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HomeMy WebLinkAboutAgenda Packet 2017_10_17October 17, 2017City Council Agenda PRESENTATION OF A PROCLAMATION COMMENDING CARLOS “DANNY” CARREON AS THE 2017 CHULA VISTA VETERAN OF THE YEAR 17-0454B.17-0454 UPDATE ON THIRD AVENUE VILLAGE ASSOCIATION ACTIVITIES 17-0459C.17-0459 CONSENT CALENDAR (Items 1 - 6) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. WRITTEN COMMUNICATIONS Letters of resignation: · Eric Mosolgo, Growth Management Oversight Commission · Leslie Smith, Board of Appeals and Advisors 17-04651.17-0465 Council accept the resignations. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF A CALRECYCLE WASTE TIRE ENFORCEMENT GRANT APPLICATION IN PARTNERSHIP WITH THE CITY OF SAN DIEGO AND AUTHORIZING THE CITY OF SAN DIEGO TO ACT ON BEHALF OF THE CITY OF CHULA VISTA TO SECURE GRANT FUNDS AND IMPLEMENT THE GRANT 17-03402.17-0340 Economic Development Department Department: The Project qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Staff Recommendation: Page 2 City of Chula Vista Printed on 10/12/2017 2017-10-17 Agenda Packet Page 2 October 17, 2017City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A CITY COUNCIL POLICY REGARDING ELECTRONIC SIGNATURE USE 17-04103.17-0410 City Clerk, Finance & Information Technology 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 resolution. Staff Recommendation: A. RESOLUTION OF THE MUNICIPAL FINANCING AUTHORITY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) B. RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) C. RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) 17-04404.17-0440 City Clerk 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: Authorities and Agency adopt the resolutions. Staff Recommendation: Page 3 City of Chula Vista Printed on 10/12/2017 2017-10-17 Agenda Packet Page 3 October 17, 2017City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE IMPLEMENTATION AGREEMENT BETWEEN THE CITY AND THE ORGANIZED CRIME DRUG ENFORCEMENT TASK FORCE TO SUPPORT THE SAN DIEGO REGION STRIKE FORCE AND APPROVING THE THIRD AMENDMENT TO THE BUILDING LEASE 17-04435.17-0443 Police 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 resolution. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PURCHASE AGREEMENT BETWEEN THE CITY AND NATIONAL AUTO FLEET GROUP INC. IN THE AMOUNT OF $385,396.46 FOR THE PURCHASE OF FIFTEEN (15) NISSAN LEAF SV HATCHBACKS 17-04606.17-0460 Public Works 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 resolution. Staff Recommendation: 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. Page 4 City of Chula Vista Printed on 10/12/2017 2017-10-17 Agenda Packet Page 4 October 17, 2017City Council Agenda ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE CITY’S INTENTION TO FORM UTILITY UNDERGROUNDING DISTRICTS ON F STREET FROM BAY BOULEVARD TO BROADWAY (UUD #141) AND ON F STREET FROM BROADWAY TO FOURTH AVENUE (UUD #142) AND SETTING THE DATE OF THE PUBLIC HEARING FOR NOVEMBER 21, 2017 17-00017.17-0001 Engineering Department Department: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council accept the report and adopt the resolution. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING IN CONCEPT AN INCENTIVE PACKAGE TO ENTICE AMAZON TO LOCATE ITS PROPOSED NEW CORPORATE HEADQUARTERS IN CHULA VISTA AND AUTHORIZING AND DIRECTING STAFF TO NEGOTIATE AND BRING BACK FOR COUNCIL ACTION FINAL AGREEMENTS IMPLEMENTING SAME 17-04468.17-0446 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. In addition, notwithstanding the foregoing, the “Project” also qualifies for an Exemption pursuant to Section 15061(b) (3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Staff Recommendation: CITY MANAGER’S REPORTS MAYOR’S REPORTS RATIFICATION OF APPOINTMENT OF MARK VALEN TO THE SOUTH BAY WILDLIFE ADVISORY GROUP 17-04729.17-0472 Page 5 City of Chula Vista Printed on 10/12/2017 2017-10-17 Agenda Packet Page 5 October 17, 2017City Council Agenda COUNCILMEMBERS’ COMMENTS CITY ATTORNEY'S REPORTS ADJOURNMENT to a Special City Council Workshop on October 26, 2017, at 6:00 p.m., in the Council Chambers; and thence to a Special City Council Workshop on November 2, 2017, at 6:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(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 6 City of Chula Vista Printed on 10/12/2017 2017-10-17 Agenda Packet Page 6 City of Chula Vista Staff Report File#:17-0418, Item#: A. PRESENTATION BY PARADE DIRECTOR LIEUTENANT COMMANDER HENRY A. MARTINEZ II AND VETERANS ELEMENTARY SCHOOL PRINCIPAL FROYLAN VILLANUEVA OF THE 2017 VETERANS DAY PARADE City of Chula Vista Printed on 10/12/2017Page 1 of 1 powered by Legistar™2017-10-17 Agenda Packet Page 7 City of Chula Vista Staff Report File#:17-0454, Item#: B. PRESENTATION OF A PROCLAMATION COMMENDING CARLOS “DANNY” CARREON AS THE 2017 CHULA VISTA VETERAN OF THE YEAR City of Chula Vista Printed on 10/12/2017Page 1 of 1 powered by Legistar™2017-10-17 Agenda Packet Page 8 City of Chula Vista Staff Report File#:17-0459, Item#: C. UPDATE ON THIRD AVENUE VILLAGE ASSOCIATION ACTIVITIES City of Chula Vista Printed on 10/12/2017Page 1 of 1 powered by Legistar™2017-10-17 Agenda Packet Page 9 City of Chula Vista Staff Report File#:17-0465, Item#: 1. WRITTEN COMMUNICATIONS Letters of resignation: ·Eric Mosolgo, Growth Management Oversight Commission ·Leslie Smith, Board of Appeals and Advisors RECOMMENDED ACTION Council accept the resignations. City of Chula Vista Printed on 10/12/2017Page 1 of 1 powered by Legistar™2017-10-17 Agenda Packet Page 10 2017-10-17 Agenda Packet Page 11 DATE: October 5, 2017 TO: Kim Vander Bie FROM: Eric Mosolgo, PE, CFM SUBJECT: City of Chula Vista Growth Management Oversight Commission ________________________________________________________ Effective immediately, I am resigning from the City of Chula Vista’s Growth Management Oversight Commission (GMOC). I appreciate the opportunity to participate on the GMOC since 2013 and having the opportunity to deliver the commission’s annual report to the City Council earlier this year. The experience has been productive overall, but I do have some concerns as I mentioned to you earlier. Specifically, I do not believe the City provides all sections of the GMOC review process equal importance. In the area of the report that most closely matches my expertise, Drainage, the City has consistently returned duplicate responses that fail to address serious issues. Most troubling is the lack of backing data to support the City’s responses. This is not a single year issue. The City’s responses to this section have been consistently vague and unenlightening. It has been interesting reviewing some of the other sections of the GMOC reports over the years. Thank you for all your assistance. It has been nice working with you and the other commissioners. I wish you all the best. Eric Mosolgo, PE, CFM 2017-10-17 Agenda Packet Page 12 City of Chula Vista Staff Report File#:17-0340, Item#: 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF A CALRECYCLE WASTE TIRE ENFORCEMENT GRANT APPLICATION IN PARTNERSHIP WITH THE CITY OF SAN DIEGO AND AUTHORIZING THE CITY OF SAN DIEGO TO ACT ON BEHALF OF THE CITY OF CHULA VISTA TO SECURE GRANT FUNDS AND IMPLEMENT THE GRANT RECOMMENDED ACTION Council adopt the resolution. SUMMARY In 1989 the California Legislature enacted comprehensive requirements for the storage and disposal of waste tires. The California Integrated Waste Management Board, now CalRecycle was charged with responsibility for tire pile stabilization and remediation where public health and safety and the environment may be at risk. Consequently, CalRecycle adopted regulations to establish and enforce waste tire storage standards. CalRecycle has delegated the responsibility for the administration of the enforcement, compliance and surveillance activities at waste tire facilities to local solid waste enforcement agencies and cities and counties. To ensure a stable source of funding for these activities, CalRecycle provides a non- competitive Waste Tire Enforcement Grant program. The City of San Diego-Solid Waste Local Enforcement Agency (LEA) is the lead agency for this program in San Diego County. Staff is requesting approval to partner with the City of San Diego in applying for this purpose specified grant and future applications for CalRecycle Waste Tire Enforcement Grants through June 30, 2022. This is the eighth year Chula Vista has participated in this program. ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Determination The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has determined that the activity is covered by the general rule pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. CEQA applies only to projects which have the potential for causing a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Therefore, because the proposal consists of a grant funding solicitation without the assurance that these funds will be procured and because the purpose City of Chula Vista Printed on 10/12/2017Page 1 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 13 File#:17-0340, Item#: 2. funding solicitation without the assurance that these funds will be procured and because the purpose of the grant funds, if obtained, is to provide accountability for monitoring the movement of waste and used fire loads generated and transported within the San Diego region, it can be seen with the certainty that the activity in question will not have significant effect on the environment, Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Public Resources Code sections 40000 et seg. authorize the Department of Resources, Recycling and Recovery (CalRecycle) to administer various Grant Programs (Grants) in furtherance of the State of California’s (State) efforts to reduce, recycle and reuse solid waste generated in the State, thereby preserving landfill capacity and protecting public health and safety and the environment. According to CalRecycle, California is faced with the significant challenge of diverting or safely managing more than 40 million reusable or waste tires generated each year. It is estimated that 1.5 million waste tires have been illegally dumped or stockpiled. These stockpiles pose a potential threat to public health, safety and the environment. In 1989 the California Legislature enacted comprehensive requirements for the storage and disposal of waste tires. CalRecycle was charged with responsibility for tire pile stabilization and remediation where public health and safety and the environment may be at risk. Consequently, CalRecycle adopted regulations to establish and enforce waste tire storage and handling standards. Public Resources Code 42961.5 required CalRecycle to develop a “California Uniform Waste and Used Tire Manifest” system. Its purpose is to provide accountability for monitoring the movement of waste and used tires loads generated and transported within California. Discrepancies are actively investigated and if necessary regulations are strictly enforced. The maximum civil penalties for violations of the waste tire handling and manifesting requirements is $25,000 per violation per day as described in Public Resources Code Section 42962, and administrative penalties are $5,000 per violation per day. CalRecycle has delegated the responsibility for the administration of the enforcement, compliance and surveillance activities at the waste tire facilities to local solid waste enforcement agencies. The central objective of facility, site and hauler inspections is to achieve compliance through oversight and education to the greatest extent possible and to provide accurate information for entry into statewide database. Inspections may be performed by CalRecycle staff or by waste tire enforcement grantees. To ensure a stable source of funding for these activities, CalRecycle provides a non-competitive Waste Tire Enforcement Grant Program. Each year there is approximately six million dollars available for the grant program. Eligible applicants may request up to a total of $300,000. To be eligible for grant money the application must have 50 or more waste tire sites in its jurisdiction and must be one of the following: 1. A local Enforcement Agency City of Chula Vista Printed on 10/12/2017Page 2 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 14 File#:17-0340, Item#: 2. 2. An Environmental Health Agency 3. A Code Enforcement Agency The cities of Chula Vista, National City and Imperial Beach do not meet all the eligibility requirements to apply for the funding on their own. San Diego staff invited the South Bay jurisdictions to partner for this program. The San Diego Local Enforcement Agency has been operating a Waste Tire Enforcement program for some time. San Diego Local Enforcement Agency staff performs the initial inspections and follow- up inspections for all waste tire facilities and sites. In the event of a non-compliance issue San Diego staff notifies the partner jurisdiction and CalRecycle. Enforcement activities are then pursued at the local level. Staff is requesting Council approval for the following: ·Authorize the City of Chula Vista to participate in the partnership grant. ·Authorize the City of San Diego conduct waste tire enforcement activities within the jurisdictional boundaries of the City of Chula Vista during the terms of the Local Government Waste Tire Enforcement Grants though June 30, 2022. ·Allow the City of San Diego to submit grant documents to CalRecycle for the Local Government Waste Tire Enforcement Grant on Chula Vista’s behalf for the 24th Grant Cycle and future grant cycles and to execute all Grant-related documents, including, but not limited to, Applications, Payment Requests, Agreements and Amendments necessary to secure Grant funds and implement and carry out the purposes specified in the Grant Applications through June 30, 2022. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). LINK TO STRATEGIC GOALS The Tire Enforcement grant supports the Operational Excellence and Healthy Community goals as it seeks to protect Chula Vista public spaces and private property from unlawful disposal of waste tires while partnering with a local jurisdiction to maximize efforts. CURRENT YEAR FISCAL IMPACT There is no current impact to the General Fund as a result of applying for and accepting this grant and implementing the work; no matching funds are required. ONGOING FISCAL IMPACT There are no ongoing impacts to the General Fund as a result of applying for and accepting this grant and implementing the work; no matching funds are required. City of Chula Vista Printed on 10/12/2017Page 3 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 15 File#:17-0340, Item#: 2. ATTACHMENTS 1. Cycle 24 Tire Enforcement grant Terms and Conditions 2. Procedures and Requirements 3. Grant Work Plan 4. City of San Diego Application Staff Contact: Manuel Medrano, Senior Recycling Specialist City of Chula Vista Printed on 10/12/2017Page 4 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 16 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF A CALRECYCLE WASTE TIRE ENFORCEMENT GRANT APPLICATION IN PARTNERSHIP WITH THE CITY OF SAN DIEGO AND AUTHORIZING THE CITY OF SAN DIEGO TO ACT ON BEHALF OF THE CITY OF CHULA VISTA TO SECURE GRANT FUNDS AND IMPLEMENT THE GRANT WHEREAS, Public Resources Code sections 40000 et seq. authorize the Department of Resources, Recycling and Recovery (CalRecycle) to administer various Grant Programs (Grants) in furtherance of the State of California’s (State) efforts to reduce, recycle and reuse solid waste generated in the State, thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS, funds are allocated and available from CalRecycle for Grants to cities, counties, and city and counties with regulatory authority within the city and county government to perform enforcement/compliance and surveillance activities of entities and/or individuals involved with the waste tire industry; and WHEREAS, CalRecycle has been delegated the responsibility for the administration of the Program within the State; and WHEREAS, in furtherance of this authority CalRecycle is required to establish necessary procedures governing the application, awarding and management of the Grants; and WHEREAS, procedures established by the State and CalRecycle require each applicant's governing body to certify by resolution its approval of the submittal of a grant application to CalRecycle; and WHEREAS, to be eligible for grant money, the application must have 50 or more waste tire sites in its jurisdiction and must be either a local Enforcement Agency, an Environmental Health Agency, or a Code Enforcement Agency; and WHEREAS, the City of San Diego invited the cities of Chula Vista, National City and Imperial Beach to partner with it for this program, since the cities do not meet all the eligibility requirements to apply for the funding on their own. NOW, THEREFORE, BE IT RESOLVED that the City of Chula Vista authorizes the City of San Diego to submit to the California Department of Resources Recycling and Recovery a collaborative application for the 2017-10-17 Agenda Packet Page 17 Local Government Waste Tire Enforcement Grant on Chula Vista’s behalf for the 24th Grant Cycle and future grant cycles, through June 30, 2022. BE IT FURTHER RESOLVED, that the City of Chula Vista authorizes the City of San Diego to execute all Grant-related documents, including, but not limited to, Applications, Payment Requests, Agreements and Amendments necessary to secure Grant funds and implement and carry out the purposes specified in the Grant Applications through June 30, 2022 on behalf of the City of Chula Vista. BE IT FURTHER RESOLVED, that the City of Chula Vista authorizes the City of San Diego to conduct waste tire enforcement activities within the jurisdictional boundaries of the City of Chula Vista during the terms of the Local Government Waste Tire Enforcement Grants through June 30, 2022. Presented by Approved as to form by ___________________________ ________________________ Eric Crockett Glen A. Googins Economic Development Director City Attorney 2017-10-17 Agenda Packet Page 18 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 1 EXHIBIT A TERMS AND CONDITIONS Local Government Waste Tire Enforcement Grant Program The following terms used in this Grant Agreement (Agreement) have the meanings given to them below, unless the context clearly indicates otherwise:  "CalRecycle" means the Department of Resources Recycling and Recovery.  "Director" means the Director of CalRecycle or his or her designee.  "Grant Agreement" and "Agreement" means all documents comprising the agreement between CalRecycle and the grantee for this grant.  "Grant Manager" means CalRecycle staff person responsible for monitoring the grant.  "Grantee" means the recipient of funds pursuant to this Agreement.  "Program" means the Local Government Waste Tire Enforcement Grant Program.  "State" means the State of California, including, but not limited to, CalRecycle and/or its designated officer. AIR OR WATER POLLUTION VIOLATION The grantee shall not be: (a) In violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district. (b) Out of compliance with any final cease and desist order issued pursuant to Water Code Section 13301 for violation of waste discharge requirements or discharge prohibitions. (c) Finally determined to be in violation of provisions of federal law relating to air or water pollution. AMENDMENT No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required. No oral understanding or agreement not incorporated into this Agreement is binding on any of the parties. This Agreement may be amended, modified or augmented by mutual consent of the parties, subject to the requirements and restrictions of this paragraph. AMERICANS WITH DISABILITIES ACT The grantee assures the state that it complies with the Americans with Disabilities Act of 1990 (ADA) (42 U.S.C.§ 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. ASSIGNMENT, SUCCESSORS, AND ASSIGNS (a) This Agreement may not be assigned by the grantee, either in whole or in part, without CalRecycle’s prior written consent. (b) The provisions of this Agreement shall be binding upon and inure to the benefit of CalRecycle, the grantee, and their respective successors and assigns. 2017-10-17 Agenda Packet Page 19 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 2 AUDIT/RECORDS ACCESS The grantee agrees that CalRecycle, the Department of Finance, the Bureau of State Audits, or their designated representative(s) shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment date or grant term end date, whichever is later, unless a longer period of records retention is stipulated, or until completion of any action and resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. The grantee agrees to allow the designated representative(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, the grantee agrees to include a similar right of the State to audit records and interview staff in any contract or subcontract related to performance of this Agreement. [It may be helpful to share the Terms and Conditions (Exhibit A) and Procedures and Requirements (Exhibit B) with your finance department, contractors and subcontractors. Examples of audit documentation include, but are not limited to: expenditure ledger, payroll register entries and time sheets, personnel expenditure summary form, travel expense log, paid warrants, contracts, change orders, invoices, and/or cancelled checks.] AUTHORIZED REPRESENTATIVE The grantee shall continuously maintain a representative vested with signature authority authorized to work with CalRecycle on all grant-related issues. The grantee shall, at all times, keep the Grant Manager informed as to the identity and contact information of the authorized representative. AVAILABILITY OF FUNDS CalRecycle's obligations under this Agreement are contingent upon and subject to the availability of funds appropriated for this grant. BANKRUPTCY/DECLARATION OF FISCAL EMERGENCY NOTIFICATION If the grantee files for protection under Chapter 9 of the U.S. Bankruptcy Code (11 U.S.C. §901 et seq.) or declares a fiscal emergency at any time during the Grant Term, the grantee shall notify CalRecycle within 15 days of such filing or declaration, pursuant to the procedures set forth in the section entitled “Communications” herein. CHARTER CITIES If the grantee is a charter city, a joint powers authority that includes one or more charter cities, or the regional lead for a regional program containing one or more charter cities, the grantee shall not receive any grant funding if such funding is prohibited by Labor Code section 1782. If it is determined that Labor Code section 1782 prohibits funding for the grant project, this Agreement will be terminated and any disbursed grant funds shall be returned to CalRecycle. CHILD SUPPORT COMPLIANCE ACT For any agreement in excess of $100,000, the grantee acknowledges that: (a) The grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and 2017-10-17 Agenda Packet Page 20 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 3 family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code Section 5200 et seq. (b) The grantee, to the best of its knowledge, is fully complying with the earnings assignment orders of all employees, and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. COMMUNICATIONS All communications from the grantee to CalRecycle shall be directed to the Grant Manager. All notices, including reports and payment requests, required by this Agreement shall be given in writing by email, letter, or fax to the Grant Manager as identified in the Procedures and Requirements (Exhibit B). If an original document is required, prepaid mail or personal delivery to the Grant Manager is r equired following the email or fax. COMPLIANCE The grantee shall comply fully with all applicable federal, state, and local laws, ordinances, regulations, and permits. The grantee shall provide evidence, upon request, that all local, state, and/or federal permits, licenses, registrations, and approvals have been secured for the purposes for which grant funds are to be expended. The grantee shall maintain compliance with such requirements throughout the Grant Term. The grantee shall ensure that the requirements of the California Environmental Quality Act are met for any approvals or other requirements necessary to carry out the terms of this Agreement. The grantee shall ensure that all of grantee’s contractors and subcontractors have all local, state, and/or federal permits, licenses, registrations, certifications, and approvals required to perform the work for which they are hired. Any deviation from the requirements of this section shall result in non - payment of grant funds. CONFLICT OF INTEREST The grantee needs to be aware of the following provisions regarding current or former state employees. If the grantee has any questions on the status of any person rendering services or involved with this Agreement, CalRecycle must be contacted immediately for clarification. Current State Employees (Pub. Contract Code, § 10410): (a) No officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required as a condition of regular state employment. (b) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services. Former State Employees (Pub. Contract Code, § 10411): (a) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. 2017-10-17 Agenda Packet Page 21 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 4 (b) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the twelve month period prior to his or her leaving state service. If the grantee violates any provisions of above paragraphs, such action by the grantee shall render this Agreement void. (Pub. Contract Code, § 10420). CONTRACTORS/SUBCONTRACTORS The grantee will be entitled to make use of its own staff and such contractors and subcontractors as are mutually acceptable to the grantee and CalRecycle. Any change in contractors or subcontractors must be mutually acceptable to the parties. Immediately upon termination of any such contract or subcontract, t he grantee shall notify the Grant Manager. Nothing contained in this Agreement or otherwise, shall create any contractual relation between CalRecycle and any contractors or subcontractors of grantee, and no agreement with contractors or subcontractors shall relieve the grantee of its responsibilities and obligations hereunder. The grantee agrees to be as fully responsible to CalRecycle for the acts and omissions of its contractors and subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the grantee. The grantee's obligation to pay its contractors and subcontractors is an independent obligation from CalRecycle’s obligation to make payments to the grantee. As a result, CalRecycle shall have no obligation to pay or to enforce the payment of any moneys to any contractor or subcontractor. COPYRIGHTS Grantee retains title to any copyrights or copyrightable material produced pursuant to this Agreement. grantee hereby grants to CalRecycle a royalty-free, nonexclusive, transferable, world-wide license to reproduce, translate, and distribute copies of any and all copyrightable materials produced pursuant this Agreement, for nonprofit, non - commercial purposes, and to have or permit others to do so on CalRecycle’s behalf. Grantee is responsible for obtaining any necessary licenses, permissions, releases or authorizations to use text, images, or other materials owned, copyrighted, or trademarked by third parties and for extending such licenses, permissions, releases, or authorizations to CalRecycle pursuant to this section. CORPORATION QUALIFIED TO DO BUSINESS IN CALIFORNIA When work under this Agreement is to be performed in California by a corporation, the corporation shall be in good standing and currently qualified to do business in the State. "Doing business" is defined in Revenue and Taxation Code Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. DISCHARGE OF GRANT OBLIGATIONS The grantee's obligations under this Agreement shall be deemed discharged only upon acceptance of the final report by CalRecycle. If the grantee is a non-profit entity, the grantee’s Board of Directors shall accept and certif y as accurate the final report prior to its submission to CalRecycle. 2017-10-17 Agenda Packet Page 22 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 5 DISCLAIMER OF WARRANTY CalRecycle makes no warranties, express or implied, including without limitation, the implied warranties of merchantability and fitness for a particular purpose, regarding the materials, equipment, services or products purchased, used, obtained and/or produced with funds awarded under this Agreement, whether such materials, equipment, services or products are purchased, used, obtained and/or produced alone or in com bination with other materials, equipment, services or products. No CalRecycle employees or agents have any right or authority to make any other representation, warranty or promise with respect to any materials, equipment, services or products, purchased, used, obtained, or produced with grant funds. In no event shall CalRecycle be liable for special, incidental or consequential damages arising from the use, sale or distribution of any materials, equipment, services or products purchased or produced with grant funds awarded under this Agreement. DISCRETIONARY TERMINATION The Director shall have the right to terminate this Agreement at his or her sole discretion at any time upon 30 days written notice to the grantee. Within 45 days of receipt of written notice, grantee is required to: (a) Submit a final written report describing all work performed by the grantee. (b) Submit an accounting of all grant funds expended up to and including the date of termination. (c) Reimburse CalRecycle for any unspent funds. DISPUTES In the event of a dispute regarding performance under this Agreement or interpretation of requirements contained therein, the grantee may, in addition to any other remedies that may be available, provide written notice of the particulars of such dispute to the Branch Chief of Financial Resources Management Branch, Department of Resources Recycling and Recovery, PO Box 4025, Sacramento, CA 95812-4025. Such written notice must contain the grant number. Unless otherwise instructed by the Grant Manager, the grantee shall continue with its responsibilities under this Agreement during any dispute. DRUG-FREE WORKPLACE CERTIFICATION The person signing this Agreement on behalf of the grantee certifies under penalty of perjury under the laws of California, that the grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and will provide a drug-free workplace by taking the following actions: (a) Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions that will be taken against employees for violations. (b) Establish a drug-free awareness program to inform employees about all of the following: (1) The dangers of drug abuse in the workplace. (2) The grantee's policy of maintaining a drug-free workplace. (3) Any available counseling, rehabilitation, a nd employee assistance programs. (4) Penalties that may be imposed upon employees for drug abuse violations. (c) Require that each employee who works on the grant: (1) Receive a copy of the drug-free policy statement of the grantee. 2017-10-17 Agenda Packet Page 23 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 6 (2) Agrees to abide by the terms of such statement as a condition of employment on the grant. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and grantee may be ineligible for award of any future State agreements if CalRecycle determines that the grantee has made a false certification, or violated the certif ication by failing to carry out the requirements as noted above. EFFECTIVENESS OF AGREEMENT This Agreement is of no force or effect until signed by both parties. ENTIRE AGREEMENT This Agreement supersedes all prior agreements, oral or written, made with respect to the subject hereof and, together with all attachments hereto, contains the entire agreement of the parties. ENVIRONMENTAL JUSTICE In the performance of this Agreement, the grantee shall conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the state. FAILURE TO PERFORM AS REQUIRED BY THIS AGREEMENT CalRecycle will benefit from the grantee's full compliance with the terms of this Agreement only by the grantee's: (a) Investigation and/or application of technologies, processes, and devices which support reduction, reuse, and/or recycling of wastes. (b) Cleanup of the environment. (c) Enforcement of solid waste statutes and regulations, as applicable. Therefore, the grantee shall be in compliance with this Agreement only if t he work it performs results in: (a) Application of information, a process, usable data or a product which can be used to aid in reduction, reuse, and/or recycling of waste. (b) The cleanup of the environment. (c) The enforcement of solid waste statutes and regulations, as applicable. If the Grant Manager determines that the grantee has not complied with the Grant Agreement, the grantee may forfeit the right to reimbursement of any grant funds not already paid by CalRecycle, including, but not limited to, the 10 percent withhold. FORCE MAJEURE Neither CalRecycle nor the grantee, its contractors, vendors, or subcontractors, if any, shall be responsible hereunder for any delay, default, or nonperformance of this Agreement, to the extent that such delay, default, or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, flood, or other contingencies unforeseen by CalRecycle or the grantee, its contractors, vendors, or subcontractors, and beyond the reasonable control of such party. 2017-10-17 Agenda Packet Page 24 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 7 FORFEIT OF GRANT FUNDS/REPAYMENT OF FUNDS IMPROPERLY EXPENDED If grant funds are not expended, or have not been expended, in accordance with this Agreement, or if real or personal property acquired with grant funds is not being used, or has not been used, for grant purposes in accordance with this Agreement, the Director, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the 10 percent withhold, and/or to repay to CalRecycle any funds improperly expended. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES The grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures. GRANT MANAGER The Grant Manager’s responsibilities include monitoring grant progress, and reviewing and approving Grant Payment Requests and other documents delivered to CalRecycle pursuant to this Agreement. The Grant Manager may monitor grantee performance to ensure that the grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Manager does not have the authority to approve any deviation from or revision to the Terms and Conditions (Exhibit A) or the Procedures and Requirements (Exhibit B), unless such authority is expressly stated in the Procedures and Requirements (Exhibit B). GRANTEE ACCOUNTABILITY The grantee is ultimately responsible and accountable for the manner in which the grant funds are utilized and accounted for and the way the grant is administered, even if the grantee has contracted with another organization, public or private, to administer or operate its grant program. In the event an audit should determine that grant funds are owed to CalRecycle, the grantee is responsible for repayment of the funds to CalRecycle. GRANTEE'S INDEMNIFICATION AND DEFENSE OF THE STATE The grantee agrees to indemnify, defend and save harmless the state and CalRecycle, and their officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the grantee as a result of the performance of this Agreement. GRANTEE'S NAME CHANGE A written amendment is required to change the grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change, CalRecycle will process the amendment. Payment of Payment Requests presented with a new name cannot be paid prior to approval of the amendment. IN CASE OF EMERGENCY In the event of an emergency, or where there is an imminent threat to public health and safety or the environment, the grantee may choose, at its own risk, to incur grant- eligible expenses not previously included in the approved Budget, subject to 2017-10-17 Agenda Packet Page 25 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 8 subsequent approval by the Grant Manager of both the Budget change and the need to implement the Budget change on an emergency basis. The grantee shall notify the Grant Manager of the emergency and the Budget change at the earliest possible opportunity. CalRecycle reserves the right to accept or reject the grantee’s determination that the circumstances constituted an emergency or a threat to public health and safety or the environment. If the Grant Manager determines that the circumstances did not constitute an emergency or a threat to public health or safety, the Budget change will be disallowed. NO AGENCY RELATIONSHIP CREATED/INDEPENDENT CAPACITY The grantee and the agents and employees of grantee, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of CalRecycle. NO WAIVER OF RIGHTS CalRecycle shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by CalRecycle. No delay or omission on the part of CalRecycle in exercising any rights shall operate as a waiver of such right or any other right. A waiver by CalRecycle of a provision of this Agreement shall not prejudice or constitute a waiver of CalRecycle’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by CalRecycle, nor any course of dealing between CalRecycle and grantee, shall constitute a waiver of any of CalRecycle’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of CalRecycle is required under this Agreement, the granting of such consent by CalRecycle in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of CalRecycle. NON-DISCRIMINATION CLAUSE (a) During the performance of this Agreement, grantee and its contractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment on the bases enumerated in Government Code Section 12900 et seq. (b) The person signing this Agreement on behalf of the grantee certifies under penalty of perjury under the laws of California that the grantee has, unless exempted, complied with the nondiscrimination program requirements (Gov. Code, § 12990, subd. (a-f) and California Code of Regulations, Title 2, Section 8103). (Not applicable to public entities.) ORDER OF PRECEDENCE The performance of this grant shall be conducted in accordance with the Terms and Conditions (Exhibit A), Procedures and Requirements (Exhibit B), Project Summary/Statement of Use, Work Plan, and Budget of this Agreement, or other combination of Exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as “Terms”). Grantee’s CalRecycle-approved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply: (a) Grant Agreement Coversheet and any Amendments thereto (b) Terms and Conditions 2017-10-17 Agenda Packet Page 26 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 9 (c) Procedures and Requirements (d) Project Summary/Statement of Use (e) Budget (f) Work Plan (g) Grantee’s Application (h) All other attachments hereto, including any that are incorporated by reference. OWNERSHIP OF DRAWINGS, PLANS AND SPECIFICATIONS The grantee shall, at the request of CalRecycle or as specifically directed in the Procedures and Requirements (Exhibit B), provide CalRecycle with copies of any data, drawings, design plans, specifications, photographs, negatives, audio and video productions, films, recordings, reports, findings, recommendations, and memoranda of every description or any part thereof, prepared under this Agreement. Grantee hereby grants to CalRecycle a royalty-free, nonexclusive, transferable, world-wide license to reproduce, translate, and distribute copies of any and all such materials produced pursuant to this Agreement, for nonprofit, non-commercial purposes, and to have or permit others to do so on CalRecycle’s behalf. PAYMENT (a) The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Work Plan, if applicable, wh ich is attached hereto and incorporated herein by this reference. CalRecycle shall reimburse the grantee for only the work and tasks specified in the Work Plan or the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement. (b) The grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget, and shall obtain the Grant Manager’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application or the approved Budget prior to performing the changed work or incurring the changed cost. If the grantee fails to obtain such prior written approval, the Director, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. (c) The grantee shall request reimbursement in accordance with the procedures described in the Procedures and Requirements (Exhibit B). (d) Ten percent will be withheld from each Payment Request and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forf eiture of any such funds withheld pursuant to CalRecycle’s 10 percent) retention policy. (e) Lodgings, Meals and Incidentals: Grantee’s Per Diem eligible costs are limited to the amounts authorized in the California State Administrative Manual (contact the Grant Manager for more information). (f) Payment will be made only to the grantee. (g) Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements (Exhibit B). PERSONNEL COSTS If there are eligible costs pursuant to Exhibit B, Procedures and Requirements, any personnel expenditures to be reimbursed with grant funds must be computed based on 2017-10-17 Agenda Packet Page 27 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 10 actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for his or her regular job duties, including a proportionate share of any benefits to which the employee is entitled, unless otherwise specified in the Procedures and Requirements (Exhibit B). REAL AND PERSONAL PROPERTY ACQUIRED WITH GRANT FUNDS (a) All real and personal property, including equipment and supplies, acquired with grant funds shall be used by the grantee only for the purposes for which CalRecycle approved their acquisition for so long as such property is needed for su ch purposes, regardless of whether the grantee continues to receive grant funds from CalRecycle for such purposes. In no event shall the length of time during which such property, including equipment and supplies, acquired with grant funds, is used for the purpose for which CalRecycle approved its acquisition be less than five (5) years after the end of the grant term, during which time the property, including equipment and supplies, must remain in the State of California. (b) Subject to the obligations and conditions set forth in this section, title to all real and personal property acquired with grant funds, including all equipment and supplies, shall vest upon acquisition in the grantee. The grantee may be required to execute all documents required to provide CalRecycle with a security interest in any real or personal property, including equipment and supplies, and it shall be a condition of receiving this grant that CalRecycle shall be in first priority position with respect to the security interest on any such property acquired with the grant funds, unless pre- approved in writing by the Grant Manager that CalRecycle will accept a lower priority position with respect to the security interest on the property. Grantee shall inform any lender(s) from whom it is acquiring additional funding to complete the property purchase of this grant condition. (c) The grantee may not transfer Title to any real or personal property, including equipment and supplies, acquired with grant funds to any other entity without the express authorization of CalRecycle. (d) CalRecycle will not reimburse the grantee for the acquisition of equipment that was previously purchased with CalRecycle grant funds, unless the acquisition of such equipment with grant funds is pre-approved in writing by the Grant Manager. In the event of a question concerning the eligibility of equipment for grant funding, the burden will be on the grantee to establish the pedigree of the equipment. REASONABLE COSTS A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Consideration will be given to: (a) Whether the cost is of a type generally recognized as ordinary and nece ssary for the performance of the grant. (b) The restraints or requirements imposed by such factors as generally accepted sound business practices, arms-length bargaining, federal and state laws and regulations, and the terms and conditions of this Agreement. (c) Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, clients, and the public at large. (d) Significant deviations from the established practices of the organization which may unjustifiably increase the grant costs. 2017-10-17 Agenda Packet Page 28 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 11 RECYCLED-CONTENT PAPER All documents submitted by the grantee must be printed double-sided on recycled- content paper containing 100 percent post-consumer fiber. Specific pages containing full color photographs or other ink-intensive graphics may be printed on photographic paper. REDUCTION OF WASTE In the performance of this Agreement, grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate. REDUCTION OF WASTE TIRES Unless otherwise provided for in this Agreement, in the performance of this Agreement, for all purchases made with grant funds, including, but not limited to equipment and tire - derived feedstock, the grantee shall purchase and/or process only California waste tires and California waste tire-derived products. As a condition of final payment under this Agreement, the grantee must provide documentation substantiating the source of the tire materials used during the performance of this Agreement to the Grant Manager. REIMBURSEMENT LIMITATIONS Under no circumstances shall the grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid fo r through another funding source. The grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other CalRecycle funded program. All costs charged against the Agreement shall be net of all applicable credits. The term “applicable credits” refers to those receipts or reductions of expenditures that operate to offset or reduce expense items that are reimbursable under this Agreement. Applicable credits may include, but are not necessarily limited to, rebates or allowances, discounts, credits toward subsequent purchases, and refunds. Grantee shall, where possible, deduct the amount of the credit from the amount billed as reimbursement for the cost, or shall deduct the amount of the credit from the total billed under a future invoice. RELIABLE CONTRACTOR DECLARATION Prior to authorizing any contractor or subcontractor to commence work under this Grant, the grantee shall submit to CalRecycle a Reliable Contractor Declaration (CalRecycle 168) from the contractor or subcontractor, signed under penalty of perjury, disclosing whether of any of the events listed in Section 17050 of Title 14, California Code of Regulations, Natural Resources, Division 7, has occurred with respect to the contractor or subcontractor within the preceding three (3) years. If a contractor is placed on CalRecycle’s Unreliable List after award of this Grant, the grantee may be required to terminate that contract. REMEDIES Unless otherwise expressly provided herein, the rights and remedies hereunder are in addition to, and not in limitation of, other rights and remedies under this Agreement, at 2017-10-17 Agenda Packet Page 29 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 12 law or in equity, and exercise of one right or remedy shall not be deemed a waiver of any other right or remedy. SELF-DEALING AND ARM’S LENGTH TRANSACTIONS All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’s-length transactions and not the result of, or motivated by, self -dealing on the part of the grantee or any employee or agent of the grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended. SEVERABILITY If any provisions of this Agreement are found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement without affecting any other provision of this Agreement. To the full extent, however, that the provisions of such applicable law may be waived, they are hereby waived to the end that this Agreement be deemed to be a valid and binding agreement enfo rceable in accordance with its terms. SITE ACCESS The grantee shall allow the state to access sites at which grant funds are expended and related work being performed at any time during the performance of the work and for ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved. STOP WORK NOTICE Immediately upon receipt of a written notice from the Grant Manager to stop work, the grantee shall cease all work under this Agreement. TERMINATION FOR CAUSE CalRecycle may terminate this Agreement and be relieved of any payments should the grantee fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination, CalRecycle may proceed with the work in any manner deemed proper by CalRecycle. All costs to CalRecycle shall be deducted from any sum due the grantee under this Agreement. Termination pursuant to this section may result in forfeiture by the grantee of any funds retained pursuant to CalRecycle’s 10 percent retention policy. TIME IS OF THE ESSENCE Time is of the essence to this Agreement. TOLLING OF STATUTE OF LIMITATIONS The statute of limitations for bringing any action, administrative or civil, to enforce the terms of this Agreement or to recover any amounts determined to be owing to CalRecycle as the result of any audit of the grant covered by this Agreement shall be 2017-10-17 Agenda Packet Page 30 CalRecycle’s Entitlement Grant Terms and Conditions – Revised 3/29/16 13 tolled during the period of any audit resolution, including any appeals by the grantee to the Director. UNION ORGANIZING By signing this Agreement, the grantee hereby acknowledges the applicability of Government Code Sections 16645, 16645.2, 16645.8, 16646, 16647, and 16648 to this Agreement and hereby certifies that: (a) No grant funds disbursed by this grant will be used to assist, promote, or deter union organizing by employees performing work under this Agreement. (B) If the grantee makes expenditures to assist, promote, or deter union organizing, the grantee will maintain records sufficient to show that no state funds were used for those expenditures, and that grantee shall provide those records to the Attorney General upon request. VENUE/CHOICE OF LAW (a) All proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder shall be held in Sacramento County, California. The parties hereby waive any right to any other venue. The place where the Agreement is entered into and place where the obligation is incurred is Sacramento County, California. (b) The laws of the State of California shall govern all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder. WAIVER OF CLAIMS AND RECOURSE AGAINST THE STATE The grantee agrees to waive all claims and recourse against the state, its officials, officers, agents, employees, and servants, including, but not limited to, the right to contribution for loss or damage to persons or property arising out of, resulting from, or in any way connected with or incident to this Agreement. This waiver extends to any loss incurred attributable to any activity undertaken or omitted pursuant to this Agreement or any product, structure, or condition created pursuant to, or as a result of, this Agreement. WORK PRODUCTS Grantee shall provide CalRecycle with copies of all final products identified in the Work Plan. Grantee shall also provide CalRecycle with copies of all public education and advertising material produced pursuant to this Agreement. WORKERS’ COMPENSATION/LABOR CODE The grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the Labor Code, and the grantee agrees to comply with such provisions before commencing the performance of the work of this Agreement. 2017-10-17 Agenda Packet Page 31 TEA Grant Program, FY 2016–17 1 EXHIBIT B PROCEDURES AND REQUIREMENTS LOCAL GOVERNMENT WASTE TIRE ENFORCEMENT GRANT PROGRAM 24th Cycle Copies of these Procedures and Requirements should be shared with BOTH the Finance Department AND the staff responsible for implementing the grant activities. INTRODUCTION The Local Government Waste Tire Enforcement (TEA) Grant Program is administered through the Department of Resources Recycling and Recovery (CalRecycle). These Procedures and Requirements describe project and reporting requirements, report due dates, report contents, grant payment conditions, eligible and ineligible project costs, project completion and closeout procedures, records and audit requirements. This document is attached to, and incorporated by referenc e, into the Grant Agreement. MILESTONES NTP Date Grant Term and Grant Performance Period Begins on date indicated on the Notice to Proceed (NTP) February 28, 2018 Mid-Year Progress Report Due June 29, 2018 Grant Performance Period Ends June 30, 2018 – September 28, 2018 Report Preparation Period September 28, 2018 Final Report and final Payment Request Due September 28, 2018 Grant Term End . GRANT MANAGEMENT SYSTEM (GMS) GMS is CalRecycle’s web-based grant application and grant management system. Access to GMS is secure; grantees must log in using a WebPass. WebPass accounts are tied to a specific email address. If an email address changes, or if it becomes inactive, the grantee must create a new WebPass account to continue accessing GMS. Establish or manage a WebPass at CalRecycle’s WebPass page (https://secure.calrecycle.ca.gov/WebPass/). Accessing the grant Grantees must log into GMS (https://secure.calrecycle.ca.gov/Grants) using their web pass. After login, locate the grant in the My Awarded/Open Grants table and select the Grant Management button. The Grant Management Module includes the following sections:  Summary tab – shows approved budget, paid and remaining amounts. (This section is available to the grantee in read-only mode.)  Payment Request tab - requests reimbursement.  Reports tab- uploads required reports. 2017-10-17 Agenda Packet Page 32 TEA Grant Program, FY 2016–17 2  Documents tab– uploads other grant documents that are not considered supporting documents to a payment request or a report. This section also provides access to documents that were uploaded within other sections of GMS. Follow the instructions in GMS to work in the system. Use the information in the following sections to determine what reports, transactions, and supporting documents are required. Contact Updates Access to the grant is limited to those listed in the Contacts tab of the Application Module with the access check box marked. A contact may be listed but not granted access by not checking the box. Please note, if a contact is granted access to a grant they will be able to edit contacts, submit payment requests, upload reports, and view all documents. Those with access may update contact information for all contact types except Signature Authority. Email the assigned Grant Manager regarding any changes to Signature Authority information. PRIOR TO COMMENCING WORK Prior to commencing work under this grant, the grantee’s Grant Manager or primary contact and authorized grant Signature Authority should review the Terms and Conditions (Exhibit A) and the Procedures and Requirements (Exhibit B) to identify key grant administrative requirements. Evaluation of the grantee’s compliance with these requirements is a major focus of grant audits. For further instructions regarding GMS, including login directions, see the section above titled Grant Management System. GRANT TERM, GRANT PERFORMANCE PERIOD, AND REPORT PREPARATION PERIOD The Grant Term and Grant Performance Period both begin the date indicated in the Notice to Proceed. The Grant Term ends on September 28, 2018. This is also the date the Final Report and final Payment Request are due to CalRecycle. The Grant Performance Period begins on the date indicated in the Notice to Proceed and ends on June 29, 2018. Grant-eligible program expenditures may start no earlier than the date indicated in the Notice to Proceed and ends on June 29, 2018. In all cases, eligible program costs must be incurred no later than June 29, 2018. The period from June 30, 2018 to September 28, 2018 is the Report Preparation Period. Costs incurred to prepare the Final Report and final Payment Request are the only costs that are eligible for reimbursement during the Report Preparation Period. ELIGIBLE COSTS All grant expenditures must be for activities, products, and costs specifically included in the approved Work Plan and approved Budget. To be eligible for reimbursement, costs must be incurred after receiving a NTP and before the end of the Grant Performance Period. All services must be provided and goods received during this period in order to be eligible costs. Invoices for goods and services must be paid by the grantee prior to the inclusion of those goods or services on a payment request. 2017-10-17 Agenda Packet Page 33 TEA Grant Program, FY 2016–17 3 Exception: On a case by case basis, the Grant Manager may consider approving delivery of goods after the Grant Performance Period as long as the cost was incurred after receiving a NTP and before the end of the Grant Performance Period. The delivery date must be on or before the Grant Term end date. The grantee must submit the request in writing via email and receive written approval from the Grant Manager. Any proposed revision(s) to the Inspection Priority Work Plan and/or Budget must be submitted in writing and pre-approved in writing by the Grant Manager prior to grantee incurring the proposed expenditure. The approval document should be retained by the grantee for audit purposes. See Audit Record/Access section of the Terms and Conditions (Exhibit A). The following are eligible activities under Inspections, Enforcement, Training, Education, and should be charged under the appropriate category (i.e. inspection training under Inspection budget):  Coordinating with other grantees when both the city and county in which they are located are grantees to ensure no duplication or gaps in activities.  Grant-related meetings of the grantee's tire enforcement staff.  Staff time spent on grant-related activities (i.e., providing training, receiving training, file maintenance, communicating with CalRecycle about grant requirements, waste tire facility permitting, hauling, storage and disposal laws, regulations and procedures).  Developing tools to track activities including maintaining files.  Activities related to improving or correcting performance on inspections and associated activities with CalRecycle Inspectors and the Grant Manager.  Writing policies, processes and procedures for tracking and reporting staff time, activities and costs. Administrative Costs Direct Administrative Costs Direct administrative costs must be less than or equal to 15 percent of the total approved Budget. The following direct administrative activities/costs are eligible:  Preparing and submitting Progress Reports, Payment Requests, and all other required documents, forms and information.  Grant-related communications with the CalRecycle Grant Manager, Evaluation staff, Enforcement staff and state auditors.  Costs related to compliance with performance evaluation or audits.  Developing and maintaining a system to accurately capture and report staff time, activities, and costs for waste tire enforcement, including maintenance of records. Indirect Costs Grantees may charge actual indirect cost rates not to exceed 20 percent of approved direct costs. 2017-10-17 Agenda Packet Page 34 TEA Grant Program, FY 2016–17 4 Grantees must employ an indirect cost rate that conforms to Generally Accepted Accounting Principles and which is prepared by their accounting, finance or budget office or external accounting contractor. Grantees must maintain, and shall provide if requested, documentation to support indirect charges and the components thereof, which demonstrates the methodology used to calculate these costs. Education The amount requested and reimbursed under Education must be less than or equal to 10 percent of the approved Budget, unless the Grant Manager has approved an educational and outreach plan with a larger percentage. Eligible education activities and costs are as follows: 1. Identifying new TPIDs, which may include:  Obtaining Waste Tire Management System (WTMS) reports of newly issued Tire Program Identification (TPID) numbers, or  Canvassing business areas to determine if new or established businesses perform waste tire activities. 2. Printing and distributing CalRecycle flyers when conducting educational visits for TPIDs. 3. Informing businesses, and business owners/operators about applicable waste tire laws and regulations and available compliance resources. 4. Providing tire related education to Local Conservation Corps. 5. Providing other outreach activities as requested or approved by CalRecycle. Enforcement Enforcement Actions and Surveillance Eligible enforcement and surveillance activities include steps taken beyond normal inspection activities that a grantee undertakes to identify illegal waste tire activity and collect evidence, as defined below. 1. All eligible enforcement and surveillance activities MUST be related to conducting and reporting on investigations, researching, surveilling, identifying, and documenting at least one of the following:  Illegal (unpermitted) waste tire storage sites and activities with 500 or more waste tires.  Individuals responsible for illegal dumping of waste tires.  Private property on which illegal dumping of waste tires is occurring or has occurred with 500 or more waste tires.  Unregistered waste tire haulers. 2. Eligible enforcement and surveillance activities may include the following:  Coordinating and working with CalRecycle, the California Highway Patrol, local DA, task forces, TEAs, and other local law enforcement on: o Gathering and sharing information and resources. o Providing training to local law and code enforcement personnel within the TEA jurisdiction to encourage referrals or citations. o Establishing and conducting checkpoints to identify unregistered waste tire haulers. 2017-10-17 Agenda Packet Page 35 TEA Grant Program, FY 2016–17 5 o Attending administrative, court and/or CalRecycle hearings, and supporting case development.  Assisting CalRecycle with investigations and referrals: o Making waste tire enforcement referrals, as approved or required. o Investigating waste tire referrals, complaints, violations, discrepancies, legal records searches, etc., as requested. o Obtaining inspection and other warrants as needed. o Participating with local law enforcement activities, performing interviews and field investigations, developing enforcement cases. o Researching databases and past enforcement activities.  After appropriate enforcement and surveillance, coordination with other agencies to remediate environmental damage due to illegal dumping and storage of waste tires, including: o Review of regulations and procedures. o Coordination with Local Conservation Corps to coordinate cleanups, and other related activities. o Coordination with CalRecycle for cleanup and lien options. Note: Private property with more than 500 illegally stored waste tires must be referred to CalRecycle for enforcement prior to seeking remediation.  Record Keeping o Production and maintenance of documents and files to track waste tire enforcement-related activities. 3. Grantees must report enforcement and surveillance activities to CalRecycle Inspection Liaison as follows:  Report to CalRecycle all enforcement actions on waste tire-related cases, including any referrals to the DA’s Office and any actions taken by the DA’s Office on waste tire related cases within 15 days.  Making waste tire enforcement referrals, as approved or required. See “Inspection Referral.” Field Patrolling and Small Cleanup Field Patrolling is an enforcement activity with the sole purpose of reducing and deterring illegal hauling and dumping of waste tires. The grantee shall be limited to 15 percent of the total approved Budget, and adhere to the following: 1. All field patrolling activities must be documented and supported by filling the CalRecycle Field Patrolling form (CalRecycle 229). 2. Eligible field patrolling activities include:  Preparation and planning of field patrol.  Follow-up on locations with known illegal waste tire dumping and on illegal dumping complaints and referrals  Cleanup of small tire piles with 35 or less tires on public land including disposal fees. 3. The grantee must report field patrolling activities quarterly in the following manner:  The Field Patrolling forms shall be submitted electronically to WasteTires@CalRecycle.ca.gov to the attention of their CalRecycle Inspector Liaison. 2017-10-17 Agenda Packet Page 36 TEA Grant Program, FY 2016–17 6  List of violations of illegal waste tire dumpers or unregistered waste tire haulers.  Summary of documented fluctuations, increases and decreases, in illegally dumped waste tires, etc. 4. The grantee shall be limited to patrolling areas every quarter, unless otherwise approved by CalRecycle. Equipment Only equipment, materials and supplies necessary to perform eligible waste tire activities under the TEA Grant are eligible for reimbursement and shall be limited to ten percent of the total approved Budget, and as described below. 1. The grantee may claim only the cost of an item that is proportionate to its use in the Waste Tire Enforcement Program. 2. The only eligible equipment and quantity/cost of equipment under the grant that is listed in the Budget, or that has been subsequently pre -approved by the Grant Manager. The following are examples of eligible equipment costs:  Personal Protective Equipment: including boots, reflective vests or logo/identifying windbreakers, hard hats/sun hats, gloves, binoculars, face masks, safety glasses.  Field equipment: including measuring devices, GPS, camera and accessories.  Cell phones, mobile WiFi hotspots and cell service.  Computers or tablets and related standard accessories. Inspections Inspections are the core component of the grant and the activity on which the Grantee shall spend most of its time and money. Unless otherwise approved, the eligible activities are listed below and the grantee must perform inspection activities in accordance with the following: 1. Priority and Eligibility - the grantee shall inspect TPIDs as authorized and described in the Inspection Priority Work Plan and as described below, unless prior written approval is given by CalRecycle Inspector Liaison and the Grant Manager. If any of the below are not achieved, CalRecycle may withhold payment.  All inspections on the “Inspection Priority Work Plan” must be completed by June 29, 2018.  Active TPIDs with an outstanding Notice of Violation (NOV) must be inspected within 15 days of the compliance deadline. Grantees may make referrals to CalRecycle after the first inspection, but must do so within 15 days and as described under “Inspection Referrals”.  The grantee shall inspect tire locations or refer to CalRecycle within 15 days, under the following circumstances and as directed below: 1. If requested by the CalRecycle Inspector Liaison. 2. The grantee receives a waste tire regulation related complaint or becomes aware of:  an illegal waste tire facility with 500 or more waste tires (unpermitted as defined in 14 CCR 18420).  an illegal waste or used tire hauler (unregistered as defined by 14 CCR 18451). 2017-10-17 Agenda Packet Page 37 TEA Grant Program, FY 2016–17 7  a tire location that poses an immediate risk or threat to public health and safety, and/or the environment. (This does not apply to illegal sites that the Grantee knows CalRecycle is aware of and/or actively pursuing enforcement actions against.) 3. Grantees must note on the Inspection Report the information they received that necessitated the inspection, and must mark “Referral” as the Inspection Type.  If all TPIDs listed in the “Inspection Priority Work Plan” can and will be inspected within the grant period, the Grantee may inspect Active TPIDs not on the “Inspection Priority Work Plan” any time during the grant cycle except for ineligible inspection activities listed below. Inspection scheduling is the responsibility and at the discretion of the Grantee.  Only Inspections at the following frequencies are eligible:  Only one Routine inspection is allowed per active TPID.  A maximum of two re-inspections may be performed per active TPID if a Notice of Violation was documented during the original routine inspection.  Only one Observation inspection may be performed, as described below, per active TPID.  Only one Educational inspection may be performed per each active, new TPID within the grant cycle.  Only the following are eligible inspection activities:  On-the-job inspection training for TEA staff.  Scheduling and pre-inspection research.  Physically inspecting the TPID locations, taking photographs, interviewing personnel, writing and submitting a complete and correct inspection report.  Researching, updating or correcting WTMS records and the grantee's database.  Providing technical assistance to tire businesses during or after an inspection on waste tire laws and regulations.  