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Agenda Packet 2018_11_27
November 27, 2018City Council Agenda 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. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS (CHAPTER 3 - DEVELOPMENT CODE) FOR THE UNIVERSITY INNOVATION DISTRICT (SECOND READING AND ADOPTION) 18-05371.18-0537 Development Services Department Department: The proposed Project may have a significant effect on the environment. Therefore, an Environmental Impact Report (EIR-14-001) has been prepared. Environmental Notice: Council adopt the ordinance. Recommended Action: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 5.19 REGARDING COMMERCIAL CANNABIS (SECOND READING AND ADOPTION) 18-05362.18-0536 City Attorney & City Manager Department: This project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b) (3); Section 15183 (Projects Consistent with a Community Plan or Zoning); Section 15301 (Existing Facilities); and Section 15303 (New Construction or Conversion of Small Structures). Environmental Notice: Council adopt the ordinance. Recommended Action: ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHAPTER 5.66 OF THE CHULA VISTA MUNICIPAL CODE, WHICH IMPOSED A TOTAL BAN ON COMMERCIAL MARIJUANA ACTIVITY, CONDITIONED UPON EFFECTIVENESS OF CITY'S ORDINANCE BANNING UNLICENSED COMMERCIAL CANNABIS ACTIVITY AS PROVIDED IN CHAPTER 5.19 OF THE CHULA VISTA MUNICIPAL CODE (FIRST READING) 18-05383.18-0538 City Attorney & City Manager Department: Page 2 City of Chula Vista Printed on 11/20/2018 2018-11-27 Agenda Packet Page 2 November 27, 2018City Council Agenda 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 place the ordinance on first reading. Recommended Action: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF ELECTRIC VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 120716-NAF THROUGH THE CLIMATE MAYORS ELECTRIC VEHICLE PURCHASING PROGRAM IN AN AMOUNT NOT-TO-EXCEED TWO MILLION DOLLARS ($2,000,000) THROUGH THE TERM OF THE CONTRACT (JANUARY 2021) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF HEAVY-DUTY AND SPECIALIZED VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 081716-NAF IN AN AMOUNT NOT-TO-EXCEED FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS ($4,500,000) THROUGH THE TERM OF THE CONTRACT (NOVEMBER 2020) C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A 2-YEAR LEASE PURCHASE AGREEMENT WITH NATIONAL COOPERATIVE LEASING IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 032615-NCL FOR THE ACQUISITION OF THIRTY-FOUR (34) ELECTRIC VEHICLES AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT (This item was continued from 10/23/2018.) 18-04364.18-0436 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 resolutions. Recommended Action: Page 3 City of Chula Vista Printed on 11/20/2018 2018-11-27 Agenda Packet Page 3 November 27, 2018City Council Agenda RESOLUTION OF THE CHULA VISTA HOUSING A UTHORITY APPROVING THE ISSUANCE OF TAX-EXEMPT REVENUE BONDS BY CMFA IN A PRINCIPAL AMOUNT OF UP TO $50,000,000 TO BE USED TO FINANCE THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF A 271-UNIT MULTIFAMILY RENTAL HOUSING DEVELOPMENT, LOCATED AT 1325 SANTA RITA EAST AND 1392 EAST PALOMAR STREET, CHULA VISTA, CALIFORNIA 18-05145.18-0514 Development Services Department Department: 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. Environmental Notice: Authority adopt the resolution. Recommended Action: INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2018 18-05296.18-0529 Finance 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 receive the report. Recommended Action: 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 11/20/2018 2018-11-27 Agenda Packet Page 4 November 27, 2018City Council Agenda PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. If you wish to speak on any item, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE, SECTION 19.58.022 (ACCESSORY DWELLING UNITS); CHAPTER 19.26 (ONE- AND TWO-FAMILY RESIDENCE ZONE); AND CHAPTER 19.28 (APARTMENT RESIDENTIAL ZONE); WITH REGARD TO ACCESSORY DWELLING UNITS (FIRST READING) 18-04647.18-0464 Development Services Department Department: The Project is a legislative activity that qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b)(3). Environmental Notice: Council conduct the public hearing and place the ordinance on first reading. Recommended Action: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN UPDATE WHICH WILL BRING THE DOCUMENT UP-TO-DATE WITH CURRENT OTAY RANCH PRESERVE MANAGEMENT STRUCTURE AND ANNUAL OPERATING BUDGET, OWNERSHIP, AND BIOLOGICAL MONITORING AND MANAGEMENT REQUIREMENTS 18-05168.18-0516 Development Services Department Department: The project was adequately covered in the previously certified Final Program Environmental Impact Report (SCH) No. 89010154 for Otay Ranch, dated December 1992, and the Findings of Fact for Otay Ranch GDP/SRP, dated October 28, 1993. Therefore, no further environmental review or documentation is required. Environmental Notice: Council conduct the public hearing and adopt the resolution. Recommended Action: Page 5 City of Chula Vista Printed on 11/20/2018 2018-11-27 Agenda Packet Page 5 November 27, 2018City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED IN THE RESOLUTION 18-05359.18-0535 Development Services Department Department: The Development Services Director has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a categorical exemption pursuant to Section 15332 of the State CEQA Guidelines. Thus, no further environmental review is required. Environmental Notice: Council conduct the public hearing and adopt the resolution. Recommended Action: CITY MANAGER’S REPORTS REPORT ON THE REALIGNMENT OF THE UNITED TECHNOLOGY AEROSPACE SYSTEMS BUSINESS UNIT IN CHULA VISTA 18-054910.18-0549 MAYOR’S REPORTS COUNCILMEMBERS’ COMMENTS CITY ATTORNEY'S REPORTS Page 6 City of Chula Vista Printed on 11/20/2018 2018-11-27 Agenda Packet Page 6 November 27, 2018City Council Agenda CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council meeting at the City Attorney’s office in accordance with the Ralph M. Brown Act (Government Code 54957.7). CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6 Agency designated representatives: Gary Halbert, Glen Googins, Kelley Bacon, David Bilby, Courtney Chase, Ed Prendell and Simon Silva Employee organization(s): Mid-Managers/Professional Association/Service Employees International Union, Local 221 (MM/PROF/SEIU) 18-054811.18-0548 ADJOURNMENT to the special City Council meeting on November 28, 2018, at 3:00 p.m., in the Executive Conference Room; and thence to the regular City Council meeting on December 11, 2018, at 5:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(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 7 City of Chula Vista Printed on 11/20/2018 2018-11-27 Agenda Packet Page 7 November 27, 2018City Council Agenda NOTICE OF REVIEW AND PENDING APPROVAL OF FINAL MAP In accordance with California Government Code Section 66458(d), notice is hereby given that the City Engineer has reviewed and, immediately following this City Council meeting of November 27, 2018, will approve the following final map: Chula Vista Tract 12-05, Otay Ranch Village 2 South, Portion of Neighborhood R-21B, Work Order: EY-0793 Specifically, the City Engineer has caused the map to be examined and has made the following findings: (1) The map substantially conforms to the approved tentative map, and any approved alterations thereof and any conditions of approval imposed with said tentative map. (2) The map complies with the provisions of the Subdivision Map Act and any local ordinances applicable at the time of approval of the tentative map. (3) The map is technically correct. Said map will be finalized and recorded, unless an interested party files a valid appeal of the City Engineer ’s action to City Council no later than 2:00 p.m., 10 calendar days from the date of this City Council meeting. A valid appeal must identify the improper/incorrect finding and the basis for such conclusion. If you have any questions about the map approval findings or need additional information about the map or your appeal rights, please feel free to contact Boushra Salem, Principal Civil Engineer at (619) 409-5483, or at bsalem@chulavistaca.gov. Page 8 City of Chula Vista Printed on 11/20/2018 2018-11-27 Agenda Packet Page 8 P a g e | 1 November 27, 2018 File ID: 18-0488 18-0537 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT (FEIR-14-001/SCH 2014121097); MAKING CERTAIN FINDINGS OF FACT; ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS; AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM FOR AMENDMENTS TO THE OTAY RANCH GENERAL DEVELOPMENT PLAN AND ADOPTION OF THE UNIVERSITY INNOVATION DISTRICT SECTIONAL PLANNING AREA PLAN INCLUDING PLANNED COMMUNITY DISTRICT REGULATIONS (CHAPTER 3 – DEVELOPMENT CODE) PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO THE OTAY RANCH GENERAL DEVELOPMENT PLAN TO REFLECT LAND USE AND POLICY CHANGES FOR APPROXIMATELY 353 ACRES WITHIN THE OTAY RANCH PLANNED COMMUNITY, INCLUDING ASSOCIATED TEXT, MAPS AND TABLES C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A NEW UNIVERSITY INNOVATION DISTRICT SECTIONAL PLANNING AREA (SPA) PLAN, AND ASSOCIATED REGULATORY DOCUMENTS D. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS (CHAPTER 3 – DEVELOPMENT CODE) FOR THE UNIVERSITY INNOVATION DISTRICT RECOMMENDED ACTION That the Council adopt: 1. A Resolution certifying EIR-14-001; and 2. A Resolution approving the Otay Ranch General Development Plan Amendments; and 3. A Resolution approving the University Innovation District Sectional Planning Area (SPA) Plan; and 4. An Ordinance approving the Planned Community District Regulations/Design Plan (Chapter 3 – Development Code) for the University Innovation District. 2018-11-27 Agenda Packet Page 9 P a g e | 2 SUMMARY The City of Chula Vista is proposing entitlement of the University Innovation (UI) District Sectional Planning Area (SPA) Plan on approximately 383 acres within the Otay Ranch and Eastlake III communities. The UI District SPA Plan defines: the vision; land use character and mix; design criteria; pedestrian, bike and vehicular circulation systems; and the infrastructure requirements for an approximately 10 million square-foot University and Innovation District that will ultimately serve 20,000 students. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that there is substantial evidence, in light of the whole record, that the project may have a significant effect on the environment; therefore, the Director of Development Services has caused the preparation of an Environmental Impact Report, EIR-14- 001. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On September 26, 2018, the City of Chula Vista Planning Commission voted 5-0-0 to recommend adoption of Resolutions A, B and C, and the Ordinance (Attachments 1-4). DISCUSSION Location, Existing Site Characteristics and Ownership The UI District is split between two sites; the Main Campus property and the Lake Property (see Attachment 1 – Locator Map). The Main Campus Property is located southeast and west of the intersection of Hunte Parkway and Eastlake Parkway and north of the Otay River Valley (Assessor’s Parcel Nos 643- 070-16, 644-080-09, 15, 16, 18 & 23 and a portion of 644-070-10). The Main Campus site includes High Tech K-12 schools and is immediately west of the San Diego Gas and Electric sub-station. Village 11 (Winding Walk) is to the north of the site and the future Village 9 will be located to the west of the site. Future Village 10 will be located to the south, as is the Otay River Valley. The site is within the Otay Valley Parcel of the Otay Ranch General Development Plan (GDP), is vacant (except for High Tech K-12 which leases 10 acres from the City) and has been used for agricultural purposes in the past. The Lake Property is located just south of the Chula Vista Elite Athlete Training Center, east of Salt Creek and the Otay Ranch Preserve, and west of the Lower Otay Lakes Reservoir (Assessor’s Parcel No. 643-040- 06). The Lake Property is accessible via Wueste Road and is within the Eastlake III GDP. The Lake Property is also vacant. Both of the UI District sites are owned by the City of Chula Vista. Project Description The UI District is proposed to be developed with up to approximately 10 million square feet in a mixed-use development format that includes academic/university, industrial, commercial, retail, residential, and recreational uses. The proposed project would include up to approximately 4.4 million square feet of academic space (including classrooms, laboratories, administrative offices, library, physical plant, 2018-11-27 Agenda Packet Page 10 P a g e | 3 recreation, etc.), 1.6 million square feet of on-site living (e.g. student residence halls), 2 million square feet of business innovation uses and 2 million square feet of market rate residential units (approximately 2,000 units). The UI District would support a total of 34,000 people including a mix of students, faculty, staff, residents, and office/retail workers. The university land uses are assumed to include up to 20,000 full-time students and 6,000 university faculty and staff. Innovation uses would include a mix of office, laboratory, and retail uses to support up to 8,000 jobs. Residents on the site are anticipated to include up to 5,400 students and 2,000 employees. At buildout, the project would offer a unique community that reflects a growing demand for dynamic, urban education centers. The plan takes many qualities of a traditional campus (e.g., open landscaped spaces and coherent architectural edges) and integrates them with several qualities of a contemporary town center (e.g., access to transit, pedestrian-friendly streets and multi-use buildings with retail at street level). Environmental Impact Report Section 21002 of the California Environmental Quality Act (CEQA) requires that an environmental impact report identify the significant effects of a project on the environment and provide measures or alternatives that can mitigate or avoid those significant effects. The EIR contains an environmental analysis of the potential impacts associated with implementing the Chula Vista University and Innovation District project. The subject EIR has been prepared as a project EIR, as defined in pursuant to Section 15161 of the CEQA Guidelines. As defined in CEQA, a project EIR examines the impacts of a specific development project. This type of EIR should focus primarily on the changes in the environment that would result from the development project. The major issues that are addressed in the project EIR were determined based on review by the City of Chula Vista Development Services Department, and public comments received on the Notice of Preparation (distributed in December of 2014). The Draft EIR was distributed for a 45-day public review period on February 22, 2018. A total of 7 comment letters were received, all of which were routine letters submitted by public agencies/organizations. No letters of opposition to the project or the EIR were received during the public EIR comment period. The Final EIR includes all comments submitted to the City, and responses to them. The Draft and Final EIRs identify that the proposed project would result in both significant unmitigated impacts and impacts that will be mitigated to a level of less than significant. Significant unmitigated impacts were identified relating to Aesthetics (Impacts 5.2-1 and 5.2-2; direct and cumulative alteration of scenic views, visual character, and cumulative loss of views of open space), Air Quality (Impact 5.4-2 and 5.4-3; direct violation of air quality standards for criteria pollutants related to operational and long-term emissions), Agriculture (Impact 5.12-1a; direct and cumulative loss of agricultural resource), and Utilities (Impact 5.15.2-2; cumulative impacts on wastewater). Significant impacts that can be mitigated to a level of less than significant have been identified associated with the environmental issues of Land Use (land use compatibility; conflicts with land use plans, policies, 2018-11-27 Agenda Packet Page 11 P a g e | 4 and regulations; and conflicts with conservation plans), Aesthetics (visual character or quality; lighting, glare, shadow, and wind; and landform modification); Transportation (traffic and level of service standards; congestion management; and air traffic patterns), Air Quality (sensitive receptors), Noise (excessive noise levels; excessive ground-borne vibration; and temporary increase in ambient noise levels), Biological Resources (sensitive plant and wildlife species; riparian habitat and other sensitive natural communities; federally protected wetlands; and consistency with local policies, ordinances, HCPs, and NCCPs), Cultural Resources (direct impacts to archaeological resources; human remains; and paleontological resources), Geology and Soils (exposure to seismic related hazards; soil erosion or topsoil loss; soil stability; and expansive soils), Public Services (fire and emergency medical services; police services; and parks, recreation, open space, and trails), Hydrology and Water Quality (water quality standards; erosion or siltation; degradation of water quality; and inundation), Hazards and Hazardous Materials (routine use and accidental release of hazardous materials; hazards to schools; existing hazardous materials sites; and airport hazards), and Public Utilities (Impact 5.15.2-1; cumulative impacts related to wastewater). All of these impacts have been fully mitigated below a level of significance. All feasible mitigation measures with respect to project impacts have been included in the Final EIR. Findings of Fact have been prepared for the City Council’s approval in certifying the EIR. For those impacts with associated mitigation, a Mitigation Monitoring and Reporting Program (MMRP) has been provided with the FEIR. Section 15126.6 of the CEQA Guidelines requires the discussion of “a range of reasonable alternatives to the project, or to the location of the project, which would feasibly attain most of the basic objectives of the project but would avoid or substantially lessen any of the significant effects of the project” and the evaluation of the comparative merits of the alternatives. The alternatives discussion is intended to “focus on alternatives to the project or its location that are capable of avoiding or substantially lessening any significant effects of the project,” even if these alternatives would impede to some degree the attainment of the project objectives. The EIR addresses the No Project (No Build) Alternative and the Reduced Project Alternative. Based on this examination, the City has determined that neither of the alternatives meets the objectives of the project. Otay Ranch General Development Plan Amendment The UI District SPA Plan is in conformance with the City of Chula Vista’s General Plan, which designates that site as Public & Quasi-Public and Regional Technology Park, but requires minor amendments to the Otay Ranch General Development Plan (GDP). The SPA Plan refines and implements the Otay Ranch Village concept, goals and objectives and policies of the Otay Ranch General Development Plan (GDP), subject to the following amendments. Village 9/University Boundary and Land Use Tables In 2014, the City Council approved the Village 9 SPA Plan. As part of that approval, approximately 50 acres of Village 9 were designated as University/Regional Technology Park (U) on the Site Utilization Plan. With Village 9 approved, the approval of the Village 10 SPA Plan required land trades between the three 2018-11-27 Agenda Packet Page 12 P a g e | 5 property owners that reduced the original 50 acres of University/Regional Technology Park land, within Village 9, to 41.3 acres (see Attachment 2 – Otay Ranch GDP Amendments). This also resulted in a reconfigured University site that was oriented in an east/west direction. The remaining 8.7 acres were made up elsewhere on the site to keep the City’s total land area the same. The UI District SPA Plan proposes to unify both of these properties into one University/Regional Technology Park site of approximately 353 acres, known as the Main Campus (see Attachment 2 – Otay Ranch GDP Amendments). These mapping amendments also necessitate amendments to the associated Otay Ranch GDP Land Use Tables (see Attachment 2 – Otay Ranch GDP Amendments). Lastly, these proposed amendments also require some minor text amendments to various sections as shown in strikeout/underline in Attachment 2 to provide consistency throughout the Otay Ranch GDP document. SPA Plan The UI District SPA Plan refines the City’s vision and proposes standards to implement that vision that are consistent with the Otay Ranch GDP as well as the City of Chula Vista General Plan. The vision centers on the concept of “Campus 2.0”, a concept that will foster an academic-institutional mixed-use district rather than a traditional stand-alone campus precinct. Design concepts such as: mixed use urban streets; potential multi-institutional zones; key public parks and squares; a network of trails and open spaces; enhanced pedestrian and bike mobility; direct access to the Bus Rapid Transit; integration with adjacent villages; and non-traditional residential units that will serve to set the UI District apart from other development, and campuses, in the region. Development Code Chapter 3 of the SPA Plan, the Development Code, defines the development parameters for the UI District, including the development framework, land use and development intensity, key character nodes, mobility, design criteria, and phasing appropriate for a long-term build-out of a university and innovation center that attracts leaders in higher learning and industry. The SPA Plan proposes to co-locate academia and industry, and allows for shared services and facilities. It has been developed to stimulate academic and business investment in the area to bring intellectual capital and research activities to the City. The UI District development concept promotes coordinated development with adjacent development in Villages 9 and 10, efficient public transit and viable walkability with a strong emphasis on the urban built form to foster a vibrant mixed-use innovation hub. The UI District SPA Plan is divided into seven development Transects (Transects T-1 through T-6 and SD) and three Open Space Areas (Open Space Areas OS-1 through OS-3) as identified in the Site Utilization Development Summary (Attachment 3 and Page 3-4 of the SPA Plan). These Transects/Areas are then arranged subject to the Site Utilization Plan (Attachment 4 and page 3-5 of the SPA Plan). The UI District is strategically designed to focus urban development within the T-6 through T-2 Transects, allowing for development flexibility at low intensities in the T-1 Transects and SD Lake Blocks. Development square footage, land use percentage and specific building locations may be altered or transferred between Transects pursuant to the Administration & Implementation section of the SPA Plan. 2018-11-27 Agenda Packet Page 13 P a g e | 6 Section 3.4 of the UI district SPA Plan contains the Regulating Plan (Pages 3-6 through 3-33) that establishes the development regulations applied to each parcel. The Regulating Plan is a synthesis of development opportunities that respond to the topography and constraints of the site, it promotes an active and urban setting for long-range development and is designed for flexibility to adapt to evolving development needs of the market and the City. An example of the development standards for the T-6: District Gateway Transect is attached as Attachment 5. There are separate development standards for each of the Transects/Areas. Permitted uses are identified in Section 3.6 of the SPA Plan (Pages 3-39 through 3-47). Five land use types have been identified: Academic; On-Site Living; Business Innovation; Market Rate Residential; and Other Uses. The maximum square footage for each of these land uses are limited and are identified in Table 3M - Land Use Ratios on Page 3-42 of the SPA Plan. Each of these Use Types is then categorized as being either: Affiliated Mixed Use Development (meaning that they are affiliated with the University and part of a mixed use development); Affiliated Stand-Alone Development or Non-Affiliated Uses. The list of permitted uses can be found in Table 3N – Permitted Uses, starting on Page 3-45 of the SPA Plan. The Permitted Use Table is attached as Attachment 6. The UI District SPA Plan also includes a unique “Flex District” as described in Section 3.4.9. The Flex District would allow a permeable edge between the UI District and Villages 9 and 10. Engagement with the street, design techniques, built form and land use from the identified blocks of Villages 9, 10 and the UI District would be allowed to occur on either side of Orion Avenue and Campus Boulevard South. Circulation Plan Chapter 4 of the SPA Plan lays out the City’s vision of a walkable urban campus. The Circulation Plan provides for a system of “complete streets” that are designed, operated and maintained to enable safe, convenient and comfortable travel and access for users of all ages and abilities regardless of their mode of transportation. Transportation modes include, but are not limited to, bicycling, walking, low speed electric vehicles, vanpooling, carpooling and riding public transit. The plan intends to limit single passenger private automobiles to reduce traffic congestion and air pollution, while providing for improved safety, a variety of transportation choices, a healthier lifestyle of walking and bicycling, and the creation of enjoyable places that people want to go to. This system also includes the extension of existing and planned roads, trails and transit from adjacent villages as well as internal systems to serve the UI District. The Pedestrian Circulation Plan envisions an interconnected series of trails, pathways, bicycle connections and walks that provide access to regional trails, the Village Pathway, Otay Valley Regional Park and the Chula Vista Greenbelt Trail (Attachment 7 – Pedestrian & Bicycle Circulation Plan and Page 4-13 of the SPA Plan). In addition, five Pedestrian Walks are planned for: Hunte Walk along Hunte Parkway; Transit Walk on the two blocks to the north and south of the Transit Stop; Center Walk, a north/south walkway along the western portion of the campus; Campus Walk, an east/west walkway through the center of the campus; and Vista Walk on the eastern end of the campus (Attachment 8 – Pedestrian Walk Standards and Pages 3- 24 and 3-25 of the SPA Plan). 2018-11-27 Agenda Packet Page 14 P a g e | 7 A Bus Rapid Transit route is planned along Orion Avenue (along the western edge of the UI District and Village 9), part of the larger system that will eventually run between the Otay Mesa Port of Entry and Downtown San Diego (see Attachment 9 – Planned Transit and Page 4-7 of the SPA Plan). An on-site shuttle is also planned to move students from the Transit Stop throughout the campus. The Circulation Plan also details the thoroughfare standards of each road and its components within the UI District. Specific details for each of the thoroughfares are discussed on Pages 4-20 through 4-32 of the SPA Plan. An example of the thoroughfare details for Eastlake Parkway is included as Attachment 10. The figures typically include the Classification of the roadway, general dimensions, modes, and landscaping for each of the segments. The street sections are conceptual and final design will occur at tentative mapping. The SPA Plan anticipates that in the District’s early years – or perhaps even for decades – the District’s parking needs will likely be accommodated with surface parking lots due to economic considerations and the availability of land. However, in later years, when open land available for building development has been exhausted, serious investment in structured parking and Transportation Demand Management programs to reduce parking demand, will become necessary. While creating a specific parking plan at this stage would be premature, given the uncertainty of the campus’ first tenants and their needs, the SPA Plan does identify several locations along Hunte Parkway that might initially be developed with surface parking (see Attachment 11 – Access Parking Plan and Page 4-19 of the SPA Plan). The UI District SPA Plan also includes an expanded and in-depth study of parking and Transportation Demand Management principles from similar universities on Pages 4-33 through 4-67. By establishing 12 core principles, the approach will accommodate the practical short-term needs of a broad range of potential private-sector, non-profit and/or governmental institutions, while still advancing the City’s commitment to its larger economic development and environmental responsibility goals. The key principles are: • Pursue a “Park Once” Strategy, whereby drivers can park their car once and complete multiple tasks on foot, uses with differing peak times can share parking and sharing parking to spread peak loads; and • Prepare a “3-Stage” Parking Model to Forecast Demand that will use a customized shared parking model that will be updated and calibrated regularly; and • Establish a Department to Provide Parking and Transportation Services; and • Invest in Transportation Demand Management; and • Have the Parking & Transportation Department Serve as the Transportation Management Association, responsible for the management and promotion of alternative transportation programs; and • Provide Deep Discount Group Transit Passes; and • Establish a Car-Sharing Program; and • Price Curb Parking to Be Well-Used, But Readily Available; and • Establish Residential Parking Benefit Districts, When Needed; and • Do Not Apply Minimum Parking Requirements Within the District; and 2018-11-27 Agenda Packet Page 15 P a g e | 8 • “Unbundle” Parking Costs from the Cost of Other Goods and Services; and • Require Parking Cash Out that subsidizes employee parking to offer incentives for commuters to carpool take transit and bike or walk to work. Public Facilities Finance Plan (PFFP) The PFFP (Appendix A to the SPA Plan), prepared for the city by Michael Baker International, addresses all of the public facility needs associated with the UI District SPA Plan. The PFFP has been prepared under the requirements of the City of Chula Vista’s Growth Management Program (GMP), Growth Management Ordinance (GMO) (CVMC 19.09) and Chapter 9 – Growth Management of the Otay Ranch GDP. The preparation of the PFFP is required in conjunction with the preparation of the SPA Plan to ensure that the development is consistent with the goals and policies of the City’s General Plan, GMP, GMO and the Otay Ranch GDP. The PFFP analyzes the demand for facilities based upon the project’s land use and transportation phasing plan. When specific thresholds are projected to be reached or exceeded, the PFFP provides recommended mitigation necessary for continued compliance with the City of Chula Vista’s GMP, GMO and associated Quality-of-Life Threshold Standards. The PFFP does not propose a different development phasing from that proposed by the SPA Plan, but may indicate that the development should be limited or reduced until certain actions are taken to guarantee public facilities will be available or provided to meet the Quality of Life Threshold Standards. The PFFP provides an analysis of threshold requirements and a set of recommendations for public facility needs associated with traffic, police, fire and emergency services, schools, libraries, parks, water, sewer, drainage, air quality, civic center, corporation yard, and other city administrative facilities. While the PFFP typically includes a Fiscal Impact Analysis based upon the phasing program, the PFFP prepared for the UI District SPA Plan does not. The Director of Development Services analyzed the myriad of potential development scenarios and determined that development of a Fiscal Impact Analysis at this time was premature. Other SPA Supporting Appendices The UI District SPA Plan also includes other appendix documents, including the Air Quality Improvement Plan (Appendix B to the SPA Plan), the Non-Renewable Energy Conservation Plan (Appendix C to the SPA Plan), the Preserve Edge Plan (Appendix D to the SPA Plan), the Agriculture Plan (Appendix E to the SPA Plan), the Fire Protection Plan (Appendix F to the SPA Plan) and the Water Conservation Plan (Appendix G to the SPA Plan). 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 2018-11-27 Agenda Packet Page 16 P a g e | 9 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. Adoption of the University Innovation District SPA Plan will support the Economic Vitality goal, particularly City Initiative 2.1.4 (Plan and implement the University/Regional Technology Park complex). The UID SPA Plan supports the establishment of a University campus (or campuses) and related commercial and industrial services that will help to ensure an economically strong and vibrant community. CURRENT-YEAR FISCAL IMPACT The processing for the SPA Plan, EIR and all supporting documents was partially funded by a grant from the Department of Energy, and the remainder of the funding was budgeted as part of the General Fund. ONGOING FISCAL IMPACT As noted earlier in the report, due to the myriad of potential development scenarios, the Director of Development Services determined that a reliable Fiscal Impact Analysis could not be prepared and therefore was not required. However, as specific land use proposals are brought forward to the Council in the future, fiscal impacts will be analyzed and disclosed. ATTACHMENTS 1. Locator Map 2. Otay Ranch GDP Amendments 3. Site Utilization Development Summary 4. Site Utilization Plan 5. T-6: District Gateway Development Standards 6. Permitted Use Table 7. Pedestrian & Bicycle Circulation Plan 8. Pedestrian Walk Standards 9. Planned Transit 10. Eastlake Parkway Section B-B 11. Access and Parking Plan Enclosures: 1. University Innovation District EIR (on USB flash drive) 2. University Innovation District SPA Plan (on USB flash drive) Staff Contact: Scott Donaghe, Principal Planner, Development Services 2018-11-27 Agenda Packet Page 17 SECOND READING AND ADOPTION ORDINANCE No._______ ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS (CHAPTER 3 – DEVELOPMENT CODE) FOR THE UNIVERSITY INNOVATION DISTRICT WHEREAS, the property which is the subject matter of this Ordinance is identified as Exhibit "1" attached hereto and incorporated herein by this reference and commonly known as the University Innovation District, which consists of approximately 383 acres on two distinct sites. The Main Campus site is located south of the intersection of Eastlake Parkway and Hunte Parkway, north of the Otay River Valley. The Lake Parcel is located south of the Chula Vista Elite Athlete Training Center, west of Lower Otay Lake and east of Salt Creek (the “Property”); and WHEREAS, the City (the “Applicant” and “Owner”) began processing a new Sectional Planning Area (SPA) Plan, including Planned Community District Regulations (PCM-14-05) for the University Innovation District (the “Project”) in 2014; and WHEREAS, the Project is intended to ensure that the University Innovation District SPA Plan is prepared in accordance with the Otay Ranch General Development Plan (GDP) to implement the City of Chula Vista General Plan for Eastern Chula Vista to promote the orderly planning and long term phased development of the Otay Ranch GDP and to establish conditions which will enable the University Innovation District to exist in harmony within the community; and WHEREAS, the development of the Property has also been the subject matter of a concurrently processed Otay Ranch General Development Plan Amendment (GDPA) (PCM-14- 05), approved by the City Council; and WHEREAS, the Project is established pursuant to Title 19 of the Chula Vista Municipal Code, specifically Chapter 19.48 Planned Community (PC) Zone, which is applicable to the University Innovation District SPA Plan; and WHEREAS, the Project establishes a Planned Community District Regulation Code (Chapter 3 – Development Code) applicable to the District Gateway, Urban Core, Town Center, Campus Commons, Campus Vista and Future Development Transects, as well as the Lakes Blocks, Pedestrian Walk, Common Open Space and Open Space located in the University Innovation District SPA Plan; and WHEREAS, the City’s Director of Development Services has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and determined that there is substantial evidence, in light of the whole record before the City of Chula Vista, that the Project may have a significant effect on the environment; therefore, the Development Services Director has caused the preparation of an Environmental Impact Report, EIR 14-001; and 2018-11-27 Agenda Packet Page 18 SECOND READING AND ADOPTION WHEREAS, the development of the Property relied on the University Innovation District SPA Plan Project Environmental Impact Report No. 14-001, SCH 2014121097 (EIR 14-001); and the Findings of Fact and Mitigation Monitoring and Reporting Program, certified by the City Council; and WHEREAS, the Planning Commission set the time and place for a hearing on said Project and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailings to property owners within 500 feet of the exterior boundaries of the Project site at least ten days prior to the hearing; and WHEREAS; the hearing was held at the time and place as advertised in the City Council Chambers located at 276 Fourth Avenue, and said hearing was thereafter closed; and WHEREAS; a duly noticed public hearing was scheduled before the City Council of the City of Chula Vista to approve the Project; and WHEREAS, the proceedings and any documents submitted to the Planning Commission and City Council as the decision makers shall comprise the entire record of the proceedings. NOW, THEREFORE, THE CITY COUNCIL of the City of Chula Vista does hereby find and ordain as follows: I. PLANNING COMMISSION RECORD That the proceedings and all evidence introduced before the Planning Commission at their public hearing and the Minutes and Resolutions resulting therefrom are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision-makers, shall comprise the entire record of the proceedings. II. ACTION That the City Council hereby adopts an Ordinance approving the University Innovation District SPA Planned Community District Regulations (Chapter 3 – Development Code), finding that they are consistent with the City of Chula Vista General Plan, the Otay Ranch General Development Plan and all other applicable plans; as set forth in Resolution PCM- adopting the University Innovation District SPA Plan, and that the public necessity; convenience, general welfare and good planning and zoning practice support their approval and implementation. III. SEVERABILITY If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be, invalid, unenforceable or unconstitutional; by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability 2018-11-27 Agenda Packet Page 19 SECOND READING AND ADOPTION or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. IV. CONSTRUCTION The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. V. EFFECTIVE DATE This Ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. VI. PUBLICATION The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by:Approved as to form by: ________________________________________________ Kelly Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2018-11-27 Agenda Packet Page 20 SECOND READING AND ADOPTION EXHIBIT “1” – LOCATION MAP 2018-11-27 Agenda Packet Page 21 P a g e | 1 November 27, 2018 File ID: 18-0513 18-18-0536 TITLE ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 5.19 REGARDING COMMERCIAL CANNABIS (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY This proposed ordinance amends provisions of Chapter 5.19 to clarify existing language, provide additional information and guidance, and ensure that elements of City’s regulatory requirements are consistent with state law cannabis regulations. ENVIRONMENTAL REVIEW Environmental Notice This project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b)(3); Section 15183 (Projects Consistent with a Community Plan or Zoning); Section 15301 (Existing Facilities); and Section 15303 (New Construction or Conversion of Small Structures). Environmental Determination The City Council finds that the adoption of this amending Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: 1. The amending Ordinance is exempt under Section 15061(b)(3). 2. The amending Ordinance is exempt under Section 15183. 3. The amending Ordinance is exempt under Section 15301. 4. The amending Ordinance is exempt under Section 15303. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not Applicable. 2018-11-27 Agenda Packet Page 22 P a g e | 2 DISCUSSION In March 2018, City Council voted to approve Ordinance 3418, which created a licensing and regulatory structure for the operation of cannabis businesses in the City of Chula Vista; such structure is codified in Chula Vista Municipal Code chapter 5.19. Based on both internal reviews and public feedback, staff now recommends that sections of chapter 5.19 be amended to clean up and clarify existing language, provide additional information, and maintain consistency with variousstate regulations. Proposed amendments include the followingclarifications and additions: Language explainingwhen the term “Owner” in the Phase One application process refers to an Owner of the Commercial Cannabis Business as opposed to an Owner of the Premises More specific information as to the minimum components that should be included in each operating plan submitted during the Phase One application Enumeration of thespecific factors that may result in revocation, denial, or refusal to renew an employee work permit rather thanreferring to a another location in the ordinance where such factors are listed Explicit language prohibiting temporary cannabis events Clear notice that violations by license holder employees or agents may result in revocation or non- renewal of a City license A direct statement that fees, costs, and charges imposed are deemed a debt to the City and are recoverable by all legally available means Clarification that security surveillance must monitor both exterior and interior spaces where diversion could reasonably occur Various drafting error corrections intended to eliminate confusion The proposed amendments also include the following changes: A provision to allow those with pharmaceutical business experience to instead qualify under the management qualifications provision, as few, if any, pharmaceutical businesses have owners with a 30% interest Language tyingthe value of goods a cannabis delivery employee is permitted to carry to the amount authorized under state law A requirement that security footage be maintained for a minimum of 90 days, which tracks state law requirements Staff requests that the recommended amendments be approved to enhance clarity, maintain consistency, and streamline implementation of the Chapter 5.19provisions. 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.). 2018-11-27 Agenda Packet Page 23 P a g e | 3 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. These amendments support the Operational Excellence goal as they seek to clarify existing language and provide additional notice of requirements and prohibitions. CURRENT-YEAR FISCAL IMPACT The subject amendments to chapter 5.19 result in no current year fiscal impact to the City. ONGOING FISCAL IMPACT The subject amendments to chapter 5.19 may enhance the City’s ability to recover fees associated with commercial cannabis regulation. However, it is difficult and speculative to predict how such ability would be enhanced and in what amounts. ATTACHMENTS None. Staff Contact: Kelley Bacon; Megan McClurg 2018-11-27 Agenda Packet Page 24 SECOND READING AND ADOPTION C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@A4066185\@BCL@A4066185.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 5.19 REGARDING COMMERCIAL CANNABIS WHEREAS, the Adult Use of Marijuana Act (AUMA), adopted by the voters of the State of California in November 2016, decriminalized non-medicinal cannabis and established a regulatory system for non-medicinal cannabis businesses in California; and WHEREAS, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), enacted by the California State Legislature in June 2017, established a comprehensive set of laws regulating both individual and commercial medicinal and non- medicinal cannabis activity throughout the State of California; and WHEREAS, under California Business and Professions Code section 26200(a)(1), local jurisdictions are authorized to either permit and regulate or prohibit the operation of cannabis businesses within their boundaries; and WHEREAS, the California Attorney General’s 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use (“Guidelines”) recognizes that the concentration of cannabis in any location or premises without adequate security increases the risk that nearby homes or businesses may be impacted negatively by nuisance activity or more significant levels of crime; and WHEREAS, the City of Chula Vista has experienced the negative impacts and secondary effects associated with the operation of unlawful cannabis businesses within its corporate boundaries; and WHEREAS, unregulated businesses remain a source of danger and disruption for City residents and businesses; and WHEREAS, pursuant to its police powers, including but not limited to California Constitution Article XI, Section 5(b) authority over municipal affairs, the City of Chula Vista has general authority over the public health, safety, and welfare of its citizens; and WHEREAS, the proposed amendments do not cause a substantial change to the objectives and policies contained in Chula Vista Municipal Code chapter 5.19; WHEREAS, it is the intent of the City Council to adopt a comprehensive set of requirements, restrictions, and robust enforcement procedures with regard to cannabis activity within the City in order to protect public safety, health, and other law enforcement interests; NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: 2018-11-27 Agenda Packet Page 25 Ordinance Page 2 Section I. Environmental Findings The City Council finds that the adoption of this amending Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: 1. The amending Ordinance is exempt under Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Further, there is no possibility that the Ordinance would create cumulative impacts that are significant because the Ordinance does not authorize a total number of businesses in the City than would otherwise be authorized; there are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; 2. The amending Ordinance is also exempt under Section 15183 (Projects Consistent with a Community Plan or Zoning) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning; 3. The amending Ordinance is also exempt under Section 15301 (Existing Facilities) since permitted cannabis businesses under the Ordinance may locate in existing facilities, and any additions to structures would be expected to be also exempt under 15301; 4. The amending Ordinance is also exempt under Section 15303 (New Construction or Conversion of Small Structures). The businesses will be established in an urban area, and given the build out of the existing City, and sufficient existing leasable property, the amount of construction that would occur is minimal to non-existent, and any such construction would be less than the thresholds established in Section 15303. Section II.Chapter 5.19 of the Chula Vista Municipal Code regarding commercial cannabis is amended to read as follows: [Note: [Sections 5.19.010 through 5.19.040 remain unchanged]] 5.19.050 City License Application Process. The following procedures shall govern the application process for the issuance of any City License under this Chapter. A. Phase One Application Process 1. Application Requirements. Any Applicant seeking to obtain a City License to operate a Commercial Cannabis Business within the City shall submit a Phase One Application to the City, signed under penalty of perjury, using the form adopted by the City for that purpose. Among other information, each Phase One Application must contain the following: a. Applicant’s name, address, telephone number, and e-mail address; b. Names and addresses of all Owners of the Commercial Cannabis Business, Officers, and Managers. 2018-11-27 Agenda Packet Page 26 Ordinance Page 3 c. If any Applicant or Owner of the Commercial Cannabis Business is a business entity or any other form of entity, the entity’s legal status, formation documents, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as applicable. d. The type of City License the Applicant is seeking. e. A description of any and all Commercial Cannabis Activity engaged in as an owner, manager, lender, employee, volunteer, or agent by the Applicant and all Owners of the Commercial Cannabis Business, Officers, and Managers over the previous 5 years, including, but not limited to, the location of such activity and a copy of any permits, licenses, or other written forms of permission for such activity by a local or state government entity. An Applicant for a Storefront Retailer, Non-Storefront Retailer, Manufacturer, or Cultivator City License must demonstrate each of the following: i. That at least one Manager has one of the following types of experience: (A) a minimum of twelve (12) consecutive months, within the previous 5 years, as a Manager with managerial oversight or direct engagement in the day-to-day operation of a lawful Commercial Cannabis Business in a jurisdiction permitting such Commercial Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Activity demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is applying; or (B) a minimum of sixty (60) consecutive months, within the previous 7 years, as a Manager with managerial oversight and direct engagement in the day-to-day operation of a lawful pharmaceutical business licensed and regulated by a state or the federal government. The 60 months of experience demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is applying; and ii. That at least one Owner of the Commercial Cannabis Business has one of the following types of experience: (A) a minimum of twelve (12) consecutive months as an Owner of a Commercial Cannabis Business, within the previous 5 years, in a jurisdiction permitting such Commercial Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Business ownership demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is applying; or (B) a minimum of thirty-six (36) consecutive months as an owner with an aggregate ownership of 30% or more in a lawful alcohol business licensed and regulated by a state or the federal government. The 36 months of experience demonstrated must be of a type substantially similar to that allowed by the City License for which the applicant is applying; or (C) a minimum of thirty-six (36) consecutive months as an owner with an aggregate ownership interest of 30% or more in a lawful, properly licensed business with an average of ten (10) or more employees located within the City, thereby demonstrating a record of experience, familiarity and compliance with City rules and regulations. 2018-11-27 Agenda Packet Page 27 Ordinance Page 4 f. Documentation demonstrating a minimum of $250,000 in Liquid Assets available under the Applicant’s control. g. A business plan that contains, at a minimum, the following: a defined scope of planning and capital improvements; estimated revenues and expenses; and a demonstrated ability to operate in a highly regulated industry. h. An operating plan that contains, at a minimum, the following provisions: capacity to comply with State and local laws and regulations; adequate staffing, security, and employee training; effective exterior and interior customer flow management, if applicable; compatibility with the surrounding neighborhood; community outreach; and environmental sustainability. i. Submission by each individual Applicant, Owner of the Commercial Cannabis Business, Officer, and Manager of fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. If the Applicant or any Owner of the Commercial Cannabis Business or Manager is an entity, the Police Chief, in his/her discretion, may require individual employees, officers, members, representatives, or partners of each entity to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. j. A statement, under penalty of perjury, by each individual Applicant, Owner of the Commercial Cannabis Business, Officer, and Manager, that all information provided thereby is true and correct and that he/she has not conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. k. If an individual Applicant, Owner of the Commercial Cannabis Business, Officer, or Manager, or any entity such individual has been associated with in such capacity, has been denied authorization to conduct Commercial Cannabis Activity in any jurisdiction and/or such Person’s authorization to conduct Commercial Cannabis Activity in any jurisdiction has been suspended or revoked at any time, a description of each denial, suspension and/or revocation and documentation demonstrating a material change in circumstances since such denial, suspension, or revocation. l. For an Applicant with 10 or more employees, a statement that the Applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a Labor Peace Agreement. m. The Finance Director or Police Chief may request such additional information, as he/she deems necessary including documents, from the Applicant to evaluate Applicant’s qualifications. If the Applicant fails to provide such additional information in the time allotted, the Application shall be considered abandoned. 2. Site Identification. Phase One Applicants must also identify and submit a proposed site for its proposed Commercial Cannabis Business. Such submittal shall include the address and a general description of the proposed site location. In the event the site will be leased or acquired from another Person, the Applicant shall be required to provide a signed and notarized statement from the Owner(s) of the site on a form approved by the City acknowledging that the Owner(s) 2018-11-27 Agenda Packet Page 28 Ordinance Page 5 of the site: (a) has read this Chapter; (b) acknowledges and agrees to comply with all Premises Owner requirements set forth herein; and (c) the site is available for the operation of the Commercial Cannabis Business on terms already agreed to or to be negotiated with the Applicant that are or shall be consistent with the requirements of this Chapter. 3. Application Fee. The Phase One Application shall be accompanied by a nonrefundable application fee established by resolution of the City Council. 4. Initial Application Review by Finance Director. The Phase One Application shall be reviewed by the Finance Director for completeness and to determine if City’s minimum City License qualifications have been satisfied. Phase One Applications may be rejected by the Finance Director for any of the following reasons in his/her discretion: a. The application is received after the designated time and date; b. The application is not in the required form and/or is incomplete. A Phase One Application shall not be considered complete until the Finance Director has: (i) determined that all requirements of the application have been provided to the city; (ii) received the nonrefundable Phase One application fee; and (iii) obtained all other information the Finance Director determines necessary to make a decision whether the Application meets the requirements of State Laws or this Code. c. The Applicant has failed to pay the application fee required by this Chapter and specified by City Council resolution; d. The Applicant has failed to demonstrate the financial capacity to operate its proposed Commercial Cannabis Business and to fulfill its obligations under this Chapter. e. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process. f. The Applicant, an Owner of the Commercial Cannabis Business, Officer, or Manager is under twenty-one years of age. g. The Applicant or any Owner of the Commercial Cannabis Business is an entity that is incorporated outside of the United States. h. The Applicant has failed to demonstrate the minimum experience required in accordance with section 5.19.050.A.1.e, above. i. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager, has had his/her/its authorization to conduct Commercial Cannabis Activity in any jurisdiction suspended or revoked at any time, and such person has not demonstrated a material change in circumstances or corrective action since such suspension, and/or revocation. 5. Application Review by Police Chief. Phase One applications accepted by the Finance Director as minimally qualified shall be forwarded to the Police Chief for review and completion of any and all required background checks. Phase One Applications may be rejected by the Police Chief for any of the following reasons in his/her discretion: 2018-11-27 Agenda Packet Page 29 Ordinance Page 6 a. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process; b. The Applicant, any Owner of the Commercial Cannabis Business, Manager, or Officer, or any other individual identified pursuant to 5.19.050.A.1.i has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. c. The Applicant or any Owner of the Commercial Cannabis Business, Officer, or Manager has been convicted of a felony. d. The Applicant or any Owner of the Commercial Cannabis Business, Officer, or Manager has been convicted of any Crime of Moral Turpitude or any offense involving the use of a weapon. e. There are charges pending against the Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. f. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager has been adversely sanctioned or penalized by the City, or any other city, county, or state, for a material violation of state or local laws or regulations related to Commercial Cannabis Activity or to pharmaceutical or alcohol licensure. g. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. 6. Notice of Decision. The Finance Director or Police Chief shall serve the Applicant, either personally or by first class mail addressed to the address listed on the application, with dated written notice of the decision to approve or reject the Phase One Application. This notice shall state the reasons for the action, the effective date of the decision, and the right of the Applicant to appeal the decision to the City Manager. The City Manager’s determination regarding the Phase One Application shall be final. The City Manager shall provide dated written notice to the Applicant, either personally or by first class mail addressed to the address listed on the application, of the City Manager’s determination and the right of the Applicant to seek judicial review of the City Manager’s determination. 7. Invitation to Submit Phase Two Application; Merit-Based System. Applicants who are approved by the Finance Director and Police Chief under the Phase One Application process, or by the City Manager upon appeal, shall be deemed qualified to submit a Phase Two Application. If the number of deemed “qualified” Phase One Applicants for Storefront Retail or Non- Storefront Retail Licenses exceeds the number of available City Licenses for those license types, a merit-based system established by the City shall be used to determine which of the qualified Applicants is invited to submit a Phase Two Application. 8. Phase One Approvals Valid for Six Months. Phase One approvals shall be valid for a maximum period of six (6) months in order to allow the Applicant to complete the Phase Two 2018-11-27 Agenda Packet Page 30 Ordinance Page 7 process. City regulations issued pursuant to this Chapter, may provide for extensions of this time periods in limited, defined circumstances. B. Phase Two Application Process 1. Application Requirements. The Phase Two Application shall be submitted in writing, signed under penalty of perjury, using the form adopted by the City for that purpose. Among other information, each Phase Two Application must contain the following: a. Proposed Premises location and description. b. Information and diagrams demonstrating that the proposed Premises location complies with the applicable locational requirements of this Chapter, the City’s zoning code, and State Laws. c. Identification of all Owners of the proposed Premises location and a copy of all agreements for site control. d. Submission by each individual Owner of the proposed Premises location of fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. If an Owner of the Proposed Premises location is an entity, the Police Chief, in his/her discretion, may require individual employees, officers, members, representatives, or partners of each entity to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. e. Proposed emergency action and fire prevention plan that includes, at a minimum, employee roles and responsibilities; emergency notification and egress procedures; fire hazard identification, maintenance, and procedures; and fire and life safety system identification, maintenance, and procedures. f. Proposed security plan that includes, at a minimum, employee roles and responsibilities; entry/exit security and procedures; security guard coverage and duties; lighting, alarm, and camera placement and operation; limited-access area identification and procedures; cash handling processes and procedures, and demonstrates compliance with section 5.19.160. g. Information required or necessary to demonstrate the ability to comply with the applicable operational requirements set forth in sections 5.19.080 through 5.19.140, as applicable. 2. Application Fee. The Phase Two Application shall be accompanied by a non-refundable application fee established by resolution of the City Council. 3. Site Approval. As part of the application process, the Applicant shall be required to obtain all required land use approvals from the City and/or any other governmental agency with jurisdiction, including a certification from the Development Services Director certifying that the business is an allowed use in the zone where it is located, and the proposed site meets all of the requirements of this Chapter and Title 19 of this Code. 2018-11-27 Agenda Packet Page 31 Ordinance Page 8 4. Site Control. As a condition precedent to the City’s issuance of a City License pursuant to this Chapter, in the event the Premises will be leased from another Person, the Applicant shall be required to provide a signed and notarized statement from the Owner(s) of the Premises on a form approved by the City acknowledging that the Owner(s) of the Premises: (a) has read this Chapter; (b) acknowledges and agrees to comply with all Premises Owner requirements set forth herein; and (c) the site is available for the operation of the Commercial Cannabis Business on terms agreed to with the Applicant that are consistent with the requirements of this Chapter. 5. Application Review by Development Services Director, Fire Chief, and Police Chief. Phase Two Applications shall be reviewed and are subject to approval by the Development Services Director, the Fire Chief and the Police Chief. A Phase Two Application may be rejected by the Development Services Director, Fire Chief, and/or Police Chief for any of the following reasons: a. The application is received after the designated time and date; b. The application is not in the required form and/or is incomplete. A Phase Two Application shall not be considered complete until the Development Services Director, Fire Chief, and Police Chief have: (i) determined that all requirements of the application have been provided to the city; (ii) received the nonrefundable Phase Two application fee; and (iii) obtained all other information the Development Services Director, Fire Chief, and Police Chief determine is necessary to make a decision whether the application meets the requirements of State Laws or this Code. c. The application fails to demonstrate that the proposed Premises location complies with this Chapter, the City’s zoning code, and State Laws. d. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process; e. An Owner of the proposed Premises location or any other individual identified pursuant to 5.19.050.B.1.d has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. f. An Owner of the proposed Premises location has been convicted of a felony. g. An Owner of the proposed Premises location has been convicted of any Crime of Moral Turpitude or any offense involving the use of a weapon. h. There are charges pending against an Owner of the proposed Premises location for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. i. An Owner of the proposed Premises location has been adversely sanctioned or penalized by City, or any other city, county, or state, for a material violation of state or local laws related to Commercial Cannabis Activity. j. An Owner of the proposed Premises location has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. 2018-11-27 Agenda Packet Page 32 Ordinance Page 9 6. Notice of Decision. The Development Services Director, Fire Chief, or Police Chief shall serve the Applicant, either personally or by first class mail addressed to the address listed on the application, with dated written notice of the decision to approve or reject the Phase Two Application. This notice shall state the reasons for the action, the effective date of the decision, and the right of the Applicant to appeal the decision to the City Manager. The City Manager’s determination regarding the Phase Two Application shall be final. The City Manager shall provide dated written notice to the Applicant, either personally or by first class mail addressed to the address listed on the application, of the City Manager’s determination and the right of the Applicant to seek judicial review of the City Manager’s determination. 7. Conditional City Approval Valid for Six Months. Upon obtaining final approval of a Phase Two Application, an applicant shall be issued a conditional City approval. The conditional City approval shall be valid for a period of six (6) months to allow the Applicant to take all necessary actions to open its Commercial Cannabis Business. If the business is not fully permitted and operating by the end of this six (6) month period (the “Conditional Approval Period”), the conditional City approval will be void without the need for further action by the City. Notwithstanding the foregoing, if the only remaining action necessary for an Applicant holding a conditional City approval is the State’s determination on such Applicant’s pending State License application, the validity of the conditional City approval shall be extended until the earlier to occur of: (a) the State’s determination on the issuance of the pending State License application, or (b) the date falling 6 months after the expiration of the Conditional Approval Period. City regulations issued pursuant to this Chapter may provide for other extensions of the Conditional Approval Period in limited, defined circumstances. 8. Pipeline Projects; Priority Regulations to be Issued. Prior to commencing the application process for City Licenses, City will develop and issue regulations to establish and clarify development rights priorities between, on the one hand, Commercial Cannabis Businesses, and, on the other hand, uses and businesses with separation requirements with respect to Commercial Cannabis Businesses. Regulations shall include, among other things, provisions applicable to Pipeline Projects and Existing Residential Uses. C. Requirements Prior to Commencement of Operation. Prior to commencing Operations under a City License, in addition to any and all other applicable State and local requirements, a City Licensee must comply with the following requirements: 1. Fees and Charges. Pay in full all fees and charges required for the Operation of a Commercial Cannabis Activity. Fees and charges associated with the Operation of a Commercial Cannabis Business shall be established by resolution of the City Council which may be amended from time to time. 2. Business License Tax. Pay to the City a business license tax as required by Code Chapter 5.02. 3. Permits and Approvals. Obtain all applicable planning, zoning, building, and other applicable licenses, permits, and approvals from the relevant City department or division that may be applicable to the Premises and the zoning district in which such business will be located. 2018-11-27 Agenda Packet Page 33 Ordinance Page 10 4. Final Security Plan Approval. Obtain final security plan approval from the Police Chief for the Premises and Operation of the Commercial Cannabis Business. 5. Final Emergency Action and Fire Prevention Plan Approval. Obtain final safety approval from the Fire Chief for the Premises and Operation of the Commercial Cannabis Business. 6. Employee Work Permits. Obtain from the Police Chief work permits for each employee of the Commercial Cannabis Business whose name did not appear on an Application for a City License. Each employee shall submit their application for such work permit to the Police Chief, which application shall be under oath and shall include, among other things, the name, address, proposed job title, and past criminal record, if any, of the employee and shall be accompanied by the fingerprints of the employee. An application for an employee work permit shall be accompanied by the required fee(s) or the required renewal fee(s). The work permit, when issued, shall be valid for one year. The Police Chief may revoke, deny, or not renew any employee work permit upon finding that any of the factors apply: a. The employee has made a false, misleading or fraudulent statement or omission of fact in the employee work permit application or renewal application; b. The employee is under twenty-one years of age; c. The employee has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. d. The employee has been convicted of a felony. e. The employee has been convicted of any Crime of Moral Turpitude or any offense involving the use of a weapon. f. There are charges pending against the employee for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. g. The employee has been adversely sanctioned or penalized by the City, or any other city, county, or state, for a material violation of state or local laws or regulations related to Commercial Cannabis Activity or to pharmaceutical or alcohol licensure. h. The employee has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. i. The employee has failed to comply with any requirement imposed by the provisions of this Code (or successor provision or provisions) including any rule, regulation, condition or standard adopted pursuant to this Chapter, or any term or condition imposed on the City License, or any provision of local or State Laws and/or regulations. j. The employee has been adversely sanctioned or fined for, charged with, or found guilty of or pled guilty or no contest to a charge of operating a Commercial Cannabis Business without the necessary licenses and approvals from the applicable state and/or local jurisdiction. 