except as otherwise expressly provided herein. b.Operator Fee. In consideration of PLT’s provision of services under the Agreement, PLT shall be entitled to a fee equal to the greater of a fixed dollar amount (current amount proposed is $300,000), or a percentage of CVTC gross revenues (current percentage proposed is 10%) (“Operator Fee”). The Operator Fee shall be payable out of CVTC revenues on an annual basis, in arrears (“Operator Fee”). Starting in calendar year 2018, and each year of the term thereafter, the Operator Fee shall be payable monthly out of CVTC revenues based upon PLT’s revenue projections for that calendar year, subject to a year-end reconciliation. Note: Still under negotiation is what happens if adequate revenues are not available to pay City of Chula Vista Printed on 3/18/2016Page 4 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 87 File#:16-0149, Item#: 3. PLT its “Operator Fee” without creating an operating deficit. PLT has proposed carrying forward and accruing interest on any unpaid “Operator Fee” amounts, with priority payment of such amounts out of future “Surplus Revenues” (see below). c.Special Revenues. City receive all revenues from certain special events sponsored/co -sponsored by City at the CVTC to be defined in the Agreement provided that City shall manage, pay all expenses, including applicable insurance costs, and. d.Surplus Revenues. To extent any “surplus revenues” are generated from PLT’s operations of the CVTC (to be defined) (“Surplus Revenues”), then (a) 20% of such Surplus Revenues shall be dedicated towards agreed upon “CVTC Special Projects” (to be defined by the parties mutually, but generally CVTC facility additions or enhancements) and (b) 80% of such Surplus Revenues shall be paid to PLT as an additional fee for PLT’s services under the Agreement. Some portion of the 80% of “Surplus Revenues” payable to PLT shall be dedicated by PLT towards enhancing or adding to existing PLT projects or programs benefitting Chula Vista residents or students. PLT is currently proposing 10%. “Surplus Revenues” shall be determined annually, in arrears, based upon a reconciliation of revenues generated and costs incurred for that budget year, after funding required operational and capital reserves, and paying off, in order, any operational/capital costs for the current year under the approved Budget, and any “Deferred Operator Expenses” (defined below) that may have been carried forward from any previous year(s). Note: These percentages may change in the final agreement depending upon the outcome of other items pending resolution. e.Loss Recovery. The Operator shall be responsible for the payment of all losses resulting from the operation of the CVTC except to the extent that such losses are caused by costs expressly allocated to the City under the Agreement (the “Deferred Operator Losses”). The amount of Deferred Operator Losses from each year of operations, plus interest to accrue on the outstanding balance of such losses at a rate based on PLT’s cost of funds per annum, shall be recovered by the Operator from subsequent year’s revenues from operations after first paying all required operating expenses. Note: A key element of this provision is that except as expressly provided in the Agreement, PLT is bearing the responsibility for any CVTC operating deficit. The interest factor and the priority of this payment relative to other CVTC expenses are still being negotiated. f.City Responsibility for Certain Costs. City shall be solely responsible for payment of each of the following expenses on a timely basis, and the Operator shall have no obligation at any time to pay any of the following expenses: (1) all costs to investigate and/or remediate any environmentally sensitive materials and/or hazardous materials or substances at the CVTC existing prior to the Transfer, (2) City’s violation of any and all obligations under the Core Agreement that expressly remain City’s responsibilities under the Agreement, (3) events hosted, sponsored or organized by the City and agreed to by the Operator to be held at the CVTC, (4) all costs necessary to change the signage at the CVTC, or on any off-site locations including on public streets, and (5) any taxes or fees imposed on City directly. City of Chula Vista Printed on 3/18/2016Page 5 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 88 File#:16-0149, Item#: 3. Note: City and PLT are still negotiating terms for what happens if there is an “uninsured event” that causes the need for major