Conducting an observation inspection if a TEA inspector is in the field conducting other eligible waste tire activities and observes the potential for a violation. * *Note: The Inspection Report must document the circumstances that prompted the inspection, and “Observation” must be marked as the Inspection Type.  Inspection reports may only be completed when the inspector performs an inspection at the TPID's physical address.  Ineligible inspection activities include inspections of the following except as otherwise pre-approved in writing or requested by the CalRecycle Inspector Liaison:  Locations where the TPID does not have a site (physical) address in the Grantee’s jurisdiction or at an address that is not listed in WTMS. 2017-10-17 Agenda Packet Page 38 TEA Grant Program, FY 2016–17 8 Note: When the Grantee learns of a new or changed TPID site (physical) address, that information must be submitted to the Waste Tire Hotline (toll-free 1-866-896-0600 or WasteTires@CalRecycle.ca.gov) or to the CalRecycle Inspector Liaison assigned to the Grantee within seven days and be noted on the Inspection Report.  Closed and inactive TPIDs (refers to the TPID’s Business Status in the WTMS)  Small quantity generators (SQG) (refers to the TPID’s Business Role identified in the WTMS) i. Inspections of SQGs included on your Inspection Priority Work Plan, as well as inspections of SQGs that previously have never been inspected, are considered pre-approved.  Farm/Ranch/Dairy/Ag Sites  Permitted Major or Minor Waste Tire Facilities 2. Quality of Inspections - Inspections shall be conducted in a manner consistent with state laws and regulations and according to CalRecycle guidance and business practices implementing sound investigative techniques, and as described below:  Inspection reports shall be filled out completely and correctly and shall contain, at a minimum, the following on all reports:  A statement that permission to inspect the facility was requested and obtained with the name and title of the person who granted the inspector permission (including taking photos and making site maps),  Waste tire count for the facility including indicating the coun ting method(s) used (e.g., direct count, volumetric estimation, combination, etc.). If volumetric estimation was used, a description of the tire piles, their location, dimensions, and all volume calculations and conversions to waste tires.  Results of the CTL review and any discrepancies noted. Include additional information that would support a future enforcement action and that would enable the report to stand on its own without any explanations or additional information.  Inspection reports must be filled out to accurately reflect compliance/ noncompliance at the TPID in accordance with the inspection report instructions (http://www.calrecycle.ca.gov/Tires/Enforcement/Inspections/FormInstruct .htm#Page2), the Grantee Toolbox (www.calrecycle.ca.gov/tires/enforcement/Grantee/), and according to training provided by CalRecycle as follows: 1. The Grantee shall conduct a pre-inspection review of hauler records, CTLs, WTMS, authorizations, prior inspections and enforcement actions prior to inspections. 2. Violations shall be cited correctly and consistently, including citing the correct code sections, through the re-inspection process. 3. Violations and corrections to violations shall be noted on the inspection report and supported with written comments and 2017-10-17 Agenda Packet Page 39 TEA Grant Program, FY 2016–17 9 documentation. Documentation may include photographs, description of conditions at the site, information gathered through interviews, and any other documentation which support violations or corrections of violations. 4. Statements or directives the Inspector made to the owner/operator must be noted in the report. 5. TEA inspectors shall verify that the information in WTMS was current and accurate, including Operational Status, authorizations, addresses, owners, operators, contacts information, etc. If discrepancies are noted, the inspector shall submit corrections to the Hauler Hotline or to the CalRecycle Inspector Liaison assigned to the Grantee within 7 days. Inspectors are also to note these corrections in the inspection reports.  Inspection reports must be submitted according to established CalRecycle business practices.  Inspection reports must be submitted no later than 15 calendar days after the inspection date. All inspection reports must be submitted electronically using the WTMS e-reporting process.  One inspection report is to be submitted per TPID number, regardless of whether there are multiple roles noted in WTMS for the TPID.  Enforcement Referrals to CalRecycle shall be on a CalRecycle 228 Form that is completed correctly. All inspections resulting in the issuance of an NOV may result in a referral to CalRecycle for enforcement action and shall be handled in the following manner: 1. On the First Inspection:  The TEA inspector shall advise the TPID owner/operator or representative of the violation(s) and provide them a copy of the CalRecycle Notice of Violation and Citable Offenses Handouts (calrecycle.ca.gov/Tires/Enforcement/Inspections/Forms.htm #NOV).  Document on the Inspection Report in detail: o To whom and how the NOV and Citable Offenses handouts where delivered (e.g., in person, by mail or email). o Description of all violations noted and specifically what needs to be corrected. o Compliance deadline date when all violations must be corrected that shall be no more than 30 days from the date of the inspection, except for violations of recordkeeping or manifest requirements contained in 14 CCR 17357 and 14 CCR 18459.2.1 through 18462, the compliance deadline date shall be no more than 90 days from the date of the inspection to provide adequate time to assess whether corrective action has been taken regarding recordkeeping and manifest issues.  If the violation is significant, chronic, or if it is anticipated that the violation will not be corrected, the TEA inspector shall 2017-10-17 Agenda Packet Page 40 TEA Grant Program, FY 2016–17 10 refer the TPID and violation to CalRecycle to allow for an expedited enforcement. See below for more on “Inspection Referrals” to CalRecycle. 2. On the Second Inspection (First Re-inspection):  The Grantee shall re-inspect the site within 15 days of the NOV compliance deadline date.  The Inspection Report must include written documentation and evidence (photographs, copies of documents, etc.) that address all of the same violation(s) using the same citations as documented in the previous inspection, by either documenting: o Evidence of correction of the violation(s). o Partial correction(s) or good faith effort made, the justification of the extension, and the new compliance deadline date, not to exceed 30 days from the date of the re-inspection. o Continued violation(s) without significant good faith, and refer the TPID and uncorrected violation(s) to CalRecycle for further enforcement action.  Document any new violations noted during the inspection. Note: New violations noted during a re-inspection do not extend the limit of two re-inspections authorized under the Grant. 3. If applicable, on the Third Inspection (Second Re-inspection).  The Grantee shall re-inspect the TPID within 15 days of the extended NOV compliance deadline date.  Continue to cite the same codes being violated and the reasons. Also document violations that were corrected since the last inspection.  If all violations have not been corrected, including new violations detected during re-inspections, refer the TPID and violation(s) to CalRecycle for further enforcement action by completing/submitting the CalRecycle Referral Form (CalRecycle 228) (www.calrecycle.ca.gov/Tires/Enforcement/Inspections/Form s.htm#Referral). Indicate the referral in the Enforcement Status section of the inspection report.  The referral shall be made within 15 days of the second re- inspection and must include the first and second inspection reports, photographs, and other documentation and evidence.  The grantee may make referrals to CalRecycle after the first inspection.  CalRecycle will provide training and assistance on the above requirements as needed or requested. The grantee is responsible for correcting errors so they do not become ongoing or chronic. 3. Timeframes - Inspections and referral documents shall be submitted in a timely manner, as follows:  All inspections shall be delivered to the TPID representative or owner/operator and be submitted electronically to CalRecycle within 15 days of the inspection date. 2017-10-17 Agenda Packet Page 41 TEA Grant Program, FY 2016–17 11  All NOVs shall be issued with a compliance date 30 days or less.  For violations of recordkeeping and manifest requirements contained in 14 CCR 17357 and 14 CCR 18459.2.1 through 18462, the compliance deadline date shall be no more than 90 days from the date of the inspection to provide adequate time to assess whether corrective action has been taken regarding recordkeeping and manifest issues.  The first re-inspections (for NOV) shall be conducted within 15 days following the compliance deadline date.  The second re-inspections (for NOV), if applicable, shall be conducted within 15 days following the extended compliance deadline date.  Outstanding NOVs shall be referred to CalRecycle after the Second Re - inspection or earlier as appropriate.  NOV referral packages shall be submitted to CalRecycle within 15 days of the inspection noting “Referred to CalRecycle” in the Enforcement Status section of the inspection report.  All unregistered haulers must be referred to CalRecycle within 15 days using the Hauler Observation Report (CalRecycle 775). 4. Reasonable Expenditures to Carry out Inspections:  Personnel expenditures will be reimbursed based on actual time spent on Inspections.  The Grantee must record actual time spent on all phases of the inspection including preparation, on-site time, travel time, and reporting/follow-up. CalRecycle may require a grantee to report time in more detail or develop a more in-depth time task analysis to support reimbursement requests.  Time allocated for conducting physical inspections in the field and pre- inspection research shall be reasonable and relative to the state average for similar sites. The timeframe shall be sufficient to conduct a complete and correct inspection.  Travel time shall be kept to a minimum by inspecting as many sites in one area at one time as is practical. Note: Neither the TEA Grant Program nor the terms of the Grant Agreement affects or changes CalRecycle’s right to enter any California jurisdiction for the purpose of: (1) enforcing regulations relating to the storage of waste tires and used tires, as provided in Public Resources Code (PRC) Section 42850(c); (2) enforcing regulations relating to the hauling of waste and used tires, as provided in PRC Section 42963(b); and (3) fulfilling any other enforcement obligations with which it is charged by statute or regulation. Training Reimbursement for training is limited to tire enforcement staff and supervisors. In- house training is to be charged under the appropriate category (i.e. inspection training under Inspection budget). Unless otherwise approved, grantee training requirements and eligibility are as follows. 1. Grantee must maintain and provide to CalRecycle a list of inspectors and lead inspectors, their qualifications and the amount time (percentage or quantity inspections) they are committed to the program. 2017-10-17 Agenda Packet Page 42 TEA Grant Program, FY 2016–17 12 2. All inspectors must be trained and approved by CalRecycle prior to conducting eligible inspections. Existing inspectors may be approved without additional training. 3. The following are mandatory training activities:  New inspector inspection training must be provided and approved by CalRecycle.  CalRecycle-sponsored waste tire Round Tables.*  WTMS Training.*  Annual Technical Training Series. *  Other mandatory trainings as requested by CalRecycle. *Grantee must send at least one inspector to each of these events. 4. The following are eligible non-mandatory training activities/costs:  Meetings, training or conferences as requested by CalRecycle.  Coordinating and hosting Round Tables or other CalRecycle-sponsored training events.  CalEPA sponsored Enforcement Symposium.  Basic Inspector Academy.  Conducting Effective Interviews for Inspectors.  Environmental Enforcement Training.  Basic and refresher health and safety classes.  Costs/training approved in the Budget or that have been pre-approved in writing by the Grant Manager. 5. When multiple sessions of a training event are scheduled, grantees must attend the session closest to their location. Exceptions must be supported by a compelling justification. 6. If attending an event with multiple subjects of which only part is related/beneficial to waste tire enforcement, the portion of the class fee charged to the TEA grant must be proportional to the class time devoted to waste tire enforcement. Transportation The amount budgeted and eligible for reimbursement under Transportation must be necessary to perform waste tire activities under the TEA Grant. The total must be less than or equal to ten percent of the total approved Budget. Any activities/costs not specifically listed below must be pre-approved in writing by the Grant Manager to be reimbursable. The following activities/costs are eligible:  Use of grantee-owned or personal vehicles. Grantees may claim vehicle usage costs based upon actual mileage at the lesser of the grantee or state mileage rate. Mileage rates generally cover the cost of fuel, maintenance, insurance, licensing, registration, depreciation, and all other costs associated with operation and usage of the vehicle. Therefore, grantees cannot claim vehicle usage costs using both a mileage rate and the separate cost of the items covered by the mileage rate. Grantees must use the rate in effect at the time the mileage was incurred.  Travel and per diem. All travel costs must be in accordance with the California State Travel policies (http://www.calhr.ca.gov/employees/Pages/travel- reimbursements.aspx). Reimbursable mileage and other travel expenses (per diem) may not exceed the state rates as set forth in the State Administrative 2017-10-17 Agenda Packet Page 43 TEA Grant Program, FY 2016–17 13 Manual. Documentation submitted for travel reimbursement must include departure and return times and dates. INELIGIBLE COSTS Any costs not specifically included in the approved Budget and not directly related to performance of eligible activities are ineligible for reimbursement. Contact the Grant Manager if clarification is needed. Ineligible costs include, but are not limited to:  Costs incurred prior to the date of the NTP letter or after June 29, 2018.  Expenditures outside the grantee’s jurisdiction(s), or not specified in the approved Budget.  Any costs that are not consistent with local, state, and federal laws, guidelines and regulations.  Costs associated with Amnesty Day events, such as creating and distributing hauler exemption letters.  Investigation of local code violations that don’t involve waste tires.  Educational activities provided to the general public via small and large community events or at events consisting primarily of K-8 children.  Costs associated with activities related to the use of recycled products.  Preparing and submitting the next cycle’s grant application.  Costs that the Grant Manager deems unreasonable, excessive, ineligible, inappropriate, duplicative, disproportionate or not related to the TEA Grant Program. BUDGET CHANGES Revision(s) to approved Budget must be submitted in writing and pre -approved in writing by the Grant Manager prior to grantee incurring the proposed expenditure. The Grant Manager will not approve changes that result in the reduction of the performance of core program functions for inspections, enforcement, or mandatory training. The approval document shall be retained by the grantee for audit purposes. See Audit Record/Access section of the Terms and Conditions (Exhibit A). REPORTING REQUIREMENTS A Progress Report and a Final Report are required by this Agreement; however, the Grant Manager may request a Progress Report at any time during the Grant Term. All reports must be uploaded in GMS. Failure to submit the Final Report with appropriate documentation by the due date may result in rejection of the Payment Request and/or forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding. For further instructions regarding GMS, including login directions, see the section above entitled, Grant Management System. To upload a report: 1. Go to the Reports tab. 2. Click on the appropriate Report Type. 3. Click on the Add Document button. 4. Choose the Document Type, enter a document title, click the Browse button to search and upload the document, and then Save. 2017-10-17 Agenda Packet Page 44 TEA Grant Program, FY 2016–17 14  You may upload multiple documents to complete reporting requirements.  The maximum allowable file size is 35MB. 5. Click the Submit button when the report is complete. The reports must be current, include all required sections and documents, and must be approved by the Grant Manager before any Payment Request can be processed. Failure to comply with the specified reporting requirements may be con sidered a breach of this Agreement and may result in the termination of this Agreement or rejection of the Payment Request and/or forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding. Any problems or delays must be reported immediately to the Grant Manager. MID-YEAR PROGRESS REPORT The grantee must submit a Mid-Year Progress Report by February 28, 2018. This report shall cover grant activities that occurred from the NTP date through December 31, 2017. FINAL PROGRESS REPORT The Final Report is due September 28, 2018. This report should cover grant activities from the NTP through June 29, 2018. The following items must be included: 1. The Grant Number, Grantee’s name and Grant Term. The following disclaimer statement on the cover page: “The statements and conclusions of this report are those of the grantee and not necessarily those of the Department of Resources Recycling and Recovery (CalRecycle), its employees, or the State of California. The state makes no warranty, express or implied, and assumes no liability for the information contained in the succeeding text.” GRANT PAYMENT INFORMATION 1. Payment to the grantee for eligible grant expenses is made on a reimbursement basis only and for only those materials and services specified in the approved grant application. 2. Reimbursement may be requested twice or quarterly during the Grant Term in conjunction with submission of the Progress Report and in conjunction with the Final Report. 3. The grantee must submit the required Progress Report/Final Report, and the Grant Manager must approve the report prior to, or concurrent with submission of the Grant Payment Request. 4. The grantee must submit a completed Grant Payment Request and provide supporting documentation as described in the “Payment Request and Documentation” section for completed project(s) only. 5. Grant payments will only be made to the grantee. It is the grantee’s responsibility to pay all contractors and subcontractors for purchased goods and services. 6. Ten percent of each approved Grant Payment Request will be withheld and retained until all conditions stipulated in the Agreement, including submission and Grant Manager approval of the Progress and/or Final Report, have been satisfied. 2017-10-17 Agenda Packet Page 45 TEA Grant Program, FY 2016–17 15 7. CalRecycle will make payments to the grantee as promptly as fiscal procedures permit. The grantee can typically expect payment approximately 45 days from the date a Grant Payment Request is approved by the Grant Manager. PAYMENT REQUEST AND DOCUMENTATION Failure to submit the final Payment Request with appropriate documentation by the due date may result in rejection of the Payment Request and/or forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding. Payment requests must be submitted in GMS. For further instructions regarding GMS, including login directions, see the section above entitled, Grant Management System. To submit a Grant Payment Request: 1. Go to the Payment Request tab. 2. Click on the Create a Payment Request button.  Choose Reimburse for the Transaction Type and enter the amount spent in each budget sub category.  When the transaction is complete, click the Save button.  After the transaction is saved, the Upload Supporting Documentation button will appear in the lower right corner. 3. Click the Upload Supporting Documentation button.  Choose the Document Type, enter a document title, click the Browse button to search and upload the document, and then Save.  Select the Back button to upload another document and continue this process until all required supporting documents as listed below are uploaded.  The maximum allowable file size for each document is 35MB. 4. Click the Submit Transaction button, located on the transaction page, to complete your payment request (including uploading all the documents listed below). Supporting Documentation A. A scanned copy of the Grant Payment Request form. Mail only the original Grant Payment Request form (CalRecycle 87), with the original signature of the signatory or his/her designee*, as authorized by grantee’s Resolution, Letter of Designation, or Letter of Commitment to: Via standard mail: Via courier/personal delivery: Department of Resources Recycling and Recovery TEA Grant Program FiRM Branch, 13th Floor P.O. Box 4025 Sacramento, CA 95812-4025 Department of Resources Recycling and Recovery TEA Grant Program FiRM Branch, 13th Floor 1001 I Street Sacramento, CA 95814 *A designee may sign on behalf of the grantee if a) authorized by the Resolution or Letter of Commitment, and b) a Letter of Designation has been provided to the Grant Manager. A. TEA Inspection Personnel Expenditure Summary (CalRecycle 767-B) for reporting inspection related personnel hours. 2017-10-17 Agenda Packet Page 46 TEA Grant Program, FY 2016–17 16 B. TEA Personnel Expenditure Summary (CalRecycle 767) C. Expenditure Itemization Summary (CalRecycle 736) D. CalRecycle Inspection Priority Work Plan E. CalRecycle Waste Tire Field Patrolling Form (CalRecycle 229) for all field patrolling activities F. Proof of payment for disposal fees related to small cleanups. G. Travel Expense Log Form (CalRecycle 246) for hotel, meals, per diem and other expenses, hotel receipts and other receipts for conference fees, tuition, etc. H. Mileage logs I. Hourly Rate Document J. Proof of payment is required for any expenditures over $500. Acceptable proof of payment includes receipts/invoices, cancelled checks or other documents containing: vendor name, phone number and/or address; purchase amount and date; and, a description of the goods, services and/or materials purchased (if the grantee only claimed a portion of an invoice, the amount billed to the grant should be highlighted). K. Certificate of completion for non-mandatory training. All forms listed above can be downloaded from the CalRecycle Grant Forms website (http://www.calrecycle.ca.gov/Funding/Forms). PERSONNEL HOURS Grantees must maintain, and provide if requested, detailed timekeeping records of personnel hours worked. For each pay period, the employee's timekeeping document must contain at least the:  Employee name and classification.  Total hours worked and leave taken during the pay period.  Hours worked/leave taken per day.  For each hour worked, a description/listing of the activity/task on which the employee worked. Supervision of staff conducting eligible activities constitutes a direct grant cost; therefore, grantees may claim under each Budget category a direct supervision time and costs related to that category. Hourly Rate Grantees may calculate an actual/loaded hourly rate for each employee that includes actual salary, wages, shift differentials, and contractual fringe benefits. PERFORMANCE EVALUATION The grantee will be evaluated on its effectiveness in fulfilling the procedures and requirements outlined in this document. Particular focus will be given to the Grantee’s performance in carrying out its mandatory responsibilities, especially those Inspection functions and Training activities. The evaluation will be based on program data related to quality and efficiency as well as eligible activities in all categories, but particularly in Inspections, Enforcement, and Education. 2017-10-17 Agenda Packet Page 47 TEA Grant Program, FY 2016–17 17 AUDIT CONSIDERATIONS The grantee agrees to maintain records and supporting documentation pertaining to the performance of this grant subject to possible audit for a minimum of three (3) years after the final payment date or Grant Term end date, whichever is later. A longer period of records retention may be stipulated in order to complete any action and/or resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. Examples of audit documentation include, but are not limited to, expenditure ledger, payroll register entries, time sheets, personnel expenditure summary form, travel expense log, paid warrants, contracts and change orders, samples of items and materials developed with grant funds, invoices and/or cancelled checks. Please refer to the Terms and Conditions (Exhibit A) for more information. 2017-10-17 Agenda Packet Page 48 TEA 24 Inspection Priority Work Plan Instructions Page 1 of 4 Based on the number of inspections planned, as found in your TEA 24 grant application, CalRecycle has prepared the attached Inspection Priority Work Plan (work plan) for your jurisdiction for the TEA 24 grant cycle. All TPIDs on the work plan must be inspected during the TEA 24 grant performance period unless otherwise authorized by your CalRecycle inspector liaison. Please refer to the TEA 24 Procedures and Requirements for additional information about eligible and ineligible inspection-related activities. Contact your assigned CalRecycle inspector liaison if you have any questions about inspection priorities or any item on your work plan. Record and Submit Inspection Data You will notice that the work plan has three empty columns on the right side. Please fill in the inspection date, report number, and any necessary comments when you inspect any TPID on the work plan, and when you add inspections in the Additional Inspections section as described in each category below. As required by the TEA 24 Procedures and Requirements, when you submit your mid-year and final TEA 24 Performance Reports, you must also submit a copy of your updated work plan. This work plan was created using the most up-to-date information available in CalRecycle’s Waste Tire Management System (WTMS) on May 31, 2017. It is possible that TPIDs within your jurisdiction that you have recently inspected have been included on your work plan if the inspection reports were not in WTMS when the work plan was created. If this happens please provide the inspection date and report number on the work plan. In most cases an additional inspection of these facilities during TEA 24 will not be necessary. Inspection of Work Plan TPIDs All TPIDs on your work plan must be inspected during the TEA 24 grant performance period unless otherwise authorized by your CalRecycle inspector liaison. Your work plan has been prepared to include only active, eligible TPIDs. If you find a TPID has been included on your work plan that you believe is ineligible based on the TEA 24 Procedures and Requirements or the information contained below, do not inspect it. If you are unsure whether or not a TPID should be inspected, contact your CalRecycle inspector liaison prior to conducting the inspection. If you determine that any TPID is ineligible, include a comment in the Comments section of your work plan for the TPID stating “Inspection not completed because TPID belongs to a (ineligible facility type).” Inspection of Non-Work Plan TPIDs CalRecycle Inspection Requests CalRecycle may request that you inspect waste tire locations or investigate alleged violations that are not on your TEA work plan. When you have completed the requested inspections, add them to your work plan in the Additional Inspections section and in the Comments section write "Inspection requested by (requestor’s name) of CalRecycle on (date)." 2017-10-17 Agenda Packet Page 49 TEA 24 Inspection Priority Work Plan Instructions Page 2 of 4 Notice of Violation Re-inspections When you issue a Notice of Violation (NOV), you must re-inspect these TPIDs within 15 days following the compliance deadline date or the extended compliance deadline date, if applicable. Add these re-inspections to your work plan in the Additional Inspections section and in the Comments section write "NOV re-inspection for inspection #(inspection number).” Inspections in Response to Complaints or Referrals Grantees may inspect without pre-approval waste tire locations, operations, and issues you become aware of, or in response to complaints or referrals received from the general public, or from business and government representatives, involving:  An illegal waste tire facility with 500 or more waste tires.  An illegal waste or used tire hauler.  A tire location that poses an immediate risk or threat to public health and safety, and/or the environment. (This does not apply to illegal sites that the Grantee knows CalRecycle is aware of and/or actively pursuing enforcement actions against). If the waste tire location does not already have a TPID, obtain a TPID for the site by contacting the CalRecycle Waste Tire Hotline at 1-866-896-0600 (toll-free). Notify your CalRecycle inspector liaison within 48 hours following the inspection about your findings and the circumstances that necessitated an inspection. The inspection reports for these types of inspections must include a description of the complaint or referral that necessitated the inspection. Add these inspections to your work plan in the Additional Inspections section and in the Comments section write "Inspection in response to complaint/referral of (explanation). CalRecycle inspector liaison (name) notified on (date)." Inspections of other non-work plan TPIDs Within the limits of your approved budget, all other eligible, active TPIDs within your jurisdiction that are not on your work plan may be inspected as long as all of the work plan TPIDs will be inspected within the TEA 24 grant performance period. Inspections of work plan TPIDs are a priority but do not have to be completed before any non-work plan inspections can be conducted. The scheduling of all TEA 24 inspections is the responsibility and at the discretion of the TEA in accordance with their individual organizational structure, business practices, and workflow management. Add non-work plan inspections to your work plan in the Additional Inspections section. Failure to complete all work plan inspections may result in your jurisdiction not being reimbursed for costs associated with the non-work plan inspections. Do not inspect Small Quantity Generators not included in your work plan TPIDs listed in WTMS with a single Role/Status designation as “Generator, Small Quantity” (SQG), as well as TPIDs with SQG and “End Use” Role/Status designations, 2017-10-17 Agenda Packet Page 50 TEA 24 Inspection Priority Work Plan Instructions Page 3 of 4 that previously have been inspected at least once, may only be inspected if your assigned CalRecycle liaison has given pre-approval or requested you to perform the inspection. TPIDs with SQG and “Hauler” Role/Status designations should be inspected as with any other Hauler TPID and are not restricted by the SQG designation. Inspections of SQGs included on your work plan as well as inspections of SQGs that previously have never been inspected are considered pre-approved. Add any non-work plan, pre-approved SQG inspections to your work plan in the Additional Inspections section and in the Comments section write either “Inspection of SQG not previously inspected” or “SQG inspection pre-approved by CalRecycle inspector liaison (name) on (date).” Contact your CalRecycle inspector liaison to clarify any discrepancies or questions prior to conducting any SQG inspections. Failure to obtain pre-approval for SQG inspections not included on your work plan or not otherwise pre-approved may result in your jurisdiction not being reimbursed for costs associated with the inspections. Do not inspect Closed and Inactive TPIDs TPIDs listed in WTMS with a Business Status of “Closed” or “Inactive” may only be inspected if your assigned CalRecycle liaison has given pre-approval or requested you to perform the inspection. The reports for these types of inspections must include a description of the information received or observed that necessitated the inspection. Add these inspections to your work plan in the Additional Inspections section and in the Comments section write "Closed/inactive TPID inspected because (explanation). Inspection was pre-approved by CalRecycle liaison (name) on (date).” Contact your CalRecycle inspector liaison to clarify any discrepancies or questions prior to conducting any inspections of closed or inactive TPIDs. Failure to obtain pre-approval for inspections of closed/inactive TPIDs may result in your jurisdiction not being reimbursed for costs associated with the inspections. Do not inspect Farm/Ranch/Dairy/Ag TPIDs or TPIDs on Tribal Land Inspections of agricultural TPIDs are the responsibility of CalRecycle and grantees may only inspect agricultural TPIDs when performing a joint inspection with CalRecycle or if requested and pre-approved by your CalRecycle inspector liaison. Alternatively, tribal land falls under federal jurisdiction and waste tire facilities on tribal land are not to be inspected by CalRecycle or TEA grantees. If you find a TPID has been included on your work plan that you believe is ineligible based on the above, do not inspect it. Contact your CalRecycle inspector liaison to clarify any discrepancies or questions prior to conducting the inspection. If you conduct a pre-approved inspection of one of these types of facilities, add it to your work plan in the Additional Inspections section and in the Comments section write "Inspection was pre-approved by CalRecycle inspector liaison (name) on (date).” 