7. State License. Submit proof that the necessary State License has been obtained and that Applicant remains in good standing thereunder. 2018-11-27 Agenda Packet Page 34 Ordinance Page 11 8. Agreement. Submit a fully executed agreement as required by section 5.19.070. 9. Insurance. Submit proof of insurance at coverage limits and with conditions thereon determined necessary and appropriate by the City’s insurance and claims administrator. 10. Operational Requirements. Demonstrate compliance with any and all pre-opening operational requirements that may apply as specified in section 5.19.080 through 5.19.140, below, and the ability to comply with and all applicable and ongoing operational requirements. D. General Rules. 1. If a Phase One or Phase Two application is denied or a corresponding conditional City License expires, no Applicant or Person named therein will be qualified to submit a new Phase One application until the passage of one year from the date of the denial or expiration. 2. Phase One and Phase Two applications shall include such supplemental materials as required by the rules and regulations adopted pursuant hereto. The City may, at the City Manager’s discretion, require additional documentation associated with any application as may be necessary to enforce the requirements of State Laws and this Code. 3. Applicants shall have no right to operate under a City License until a City License is actually issued thereto by the City. Each Applicant assumes the risk that, at any time prior to the issuance of a license, the City Council may terminate or delay the program created under this Chapter. 4. Issuance of a City License does not create a land use entitlement. Furthermore, no City License will be officially issued and no Applicant awarded a City License may begin operations until the City Licensee is fully in compliance with all state and local laws and regulations, including but not limited to State Laws. 5. The City reserves the right to reject or approve any and all applications and conditional licenses based on the standards set forth in this Chapter, or otherwise in its sole discretion, taking into account the health, safety and welfare of the community, and in accordance with its general police powers authority. E. Limits on Number of Applications Per Applicant/Owner. The number of applications allowed to be filed by each Applicant/Owner shall be determined by regulations promulgated by the City Council or the City Manager. Limits imposed, if any, may be applied on an overall basis, per license type, and/or per Council District. 5.19.060 Location Requirements for Cannabis Businesses As set forth above in Code Section 5.19.030, a limited number of City Licenses for Commercial Cannabis Businesses shall be authorized and issued by the City. In locating such businesses, City Licensees shall be further subject to the following requirements. A. In General. The licensed Premises of a Commercial Cannabis Business shall be a contiguous, fully enclosed area and shall be occupied only by one Licensee. B. Storefront Retailers. 2018-11-27 Agenda Packet Page 35 Ordinance Page 12 1. Allowed Zones. Subject to the separation requirements set forth below, Storefront Retailers shall only be allowed in the following zones: (a) C-0 Administrative and Professional Office; (b) C-N Neighborhood Commercial; (c) C-C Central Commercial; (d) C-V Visitor Commercial; (e) C-T Thoroughfare Commercial; (f) other Commercial Zones in Specific Plans or Sectional Planning Area Plans that allow retail sales uses (including such zones that allow mixed commercial and residential uses); and (g) with a Conditional Use Permit, in the following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and equivalent Industrial Zones in Specific Plans or Sectional Planning Area Plans that allow industrial uses. 2. Special Rules for Storefront Retailers in Industrial Zones. In addition to any and all other applicable Code requirements, Storefront Retailers proposed to be located in Industrial Zones (a) must be located in buildings with entrances that face, and are within 100 feet of a Public Street; and (b) must comply with parking and sign regulations applicable to retail sales businesses in commercial zones. 3. Separation Requirements. a. Storefront Retailers shall not locate within 1,000 feet of any Day Care Center or any public or private school providing instruction for kindergarten or any grades 1 through 12. b. Storefront Retailers shall not locate within 600 feet of any Treatment Facility, Youth Center, Youth-Oriented Business, Public Park, or Private Park. c. Storefront Retailers shall not locate within 150 feet of any Residential Zone. 4. Retail Sales Requirements Apply. Storefront Retailers are retail sales uses for purpose of the Code. Except as otherwise provided in this Chapter, all retail sales use requirements for the allowed zone in which the business is located shall apply. C. Non-Storefront Retailers. 1. Allowed Zones. Subject to the separation requirements set forth below, Non-Storefront Retailers shall only be allowed in following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and equivalent Industrial Zones in Specific Plans or Sectional Planning Area Plans that allow industrial uses. 2. Separation Requirements. Non-Storefront Retailers shall not locate within 150 feet of any Residential Zone. 3. Industrial Use Requirements Apply. Non-Storefront Retailers are industrial uses for the purpose of the Code. Except as otherwise provided in this Chapter, all industrial use requirements for the allowed zone in which the business is located shall apply. D. Manufacturers; Distributors; Testing Laboratories; and Cultivators. 1. Allowed Zones. Subject to the separation requirements set forth herein, below, Manufacturers, Distributors, Testing Laboratories, and Cultivators shall be allowed in following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and 2018-11-27 Agenda Packet Page 36 Ordinance Page 13 equivalent Industrial Zones in Specific Plans or Sectional Planning Area Plans that allow industrial uses. 2. Separation Requirements. No Manufacturer, Distributor, Testing Laboratory or Cultivator shall be located within 150 feet of any zone allowing residential uses. 3. Industrial Use Requirements Apply. Manufacturers, Distributors, Testing Laboratories, and Cultivators are industrial uses for the purpose of the Code. Except as otherwise provided in this Chapter, all industrial use requirements for the allowed zone in which the business is located shall apply. E. Standards for Measurement of Separation Distances. For purposes of this Section, separation distances between uses shall be measured as follows: 1. Measuring Points Established. Separation distance between uses shall be measured horizontally in a continuous series of straight lines that connect the two closest “measuring points” of each business or use as set forth herein, below. a. For a Commercial Cannabis Business, the “measuring point” shall be the center point of the public entrance closest to a Public Street. b. For a Day Care Center, Youth Center, Youth Oriented Business, or Treatment Facility, the “measuring point” shall be the center point of the public entrance closest to a Public Street. c. For a public or private school, Public Park, Private Park, or Residential Zone, the “measuring point” shall be the point located on the legal parcel boundary line abutting a Public Street or zone line, as applicable, that is closest to the “measuring point” of the Commercial Cannabis Business at issue. 2. Measurement Paths; Examples. Measurements between public entrances shall start at the “measuring point” of Commercial Cannabis Business and proceed in a continuous line to the closest property line of the Public Street, measured perpendicular to the Public Street. The measurement shall then continue along the property lines of the Public Street fronts, and in a direct line across intersections along the shortest pedestrian route toward the “measuring point” of the separated use until it reaches such “measuring point”. See illustrations below. 2018-11-27 Agenda Packet Page 37 Ordinance Page 14 Measurements between public entrances and legal parcel boundary lines shall start at “measuring point” of the Commercial Cannabis Business and proceed in a continuous line to the closest property line of the Public Street, measured perpendicular to the Public Street. The measurement shall then continue along the property lines of the public street front(s), and in a direct line across intersections along the shortest pedestrian route towards the “measuring point” of the separated use until it reaches such “measuring point”. See illustration below. 2018-11-27 Agenda Packet Page 38 Ordinance Page 15 2018-11-27 Agenda Packet Page 39 Ordinance Page 16 Where a public or private school, Public Park, Private Park, or residential use or Residential Zone are directly adjacent to or across a Public Street from a Storefront Retailer or Non- Storefront Retailer, the separation distance shall be measured between the respective “measuring points” without regard to a Public Street or intersections. See illustration below. Where a Commercial Cannabis Business and a Day Care Center, Youth Center, Treatment Facility, Youth-Oriented Business or existing residential use are on the same parcel, or contiguous parcels, the separation distance shall be measured in a straight line connecting their “measuring points”. See illustration below. 2018-11-27 Agenda Packet Page 40 Ordinance Page 17 3. Interpretations, Determinations Made by Development Services Director. Interpretations and determinations of compliance with the requirements of this section and the calculation of separation distances shall be made by the Development Services Director. Exhibits from a Licensed Land Surveyor may be required by the City to make a final decision on compliance with the separation requirements of this subsection. [Note: [Section 5.19.070 remains unchanged]] 5.19.080 Operating and Conduct Requirements for All Licensees and Individuals. A. No person shall consume Cannabis and/or Cannabis Products on the Premises of a Commercial Cannabis Business. B. No person shall cause or license the sale, dispensing, or consumption of alcoholic beverages or tobacco products on the Premises of a Commercial Cannabis Business. C. No Cannabis or Cannabis Products shall be visible from the exterior of any Premises issued a City License, or on any of the vehicles owned or used as part of a Commercial Cannabis Business. No outdoor storage of Cannabis or Cannabis Products is permitted at any time. D. Each Commercial Cannabis Business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the Commercial Cannabis Business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The Commercial Cannabis Business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the Finance Director prior to being used by the City Licensee. E. All Cannabis and Cannabis Products sold, tested, distributed or manufactured shall be cultivated, manufactured, and transported by Commercial Cannabis Businesses that maintain operations in full conformance with State Laws, State regulations, local laws, and local regulations. F. All Commercial Cannabis Businesses shall have a Manager on the premises at all times during hours of operation. G. Each Commercial Cannabis Business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site Manager or Owner to whom emergency notice may be provided at any hour of the day. H. Each Commercial Cannabis Business premises shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the Premises or in the areas adjacent to the Commercial Cannabis Business is prohibited. I. Persons under the age of twenty-one (21) years shall not be allowed and are not allowed on the Premises of a Commercial Cannabis Business, and shall not be allowed and are not allowed to serve as a driver for a Non-Storefront Retailer. 2018-11-27 Agenda Packet Page 41 Ordinance Page 18 J. It shall be unlawful and a violation of this Chapter for any Person to employ an individual at a Commercial Cannabis Business who is not at least twenty-one (21) years of age. K. Odor Control. Odor control devices and techniques shall be incorporated in the Premises of all Commercial Cannabis Businesses to ensure that odors from Cannabis are not detectable off- site. Commercial Cannabis Businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the Commercial Cannabis Business that is distinctive to its Operation is not detected outside of the Premises, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the Commercial Cannabis Business. As such, Commercial Cannabis Businesses must install and maintain the following equipment, or any other equipment which the Development Services Director determines is a more effective method or technology: 1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; 2. An air system that creates negative air pressure between the Commercial Cannabis Business’s interior and exterior, so that the odors generated inside the Commercial Cannabis Business are not detectable on the outside of the Commercial Cannabis Business. L. Safety, Security, and Operating Plans. Each Commercial Cannabis Business must comply with all requirements of the security plan approved by the Police Chief; with all safety requirements of the Emergency Action and Fire Prevention Plan approved by the Fire Chief; and with all provisions of the operating plan approved by the Development Services Director. M. Display of City License and City Business License. The original copy of the City License and the City Business License shall be posted inside the Premises of the Commercial Cannabis Business in a location readily-visible to the public. N. Employee Identification. Each and every employee of a City Licensee must, at all times when present on a Premises and while conducting a Delivery, wear an identification badge containing their photograph, age, the name of the City Licensee for whom they are employed, and, if the employee is a Manager, the employee’s job title. O. Delaying or Lingering Prohibited. The City Licensee shall take reasonable steps to prevent individuals from delaying or lingering on the Premises without a lawful purpose. P. Cannabis Use on Premises Prohibited. The City Licensee shall take reasonable steps to prevent the use and consumption of Cannabis or Cannabis Products on the Premises. Q. Licenses and other Approvals. Throughout the Operation of a Commercial Cannabis Business, the City Licensee must maintain all applicable planning, zoning, building, and other applicable licenses, permits, and approvals from the relevant City department or division that may be applicable to the zoning district in which the Commercial Cannabis Business Premises is located. 2018-11-27 Agenda Packet Page 42 Ordinance Page 19 R. Persons with Disabilities.Nothing in this Chapter exempts a Commercial Cannabis Business from complying with all applicable local, State and federal laws and regulations pertaining to persons with disabilities. S. Discrimination. No Commercial Cannabis Business may discriminate or exclude patrons in violation of local, State and federal laws and regulations. T. Fees and Charges. 1. No Person may conduct Commercial Cannabis Activity without timely paying in full all fees and charges required associated with the Operation of a Commercial Cannabis Activity. Fees and charges associated with the Operation of a Commercial Cannabis Activity shall be established by resolution of the City Council which may be amended from time to time. 2. City Licensees authorized to Operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State and local law. Each Commercial Cannabis Business shall cooperate with City with respect to any reasonable request to audit the Commercial Cannabis Business’ books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period. U. Training Requirements. City reserves the right to impose training requirements on Managers, employees, and others involved in the Operation of a Commercial Cannabis Business, with the specific requirements to be determined and implemented through regulations. V. Temporary Events Prohibited. Cannabis temporary events, as described in California Business and Professions Code section 26200 as presently adopted or further amended, are prohibited in the City at all times. [Note: [Section 5.19.090 remains unchanged]] 5.19.100 Operating Requirement for Non-Storefront Retailers. A. From a public right-of-way, there should be no exterior evidence of Non-Storefront Retailer Premises except for any signage authorized by this Code. B. The general public is not permitted on the Premises of a City Non-Storefront Retailer Licensee except for the agents, applicants, managers, and employees of the City Non-Storefront Retailer Licensee and any agents or employees of the City. C. A Non-Storefront Retailer shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to: 1. Delivery Regulations. a. All Deliveries of Cannabis or Cannabis Product shall be made by and individual person to an individual person. A Delivery of Cannabis or Cannabis Product shall not be made through the use of an unmanned vehicle. 2018-11-27 Agenda Packet Page 43 Ordinance Page 20 b. A Delivery Employee conducting a Delivery shall only travel in an enclosed motor vehicle operated by a Delivery Employee. c. Delivery of Cannabis or Cannabis Product shall only be made to a physical address (e.g., not to a P.O. Box or a street intersection). d. Delivery of Cannabis or Cannabis Products shall not be made to any public or private school providing instruction for kindergarten or any grades 1 through 12, Day Care Center, Youth Center, Treatment Facility, Youth Center, Youth-Oriented Business, Public Park, or Private Park. Deliveries to any workplace shall remain subject to any employer’s right to limit or prohibit such activity. e. While conducting a Delivery, a Delivery Employee shall ensure the Cannabis or Cannabis Products are not visible to the public. f. A vehicle used for Delivery shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of a Delivery vehicle. g. A Delivery Employee shall, during Deliveries, carry a copy of the Non-Storefront Retailer’s current City License, the Delivery Employee’s government-issued identification, an identification badge issued by the Police Chief, and a Delivery invoice. h. While making a Delivery, a Delivery Employee shall not at any time carry Cannabis and/or Cannabis Goods worth an amount in excess of that authorized by State Laws. This value shall be determined using the current retail price of all Cannabis and/or Cannabis Products carried by the Delivery Employee. 2. Product Regulations and Restrictions. a. A Non-Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Adult- Use Cannabis in a single day to a single customer. b. A Non-Storefront Retailer shall Sell no more than 8 grams of Adult-Use Cannabis Concentrate, including Cannabis Concentrate contained in Cannabis Products, in a single day to a single customer. c. A Non-Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single day to a single customer. d. A Non-Storefront Retailer shall not Sell edible Cannabis Products containing more than 10 milligrams of THC per serving. e. A Non-Storefront Retailers shall not Sell edible Cannabis Products containing more than 100 milligrams of THC per package. f. A Non-Storefront Retailer shall not Sell Cannabis Products that are in the shape of a human being, either realistic or caricature, animal, insect, or fruit. g. A Non-Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or other concentrate with instruction for the preparation of Cannabis-infused beverages. 2018-11-27 Agenda Packet Page 44 Ordinance Page 21 h. A Non-Storefront Retailer shall not provide free Cannabis or Cannabis Products to any Person. [Note: [Sections 5.19.110 through 5.19.150 remain unchanged]] 5.19.160 Security Measures. A. All City Licensees shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing Cannabis or Cannabis Products, and to deter and prevent the theft of Cannabis or Cannabis Products at the Premises of the Commercial Cannabis Business. Except as may otherwise be determined by the Police Chief, these security measures shall include, but shall not be limited to, all of the following: 1. Preventing individuals from remaining on the Premises of the Commercial Cannabis Business if they are not engaging in an activity directly related to the Operations of the Commercial Cannabis Business. 2. Establishing limited access areas accessible only to authorized Commercial Cannabis Business personnel. 3. All Cannabis and Cannabis Products, including Live Plants, shall be kept in a secure manner so as to prevent diversion, theft, and loss. All Cannabis and Cannabis Products that are being stored must be stored in a secured and locked room, safe, or vault. All Cannabis and Cannabis Products on display for Sale shall be displayed in a secure case. 4. Installing 24-hour security surveillance cameras of at least HD-quality to monitor areas on the Premises including, but not limited to: entrances and exits to and from the Premises; all interior spaces which are open and accessible to the public; all interior spaces where Cannabis, cash or currency is being stored for any period of time on a regular basis; all areas where the purchase, Sale, Distribution, or Transfer of Cannabis or Cannabis Products take place; and all exterior and interior spaces where diversion of Cannabis could reasonably occur. The City Licensee shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the Police Chief, and that it is compatible with the City’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the Police Chief. Video recordings shall be maintained for a minimum of 90 days, and shall be made available to the Police Chief upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the Premises of the Commercial Cannabis Business. 5. Sensors shall be installed to detect entry and exit from all secure areas. 6. Panic buttons shall be installed in all Commercial Cannabis Businesses. 7. A professionally installed, maintained, and monitored alarm system, with the required City alarm permit under Chapter 9.06.150 of this Code. 8. Security personnel shall be on the Premises 24 hours a day or alternatively, as authorized by the Police Chief. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the Police chief, with such approval not to be unreasonably withheld. 2018-11-27 Agenda Packet Page 45 Ordinance Page 22 9. Each Commercial Cannabis Business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. B. Each Commercial Cannabis Business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the Police Chief regarding any security related measures or and operational issues. C. As part of the application and licensing process, each Commercial Cannabis Business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all Cannabis, Cannabis Products, and any currency. D. Each Commercial Cannabis Business shall cooperate with the City whenever the City Manager makes a request, upon reasonable notice to the Commercial Cannabis Business, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter. E. A Commercial Cannabis Business shall notify the Police chief within 24 hours after discovering any of the following: 1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the Police chief. 2. Diversion, theft, loss, or any criminal activity involving the Commercial Cannabis Business or any Owner, Officer, Manager, agent, or employee of the Commercial Cannabis Business. 3. The loss or unauthorized alteration of records related to Cannabis, registering qualifying patients, primary caregivers, or employees or agents of the Commercial Cannabis Business. 4. Any other breach of security. [Note: [Sections 5.19.170 through 5.19.190 remain unchanged]] 5.19.192 License Holder Responsible for Violations By Employees or Agents. The City Licensee shall be responsible for all violations of the regulations and ordinances of the City committed by the City Licensee, or any employee or agent of the City Licensee. Violations by a City Licensee, or employee or agent of the City Licensee, may result in revocation or non- renewal of the City License. 5.19.194 Fees Deemed Debt to City The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable in any manner authorized by law. [Note: [Sections 5.19.200 through 5.19.290 remain unchanged]] Section III. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the 2018-11-27 Agenda Packet Page 46 Ordinance Page 23 Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section IV. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section V. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VI. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Gary Halbert Glen R. Googins City Manager City Attorney 2018-11-27 Agenda Packet Page 47 3.6.18 Ordinance Chapter 5.19 COMMERCIAL CANNABIS Sections: 5.19.010 Purpose. 5.19.020 Definitions. 5.19.030 City License Required. 5.19.040 Maximum Number and Type of Authorized City Licenses. 5.19.050 City License Application Process. 5.19.060 Location Requirements for Cannabis Businesses. 5.19.070 Limitations on City’s Liability. 5.19.080 Operating and Conduct Requirements for All Licensees and Individuals. 5.19.090 Operating Requirements for Storefront Retailers. 5.19.100 Operating Requirements for Non-Storefront Retailers. 5.19.110 Operating Requirements for Cultivators. 5.19.120 Operating Requirements for Manufacturers. 5.19.130 Operating Requirements for Distributors. 5.19.140 Operating Requirements for Testing Laboratories. 5.19.150 Recordkeeping. 5.19.160 Security Measures. 5.19.170 Community Relations. 5.19.180 Promulgation of Regulations, Standards, and Other Legal Duties. 5.19.190 Compliance With Laws. 5.19.200 Right of Access & Testing. 5.19.210 Restrictions on Transfer, Change, or Alteration of City License or City Licensee. 5.19.220 Restrictions on Transfer, Change, or Alteration of Location. 5.19.230 Expiration of City License. 5.19.240 Renewal of City License. 5.19.250 Effect of State License Suspension, Revocation, or Termination. 5.19.260 Suspension or Revocation of City License. 5.19.270 Advertising and Marketing of Cannabis. 5.19.280 Enforcement and Penalties. 5.19.290 Effectiveness Conditioned on Passage of Tax Measure. 5.19.010 Purpose The Adult Use of Marijuana Act (AUMA), adopted by the voters of the State of California in November 2016, decriminalized non-medicinal cannabis and established a regulatory system for non-medicinal cannabis businesses in California. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), enacted by the California Legislature in June 2017, established a comprehensive set of laws regulating both individual and commercial medicinal and non-medicinal cannabis activity throughout the State of California. Under California law, 2018-11-27 Agenda Packet Page 48 Ordinance Page 2 local jurisdictions are authorized to either permit or prohibit the operation of cannabis businesses within their boundaries. The City has experienced the negative impacts and secondary effects associated with the operation of unlawful cannabis businesses within its corporate boundaries. Unregulated businesses remain a source of danger and disruption for City residents and businesses. In response to changes in California law, and in an effort to mitigate the negative impacts brought by unregulated Commercial Cannabis Activity, the City now desires to permit, license, and fully regulate Commercial Cannabis Activities within the City. 5.19.020 Definitions. When used in this Chapter, the following words and phrases shall have the meanings ascribed to them below. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code, or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any references to State Laws, including references to any California statutes or regulations, is deemed to include any successor or amended version of the referenced statute or regulations promulgated thereunder consistent with the terms of this Chapter. “A-License” means a State License for Commercial Cannabis Activity related to products for individuals 21 years of age and over without the need for a physician’s recommendation. “A-Licensee” means a Person holding an “A-License.” “Adult-Use Cannabis” or “Adult-Use Cannabis Product” means Cannabis or Cannabis Products for individuals 21 years of age and over without the need for a physician’s recommendation. “Advertise” means to publish or disseminate an Advertisement. “Advertisement” means any written or verbal statement, illustration, or depiction which is calculated to induce sales of Cannabis or Cannabis Products, including without limitation: any written, printed, graphic, or other material; billboard, sign, or other outdoor, digital, indoor or point-of-sale display; individual carrying a display; public transit card, other periodical, literature or publication, or in any similar media; except that such term shall not include: A. Any label affixed to any Cannabis or Cannabis Products, or any individual covering, carton, or other wrapper of such container that constitutes a part of the labeling. B. Any editorial story, or other information (e.g., news release) in any periodical, publication or newspaper either in print or electronic format, for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any City Licensee or Person engaged in Commercial Cannabis Activity, and which is not written by or at the direction of a City Licensee or Person engaged in Commercial Cannabis Activity. “Applicant” means the Owner or Owners applying for a City License pursuant to this Chapter. “Attractive to Youth” means products, packaging, labeling, or Advertisements that are reasonably likely to encourage individuals under age 21 to initiate cannabis consumption or 2018-11-27 Agenda Packet Page 49 Ordinance Page 3 otherwise to accidentally or purposely consume Cannabis or Cannabis Products. Attractive to Youth items include: A. Products that resemble a non-Cannabis consumer product of a type that is typically consumed by, or marketed to Youth, such as a specific candy or baked treat. B. Packaging or labeling that resembles packaging or labeling of a non-Cannabis consumer product of a type that is typically consumed by or marketed to Youth. C. Packaging or labeling that contains images, characters, or phrases that closely resemble images, characters, or phrases popularly used to advertise to Youth. D. Advertising that mimics Advertising of a non-cannabis consumer product of a type that is typically consumed by, or marketed to Youth. E. Advertising that contains images, characters, or phrases that closely resemble images, characters, or phrases popularly used to advertise to Youth. “Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this definition, “Cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the California Health and Safety Code. “Cannabis Concentrate” means Cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. Cannabis Concentrate does not include any product intended for oral ingestion by the final consumer. A Cannabis Concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code. “Cannabis Product” means Cannabis that has undergone a process whereby the plant material has been concentrated and, with or without the addition of ingredients, been transformed into a product for sale. Cannabis products include but are not limited to: Cannabis Concentrate, Edible Cannabis Products, Topical Cannabis, or an inhalant containing Cannabis or Cannabis Product. “Canopy” means the designated area(s) at a City Licensed Premises, except nurseries, that contain growing or mature Cannabis plants at any point in time. The Canopy for each Premises shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain growing or mature plants at any point in time, including any and all space(s) within such boundaries. The Canopy for any Premises may be noncontiguous provided that each unique area included in the total Canopy calculation for any Premises shall be separated by an identifiable boundary. Identifiable boundaries may include, but are not limited to: interior walls, 2018-11-27 Agenda Packet Page 50 Ordinance Page 4 shelves, greenhouse walls, hoop house walls, or fencing. If plants are being cultivated using a shelving system, the surface of each level shall be included in the total Canopy calculation. “Caregiver or Primary Caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. “City” means the City of Chula Vista, California. “City Attorney” means the City Attorney of the City of Chula Vista, or his/her designee. “City License” means the regulatory license issued by the City pursuant to this Chapter to a Commercial Cannabis Business that must be obtained prior to the commencement of any Commercial Cannabis Activity in the City. “City Licensee” means any Person holding a City License. “City Manager” means the City Manager of the City of Chula Vista, or his/her designee. “Code” means The City of Chula Vista Municipal Code. “Commercial Cannabis Activity” means the commercial cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis or Cannabis Products. “Commercial Cannabis Business” or “Cannabis Business” means any Person lawfully engaged in a Commercial Cannabis Activity. “Council District” means any of four political subdivisions within the City by which City Council members are elected. “Crime of Moral Turpitude” means a crime involving deceit; fraud; a readiness to do evil; or an act of moral depravity of any kind that has a tendency in reason to shake one’s confidence in the perpetrator’s honesty. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis, other than for personal use. A City License is required for the Cultivation of Cannabis pursuant to 5.19.030. “Cultivator” means a Person engaged in Cultivation. “Customer” means an individual 21 years of age or over, or an individual 18 years of age or older who possesses a physician’s recommendation. “Day Care Center” has the same meaning as in Section 1596.76 of the California Health and Safety Code. “Delivery” means the commercial transfer of Cannabis or Cannabis Products from a Non- Storefront Retailer Premises to a Customer at a physical address. Delivery also includes the use by a Non-Storefront Retailer of any technology platform to facilitate Delivery. “Delivery Employee” means an employee of a Non-Storefront Retailer who conducts Deliveries. 2018-11-27 Agenda Packet Page 51 Ordinance Page 5 “Development Services Director” means the Director of the City’s Development Services Department, or his/her designee. “Distribution” means the procurement, sale, and transport of Cannabis and Cannabis Products between Commercial Cannabis Businesses. A City License is required for Distribution pursuant to 5.19.030. “Distributor” means a Person engaged in Distribution. “Edible Cannabis Product” means a Cannabis Product that is intended to be used, in whole or in part, for human consumption, including, but not limited to chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the California Food and Agricultural Code. Edible Cannabis Product has the same meaning as California Business and Professions Code section 26001. “Existing Residential Use” means a residential Pipeline Project or lawfully constructed structure or project intended for residential use within a Residential Zone. “Finance Director” means the Director of the Chula Vista Finance Department, or his/her designee. “Fire Chief” means the Chief of the Chula Vista Fire Department, or his/ her designee. “Labor Peace Agreement” means an agreement between a licensee and any bona fide labor organization that is required by State Laws and this chapter and that, at a minimum, protects public interests with the following provisions: (1) a prohibition on labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a City Licensee’s Cannabis Business; (2) an agreement by the City Licensee not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the City Licensee’s employees; access for a bona fide labor organization at reasonable times to areas in which the City Licensee’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. “Licensee” means any Person holding a State License and a City License. “Liquid Assets” means assets that can be readily converted into cash. Liquid Assets include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. Liquid Assets does not mean household items, furniture and equipment, vehicles, Cannabis plants or products, business inventory, or real property and improvements thereto. “Live Plants” means living Cannabis flowers and plants including seeds, immature plants, and vegetative stage plants. “M-License” means a State License for Commercial Cannabis Activity involving Medicinal Cannabis. “M-Licensee” means a Person holding an M-License. 2018-11-27 Agenda Packet Page 52 Ordinance Page 6 “Manager” means any individual Person(s) designated by a Commercial Cannabis Business to manage day-to-day operations of the Commercial Cannabis Business or any Person acting with apparent management authority. Evidence of management authority includes, but is not limited to, evidence that the Person has the power to direct, supervise, or hire and dismiss employees, control hours of operation, create policy rules, or purchase supplies. “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a Cannabis Product. A City License to Manufacture is required pursuant to 5.19.030. “Manufacturer” means a Person engaged in Manufacturing. “Marketing” means any act or process of promoting or selling Cannabis or Cannabis Products, including, but not limited to, sponsorship of events, offers such as tickets to events, point-of-sale advertising, branded merchandise, pamphlets or product promotion materials. “Medicinal Cannabis” or “Medicinal Cannabis Product” means Cannabis or a Cannabis Product for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the California Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. “Minor” means an individual under 18 years of age. “Non-Storefront Retailer” means a Person that offers Cannabis, Cannabis Products, or devices for the use of Cannabis or Cannabis Products, either individually or in any combination, for retail Sale to Customers exclusively by Delivery. A City License is required to operate a Non- Storefront Retailer Business pursuant to 5.19.030.. “Officer” means any of the following: A. The chief executive officer of an entity engaged in a Commercial Cannabis Business. B. A member of the board of directors of an entity engaged in a Commercial Cannabis Business. C. A Person participating in the direction or control of an Applicant for a City License or any Owner of a Commercial Cannabis Business within the City. “Owner” means any of the following: A. In the context of a Commercial Cannabis Business, a Person with an aggregate ownership interest, direct or indirect, of ten percent (10%) or more in a Commercial Cannabis Business, whether a partner, shareholder, member, or the like, including any security, lien, or encumbrance in an ownership interest that, upon default, could become an ownership interest of 10% or more in a Commercial Cannabis Business. B. In the context of a Premises, a Person with an aggregate ownership or long-term lease interest, direct or indirect, of ten percent (10%) or more in the Premises, whether as a partner, shareholder, member, joint tenant or the like. 2018-11-27 Agenda Packet Page 53 Ordinance Page 7 “Operation” means any act for which licensure is required under the provisions of this Chapter or State Laws, or any commercial transfer of Cannabis or Cannabis Product. “Patient or Qualified Patient” means a person who is entitled to the protections of California Health & Safety Code Section 11362.5 as further provided in California Health & Safety Code Section 11362.7. “Person” means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination of persons acting as a unit. “Pipeline Project” means a proposed use or project for which the City has received all required applications, and required supporting information and documents, and which has been entered into the City’s project tracking system. “Police Chief” means the Chief of the Chula Vista Police Department, or his/her designee. “Premises” for Commercial Cannabis Activity means the designated structure or structures and land, or portions thereof, specified in an application for a City License or, if a City License is issued, that is owned, leased, or otherwise held under the control of the City Licensee, and is designated as the structure or structures and land, or portions thereof where the Commercial Cannabis Activity will be or is conducted. “Private Parks” means privately owned outdoor premises, available for community use, containing recreational areas or playground equipment, including tot-lots, swings, or similar equipment, designed for use by Minors. Where a Private Park is located within a parcel containing other uses, the Private Park premises shall be defined as the area within which all recreational areas or playground equipment designed for use by Minors is contained. “Public Parks” means outdoor premises containing existing or proposed parks, including community parks, neighborhood parks, mini-parks, and urban parks that are currently or proposed to be owned or operated by the City or other governmental agency. “Public Street” is any public right-of-way designated for vehicular use. “Purchaser” means the Customer who is engaged in a transaction with a Commercial Cannabis Business for purposes of obtaining Cannabis or Cannabis Products. “Residential Zone” means an R-1, R-2, or R-3 zone, or an equivalent residential zone within a City approved Sectional Planning Area plan or Specific Plan, in each case within which residential uses are allowed by right and commercial uses are allowed only as accessory uses. “Sell” and “Sale” mean any transaction whereby, for any consideration, title to Cannabis or Cannabis Products is transferred from one person to another, and includes the Delivery of Cannabis or Cannabis Products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same. “State” means the State of California. 2018-11-27 Agenda Packet Page 54 Ordinance Page 8 “State Laws” means the laws of the State of California, which includes, but are not limited to, California Health and Safety Code Sections 11000, et seq.; California Health and Safety Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7, et seq.(Medical Marijuana Program); California Health and Safety Code Sections 26000, et seq.(Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August, 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all State regulations adopted pursuant to MAUCRSA; and all other applicable laws of the State of California. “State License” means a license issued by the State of California, or one of its departments or divisions, under State Laws to engage in Commercial Cannabis Activity. License includes both an “A-license” (adult use) and an “M-license” (medicinal use), as defined by States Laws, as well as a testing laboratory license. “State Licensee” means any Person holding a State License. “Storefront Retailer” means a Person that offers Cannabis, Cannabis Products, or devices for the use thereof, either individually or in any combination, for retail sale to Customers exclusively at Premises providing access to the public. A City License is required to operate a Storefront Retailer Business pursuant to 5.19.030. “Testing Laboratory” means a laboratory, facility, or entity in the State that offers or performs tests of Cannabis or Cannabis Products and that is both of the following: A. Accredited by an accrediting body that is independent from all other persons involved in Commercial Cannabis Activity in the State; and B. Licensed by the State. A City License is required to operate a Testing Laboratory pursuant to 5.19.030. “Testor” means a Licensee that offers or performs tests of Cannabis or Cannabis Products at a Testing Laboratory. “Topical Cannabis” means a product intended for external application and/or absorption through the skin. A Topical Cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code. “Transport” means transfer of Cannabis or Cannabis Products from the Premises of one Licensee to the Premises of another Licensee, for the purposes of conducting Commercial Cannabis Activity authorized by State Laws and this Chapter. “Treatment Center” means a medical treatment or counseling facility licensed by the California Department of Health Care Services and located outside of a residential zone that treats five or more persons with substance abuse conditions in one calendar year. 2018-11-27 Agenda Packet Page 55 Ordinance Page 9 “Youth” means an individual under 21 years of age. “Youth Center” means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. “Youth-Oriented Business” means any for-profit or non-profit business where the majority of individuals who patronize, congregate, or assemble at the business location are less than 21 years old. 5.19.030 City License Required. A. No Person may engage in any Commercial Cannabis Business and/or in any Commercial Cannabis Activity within the City unless that Person: (1) has a valid State License authorizing such business or activity; (2) has a valid City License authorizing such business or activity; and (3) is currently in compliance with all other applicable state and local laws and regulations pertaining to such business or activity. No City License will be available for issuance until, at the earliest, January 1, 2019. Except as expressly authorized in this Chapter, all Commercial Cannabis Businesses and Commercial Cannabis Activities are prohibited within the City. B. Notwithstanding the foregoing, the Delivery of Cannabis or Cannabis Product originating from a Commercial Cannabis Business licensed in accordance with California Business and Professions Code section 26050(a)(17) is permitted without a City License, so long as the Delivery originates from a licensed Commercial Cannabis Business outside the City of Chula Vista, and is conducted in accordance with all codified and administrative state and local laws and regulations, including but not limited to the requirements of section 5.19.100.C below. 5.19.040 Maximum Number and Types of Authorized City Licenses. Commencing January 1, 2019, the authorized number of City Licenses for each type of Commercial Cannabis Business available for issuance within the City shall be as follows: A. Storefront and Non-Storefront Retailer Licenses: Twelve (12) total, with no more than three (3) City Licenses available for Operation within each Council District. Of the three (3) City Licenses available for Operation within each Council District, no more than two (2) City Licenses shall be available for Storefront Retailers. B. Indoor Cultivator: Ten (10) total City Licenses. Each Cultivator License shall be limited to a maximum of 20,000 total square feet of Canopy. C. Other License Types: The City is also authorized to issue, without numerical limit, City Licenses for the following Commercial Cannabis Businesses: 1. Manufacturer; 2. Distributor; and 3. Testing Laboratory. D. Storefront Retailer City Licenses shall be limited to A-Licensees only. All other City License types may be available to A-Licensees and M-Licensees. 2018-11-27 Agenda Packet Page 56 Ordinance Page 10 E. No City License shall issue for any Commercial Cannabis Business type other than those identified in subsections (A) through (C) above. F. The City shall take no action to increase the maximum number of authorized Storefront Retail Licenses until July 1, 2020. After July 1, 2020, the City Council may consider increasing the maximum number of authorized Storefront Retail Licenses, but only after receiving and considering a report from the City Manager regarding any observed or projected adverse impacts on the community from such businesses. G. The City Council may make a referral to the City Manager at any time for a recommendation on if and how the City should decrease the total number of City Licenses for any or all types of Commercial Cannabis Businesses, or to impose a cap on previously uncapped license types. If the City Council proceeds with a decrease in the total number of City Licenses for any or all types of Commercial Cannabis Businesses within the City, any such action shall include provisions for determining which, if any, existing City Licenses shall be eliminated and when Operations for eliminated City Licenses shall cease. 5.19.050 City License Application Process. The following procedures shall govern the application process for the issuance of any City License under this Chapter. A. Phase One Application Process 1. Application Requirements. Any Applicant seeking to obtain a City License to operate a Commercial Cannabis Business within the City shall submit a Phase One Application to the City, signed under penalty of perjury, using the form adopted by the City for that purpose. Among other information, each Phase One Application must contain the following: a. Applicant’s name, address, telephone number, and e-mail address; b. Names and addresses of all Owners of the Commercial Cannabis Business, Officers, and Managers. c. If any Applicant or Owner of the Commercial Cannabis Business is a business entity or any other form of entity, the entity’s legal status, formation documents, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as applicable. d. The type of City License the Applicant is seeking. e. A description of any and all Commercial Cannabis Activity engaged in as an owner, manager, lender, employee, volunteer, or agent by the Applicant and all Owners of the Commercial Cannabis Business, Officers, and Managers over the previous 5 years, including, but not limited to, the location of such activity and a copy of any permits, licenses, or other written forms of permission for such activity by a local or state government entity. An Applicant for a Storefront Retailer, Non-Storefront Retailer, Manufacturer, or Cultivator City License must demonstrate each of the following: i. That at least one Manager has hadone of the following types of experience: 2018-11-27 Agenda Packet Page 57 Ordinance Page 11 (A) a minimum of twelve (12) consecutive months, within the previous 5 years, as a Manager with managerial oversight or direct engagement been directly engaged in the day-to- day operation of a lawful Commercial Cannabis Business for a minimum of twelve (12) consecutive months, within the previous 5 years, in a jurisdiction permitting such Commercial Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Activity demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is applying; or (B) a minimum of sixty (60) consecutive months, within the previous 7 years, as a Manager with managerial oversight and direct engagement in the day-to-day operation of a lawful pharmaceutical business licensed and regulated by a state or the federal government. The 60 months of experience demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is applying; and ii. That at least one Owner of the Commercial Cannabis Business has one of the following types of experience: (A) a minimum of twelve (12) consecutive months as an Owner of a Commercial Cannabis Business, within the previous 5 years, in a jurisdiction permitting such Commercial Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Business ownership demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is applying; or (B) a minimum of thirty-six (36) consecutive months as an owner with an aggregate ownership of 30% or more in a lawful alcohol or pharmaceutical business licensed and regulated by a state or the federal government. The 36 months of experience demonstrated must be of a type substantially similar to that allowed by the City License for which the applicant is applying; or (C) a minimum of thirty-six (36) consecutive months as an owner with an aggregate ownership interest of 30% or more in a lawful, properly licensed business with an average of ten (10) or more employees located within the City, thereby demonstrating a record of experience, familiarity and compliance with City rules and regulations. f. Documentation demonstrating a minimum of $250,000 in Liquid Assets available under the Applicant’s control. g. A business plan that contains, at a minimum, the following: a defined scope of planning and capital improvements; estimated revenues and expenses; and a demonstrated ability to operate in a highly regulated industry. h. An operating plan that contains, at a minimum, the following: provisions: capacity to comply with State and local laws and regulations; for adequate staffing, security, and employee training, consumer education;, effective exterior and interior customer flow management, if applicable; compatibility with the surrounding neighborhood; community outreach; and environmental sustainabilityand compliance with State and local laws and regulations. 2018-11-27 Agenda Packet Page 58 Ordinance Page 12 i. Submission by each individual Applicant, Owner of the Commercial Cannabis Business, Officer, and Manager of fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. If the Applicant or any Owner of the Commercial Cannabis Business or Manager is an entity, the Police Chief, in his/her discretion, may require individual employees, officers, members, representatives, or partners of each entity to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. j. A statement, under penalty of perjury, by each individual Applicant, Owner of the Commercial Cannabis Business, Officer, and Manager, that all information provided thereby is true and correct and that he/she has not conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. k. If an individual Applicant, Owner of the Commercial Cannabis Business, Officer, or Manager, or any entity such individual has been associated with in such capacity, has been denied authorization to conduct Commercial Cannabis Activity in any jurisdiction and/or such Person’s authorization to conduct Commercial Cannabis Activity in any jurisdiction has been suspended or revoked at any time, a description of each denial, suspension and/or revocation and documentation demonstrating a material change in circumstances since such denial, suspension, or revocation. l. For an Applicant with 10 or more employees, a statement that the Applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a Labor Peace Agreement. m. The Finance Director or Police Chief may request such additional information, as he/she deems necessary including documents, from the Applicant to evaluate Applicant’s qualifications. If the Applicant fails to provide such additional information in the time allotted, the Application shall be considered abandoned. 2. Site Identification. Phase One Applicants must also identify and submit a proposed site for its proposed Commercial Cannabis Business. Such submittal shall include the address and a general description of the proposed site location. In the event the site will be leased or acquired from another Person, the Applicant shall be required to provide a signed and notarized statement from the Owner(s) of the site on a form approved by the City acknowledging that the Owner(s) of the site: (a) has read this Chapter; (b) acknowledges and agrees to comply with all Premises Owner requirements set forth herein; and (c) the site is available for the operation of the Commercial Cannabis Business on terms already agreed to or to be negotiated with the Applicant that are or shall be consistent with the requirements of this Chapter. 3. Application Fee. The Phase One Application shall be accompanied by a nonrefundable application fee established by resolution of the City Council. 4. Initial Application Review by Finance Director. The Phase One Application shall be reviewed by the Finance Director for completeness and to determine if City’s minimum City License qualifications have been satisfied. Phase One Applications may be rejected by the Finance Director for any of the following reasons in his/her discretion: 2018-11-27 Agenda Packet Page 59 Ordinance Page 13 a. The application is received after the designated time and date; b. The application is not in the required form and/or is incomplete. A Phase One Application shall not be considered complete until the Finance Director has: (i) determined that all requirements of the application have been provided to the city; (ii) received the nonrefundable Phase One application fee; and (iii) obtained all other information the Finance Director determines necessary to make a decision whether the Application meets the requirements of State Laws or this Code. c. The Applicant has failed to pay the application fee required by this Chapter and specified by City Council resolution; d. The Applicant has failed to demonstrate the financial capacity to operate its proposed Commercial Cannabis Business and to fulfill its obligations under this Chapter. e. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process. f. The Applicant, an Owner of the Commercial Cannabis Business, Officer, or Manager is under twenty-one years of age. g. The Applicant or any Owner of the Commercial Cannabis Business is an entity that is incorporated outside of the United States. h. The Applicant has failed to demonstrate the minimum experience required in accordance with section 5.19.050.A.1.e, above. i. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager, has had his/her/its authorization to conduct Commercial Cannabis Activity in any jurisdiction suspended or revoked at any time, and such person has not demonstrated a material change in circumstances or corrective action since such suspension, and/or revocation. 5. Application Review by Police Chief. Phase One applications accepted by the Finance Director as minimally qualified shall be forwarded to the Police Chief for review and completion of any and all required background checks. Phase One Applications may be rejected by the Police Chief for any of the following reasons in his/her discretion: a. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process; b. The Applicant, any Owner of the Commercial Cannabis Business, Manager, or Officer, or any other individual identified pursuant to 5.19.050.A.1.i has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. c. The Applicant or any Owner of the Commercial Cannabis Business, Officer, or Manager has been convicted of a felony. 2018-11-27 Agenda Packet Page 60 Ordinance Page 14 d. The Applicant or any Owner of the Commercial Cannabis Business, Officer, or Manager has been convicted of any Crime of Moral Turpitude or any offense involving the use of a weapon. e. There are charges pending against the Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. f. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager has been adversely sanctioned or penalized by the City, or any other city, county, or state, for a material violation of state or local laws or regulations related to Commercial Cannabis Activity or to pharmaceutical or alcohol licensure. g. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. 6. Notice of Decision. The Finance Director or Police Chief shall serve the Applicant, either personally or by first class mail addressed to the address listed on the application, with dated written notice of the decision to approve or reject the Phase One Application. This notice shall state the reasons for the action, the effective date of the decision, and the right of the Applicant to appeal the decision to the City Manager. The City Manager’s determination regarding the Phase One Application shall be final. The City Manager shall provide dated written notice to the Applicant, either personally or by first class mail addressed to the address listed on the application, of the City Manager’s determination and the right of the Applicant to seek judicial review of the City Manager’s determination. 7. Invitation to Submit Phase Two Application; Merit-Based System. Applicants who are approved by the Finance Director and Police Chief under the Phase One Application process, or by the City Manager upon appeal, shall be deemed qualified to submit a Phase Two Application. If the number of deemed “qualified” Phase One Applicants for Storefront Retail or Non- Storefront Retail Licenses exceeds the number of available City Licenses for those license types, a merit-based system established by the City shall be used to determine which of the qualified Applicants is invited to submit a Phase Two Application. 8. Phase One Approvals Valid for Six Months. Phase One approvals shall be valid for a maximum period of six (6) months in order to allow the Applicant to complete the Phase Two process. City regulations issued pursuant to this Chapter, may provide for extensions of this time periods in limited, defined circumstances. B. Phase Two Application Process 1. Application Requirements. The Phase Two Application shall be submitted in writing, signed under penalty of perjury, using the form adopted by the City for that purpose. Among other information, each Phase Two Application must contain the following: a. Proposed Premises location and description. 2018-11-27 Agenda Packet Page 61 Ordinance Page 15 b. Information and diagrams demonstrating that the proposed Premises location complies with the applicable locational requirements of this Chapter, the City’s zoning code, and State Laws. c. Identification of all Owners of the proposed Premises location and a copy of all agreements for site control. d. Submission by each individual Owner of the proposed Premises location of fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. If an Owner of the Proposed Premises location is an entity, the Police Chief, in his/her discretion, may require individual employees, officers, members, representatives, or partners of each entity to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. e. Proposed emergency action and fire prevention plan that includes, at a minimum, employee roles and responsibilities; emergency notification and egress procedures; fire hazard identification, maintenance, and procedures; and fire and life safety system identification, maintenance, and procedures. f. Proposed security plan that includes, at a minimum, employee roles and responsibilities; entry/exit security and procedures; security guard coverage and duties; lighting, alarm, and camera placement and operation; limited-access area identification and procedures; cash handling processes and procedures, and demonstrates compliance with section 5.19.160. g. Information required or necessary to demonstrate the ability to comply with the applicable operational requirements set forth in sections 5.19.080 through 5.19.140, as applicable. 2. Application Fee. The Phase Two Application shall be accompanied by a non-refundable application fee established by resolution of the City Council. 3. Site Approval. As part of the application process, the Applicant shall be required to obtain all required land use approvals from the City and/or any other governmental agency with jurisdiction, including a certification from the Development Services Director certifying that the business is an allowed use in the zone where it is located, and the proposed site meets all of the requirements of this Chapter and Title 19 of this Code. 4. Site Control. As a condition precedent to the City’s issuance of a City License pursuant to this Chapter, in the event the Premises will be leased from another Person, the Applicant shall be required to provide a signed and notarized statement from the Owner(s) of the Premises on a form approved by the City acknowledging that the Owner(s) of the Premises: (a) has read this Chapter; (b) acknowledges and agrees to comply with all Premises Owner requirements set forth herein; and (c) the site is available for the operation of the Commercial Cannabis Business on terms agreed to with the Applicant that are consistent with the requirements of this Chapter. 5. Application Review by Development Services Director, Fire Chief, and Police Chief. Phase Two Applications shall be reviewed and are subject to approval by the Development Services 2018-11-27 Agenda Packet Page 62 Ordinance Page 16 Director, the Fire Chief and the Police Chief. A Phase Two Application may be rejected by the Development Services Director, Fire Chief, and/or Police Chief for any of the following reasons: a. The application is received after the designated time and date; b. The application is not in the required form and/or is incomplete. A Phase Two Application shall not be considered complete until the Development Services Director, Fire Chief, and Police Chief have: (i) determined that all requirements of the application have been provided to the city; (ii) received the nonrefundable Phase Two application fee; and (iii) obtained all other information the Development Services Director, Fire Chief, and Police Chief determine is necessary to make a decision whether the application meets the requirements of State Laws or this Code. c. The application fails to demonstrate that the proposed Premises location complies with this Chapter, the City’s zoning code, and State Laws. d. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process; e. An Owner of the proposed Premises location or any other individual identified pursuant to 5.19.050.B.1.d has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. f. An Owner of the proposed Premises location has been convicted of a felony. g. An Owner of the proposed Premises location has been convicted of any Crime of Moral Turpitude or any offense involving the use of a weapon. h. There are charges pending against an Owner of the proposed Premises location for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. i. An Owner of the proposed Premises location has been adversely sanctioned or penalized by City, or any other city, county, or state, for a material violation of state or local laws related to Commercial Cannabis Activity. j. An Owner of the proposed Premises location has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. 6. Notice of Decision. The Development Services Director, Fire Chief, or Police Chief shall serve the Applicant, either personally or by first class mail addressed to the address listed on the application, with dated written notice of the decision to approve or reject the Phase Two Application. This notice shall state the reasons for the action, the effective date of the decision, and the right of the Applicant to appeal the decision to the City Manager. The City Manager’s determination regarding the Phase Two Application shall be final. The City Manager shall provide dated written notice to the Applicant, either personally or by first class mail addressed to the address listed on the application, of the City Manager’s determination and the right of the Applicant to seek judicial review of the City Manager’s determination. 2018-11-27 Agenda Packet Page 63 Ordinance Page 17 7. Conditional City Approval Valid for Six Months. Upon obtaining final approval of a Phase Two Application, an applicant shall be issued a conditional City approval. The conditional City approval shall be valid for a period of six (6) months to allow the Applicant to take all necessary actions to open its Commercial Cannabis Business. If the business is not fully permitted and operating by the end of this six (6) month period (the “Conditional Approval Period”), the conditional City approval will be void without the need for further action by the City. Notwithstanding the foregoing, if the only remaining action necessary for an Applicant holding a conditional City approval is the State’s determination on such Applicant’s pending State License application, the validity of the conditional City approval shall be extended until the earlier to occur of: (a) the State’s determination on the issuance of the pending State License application, or (b) the date falling 6 months after the expiration of the Conditional Approval Period. City regulations issued pursuant to this Chapter may provide for other extensions of the Conditional Approval Period in limited, defined circumstances. 8. Pipeline Projects; Priority Regulations to be Issued. Prior to commencing the application process for City Licenses, City will develop and issue regulations to establish and clarify development rights priorities between, on the one hand, Commercial Cannabis Businesses, and, on the other hand, uses and businesses with separation requirements with respect to Commercial Cannabis Businesses. Regulations shall include, among other things, provisions applicable to Pipeline Projects and Existing Residential Uses. C. Requirements Prior to Commencement of Operation. Prior to commencing Operations under a City License, in addition to any and all other applicable State and local requirements, a City Licensee must comply with the following requirements: 1. Fees and Charges. Pay in full all fees and charges required for the Operation of a Commercial Cannabis Activity. Fees and charges associated with the Operation of a Commercial Cannabis Business shall be established by resolution of the City Council which may be amended from time to time. 2. Business License Tax. Pay to the City a business license tax as required by Code Chapter 5.02. 3. Permits and Approvals. Obtain all applicable planning, zoning, building, and other applicable licenses, permits, and approvals from the relevant City department or division that may be applicable to the Premises and the zoning district in which such business will be located. 4. Final Security Plan Approval. Obtain final security plan approval from the Police Chief for the Premises and Operation of the Commercial Cannabis Business. 5. Final Emergency Action and Fire Prevention Plan Approval. Obtain final safety approval from the Fire Chief for the Premises and Operation of the Commercial Cannabis Business. 6. Employee Work Permits. Obtain from the Police Chief work permits for each employee of the Commercial Cannabis Business whose name did not appear on an Application for a City License. Each employee shall submit their application for such work permit to the Police Chief, which application shall be under oath and shall include, among other things, the name, address, proposed job title, and past criminal record, if any, of the employee and shall be accompanied by 2018-11-27 Agenda Packet Page 64 Ordinance Page 18 the fingerprints of the employee. An application for an employee work permit shall be accompanied by the required fee(s) or the required renewal fee(s). The work permit, when issued, shall be valid for one year. The Police Chief may revoke, deny, or not renew any employee work permit upon finding that any of the factors apply: a. The employee has made a false, misleading or fraudulent statement or omission of fact in the employee work permit application or renewal application; b. The employee is under twenty-one years of age; c. The employee has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. d. The employee has been convicted of a felony. e. The employee has been convicted of any Crime of Moral Turpitude or any offense involving the use of a weapon. f. There are charges pending against the employee for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. g. The employee has been adversely sanctioned or penalized by the City, or any other city, county, or state, for a material violation of state or local laws or regulations related to Commercial Cannabis Activity or to pharmaceutical or alcohol licensure. h. The employee has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction. i. The employee has failed to comply with any requirement imposed by the provisions of this Code (or successor provision or provisions) including any rule, regulation, condition or standard adopted pursuant to this Chapter, or any term or condition imposed on the City License, or any provision of local or State Laws and/or regulations. j. The employee has been adversely sanctioned or fined for, charged with, or found guilty of or pled guilty or no contest to a charge of operating a Commercial Cannabis Business without the necessary licenses and approvals from the applicable state and/or local jurisdiction.outlined in sections 5.19.050.A.3 through A.4 and/or sections 5.19.270.F through .H apply. 