repairs to the CVTC, that are not due to the fault of Operator or City, or recoverable from a third party, but are necessary to the functioning of all are any key component of the CVTC. Currently under discussion is a provision for the Operator and the City to meet and confer to discuss a reasonably allocation of the cost of commencing and completing such repairs, and possible modifications to the terms of the Agreement (e.g., special reimbursement provisions or extension of the term). City is also considering proposing City responsibility for maintenance of the facility private sewer system. g.Records/Audit Rights. PLT shall maintain records in accordance with GAAP. City shall have the right to access and review CVTC books, financial statements and records. PLT shall pay for one complete independent audit per year, with any additional audit work required at City’s cost. PLT proprietary records shall be kept confidential, but otherwise records shall be subject to disclosure under applicable public records act laws. h.Budget Process. A process similar to that used for the Business Plan shall be used for budget preparation and annual review. 6.City Reservation of Access/Events a.General Reservation of Access for Designated City Staff/Consultants . City Coordinator Liaison may reasonably designate additional City staff/consultants to have access to the CVTC, at City’s cost, to assist with CVTC oversight and assessments. b.Special Rights for City Officials and City Sponsored Events. PLT shall provide City a certain number passes to special CVTC events to be distributed by City under City policies at no cost, subject to reasonable restrictions. City to have access to the CVTC (time/space permitting) for a certain number and type of City events. E.g., a certain number of City staff/official retreats/meetings would be at cost only, with preferred rates on a certain number of additional events (e.g., the City Library Foundation, Friends of Parks and Rec. and Police Activities League). Any such City events shall be scheduled with approval of Operator. 7.Creation of Fundraising Non-Profit The parties shall meet and confer with intent of creating a separate non-profit to fund-raise and otherwise support CVTC facilities and programs. It is intended for both parties to have a role and representation, with potential addition of USOC and/or Easton. 8.Security for Performance PLNU (or some other appropriate entity/affiliate of PLT) shall provide City with security satisfactory to City to assure PLT’s performance of its financial and other obligations under the Agreement. 9.Insurance and Indemnity. City of Chula Vista Printed on 3/18/2016Page 6 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 89 File#:16-0149, Item#: 3. a.Insurance. Insurance will be required of both parties, patterned after the requirements under the Core Agreement unless additional/special coverages are deemed necessary/appropriate. b.Mutual Indemnities. The parties will indemnify each other in accordance with customary practice in commercial agreements, including without limitation for breach of the Agreement and for either party’s negligence or willful misconduct. Note:PLT has proposed a number of special indemnities for its benefit that are still under discussion. 10.Special City Covenants. CitycovenantstotheOperatorasfollows:(a)unlessrequiredbytheCoreAgreement,City shallnotmakematerialalterationstoanyexistingfacilitiesorimprovementsattheCVTCortoany newfacilitiesattheCVTCifOperatorwillberequiredtomaintainandoperatesuchfacilitywithout firstreceivingOperator’spriorwrittenapproval,(b)Cityshallnottakeanyactionstoviolateanyuse restrictionsapplicabletotheProperty,(c)CityshallusereasonableeffortstoworkwithPLTto explorecostsavingsandreducedutilityratesforthefacility,(d)Cityshallexplorelegalwaysto reduce or mitigate costs or fees imposed by City related to the operation and use of the CVTC. Next Steps: ThisitempresentsthesetermstotheCityCouncilforitsconsiderationandapproval.IftheCity Councilsodirects,staffwillproceedtofinalizeitsnegotiationswithPLTconsistentwiththeseterms, and bring back a final agreement for City Council consideration at the April 5 th Council meeting. Concurrently,staffwillbecompletingits“duediligence”oftheCVTCfacility,workingonnegotiations withtheEastonFoundationfortransferoftheEastonArcheryCenterlease,finalizingthecontracts forthedevelopmentofthenewathletehousingprojectconsistentwithtermspreviouslyapprovedby theCouncil,andworkingonan“interim”agreementwiththeUSOCdesignedtofacilitatethe transition