2017-10-17 Agenda Packet Page 51 TEA 24 Inspection Priority Work Plan Instructions Page 4 of 4 Failure to obtain pre-approval for inspections of farm/ranch/dairy/ag TPIDs or TPIDs on tribal land may result in your jurisdiction not being reimbursed for costs associated with the inspections. Do not inspect Major and Minor Permitted Waste Tire Facilities Inspections of TPIDs listed in WTMS as being either a major or a minor permitted waste tire facility are the responsibility of CalRecycle and TEA grantees may only inspect permitted facilities when performing a joint inspection with CalRecycle. If you find a TPID has been included on your work plan that you believe is ineligible based on the above, do not inspect it. Contact your CalRecycle inspector liaison to clarify any discrepancies or questions prior to conducting the inspection. If you conduct a pre- approved inspection of a permitted waste tire facility, add it to your work plan in the Additional Inspections section and in the Comments section write "Inspection was preapproved by CalRecycle inspector liaison (name) on (date).” Failure to obtain pre-approval for inspections of major and minor permitted waste tire facilities may result in your jurisdiction not being reimbursed for costs associated with the inspections. 2017-10-17 Agenda Packet Page 52 2017-10-17 Agenda Packet Page 53 City of Chula Vista Staff Report File#:17-0410, Item#: 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A CITY COUNCIL POLICY REGARDING ELECTRONIC SIGNATURE USE RECOMMENDED ACTION Council adopt the resolution. SUMMARY Adoption of the resolution would: 1) establish that electronic signatures are effective on City documents when certain requirements regarding the security and integrity of electronic signatures are met; 2) authorize the City Manager to determine the technologies or vendors that satisfy these requirements, as well as the documents for which the City would accept electronic signatures; and 3) authorize the City Manager and City Clerk, in consultation with the City Attorney, to develop administrative policies and procedures to implement the Council policy. ENVIRONMENTAL REVIEW Environmental Notice 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 Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION An electronic signature is any electronic symbol that represents an individual’s acceptance or adoption of a statement or transaction. It may be as simple as typing a name or checking a box. Regulations related to use of electronic signatures have been in place for nearly 20 years. Electronic signatures that meet certain requirements are recognized as valid and legally binding under the United States Electronic Signatures in Global and National Commerce (ESIGN) Act, the California Uniform Electronic Transactions Act (UETA), and California Government Code section 16.5. Benefits of using electronic signatures include: reduction of paper generation; significant decrease in time and cost associated with transmitting, approving, and retaining physical documents; as well as City of Chula Vista Printed on 10/12/2017Page 1 of 3 powered by Legistar™2017-10-17 Agenda Packet Page 54 File#:17-0410, Item#: 3. time and cost associated with transmitting, approving, and retaining physical documents; as well as creation of an audit trail of the modification, editing, and approval/signing of documents. Analysis following implementation of electronic signatures in the City of Palo Alto indicated a 70% reduction in turnaround time for the signing of contracts and a $42 average savings per completed transaction. In 2016, the City Clerk’s Office coordinated signatures for 397 documents, consisting of agreements, minutes, resolutions, and ordinances, which generally required one to four signatures per document. Assuming the parties would have been amenable to signing electronically, and applying an estimated $35-per-transaction cost reduction, the savings would have been nearly $14,000. Savings includes hard-dollar costs, such as those associated with mailing, printing, scanning, and physical storage, as well as productivity gains from reducing the manual processing of paper documents. A common concern with electronic signatures is the ability to verify the identity of the person affixing the signature. A variety of options for authentication exist through electronic signature technologies which require signers to prove their identity before being given access to documents to sign. Staff has researched various electronic signature platforms that offer a high degree of security and integrity. Several vendors offer cloud-based document and signature management systems that feature multi-factor identity verification (e.g. by email and phone), password protection, and/or other form of identity and signature verification processes, without requiring signers to have specialized software. Some vendors also offer integration with some of the City’s existing technologies, such as Laserfiche, the City’s electronic records management system, which magnifies the benefits of reducing processing time and ensuring appropriate records management. The proposed policy would allow the City to authorize the use of electronic signatures on City documents while also allowing it to balance flexibility and security. Specifically, the policy would: 1) establish that electronic signatures are effective on City documents when certain requirements regarding the security and integrity of electronic signatures are met; 2) authorize the City Manager to determine the particular technologies or vendors that satisfy these requirements, as well as the documents for which the City would accept electronic signatures; and 3) authorize the City Manager and City Clerk, in consultation with the City Attorney, to develop administrative policies and procedures to implement the policy. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Implementing use of electronic signatures supports the City’s goal of Operational Excellence by reducing paper generation; decreasing the time and cost associated with transmitting, approving, and retaining City of Chula Vista Printed on 10/12/2017Page 2 of 3 powered by Legistar™2017-10-17 Agenda Packet Page 55 File#:17-0410, Item#: 3. generation; decreasing the time and cost associated with transmitting, approving, and retaining physical documents; as well as the creation of an audit trail of the modification, editing, and approval/signing of documents. CURRENT YEAR FISCAL IMPACT The pilot program has an estimated impact of $6,073 during the current fiscal year. Staff is not requesting an appropriation at this time as funds are included in the FY 2017/2018 budget. ONGOING FISCAL IMPACT Should the pilot program be successful and electronic signatures be implemented more widely, ongoing funding would be identified as part of the regular budget process. Staff anticipates that future costs would be offset by savings (mailing costs, hourly staff, etc.). ATTACHMENTS 1. Exhibit 1 - Proposed Council Policy Regarding Electronic Signature Use Staff Contacts: Kerry Bigelow, City Clerk; David Bilby, Finance Director; Edward Chew, Director of ITS City of Chula Vista Printed on 10/12/2017Page 3 of 3 powered by Legistar™2017-10-17 Agenda Packet Page 56 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A CITY COUNCIL POLICY REGARDING ELECTRONIC SIGNATURE USE WHEREAS, Electronic signatures that meet certain requirements are recognized as valid and legally binding under the United States Electronic Signatures in Global and National Commerce (ESIGN) Act, the California Uniform Electronic Transactions Act (UETA), and California Government Code section 16.5; and WHEREAS, The use of electronic signatures on legally binding documents has become increasingly prevalent in the private sector but has yet to find widespread adoption by public entities; and WHEREAS, Benefits of using electronic signatures include: reduction of paper generation; significant decrease in time and cost associated with transmitting, approving, and retaining physical documents; as well as creation of an audit trail of the modification, editing, and approval/signing of documents; and WHEREAS, The City wishes to authorize the use of electronic signatures in certain situations in accordance with Council Policy No. ____ (Electronic Signature Use), attached hereto as Exhibit 1. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby adopts Council Policy No.______ (Electronic Signature Use) to allow for acceptance of electronic signatures that meet certain requirements, as set forth in Exhibit 1 to this Resolution, attached and incorporated by this reference. Presented by Approved as to form by Kerry K. Bigelow Glen R. Googins City Clerk City Attorney 2017-10-17 Agenda Packet Page 57 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: ELECTRONIC SIGNATURE USE POLICY NUMBER EFFECTIVE DATE PAGE TBD TBD 1 OF 2 ADOPTED BY: TBD DATED: TBD AMENDED BY: N/A BACKGROUND The use of electronic signatures on legally binding documents has become increasingly prevalent in the private sector but has yet to find widespread adoption by public entities. Benefits of using electronic signatures include: reduction of paper generation; significant decrease in time and cost associated with transmitting, approving, and retaining physical documents; as well as creation of an audit trail of the modification, editing, and approval/signing of documents. The United States Electronic Signatures in Global and National Commerce (ESIGN) Act, and the California Uniform Electronic Transactions Act (UETA) require the following four elements for an electronic signature to be recognized as valid under U.S. and State law: 1. Intent to sign – Electronic signatures, like traditional, handwritten signatures, are valid only if each party intended to sign. 2. Consent to do business electronically – The parties to the transaction must consent to do business electronically. Electronic records may be used in transactions with consumers only when the consumer has: - Received UETA Consumer Consent Disclosures - Affirmatively agreed to use electronic records for the transaction - Has not withdrawn such consent 3. Association of signature with the record – In order to qualify as an electronic signature under the ESIGN Act and UETA, the system used to capture the transaction must keep an associated record that reflects the process by which the signature was created, or generate a textual or graphic statement (which is added to the signed record) proving that it was executed with an electronic signature. 4. Record retention – U.S. laws on electronic signatures and transactions require that electronic signature records be capable of retention and accurate reproduction for reference by all parties or persons entitled to retain the contract or record. PURPOSE To enable the City of Chula Vista to use and accept approved electronic signatures, in lieu of written signatures, that comply with the requirements of California Government Code section 16.5, the UTEA, the ESIGN Act, and other applicable laws and regulations. POLICY Acceptance of electronic signatures. It is the policy of the City of Chula Vista to encourage the use of electronic signatures in internal and external activities, documents, and transactions when it is operationally feasible, where technology permits, and when it is otherwise appropriate in the discretion of the City Manager, in accordance with provisions that follow. 2017-10-17 Agenda Packet Page 58 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: ELECTRONIC SIGNATURE USE POLICY NUMBER EFFECTIVE DATE PAGE TBD TBD 2 OF 2 ADOPTED BY: TBD DATED: TBD AMENDED BY: N/A To the extent permitted by law, the City accepts electronic signatures as legally binding and equivalent to handwritten signatures to signify an agreement in accordance with applicable laws and regulations. The parties to a transaction must agree to conduct the transaction by electronic means with the use of a City-approved electronic signature method that complies with applicable laws and regulations, including the capability of all parties to retain and accurately reproduce the electronically signed document or record. This policy does not supersede laws that specifically require a handwritten signature, nor does it limit the right or option of the City to conduct the transaction on paper or in non-electronic form. Prohibited Uses of Electronic Signatures. Use of electronic signatures is prohibited in the following situations: - Transactions for which electronic signatures are not enforceable by law and/or transactions requiring a handwritten signature, such as transfers of real property. - Transactions that require a person to sign in the presence of a notary public. Electronic Signature Methods The City Manager shall determine acceptable technologies and vendors that are consistent with industry best practices to ensure the security and integrity of the data and the signatures. The City Manager shall further determine the documents for which the City will accept electronic signatures. Administrative Policies and Procedures. The City Manager and City Clerk, in consultation with the City Attorney, shall have the authority to develop administrative policies and procedures to the extent necessary to implement the terms of this policy. 2017-10-17 Agenda Packet Page 59 City of Chula Vista Staff Report File#:17-0440, Item#: 4. A. RESOLUTION OF THE MUNICIPAL FINANCING AUTHORITY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) B. RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) C. RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) RECOMMENDED ACTION Authorities and Agency adopt the resolutions. SUMMARY Approval of this item will change the regular meeting days for the Municipal Financing Authority and the Public Financing Authority from the same days and times as regular meetings of the City Council to the first Tuesday of each month at 5:00 p.m. It will also change the time of regular meetings of the Successor Agency to the Redevelopment Agency, which are held on the first Tuesday of each month, from 2:00 p.m. to 5:00 p.m. These changes will result in the regular meetings of these agencies being held once per month, on the first Tuesday of each month, at 5:00 p.m., which will be concurrent with a regular City Council meeting. ENVIRONMENTAL REVIEW Environmental Notice 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 Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. City of Chula Vista Printed on 10/12/2017Page 1 of 2 powered by Legistar™2017-10-17 Agenda Packet Page 60 File#:17-0440, Item#: 4. DISCUSSION On March 15, 2016, the Municipal Financing Authority (MFA) and Public Financing Authority (PFA) (jointly the “Authorities”) adopted Resolution Nos. MFA 2016-001 and PFA 2016-001, respectively, establishing their regular meetings on the same day and time of each regular City Council meeting. The Authorities no longer have need to meet weekly on a regular basis. The proposed resolutions change the regular meeting day to the first Tuesday of each month. Regular meetings will continue to be held concurrently with the City Council meeting, beginning at 5:00 p.m. On February 26, 2013, the Successor Agency to the Redevelopment Agency (“SA”) adopted Resolution No. SA 2013-014, setting the day and time of regular meetings as the first Tuesday of each month at 2:00 p.m. (or, immediately following the City Council regular meeting). At that time, regular meetings of the City Council were held at 2:00 p.m. and were subsequently changed to 5:00 p.m. Adoption of the proposed resolution aligns the time of regular SA meetings with regular City Council meetings. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Aligning the start times of these agencies’ regular meetings and reducing the frequency of regular meetings will help streamline operations and reduce administrative processing required to cancel regular meetings. CURRENT YEAR FISCAL IMPACT There is no current year fiscal impact other than City Staff time to prepare this report. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS None Staff Contact: Kerry Bigelow, City Clerk City of Chula Vista Printed on 10/12/2017Page 2 of 2 powered by Legistar™2017-10-17 Agenda Packet Page 61 RESOLUTION NO. 2017-__________ RESOLUTION OF THE MUNICIPAL FINANCING AUTHORITY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) WHEREAS, Government Code section 54954(a) requires that the Municipal Financing Authority set the time and place of its meetings via resolution adopted in open session; and WHEREAS, the Municipal Financing Authority currently holds its regular meetings on the same days and times as regular meetings of the City Council, which are the first four Tuesdays of the month at 5:00 p.m. in City Council Chambers, 276 Fourth Avenue, Chula Vista, CA 91910; and WHEREAS, the Municipal Financing Authority no longer has need to meet four times per month on a regular basis. NOW, THEREFORE, BE IT RESOLVED by the Municipal Financing Authority of the City of Chula Vista, that it sets the day and time of regular meetings as the first Tuesday of each month at 5:00 p.m. Presented by Approved as to form by Kerry K. Bigelow Glen R. Googins City Clerk City Attorney 2017-10-17 Agenda Packet Page 62 RESOLUTION NO. 2017-__________ RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) WHEREAS, Government Code section 54954(a) requires that the Municipal Financing Authority set the time and place of its meetings via resolution adopted in open session; and WHEREAS, the Public Financing Authority currently holds its regular meetings on the same days and times as regular meetings of the City Council, which are the first four Tuesdays of the month at 5:00 p.m. in City Council Chambers, 276 Fourth Avenue, Chula Vista, CA 91910; and WHEREAS, the Public Financing Authority no longer has need to meet four times per month on a regular basis. NOW, THEREFORE, BE IT RESOLVED by the Public Financing Authority of the City of Chula Vista, that it sets the day and time of regular meetings as the first Tuesday of each month at 5:00 p.m. Presented by Approved as to form by Kerry K. Bigelow Glen R. Googins City Clerk City Attorney 2017-10-17 Agenda Packet Page 63 RESOLUTION NO. 2017-__________ RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA SETTING THE DAY AND TIME OF REGULAR MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 54954(A) WHEREAS, Government Code section 54954(a) requires that the Successor Agency to the Redevelopment Agency set the time and place of its meetings via resolution adopted in open session; and WHEREAS, the Successor Agency to the Redevelopment Agency currently holds its regular meetings on the first Tuesday of the month at 2:00 p.m. in City Council Chambers, 276 Fourth Avenue, Chula Vista, CA 91910; and WHEREAS, the Successor Agency to the Redevelopment Agency desires to change the start time of its regular meetings to 5:00 p.m., in order to hold its regular meetings concurrently with the City Council. NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the Redevelopment Agency of the City of Chula Vista, that it sets the day and time of regular meetings as the first Tuesday of each month at 5:00 p.m. Presented by Approved as to form by Kerry K. Bigelow Glen R. Googins City Clerk City Attorney 2017-10-17 Agenda Packet Page 64 City of Chula Vista Staff Report File#:17-0443, Item#: 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE IMPLEMENTATION AGREEMENT BETWEEN THE CITY AND THE ORGANIZED CRIME DRUG ENFORCEMENT TASK FORCE TO SUPPORT THE SAN DIEGO REGION STRIKE FORCE AND APPROVING THE THIRD AMENDMENT TO THE BUILDING LEASE RECOMMENDED ACTION Council adopt the resolution. SUMMARY On July 30, 2010, the Police Department entered into a lease agreement relating to the Federal Bureau of Investigation’s Organized Crime Drug Enforcement Task Force (OCDETF) for the task force to occupy office space at a covert location. The City is fully reimbursed by OCDETF for all lease costs and receives a 3% fee for administering the expenses associated with the rental and operation of the office space. The current lease expires on October 31, 2017. Staff is requesting approval of an implementation agreement to extend the existing lease until October 31, 2019 and approval of the third amendment to the building lease. ENVIRONMENTAL REVIEW Environmental Notice 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. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION The Organized Crime Drug Enforcement Task Force (OCDETF) Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. This program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises. Similar to other regional task forces, the purpose of OCDETF is to combine the efforts of federal, state, and local law enforcement agencies to collaborate in high profile investigations. On July 30, 2010, the Police Department entered into a lease agreement for OCDETF to occupy office space in San Diego to support operations of the San Diego Region Strike Force. As the tenant under the lease, the City is fully reimbursed by OCDETF for all costs associated to the lease. The Police Department currently receives a 3% administrative fee for administering the City of Chula Vista Printed on 10/12/2017Page 1 of 2 powered by Legistar™2017-10-17 Agenda Packet Page 65 File#:17-0443, Item#: 5. lease. The Police Department currently receives a 3% administrative fee for administering the expenses associated with the rental/operation/maintenance/ renovation of the office space as well as operational expenses in support of OCDETF investigations. The current lease for the OCDETF office space expires on October 31, 2017. Staff is requesting approval of an implementation agreement to extend the existing lease until October 31, 2019. Staff also is requesting approval of the third amendment of the building lease, titled Third Amendment to Standard Industrial Net Lease. Along with the two-year extension of the lease, OCDETF agrees to increase the City’s administrative fee from 3% to 4%. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The partnership with Organized Crime Drug Enforcement Task Force supports the goal of Strong and Secure Neighborhoods by allowing to Police Department to collaborate with other law enforcement agencies to solve investigations. CURRENT YEAR FISCAL IMPACT Approval of this resolution will approve the implementation agreement with OCDETF and allow the City to continue administering the rental and operations of the task force office space. The City is fully reimbursed for all OCDETF operational expenses and will receive a 4% administrative fee as a tenant of the office space, instead of 3% previously. Because of the 1% increase effective 10/1/2017, there is a positive impact of $7,000 to the General Fund in the current fiscal year. ONGOING FISCAL IMPACT The ongoing annual cost of OCDETF operations at the office space is approximately $950,000. These operational costs are fully reimbursed by OCDETF funds, and the City will receive a 4% administrative fee instead of 3% previously. Because of the 1% increase, there will be a positive impact of approximately $9,500 to the General Fund each fiscal year. ATTACHMENTS Attachment 1: Implementation Agreement with OCDETF Attachment 2: Third Amendment to Standard Industrial Net Lease Staff Contact: Jonathan Alegre, Police Department City of Chula Vista Printed on 10/12/2017Page 2 of 2 powered by Legistar™2017-10-17 Agenda Packet Page 66 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE IMPLEMENTATION AGREEMENT BETWEEN THE CITY AND THE ORGANIZED CRIME DRUG ENFORCEMENT TASK FORCE TO SUPPORT THE SAN DIEGO REGION STRIKE FORCE AND APPROVING THE THIRD AMENDMENT TO THE BUILDING LEASE WHEREAS, on July 30, 2010, the Police Department entered into a lease agreement for the Federal Bureau of Investigation’s Organized Crime Drug Enforcement Task Force (OCDETF) to occupy office space in San Diego to support operations of the San Diego Region Strike Force; and WHEREAS, as the tenant under the lease, the City is fully reimbursed by OCDETF for all expenses associated with the rental/operation/maintenance/renovation of the office space and receives a fee for administering said expenses; and WHEREAS, the current lease for the OCDETF office space expires on October 31, 2017, and staff is requesting approval of an implementation agreement with OCDETF to extend the existing lease until October 31, 2019; and WHEREAS, staff also is requesting approval of the third amendment to the building lease, titled Third Amendment to Standard Industrial Net Lease. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the implementation agreement between the City and the Organized Crime Drug Enforcement Task Force to support the San Diego Region Strike Force, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it approves the third amendment to the building lease, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. Presented by Roxana Kennedy Chief of Police Approved as to form by Glen R. Googins City Attorney 2017-10-17 Agenda Packet Page 67 IMPLEMENTATION AGREEMENT OCDETF] This IMPLEMENTATION AGREEMENT [OCDETF] ("Agreement") is entered into effective as of October _, 2017, by and between the CITY OF CHULA VISTA, a chartered municipal corporation ("City") and the FEDERAL BUREAU OF INVESTIGATION, Organized Crime Drug Enforcement Task Force ("OCDETF"), San Diego Region Strike Force with reference to the following facts: Recitals A. Since on or about 2010, City and OCDETF have entered into a series of annual agreements, each entitled "Agreement for the Use of the OCDETF Strike Force/Strategic Initiative Programs" (collectively, the "OCDETF Agreements") for the administration of the OCDEJT program, as more particularly described therein ("OCDETF Program"). B. In furtherance of the OCDETF Agreements, at OCDETF's request City entered into, as "Tenant", a Standard Industrial Net Lease, and the First Amendment and Second Amendment thereto (collectively, the "Lease") with Collins Business Park TIC ("Landlord") for that certain industrial/office space located at San Diego, CA Premises"), C. While the City is the named "Tenant" under the Lease, the OCDETF is the occupant and user of the Premises for purposes of administering the OCDETF Program. D. Pursuant to the OCDETF Agreements, OCDETF agreed to reimburse the City for, among other things, rental, utility, maintenance, construction, and renovation expenses incurred by City under the Lease. E. OCDETF has requested that City continue to serve as the named "Tenant" under the Lease, and to enter into a 'Third Amendment to extend the term of the Lease ("Third Amendment") for two additional years from November 1, 2017 through October 31, 2019. F. As consideration for City potentially agreeing to enter into the Third Amendment, the City and OCDETF have engaged in discussions regarding entering into a subsequent iteration of the OCDETF Agreements for fiscal year 2018, from October 1, 2017 to September 30, 2018 FY 2018 Agreement") and for fiscal year 2019, from October 1, 2018 to September 30, 2019 FY 2019 Agreement"). G. OCDETF has indicated to City that its ability to enter into the FY 2018 Agreement and FY 2019 Agreement is subject to the availability of federal funds. 1. City and OCDETF desire to clarify and reduce to writing certain obligations of the parties for the implementation of the Lease, Third Amendment, proposed FY 2018 Agreement, proposed FY 2019 Agreement, and any other future agreements entered into for the Page I 2017-10-17 Agenda Packet Page 68 purpose of reimbursing the City for actual costs incurred under the Lease and/or Third Amendment, on the terms and conditions stated in this Agreement, NOW, THEREFORE, in consideration of theabove recitals, the terms and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, City and OCDETF hereby agree as follows: 1. LEASE EXTENSION AND FUNDING In furtherance of the OCDETF Program, City agrees to enter into, as "Tenant",. the Third Amendment, in substantially the form attached hereto as Exhibit A, thereby extending the Lease until October 31, 2019. In consideration thereof, OCDETF agrees to reimburse City for all actual costs incurred by City as "Tenant" under the Lease as amended. Such costs shall include, without limitation, any costs of compliance with Article 9 and Article 13 of the Lease. 2. MISCELLANEOUS EXPENSES/ADMINISTRATIVE FEES OCDETF agrees that the "Miscellaneous Expenses/Admin Fees" to be designated and paid by OCDETF to City under the FY 2018 Agreement, and proposed for designation and payment under the FY 2019 Agreement, shall be four percent (4%) of the actual total operational costs" identified in such agreements for OCDETF Program operations at the Premises during the term of the Lease. 3. CONTINGENT COST REIMBURSEMENT To the maximum extent allowed by law, OCDETF agrees to hold harmless City and its elected officials, appointed officials, agents, and employees ("City Parties") from incidents/costs arising out of or in connection to its occupancy and use of the Premises and the obligations under the Lease, as amended. Ihis provision does not include any costs arising from the sole negligence or willful misconduct of the City Parties. 4. LIMITATIONS BASED ON FUNDING OCDETF agrees to utilize its best efforts to secure any and all federal funding necessary to satisfy its obligations under this Agreement. OCDETF will notify City on or before March 21, 2018 whether it expects to secure sufficient federal funds for the upcoming federal fiscal year (October Ist through September 30th) to satisfy such obligations. If OCDETF notifies City that it will not be able to secure sufficient funding, OCDETF agrees to utilize all best efforts to secure funding from alternate sources to satisfy its obligations under this Agreement, and/or to cooperate with City to cause the early termination of the Lease at no cost to the City. 5. GENERAL PROVISIONS 5.1 Amendment. This Agreement may be amended, but only in writing signed by all Parties. Page 2 2017-10-17 Agenda Packet Page 69 5. 2 Assignment. The parties shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without both parties' prior written consent. 5.3 Authority. The persons) executing this Agreement warrant and represent that they have the authority to execute same on behalf of the respective party and to bind the respective party to its obligations hereunder. 5.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one agreement after each party has signed such a counterpart. 5. 5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Patties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. Other than the related past and future agreements identified herein, prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 5.6 Further Assmances. The parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to cavy out the provisions of this Agreement and the intentions of the parties. 5. 7 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the places of business for each of the designated parties, or otherwise provided in writing. End of page. Next page is signature page.) Page 3 2017-10-17 Agenda Packet Page 70 10/05/2017 14:22 FAX OCDETF 0002/002 SIGNATURE PAGE IN W11NESS N'i-IERF,OF, by executing this Agreement where indicated below. Cltc and OCDE I F agree that thev have read and understood all tenor and conditions of the Agreement. and that they &dly agree and consent to be bound by same. CITY OF CHULA VISTA, a chartered municipal corporation Lav: Gar\Halibut. APPROVED AS TO FORM: BN: Glen R Googins. City Attoincv FEDERAL BUREAU OF INVESTIGATION, SAN DIEGO Eric S_ Birnbaum Special iAgent in Charge ocmEIF,LX cUTNE OFFICE By: %05/7 Peter Maxev. lixMQiveiBQtdget/Security 011 -icer i Paec 4 2017-10-17 Agenda Packet Page 71 THIRD AMENDMENT TO STANDARD INDUSTRIAL NET LEASE This Third Amendment to Standard Industrial Net Lease ("Third Amendment"), is executed as of October _, 2017, by and between COLLINS BUSINESS PARK TIC Landlord"), and THE CITY OF CHULA VISTA, a municipal corporation (" Tenant"), with reference to the following facts: RECITALS A. On or about July 30, 2010, Landlord's predecessor -in -interest and Tenant entered into a Standard Industrial Net Lease (the "Lease") for the commercial real property located at San Diego, CA consisting of approximately 18,220 rentable square feet (the "Initial Premises"). B. On or about January 26, 2011, Landlord's predecessor -in -interest and Tenant entered into a First Amendment to Standard Industrial Net Lease (the "First Amendment"), which provided, among other things, for an extension of the Lease term, through March 31, 2014, on the terms and conditions stated therein. C. On or about August 28, 2012, Landlord's predecessor -in -interest and Tenant entered into a Second Amendment to Standard Industrial Net Lease (the " Second Amendment"), which provided, among other things, as follows: (i) for an expansion of the Initial Premises to include approximately 5,795 rentable square feet at San Diego, CA the "Expansion Premises"); and (ii) for an extension of the Lease term, through October 31, 2017, on the terms and conditions stated therein. D. The term "Lease," as used herein, shall refer to the Lease, as amended by the First Amendment, and Second Amendment, respectively. The term "Premises," as used herein shall be deemed to refer to the Initial Premises and the Expansion Premises collectively, consisting of approximately 24,015 rentable square. E. Landlord subsequently acquired its predecessors' right, title and interest in the Premises and has assumed its predecessors' obligations under the Lease. F. Landlord and Tenant desire to amend the Lease on the terms and conditions set forth herein. G. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Lease. AMENDMENT NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other valuable consideration, the receipt of which is hereby acknowledged, the Lease is hereby amended as follows: 7. Lease Term. The term of the Lease shall be extended for an additional two (2) years, commencing on November 1, 2017, and expiring on October 31, 2019 (the "Extended Lease Term"). The new "Expiration Date" shall be October 31, 2019. 2. Minimum Monthly Rent. The Minimum Monthly Rent for the Premises (as defined in Section 1.5 of the Lease and subsequently modified by the First Amendment and Second Amendment) shall be as follows: November 1, 2017, through October 31, 2018: $37,223.25 per month November 1, 2018, through October 31, 2019: $38,339.95 per month Tenant shall be required to pay Operating Costs (Article 6), Maintenance and Repairs Article 7), Real Property Taxes ( Article 8), Insurance Costs (Article 9), Utilities (Article 10), and any and all other monetary obligations required to be paid by Tenant under the Lease during the entire Extended Lease Term. 3. No Other Change. The Lease, together with all Exhibits, and the First Amendment, Second Amendment, and Third Amendments, constitutes the entire agreement between Landlord and Tenant pertaining to the Premises, and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written. The Lease, as amended 2017-10-17 Agenda Packet Page 72 by this Third Amendment, may not be further modified or amended except by an instrument in writing, executed by the party to be charged thereby. Except as specifically set forth in this Third Amendment, all of the terms and conditions of the Lease shall remain unchanged and in full force and effect. 