7. State License. Submit proof that the necessary State License has been obtained and that Applicant remains in good standing thereunder. 8. Agreement. Submit a fully executed agreement as required by section 5.19.070. 9. Insurance. Submit proof of insurance at coverage limits and with conditions thereon determined necessary and appropriate by the City’s insurance and claims administrator. 10. Operational Requirements. Demonstrate compliance with any and all pre-opening operational requirements that may apply as specified in section 5.19.080 through 5.19.140, below, and the ability to comply with and all applicable and ongoing operational requirements. 2018-11-27 Agenda Packet Page 65 Ordinance Page 19 D. General Rules. 1. If a Phase One or Phase Two application is denied or a corresponding conditional City License expires, no Applicant or Person named therein will be qualified to submit a new Phase One application until the passage of one year from the date of the denial or expiration. 2. Phase One and Phase Two applications shall include such supplemental materials as required by the rules and regulations adopted pursuant hereto. The City may, at the City Manager’s discretion, require additional documentation associated with any application as may be necessary to enforce the requirements of State Laws and this Code. 3. Applicants shall have no right to operate under a City License until a City License is actually issued thereto by the City. Each Applicant assumes the risk that, at any time prior to the issuance of a license, the City Council may terminate or delay the program created under this Chapter. 4. Issuance of a City License does not create a land use entitlement. Furthermore, no City License will be officially issued and no Applicant awarded a City License may begin operations until the City Licensee is fully in compliance with all state and local laws and regulations, including but not limited to State Laws. 5. The City reserves the right to reject or approve any and all applications and conditional licenses based on the standards set forth in this Chapter, or otherwise in its sole discretion, taking into account the health, safety and welfare of the community, and in accordance with its general police powers authority. E. Limits on Number of Applications Per Applicant/Owner. The number of applications allowed to be filed by each Applicant/Owner shall be determined by regulations promulgated by the City Council or the City Manager. Limits imposed, if any, may be applied on an overall basis, per license type, and/or per Council District. 5.19.060 Location Requirements for Cannabis Businesses As set forth above in Code Section 5.19.030, a limited number of City Licenses for Commercial Cannabis Businesses shall be authorized and issued by the City. In locating such businesses, City Licensees shall be further subject to the following requirements. A. In General. The licensed Premises of a Commercial Cannabis Business shall be a contiguous, fully enclosed area and shall be occupied only by one Licensee. B. Storefront Retailers. 1. Allowed Zones. Subject to the separation requirements set forth below, Storefront Retailers shall only be allowed in the following zones: (a) C-0 Administrative and Professional Office; (b) C-N Neighborhood Commercial; (c) C-C Central Commercial; (d) C-V Visitor Commercial; (e) C-T Thoroughfare Commercial; (f) other Commercial Zones in Specific Plans or Sectional Planning Area Plans that allow retail sales uses (including such zones that allow mixed commercial and residential uses); and (g) with a Conditional Use Permit, in the following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and 2018-11-27 Agenda Packet Page 66 Ordinance Page 20 equivalent Industrial Zones in Specific Plans or Sectional Planning Area Plans that allow industrial uses. 2. Special Rules for Storefront Retailers in Industrial Zones. In addition to any and all other applicable Code requirements, Storefront Retailers proposed to be located in Industrial Zones (a) must be located in buildings with entrances that face, and are within 100 feet of a Public Street; and (b) must comply with parking and sign regulations applicable to retail sales businesses in commercial zones. 3. Separation Requirements. a. Storefront Retailers shall not be locatedlocate within 1,000 feet of any Day Care Center or any public or private school providing instruction for kindergarten or any grades 1 through 12. b. Storefront Retailers shall not be locatednot locate within 600 feet of any Treatment Facility, Youth Center, Youth-Oriented Business, Public Park, or Private Park. c. Storefront Retailers shall not be locatedlocate within 150 feet of any Residential Zone. 4. Retail Sales Requirements Apply. Storefront Retailers are retail sales uses for purpose of the Code. Except as otherwise provided in this Chapter, all retail sales use requirements for the allowed zone in which the business is located shall apply. C. Non-Storefront Retailers. 1. Allowed Zones. Subject to the separation requirements set forth below, Non-Storefront Retailers shall only be allowed in following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and equivalent Industrial Zones in Specific Plans or Sectional Planning Area Plans that allow industrial uses. 2. Separation Requirements. Non-Storefront Retailers shall not be locatedlocate within 150 feet of any Residential Zone. 3. Industrial Use Requirements Apply. Non-Storefront Retailers are industrial uses for the purpose of the Code. Except as otherwise provided in this Chapter, all industrial use requirements for the allowed zone in which the business is located shall apply. D. Manufacturers; Distributors; Testing Laboratories; and Cultivators. 1. Allowed Zones. Subject to the separation requirements set forth herein, below, Manufacturers, Distributors, Testing Laboratories, and Cultivators shall be allowed in following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and equivalent Industrial Zones in Specific Plans or Sectional Planning Area Plans that allow industrial uses. 2. Separation Requirements. No Manufacturer, Distributor, Testing Laboratory or Cultivator shall be located within 150 feet of any zone allowing residential uses. 3. Industrial Use Requirements Apply. Manufacturers, Distributors, Testing Laboratories, and Cultivators are industrial uses for the purpose of the Code. Except as otherwise provided in this 2018-11-27 Agenda Packet Page 67 Ordinance Page 21 Chapter, all industrial use requirements for the allowed zone in which the business is located shall apply. E. Standards for Measurement of Separation Distances. For purposes of this Section, separation distances between uses shall be measured as follows: 1. Measuring Points Established. Separation distance between uses shall be measured horizontally in a continuous series of straight lines that connect the two closest “measuring points” of each business or use as set forth herein, below. a. For a Commercial Cannabis Business, the “measuring point” shall be the center point of the public entrance closest to a Public Street. b. For a Day Care Center, Youth Center, Youth Oriented Business, or Treatment Facility, the “measuring point” shall be the center point of the public entrance closest to a Public Street. c. For a public or private school, Public Park, Private Park, or Residential Zone, the “measuring point” shall be the point located on the legal parcel boundary line abutting a Public Street or zone line, as applicable, that is closest to the “measuring point” of the Commercial Cannabis Business at issue. 2. Measurement Paths; Examples. Measurements between public entrances shall start at the “measuring point” of Commercial Cannabis Business and proceed in a continuous line to the closest property line of the Public Street, measured perpendicular to the Public Street. The measurement shall then continue along the property lines of the Public Street fronts, and in a direct line across intersections along the shortest pedestrian route toward the “measuring point” of the separated use until it reaches such “measuring point”. See illustrations below. 2018-11-27 Agenda Packet Page 68 Ordinance Page 22 Measurements between public entrances and legal parcel boundary lines shall start at “measuring point” of the Commercial Cannabis Business and proceed in a continuous line to the closest property line of the Public Street, measured perpendicular to the Public Street. The measurement shall then continue along the property lines of the public street front(s), and in a direct line across intersections along the shortest pedestrian route towards the “measuring point” of the separated use until it reaches such “measuring point”. See illustration below. 2018-11-27 Agenda Packet Page 69 Ordinance Page 23 Where a public or private school, Public Park, Private Park, or residential use or Residential Zone are directly adjacent to or across a Public Street from a Storefront Retailer or Non- Storefront Retailer, the separation distance shall be measured between the respective “measuring points” without regard to a Public Street or intersections. See illustration below. 2018-11-27 Agenda Packet Page 70 Ordinance Page 24 Where a Commercial Cannabis Business and a Day Care Center, Youth Center, Treatment Facility, Youth-Oriented Business or existing residential use are on the same parcel, or contiguous parcels, the separation distance shall be measured in a straight line connecting their “measuring points”. See illustration below. 3. Interpretations, Determinations Made by Development Services Director. Interpretations and determinations of compliance with the requirements of this section and the calculation of separation distances shall be made by the Development Services Director. Exhibits from a Licensed Land Surveyor may be required by the City to make a final decision on compliance with the separation requirements of this subsection. 5.19.070 Limitations on City’s Liability; Licensee’s Indemnity Obligations To the maximum extent allowed by law, the City shall not incur or assume any direct or indirect liability to any Applicant, government agency, or third party as a result of having issued a City License pursuant to this Chapter, or otherwise approving the Operation of any Commercial Cannabis Business. As a condition to the issuance of any City License, the Applicant shall be required to enter into and fulfill all requirements of an agreement, in a form approved by the City Attorney, whereby all Owners agree to (a) indemnify, protect, defend (at Owner’s sole cost and expense), and hold harmless the City, and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses that arise out of, or that are in any way related to, the City’s issuance of the City License, the City’s decision to approve the Operation of the Commercial Cannabis Business or Activity, the process used by the City in making its decision, City Licensee’s Operation of its Commercial Cannabis Business, or the alleged violation of any federal, state or local laws by the Commercial Cannabis Business or any of its officers, employees or agents; and (b) provide evidence of and maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Risk Manager. 2018-11-27 Agenda Packet Page 71 Ordinance Page 25 5.19.080 Operating and Conduct Requirements for All Licensees and Individuals. A. No person shall consume Cannabis and/or Cannabis Products on the Premises of a Commercial Cannabis Business. B. No person shall cause or license the sale, dispensing, or consumption of alcoholic beverages or tobacco products on the Premises of a Commercial Cannabis Business. C. No Cannabis or Cannabis Products shall be visible from the exterior of any Premises issued a City License, or on any of the vehicles owned or used as part of a Commercial Cannabis Business. No outdoor storage of Cannabis or Cannabis Products is permitted at any time. D. Each Commercial Cannabis Business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the Commercial Cannabis Business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The Commercial Cannabis Business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the Finance Director prior to being used by the City Licensee. E. All Cannabis and Cannabis Products sold, tested, distributed or manufactured shall be cultivated, manufactured, and transported by Commercial Cannabis Businesses that maintain operations in full conformance with State Laws, State regulations, local laws, and local regulations. F. All Commercial Cannabis Businesses shall have a Manager on the premises at all times during hours of operation. G. Each Commercial Cannabis Business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site Manager or Owner to whom emergency notice may be provided at any hour of the day. H. Each Commercial Cannabis Business premises shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the Premises or in the areas adjacent to the Commercial Cannabis Business is prohibited. I. Persons under the age of twenty-one (21) years shall not be allowed and are not allowed on the Premises of a Commercial Cannabis Business, and shall not be allowed and are not allowed to serve as a driver for a Non-Storefront Retailer. J. It shall be unlawful and a violation of this Chapter for any Person to employ an individual at a Commercial Cannabis Business who is not at least twenty-one (21) years of age. K. Odor Control. Odor control devices and techniques shall be incorporated in the Premises of all Commercial Cannabis Businesses to ensure that odors from Cannabis are not detectable off- site. Commercial Cannabis Businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the Commercial Cannabis Business that is distinctive to its Operation is not detected outside of the Premises, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, 2018-11-27 Agenda Packet Page 72 Ordinance Page 26 hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the Commercial Cannabis Business. As such, Commercial Cannabis Businesses must install and maintain the following equipment, or any other equipment which the Development Services Director determines is a more effective method or technology: 1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; 2. An air system that creates negative air pressure between the Commercial Cannabis Business’s interior and exterior, so that the odors generated inside the Commercial Cannabis Business are not detectable on the outside of the Commercial Cannabis Business. L. Safety and, Security, and Operating Plans. Each Commercial Cannabis Business must comply with all requirements of the security plan approved by the Police Chief and ; with all safety requirements of the Emergency Action and Fire Prevention Plan approved by the Fire Chief; and with all provisions of the operating plan approved by the Development Services Director. M. Display of City License and City Business License. The original copy of the City License and the City Business License shall be posted inside the Premises of the Commercial Cannabis Business in a location readily-visible to the public. N. Employee Identification. Each and every employee of a City Licensee must, at all times when present on a Premises and while conducting a Delivery, wear an identification badge containing their photograph, age, the name of the City Licensee for whom they are employed, and, if the employee is a Manager, the employee’s job title. O. Delaying or Lingering Prohibited. The City Licensee shall take reasonable steps to prevent individuals from delaying or lingering on the Premises without a lawful purpose. P. Cannabis Use on Premises Prohibited. The City Licensee shall take reasonable steps to prevent the use and consumption of Cannabis or Cannabis Products on the Premises. Q. Licenses and other Approvals. Throughout the Operation of a Commercial Cannabis Business, the City Licensee must maintain all applicable planning, zoning, building, and other applicable licenses, permits, and approvals from the relevant City department or division that may be applicable to the zoning district in which the Commercial Cannabis Business Premises is located. R. Persons with Disabilities. Nothing in this Chapter exempts a Commercial Cannabis Business from complying with all applicable local, State and federal laws and regulations pertaining to persons with disabilities. S. Discrimination. No Commercial Cannabis Business may discriminate or exclude patrons in violation of local, State and federal laws and regulations. T. Fees and Charges. 2018-11-27 Agenda Packet Page 73 Ordinance Page 27 1. No Person may conduct Commercial Cannabis Activity without timely paying in full all fees and charges required associated with the Operation of a Commercial Cannabis Activity. Fees and charges associated with the Operation of a Commercial Cannabis Activity shall be established by resolution of the City Council which may be amended from time to time. 2. City Licensees authorized to Operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State and local law. Each Commercial Cannabis Business shall cooperate with City with respect to any reasonable request to audit the Commercial Cannabis Business’ books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period. U. Training Requirements. City reserves the right to impose training requirements on Managers, employees, and others involved in the Operation of a Commercial Cannabis Business, with the specific requirements to be determined and implemented through regulations. V. Temporary Events Prohibited. Cannabis temporary events, as described in California Business and Professions Code section 26200 as presently adopted or further amended, are prohibited in the City at all times. 5.19.090 Operating Requirements for Storefront Retailers. A. A Storefront Retailer shall not Sell Medicinal Cannabis or Medicinal Cannabis Products. B. A Storefront Retailer shall not conduct Deliveries. C. A Storefront Retailer shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to: 1. A Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Cannabis in a single day to a single customer. 2. A Storefront Retailer shall Sell no more than 8 grams of Cannabis Concentrate, including Cannabis Concentrate contained in Cannabis Products, in a single day to a single customer. 3. A Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single day to a single customer. 4. A Storefront Retailer shall not Sell edible Cannabis Products containing more than 10 milligrams of THC per serving. 5. A Storefront Retailer shall not Sell edible Cannabis Products containing more than 100 milligrams of THC per package. 6. A Storefront Retailer shall not Sell Cannabis Products that is in the shape of a human being, either realistic or caricature, animal, insect, or fruit. 7. A Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or other concentrate with instruction for the preparation of Cannabis-infused beverages. 2018-11-27 Agenda Packet Page 74 Ordinance Page 28 8. A Storefront Retailer shall not provide free Cannabis or Cannabis Products to any Person. 9. A Storefront Retailer shall notify Customers of the following verbally (or by written agreement) and by posting of a notice or notices in a minimum of 24-point font conspicuously within the Storefront Retailer Premises: a. “The sale or diversion of cannabis or cannabis products without a license issued by the City of Chula Vista is a violation of State law and the Chula Vista Municipal Code.” b. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from [Insert Name of Licensee] is a crime and can lead to arrest.” c. “Patrons must immediately leave the premises and not consume cannabis or cannabis products until at home or in an equivalent private location. Staff shall monitor the location and vicinity to ensure compliance.” 10. All restroom facilities on the Premises shall remain locked and under the control of management. 5.19.100 Operating Requirement for Non-Storefront Retailers. A. From a public right-of-way, there should be no exterior evidence of Non-Storefront Retailer Premises except for any signage authorized by this Code. B. The general public is not permitted on the Premises of a City Non-Storefront Retailer Licensee except for the agents, applicants, managers, and employees of the City Non-Storefront Retailer Licensee and any agents or employees of the City. C. A Non-Storefront Retailer shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to: 1. Delivery Regulations. a. All Deliveries of Cannabis or Cannabis Product shall be made by and individual person to an individual person. A Delivery of Cannabis or Cannabis Product shall not be made through the use of an unmanned vehicle. b. A Delivery Employee conducting a Delivery shall only travel in an enclosed motor vehicle operated by a Delivery Employee. c. Delivery of Cannabis or Cannabis Product shall only be made to a physical address (e.g., not to a P.O. Box or a street intersection). d. Delivery of Cannabis or Cannabis Products shall not be made to any public or private school providing instruction for kindergarten or any grades 1 through 12, Day Care Center, Youth Center, Treatment Facility, Youth Center, Youth-Oriented Business, Public Park, or Private Park. Deliveries to any workplace shall remain subject to any employer’s right to limit or prohibit such activity. 2018-11-27 Agenda Packet Page 75 Ordinance Page 29 e. While conducting a Delivery, a Delivery Employee shall ensure the Cannabis or Cannabis Products are not visible to the public. f. A vehicle used for Delivery shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of a Delivery vehicle. g. A Delivery Employee shall, during Deliveries, carry a copy of the Non-Storefront Retailer’s current City License, the Delivery Employee’s government-issued identification, an identification badge issued by the Police Chief, and a Delivery invoice. h. While making a Delivery, a Delivery Employee shall not at any time carry Cannabis and/or Cannabis Goods worth an amount in excess of that authorized by State Laws$3,000 at any time. This value shall be determined using the current retail price of all Cannabis and/or Cannabis Products carried by the Delivery Employee. 2. Product Regulations and Restrictions. a. A Non-Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Adult- Use Cannabis in a single day to a single customer. b. A Non-Storefront Retailer shall Sell no more than 8 grams of Adult-Use Cannabis Concentrate, including Cannabis Concentrate contained in Cannabis Products, in a single day to a single customer. c. A Non-Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single day to a single customer. d. A Non-Storefront Retailer shall not Sell edible Cannabis Products containing more than 10 milligrams of THC per serving. e. A Non-Storefront Retailers shall not Sell edible Cannabis Products containing more than 100 milligrams of THC per package. f. A Non-Storefront Retailer shall not Sell Cannabis Products that are in the shape of a human being, either realistic or caricature, animal, insect, or fruit. g. A Non-Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or other concentrate with instruction for the preparation of Cannabis-infused beverages. h. A Non-Storefront Retailer shall not provide free Cannabis or Cannabis Products to any Person. 5.19.110 Operating Requirements for Cultivators. A. Outdoor Cultivation Prohibited. Commercial Cannabis Cultivation must occur indoors. Outdoor cultivation is prohibited. B. From a public right-of-way, there should be no exterior evidence of Cultivation except for any signage authorized by this Code. 2018-11-27 Agenda Packet Page 76 Ordinance Page 30 C. The general public is not permitted on the Premises of a City Cultivator Licensee except for the agents, applicants, managers, and employees of the City Cultivation Licensee and any agents or employees of the City of Chula Vista. D. A Cultivator shall only be allowed to Cultivate the square feet of Canopy authorized by the Cultivator’s State License and City Cultivation License issued for the Premises. E. A Cultivator shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to: 1. State and local laws related to electricity, water usage, water quality, discharges, and similar matters; and 2. Applicable federal, state and local laws and regulations regarding use, storage, and disposal of pesticides and fertilizers. F. Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. G. Cultivation shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the Commercial Cannabis Business, neighboring properties, and the end users of the Cannabis being Cultivated, to protect the environment from harm to waterways, fish, and wildlife; to ensure the security of the Cannabis being cultivated; and to safeguard against the diversion of Cannabis. H. Cultivators shall provide a fire and life safety technical report to the Fire Department, prepared by a licensed professional engineer, to evaluate the totality of the cannabis operation, including the certification of any equipment. Said report shall be approved by the Fire Department prior to Operation. I. All applicants for a City Cultivation License shall submit the following in addition to the information generally otherwise required for a City License: 1. A Cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the Cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting. 2. A description of a legal water source, irrigation plan, and projected water use. 3. Identification of the source of electrical power and plan for compliance with applicable building codes and related codes as adopted and amended by the City. 4. Plan for addressing odor and other public nuisances that may derive from the Cultivation Premises. 5.19.120 Operating Requirements for Manufacturers. 2018-11-27 Agenda Packet Page 77 Ordinance Page 31 A. From a public right-of-way, there should be no exterior evidence of Manufacturing except for any signage authorized by this Chapter. B. The general public is not permitted on the Premises of a City Manufacture Licensee except for the agents, applicants, Owners, Officers, Managers, employees, and volunteers of the City Manufacture Licensee and any agents or employees of the City of Chula Vista. C. All Manufacturing shall comply with the standards set by State Laws and regulations. D. Any compressed gases used in the manufacturing process shall not be stored on any property within the City of Chula Vista in containers that exceeds the amount that is approved by the Fire Chief and authorized by the City Manufacture License. The Premises of a City Manufacture Licensee shall be limited to a total number of tanks as authorized by the Fire Chief on the Premises at any time. E. Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by the Fire Chief. These solvents must be of at least ninety-nine percent purity and any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. F. If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use. Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number. G. Certification from an engineer licensed by the State of California must be provided to the Fire Chief for a professional grade closed loop system used by any Manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to: 1. The American Society of Mechanical Engineers (ASME); 2. American National Standards Institute (ANSI); 3. Underwriters Laboratories (UL); 4. The American Society for Testing and Materials (ASTM); or 5. Intertek ETL The certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified. H. Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Chief and meet any required fire, safety, and building code requirements specified in the California Building and Fire Codes, as adopted by the City. 2018-11-27 Agenda Packet Page 78 Ordinance Page 32 I. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. J. Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. K. Manufacturers creating Cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. L. Any person using solvents or gases in a closed looped system to create Cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely. M. Parts per million for one gram of finished extract cannot exceed State standards for any residual solvent or gas when quality assurance tested. N. Manufacturers shall provide a fire and life safety technical report to the Fire Department, prepared by a licensed professional engineer, to evaluate the totality of the cannabis operation, including the certification of equipment. Said report shall be approved by the Fire Department prior to Operation. O. A Manufacturer shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. 5.19.130 Operating Requirements for Distributors. A. From a public right-of-way, there should be no exterior evidence of Distributing except for any signage authorized by this Chapter. B. A Distributor shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to: 1. The general public is not permitted on the Premises of the City Distributor Licensee except for the agents, applicants, managers, employees, and volunteers of the City Distributor Licensee and any agents or employees of the City. 2. A Distributor shall only procure, sell, or transport Cannabis or Cannabis Products that is packaged and sealed in tamper-evident packaging that uses a unique identifier, such as a batch and lot number or bar code, to identify and track the Cannabis or Cannabis Products. 3. A Distributor shall maintain a database and provide a list of the individuals and vehicles authorized to conduct transportation on behalf of the Distributor to the City. 4. Individuals authorized to conduct transportation on behalf of the Cannabis Distribution licensee shall have a valid California Driver’s License. 2018-11-27 Agenda Packet Page 79 Ordinance Page 33 5. Individuals transporting Cannabis or Cannabis Products on behalf of the Distributor shall maintain a physical copy of the transportation request (and/or invoice) and shall make it available upon request of agents or employees of the City requesting documentation. 6. During transportation, the individual conducting transportation on behalf of the Distributor shall maintain a copy of the City Distributor License and shall make it available upon request of agents or employees of the City requesting documentation. 7. A Distributor shall only transport Cannabis or Cannabis Products in a vehicle that is (i) insured at or above the legal requirement in California, (ii) capable of securing (locking) the Cannabis or Cannabis Products during transportation, and (iii) capable of being temperature controlled if perishable Cannabis Products are being transported. 5.19.140 Operating Requirements for Testing Laboratories. A. The general public is not permitted on the Premises of a City Testing Laboratory Licensee except for the agents, applicants, managers, and employees of the City Testing Laboratory Licensee and any agents or employees of the City. B. Testing Laboratory activity shall take place within an enclosed locked structure. C. From a public right-of-way, there should be no exterior evidence of a Testing Laboratory except for any signage authorized by this Chapter. D. A Testing Laboratory shall provide a fire and life safety technical report to the Fire Department, prepared by a licensed professional engineer, to evaluate the totality of the cannabis operation, including the certification of any equipment. Said report shall be approved by the Fire Department prior to Operation. E. A Testing Laboratory shall operate in compliance with state and local laws and regulations, including but not limited to State Laws, at all times. 5.19.150 Recordkeeping. A. Each City Licensee shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis at or before the time of the renewal of a City License issued pursuant to this Chapter, or at any time upon reasonable request of the City, each City Licensee shall submit to the City, in a form approved thereby, a statement, sworn as to accuracy, detailing their Commercial Cannabis Business’ revenue and number of sales during the previous twelve-month period, or shorter period based upon the timing of the request, provided on a per-month basis. The statement shall also include gross revenues for each month, and all applicable taxes paid or due to be paid. B. On an annual basis, each City Licensee shall submit to the City Manager a financial audit of the business’ operations conducted by an independent certified public accountant. Each City Licensee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager. C. Each City Licensee shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in 2018-11-27 Agenda Packet Page 80 Ordinance Page 34 each Commercial Cannabis Business, and separately of all the Owners, Officers, Managers, employees, agents and volunteers currently employed or otherwise engaged by the Commercial Cannabis Business. The register required by this paragraph shall be provided to the City Manager promptly upon request. D. All records collected by a City Licensee pursuant to this Chapter shall be maintained for a minimum of seven years and shall be made available by the City Licensee to the agents or employees of the City of Chula Vista upon request, except that private medical records shall be made available only pursuant to a properly executed search warrant, subpoena, or court order. E. All City Licensees shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all Cannabis and Cannabis Products for all stages of the growing, production, manufacturing, laboratory testing, and distribution processes until purchase as set forth under State Law. F. Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) regulations, each City Licensee shall allow City officials to have access to each Commercial Cannabis Business’s books, records, accounts, together with any other data or documents relevant to its Commercial Cannabis Activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than 24 hours after receipt of the City’s request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware. 5.19.160 Security Measures. A. All City Licensees shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing Cannabis or Cannabis Products, and to deter and prevent the theft of Cannabis or Cannabis Products at the Premises of the Commercial Cannabis Business. Except as may otherwise be determined by the Police Chief, these security measures shall include, but shall not be limited to, all of the following: 1. Preventing individuals from remaining on the Premises of the Commercial Cannabis Business if they are not engaging in an activity directly related to the Operations of the Commercial Cannabis Business. 2. Establishing limited access areas accessible only to authorized Commercial Cannabis Business personnel. 3. All Cannabis and Cannabis Products, including Live Plants, shall be kept in a secure manner so as to prevent diversion, theft, and loss. All Cannabis and Cannabis Products that are being stored must be stored in a secured and locked room, safe, or vault. All Cannabis and Cannabis Products on display for Sale shall be displayed in a secure case. 4. Installing 24-hour security surveillance cameras of at least HD-quality to monitor areas on the Premises including, but not limited to: entrances and exits to and from the Premises; all interior spaces which are open and accessible to the public; all interior spaces where Cannabis, cash or currency is being stored for any period of time on a regular basis; all areas where the purchase, Sale, Distribution, or Transfer of Cannabis or Cannabis Products take place; and all 2018-11-27 Agenda Packet Page 81 Ordinance Page 35 exterior and interior spaces where diversion of Cannabis could reasonably occur. The City Licensee shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the Police Chief, and that it is compatible with the City’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the Police Chief. Video recordings shall be maintained for a minimum of 960 days, and shall be made available to the Police Chief upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the Premises of the Commercial Cannabis Business. 5. Sensors shall be installed to detect entry and exit from all secure areas. 6. Panic buttons shall be installed in all Commercial Cannabis Businesses. 7. A professionally installed, maintained, and monitored alarm system, with the required City alarm permit under Chapter 9.06.150 of this Code. 8. Security personnel shall be on the Premises 24 hours a day or alternatively, as authorized by the Police Chief. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the Police chief, with such approval not to be unreasonably withheld. 9. Each Commercial Cannabis Business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. B. Each Commercial Cannabis Business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the Police Chief regarding any security related measures or and operational issues. C. As part of the application and licensing process, each Commercial Cannabis Business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all Cannabis, Cannabis Products, and any currency. D. Each Commercial Cannabis Business shall cooperate with the City whenever the City Manager makes a request, upon reasonable notice to the Commercial Cannabis Business, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter. E. A Commercial Cannabis Business shall notify the Police chief within 24 hours after discovering any of the following: 1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the Police chief. 2. Diversion, theft, loss, or any criminal activity involving the Commercial Cannabis Business or any Owner, Officer, Manager, agent, or employee of the Commercial Cannabis Business. 3. The loss or unauthorized alteration of records related to Cannabis, registering qualifying patients, primary caregivers, or employees or agents of the Commercial Cannabis Business. 4. Any other breach of security. 2018-11-27 Agenda Packet Page 82 Ordinance Page 36 5.19.170 Community Relations. A. Each Commercial Cannabis Business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the Commercial Cannabis Business can be provided in addition to applicable City and State enforcement divisions. Each Commercial Cannabis Business shall also provide the above information to all businesses located within one hundred (100) feet of the Premises of the Commercial Cannabis Business and to all residences located within three hundred (300) feet of the Premises of the Commercial Cannabis Business. B. During the first year of Operation pursuant to this Chapter, the Owner, Manager, and community relations contact from each Commercial Cannabis Business shall attend a quarterly meeting with the City Manager and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of Operation, the Owner, Manager, and community relations contact from each such Commercial Cannabis Business shall meet with the City Manager when and as requested by the City Manager. 5.19.180 Promulgation of Regulations, Standards, and Other Legal Duties. A. In addition to any regulations adopted by the City Council, the City Manager is authorized to establish, consistent with the terms of this Chapter, any additional administrative rules, regulations and standards governing the issuance, denial or renewal of City Licenses; the City’s oversight of the ongoing operation of Commercial Cannabis Businesses; and any other subject determined to be necessary to carry out the purposes of this Chapter. B. Regulations shall be published on the City’s website and maintained and available to the public in the Office of the City Clerk. C. Regulations promulgated by the City Council or the City Manager shall become effective and enforceable upon date of publication on the City’s website or with respect to existing City Licensees, upon the date specified in a written notice to the City Licensee. 5.19.190 Compliance With All Applicable Laws Required. A. Nothing in this Chapter shall be construed as authorizing or condoning any actions that violate federal, state or local law with respect to the operation of a Commercial Cannabis Business. B. It shall be the responsibility of the City Licensees, Owners, Officers, and Managers of a Commercial Cannabis Business to ensure that a Commercial Cannabis Business is, at all times, operating in a manner compliant with all applicable federal, state, and local laws and regulations, including any subsequently enacted state or local law or regulatory, licensing, or certification standards or requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of a State License or a City License. C. Except as otherwise specifically provided herein, this Chapter incorporates the requirements and procedures set forth in State Laws. In the event of a conflict between the provisions of this Chapter and the provisions of State Laws or any other applicable state or local law, the more restrictive provision shall control. To the extent allowed by State Law, the City shall have the right, but not the obligation, to enforce all applicable State Laws. 2018-11-27 Agenda Packet Page 83 Ordinance Page 37 5.19.192 License Holder Responsible for Violations By Employees or Agents. The City Licensee shall be responsible for all violations of the regulations and ordinances of the City committed by the City Licensee, or any employee or agent of the City Licensee. Violations by a City Licensee, or employee or agent of the City Licensee, may result in revocation or non- renewal of the City License. 5.19.194 Fees Deemed Debt to City The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable in any manner authorized by law. 5.19.200 Right of Access & Testing. A. City officials, employees, and their designees authorized to enforce the provisions of the Code shall have full access to the Premises and records of every Commercial Cannabis Business in order to: 1. Inspect the Premises for compliance with the Code and State Laws. 2. Test any equipment possessed by, in control of, or used by a City Licensee, Owner, Officer, or Manager, and any other employee, agent, or volunteer of a City Licensee. 3. Test any Cannabis or Cannabis Product possessed by, in control of, or used by a City Licensee, Owner, Officer or Manager, and any other employee, agent, or volunteer of a City Licensee. 4. Copy any materials, books, or records of any City Licensee, Owner, Officer, or Manager, and any other employee, agent, or volunteer of a City Licensee. B. Failure by any City Licensee, Owner, Officer or Manager to cooperate and participate in any City inspection or investigation under this section shall itself be a violation of this Chapter. C. City officials, employees, and their designees authorized to enforce the provisions of the Code shall have rights of access under subsection (A) during any inspection, investigation, review, audit, or as otherwise allowed by law. D. Prior notice of an inspection, investigation, review, or audit is not required. E. Any inspection, investigation, review, or audit of a City Licensed Premises shall be conducted anytime the City Licensee is exercising privileges under the City License, or as otherwise agreed to by the City or its Manager. F. This subsection shall not be construed to deprive a City Licensee, Owner, Officer, or Manager, or any other employee, agent, or volunteer of a City Licensee of any privileged guaranteed by the Constitutions of the United States and/or the State of California, or any other statutory privileges. 5.19.210 Restrictions on Transfer, Change, or Alteration of City License or City Licensee. A. A City License is valid only as to the City Licensee. No City Licensee is allowed to sell, transfer, pledge, assign, grant an option, or otherwise dispose of (“Transfer”) its City License to any Person except pursuant to the terms of this section. Except as permitted, any such Transfer 2018-11-27 Agenda Packet Page 84 Ordinance Page 38 or attempted Transfer shall be deemed to constitute a voluntary surrender of the City License and such City License shall thereafter be null and void, except as set forth in this Chapter. B. A City Licensee may Transfer less than 50% ownership or control of a City License with prior written approval of the City Manager after submission of all required application materials, payment of applicable fees as set by resolution of City Council, and a determination that the applicants meet the requirements of this Chapter such as to be entitled to the issuance of an original City License. C. A City Licensee may change the form of business entity without applying to the City Manager for a new City License, if the ownership of the new business entity is the same as the original City Licensee business entity. Although a new City License is not required, the City Licensee shall notify the City in writing of the change within 30 days of the change, and obtain an amendment to the original City License after paying the applicable fee set by resolution of the City Council. D. A City Licensee may change the name of the business entity without applying to the City Manager for a new City License. Although a new City License is not required, the City Licensee shall notify the City in writing of the change at least 30 days prior to the change, and obtain an amendment to the original City License after paying the applicable fee set by resolution of the City Council. E. No City Licensee shall be allowed to Transfer all or any portion of its City License prior to twelve (12) months after the City Licensee has opened and continuously operated its Commercial Cannabis Business authorized thereunder. F. No City Licensee shall operate, conduct, manage, engage in, or carry on the business of a Commercial Cannabis Business under any name other than the name of the Commercial Cannabis Business specified in the City License. G. No City Licensee may avail themselves of the provisions of this Section if the City Manager has notified the City Licensee that the City License has been or may be suspended, revoked, or not renewed. H. For purposes of this section, the Transfer of all or any portion of a licensed Commercial Cannabis Business shall constitute the Transfer of the underlying City License. I. Failure to comply with this section constitutes grounds for suspension or revocation of a City License. 5.19.220 Restrictions on Transfer, Change, or Alteration of Location. A. A City License issued under this Chapter is valid only as to the Premises approved in accordance with the City License, and is therefore nontransferable to other locations except as authorized in this section. No City Licensee is authorized to relocate to other areas or units within a building structure without first obtaining written approval from the City Manager, regardless of any possessory interest or right to possession to such additional space. B. No City Licensee shall change the location of the Premises approved in accordance with the City License until any such change of location is approved by the City Manager or his/her 2018-11-27 Agenda Packet Page 85 Ordinance Page 39 designee. The City Manager shall adopt a process (to include any necessary forms and procedures) for Premises relocation that includes, but is not limited to, the following: 1. The City Licensee shall submit a change of location application to the City at least 90 days prior to the proposed change. 2. The proposed location shall meet all of the requirements under this Code, including but not limited to this Chapter and Title 19. 3. The proposed location shall be reviewed and evaluated using review criteria as referenced in Section 5.19.060. 4. The relocation of a City Licensee’s Premises shall be subject to the prior review and approval by the Development Services Director and any and all other licenses, approvals, or permits required under State Law and the Code. C. All required state and City approvals, plan approvals, permits, and licenses must be obtained before causing, allowing, or licensing alterations to, and/or extensions or expansions of, the existing Premises building(s), structure(s), or portions thereof, approved as a location for a Commercial Cannabis Business. Said alterations, extensions, or expansions shall comply with all applicable laws, regulations and standards, including those concerning building safety and occupancy. 5.19.230 Expiration of City License. A City License issued pursuant to this Chapter shall expire twelve (12) months after the date of its issuance. City Licenses may be renewed as provided in Section 5.19.240. 5.19.240 Renewal of City License. A. An application for renewal of a City License shall be filed with the City Manager’s office at least 60 calendar days prior to the expiration date of the current City License. B. Any City Licensee submitting an application less than 60 days before its expiration shall be required to pay a late renewal application fee, as established by resolution of the City Council. Any renewal application filed less than 30 business days before its expiration may be rejected by the City on that basis alone. C. The renewal application shall be submitted on a form issued or approved by the City. D. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs incurred by the City to administer the program created under this Chapter. E. An application for renewal of a City License may be denied if any of the following grounds exists: 1. Any of the grounds for suspension or revocation under section 5.19.260; 2. The City License has been suspended or revoked at the time of the application. 3. The Commercial Cannabis Business has not been in regular and continuous operation in the four months prior to the renewal application. 2018-11-27 Agenda Packet Page 86 Ordinance Page 40 4. The City Licensee fails to or is unable to renew its State License. 5. The City Licensee has made a false, misleading or fraudulent statement or omission of fact as to any information provided to City pursuant to this Chapter. F. The City Manager is authorized to make all decisions concerning the issuance of a renewal license. In making the decision, the City Manager is authorized to impose additional conditions on a renewal license, if it is determined to be necessary to ensure compliance with State or local laws and regulations or to preserve the public health, safety or welfare. G. The City Manager shall serve the City Licensee, either personally or by first class mail addressed to the address listed on the renewal application, with dated written notice of the City Manager’s decision to approve or deny the renewal, and the right of the City Licensee to seek judicial review of the City Manager’s decision. H. If a City Licensee submits the required renewal application, but a written approval from the City has not been received prior to the expiration of the subject City License, such license shall be deemed conditionally renewed until service of the City Manager’s written renewal decision. I. If a renewal application is denied, the City License shall no longer be effective and all related Commercial Cannabis Activity must cease immediately. A Person denied a renewal may file a new application pursuant to this Chapter no sooner than one year from the date of the rejection. 5.19.250 Effect of State License Suspension, Revocation, or Termination. A. Suspension of a State License shall immediately suspend the ability of a Commercial Cannabis Business to operate within the City, until the State of California, or its respective department or division, reinstates or reissues the State License. B. Should the State, or any of its departments or divisions, revoke or terminate a State License, such revocation or termination shall also revoke or terminate the City License and City Licensee’s ability to operate a Commercial Cannabis Business within the City. 5.19.260 Suspension and Revocation of City License. The following may constitute grounds for suspension or revocation of a City License: A. Failure of a City Licensee to comply with any requirement imposed by the provisions of this Code (or successor provision or provisions) including any rule, regulation, condition or standard adopted pursuant to this Chapter, or any term or condition imposed on the City License, or any provision of local or State Laws and/or regulations. Any act or omission of any Owner, Officer, Manager, or employee of a City Licensee constituting a violation of the provisions of this Chapter shall be deemed the act or omission of the City Licensee for purposes of determining whether the City License shall be suspended and/or revoked. B. Any change in the ownership of a City Licensee that does not have City’s prior written approval, if required under this Chapter. C. Revocation of a City Licensee’s State License. D. City is denied access to the Premises or records of a City Licensee. 2018-11-27 Agenda Packet Page 87 Ordinance Page 41 E. The City Licensee, or any of its Owners, Officers, or Managers has been adversely sanctioned or fined for, charged with, or found guilty of or plead guilty or no contest to a charge of operating a Commercial Cannabis Business without the necessary licenses and approvals from the applicable state and/or local jurisdictions. F. Conviction of a City Licensee, Owner, Officer, or Manager for any felony offense. G. Any City Licensee, Owner, Officer or Manager is charged with any of the following: 1. A violent felony, as specified in Section 667.5(c) of the Penal Code. 2. A serious felony, as specified in Section 1192.7(c) of the Penal Code. 3. A felony involving fraud, deceit, or embezzlement. 4. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. 5. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code. 6. A felony or misdemeanor involving the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance occurring after January 1, 2016. If the City Manager determines that a ground for suspension and/or revocation of a City License exists, the City Manager shall give notice of suspension and/or revocation by dated written notice to the City Licensee. The City Manager shall cause the City Licensee to be served, either personally or by first class mail addressed to the address listed on the application, with the written notice suspending or revoking the City License. This notice shall state the reasons for the action, the effective date of the decision, and the right of the City Licensee to appeal the decision. 5.19.270 Advertising and Marketing of Cannabis. A. It is illegal to Market or Advertise within the City Cannabis or Cannabis Products that are not permitted to be sold in the City under State Law or this Chapter. B. Advertising or Marketing is prohibited in the City on any sign located within 1,000 feet of a Day Care Center; school providing instruction in kindergarten or any grades 1 through 12; Youth Center; Youth-Oriented Facility; or Private or Public Park. C. Advertising or Marketing is prohibited in the City on any sign within 1,000 feet of a Treatment Center. D. Advertising or Marketing in the City shall not contain a depiction of an individual under 21 years of age consuming Cannabis or Cannabis Products. E. Advertising or Marketing in the City shall not be Attractive to Youth. 2018-11-27 Agenda Packet Page 88 Ordinance Page 42 F. Advertising or Marketing in the City in a manner that is false or untrue or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a misleading impression, is prohibited. G. Advertisements or Marketing in the City shall not contain any statement concerning a brand or product that is inconsistent with any statement on the labeling thereof. 5.19.280 Enforcement and Penalties. A. It is unlawful to: 1. Operate, conduct, or direct Commercial Cannabis Activity in the City without a valid City License authorizing such Activity; 2. Own, set up, operate, or maintain a Commercial Cannabis Business in the City without a valid City License; 3. Participate as an employee, contractor, agent, volunteer, or in any other capacity in a Commercial Cannabis Business in the City without a valid City License; 3. Use any parcel or any portion of parcel of land as a Commercial Cannabis Business without a valid City License; 4. Lease, rent to, or otherwise allow a Commercial Cannabis Business to occupy any parcel or portion of parcel of land in the City without a valid City License. B. It shall be unlawful for any person to violate any provision, or to fail to comply with the requirements, of this Chapter or any regulation adopted hereunder. Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this Chapter or any regulation adopted hereunder shall be guilty of a misdemeanor punishable by a fine of not more than $1,000.00 or imprisonment for a period of not more than six months, or by both a fine and imprisonment. Each day that a violation continues is deemed to be a new and separate offense. No proof of knowledge, intent, or other mental state is required to establish a violation. C. Any condition caused or allowed to exist in violation of any of the provisions of this Chapter or any regulation adopted hereunder is a public nuisance and may be abated by the City, or by the City Attorney on behalf of the people of the State of California, as a nuisance by means of a restraining order, injunction, or any other order or judgment in law or equity issued by a court of competent jurisdiction. The City, or the City Attorney on behalf of the people of the State of California, may seek injunctive relief to enjoin violations of, or to compel compliance with this Chapter or seek any other relief or remedy available at law or equity, including the imposition of monetary civil penalties. Each day that a violation continues is deemed to be a new and separate offense and subject to a maximum civil penalty of $10,000 for each and every offense. D. Whenever in this Chapter any act or omission is made unlawful, it shall include causing, aiding, abetting, suffering, or concealing the fact of such act or omission. E. The remedies specified in this Section are cumulative and in addition to any other remedies available under State or local law for a violation of this Code. 2018-11-27 Agenda Packet Page 89 Ordinance Page 43 F. Nothing in this Section shall be construed as requiring the City to allow, permit, license, authorize, or otherwise regulate Commercial Cannabis Activity, or as abridging the City’s police power with respect to enforcement regarding Commercial Cannabis Activity. 5.19.290 Effectiveness Conditioned on Passage of Tax Measure. The effectiveness of the ordinance enacting this Chapter is contingent upon voter approval and the continuous legal validity of a tax measure anticipated to be submitted to voters in November 2018. The tax measure would impose an excise tax, in an amount and form yet to be determined, on all Commercial Cannabis Businesses. In the event the proposed tax measure is not approved by the voters, or is suspended or invalidated for any reason, the provisions of this ordinance permitting Commercial Cannabis Businesses shall be void without any further action required by the City. 2018-11-27 Agenda Packet Page 90 P a g e | 1 November 27, 2018 File ID: 18-0538 TITLE ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHAPTER 5.66 OF THE CHULA VISTA MUNICIPAL CODE, WHICH IMPOSED A TOTAL BAN ON COMMERCIAL MARIJUANA ACTIVITY, CONDITIONED UPON EFFECTIVENESS OF CITY’S ORDINANCE BANNING UNLICENSED COMMERCIAL CANNABIS ACTIVITY AS PROVIDED IN CHAPTER 5.19 OF THE CHULA VISTA MUNICIPAL CODE RECOMMENDED ACTION Council place the ordinance on first reading. SUMMARY This proposed ordinance repeals Chula Vista Municipal Code chapter 5.66, which prohibits all commercial marijuana activity in the City of Chula Vista. In its place, Chula Vista Municipal Code chapter 5.19, adopted in March 2018 and scheduled to go into effect on December 4, 2018, will now contain all commercial cannabis municipal code provisions, including those that permit lawful, licensed businesses and prohibit unlicensed activity. ENVIRONMENTAL REVIEW 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/COMMITTEE RECOMMENDATION Not Applicable. DISCUSSION In 2011, the City Council adopted Ordinance 3204, adding chapter 5.66to the Chula Vista Municipal Code. Chapter 5.66 prohibited medical marijuana dispensaries. Chapter 5.66 was last amended in 2017 to prohibit all commercial marijuana activity, both medical and recreational, in the City of Chula Vista. After extensive consideration of commercial cannabis regulation earlier this year, City Council votedin March 2018 to approve Ordinance 3418, which created a licensing and regulatory structure for the operation of lawful cannabis businesses in the City of Chula Vista; such structure is codified in the newly created Chula Vista Municipal Code chapter 5.19. 2018-11-27 Agenda Packet Page 91 P a g e | 2 Section 5.19.290 made the effectiveness of Ordinance 3418 contingent on voter approval of a cannabis tax measure to be placed on the November 2018 ballot. A cannabis tax measure, Measure Q, was ultimately approved by voters and is scheduled to be certified by the City Council on December 4, 2018; such certification will render chapter 5.19 effective, thereby eliminating the purpose and need for chapter 5.66. All enforcement activities against unlawful cannabis businesses that were previously conducted under chapter 5.66 will continue in full force and effect under chapter 5.19. It is Staff’s recommendation at this time that chapter 5.66 be repealed to eliminate any potential contradiction or confusion regarding local laws governing commercial cannabis activity in the City of Chula Vista, and to affirm that all rules and prohibitions regarding commercial cannabis activity will now be codified in Chula Vista Municipal Code chapter 5.19. 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 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 ordinance supports the Operational Excellence goal as it eliminates contradictory municipal code provisions and provides clarity as to local law governing commercial cannabis activity. CURRENT-YEAR FISCAL IMPACT The ordinance repealing chapter 5.66results in no current year fiscal impact to the City. ONGOING FISCAL IMPACT The ordinance repealing chapter 5.66 results in no ongoing fiscal impact to the City. ATTACHMENTS None. Staff Contact: Kelley Bacon; Megan McClurg 2018-11-27 Agenda Packet Page 92 C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@C80E2184\@BCL@C80E2184.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHAPTER 5.66 OF THE CHULA VISTA MUNICIPAL CODE, WHICH IMPOSED A TOTAL BAN ON COMMERCIAL MARIJUANA ACTIVITY, CONDITIONED UPON EFFECTIVENESS OF CITY’S ORDINANCE BANNING UNLICENSED COMMERCIAL CANNABIS ACTIVITY AS PROVIDED IN CHAPTER 5.19 OF THE CHULA VISTA MUNICIPAL CODE WHEREAS, Chula Vista Municipal Code chapter 5.66, last amended by Ordinance 3401 in 2017, prohibits all commercial marijuana activity in the City of Chula Vista; and WHEREAS, Ordinance 3418, which adds chapter 5.19 to the Chula Vista Municipal Code, was adopted by the Chula Vista City Council on March 6, 2018; and WHEREAS, Chula Vista Municipal Code chapter 5.19 details a comprehensive set of requirements, restrictions, and robust enforcement procedures with regard to commercial cannabis activity within the City; and WHEREAS, Chula Vista Municipal Code section 5.19.290 made the effectiveness of the ordinance enacting chapter 5.19 contingent upon voter approval and the continuous legal validity of a tax measure anticipated to be submitted to voters in November 2018; and WHEREAS, Measure Q, a cannabis tax measure submitted to voters in November 2018 was approved by Chula Vista voters and is expected to be certified by the City Council on December 4, 2018; and WHEREAS, it is the intent of the City Council that all rules and prohibitions regarding commercial cannabis be contained in chapter 5.19; and WHEREAS, it is the intent of the City Council that enforcement efforts against unlawful cannabis businesses presently authorized under Chula Vista Municipal Code chapter 5.66 continue in full force and effect under Chula Vista Municipal Code chapter 5.19; NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Chapter 5.66 of the Chula Vista Municipal Code is hereby repealed. Section III. Severability 2018-11-27 Agenda Packet Page 93 Ordinance Page 2 If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section IV. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section V. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VI. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Gary Halbert Glen R. Googins City Manager City Attorney 2018-11-27 Agenda Packet Page 94 P a g e | 1 November 27, 2018 File ID: 18-0436 TITLE RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF VEHICLES THROUGH THE SOURCEWELL COMPETITIVE BID PROCESS A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF ELECTRIC VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 120716-NAF THROUGH THE CLIMATE MAYORS ELECTRIC VEHICLE PURCHASING PROGRAM IN AN AMOUNT NOT-TO-EXCEED TWO MILLION DOLLARS ($2,000,000) THROUGH THE TERM OF THE CONTRACT (JANUARY 2021) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF HEAVY-DUTY AND SPECIALIZED VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 081716-NAF IN AN AMOUNT NOT-TO- EXCEED FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS ($4,500,000) THROUGH THE TERM OF THE CONTRACT (NOVEMBER 2020) C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A 2-YEAR LEASE PURCHASE AGREEMENT WITH NATIONAL COOPERATIVE LEASING IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 032615-NCL FOR THE ACQUISITION OF THIRTY-FOUR (34) ELECTRIC VEHICLES AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT RECOMMENDED ACTION Council adopt the resolutions. SUMMARY The Fleet Service section of the Public Works Department supports the delivery of City services to residents by ensuring the Fire Department, Police Department and Public Services fleet vehicles are ready when needed. Due to the budgetary constraints presented by the recession, the City fleet has retained vehicles beyond their planned replacement criteria. Thirty-four (34) light-duty vehicles have been identified for immediate replacement and are eligible to be replaced by electric vehicles. The City will maximize cost savings through participation in the Climate Mayors Electric Vehicle Purchasing 2018-11-27 Agenda Packet Page 95 P a g e | 2 Collaborative and authorizing a lease agreement for the purchases. Fleet Services has identified twenty- three (23) heavy-duty specialized trucks for replacement. Authorization to utilize Sourcewell cooperative purchasing contracts for the replacement of the heavy-duty trucks will provide savings to the City and is not anticipated to affect local vendors. ENVIRONMENTAL REVIEW 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/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The Fleet Service section of the Public Works Department supports the delivery of City services to residents by ensuring the Fire Department, Police Department and Public Services fleet vehicles are ready when needed. Due to the budgetary constraints presented by the recession, the City fleet has retained vehicles beyond their planned replacement criteria with the availability of Measure P and other financing the City has the unique opportunity to now modernize large portions of the fleet by leveraging collaborative purchasing agreements, electric vehicle technology and lease funding strategies to achieve the City’s environmental sustainability, fiscal responsibility and delivery of service goals. A review of the City fleet identified 34 light-duty vehicles requiring replacement (Attachment 1) that are assigned to department/sections including: Fire Prevention, Police Investigations, Construction Inspection, Building Services, Environmental Services, Construction & Repair and Streets Maintenance. Due to their age, these vehicles experience escalating maintenance costs, increased down-time and decreased reliability. Fleet Services is challenged daily with maintaining adequate up-time for these vehicles due to the preceding factors. The replacement of these failing vehicles with electric vehicles is efficient and economical through participation in the Climate Mayors Electric Vehicle Purchasing Collaborative and will provide the needed level of reliability. Climate Mayors Electric Vehicle Purchasing Collaborative On September 11, 2018, Mayor Mary Casillas Salas, member of the Climate Mayors (group), announced with 19 other founding cities the launch of the Climate Mayors EV Purchasing Collaborative —a turnkey, one-stop online portal providing municipalities across the country equal access to competitively bid electric vehicles. This program provides an opportunity for the City of Chula Vista to demonstrate tangible climate action by replacing old failing fleet vehicles with environmentally and economically sustainable electric vehicles. The following charts summarize two of the anticipated sustainability improvements the electric vehicles will provide over the old vehicles. 