and address issues that might arise during the transition period. DECISION-MAKER CONFLICT StaffhasreviewedthepropertyholdingsoftheCityCouncilmembersandhasfoundnoproperty holdingswithin500feetoftheboundariesofthepropertywhichisthesubjectofthisaction. Consequently,thisitemdoesnotpresentadisqualifyingrealproperty-relatedfinancialconflictof interestunderCaliforniaCodeofRegulationsTitle2,section18702.2(a)(11),forpurposesofthe 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.Theoperationsofthe OlympicTrainingCentersupporttheEconomicVitalitygoalastheCitywillbeabletomaximizethe useofthisvaluableassetasaneconomicdriver.ContinuedoperationswillalsosupporttheHealthy City of Chula Vista Printed on 3/18/2016Page 7 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 90 File#:16-0149, Item#: 3. useofthisvaluableassetasaneconomicdriver.ContinuedoperationswillalsosupporttheHealthy Communitygoalbecauseitwillprovidethehighestleveloffitness,trainingandnutritionforelite athletes(bothresidentandvisiting).Fitness,trainingandnutritioneducationandactivitiesarealso expected to be continued and expanded for local residents and programs. CURRENT YEAR FISCAL IMPACT StaffdoesnotanticipateanyimpactstotheGeneralFundreservesinthecurrentfiscalyearasa resultofthisitem.Theremaybein-kindservicesfromPublicWorkstoperformsomeminorcapital repairsattheOTC.ThecapitalcostoftheserepairsareexpectedtobebornebytheUSOCoutof its budget. ONGOING FISCAL IMPACT TheongoingfiscalimpactsrelatedtothetermsoftheagreementwithPointLomaTrustwilldepend onthefinalagreement.Basedonthetermsnotedinthestaffreport,theremaybesomeCity responsibilityforcertaincostsasnotedinSection5(f)asfollows:“Cityshallbesolelyresponsible forpaymentofeachofthefollowingexpensesonatimelybasis,andtheOperatorshallhaveno obligationatanytimetopayanyofthefollowingexpenses:(1)allcoststoinvestigateand/or remediateanyenvironmentallysensitivematerialsand/orhazardousmaterialsorsubstancesatthe CVTCexistingpriortotheTransfer,(2)City’sviolationofanyandallobligationsundertheCore AgreementthatexpresslyremainCity’sresponsibilitiesundertheAgreement,(3)eventshosted, sponsoredororganizedbytheCityandagreedtobytheOperatortobeheldattheCVTC,(4)all costsnecessarytochangethesignageattheCVTC,oronanyoff-sitelocationsincludingonpublic streets,and(5)anytaxesorfeesimposedonCitydirectly.”Mostoftheseitemsarepotentialcosts asopposedtoprojectedcertaincosts.Asnotedabove,therearealsodiscussionsregarding potentialCitycontributionsto“uninsured”capitalrepairs.Thetermsforthisitemarestillbeing negotiated. ATTACHMENTS StaffreportfromFebruary23,2016regardingCityCouncilapprovaloftheTransferAgreementand Core Agreement with the USOC. City of Chula Vista Printed on 3/18/2016Page 8 of 8 powered by Legistar™2016-03-22 Agenda Packet Page 91 City of Chula Vista Staff Report File#:16-0101, Item#: 11. CONSIDERATIONOFAPPROVINGATRANSFERANDOPERATINGAGREEMENTBETWEEN THE UNITED STATES OLYMPIC COMMITTEE (USOC) AND THE CITY RESOLUTIONNO.2016-039OFTHECITYCOUNCILOFTHECITYOFCHULAVISTA APPROVINGATRANSFERANDOPERATINGAGREEMENTBETWEENTHEUNITEDSTATES OLYMPICCOMMITTEE(USOC)ANDTHECITYOFCHULAVISTA(CITY)PROVIDINGFOR USOCTRANSFERTOCITYOFTHECHULAVISTAOLYMPICTRAININGCENTERPROPERTY ANDFACILITIES,ANDCITYOPERATIONOFTHEFACILITYWITHTHEUSOCASITSPRIMARY TENANT FOR A PERIOD OF FOUR YEARS (WITH EXTENSIONS) RECOMMENDED ACTION Council adopt the resolution. SUMMARY In2014,theUnitedStatesOlympicCommittee(“USOC”)approachedtheCitytoinquireiftheCity wouldbeinterestedintakingtitletotheChulaVistaOlympicTrainingCenter(“CVOTC”)landand improvementsandtocontinueoperatingthefacilityasaUSOCTrainingSite.Negotiations commencedandinJune2015,theCityandtheUSOCenteredintoamemorandumofunderstanding toestablishexclusivenegotiatingtermsandtoestablishpreliminarytermsandaframeworkfor creatingfinaltermsandconditionsfortransfer.TheCity’snegotiatingteamhasbeenworking diligentlytodeveloptheterms,conditionsandframeworkfortheproposedtransfer.Thisactionbrings forwardfortheCouncil’sconsiderationandapprovalsubstantiallyfinalformsofthetransferand operatingagreements.Theagreementspresentedareconsistentwiththetermsapprovedbythe CouncilonFebruary9th.StaffisstillworkingontheOperatorAgreementandtheHousing DevelopmentAgreementfortheCenter.TheseareexpectedtocomebacktotheCouncilfor consideration and approval prior to March 31st. ENVIRONMENTAL REVIEW Environmental Notice Theactivityisnota“Project”asdefinedunderSection15378oftheCaliforniaEnvironmentalQuality Act(“CEQA”)StateGuidelines;therefore,pursuanttoStateGuidelinesSection15060(c)(3)no environmental review is