4. Brokers. Landlord and Tenant hereby represent and warrant that such parties have not retained any real estate broker, agent, or finder in connection with the negotiation of this Third Amendment and each party hereby indemnifies, defends and hold harmless the other party from and against any brokerage commission or fee claimed by any real estate broker, agent, or finder based upon the actions or statements of the indemnifying party. 5. Recitals. Recitals A through G above are incorporated herein by this reference as though set forth in full. 6. Third Amendment Controls. In the event of a dispute arises between the terms of this Third Amendment and the terms of the Lease, the terms of the Third Amendment shall control. 7. Authority. Each party acknowledges that (i) he/she/it is legally authorized and directed to an into this Third Amendment, thereby amending the Lease obligation to which he/she/it is bound by the provisions of this Third Amendment, and (ii) the person(s) executing this Third Amendment on his/her/its behalf have been duly authorized and directed to execute this Third Amendment. 8. Counterparts; E -Mall: Facsimile. This Third Amendment may be executed in one or more counterparts, all of which shall constitute a single agreement and each of which shall be deemed an original for all intents and purposes. This Third Amendment may be executed by e-mail or facsimile of one or more parties delivered to the other parties (or to the counsel thereto) and the e-mail or facsimile signature(s) shall constitute delivery of this Third Amendment. A fully executed e-mail or facsimile may constitute an original for all intents and purposes. IN WITNESS WHEREOF, this Third Amendment is executed as of the date first above written. LANDLORD: COLLINS BUSINESS TIC Miller Commercial Properties, LLC a California limited liability company Its General Partner By: Grant Matthew Miller 2011 Irrevocable Trust, Its: Membe By: Name: Grant Matthew Miller Its: Trustee TENANT: THE CITY OF CHU LA VISTA, a municipal corporation By: Title: By: Title: 2017-10-17 Agenda Packet Page 73 City of Chula Vista Staff Report File#:17-0460, Item#: 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PURCHASE AGREEMENT BETWEEN THE CITY AND NATIONAL AUTO FLEET GROUP INC. IN THE AMOUNT OF $385,396.46 FOR THE PURCHASE OF FIFTEEN (15) NISSAN LEAF SV HATCHBACKS RECOMMENDED ACTION Council adopt the resolution. SUMMARY The Measure P Expenditure Plan provides for the replacement of failing infrastructure and includes 15 light-duty non-emergency vehicles. The State of California is offering a $10,000 per vehicle rebate under the Public Fleet Pilot Project program. The Public Fleet Pilot Project limits rebates to no more than 30 vehicles per calendar year per agency and the deadline for submittal is December 31, 2017. The City’s rebate request is $150,000 and that is estimated to be 25% of the State rebate remaining funds which are rapidly depleting. The replacement of the 15 failing vehicles with Nissan Leaf battery electric vehicles advances City objectives that include reducing both operational costs and greenhouse gas emissions. The City of Chula Vista Municipal Code Section 2.56.140 and Council Resolution No. 6132 authorize the City to participate in cooperative bids with other government agencies for the purchase of materials of common usage, provided that the Purchasing Agent determines that the competitive process used for the cooperative bid was consistent with good purchasing practices. ENVIRONMENTAL REVIEW Environmental Notice 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 Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. City of Chula Vista Printed on 10/12/2017Page 1 of 3 powered by Legistar™2017-10-17 Agenda Packet Page 74 File#:17-0460, Item#: 6. DISCUSSION Chula Vista voters approved Measure P - a temporary, ten-year, half-cent sales tax to fund high priority infrastructure needs. This Plan focuses on the areas where one-time funds could be used to address critical deferred maintenance or replacement of city failing assets such as the 15 identified City vehicles. Approval of the purchase will strengthen the City’s overall financial condition by avoiding costly emergency repairs or further deterioration of existing failing fleet vehicles. These 15 failing vehicles have specifications that are compatible with replacement with an EV such as the Nissan Leaf. These vehicles will be deployed in sections including Senior Volunteer Patrol, School Resource Officer, Code Enforcement, Construction Inspection, National Pollutant Discharge Elimination System and Engineering/Civic Center. The California Public Fleet Pilot Project is a set-aside within the Clean Vehicle Rebate Project that provides increased incentives for public entities that own and operate vehicles in disadvantaged communities. The Public Fleet Pilot Project rebate replaces the standard CVRP rebate for eligible public entities and offers rebates of $10,000 for up to thirty battery-electric vehicles. The City of Chula Vista is an eligible entity and the acquisitions of these fifteen Nissan Leafs qualify for the rebate. The anticipated rebate amount of $150,000 reduces the acquisition cost by approximately 39% and results in a anticipated net impact to Measure P Fund of $235,396.46. The City will realize a reduction in unleaded fuel use of approximately 3,500 gallons annually to zero gallons for this subset of vehicles. This reduction provides two benefits, one is in environmental sustainability and the other is operating cost reduction. The environmental benefits include a reduction in greenhouse gas emissions such as Carbon Dioxide. In Fiscal Year 2016/2017 the old vehicles emitted over 55,000 pounds of CO2 into the environment. Although the Nissan Leaf does not emit CO2 from an internal combustion engine there are environmental impacts associated with energy used by these vehicles and is quantified as CO2e or Carbon Dioxide Equivalent. The CO2e impacts of the Nissan Leaf if deployed in Fiscal Year 2016/2017 would have resulted in approximately a 73% reduction or 10,500 pounds of CO2e impact to the environment. A recently approved project that will provide additional solar capacity to the City will further reduce our reliance on the power grid resulting even greater environmental and fiscal benefits. There is anticipated to be a 65% reduction in operational costs related to fuel/power consumption when using the Nissan Leafs. The fuel cost savings is estimated at $11,000 - $20,000 per year. The Nissan Leaf uses 30kWh per 100 miles driven and all 15 would have only used an estimated $2,600 in electricity in one year. Additional savings are anticipated as preventive maintenance costs related to the internal combustion engine are removed, e.g. oil filters, motor oil and emissions system parts, etc. As a member of the National Joint Powers Alliance the City of Chula Vista has an opportunity to benefit from cooperative contract purchasing that leverages the national purchasing power of more than 50,000 member agencies. As a municipal national contracting agency, National Joint Powers Alliance establishes and provides nationally leveraged and competitively solicited purchasing contracts under the guidance of the Uniform Municipal Contracting Law. Purchasing staff concurs in City of Chula Vista Printed on 10/12/2017Page 2 of 3 powered by Legistar™2017-10-17 Agenda Packet Page 75 File#:17-0460, Item#: 6. this assessment. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18705.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the goal of providing Healthy Communities, as having service vehicles in good working condition allows staff to maintain and operate community and neighborhood facilities. CURRENT YEAR FISCAL IMPACT The net total cost including taxes is $385,396.46 before the anticipated State rebate of $150,000 is applied. Sufficient funds have been budgeted in the Measure P Expenditure Plan adopted by City Council for this purchase. ONGOING FISCAL IMPACT Since these are more efficient replacement vehicles, there is an anticipated savings to General Fund. ATTACHMENTS None. Staff Contact: Steven Knapp, Fleet Manager, Public Works City of Chula Vista Printed on 10/12/2017Page 3 of 3 powered by Legistar™2017-10-17 Agenda Packet Page 76 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PURCHASE AGREEMENT BETWEEN THE CITY AND NATIONAL AUTO FLEET GROUP INC. IN THE AMOUNT OF $385,396.46 FOR THE PURCHASE OF FIFTEEN (15) NISSAN LEAF SV HATCHBACKS WHEREAS, the Measure P Expenditure Plan provides for the replacement of failing infrastructure; and WHEREAS, of the vehicles identified for Measure P replacement there is a subset of fifteen (15) light-duty City vehicles that are eligible to be replaced by Nissan Leafs; and WHEREAS, the State of California is offering a limited time rebate of $10,000 per electric vehicle purchased through the Public Fleet Pilot Project; and WHEREAS, the City of Chula Vista is committed to reducing Green House Gas Emissions in support of the Climate Action Plan; and WHEREAS, the City of Chula Vista is committed to reducing operational and maintenance costs within Fleet operations; and WHEREAS, the City of Chula Vista is a member of the National Joint Powers Alliance that leverages the national purchasing power of more than 50,000 member agencies; and WHEREAS, the National Joint Powers Alliance has awarded National Auto Fleet Group Inc. contract number 120716-NAF for vehicles, cars, vans, SUVs, and light trucks with related equipment, accessories, and services, in accordance with Purchasing Rules and Regulations; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves a purchase agreement between the City and National Auto Fleet Group Inc. in the amount of $385,396.46 for the purchase of fifteen (15) Nissan Leaf SV Hatchbacks, in accordance with the terms and conditions of National Joint Powers Alliance contract number 120716-NAF, and authorizes the Purchasing Agent to issue a purchase order to effectuate the same. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2017-10-17 Agenda Packet Page 77 2017-10-17 Agenda Packet Page 78 2017-10-17 Agenda Packet Page 79 2017-10-17 Agenda Packet Page 80 2017-10-17 Agenda Packet Page 81 2017-10-17 Agenda Packet Page 82 2017-10-17 Agenda Packet Page 83 2017-10-17 Agenda Packet Page 84 City of Chula Vista Staff Report File#:17-0001, Item#: 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE CITY’S INTENTION TO FORM UTILITY UNDERGROUNDING DISTRICTS ON F STREET FROM BAY BOULEVARD TO BROADWAY (UUD #141) AND ON F STREET FROM BROADWAY TO FOURTH AVENUE (UUD #142) AND SETTING THE DATE OF THE PUBLIC HEARING FOR NOVEMBER 21, 2017 RECOMMENDED ACTION Council accept the report and adopt the resolution. SUMMARY Since 1995, twenty (20) utility undergrounding projects in the City of Chula Vista have been completed. The cost for the Utility Undergrounding District on Bay Blvd., which represents the last district to be completed, has been repaid and the City now has a positive balance in the undergrounding fund. Staff has prepared a new priority list and recommends other actions that should be taken to continue the utility undergrounding program. ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Determination The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Background Starting in 1968, developers have been required to install underground electric and communications utilities in new subdivisions. In 2007, a total of 164.63 miles of streets with existing overhead electrical distribution lines existed in Chula Vista, predominantly west of I-805. Approximately 36 miles (22 percent) of these streets are eligible for funding through “Rule 20A”, established by the California Public Utilities Commission (CPUC). The remaining 128.63 miles of residential/local streets would be eligible for the “Rule 20B or 20C” program, whereby undergrounding costs are paid by the City of Chula Vista Printed on 10/12/2017Page 1 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 85 File#:17-0001, Item#: 7. would be eligible for the “Rule 20B or 20C” program, whereby undergrounding costs are paid by the property owners. In order to underground utilities under “Rule 20A”, the City is required to form Utility Undergrounding Districts. The City receives an annual allocation credit of $2.0 million (known as “Rule 20A” funds) from SDG&E that must be spent on undergrounding projects. Typically, when undergrounding occurs, other utilities on the SDG&E poles coordinate their relocation with SDG&E and install their facilities in a joint utility trench at no cost to the City. In 2002 and 2003, public hearings were held to establish six utility undergrounding districts. A seventh district to underground the high voltage lines along the Bayfront was formed in 2006. Since then, four of the seven utility undergrounding projects have been completed. The four completed districts were: ·Quintard Street (UUD #140): Third Avenue to Orange Avenue - $333,277 ·Fourth Avenue (UUD #133): L Street to Orange Avenue - $5,976,421 ·East L Street (UUD #134): Monserate Avenue to Nacion Avenue - $3,588,864 ·Bayfront (UUD #BAYFRONT-1): Sweetwater River to L Street - $20,400,000 Attachment 1 is a summary of the City’s utility undergrounding districts, including initial and completed costs. Attachment 2 is the current SDG&E “Rule 20A” Conversion Procedure. Attachment 3 is a copy of the most recent annual accounting from SDG&E on “Rule 20A” fund allocations for the City of Chula Vista. As of March 31, 2017, the City had a balance of $2,135,221. The City is allowed to “borrow ahead” five years of funding without interest ($10 Million). Based on the priority ranking system adopted by Council in December 2011, staff has prepared a priority list of streets for utility undergrounding, which are included in Attachment 4. This list has recently been updated to reflect current pavement and traffic conditions. Recommendations and Future Actions The City’s consultant (MIG Inc.) has almost completed the F Street Promenade Study, which envisions F Street as a gateway promenade, connecting the future Bayfront development to the Civic Center area and downtown Third Avenue. The proposed improvements include bike paths on each side, landscaping, signage, and other pedestrian enhancements. The undergrounding of utilities on F Street from Bay Blvd. to the Civic Center parking lot by Fire Station #1 west of Fourth Avenue would enhance the pedestrian, bikeway, and visual elements along F Street presented in the Promenade Study. The pavement in the area west of Broadway is in poor condition and is in need of pavement rehabilitation. This undergrounding could be done in conjunction with the pavement rehabilitation. Due to adjacent land uses and proximity to mass transit, F Street from Bay Blvd. to Broadway can City of Chula Vista Printed on 10/12/2017Page 2 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 86 File#:17-0001, Item#: 7. Due to adjacent land uses and proximity to mass transit, F Street from Bay Blvd. to Broadway can compete well for regional and State Active Transportation grants. The pavement between Broadway and Fourth Avenue received an overlay in 2011, so it is still in very good condition. On June 1, 2017, SDG&E provided City staff with cost estimates for the undergrounding of utilities along F Street. The current estimated cost provided by SDG&E for undergrounding the utilities from Bay Blvd. to Broadway ranges from $2.9 million to $3.2 million and is assuming that directional boring under I-5 would be required. At this time, it is not clear if it will be possible to install the conduit in the bridge structure crossing the I-5 freeway or if it will be necessary to directionally bore under the freeway. SDG&E will need to conduct a field inspection of the bridge to determine which scope will be needed. The current SDG&E estimate for the undergrounding on F Street between Broadway and Fourth Avenue is $1.5 million to $1.7 million. On August 22, 2017, City staff participated with SDG&E in a walk-through of the project area, along with staff from AT&T, Sweetwater Authority and Media 3. The walk-through included identification of potential SDG&E conflicts with other utilities, consideration of the City’s proposed F Street Promenade Plan and the Americans with Disabilities Act (ADA) requirements and the properties along F Street and side streets that would need to be converted from overhead to underground utility service. Based on the information obtained during the walk-through and from SDG&E, staff has prepared Boundary Maps for both districts (Attachment 5). The properties that are included obtain utility service from F Street. There will be no cost to the residents for the undergrounding, since the cost of undergrounding the service laterals will be included in the District. Right of way acquisition is not anticipated to be required. Staff therefore recommends that the City Council adopt a Resolution of Intention to create two new undergrounding districts on F Street, the first being between Bay Blvd. and Broadway (UUD #141) and a second from Broadway to Fourth Avenue (UUD #142), as well as prioritizing completion of these two districts ahead of the other established districts. After approval of the Resolution of Intention, the following steps will be needed to establish the districts and proceed with the projects: ·The District will be formed at the Public Hearing. Notices will need to be sent to all property owners affected by District formation at least 30 days in advance. ·The Capital Improvement Program (CIP) project STM-394 has been established in Fiscal Year 2017-18 for design costs related to the removal of the wood pole-mounted street lights and their replacement on new concrete standards plus relocation of other City-owned infrastructure to be done in conjunction with the undergrounding. In a subsequent fiscal year, as part of the annual CIP adoption process, additional funding will be requested for construction costs related to signal upgrades, pavement rehabilitation, street lights, and appurtenances. ·SDG&E will prepare and submit the final trench and conduit design to other utilities and staff. City of Chula Vista Printed on 10/12/2017Page 3 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 87 File#:17-0001, Item#: 7. ·SDG&E will prepare and submit the final trench and conduit design to other utilities and staff. It is estimated that SDG&E will request Joint Trench offers from the other utilities. The design process is estimated to take one year to complete. ·Prior to construction, staff will obtain Permits to Enter for SDG&E from property owners located within the District in order to underground their service laterals. ·Utility undergrounding will be coordinated with the relocating of City facilities, the construction of facilities related to F Street beautification, and pavement rehabilitation. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the properties which are the subjects of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). Staff is not independently aware, and has not been informed by any member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Utility Undergrounding program supports the Economic Vitality goal, as it increases the appeal and marketability of Chula Vista neighborhoods. CURRENT YEAR FISCAL IMPACT Passage of this resolution will not have any direct fiscal impact on the City. A total of $100,000 in TransNet for the design of other public facilities related to undergrounding (such as streetlights) is included in CIP STM394, Local Street Utility Undergrounding District. ONGOING FISCAL IMPACT There will be no direct fiscal impact on the City, since utility undergrounding districts will be financed using 20A funds. ATTACHMENTS 1. UUD Establishment Data 2. SDG&E 20A Conversion Procedure 3. 2017 20A Conversion Report 4. Undergrounding Priority List 5. Boundary Maps Staff Contact: Elizabeth Chopp, Senior Civil Engineer City of Chula Vista Printed on 10/12/2017Page 4 of 4 powered by Legistar™2017-10-17 Agenda Packet Page 88 RESOLUTION NO. 2017-________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE CITY’S INTENTION TO FORM UTILITY UNDERGROUNDING DISTRICTS ON F STREET FROM BAY BOULEVARD TO BROADWAY (UUD #141) AND ON F STREET FROM BROADWAY TO FOURTH AVENUE (UUD #142) AND SETTING THE DATE OF THE PUBLIC HEARING FOR NOVEMBER 21, 2017 WHEREAS, since 1995, a total of 20 utility undergrounding projects have been completed, and the City currently has a positive balance in the utility undergrounding fund; and WHEREAS, the City’s consultant is finishing up the F Street Promenade Study, which envisions F Street as a gateway to the City, connecting the future Bayfront development to the Civic Center area and downtown Third Avenue; and WHEREAS, the recommended improvements include bike paths, landscaping, and various pedestrian enhancements. The undergrounding of utilities along F Street would enhance the beautification of the area; and WHEREAS, staff recommends forming two undergrounding districts on F Street from Bay Blvd. to Broadway (UUD # 141) and from Broadway to Fourth Avenue (UUD #142); and WHEREAS, since pavement and facility renovation is most needed between Bay Blvd. and Broadway, staff recommends that undergrounding be originally initiated in the portion of F Street from Bay Blvd. to Broadway. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it declares the City’s intention to form Utility Undergrounding Districts on F Street from Bay Boulevard to Broadway (UUD #141) and on F Street from Broadway to Fourth Avenue (UUD #142) and sets the date of the public hearing for November 21, 2017. Presented by Approved as to form by _______________________________________________________________ William S. Valle Glen R. Googins Director of Engineering & Capital City Attorney Projects/ City Engineer 2017-10-17 Agenda Packet Page 89 ATTACHMENT 1 UUD No.Date Established Resolution No. Street Limits Initial Cost Completed Cost Voltage Length (LF) 121 5/11/1993 R 17110 F Street Church Ave to Second Ave 420,000$ 631,630$ 12 KV 700 LF 122 4/28/1992 R 16605 Fourth Avenue SR54 to E St 2,400,000$ 2,294,182$ 69 KV 3800 LF 123 10/27/1992 R 16846 E Street Broadway to Fourth Ave 2,000,000$ 949,765$ 12 KV 2640 LF 123 10/27/1992 R 16846 E Street Fourth Ave to Toyon Ln Included in above 1,519,480$ 12 KV 4700 LF 126 1/9/1996 R 18177 Main Street Industrial Blvd to Third Ave 1,450,000$ 1,437,578$ 12 KV 5800 LF 127 12/17/1996 R 18530 Palomar Street Interstate 5 to Industrial Blvd 126,150$ 632,856$ 12 KV 1000 LF 128 1/28/2000 R 2000-020 Broadway C St to E St 126,000$ 1,857,836$ 12 KV 2640 LF 129 10/22/1996 R 18467 Otay Lakes Rd. Ridgeback Rd to Apache Dr 616,900$ 712,114$ 12 KV 4200 LF 130 1/11/2000 R 2000-018 Orange Ave Fourth Ave to Palomar St 440,000$ 375,411$ 12 KV 1350 LF 131 1/25/2000 R 2000-027 Fourth Avenue H St to L St 1,000,000$ 3,716,979$ 12 KV 5280 LF 132 12/5/2000 R 2000-447 Bonita Road (east to City limits) and Otay Lakes Road Phase I: Bonita Rd to Camino del Cerro Grande 2,730,000$ 8,013,153$ 69 KV 5064 LF Otay Lakes Road Phase II: Camino del Cerro Grande to Ridgeback Rd 2,100,000$ Included in above total 69 KV 7000 LF 133 1/22/2002 R 2001-445 Fourth Avenue L Street to Orange Ave 1,150,000$ 5,976,421$ 12 KV 6600 LF 134 12/10/2002 R 2002-509 East L Street Monserate Ave to Nacion Ave 400,000$ 3,588,864$ 12 KV 4430 LF 140 10/22/2002 R2002-402 Quintard Street Third Ave to Orange Ave 280,000$ 333,277$ 12 KV 1100 LF ** 4/25/2006 R2006-123 Bayfront Phase I Sweetwater River to L St 14,000,000$ 20,400,000$ 138 KV 12000 LF 29,239,050$ 52,439,546$ *135 12/10/2002 R 2002-440 L Street Broadway to Third Ave 700,000$ N/A 12 KV 3900 LF *136 2/18/2003 R 2003-066 J Street Broadway to Hilltop Dr 1,000,000$ N/A 12 KV 4000 LF *137 2/11/2003 R 2003-011 J Street Hilltop Dr to west of Lori Lane 1,600,000$ N/A 12 KV 7000 LF 3,300,000$ 140 N/A R 2017-F Street Bay Blvd to Broadway 3,200,000$ N/A 12 KV 2300 LF 141 N/A R2017-F Street Broadway to Fourth Ave 1,700,000$ N/A 12 KV 2650 LF 4,900,000$ 37,439,050$ 52,439,546$ 76204 LF Date Established is the Council date of the Notice of Intent to form an Assessment District *Design and construction have not yet commenced. **On the Bayfront, initial cost was for both Phase I and II and from the MOU.14.433 Miles J:\Engineer\ADVPLAN\UUDIST\F ST\Agenda Report\Utility Undergrounding Reso rev.doc Sep2017 Completed Projects Proposed Projects Proposed New Districts UUD ESTABLISHMENT DATA 2017-10-17 Agenda Packet Page 90 2017-10-17 Agenda Packet Page 91 2017-10-17 Agenda Packet Page 92 2017-10-17 Agenda Packet Page 93 2017-10-17 Agenda Packet Page 94 2017-10-17 Agenda Packet Page 95 2017-10-17 Agenda Packet Page 96 2017-10-17 Agenda Packet Page 97 2017-10-17 Agenda Packet Page 98 ATTACHMENT 4: UNDERGROUNDING PRIORITY LIST UUD #Street Name From To ADT FC Distributi on Poles 69KV Transmis sion Lines Length (Feet)ADT LOCATION (10-w/n 0.25mi; 5-w/n 1mi.) RELATIONSHIPS TO UD'S CONCENTRATION OVERHEAD LINES ASSOC. WITH PW CONS. ROW & ROAD IMP TOTAL POINTS F Street**Bay Blvd.Broadway 8283 DP a 2300 10 10 10 5 15 10 n 60 Bay Boulevard E Street F Street 11196 C2 a a 1420 20 10 5 15 0 10 n 60 135 L Street *Broadway Third Avenue 14898 C1 a 3960 20 5 10 5 0 20 n 60 F Street**Broadway Fourth (Fig) Avenue 6229 DP a 2650 10 5 10 5 15 10 n 55 138 East J Street *Melrose Avenue Floyd Avenue 7012 C2,3 a 3260 10 5 5 5 0 20 y 10 55 Bay Boulevard I-5 Freeway SB Ramps Palomar Street 3925 C2 a a 3060 10 10 5 15 0 0 y 10 50 I Street Second Avenue Hilltop Drive 9478 C3 a 2640 10 0 5 5 0 20 y 10 50 Bay Boulevard J Street I-5 Freeway Ramp 3925 C2 a a 3490 10 10 5 15 0 10 n 50 Bay Boulevard F Street G Street 2615 C2 a a 1300 10 10 5 15 0 10 n 50 Fifth Avenue C Street D Street 2224 C2 a a 1320 10 5 0 15 0 20 n 50 Palomar Street Broadway Fifth Avenue 24920 C1 a 1320 25 5 5 5 0 10 n 50 Naples Street Broadway Second Avenue 8219 C2 a a 5280 10 0 5 15 0 10 y 10 50 Melrose Avenue East Rienstra Street Main Street 3039 C2,3 a 5000 10 10 5 5 0 20 n 50 Moss Street Industrial Boulevard Fourth Avenue 6041 C2,3 a 4650 10 0 5 5 20 10 n 50 C Street N Glover (Fourth) Avenue Second Avenue 7915 C2 a 2030 10 5 5 5 0 10 y 10 45 Hilltop Drive East J Street L Street 7975 C2 a 2700 10 5 5 5 0 10 y 10 45 Fifth Avenue I Street L Street 4580 C2 a 3960 10 5 5 5 0 20 n 45 Fifth Avenue D Street H Street 4794 C2 a 5280 10 5 5 5 0 20 n 45 First Avenue I Street L Street 3123 C2 a 3850 10 5 5 5 0 20 n 45 Palomar Street Third Avenue Hilltop Drive 7950 C1 a 3960 15 0 5 5 (10)20 y 10 45 Moss Street Fourth Avenue Third Avenue 7002 C2,3 a 1320 10 0 5 5 0 10 y 10 40 East Oxford Street Melrose Avenue Nacion Avenue 3704 C3 a 1800 10 5 0 5 0 10 y 10 40 Nacion Avenue Quail Place (Street) Princess Manor Court 658 C3 a 1000 10 5 0 5 0 20 n 40 Oleander Avenue Palomar Street Tamarack Street, north of 3679 C3 a 6080 10 5 0 5 0 20 n 40 Bay Boulevard Palomar Street Anita Street 1872 C2 a a 2220 10 10 5 15 0 0 n 40 Industrial Boulevard L Street Main Street 5462 C2 a 7800 10 10 5 5 0 10 n 40 Third Avenue D Street E Street 8320 CB a 1320 10 0 5 5 0 20 n 40 Nacion Avenue L Street East Naples Street 6392 C3 a 3140 10 10 5 5 0 10 n 40 Oleander Avenue Jamul Court Oxford Street 6108 C2,3 a 2080 10 5 0 5 0 20 n 40 I Street I-5 Second Avenue 9478 C2,3 a 7350 10 10 5 5 (10)20 n 40 137 J Street *Broadway Fourth Avenue 11603 C3 a 2660 20 10 5 5 0 0 n 40 Oxford Street Tobias Dr Hilltop Drive 3704 C2 a 650 10 0 0 5 0 10 y 10 35 D Street Broadway Fifth Avenue 3203 C2 a a 1410 10 5 5 15 (10)10 n 35 138 East J Street *Floyd Avenue Lori Lane 7012 C2 a 1000 10 5 5 5 (10)20 n 35 Naples Street & East Naples Street Second Avenue Melrose Avenue 11542 C2 a 5970 20 0 0 5 0 10 n 35 First Avenue E Street H Street 3123 C2 a 3960 10 5 5 5 (10)20 n 35 Melrose Avenue L Street East Quintard Street 3713 C2 a 6340 10 10 0 5 0 10 n 35 Hilltop Drive F Street East J Street 7975 C2 a 5280 10 5 5 5 0 10 n 35 138 East J Street *Hilltop Drive Melrose Avenue 7012 C3 a 3150 10 5 5 5 (10)20 n 35 Bay Boulevard D Street E Street none N/A a a 1320 0 10 5 15 0 0 N/A 30 F Street Second Avenue Hilltop Drive 5054 C2 a 2640 10 0 5 5 0 10 n 30 Utility Poles on Arterials or Collectors RATING POINTS 25<PCI<50 (y/n) FC=Functional Classification (C1,2 and/or 3=I, II and/or IIICollector; CB=Commercial Boulevard; DP=Downtown Promenade ) UUD=Utility Undergrounding District 1 of 2 10/11/2017 2017-10-17 Agenda Packet Page 99 UUD #Street Name From To ADT FC Distributi on Poles 69KV Transmis sion Lines Length (Feet)ADT LOCATION (10-w/n 0.25mi; 5-w/n 1mi.) RELATIONSHIPS TO UD'S CONCENTRATION OVERHEAD LINES ASSOC. WITH PW CONS. ROW & ROAD IMP TOTAL POINTS Utility Poles on Arterials or Collectors RATING POINTS 25<PCI<50 (y/n) G Street Woodlawn Avenue Third Avenue 4271 C2 a 5340 10 5 0 5 10 0 n 30 East Palomar Street Hilltop Drive Nolan Avenue 7126 C1 a 3960 15 0 0 5 (10)20 n 30 137 J Street *Fourth Avenue Hilltop Drive 11603 C3 a 5260 20 5 5 5 (10)0 n 25 Moss Street Third Avenue First Avenue 7002 C2 a 2700 10 0 0 5 0 10 n 25 D Street Fifth Avenue Third Avenue 3203 C2 a 2640 10 5 5 5 (10)10 n 25 Second Avenue Shirley Street, north of L Street 4338 C2 a 12200 10 5 5 5 0 0 n 25 Hilltop Drive L Street Orange Avenue 7975 C1 a 9010 15 5 0 5 (10)10 n 25 K Street (I-5) Colorado Avenue First Avenue 10697 C2 a 8130 20 5 0 5 (10)0 n 20 Oxford Street Fifth Avenue Tobias Dr 3704 C2 a 5900 10 0 5 5 0 0 n 20 East Oxford Street Hilltop Drive Melrose Avenue 3704 C3 a 3170 10 0 0 5 (10)10 n 15 Oxford Street W CDS (Industrial Boulevard)Broadway 8900 C2 a 1820 10 0 0 5 (10)0 n 5 TOTAL 192,050 Note: Does not include alleys or residential streets * These districts have already been established. ** F Street corridor has full street improvement but are not street improvements proposed in draft F Street Promenade Study. Approval of study anticipated in FY17/18. Updated:10/10/2017 FC=Functional Classification (C1,2 and/or 3=I, II and/or IIICollector; CB=Commercial Boulevard; DP=Downtown Promenade ) UUD=Utility Undergrounding District 2 of 2 10/11/2017 2017-10-17 Agenda Packet Page 100 2017-10-17 Agenda Packet Page 101 2017-10-17 Agenda Packet Page 102 City of Chula Vista Staff Report File#:17-0446, Item#: 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING IN CONCEPT AN INCENTIVE PACKAGE TO ENTICE AMAZON TO LOCATE ITS PROPOSED NEW CORPORATE HEADQUARTERS IN CHULA VISTA AND AUTHORIZING AND DIRECTING STAFF TO NEGOTIATE AND BRING BACK FOR COUNCIL ACTION FINAL AGREEMENTS IMPLEMENTING SAME RECOMMENDED ACTION Council adopt the resolution. SUMMARY On September 2, 2017, Amazon released a Request for Proposal (RFP) seeking responsive bids for a location that could accommodate up to eight (8) million square feet of office for a second headquarters. The first requirement of the RFP requires a site that can deliver 500,000 square feet by 2019. The RFP requests that only one (1) proposal be submitted per metropolitan statistical Area (MSA) which for San Diego includes all of San Diego County. An MSA is a geographical region with a relatively high population density at its core and close economic ties throughout the area. There are 388 MSA’s in the United States and each MSA has an opportunity to submit one proposal. However, the RFP indicates that Amazon has a preference for an MSA of at least one (1) million people of which there are approximately 55 MSAs with one (1) million people and the San Diego MSA ranks 17 th in the Country with a population of approximately 3.3 million. It is staff’s expectation that a large number of MSAs in the U.S. will submit their one (1) proposal to Amazon, possibly with several alternatives for Amazon’s consideration. The RFP encourages each MSA to submit their BEST site that meets or exceeds the needs of Amazon. The representative of the MSA was identified as the San Diego Regional Economic Development Corporation (SDREDC). The City of Chula Vista is participating with SDREDC and South County Economic Development Council (SCEDC) on the vetting of proposed locations being submitted throughout the region for the proposal to Amazon. The Chula Vista proposal will be competitive with other MSA proposals in the nation. However, our state and region do not have many of the financial tools available to other parts of the country to offer incentives to attract employment creating industries. The San Diego MSA will be competing with MSA’s throughout the U.S. that have an ability to provide significant financial incentives to Amazon. Chula Vista has a history of creativity when it comes to providing financial incentives and this report will define the tools that are available locally to provide a compelling incentive package. Staff has reviewed the other proposals being submitted to SDREDC and have determined that the Chesnut Millenia Office Park and the City of Chula Vista’s Innovation District property represent the BEST site (s) for the San Diego Region MSA. The proposed incentive package will allow the Chula Vista site to be competitive on a national stage. This report seeks Council’s preliminary approval of the conceptual incentive package so that these intentions can be included with the City’s submission to Amazon. In order for these incentives to be realized, staff would return at a later date with definitive agreements, appropriate studies and findings City of Chula Vista Printed on 10/12/2017Page 1 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 103 File#:17-0446, Item#: 8. realized, staff would return at a later date with definitive agreements, appropriate studies and findings that are necessary to solidify our commitments. ENVIRONMENTAL REVIEW Environmental Notice 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. In addition, notwithstanding the foregoing, the “Project” also qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the “Project” qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable DISCUSSION On September 2, 2017, Amazon released a Request for Proposal (RFP) seeking responsive proposals for a location that could accommodate up to eight (8) million square feet of office for a second headquarters with a requirement that 500,000 square feet be delivered by 