2018-11-27 Agenda Packet Page 96 P a g e | 3 The City’s Climate Action Plan has a goal that 40% of the entire fleet will be alternative fuel or electric by 2020. Currently the fleet is 28% alternative fuel/electric and the approval of this purchase will increase this to 31%. Although the environmental sustainability improvements provide benefits that are difficult to monetize, these new vehicles will provide tangible action taken by the City to be a leader in environmental sustainability. In addition to providing environmental benefits, the purchase of the electric vehicles will provide greater fiscal responsibility as well. The operation and maintenance savings are anticipated to result from reduced gasoline use and the need for maintenance parts and supplies related to internal combustion engines. The operational cost savings are exemplified by the following chart that represents an anticipated 61% reduction in fuel expense for these vehicles. Additionally, the Climate Mayors program also provides a method for the City to realize the Federal tax credit for purchasing electric vehicles. This program is an unprecedented cooperation of cities across the country to leverage their collective buying power. The program has incorporated a contract with National Cooperative Leasing that provides a method for the City to obtain the Federal electric vehicle tax credit, further reducing the cost of the vehicle. Heavy-Duty and Specialized Vehicle Cooperative Purchasing The Fleet Services section is currently conducting a review of the heavy-duty and specialized vehicle fleet to identify units requiring replacement. As described previously, these classes of vehicle have exceeded their planned replacement criteria and this condition results in increased down-time and affects the performance of services for the residents. The preliminary review has identified 23 trucks within the Public Services Fleet and includes vehicles assigned to Construction & Repair, Graffiti Removal, Storm Water, Street Maintenance, Striping & Signing, Traffic Signals & Street Lights and Urban Forestry Maintenance. The estimated replacement cost for these Green House Gas EmissionsMiles Per GallonFuel Cost2018-11-27 Agenda Packet Page 97 P a g e | 4 trucks is $2M and includes immediate needs. The approval to utilize the Sourcewell cooperative purchasing contract for these trucks will streamline the procurement process by utilizing already developed request for proposals for national, competitive solicitations that meet or exceed City requirements. The rigorous process is continually refined to best meet member needs and allows the City to obtain exceptional products and services from nationally acclaimed vendors. Benefits of using this process includes: Save time and money by combining the buying power of more than 50,000 government, education, and nonprofit organizations. Sourcewell holds hundreds of competitively solicited cooperative contracts ready for use. Sourcewell facilitates a competitive solicitation and awards process on behalf of its members’ needs and expectations throughout the U.S. and Canada. Electric Vehicle Cooperative Leasing To receive the Federal electric vehicle tax credits, the City will need to enter into a lease agreement for the purchase of these vehicles. The City will lease the vehicles for a period of 24 months and purchase at the end of the lease term. The lease agreement allows the City to maximize available Federal tax credits. Additionally, the State of California has made available rebates for the purchase of electric and hybrid- electric vehicles through the Clean Vehicle Rebate Program. The Federal tax credit and the State rebate can now be compounded to lower the overall purchase cost of each vehicle. The City will continue to make every effort to source vehicles locally that are not specialized or are not in the Climate Mayors Electric Vehicle Purchasing Collaborative. 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 approximately $750,000.00 in the current Fiscal Year. Sufficient funds have been budgeted in the Measure P Expenditure Plan and Departmental budgets. No appropriations are being requested as part of this action. 2018-11-27 Agenda Packet Page 98 P a g e | 5 ONGOING FISCAL IMPACT Since these are more efficient replacement vehicles, there is an anticipated savings to General Fund. Fuel savings and maintenance savings will be incorporated into future budgets as part of the normal budget development process. ATTACHMENTS 1. Proposed Climate Mayors EV Replacement Plan 2.National Corp Leasing Contract 3. Terminal Rental Adjustment Rider Staff Contact: Steven Knapp, Fleet Manager, Public Works 2018-11-27 Agenda Packet Page 99 VEH.#DEPARTMENT DETAIL YEAR AGE MAKE MODEL NEW VEH. DESCRIPTION 1924 CONSTRUCTION INSPECTION 2004 14 CHEVROLET TRAILBLAZER BOLT CARGO 2293 CONSTRUCTION INSPECTION 2002 16 DODGE DAKOTA BOLT CARGO 2294 CONSTRUCTION INSPECTION 2002 16 DODGE DAKOTA BOLT CARGO 1931 CONSTRUCTION INSPECTION 2007 11 DODGE DURANGO OUTLANDER PHEV 2214 CONSTRUCTION INSPECTION 2003 15 DODGE DAKOTA OUTLANDER PHEV 1132 CONSTRUCTION INSPECTION - NPDES 2002 16 FORD TAURUS LX BOLT CARGO 1930 CONSTRUCTION REPAIR 2007 11 FORD ESCAPE HYBRID OUTLANDER PHEV NEW DEVELOPMENT SERVICES N/A N/A N/A N/A OUTLANDER PHEV NEW DEVELOPMENT SERVICES N/A N/A N/A N/A OUTLANDER PHEV 1926 ENVIRONMENTAL SERVICES 2006 12 FORD ESCAPE HYBRID BOLT NEW ENVIRONMENTAL SERVICES N/A N/A N/A N/A BOLT NEW ENVIRONMENTAL SERVICES N/A N/A N/A N/A BOLT 2013 FIRE PREVENTION 2005 13 CHEVROLET COLORADO BOLT 2014 FIRE PREVENTION 2005 13 CHEVROLET COLORADO BOLT 2017 FIRE PREVENTION 2004 14 DODGE DAKOTA BOLT 2018 FIRE PREVENTION 2005 13 CHEVROLET COLORADO BOLT 2020 FIRE PREVENTION 2005 13 CHEVROLET COLORADO BOLT 2121 FIRE PREVENTION 2000 18 CHEVROLET S-10 BOLT 2219 FIRE PREVENTION 2004 14 DODGE DAKOTA BOLT 13815 POLICE - CSO VAN 2008 10 FORD TAURUS X OUTLANDER PHEV 1145 POLICE INVESTIGATIONS 2005 13 FORD TAURUS FUSION ENERGI - PHEV 1147 POLICE INVESTIGATIONS 2005 13 FORD Taurus FUSION ENERGI - PHEV 1153 POLICE INVESTIGATIONS 2007 11 FORD 500 FUSION ENERGI - PHEV 1154 POLICE INVESTIGATIONS 2007 11 FORD 500 FUSION ENERGI - PHEV 1157 POLICE INVESTIGATIONS 2007 11 FORD 500 FUSION ENERGI - PHEV 1158 POLICE INVESTIGATIONS 2008 10 CHEVROLET IMPALA FUSION ENERGI - PHEV 1159 POLICE INVESTIGATIONS 2008 10 CHEVROLET IMPALA FUSION ENERGI - PHEV 1160 POLICE INVESTIGATIONS 2008 10 CHEVROLET IMPALA FUSION ENERGI - PHEV 1161 POLICE INVESTIGATIONS 2008 10 CHEVROLET IMPALA FUSION ENERGI - PHEV 1162 POLICE INVESTIGATIONS 2008 10 CHEVROLET IMPALA FUSION ENERGI - PHEV 1319 POLICE INVESTIGATIONS 2006 12 FORD FREESTAR FUSION ENERGI - PHEV 11001 POLICE INVESTIGATIONS 2010 8 FORD TAURUS FUSION ENERGI - PHEV 11003 POLICE INVESTIGATIONS 2010 8 FORD FUSION FUSION ENERGI - PHEV 2225 STREET MAINTENANCE 2007 11 CHEVROLET C1500 HYBRID OUTLANDER PHEV OLD VEHICLE INFORMATION PROPOSED CLIMATE MAYORS ELECTRIC VEHICLE REPLACEMENT PLAN 2018-11-27 Agenda Packet Page 100 MASTER LEASE PURCHASE AGREEMENT This Master Lease Purchase Agreement (this “Agreement”), dated as of [DATE], is made and entered into by and between National Cooperative Leasing (together with its successors and assigns, “Lessor”) and the City of Chula Vista, a political subdivision of the State of CALIFORNIA (“Lessee”). In consideration of the mutual covenants herein contained, the parties hereto agree as follows: 1. LEASE OF EQUIPMENT; FUNDING 1.1. Lease; Possession and Use. Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to lease from Lessor the property described in each Lease Schedule (defined herein) executed and delivered by Lessor and Lessee, upon the terms and conditions set forth herein, together with all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto (the “Equipment”). Each Lease (defined herein) executed and delivered by Lessor and Lessee pursuant to this Agreement shall constitute a separate and independent lease and installment purchase of the Equipment described therein. This Agreement is not a commitment by Lessor to enter into any Lease and nothing in this Master Lease shall be construed to impose any obligation upon Lessor to enter into any proposed Lease. The decision whether Lessor enters into any Lease is within Lessor’s sole discretion. As used herein, (i) “Lease Schedule” means a schedule substantially in the form attached as Exhibit A to this Agreement, together with all addenda, riders, attachments, certificates and exhibits thereto, as the same may from time to time be amended, modified or supplemented, and (ii) “Lease” means a Lease Schedule each together with this Agreement the terms and conditions of which are incorporated therein. 1.2. Funding. Unless otherwise provided in the applicable Lease Schedule, in order to provide financing to pay the costs to acquire the Equipment and to pay certain costs related to the execution and delivery of the Lease documents as set forth in the applicable Lease Schedule (the “Purchase Price”), Lessor and Lessee shall execute and deliver an escrow agreement relating to such Schedule in form and substance and with an escrow agent satisfactory to Lessor (an “Escrow Agreement”). If all conditions set forth in Section 1.3 have been satisfied in full or waived, then Lessor will deposit or cause to be deposited into an escrow fund under the related Escrow Agreement, or pay to the Equipment vendor an amount (which may include estimated investment earnings thereon) equal to the Purchase Price for the Equipment to be financed under the related Lease Schedule. 1.3. Funding Requirements. The funding of the Purchase Price and the performance by Lessor of any of its obligations pursuant to any Lease, are subject to the satisfaction or waiver of the following: (a) Lessor has received all of the following documents, which shall be reasonably satisfactory, in form and substance, to Lessor: (1) evidence of insurance coverage or self-insurance as required by the Lease; (2) an opinion of counsel to Lessee with respect to certain matters relating to the related Lease; (3) Equipment invoice(s) from the vendor(s) or supplier(s) of the Equipment; (4) copies of resolutions by Lessee’s governing body, duly authorizing this Agreement, the Lease and the Escrow Agreement and any other documents related thereto and incumbency certificates for the person(s) executing the Lease documents; (5) if all or a portion of the Purchase Price will be paid to vendor(s) or supplier(s) of the Equipment on behalf of Lessee, an acceptance certificate for the related Equipment (substantially in the form attached as Exhibit B to this Agreement)(an “Acceptance Certificate”), (7) the Manufacturer’s Statement of Origin for the Equipment; and (8) such other documents and information previously identified by Lessor or otherwise reasonably requested by Lessor. (b) Lessee has executed and delivered to Lessor the Lease Schedule, its related Payment 2018-11-27 Agenda Packet Page 101 2 Schedule and the related Escrow Agreement (if applicable); (c) no Event of Default shall have occurred and be continuing under any Lease; (d) no material adverse change shall have occurred in the financial condition of Lessee; (e) the Equipment is reasonably satisfactory to Lessor and is free and clear of any Liens (defined herein) other than the respective rights of Lessor and Lessee as herein provided; and (f) all representations of Lessee in the Lease remain true, accurate and complete. 1.4. Delivery and Acceptance of Equipment. Lessee shall order each Equipment, shall cause the Equipment to be delivered at the locations specified under the applicable Lease Schedule and shall pay all taxes and delivery costs in connection therewith. If the Purchase Price is deposited under an Escrow Agreement for the acquisition of the Equipment, such funds shall be disbursed as provided therein. The insufficiency of proceeds of any Lease to pay all costs of the Equipment subject thereto shall not affect Lessee’s obligations under this Section. When the Equipment described in such Lease Schedule is delivered and accepted, Lessee shall promptly execute and deliver to Lessor an Acceptance Certificate for the Equipment. 2. TERM 2.1. Term. The term of each Lease (the “Lease Term”) shall commence on the Lease Date set forth in the applicable Lease Schedule and shall continue until the end of the fiscal year of Lessee in effect at such Lease Date (the “Original Term”); provided that the Lease Term for each Lease may be continued, solely at the option of Lessee, at the end of the Original Term or any renewal term of each Lease, each having a duration of one year and a term coextensive with Lessee’s fiscal year or such earlier date specified in the Lease (each a “Renewal Term”), as specified in the Lease Schedule applicable thereto up to the maximum Lease Term set forth in such Lease. At the end of the Original Term and at the end of each Renewal Term until the maximum Lease Term has been completed, Lessee shall be deemed to have exercised its option to continue each Lease for the next Renewal Term, unless sooner terminated pursuant to the Lease. 3. RENTAL PAYMENTS 3.1. Rental Payments. Subject to Sections 3.2 and 3.4, Lessee agrees to pay the rent payments (“Rental Payments”) in the amounts and on the dates (each a “Payment Date”) as specified in the Payment Schedule attached to each Lease Schedule. All Rental Payments shall be paid to Lessor, at such places as Lessor may from time to time designate by written notice to Lessee. Lessee shall pay the Rental Payments with lawful money of the United States of America from moneys legally available therefor. 3.2. Current Expense. The obligations of Lessee, including its obligation to pay the Rental Payments due in any fiscal year shall constitute a current expense of Lessee for such fiscal year and shall not constitute an indebtedness of Lessee within the meaning of the Constitution and laws of the State of CALIFORNIA (the “State”). THE RENTAL PAYMENTS ARE TO BE MADE ONLY FROM LESSEE’S LEGALLY AVAILABLE REVENUES APPROPRIATED ON AN ANNUAL BASIS, AND NONE OF LESSEE, THE STATE, OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF SHALL BE OBLIGATED TO PAY ANY SUMS DUE UNDER A LEASE FROM THE COMPELLED LEVY OF AD VALOREM OR OTHER TAXES EXCEPT FROM THOSE LEGALLY AVAILABLE REVENUES APPROPRIATED BY LESSEE ON AN ANNUAL BASIS. Nothing herein shall constitute a pledge by Lessee of the full faith and credit or taxing power of the Lessee, the State or any political 2018-11-27 Agenda Packet Page 102 3 subdivision or agency thereof. The person or entity in charge of preparing Lessee’s budget will include in the budget request for each fiscal year the Rental Payments to become due during such fiscal year, and will use all reasonable and lawful means available to secure the appropriation of money for such fiscal year sufficient to pay all Rental Payments coming due therein; provided that Lessee’s governing body retains the authority to approve or reject such budget request. Lessor acknowledges that appropriation for Rental Payments is a governmental function which Lessee cannot contractually commit itself in advance to perform. Without committing itself to do so, Lessee reasonably believes that moneys in an amount sufficient to make all Rental Payments can and will lawfully be appropriated and made available to permit Lessee’s continued utilization of the Equipment in the performance of its essential functions during the applicable Lease Term. 3.3. Unconditional Rental Payments. Subject to Sections 3.2 and 3.4, and other applicable provisions of this Agreement, (a) Lessee’s obligation to make Rental Payments and any other payments hereunder shall be absolute and unconditional; (b) Lessee shall make such payments when due and shall not withhold any of these payments pending final resolution of any disputes; (c) Lessee shall not assert any right of set-off or counterclaim against its obligation to make these payments; (d) Lessee’s obligation to make Rental Payments or other payments shall not be abated through accident, unforeseen circumstances, failure of the Equipment to perform as desired, damage or destruction to the Equipment, loss of possession of the Equipment or obsolescence of the Equipment; and (e) Lessee shall be obligated to continue to make payments required of it by this Agreement if title to, or temporary use of, the Equipment or any part thereof shall be taken under exercise of the power of eminent domain. 3.4. Nonappropriation. If during the then current fiscal year of Lessee, sufficient funds are not appropriated to make Rental Payments required under a Lease for the following fiscal year (an “Event of Nonappropriation”), Lessee shall be deemed not to have renewed such Lease for the following fiscal year, and the Lease shall terminate at the end of the then current fiscal year, and Lessee shall not be obligated to make Rental Payments under the Lease beyond the then current fiscal year for which funds have been appropriated. Upon an Event of Nonappropriation, Lessee shall return the Equipment subject to the Lease to Lessor in accordance with the requirements of Section 11.3. Lessee shall notify Lessor in writing no later than 30 days following an Event of Nonappropriation, but failure to provide such notice shall not operate to extend the Lease Term. If Lessee fails to return the applicable Equipment or otherwise comply with Section 11.3, the termination shall nevertheless be effective. 3.5. Open 3.6. Security Interest. In order to secure the prompt and full payment and performance as and when due of any and all of Lessee’s obligations under each Lease, now existing or hereafter created of any kind whatsoever, including all of the same under the related Lease documents, Lessee hereby grants, pledges and assigns to Lessor a first priority security interest with respect to all of Lessee’s right, title and interest in, to and under all of the following collateral, whether now existing or hereafter acquired: (i) (in the event that contrary to the intentions of the parties, a court determines that such Lease is not a true “lease” under applicable commercial law) each item covered thereby; (ii) all related intangible rights, subleases, licenses, maintenance agreements, all substitutions, replacements or exchanges for any Item of Equipment (in each case in which Lessee shall from time to time acquire an interest), insurance policies and other related property, including all amounts paid or payable in connection therewith; (iii) any collateral described in the other Lease documents; and (iv) all proceeds of the foregoing ((i), (ii), (iii) and (iv), collectively, the “Collateral”). Lessee agrees that with respect to each Lease, in addition to all of the other rights and remedies available to Lessor under the related Lease documents, Lessor shall have all of the rights and remedies of a secured party under the UCC and any other applicable law with respect to such collateral. 2018-11-27 Agenda Packet Page 103 4 4. PURCHASE OR RETURN OF EQUIPMENT 4.1. End of Lease Term. Lessee shall have the option to purchase or return the Equipment under a Lease upon the expiration of the maximum Lease Term as provided in the Terminal Rental Adjustable Rider attached hereto (the “TRAC Rider”). In addition, Lessee shall have the option to return all of the Equipment pursuant to the terms and conditions contained in Section 3.4 herein. 4.2. Excess Proceeds. Lessee’s obligations under a Lease may, to the extent applicable, be prepaid in part from the excess proceeds of the Lease on the terms set forth in any Escrow Agreement pursuant to which proceeds of the Lease are being held. 4.3. Release of Lessor’s Interest. Upon timely receipt, in collected funds, of all amounts required for the purchase of the Equipment subject to any Lease pursuant to the TRAC Rider, such Lease shall terminate, all of Lessor’s right, title and interest in and to the Equipment shall terminate, and Lessor shall deliver to Lessee or the third-party purchaser of the Equipment such documents and instruments to evidence the termination of the Lease and Lessor’s interest in the Equipment, without warranty by or recourse to Lessor. Upon Lessee’s written request, following Lessor’s receipt of the Purchase Price, as that term is defined in the TRAC Rider, Lessor shall deliver to Lessee a bill of sale transferring to Lessee all right, title and interest of Lessor in and to the Equipment ON AN “AS IS” “WHERE IS” BASIS, WITHOUT ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, AND LESSOR EXPRESSLY DISCLAIMS THE SAME. 5. REPRESENTATION AND WARRANTIES. 5.1. Representations and Warranties. Lessee shall be deemed to make the following representations and warranties to Lessor with respect to each Lease, in each case as of date of such Lease: (a) Lessee is a state or political subdivision of the State, duly organized and existing under the Constitution and laws of the State, and is authorized under the Constitution and laws of the State to enter into this Agreement, the other Lease documents and the transactions contemplated hereby and thereby, and to perform all of its obligations under this Agreement and the other Lease documents. (b) The execution and delivery of this Agreement and the Lease Schedule have been duly authorized by all necessary action of Lessee’s governing body and such action is in compliance with all public bidding and other State and federal laws applicable to this Agreement and the acquisition and financing of the Equipment by Lessee. (c) This Agreement and the Lease Schedule have been duly executed and delivered by and constitute the valid and binding obligations of Lessee, enforceable against Lessee in accordance with their respective terms. (d) The execution, delivery and performance of this Agreement and the Lease Schedule by Lessee does not (i) violate any State or federal law or local law or ordinance, or any order, writ, injunction, decree, or regulation of any court or other governmental agency or body applicable to Lessee, or (ii) conflict with or result in the breach or violation of any term or provision of, or constitute a default under, any note, bond, mortgage, indenture, agreement, deed of trust, lease or other obligation to which Lessee is bound. 2018-11-27 Agenda Packet Page 104 5 (e) To the best of Lessee’s knowledge and belief, there is no action, suit, proceeding, claim, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body pending or threatened against or affecting Lessee, challenging Lessee’s authority to enter into this Agreement or the Lease Schedule or any other action wherein an unfavorable ruling or finding would adversely affect the enforceability of this Agreement or the Lease Schedule. (f) Lessee or Lessee’s governing body has appropriated and/or taken other lawful actions necessary to provide moneys sufficient to pay all Rental Payments during the current fiscal year, and such moneys will be applied in payment of all Rental Payments due and payable during such current fiscal year. (g) Lessee has an immediate need for, and expects to make immediate use of, the Equipment, which need is not temporary or expected to diminish during the applicable Lease Term. 6. INSURANCE; CASUALTY AND CONDEMNATION 6.1. Liability and Property Insurance. Lessee shall, at its own expense, procure and maintain continuously in effect during each Lease Term: (a) public liability insurance for death or injuries to persons, or damage to property arising out of or in any way connected to the Equipment sufficient to protect Lessor and its assigns from liability in all events, with a coverage of not less than $1,000,000 per occurrence unless specified differently in the related Lease Schedule, and (b) insurance against such hazards as Lessor may require, including, but not limited to, all-risk casualty and property insurance, in an amount equal to the greater of the full replacement cost of the Equipment. 6.2. Insurance Requirements. All insurance policies required by Section 6.1 shall be taken out and maintained with insurance companies acceptable to Lessor and shall contain a provision that thirty (30) days prior to any change in the coverage (including cancellation) the insurer must provide written notice to the insured parties. No insurance shall be subject to any co-insurance clause. Each liability insurance policy shall be endorsed to name Lessor and its assigns as an additional insured party and each casualty and property insurance policy shall be endorsed to name Lessor and its assigns as loss payee, in each case regardless of any breach of warranty or other act or omission of Lessee. Lessee may self-insure against the risks described in Section 6.1 with the prior written consent of Lessor. 7. ADDITIONAL OBLIGATIONS 7.1. Use and Maintenance of Equipment. Lessee shall, at its own expense, maintain the Equipment in good condition and proper working order, and shall make all commercially reasonable necessary repairs and replacements to keep the Equipment in such condition. The Equipment will be used by Lessee only for the purpose of performing Lessee’s essential governmental functions. Lessee shall not use, operate or maintain the Equipment improperly, carelessly, in violation of any manufacturer’s guidelines or in violation of any applicable law or regulation or in a manner contrary to that contemplated by this Agreement. Lessee shall obtain and maintain all permits and licenses necessary for the operation of the Equipment. Lessee shall have sole responsibility to maintain and repair the Equipment. Lessee shall house the Equipment at the address specified in the related Lease Schedule; provided that Lessee may change the location at which any Equipment is or housed with thirty (30) days prior written notice to Lessor specifying the address of the new location. Lessee shall provide Lessor access at all reasonable times to examine and inspect the Equipment and provide Lessor with such access to the Equipment as may be reasonably necessary to perform maintenance on the Equipment in the event of failure by Lessee to perform its obligations hereunder. If Lessor reasonably determines that Lessee is not maintaining any of the Equipment in accordance with this Section, Lessor may (in addition to any other remedies it may have) require Lessee to enter into maintenance contracts for such Equipment in form approved by Lessor and with approved providers. 2018-11-27 Agenda Packet Page 105 6 7.2. Taxes. Lessee shall pay all taxes, assessments and other charges which are assessed or levied against the Equipment or any part thereof, during the Lease Term, whether assessed against Lessee or Lessor. With respect to any taxes or charges that may lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such installments as accrue during the then current fiscal year of the Lease Term for such Equipment. 7.3. Modification of Equipment. Lessee will not, without the prior written consent of Lessor, affix or install any accessory equipment or device on any of the Equipment if such addition will change or impair the originally intended value, function or use of the Equipment. 7.4. Liens. Lessee shall not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or other claim with respect to the Equipment (each, a “Lien”), other than the respective rights of Lessor and Lessee as herein provided. Lessee shall promptly, at its own expense, take such actions as may be necessary duly to discharge or remove any such claim if the same shall arise at any time. 7.5. Financial Information. Lessee shall deliver to Lessor (i) its annual audited financial statements within 270 days after the end of each fiscal year, (ii) its annual budget the each fiscal year promptly following approval thereof, and (iii) such other financial statements and information relating to the ability of Lessee to satisfy its obligations under this Agreement and the Lease as may be reasonably requested by Lessor from time to time. 7.6. Tax Credit Indemnification. Lessee acknowledges that Lessor has computed the Rental Payments under the assumption that Lessor shall be entitled to claim a tax credit under Section 30D(a) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to each item of Equipment that is an electric drive motor vehicle, in an amount determined in accordance with Section 30D(b) of the Code (the “Tax Credit”). At the commencement of the Lease, Lessor reasonably believes it is able to benefit from the currently available Tax Credit. Lessor shall use commercially reasonable efforts to secure all available Tax Credits in order to secure the pricing stated in the Agreement. Lessor shall not materially deviate from its past accounting practices in any manner that would affect its ability to secure any available Tax Credit (e.g. write off of other assets, losses, etc). If, after these efforts are made, Lessor shall lose, or shall not have the right to claim, or shall suffer a disallowance or recapture with respect to, all or any portion of the Tax Credit with respect to any item of Equipment that is an electric drive motor vehicle (a “Tax Loss”), Lessee shall pay to Lessor a lump sum amount that, after reduction by the net amount of all federal, state and local taxes required to be paid by Lessor with respect to the receipt of such amount, equals, on an after-tax and net present value basis, the aggregate additional federal income taxes payable by Lessor as a result of such Tax Loss, which amount shall be payable within sixty (60) days after actual receipt of written notice from Lessor to Lessee that a Tax Loss has occurred. Lessor’s written notice shall include a statement from its internal counsel stating that Lessor exercised commercially reasonable efforts to secure the Tax Credit. If Lessor does not provide such written notice, Lessee shall not be responsible for any Tax Loss. Any such amount payable by Lessee shall be calculated on the assumption that Lessor has sufficient federal income tax liability to benefit from the full utilization of the Tax Credit for each item of Equipment in Lessor’s taxable year in which the applicable Acceptance Certificate for such item of Equipment was executed by Lessee. 8. TITLE; NO WARRANTIES BY LESSOR 8.1. During the Lease Term, legal title to all Equipment shall be in the name of Lessor, subject to the leasehold interest of Lessee and terms and conditions hereof. Lessee acknowledges that Lessor (a) is holding legal title solely for purposes of facilitating the financing of the Equipment (b) does not operate, control or have possession of the Equipment and has no control over the work performed by Lessee or any vendor with respect to the Equipment, and (c) has no obligation with respect the operation, 2018-11-27 Agenda Packet Page 106 7 use, storage or maintenance of the Equipment. Upon an Event of Default or an Event of Nonappropriation, title shall immediately vest in Lessor, free and clear of any right, title or interest of Lessee. 8.2. Personal Property. The Equipment is and shall at all times be and remain personal property and not fixtures. 8.3. No Warranties. LESSEE ACQUIRES AND LEASES THE EQUIPMENT UNDER EACH LEASE “AS IS.” LESSEE ACKNOWLEDGES THAT LESSOR DID NOT MANUFACTURE THE EQUIPMENT UNDER ANY LEASE. LESSOR DOES NOT REPRESENT THE MANUFACTURER, SUPPLIER, OWNER OR DEALER, AND LESSEE SELECTED THE EQUIPMENT BASED UPON LESSEE’S OWN JUDGMENT. LESSOR MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE OR AS TO THE EQUIPMENT’S VALUE, DESIGN, CONDITION, USE, CAPACITY OR DURABILITY. LESSEE AGREES THAT REGARDLESS OF CAUSE, LESSOR IS NOT RESPONSIBLE FOR, AND LESSEE WILL NOT MAKE ANY CLAIM AGAINST LESSOR FOR, ANY DAMAGES, WHETHER CONSEQUENTIAL, DIRECT, SPECIAL OR INDIRECT INCURRED BY LESSEE IN CONNECTION WITH THE EQUIPMENT UNDER ANY LEASE. NEITHER THE MANUFACTURER, SUPPLIER OR DEALER NOR ANY SALESPERSON, EMPLOYEE OR AGENT OF THE MANUFACTURER, SUPPLIER OR DEALER IS LESSOR’S AGENT OR HAS ANY AUTHORITY TO SPEAK FOR LESSOR OR TO BIND LESSOR IN ANY WAY. For and during the Lease Term under each Lease, Lessor assigns to Lessee any manufacturer’s or Supplier’s product warranties, express or implied, applicable to any Equipment and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee’s sole expense. Lessee agrees that (a) all Equipment will have been purchased by Lessor for the benefit of the Lessee in accordance with Lessee’s specifications from suppliers selected by Lessee, (b) Lessor is not a manufacturer or dealer of any Equipment and has no liability for the delivery of any Equipment, (c) Lessor assumes no obligation with respect to any manufacturer’s or Supplier’s product warranties or guaranties, (d) no manufacturer or Supplier or any representative of said parties is an agent of Lessor, and (e) any warranty, representation, guaranty or agreement made by any manufacturer or supplier or any representative of said parties shall not be binding upon Lessor. 9. RISK OF LOSS; CASUALTY; INDEMNITY 9.1. Risk of Loss. As between Lessee and Lessor, Lessee bears the entire risk of loss, theft, damage or destruction of any Equipment in whole or in part for any reason whatsoever. No loss to any Equipment shall relieve Lessee from the obligation to make any Rental Payments or to perform any other obligation under any Lease. Proceeds of any insurance recovery will be applied to Lessee’s obligations under this Section 9. 9.2. Notice of Loss. If a casualty occurs to any Equipment, Lessee shall notify Lessor of the same and Lessee shall, unless otherwise directed by Lessor, repair the same. 9.3. Casualty; Application of Proceeds. If Lessor determines that any item of Equipment has suffered a casualty loss is beyond repair, then Lessee shall either: (a) replace such Equipment with similar equipment in good repair, condition and working order free and clear of any liens (except Lessor’s rights and interest as provided herein) and deliver to Lessor a purchase order, bill of sale or other evidence of sale to Lessee covering the replacement equipment, in which event such replacement equipment shall automatically be Equipment under the applicable Lease, or (b) on the next scheduled Payment Date, pay Lessor (i) all amounts owed by Lessee under the applicable Lease, including the Rental Payment due on such date. 2018-11-27 Agenda Packet Page 107 8 9.4. Claims and Expenses. To the extent permitted by law, Lessee shall bear the risk for, shall pay directly and shall defend against any and all claims, liabilities, proceedings, actions, expenses (including reasonable attorneys’ fees), damages or losses arising under or related to any Equipment, including, but not limited to, the possession, ownership, lease, use or operation thereof. These obligations of Lessee shall survive any expiration or termination of any Lease. 10. ASSIGNMENT 10.1. Assignment by Lessor. Lessor may assign its rights, title and interest in and to any Lease, any Equipment or any Escrow Agreement (including the escrow fund thereunder), and/or may grant or assign a security interest in any Lease, its Equipment or any Escrow Agreement (including the escrow fund thereunder), in whole or in part, to any party at any time and from time to time without Lessee’s consent. Any such assignee or lien holder (an “Assignee”) shall have all of the rights of Lessor under the applicable Lease and Escrow Agreement. LESSEE AGREES NOT TO ASSERT AGAINST ANY ASSIGNEE ANY CLAIMS, ABATEMENTS, SETOFFS, COUNTERCLAIMS, RECOUPMENT OR ANY OTHER SIMILAR DEFENSES WHICH LESSEE MAY HAVE AGAINST LESSOR. Unless otherwise agreed by Lessee in writing, any such assignment transaction shall not release Lessor from any of Lessor’s obligations under the applicable Lease. An assignment or reassignment of any of Lessor’s right, title or interest in a Lease, its Equipment or any Escrow Agreement (including the Escrow Fund thereunder) shall be enforceable against Lessee only after Lessee receives a written notice of assignment that discloses the name and address of each such Assignee. Lessee agrees to acknowledge in writing any such assignments if so requested. 10.2. Assignment and Subleasing by Lessee. Neither this Agreement nor any Lease or any Equipment may be assigned, subleased, sold, transferred, pledged or mortgaged by Lessee. 11. EVENTS OF DEFAULT; REMEDIES 11.1. Events of Default Defined. The occurrence of any of the following events with respect to a Lease shall constitute an Event of Default under the Lease: (a) Lessee’s failure to pay any Rental Payment or other amount required to be paid to Lessor under the Lease within five (5) business days following the due date thereof, other than due to an Event of Nonappropriation; (b) Lessee fails to perform or observe any of its obligations under Section 6, 7.4 or 10.2 hereof; (c) With the exception of the above clauses (a) or (b), Lessee’s failure to perform or abide by any condition, agreement or covenant with respect to the Lease for a period of thirty (30) days after written notice by Lessor to Lessee specifying such failure and requesting that it be remedied, unless Lessor shall agree in writing to an extension of time prior to its expiration; (d) Lessee shall be in default with respect to the payment or performance of any indebtedness, liability or obligation to Lessor or any of its affiliates under any note, loan agreement, security agreement, lease, title retention or conditional sales agreement or any other instrument or agreement (including the occurrence of any Event of Default under any other Lease then held by Lessor), whether accelerated or otherwise and any applicable grace period with respect thereto has expired; or (e) Any statement, representation or warranty made by Lessee in the Lease or in any writing delivered by Lessee pursuant thereto or in connection therewith proves at any time to have been false, misleading or erroneous in any material respect as of the time when made; or 2018-11-27 Agenda Packet Page 108 9 (f) Lessee applies for or consents to the appointment of a receiver, trustee, conservator or liquidator of Lessee or of all or a substantial part of its assets, or a petition for relief is filed by Lessee under any federal or state bankruptcy, insolvency, moratorium or similar law. 11.2. Remedies on Default. Upon the occurrence of any Event of Default with respect to a Lease, Lessor shall have the right, at its option and without any further demand or notice to one or more or all of the following remedies with respect to the Lease: (a) Lessor, with or without terminating the Lease, may declare all Rental Payments payable under the Lease to the end of the then-current fiscal year of Lessee to be immediately due and payable by Lessee, whereupon such Rental Payments shall be immediately due and payable. (b) Lessor may require Lessee, at its sole cost and expense, to promptly return all Equipment to Lessor in the manner set forth in Section 11.3 (and Lessee agrees that it shall so return the Equipment), or Lessor may, at its option, enter upon the premises where any Equipment is located and repossess such Equipment without demand, without any court order or other process of law and without liability for any damage occasioned by such repossession; and Lessor may thereafter dispose of the Equipment. If Lessor terminates the Lease and disposes of any or all of the Equipment, Lessor shall apply the proceeds of any such disposition to pay the following items in the following order: (i) all costs and expenses (including, but not limited to, reasonable attorneys’ fees) incurred in securing possession of the Equipment; (ii) all costs and expenses incurred in completing the disposition of the Equipment; (iii) any sales or transfer taxes incurred in the disposition of the Equipment; (iv) any Rental Payments payable under the Lease to the end of the then-current fiscal year of Lessee; (v) the outstanding principal component of Rental Payments and the Estimated Fair Market Value payment as outlined in the TRAC Rider under the Lease; and (vi) any other amounts then due under the Lease. Any disposition proceeds remaining after the requirements of clauses (i), (ii), (iii), (iv), (v) and (vi) have been met shall be paid to Lessee. No deficiency shall be allowed against Lessee, except with respect to any unpaid Rental Payments to the end of the then-current fiscal year of Lessee and unpaid costs and expenses incurred by Lessor in connection with the repossession and disposition of the Equipment. (c) By written notice to any escrow agent that is holding proceeds of the Lease under an Escrow Agreement, Lessor may instruct such escrow agent to release all such proceeds and any earnings thereon to Lessor, such sums to be credited to payment of Lessee’s obligations under the Lease; or (d) Lessor may exercise any other remedy available, at law or in equity, with respect to such Event of Default. Lessee shall pay the reasonable attorneys’ fees and expenses incurred by Lessor in exercising any remedy hereunder. 11.3. Return of Equipment; Release of Lessee’s Interest. Upon termination of any Lease prior to the payment of all Rental Payments (whether as result of an Event of Nonappropriation or Event of Default) thereunder, Lessee shall, within ten (10) days after such termination, at its own expense: (a) perform any testing and repairs required to place the related Equipment in the condition required by Section 7; (b) return such Equipment to a location in the continental United States specified by Lessor, freight and insurance prepaid by Lessee; and (c) comply with any additional return conditions specified in the Lease Schedule. Lessee shall execute and deliver to Lessor such documents as Lessor may request to evidence the passage of legal or equitable title and ownership to Lessor and termination of Lessee’s interest in the Equipment. With respect to any provision of the Agreement requiring Lessee to return all of the Equipment to Lessor or to transfer all of the equipment to Lessor, Lessee agrees to voluntarily do so. In the event that Lessee fails or refuses to return or transfer the Equipment voluntarily as set forth above, Lessor 2018-11-27 Agenda Packet Page 109 10 acknowledges that the Agreement does not and shall not create a right in Lessor to involuntarily dispossess Lessee of title to or possession of all or any item of the Equipment. 11.4. Late Charge. To the extent permitted by applicable law, Lessee shall pay Lessor a charge on any Rental Payment not paid on the date such payment is due at a rate equal to the interest rate set forth in the applicable Lease Schedule plus 5% per annum or the maximum amount permitted by law, whichever is less (the “Default Rate”), from such date. 11.5. No Remedy Exclusive. Each of the rights and remedies under this Agreement and each Lease is cumulative and may be enforced separately or concurrently. No course of dealing or conduct between Lessor and Lessee shall be effective to amend, modify or change any provisions of this Agreement or any Lease. No failure or delay by Lessor to insist upon the strict performance of any term, covenant or agreement of the Agreement or any Lease, or to exercise any right, power or remedy consequent upon a breach thereof, shall constitute a waiver of any such term, covenant or agreement or of any such breach, or preclude Lessor from exercising any such right, power or remedy at any later time or times. 11.6. Costs and Attorneys’ Fees. Upon the occurrence of an Event of Default, Lessee agrees to pay to Lessor or reimburse Lessor for, in addition to all other amounts payable hereunder, all of Lessor’s reasonable costs of collection, including reasonable attorneys’ fees, whether or not suit or action is filed thereon. Any such costs shall be due and payable thirty (30) days after receipt of written notice and demand given to Lessee, shall be secured by this Agreement until paid, and shall bear interest at the Default Rate. In the event suit or action is instituted to enforce any of the terms of this Agreement, the prevailing party shall be entitled to recover from the other party such sum as the court may adjudge reasonable as attorneys’ fees at trial and on appeal of such suit or action or in any bankruptcy proceeding, in addition to all other sums provided by law. 12. MISCELLANEOUS PROVISIONS 12.1. Notices. All written notices to be given under this Agreement shall be given (a) personally, (b) by mail in registered or certified form, with postage prepaid, or (c) by overnight courier, charges prepaid, in each case to the party entitled thereto at its address specified beneath each party’s signature, or at such address as the party may provide to the other parties hereto in writing from time to time, and to any assignee at its address as it appears on the registration books maintained by Lessee. Any such notice shall be deemed to have been received 72 hours after deposit in the United States mail, 24 hours after deposit with a courier, or, if given by other means, when delivered. 12.2. Binding Effect. This Agreement and each Lease hereunder shall be binding upon and shall inure to the benefit of Lessor and Lessee and their respective successors and assigns. Specifically, as used herein the term “Lessor” means, with respect to a Lease, any person or entity to whom Lessor has assigned its right to receive Rental Payments under such Lease. 12.3. Severability. In the event any provision of this Agreement or any Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 12.4. Entire Agreement; Amendments. Each Lease constitutes the entire agreement of the parties with respect to the subject matter thereof and supersedes all prior and contemporaneous writings, understandings, agreements, solicitation documents and representations, express or implied. Each Lease may be amended or modified only by written documents duly authorized, executed and delivered by Lessor and Lessee. 2018-11-27 Agenda Packet Page 110 11 12.5. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions, Articles, Sections or clauses hereof. 12.6. Further Assurances and Corrective Instruments. Lessor and Lessee agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required to perfect, confirm, establish, reestablish, continue or complete the interests of Lessor in this Agreement and each Lease, to consummate the transactions contemplated hereby and thereby, and to carry out the purposes and intentions of this Agreement and each Lease. 12.7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State. 12.8. Usury. It is the intention of the parties hereto to comply with any applicable usury laws; accordingly, it is agreed that, notwithstanding any provisions to the contrary herein or in any Lease Schedule, in no event shall this Agreement or any Lease hereunder require the payment or permit the collection of interest or any amount in the nature of interest or fees in excess of the maximum amount permitted by applicable law. Any such excess interest or fees shall first be applied to reduce principal, and when no principal remains, refunded to Lessee. In determining whether the interest paid or payable exceeds the highest lawful rate, the total amount of interest shall be spread through the applicable Lease Term so that the interest is uniform through such term. 12.9. Waiver of Jury Trial. To the extent permitted by applicable law, Lessor and Lessee hereby waive any right to trial by jury in any action or proceeding with respect to, in connection with or arising out of this Agreement. 12.10. USA Patriot Act Compliance Notification. Lessor hereby notifies Lessee that pursuant to the requirements of the USA PATRIOT Act (the “Patriot Act”), it is required to obtain, verify and record information that identifies Lessee, which information includes the name and address of Lessee and other information that will allow Lessor to identify Lessee in accordance with the Patriot Act. Lessee shall, promptly upon Lessor’s request, provide all documentation and other information that Lessor requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act. 12.11. Relationship of Parties. Lessee acknowledges and agrees that (i) this Agreement and each Lease and the transactions related thereto is an arm’s-length commercial transaction between Lessor and Lessee, (ii) in connection therewith and with the discussions, undertakings, and procedures leading up to the consummation of this transaction, Lessor is and has been acting solely as a principal and is not acting as the agent, advisor or fiduciary of Lessee, (iii) Lessor has not assumed an advisory or fiduciary responsibility in favor of Lessee with respect to the transactions contemplated hereby or the discussions, undertakings, and procedures leading thereto (regardless of whether Lessor or any affiliate thereof has provided other services or is currently providing other services to Lessee on other matters) and Lessor has no obligation to Lessee with respect to the transactions contemplated hereby except the obligations expressly set forth in this Agreement and any Lease, and (iv) Lessee has consulted its own legal, financial, and other advisors to the extent it has deemed appropriate. [The remainder of this page is intentionally blank. Signature page follows.] 2018-11-27 Agenda Packet Page 111 [Signature Page to Master Lease Purchase Agreement] IN WITNESS WHEREOF, Lessor has caused this Agreement to be executed in its corporate name by its duly authorized officer, and Lessee has caused this Agreement to be executed in its name by its duly authorized officer. [LESSEE] Lessee BCICAPITAL, INC. Lessor By: Name: Title: By: Name: Title: Address: Attn: Address: 390 N. Orange Ave. Ste 2600 Orlando, FL 32801 Attn: Mike Powers Senior Vice President Telephone: Telephone: (407) 502-5910 E-mail address: E-mail address: mike.powers@bcicmg.com 2018-11-27 Agenda Packet Page 112 EXHIBIT A LEASE SCHEDULE NO. 1 to Master Lease Purchase Agreement Dated [DATE] This Lease Schedule (this “Lease Schedule”) relates to the Master Lease Purchase Agreement dated as of [DATE] (the “Agreement”) between the undersigned Lessor and Lessee, together with the terms and conditions of the Agreement incorporated herein by reference, constitutes a Lease. Unless otherwise defined herein, capitalized terms will have the same meaning ascribed to them in the Agreement. All terms and conditions of the Master Lease are incorporated herein by reference. 1. Equipment Description. As used in the Lease, “Equipment” means all of the property described in Exhibit 1 attached to this Lease Schedule and all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. 2. Purchase Price. The Purchase Price for the Equipment is [------], which amount shall be deposited in the Escrow Fund established pursuant to that certain Escrow Agreement dated as of [DATE] among Lessor, Lessee and [Escrow Agent]. 3. Rental Payments; Lease Term. The Rental Payments to be paid by Lessee to Lessor and the Lease Term of this Lease are set forth on the Payment Schedule attached to this Lease Schedule as Exhibit 2. 4. Essential Use; Current Intent of Lessee. Lessee represents that (a) the use of the Equipment is essential to Lessee’s proper, efficient and economic functioning or to the services that Lessee provides to its citizens, (b) the Equipment will be used by Lessee only for the purpose of performing its governmental or proprietary functions consistent with the permissible scope of its authority and will not be used in a trade or business of any person or entity, and (c) the useful life of the Equipment is not less than the stated full Lease Term of this Lease. Lessee has determined that a present need exists for the Equipment which need is not temporary or expected to diminish in the near future. Lessee currently intends for the full Lease Term: to use the Equipment; and to continue this Lease. 5. Representations, Warranties and Covenants. Lessee hereby represents, warrants and covenants that its representations, warranties and covenants set forth in the Agreement are true and correct as though made on the date of execution of this Lease Schedule. 2018-11-27 Agenda Packet Page 113 IN WITNESS WHEREOF, Lessor has caused this Lease Schedule to be executed in its corporate name by its duly authorized officer, and Lessee has caused this Lease Schedule to be executed in its name by its duly authorized officer. [LESSEE] Lessee BCICAPITAL, INC. Lessor By: Name: Title: By: Name: Title: Address: Attn: Address: 390 N. Orange Ave. Ste 2600 Orlando, FL 32801 Attn: Mike Powers Senior Vice President Telephone: Telephone: (407) 502-5910 E-mail address: E-mail address: mike.powers@bcicmg.com 2018-11-27 Agenda Packet Page 114 Exhibit 1 Equipment Description [Insert description and purchase price.] VIN #______________________ 2018-11-27 Agenda Packet Page 115 Exhibit 2 Payment Schedule 2018-11-27 Agenda Packet Page 116 EXHIBIT B ACCEPTANCE CERTIFICATE BciCapital, Inc. 390 N. Orange Ave., Suite 2600 Orlando, FL 32801 Re: Lease Schedule No. 1 dated [DATE] (the “Lease Schedule”) to that certain Master Lease Purchase Agreement dated as of [DATE] (the “Agreement” and together with the Lease Schedule, the “Lease”) between BciCapital, Inc., its successors and assigns, as Lessor, and the [LESSEE], Oklahoma, as Lessee Ladies and Gentlemen: I, the undersigned, hereby certify that I am the duly qualified and acting officer of Lessee identified below and, with respect to the above-referenced Lease Schedule, that: 1. The Equipment subject to the Lease and this Acceptance Certificate has been delivered, is in good working order and is fully operational and has been fully accepted by Lessee on or before the date hereof. 2. Attached hereto are true and correct copies of the manufacturers’ and dealers’ invoices for the Equipment. 3. Lessee has appropriated and/or taken other lawful actions necessary to provide moneys sufficient to pay all Rental Payments required to be paid under the Lease during the current fiscal year of Lessee. Such moneys will be applied in payment of all such Rental Payments due and payable during such current fiscal year. 4. No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as defined in the Lease) exists at the date hereof. 5. This is the final Acceptance Certificate to be executed and delivered in connection with all of the Equipment subject to the Lease, reflecting that all of the Equipment has been acquired by the Lessee. Date: _______________________ [LESSEE] Lessee By: ______________________________ Name: ____________________________ Title: _____________________________ 2018-11-27 Agenda Packet Page 117 TERMINAL RENTAL ADJUSTMENT RIDER This TERMINAL RENTAL ADJUSTMENT RIDER (the “TRAC Rider”) is being entered into concurrently with, and as an integral part of, Lease Schedule No. 1 dated as of __________ _____, 2018 between LSC FINANCIAL (together with its successors and permitted assigns, “Lessor”) and _______________(together with its successors and permitted assigns, “Lessee”) (the “Lease Schedule”, and together with the Master Lease Purchase Agreement (the “Agreement”) dated as of __________, _____, 201__, between Lessor and Lessee, the “Lease”). (Unless otherwise defined herein, capitalized terms shall have the same meaning ascribed to them in the Agreement.) 1. OPTION TO RETURN/TERMINAL RENTAL ADJUSTMENT. Provided that no default or Event of Default has then occurred and is continuing, Lessee shall have the option to return, upon the expiration of the maximum Lease Term under the Lease Schedule (“Expiration Date”), all but not less than all of the Equipment subject thereto upon the following terms and conditions: (a) If Lessee desires to exercise this option it shall, at least one hundred eighty (180) days before the maximum Lease Term thereof, give Lessor written notice (a “Return Notice”) of its intention to exercise this option to return. Prior to the Expiration Date, Lessee shall, as Lessor’s agent, obtain bids from unrelated prospective purchasers for a cash sale (in United States dollars) of all, and not less than all, of the items of Equipment leased under the Lease Schedule. Lessor may, but shall not be required to, also solicit bids for sale. (b) On the Expiration Date Lessee shall (i) cause all of such Equipment to be in the return condition required by the Lease documents relating thereto, and comply with the other provisions thereof, except as otherwise provided below, and (ii) pay to Lessor all of the Rental Payments and other payments then payable to Lessor with respect thereto. Subject to Lessee’s compliance with the foregoing, and Lessor’s receipt of such amounts and all other amounts as and when payable under this TRAC Rider in good and indefeasible funds then payable with respect to the Lease Schedule, Lessor shall sell all of its rights, title and interests in and with respect to such Equipment to the highest bidder on the Expiration Date. (c) It is presently anticipated that the fair market value of the Equipment as of the Expiration Date of the related Lease Schedule will be an amount equal to _______________ (____) percent of the Lessor’s cost of such Equipment (the “Estimated Fair Market Value”). Subject to the other provisions of this TRAC Rider, on the Expiration Date, (i) the Equipment will be sold pursuant to this Section 1 at the actual fair market value; (ii) the Net Proceeds of such sale shall be remitted to Lessor; and (iii) a Terminal Rental Adjustment shall be payable by either Lessee or Lessor, as the case may be, for the purposes set forth in Section 1(f) and subject to the following: (A) if the Net Proceeds are less than the Estimated Fair Market Value, Lessee shall pay Lessor an amount equal to the excess of the Estimated Fair Market Value over the Net Proceeds (the “Deficiency Payment”); or (B) if the Net Proceeds exceed the Estimated Fair Market Value, Lessor shall remit to Lessee the excess of the Net Proceeds over the Estimated Fair Market Value. (d) If Equipment has not been sold using commercially reasonable efforts by Lessor or Lessee on behalf of Lessor by the Expiration Date, then the Net Proceeds of such Equipment shall be deemed to be zero (0), and on such Expiration Date, (i) such Equipment shall, as directed by Lessor, either be delivered to Lessor or be stored by Lessee, in either such case, pursuant to the return provisions in the applicable Lease documents, and (ii) in addition to any other amounts to be paid under the Lease documents, Lessee shall pay Lessor an amount equal to the Estimated Fair Market Value with respect thereto. If at any time after the Expiration Date Lessee shall obtain a bid as set forth above for all, and not less than all, of such Equipment, and Lessor shall sell such Equipment, Lessor shall remit to Lessee the Net Proceeds of such sale. (e) For the purposes hereof, with respect to the sale of the Equipment leased under a Lease Schedule: 2018-11-27 Agenda Packet Page 118 [TRAC Rider] 2 “Net Proceeds” means, that certain amount equal to (i) the gross selling price thereof, as and to the extent actually received by Lessor in good collected and indefeasible funds, less (ii) the Related Charges. “Related Charges” means, the aggregate of (A) any selling expenses, (B) amounts which (if not paid) would constitute a Lien on the Equipment for which Lessee is responsible under the Lease documents, and (C) applicable sales use, property, withholding or other transfer taxes or other fees, taxes, withholdings, assessments and other governmental charges, however designated together with any penalties, fines or interest, if any, thereon, (collectively, the “Impositions”). (f) Any such deficiency or excess payment by either Lessee or Lessor pursuant to this Section 1 shall be deemed to be a “Terminal Rental Adjustment” with respect to the Equipment leased under the related Lease Schedule. As required by Section 7701(h) of the Internal Revenue Code of 1986, as now or hereafter amended, Lessee shall execute and deliver to Lessor the Certification by Lessee in substantially the form attached hereto as Exhibit No. 1. Lessee acknowledges that the Truth in Mileage Act of 1986 (and the regulations promulgated thereunder) requires the lessee of motor vehicles (at the time such motor vehicles are terminated from the lease) to provide a written disclosure to the lessor regarding the mileage of such motor vehicles. Under this law, the “failure to complete or providing false information may result in fines and/or imprisonment”. Therefore, Lessee agrees to provide to Lessor (on a form provided by Lessor) upon termination of a motor vehicle from each Lease the mileage disclosure information required by the Federal regulations. 2. OPTION TO PURCHASE. Notwithstanding anything contained to the contrary herein, Lessee shall have the option to purchase all, but not less than all, of the items of Equipment leased under the Lease Schedule. If Lessee desires to exercise this option it shall, at least two hundred forty (240) days before the Expiration Date of such Lease Schedule, give Lessor written notice of its intention to exercise this option to purchase and shall engage in negotiations with Lessor to determine the purchase price for the Equipment. Not less than one hundred eighty (180) days before the Expiration Date, Lessee shall give Lessor written notice of its irrevocable election to purchase (a “Purchase Notice”) on the terms mutually agreed upon during negotiations. However, in the event Lessee fails to timely provide Lessor with either a Purchase Notice or a Return Notice, Lessee shall be deemed to have exercised this option to purchase, upon the Expiration Date of the Lease Schedule, all but not less than all of the Equipment subject thereto upon the following terms and conditions: (a) On the Expiration Date, Lessee shall pay to Lessor in immediately available funds the purchase price for the Equipment, determined as hereinafter provided, together with all Impositions and charges relating to the sale, and all Rent and any other amounts accrued and unpaid under such Lease Schedule and any related Lease documents. (b) Lessee’s exercise of its purchase option pursuant to this Section 2 with respect to any Lease Schedule shall constitute a sale of the Equipment leased thereunder with the same effect as if returned and sold to a third party pursuant to Section 1 above, and Lessee shall be responsible for the performance of its obligations pursuant to Section 1 above, including its obligation to pay to Lessor on the Expiration Date any Terminal Rental Adjustment payment if the purchase price by Lessee to Lessor is less than the Estimated Fair Market Value. (c) The purchase price of the Equipment shall be an amount equal to its then Fair Market Value. For purposes of this Section 2, “Fair Market Value” shall be deemed to be an amount equal to the sale price obtainable in an arms’ length transaction between a willing and informed buyer (who is neither a lessee in possession nor a used automotive dealer) and a willing and informed seller under no compulsion to sell (and assuming that, as of the date of determination, the Equipment is in at least the return condition required by the Lease Schedule and the other Lease documents). The costs of removing and transporting the Equipment from its current location to a willing buyer shall not be deducted from the value of the Equipment. If the parties are unable to agree on the Fair Market Value of the Equipment from the time Lessee has given Lessor its Purchase Notice until at least sixty (60) days prior to the Expiration Date, then Lessor and Lessee shall at Lessee’s expense obtain appraisal values from three (3) independent appraisers 2018-11-27 Agenda Packet Page 119 [TRAC Rider] 3 (one to be selected by Lessor, one by Lessee, and the other by the two selected by Lessor and Lessee; each of whom must be associated with a professional organization of equipment or personal property appraisers, such as the American Society of Appraisers) and the average Fair Market Value as determined by such appraisers shall be final, binding and conclusive. 3. MISCELLANEOUS. Notwithstanding any election of Lessee to return or purchase the Equipment under the Lease Schedule, as the case may be pursuant to this TRAC Rider, the provisions of the Lease Schedule and all related Lease documents shall continue in full force and effect until all amounts required with respect thereto are fully and indefeasibly paid, and all such other actions are taken, and the contemplated purchase is effectively consummated. On such purchase date, Lessor shall deliver to the purchaser of the Equipment (as applicable, either the third party purchaser thereof pursuant to Section 1, or Lessee pursuant to Section 2), a bill of sale conveying to such purchaser, AS IS, WHERE IS, without recourse or warranty, all of Lessor’s right, title and interest in and to such items of Equipment. Lessee shall be solely responsible for, and shall pay or reimburse to Lessor all Related Charges incurred or paid by Lessor in connection with any remarketing or sale of any items of Equipment pursuant to this TRAC Rider. Lessee’s obligations under this TRAC Rider shall survive the expiration, cancellation or termination of the Agreement or the Lease Schedule. The terms and provisions of this TRAC Rider shall be deemed incorporated into and a part of, and pertinent to the Lease Schedule, and solely to the extent any of the provisions of this TRAC Rider shall conflict with the Lease Schedule, or (to the extent incorporated therein) the Agreement, the provisions of this TRAC Rider shall control. [Signatures On Next Page] 2018-11-27 Agenda Packet Page 120 [TRAC Rider] IN WITNESS WHEREOF, the parties hereto have caused this TRAC Rider to be duly executed as of the date first set forth above. LESSEE: _____________________________________ By: Name: Title: LESSOR: LSC FINANCIAL By: Name: Title: 2018-11-27 Agenda Packet Page 121 [TRAC Rider] EXHIBIT NO. 1 TO TRAC RIDER Page 1 EXHIBIT NO. 1 CERTIFIC ATION BY LESSEE This Certification is provided by the undersigned (“Lessee”) in connection with that certain Lease Schedule No. __ dated as of __________ _____, 201__ between LSC FINANCIAL (“Lessor”) and Lessee (the “Lease Schedule”, and together with the Master Lease Purchase Agreement (the “Agreement”) dated as of __________, _____, 201__, between Lessor and Lessee, the “Lease”). The parties intend and agree that the Lease constitute a “qualified motor vehicle operating agreement” within the meaning of Section 7701(h) of the Internal Revenue Code of 1986, as now or hereafter amended, and this Certification is required to be provided pursuant to that Section. Lessee hereby certifies, under penalty of perjury, that it intends that more than fifty (50) percent of the use of the Equipment (as defined in the Lease Schedule) is to be in a trade or business of the Lessee. Lessee acknowledges that it has been advised that it will not be treated as the owner of the Equipment for Federal income tax purposes. Lessee agrees to indemnify Lessor pursuant to the Lease for any claim, losses, costs, damages and expenses (including, without limitation, attorneys’ fees and expenses) of whatsoever kind and nature resulting from Lessee’s breach of the above representations and certifications. IN WITNESS WHEREOF, Lessee has caused this Certification to be duly executed as of the _____ day of__________, 201__. Lessee By: Name: Title: 2018-11-27 Agenda Packet Page 122 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF ELECTRIC VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 120716-NAF THROUGH THE CLIMATE MAYORS ELECTRIC VEHICLE PURCHASING PROGRAM IN AN AMOUNT NOT-TO-EXCEED TWO MILLION DOLLARS ($2,000,000) THROUGH THE TERM OF THE CONTRACT (JANUARY 2021) WHEREAS, section 2.56.140 of the Chula Vista Municipal Code authorizes the City of Chula Vista to purchase equipment through a cooperative purchasing agreement with a joint exercise of powers authority where said equipment is purchased through a competitive process that the Purchasing Agent determines to be consistent with good purchasing practices; and WHEREAS, the City of Chula Vista is a member of Sourcewell (formerly National Joint Powers Alliance), a joint exercise of power authority, that leverages the national cooperative purchasing power of more than 50,000 member agencies; and WHEREAS, Sourcewell has awarded contract number 120716-NAF for Cars, Trucks, Vans, SUVs & Other Vehicles in accordance with its Purchasing Rules and Regulations; and WHEREAS, the City of Chula Vista has a number of vehicles that have reached the end of their useful life and need to be replaced; and 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 light-duty City vehicles that are eligible to be replaced by electric vehicles; 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, Mayor Mary Casillas Salas, member of the Climate Mayors, announced with 19 other founding cities the launch of the Climate Mayors EV Purchasing Collaborative, that allows the City access to a competitively bid contract for the purchase of electric vehicles; and WHEREAS, staff recommends the use of the cooperative purchasing contract to expedite the purchase of electric vehicles. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it authorizes the purchase of electric vehicles from National Auto Fleet Group in accordance with Sourcewell contract number 120716-NAF through the Climate Mayors Electric Vehicle 2018-11-27 Agenda Packet Page 123 Purchasing Program in an amount not to exceed two million dollars ($2,000,000) through the term of the contract (January 2021). Presented by Approved as to form by Iracsema Quilantan Glen R. Googins Director of Public Works City Attorney 2018-11-27 Agenda Packet Page 124 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF HEAVY-DUTY AND SPECIALIZED VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 081716- NAF IN AN AMOUNT NOT-TO-EXCEED FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS ($4,500,000) THROUGH THE TERM OF THE CONTRACT (NOVEMBER 2020) WHEREAS, section 2.56.140 of the Chula Vista Municipal Code authorizes the City of Chula Vista to purchase equipment through a cooperative purchasing agreement with a joint exercise of powers authority where said equipment is purchased through a competitive process that the Purchasing Agent determines to be consistent with good purchasing practices; and WHEREAS, the City of Chula Vista is a member of Sourcewell (formerly National Joint Powers Alliance), a joint exercise of power authority, that leverages the national cooperative purchasing power of more than 50,000 member agencies; and WHEREAS, Sourcewell has awarded National Auto Fleet Group contract number 081716-NAF for Models of Class 6, 7 and 8 Chassis with related accessories and supplies, in accordance with its Purchasing Rules and Regulations; and WHEREAS, the Measure P Expenditure Plan provides for the replacement of failing infrastructure, facilities and equipment; and WHEREAS, of the vehicles and equipment identified for Measure P replacement there are heavy duty and specialty City vehicles that have reached the end of their useful life and need to be replaced; and WHEREAS, staff recommends the use of the cooperative purchasing contract to expedite the purchase of heavy-duty and specialized vehicles. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it authorizes the purchase of heavy-duty and specialized vehicles from National Auto Fleet Group in accordance with Sourcewell contract number 081716-NAF in an amount not to exceed four million five hundred thousand dollars ($4,500,000) through the term of the contract (November 2020). Presented by Approved as to form by Iracsema Quilantan Glen R. Googins Director of Public Works City Attorney 2018-11-27 Agenda Packet Page 125 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A 2-YEAR LEASE PURCHASE AGREEMENT WITH NATIONAL COOPERATIVE LEASING IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 032615-NCL FOR THE ACQUISITION OF THIRTY-FOUR (34) ELECTRIC VEHICLES AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT WHEREAS, section 2.56.140 of the Chula Vista Municipal Code authorizes the City of Chula Vista to purchase equipment through a cooperative purchasing agreement with a joint exercise of powers authority where said equipment is purchased through a competitive process that the Purchasing Agent determines to be consistent with good purchasing practices; and WHEREAS, the City of Chula Vista is a member of Sourcewell (formerly National Joint Powers Alliance), a joint exercise of power authority, that leverages the national cooperative purchasing power of more than 50,000 member agencies; and WHEREAS, Sourcewell has awarded National Cooperative Leasing contract number 032615-NCL for numerous lease options, in accordance with its Purchasing Rules and Regulations; and WHEREAS, staff recommends the use of the National Cooperative Leasing contract to maximize the Federal and State tax rebates associated with the purchase of electric vehicles. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves a 2-Year Lease Purchase Agreement with National Cooperative Leasing in Accordance with Sourcewell Contract Number 032615-NCL for the lease and acquisition of thirty-four (34) electric vehicles, in the form provided, with such 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 City Manager or designee to execute the final lease purchase agreement and all other agreements and other documentation necessary to effectuate the same. 2018-11-27 Agenda Packet Page 126 Presented by Approved as to form by Iracsema Quilantan Glen R. Googins Director of Public Works City Attorney 2018-11-27 Agenda Packet Page 127 P a g e | 1 November 27, 2018 File ID: 18-0514 TITLE Resolution of the Chula Vista Housing Authority approving the issuance of Tax-Exempt Revenue Bonds by CMFA in a principal amount of up to $50,000,000 to be used to finance the acquisition, rehabilitation, improvement and equipping of a 271-unit multifamily rental housing development, located at 1325 Santa Rita East and 1392 East Palomar Street, Chula Vista, California RECOMMENDED ACTION Housing Authority adopt the resolution. SUMMARY The Chula Vista Housing Authority has received a request from Standard Properties (“Project Sponsor”) on behalf of Standard Properties Heritage Venture LP to consent to the issuance of tax exempt private activity bonds by the California Municipal Finance Authority (“CMFA”) to finance the acquisition and rehabilitation of 271 existing affordable units at 1325 Santa Rita East and 1392 East Palomar Street (the “Project”). The rehabilitation would improve the properties and extend the term of the affordable rents for 55 years (currently scheduled to expire in 2052). ENVIRONMENTAL REVIEW 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. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The Housing Advisory Commission was not able to consider a recommendation due to a lack of quorum. DISCUSSION The Project Sponsor is requesting that the Chula Vista Housing Authority (“Housing Authority”) consent to the issuance of tax-exempt private activity bonds for multi-family projects (“tax-exempt bonds”) in an aggregate amount not to exceed $50 million for the acquisition and rehabilitation of the Project located at 1325 Santa Rita East and 1392 East Palomar Street, known as Harvest Ridge Senior and Sunrose Apartments (Attachment 1: Locator Map) by another conduit issuer, CMFA. CMFA is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City 2018-11-27 Agenda Packet Page 128 P a g e | 2 of Chula Vista. CMFA, pursuant to its Joint Exercise of Powers Agreement, is authorized to assist in the financing of facilities, including the acquisition and rehabilitation of such affordable housing by Project Sponsor. In accordance with the Housing Authority’s Multifamily Housing Mortgage Revenue Bond Policy adopted by HA Resolution 2018-01 on April 1, 2018 ("Bond Policy"), the Housing Authority shall be the issuer of all Bonds financing housing projects within the City with limited exceptions. Financing for the acquisition and rehabilitation of the Project began in 2017. At such time, the Housing Authority’s Bond Policy had not yet been adopted and the Authority allowed for the issuance of bonds by other conduit issuers. All due diligence and financing assumptions were based upon bond issuance by CMFA. Subsequently, on February 2, 2018, CMFA approved, by its Resolution 18-006, its intent to issue revenue bonds to finance the project. While the Housing Authority has since adopted its Bond Policy, Staff recommends the Housing Authority consent to the issuance by CMFA as due diligence for the financing of the Project was completed prior to the adoption of its Policy. Project Description Standard Properties, a for-profit developer based in Beverly Hills, specializing in investing in bond financed affordable housing developments, is currently part owner and sponsor of the Project. The Project was built in 2000 with financing through Chula Vista Housing Authority Series 2001A bonds, a $4.4 million loan from the Low and Moderate Income Housing Set-aside Fund (“Low Mod Fund”), and other funding sources. The original 2001 bonds were redeemed in April 2018, as well as full repayment of the $4.4 million Low Mod Loan at such time. Standard Properties is now seeking funding to recapitalize the Project. Recapitalization—involving financial restructuring and improvements being made to a property—is an action on existing low income housing bond financed-tax credit properties which is typical and is to be expected at certain periods in properties' lifecycles. As the Project's tax credit compliance period of 15 years has ended, it is allowable under federal IRS rules for the Project to receive a new tax credit allocation to rehabilitate the property. A concurrent change in ownership will also result, with Standard Properties remaining as a part owner and a new tax credit equity investor. While CMFA will serve as the current issuer for the new bonds, the Project will continue to be restricted for occupancy by lower income households at affordable rents by the original Housing Authority bond regulatory agreement, as well as the Low Mod regulatory agreement. Pursuant to the existing bond and Low Mod regulatory agreements, the Project must still abide by the terms outlined within those regulatory agreements from 2001, until 55 years thereafter. The occupancy and rent restrictions will continue as they are now—30 of the 271 Units will offer restricted rents serving tenants with maximum incomes of 50% of the area median income ("AMI"), 238 units will offer restricted rents for tenants at or below 60% AMI, and two units for resident managers will remain unrestricted. The Housing Authority will also continue to monitor affordability of the Project and will receive an annual fee for these efforts. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the Housing Authority 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 2018-11-27 Agenda Packet Page 129 P a g e | 3 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 Housing Authority 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 development and provision of quality affordable housing for low income families and seniors within master planned communities supports the Economic Vitality goals as it promotes the development of quality neighborhoods that provide a full complement of uses and services in a balanced fashion. With only 16 percent of the housing within the areas east of Interstate-805 available as multifamily housing, the ongoing provision of 271 rental units within the Otay Ranch Village of Heritage community will maintain the availability of housing opportunities for all economic segments of the community. With 57 percent of Chula Vista households earning less than the U.S. Department of Housing and Urban Development’s area median income, the ongoing availability of affordable housing addresses the City’s Connected Community goals as it provides housing to meet residents’ needs and priorities. CURRENT-YEAR FISCAL IMPACT Bond financing is a self-supporting program with the owner responsible for the payment of all costs of issuance and other costs and repayment of the bonds. The Property Owner has requested that CMFA issue multifamily housing revenue bonds in an aggregate principal amount not to exceed $50,000,000 to provide the necessary financing for the acquisition, rehabilitation, improvement and equipping of a 271-unit multifamily residential development. There is no liability to or obligation of the City of Chula Vista or Housing Authority associated with the issuance of the bonds by another conduit issuer for repayment of the bond indebtedness or to incur any costs related to the issuance of the bonds. The Housing Authority did originally issue Series 2001A in an amount of $15,384,000 for the Project that was redeemed in April 2018. Pursuant to the existing bond regulatory agreement from the 2001 bond issuance, the Housing Authority must continue to monitor affordability of the Project and report to CDLAC for the full 55 year term—until February 2058. The Chula Vista Housing Authority will continue to receive compensation for its services in monitoring for compliance in an amount of $19,250 per year. ONGOING FISCAL IMPACT Staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee of $19,250 per year paid to the Housing Authority by the owner until February 2058. ATTACHMENTS 1. Project location map Staff Contact: Leilani Hines, Housing Manager 2018-11-27 Agenda Packet Page 130 HA RESOLUTION NO. __________ RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY APPROVING THE ISSUANCE OF TAX- EXEMPT REVENUE BONDS BY CMFA IN A PRINCIPAL AMOUNT OF UP TO $50,000,000 TO BE USED TO FINANCE THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF A 271-UNIT MULTIFAMILY RENTAL HOUSING DEVELOPMENT, LOCATED AT 1325 SANTA RITA EAST AND 1392 EAST PALOMAR STREET, CHULA VISTA, CALIFORNIA WHEREAS, the California Municipal Finance Authority (the “Authority”) is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 2004 (the “Agreement”), among certain local agencies throughout the State of California, including the City of Chula Vista (the “City”), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Standard Properties Heritage Venture LP (collectively, with any related entity, including Standard Properties LLC, the “Borrower”) has requested that the Authority issue multifamily housing revenue bonds in an aggregate principal amount not to exceed $50,000,000 (the “Bonds”) to be used to finance the acquisition, rehabilitation, improvement and equipping of a 271-unit multifamily rental housing development, located at 1325 Santa Rita East and 1392 East Palomar Street, Chula Vista, California, and to generally be known as Harvest Ridge Senior and Sunrose Apartments; and WHEREAS, pursuant to the Chula Vista Housing Authority Multifamily Housing Mortgage Revenue Bond Policy ("Bond Policy") adopted by HA Resolution 2018-01 on April 1, 2018, the Chula Vista Housing Authority (“Housing Authority”) shall be the issuer of all Bonds financing Projects within the City with limited exceptions; and WHEREAS, financing for the acquisition and rehabilitation of the Project began in 2017 at such time, the Housing Authority’s Bond Policy had not yet been adopted and the Authority allowed for the issuance of bonds by other conduit issuers; and, WHEREAS, all due diligence and financing assumptions were based upon bond issuance by the Authority and such Authority, on February 2, 2018, approved, by its Resolution 18-006, its intent to issue revenue bonds to finance the Project. 2018-11-27 Agenda Packet Page 131 NOW, THEREFORE, BE IT RESOLVED BY THE CHULA VISTA HOUSING AUTHORITY AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. The Chula Vista Housing Authority hereby approves the issuance of the Bonds by the California Municipal Finance Authority. It is the purpose and intent of the Housing Authority that this resolution constitutes approval of the Bonds for the purposes of Section 4 of the Agreement. Section 3. The officers of the Housing Authority are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing approved hereby. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services Legal Counsel 2018-11-27 Agenda Packet Page 132 Exhibit A Location Map Harvest Ridge Senior Apts at 1392 East Palomar Street, Chula Vista, California 2018-11-27 Agenda Packet Page 133 Exhibit A Sunrose Apts at 1325 Santa Rita East, Chula Vista, California 2018-11-27 Agenda Packet Page 134 P a g e | 1 November 27, 2018 File ID: 18-0529 TITLE INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2018 RECOMMENDED ACTION Council (accept/hear) the report. SUMMARY Transmitted herewith is the City’s investment report for the quarter ended September 30, 2018. To meet the reporting requirements set forth in the California Government Code Sections 53600 et seq. and the City of Chula Vista Investment Policy and Guidelines, a separate report was distributed to the City Council in October. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” in accordance with Section 15378(b)(5) of the State CEQA Guidelines because it involves only acceptance of the Quarterly Investment Report; therefore it is an organizational or administrative activity of government that will not result in a direct or indirect 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 necessary. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not Applicable. DISCUSSION The total cash and investment portfolio held by the City as of September 30, 2018 was $278,480,040 and total cash and investments held by the trustees was $122,108,205. The cash and investments held by the City are composed of the following components: Managed Investment Portfolio ($218,341,403), State of CA Local Agency Investment Fund ($1,680,352), County of San Diego Pooled Investment Fund ($33,252,222), Cash/Time Deposits ($23,864,209), and accrued interest on investment ($1,341,854). Cash and investments held by the City and the trustees continue to be 2018-11-27 Agenda Packet Page 135 P a g e | 2 invested in accordance with the Government Code and the Council Investment Policy as adopted by Resolution 2018-090 on May 22, 2018. During the quarter, ten investments matured totaling $19,900,000. In order to maximize investment earnings, $60,000,000 was transferred from the County of San Diego Pooled Investment Fund to the Bank of New York Mellon Custodial Cash Account. An additional $5,000,000 was transferred from the City’s Bank of America main account to the Bank of New York Mellon Custodial Cash Account. The funds from the matured investments and funds transfer to Bank of New York Mellon were utilized to purchase twenty- seven new securities. Those new investment purchases include: two supranationals ($8,000,000); one commercial paper ($4,500,000); three U.S. Treasury bonds ($12,000,000); nine federal agency bonds ($28,944,000); and twelve corporate notes ($33,900,000). Public Financial Management (PFM), the City’s investment advisor, continued to monitor the portfolio and make recommendations throughout the quarter. However, the company was given a 30-day termination notice on August 30, 2018. Ongoing portfolio management activity will be performed in-house by the Director of Finance and finance staff. There is no further activity to report on other than routine investments by the City’s fiscal agents. In September, the Federal Open Market Committee (FOMC) raised the federal funds rate target range by a quarter of a percent to a new range of 2.00% to 2.25%. An additional rate increase is anticipated before the end of the year. Two-year Treasuries yielding 2.53% at the beginning of the quarter ended higher at the end of the quarter at 2.82%, which was an increase of 29 basis points for the quarter. As of September 30, 2018, the Weighted Yield to Maturity on the Managed Investment Portfolio was 2.17%, which was an increase of 38 basis points from the previous quarter. At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 1.38 years, which is an increase from 1.05 the previous quarter and is within the Council Policy. DECISION-MAKER CONFLICT Staff has determined that the action contemplated by this item is ministerial, secretarial, manual, or clerical in nature and, as such, does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations Title 2, section 18704(d)(1). Consequently, this item does not present a 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. 2018-11-27 Agenda Packet Page 136 P a g e | 3 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 investment portfolio supports the Operational Excellence goal as it seeks to maintain the safety and liquidity of the City’s cash while contributing investment earnings to the bottom line. CURRENT-YEAR FISCAL IMPACT Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact by this action. ATTACHMENTS Summary of Cash and Investments as of September 30, 2018 Investment Report for the Quarter Ended September 30, 2018 Staff Contact: Lisa Partee, Fiscal Management Analyst, Finance Department David Bilby, Director of Finance/Treasurer, Finance Department 2018-11-27 Agenda Packet Page 137 % of Investment Type Par Value Market Value Book Value Portfolio Managed Investment Portfolio BNY Custodial Cash Account $98,042 $98,042 $98,042 0.02% U.S. Treasury Bond/Note 72,430,000 71,476,504 72,187,053 18.02% Federal Agency Collateralized Mtg Ob.264,624 263,617 267,274 0.07% Federal Agency Bond/Note 28,944,000 28,456,877 28,493,468 7.11% Corporate Note 69,260,000 68,802,275 69,548,814 17.36% Commercial Paper 21,200,000 21,138,229 20,926,201 5.22% Certificate of Deposit 14,000,000 13,949,302 13,997,880 3.49% Supranationals 8,000,000 7,688,580 7,725,499 1.93% Asset Back Security/Collateralized Mtg Ob. 5,097,437 5,075,544 5,097,172 1.27% Managed Investment Portfolio Subtotal 219,294,102 216,948,969 218,341,403 54.51% Pooled Investments State of CA Local Agency Investment Fund 1,680,352 1,676,710 1,680,352 0.42% County of San Diego Pooled Investment Fund 33,252,222 32,914,712 33,252,222 8.30% Pooled Investments Subtotal 34,932,574 34,591,422 34,932,574 8.72% Cash/Time Deposits 23,864,209 23,864,209 23,864,209 5.96% Accrued Interest 1,341,854 1,341,854 1,341,854 0.33% Total Cash & Investments Held by the City $279,432,739 $276,746,454 $278,480,040 69.52% Held by Bank Trustee/Fiduciary Funds (1) Investment Agreements 0 0 0 0.00% Mutual Funds 90,867,559 90,841,550 90,867,559 22.68% Cash with Fiscal Agents 4,970,216 4,970,216 4,970,216 1.24% Restricted Cash 807,616 807,616 807,616 0.20% U.S. Government 25,462,814 25,462,814 25,462,814 6.36% Total Held by Bank Trustee/Fiduciary Funds $122,108,205 $122,082,196 $122,108,205 30.48% Total Portfolio $401,540,944 $398,828,650 $400,588,245 100.00% Notes: 1. Reflects bond proceeds and tax levy revenues held by trustee in accordance with bond covenants. 2. Par value is the principal amount of the investment on maturity. 3. Market values contained herein are received from sources we believe are reliable, however we do not guarantee their accuracy. 4. LAIF market value on the PFM statement does not include the market value factor as included in the market value above. 5. COSD Pooled Investment Fund market value on the PFM statement does not include the market value factor as included in the market value above. 6. Book value is par value of the security plus or minus any premium or discount and accrued interest included in purchase price. Summary of Cash and Investments as of September 30, 2018 City of Chula Vista 2018-11-27 Agenda Packet Page 138 City of Chula VistaInvestment Report for the Quarter Ended September 30, 2018Portfolio Summary and Key StatisticsDurationPAR Maturing% MaturingUnder 6 Months 51,600,000$ 24%6 - 12 Months 47,579,624$ 22%1 - 2 Years73,259,550$ 33%2 - 3 Years24,621,888$ 11%3 - 4 Years18,535,000$ 8%4 - 5 Years3,600,000$ 2%Total219,196,061$ 100%PAR Value$254,226,676July$302,895Book Value$253,273,977August$380,921Market Value$251,540,391September$357,754Weighted Average Maturity (in years)1.38Total for Quarter $1,041,570Weighted Yield to Maturity2.17%1 Values exclude Trustee held cash and investmentsKey Statistics 1U.S. Treasury YieldsInterest EarningsMaturity Sept ‘18 June ‘18 Change over Quarter 3-Month 2.20% 1.91% +.29% 1-Year 2.56% 2.31% +.25% 2-Year 2.82% 2.53% +.29% 3-Year 2.88% 2.62% +.26% 5-Year 2.95% 2.74% +.21% 10-Year 3.06% 2.86% +.20% Source: City of Chula Vista Finance DepartmentPage 1 of 82018-11-27 Agenda PacketPage 139 Sector DistributionDate: 9/30/2018Investment TypeMarket Value % Held Allowable % % Available Max TermAsset-Backed Security / Collateralized Mortgage Obligation 5,075,544.15 1.66% 20.00% 18.34% 5 YearsCertificate of Deposit13,949,302.43 4.56% 30.00% 25.44% 5 YearsCommercial Paper21,138,229.32 6.91% 25.00% 18.09% 270 DaysCorporate Note68,802,274.50 22.49% 30.00% 7.51% 5 YearsFederal Agency Collateralized Mortgage Obligation263,616.96 0.09% 100.00% 99.91% N/AFederal Agency Bond/Note28,456,876.60 9.30% 100.00% 90.70% N/AU.S. Treasury Bond/Note71,476,503.95 23.36% 100.00% 76.64% N/ASupranational7,688,580.00 2.51% 30.00% 27.49% 5 YearsLocal Agency Investment Fund1,676,709.91 0.55% $50,000,000 $48,323,290 N/ASD County Investment Pool (Measure P)54,422,067.38 17.79% 100.00% 82.21% N/ASD County Investment Pool32,914,711.67 10.76% 100.00% 89.24% N/AMoney Market Fund98,041.55 0.03% 20.00% 19.97% 60 DaysAll Investments 1305,962,458.41 100.00%1 Totals include Trustee held funds in the County of San Diego Investment Pool (Measure P Funds)1.66%4.56%6.91%22.49%0.09%9.30%23.36%2.51%0.55%17.79%10.76%0.03%Current DistributionAsset-Backed Security / CollateralizedMortgage ObligationCertificate of DepositCommercial PaperCorporate NoteFederal Agency Collateralized MortgageObligationFederal Agency Bond/NoteU.S. Treasury Bond/NoteSupranationalLocal Agency Investment FundSD County Investment Pool (Measure P)SD County Investment PoolPage 2 of 82018-11-27 Agenda PacketPage 140 City of Chula VistaCurrent InvestmentsMarket Values as of: 9/30/2018SecurityTypeDescDescriptionDatedDate Coupon MaturityCUSIPParS&P TradeDate SettlementDateOriginalCost YTMBNY Market Value 1IssuerAsset-Backed Security / Collateralized Mortgage Obligation HONDA ABS 2016-1 A32/25/2016 1.220% 12/18/201943814NAC9192,431.11AAA 2/16/2016 2/25/2016192,403.77 1.23 191,832.40HONDA AUTO RECEIVABLESAsset-Backed Security / Collateralized Mortgage Obligation NISSAN ABS 2015-C A310/14/2015 1.370% 5/15/202065478AAD5295,933.45NR 10/6/2015 10/14/2015295,895.77 1.38 294,897.12NISSAN AUTO RECEIVABLESAsset-Backed Security / Collateralized Mortgage Obligation ALLY ABS 2016-3 A35/31/2016 1.440% 8/17/202002007LAC6202,185.07AAA 5/24/2016 5/31/2016202,165.44 1.44 201,478.39ALLY AUTO RECEIVABLES TRUSTAsset-Backed Security / Collateralized Mortgage Obligation HAROT 2018-2 A25/30/2018 2.660% 12/18/202043814UAF61,800,000.00AAA 5/22/2018 5/30/20181,799,997.30 2.66 1,798,629.30HONDA AUTO RECEIVABLESAsset-Backed Security / Collateralized Mortgage Obligation HONDA ABS 2016-4 A310/25/2016 1.210% 12/18/202043814RAC0971,887.52AAA 10/18/2016 10/25/2016971,824.45 1.04 963,057.44HONDA AUTO RECEIVABLESAsset-Backed Security / Collateralized Mortgage Obligation JOHN DEERE ABS 2017-B A37/15/2017 1.820% 10/15/202147788BAD6535,000.00NR 7/11/2017 7/18/2017534,960.84 1.82 527,669.43JOHN DEERE OWNER TRUSTAsset-Backed Security / Collateralized Mortgage Obligation ALLYA 2018-3 A36/27/2018 3.000% 1/17/202302007JAC11,100,000.00AAA 6/19/2018 6/27/20181,099,924.76 3.09 1,097,980.07ALLY AUTO RECEIVABLES TRUSTAsset-Backed Security / Collateralized Mortgage Obligation Sub Totals5,097,437.155,097,172.335,075,544.15Certificate of DepositBANK OF MONTREAL CHICAGO CERT DEPOS2/9/2017 1.880% 2/7/201906427KRC33,000,000.00A-1 2/8/2017 2/9/20173,000,000.00 1.90 2,993,713.29 BANK OF MONTREALCertificate of Deposit SUMITOMO MITSUI BANK NY CD 5/4/2017 2.050% 5/3/201986563YVN03,000,000.00A-1 5/3/2017 5/4/20173,000,000.00 2.05 2,989,355.19SUMITOMO MITSUI FINANCIAL GROUP INCCertificate of DepositSKANDINAV ENSKILDA BANKEN NY CD8/4/2017 1.840% 8/2/201983050FXT33,000,000.00A+ 8/3/2017 8/4/20172,998,830.00 1.85 2,975,564.07SKANDINAVISKA ENSKILDA BANKEN ABCertificate of DepositMUFG BANK LTD/NY CERT DEPOS9/27/2017 2.070% 9/25/201906539RGM31,000,000.00A 9/25/2017 9/27/20171,000,000.00 2.07 992,253.96MITSUBISHI UFJ FINANCIAL GROUP INCCertificate of DepositCREDIT SUISSE NEW YORK CERT DEPOS2/8/2018 2.670% 2/7/202022549LFR11,500,000.00A 2/7/2018 2/8/20181,500,000.00 2.67 1,493,620.11 CREDIT SUISSE GROUPCertificate of DepositBANK OF NOVA SCOTIA HOUSTON CD6/7/2018 3.080% 6/5/202006417GU222,500,000.00A+ 6/5/2018 6/7/20182,499,050.00 3.10 2,504,795.81 BANK OF NOVA SCOTIACertificate of Deposit Sub Totals14,000,000.0013,997,880.00 13,949,302.43Commercial PaperJP MORGAN SECURITIES LLC COMM PAPER3/6/2018 0.000% 10/2/201846640QK261,500,000.00A-1 4/2/2018 4/2/20181,481,623.75 2.44 1,499,621.67JP MORGAN CHASE & COCommercial PaperBNP PARIBAS NY BRANCH COMM PAPER2/16/2018 0.000% 10/15/201809659CKF43,000,000.00A-1 2/16/2018 2/16/20182,957,021.67 2.17 2,996,784.17BNP PARIBASCommercial PaperCREDIT AGRICOLE CIB NY COMM PAPER1/19/2018 0.000% 10/15/201822533UKF93,000,000.00A-1 3/1/2018 3/1/20182,957,440.00 2.27 2,996,784.17CREDIT AGRICOLE SACommercial PaperTOYOTA MOTOR CREDIT CORP COMM PAPER2/20/2018 0.000% 10/15/201889233HKF03,500,000.00A-1+ 2/20/2018 2/20/20183,450,690.83 2.17 3,496,496.11TOYOTA MOTOR CORPCommercial PaperDEXIA CREDIT LOCAL SA NY COMM PAPER5/11/2018 0.000% 12/5/201825214PGV93,000,000.00A-1+ 5/10/2018 5/11/20182,958,400.00 2.43 2,958,400.00DEXIA GROUPCommercial PaperDEXIA CREDIT LOCAL SA NY COMM PAPER5/17/2018 0.000% 12/5/201825214PH301,500,000.00A-1+ 5/16/2018 5/17/20181,480,220.83 2.38 1,520,043.47DEXIA GROUPCommercial PaperNATIXIS NY BRANCH7/26/2018 0.000% 12/14/201863873KME44,500,000.00A-1 7/31/2018 7/31/20184,459,200.00 2.42 4,477,397.29NATIXIS NY BRANCHCommercial PaperCANADIAN IMPERIAL HOLDING COMM PAPER5/10/2018 0.000% 12/31/201813607FMX11,200,000.00A-1 5/16/2018 5/16/20181,181,603.67 2.45 1,192,702.44CANADIAN IMPERIAL BANK OF COMMERCECommercial PaperSub Totals21,200,000.0020,926,200.75 21,138,229.32Corporate NoteUS BANCORP NOTES (CALLABLE)11/7/2013 1.950% 11/15/201891159HHE33,000,000.00A+ 8/17/2015 8/19/20153,021,840.00 1.72 2,998,170.00US BANCORPCorporate NoteBANK OF NY MELLN CORP (CALLABLE) NOTES11/18/2013 2.100% 1/15/201906406HCP21,000,000.00A 9/18/2015 9/21/20151,007,240.00 1.87 998,820.00THE BANK OF NEW YORK MELLON CORPPage 3 of 82018-11-27 Agenda PacketPage 141 City of Chula VistaCurrent InvestmentsMarket Values as of: 9/30/2018SecurityTypeDescDescriptionDatedDate Coupon MaturityCUSIPParS&P TradeDate SettlementDateOriginalCost YTMBNY Market Value 1IssuerCorporate Note IBM CORP NOTE2/12/2014 1.950% 2/12/2019459200HT11,500,000.00A+ 4/23/2015 4/27/20151,528,290.00 1.44 1,497,180.00IBM CORPCorporate NoteTOYOTA MOTOR CREDIT CORP NOTES2/19/2016 1.700% 2/19/201989236TCU71,530,000.00AA- 2/16/2016 2/19/20161,529,816.40 1.70 1,524,782.70TOYOTA MOTOR CORPCorporate NoteCISCO SYSTEMS INC GLOBAL NOTES3/3/2014 2.125% 3/1/201917275RAR31,500,000.00AA- 6/26/2015 6/29/20151,506,270.00 2.01 1,497,735.00CISCO SYSTEMS INCCorporate Note BANK OF AMERICA CORP NOTE 4/1/2014 2.650% 4/1/201906051GFD61,500,000.00A- 6/27/2018 6/27/20181,500,090.00 2.64 1,500,105.00BANK OF AMERICA COCorporate Note APPLE INC GLOBAL NOTES5/6/2014 2.100% 5/6/2019037833AQ31,500,000.00AA+ 6/26/2015 6/29/20151,511,475.00 1.89 1,496,190.00APPLE INCCorporate NoteORACLE CORP7/8/2009 5.000% 7/8/201968389XAG05,000,000.00AA- 8/9/2018 8/13/20185,111,311.04 2.49 5,086,450.00ORACLE CORPCorporate NoteTOYOTA MOTOR CREDIT7/18/2014 2.125% 7/18/201989236TBP93,000,000.00AA- 8/10/2018 8/14/20182,990,535.53 2.47 2,987,430.00TOYOTA MOTOR CORPCorporate NotePNC BANK7/29/2016 1.450% 7/29/201969353REX25,000,000.00A 8/10/2018 8/14/20184,948,949.92 2.53 4,946,600.00PNC BANK NACorporate NoteAMERCIAN EXPRESS CREDIT CORP NOTES8/15/2014 2.250% 8/15/20190258M0DP11,000,000.00A- 9/18/2015 9/21/20151,003,820.00 2.15 995,280.00AMERICAN EXPRESS COCorporate NoteAMERICAN HONDA FINANCE GLOBAL NOTES9/9/2014 2.250% 8/15/201902665WAH41,500,000.00A+ 4/25/2017 4/28/20171,514,325.00 1.82 1,493,055.00 AMERICAN HONDA FINANCECorporate NoteGOLDMAN SACHS GROUP INC 12/13/2016 2.300% 12/13/201938145GAJ91,900,000.00BBB+ 7/25/2018 7/27/20181,881,969.00 3.01 1,883,337.00GOLDMAN SACHS GROUP INCCorporate Note JOHN DEERE CAPITAL CORP6/7/2018 2.556% 1/7/202024422EUF4680,000.00A 6/4/2018 6/7/2018680,000.00 2.56 680,822.80 DEERE & COMPANYCorporate NoteGENERAL ELECTRIC CAP CORP (CALLABLE)1/9/2015 2.200% 1/9/202036962G7M01,500,000.00A 5/26/2016 6/1/20161,533,555.00 1.56 1,484,115.00 GENERAL ELECTRIC COCorporate NoteJPMORGAN CHASE & CO (CALLABLE)1/23/2015 2.250% 1/23/202046625HKA71,000,000.00A- 9/18/2015 9/21/2015993,230.00 2.41 989,770.00 JP MORGAN CHASE & COCorporate NoteJPMORGAN CHASE & CO (CALLABLE)1/23/2015 2.250% 1/23/202046625HKA71,500,000.00A- 4/23/2015 4/27/20151,504,815.00 2.18 1,484,655.00 JP MORGAN CHASE & COCorporate NoteWELLS FARGO & CO CORP BONDS2/2/2015 2.150% 1/30/202094974BGF11,500,000.00A- 3/26/2015 3/27/20151,500,045.00 2.15 1,482,240.00 WELLS FARGO & COMPANYCorporate NoteWELLS FARGO & CO CORP BONDS2/2/2015 2.150% 1/30/202094974BGF11,000,000.00A- 9/18/2015 9/21/2015998,000.00 2.20 988,160.00 WELLS FARGO & COMPANYCorporate NoteMICROSOFT CORP (CALLABLE) NOTE2/12/2015 1.850% 2/12/2020594918AY02,000,000.00AAA 1/13/2017 1/17/20172,006,200.00 1.75 1,974,480.00 MICROSOFT CORPCorporate Note BOEING COMPANY CORP NOTES 7/28/2009 4.875% 2/15/2020097023AZ81,500,000.00A 2/22/2017 2/23/20171,634,145.00 1.78 1,537,770.00 BOEING COMPANYCorporate NoteAMERICAN HONDA FINANCE CORP NOTES3/13/2015 2.150% 3/13/202002665WAU51,500,000.00A+ 3/26/2015 3/27/20151,506,045.00 2.06 1,479,675.00 AMERICAN HONDA FINANCECorporate Note COMCAST CORP CORP NOTES 8/19/2011 5.150% 4/30/202063946BAD21,500,000.00A- 2/22/2017 2/23/20171,642,770.00 2.05 1,546,935.00 COMCAST CORPCorporate NoteAMERICAN EXP CREDIT CORP NT (CALLABLE)5/26/2015 2.375% 5/26/20200258M0DT31,500,000.00A- 6/26/2015 6/29/20151,485,135.00 2.59 1,481,415.00 AMERICAN EXPRESS COCorporate NoteMORGAN STANLEY CORPORATE NOTES6/16/2015 2.800% 6/16/202061761JB321,200,000.00BBB+ 5/23/2018 5/25/20181,192,032.00 3.14 1,190,580.00 MORGAN STANLEYCorporate NoteWELLS FARGO & CO CORP BONDS7/22/2015 2.600% 7/22/202094974BGM61,000,000.00A- 8/9/2018 8/13/2018993,148.52 2.97 990,080.00 WELLS FARGO & COMPANYCorporate NoteBNY MELLON CORP NOTE (CALLABLE)8/17/2015 2.600% 8/17/202006406HDD81,500,000.00A 10/8/2015 10/9/20151,525,875.00 2.22 1,488,165.00THE BANK OF NEW YORK MELLON CORPCorporate Note AMERICAN HONDA FINANCE CB 9/24/2015 2.450% 9/24/202002665WAZ41,000,000.00A+ 10/8/2015 10/9/20151,005,680.00 2.33 988,390.00 AMERICAN HONDA FINANCECorporate NotePEPSICO INC CORP NOTES (CALLABLE)10/14/2015 2.150% 10/14/2020713448DC92,000,000.00A+ 6/1/2016 6/6/20162,032,540.00 1.76 1,967,940.00 PEPSICO INCCorporate NoteEXXON MOBIL3/3/2016 2.222% 3/1/202130231GAV43,000,000.00AA+ 8/13/2018 8/15/20182,957,898.26 2.80 2,940,390.00 EXXON MOBIL CORPCorporate NoteMORGAN STANLEY CORP NOTES4/21/2016 2.500% 4/21/202161746BEA0450,000.00BBB+ 5/11/2016 5/16/2016452,893.50 2.36 439,677.00 MORGAN STANLEYCorporate NoteTOYOTA MOTOR CREDIT9/15/2011 3.400% 9/15/202189233P5F91,000,000.00AA- 9/10/2018 9/12/20181,008,320.00 3.11 1,005,280.00 TOYOTA MOTOR CORPCorporate NoteORACLE CORP7/7/2016 1.900% 9/15/202168389XBK01,000,000.00AA- 9/10/2018 9/12/2018967,460.00 3.04 965,530.00 ORACLE CORPCorporate NoteJOHNSON & JOHNSON3/3/2017 2.250% 3/3/2022478160CD44,000,000.00AAA 8/10/2018 8/14/20183,927,409.77 2.79 3,905,400.00 JOHNSON & JOHNSONCorporate NoteAMERICAN EXP CREDIT CORP NT 3/3/2017 2.700% 3/3/20220258M0EG03,000,000.00A- 8/10/2018 8/14/20182,950,375.28 3.20 2,922,990.00 AMERICAN EXPRESS COCorporate NoteUS BANCORP NOTES3/2/2012 3.000% 3/15/202291159HHC73,000,000.00A+ 8/10/2018 8/14/20182,983,027.74 3.17 2,966,850.00 US BANCORPCorporate NoteUNITED HEALTH7/23/2015 3.350% 7/15/202291324PCN03,000,000.00A+ 9/10/2018 9/13/20183,012,282.41 3.24 2,995,830.00UNITED HEALTHPage 4 of 82018-11-27 Agenda PacketPage 142 City of Chula VistaCurrent InvestmentsMarket Values as of: 9/30/2018SecurityTypeDescDescriptionDatedDate Coupon MaturityCUSIPParS&P TradeDate SettlementDateOriginalCost YTMBNY Market Value 1IssuerCorporate NoteSub Totals69,260,000.0069,548,814.37 68,802,274.50Federal Agency Collateralized Mortgage ObligationFANNIE MAE SERIES 2015-M13 ASQ210/1/2015 1.646% 9/1/20193136AQDQ0264,623.59AA+ 10/7/2015 10/30/2015267,273.51 1.08 263,616.96FANNIE MAEFederal Agency Collateralized Mortgage Obligation Sub Totals264,623.59267,273.51263,616.96Federal Agency Bond/Note FHLMC1/30/2012 2.000% 7/30/20193134G3JM34,000,000.00AA+ 8/10/2018 8/13/20183,985,050.36 2.39 3,980,560.00FREDDIE MACFederal Agency Bond/Note FNMA7/28/2014 1.750% 9/12/20193135G0ZG11,200,000.00AA+ 9/27/2018 9/28/20181,190,316.00 2.61 1,190,112.00FANNIE MAEFederal Agency Bond/Note RFCSP7/15/1990 0.000% 7/15/202076116FAD95,262,000.00NR AGY8/10/2018 8/13/20185,001,976.32 2.66 5,001,478.38RFCSP STRIPFederal Agency Bond/Note FNMA8/1/2017 1.500% 7/30/20203135G0T605,000,000.00AA+ 8/10/2018 8/13/20184,900,687.63 2.54 4,886,200.00FANNIE MAEFederal Agency Bond/Note FFCB8/24/2018 2.680% 8/24/20203133EJXU83,082,000.00AA+ 9/20/2018 9/21/20183,074,348.57 2.81 3,073,401.22FED FARM CREDITFederal Agency Bond/Note FHLMC11/15/2017 1.875% 11/17/20203137EAEK13,000,000.00AA+ 9/21/2018 9/24/20182,941,089.23 2.82 2,940,060.00FREDDIE MACFederal Agency Bond/Note FFCB9/13/2018 2.960% 9/13/20213133EJZD43,000,000.00AA+ 9/10/2018 9/13/20183,000,000.00 2.96 2,989,890.00FED FARM CREDITFederal Agency Bond/Note FHLMC9/17/2018 2.550% 9/17/20213134GSXE01,900,000.00AA+ 9/10/2018 9/17/20181,900,000.00 2.55 1,896,675.00FREDDIE MACFederal Agency Bond/Note FHLB9/28/2018 3.420% 9/28/20233130AEYH72,500,000.00AA+ 9/20/2018 9/28/20182,500,000.00 3.42 2,498,500.00FED HOME LN BANKFederal Agency Bond/Note Sub Totals28,944,000.0028,493,468.11 28,456,876.60U.S. Treasury Bond / Note US TREASURY NOTES10/15/2015 0.875% 10/15/2018912828L813,000,000.00AA+ 12/27/2017 12/28/20172,979,960.94 1.72 2,998,680.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES10/31/2011 1.750% 10/31/2018912828RP73,895,000.00AA+ 8/4/2015 8/5/20153,977,008.01 1.09 3,893,987.30UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES12/2/2013 1.250% 11/30/2018912828A347,975,000.00AA+ 7/2/2015 7/6/20157,994,314.46 1.18 7,963,037.50UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES1/15/2016 1.125% 1/15/2019912828N633,000,000.00AA+ 12/27/2017 12/28/20172,978,789.06 1.81 2,990,220.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES1/31/2012 1.250% 1/31/2019912828SD31,000,000.00AA+ 2/19/2015 2/23/2015994,023.44 1.41 996,460.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES6/2/2014 1.500% 5/31/2019912828WL08,500,000.00AA+ 7/2/2015 7/6/20158,543,828.13 1.36 8,443,900.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES7/15/2016 0.750% 7/15/2019912828S433,000,000.00AAA 8/10/2018 8/13/20182,955,556.62 2.39 2,957,940.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES10/1/2012 1.000% 9/30/2019912828TR12,065,000.00AA+ 4/23/2015 4/27/20152,039,348.83 1.29 2,031,443.75UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES10/1/2012 1.000% 9/30/2019912828TR13,050,000.00AA+ 5/1/2015 5/4/20153,001,867.19 1.37 3,000,437.50UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES10/31/2014 1.500% 10/31/2019912828F628,500,000.00AA+ 7/2/2015 7/6/20158,500,664.06 1.50 8,392,730.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES10/31/2014 1.500% 10/31/2019912828F621,500,000.00AA+ 6/26/2015 6/29/20151,493,496.09 1.60 1,481,070.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES11/30/2012 1.000% 11/30/2019912828UB43,000,000.00AA+ 5/26/2015 5/28/20152,940,468.75 1.46 2,941,770.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES12/1/2014 1.500% 11/30/2019912828G613,000,000.00AA+ 11/29/2016 11/29/20163,009,257.81 1.39 2,958,870.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES2/28/2013 1.250% 2/29/2020912828UQ13,045,000.00AA+ 11/13/2015 11/13/20153,002,774.40 1.59 2,981,724.90UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES2/28/2013 1.250% 2/29/2020912828UQ11,200,000.00AA+ 10/23/2015 10/23/20151,196,156.25 1.33 1,175,064.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES2/28/2013 1.250% 2/29/2020912828UQ11,200,000.00AA+ 10/8/2015 10/13/20151,196,296.88 1.32 1,175,064.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES7/17/2017 1.500% 7/15/20209128282J85,000,000.00AAA 8/10/2018 8/13/20184,901,757.81 2.55 4,886,350.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES7/31/2013 2.000% 7/31/2020912828VP24,000,000.00AAA 8/10/2018 8/13/20183,957,968.76 2.55 3,942,640.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES1/31/2016 1.375% 1/31/2021912828N893,000,000.00AA+ 6/7/2016 6/10/20163,020,507.81 1.22 2,900,040.00UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES3/31/2016 1.250% 3/31/2021912828Q373,500,000.00AA+ 6/7/2016 6/10/20163,503,007.81 1.23 3,365,075.00UNITED STATES TREASURYU.S. Treasury Bond / Note Sub Totals72,430,000.0072,187,053.11 71,476,503.95SupranationalIBRD8/29/2017 1.625% 9/4/2020459058GA53,000,000.00AAA 9/20/2018 9/24/20182,930,550.00 2.86 2,929,380.00INT BK RECON&DEVELOPSupranationalIADB9/14/2017 1.750% 9/14/20224581X0CZ95,000,000.00AAA 8/10/2018 8/14/20184,794,949.30 2.82 4,759,200.00INTERAMER DEVSupranational8,000,000.007,725,499.307,688,580.00Pooled InvestmentsLocal Agency Investment Fund1,680,352.231,680,352.23 1,676,709.91 Pooled InvestmentsSan Diego County Investment Pool33,252,221.7233,252,221.72 32,914,711.67 Pooled Investments Sub Totals34,932,573.9534,932,573.95 34,591,421.57 BNY Custodial Cash Account Money Market Fund98,041.5598,041.5598,041.55All InvestmentsGrand Total254,226,676.24253,273,976.98 251,540,391.031 The Market Value for LAIF and San Diego County Investment Pool are calculated using the Market Price/Fair Value Factor provided by those agencies.Page 5 of 82018-11-27 Agenda PacketPage 143 City of Chula VistaInvestment Activity for the Quarter Ended September 30, 2018MATURITYSecurityTypeDescDescriptionDatedDate Coupon MaturityCUSIPParS & P TradeDate SettlementDateOriginalCost YTMIssuerJul-18Corporate NoteGOLDMAN SACHS GROUP INC 7/19/2013 2.900% 7/19/201838147MAA3500,000.00BBB+ 9/30/2016 9/30/2016512,255.00 1.52GOLDMAN SACHS GROUP INCCorporate NoteGOLDMAN SACHS GROUP INC 7/19/2013 2.900% 7/19/201838147MAA3975,000.00BBB+ 10/28/2015 10/28/20151,004,298.75 1.77GOLDMAN SACHS GROUP INCU.S. Treasury Bond / Note US TREASURY NOTES7/31/2013 1.375% 7/31/2018912828VQ04,500,000.00AA+ 7/2/2015 7/6/20154,544,648.44 1.05UNITED STATES TREASURYAug-18Commercial Paper GE CAPITAL TREASURY LLC 11/20/2017 0.000% 8/13/201836164KHD63,000,000.00A-1 11/21/2017 11/21/20172,962,016.67 1.74GENERAL ELECTRIC COSep-18Corporate NoteCATERPILLAR FINANCIAL SERVICES 9/6/2013 2.450% 9/6/201814912L5T42,450,000.00A 4/19/2017 4/21/20172,477,954.50 1.61CATERPILLAR INCCommercial Paper TOYOTA MOTOR CREDIT CORP 12/12/2017 0.000% 9/7/201889233HJ701,500,000.00A-1+ 12/12/2017 12/12/20171,480,273.33 1.78TOYOTA MOTOR CORPCommercial Paper BNP PARIBAS NY BRANCH 1/8/2018 0.000% 9/10/201809659CJA71,500,000.00A-1 5/4/2018 5/7/20181,488,082.50 2.29BNP PARIBASCommercial Paper CREDIT AGRICOLE CIB NY 5/4/2018 0.000% 9/10/201822533UJA21,500,000.00A-1 5/4/2018 5/4/20181,487,852.50 2.28CREDIT AGRICOLE SACommercial Paper MUFG BANK LTD/NY 4/13/2018 0.000% 9/10/201862479MJA23,000,000.00A-1 5/10/2018 5/10/20182,975,912.50 2.37MITSUBISHI UFJ FINANCIAL GROUP INCCorporate Note CITIGROUP INC CORP NOTES 9/26/2013 2.500% 9/26/2018172967HC8975,000.00BBB+ 10/28/2015 10/28/2015991,233.75 1.91CITIGROUP INCTotal 19,900,000.00BUYSecurityTypeDescDescriptionDatedDate Coupon MaturityCUSIPParStandardAndPoorsTradeDate SettlementDateOriginalCost YTM IssuerJul-18Corporate NoteGOLDMAN SACHS GROUP INC 12/13/2016 2.300% 12/13/201938145GAJ91,900,000.00BBB+ 7/25/2018 7/27/20181,881,969.00 3.01GOLDMAN SACHS GROUP INCCommercial Paper NATIXIS NY BRANCH7/26/2018 0.000% 12/14/201863873KME44,500,000.00A-1 7/31/2018 7/31/20184,459,200.00 2.42NATIXIS NY BRANCHAug-18Corporate NoteORACLE CORP7/8/2009 5.000% 7/8/201968389XAG05,000,000.00AA- 8/9/2018 8/13/20185,111,311.04 2.49ORACLE CORPCorporate NoteTOYOTA MOTOR CREDIT7/18/2014 2.125% 7/18/201989236TBP93,000,000.00AA- 8/10/2018 8/14/20182,990,535.53 2.47TOYOTA MOTOR CORPCorporate NotePNC BANK7/29/2016 1.450% 7/29/201969353REX25,000,000.00A+ 8/10/2018 8/14/20184,948,949.92 2.53PNC BANK NACorporate NoteWELLS FARGO & CO CORP BONDS7/22/2015 2.600% 7/22/202094974BGM61,000,000.00A+ 8/9/2018 8/13/2018993,148.52 2.97WELLS FARGO & COMPANYCorporate NoteEXXON MOBIL3/3/2016 2.222% 3/1/202130231GAV43,000,000.00AA+ 8/13/2018 8/15/20182,957,898.26 2.80EXXON MOBIL CORPCorporate NoteJOHNSON & JOHNSON3/3/2017 2.250% 3/3/2022478160CD44,000,000.00AAA 8/10/2018 8/14/20183,927,409.77 2.79JOHNSON & JOHNSONCorporate NoteAMERICAN EXP CREDIT CORP NT 3/3/2017 2.700% 3/3/20220258M0EG03,000,000.00A 8/10/2018 8/14/20182,950,375.28 3.20AMERICAN EXPRESS COCorporate NoteUS BANCORP NOTES3/2/2012 3.000% 3/15/202291159HHC73,000,000.00AA- 8/10/2018 8/14/20182,983,027.74 3.17US BANCORPFederal Agency Bond/Note FHLMC1/30/2012 2.000% 7/30/20193134G3JM34,000,000.00AA+ 8/10/2018 8/13/20183,985,050.36 2.39FREDDIE MACFederal Agency Bond/Note RFCSP7/15/1990 0.000% 7/15/202076116FAD95,262,000.00NR AGY 8/10/2018 8/13/20185,001,976.32 2.66RFCSP STRIPFederal Agency Bond/Note FNMA8/1/2017 1.500% 7/30/20203135G0T605,000,000.00AAA 8/10/2018 8/13/20184,900,687.63 2.54FANNIE MAEU.S. Treasury Bond / Note US TREASURY NOTES7/15/2016 0.750% 7/15/2019912828S433,000,000.00AAA 8/10/2018 8/13/20182,955,556.62 2.39UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES7/17/2017 1.500% 7/15/20209128282J85,000,000.00AAA 8/10/2018 8/13/20184,901,757.81 2.55UNITED STATES TREASURYU.S. Treasury Bond / Note US TREASURY NOTES7/31/2013 2.000% 7/31/2020912828VP24,000,000.00AAA 8/10/2018 8/13/20183,957,968.76 2.55UNITED STATES TREASURYSupranationalIADB9/14/2017 1.750% 9/14/20224581X0CZ95,000,000.00AAA 8/10/2018 8/14/20184,794,949.30 2.82INTERAMER DEVSep-18Corporate NoteUNITED HEALTH7/23/2015 3.350% 7/15/202291324PCN03,000,000.00A+ 9/10/2018 9/13/20183,012,282.41 3.24UNITED HEALTHCorporate NoteTOYOTA MOTOR CREDIT9/15/2011 3.400% 9/15/202189233P5F91,000,000.00AA- 9/10/2018 9/12/20181,008,320.00 3.11TOYOTA MOTOR CORPCorporate NoteORACLE CORP7/7/2016 1.900% 9/15/202168389XBK01,000,000.00AA- 9/10/2018 9/12/2018967,460.00 3.04ORACLE CORPFederal Agency Bond/Note FFCB9/13/2018 2.960% 9/13/20213133EJZD43,000,000.00AA+ 9/10/2018 9/13/20183,000,000.00 2.96FED FARM CREDITFederal Agency Bond/Note FHLMC9/17/2018 2.550% 9/17/20213134GSXE01,900,000.00AA+ 9/10/2018 9/17/20181,900,000.00 2.55FREDDIE MACSupranationalIBRD8/29/2017 1.625% 9/4/2020459058GA53,000,000.00AAA 9/20/2018 9/24/20182,930,550.00 2.86INT BK RECON&DEVELOPFederal Agency Bond/Note FHLB9/28/2018 3.420% 9/28/20233130AEYH72,500,000.00AA+ 9/20/2018 9/28/20182,500,000.00 3.42FED HOME LN BANKFederal Agency Bond/Note FHLMC11/15/2017 1.875% 11/17/20203137EAEK13,000,000.009/21/2018 9/24/20182,941,089.23 2.82FREDDIE MACFederal Agency Bond/Note FFCB8/24/2018 2.680% 8/24/20203133EJXU83,082,000.009/21/20183,074,348.57 2.81FED FARM CREDITFederal Agency Bond/Note FNMA7/28/2014 1.750% 9/12/20193135G0ZG11,200,000.00AA+ 9/27/2018 9/28/20181,190,316.00 2.61FANNIE MAETotal 87,344,000.00Page 6 of 82018-11-27 Agenda PacketPage 144 Investment Maturity DistributionAs of September 30, 20180 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescriptionPARMaturity Days to Maturity Under 6 Months6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years HONDA ABS 2016-1 A3192,431.11 12/18/2019444-$ -$ 192,431.11$ -$ -$ -$ NISSAN ABS 2015-C A3295,933.45 5/15/2020593-$ -$ 295,933.45$ -$ -$ -$ ALLY ABS 2016-3 A3202,185.07 8/17/2020687-$ -$ 202,185.07$ -$ -$ -$ HAROT 2018-2 A21,800,000.00 12/18/2020810-$ -$ -$ 1,800,000.00$ -$ -$ HONDA ABS 2016-4 A3971,887.52 12/18/2020810-$ -$ -$ 971,887.52$ -$ -$ JOHN DEERE ABS 2017-B A3535,000.00 10/15/20211111-$ -$ -$ -$ 535,000.00$ -$ ALLYA 2018-3 A31,100,000.00 1/17/2023 1570 -$ -$ -$ -$ -$ 1,100,000.00$ Asset-Backed Security / Collateralized Mortgage Obligation-$ -$ 690,549.63$ 2,771,887.52$ 535,000.00$ 1,100,000.00$ BANK OF MONTREAL CHICAGO CERT DEPOS3,000,000.00 2/7/2019130 3,000,000.00$ -$ -$ -$ -$ -$ SUMITOMO MITSUI BANK NY CD3,000,000.00 5/3/2019215-$ 3,000,000.00$ -$ -$ -$ -$ SKANDINAV ENSKILDA BANKEN NY CD3,000,000.00 8/2/2019306-$ 3,000,000.00$ -$ -$ -$ -$ MUFG BANK LTD/NY CERT DEPOS1,000,000.00 9/25/2019360-$ 1,000,000.00$ -$ -$ -$ -$ CREDIT SUISSE NEW YORK CERT DEPOS1,500,000.00 2/7/2020495-$ -$ 1,500,000.00$ -$ -$ -$ BANK OF NOVA SCOTIA HOUSTON CD2,500,000.00 6/5/2020614-$ -$ 2,500,000.00$ -$ -$ -$ Certificate of Deposit3,000,000.00$ 7,000,000.00$ 4,000,000.00$ -$ -$ -$ JP MORGAN SECURITIES LLC COMM PAPER1,500,000.00 10/2/20182 1,500,000.00$ -$ -$ -$ -$ -$ BNP PARIBAS NY BRANCH COMM PAPER3,000,000.00 10/15/201815 3,000,000.00$ -$ -$ -$ -$ -$ CREDIT AGRICOLE CIB NY COMM PAPER3,000,000.00 10/15/201815 3,000,000.00$ -$ -$ -$ -$ -$ TOYOTA MOTOR CREDIT CORP COMM PAPER3,500,000.00 10/15/201815 3,500,000.00$ -$ -$ -$ -$ -$ DEXIA CREDIT LOCAL SA NY COMM PAPER3,000,000.00 12/5/201866 3,000,000.00$ -$ -$ -$ -$ -$ DEXIA CREDIT LOCAL SA NY COMM PAPER1,500,000.00 12/5/201866 1,500,000.00$ -$ -$ -$ -$ -$ NATIXIS NY BRANCH4,500,000.00 12/14/201875 4,500,000.00$ -$ -$ -$ -$ -$ CANADIAN IMPERIAL HOLDING COMM PAPER1,200,000.00 12/31/201892 1,200,000.00$ -$ -$ -$ -$ -$ Commercial Paper21,200,000.00$ -$ -$ -$ -$ -$ US BANCORP NOTES (CALLABLE)3,000,000.00 11/15/201846 3,000,000.00$ -$ -$ -$ -$ -$ BANK OF NY MELLN CORP (CALLABLE) NOTES1,000,000.00 1/15/2019107 1,000,000.00$ -$ -$ -$ -$ -$ IBM CORP NOTE1,500,000.00 2/12/2019 135 1,500,000.00$ -$ -$ -$ -$ -$ TOYOTA MOTOR CREDIT CORP NOTES1,530,000.00 2/19/2019142 1,530,000.00$ -$ -$ -$ -$ -$ CISCO SYSTEMS INC GLOBAL NOTES1,500,000.00 3/1/2019152 1,500,000.00$ -$ -$ -$ -$ -$ BANK OF AMERICA CORP NOTE1,500,000.00 4/1/2019183-$ 1,500,000.00$ -$ -$ -$ -$ APPLE INC GLOBAL NOTES1,500,000.00 5/6/2019218-$ 1,500,000.00$ -$ -$ -$ -$ ORACLE CORP5,000,000.00 7/8/2019281-$ 5,000,000.00$ -$ -$ -$ -$ TOYOTA MOTOR CREDIT3,000,000.00 7/18/2019291-$ 3,000,000.00$ -$ -$ -$ -$ PNC BANK5,000,000.00 7/29/2019302-$ 5,000,000.00$ -$ -$ -$ -$ AMERCIAN EXPRESS CREDIT CORP NOTES1,000,000.00 8/15/2019319-$ 1,000,000.00$ -$ -$ -$ -$ AMERICAN HONDA FINANCE GLOBAL NOTES1,500,000.00 8/15/2019319-$ 1,500,000.00$ -$ -$ -$ -$ GOLDMAN SACHS GROUP INC1,900,000.00 12/13/2019439-$ -$ 1,900,000.00$ -$ -$ -$ JOHN DEERE CAPITAL CORP680,000.00 1/7/2020464-$ -$ 680,000.00$ -$ -$ -$ GENERAL ELECTRIC CAP CORP (CALLABLE)1,500,000.00 1/9/2020466-$ -$ 1,500,000.00$ -$ -$ -$ JPMORGAN CHASE & CO (CALLABLE)1,000,000.00 1/23/2020480-$ -$ 1,000,000.00$ -$ -$ -$ JPMORGAN CHASE & CO (CALLABLE)1,500,000.00 1/23/2020480-$ -$ 1,500,000.00$ -$ -$ -$ WELLS FARGO & CO CORP BONDS1,500,000.00 1/30/2020487-$ -$ 1,500,000.00$ -$ -$ -$ WELLS FARGO & CO CORP BONDS1,000,000.00 1/30/2020487-$ -$ 1,000,000.00$ -$ -$ -$ MICROSOFT CORP (CALLABLE) NOTE2,000,000.00 2/12/2020500-$ -$ 2,000,000.00$ -$ -$ -$ BOEING COMPANY CORP NOTES1,500,000.00 2/15/2020503-$ -$ 1,500,000.00$ -$ -$ -$ AMERICAN HONDA FINANCE CORP NOTES1,500,000.00 3/13/2020530-$ -$ 1,500,000.00$ -$ -$ -$ COMCAST CORP CORP NOTES1,500,000.00 4/30/2020578-$ -$ 1,500,000.00$ -$ -$ -$ AMERICAN EXP CREDIT CORP NT (CALLABLE)1,500,000.00 5/26/2020604-$ -$ 1,500,000.00$ -$ -$ -$ MORGAN STANLEY CORPORATE NOTES1,200,000.00 6/16/2020625-$ -$ 1,200,000.00$ -$ -$ -$ WELLS FARGO & CO CORP BONDS1,000,000.00 7/22/2020661-$ -$ 1,000,000.00$ -$ -$ -$ BNY MELLON CORP NOTE (CALLABLE)1,500,000.00 8/17/2020687-$ -$ 1,500,000.00$ -$ -$ -$ AMERICAN HONDA FINANCE CB1,000,000.00 9/24/2020725-$ -$ 1,000,000.00$ -$ -$ -$ PEPSICO INC CORP NOTES (CALLABLE)2,000,000.00 10/14/2020745-$ -$ -$ 2,000,000.00$ -$ -$ EXXON MOBIL3,000,000.00 3/1/2021883-$ -$ -$ 3,000,000.00$ -$ -$ Page 7 of 82018-11-27 Agenda PacketPage 145 Investment Maturity DistributionAs of September 30, 20180 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescriptionPARMaturity Days to Maturity Under 6 Months6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years MORGAN STANLEY CORP NOTES450,000.00 4/21/2021934-$ -$ -$ 450,000.00$ -$ -$ TOYOTA MOTOR CREDIT1,000,000.00 9/15/20211081-$ -$ -$ 1,000,000.00$ -$ -$ ORACLE CORP1,000,000.00 9/15/20211081-$ -$ -$ 1,000,000.00$ -$ -$ JOHNSON & JOHNSON4,000,000.00 3/3/20221250-$ -$ -$ -$ 4,000,000.00$ -$ AMERICAN EXP CREDIT CORP NT3,000,000.00 3/3/20221250-$ -$ -$ -$ 3,000,000.00$ -$ US BANCORP NOTES3,000,000.00 3/15/20221262-$ -$ -$ -$ 3,000,000.00$ -$ UNITED HEALTH3,000,000.00 7/15/20221384-$ -$ -$ -$ 3,000,000.00$ -$ Corporate Note8,530,000.00$ 18,500,000.00$ 21,780,000.00$ 7,450,000.00$ 13,000,000.00$ -$ FANNIE MAE SERIES 2015-M13 ASQ2264,623.59 9/1/2019336-$ 264,623.59$ -$ -$ -$ -$ Federal Agency Collateralized Mortgage Obligation-$ 264,623.59$ -$ -$ -$ -$ FHLMC4,000,000.00 7/30/2019303-$ 4,000,000.00$ -$ -$ -$ -$ FNMA1,200,000.00 9/12/2019347-$ 1,200,000.00$ -$ -$ -$ -$ RFCSP5,262,000.00 7/15/2020654-$ -$ 5,262,000.00$ -$ -$ -$ FNMA5,000,000.00 7/30/2020669-$ -$ 5,000,000.00$ -$ -$ -$ FFCB3,082,000.00 8/24/2020694-$ -$ 3,082,000.00$ -$ -$ -$ FHLMC3,000,000.00 11/17/2020779-$ -$ -$ 3,000,000.00$ -$ -$ FFCB3,000,000.00 9/13/20211079-$ -$ -$ 3,000,000.00$ -$ -$ FHLMC1,900,000.00 9/17/20211083-$ -$ -$ 1,900,000.00$ -$ -$ FHLB2,500,000.00 9/28/20231824-$ -$ -$ -$ -$ 2,500,000.00$ Federal Agency Bond/Note-$ 5,200,000.00$ 13,344,000.00$ 7,900,000.00$ -$ 2,500,000.00$ US TREASURY NOTES3,000,000.00 10/15/201815 3,000,000.00$ -$ -$ -$ -$ -$ US TREASURY NOTES3,895,000.00 10/31/201831 3,895,000.00$ -$ -$ -$ -$ -$ US TREASURY NOTES7,975,000.00 11/30/201861 7,975,000.00$ -$ -$ -$ -$ -$ US TREASURY NOTES3,000,000.00 1/15/2019 107 3,000,000.00$ -$ -$ -$ -$ -$ US TREASURY NOTES1,000,000.00 1/31/2019 123 1,000,000.00$ -$ -$ -$ -$ -$ US TREASURY NOTES8,500,000.00 5/31/2019 243 -$ 8,500,000.00$ -$ -$ -$ -$ US TREASURY NOTES3,000,000.00 7/15/2019 288 -$ 3,000,000.00$ -$ -$ -$ -$ US TREASURY NOTES2,065,000.00 9/30/2019 365 -$ 2,065,000.00$ -$ -$ -$ -$ US TREASURY NOTES3,050,000.00 9/30/2019 365 -$ 3,050,000.00$ -$ -$ -$ -$ US TREASURY NOTES8,500,000.00 10/31/2019396-$ -$ 8,500,000.00$ -$ -$ -$ US TREASURY NOTES1,500,000.00 10/31/2019396-$ -$ 1,500,000.00$ -$ -$ -$ US TREASURY NOTES3,000,000.00 11/30/2019426-$ -$ 3,000,000.00$ -$ -$ -$ US TREASURY NOTES3,000,000.00 11/30/2019426-$ -$ 3,000,000.00$ -$ -$ -$ US TREASURY NOTES3,045,000.00 2/29/2020 517 -$ -$ 3,045,000.00$ -$ -$ -$ US TREASURY NOTES1,200,000.00 2/29/2020 517 -$ -$ 1,200,000.00$ -$ -$ -$ US TREASURY NOTES1,200,000.00 2/29/2020 517 -$ -$ 1,200,000.00$ -$ -$ -$ US TREASURY NOTES5,000,000.00 7/15/2020 654 -$ -$ 5,000,000.00$ -$ -$ -$ US TREASURY NOTES4,000,000.00 7/31/2020 670 -$ -$ 4,000,000.00$ -$ -$ -$ US TREASURY NOTES3,000,000.00 1/31/2021 854 -$ -$ -$ 3,000,000.00$ -$ -$ US TREASURY NOTES3,500,000.00 3/31/2021 913 -$ -$ -$ 3,500,000.00$ -$ -$ U.S. Treasury Bond / Note18,870,000.00$ 16,615,000.00$ 30,445,000.00$ 6,500,000.00$ -$ -$ IBRD3,000,000.00 9/4/2020705-$ -$ 3,000,000.00$ -$ -$ -$ IADB5,000,000.00 9/14/20221445-$ -$ -$ -$ 5,000,000.00$ -$ Supranational-$ -$ 3,000,000.00$ -$ 5,000,000.00$ -$ Total51,600,000.00$ 47,579,623.59$ 73,259,549.63$ 24,621,887.52$ 18,535,000.00$ 3,600,000.00$ Grand Total 219,196,060.74$ Page 8 of 82018-11-27 Agenda PacketPage 146 P a g e | 1 November 27, 2018 File ID: 18-0464 TITLE ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE, SECTION 19.58.022 (ACCESSORY DWELLING UNITS); CHAPTER 19.26 (ONE AND TWO-FAMILY RESIDENCE ZONE); AND CHAPTER 19.28 (APARTMENT RESIDENTIAL ZONE); WITH REGARD TO ACCESSORY DWELLING UNITS (FIRST READING) RECOMMENDED ACTION Council conduct the public hearing and place the ordinance on first reading. SUMMARY On April 24, 2018 the City Council adopted Accessory Dwelling Unit (ADU) Ordinance No. 3423. Since the ordinance has been in effect, staff has received several concerns from customers regarding Chula Vista Municipal Code (CVMC) Section 19.58.022(C)(9), which requires a separate water and sewer connection for new detached ADUs. Staff is bringing the ADU Ordinance forward to remove this requirementand make other minor amendments, and correct some grammatical errors. ENVIRONMENTAL REVIEW Environmental Determination The Director of Development Services reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On October 24, 2018, the City of Chula Vista Planning Commission recommended adoption of the ADU Ordinance minor amendments (Attachment 2). 2018-11-27 Agenda Packet Page 147 P a g e | 2 DISCUSSION The recently passed State laws AB 494 and SB 229 do not preclude jurisdictions from requiring separate water and sewer connections for new detached ADUs. Chula Vista opted to include this as a requirement in the ADU Ordinance. Following the ordinance’s adoption, staff has heard customer concerns regarding this requirement stating that it is cost prohibitive to build a new detached ADU. Staff reviewed CVMC Section 19.58.022(C)(9), and surveyed several municipalities in the State and found that these municipalities do not require a separate water and sewer connection. Staff agrees that it may be cost prohibitive to build a new detached ADU with the separate water and sewer connection requirement, and recommends removing this requirement. The ADU Ordinance amendment will retain compliance with State law. While reviewing the adopted ADU ordinance, staff made other minor amendments to certain sections for clarification, and also found some minor grammatical errors that need to be corrected. 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 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 ADU Ordinance supports the Strong and Secure Neighborhoods goal as it lowers barriers to affordable housing development. CURRENT-YEAR FISCAL IMPACT All staff costs associated with preparing the ADU Ordinance minor amendments are included in the adopted budget ONGOING FISCAL IMPACT As a planning document, the adoption of the Ordinance will have no direct fiscal impact to the City. However, as projects are implemented both a revenue stream and cost factors will be realized. As implementation of this Ordinance occurs, additional information regarding specific fiscal impacts of future individual projects will be evaluated. ATTACHMENTS 1. Proposed ADU Ordinance (strikeout/underline) 2.Planning Commission Resolution MPA18-0010 3. Planning Commission Minutes Staff Contact: Michael Walker, Senior Planner, DSD Advance Planning Division 2018-11-27 Agenda Packet Page 148 ORDINANCE NO.________ ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE, SECTION 19.58.022 (ACCESSORY DWELLING UNITS); CHAPTER 19.26 (ONE AND TWO-FAMILY RESIDENCE ZONE); AND CHAPTER 19.28 (APARTMENT RESIDENTIAL ZONE); WITH REGARD TO ACCESSORY DWELLING UNITS WHEREAS, in January 2017, the State of California enacted the following laws: Senate Bill 1069; Assembly Bill 2299; and Assembly Bill 2406; and in January 2018 Senate Bill 229; and Assembly Bill 494 to address the statewide affordable housing demand by requiring a ministerial approval process and limiting regulatory requirements for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, on April 24, 2018, the City Council adopted Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Ordinance No. 3423, regulating ADU and JADU development; and WHEREAS, Chula Vista Municipal Code (CVMC) Section 19.58.022(C)(9) requires a separate water and sewer connection for new detached ADUs; and WHEREAS, since the ADU Ordinance went into effect, staff has heard customer concerns regarding the separate water and sewer connection requirement stating that this is cost prohibitive to build a new detached ADU; and WHEREAS, staff reviewed the recently passed State laws AB 494 and SB 229 and found that these laws do not preclude jurisdictions from requiring a separate water and sewer connection for new detached ADUs; and WHEREAS, staff surveyed several municipalities in the State and found that these municipalities do not require a separate water and sewer connection; and WHEREAS, staff agrees that the separate water and sewer connection requirement for new detached ADUs may be cost prohibitive for property owners; and WHEREAS, the ADU Ordinance will retain compliance with State law with the removal of the separate water and sewer connection requirement; and WHEREAS, staff made additional minor amendments to clarify content in certain sections in the ADU Ordinance; and WHEREAS, staff found some minor grammatical errors in the ADU Ordinance that need to be corrected; and WHEREAS, staff prepared said minor amendments to the ADU Ordinance; and 2018-11-27 Agenda Packet Page 149 WHEREAS, on October 24, 2018 the City of Chula Vista Planning Commission held an advertised public hearing on the ADU Ordinance minor amendments and voted 5-0-0-2 to adopt Resolution No. MPA18-0010 and thereby recommended that the City Council adopt the ADU Ordinance minor amendments; and WHEREAS, the City Council reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwithstanding the foregoing, the City Council has also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, no further environmental review is required; and WHEREAS, the City Council set the time and place for a hearing on the subject ADU Ordinance minor amendments and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least ten days prior to the hearing; and WHEREAS, the City Council held a duly noticed public hearing on said ADU Ordinance minor amendments at a time and place as advertised in the Council Chambers located at 276 Fourth Avenue and said hearing was therefore closed. NOW THEREFORE the City Council of the City of Chula Vista does hereby ordain as follows: Section I. Section 19.58.022 Accessory Dwelling Units 19.58.022 Accessory dwelling units. A. The purpose of this section is to provide regulations for the establishment of accessory dwelling units in compliance, inter alia, with California Government Code Section 65852.2. Said units may be located in residential zone districts where adequate public facilities and services are available. Accessory dwelling units are a potential source of affordable housing and shall not be considered in any calculation of allowable density of for the lot upon which they are located, and shall also be deemed consistent with the General Plan and zoning designation of the lot as provided. Accessory dwelling units shall not be considered a separate dwelling unit for the purpose of subdividing the property into individual condominium or lot ownership. B. For the purposes of this section, the following words are defined: 2018-11-27 Agenda Packet Page 150 “Above” as used in this section shall mean an accessory dwelling unit that is attached, and built over a primary residence including an attached garage, or above a detached garage or similar building in the rear yard. “Accessory dwelling unit” shall means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. “Attached” shall mean a wall, floor, or ceiling of an accessory dwelling unit is shared with the primary residence on the property. “Basement” shall mean the same as defined in CVMC 19.04.026. “Behind” shall mean an accessory dwelling unit constructed either entirely between the rear of the primary residence and the rear property line, or at the side of the primary residence, and set back from the front plane of the primary residence at least 50 percent of the distance between the front and back planes of the primary residence (Exhibit B.1). “Buildable pad area” shall mean the level finish grade of the lot not including slopes greater than 50 percent grade (Exhibit B.2). “Detached” shall mean an accessory dwelling unit separated from the primary residence as specified in subsection (C)(5)(ed) of this section. “Living area” shall mean the interior habitable area of a dwelling unit including basements and attics, but does not include garages or any accessory structure. 2018-11-27 Agenda Packet Page 151 “Primary residence” shall mean a proposed or existing single-family dwelling constructed on a lot as the main permitted use by the zone on said parcel. “Tandem parking” shall mean that two or more vehicles are parked on a driveway or in any other location on the lot lined up behind one another. C. Accessory dwelling units shall be subject to the following requirements and development standards: 1. Zones. Accessory dwelling units may accompany a proposed or an existing primary residence in single family zones, on multifamily zoned lots developed with a single- family residence, or similarly zoned lots in the Planned Community (PC) zone. Accessory dwelling units or junior accessory dwelling units are not permitted on lots developed with condominiums, townhomes, apartments, or similar multifamily developments. Construction of a primary residence can be in conjunction with the construction of an accessory dwelling unit. Where a guesthouse or other similar accessory living space exists, accessory and junior accessory dwelling units are not permitted. The conversion of a guest house, other similar living areas, or other accessory structures into an accessory dwelling unit is permitted, provided the conversion meets the intent and property development standards of this section, and all other applicable CVMC requirements. Accessory dwelling units shall not be permitted on lots within a pPlanned uUnit dDevelopment (PUD), unless an amendment to the PUD is approved and specific property development standards are adopted for the construction of said dwelling units for lots within the PUD. 2. Unit Size. The total floor space of an attached or detached accessory dwelling unit shall not exceed 50 percent of the living area of the primary residence or 1,200 square feet whichever is less. The original buildable pad area of a lot may be increased through regrading and/or use of retaining walls or structures as allowed for a specific lot. 3. Unit Location. Accessory dwelling units are prohibited in the required front setback. 4. Height. An accessory dwelling unit, as measured from the ground, shall not exceed the height limit for the primary residence in accordance with the underlying zone. 5. Development Standard Exceptions. Accessory dwelling units shall conform to the underlying zoning and land use development requirements with regards to the setbacks for primary residences with the following exceptions: a. New detached single-story accessory dwelling units are allowed a setback of no less than five feet from the side and rear lot lines. b. For lots with up-slopes between the property line and the side or rear of the house, required yard setbacks are measured from the toe of slope. c. For lots with down-slopes between the property line and the side or rear of the house, required yard setbacks shall be measured from the top of slope. 2018-11-27 Agenda Packet Page 152 d. A new detached accessory dwelling unit shall be located a minimum of 6 feet from a primary residence. e. No setback shall be required for an existing garage that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no less than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage. 6. Lot Coverage. Other than conversions of other structures, new accessory dwelling units and all other structures on the lot are limited to the maximum lot coverage permitted according to the underlying zone. Other than conversions of other structures, a new detached accessory dwelling unit and all other detached accessory structures combined, shall not occupy more than 30 percent of the required rear yard setback. 7. Parking. Parking for an accessory dwelling unit is not required in any of the following instances: i. The accessory dwelling unit is within one-half mile from a public transit stop. ii. The accessory dwelling unit is within an architecturally and historically significant historic district. iii. The accessory dwelling unit is part of a proposed or existing primary residence or an existing accessory structure. iv. The accessory dwelling unit is in an area where on-street parking permits are required, but not offered to the occupant of the accessory dwelling unit. v. The accessory dwelling unit is located within one block of a car share area. 8. Accessory dwelling units not meeting any of the above requirements shall be subject to the following access and parking regulations: a. Parking. Parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom, whichever is less. Parking spaces may be provided in tandem on an existing driveway, provided that access to the garage for the primary residence is not obstructed. Off-street parking shall be permitted in setback areas in locations or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and safety conditions. b. The required parking space(s) shall be on the same lot as the accessory dwelling unit. This parking is in addition to the parking requirements for the primary residence as specified in CVMC 19.62.170. c. Notwithstanding CVMC 19.62.190, when a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, or is converted to an accessory dwelling unit that was previously used by the primary residence, replacement parking shall be provided prior to, or concurrently with, the conversion of the garage into the accessory dwelling unit. The replacement parking may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, covered spaces, uncovered spaces, tandem spaces, or by the use of mechanical automobile parking lifts. If the existing driveway is no longer 2018-11-27 Agenda Packet Page 153 necessary for the access to the converted garage or other required parking, said driveway may be used to satisfy the required parking for the accessory dwelling unit when not exempt from CVMC 19.58.022(C)(7). d. Access to all required parking shall be from a public street, alley or a recorded access easement. Access from a designated utility easement or similar condition shall not be permitted. For any lot proposing an accessory dwelling unit and served by a panhandle or easement access, the access must be a minimum 20 feet in width. e. Curb cuts providing access from the public right-of-way to on-site parking spaces shall be acceptable to the City Engineer. An encroachment construction permit from the City Engineer shall be obtained for any new or widened curb cuts. f. Required parking spaces or required maneuvering area shall be free of any utility poles, support wires, guard rails, stand pipes or meters, and be in compliance with CVMC 19.62.150. g. When a required parking space abuts a fence or wall on either side, the space shall be a minimum of 10 feet wide. If this area also serves as the pedestrian access from an accessory dwelling unit to the street, the paving shall be a minimum 12 feet wide. h. All required parking spaces shall be kept clear for parking purposes only. 9. Utilities. AnThe accessory dwelling unit within a single-family residential zone that is contained within the existing space of a single-family residence or accessory structure and which has independent exterior access shall may be served by the same water and sewer lateral connections that serve the primary residence. A separate electric meter and address may be provided for the accessory dwelling unit. Accessory dwelling units that are not contained within the existing space of a single-family residence or accessory structure shall be served by their own separate water and sewer lateral connections. Separate electric meter and addresses shall be provided for the separate accessory dwelling units. 10. Design Standards. The lot shall retain a single-family appearance by incorporating matching architectural design, building materials and colors of the primary residence with the accessory dwelling unit, and any other accessory structure built concurrently with the accessory dwelling unit. However, the primary residence may be modified to match the new accessory dwelling unit. The accessory dwelling unit shall be subject to the following development design standards: a. Matching architectural design components shall be provided between the primary residence, accessory dwelling unit, and any other accessory structures. These shall include, but are not limited to: i. Window and door type, style, design and treatment; ii. Roof style, pitch, color, material and texture; iii. Roof overhang and fascia size and width; iv. Attic vents color and style; v. Exterior finish colors, texture and materials 2018-11-27 Agenda Packet Page 154 b. A useable rear yard open space of a size at least equal to 50 percent of the required rear yard area of the underlying zone shall be provided contiguous to the primary residence. Access to this open space shall be directly from a common floor space area of the primary residence such as living or dining rooms, kitchens or hallways, and without obstruction or narrow walkways. c. A useable open space that has a minimum dimension of six feet and an area not less than 60 square feet in area shall be provided contiguous to an accessory dwelling unit. A balcony or deck may satisfy this requirement for second story units. d. Windows on second story accessory dwelling units should be staggered and oriented away from adjacent residences closer than 10 feet. The location and orientation of balconies or decks shall also be oriented away from adjacent neighbors’ backyards and living space windows. e. Trash and recycling containers must be stored between pick-up dates in an on-site location that is screened from public view and will not compromise any required open space areas. 11. Designated Historical Sites. An accessory dwelling unit may be allowed on designated or historical sites, provided the location and design of the accessory dwelling unit meets corresponding historical preservation requirements in place at the time the accessory dwelling unit is built, and complies with the requirements of this section including the following: a. The accessory dwelling unit shall be located behind a primary residence that is determined to be a historic resource. b. The construction of the accessory dwelling unit shall not result in the removal of any other historically significant accessory structure, such as garages, outbuildings, stables or other similar structures. c. The accessory dwelling unit shall be designed as to have a distinguishable architectural style and finished materials composition from the historic primary residence or structure. d. Construction of an accessory dwelling unit shall not result in demolition, alteration or movement of any historic structures and any other on-site features that convey the historic significance of the structure and site. e. If an historic house/site is under a Mills Act contract with the City, the contract shall be amended to authorize the introduction of the accessory dwelling unit on the site. 12. Occupancy Requirement. At the time of building permit submittal, and continuously thereafter, the property owner(s) shall reside on the lot on which the accessory dwelling unit is located or constructed. The Zoning Administrator shall have the authority to suspend this occupancy requirement for a period not to exceed five years when evidence has been submitted that one of the following situations exists: 2018-11-27 Agenda Packet Page 155 a. The property owner’s health requires them to temporarily live in an assisted living or nursing facility. b. The property owner is required to live outside the San Diego region as a condition of employment or military service. c. The property owner is required to live elsewhere to care for an immediate family member. d. The property owner has received the property as the result of the settlement of an estate. 13. Land Use Agreement. Concurrent with the issuance of building permits for the construction of an accessory dwelling unit, the property owner shall sign and notarize a land use agreement which sets forth the occupancy and use limitations prescribed in this section. This agreement will be recorded with the County of San Diego Recorder on title to the subject property. This agreement shall run with the land, and inure to the benefit of the City of Chula Vista. 14. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. 15. Recordation of a deed restriction is required, which shall run with the land, shall be filed with the permitting agency, and shall include both of the following: (a) A prohibition on the sale of the accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. (b) A restriction on the size and attributes of the accessory dwelling unit that conforms to this section. 