required. Environmental Determination TheDirectorofDevelopmentServiceshasreviewedtheproposedforcompliancewithCEQAand hasdeterminedthattheactivityisnota“Project”asdefinedunderSection15378oftheCalifornia EnvironmentalQualityActStateGuidelinesbecausetheactivityconsistsofapprovalofproposed businesstermsfortransferandoperatingagreementsfortheUSOCsite,anddoesnotinvolvea potentiallysignificantphysicalimpactontheenvironment.Therefore,pursuanttoStateGuidelines City of Chula Vista Printed on 3/8/2016Page 1 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 92 File#:16-0101, Item#: 11. Section 15060(c)(3) no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION TheChulaVistaOlympicTrainingCenteristhefirstUSOCtrainingcentertobemaster-plannedfrom thegroundupandisdedicatedtothedevelopmentandperformanceofAmerica’sfutureOlympic Athletes.TheOlympicTrainingCenterwasopenedin1995andoperatesunderadeclarationof Covenants,ConditionsandRestrictionsspecifictooperatinganOlympicTrainingCenterfortraining inOlympicSportingEventsorothersimilarathleticorsportingeventsexcludingprofessional-for-profit sportsteamsasaprimaryuseandotherusesreasonablyrelatedtosuchathletictraining,including withoutlimitation,educationalorrecreationaluses;exhibits,touring,visitorscenter,giftshops,athlete housing, dining hall, offices, concessions, restaurant and snack shops. TheChulaVistaOlympicTrainingCenterrestsona155-acrecomplexadjacenttotheLowerOtay ReservoirandhasbenefitedthousandsofOlympichopefuls,localyouth,numerouscommunity groupsandcountlessvisitorsfromaroundtheglobe.Thousandsofstudent-athletesandcoaches alsogainaccesstotheChulaVistaOlympicTrainingCenterforclinicsandcompetitionswhen venuesarenotbeingutilizedbyOlympicathletes-in-training.Currentresidentathletesinclude Archery,Rugby,Track&FieldandParalympicTrack&Field.OtherfrequentusersincludeBeach Volleyball, BMX, Canoe/Kayak, Cycling, Field Hockey, Rowing, Soccer, Tennis and Triathlon. In2014,theUSOCapproachedtheCitytoinquireiftheCitywouldbeinterestedintakingtitletothe CVOTClandandimprovementsandtocontinueoperatingthefacilityasaUSOCTrainingSite. Negotiationscommencedand,inJune2015,theCityandtheUSOCenteredintoamemorandumof understanding(MOU)toestablishexclusivenegotiatingtermsandtoestablishpreliminarytermsand aframeworkforcreatingfinaltermsandconditionsfortransfer.TheMOUwasextendedin September2015.Duringtheinitialperiodofnegotiation,theCityandUSOCenteredintoan agreementwithJMISporttodoafeasibilitystudyforthepotentialtransferoftheCVOTC.Asaresult oftheJMIstudyandwithfurtheranalysisconductedbytheCityandUSOC,anoperatingmodelhas beendevelopedthatwillallowtheCitytocontinueoperationoftheCVOTC,(tobeknownasthe, “ChulaVistaEliteAthleteTrainingCenter”)asanOlympicandParalympicTrainingSitewithother usesandeventsreasonablyrelatedtosportsconsistentwiththeCC&R’s.Themodelincludesthe constructionofadditionalathletedorms,creationofanon-profitoversightentityandselectionofa third-party operator to minimize risk to the City’s general fund. InJuly2015,theCityissuedaRequestforExpressionsofInterest(RFEI)foranoperator.Eleven potentialoperatorsresponded.Throughaseriesofevaluations,theCityandtheUSOCnarrowed theselectionandultimatelyselectedthePointLomaTrust(PLT)asourpreferredoperator.PLTwas selectedbecauseoftheirexperiencewithoperatinghighqualitysportsfacilities,buildings,residence hallsanddiningfacilities;understandingtheneedtomarkettheCenterforadditionalrevenue generationthatcomplementsthecorebusinesssuchasinternationalrelations,grassrootcamps, hostingadditionalNGB’s,sportandteambuildingclinics;existinginvestmentinChulaVistawiththeir relationshipwithSouthWesternCollege;acceptanceanddesiretoembraceandpromotethevisionCity of Chula Vista Printed on 3/8/2016Page 2 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 93 File#:16-0101, Item#: 11. relationshipwithSouthWesternCollege;acceptanceanddesiretoembraceandpromotethevision oftheCityandtheUSOCregardingtheOlympicmovementandsupportoftheEliteAthletestraining attheCenter;desiretoexceedtheexpectationsofUSOCandCityofChulaVista;desiretomaintain orenhanceservicelevelsforEastonArcheryCenterofExcellence;willingnesstobearriskof operation deficits. The key terms of the “Transfer” and “Core” operating agreements with USOC are summarized below. A number of “Notes” are also provided to explain how these provisions are expected to be implemented. Transfer Agreement: 1.Property to be Transferred [Recitals and Section 1] a.USOCwilltransfertoCitytheland,facilities,fieldsandequipmentcomprisingtheChula Vista Olympic Training Center (“CVOTC”) (approximately 155 acres; 150 owned, 5 leased). b.Thetransferwillincludeanassignmentofallleasesandcontracts.Althoughfinalterms arestillbeingworkedout,theassignmentofcontractsisexpectedtoincludeallagreements pertainingtotheEastonArcheryCenter(approximately11acres),andtheOtayLakes Boathouse(approximately5acres).TheEastonagreementsarediscussedfurtherinSection 5.d, below. c.CitywilltakefeetitletotheCVOTCinits“ASIS”condition,subjecttoCityapproval after City completes its “due diligence” (See Section 3.a., below). 