2019. Based on Amazon’s RFP, their direct economic impact to Seattle was $3.7 billion in buildings and infrastructure (33 buildings at 8.1 million square feet), $1.4 billion in operational costs, $25.7 billion in employee compensation (40,000+ employees) and generated 233,000 hotel nights in 2016. Amazon estimates that their activity has created an indirect economic impact of an additional 53,000 employees, $38 billion in additional investments, $17 billion in personal income by non-Amazon employees and increased the number of Fortune 500 companies from 7 in 2010 to 31 in 2017. The RFP requests that only one (1) proposal be submitted per metropolitan statistical Area (MSA) which for San Diego includes all of San Diego County. An MSA is a geographical region with a relatively high population density at its core and close economic ties throughout the area. There are 388 MSA’s in the United States and each MSA has an opportunity to submit one proposal. However, the RFP indicates that Amazon has a preference for an MSA of at least one (1) million people of which there are approximately 55 MSA’s with one (1) million people and the San Diego MSA ranks 17 th in the Country with a population of approximately 3.3 million. It is staff’s expectation that every large MSA in the U.S. will submit their one (1) proposal to Amazon, possibly with several alternatives for Amazon’s consideration. A second headquarters could mean an additional 100,000 new jobs to the San Diego region and generate billions of dollars for the entire MSA. The RFP encourages each MSA to submit their BEST site or sites that meets or exceed the needs of Amazon. City of Chula Vista Printed on 10/12/2017Page 2 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 104 File#:17-0446, Item#: 8. The following represents the requirements identified in the RFP with a description of how Chula Vista meets those requirements: o Phase I - 500,000 square feet by 2019 ü The permitting process is complete and building permits can be issued. ü Chula Vista can deliver the initial 500,000 square feet by 2019. ü Site is shovel-ready with appropriate infrastructure. o Need a site(s) that will accommodate 8 million square feet ü Chula Vista can accommodate 8 million square feet on two campuses o Sites in proximity to each other to foster a sense of place and pedestrian friendly. ü Chula Vista two sites are located within walking distance of each other in a mixed use suburban/urban environment. o Commitment to Sustainability ü Chula Vista has a proven track record starting in 2000 with the County’s first CO2 reduction plan. ü All buildings will be LEED Platinum. ü All buildings will be WELL Building Certified. o Have fiber optic connectivity ü Chua Vista has fiber connectivity provided by Cox Communication and AT&T. o Have multiple cellular phone service providers ü Chula Vista has multiple cell phone providers. o Diverse population ü Chula Vista has the most ethnically diverse population in the County. o Provide a high quality of life for Amazon employees ü Located immediately adjacent to a new fire station, future public library and new parks and open space. ü Located next to outdoor recreational amenities (lakes, rivers, parks, trails, nature preserves). ü Brand new housing of all types and scales are being built at the most affordable prices in San Diego County. ü Chula Vista has almost 18,000 residential units, yet to built, that could provide housing for all of Amazon’s employees. ü We have restaurants, entertainment facilities and an Olympic training site that is open to the public. ü K-12 schools surrounding the proposed site are all above the 82nd percentile in average API scores and new state of the art schools are still being built to accommodate the growth. ü San Diego has world class universities located within 30 minutes of the site. o Logistics to get to major population centers ü The project site is immediately adjacent to state route 125. ü The project site is adjacent to the dedicated bus rapid transit system connecting the Otay Mesa border to downtown San Diego and Lindberg Field. ü The project site is located within the second largest city in San Diego County. ü The project site is located immediately adjacent to the City of San Diego with a population of 1.3 million people. City of Chula Vista Printed on 10/12/2017Page 3 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 105 File#:17-0446, Item#: 8. ü The project site is opposite traffic for those employees living in central or northern San Diego. o Access to international Airports with flights to Seattle, New York, Bay Area and Washington D.C. ü Lindberg Field International airport provides daily direct flights to the required airports. ü In addition, Tijuana Rodriguez International airport provides flights to Mexico, Latin America, China and Japan. ü Brown Field provides services for private planes up to the size of a C-130. o A highly educated work force ü Chula Vista and San Diego County have a highly educated and talented workforce. o A stable and consistent business climate ü Chula Vista together with our partners at SCEDC and SDREDC, provide a region that collaborates with business to ensure their success. ü Chula Vista has a proven track record of executing public private partnerships: §Elite Athletic Training Center (formerly the Olympic Training Center) and Point Loma Trust; §Hotel and Convention Center with RIDA development company; §Numerous pilot study projects for Smart Cities efforts; and, §Access to companies to test smart city technology, aerial drone vehicle testing facility, and the USDOT autonomous vehicle testing grounds. o A total value of Incentives ($410 million) ü Free innovation District property is estimated today at $100 million. ü Waiver of Transportation Development Impact Fees totaling $10 million. ü An amount equal to the property tax received by the City, per phase, for thirty years is estimated to total $300 million. ü Processing future Design Review applications within 90 days. ü Partnering to bring institutions of Higher Education to Amazon (Priceless). The above represent how the Chula Vista site meets and exceeds all of the requirements of the RFP. The following is a more thorough description of the proposed project for Amazon. Chula Vista’s Project Proposal Description Chesnut properties Millenia Office Park, combined with the City of Chula Vista’s Innovation District located on the University Campus, offers the best site for the San Diego Region MSA. The Chula Vista site can accommodate the size requirements of the RFP on two campuses located within walking distance of each other. The Chula Vista site in Millenia is shovel-ready and can pull building permits at any time for the initial 500,000 square feet. Amazon indicates that they will, “prioritize certified or shovel-ready Greenfield sites and infill opportunities with appropriate infrastructure and ability to meet their timeline and development demands.” One of the criteria for Greenfield sites is that they are, “pad ready with utility infrastructure and in close proximity to each other to foster a sense of place and be pedestrian friendly.” In addition Amazon also wants a municipality that is stable and business friendly, has an ability to attract talent, is a leader in sustainability, energy efficiency, has fiber connectivity, has multiple cell phone providers, has partnerships with Universities, public transportation, parks and trails, a diversity of housing and recreational options and is located near an City of Chula Vista Printed on 10/12/2017Page 4 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 106 File#:17-0446, Item#: 8. international airport. The Chula Vista proposal is located between two (2) international airports ( Tijuana International Airport and San Diego International Airport) and one (1) private airport (Brown Field Municipal and Freight Airport) which is a unique attribute not found in other parts of the country. The City of Chula Vista in partnership with Chesnut Properties proposes to deliver a state of the art facility that is LEED Platinum and WELL Building certified. The Chestnut/Chula Vista facility values sustainability, energy efficiency and a connection with the open environment. Together with Chesnut properties, the City of Chula Vista is offering eight (8) million square feet for the second Amazon Headquarters. The development will be located on two connected campuses. The first campus for Phases I, II and a portion of III will be located on four contiguous sites that can deliver up to four (4) million square feet within the Millenia Office campus.Millenia Office is strategically located within the Millenia Master Plan in Eastern Chula Vista and will be a vibrant walkable community anchored by food, retail, public parks, hospitality, business, and housing. The remaining portion of Phases III and the Phase IV facility will be located on an additional eight five (85) acres with a development capacity of approximately four (4) million square feet. The city property is the innovation district property located on the University site. The following is the proposed phasing of the campus and proposed development features. Phase 1 - Think Campus 3 buildings: 550,000 square feet Fully delivered by Q3 2019 Phase 2 - Invent Campus 1 building: 1.2 million square feet Can be delivered as early as 2020 Phase 3 - Discover and Transform Campuses 2 buildings: 2.5 million square feet Can be delivered as early as 2021 Phase 3 and 4 - City of Chula Vista Owned Land 85 Acres representing 4 million square feet Can be delivered as early as 2022 Each phase of the Project will contain the following features: Millenia Office is designed as a true campus style opportunity, where themes of collaboration and connectivity are infused throughout the architecture and design of the project. Highly efficient large floor plates increase opportunities for chance encounters that spur on innovation and discovery. We have taken the theme of connectivity to the next level, by joining buildings together through a series of outdoor bridges and connectors to allow people to travel horizontally through some of the largest floor plates currently available in San Diego County. “Invisible Cars” - Cars will be “hidden” inside subterranean parking structures that are inspired by naturally occurring geologic formations inside which humans have found protection, wonder and City of Chula Vista Printed on 10/12/2017Page 5 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 107 File#:17-0446, Item#: 8. resource. Abundant natural light and cool breezes, slots and openings to the sky, intriguing passageways, with the utmost safety and security are key elements to our design. Sustainability: LEED V.4 - Target Platinum The vision for Millenia Office is to create an ecosystem where the workplace and the environment are mutually celebrated. The first campus, the Think campus, is slated to achieve a LEED Platinum rating and will become a model for how large-scale facilities can be delivered in a way that seeks to improve the natural environment and not take away from it. Wellness: WELL Building Standard - Gold Target Launched in October 2014 after six years of research and development, the WELL Building Standard is the premier standard for buildings, interior spaces and communities seeking to implement, validate and measure features that support and advance human health and wellness. At Millenia Office, we are targeting a WELL Building certification on all buildings with the goal of cultivating an environment that encourages creativity, boosts productivity, and ultimately will help you be a healthier person. Affordability: Millenia Office is canbe delivered to tenants at below market rates for high performance space. In addition to affordable space in the campus, there are numerous new housing projects currently being built and selling at Millenia in the low $400,000s. At that price, employees could own affordable homes and walk to work. Proposed Amazon Incentives: Staff has identified five (5) project related incentives for City Council consideration. The proposed incentives represent a total package of over $400 million. Transportation Development Impact Fee Credit ($10 Million) The Transportation Development Impact Fee (TDIF) Program was established on January 12, 1988 by Ordinance 2251. Since its inception, the program has been updated several times to reflect new land use approvals, changes to the Circulation Element of the General Plan, and updated project cost estimates. The TDIF update in 2002 added a provision to the Municipal Code to permit the City, in its sole discretion, to provide an Economic Incentive Credit (incentive) to developments that provide the City with long-term economic benefits. The incentive may be used to offset TDIF obligations for development projects that the City Council deems beneficial to the City. Economic Incentive Credits are generated when the City secures and applies alternative funding to a capital improvement project that would otherwise have been funded via TDIF revenues (e.g. grant funds, discretionary revenues). Subsequent to the most recent TDIF program update (2014), the City of Chula Vista secured $20 million from the Federal Government for bridge projects that are funded by the TDIF program. By securing these grant funds, the City now has a unique opportunity to offer an Economic Incentive Credit to the Chesnut office park development. Staff proposes that the City Council agree to apply Economic Incentive Credits in-lieu of collecting TDIF fees for the Chesnut office park project up to a maximum amount of $10 million, which is equal to approximately 3 million square feet of new office development. The application of Economic Incentive Credits in-lieu of collecting fees will function like a fee waiver to Chesnut, while ensuring the integrity and legality of the TDIF program. Chesnut has agreed to apply this fee “waiver” to Amazon either as a direct cashCity of Chula Vista Printed on 10/12/2017Page 6 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 108 File#:17-0446, Item#: 8. the TDIF program. Chesnut has agreed to apply this fee “waiver” to Amazon either as a direct cash subsidy or rent credit. The overall TDIF program will not be affected by the change. Innovation District ($100 Million) The University and Innovation District occupies approximately 375 acres of land and is estimated to be fully entitled by the first quarter of 2018. Part of the University site contains 4 million square feet, or 85 acres, for innovative companies to occupy. Staff recommends providing the Innovation District property for Amazon Headquarters Phase III and IV at no cost. University (Priceless) The attraction of a multi-institutional binational campus is a unique vision and opportunity for Chula Vista and Amazon. Staff proposes to offer Amazon the opportunity to partner with the City on our marketing efforts and in selecting institutions of Higher Education. This partnership would ensure a pedagogy that trains Amazon’s current and future workforce needs as well as benefit other companies within the CaliBaja region. Prime Service City staff will guarantee processing any discretionary design review for any additional phases (II, III, IV) of development within 90 days of receipt of a complete application. Property Tax ($300 Million) The development of new office space will generate new property tax revenue to the City. The City receives approximately 13 cents of every property tax dollar paid. The property tax assessed on the property is equal to one percent of the overall assessed valuation. The first phase of development is estimated to have an assessed valuation of $300 million dollars, or $600 per foot. The City’s share of the property tax for the first year would equal approximately $432,000 dollars. This amount would increase, per Proposition 13, by up to two percent annually. Based on this assessed valuation and an anticipated two percent annual increase the property tax received for this phase over thirty years would be approximately $16 million. Staff recommends providing a financial incentive to Amazon equal to the property tax revenue received by the City for every square foot that is either owned or occupied by Amazon for a period of time equal to 30 years per phase of development. Assuming Amazon builds 8 million square feet and the assessed valuation is equal to that stated above, Amazon could expect to receive approximately $300 million dollars in incentives. The incentives identified above are derived from the direct economic investment made by Amazon. These incentives are only provided commensurate with development of square footage to be owned or occupied by Amazon. This staff reports seeks Council’s preliminary approval of the concepts provided so that these intentions can be included with the City’s submission to Amazon. In order for these incentives to be realized, staff would return at a later date with definitive agreements and the appropriate studies and findings. The resolution presented tonight would direct and authorize City staff to negotiate with Amazon, consistent with the conceptual proposal. Prior to committing to a formal incentive proposal, or entering into final agreements with Amazon, the City will conduct further legal analysis to ensure compliance with all applicable federal, state, and local laws, including confirming availability of the proposed incentives and any necessary terms and conditions, identifying any findings necessary to City of Chula Vista Printed on 10/12/2017Page 7 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 109 File#:17-0446, Item#: 8. support the public assistance offered, and conducting the necessary CEQA analysis. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The ability to obtain Amazon headquarters supports the Economic Vitality goal. CURRENT YEAR FISCAL IMPACT There is no current year fiscal impact by approving the resolution. ONGOING FISCAL IMPACT There is no on-going fiscal impact by approving the resolution. ATTACHMENTS 1.Amazon RFP 2.City proposal 3.Chesnut proposal Staff Contact: Eric Crockett, Economic Development Director City of Chula Vista Printed on 10/12/2017Page 8 of 8 powered by Legistar™2017-10-17 Agenda Packet Page 110 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING IN CONCEPT AN INCENTIVE PACKAGE TO ENTICE AMAZON TO LOCATE ITS PROPOSED NEW CORPORATE HEADQUARTERS IN CHULA VISTA AND AUTHORIZING AND DIRECTING STAFF TO NEGOTIATE AND BRING BACK FOR COUNCIL ACTION FINAL AGREEMENTS IMPLEMENTING SAME WHEREAS, on September 2, 2017 Amazon released a Request for Proposal (RFP) seeking locations that could accommodate up to eight million square feet of new office space for a second headquarters; and, WHEREAS, the RFP requested a description of the incentives a jurisdiction would be willing to offer Amazon to locate their headquarters within the jurisdiction; and, WHEREAS, the City of Chula Vista has the best location in the San Diego metropolitan statistical area (MSA) for siting Amazon’s second headquarters, in that, the proposed project sites meet Amazon’s Site Requirements (including proximity to a population center, major highways and arterial roads, international airports, and mass transit) and Building Requirements (including square footage needs for Phase I and beyond 2027), as well as a variety of housing, numerous recreational opportunities, a diverse and talented work force and connectivity between buildings and facilities; and, WHEREAS, the RFP requested that each MSA submit one proposal to Amazon and the San Diego Regional Economic Development Corporation (SDREDC) is the representative for the San Diego MSA; and WHEREAS, the City is participating with SDREDC and South County Economic Development Council on the vetting of proposed locations being submitted throughout the region for the proposal to Amazon; and WHEREAS, City staff identified the Chesnut Millenia Office Park and the Innovation District property as ideal sites for Amazon’s second headquarters; and WHEREAS, City staff has prepared a conceptual incentive package relative to the two sites to be included in SDREDC’s regional submittal, and the conceptual incentive package proposal contemplates: various incentives to Amazon to realize the positive economic impact their headquarters would bring to the City; and, a commitment to processing Design Review applications within 90 days of receiving a complete application; and Economic Incentive Credits in lieu of collecting Transportation Development Impact Fees (TDIF) pursuant to Section 3.54.090 of the Chula Vista Municipal Code, in an amount up to $10 million dollars; and 2017-10-17 Agenda Packet Page 111 the opportunity for Amazon to build phases III and IV on the Innovation District property with no compensation for the real estate; and a partnership between Amazon and the City to attract and select institutions of higher education that will educate their current and future workforce; and an annual payment to Amazon equal to the property tax received by the City for space owned or occupied by Amazon for thirty years per phase of development. WHEREAS,prior to committing to a formal incentive proposal, or entering into final agreements with Amazon, the City will conduct further legal analysis to ensure compliance with all applicable federal, state, and local laws, including confirming availability of the proposed incentives and any necessary terms and conditions, identifying any findings necessary to support the public assistance offered, and conducting the necessary CEQA analysis. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it supports the conceptual incentive package proposal, in the form submitted, and authorizes it to be submitted to SDREDC for inclusion in the regional submittal to Amazon, on behalf of the San Diego MSA, to entice Amazon to locate its proposed new corporate headquarters in Chula Vista. BE IT FURTHER RESOLVED that, should Amazon select San Diego MSA proposal, including the City’s conceptual incentive package proposal: 1. City staff is authorized and directed to negotiate with Amazon regarding the terms and conditions of a final proposal and all agreements necessary to implement the final proposal; and 2. Prior to entering into any such final agreements, the City will conduct further legal analysis to ensure compliance with all applicable federal, state, and local laws, including confirming availability of the proposed incentives and any necessary terms and conditions, identifying any findings necessary to support the public assistance offered, and conducting the necessary CEQA analysis Presented by Approved as to form by Eric C. Crockett Glen R. Googins Economic Development Director City Attorney 2017-10-17 Agenda Packet Page 112 welcome homeAMAZONAMAZON HQ2 CHULA VISTA: SUSTAINABLE INNOVATION welcome homeAMAZON 2017-10-17 Agenda Packet Page 113 32 4 Introduction 7 Letter from the Mayor 8 Perfect Climate 10 Amazon’s Smart City HQ2 12 Connected Community 14 Neighborhoods 20 L abor Force 24 STEAM Education 26 Cost of Living 28 Transportation 30 Quality of Life 32 Active, Healthy Lifestyles 34 Proposed Site 46 Our Future Together CONTENTSTABLE OF 2017-10-17 Agenda Packet Page 114 54 Photo taken by Chula Vista resident Ed Banaña − “Kayaks on the Otay Lakes shore at sunrise,” March 2016 WITH THE NEW DAY − ELEANOR ROOSEVELT COMES NEW STRENGTHAND NEW THOUGHTS Every day in Chula Vista is better than the last. We are all about the future! As the sun rises over Chula Vista, the kayaks are ready to hit the water, the smell of “cafe de olla” hits the downtown streets and the city stretches into a new day bursting with excitement. The vibrant, diverse streets of Chula Vista contrast the landscape of the adjoining nature preserve, and modern homes and businesses stretch out to the waves of the Pacific Ocean. It’s easy to see where Chula Vista gets its name. In Spanish, the word “Chula” means beautiful. In this city, there is beauty, connection and promise of the future around every turn − from a child’s wide eyes engaging nature at The Living Coast Discovery Center within the Sweetwater National Wildlife Refuge to the celebrations at local restaurants and live music venues − #THISisChula #THISis Chula Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones known as the CaliBaja mega region with 6 million people. As the second largest city in the San Diego MSA (population of 3.5 million), Chula Vista residents enjoy outstanding public schools and a national standing as one of the safest large cities in the country. Chula Vista boasts more than 50 square miles of coastal landscape, canyons, rolling hills, mountains, quality parks and miles of trails. The City is a leader in sustainability, conservation and renewable energy. 2017-10-17 Agenda Packet Page 115 6 7 Photo taken by Chula Vista resident Adrian Mora − “Chula Vista City Hall,” August 2015 September 25, 2017 Welcome home Amazon! We have spent the last 30 years putting the planning in place that will accommodate your future home. Our city is a leader in sustainability which started with the adoption of our first Climate Action Plan in 2000, being recognized in 2014 by the Environmental Protection Agency with a Climate Leadership Award and in 2015 at the United Nations Conference of Parties (COP21) in Paris. We now are striving to become a Smart City leader that embraces the Internet of Things and provides a higher level of service to our community. You will instantly recognize Amazon ideals in Chula Vista because we are customer-focused; our customers just happen to be our residents and businesses. We embrace research and invention, evidenced by our role as one of 10 proving grounds for autonomous vehicles as well as providing a site for the region’s UAVs to test on our 375-acre university property. In 2018, we will begin our pursuit for a new four-year multi- institutional, binational university campus that will provide a pedagogy that supports industry. We dream of a university that is integrated with industry so much so that classes could be held on the second floor while industry and internships are happening on the third, fourth and fifth floors. We want a university that prepares students to enter the workforce the day they graduate, regardless of what country they come from. Chula Vista is proud to be the most ethnically diverse community in San Diego, a tremendous asset that makes us the choice location for entrepreneurs. We share your culture of innovation and an eagerness to invent and pioneer. The seeds are planted and the infrastructure is in place with zoning that will allow you to grow to 8 million square feet. We can deliver Phase I (500,000+ square feet) by 2019 and additional phases by 2020. As you grow, the housing and community around Amazon HQ2 Chula Vista will also grow, providing every employee an opportunity to live within walking and biking distance of their offices and amenities. We have the property and vision to secure a new four-year multi-institutional binational university campus, with your partnership, that will educate your current and future workforce. This is an opportunity unlike anywhere in the country for you to develop an Amazon Village that embraces your corporate culture of innovation, passion, intelligence and creativity. Chula Vista is the only place where you can immediately develop Amazon Village for your employees to live, work and play adjacent to your new HQ2 and the university you help create. We are excited to have you become a part of our community. Sincerely, Chula Vista Mayor Mary Casillas Salas with (left to right) Councilmembers Mike Diaz, Patricia Aguilar, John McCann and Stephen C. Padilla. We share your culture of innovation and an eagerness to invent and pioneer.Mayor Mary Casillas Salas OFFICE OF THE MAYOR 2017-10-17 Agenda Packet Page 116 98 70 miles of Pacific coastline to explore! Photo taken by Chula Vista resident Adrian Mora − “La Jolla Tide Pools,” October 22, 2014 FOR INNOVATION Southern California has always been a dream destination, with a 72°F / 22°C average daily temperature in a mild Mediterranean climate that attracts leading talent from all corners of the world. As the second largest city in San Diego County, Chula Vista is a unique Southern California community located at the center of one of the most economically, culturally and environmentally diverse regions in the United States. With a population of over 267,000 diverse residents, Chula Vista offers more than 50 square miles of coastal landscape, canyons, rolling hills, mountains, lakes and quality infrastructure minutes away from two international airports. The City is located just seven miles from downtown San Diego and is even closer to Tijuana, the busiest land border crossing in the world. Chula Vista is at the epicenter of this international mega-region, served by interstates 5 and 805 and state routes 125 and 54. Collaboration with our neighbors to the south in Mexico, as well as with the educational institutions and businesses that contribute to a shared success, have created a business climate that is expected to realize a 50 percent increase in Chula Vista employment by 2050. These investments will create a fully planned community offering more than 18,000 residential units, 15 million square feet of commercial/office space and 375 acres for an Innovation District that exceeds Amazon’s stated needs for HQ2. CHULA VISTA IS A DYNAMIC, GROWING, INTERNATIONAL REGION. Sustainability. Chula Vista is widely recognized as a leader in sustainability, innovation and education as it celebrates the use of technology to deliver enhanced levels of service to the community. Visionary. In August 2017 the City of Chula Vista was named a “Top 3 Smart City in North America” by Enterprise IoT Insights, which recognized the City’s long-range planning and public private partnerships. Business-Friendly International Hub. Chula Vista will create thousands of new jobs, establish new public parks and remain committed to preserving the environment as it supports massive expansion plans to build a convention center, bayfront development and university. Over the next 30 years, Chula Vista will continue to serve as a significant employment hub for the larger CaliBaja mega-region that encompasses over six million people and 2.1 million jobs, with a combined GDP of $230 billion. Chula Vista’s business-friendly culture is appreciated by companies growing in this unique binational region. Educated Workforce. Located in the most patent intense region in the United States – and third worldwide – Chula Vista’s position as the second largest city in San Diego County provides access to the highest concentration of life sciences lab space in the nation. Our educated workforce gained 72,000 degree holders in 2014 alone, more than any other major metro area in the country. Engineering Talent. Amazon will help to select and shape the world’s first binational university near its HQ2 and in a region that already includes more than 80 research institutes in world-class universities. The University of California, San Diego (UC San Diego) computer science program ranks in the top ten worldwide and the nationally recognized Fowler School of Business at San Diego State University is ranked among the top 10 public business schools in the nation by U.S. News & World Report. Incomparable Quality of Life. A 2017 WalletHub study ranked Chula Vista among the top 11 HAPPIEST CITIES IN THE U.S. out of 150 most populous cities and national FBI data ranks Chula Vista as the Top 10 Safest Large City in the United States. Perfect ClimateTHE 2017-10-17 Agenda Packet Page 117 1110 y Photo taken by Chula Vista resident Morgan Liberatore − “Otay Lakes Reservoir,” September 1, 2017 HQ2SmartCity Chula Vista recognizes that its role as a Smart City is a continual work in progress—a process that we embrace and are proud to be continually refining for future generations. A cornerstone of our Smart City efforts is sustainability. For over two decades, our city has been a leader in implementing sustainability programs. We were the first city in the region to retrofit all 9,000 City streetlights to LED. More recently, Chula Vista was one of just 10 cities in the nation selected for Envision America 2017. We cultivate Smart City skills and values, with more than 4,000 local sixth graders taking coding classes each year at the “Innovation Station” maker space and community STEAM lab that our library created in partnership with global technology leader Qualcomm® and its Thinkabit Lab™. In 2016, Chula Vista was honored with the White House designation as a Smart Cities Initiative “Better Communities Alliance” to tackle energy and climate challenges. That same year, Chula Vista residents voted to make a major investment in City infrastructure by approving Measure P, a temporary tax that will raise $178 million over 10 years. More than $7 million of the Measure P Expenditure Plan is designated for traffic signal modernization to be remotely controlled and optimized through a traffic management center to reduce time in vehicles for everyone. Our waste management pilot project also uses sensors on City bus stop trash cans to track waste generation patterns and optimization of collection. Chula Vista is implementing more exciting pilot programs that strengthen our Smart City to serve as a model for communities worldwide. The landmark Gateway Center in downtown Chula Vista was transformed using a solar energy investment from Ygrene Energy Fund using the Clean Energy Chula Vista Property Assessed Clean Energy (PACE) program. The five-story business center has installed 1,054 solar panels (15 inverters) generating 344.6 KW. AMAZON’S Energy Energy efficient smart devices have been implemented citywide and apply data analytics and software to revamp the City’s critical infrastructure such as lighting, garbage collection, Wi-Fi and other services. The buildings planned for the City’s bayfront development − one of the largest fully-entitled waterfront developments on the West Coast − will perform at least 15 percent better than state standards. Transportation In early 2017, the City unveiled plans to implement an autonomous driving shuttle bus on a path from the downtown area to the bayfront to transport visitors. The City also plans to use new, upgraded street lights with sensors to collect information that can be shared to improve self-driving vehicle safety. The City of Chula Vista, as part of a joint proposal with Caltrans and SANDAG, has been designated by the USDOT as one of 10 Autonomous Vehicle Proving Grounds (AVPG) across the United States. Public Private Partnerships Our Smart City initiatives are already underway with partners like Qualcomm®, Cisco, AT&T, Cox, M3 and Cleantech San Diego for programs that include public kiosks, smart lighting, smart parking, vehicle automation and electrification of vehicles. The City is currently executing a successful P3 (Public Private Partnership) for the multi-billion dollar Chula Vista Bayfront Master Plan and development of a 1,500-room resort and 400,000-square-foot convention center. 