19.58.023 Junior Accessory Dwelling Units.1 A. Definition: “Junior accessory dwelling unit” shall mean a unit that is no more than 500 square feet in size and contained entirely within an existing single-family structureresidence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structureresidence. B. In single-family residential zones, a junior accessory dwelling unit is permitted and shall meet all of the following: 1) One junior accessory dwelling unit per residential lot zoned for single-family residences with a single-family residence already built, and no ADU or guest house exists on the lot. 2) Owner-occupancy is required in the single-family residence in which the junior accessory dwelling unit will be permitted. The owner may reside in either the remaining portion of the structure residence or the newly created junior accessory dwelling unit. 2018-11-27 Agenda Packet Page 156 Owner-occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. 3) Recordation of a deed restriction is required, shall run with the land, and shall be filed with the permitting agency, and shall include both of the following: (a) A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. (b) A restriction on the size and attributes of the junior accessory dwelling unit that conforms to this section. 4) A permitted junior accessory dwelling unit shall be constructed within the existing walls of the structure, single- family residence and require the inclusion of an existing bedroom. 5) A separate entrance from the main entrance to the structure single- family residence is required, with an interior entry to the main living area. A permitted junior accessory dwelling may include a second interior doorway for sound attenuation. 6) An efficiency kitchen for the junior accessory dwelling unit is required, and shall include: (a) A sink with a maximum waste line diameter of one and one-half inches. (b) A cooking facility with appliances that do not require electrical service greater than 120 volts or natural or propane gas. (c) A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. C. Additional parking is not required for a junior accessory dwelling unit. D. For purposes of providing service for water, sewer, or power, including a connection fee, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. Section II. Chapter 19.26 R-2 – ONE- AND TWO-FAMILY RESIDENCE ZONE 19.26.030 Accessory uses and buildings. The following are the accessory uses permitted in an R-2 zone: G. Accessory dwelling units on lots developed with a proposed or existing single-family dwelling, subject to the provisions of CVMC 19.58.022; Section III. 2018-11-27 Agenda Packet Page 157 Chapter 19.28 R-3 – APARTMENT RESIDENTIAL ZONE 19.28.030 Accessory uses and buildings. Accessory uses and buildings in the R-3 zone include: H. Accessory dwelling units on lots developed with a proposed or existing single-family dwelling, subject to the provisions of CVMC 19.58.022. Section IV. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section V. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section VI. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VII. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by: Approved as to form by: _____________________________________ ____________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Developmental Services City Attorney 2018-11-27 Agenda Packet Page 158 RESOLUTION NO. MPA18-0010 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPT AN ORDINANCE AMENDING CHULA VISTA MUNICIPAL CODE SECTION 19.58.022 (ACCESSORY DWELLING UNITS); CHAPTER 19.26 (ONE AND TWO-FAMILY RESIDENCE ZONE); AND CHAPTER 19.28 (APARTMENT RESIDENTIAL ZONE) WITH REGARD TO ACCESSORY DWELLING UNITS WHEREAS, on April 24, 2018, the City Council adopted Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Ordinance No. 3423, regulating ADU and JADU development; and WHEREAS, Chula Vista Municipal Code (CVMC) Section 19.58.022(C)(9) requires a separate water and sewer connection for new detached ADUs; and WHEREAS, since the ADU Ordinance went into effect, staff has heard customer concerns regarding the separate water and sewer connection requirement stating that this is cost prohibitive to build a new detached ADU; and WHEREAS, staff reviewed the recently passed State laws AB 494 and SB 229 and found that these laws do not preclude jurisdictions from requiring a separate water and sewer connection for new detached ADUs; and WHEREAS, staff surveyed several municipalities in the State and found that these municipalities do not require a separate water and sewer connection; and WHEREAS, staff agrees that the separate water and sewer connection requirement for new detached ADUs may be cost prohibitive for property owners; and WHEREAS, the ADU Ordinance will retain compliance with State law with the removal of the separate water and sewer connection requirement; and WHEREAS, staff made additional minor amendments to clarify content in certain sections in the ADU Ordinance; and WHEREAS, staff found some minor grammatical errors in the ADU Ordinance that need to be corrected; and WHEREAS, staff prepared said minor amendments to the ADU Ordinance; and WHEREAS, the Director of Development Services reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; 2018-11-27 Agenda Packet Page 159 PC Resolution MPA18-0010 October 24, 2018 Page -2- therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, no further environmental review is required; and WHEREAS, a hearing time and place was set by the Planning Commission to consider the minor ADU Ordinance amendments and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, at least ten (10) days prior to the hearing; and WHEREAS, the Planning Commission held a duly noticed public hearing to consider said minor ADU Ordinance amendments at the time and place as advertised in the City Council Chambers, 276 Fourth Avenue, and said hearing was thereafter closed. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby recommends that the City Council of the City of Chula Vista adopt an ordinance amending Chula Vista Municipal Code Section 19.58.022 (Accessory Dwelling Units); Chapter 19.26 (One and Two-Family Residence Zone); and Chapter 19.28 (Apartment Residential Zone) with regard to Accessory Dwelling Units. BE IT FURTHER RESOLVED THAT a copy of this Resolution be transmitted to the City Council. Presented by:Approved as to form by: ______________________________________________ Kelly Broughton, FSLA Glen Goggins Director of Development Services City Attorney 2018-11-27 Agenda Packet Page 160 PC Resolution MPA18-0010 October 24, 2018 Page -3- PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA, CALIFORNIA, this _____ day of ____________, 2018, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: ________________________ Gabe Gutierrez, Chair ATTEST: _______________________ Patricia Salvacion, Secretary 2018-11-27 Agenda Packet Page 161 Attachment 3 Planning Commission meeting minutes will be provided on the dais. 2018-11-27 Agenda Packet Page 162 ORDINANCE NO.________ ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE, SECTION 19.58.022 (ACCESSORY DWELLING UNITS); CHAPTER 19.26 (ONE AND TWO-FAMILY RESIDENCE ZONE); AND CHAPTER 19.28 (APARTMENT RESIDENTIAL ZONE); WITH REGARD TO ACCESSORY DWELLING UNITS WHEREAS, in January 2017, the State of California enacted the following laws: Senate Bill 1069; Assembly Bill 2299; and Assembly Bill 2406; and in January 2018 Senate Bill 229; and Assembly Bill 494 to address the statewide affordable housing demand by requiring a ministerial approval process and limiting regulatory requirements for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, on April 24, 2018, the City Council adopted Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Ordinance No. 3423, regulating ADU and JADU development; and WHEREAS, Chula Vista Municipal Code (CVMC) Section 19.58.022(C)(9) requires a separate water and sewer connection for new detached ADUs; and WHEREAS, since the ADU Ordinance went into effect, staff has heard customer concerns regarding the separate water and sewer connection requirement stating that this is cost prohibitive to build a new detached ADU; and WHEREAS, staff reviewed the recently passed State laws AB 494 and SB 229 and found that these laws do not preclude jurisdictions from requiring a separate water and sewer connection for new detached ADUs; and WHEREAS, staff surveyed several municipalities in the State and found that these municipalities do not require a separate water and sewer connection; and WHEREAS, staff agrees that the separate water and sewer connection requirement for new detached ADUs may be cost prohibitive for property owners; and WHEREAS, the ADU Ordinance will retain compliance with State law with the removal of the separate water and sewer connection requirement; and WHEREAS, staff made additional minor amendments to clarify content in certain sections in the ADU Ordinance; and WHEREAS, staff found some minor grammatical errors in the ADU Ordinance that need to be corrected; and WHEREAS, staff prepared said minor amendments to the ADU Ordinance; and 2018-11-27 Agenda Packet Page 163 WHEREAS, on October 24, 2018 the City of Chula Vista Planning Commission held an advertised public hearing on the ADU Ordinance minor amendments and voted 5-0-0-2 to adopt Resolution No. MPA18-0010 and thereby recommended that the City Council adopt the ADU Ordinance minor amendments; and WHEREAS, the City Council reviewed the proposed legislative action for compliance with the California Environmental Quality Act (CEQA) and determined that the action is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action is not subject to CEQA. In addition, notwithstanding the foregoing, the City Council has also determined that the action qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, no further environmental review is required; and WHEREAS, the City Council set the time and place for a hearing on the subject ADU Ordinance minor amendments and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least ten days prior to the hearing; and WHEREAS, the City Council held a duly noticed public hearing on said ADU Ordinance minor amendments at a time and place as advertised in the Council Chambers located at 276 Fourth Avenue and said hearing was therefore closed. NOW THEREFORE the City Council of the City of Chula Vista does hereby ordain as follows: Section I. Section 19.58.022 Accessory Dwelling Units 19.58.022 Accessory dwelling units. A. The purpose of this section is to provide regulations for the establishment of accessory dwelling units in compliance, inter alia, with California Government Code Section 65852.2. Said units may be located in residential zone districts where adequate public facilities and services are available. Accessory dwelling units are a potential source of affordable housing and shall not be considered in any calculation of allowable density for the lot upon which they are located, and shall also be deemed consistent with the General Plan and zoning designation of the lot as provided. Accessory dwelling units shall not be considered a separate dwelling unit for the purpose of subdividing the property into individual condominium or lot ownership. B. For the purposes of this section, the following words are defined: “Above” shall mean an accessory dwelling unit that is attached, and built over a primary residence including an attached garage, or above a detached garage or similar building in the rear yard. 2018-11-27 Agenda Packet Page 164 “Accessory dwelling unit” shall mean an attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. “Attached” shall mean a wall, floor, or ceiling of an accessory dwelling unit is shared with the primary residence on the property. “Basement” shall mean the same as defined in CVMC 19.04.026. “Behind” shall mean an accessory dwelling unit constructed either entirely between the rear of the primary residence and the rear property line, or at the side of the primary residence, and set back from the front plane of the primary residence at least 50 percent of the distance between the front and back planes of the primary residence (Exhibit B.1). “Buildable pad area” shall mean the level finish grade of the lot not including slopes greater than 50 percent grade (Exhibit B.2). “Detached” shall mean an accessory dwelling unit separated from the primary residence as specified in subsection (C)(5)(d) of this section. “Living area” shall mean the interior habitable area of a dwelling unit including basements and attics, but does not include garages or any accessory structure. “Primary residence” shall mean a proposed or existing single-family dwelling constructed on a lot as the main permitted use by the zone on said parcel. 2018-11-27 Agenda Packet Page 165 “Tandem parking” shall mean two or more vehicles parked on a driveway or in any other location on the lot lined up behind one another. C. Accessory dwelling units shall be subject to the following requirements and development standards: 1. Zones. Accessory dwelling units may accompany a proposed or an existing primary residence in single family zones, on multifamily zoned lots developed with a single- family residence, or similarly zoned lots in the Planned Community (PC) zone. Accessory dwelling units or junior accessory dwelling units are not permitted on lots developed with condominiums, townhomes, apartments, or similar multifamily developments. Construction of a primary residence can be in conjunction with the construction of an accessory dwelling unit. Where a guesthouse or other similar accessory living space exists, accessory and junior accessory dwelling units are not permitted. The conversion of a guest house, other similar living areas, or other accessory structures into an accessory dwelling unit is permitted, provided the conversion meets the intent and property development standards of this section, and all other applicable CVMC requirements. Accessory dwelling units shall not be permitted on lots within a Planned Unit Development (PUD), unless an amendment to the PUD is approved and specific property development standards are adopted for the construction of said dwelling units for lots within the PUD. 2. Unit Size. The total floor space of an attached or detached accessory dwelling unit shall not exceed 50 percent of the living area of the primary residence or 1,200 square feet whichever is less. The original buildable pad area of a lot may be increased through regrading and/or use of retaining walls or structures as allowed for a specific lot. 3. Unit Location. Accessory dwelling units are prohibited in the required front setback. 4. Height. An accessory dwelling unit, as measured from the ground, shall not exceed the height limit for the primary residence in accordance with the underlying zone. 5. Development Standard Exceptions. Accessory dwelling units shall conform to the underlying zoning and land use development requirements for primary residences with the following exceptions: a. New detached single-story accessory dwelling units are allowed a setback of no less than five feet from the side and rear lot lines. b. For lots with up-slopes between the property line and the side or rear of the house, required yard setbacks are measured from the toe of slope. c. For lots with down-slopes between the property line and the side or rear of the house, required yard setbacks shall be measured from the top of slope. d. A new detached accessory dwelling unit shall be located a minimum of 6 feet from a primary residence. 2018-11-27 Agenda Packet Page 166 e. No setback shall be required for an existing garage that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no less than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage. 6. Lot Coverage. Other than conversions of other structures, new accessory dwelling units and all other structures on the lot are limited to the maximum lot coverage permitted according to the underlying zone. Other than conversions of other structures, a new detached accessory dwelling unit and all other detached accessory structures combined, shall not occupy more than 30 percent of the required rear yard setback. 7. Parking. Parking for an accessory dwelling unit is not required in any of the following instances: i. The accessory dwelling unit is within one-half mile from a public transit stop. ii. The accessory dwelling unit is within an architecturally and historically significant historic district. iii. The accessory dwelling unit is part of a proposed or existing primary residence or an existing accessory structure. iv. The accessory dwelling unit is in an area where on-street parking permits are required, but not offered to the occupant of the accessory dwelling unit. v. The accessory dwelling unit is located within one block of a car share area. 8. Accessory dwelling units not meeting any of the above requirements shall be subject to the following access and parking regulations: a. Parking. Parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom, whichever is less. Parking spaces may be provided in tandem on an existing driveway, provided that access to the garage for the primary residence is not obstructed. Off-street parking shall be permitted in setback areas in locations or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and safety conditions. b. The required parking space(s) shall be on the same lot as the accessory dwelling unit. This parking is in addition to the parking requirements for the primary residence as specified in CVMC 19.62.170. c. Notwithstanding CVMC 19.62.190, when a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, or is converted to an accessory dwelling unit that was previously used by the primary residence, replacement parking shall be provided prior to, or concurrently with, the conversion of the garage into the accessory dwelling unit. The replacement parking may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, covered spaces, uncovered spaces, tandem spaces, or by the use of mechanical automobile parking lifts. If the existing driveway is no longer necessary for access to the converted garage or other required parking, said driveway may be used to satisfy the required parking for the accessory dwelling unit when not exempt from CVMC 19.58.022(C)(7). 2018-11-27 Agenda Packet Page 167 d. Access to all required parking shall be from a public street, alley or a recorded access easement. Access from a designated utility easement or similar condition shall not be permitted. For any lot proposing an accessory dwelling unit and served by a panhandle or easement access, the access must be a minimum 20 feet in width. e. Curb cuts providing access from the public right-of-way to on-site parking spaces shall be acceptable to the City Engineer. A construction permit from the City Engineer shall be obtained for any new or widened curb cuts. f. Required parking spaces or required maneuvering area shall be free of any utility poles, support wires, guard rails, stand pipes or meters, and be in compliance with CVMC 19.62.150. g. When a required parking space abuts a fence or wall on either side, the space shall be a minimum of 10 feet wide. If this area also serves as the pedestrian access from an accessory dwelling unit to the street, the paving shall be a minimum 12 feet wide. h. All required parking spaces shall be kept clear for parking purposes only. 9. Utilities. An accessory dwelling unit may be served by the same water and sewer lateral connections that serve the primary residence. A separate electric meter and address may be provided for the accessory dwelling unit. 10. Design Standards. The lot shall retain a single-family appearance by incorporating matching architectural design, building materials and colors of the primary residence with the accessory dwelling unit, and any other accessory structure built concurrently with the accessory dwelling unit. However, the primary residence may be modified to match the new accessory dwelling unit. The accessory dwelling unit shall be subject to the following development design standards: a. Matching architectural design components shall be provided between the primary residence, accessory dwelling unit, and any other accessory structures. These shall include, but are not limited to: i. Window and door type, style, design and treatment; ii. Roof style, pitch, color, material and texture; iii. Roof overhang and fascia size and width; iv. Attic vents color and style; v. Exterior finish colors, texture and materials b. A useable rear yard open space of a size at least equal to 50 percent of the required rear yard area of the underlying zone shall be provided contiguous to the primary residence. Access to this open space shall be directly from a common floor space area of the primary residence such as living or dining rooms, kitchens or hallways, and without obstruction or narrow walkways. 2018-11-27 Agenda Packet Page 168 c. A useable open space that has a minimum dimension of six feet and an area not less than 60 square feet in area shall be provided contiguous to an accessory dwelling unit. A balcony or deck may satisfy this requirement for second story units. d. Windows on second story accessory dwelling units should be staggered and oriented away from adjacent residences closer than 10 feet. The location and orientation of balconies or decks shall also be oriented away from adjacent backyards and living space windows. e. Trash and recycling containers must be stored between pick-up dates in an on-site location that is screened from public view and will not compromise any required open space areas. 11. Designated Historical Sites. An accessory dwelling unit may be allowed on designated or historical sites, provided the location and design of the accessory dwelling unit meets corresponding historical preservation requirements in place at the time the accessory dwelling unit is built, and complies with the requirements of this section including the following: a. The accessory dwelling unit shall be located behind a primary residence that is determined to be a historic resource. b. The construction of the accessory dwelling unit shall not result in the removal of any other historically significant accessory structure, such as garages, outbuildings, stables or other similar structures. c. The accessory dwelling unit shall be designed as to have a distinguishable architectural style and finished materials composition from the historic primary residence or structure. d. Construction of an accessory dwelling unit shall not result in demolition, alteration or movement of any historic structures and any other on-site features that convey the historic significance of the structure and site. e. If an historic house/site is under a Mills Act contract with the City, the contract shall be amended to authorize the introduction of the accessory dwelling unit on the site. 12. Occupancy Requirement. At the time of building permit submittal, and continuously thereafter, the property owner(s) shall reside on the lot on which the accessory dwelling unit is located or constructed. The Zoning Administrator shall have the authority to suspend this occupancy requirement for a period not to exceed five years when evidence has been submitted that one of the following situations exists: a. The property owner’s health requires them to temporarily live in an assisted living or nursing facility. b. The property owner is required to live outside the San Diego region as a condition of employment or military service. 2018-11-27 Agenda Packet Page 169 c. The property owner is required to live elsewhere to care for an immediate family member. d. The property owner has received the property as the result of the settlement of an estate. 13. Land Use Agreement. Concurrent with the issuance of building permits for the construction of an accessory dwelling unit, the property owner shall sign and notarize a land use agreement which sets forth the occupancy and use limitations prescribed in this section. This agreement will be recorded with the County of San Diego Recorder on title to the subject property. This agreement shall run with the land, and inure to the benefit of the City of Chula Vista. 14. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. 15. Recordation of a deed restriction is required, which shall run with the land, shall be filed with the permitting agency, and shall include both of the following: (a) A prohibition on the sale of the accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. (b) A restriction on the size and attributes of the accessory dwelling unit that conforms to this section. 19.58.023 Junior Accessory Dwelling Units. A. Definition: “Junior accessory dwelling unit” shall mean a unit that is no more than 500 square feet in size and contained entirely within an existing single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing residence. B. In single-family residential zones, a junior accessory dwelling unit is permitted and shall meet all of the following: 1) One junior accessory dwelling unit per residential lot zoned for single-family residences with a single-family residence already built, and no ADU or guest house exists on the lot. 2) Owner-occupancy is required in the single-family residence in which the junior accessory dwelling unit will be permitted. The owner may reside in either the remaining portion of the residence or the newly created junior accessory dwelling unit. Owner- occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. 3) Recordation of a deed restriction is required, shall run with the land, and shall be filed with the permitting agency, and shall include both of the following: 2018-11-27 Agenda Packet Page 170 (a) A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers. (b) A restriction on the size and attributes of the junior accessory dwelling unit that conforms to this section. 4) A permitted junior accessory dwelling unit shall be constructed within the existing walls of the single-family residence and require the inclusion of an existing bedroom. 5) A separate entrance from the main entrance to the single-family residence is required, with an interior entry to the main living area. A permitted junior accessory dwelling may include a second interior doorway for sound attenuation. 6) An efficiency kitchen for the junior accessory dwelling unit is required, and shall include: (a) A sink with a maximum waste line diameter of one and one-half inches. (b) A cooking facility with appliances that do not require electrical service greater than 120 volts or natural or propane gas. (c) A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. C. Additional parking is not required for a junior accessory dwelling unit. D. For purposes of providing service for water, sewer, or power, including a connection fee, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. Section II. Chapter 19.26 R-2 – ONE- AND TWO-FAMILY RESIDENCE ZONE 19.26.030 Accessory uses and buildings. The following are the accessory uses permitted in an R-2 zone: G. Accessory dwelling units on lots developed with a proposed or existing single-family dwelling, subject to the provisions of CVMC 19.58.022; Section III. Chapter 19.28 R-3 – APARTMENT RESIDENTIAL ZONE 19.28.030 Accessory uses and buildings. Accessory uses and buildings in the R-3 zone include: H. Accessory dwelling units on lots developed with a proposed or existing single-family 2018-11-27 Agenda Packet Page 171 dwelling, subject to the provisions of CVMC 19.58.022. Section IV. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section V. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section VI. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VII. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by:Approved as to form by: _____________________________________ ____________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Developmental Services City Attorney 2018-11-27 Agenda Packet Page 172 P a g e | 1 November 27, 2018 File ID: 18-0516 TITLE RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL ADOPTING THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN UPDATE WHICH WILL BRING THE DOCUMENT UP-TO-DATE WITH CURRENT OTAY RANCH PRESERVE MANAGEMENT STRUCTURE AND ANNUAL OPERATING BUDGET, OWNERSHIP, AND BIOLOGICAL MONITORING AND MANAGEMENT REQUIREMENTS RECOMMENDED ACTION Council adopt the resolution. SUMMARY This is a request for the City Council to consider and adopt the Otay Ranch Phase 2 Resource Management Plan (RMP) Update. On October 28, 1993, the City of Chula Vista City Council and the County of San Diego Board of Supervisors (Board) adopted the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) which guides the development and preservation of lands within the Otay Ranch properties. The GDP/SRP established Otay Ranch as 14 villages and 7 planning areas. A two-phase Resource Management Plan (RMP) is required by the GDP/SRP to guide the monitoring and management of sensitive resources conserved in the Otay Ranch Preserve. The Phase 1 RMP, adopted concurrently with the GDP/SRP, established a comprehensive program for the long-term protection and management of sensitive natural, cultural, and scenic resources located within the Preserve, establishing a framework for habitat protection. The Phase 2 RMP provides an implementation strategy to meet the goals and objectives established within the Phase 1 RMP. The City adopted its Phase 2 RMP on March 6, 1996. The Board approved portions of the 1996 Phase 2 RMP including the Otay Ranch Conveyance Plan and the financing for the management and monitoring of the Preserve. This allowed development to progress in Otay Ranch within the City’s jurisdiction. Both the City Council and the Board amended the Phase 2 RMP twice to reflect changing circumstances in the region; however, as no Otay Ranch developments were being proposed in the unincorporated area of the County until recently, the Board has never adopted a Phase 2 RMP in its entirety. The Board must adopt a Phase 2 RMP prior to considering Otay Ranch development proposals within their jurisdiction. This has prompted the comprehensive update to the Phase 2 RMP adopted and amended by City Council. ENVIRONMENTAL REVIEW 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 was adequately covered in the previously certified Final Program Environmental Impact Report (SCH) No. 89010154 for Otay 2018-11-27 Agenda Packet Page 173 P a g e | 2 Ranch, dated December 1992, and the Findings of Fact for Otay Ranch GDP/SRP, dated October 28, 1993. Therefore, no further environmental review or documentation is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On October 24, 2018, the City of Chula Vista Planning Commission voted unanimously (5-0-0-1, with one Commissioner absent and one vacant Commissioner seat) to adopt Resolution MPA 18-0013 recommending that the City Council adopt the Phase 2 RMP Update. DISCUSSION The approximately 23,000-acre Otay Ranch property is located in southwestern San Diego County, with a portion of the project located in the City of Chula Vista (City), and a portion in unincorporated San Diego County. City Council and the County of San Diego (County) Board adopted the Otay Ranch General GDP/SRP on October 28, 1993. The GDP/SRP is an integrated policy document that plans for activities within Otay Ranch in a manner that addresses planning requirements for both the City and the County. The GDP/SRP provides a foundation for the subsequent consideration and approval of more detailed plans and project- specific environmental documents for the individual villages and planning areas in Otay Ranch. Subsequent permit applications for each Village are governed separately by the City and the County. Comprehensive resource management is an integral component of the GDP/SRP. The GDP/SRP established a land conservation program so that as development proceeded in Otay Ranch, open space lands would be conveyed into the Otay Ranch Preserve (Preserve) as a condition of approval for Sectional Planning Area (SPA) Plans that guide project-specific development. To guide protection and management of sensitive resources located within the Preserve, a Resource Management Plan (RMP) was required to be prepared. The GDP/SRP envisioned development of the RMP for Otay Ranch in two phases – the Phase 1 RMP was adopted by the City and the County in 1993 with approval of the GDP/SRP. Phase 1 RMP establishes goals and objectives for resource management, and also includes policies, standards, and guidelines from the GDP/SRP to guide future development within Otay Ranch and management and monitoring activities within the Preserve. Phase 2 RMP– Previous Actions The GDP/SRP envisioned that the Phase 2 RMP would provide an implementation strategy to meet the resource protection goals, objectives, policies, standards, and guidelines established in the GDP/SRP and Phase 1 RMP. Phase 2 RMP was originally prepared and considered by the City and the County in 1996. The City adopted RMP2 in its entirety on June 4, 1996 and amended portions of the document related to the Conveyance Plan in 1998 and 2006. In 1998 the Conveyance Plan was amended to expand conveyance beyond SPA One and enlarge the first area of conveyance to include all high-priority biological resource areas. In 2006, acknowledging that the majority of prioritized land had already been conveyed to the Preserve Owner/Manager (POM), the City Council approved elimination of the Conveyance Plan. The Board adopted portions of Phase 2 RMP in 1996 that allowed development within the City’s jurisdiction to move forward but did not adopt the document in its entirety. The Board also amended the Conveyance Plan in 2002 and 2007 but again did not adopt the Phase 2 RMP in its entirety in either 2002 or 2007 as development had not progressed within the unincorporated area of Otay Ranch. In 1996, City Council and the Board authorized the formation of the POM through a Joint Powers Agreement of the City and the County. The POM is responsible for managing the Preserve in perpetuity. Summary of Current Actions – Purpose and Need for the Phase 2 RMP Update Preparation of the first Specific Plans within the County’s jurisdiction requires the County to adopt the Phase 2 RMP in its entirety. This is the first comprehensive update to the Phase 2 RMP since the City originally adopted the document in 1996. Since adoption of the GDP/SRP, the City and County adopted 2018-11-27 Agenda Packet Page 174 P a g e | 3 their respective Multiple Species Conservation Program (MSCP) Subarea Plans. There have also been changes in land ownership, improvements to biological monitoring protocols, and the Preserve is in the process of being assembled. The proposed Phase 2 RMP Update includes a comprehensive accounting of the actions that affect resource management in Otay Ranch, and which are necessary to bring the Phase 2 RMP up to date with current information. If adopted, the Phase 2 RMP Update will replace the existing 1996 Phase 2 RMP, which includes amendments from 2002 and 2006. The Board adopted the Phase 2 RMP Update on September 12, 2018. ANALYSIS Consistency with the Otay Ranch GDP/SRP and Phase 1 RMP The GDP/SRP contains a policy that acknowledges that Otay Ranch Implementation Documents may be amended or updated in response to changing conditions. Many actions and changes have occurred to land use plans, habitat conservation plans, ownership, and biological management and monitoring standards since the GDP/SRP was adopted in 1993. Additionally, the Phase 1 RMP acknowledges that the subsequent Phase 2 RMP would include additional studies and research to refine the Preserve boundary, which was mapped at a broad scale in the previous RMP documents. The changes proposed in the Phase 2 RMP Update memorialize: 1) boundary changes that have occurred due to GDP/SRP amendments; 2) past conveyances and project anticipated future conveyances; 3) the way in which the (POM) functions and will continue to function under the current Joint Powers Agreement; 4) the progress made toward meeting GDP/SRP and Phase 1 RMP policies related to biological and cultural resources; and 5) biological updates to the Biota Monitoring Program consistent with current practices and standards, clarifications regarding implementation of a long-term Raptor Management Program for Otay Ranch, and finalized boundaries for the Vernal Pool Preservation Area. The changes included in the Phase 2 RMP Update improve resource management in Otay Ranch and are consistent with the original intent of the GDP/SRP and Phase 1 RMP. No changes are proposed to the amount, intensity, or location of land development approved under the GDP/SRP. Changes to the original Phase 2 RMP included in the Phase 2 RMP Update are summarized below. 1. Preserve Boundary & Acreage Changes The Preserve boundary has been refined since adoption of the Phase 1 RMP and approval of the 1996 Otay Ranch Conveyance Plan. Calculations using more accurate Geographic Information System (GIS) based data. Additionally, refinements have been made to the Preserve boundary through amendments to the GDP/SRP and at Final Map. 2. Conveyance Summary & Projections The Phase 2 RMP Update includes an updated conveyance forecast based on previous development approvals, approved SPA plans, and the land use plan in the most recently adopted GDP/SRP. As of December 2017, a total of 5,850 acres of land is designated as Preserve within the GDP/SRP. Based on current forecasts, future development in Otay Ranch may not result in the POM-managed Preserve size that was originally anticipated by the GDP/SRP. The full conveyances are not anticipated for a variety of reasons, including errors in assumptions made in the GDP/SRP and higher densities approved that required more common use areas which are not required to convey open space lands to the POM. The POM allows for acquisition of Preserve lands by third parties for conservation or to mitigate for impacts from non-Otay Ranch projects. It is anticipated that any Preserve land not conveyed to the POM as a result of development within Otay Ranch would be conserved by third party acquisitions or remain in their currently undeveloped state due to the GDP/SRP and MSCP designations which prohibits development of lands within the Preserve. 2018-11-27 Agenda Packet Page 175 P a g e | 4 3. POM Management Structure & Funding The Phase 2 RMP Update includes the management structure and annual operating budget for the POM. The Phase 2 RMP reflects the current POM management structure, including information about the Preserve Steward/Biologist that was retained in 2009 to provide technical expertise, monitor sensitive biological resources, and implement stewardship within the Preserve. The Phase 2 RMP Update does not make any changes to the structure or management of the POM, rather it comprehensively explains the way the POM currently functions and will continue to function under the existing Joint Powers Agreement. The updates include the City adopted Preserve Maintenance District, Community Facility District (CFD) No. 97-2, and Special Tax Report, which created a perpetual source of funding for maintaining Preserve lands conveyed to the POM as a result of development in the City. The Phase 2 RMP Update does not modify or make changes to how funding is collected. The County does not yet have an identified source of funding for Preserve lands because no Specific Plans have been approved. The Phase 2 RMP Update clarifies that prior to the approval of the first Final Map for development within the County’s jurisdiction of Otay Ranch, the County will consider approval of a CFD or similar funding mechanism to fund POM management and monitoring of conveyed Preserve lands in perpetuity. 4. Status of Phase 1 RMP Policies The Phase 1 RMP includes policies, standards, and guidelines from the GDP/SRP to reduce impacts from development and guide future management and monitoring activities within the Preserve. Many GDP/SRP policies and standards were considered fulfilled by the preparation of the Phase 1 RMP. The GDP/SRP and Phase 1 RMP also indicated that many of the policies, standards, and guidelines related to biological, cultural, agricultural, and scenic resources are to be fulfilled by the preparation of a Phase 2 RMP or implemented as ongoing policies to guide future development and Preserve management. The Phase 2 RMP Update includes an updated matrix of the policies and standards outlined in Phase 1 RMP and a summary of their implementation status. 5. Biological Monitoring and Management Biota Monitoring Program: Priority biological resources and their monitoring methodologies have changed within Otay Ranch and across the San Diego region requiring adjustments to the Biota Monitoring Program in the Management Plan. Updates to the Biota Monitoring Program will improve management and monitoring of biological resources within the Preserve and have been specifically included in the Phase 2 RMP Update to ensure consistency with regional priorities and monitoring standards, and the MSCP Subarea Plans for the City and the County. Consistency with the Multiple Species Conservation Program Subarea Plan Following the listing of the coastal California gnatcatcher as a federally threatened species in 1993, jurisdictions within the San Diego region pursued a broad-based resource conservation strategy by implementing a series of joint Natural Community Conservation Plans/Habitat Conservation Plans through the MSCP. The City adopted its MSCP Subarea Plan on May 13, 2003. The City’s MSCP Subarea Plan identifies a series of focused planning areas within which some lands will be dedicated for preservation of native habitats and provides take authorization for Quino checkerspot butterfly and the 85 species covered by the MSCP within specified areas. The City’s MSCP Subarea Plan designates village developments in Otay Ranch as a “Covered Project” and relies on the Phase 1 RMP and Phase 2 RMP as the framework for the conservation and management of biological resources within Otay Ranch. Both Phase 1 RMP and Phase 2 RMP are incorporated by reference in the City’s MSCP Subarea Plan and are appended as the Framework Management Plan for Otay Ranch. In 2018-11-27 Agenda Packet Page 176 P a g e | 5 anticipation of the need for updates, the City’s MSCP Subarea Plan states that the RMP may be amended by the City through the use of its jurisdictional authority without amendment to the City’s MSCP Subarea Plan if such amendments are consistent with the goals of both the MSCP and City’s MSCP Subarea Plan. CONCLUSION The Phase 2 RMP Update brings the document up-to-date with current Otay Ranch Preserve management structure and annual operating budget, ownership, biological monitoring and management requirements and includes the current status of Otay Ranch development and Preserve assembly and GDP/SRP and Phase 1 RMP policies related to biological and cultural resources. 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 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 Phase 2 RMP supports the Healthy Community goal as it implements policies, standards and guidelines that were prepared to protect biological and cultural resources within conserved lands. These conserved lands will be monitored and managed to protect resources for both current residents and future generations. CURRENT-YEAR FISCAL IMPACT All staff costs associated with preparing the Phase 2 RMP Update are included in the adopted budget. ONGOING FISCAL IMPACT Ongoing administrative, monitoring and management tasks associated with the Phase 2 RMP Update are currently funded through the City’s Community Facility District 97-2 (Preserve Maintenance District). Prior to the approval of the first Final Map within the County’s jurisdiction of Otay Ranch, a CFD or similar funding mechanism will be established to contribute funding towards management and monitoring of Preserve conveyances. ATTACHMENT 1. Otay Ranch Phase 2 Resource Management Plan Update Staff Contact: Cheryl Goddard, Senior Planner, Development Services Department 2018-11-27 Agenda Packet Page 177 RESOLUTION NO. __________ RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL ADOPTING THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN UPDATE WHICH WILL BRING THE DOCUMENT UP-TO-DATE WITH CURRENT OTAY RANCH PRESERVE MANAGEMENT STRUCTURE AND ANNUAL OPERATING BUDGET, OWNERSHIP, AND BIOLOGICAL MONITORING AND MANAGEMENT REQUIREMENTS WHEREAS, on October 28, 1998, City Council adopted the Otay Ranch General Development Plan which provides major policies, recommendations and implementation measures to guide development of Otay Ranch; and WHEREAS, on October 28, 1998, City Council also adopted the Otay Ranch Phase 1 Resource Management Plan (Phase 1 RMP) which provides policies, standards, and guidelines from the General Development Plan to reduce impacts from development and guide future management and monitoring activities within the Otay Ranch Preserve (Preserve); and WHEREAS, on June 4, 1996, City Council adopted the Otay Ranch Phase 2 RMP (Phase 2 RMP) which provides an implementation strategy to meet the resource protection goals, objectives, policies, standards, and guidelines established in the General Development Plan and Phase 1 RMP; and WHEREAS, the City Council amended the Phase 2 RMP on November 10, 1998 and May 23, 2006 to address changes in the circumstances related to the Otay Ranch since the approval of the original Phase 2 RMP and acknowledging that the majority of prioritized land had already been conveyed to the Preserve Owner/Manager; and WHEREAS, this is the first comprehensive update to the Phase 2 RMP since its original approval that will bring the document up-to-date with current Preserve management structure and annual operating budget, ownership, biological monitoring and management requirements and includes the current status of Otay Ranch development and Preserve assembly and Otay Ranch General Development Plan and Phase 1 RMP policies related to biological and cultural resources; and WHEREAS, the Director of Development Services has reviewed the project for compliance with the California Environmental Quality Act (CEQA) and determined that the project was adequately covered in previously certified Final Program Environmental Impact Report (SCH) No. 89010154 for Otay Ranch, dated December 1992, and the Findings of Fact for Otay Ranch General Development Plan (GDP), dated October 28, 1993. Therefore, no further environmental review or documentation is required. 2018-11-27 Agenda Packet Page 178 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it hereby makes the following findings: 1.That the proposed project is consistent with the Otay Ranch GDP and RMP1 The GDP contains a policy that acknowledges that Otay Ranch Implementation Documents may be amended or updated in response to changing conditions. Many actions and changes have occurred to land use plans, habitat conservation plans, ownership, and biological management and monitoring standards since the GDP was adopted in 1993. Additionally, the Phase 1 RMP acknowledges that the subsequent Phase 2 RMP would include additional studies and research to refine the Preserve boundary, which was mapped at a broad scale in the previous RMP documents. 2. The proposed project is consistent with the City’s Multiple Species Conservation Program Subarea Plan The City adopted its Multiple Species Conservation Program (MSCP) Subarea Plan on May 13, 2003. The City’s MSCP Subarea Plan identifies a series of focused planning areas within which some lands will be dedicated for preservation of native habitats, and provides take authorization for Quino checkerspot butterfly and the 85 species covered by the MSCP within specified areas. The City’s MSCP Subarea Plan designates village developments in Otay Ranch as a “Covered Project” and relies on the Phase 1 RMP and Phase 2 RMP as the framework for the conservation and management of biological resources within Otay Ranch. Both the Phase 1 RMP and Phase 2 RMP are incorporated by reference in the City’s MSCP Subarea Plan and are appended as the Framework Management Plan for Otay Ranch. In anticipation of the need for updates, the City’s MSCP Subarea Plan states that the RMP may be amended by the City through the use of its jurisdictional authority without amendment to the City’s MSCP Subarea Plan if such amendments are consistent with the goals of both the MSCP and City’s MSCP Subarea Plan. BE IT FURTHER RESOLVED, that the City Council, based on the findings above, hereby adopts the Otay Ranch Phase 2 Resource Management Plan Update which will bring the document up-to-date with current Preserve management structure and annual operating budget, ownership, and biological monitoring and management requirements. Presented by Approved as to form by Kelly Broughton, FSALA Glen R. Googins Director of Development Services City Attorney 2018-11-27 Agenda Packet Page 179 Otay Ranch Phase 2 Resource Management Plan Update Prepared for County of San Diego 5510 Overland Avenue San Diego, CA 92123 City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Prepared by RECON Environmental, Inc. 1927 Fifth Avenue San Diego, CA 92101 P 619.308.9333 RECON Number 8117 June 22, 2018 – Finalized September 2018 Cailin Lyons, Associate Biologist 2018-11-27 Agenda Packet Page 180 Page intentionally left blank 2018-11-27 Agenda Packet Page 181 Phase 2 Resource Management Plan Update Otay Ranch i TABLE OF CONTENTS Acronyms..................................................................................................................... iv Preface v 1.0 Introduction ..................................................................................................... 1 1.1 Purpose and Need ............................................................................................... 1 1.2 Project History .................................................................................................... 1 1.3 Environmental Setting ....................................................................................... 3 1.4 Regulatory Context ............................................................................................ 9 1.4.1 Otay Ranch General Development Plan/ Subregional Plan .................. 9 1.4.2 Phase 1 Resource Management Plan ................................................... 10 1.4.3 Multiple Species Conservation Program Plan ..................................... 15 1.4.3.1 County of San Diego MSCP Subarea Plan .............................15 1.4.3.2 City of Chula Vista MSCP Subarea Plan ...............................16 1.4.3.3 City of San Diego MSCP Subarea Plan ..................................16 2.0 Existing Conditions....................................................................................... 17 2.1 Otay Ranch Planning Components .................................................................. 17 2.2 Comparison of Phase 1 RMP and Existing Conditions ................................... 21 3.0 Land Use Considerations in the Preserve ............................................... 21 3.1 Interim Uses ..................................................................................................... 22 3.2 Permitted Uses ................................................................................................. 22 3.2.1 Preserve Management, Scientific, and Biologic Activities ................... 22 3.2.1.1 Mitigation Banking ................................................................23 3.2.1.2 Habitat Restoration ................................................................23 3.2.2 Emergency, Safety, and Law Enforcement .......................................... 23 3.2.3 Motorized Vehicle Use .......................................................................... 24 3.2.4 Public Access and Recreation ............................................................... 24 3.2.4.1 Otay Valley Regional Park .....................................................25 3.2.5 Infrastructure ....................................................................................... 26 3.2.5.1 County of San Diego ...............................................................26 3.2.5.2 City of Chula Vista .................................................................31 3.3 Incompatible Uses ............................................................................................ 34 3.4 Adjacent Land Uses .......................................................................................... 34 3.4.1 Preserve Edge ....................................................................................... 34 4.0 Preserve Management, Conveyance, & Funding ................................... 35 4.1 Preserve Management ...................................................................................... 35 4.1.1 Management Structure ......................................................................... 35 4.1.1.1 County of San Diego & City of Chula Vista ...........................35 4.1.1.2 Preserve Steward/ Biologist ...................................................35 4.1.2 Decision Making Process ...................................................................... 36 4.2 Preserve Funding ............................................................................................. 36 4.2.1 County of San Diego Funding ............................................................... 36 2018-11-27 Agenda Packet Page 182 Phase 2 Resource Management Plan Update Otay Ranch ii 4.2.2 City of Chula Vista Funding ................................................................. 36 4.2.3 Ancillary Funding ................................................................................. 37 4.3 Preserve Conveyance ........................................................................................ 37 4.3.1 Fee Title ................................................................................................ 37 4.3.2 Covenant of Easement .......................................................................... 38 4.3.3 Irrevocable Offer of Dedication ............................................................... 38 4.3. 4 Fee-In-Lieu ............................................................................................ 38 4.3.5 Non-Otay Ranch Project Mitigation Lands Program ........................... 38 5.0 Biota Monitoring Program .......................................................................... 39 6.0 Regulatory Framework for Future Development .................................. 40 6.1 Conveyance Requirement ................................................................................. 41 6.1.1 Development Lands Subject to Conveyance ......................................... 41 6.1.2 Common Use & Restricted Development Areas Not Subject to Conveyance ........................................................................................... 42 6.2 Preservation Standards .................................................................................... 43 6.3 Preserve Boundary Modifications .................................................................... 45 6.3.1 County of San Diego ............................................................................. 46 6.3.2 City of Chula Vista ............................................................................... 46 6.4 Preserve Edge Plan Requirements .................................................................. 47 6.4.1 Adjacency Guidelines ............................................................................ 47 6.4.1.1 County of San Diego ...............................................................49 6.4.1.2 City of Chula Vista .................................................................49 7.0 Administration ............................................................................................... 51 7.1 RMP Amendments ........................................................................................... 51 7.1.1 County of San Diego ............................................................................. 51 7.1.2 City of Chula Vista ............................................................................... 53 8.0 References Cited ............................................................................................ 55 2018-11-27 Agenda Packet Page 183 Phase 2 Resource Management Plan Update Otay Ranch iii TABLE OF CONTENTS (CONT.) FIGURES Figure 1. Regional Location of Otay Ranch ............................................................................. 5 Figure 2. Ownership Areas & Jurisdictional Boundaries ....................................................... 7 Figure 3. Otay Ranch in Relation to Conserved Lands (2017) ...............................................11 Figure 4. Original Otay Ranch Planning Components (1993) ...............................................13 Figure 5. Otay Ranch Planning Components (2017) ..............................................................19 Figure 6. Otay Ranch in Relation to the Otay Valley Regional Park ....................................29 TABLES Table 1 Jurisdictions Within Otay Ranch ................................................................................ 3 Table 2 Comparison of 1996 Estimate and Existing Acreage of Otay Ranch Planning Components .............................................................................................................................21 Table 3 Restoration & Translocation Requirements for Otay Ranch Development Projects 44 Table 4 .....................................................................................................................................48 Preserve Set-back Requirements ............................................................................................48 ATTACHMENTS 1: Summary of GDP/SRP Amendments and Policy Changes (October 1993-December 2017) 2: Status of Phase 1 RMP Policies and Standards (2017) 3: Conveyance Forecast and Preserve Assembly 4: Biota Monitoring Program 5: Preserve Configuration Preservation Summary 2018-11-27 Agenda Packet Page 184 Phase 2 Resource Management Plan Update Otay Ranch iv Acronyms BLM Bureau of Land Management BMO Biological Mitigation Ordinance BMPs Best Management Practices CDFW California Department of Fish and Wildlife CEQA California Environmental Quality Act City City of Chula Vista County County of San Diego CFD Community Facilities District EIR Environmental Impact Report GDP City of Chula Vista General Development Plan GIS Geographical Information System HCP/NCCP Habitat Conservation Plan/Natural Community Conservation Plan HLIT Habitat Loss and Incidental Take (Ordinance) HOA Homeowners’ Association IOD Irrevocable Offer of Dedication JEPA Joint Exercise of Powers Agreement JPA Joint Powers Agreement MSCP Multiple Species Conservation Program MSPA Management Strategic Plan Area NPDES National Pollutant Discharge Elimination System OVRP Otay Valley Regional Park OWD Otay Water District P-C Planned Community POM Preserve Owner/Manager PSB Preserve Steward/Biologist RMP Resource Management Plan RWQCB San Diego Regional Water Quality Control Board SanGIS San Diego Geographic Information Source SPA Sectional Planning Area (City) SP Specific Plan (County) SUSMP Standard Urban Storm Water Mitigation Plan SR-125 State Route 125 SRP County of San Diego Otay Subregional Plan Phase 2 USFWS U.S. Fish & Wildlife Service 2018-11-27 Agenda Packet Page 185 Phase 2 Resource Management Plan Update Otay Ranch v Preface This document is a comprehensive update to the Otay Ranch Phase 2 Resource Management Plan (1996 Phase 2 RMP; City of Chula Vista 1996), adopted by the City of Chula Vista (City) and partially adopted by the County of San Diego (County) in 1996 with the purpose of establishing an implementation framework for the resource protection objectives of the Otay Ranch City of Chula Vista General Development Plan (GDP; City of Chula Vista 1993a)/San Diego Otay Subregional Plan Phase 2 (SRP; County of San Diego 1993) and Otay Ranch Resource Management Plan (Phase 1 RMP; County of San Diego and City of Chula Vista 1993). Amendments to the 1996 Phase 2 RMP have been adopted by the County Board of Supervisors and Chula Vista City Council. The current preparation of the first Specific Plan in Otay Ranch within the County’s jurisdiction necessitates the County to initiate an update to the 1996 Phase 2 Resource Management Plan (RMP) to reflect the changes in the regulatory and planning context that have occurred since its adoption. The City was engaged by the County in a joint-planning effort to ensure that resource management policies are implemented consistently in both the County and City. The purpose of the update is to incorporate County and City actions that have occurred in Otay Ranch to date (December 2017), as well as reflect changes in regional biota monitoring and management priorities and standards. No new policy decisions or actions are proposed through this update. Upon adoption by the County Board of Supervisors and Chula Vista City Council, this document (termed Phase 2 RMP Update) will serve as a replacement of the 1996 Phase 2 RMP including amendments in the County and City, respectively. 2018-11-27 Agenda Packet Page 186 Phase 2 Resource Management Plan Update Otay Ranch vi Page intentionally left blank 2018-11-27 Agenda Packet Page 187 Phase 2 Resource Management Plan Update Otay Ranch Page 1 1.0 Introduction 1.1 Purpose and Need The Phase 2 Resource Management Plan (RMP) is a requirement of the GDP/SRP and Phase 1 RMP, with the purpose of establishing an implementation framework for the resource protection objectives of both documents. This document, termed the Phase 2 RMP Update, provides updated management and monitoring standards for resource protection and conservation within Otay Ranch consistent with regional practices and standards. The objectives of this document are to: Provide an overview of the changes in the Otay Ranch planning context since the approval of the GDP/SRP, Phase 1 RMP, and 1996 Phase 2 RMP; Establish a framework for implementation of the GDP/SRP and Phase 1 RMP policies that incorporate General Plan amendments and current policies and programs related to Otay Ranch adopted by the County and City, including the Multiple Species Conservation Program (MSCP) Plan and Subarea Plans; Summarize the current status of the GDP/SRP and Phase 1 RMP policies related to biological and cultural resources; and Update the Biota Monitoring Program consistent with regional priorities and monitoring standards. 1.2 Project History In 1820, the Otay Rancho and Rancho Janal land grants were formally granted to the Estudillo family by Governor José María Echeandía. The land grants consisted of approximately 11,000 acres in the Otay River valley and were used primarily for cattle grazing. Numerous ownership changes occurred throughout the 1800s and early 1900s, and the properties were eventually known collectively as Rancho Otay. In 1936, Stephen Birch purchased Rancho Otay with several other large tracts of land, expanding the ranch to approximately 29,000 acres. The Birch family established a family farming business, United Enterprises, and used the land for cattle ranching and the production of lima beans, hay, and grain. A private residence for the Birch family was also built on an 11-acre estate, and small portions of the property were used for Stephen Birch’s hobbies, including an orchid nursery and a game bird hatchery (‘Bird Ranch’) that was used for hunting on the ranch. The property was inherited by Stephen Birch’s daughter, Mary Birch, and agricultural uses continued on the ranch through the 1980s. Following the deaths of Mary Birch and her husband, United Enterprises sold the Otay Ranch property to the Baldwin Company in 1988 (County of San Diego 1993; City of Chula Vista 1993a). Planning in the community of Otay Ranch has a complex history. United Enterprises first initiated a planning process for Otay Ranch in 1984, by requesting authorization from the County to process an application for a General Plan amendment governing the property. Due to the size and complexity of the project and the need to work with other jurisdictions, the County created an informal cooperative planning process through the adoption of Board of 2018-11-27 Agenda Packet Page 188 Phase 2 Resource Management Plan Update Otay Ranch Page 2 Supervisors Policy I-109. After four years of studies, the County Board of Supervisors authorized submittal of a General Plan amendment, which was submitted by the Baldwin Company in November of 1988. This proposal was reviewed by the County, City, citizen committees, technical committees, and planners from many entities. This process eventually led to the preparation of the GDP/SRP, which was subsequently adopted by the City and County in 1993. A RMP was prepared concurrently with the GDP/SRP to comprehensively plan for the protection of open space, sensitive natural and cultural resources, and regional recreation opportunities. The RMP was intended to be enacted in two phases: Phase 1 and Phase 2. The Phase 1 RMP was adopted concurrently with the GDP/SRP in 1993, and designated an approximately 11,375 acre preserve for resource protection and conservation, henceforth referred to as ‘Preserve’. The Phase 2 RMP provided an implementation strategy for the Phase 1 RMP, and was adopted by the Chula Vista City Council on June 4, 1996 in conjunction with the first development within Otay Ranch. The County Board of Supervisors adopted only segments of the 1996 Phase 2 RMP related to identification of the Preserve Owner/Manager (POM), conveyance schedule, and the Preserve Funding Program for the processing and conveyance of the Preserve lands associated with Specific Plan Area One (Villages 1 & 5). Numerous changes in the planning context for Otay Ranch have occurred since the preparation of the GDP/SRP, Phase 1 RMP, and 1996 Phase 2 RMP. Upon the adoption of the GDP/SRP, Otay Ranch consisted of a single ownership, the Baldwin Company. A number of land sales took place following the economic downturn in 1996 resulting in multiple ownerships throughout the extent of the former ranch, including acquisitions for conservation and mitigation of non-Otay Ranch development impacts by public agencies and private developers. Although the policies contained in the GDP/SRP and RMP anticipated changes in ownership driven by future development, neither document contemplated such a significant expansion of multiple ownerships or that lands would be acquired by public agencies, including the United States Fish & Wildlife Service (USFWS) and California Department of Fish & Wildlife (CDFW) (henceforth, collectively referred to as the ‘Wildlife Agencies’), as well as the Bureau of Land Management (BLM), California Department of Transportation (Caltrans), Otay Water District (OWD) and the City of San Diego. Following the listing of the coastal California gnatcatcher (Polioptila californica californica) as a federally threatened species in 1993, jurisdictions within the region pursued a broad- based resource conservation strategy by implementing a series of joint Natural Community Conservation Plans/Habitat Conservation Plans through the Multiple Species Conservation Program (MSCP) Plan (County of San Diego 1998a). The County’s Subarea Plan to the MSCP Plan was adopted in 1998 by the County and the City’s Subarea Plan to the MSCP Plan was adopted in 2003 by the City of Chula Vista. During the preparation of the County’s MSCP Subarea Plan, the Baldwin Company entered into discussions with the Wildlife Agencies regarding land use and policy changes to the GDP/SRP and Phase 1 RMP. These discussions are contained in the ‘Baldwin Letter’, which is included within the South County Segment section of the County's MSCP Subarea Plan. 2018-11-27 Agenda Packet Page 189 Phase 2 Resource Management Plan Update Otay Ranch Page 3 The numerous amendments to the GDP have refined the original land use plan and changed the village configuration in the City. Adjustments to the Preserve boundary have also occurred within the City, initiated through the MSCP boundary line adjustment process by project applicants for Otay Ranch village developments. Additional changes to the policies in the GDP/SRP, Phase 1 RMP, and Phase 2 RMP have been processed by General Plan amendments in both the County and City. A summary of General Plan amendments and other policy changes is included in Attachment 1. Additional changes in species sensitivity classifications have occurred since the adoption of the GDP/SRP in 1993, including the listing of the Quino checkerspot butterfly (Euphydryas editha quino) as federally endangered and the elimination of the federal Category 2 Candidate species list. Regional priorities and monitoring standards have also changed over the last 20 years, necessitating updates to the Biota Monitoring Program. 