2.Purchase Price [Recitals and Section 2] One Dollar. 3.Conditions to Close [Section 4] As“conditionstoclose”fortheCity’sbenefit,thefollowingitemsmustbecompletedtothe City’ssatisfactionbyonorbeforeMarch31,2016.Ifanyconditionisnotsatisfied,Cityhas the option to terminate all agreements. a.DueDiligence.Cityhastherighttoreviewandapprove(ordisapprove)thephysical and legal condition of the Property. Note:Cityduediligenceprocesswillinclude:(i)aPhaseIhazardousmaterials assessmentoftheProperty(plusaPhaseIIifrequired);(ii)aninspectionandevaluationof theconditionofkeyfacilitiesandequipment;(iii)reviewofallreports,contractsandother writtenmaterialsregardingtheCVOTCprovidedbytheUSOC;and(iv)reviewofa Preliminary Title Report. No material issues/concerns have been identified to date. b.OperatorContract.CityshallhaveenteredintoanagreementwithPointLomaTrust (“PLT”) on terms satisfactory to the City for the operations of the Facility. City of Chula Vista Printed on 3/8/2016Page 3 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 94 File#:16-0101, Item#: 11. Note:Cityiscurrentlynegotiatingthetermsforthis“OperatorAgreement”withPLT.An outlineofkeytermstobeaddressedinthisagreementisprovidedinaseparateSectionto this report, below. c.HousingAgreement.Cityshallhaveenteredintoacontractforthedevelopmentofa one hundred bed coach/athlete housing facility, with delivery by on or before July 1, 2017. Note:CitystaffhasagreedtotermswithdeveloperBaldwin&Sons(“Developer”)forthe developmentoftheseunitsandisnowpreparingfinalagreementsforCityCouncil consideration.Termsinclude:(i)constructionbyDeveloperatDeveloper’ssolecostofa 100bedathlete/coachdormitorystylefacility,andastand-alonelocker/showerday-use facility,allconfiguredanddesignedtoCity/USOCspecifications(“Project”);(ii)aProject deliverydateforthehousingcomponentofJuly1,2017,withincentivesfortimely performance;and(iii)inconsiderationforDeveloper’sdeliveryoftheProject,a proportionateoffsetofDeveloper’saffordablehousingrequirementsinOtayRanchVillage 2.SuchoffsetwillbeconsistentwithtermsoftheCity’srecentlyupdatedaffordable housing Balanced Communities Policy. 4.Transfer Date [Recitals and Section 3.2] December 31, 2016. 5.Other Provisions a.CityPaysEscrowandTitleFees.TheCityshallbearallcostsandexpensesofEscrow andTitleInsurance.Theseexpensesareestimatedat$20,000andshallbepaidatClosing. [Section 7] b.USOC’sRepsandWarranties.USOCmakesvariousrepresentationsandwarranties regardingtheCVOTC,includingnoknowledgeofviolationsoflaws,includinghazardous materialslaws,orpendinglitigation.Otherwise,theCityistakingtheproperty“AS IS.” [Sections 9 and 10] c.ThirdPartyApprovals.Nothirdpartyapprovalshavebeenidentifiedasrequiredforthe transferoftheprimaryCVOTCproperty;however,theoriginalpropertyowner,Eastlake DevelopmentCompany,andtheoriginalproject’sdevelopmentpartner,theSanDiegoSports Foundation, are expected to be consulted with prior to the closing. [Section 4.1.1] d.EastonArcheryCenter.ThetransferoftheEastonArcheryCenterleaseandHousing AgreementfromUSOCtoCityrequirestheapprovaloftheEastonArcheryFoundation (“EAF”).Giventhechangedcircumstances,EAFhasindicateditsdesireforsome modificationsandclarificationsofexistingagreementsasaconditiontoitsapproval.These include:(i)retentionbyUSOCofcertainapprovalrightsoverarcheryathletesandcoaches;(ii) conversionofcertainapprovalstandardsforEAFaccesstoCVOTCfacilitiesfrom“sole”to “reasonable”discretion”;(iii)increasedand/orclarifiedpriorityaccesstocertainparking spacesandadjacentfields;(iv)revisedtermsfortriggeringEAF’srighttoassumeownership ofitsfacility;and(vi)clarifications/revisionstotermsregardingEAF/CityaccesstoEAFandCity of Chula Vista Printed on 3/8/2016Page 4 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 95 File#:16-0101, Item#: 11. ofitsfacility;and(vi)clarifications/revisionstotermsregardingEAF/CityaccesstoEAFand campushousing.USOCandCitystaffareconfidentthattheseissuescanberesolved.Ifnot, althoughthiswouldnotbeideal,thetransactioncouldproceedwithoutthetransfertotheCity of the Easton contracts. [Section 5.1.4] e.CC&Rs.TheOTCPropertywillbetransferredtotheCitysubjecttoasetofcovenants, conditionsandrestrictions(“CC&R’s”)thatwererecordedagainstthePropertyatthetimethe CVOTCwasdevelopedin1995.TheseCC&Rsprovideforanumberofthings,mostnotably auserestrictionthatlimitsusesonthesiteto“(i)traininginOlympicSportingEventsorother similarathleticeventsandsportingevents,excludingprofessional-for-profitsportsteamsasa primaryuse;[and](ii)otherusesreasonablyrelatedtosuchathletictraining,includingwithout limitation,educational,exhibitorrecreationaluses;touringandavisitorscenter;giftshops; athletehousing,athletedininghallfacilities’officesfortheUSOC...”etc.Notably,thisuse restriction,expiredonDecember31,2011.