2017-10-17 Agenda Packet Page 118 1312 ConnectedCOMMUNITY Chula Vista enjoys 10gb fiber connectivity Verizon coverage score 84%T-Mobile coverage score 82%AT&T coverage score 64%Sprint coverage score 96% 5G expected to become available in 2019 Cellular Coverage Scores The City enjoys 10gb fiber connectivity coverage from Cox Communications, which is one of three Chula Vista Internet Service Providers. This fiber-optic network will support vehicle-to-infrastructure communications systems, microgrid and distributed energy systems. Chula Vista is a pioneer in embracing technology and deploying mobile apps. Our City has been an Amazon client since 2015 and we will continue to embrace Amazon technology and services as a way to better serve our community and extend our tax dollars. We were the first in the nation to pilot Nixle technology in collaboration with the software developer in 2008. We continue to refine Nixle’s use as a tool to inform users in targeted neighborhoods about heavy traffic, detours, closures, emergency alerts and other urgent matters. The City is also exploring smart parking apps that allow citizens to track City expenditures on budget items and integrating traffic management data into existing navigation apps like Google Maps or Waze. 2017-10-17 Agenda Packet Page 119 1514 Apartments for rent at Millenia offer a resort-like lifestyle where the vacation never ends. These 1-, 2-, and 3-bedroom apartment communities boast high-end design, pools and fitness centers, modern interiors and more. Go shopping, play at the park or meet friends for happy hour at the corner bistro − it’s all within walking distance from your apartment. Millenia is surrounded by great neighborhoods and Otay Ranch Town Center, so you’re within walking distance of additional grocery stores, banks, dry cleaners and more. Millenia communities are just minutes away from fishing at Lower Otay Lake, outdoor concerts at Mattress Firm Amphitheater, top-notch recreation, a U.S. Olympic Training site, Otay Mesa, the new cross-border terminal and easy freeway access. You’ll be a short drive from downtown San Diego, the San Diego Bay, the Otay Ranch Preserve and much more. Otay Ranch is a 23,000-acre community of 11 urban villages with approximately 27,000 dwelling units that are clustered around a central gathering space. A range of transportation alternatives are at the heart of Otay Ranch, most notably mass transit and pedestrian-oriented mobility. The village cores also provide amenities such as commercial, parks and schools within a short walking distance from the residences. In addition, the Millenia development will contain a variety of office, commercial and high-density residential uses. The Eastlake Community is a 3,200-acre master planned community that includes residential, retail/commercial and industrial/office areas with recreational areas throughout. More than 1,100 acres of parks, recreation and open space are available in Eastlake. gNeighborhoods Mixed use lofts and rental apartment s create Millenia’s Main Street. This 309-unit community will include a signature restaurant, gym, dog wash and shops along the street. Affordable housing is provided via a 200-unit development that accommodates seniors and low income families in beautiful apartments adjacent to the Bus Rapid Transit and a park. IN THE MIDDLE OF IT ALL No matter where you live in Chula Vista, you’re within easy walking distance to parks, promenades, shops, restaurants and the local market. Chula Vista’s various neighborhoods offer a unique lifestyle experience with distinct character and conveniences. Otay Ranch is the largest master planned community in Chula Vista and one of the largest in California. 2017-10-17 Agenda Packet Page 120 1716 11 Urban villages east of the I-805 contain approximately 27,000 dwelling units and support commercial and community facilities. Otay Ranch has grown into a vibrant community that combines the best of old-style neighborhoods with the latest in community design. Today, residents enjoy pedestrian parks, strolling and biking along the extensive network of trails, paseos and promenade streets and meeting friends at the Otay Ranch Town Center. Single family and apartment homes make the 530-acre Heritage village a lively community. 1,565 single-family homes and 1,134 apartment homes nestle around a village core that creates a genuine community. Hotels for long and short stays include the Marriot Residence Inn, a new hotel featuring 148 spacious suites equipped with full kitchens. Amenities include complimentary breakfast, internet and parking. The on-site fire pit, pool, sports court, and fitness center allows guests to feel right at home. A 135-guestroom Ayers Hotel will open in 2018. Family friendly master planned neighborhoods in Montecito are designed to blend the best of urban and suburban living. Plans for the village’s bustling core feature a traditional town square, an elementary school, two city parks, a private swim club as well as a convenient commercial center. Three pedestrian parks are positioned throughout the village, giving residents an easy walk to recreation and relaxation facilities. Millenia is a completely walkable community in Chula Vista, thanks to a grid of tree-lined pedestrian avenues. Meander through parks, promenades, gathering areas and inviting gardens as you make your way around the districts, or walk to Otay Ranch Town Center across the street. PEDESTRIAN PARADISE 2017-10-17 Agenda Packet Page 121 1918 Photo taken by Chula Vista resident Adrian Mora − “Hole 12 Eastlake Golf Course,” Summer 2015 Eastlake has been named “Best New Home Community in San Diego” by the San Diego Union-Tribune Readers Poll. Sitting on a hill overlooking the community of Eastlake Vistas and the San Ysidro mountains to the east is the master-planned community of Eastlake Trails. Residents are within walking distance of Creekside Park, which includes a 5,000-square-foot swimming pool with a uniquely designed 2,000-square-foot attached children’s pool, spa, restroom facilities, large outdoor entertaining patio with barbecue and separate kitchen facilities, with an inviting hacienda-style clubhouse. The park also includes a 2-acre fish-stocked pond surrounded by walking trails. Golf course views at Eastlake Greens are just one of the unique elements of this Eastlake master development where the homes surround an 18 hole award winning golf course designed by world-renowned architect Ted Robison. Residents have exclusive use of three parks maintained by the community association: Augusta Park, Country Club Park and Dolphin Beach. Country Club Park houses the community meeting room, a tennis complex and junior Olympic-size pool. Dolphin Beach features a 4,900-square-foot swimming pool with a sandy beach access. Gated community estates at The Woods are known for spectacular views that overlook the Otay Lakes. This Eastlake gated community is a Chula Vista enclave with custom built homes and a spectacular clubhouse. Located minutes from the U.S. Olympic Training Site, Salt Creek Golf Course and Otay Ranch Town Center. Cul-de-sac homes in Rolling Hills Ranch are just minutes away from the Montevalle Community Center, Salt Creek Golf Course, Eastlake Business Park and the SR 125. 2017-10-17 Agenda Packet Page 122 2120 The majority of the Chula Vista workforce is employed in industries requiring technical skills and advanced education with the number of residents in management, professional and technical occupations steadily increasing. − 2015 Labor Market Profile,Chabin Concepts DiverseTALENTED LABOR FORCE Key Sector Employment Health and Social Assistance Retail Public Administration Manufacturing 16,667 13,167 10,674 8,794 80.9%60.9% Post Secondary/Bachelor’s/Advanced Degrees High School Graduates 51.5%Multilingual 2017-10-17 Agenda Packet Page 123 2322 80% 70% 60% 50% 40% 30% 20% 10% White Black Asian Other 2 or more races (and some Other) Hispanic (of any race) Population by Ethnicity Chula VistaU.S.San Diego County 3 out of 10 Chula Vista residents are foreign-born 58.2% of Chula Vistans are of Hispanic or Latino origin vs San Diego County at 32% Approximately 35 languages are spoken in Chula Vista Chula Vista maintains a highly diverse population in comparison to the United States and San Diego County Source: 2015 Labor Market Profile, Chabin Concepts 51.5% of Chula Vista residents are multilingual 2017-10-17 Agenda Packet Page 124 2524 Elementary Schools: 88th percentile Middle Schools: 87th percentile High Schools: 82nd percentile Source: California Department of Education, www.cde.ca.gov The new economy requires students and workers with STEAM knowledge and skills, which Chula Vista has invested in to provide our community an advantage. Our City’s mission is to help foster an informed and talented workforce. Our school and community programs empower children, teens and adults to understand complex problems and to create innovative solutions to solve them. In 2017, the Chula Vista Public Library was selected as a NASA@ My Library partner, offering exciting, hands-on programs to build and explore robotics, engineering, 3D design, science experiments, computer coding and more. Our main City Library launched the “Innovation Station” maker space for robotics, engineering, 3D design and coding. Programming at this STEAM lab was created in collaboration with Microsoft and Qualcomm®, whose leaders explained in a recent video: “This is really a win-win because we would like to hire these students one day in the future!” www.chulavistaca.gov/innovationstation “San Diego County ranks 9th in top college towns in the United States.” STEAMFUTURE FOCUSED EDUCATION − American Institute for Economic Research, 2015 Sweetwater Union High School District (Grades 7-12) • Serves 41,000 students and 24,000 adult students on 32 campuses, of which 19 are located in Chula Vista. • The District was among the top 13 percent of nearly 20,000 eligible schools in the United States (U.S. News & World Report). • 10 of the 12 comprehensive high schools are California Distinguished Schools medal winners. Chula Vista Elementary School District (Grades K-6) • Serves 28,500 students on 46 campuses. • Campuses have been recognized by the California Business for Education Excellence Honor Roll. • All district campuses achieved testing index scores greater than the state’s target. • Nine schools were recognized as California Distinguished Schools. • Four schools were honored for excellence by the National Center for Urban School Transformation. The Otay Ranch neighborhood offers 12 K-6 schools, four middle schools and five high schools with the following average API scores: 2017-10-17 Agenda Packet Page 125 2726 Cost of Living Index for San Diego County (U.S. Average = 100)*Index includes housing, electricity, food and transportation. Source: Bestplaces.net Source: Zillow 350 300 250 200 150 100 50 0 297.6 288.3 254.9 223.8 197.6 180.6 163.7 156.6 150.8 147.7 Del Mar Coronado Solana Beach Encinitas Carlsbad Poway San Diego La Mesa Vista Chula Vista $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 0 $113,973 $103,127 $88,704 91914 91915 91913 Median Income by Zip Code of Proposed Amazon HQ2 Chula Vista $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 0 $745,800 $634,000 $542,500 $491,600 $475,000 Carlsbad Poway San Diego La Mesa Chula Vista Housing Median Prices Source: SANDAG, Current Estimates, www.sandag.org Living The three major advantages for Chula Vista residents include a lower cost of living and lower housing median prices than the average in San Diego County cities (18 cities), with Chula Vista residents earning a higher median household income than the average Californian and U.S. resident. LivingCOST OF 2017-10-17 Agenda Packet Page 126 2928 HQ2 TransportationLOCAL TO GLOBAL CONNECTIONS San Diego International Airport (Lindbergh Field) Tijuana International Airport and Cross Border Xpress (CBX) Bus Rapid Transit (BRT)Brown Field Municipal Airport Just 22 miles from Amazon HQ2 Chula Vista, the San Diego International Airport serves over 48,000 travelers daily via 465 flights. Direct flights to Seattle, New York, San Francisco / Bay Area and Washington, D.C. are just a few of the locations that over 20 million passengers enjoy each year from state-of-the-art terminals. This airport is just 6.6 miles from Amazon HQ2 Chula Vista and is open 24/7 catering to private, corporate, charter, air ambulance, law enforcement, fire rescue, flight training, cargo, skydiving, advertising and airships. The Brown Field air strip can land aircraft up to the size of a C-130 military transport plane. Serving over 10 million passengers per year, this international airport is less than 10 miles from Amazon HQ2 Chula Vista and offers direct flights to Latin America, China and Japan. A $120 million investment provided the Cross Border Express (CBX), which in 2015 established the first binational airport in the world via a cross-border access bridge connecting to an express terminal that offers over 360 flights per day. The CBX terminal allows passengers minimal check-in times and is a tremendous asset for Chula Vista and San Diego. The new BRT route will connect Amazon HQ2 and residential areas with major business and leisure destinations. Amazon employees will be just 30 minutes from the San Diego International Airport and 20 minutes from the Cross Border Xpress at the Tijuana International Airport. Service will be provided from the Otay Mesa Port of Entry to Downtown San Diego through Chula Vista with a dedicated guideway for BRT along the interstate 805 freeway to the state route 94. 2017-10-17 Agenda Packet Page 127 3130 Chula Vista-based NOVO Brazil Brewing Company won a bronze medal at the 2016 World Beer Cup for its Corvo Negro brew in a competition of 2,000 breweries from 63 countries with more than 6,500 total entries! LovingLoving LIFE Chula Vista offers endless entertainment and enrichment opportunities, from an outdoor amphitheater that seats 20,000 concert- goers to enjoying the Pacific ocean by sailing out of the Chula Vista marina or joining thrill-seekers of all ages at the Aquatica water park. Delicious restaurants can be found throughout Chula Vista, along with art festivals, the On Stage Playhouse, recreation classes, sports leagues and shopping for all tastes. There are weekly Farmer’s Markets, the Annual Lemon Festival, Harborfest on the Bayfront and Starlight Parade, enjoyed by tens of thousands of Chula Vista residents and visitors every year. More recently, the Amps & Ales event has emerged to celebrate the City’s outstanding craft beer and our exciting local music scene − a perfect combination for a community that rocks! The San Diego Gaslamp Quarter and diverse beaches are just a short drive away, and Baja California’s burgeoning Guadalupe Wine Valley is an exciting culinary adventure, described by the New York Times in April 2017 as “An Unexpected Wine Sanctuary.” Photo taken by Chula Vista resident John T. Taylor − “Drone over Aquatica,” March 2017 Photo taken by Chula Vista resident Ernesto Rivera − “J Street Marina at sunset,” May 2017 2017-10-17 Agenda Packet Page 128 3332 Otay R a n c h StationGOTHA M RUTGERSOTAY L A K E S SANTA VI C T O RI A SANTA V E N E TI A ROCK M T NMAGDALENA EX P L O R A T I O N F A L L S D I S CO V E R Y F A L L S LAK E C R E S T LA MEDIAOAK SPRINGS MARQUETTE MONARCHEOTAY L A K ES HUNTEOLYMPIC BIRCH LA M E D I A EASTLAKEHUNTEEASTLAKEH APACHEOLYMPIC G R E E N S V I E W KESTREL F A L L S SANTA L U N AHE R I T AG E CLUBHOUSE OLYMPICVISTA NORTH C R E E K S I D E WU E S T E PALOMAR 0 0.25 0.5 Miles Access Time Walk 5-minute Bike 5-minute Drive 5-minute Parks and Open SpaceBikeways 2020 Multi-Use Path Bike Lane Bike Route Transit Stops 2020 MapLocation La Mesa NationalCity San Diego ChulaVista Poway Santee Encinitas El Cajon Coronado Solana Beach Del Mar 0 3 6 Miles Transit Routes 2020 Rapid Transit Local Bus Rapid Neighborhood Electric Vehicle(NEV) Routes Existing Regional Paths Future Regional Paths y,Active, HealthyOPEN SPACE FOR LIFESTYLES HQ2 Open space and sustainability are at the heart of Chula Vista with an 11,375 acre ecological preserve and more than 60 well-maintained parks offering so many locations to unwind and recharge. Nature, an active lifestyle and breathing in the fresh mountain air and ocean breeze are all a part of our creative and competitive business community. What better way to explore the beauty of San Diego’s South County than by hiking or biking along one of the many trail systems or by kayaking, rowing and boating on Otay Lakes or into the Pacific Ocean. With virtually year-round sunshine and mild climate, Chula Vista is part of a region ranked as a top 50 golf destination in the world by Golf Digest.Photo taken by Chula Vista resident Corina Toscano − ”Otay Lakes,” March 2017 The City owns and operates a U.S. Olympic Training Site. Mobility Options 2017-10-17 Agenda Packet Page 129 3534 sSITEPROPOSED PHASES 1-4 Millenia Office Retail Residential Hospitality Millenia Office is strategically located within the Millenia Master Plan in Eastern Chula Vista which has major construction in multiple districts underway. Millenia will be a vibrant walkable community anchored by food, retail, public parks, hospitality, business and housing. The City of Chula Vista has an Unmanned Aerial testing facility and is one of 10 USDOT Autonomous Vehicle testing locations. A Pulse | for lease by Fairfield Residential B Volta & Duetta | for lease by Chelsea Investments C Evo | for sale by Meridian Communities D Metro | for sale by Meridian Communities E Trio | for sale by Meridian Communities F Element | for sale by Shea Homes G Z | for sale By Shea Homes H Ayres Hotel I Millenia Office J Alexan | for lease by Trammel Crow Residential K Sudberry Retail Millenia AvenueBirch Road City of Chula Vista land — Millenia Phase III, IV and future ± 300 acres The City of Chula Vista will allocate the entire Innovation District, which equates to 85 acres (4 million square feet of development), for Amazon’s future growth. City of Chula Vista land—Millenia Phase III ± 8.5 acres City of Chula Vista supports an additional 1M s.f. for Amazon. Millenia Office —Millenia Office Phases I & II 28 acres Chesnut Properties Fully entitled for 3M s.f. of office 500,000 s.f. available Q3 2019 Pacific Ocean Otay Ranch Town Center Mall Stylus Park Future Fire Station Future Middle School Millenia Office is designed as a true campus style opportunity, where themes of collaboration and connectivity are infused throughout the architecture and design. Highly efficient large floor plates increase opportunities for chance encounters that spur on innovation and discovery. We have even taken the theme of connectivity to the next level by joining buildings together through a series of outdoor bridges and connectors to allow people to travel horizontally through some of the largest floor plates currently available in this Southern California region. Connected Design. 2017-10-17 Agenda Packet Page 130 36 Millenia Ave Montage Ave Bob Pletcher WayThink. Invent. Discover. Transform. Invent. (Phase II)1,300,000 GSF | 9 Levels4,290 Cars provided Discover. (Phase III)1,200,000 GSF | 26 Levels3,960 Cars provided Think. (Phase I)500,000 GSF | 4 Levels3 Buildings 1,650 Cars provided Transform. (Phase III)1,000,000 GSF | 11 Levels3,331 Cars provided Millenia OfficeOverall Site Plan 0’150’300’75’N St ra ta S t ree t Future Fire Station Millenia Office / Chesnut Properties362017-10-17 Agenda Packet Page 131 Millenia Ave Montage Ave Bob Pletcher WayMillenia A v e Montage Ave Bob Pletcher WayThink. (Phase I)500,000 GSF | 4 Levels3 Buildings 1,650 Cars provided Site Summary:Lot: 7Site Area: 7.06 ACBuilding Area: 500,000 GSF Approx. Area Summary:BLDG 1: 150,000 SF - 4 LEVELS - 37,500 SF Per FloorBLDG 2: 164,000 SF - 4.5 LEVELS - 37,500 SF Per FloorBLDG 3: 186,000 SF - 4 LEVELS - 37,500 SF Per Floor Total Office Area: 500,000 GSF Accessory Space:Amenity (Accessory space): 6,100 SF Parking Summary:Parking Required (Based on office)500,000 GSF (3.3/1000 GSF) = 1,650 spaces required Parking Provided: Below GradeB1: 192,500 SF : 550 spaces B2: 192,500 SF : 550 spacesB3: 192,500 SF : 550 spaces Total Parking Provided = 1,650 spaces Millenia Office Think — Campus 001 / Phase 1 Future Fire Station Invent. (Phase II)1,300,000 GSF | 9 Levels4,290 Cars provided Millenia Office Invent — Campus 002 / Phase 2 Site Summary:Lot: 7Site Area: 7.06 ACBuilding Area: 500,000 GSF Approx. Area Summary:1st Floor: 153,000 SF2nd Floor: 155,000 SF3rd Floor: 208,000 SF4th Floor: 208,000 SF5th Floor: 144,000 SF6th Floor: 144,000 SF7th Floor: 133,000 SF8th Floor: 115,000 SF9th Floor: 40,000 SF Total Office Area: 1,300,000 GSF Accessory Space:Amenity (Accessory space): 15,280 SFGarage Support Space: 25,000 SF Parking Summary:Parking Required (Based on office)1,300,000 GSF (3.3/1000 GSF) = 4,290 spaces required Parking Provided (Below Deck):B1: 417,000 SF : 1,191 spaces + 25,000 garage supportB2: 442,000 SF : 1,263 spacesB3: 214,200 SF: 612 spacesB4: 214,200 SF: 612 spacesB5: 214,200 SF: 612 spacesTotal Parking Provided = 4,290 spaces Future Fire Station Campus 001 — Think / Millenia Office / Chesnut Properties Campus 002 — Invent / Millenia Office / Chesnut Properties 0’150’300’75’N0’150’300’75’N 382017-10-17 Agenda Packet Page 132 Millenia Ave Montage Ave Bob Pletcher WayMillenia Ave Montage Ave Bob Pletcher WayMillenia Office Site Summary:Lot: 19Site Area: 9.95 ACBuilding Area: 1,200,000 GSF Approx. Area Summary:1st Floor: 90,500 SF2nd Floor: 96,650 SF3rd Floor: 107,650 SF4th Floor: 105,500 SF5th Floor: 88,500 SF6th Floor: 79,220 SF7th Floor: 64,950 SF8th Floor: 47,500 SF9th Floor: 47,500 SF 10th - 11th Floor: 34,000 SF 12th - 13th Floor: 33,000 SF14th - 15th Floor: 31,000 SF16th - 17th Floor: 30,000 SF18th - 19th Floor: 28,000 SF20th - 21st Floor: 26,000 SF22nd - 23rd Floor: 25,000 SF24th - 25th Floor: 23,000 SF26th Floor: 22,000 SF Total Office Area: 1,200,000 GSF Accessory Space:Amenity (Accessory space): 12,760 SFGarage Support Space: 26,700 SF Parking Summary:Parking Required (Based on office area)1,200,000 SF (3.3/1000 GSF) = 3,960 spaces required Parking Provided: (Below Deck)B1: 360,300 SF : 1,030 spaces + 26,700 garage supportB2: 387,000 SF : 1,106 spacesB3 - B5: 212,800 SF : 608 spaces Total Parking Provided = 3,960 spaces Discover — Campus 003 / Phase 3 St ra ta S t ree t Discover. (Phase III)1,200,000 GSF | 26 Levels3,960 Cars provided Campus 003 — Discover / Millenia Office / Chesnut Properties St ra ta S t ree t Transform. (Phase III)1,000,000 GSF | 11 Levels3,331 Cars provided Montage Ave Millenia Office Site Summary:Lot: 16Site Area: 8.54 ACBuilding Area: 1,000,000 GSF Approx. Area Summary:1st Floor: 90,500 SF2nd Floor: 96,650 SF3rd Floor: 107,650 SF4th Floor: 105,500 SF5th Floor: 88,500 SF6th Floor: 79,220 SF7th Floor: 64,950 SF8th Floor: 47,500 SF9th Floor: 47,500 SF 10th Floor: 34,000 SF11th Floor: 34,000 SF Total Office Area: 1,000,000 GSF Accessory Space:Amenity (Accessory space): 5,000 SF Parking Summary:Parking Required (Based on office area)1,000,000 SF (3.3/1000 GSF) = 3,300 spaces required Parking Provided: (Structure- 9 Levels Above / 4 Levels Below)B5: 74,000 SF : 211 spaces B4: 84,000 SF : 240 spacesB3: 84,000 SF : 240 spacesB2: 84,000 SF : 240 spacesB1: 84,000 SF : 240 spacesP1 - P9: 84,000 SF Per Floor : 2,160 spaces Total Parking Provided = 3,331 spaces Transform — Campus 004 / Phase 3 Campus 004 — Transform / Millenia Office / Chesnut Properties 0’150’300’75’N 0’150’300’75’N 402017-10-17 Agenda Packet Page 133 Millenia Ave Montage Ave Bob Pletcher WayMillenia Office Amazon Hub — Phase 3 Amazon Hub. 24,000 SF | 1 Level BridgeOutdoor Amphitheater Montage Ave St r a ta S t ree t Amazon Hub / Millenia Office / Chesnut Properties Amazon Hub / Millenia Office / Chesnut Properties 0’150’300’75’N 422017-10-17 Agenda Packet Page 134 4544 S treamlinedSIMPLE SUSTAINABLE INNOVATION DISTRICT PHASE 3 AND 4 OF AMAZON HQ2. AmazonCity of Chula VistaChesnut Properties 8M+ square feet 2017-10-17 Agenda Packet Page 135 4746 F utureOUR TOGETHER Chula Vista is growing with major developments in the eastern part of the City. Population in 2000173,556 Population in 2017 267,000 Projected population in 2020280,000 Contact:Eric CrockettCity of Chula Vista Economic Development Directorecrockett@chulavistaca.govOffice: (619) 476-5341Direct: (619) 857-3725 www.chulavistaca.gov With every day that passes, we help to shape future generations. The natural landscape changes and our educational, economic and technological contributions advance an entire global community. Chula Vista has been preparing for decades to create a future that preserves our pristine greenfields and ecological treasures. Our Climate Action Plan, adopted in 2000, is on target to achieve 100% clean, renewable energy by 2035 and to continue serving as a leader in active transportation and mode sharing. We will be home to the world’s first binational cross-border university, and we have already approved testing of autonomous vehicles and UAVs on our roads and airways. The 535-acre Chula Vista Bayfront Master Plan has been approved as one of the largest waterfront developments on the West Coast. This collaborative development effort will create a world-class destination that reflects strong planning and design principles, economic feasibility and community benefits. The planned Chula Vista Bayfront 1,500-room resort hotel and 400,000-square-foot convention center alone will create more than 16,000 new jobs and generate $1.7 billion in annual revenue. 250 acres are set aside for protected wildlife and habitat, plus 46 acres will consist of new parks, trails and bike paths for the community to enjoy. The City of Chula Vista is a strong partner that has proven its ability to successfully execute on visionary, multi-faceted billion-dollar development projects with a commitment to innovative pilot programs and environmental stewardship. Opportunities to shape the coast on our western hemisphere, particularly within a region that includes the world’s busiest international border crossing, can only be expected once in a lifetime. Property of RIDA Chula Vista LLC. THIS OPPORTUNITY IS OURS TO BUILD TOGETHER! 2017-10-17 Agenda Packet Page 136 Prepared by NV5 Global, Inc. 2017-10-17 Agenda Packet Page 137 Ronald Reagan Administration Building, Office of the Governor  300 South Spring Street, Suite 16701, Los Angeles, CA 90013  GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT STATE OF CALIFORNIA  OFFICE OF GOVERNOR EDMUND G. BROWN JR.            REQUEST FOR INFORMATION (RFI)      “Amazon HQ2”    The Governor’s Office of Business and Economic Development (“GO‐Biz”), is requesting your assistance  in collecting information requested by Amazon for its site selection decision on a proposed new  headquarters facility.     On Thursday September 7, 2017, Amazon issued a press release announcing its search for a new second  headquarters location in N. America. Please find Amazon’s Request for Proposal enclosed herein.  California Business Investment Services (CalBIS), is coordinating a statewide response and will be  assembling all electronic and hard copy responses.     Please submit all documents electronically by e‐mail to: Communi.4mzl14heiqe87n9h@u.box.com  with a copy to jeff.malin@gov.ca.gov and shea.benton@gov.ca.gov. Please include Amazon HQ2 in the  e‐mail subject heading.     Due to the hard copy submission requirement, CalBIS respectfully requests your submission to be e‐ mailed at close of business on Monday, October 16, 2017. Please let us know if you are not able to meet  this deadline.     Please contact me with any questions at jeff.malin@gov.ca.gov or by phone at (213) 435‐9554. Thank  you in advance for your assistance with this request.    Respectfully,          Jeff Malin  Sr. Business Development Specialist  California Business Investment Services   2017-10-17 Agenda Packet Page 138 Amazon HQ2 RFP INSTRUCTIONS TO RESPONDENTS Amazon invites you to submit a response to this Request for Proposal (“RFP”) in conjunction with and on behalf of your metropolitan statistical area (MSA), state/province, county, city and the relevant localities therein. Amazon is performing a competitive site selection process and is considering metro regions in North America for its second corporate headquarters. We encourage states, provinces and metro areas to coordinate with relevant jurisdictions to submit one (1) RFP for your MSA. The RFP may contain multiple real estate sites in more than one jurisdiction, but we do encourage you to submit your best sites to meet or exceed the needs of our Project described in this RFP. Any questions regarding the information or items requested in this document can be submitted using the email below. We encourage you to go through the process as outlined in the RFP and ask questions of the team using the email provided below. PROPOSAL REQUIREMENTS Please provide an electronic copy and five (5) hard copies of your responses by October 19, 2017 to amazonhq2@amazon.com. Please send hard copies marked “confidential” between the dates of October 16th – 19th to: Amazon Office of Economic Development c/o Site Manager Golden 2121 7th Ave Seattle, WA 98121 For electronic submittals, please send a password-protected website URL or a USB only. If using a password-protected website, the submitting agency should also submit written responses to the RFP questions (Information Requested section). TIMELINE September 7, 2017 RFP Phase I Available October 19, 2017 RFP Phase I Response Deadline 2018 Final Site Selection and Announcement 2017-10-17 Agenda Packet Page 139 1 OVERVIEW Background: The purpose of this RFP is to describe the Project and provide a framework for soliciting specific information that will allow Amazon to determine the ideal location for our Project. The Project is a second corporate headquarters (HQ2), at which Amazon will hire as many as fifty thousand (50,000) new full-time employees with an average annual total compensation exceeding one hundred thousand dollars ($100,000) over the next ten to fifteen years, following commencement of operations. The Project is expected to have over $5 billion in capital expenditures as described in more detail in this RFP. Amazon is a publicly traded U.S. corporation and is a leading internet retailer and technology company. Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. The Company presently maintains more than 380,000 employees at multiple facilities in North America and throughout the world. Due to the successful growth of the Company, it now requires a second corporate headquarters in North America. Amazon’s current headquarters is located in downtown Seattle, Washington. This urban campus employs tens of thousands of employees. Amazon has been a catalyst for development in downtown Seattle with an abundance of restaurants, services, coffee shops, and for the redevelopment of South Lake Union and Denny Triangle with its sustainable buildings and open spaces. In 2017, Amazon was awarded the “City Maker” award by the Downtown Seattle Association. Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city’s economy – every dollar invested by Amazon in Seattle generated an additional $1.4 for the city’s economy overall. Find more information at: www.amazon.com/amazonHQ2. We look forward to working with you and your team to find a suitable site and establish a cost structure with a stable business climate for growth and innovation that would encourage Amazon to locate this high-profile Project in your community. In choosing the location for HQ2, Amazon has a preference for:  Metropolitan areas with more than one million people  A stable and business-friendly environment  Urban or suburban locations with the potential to attract and retain strong technical talent  Communities that think big and creatively when considering locations and real estate options HQ2 could be, but does not have to be:  An urban or downtown campus  A similar layout to Amazon’s Seattle campus  A development-prepped site. We want to encourage states/provinces and communities to think creatively for viable real estate options, while not negatively affecting our preferred timeline 2017-10-17 Agenda Packet Page 140 2 PROJECT FACTS Employment: The Project is expected to create as many as fifty thousand (50,000) new full-time jobs with an average annual compensation exceeding one hundred thousand dollars ($100,000) per employee. We will begin sourcing for talent at Amazon HQ2 upon final site selection. Please note that the actual average wage rate may vary from the projected wage rate depending upon prevailing rates at the final location. Amazon also provides a highly competitive benefits package including a retirement plan, health insurance, and maternity/paternity leave, featuring Amazon’s Leave Share and Ramp Back program. All job numbers, categories, and salaries contained herein are estimates/projections and are subject to change. The jobs will likely be broken down into the following categories: executive/management, engineering with a preference for software development engineers (SDE), legal, accounting, and administrative. Amazon is an equal opportunity employer. Building/Site Requirements: Amazon is considering greenfield sites, infill sites, existing buildings, or a combination for the Project. If existing buildings are available that can be retrofitted/expanded within an acceptable budget and time schedule, Amazon may consider this option; however, the company acknowledges that existing buildings may not be available to meet its requirements. As such, Amazon will prioritize certified or shovel-ready greenfield sites and infill opportunities with appropriate infrastructure and ability to meet the Project’s timeline and development demands, as set forth below. The following is a summary of the Project’s ideal site and building requirements: Core Preferences Quantity Units Description Site Requirements Proximity to population center 30 Miles Proximity to International airport Within approx. 