1.3 Environmental Setting Otay Ranch encompasses approximately 22,881 acres in southwestern San Diego County, generally surrounding Lower Otay Reservoir (Figure 1). Otay Ranch spans the jurisdictions of the County, City, and City of San Diego (Figure 2). Development within areas of Otay Ranch under the jurisdiction of the County and City is governed by the GDP/SRP. The City of San Diego is not a signatory of the GDP/SRP; thus, areas of Otay Ranch in the City of San Diego’s jurisdiction are not subject to the requirements of the GDP/SRP and are governed separately by the Otay Mesa Community Plan Update (City of San Diego 2014). Table 1 provides the acreages of each jurisdiction within Otay Ranch. Otay Ranch is comprised of three nearby but non-contiguous ownership areas: the Otay Valley Area, the Proctor Valley/Jamul Mountains Area, and the San Ysidro Mountains Area (see Figure 2). Each of these large ownership areas is an aggregate of many smaller existing legal parcels within Otay Ranch. The dominant feature linking the three ownership areas is the Otay River system, which includes a tributary system of canyons and drainage courses and the Otay Reservoir system. Table 1 Jurisdictions Within Otay Ranch Designation Total (acres) County of San Diego 13,661 City of Chula Vista 8,834 City of San Diego 386 TOTAL 22,881 2018-11-27 Agenda Packet Page 190 Phase 2 Resource Management Plan Update Otay Ranch Page 4 Page intentionally left blank 2018-11-27 Agenda Packet Page 191 FIGURE 1 Regional Location of Otay Ranch USMC AIR STATION MIRAMAR USMC AIR STATION MIRAMAR Los Penasquitos Canyon Presv Mission Trails Regional Park Cleveland NF Lake Hodges El Capitan Reservoir San Vicente Reservoir Loveland Reservoir Sweetwater Reservoir Lower Otay Reservoir C otto n woodCre e kSanDiegoRiverE scondidoC reekD u l z ur a CreekSanDie g u ito Rive r O t a y R i v e r Sweetwat e r RiverSanDie g o R i v e r Sycuan Reservation Capitan Grande Reservation Barona Reservation Alpine Bostonia Casa de Oro-Mount Helix Crest Fairbanks Ranch Granite Hills Harbison Canyon Jamul Lakeside La Presa Ramona Rancho San Diego Rancho Santa Fe San Diego Country Estates Spring Valley Winter Gardens UV163 UV282 UV78 UV905 UV56 UV54 UV75 UV125 UV67 UV94 UV52 §¨¦8 §¨¦805 §¨¦15 §¨¦5 S A N D I EGO C O U NTY M E X I C O Chula Vista Coronado Del Mar El Cajon Encinitas Imperial Beach La Mesa Lemon Grove National City Poway San Diego Santee Solana Beach USMC AIR STATION MIRAMAR USMC AIR STATION MIRAMAR Los Penasquitos Canyon Presv Mission Trails Regional Park Cleveland NF Lake Hodges El Capitan Reservoir San Vicente Reservoir Loveland Reservoir Sweetwater Reservoir Lower Otay Reservoir C otto n woodCre e kSanDiegoRiverE scondidoC reekD u l z ur a CreekSanDie g u ito Rive r O t a y R i v e r Sweetwat e r RiverSanDie g o R i v e r Sycuan Reservation Capitan Grande Reservation Barona Reservation Alpine Bostonia Casa de Oro-Mount Helix Crest Fairbanks Ranch Granite Hills Harbison Canyon Jamul Lakeside La Presa Ramona Rancho San Diego Rancho Santa Fe San Diego Country Estates Spring Valley Winter Gardens UV163 UV282 UV78 UV905 UV56 UV54 UV75 UV125 UV67 UV94 UV52 §¨¦8 §¨¦805 §¨¦15 §¨¦5 S A N D I EGO C O U NTY M E X I C O Chula Vista Coronado Del Mar El Cajon Encinitas Imperial Beach La Mesa Lemon Grove National City Poway San Diego Santee Solana Beach 0 5Miles [ Otay Ranch Boundary M:\JOBS5\8117\common_gis\fig1.mxd 2/20/2018 sab SAN DIEGO RIVERSIDE SAN BERNARDINO ORANGE MEXICO 2018-11-27 Agenda Packet Page 192 Phase 2 Resource Management Plan Update Otay Ranch Page 6 Page intentionally left blank 2018-11-27 Agenda Packet Page 193 FIGURE 2 Ownership Areas & Jurisdictional Boundaries Otay Valley Area San Ysidro Mountains Area Proctor Valley/ Jamul Mountains Area UV54 UV125 S.D. COUNTY SAN DIEGO S.D. COUNTYCHULA VISTAS.D. COUNTY CHULA VIS TA S.D. COUNT YCHULA VISTA SAN DIEGO CHULA VISTA Otay Valley Area San Ysidro Mountains Area Proctor Valley/ Jamul Mountains Area UV54 UV125 S.D. COUNTY SAN DIEGO S.D. COUNTYCHULA VISTAS.D. COUNTY CHULA VIS TA S.D. COUNT YCHULA VISTA SAN DIEGO CHULA VISTA M:\JOBS5\8117\common_gis\fig2.mxd 2/20/2018 sab 0 1Miles Image source: SANDAG (flown 2014) [ Otay Ranch Ownership Areas Otay Valley Area Proctor Valley/ Jamul Mountains Area San Ysidro Mountains Area Jurisdiction County of San Diego City of Chula Vista City of San Diego 2018-11-27 Agenda Packet Page 194 Phase 2 Resource Management Plan Update Otay Ranch Page 8 Page intentionally left blank 2018-11-27 Agenda Packet Page 195 Phase 2 Resource Management Plan Update Otay Ranch Page 9 Otay Ranch contains large expanses of undeveloped land comprised of and contiguous with other conserved lands, including the San Diego National Wildlife Refuge, Otay Mountain Ecological Reserve, Rancho Jamul Ecological Reserve, Hollenbeck Canyon Wildlife Refuge, Otay Mountain Wilderness, San Miguel Habitat Management Area, and Cornerstone Lands. These lands are managed by a multiplicity of federal, state, and local agencies, including USFWS, CDFW, BLM, OWD, and City of San Diego. Figure 3 shows Otay Ranch in relation to these conserved lands and provides a regional context for the GDP/SRP and RMP in relation to other conservation efforts. Combined with these areas, the undeveloped areas within Otay Ranch provide habitat for numerous species of plants and animals, function as a corridor for wildlife movement throughout the region, and contribute to regional biodiversity and natural ecosystem functions. Otay Ranch’s diverse biological resources, strategic location adjacent to Baja California, and its connectivity to large areas of public ownership contribute to its regional significance and the importance for a coordinated conservation planning effort as future development within Otay Ranch is designed. 1.4 Regulatory Context This section explains the background and purpose of three plans that are directly related to the Phase 2 RMP Update: the Otay Ranch GDP/SRP, the Phase 1 RMP, and the MSCP Plan (including Subarea Plans for the County and the City). The GDP/SRP is a land use document that comprehensively plans for development and conservation within Otay Ranch, and which is a part of the General Plans for the County and the City. The Phase 1 RMP is a companion document to the GDP/SRP, which includes a program for long-term protection and management of biological resources within Otay Ranch. The MSCP Subarea Plans for the County and the City are Habitat Conservation Plan/Natural Community Conservation Plans (HCP/NCCPs) that were prepared and adopted separate from the GDP/SRP and for an area that extends beyond Otay Ranch. As HCP/NCCPs, the MSCP Subarea Plans establish the conditions under which each jurisdiction may permit impacts (“take”) to a specific list of species and their habitats from land development and other lawful activities that are permitted by the County and the City. The primary difference between the GDP/SRP and the MSCP Subarea Plans is that the GDP/SRP is a land use document that divides Otay Ranch into three separate planning components (Development Area, Restricted Development Area, and Preserve) that are described in more detail in Section 2.1. The MSCP Subarea Plans are HCP/NCCPs that dictate the terms under which “take”, as defined in the Endangered Species Act and the NCCP Act, may occur. 1.4.1 Otay Ranch General Development Plan/ Subregional Plan The GDP/SRP is a “general-plan level” document adopted by the County and City in 1993 to guide future development of Otay Ranch. The GDP/SRP 1) identifies the land use pattern and intensities for the Otay Ranch community; 2) identifies Otay Ranch land use, facility, environmental, economic and social goals, objectives and policies; 3) informs citizens, the land owner, decision-makers and local jurisdictions of the policies which will guide development 2018-11-27 Agenda Packet Page 196 Phase 2 Resource Management Plan Update Otay Ranch Page 10 within Otay Ranch; 4) guides the coordinated development of Otay Ranch consistent with the goals of the City of Chula Vista, County of San Diego and the region; and 5) provides a foundation for the subsequent consideration and approval of Sectional Planning Area (City)/Specific Plans (County) and Subdivision Maps. The GDP/SRP clusters development in Otay Ranch into 14 villages and 7 planning areas that provide a balance of housing, shops, workplaces, schools, parks, and civic facilities with large expanses of protected open space occurring outside the urban edge (City of Chula Vista 2015, County of San Diego 1993). The GDP/SRP provides a foundation for the subsequent consideration and approval of more detailed planning processes prior to the subdivision of land. Subsequent permit applications are governed by the jurisdiction with the land use control over the applicable property. The County requires the preparation and adoption of ‘Specific Plans’ (SP), whereas the City requires the preparation of ‘Sectional Planning Area’ (SPA) plans. Thereafter, in both jurisdictions, the property may be subdivided in accordance with the California Subdivision Map Act and the Subdivision Ordinances of the respective jurisdiction. Within the County planning structure, the SRP is contained within Part XXIII of the County General Plan. Within the City planning structure, the GDP is the planning document required to implement the City’s General Plan and the City’s zoning ordinance for the Planned Community (P-C) zone within Otay Ranch. As amendments to the SRP and GDP are processed separately through the County and City, respectively, there are differences between the County-adopted SRP and City-approved GDP. As of December 2017, amendments to the GDP/SRP have been primarily related to land use, largely involving the village configuration within the City’s jurisdiction. Thus, land use designations for villages occurring within the City’s jurisdiction vary between the GDP and SRP and are governed by the most recently amended GDP (City of Chula Vista 2015). A summary of the GDP/SRP and RMP amendments to date (through December 2017) is included in Attachment 1. 1.4.2 Phase 1 Resource Management Plan The Phase 1 RMP was adopted by the County and City in 1993 concurrent with the GDP/SRP to provide assurances for long-term resource protection within Otay Ranch and fulfill selected policies, standards, and guidelines of the GDP/SRP. The Phase 1 RMP is a comprehensive plan for the preservation, enhancement, and management of sensitive biological and cultural resources within Otay Ranch. To ensure resource protection, the Phase 1 RMP designates an approximately 11,375-acre conceptual Preserve within Otay Ranch for permanent, managed conservation. Attachment 2 includes a summary of the current status of the Phase 1 RMP policies and standards related to biological and cultural resources. The original Preserve configuration envisioned by the Phase 1 RMP is shown on Figure 4. It should be noted that the GDP/SRP village and planning area boundaries and the Phase 1 RMP boundaries shown on Figure 4 are not within physical alignment due to scale and mapping differences between the two documents. 2018-11-27 Agenda Packet Page 197 FIGURE 3 Otay Ranch in Relation to Other Conserved Lands (2017) UV54 UV125 UV54 UV125 M:\JOBS5\8117\common_gis\fig3.mxd 3/5/2018 sab 0 1Miles Image source: SANDAG (flown Nov 2014) [ Otay Ranch Boundary San Diego National Wildlife Refuge – USFWS Otay Mountain Ecological Reserve – CDFW Rancho Jamul Ecological Reserve - CDFW Hollenbeck Canyon Wildlife Area - CDFW Barbara and Lawrence Daley Preserve – County of San Diego San Miguel Habitat Management Area – OWD City of San Diego Public Utilities/ Cornerstone Lands Central City Preserve – City of Chula Vista Rolling Hills Ranch Preserve – City of Chula Vista Otay Mountain Wilderness – BLM Otay Mountain Wilderness Cedar Canyon Area of Critical Environmental Concern 2018-11-27 Agenda Packet Page 198 Phase 2 Resource Management Plan Update Otay Ranch Page 12 Page intentionally left blank 2018-11-27 Agenda Packet Page 199 FIGURE 4 Original Otay Ranch Planning Components (1993) UV54 UV125 17 15 13 13 13 14 14 14 16 19 18a 18b 3 4 8 9 10 11 12 7 6 5 1 2 UV54 UV125 17 15 13 13 13 14 14 14 16 19 18a 18b 3 4 8 9 10 11 12 7 6 5 1 2 M:\JOBS5\8117\common_gis\fig4.mxd 2/21/2018 sab 0 1Miles Image source: SANDAG (flown Nov 2014), Data Source: Otay Ranch Resource Management Plan (County of San Diego & City of Chula Vista 1993) [ Otay Ranch Boundary (Phase 1 RMP) Phase 1 RMP Otay Ranch Planning Components* Original Development Area Original Preserve Original Restricted Development Area Original Vernal Pool Preserve Area Original Sensitive Resource Study Area GDP/SRP Village and Planning Area Boundaries** Urban Villages (1-8, 11) Industrial Planning Area (18a, 18b) Rural Estate Area (16, 17, 19) Specialty Resort/Estate/Transition Villages (13-15) University/Urban Villages (9, 10) Eastern Urban Center/Freeway Commercial (12) *Source: Phase 1 RMP (County of San Diego & City of Chula Vista 1993) **Source: GDP/SRP (County of San Diego 1993 & City of Chula Vista 1993a) 2018-11-27 Agenda Packet Page 200 Phase 2 Resource Management Plan Update Otay Ranch Page 14 Page intentionally left blank 2018-11-27 Agenda Packet Page 201 Phase 2 Resource Management Plan Update Otay Ranch Page 15 1.4.3 Multiple Species Conservation Program Plan The Multiple Species Conservation Program (MSCP Plan; County of San Diego 1998a) is a comprehensive, long-term habitat conservation planning program in San Diego County that addresses the needs of multiple species and the preservation of natural vegetation communities. The plan encompasses 582,243 acres within 12 jurisdictions and several independent special districts in southwestern San Diego County, and creates a plan to mitigate for the potential loss of sensitive species and their habitat due to the impacts of future development on both public and private lands. Through the designation of a 172,000- acre regional preserve, the MSCP Plan is designed to conserve specific species at levels that meet the take authorization standards of the federal and state Endangered Species Acts and the Natural Community Conservation Planning Act. Local jurisdictions and special districts implement their respective portions of the MSCP Plan through Subarea Plans, which include individual Implementing Agreements that establish the conditions under which the jurisdiction will receive long-term take authorizations from the Wildlife Agencies for the take of covered species incidental to land development and other lawful land uses. 1.4.3.1 County of San Diego MSCP Subarea Plan Pursuant to the MSCP Plan, the County Board of Supervisors adopted the Multiple Species Conservation Program County of San Diego Subarea Plan (County’s MSCP Subarea Plan; County of San Diego 1997) on October 22, 1997, and entered into an Implementing Agreement with the Wildlife Agencies on March 17, 1998 (County of San Diego 1998b). The County’s MSCP Subarea Plan outlines conservation and management requirements for biological resources and provides regulatory “take” authorization for impacts to 85 covered species within specified areas, and is implemented through the County’s Biological Mitigation Ordinance (BMO; County of San Diego 2012). The County’s MSCP Subarea Plan encompasses approximately 252,132 acres within unincorporated southwestern San Diego County and is divided into three Segments: Lake Hodges, Metropolitan–Lakeside–Jamul, and South County. Portions of Otay Ranch within the County’s jurisdiction occur within the South County Segment of the County’s MSCP Subarea Plan. The County’s MSCP Subarea Plan incorporates by reference the policies of the Phase 1 RMP as the framework for the conservation and management of biological resources within Otay Ranch. Thus, “take” authorization for projects within the Development Areas of Otay Ranch are subject to the habitat and species-specific preservation and mitigation requirements in the GDP/SRP and Phase 1 and 2 RMP (in addition to those incorporated into individual project approvals), and are not subject to the provisions of the County’s BMO. However, projects within Otay Ranch areas designated as Preserve, such as infrastructure facilities, circulation element roads, and recreational facilities, are subject to and must demonstrate conformance with the BMO (County of San Diego 2012). Accordingly, all proposed projects in Otay Ranch must comply with the County’s MSCP Subarea Plan in addition to all applicable land use and zoning regulations. This Phase 2 RMP does not modify the County’s MSCP Subarea Plan requirements, including the designation of Preserve Areas or any existing land 2018-11-27 Agenda Packet Page 202 Phase 2 Resource Management Plan Update Otay Ranch Page 16 use designations. Projects in Otay Ranch that have not been take authorized through the County’s MSCP Subarea Plan may be required to receive concurrence from the Wildlife Agencies under the County’s MSCP Subarea Plan, such as through a minor amendment, major amendment, or other designated process.1 1.4.3.2 City of Chula Vista MSCP Subarea Plan The City adopted the City of Chula Vista MSCP Subarea Plan (City’s MSCP Subarea Plan; City of Chula Vista 2003a) on May 13, 2003. The City’s MSCP Subarea Plan identifies a series of focused planning areas within which some lands will be dedicated for preservation of native habitats, and provides take authorization for Quino checkerspot butterfly and the 85 species covered by the MSCP Plan within specified areas. As part of the City’s General Plan, any projects subject to City approval must demonstrate conformance with the City’s MSCP Subarea Plan and the City’s Habitat Loss and Incidental Take (HLIT) Ordinance (City of Chula Vista 2016a), which implements the City’s MSCP Subarea Plan. The City’s MSCP Subarea Plan designates village developments in Otay Ranch as a “Covered Project” and relies on the Phase 1 RMP and Phase 2 RMP as the framework for the conservation and management of biological resources within Otay Ranch. Thus, “take” authorization for village development projects within the Development Areas of Otay Ranch are subject to the habitat and species-specific preservation and mitigation requirements in the GDP/SRP and Phase 1 and 2 RMP (in addition to those incorporated into individual project approvals), and are not subject to the provisions of the HLIT Ordinance. Planned Facilities within areas designated as Preserve are also considered Covered Projects. Take authorization for impacts from Planned Facilities are subject to specific Covered Project conditions and mitigation requirements, as well as the Facilities Siting Criteria in the City’s MSCP Subarea Plan but are not subject to the HLIT Ordinance. Future Facilities within areas designated as Preserve are required to meet all applicable regulations in the HLIT Ordinance as well as the Facilities Siting Criteria in the City’s MSCP Subarea Plan. Both the Phase 1 RMP and Phase 2 RMP are incorporated by reference in the City’s MSCP Subarea Plan and are appended as the Framework Management Plan for Otay Ranch. In anticipation of the need for updates, the City’s MSCP Subarea Plan states that the RMP may be amended by the City through the use of its jurisdictional authority without amendment to the City’s MSCP Subarea Plan if such amendments are consistent with the goals of both the MSCP Plan and City’s MSCP Subarea Plan (City of Chula Vista 2003a). 1.4.3.3 City of San Diego MSCP Subarea Plan The City of San Diego adopted the City of San Diego MSCP Subarea Plan and Implementing Agreement (City of San Diego 1997) on July 14, 1997. The City of San Diego’s MSCP Subarea Plan encompasses approximately 206,124 acres primarily in the City of San Diego’s jurisdiction and is divided into five Segments: Southern Area, Eastern Area, Urban Areas, 1 The reader should refer to the County’s MSCP Subarea Plan for maps of take authorized areas. 2018-11-27 Agenda Packet Page 203 Phase 2 Resource Management Plan Update Otay Ranch Page 17 Northern Area, and Cornerstone Lands and San Pasqual Valley. Portions of Otay Ranch within the City of San Diego’s jurisdiction occur within the Southern Area. The City of San Diego is not a signatory of the GDP/SRP and, thus, the City of San Diego’s MSCP Subarea Plan does not rely on the Phase 1 and Phase 2 RMP as the framework for the conservation and management of biological resources within Otay Ranch. Therefore, development in this area is subject to the provisions of the City of San Diego MSCP Subarea Plan and Environmentally Sensitive Lands Regulations, and would not be required to comply with the provisions of the Phase 1 and Phase 2 RMP unless annexed to the County of San Diego or the City of Chula Vista. 2.0 Existing Conditions 2.1 Otay Ranch Planning Components Otay Ranch is divided into three separate planning components based on their development or conservation potential: Development Areas, Restricted Development Areas, and Preserve. These planning components, as originally envisioned by the original GDP/SRP and Phase 1 RMP, are shown on Figure 4. The configuration of these planning components subsequent to land use changes that have been processed to date (through December 2017) are shown on Figure 5, and are defined below. Figure 5 shows refinements to the Development Areas, Restricted Development Areas, and Preserve designations from the 1993 GDP/SRP based on approved amendments to the City General Plan and the County General Plan. Development Area refers to the developable area within the 14 villages and 7 planning areas described in the GDP/SRP. The GDP/SRP designates various land uses and intensities within this area to be implemented in association with the adoption of future SP or SPA Plans. Villages/planning areas with higher intensity land uses, such as Urban Village, Freeway Commercial, Eastern Urban Center, and University, are generally designated within the City’s jurisdiction adjacent to the City’s urban core. Villages/planning areas with medium to low intensity land uses, such as Rural Estate Area and Specialty Resort/Estate/ Transitional Village, are primarily designated within the County’s jurisdiction adjacent to unincorporated areas of the County. Industrial Planning Areas are also included adjacent to the Otay Landfill within the City of Chula Vista, and in Otay Mesa adjacent to industrial areas within the City of San Diego, with a small portion of the industrial area extending into the County. The Development Areas have an obligation to convey 1.188 acres of Preserve for each acre of development, excluding development associated with common uses (defined in Section 6.1.2). Restricted Development Area consists of areas where development potential is limited to roads and utilities due to the presence of steep slopes and/or sensitive resources. These areas correspond with the GDP/SRP land use designation for Limited Development Area. Areas that are not utilized for roads and utilities are to be retained in easements as natural open space within residential lots, but will not be conveyed to the Preserve. Buildings or other structures, agriculture, landscaping, livestock, grazing, trash disposal, or fences are prohibited from these areas. Removal of native vegetation is prohibited except as necessary 2018-11-27 Agenda Packet Page 204 Phase 2 Resource Management Plan Update Otay Ranch Page 18 for the construction of roads and utilities and for brush management. Restricted Development Areas may be refined at the SP or SPA planning level depending on slope and location of sensitive vegetation communities. However, per the Phase 1 RMP, the overall open space acreage cannot be reduced from 1,166 acres at the SP or SPA planning level during refinement. Preserve encompasses the key biological resource areas identified in the GDP/SRP. The Preserve is assembled through conveyance of lands to the POM as final maps are recorded for each village identified in the GDP/SRP. These lands are accompanied by a long-term funding mechanism for management and monitoring, such as a Community Facilities District (CFD). The southern portion of the Preserve contains a conceptual Vernal Pool Preservation Area overlay zone encompassing the vernal pool complexes that were identified for preservation by the GDP/SRP (J23, J24, J25, J30 and J29 [partial]). Additional details about the Vernal Pool Preservation Area are included within Attachment 3 of this RMP. Sensitive Resource Study Area is an overlay zone designated by the GDP/SRP. Sensitive Resource Study Area is a GDP/SRP land use designation for special areas that potentially support sensitive resources such as vernal pools and native grasslands. This designation may be reconfigured or eliminated upon the completion of additional studies and/or proposed mitigation. Areas without sensitive resources may be developed without the need for an amendment to the GDP/SRP. 2018-11-27 Agenda Packet Page 205 2018-11-27 Agenda PacketPage 206 Phase 2 Resource Management Plan Update Otay Ranch Page 20 Page intentionally left blank 2018-11-27 Agenda Packet Page 207 Phase 2 Resource Management Plan Update Otay Ranch Page 21 2.2 Comparison of Phase 1 RMP and Existing Conditions The Phase 1 RMP acknowledges that the subsequent Phase 2 RMP would include additional studies and research that would ultimately refine the 11,375-acre Preserve boundary, which was mapped at a very coarse scale. As anticipated, the configuration of the Preserve boundary has been refined since the approval of the Phase 1 RMP (see Figure 5). Calculations using ArcGIS version 10.4 based on the best available data, including MSCP and parcel boundaries, show that the Preserve area within Otay Ranch totals approximately 11,547 acres. This difference in acreage is attributed to limitations in the technology used to calculate the original Preserve acreages in the Phase 1 RMP, as well as refinements made to the Preserve boundary through amendments to the land use plan in the GDP/SRP and City/County General Plans, mapping refinements made at the Tentative Map level by approved SPA Plans, and boundary modifications made through the MSCP boundary line adjustment process. A ledger of the General Plan amendments and land use changes is included in Attachment 1 of this RMP. A comparison of the original calculations in the Phase 1 RMP and the existing acreages for the planning components within Otay Ranch based on current GIS analysis is shown in Table 2. An updated conveyance forecast based on previous development approvals, approved SPA plans, and the land use plan in the most recently adopted GDP/SRP is provided in Attachment 3 (County of San Diego 1993; City of Chula Vista 2015). In addition, Attachment 3 also provides a summary of the Preserve assembly as of 2017, including agency acquisitions for conservation. 3.0 Land Use Considerations in the Preserve The following land use considerations incorporate the land uses described in the GDP/SRP, Phase 1 RMP, County’s MSCP Subarea Plan, and City’s MSCP Subarea Plan. Where applicable, Phase 1 RMP policies are incorporated by reference, with the specific policy number bracketed [#.#] following the condensed policy. Table 2 Comparison of 1996 Estimate and Existing Acreage of Otay Ranch Planning Components Planning Component Estimated Acreage - 1996 Phase 2 RMP Existing Acreage Net Change (acres) Development Areas 10,360 10,143 -217 Restricted Development Areas 1,164 1,206 +42 Preserve 11,375 11,547 +172 TOTAL 22,899 22,8961 -3 1Total includes 15 acres of Preserve outside of the GDP boundary in the Otay Quarry. 2018-11-27 Agenda Packet Page 208 Phase 2 Resource Management Plan Update Otay Ranch Page 22 3.1 Interim Uses There may be a continuation of existing legal land uses and activities within areas designated as Preserve until such time as the property has been conveyed into the Preserve. Existing uses will not be allowed to negatively impact resources in the Preserve [8.1]. No expansion of such uses, or the clearing of additional areas, shall occur unless appropriate federal, state, and local permits have first been obtained. The County and City reserve the right to require any negative impacts to resources from unauthorized uses to be remedied prior to conveyance to the Preserve. The following interim land uses are considered consistent with the GDP/SRP, Phase 1 RMP, County’s MSCP Subarea Plan, and City’s MSCP Subarea Plan: 1. Existing agricultural uses, including cultivation and grazing, as an interim activity consistent with the Range Management Plan [8.1; 8.4]. Within the City, grazing shall be subject to the restrictions identified in Ordinance 3003 of the City’s Municipal Code. 2. On-going mineral extraction operations, managed through the County and City’s permit process [8.2]. 3. Construction activities associated with infrastructure improvements consistent with approved development plans [8.3]. 4. Maintenance and operations activities for existing public infrastructure, including access road maintenance and clearing/desilting of flood/drainage control facilities. Maintenance and operations activities are subject to all applicable requirements of federal and state law. 3.2 Permitted Uses The following land uses and activities are considered consistent with the biological objectives of the GDP/SRP, Phase 1 RMP, and County and City’s MSCP Subarea Plans and thus will be allowed within the Preserve. An amendment to the RMP shall be required for any land use within the Preserve that is not described herein [9.7]. 3.2.1 Preserve Management, Scientific, and Biologic Activities Preserve management activities, including biological monitoring, habitat restoration and enhancement, and maintenance activities, are permitted within the Preserve. All such activities shall be consistent with the respective jurisdiction’s MSCP Subarea Plan and are subject to approval by the POM. Preserve management, scientific, and biologic activities may include (but are not limited to) the following uses: 1. Wetland mitigation banking [2.10]. 2. Habitat restoration [3.1-3.8]. 3. Biological monitoring [5.2, 5.4]. 2018-11-27 Agenda Packet Page 209 Phase 2 Resource Management Plan Update Otay Ranch Page 23 4. Maintenance activities including removal of trash, litter, and other debris, maintenance of trail systems, removal and control of exotic plant species (weeds), and control of cowbirds through trapping efforts [5.2]. 5. Access control efforts to curtail activities such as grazing, shooting, off-road vehicle use, and illegal dumping that degrade biological resources [5.2]. 6. Ecologically necessary controlled burning for the enhancement of biological resources [6.9]. 3.2.1.1 Mitigation Banking Mitigation banks may be established in areas with high biological values within the Preserve. The establishment of mitigation banks would require approvals from the respective jurisdiction and Wildlife Agencies, and would be required to comply with all applicable federal and state regulations. Opportunities and plans for mitigation banks may be developed on Preserve lands held in public and private ownership in conjunction with preparation of wetland enhancement and restoration plans for the Otay River Valley and/or the vernal pool preservation plan. All revenue generated by wetland mitigation banks established by the POM shall be used to fund Preserve activities [2.10]. 3.2.1.2 Habitat Restoration Restoration programs intended to mitigate for disturbance of sensitive habitats associated with the development of Otay Ranch shall be funded and designed by the landowner in coordination with the POM and the appropriate jurisdiction. Implementation of such restoration programs shall be by an appropriate entity acceptable to the POM and the appropriate jurisdiction [3.2]. Restoration programs may be implemented for purposes other than compensation of impacts associated with development of Otay Ranch. Such programs shall be funded, designed, and implemented by the POM or other entity acceptable to the POM [3.3]. The POM will continue to identify potential restoration opportunities for threatened, endangered, and other sensitive species [3.8]. These restoration opportunities will be identified and implemented through the annual work plan prepared by the POM. The POM may also apply for ancillary funds (e.g., grants) to implement additional restoration activities. 3.2.2 Emergency, Safety, and Law Enforcement All law enforcement, medical, rescue, and other emergency agencies are allowed access to the Preserve to carry out operations necessary to the health, safety, and welfare of the public. All organizations and agencies operating within the Preserve, including (but not limited to) the National Guard, the Immigration and Naturalization Service, U.S. Customs and Border Protection, and other law enforcement and fire control agencies, are subject to all applicable requirements of federal and state law. Vehicle use by these agencies is restricted to roadways. 2018-11-27 Agenda Packet Page 210 Phase 2 Resource Management Plan Update Otay Ranch Page 24 3.2.3 Motorized Vehicle Use Motorized vehicle use is conditionally compatible with the goals of the GDP/SRP. Motorized vehicles are defined as any vehicle powered by a motor, such as a car, truck, motorcycle, or quad. Motorized vehicle use is allowed in the Preserve for the following purposes: 1. Preserve operation, maintenance, and fire control [6.4]. 2. Easement access [6.4]. 3. Emergency, safety, and law enforcement personnel [6.4]. 4. Construction equipment related to authorized habitat restoration activities However, the following restrictions apply to motorized vehicle use: 1. Motorized vehicular use within the Preserve shall be restricted to roadways [6.4]. 2. Off-road vehicles are prohibited [6.4]. 3. Motorized vehicle access by the public is restricted to public rights-of-way and designated parking lots [6.4]. 4. Easement access shall be consistent with existing easements and other ingress/egress documents, and will be restricted to the documented easement holder [6.4]. 5. Fire roads shall be permitted within the Preserve only where absolutely necessary to ensure public safety and control wildfires that may damage biological resources [6.7]. 3.2.4 Public Access and Recreation Recreational activities are permitted consistent with the goals of the GDP/SRP, as well as the County and City’s MSCP Subarea Plans. Public access and recreational land uses allowed in the Preserve are as follows: 1. Resource-related educational and interpretive programs to increase public sensitivity, awareness, and appreciation of resources within the Preserve [6.1]. Educational and interpretive programs are subject to approval by the POM. 2. Construction of a native plant nursery and/or botanic garden for public education. The sale of educational materials, books, and plants shall be allowed [6.1]. 3. Active recreational usage is allowed within the Preserve up to 400 acres, and must be consistent with the resource protection and enhancement goal, objectives, and policies of the RMP [6.2]; refer to Section 3.2.4.1. 4. A trail system for the following passive recreational uses: hiking, scientific research, bird watching, mountain biking, and horseback riding. The trail system will be designed and implemented by a qualified firm in close coordination with the POM and the Wildlife Agencies [6.3]. The following restrictions apply to public access: 1. Motorized vehicle access by the public is restricted to public rights-of-way and designated parking lots [6.4]. 2018-11-27 Agenda Packet Page 211 Phase 2 Resource Management Plan Update Otay Ranch Page 25 2. Public access may be restricted within and adjacent to wetlands, vernal pools, restoration areas, and sensitive wildlife habitat (e.g. during the breeding season) at the discretion of the POM [6.5]. Restricted use areas will be identified at the time recreational facilities and/or trails are proposed. 3. Trails and other public access facilities may be restricted at the discretion of the POM. 3.2.4.1 Otay Valley Regional Park A total of 2,458 acres of Preserve have been designated as the Otay Valley Regional Park (OVRP) by the OVRP Concept Plan (County of San Diego, City of Chula Vista, and City of San Diego 1997, updated in 2018). Within Otay Ranch, the OVRP would contain up to 209 acres of active recreational use (e.g. public parks and a nature interpretive center). The remainder of the OVRP would include a trail system designated for passive recreational use. Preserve lands within the OVRP are subject to the land use considerations for (1) Preserve management, scientific and biologic activities, (2) emergency, safety, and law enforcement services, and (3) infrastructure in this RMP. However, the following land uses for public access and recreation are specifically permitted by the GDP/SRP and Phase 1 RMP in areas of the Preserve located within the OVRP: 1. Construction of a nature interpretive center [6.1]. 2. Active recreational use (up to 209 acres) consistent with the OVRP Concept Plan when adopted. Siting and design of active recreational uses shall be subject to review by the POM and prepared in consultation with the OVRP Joint Exercise of Powers Agreement (JEPA) [6.2]. 3. Passive recreational uses, including hiking, biking, and equestrian trails, as defined in the OVRP Concept Plan [6.3]. 4. A demonstration agriculture site, located on prime or statewide important soils near Bird Ranch. A plan for the site will be subject to review by the POM and/or JEPA, and shall be submitted concurrent with the conveyance for this area or prior to the adoption of the last SPA on the Otay Valley Parcel [2.14]. 5. Local roads for access. 6. Trails and staging areas for neighborhood or regional access. 7. Viewpoints and overlook areas. 8. Habitat restoration and enhancement of disturbed areas in accordance with an adopted revegetation plan. The conceptual locations for the nature interpretive center and active recreation areas are included in Planning Area 20, outside the Preserve (Figure 6). However, these facilities may be sited inside the Preserve according to the policies set forth in the GDP/SRP and Phase 1 RMP, or in the alternative locations identified in the Phase 2 RMP (Exhibit 37). The final location(s) of the OVRP recreational facilities have been determined by the OVRP Concept Plan, which was adopted in 1997 and updated in 2017. The siting of such facilities will be based upon updated biological data and application of the siting criteria found in Policy 6.2 2018-11-27 Agenda Packet Page 212 Phase 2 Resource Management Plan Update Otay Ranch Page 26 of the Phase 1 RMP, the OVRP Concept Plan, and the respective jurisdiction’s Subarea Plans at the time that specific recreational uses are planned and developed. Preserve lands contained within the OVRP would be conveyed to the POM for biological monitoring, with the exception of active recreation areas. Management and funding of facilities within the active recreation areas, as well as trail operation and maintenance, would be the responsibility of the City, County, and City of San Diego as outlined through the JEPA adopted in 1990, and since replaced in 2006 and updated in 2012. 3.2.5 Infrastructure Construction and maintenance of roads, sewer, water, storm water/flood, and other utility- related facilities are permitted within the Preserve consistent with the goals of the GDP/SRP, as well as the County and City’s MSCP Subarea Plans. Siting and design of infrastructure would be subject to the MSCP requirements of the jurisdiction in which they are sited in and are described in further detail below. Prior to approving the siting of infrastructure facilities, the jurisdiction in which the facilities are to be located shall request and consider written comments from the POM on the proposed location of the infrastructure facilities, pursuant to the Otay Ranch POM Policy regarding the Placement of Infrastructure Facilities within the Otay Ranch Preserve dated October 15, 2009. The POM will continue to coordinate with utility entities on activities that take place in the Preserve. It should be noted that San Diego Gas and Electric (SDG&E) operates under a Habitat Conservation Plan and Subregional Natural Communities Conservation Plan (Subregional Plan) that is independent of the County and City’s MSCP Subarea Plans. The Subregional Plan addresses SDG&E activities and potential impacts to Covered Species or habitat throughout SDG&E’s area of operations. 3.2.5.1 County of San Diego Within the County, infrastructure facilities and roads are subject to the requirements set forth in the County’s MSCP Subarea Plan. These policies are summarized below. a. Circulation Element Roads The construction of new or modification of existing circulation element road corridors are allowed within the Preserve (County of San Diego 1997). The following circulation element road corridors within the Preserve are identified in the County’s Circulation Element road map and are accounted for in the County’s MSCP Subarea Plan: 1. Proctor Valley Road 2. Otay Lakes Road b. Infrastructure Facilities Public infrastructure facilities associated with development projects within Otay Ranch are allowed within the Preserve, per the County’s MSCP Subarea Plan. Maintenance and 2018-11-27 Agenda Packet Page 213 Phase 2 Resource Management Plan Update Otay Ranch Page 27 operation of new facilities shall be allowed in accordance with standard practices existing at the time of completion, including access road maintenance (County of San Diego 1997). c. Findings Take of covered species within the Preserve from the construction of public facilities or projects, such as circulation element roads and public infrastructure facilities, is based on the criteria in the County’s MSCP Subarea Plan and the County’s BMO. Take of covered species within the Preserve requires that the following findings are made by the County decision making body considering an application for such a project, as outlined in the County’s BMO: a. The facility or project is consistent with the County General Plan, the MSCP Plan and the County’s MSCP Subarea Plan, as approved by the Board of Supervisors; b. All feasible mitigation measures have been incorporated into the facility or project and there are no feasible, less environmentally damaging locations, alignments or non-structural alternatives that would meet project objectives; c. Where the facility or project encroaches into a wetland or floodplain, mitigation measures are required that result in a net gain in wetland and/or riparian habitat; d. Where the facility or project encroaches into steep slopes, native vegetation will be used to revegetate and landscape cut and fill areas; e. No mature riparian woodland is destroyed or reduced in size due to otherwise allowed encroachments; and f. All Critical Populations of Sensitive Plant Species within the County’s MSCP Subarea (Attachment C of Document No. 0769999 on file with the Clerk of the Board), Rare, Narrow Endemic Animal Species within the County’s MSCP Subarea (Attachment D of Document No. 0769999 on file with the Clerk of the Board), Narrow, Endemic Plant Species within the County’s MSCP’s Subarea (Attachment E of Document No. 0769999 on file with the Clerk of the Board), and San Diego County Sensitive Plant Species, as defined herein will be avoided as required by, and consistent with, the terms of the County’s MSCP Subarea Plan (County of San Diego 2012). In the event that the findings contained within the County’s BMO are amended, the updated code would be applicable. 2018-11-27 Agenda Packet Page 214 Phase 2 Resource Management Plan Update Otay Ranch Page 28 Page intentionally left blank 2018-11-27 Agenda Packet Page 215 2018-11-27 Agenda PacketPage 216 Phase 2 Resource Management Plan Update Otay Ranch Page 30 Page intentionally left blank 2018-11-27 Agenda Packet Page 217 Phase 2 Resource Management Plan Update Otay Ranch Page 31 3.2.5.2 City of Chula Vista Infrastructure is considered a permitted use within the Preserve in the City’s jurisdiction and would be required to comply with the City’s MSCP Subarea Plan. The City’s MSCP Subarea Plan contains separate requirements for infrastructure projects defined as either Planned Facilities or Future Facilities, which are discussed in further detail below. a. Planned Facilities Planned Facilities consist of roads and infrastructure that were anticipated by the City’s MSCP Subarea Plan as required to serve development. The following infrastructure projects are considered Planned Facilities within the Preserve: 1. Otay Lakes Road 2. Proctor Valley Road 3. Otay Valley Road 4. La Media Road 5. Paseo Ranchero south of Olympic Parkway, now known as Heritage Road 6. Main Street (formerly known as Rock Mountain Road) 7. Salt Creek Sewer Interceptor, Wolf Canyon Sewer, and Otay Valley Trunk Sewer (and associated ancillary sewer facilities including, but not limited to, pump stations, connections, and maintenance access roads) 8. Otay River Valley Equestrian Staging Areas (located in the active recreation area(s)) 9. Trails designated in the OVRP Concept Plan 10. Otay River Valley Interpretive Centers (located in the active recreation area(s)) (City of Chula Vista 2003a). Planned Facilities are considered Covered Projects by the City’s MSCP Subarea Plan. Impacts to covered species would be subject to specific Covered Project conditions and mitigation requirements and the Facilities Siting Criteria in the City’s MSCP Subarea Plan. Planned facilities are not subject to the City’s HLIT Ordinance. b. Future Facilities Future Facilities are those necessary to support planned development but are not specifically identified in the City’s MSCP Subarea Plan. Future Facilities are also considered a permitted use in the Preserve and would be required to meet all applicable regulations in the HLIT Ordinance for impacts to covered species as well as the Facilities Siting Criteria in the City’s MSCP Subarea Plan. c. Facilities Siting Criteria Planned and Future Facilities within the City’s jurisdiction are required to comply with the Facilities Siting Criteria in City’s MSCP Subarea Plan: 1. Such facilities will be located in the least environmentally sensitive location feasible, and use existing roads, trails and other disturbed areas, including use 2018-11-27 Agenda Packet Page 218 Phase 2 Resource Management Plan Update Otay Ranch Page 32 of the active recreation areas in the Otay River Valley, as much as possible (except where such areas are occupied by Quino checkerspot butterfly). Facilities should be routed through developed or developing areas where possible. If no other routing is feasible, alignments should follow previously existing roads, easements, rights of way, and disturbed areas, minimizing habitat fragmentation. 2. Such facilities shall avoid, to the maximum extent practicable, impact to Covered Species and Wetlands, and will be subject to the provisions, limitations and mitigation requirements for Narrow Endemic Species and Wetlands pursuant to Sections 5.2.3 and 5.2.4 of the City’s MSCP Subarea Plan. 3. Where roads cross the Preserve, they should provide for wildlife movement in areas that are graphically depicted on and listed in the MSCP Plan Generalized Core Biological Resource Areas and Linkages map (Figure 1-4 of the MSCP Plan) as a core biological area or a regional linkage between core biological areas. All roads crossing the Preserve should be designed to result in the least impact feasible to Covered Species and Wetlands. Where possible at wildlife crossings, road bridges for vehicular traffic rather than tunnels for wildlife use will be employed. Culverts will only be used when they can achieve the wildlife crossing/movement goals for a specific location. To the extent feasible, crossings will be designed as follows: the substrate will be left in a natural condition or revegetated if soils engineering requirements force subsurface excavation and vegetated with native vegetation if possible; a line- of-sight to the other end will be provided; and if necessary, low-level illumination will be installed in the tunnel. 4. To minimize habitat disruption, habitat fragmentation, impediments to wildlife movement and impact to breeding areas, road and/or right-of-way width shall be narrowed from existing City design and engineering standards, to the maximum extent practicable. In addition, roads shall be located in lower quality habitat or disturbed areas to the maximum extent practicable. 5. Impacts to Covered Species and habitats within the Preserve resulting from construction of Future Facilities will be evaluated by the City during project review and permitting. The City may authorize Take for impacts to Covered Species and habitats resulting from construction of Future Facilities located outside the Preserve, pursuant to the City’s MSCP Subarea Plan and consistent with the Facility Siting Criteria in [the City’s MSCP Subarea Plan]. 6. The City may authorize Take for impacts to Covered Species and habitats resulting from construction of Future Facilities located within the Preserve, subject to a limitation of two acres of impact for individual projects and a cumulative total of 50 acres of impact for all Future Facilities. Wildlife Agency concurrence will be required for authorization of Take for any impacts to Covered Species and habitat within the Preserve that exceed two acres that 2018-11-27 Agenda Packet Page 219 Phase 2 Resource Management Plan Update Otay Ranch Page 33 may result from construction of any individual Future Facility. Wildlife Agency concurrence will be required for authorization of Take for impacts to Covered Species and habitat within the Preserve that exceed 50 acres that may result from all Future Facilities combined. 7. Planned and Future Facilities must avoid impacts to covered Narrow Endemic Species and Quino checkerspot butterfly to the maximum extent practicable. When such impacts cannot be avoided, impacts to covered Narrow Endemic Species within the Preserve that will result from construction of Planned and Future Facilities located within the Preserve are subject to equivalency findings and the limitations and provisions of Section 5.2.3.6 of the City’s MSCP Subarea Plan. Impacts to Quino checkerspot butterfly that will result from construction of Planned and Future Facilities within the Preserve are subject to the provisions of Section 5.2.8 of the City’s MSCP Subarea Plan (City of Chula Vista 2003a). In the event that the Facilities Siting Criteria contained within the City’s MSCP Subarea Plan is amended, the updated code would be applicable. d. Maintenance and Repairs of Existing, Planned, and Future Roads and Infrastructure Maintenance and repairs of existing, planned, and future roads and infrastructure in the City’s jurisdiction shall comply with the City’s MSCP Subarea Plan: 1. Construction, routine maintenance, and emergency repair activities for existing, planned and future roads, and other infrastructure are permitted in the Preserve including but not limited to repair, replacement and refurbishment, cleaning (including maintenance of desilting, retention and detention basins, and flood control facilities), and maintenance of cleared areas. 2. The affected agency will be allowed to enter the Preserve and complete necessary work consistent with normal “Best Management” practices. Construction, maintenance, and emergency repair of existing, planned, and future roads and facilities in the Preserve will to the maximum extent practicable avoid impacts to Covered Species and habitats. To the extent practicable, for non-emergency routine maintenance, the City will limit access during bird breeding seasons (April 1 through June 31) in areas where breeding and/or nesting activity may occur. Where avoidance is not feasible, impacts must be minimized. Areas temporarily disturbed by construction, maintenance, and/or emergency repair will be revegetated in accordance with an approved revegetation plan. A framework plan for temporary impacts and revegetation plans will be provided as part of the HLIT Ordinance. The City will apply the requirements of the HLIT Ordinance in all cases where its jurisdictional authority governs. The agency responsible for road and/or 2018-11-27 Agenda Packet Page 220 Phase 2 Resource Management Plan Update Otay Ranch Page 34 infrastructure construction, maintenance, and emergency repair and causing unavoidable disturbance, or the holder of the permit authorizing such work, will be responsible for necessary revegetation (City of Chula Vista 2003a). In the event that the criteria in the City’s MSCP Subarea Plan are amended, the updated code would be applicable. 3.3 Incompatible Uses The following land uses or activities are considered incompatible with the biological objectives of the GDP/SRP and County and City’s MSCP Subarea Plans and thus will not be allowed within the Preserve: 1. Brush management, except as needed for Preserve management activities (e.g., habitat restoration, invasive species removal) and permitted infrastructure facilities within the Preserve as described above. 2. Materials storage or placement during the construction and operation of permitted infrastructure facilities and roads. 3. Motorized vehicle use by the public, unless within a public right-of-way or designated parking lots. 3.4 Adjacent Land Uses 3.4.1 Preserve Edge The “edge” of the Preserve is defined as the 100-foot-wide strip of land within the developable portion of Otay Ranch surrounding the perimeter of the Preserve. Developments containing the Preserve edge shall be required to prepare a Preserve Edge Plan according to the requirements set forth in this RMP. Development within the 100-foot edge is restricted to uses that are allowed within the Preserve and the following uses: 1. Brush management in order to reduce fire fuel loads and reduce potential fire hazard [7.2]. 2. Landscaping that is compatible with open space, as demonstrated by a Preserve Edge Plan [7.2]. No invasive plant species, such as those defined by the California Invasive Plant Council Invasive Plant Inventory, shall be included in the plant palette. 3. Fencing and walls that are built or landscaped in a way to minimize visual impacts to the Preserve and the OVRP. No structures other than fencing and walls shall be allowed [7.2]. 4. Trails for passive recreational use. Trails should incorporate fencing or barriers and signage to reduce the likelihood of human intrusion into the Preserve. 5. Detention basins, brow ditches, storm drains, and other drainage features to protect the quality of the adjacent Preserve. 2018-11-27 Agenda Packet Page 221 Phase 2 Resource Management Plan Update Otay Ranch Page 35 4.0 Preserve Management, Conveyance, & Funding 4.1 Preserve Management 4.1.1 Management Structure 4.1.1.1 County of San Diego & City of Chula Vista In 1996, the County and City entered into a Joint Powers Agreement (JPA) for the planning, operation, and maintenance of the Preserve (County of San Diego and City of Chula Vista 1996). Through the JPA, the title of all lands conveyed to the Preserve are jointly held and managed by both the County and City, which are collectively designated as the POM. The JPA designates the following entities: Policy Committee. The Policy Committee consists of two elected representatives, one appointed from the City and one appointed from the County. The Policy Committee meets at a minimum of once annually, but may meet more often if agreed to by both parties. The responsibility of the Policy Committee is to review all operations conducted under the JPA. Preserve Management Team. The Preserve Management Team consists of the City’s City Manager and the County’s Deputy Chief Administrative Officer. The Preserve Management Team meets on an as-needed basis to monitor the implementation of the RMP and assigns staff to carry out the duties and responsibilities of the POM. POM. The POM consists of a staff committee made up of members from both the County and City that are responsible for the operation of the Preserve as directed by the Policy Committee. The responsibilities of the POM are identified in Chapter 4 of the Phase 1 RMP. By designating the County and City as the POM, the JPA satisfies the GDP/SRP policy requiring the designation of the POM prior to the approval of the first SPA Plan [5.1]. The JPA is subject to review every five years, and is valid until March 6, 2026. The JPA may be extended an additional 30 years with written consent from the County and City. 4.1.1.2 Preserve Steward/ Biologist In March 2009, the Policy Committee and Preserve Management Team directed the POM to retain a Preserve Steward/Biologist (PSB) to provide the technical expertise to advise the POM on the status of the Preserve, monitor the sensitive biological resources existing within the Preserve, and implement basic stewardship in accordance with the Phase 1 and Phase 2 RMP (POM Preserve Management Team 2009). The role of PSB is fulfilled by a qualified consultant with demonstrated preserve management and biological monitoring experience, and is reviewed by the Policy Committee and Preserve Management Team every five years. 2018-11-27 Agenda Packet Page 222 Phase 2 Resource Management Plan Update Otay Ranch Page 36 4.1.2 Decision Making Process Per Section 5 of the JPA, it is the responsibility of the Policy Committee to establish policies for the Preserve Management Team (County of San Diego and City of Chula Vista 1996). The JPA requires a quorum of both elected representatives of the Policy Committee for purposes of conducting business. If the Policy Committee is not able to reach a consensus on an issue related to the POM, the POM may utilize a neutral third-party for non-binding mediation following the procedures established in the Dispute Resolution Process (POM Policy Committee 2008a). 4.2 Preserve Funding Per the JPA executed between the County and the City related to ongoing operation and maintenance of the Otay Ranch Preserve, both agencies are responsible for management of resources, restoration of habitat, and enforcement of open space restrictions for all conveyed lands under POM management. Although funding for management and monitoring of conveyed Preserve lands will be provided by separate funding mechanisms for village developments within the County and City, these two funding sources combined will establish the basis for the annual work plan budget to be presented and adopted by the joint County/City Policy Committee and Preserve Management Team. Since conveyed Preserve lands are in both the County and City areas, the funding will apply to all conveyed lands within the Preserve system and is not intended to be assigned to individual jurisdictions. The separate County and City funding mechanisms are described in further detail below. 4.2.1 County of San Diego Funding Prior to the approval of the first Final Map within the Otay Ranch parcels under County jurisdiction, the County will approve a CFD or similar funding mechanism to fund management and monitoring of conveyed Preserve lands associated with the development. The CFD will require the County to prepare an annual report, which includes an annual budget, showing the estimate of the operations/maintenance and biota monitoring costs for the upcoming year so that special tax assessments are levied and allocated appropriately [5.12]. 4.2.2 City of Chula Vista Funding In 1998, the City adopted by resolution the Preserve Maintenance District, Community Facilities District No. 97.2 and Special Tax Report (CFD 97-2) for the purpose of creating a perpetual funding source for maintaining preserve areas that have been conveyed to the POM as a result of development of the Otay Ranch parcels within City jurisdiction. CFD 97-2 funds are collected through a special tax that is levied annually on each taxable property within the Preserve Maintenance District. Revenues from CFD 97-2 may be used for Preserve operations, maintenance, and monitoring—including ordinary and necessary administrative expenses and reserve fund requirements—for Preserve parcels conveyed by Otay Ranch 2018-11-27 Agenda Packet Page 223 Phase 2 Resource Management Plan Update Otay Ranch Page 37 developments in the City’s jurisdiction. Preserve parcels funded by CFD 97-2 may be located both inside and outside the Preserve Maintenance District as well as the City’s jurisdiction. CFD 97-2 requires the City to prepare an annual budget showing the estimate of the operations/maintenance and biota monitoring costs for the upcoming year so that taxes are levied and allocated appropriately within the improvement areas in the Preserve Maintenance District. The annual budget is determined in an annual work plan prepared by the PSB and approved by the POM. The annual work plan and associated operating budget is presented to the Preserve Management Team and Policy Committee for review. The operating budget is incorporated into the CFD 97-2 budget, which is then adopted by the City Council as part of the City’s annual budget [5.12]. 4.2.3 Ancillary Funding The POM may utilize outside sources of funding, such as grants available for regional habitat management and monitoring efforts, to supplement funds provided by the CFDs. Ancillary funding would not replace or reduce the need for the CFDs, but would instead be used for enhanced opportunities such as management, monitoring, research, restoration, or educational programs beyond regular Preserve operations and maintenance as required by the Phase 1 and Phase 2 RMP. Ancillary funds can also be used for acquisition of developable land for preservation and/or to conserve Preserve lands not already conveyed to the POM. 4.3 Preserve Conveyance SPA or SP applicants may convey Preserve lands to the POM via fee title or covenant of easement according to the guidelines set forth in this RMP. The preferred Preserve conveyance mechanism is fee title. In limited circumstances, an interim Irrevocable Offer of Dedication (IOD) may be accepted. A mechanism for fee-in-lieu has not been established as of December 2017, although may be pursued by the County and City in the future. Non-Otay Ranch projects (e.g., development projects outside the GDP/SRP boundary) may also convey lands to the Preserve per the discretion of the County and the City. The POM has established the Non-Otay Ranch Mitigation Lands Program to define eligibility criteria that must be met for the POM to consider accepting management and monitoring responsibilities of these lands. The establishment of additional conveyance mechanisms, including a formalized fee- in-lieu program, would require review by the Preserve Management Team and POM Policy Committee prior to implementation. 4.3.1 Fee Title Prior to the recordation of each final map, the applicant shall convey fee title to the POM for an amount of land equal to the final map’s obligation to convey land to the Preserve. Each tentative map shall be subject to a condition that the applicant shall execute a maintenance agreement with the POM stating that it is the responsibility of the applicant to maintain the conveyed parcel until the financing structure has generated sufficient revenues to enable the POM to assume maintenance responsibilities. 2018-11-27 Agenda Packet Page 224 Phase 2 Resource Management Plan Update Otay Ranch Page 38 4.3.2 Covenant of Easement Where an easement is conveyed, the applicant shall be required to obtain consent of the POM and provide subordination of any prior lien holders in order to ensure that the POM has a first priority interest in such land. Upon recordation of the final map, the applicant shall record an easement restricting use of the land to those permitted by the Phase 1 and Phase 2 RMP for an amount of land equal to the final map’s obligation to convey land to the Preserve. Each tentative map shall be subject to a condition that fee title shall be granted upon demand by the POM and that the subdivider shall execute a maintenance agreement with the POM stating that it is the responsibility of the applicant to maintain the conveyed parcel until the CFD has generated sufficient revenues to enable the POM to assume maintenance responsibilities. Where consent and subordination cannot be obtained, the applicant shall convey fee title. 4.3.3 Irrevocable Offer of Dedication IODs may be used as an interim method to convey lands until the lands are formally dedicated through fee title to the POM. IODs shall be approved by the County and the City pursuant to Section 7050 of the Government Code. When IODs are used, they must include a short-term implementation program for management and monitoring until the lands are formally dedicated to the POM through fee title. IODs are to be used in limited circumstances including if land was used as compensatory mitigation for a project. The POM cannot take fee title of land until the success criteria for the compensatory mitigation has been met. 4.3. 4 Fee-In-Lieu The County and City may establish a program to collect fees in lieu of actual conveyance of land to the POM. Assessments conducted by the County have indicated that an in-lieu fee program would be infeasible for the County to implement. As of December 2017, a fee-in-lieu program has not been established by the POM and is not considered for Preserve conveyances as an on-going practice. Should the County and City desire to establish a fee-in-lieu program, the program would be designed to generate fee revenues sufficient to acquire identified Preserve land in an amount equal to the acreage obligation of the project paying the fees. Fees would be payable upon recordation of final maps. While fees may be held in trust by the jurisdiction imposing and collecting the fees, they would ultimately be conveyed to the POM. The POM would use the fees for Preserve property acquisition. Fee revenues may not be utilized for any purpose other than property acquisitions for the Preserve and the administration of said property acquisitions. 4.3.5 Non-Otay Ranch Project Mitigation Lands Program Through the Non-Otay Ranch Project Mitigation Lands Program (POM Policy Committee 2008b), developers who dedicate lands within the Preserve for mitigation of non-Otay Ranch projects are able to convey lands in fee title to the Preserve. For the POM to consider accepting 2018-11-27 Agenda Packet Page 225 Phase 2 Resource Management Plan Update Otay Ranch Page 39 management and monitoring responsibilities of the lands, the following Eligibility and Review Criteria must be met: 1. The land must be located within the Preserve boundary. 2. The mitigation land offered by the applicant must be associated with a project within the County or City’s jurisdiction. 3. The applicant must submit a Property Analysis Record (PAR) or similar cost analysis which includes abbreviated habitat/resources tasks, detailed cost analysis, and annual work plans/budgets. The cost analysis must be acceptable to both the County and City. 4. Funding must be provided in the form of a CFD or similar funding mechanism subject to the review of the POM and the approval of the jurisdiction in which the project is located. 5. The applicant must provide written evidence that all resource agency permits (i.e. short-term mitigation requirements, success criteria), as applicable, have been satisfied. 6. The POM will manage the land based on the Phase 2 RMP standards, as set forth in this revised document. The applicant must provide evidence that this management standard is acceptable to the Wildlife Agencies. 7. The land is free of environmental contamination liabilities. 8. The applicant must provide evidence that both legal and physical access have been obtained. 9. The site must be free of all encumbrances deemed unacceptable to the jurisdiction in which the project is located (i.e., conservation easements, liens, etc.) (POM Policy Committee 2008b). Prior to acceptance, the POM will review issues, including but not limited to adjacency to land currently being managed by the POM. The POM will consider management of non-contiguous lands within the Preserve if the developer provides funding in excess of the estimated management costs. Based on its review, the POM will make a recommendation to the Preserve Management Team and bring forward a recommendation to the Policy Committee based on the direction of the Preserve Management Team. The Policy Committee is the final decision-making authority for the Non-Otay Ranch Project Mitigation Lands Program (POM Policy Committee 2008b). 5.0 Biota Monitoring Program The purpose of the Biota Monitoring Program is to provide a monitoring framework to identify changes in the quality and quantity of on-site biological resources to inform future Preserve monitoring and management decisions. The Biota Monitoring Program will be implemented by the PSB in consultation with the POM following the conveyance of Preserve parcels to the POM, and shall not replace other monitoring programs required in conjunction with site-specific environmental review of individual development projects [5.5]. Management and monitoring activities undertaken by the PSB are consistent with the Biota Monitoring Program, which is consistent with the Mitigation Monitoring Program contained in the Final California Environmental Quality Act (CEQA) Findings of 2018-11-27 Agenda Packet Page 226 Phase 2 Resource Management Plan Update Otay Ranch Page 40 Fact and Statement of Overriding Considerations (Otay Ranch Joint Planning Project 1993), the MSCP Plan, and the Subarea Plans for the City and the County. The Biota Monitoring Program fulfills the GDP/SRP and Phase 1 RMP requirement for the establishment of a comprehensive monitoring program for the biota of the Preserve [5.4]. The Biota Monitoring Program for Otay Ranch is included in Attachment 4 of this RMP. The Biota Monitoring Program is comprised of two components: prioritization of resources to be monitored, and proposed monitoring methodologies. These components have been evaluated and prioritized based on current regional priorities and standards. It is anticipated that these priorities and standards will change over time due to changes in species sensitivity classifications, regional priorities, and/or monitoring standards. Thus, the Biota Monitoring Program is an adaptive document intended to be updated based on new scientific data and regional management and monitoring standards, and is designed to be a standalone document from the Phase 2 RMP Update. Formal changes to the Biota Monitoring Program will require approval from the POM prior to implementation, and will not require an amendment to the RMP. As discussed within the Biota Monitoring Program (refer to Attachment 4), the PSB evaluates Preserve lands on an annual basis and provides monitoring and management recommendations to the POM. The PSB prepares an annual report which summarizes work completed in the previous calendar year, including but not limited to documenting access issues, new site disturbances, previously undetected plant and wildlife species, sensitive species, and management tasks preformed. The PSB also prepares an annual work plan which details the proposed monitoring and management tasks for the following year for all conveyed Preserve parcels. The City is tracking the status of requirements that must be implemented at the SPA-level, and will provide an update on the progress made toward meeting required conservation objectives and policies in a future public document. The County will also track the status of requirements implemented at the SP-level after approval of SPs in the County’s jurisdiction. 6.0 Regulatory Framework for Future Development Future development within the Otay Ranch is required to comply with applicable policies and standards contained in the GDP/SRP, Phase 1 RMP, and Phase 2 RMP. The Phase 1 RMP and Phase 2 RMP are not a substitute for site-specific CEQA review of individual developments within Otay Ranch. Each SPA or SP is required to complete site-specific resource studies to determine the presence of sensitive resources on-site and the extent of impacts [9.5]. Focused surveys and special studies may be required based on the nature and extent of the resources present [2.13, 9.3, 9.4]. Specific survey and mitigation requirements are contained in the Mitigation Monitoring Program and the Final CEQA Findings of Fact and Statement of Overriding Considerations (Otay Ranch Joint Planning Project 1993), which are summarized in Part IV of the GDP/SRP (County of San Diego 1993; City of Chula Vista 2015). The following is a summary of the conveyance obligation, preservation 2018-11-27 Agenda Packet Page 227 Phase 2 Resource Management Plan Update Otay Ranch Page 41 standards, boundary line adjustment criteria, and adjacency guidelines for future development in Otay Ranch. 6.1 Conveyance Requirement As established by the 1996 Phase 2 RMP, Preserve land will be conveyed to the POM at a ratio of 1.188 acres for each 1.0 acre of development upon recordation of each final map. Limited exemptions from the conveyance obligation include common use areas and Restricted Development Areas under some circumstances. The conveyance obligation of lands within Otay Ranch is defined by the land use designations in the GDP/SRP, as described below. 