[CC&RsSections4.1]Aprovisionthatimposed anaffirmativeobligationtooperatethesiteconsistentwiththisuserestriction,alongwitha prohibitionon“competitive”commercialactivity,alsoexpiredonDecember31,2011.[CC&Rs Sections4.2and4.3].Onekeyremainingprovisionprovidesasfollows:ifpriortoJanuary 19,2025,theuseofthesiteischangedfromthatcontemplatedinSection4.1,100acresof thepropertymustbeirrevocablyofferedtotheCityforpublicparkpurposes.[CC&RsSection 4.8].AfterJanuary19,2025,allrestrictionsonpropertyusescontainedintheCC&Rswill expire.[CC&RsSection6.1]Becausetheuserestrictionsexpireinallrespectsin2025and theCityintendstooperatetheFacilityconsistentwiththeserestrictionsinanyevent,the CC&R’s do not impose any undue burden on the OTC Property. Core Agreement: 1.Responsibility for Facility Operations a.InGeneral.AftertheTransferDate(January1,2017)theCitywillassume responsibilityforoperationoftheFacility,subjecttothetermsandconditionsspecifiedbelow. TheCitycanassignthisresponsibilitytoathirdpartyoperatorsubjecttoUSOCreasonable approval.ThePointLomaTrust(“PLT”)isalreadydesignatedasa“pre-approved”operator. [Sections 2 and 4] b.USOCSpecialRightstoCertainFacilities.TheUSOCwillcontinuetooperateand controlaccesstoSportsMedicineFacilities,withpriorityaccesstotheWeightRoom,Track and Field Office and High Altitude Dorm Rooms. [Section 3] c.TransitionPeriod.City/PLTwillhavefullaccesstotheFacilitycommencing immediately,andallpartieswillcooperatetofacilitatethetransitionofoperationsfromUSOC toCity/PLT.Additionally,transitionperiodimplementationagreementsarelikelytobe required. [Section 2] 2.Term Theparties“TransitionPeriod”obligations(describedabove)commenceimmediately.The “OperationsPeriod”obligationscommenceonJanuary1,2017foraninitialtermoffour(4) years.Thepartieswillmeetandconferregardingpossibletermsforextension18monthsCity of Chula Vista Printed on 3/8/2016Page 5 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 96 File#:16-0101, Item#: 11. years.Thepartieswillmeetandconferregardingpossibletermsforextension18months prior to expiration of the initial term. [Sections 1 and 2] 3.USOC Minimum Commitment Aspartoftheagreement,theUSOChasagreedtomakeaminimumannualpaymenttothe Cityof$3millionperyearinconsiderationforguaranteeduseof60beds,facilitiesaccessand mealsequalinvalueto$3million(determinedusingpre-negotiatedratesfortheseservices). [Sections 4.A, 5 and Exhibit F] Note:USOCcanpayforadditionalbeds,facilitiesaccessandmealsatnegotiatedrates,and it is currently contemplated that it will. USOC’s $3 million commitment is a “minimum.” 4.City Duty to Maintain and Operate Facility Consistent with Elite Athlete Standards TheCityisobligatedtomaintainandoperatetheFacilityconsistentwithEliteAthlete StandardsasnecessarytosupporttheUSOCMinimumCommitment(describedabove). Otherwise,theCityisauthorizedtooperateandusetheFacilityinCity’sdiscretion;provided, however,CitymustmeetandconferwithUSOCtoaddressanyadverseimpactstoUSOC sponsored elite athletes caused by City operations. [Section 6 and Exhibit C] Note:Underthecurrentbusinessmodel,theexistingandtobeconstructeddormswouldbe programmedandrentedtoUSOC-sponsoredNationalGoverningBodies(NGB’s),non-USOC sponsoredNGBs,internationalathletes,andtocollegeandhighschoolteams/athletesfor trainingandsportclinics.Anincreasednumberof“SpecialEvents”arealsocontemplated. Non-USOCusers(usersotherthanUSOC-sponsoredNGB’s)wouldbecontractedwithand billedseparatelyatnegotiated“market”rates.RevenuesgeneratedfromCity’sactivities would be over and above USOC’s $3 million minimum payment. 