45 Minutes Proximity to major highways and arterial roads Not more than 1-2 Miles Close to major arterial roads to provide optimal access Access to mass transit At site Direct access to rail, train, subway/metro, bus routes Building Requirements Initial Square Foot Requirement 500,000+ Sq. Ft. Phase I (2019) Total Square Foot Requirement Up to 8,000,000 Sq. Ft. Beyond 2027 2017-10-17 Agenda Packet Page 141 3 Details of Amazon’s Seattle headquarters: Amazon Seattle HQ Direct1 Number of buildings 33 Square feet 8.1 million Local retail within Amazon headquarters 24 restaurants/cafes + 8 other services Amazon Employees 40,000+ Capital investment (buildings & infrastructure) $3.7 billion Operational expenditures (utilities & maintenance) $1.4 billion Compensation to employees $25.7 billion Number of annual hotel nights by visiting Amazonians and guests 233,000 (2016) Amount paid into the city’s public transportation system as employees’ transportation benefit $43 million Indirect2 Additional jobs created in the city as a result of Amazon’s direct investments 53,000 Additional investments in the local economy as a result of Amazon’s direct investments $38 billion Increase in personal income by non-Amazon employees as a result of Amazon’s direct investments $17 billion Increase in Fortune 500 companies with engineering/R&D centers in Seattle From 7 in 2010 to 31 in 2017 1From 2010 (when Amazon moved its headquarters to downtown Seattle) to June 2017. 2From 2010-2016. Calculated using Input-Output methodology and multipliers developed by the U.S. Bureau of Economic Analysis. Priority for Consideration (in no particular order): Amazon will consider the following site/building categories for the Project: 1. Existing buildings of at least 500,000+ sq. ft., meeting the core requirements described above and that are expandable or have additional options for development nearby. 2. A greenfield site of approximately 100 acres certified or pad ready, with utility infrastructure in place. The sites do not have to be contiguous, but should be in proximity to each other to foster a sense of place and be pedestrian-friendly. 3. Other infill, existing buildings, including opportunities for renovation/redevelopment and greenfield sites, meeting the proximity and logistics requirements of the Project. This can also be a combination of the above. 2017-10-17 Agenda Packet Page 142 4 4. Please also consider the overall proximity of the buildings at full build-out as you are making recommendations. Capital Investment: The Project could be over $5 billion in capital investment over the initial 15-17 years of the Project. Please note the capital investment required to acquire and retrofit an existing building is dependent upon the condition and nature of that building. As such, the following capital investment estimates will vary depending upon site requirements and actual construction costs, particularly with respect to an existing building. Building Phase Estimated Capital Investment Phase I Building (500,000-1,000,000 sf) $300,000,000-$600,000,000 Phase II Building (1,000,000-2,000,000 sf) $600,000,000-$1,260,000,000 Phase III Building (2,000,000-3,000,000 sf) $1,260,000,000-$1,985,000,000 Phase IV and beyond will grow organically. At full build-out, the campus or park may exceed 8 million square feet and over $5 billion in total capital investment. Amazon will continue to invest in its facilities to ensure we offer a state-of-the-art workplace for our employees. States, provinces and metro economic development organizations should consider this as they suggest potential sites. Be sure to include opportunities to cultivate local culture and creativity into the Amazon HQ2 site. Also, include connectivity options: sidewalks, bike lanes, trams, metro, bus, light rail, train, and additional creative options to foster connectivity between buildings/facilities. Additional Information: Sustainability: Amazon is committed to sustainability efforts. Amazon’s buildings in its current Seattle campus are sustainable and energy-efficient. The buildings’ interiors feature salvaged and locally sourced woods, energy-efficient lighting, composting and recycling alternatives as well as public plazas and pockets of green space. Twenty of the buildings in our Seattle campus were built using LEED standards. Additionally, Amazon’s newest buildings use a ‘District Energy’ system that utilizes recycled heat from a nearby non-Amazon data center to heat millions of square feet of office space – a system that is about 4x more efficient than traditional heating. This system is designed to allow Amazon to warm just over 4 million square feet of office space on Amazon’s four-block campus, saving 80 million kilowatt-hours over 20 years, or about 4 million kilowatt-hours a year. We also invest in large solar and wind operations and were the largest corporate purchaser of renewable energy in the U.S. in 2016. Amazon will develop HQ2 with a dedication to sustainability. Connectivity: Ensuring optimal fiber connectivity is paramount at our HQ2 location. Please demonstrate the fiber connectivity on all submitted sites. Also, demonstrate multiple cellular phone coverage maps to ensure optimal service. 2017-10-17 Agenda Packet Page 143 5 KEY PREFERENCES AND DECISION DRIVERS The below are our preferences and are not in a ranking order. We want to encourage you to think big and be creative as you are collaborating to respond. Please address the drivers discussed below in your RFP submittals. Site/Building – As described herein, finding suitable buildings/sites is of paramount importance. Amazon HQ2 is a transformational Project, and we must ensure we have the best real estate options available whether this be a redevelopment opportunity, a partnership with the state, province, local government, or new buildings. All options are under consideration. Capital and Operating Costs – A stable and business-friendly environment and tax structure will be high-priority considerations for the Project. Incentives offered by the state/province and local communities to offset initial capital outlay and ongoing operational costs will be significant factors in the decision-making process. Incentives – Identify incentive programs available for the Project at the state/province and local levels. Outline the type of incentive (i.e. land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount. The initial cost and ongoing cost of doing business are critical decision drivers. Labor Force – The Project includes significant employment requirements at the threshold compensation levels described herein and with corresponding educational attainment of the available workforce. The Project must be sufficiently close to a significant population center, such that it can fill the 50,000 estimated jobs that will be required over multiple years. A highly educated labor pool is critical and a strong university system is required. Logistics – Personnel travel and logistics needs, both from population centers to the Project site, as well as between company facilities, are critically important. As such, travel time to a major highway corridor and arterial roadway capacity potential are key factors. The highway corridors must provide direct access to significant population centers with eligible employment pools. Travel time to an international airport with daily direct flights to Seattle, New York, San Francisco/Bay Area, and Washington, D.C. is also an important consideration. Time to Operations – The Project requires an expeditious timetable for the location decision and the commencement of construction. Given this, sites with the requisite access, utility infrastructure, and zoning are critical. Please outline the permitting process and estimated timetable to initiate Phase I of our operations. Cultural Community Fit – The Project requires a compatible cultural and community environment for its long-term success. This includes the presence and support of a diverse population, excellent institutions of higher education, local government structure and elected officials eager and willing to work with the company, among other attributes. A stable and consistent business climate is important to Amazon. Please demonstrate characteristics of this in your response. We encourage testimonials from other large companies. Community/Quality of Life – The Project requires a significant number of employees. We want to invest in a community where our employees will enjoy living, recreational opportunities, educational opportunities, and an overall high quality of life. Tell us what is unique about your community. 2017-10-17 Agenda Packet Page 144 6 INFORMATION REQUESTED 1. Please provide information regarding potential buildings/sites that meet the criteria described herein. Along with general site information, please provide the current ownership structure of the property, whether the state/province, or local governments control the property, the current zoning of the site, and the utility infrastructure present at the site. 2. Please provide a summary of total incentives offered for the Project by the state/province and local community. In this summary, please provide a brief description of the incentive item, the timing of incentive payment/realization, and a calculation of the incentive amount. Please describe any specific or unique eligibility requirements mandated by each incentive item. With respect to tax credits, please indicate whether credits are refundable, transferable, or may be carried forward for a specific period of time. If the incentive includes free or reduced land costs, include the mechanism and approvals that will be required. Please also include all timelines associated with the approvals of each incentive. We acknowledge a Project of this magnitude may require special incentive legislation in order for the state/province to achieve a competitive incentive proposal. As such, please indicate if any incentives or programs will require legislation or other approval methods. Ideally, your submittal includes a total value of incentives, including the specified benefit time period. 3. If any of the programs or incentives described in the summary of total incentives are uncertain or not guaranteed, please explain the factors that contribute to such uncertainty and estimate the approximate level of certainty. Please also describe any applicable claw backs or recapture provisions required for each incentive item. 4. Please provide a timetable for incentive approvals at the state/province and local levels, including any legislative approvals that may be required. 5. Please provide labor and wage rate information in the general job categories described. Please provide relevant labor pool information and your ability to attract talent regionally. Also, include specific opportunities to hire software development engineers and recurring sourcing opportunities for this type of employment. Please include all levels of talent available in the MSA, including executive talent and the ability to recruit talent to the area. 6. Please include programs/partnerships currently available and potential creative programs with higher education institutions in the region in your response. Please also include a list of universities and community colleges with relevant degrees and the number of students graduating with those degrees over the last three years. Additionally, include information on your local/regional K-12 education programs related to computer science. 7. Please provide highway, airport, and related travel and logistics information for all proposed sites. Please also include transit and transportation options for commuting employees living in the region. For each proposed site in your region, identify all transit options, including bike lanes and pedestrian access to the site(s). Also, list the ranking of traffic congestion for your community and/or region during peak commuting times. 2017-10-17 Agenda Packet Page 145 7 8. Please include information on your community with respect to daily living, recreational opportunities, diversity of housing options, availability of housing near potential sites for HQ2, and pricing, among other information. Please also include relevant crime data and cost of living data. 9. Please use your response as an opportunity to present any additional items and intangible considerations with respect to your state/province and community that Amazon should include in its analysis. While the existence of the Project is not confidential, certain aspects of the Project and details regarding the company are confidential, proprietary, and constitute trade secrets. Amazon will deliver a Confidentiality and Non-Disclosure Agreement for execution at the appropriate time. Conclusion: As this is a competitive Project, Amazon welcomes the opportunity to engage with you in the creation of an incentive package, real estate opportunities, and cost structure to encourage the company’s location of the Project in your state/province. Please contact amazonhq2@amazon.com for questions while responding to this RFP. This RFP is only an invitation for proposals, the substance of which may be memorialized in a binding, definitive agreement or agreements if any proposal is selected. Amazon may select one or more proposals and negotiate with the parties submitting such proposals before making an award decision, or it may select no proposals and enter into no agreement. 2017-10-17 Agenda Packet Page 146 AmazonHQ2 at Millenia Office Presented by Chesnut Properties , LLC in response to Amazon’s RFP dated September 7th, 2017 AmazonHQMillenia.com 2017-10-17 Agenda Packet Page 147 AmazonHQMillenia.com 2017-10-17 Agenda Packet Page 148 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 4 AmazonHQMillenia.com California’s Next Tech Megaregion Millenia Office is a mega-scale campus opportunity located in San Diego County, with plans in place repre- senting 4 million sq. ft. on 4 adjacent lots and additional land for future expansion to 8m sq. ft. This project rep- resents a compelling response to Amazon’s search for a location to establish a new headquarters. Real Estate Solutions presented by Chesnut Properties: master developer of office parcels at Millenia San Di- ego, and 85 acres committed by the City of Chula Vista to support future phases of Amazon’s expansion. 1,300,000 GSF | 9 Levels | 4,290 Cars provided Invent. Campus 002 / Phase II 002 500,000 GSF | 4 Levels | 3 Buildings | 1,650 Cars provided Think. Campus 001 / Phase I 001 1,200,000 GSF | 26 Levels | 3,960 Cars provided Discover. Campus 003 / Phase II 003 Transform. 1,000,000 GSF | 11 Levels | 3,331 Cars provided Campus 003 / Phase III 004 Amazon Hub. Outdoor Amphiteater / Phase II 000 24,000 SF | 1 Level Bridge 2017-10-17 Agenda Packet Page 149 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 5 AmazonHQMillenia.com Our project, Millenia Office has powerful entitlements in place to allow Chesnut to present a dynamic world class option for Amazon to consider for its 2nd National Headquarters. Our three parcels located at Millenia, a greenfield site, can pro- vide up to 3 million square feet of the best real estate facilities we can deliver; Pre-certified LEED v4 “Platinum” and International WELL Building Institute “Gold.” Added to our 3 parcels, the City of Chula Vista is offering a 4th campus option on land they con- trol that brings our total capability to over 4 million square feet at Millenia. The City of Chula Vista assures that this 4th campus of 1m sq. ft. (on 8.25 acres) will be overwhelmingly approved by leadership to support a dynamic 4-campus cluster of 4m sq. ft. at Millenia. In addition to the 4m sq. ft. Millenia Office campus project; situ- ated in short proximity to the South lies an additional 85 acres of City owned land that will be gifted to Amazon to allow for future phases and growth of the Amazon HQ to 8m sq.ft. or more. We call our campus cluster THINK, DISCOVER, INVENT and TRANSFORM, all of which are connected by a walkable, socially alive and empowering series of walkways and bridges, with its Nexus coming together in what we call The Amazon Hub. This is envisioned to be an interactive park anchored by a wrap-around digital display to experience live-feeds of life at other Amazon sites, and possibly dynamic presentations by Amazon leadership from time-to-time, bringing HQ2 into a living and active relation- ship with Amazon worldwide. When Lee Chesnut was first shown the Millenia site 3 years ago, he stood on the land and knew instantly that this location would be the start of something big. Large-scale business has always been the goal of this location and after decades of work by developers and civic leaders, everything is now ready for that to happen. Amazon HQ2 at Millenia Office 2017-10-17 Agenda Packet Page 150 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 6 AmazonHQMillenia.com Think Campus. Delivery Timeline Transform Campus. Invent and Discover Campuses, Amazon Hub City of Chula Vista Owned Land 3 buildings: 500K sq. ft. Total Fully Entitled, Permit Ready for 2 buildings Campus can be fully delivered by Q3 2019 1 building: 1m sq. ft. Total City of Chula Vista Owned Land | Entitlements approved upon commencement, Conceptual Design Completed | Can be delivered as early as 2021 2 buildings: 2.5 m sq. ft. Total Invent: Fully Entitled, Conceptual Design Completed Discover: Fully Entitled, Conceptual Design Completed Can be delivered as early as Q4 2019 85 Acres Representing 4m sq. ft. or more of opportunity Can be delivered as early as 2022 Phase I Phase III Phase II Phase III, IV & Beyond Q3 2019 Early 2021 Q4 2019 Early 2022 2017-10-17 Agenda Packet Page 151 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 7 AmazonHQMillenia.com A B F H J K D C G E Millenia AvenueBirch Road City of Chula Vista land Millenia Phase III, IV and future ± 300 acres The City of Chula Vista will allocate the entire Innovation District, which equates to 85 acres (4 million square feet of development), for Amazon’s future growth. A Pulse | for lease by Fairfield Residential B Volta & Duetta | for lease by Chelsea Investments C Evo | for sale by Meridian Communities D Metro | for sale by Meridian Communities E Trio | for sale by Meridian Communities F Element | for sale by Shea Homes G Z | for sale By Shea Homes H Ayres Hotel I Millenia Office J Alexan | for lease by Trammel Crow Residential K Sudberry Retail Millenia Office Retail Residential Hospitality City of Chula Vista land Millenia Phase III ± 8.5 acres City of Chula Vista supports an additional 1M s.f. for Amazon. Millenia O ice Millenia O ice Phases I & II 28 acres Chesnut Properties Fully entitled for 3M s.f. of o ice 500,000 s.f. available Q3 2019 Pacific Ocean s Millenia O ice is strategically located within the Millenia Master Plan in Eastern Chula Vista which has major construction in multiple districts under way. Millenia will be a vibrant walkable community anchored by food, retail, public parks, hospitality, business, and housing. The City of Chula Vista has an Unmanned Aerial testing facility and is one of ten USDOT Autonomous Vehicle testing locations.Otay Ranch Town Center Mall I Stylus Park FutureFire Station Future Middle School K 2017-10-17 Agenda Packet Page 152 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 8 AmazonHQMillenia.com Project Highlights Sustainability. The vision for Millenia Office is to create an ecosystem where the workplace and the environment are mutually celebrated. Our project is targeting a LEED Platinum rating across the board and will become a model for how large-scale facilities can be delivered in a way that seeks to improve the natural environment and not take away from it. Millenia Office is being developed as office space which deeply understands that sustainable workspaces are integral to our occupant’s core values, productivity and wellbeing. Wellness. Launched in October 2014 after six years of research and development, the WELL Building Standard is the premier standard for buildings, interior spaces and communities seeking to implement, validate and measure features that support and advance human health and wellness. At Mille- nia Office, we are targeting a WELL Building certification on all buildings with the goal of cultivating an environment that encourages creativity, boosts productivity, and ultimately will help you be a healthier person. Connected Design Millenia Office is designed as a true campus style opportunity, where themes of collaboration and connectivity are infused throughout the architec- ture and design of the project. Highly efficient super floor plates increase opportunities for chance encounters that spur on innovation and discovery. We have even taken the theme of connectivity to the next level, by joining buildings together through a series of outdoor bridges and connectors to allow people to travel horizontally through some of the largest floor plates currently available in San Diego. Here are some of the main Sustainability and Well- ness Features of Millenia Office. • Rooftop PV panel array • Electric Vehicle Charging Stations • Tesla energy storage system (to store the sun’s energy for use when it’s not shining) • Regenerative drive elevators that recover energy • Alluring stairs that promote a healthy alternative to elevators • Landscaping designed for human interaction, habitat conservation, local climate and ecosystem biodiversity • Comfortable, glare-free outdoor work environments • Air filtration systems and healthy building materials that ensure superior indoor air quality • Advanced water filtration system ensuring superior water quality for occupants • High ceilings and floor to ceiling windows create an open, low-stress work environment: ample natural light and views outside contribute to occupants’ happiness and productivity 2017-10-17 Agenda Packet Page 153 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 9 AmazonHQMillenia.com Access. Millenia is located off the Birch Road exit of the South Bay Expressway (SR 125) in South San Diego County, providing easy ingress/egress for convenient access and excellent visibility for building signage. Millenia is conveniently located near 3 airports: 10 min – Brown Field Municipal and Freight Airport 14 min – Tijuana International Airport Cross Border Xpress (CBX) 25 min – San Diego International Airport Transportation Highlights The Millenia Master plan surrounding the office project is built in an extremely pedestrian friendly urban style, with tree lined promenades, parks, jogging paths and bike lanes. Here are some of the transit and transportation highlights of Millenia Office: • Walkable Mixed-Use Community • Autonomous Shuttle proposed throughout Millenia community • South Bay Bus Rapid Transit Route from Downtown to Millenia/Otay Mesa port of entry (coming 2018) • Reverse Commute Location - Establishing this business in the South-East county of San Diego would allow employees that work here to go the opposite direction of the current rush hour trends in San Diego. • “Invisible Cars” - Subterranean parking throughout the site create a more urban, walkable pedestrian oriented environment.   Demographic Highlights Median Household Income $101,760 For Zip Code 91915 Population – 2017 1.43M within 25 minutes Projected Population Growth 2016 – 2021 5.4% within 25 minutes The majority of the Chula Vista workforce is employed in industries requiring technical skills and advanced ed- ucation with the number of residents in management, professional and technical occupations steadily increas- ing.− 2015 Labor Market Profile,Chabin Concepts 60.9% - Post Secondary/Bachelor’s/Advanced Degrees 80.9% High School Graduates 51.5% - Multilingual Project Highlights Cont. 2017-10-17 Agenda Packet Page 154 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 10 AmazonHQMillenia.com Climate. The Millenia Office Campus is located in Southern Cali- fornia’s mild ocean breeze climate, where the adjacent Pacific Ocean’s warm waters contribute to the region’s comfortable temperate all year long. Local tempera- tures average an annual range between 63 to 72 de- grees. Local humidity consistently falls within human comfort ranges, and 70⁰F average temperature prevail- ing wind patterns range from 5-10 mph. The region has excellent solar availability, making it one of the most prime locations in the country for photovoltaic renew- able energy systems. The average number of sunny days is 261 which is 31% more than Seattle and 17% more than the national average. With Chula Vista’s incredible climate we have designed the corporate campus of the future allowing teams to work outdoors and enjoy the fresh air, views to Otay mountain range and amenities of our site re- ducing the average time a professional spends indoors from 90% to 70%. The design of the campus with its outdoor paths and connected bridge ways was inspired by the location’s climate and natural surroundings. Additionally, we have brought the outdoors in through biophilic design, brilliant views to the outdoors, natural daylighting and an air-conditioning system designed to bring in high volumes of fresh air in full alignment with the WELL building standard. Affordability. Due to the low land basis, Millenia Office is able to be deliv- ered to its occupants at below market rates for high perfor- mance space. In addition to affordable space in the campus, there are numerous new housing projects currently being built out and selling at Millenia in the low $400,000s. At that price, employees could own affordable homes and walk to work. Millenia: A New Urban Hub Millenia Office is strategically located within the Millenia Mas- ter Plan in Eastern Chula Vista which has major construction in multiple districts under way. Millenia will be a vibrant walk- able community anchored by food, retail, public parks, hospi- tality, business, and housing. The City of Chula Vista, recently designated a “Smart City” is also pursuing Millenia to be a test site to roll out autonomous vehicles. Millenia is planned for: • Up to 3,000 multi-family residences • 2 million square feet of Class A office space on 30 acres • 1.5 million square feet of retail, hospitality, civic and mixed-use projects • Six themed urban parks and a variety of tree-lined prome- nades, casual gathering places, bikeways, and plazas. • Population at build out will be approximately 7,500. • Millenia is also surrounded by 11 urban villages comprised of 27,000 new dwelling units Learn more at milleniasd.com Project Highlights Cont. 2017-10-17 Agenda Packet Page 155 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 11 AmazonHQMillenia.com Think Campus Looking West across Montage Park. Think. 500,000 GSF | 4 Levels | 3 Buildings | 1,650 Cars provided Campus 001 / Phase I Q3 2019 2017-10-17 Agenda Packet Page 156 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 12 AmazonHQMillenia.com Think Campus 001 Site Summary Lot: 7 Site Area: 7.06 AC Building Area: 500,000 GSF Approx. Area Summary BLDG 1: 150,000 SF - 4 LEVELS - 37,500 SF Per Floor BLDG 2: 164,000 SF - 4.5 LEVELS - 37,500 SF Per Floor BLDG 3: 186,000 SF - 4 LEVELS - 37,500 SF Per Floor Total Office Area: 500,000 GSF Accessory Space Amenity (Accessory space): 6,100 SF Parking Summary Parking Required (Based on office) 500,000 GSF (3.3/1000 GSF) = 1,650 spaces required Parking Provided (Below Grade) B1: 192,500 SF : 550 spaces B2: 192,500 SF : 550 spaces B3: 192,500 SF : 550 spaces Total Parking Provided = 1,650 spaces Think Campus looking Northwest over Montage Park Think Campus looking East over Millenia Ave. 2017-10-17 Agenda Packet Page 157 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 13 AmazonHQMillenia.com Invent Campus Looking South down Millenia Ave. Invent. 1,300,000 GSF | 9 Levels | 4,290 Cars provided Campus 002 / Phase II Q4 2019 2017-10-17 Agenda Packet Page 158 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 14 AmazonHQMillenia.com Invent Campus 002 Site Summary Lot: 1 Site Area: 10.93 AC Building Area: 1,300,000 GSF Approx. Area Summary 1st Floor: 153,000 SF 2nd Floor: 155,000 SF 3rd Floor: 208,000 SF 4th Floor: 208,000 SF 5th Floor: 144,000 SF 6th Floor: 144,000 SF 7th Floor: 133,000 SF 8th Floor: 115,000 SF 9th Floor: 40,000 SF Total Office Area: 1,300,000 GSF Accessory Space Amenity (Accessory space): 15,280 SF Garage Support Space: 25,000 SF Parking Summary Parking Required (Based on office) 1,300,000 GSF (3.3/1000 GSF) = 4,290 spaces required Parking Provided (Below Deck) B1: 417,000 SF : 1,191 spaces + 25,000 garage support B2: 442,000 SF : 1,263 spaces B3: 214,200 SF: 612 spaces B4: 214,200 SF: 612 spaces B5: 214,200 SF: 612 spaces Total Parking Provided = 4,290 spaces Invent Campus design concept view courtyard looking Southwest. Invent Campus design concept view from freeway looking Southeast. 2017-10-17 Agenda Packet Page 159 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 15 AmazonHQMillenia.com Discover Campus View from Northbound Freeway Discover. 1,200,000 GSF | 26 Levels | 3,960 Cars provided Campus 003 / Phase II Q4 2019 2017-10-17 Agenda Packet Page 160 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 16 AmazonHQMillenia.com Discover Campus Looking West Discover Campus Courtyard View Looking North Discover Campus 003 Site Summary Lot: 19 Site Area: 9.95 AC Building Area: 1,200,000 GSF Approx. Area Summary 1st Floor: 90,500 SF 2nd Floor: 96,650 SF 3rd Floor: 107,650 SF 4th Floor: 105,500 SF 5th Floor: 88,500 SF 6th Floor: 79,220 SF 7th Floor: 64,950 SF 8th Floor: 47,500 SF 9th Floor: 47,500 SF 10th - 11th Floor: 34,000 SF 12th - 13th Floor: 33,000 SF 14th - 15th Floor: 31,000 SF 16th - 17th Floor: 30,000 SF 18th - 19th Floor: 28,000 SF 20th - 21st Floor: 26,000 SF 22nd - 23rd Floor: 25,000 SF 24th - 25th Floor: 23,000 SF 26th Floor: 22,000 SF Total Office Area: 1,200,000 GSF Accessory Space Amenity (Accessory space): 12,760 SF Garage Support Space: 26,700 SF Parking Summary Parking Required (Based on office area) 1,200,000 SF (3.3/1000 GSF) = 3,960 spaces required Parking Provided (Below Deck) B1: 360,300 SF : 1,030 spaces + 26,700 garage support B2: 387,000 SF : 1,106 spaces B3 - B5: 212,800 SF : 608 spaces Total Parking Provided = 3,960 spaces Discover — Campus 003 / Phase 3 2017-10-17 Agenda Packet Page 161 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 17 AmazonHQMillenia.com Transform. 1,000,000 GSF | 11 Levels | 3,331 Cars provided Campus 004 / Phase III Transform Campus Looking East Across Millenia Ave Q1 2021 2017-10-17 Agenda Packet Page 162 Tranform Campus 004 Site Summary Lot: 16 Site Area: 8.54 AC Building Area: 1,000,000 GSF Approx. Area Summary 1st Floor: 90,500 SF 2nd Floor: 96,650 SF 3rd Floor: 107,650 SF 4th Floor: 105,500 SF 5th Floor: 88,500 SF 6th Floor: 79,220 SF 7th Floor: 64,950 SF 8th Floor: 47,500 SF 9th Floor: 47,500 SF 10th Floor: 34,000 SF 11th Floor: 34,000 SF Total Office Area: 1,000,000 GSF Accessory Space Amenity (Accessory space): 5,000 SF Parking Summary Parking Required (Based on office area) 1,000,000 SF (3.3/1000 GSF) = 3,300 spaces required Parking Provided (Structure- 9 Levels Above / 4 Levels Below) B5: 74,000 SF : 211 spaces B4: 84,000 SF : 240 spaces B3: 84,000 SF : 240 spaces B2: 84,000 SF : 240 spaces B1: 84,000 SF : 240 spaces P1 - P9: 84,000 SF Per Floor : 2,160 spaces Total Parking Provided = 3,331 spaces Transform Campus Looking Southwest Transform Campus Looking Northeast 2017-10-17 Agenda Packet Page 163 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 19 AmazonHQMillenia.com Amazon Hub View From Millenia Ave looking South Amazon Hub. Outdoor Amphiteater / Phase II Q4 2019 24,000 SF | 1 Level Bridge 2017-10-17 Agenda Packet Page 164 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 20 AmazonHQMillenia.com Amazon Hub View Of Bridge and Amphitheater Amazon Hub View From Millenia Ave Looking South The “Amazon Hub,” as we have come to call it, is truly the heart of our 4-campus project. This 24,000 SF elevated bridge serves as a connection between the campuses, a park, and an out- door amphitheater. We see the Hub becoming the lifeblood of this campus environment; a place where the unique culture of Amazon’s HQ2 will be formed. Amazon Hub 000 2017-10-17 Agenda Packet Page 165 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 21 AmazonHQMillenia.com Think Campus Lobby View Think Campus Bridge Connector Invent Campus Concept Design Courtyard View looking South Invent Campus Concept Design Outdoor Bridge Connector 2017-10-17 Agenda Packet Page 166 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 22 AmazonHQMillenia.com Think Campus Looking Northwest over Montage Park Invent Campus Concept Design View from freeway looking Southeast Think Campus Courtyard view looking East 2017-10-17 Agenda Packet Page 167 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 23 AmazonHQMillenia.com Conclusion We hope our vision captures some of the essence of Amazon’s culture and core values. We also know that we have just scratched the surface of an actual Amazon process to bring to life the world-class campus, HQ2. We hope that what we have presented here earns us the opportunity to begin an exciting conversation with your leadership as you pursue the reality of Amazon HQ2. Lee Chesnut Principal, Chesnut Properties 2017-10-17 Agenda Packet Page 168 AmazonHQ2 at Millenia Office Presented by Chesnut Properties, LLC in response to Amazon’s RFP dated September 7, 2017 24 AmazonHQMillenia.com Connect AmazonHQMillenia.com Lee Chesnut Principal, Chesnut Properties 619 851 4109 lee@chesnutproperties.com Susan Guerra COO, Chesnut Properties 619 312 5858 susan@chesnutproperties.com Tony Russel Managing Director, JLL 858 410 1213 tony.russel.@am.jll.com Please take a look at the website we created for this proposal and to access this presentation digitally. 2017-10-17 Agenda Packet Page 169 AmazonHQMillenia.com 2017-10-17 Agenda Packet Page 170 City of Chula Vista Staff Report File#:17-0472, Item#: 9. RATIFICATION OF APPOINTMENT OF MARK VALEN TO THE SOUTH BAY WILDLIFE ADVISORY GROUP The current vacancy is for a Sustainability Commission Representative. The representative shall be nominated by the Sustainability Commission with the appointment ratified by the City Council per Resolution 2016-231 (Attachment 1). On October 9, 2017, the Sustainability Commission nominated Mark Valen to represent the Chula Vista Sustainability Commission on the South Bay Wildlife Advisory Group (Attachment 2). ATTACHMENTS Attachment 1: Resolution 2016-231 Attachment 2: Sustainability Commission Memo Staff Contact: Leah Larrarte City of Chula Vista Printed on 10/12/2017Page 1 of 1 powered by Legistar™2017-10-17 Agenda Packet Page 171 2017-10-17 Agenda Packet Page 172 2017-10-17 Agenda Packet Page 173 2017-10-17 Agenda Packet Page 174 2017-10-17 Agenda Packet Page 175