5.Modifications to or Transfers of the Facility CityshallconsultwithUSOCpriortoanymaterialmodificationtoortransferofallorany portionoftheFacilitytoensurethatnosuchactionwillhaveanadversematerialimpacton EliteAthleteStandards.AnyCitytransferofFacilityproperty/equipmentpriorto2025could triggerareductioninUSOC’s$3millionMinimumCommitment,andwouldrequireasharingof gross proceeds from such sale with USOC per an agreed upon formula. [Section 4.B] Note:CityhasnoimmediateplanstomodifytheFacilitybeyondtheadditionalhousingunits anddayusefacilitydescribedintheTransferAgreementsummary,Section3.c.,above.Other capitalimprovementscouldbedesirable(forexample,apoolcomplex),andpartnershipsfor thedevelopmentofsuchfacilitieswillbeexploredwithPLTandothers.Cityhasnocurrentor futureplanstotransferanyportionoftheFacility.Therevenuesharingprovisionsare included to protect the USOC in the unlikely event of such a transfer. 6.Facility Name, Olympic Marks and Sponsors [Section 28] a.The initial name of the facility shall be the “Chula Vista Elite Athlete Training Center.” b.USOCagreestodesignatetheFacilityasanofficial“U.S.OlympicandParalympicCity of Chula Vista Printed on 3/8/2016Page 6 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 97 File#:16-0101, Item#: 11. b.USOCagreestodesignatetheFacilityasanofficial“U.S.OlympicandParalympic TrainingSite.”CitycanusethisdesignationonCentersignage,bannersandpromotional materials per standards established by USOC. c.CitycancreateandsellgoodswiththeOlympicTrainingSitedesignationsubjectto approved standards and provided that City uses USOC-licensed producers. d.CityagreestoworkwithUSOCtogiveUSOCsponsorspriorityopportunitiesforspecial eventandfacilitysponsorships.Subjecttothis,Citycanalsocontractwithnon-USOC sponsorsforspecialeventandfacilitysponsorships;provided,however,Citymusttake actionstoensurenon-USOCsponsorsdonotreceivethebenefitsofassociationwithany Olympic marks. Note:TheseprovisionsreflectasubstantialeffortbytheUSOCtoprotectthevalueofits Olympicmarks,whileatthesametimeprovidingtheCitywiththeflexibilityitneedstomarket theFacilityandtogeneratetherevenuesitsneedsfornearandlongtermssustainable operations. 7.Operations Plan USOCandCityagreetocoordinatereservationssystemsandfacilityresourceallocationto assureUSOCeffectiveuseofitsMinimumCommitmentcapacity,andCity’sabilityto effectivelymarketits“DiscretionaryCapacity”toNGBsandotherfacilityusers.TheFacility canbeprogrammedandusedforspecialeventsandothernon-Olympictrainingnotmaterially adversetoeliteathletetraining.Thepartieswillmeetandconfertoresolveanydisputes regarding operations, with binding arbitration if necessary. [Sections 6, 31 and Exhibit E] 8.Non-Discrimination and Athlete Safety CityandUSOCshallimposeandenforcestandardsfornon-discriminationandathlete safety, at least per agreed minimum standards. [Sections 29 and 30] 9.Insurance and Indemnities Eachpartytoprovideinsuranceperprescribedindustrystandards,andtoindemnifytheother for negligence or misconduct. [Sections 12 and 13] Operator Agreement with PLT The Operator Agreement with PLT will include the following terms, among others to be negotiated: 1.City will assign its primary rights and obligations under the Core Agreement to PLT, with certain reservations of rights and responsibilities. 2. PLT will then become responsible for day to day operations of the Facility, subject to the terms of the Core Agreement and a Business Plan pre-approved by City. 3.City will reserve access to the Facility for general oversight purposes, and for a certain number City of Chula Vista Printed on 3/8/2016Page 7 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 98 File#:16-0101, Item#: 11. (or type) of City (or City sponsored) events. 4.PLT shall bear responsibility for Center operating deficits with an opportunity to recover costs incurred by PLT not covered by Facility revenues out of future operations, within defined parameters. 5.Facility surplus revenues shall be reinvested in the Center, used for purposes consistent with the advancement of athletics and athletic performance, and/or otherwise consistent with PLT defined purposes. 6.Terms for discretionary capital improvements shall be negotiated on a case by case basis. 7.The term of the agreement shall run concurrent with the Core Agreement unless otherwise agreed. Next Steps WithCityCouncilapproval,staffwillproceedtofinalizetheagreementspresentedforsignature,and thenfinalizeandbringbackforCityCouncilconsiderationtheOperatorAgreementwithPLTandthe HousingAgreementwithBaldwin&Sons.ThiswilloccurpriortoMarch31st.Staffwillconcurrently becompletingits“duediligence’withrespecttothelegalandphysicalconditionoftheOTCProperty anditsImprovements,andseekingtofinalizetermsforEaston’sapprovalofthetransferofthe Eastern Archery Center Agreements. DECISION-MAKER CONFLICT StaffhasreviewedthepropertyholdingsoftheCityCouncilmembersandhasfoundnoproperty holdingswithin500feetoftheboundariesofthepropertywhichisthesubjectofthisaction. Consequently,thisitemdoesnotpresentadisqualifyingrealproperty-relatedfinancialconflictof interestunderCaliforniaCodeofRegulationsTitle2,section18702.2(a)(11),forpurposesofthe 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.Theoperationsofthe OlympicTrainingCentersupporttheEconomicVitalitygoalastheCitywillbeabletomaximizethe use of this valuable asset as an economic driver. CURRENT YEAR FISCAL IMPACT Approving the terms of the agreement will have no fiscal impact in the current fiscal year. ONGOING FISCAL IMPACT Theongoingfiscalimpactswillbedeterminedoncethenegotiationswiththeoperatorhavebeen finalized.TheagreementwiththeoperatorwillbebroughtbackforCityCouncilconsiderationat which time a fiscal analysis will be provided. City of Chula Vista Printed on 3/8/2016Page 8 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 99 File#:16-0101, Item#: 11. ATTACHMENTS -Agreement of Property Transfer and Joint Escrow Instructions [Chula Vista Training Center] -Core Agreement Staff Contact: Kelley Bacon, Deputy City Manager City of Chula Vista Printed on 3/8/2016Page 9 of 9 powered by Legistar™2016-03-22 Agenda Packet Page 100 RESOLUTION NO. 2016-__________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TERMS FOR AN AGREEMENT WITH POINT LOMA TRUST FOR THE OPERATION OF THE CHULA VISTA ELITE ATHLETE TRAINING CENTER WHEREAS, the United States Olympic Committee (“USOC”) owns the Olympic Training Center (“OTC” or “CVOTC”) located in the City of Chula Vista; and WHEREAS, the USOC wishes to transfer to the City the OTC, including the land upon which the OTC is situated and OTC operations, as set forth in an attendant agreement; and WHEREAS, the City desires to accept said transfer and continue to operate the OTC as a training site for Olympic and elite level athletes; and WHEREAS, to further the goal of operating the OTC as a training site for Olympic and elite level athletes, the City desires to contract with Point Loma Trust (“PLT”) for said operations and seeks to enter in an operating agreement (“Operating Agreement”) with PLT; and WHEREAS, PLT was chosen to contract with via a selection process which began in July 2015, when the City issued a Request for Expressions of Interest (RFEI) for an operator. Eleven potential operators responded. Through a series of evaluations, the City and the USOC narrowed the selection and ultimately selected PLT, an affiliate of Point Loma Nazarene University (“PLNU”), as its preferred operator; and WHEREAS, PLT was selected because of PLNU’s experience with operating high quality sports facilities, buildings, residence halls and dining facilities; its understanding of the need to market the facility for additional revenue generation that complements the core business such as increased use by international athletes, grass root camps, hosting additional NGB’s, sport and teambuilding clinics; its existing investment in Chula Vista with their relationship with Southwestern College; its acceptance and desire to embrace and promote the vision of the City and the USOC regarding the Olympic movement and support of Olympic and elite level athletes training at the center; its desire to exceed the expectations of USOC and the City; its desire to develop strategic partnerships with, and to maintain or enhance service levels for Easton Archery Center of Excellence; and its willingness to bear risks of operating deficits; and WHEREAS, City Staff, in this Resolution’s attendant Staff report, presented proposed terms (“Terms”) for said Operating Agreement between the City and PLT; and NOW, THEREFORE BE IT RESOLVED by City Council of the City of Chula Vista, that it does hereby approve the proposed Terms for an Operating Agreement between the City and PLT, in substantially the form presented to City Counsel via this Resolution’s attendant Staff report, with such minor modifications as maybe required or approved by the City Attorney, and authorizes and directs the City’s negotiating team to proceed with negotiations with PLT, 2016-03-22 Agenda Packet Page 101 Resolution No. 2016-__________ Page 2 pursuant to the Terms presented, and directs Staff to return as soon as reasonably possible to present the final Operating Agreement to City Council for consideration and approval. Presented by: Approved as to form by: _________________________________ ___________________________ Kelley K. Bacon Glen R. Googins Deputy City Manager City Attorney 2016-03-22 Agenda Packet Page 102