6.1.1 Development Lands Subject to Conveyance The following land use categories in the GDP/SRP are subject to the established 1.188-acre conveyance requirement: Residential. Areas designated as ‘Residential’ on final maps are subject to the conveyance requirement. Community Purpose Facility. Areas designated as ‘Community Purpose Facility’ on final maps are subject to the conveyance requirement. This designation includes facilities such as private schools, daycare facilities, and private parks. Commercial. Areas designated as ‘Commercial’ on final maps are subject to the conveyance requirement. Industrial. Areas designated as ‘Industrial’ on final maps are subject to the conveyance requirement. Open Space. Areas designated as ‘Open Space’ on final maps are conditionally subject to the conveyance requirement. Those areas designated as private and public open space, as defined below, are subject to the conveyance requirement: o Private Open Space. Open space areas (undeveloped or developed) that are maintained by the property owner and/or the homeowners' association (HOA) are counted as development land subject to conveyance. o Public Open Space. All natural and manufactured open space areas, even although dedicated to the County or City, are still counted as development land. Generally, these include steep slopes between arterials and platted residential lots. Restricted Development Areas. Restricted Development Areas are conditionally subject to the conveyance requirement. The development of roads and utilities within Restricted Development Areas are subject to the conveyance requirement, unless they specifically fall within the common use land use categories below. Roads. Streets and highways that are not designated as arterials on the GDP/SRP Circulation Element are counted as development land subject to conveyance. This list is considered non-exclusive. Land use categories not described above shall be treated as development lands subject to the RMP conveyance obligation, unless they specifically fall within the common use land use categories listed below. Additionally, lands annexed into Otay Ranch are subject to the conveyance obligations set forth herein. 2018-11-27 Agenda Packet Page 228 Phase 2 Resource Management Plan Update Otay Ranch Page 42 6.1.2 Common Use & Restricted Development Areas Not Subject to Conveyance The following land use categories in the GDP/SRP are considered common use and, therefore, have an exemption to the RMP conveyance obligation: Arterials. Streets designated as ‘arterials’ in the GDP/SRP Circulation Element shall be counted as common use areas. Arterials identified in the GDP/SRP Circulation Element (County of San Diego 1993; City of Chula Vista 2015) include: o Olympic Parkway o Telegraph Canyon Road o Eastlake Parkway o Main Street (formerly known as Rock Mountain Road) o Hunte Parkway o La Media Road o Birch Road o Heritage Road o State Route 125 (SR-125) o Proctor Valley Road o Otay Lakes Road Only the area within the street right-of-way is exempt. Open space areas such as arterial buffers (e.g., manufactured slopes) are considered development land subject to conveyance. The Bus Rapid Transit Line is not considered an arterial and is subject to conveyance. Additionally, future development within the SR-125 right of way unrelated to SR-125 operations (e.g., residential, non-residential commercial) is considered development land subject to conveyance. Schools. Areas designated as ‘Public Schools’ on final maps shall be counted as common use areas. Areas designated as ‘Private Schools’ are considered Community Purpose Facility and shall not be counted as common use areas. Parks/Public Parks. Areas designated as ‘Parks’ on final maps that meet public park standards shall be counted as common use areas. Areas designated as ‘Private Parks’ (e.g., HOA parks) shall not be counted as common use areas. University. Areas designated as ‘University’ shall be counted as common use area. Open Space. Open space areas contained in the Preserve and Active Recreation Areas shall be counted as common use, as described below: o Preserve. Open space areas that are within the Preserve shall be counted as common use. o Active Recreation Area. The open space area within the active recreation area shall be counted as common use, as it provides opportunities for public recreation. Restricted Development Area. Restricted development areas subdivided into private lots are not subject to the conveyance obligation; however, these areas must have an open space easement recorded upon subdivision. 2018-11-27 Agenda Packet Page 229 Phase 2 Resource Management Plan Update Otay Ranch Page 43 6.2 Preservation Standards The Preserve is designed to achieve the preservation standards set forth in the GDP/SRP related to sensitive biological resources and landforms. Thus, conveyance of Preserve land at the 1.188-mitigation ratio for each 1.0 acre of development achieves the habitat and species- based preservation standards set forth in the GDP/SRP (Attachment 5). However, in addition to the 1.188-mitigation ratio, additional habitat or species-based restoration and translocation is required for impacts to selected vegetation communities and species by the GDP/SRP CEQA Findings of Fact and Statement of Overriding Considerations to achieve these standards. A summary of these mitigation requirements is presented in Table 3 below. For a more detailed mitigation framework, refer to the Final CEQA Findings and Statement of Overriding Considerations (Otay Ranch Joint Planning Project 1993). It should be noted that the information in Table 3 does not summarize all of the requirements listed within the Final CEQA Findings and Statement of Overriding Considerations. Rather, the information provided within this table indicates clarifications to rectify discrepancies between the GDP/SRP and the Final CEQA Findings and Statement of Overriding Considerations. The requirements listed in Table 3 represent the most stringent requirements between the two aforementioned documents. It should be noted that these mitigation standards apply to project-related impacts within areas designated as Development Areas that have Take Authorization from the County and City’s MSCP Subarea Plan. Inside the Preserve, impacts to sensitive species or habitats are subject to the provisions of the County and City’s MSCP Subarea Plans, which are discussed in Section 1.4.3 of this document. Within the City’s jurisdiction, impacts outside Covered Project areas must comply with the provisions of the HLIT Ordinance. Within the County’s jurisdiction, impacts outside the Take Authorized Area must comply with the provisions of the BMO and could be subject to a Major or Minor Amendment depending on how applicable lands are categorized within the MSCP. The Phase 1 RMP and Phase 2 RMP provide the minimum preservation standards to be achieved for development within the County’s jurisdiction. This Phase 2 RMP incorporates all mitigation measures established in the Mitigation Monitoring Program, the habitat and species preservation standards entitled ‘Summary of Biological Mitigation Measures’ contained in Exhibit B to the Mitigation Monitoring Program, the mitigation measures for biological impacts set forth in the environmental document adopted in support of the GDP/SRP, and the minimum preservation standards in the MSCP Plan and County Subarea Plan. Specific Plan applicants must meet these minimum preservation standards, or any future standards that may be adopted by the County, in order to monitor, preserve, and enhance biological resources in Otay Ranch. The required conservation measures may be funded in whole or in part by the project applicants and their successors as may be conditioned by the County and as discussed in Section 4.2 of this document. 2018-11-27 Agenda Packet Page 230 Phase 2 Resource Management Plan Update Otay Ranch Page 44 Table 3 Restoration & Translocation Requirements for Otay Ranch Development Projects Resource Mitigation Standard Sensitive Vegetation Communities Alkali Meadow Restoration for impacts at 1:1 ratio1,2 Coastal sage scrub (San Diego viguiera dominated)3 Restoration for impacts at 2:1 ratio Coastal sage scrub (Munz’s sage dominated)3 Restoration for impacts at 2:1 ratio Maritime Succulent Scrub Restoration for impacts at 1:1 ratio Maritime Succulent Scrub (Coastal cactus wren occupied habitat) Habitat restoration, creation, and enhancement for unavoidable impacts2 Native Grassland Restoration for impacts at 1:1 to 3:1 ratio Vernal Pools No-net-loss2 Wetlands No-net-loss2 Sensitive Plant Species Acanthomintha ilicifolia San Diego thornmint Translocation of impacted individuals Arctostaphylos otayensis Otay manzanita Translocation of impacted individuals Bloomeria clevelandii San Diego goldenstar Translocation of impacted individuals Cylindropuntia californica var. californica snake cholla Translocation of impacted individuals Dudleya variegata variegated dudleya Translocation of impacted individuals Ferocactus viridescens San Diego barrel cactus Translocation of impacted individuals Iva hayesiana San Diego marsh-elder Restoration for impacts at 2:1 ratio Physalis greenei Greene's Ground-cherry Translocation of impacted individuals Stipa diegoensis San Diego needle grass Translocation of impacted individuals 1 Minimum ratio for impacts. 2 Mitigation ratios shall be determined by the appropriate agency at the time of impacts. 3 Restoration for impacts is required for coastal sage scrub with San Diego viguiera or Munz’s sage present at 50% or greater relative shrub cover. 2018-11-27 Agenda Packet Page 231 Phase 2 Resource Management Plan Update Otay Ranch Page 45 6.3 Preserve Boundary Modifications Modifications to the Preserve boundary are allowed without an amendment to the GDP/SRP or Phase 1 and Phase 2 RMP. Boundary modifications are intended for use at the SP or SPA planning level to make minor refinements to include additional resources within the Preserve [9.8]. Boundary adjustments may occur for reasons such as new biological information obtained through site-specific studies and/or unforeseen engineering design opportunities or constraints identified during the siting or design of projects that require modification of the Preserve boundary. Boundary modifications cannot reduce the size of the Preserve boundary, unless it can be demonstrated that the modification results in a functionally equivalent Preserve and complies with the Phase 1 RMP policies and standards [9.8]. Boundary modifications are also required to demonstrate compliance with the adjacency guidelines, including the set-back requirements [9.8]. Preserve boundary modifications are processed through the respective jurisdiction’s boundary adjustment process as set forth in the MSCP Plan and the respective jurisdiction’s MSCP Subarea Plan. Adjustments to the MSCP boundaries must meet six functional equivalency criteria to demonstrate that the habitat conveyed is of equal or higher value. The comparison of biological value will be based on the following: 1. Effects on significantly and sufficiently conserved habitats (i.e., the exchange maintains or improves the conservation, configuration, or status of significantly or sufficiently conserved habitats, as defined in Section 4.2.4 [of the MSCP Plan]); 2. Effects to covered species (i.e., the exchange maintains or increases the conservation of covered species); 3. Effects on habitat linkages and function of preserve areas (i.e., the exchange results in similar or improved management efficiency and/or protection for biological resources); 4. Effects on preserve configuration and management (i.e., the exchange results in similar or improved management efficiency and/or protection for biological resources); 5. Effects on ecotones or other conditions affecting species diversity (i.e., the exchange maintains topographic or structural diversity and habitat interfaces of the preserve); and/or 6. Effects to species of concern not on the covered species list (i.e., the exchange does not significantly increase the likelihood that a species that is not covered by the MSCP will meet the criteria for listing under either the Federal or State Endangered Species Acts) (County of San Diego 1998a). The processes by which MSCP boundary adjustments are processed in the County and City are discussed in further detail below. In the event that the boundary adjustment requirements in the MSCP Plan (County of San Diego 1998a), County’s MSCP Subarea Plan (County of San Diego 1997), and/or City’s MSCP Subarea Plan (City of Chula Vista 2003a) are modified, the updated code would be applied. 2018-11-27 Agenda Packet Page 232 Phase 2 Resource Management Plan Update Otay Ranch Page 46 6.3.1 County of San Diego Per the Implementing Agreement for the County’s MSCP Subarea Plan (County of San Diego 1998b), adjustments to the MSCP boundaries may be allowed in limited circumstances. Boundary modifications require concurrence of the Wildlife Agencies and must demonstrate compliance with the provisions of Section 5.4.2 of the County’s MSCP Plan. 6.3.2 City of Chula Vista Per the Implementing Agreement for the City’s MSCP Subarea Plan (City of Chula Vista 2003b), adjustments to the MSCP boundaries may be allowed in limited circumstances. Boundary modifications within the City’s jurisdiction are processed in accordance with Section 5.4.2 of the City’s MSCP Subarea Plan: In the case of a Boundary Adjustment, the City will determine the adjusted Preserve boundary pursuant to the following process: 1. A preliminary determination of the biological value of a proposed boundary adjustment will be made by the City Director of Development Services (or designee) in accordance with Section 5.4.2 of the MSCP Plan and/or Section 5.2.3.6 of the City’s MSCP Subarea Plan, if appropriate. 2. The City notifies the Wildlife Agencies in writing of the boundary adjustment, including written findings of equivalency made by the City Director of Development Services. 3. The adjusted boundary becomes the adopted boundary upon project approval unless the Wildlife Agencies object to the adjusted boundary within 30 days of receipt of City’s written notice to the Wildlife Agencies. Objections by the Wildlife Agencies to boundary adjustments must be in writing and must state the rationale in support of the objection. 4. If the City receives written objection to a determination of a boundary adjustment by the Wildlife Agencies within 30 days of receipt of City’s written notice to the Wildlife Agencies, then the City and Wildlife Agencies will have 60 days to meet, confer, and reach agreement upon final Preserve boundaries. If agreement is not reached, the boundary adjustment as proposed will not be approved. 5. If the Wildlife Agencies fail to respond to the City’s notice within 30 days of receipt of the City’s determination, the decision by the City Director of Development Services shall be deemed accepted. Any adjustments to the Preserve boundary will be disclosed in any necessary environmental documentation prepared for the proposed project. An evaluation of the proposed boundary adjustment will be provided in the biological technical report and summarized in the appropriate sections of the environmental document. If it is determined through the process identified in Section 5.4.2 [of the City’s MSCP Subarea Plan] that the adjustment will result in the same or higher biological value of the Preserve area, no further action by the jurisdictions or 2018-11-27 Agenda Packet Page 233 Phase 2 Resource Management Plan Update Otay Ranch Page 47 Wildlife Agencies shall be required. An adjustment that does not meet the equivalency test will require an amendment to [the City’s MSCP Subarea Plan] or separate Federal Endangered Species Act Section 10(a)(1)(B) permit or Section 7 Consultation (City of Chula Vista 2003a). 6.4 Preserve Edge Plan Requirements The “edge” of the Preserve is defined as the 100-foot-wide strip of land within the developable portion of Otay Ranch surrounding the perimeter of the Preserve. Developments containing the Preserve edge shall be required to prepare a Preserve Edge Plan. Preserve Edge Plans shall be prepared in consultation with a qualified biologist, and are subject to review and approval by the County and/or City to ensure consistency with resource protection objectives and policies in the GDP/SRP [7.1; 7.2]. The Preserve Edge Plan shall demonstrate the project’s compliance with the adjacency guidelines discussed below. 6.4.1 Adjacency Guidelines Development adjacent to the Preserve is required to comply with the policies set forth in the GDP/SRP and Phase 1 RMP, as well as the adjacency requirements in the respective jurisdiction’s MSCP Subarea Plan. Implementation of the following standards from the Phase 1 RMP for development of SP or SPA Plans adjacent to the Preserve is required to maintain and protect the biological integrity of the Preserve through implementation of the following standards from the Phase 1 RMP: 1. Provide temporary fencing around perimeter of sensitive habitat areas and/or areas occupied by sensitive species adjacent to any SP or SPA under construction [7.5]. 2. Phase construction that is immediately adjacent to sensitive biological resources to avoid indirect impacts [7.5]. 3. Development adjacent to sensitive habitats within the Preserve must comply with the set-back requirements in Table 4 below [9.8]. 4. Demonstrate compliance with the adjacency guidelines in the County and City’s MSCP Subarea Plans pertaining to their respective jurisdiction. These requirements are discussed in further detail below. In the event that the Preserve adjacency requirements in the MSCP Plan (County of San Diego 1998a), County’s MSCP Subarea Plan (County of San Diego 1997), and/or City’s MSCP Subarea Plan (City of Chula Vista 2003a) are modified, the updated code would be applied. 2018-11-27 Agenda Packet Page 234 Phase 2 Resource Management Plan Update Otay Ranch Page 48 Table 4 Preserve Set-back Requirements Resource Minimum Set-back Maximum Set-back (feet) Residential (feet) Commercial (feet) Other Uses¹ (feet) Sensitive Vegetation Communities Alkali Meadow2 100 100 100 NA Coastal sage scrub2 100 100 100 NA Chaparral 100 50 50 NA Mule fat scrub 50 50 50 1002,3 Native grassland 25 25 25 50 Oak woodland2 100 100 100 100 Riparian woodland/forest 100 100 100 2002,3 Southern interior cypress forest2 100 100 100 100 Vernal pools4 100 100 100 NA Sensitive Plant Species Sensitive plants (Priority 1, 2, & 3) 50 50 50 NA Sensitive plants (Priority 4) 25 25 25 NA NA = Not applicable 1 Including (but not limited to) industrial, schools, parks, and roads. 2 The set-back requirements differ between the Phase 1 RMP and GDP/SRP CEQA Findings of Fact. The Phase 2 RMP Update defers to the higher standard contained in the GDP/SRP CEQA Findings of Fact (Otay Ranch Joint Planning Project 1993). 3 Habitat occupied by or with potential for least Bell’s vireo and southwestern willow flycatcher should utilize a 200-foot buffer (100-foot biological buffer and 100-foot landscaping buffer), when indirect impacts from adjacent roads or development are identified as potentially significant. 4 Setback distance is from the boundary of the vernal pool watershed. Priority 1 species: San Diego thornmint (Acanthomintha ilicifolia), Dunn’s mariposa lily (Calochortus dunnii), slender- pod jewelflower (Caulanthus heterophyllus), San Diego button-celery (Eryngium aristulatum var. parishii), Mexican flannelbush (Fremontodendron mexicanum), willowy monardella (Monardella. viminea), California Orcutt’s grass (Orcuttia californica), Otay Mesa mint (Pogogyne nudiuscula) Priority 2 species: Otay manzanita (Arctostaphylos otayensis), Orcutt’s brodiaea (Brodiaea orcuttii), dense pine reedgrass (Calamagrostis koeleriodes), San Miguel savory (Clinopodium chandleri), summary holly (Comarostaphylis diversifolia ssp. diversifolia), Tecate cypress (Hespercyparis forbesii), variegated dudleya (Dudleya variegata), coast barrel cactus (Ferocactus viridescens), San Diego goldenstar (Bloomeria clevelandii), little mousetail (Myosurus minimus), spreading navarretia (Navarretia fossalis), snake cholla (Cylindropuntia californica var. californica), chaparral nightshade (Solanum xanti),Gander’s pitcher sage (Lepechinia ganderi) Priority 3 species: California adolphia (Adolphia californica), San Diego bur-sage (Ambrosia chenopodiifolia), San Diego sagewort (Artemisia palmeri), delicate clarkia (Clarkia delicata), Orcutt’s bird’s-beak (Dicranostegia orcuttiana), Palmer’s grapplinghook (Harpagonella palmeri), San Diego marsh-elder (Iva hayesiana), Munz’s sage (Salvia munzii), Greene's ground-cherry (Physalis greenei), San Diego needle grass (Stipa diegoensis), San Diego viguiera (Bahiopsis laciniata) Priority 4 species: southern mountain misery (Chamaebatia australis), western dichondra (Dichondra occidentalis), southwestern spiny rush (Juncus acutus ssp. leopoldii), chaparral pea (Pickeringia montana var. tomentosa), California adder's-tongue fern (Ophioglossum lusitanicum spp. californicum), Engelmann oak (Quercus engelmannii), Coulter’s matilija poppy (Romneya coulteri), ashy spike-moss (Selaginella cinerascens) 2018-11-27 Agenda Packet Page 235 Phase 2 Resource Management Plan Update Otay Ranch Page 49 6.4.1.1 County of San Diego Development adjacent to the Preserve within the County’s jurisdiction is required to adhere to the following adjacency guidelines from the County’s MSCP Subarea Plan. In addition, development in Otay Ranch is required to follow fuel modification guidelines included within Section 3.4.3 of the county’s MSCP Subarea Plan. A. Where feasible, plant materials used to landscape manufactured open space, road cuts/fills, and recreational facilities should consist of native species similar/compatible with the adjacent habitat in the Preserve. If possible, those species should be based on plants with genetic materials of the area. B. Areas and structures subject to heavy human use (e.g., ball fields, parking lots, hardscapes/playing courts, equestrian centers, staging areas, etc.) shall, to the extent feasible, be located away from the edge of the Preserve. C. Lighting within the Preserve edge shall be confined to areas necessary to ensure public safety, and shall be limited to low pressure sodium fixtures, shielded and directed away from the preserve where possible. D. Fencing along the Preserve boundary is desirable but not mandatory and may provide a barrier to fire, invasive species, and uncontrolled human access. Should a landowner or preserve manager decide to install fencing, the type, style and height must conform to existing regulations or those included in the applicable Specific Plan (County of San Diego 1997). 6.4.1.2 City of Chula Vista Development adjacent to the Preserve within the City’s jurisdiction is required to adhere to the following adjacency guidelines from the City’s MSCP Subarea Plan. A. Drainage: 1. All developed and paved areas must prevent the release of toxins, chemicals, petroleum products, exotic plant materials and other elements that might degrade or harm the natural environment or ecosystem processes within the Preserve. This can be accomplished using a variety of methods including natural detention basins, grass swales or mechanical trapping devices. These systems should be maintained approximately once a year, or as often as needed, to ensure proper functioning. Maintenance should include dredging out sediments if needed, removing exotic plant materials, and adding chemical-neutralizing compounds (e.g., clay compounds) when necessary and appropriate. 2. Develop and implement urban runoff and drainage plans which will create the least impact practicable for all development adjacent to the Preserve. All development projects will be required to meet National Pollutant Discharge Elimination System (NPDES) standards and incorporate Best Management Practices (BMPs) as defined by the City’s Standard Urban Storm Water Mitigation Plan (SUSMP). 2018-11-27 Agenda Packet Page 236 Phase 2 Resource Management Plan Update Otay Ranch Page 50 3. Pursuant to the San Diego Regional Water Quality Control Board (RWQCB) Municipal Storm Water Permit, and the City of Chula Vista Storm Water Management Standards Requirements Manual, which includes the SUSMP, all development and redevelopment located within or directly adjacent to or discharging directly to an environmentally sensitive area (as defined in the Municipal Permit and the Local SUSMP) are required to implement site design, source control, and treatment control BMPs. The BMPs shall, at a minimum include: Control post-development peak storm water runoff discharge rates and velocities to maintain or reduce pre-development downstream erosion and to protect stream habitat; Conserve natural areas where feasible; Minimize storm water pollutants of concern in runoff; Remove pollutants of concern from urban runoff; Minimize directly connected impervious areas where feasible; Protect slopes and channels from eroding; Include storm drain stenciling and signage; Include additional water quality provisions applicable to individual project categories; Ensure that post-development runoff does not contain pollutant loads which cause or contribute to an exceedance of water quality objectives or which have not been reduced to the maximum extent practicable; and Implement BMPs close to pollutant sources. 4. Require all NPDES-regulated projects to implement a combination of BMPs as close to potential pollutant sources as feasible. B. Toxic Substances: All agricultural uses, including animal-keeping activities, and recreational uses that use chemicals or general by-products such as manure, potentially toxic or impactive to wildlife, sensitive species, habitat, or water quality need to incorporate methods on their site to reduce impacts caused by the application and/or drainage of such materials into the Preserve. Methods shall be consistent with requirements of the RWQCB and NPDES standards. C. Lighting: Lighting of all developed areas adjacent to the Preserve should be directed away from the Preserve wherever feasible and consistent with public safety. Where necessary, development should provide adequate shielding with non-invasive plant materials (preferably native), berming, and/or other methods to protect the Preserve and sensitive species from night lighting. Consideration should be given to the use of low-pressure sodium lighting. D. Noise: Uses in or adjacent to the Preserve should be designed to minimize noise impacts. Berms or walls should be constructed adjacent to commercial areas and any other use that may introduce noises that could impact or interfere with wildlife utilization of the Preserve. Excessively noisy uses or activities adjacent to breeding areas, including temporary grading activities, must incorporate noise reduction measures or be curtailed during the breeding season of sensitive bird species, consistent with Table 3-5 of the MSCP Plan. Where noise associated with clearing, grading or grubbing will negatively 2018-11-27 Agenda Packet Page 237 Phase 2 Resource Management Plan Update Otay Ranch Page 51 impact an occupied nest for the least Bell’s vireo during the breeding season (March 15 to September 15), noise levels should not exceed 60 LEQ. However, on a case-by-case basis, if warranted, a more restrictive standard may be used. If an occupied least Bell’s vireo nest is identified in a pre-construction survey, noise reduction techniques, such as temporary noise walls or berms, shall be incorporated into the construction plans to reduce noise levels below 60 LEQ. Where noise associated with clearing, grubbing or grading will negatively impact, an occupied nest for raptors between January 15 and July 31 or the coastal California gnatcatcher between February 15 and August 15 (during the breeding season), clearing, grubbing or grading activities will be modified if necessary, to prevent noise from negatively impacting the breeding success of the pair. If an occupied raptor or coastal California gnatcatcher nest is identified in a pre-construction survey, noise reduction techniques shall be incorporated into the construction plans. Outside the bird breeding season(s) no restrictions shall be placed on temporary construction noise. E. Invasives: No invasive non-native plant species shall be introduced into areas immediately adjacent to the Preserve. All open space slopes immediately adjacent to the Preserve should be planted with native species that reflect the adjacent native habitat. The plant list contained in the “Wildland / Urban Interface: Fuel Modification Standards,” Appendix L, must be reviewed and utilized to the maximum extent practicable when developing landscaping plans in areas adjacent to the Preserve (City of Chula Vista 2003a). F. Fuel Modification: Per Section 7.4.7.1 of the City’s Subarea Plan, fuel modification zones may be incorporated into the Preserve Edge. 7.0 Administration 7.1 RMP Amendments Per Policy 9.6 of the Phase 1 RMP, the Phase 1 and Phase 2 RMP may be amended by the legislative body having jurisdiction over the use of land affected by the amendment, provided that all such amendments shall be subject to review and comment by the POM, City, and County. However, the procedures for processing an amendment to the RMP differ between the County and City. Within the County’s planning structure, the procedures for amending the RMP follow County Board of Supervisors Policy I-109. Within the City’s planning structure, RMP amendments follow the procedure for amending the GDP. 7.1.1 County of San Diego The County adopted Board of Supervisors Policy I-109 to provide direction to County decision- makers concerning the processing of amendments to the Phase 1 or Phase 2 RMP (County of San Diego 1984). The policy provides that the following procedures shall be applied when processing an amendment to the Phase 1 or Phase 2 RMP: 2018-11-27 Agenda Packet Page 238 Phase 2 Resource Management Plan Update Otay Ranch Page 52 Policy I: It is the policy of the Board of Supervisors to establish a subcommittee composed of two members of the Board that would convene on an as-needed basis with a two-member subcommittee of the Chula Vista City Council to provide input and direction to the Board and City Council, staff, and the applicant on the following issues/plans: Sphere of Influence Study, Annexation Plans, Property Tax Agreements, Phase 2 RMP, Overall Design Plan, and other major issues identified by either body. Policy II: It is the policy of the Board of Supervisor that Otay Ranch Associated Documents listed below, all on file with the Clerk of the Board of Supervisors and identified by the Document Numbers indicated below, shall be used in the preparation of plans, reports and other documents for the Otay Ranch project, County decision-makers and staff shall assure that applications submitted for the development of portions of the Otay Ranch project are consistent with the Associated Documents: 1. Mitigation Monitoring Program (Doc. No. 759220) 2. Resource Management Plan (Doc. No. 759221) 3. Village Phasing Plan (Doc. No. 759222) 4. Facility Implementation Plans (Doc. No. 759223) 5. Service/Revenue Plan (Doc. No. 759224) Amendments: The above Otay Ranch Associated Documents may be amended by the Board of Supervisors from time to time. The following procedures shall be followed when the processing of any such amendment is authorized by the Board of Supervisors: 1. The Department of Planning & Development Services shall be responsible for preparation and processing of such an amendment. The amendment shall be prepared in consultation with the City. The Department shall prepare a report which analyzes the impacts of the proposed amendment and the comments received from the City. 2. The Planning Commission shall hold a public hearing on the proposed amendment, and after considering recommendations of staff, the City and any interested persons, shall make a recommendation to the Board of Supervisors. 3. Upon receipt of the Planning Commission’s recommendation, the Board of Supervisors shall also hold a public hearing on the proposed amendment, and may approve, modify or deny the proposed amendment. 4. Notice of the hearings by the Planning Commission and the Board of Supervisors shall be given by publication of the subject, time and date thereof in a newspaper of general circulation within the County, as least 10 days prior to the hearing. 5. An applicant for a privately-initiated amendment to any of the Otay Ranch Associated Documents shall pay a fee in accordance with Paragraph D of 2018-11-27 Agenda Packet Page 239 Phase 2 Resource Management Plan Update Otay Ranch Page 53 Schedule F of Section 362 of the County’s Administrative Code, to cover all costs of the County associated with processing such application. The Director of Planning & Development Services may require that a deposit of estimated costs be made in advance of work being commenced on such an application (County of San Diego 1984). This policy will be reviewed for continuance by December 31, 2020. In the event that the procedures for amending the RMP are revised, the updated policy would be applied. 7.1.2 City of Chula Vista Within the City, amendments to the Phase 1 or Phase 2 RMP shall follow the procedures for amending a GDP set forth in Section 19.48.070 of the City’s Municipal Code: 1. Following its public hearing, the City Council may adopt an amendment to the Zoning Ordinance establishing a P-C zone, or may deny the proposed amendment. The City Council shall make no modification of the proposed amendment as recommended by the Planning Commission unless and until such modification has been referred to the planning commission for additional study, report and recommendation. Such additional study, report and recommendation shall be made by the planning commission within forty days of the date of the referral, unless and except as the City Council may grant the Planning Commission additional time for its review of the matter. 2. At the time of adoption of a P-C zone amendment, the City Council shall adopt, by resolution, the general development plan as defined in Section 19.48.040 [of the City’s Municipal Code]. 3. Following the adoption of the P-C zone amendment and the general development plan, all development within the district shall thereafter be in substantial conformity with the adopted general development plan or such modifications thereto as may have been approved (City of Chula Vista 2016c). In the event that the procedures for amending a GDP are revised in Section 19.48.070 of the City’s Municipal Code (City of Chula Vista 2016c), the updated code would be applicable. 2018-11-27 Agenda Packet Page 240 Phase 2 Resource Management Plan Update Otay Ranch Page 54 Page intentionally left blank 2018-11-27 Agenda Packet Page 241 Phase 2 Resource Management Plan Update Otay Ranch Page 55 8.0 References Cited Chula Vista, City of (City) 1993a General Development Plan. October 28. 1993b Otay Ranch Program EIR Mitigation Monitoring Program. October 28. 1996 Otay Ranch Phase 2 Resource Management Plan. 2003a Multiple Species Conservation Program Subarea Plan. February. 2003b Implementing Agreement By and Among United States Fish & Wildlife Service, California Department of Fish & Game, and City of Chula Vista to Establish a Multiple Species Conservation program (“MSCP”) For the Conservation of Threatened, Endangered, and Other Species in the Vicinity of Chula Vista, California. February. 2006 Otay Ranch Villages Two, Three, and a Portion of Four Sectional Planning Area (SPA) Plan Final Second Tier EIR. May 5. 2015 General Development Plan. Amended May 26. 2016a Municipal Code- Chapter 17.35 Habitat Loss and Incidental Take. 2016b GIS layer – 100% Conservation Area. 2016c Municipal Code – Section 19.48.070. Otay Ranch Joint Planning Project 1993 Final CEQA Findings of Fact and Statement of Overriding Considerations. Otay Ranch Subregional Plan “County Board of Supervisors Final Plan”. Revised October 28. POM Policy Committee 2008a Otay Ranch Preserve Joint Powers Agreement – Dispute Resolution Process. 2008b Non-Otay Ranch Project Mitigation Lands Program Eligibility and Review Criteria. POM Preserve Management Team 2009 Meeting Summary – Otay Ranch Special Preserve Owner/Manager Preserve Management Team Meeting. March 17. Reiser, C. H. 2001 Rare Plants of San Diego County. Aquifir Press, Imperial Beach, CA. San Diego Association of Governments (SANDAG) 2012 Management Priorities for Invasive Non-native Plants – A Strategy for Regional Implementation, San Diego County, California. September. San Diego, City of 2014 Community Plan Update. March. 2018-11-27 Agenda Packet Page 242 Phase 2 Resource Management Plan Update Otay Ranch Page 56 San Diego, County of 1984 Board of Supervisors Policy Manual - Policy I-109. 1993 Otay Subregional Plan, Vol. 2. Adopted October 28. 1997 Multiple Species Conservation Program County of San Diego Subarea Plan. 1998a Final Multiple Species Conservation Program MSCP Plan. 1998b County of San Diego Multiple Species Conservation Program Implementing Agreement By and Between United States Fish and Wildlife Service California Department of Fish and Game County of San Diego. March 17. 2006 Otay Valley Regional Park Habitat Restoration Plan & Non-native Plant Removal Guidelines. 2007 Amendments to the Otay Ranch Subregional Plan and Phases 1 and 2 Resource Management Plans; General Plan Amendment 06-012; Otay Subregional Planning Area; (Districts: 1, 2). December 5. 2012 Biological Mitigation Ordinance (Excerpt from the San Diego County Code of Regulatory Ordinances). San Diego, County of, and Chula Vista, City of 1993 Otay Ranch Resource Management Plan. October 28. 1996 Joint Powers Agreement Between the City of Chula Vista and County of San Diego for the Planning, Operations, and Maintenance of the Otay Ranch Open Space Preserve. San Diego, County of; Chula Vista, City of; and San Diego, City of 1997 Otay Valley Regional Park Concept Plan. San Diego Geographic Information Source (SanGIS) 2013 SanGIS using South County Multiple Species Conservation Program GIS data provided by County of San Diego Department of Planning and Land Use, Planning & Development Services, LUEG-GIS Service. 2016 SanGIS using legal recorded data provided by the County Recorders and Assessor's Office. SanGIS/SANDAG GIS Data Warehouse. 2018-11-27 Agenda Packet Page 243 Otay Ranch ATTACHMENTS 2018-11-27 Agenda Packet Page 244 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 245 Otay Ranch ATTACHMENT 1 Summary of GDP/SRP Amendments and Policy Changes (October 1993 - December 2017) 2018-11-27 Agenda Packet Page 246 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 247 Phase 2 Resource Management Plan Update Otay Ranch 1-1 Attachment 1 Summary of GDP/SRP Amendments and RMP Policy Changes (October 1993 – December 2017) Document Approval Date Summary of Land Use Changes General Plan Amendment 92-04 / Resolution PCM-90-03 October 23, 1993 County Board of Supervisors adopts Otay Ranch General Plan Amendment 92-04. This general plan amendment adopts Volume 2 of the SRP and the Phase 1 RMP. Chula Vista City Council adopts PCM 90-03, thus adopting the GDP. Joint Powers Agreement between the City of Chula Vista and County of San Diego for the Planning, Operations, and Maintenance of the Otay Ranch Open Space Preserve March 6, 1996 County and City enter into a JPA, establishing the County and City as the POM. Resolution 18285 May 14, 1996 City adopts the GDP amendments set forth in Final Environmental Impact Report (FEIR) 95-01. The amendments affect master-planned villages, transit, irrigation of farmland, solar energy requirements, residential noise mitigation, and habitat noise mitigation standards. Otay Ranch Phase 2 Resource Management Plan June 4, 1996 City adopts the 1996 Phase 2 RMP concurrently with the first SPA Plan. The County Board of Supervisors adopts only segments of the 1996 Phase 2 RMP related to identification of the POM, conveyance schedule, and the Preserve Funding Program. Resolution 19253 & 19254 November 10, 1998 City adopts the GDP amendments set forth in FEIR 97-03. The GDP amendments include several changes to Village One, Village Two, Village Six, Village Seven, Village 13, and Village 15, as well as land use changes within a 1,000-foot buffer zone around the landfill and an update to the Public Facilities Financing Plan to include 473.1 acres west of Paseo Ranchero. Resolution 2001-362 October 23, 2001 City adopts the GDP amendments set forth in the Final Second Tier EIR for the Otay Ranch GDP Amendments/ Village 11 SPA Plan . The amendment includes (1) the realignment of certain arterial roads; (2) re- arrangement of land uses and village boundaries; (3) amendments to the Village Phasing Plan, and (4) re-arrangement of high school and middle school sites. General Plan Amendment 98-03 July 18, 2001 County adopts General Plan Amendment 98-03 to reduce the density of Village 13 and 15 by removing development rights from portions of those villages. 2018-11-27 Agenda Packet Page 248 Phase 2 Resource Management Plan Update Otay Ranch 1-2 Attachment 1 Summary of GDP/SRP Amendments and RMP Policy Changes (October 1993 – December 2017) Document Approval Date Summary of Land Use Changes General Plan Amendment 00-01 August 7, 2002 County adopts amendment to the 1996 Phase 2 RMP to amend the Preserve conveyance plan, as well as the following procedural changes: (1) allowing a developer to use ‘metes and bounds’ to convey the exact amount of lands required; (2) conveying lands in excess of that required, and tracking of any excess by the POM; (3) allowance of conveyance using an ‘Irrevocable Offer of Dedication’ and subsequent transfer of fee title; (4) defining conditions for purchase of Preserve lands by governmental entities; (5) providing that organizations or individuals seeking to purchase designated development lands to preserve as open space, must also purchase and preserve the open space Preserve lands that normally would have been conveyed to the POM; (6) allowing the POM staff to evaluate proposed conveyances and impose reasonable conditions; (7) providing for dispute resolution by the POM Executive Committee; (8) providing that conveying parties maintain the land until their management can be assumed by the POM; (9) requiring completion of a Phase I hazardous materials study to assure the County and City that they are not accepting lands containing problematic conditions; (10) expanding the initial area of conveyances (11) allowing non-Otay Ranch developers to buy and then convey Preserve lands to the POM; and (12) allowing Otay Ranch developers to buy and then convey lands outside Otay Ranch if all Preserve lands have been conveyed. Resolution 2005-345 October 11, 2005 City approves amendments to the GDP for the Village Six Setting and Land Use Table description for acreage and unit counts. Resolution 2005-424 December 13, 2005 City approves the City’s comprehensive General Plan Update (GPU) Land Use Map and Land Use and Transportation Element, and the amendment to the City’s Multiple Species Conservation Program (MSCP) Subarea Plan. The GPU changed the designation of 119 acres within the Otay Ranch Village 14 (Inverted “L”) from Residential Low to Open Space Preserve. Resolution 2006-155 May 23, 2006 City approves amendments to the GDP and the 1996 Phase 2 RMP set forth in the Otay Ranch Villages Two, Three, and a Portion of Four SPA Plan Final Second Tier EIR. The amendment eliminates the Preserve conveyance plan and coastal sage scrub restoration requirement. 2018-11-27 Agenda Packet Page 249 Phase 2 Resource Management Plan Update Otay Ranch 1-3 Attachment 1 Summary of GDP/SRP Amendments and RMP Policy Changes (October 1993 – December 2017) Document Approval Date Summary of Land Use Changes General Plan Amendment 06-012 December 5, 2007 County adopts General Plan Amendment 06-012 to eliminate the Preserve conveyance plan and coastal sage scrub restoration requirement. Otay Ranch Open Space Easement Vacation VAC 09-003 December 9, 2009 County approves easement vacation to vacate 1,079 acres of a dedicated open space easement and irrevocable offer of dedication in portions of Village 13 & 15. A substitution of land of equal value and size was dedicated in return and the portions of Village 15 that were included in General Plan Amendment 98-03 were immediately granted back. Resolution 2012-009 January 24, 2012 City adopts GDP amendment to reallocate 113 dwelling units among 10 neighborhoods within Village 2. Resolution 2012-056 April 3, 2012 City adopts amendments to the GDP and Village 2 SPA Plan to add 197 units among four neighborhoods within Village 2. Resolution 2013-029 February 26, 2013 City adopts the GDP amendment contained in ‘General Development Plan Amendment, Otay Ranch Village 8 West & Village 9, September 2012’. The amendment includes land use, circulation, and policy amendments for approximately 1,281 acres within Otay Ranch. Resolution 2013-103 June 4, 2013 City adopts amendment to GDP and Village 6 SPA Plan to change the allowable number of residential units within the ‘MU’ land use category from 158 to 206 for a 6.97-acre parcel in Village 6. Resolution 2014-208 November 4, 2014 City adopts amendment to GDP and Otay Ranch Villages 2, 3, and a Portion of 4 SPA Plan to add 1,562 units among 36 neighborhood and planning areas within Village 2. Resolution 2014-233 December 2, 2014 City adopts GDP amendment contained in ‘University Villages, Otay Ranch Villages Three North and a Portion of Four, Eight East, and Ten, General Development Plan Amendment, July 2014’. The amendment includes land use, circulation, and policy changes for approximately 1,375 acres within Otay Ranch. Resolution 2015-144 May 26, 2015 City adopts amendment to GDP to reflect land use and policy changes for approximately 35 acres within Planning Area 12. 2018-11-27 Agenda Packet Page 250 Phase 2 Resource Management Plan Update Otay Ranch 1-4 Attachment 1 Summary of GDP/SRP Amendments and RMP Policy Changes (October 1993 – December 2017) Document Approval Date Summary of Land Use Changes NOTES: GDP = EIR = JPA = POM = SP = SPA = SRP = City of Chula Vista General Development Plan Environmental Impact Report Joint Powers Agreement Preserve Owner/Manager Specific Plan Sectional Planning Area County of San Diego Subregional Plan 2018-11-27 Agenda Packet Page 251 Otay Ranch ATTACHMENT 2 Status of Phase 1 RMP Policies and Standards (2017) 2018-11-27 Agenda Packet Page 252 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 253 Phase 2 Resource Management Plan Update Otay Ranch Page 2-1 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status OBJECTIVE 1 - IDENTIFICATION OF SENSITIVE RESOURCES 1.1 Use existing resource data to identify key resource areas. Completed – Key resource areas are shown on Figure 9 of GDP/SRP EIR (Ogden 1992a). 1.2 Complete biological studies currently in progress. Completed – The following studies were completed concurrent with SPA One and included as appendices to the 1996 Phase 2 RMP: 1. Baldwin Otay Ranch Wildlife Corridor Study (Ogden 1992b) 2. Otay Ranch Raptor Management Study (Ogden 1992c)1 3. 1995 Contribution to Ongoing California Gnatcatcher and Cactus Wren Studies (Dudek 1995a)2 4. Vernal Pool Management Plan for Otay Ranch (Dudek 1995b) Standard: The following studies shall be completed by the landowner prior to or concurrent with the first SPA in the Phase 2 RMP: 1. Wildlife Movement/Corridor Study 2. Raptor Foraging/Habitat Study 3. Habitat and Population Studies on California Gnatcatcher and Cactus Wren (ongoing studies over 35-year period) 4. Vernal Pool Study 1.3A In conjunction with the first SPA in the Otay Valley Parcel, complete cultural resource studies to assess cultural resources throughout the Otay Valley Parcel. Completed – The cultural resources study for the Otay Valley Parcel was completed concurrent with SPA One and is included as an appendix to the 1996 Phase 2 RMP entitled Otay Valley Parcel Cultural Resources Systematic Survey (Brian Smith & Associates 1995). 1 As described in the Biota Monitoring Program, a Long-term Raptor Management Program will be implemented after the first final map is approved and a funding source is established for development within the unincorporated County. The Long-term Raptor Management Program will be consistent with the Otay Ranch Raptor Management Study. 2 As described in the Biota Monitoring Program, the Preserve Steward Biologist conducts ongoing monitoring of California gnatcatcher and cactus wren, and reports this information within annual reports for the POM. The POM also has ongoing coordination meetings to discuss management and monitoring of these species with regional entities such as San Diego Management and Monitoring Program, and th e Wildlife Agencies. 2018-11-27 Agenda Packet Page 254 Phase 2 Resource Management Plan Update Otay Ranch Page 2-2 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 1.3B In conjunction with the first SPA in the Proctor Valley Parcel, complete cultural resource studies to assess cultural resources throughout the Proctor Valley Parcel. To be addressed at the SPA-level – The County amended the SRP and RMP so that ownerships within the Proctor Valley Parcels are only required to prepare SPA-specific cultural resource studies through General Plan Amendment 00-01 Minute Order #9, approved by County Board of Supervisors on March 22, 2000. 1.3C In conjunction with the first SPA in the San Ysidro Mountains Parcel, complete cultural resource studies to assess cultural resources throughout the San Ysidro Mountains Parcel. To be addressed at the SPA-level – The County amended the SRP and RMP so that ownerships within the San Ysidro Parcels are only required to prepare SPA-specific cultural resource studies through General Plan Amendment 00-01 Minute Order #9, approved by County Board of Supervisors on March 22, 2000. Standard: In conjunction with the Phase 2 RMP, a systematic survey for cultural resources shall be completed for all portions of Otay Ranch. 1.4 Recover any significant fossils unearthed during grading activities for subsequent scientific study and/or display. To be addressed at the SPA-level. Mitigation for potential impacts to paleontological resources will be determined at the project level and is subject to discretionary review and approval. Standard: Prior to issuance of a grading permit within areas identified on Figure 9 of [the Phase 1 RMP] as paleontologically sensitive (i.e., the Otay, Sweetwater, and San Diego formations), a letter shall be filed with the lead agency indicating that a qualified paleontologist has been retained to carry out an appropriate mitigation program. 1.5 Identify and map floodplains within Otay Ranch. Completed – Floodplains within Otay Ranch are shown on Figure 1 of the Phase 1 RMP. Standard: Floodplain mapping shall include FEMA and County-mapped floodplains. 1.6 Identify major landforms within Otay Ranch. Completed – Major landforms within Otay Ranch are identified in Section 5.5 of the Phase 1 RMP. Standard: The Otay Ranch GDP/Subregional Plan shall contain standards for the protection of major landforms and scenic resources. Completed – Standards related to the protection of major landforms and visual resources are addressed in Chapter 10, Sections C and D of the GDP/SRP. 2018-11-27 Agenda Packet Page 255 Phase 2 Resource Management Plan Update Otay Ranch Page 2-3 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 1.7 Identify and map agricultural lands within Otay Ranch on a SPA-by-SPA basis. To be addressed at the SPA-level. Future development proposals are subject to discretionary review and approval and are required to complete site-specific analysis for impacts to agricultural resources in accordance with California Environmental Quality Act. OBJECTIVE 2 - PRESERVATION OF SENSITIVE RESOURCES 2.1 Include large blocks of key biological resource areas within the Preserve. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to include large blocks of key biological resource areas. 2.2 Preserve coastal sage scrub habitat (including Diegan coastal sage scrub, disturbed coastal sage scrub, maritime succulent scrub, coastal sage scrub/non-native grassland, and coastal sage scrub/chaparral). Habitat values can be measured in terms of number of acres, biodiversity, habitat maturity and presence of sensitive species. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. An amendment to the GDP/SRP was processed by the County and City in 2007 eliminating the coastal sage scrub restoration requirement, and thus reducing the preservation standard to 70% for coastal sage scrub. For the County, the amendment was processed through General Plan Amendment 06-012, and approved by the County Board of Supervisors in 2007 (County of San Diego 2007). For the City, the amendment was included in Appendix 3b of the Otay Ranch Villages Two, Three, and a Portion of Four SPA Plan Final Second Tier EIR (City of Chula Vista 2006), and certified by City Council in 2007. Standards: 1. Preservation and restoration activities shall be consistent with the guidelines of any applicable regional open space/resource protection program and shall result in equal or greater overall habitat values than occur under existing conditions. 2. A minimum of 85% of the total acreage of coastal sage scrub habitat onsite shall be preserved or restored. 3. The 85% standard may be achieved through a combination of preservation (a minimum of 70% of existing habitat) with the remainder through restoration of disturbed and/or non-native habitats. 2.3 Preserve native grasslands (valley needlegrass grassland). Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standards: 1. A minimum of 80% of the total acreage of native 2018-11-27 Agenda Packet Page 256 Phase 2 Resource Management Plan Update Otay Ranch Page 2-4 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status grassland habitat onsite shall be preserved or restored. 2. The 80% standard may be achieved through a combination of preservation (a minimum of 25% of existing habitat) with the remainder through restoration of disturbed and/or non-native habitats. 3. Restoration must result in habitat for threatened and endangered species that is of equal or greater value than that of the habitat disturbed. 2.4 Preserve the following habitat types: southern interior cypress forest, coast live oak woodland, oak riparian forest, riparian woodland, and sycamore alluvial scrub. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standard: 100% of the acreage of southern interior cypress forest, coast live oak woodland, oak riparian forest, riparian woodland, and sycamore alluvial woodland (as mapped by MBA/RECON 1989) shall be preserved. Where it is infeasible to include these areas within the Preserve, include in non-Preserve open space. 2.5 Maintain large, viable populations of the California gnatcatcher and cactus wren within the Preserve. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standards: 1. Include within the Preserve sufficient habitat to maintain at least 52% of existing documented pairs/individuals of the California gnatcatcher. 2. Include within the Preserve sufficient habitat to achieve no loss of viable cactus wren populations. 2.6 Preserve onsite State and Federally listed rare, threatened, and endangered species (see Policy 2.9 for vernal pool species). Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standards: 2018-11-27 Agenda Packet Page 257 Phase 2 Resource Management Plan Update Otay Ranch Page 2-5 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 1. Include within the Preserve 95% of San Diego thorn - mint (Acanthomintha ilicifolia) known to be present on the Ranch, i.e., the larger population including several thousand plants located in the southwestern portion of the Proctor Valley parcel. Implement required EIR mitigation measures. 2. Include within the Preserve 100% of Dunn's mariposa lily (Calochortus dunnii) known to be present on the Ranch, i.e., one small population at the upper end of Little Cedar Canyon and one small population on a peak in the northwest corner of the Jamul Mountains. 3. Include within the Preserve 100% of the Mexican flannelbush (Fremontodendron mexicanum) known to be present on the Ranch, i.e., three individuals in upper Cedar Canyon. 4. Include within the Preserve 70% of the Otay tarplant (Hemizonia conjugens) known to be present on the Ranch, i.e., several thousand plants in Salt Creek, Wolf Canyon, and the detached, inverted "L" parcel. Although this standard is below that for other State and Federally-listed plant species, the large number of individuals and widespread occurrence of Otay tarplant on-site indicate that it is less vulnerable than other State and Federally-listed species. The remaining populations on-site are extensive enough to assure the continued survival of this species. 5. Include within the Preserve 100% of the willowy monardella (Monardella linoides ssp. viminea) known to be present on the Ranch, i.e., several hundred plants in the bottom of a deep drainage on the west side of the San Ysidro Mountain parcel. 2018-11-27 Agenda Packet Page 258 Phase 2 Resource Management Plan Update Otay Ranch Page 2-6 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 6. Include within the Preserve 100% of the slender-pod caulanthus (Caulanthus stenocarpus) known from the Ranch, i.e., the small population near the peak in the northwestern corner of the Jamul Mountains. 2.7 Preserve on-site populations of plant species recognized as sensitive by the California Native Plant Society (Smith and Berg 1988). Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standards: 1. Include within the Preserve a minimum of 75% of Otay Ranch populations of plant species recognized as List 1B or List 2 by the California Native Plant Society (Berg and Smith 1988) (excluding those listed above in Policy 2.6): California adolphia (Adolphia californica), San Diego bur-sage (Ambrosia chenopodiifolia), Otay manzanita (Arctostaphylos otayensis), San Diego sagewort (Artemisia palmeri), Campo clarkia (Clarkia delicata), summer-holly (Comarostapylis diversifolia ssp. diversifolia), Orcutt's bird's-beak (Cordythalthus orcuttianus), Tecate cypress (Cupressus forbesi), San Diego barrel cactus (Ferocactus viridescens), Palmer's grappling-hook (Harpagonella palmeri), San Diego marsh-elder (Iva hayesiana), Gander's pitcher-sage (Lepechinia ganderi), snake cholla (Opuntia parryi var. serpentina), narrow-leaved nightshade (Solanum tenuilobatum), San Diego County needlegrass (Achnatherum diegoensis), and San Diego County viguiera (Viguiera laciniata). 2. Include within the Preserve 54% of known points of occurrence for San Diego golden-star (Muilla clevelandii). 2018-11-27 Agenda Packet Page 259 Phase 2 Resource Management Plan Update Otay Ranch Page 2-7 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 3. Include within the Preserve a minimum of 50% of the Otay Ranch populations of plant species recognized as List 3 or List 4 by the California Native Plant Society (Berg and Smith 1988): dense reed grass (Calamogrostis densa), San Miguel savory (Calamintha chandleri), southern mountain misery (Chamaebatia australis), Fallbrook spine-flower (Chorizanthe procumbens var. albiflora), western dichondra (Dichondra occidentalis), variegated dudleya (Dudleya variegata), spiny rush (Juncus acutus var. sphaerocarpus), dwarf pepper-grass (Lepidium latipes), California adder's-tongue fern (Ophioglossum lusitanicum ssp. californicum), Greene's ground-cherry (Physalis greenei), Engelmann oak (Quercus engelmannii), Coulter's matilija poppy (Romneya coulteri), and ashy spike-moss (Selaginella cinerascens). 4. Include within the Preserve a minimum of 46% of the Munz's sage (Salvia munzii) known from the Ranch. Although recognized as a List 2 species by CNPS, Munz's sage is extremely common and widespread on the Proctor Valley parcel. Hence, preservation of 46% of this population will assure the continued survival of the species on the Ranch. 2.8 Preserve on-site populations of plant and wildlife species recognized as Category 2 Candidates for listing by USFWS. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standard: Include within the Preserve a minimum of 75% of Otay Ranch populations of plant and wildlife species recognized as Category 2 candidates by USFWS in a Preserve configuration which will ensure 2018-11-27 Agenda Packet Page 260 Phase 2 Resource Management Plan Update Otay Ranch Page 2-8 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status their conservation in perpetuity. This standard may be re-evaluated if future studies demonstrate a greater or lesser need for conservation of any resources. 2.9 Preservation of a minimum of 95% of the vernal pool habitat on the Ranch supporting vernal pool indicator species (as defined in the vernal pool report). Necessary State and/or Federal permits would be obtained in accordance with Section 404 of the Clean Water Act, the U.S. Fish and Wildlife Service, and the California Department of Fish and Game implementing Section 1600 of the California Fish and Game Code. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Standards: 1. In conjunction with the first SPA in the Phase 2 RMP, develop a Vernal Pool Preservation and Management Plan. 2. Establish a vernal pool preserve of no less than 330 acres on Otay Mesa south of the Otay River to include all vernal pools identified by the California Department of Fish and Game (Bauder 1986) as J23, J24, J25, J30 and identified sensitive portions of J29 (see Figure 23). 3. Preserve a minimum of 95% of the Otay Ranch distribution of the State and Federally-listed San Diego button-celery (Eryngium aristulatum var. parishii) and 100% of the State-listed Otay Mesa mint (Pogogyne nudiuscula), in locations identified in the vernal pool report (Dudek 1992). 4. Assure the continued survival of little mousetail (Myosurus minimus var. apus) and San Diego navarettia (Navarettia fossalis) on Otay Ranch See responses below. 1. Completed – The Vernal Pool Preservation and Management Plan was completed concurrent with SPA One and included as an appendix to the 1996 Phase 2 RMP entitled Vernal Pool Management Plan for Otay Ranch (Dudek 1995b). 2. Completed – A conceptual vernal pool preserve boundary preserving pools J23, J24, J25, J30, and J29 (partial) was identified in the Phase 1 RMP. A refined vernal pool preserve boundary is identified in this document, and will ultimately be comprised of public and privately conserved lands. 3. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. 4. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. Enhancement, restoration, and management efforts may be implemented at the SPA- 2018-11-27 Agenda Packet Page 261 Phase 2 Resource Management Plan Update Otay Ranch Page 2-9 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status through preservation of present known localities for these species on the Ranch plus a combination of enhancement, restoration, and management efforts. 5. Develop a vernal pool restoration plan to achieve the following: a. restore the biota of individual, badly degraded vernal pools; b. increase diversity and frequency of native biota in all disturbed vernal pools; c. preserve and enhance vernal pools on K -6 where little mousetail occurs; d. reduce the effect of alien plants; e. enhance the populations of sensitive species; f. stabilize soils on mounds and in watershed areas; g. provide research and educational opportunities. level in conjunction with mitigation and/or in conjunction with Preserve management following conveyance to the POM. 5. A vernal pool restoration plan may be implemented at the SPA-level in conjunction with mitigation and/or in conjunction with Preserve management following conveyance to the POM. 2.10 Preserve and enhance wetlands. Preservation standard to be addressed at the SPA-level. Future development proposals are required to demonstrate no-net-loss of wetlands. Wetlands enhancement may be implemented at the SPA-level in conjunction with mitigation and/or in conjunction with Preserve management following conveyance to the POM. Standards: 1. No net loss of in-kind wetland quality or quantity in accordance with the standards of the U.S. Army Corps of Engineers (COE), implementing Section 404 of the Clean Water Act, the U.S. Fish and Wildlife Service, and the California Department of Fish and Game implementing Section 1600 of the California Fish and Game Code. 2. If feasible, opportunities and plans for mitigation banks shall be developed in conjunction with preparation of wetlands enhancement plans for Otay River Valley and the vernal pool preservation plan in conjunction with the Phase 2 RMP and the first SPA. All revenue generated by wetlands mitigation banks shall be used to fund Preserve activities. 2018-11-27 Agenda Packet Page 262 Phase 2 Resource Management Plan Update Otay Ranch Page 2-10 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 2.11 Preserve habitat for raptor nesting, roosting, and foraging. Completed – Preserve boundaries were established in Section 5.1 of the Phase 1 RMP, and designed to achieve this standard. 2.12 Preserve significant cultural resources. To be addressed at the SPA-level – The cultural resources study for the Otay Valley Parcel was completed concurrent with SPA One. The County amended the SRP and RMP so that ownerships within the San Ysidro and Proctor Valley Parcels are only required to prepare SPA-specific cultural resource studies through General Plan Amendment 00-01 Minute Order #9, approved by County Board of Supervisors on March 22, 2000. Standard: Implement the recommended program for a systematic parcel-by-parcel cultural resources investigations to be completed in conjunction with the first SPA within each of the three larger parcels. 2.13 Design drainage improvements within identified floodplains to provide for adequate flood protection and sensitivity to biological resources. To be addressed at the SPA-level. Future development and infrastructure projects adjacent to the Preserve are required to demonstrate conformance with the adjacency standards, which include set-backs and other requirements for development within the Preserve edge. Future infrastructure projects inside the Preserve are required to comply with the siting and design requirements of their respective MSCP. Standards: 1. Flood control plans shall be in conformance with RMP policies protecting sensitive resources and with State and Federal wetland regulations. 2. Concrete or rip-rap flood control channels shall be prohibited within the Preserve. Drop structures and armour lock structures shall be avoided. Minimal structural improvements may be permitted for road and utility crossings and for the protection of the public health, safety and general welfare. 3. Drainage improvements shall not result in an increase in erosion or sedimentation that would adversely affect Preserve resources. 4. Flood control plans should address potential erosion hazards in Salt Creek and Wolf canyons. 2018-11-27 Agenda Packet Page 263 Phase 2 Resource Management Plan Update Otay Ranch Page 2-11 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 2.14 Provide opportunities for demonstration agricultural activities within the Preserve. To be addressed by the Otay Valley Regional Park Concept Plan. Recreational opportunities within the active use areas, including opportunities for demonstration agriculture, will be addressed in the Otay Valley Regional Park Concept Plan. Standard: A site which supports prime or statewide important soils should be located near proposed composting facilities and Bird Ranch. A plan for the size and operation of the demonstration agricultural activities will be subject to review and approval of the Preserve Owner/Manager and/or the Otay Valley Regional Park management and shall be submitted concurrent with the conveyance for this area or prior to adoption of the last SPA on the Otay Valley Parcel, whichever occurs first. In addition to the demonstration agricultural site, sites should be made available for smaller "community gardens" adjacent to or within individual villages. Some community gardens may be located within open space areas being maintained by an open space maintenance district, with specific design and maintenance issues to be addressed at the SPA Plan review. OBJECTIVE 3 - ENHANCE & RESTORE SENSITIVE RESOURCES 3.1 Identify areas within the Preserve that possess high potential for habitat restoration. Completed – Conceptual locations of potential restoration areas are shown on Figures 20-23 of the Phase 1 RMP. Standard: Conceptual locations of potential restoration areas are illustrated on [Figures 20-23 of the Phase 1 RMP]. 3.2 Restoration programs intended to mitigate for disturbance of sensitive habitats associated with development of Otay Ranch shall be funded and designed by the landowner in coordination with the Preserve Owner/Manager and the appropriate jurisdiction. Implementation of such restoration programs shall be by an appropriate entity acceptable to the Preserve Owner/Manager and the appropriate jurisdiction. To be addressed at the SPA-level. Mitigation for impacts to sensitive habitats will be determined at the project level and is subject to discretionary review. 2018-11-27 Agenda Packet Page 264 Phase 2 Resource Management Plan Update Otay Ranch Page 2-12 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 3.3 Restoration programs may be implemented for purposes other than compensation of impacts associated with development of Otay Ranch. Such programs shall be funded, designed and implemented by the Preserve Owner/Manager or other entity acceptable to the Preserve Owner/Manager. On-going – It is the on-going responsibility of the POM to implement restoration programs in the Preserve not associated with compensatory mitigation consistent with the intent of the GDP/SRP. The POM may obtain grant funding for the implementation of restoration programs within the Preserve. 3.4 Develop a restoration program for coastal sage scrub (and maritime succulent scrub) habitat. (See the Appendix for the conceptual restoration plan). Coastal sage scrub restoration activities shall commence prior to or concurrent with approval of the first SPA within Otay Ranch and shall have achieved success, based on performance standards included in Chapter 4 prior to or concurrent with approval for any development resulting in significant impacts to coastal sage scrub habitat occupied by California gnatcatchers on the Proctor Valley or San Ysidro Mountains parcels. No longer applicable and addressed at SPA-level – A restoration program for coastal sage scrub included as Appendix 1 to the 1996 Phase 2 RMP entitled Otay Ranch Coastal Sage Scrub and Maritime Succulent Scrub Habitat Replacement Master Plan (Dudek 1995c). However, the coastal sage scrub restoration requirement was subsequently eliminated based on agreements with the Wildlife Agencies, and additional conservation measures provided by the MSCP. For the County, the amendment was processed through General Plan Amendment 06-012, and approved by the County Board of Supervisors in 2007 (County of San Diego 2007). For the City, the amendment was included in Appendix 3b of the Otay Ranch Villages Two, Three, and a Portion of Four SPA Plan Final Second Tier EIR (City of Chula Vista 2006), and certified by City Council in 2007. The restoration requirement for maritime succulent scrub is in place and implemented at the SPA-level. Standards: 1. A conceptual restoration plan for coastal sage scrub habitat is included in the Phase 1 RMP. (The Appendix to of this document contains this plan). 2. Restoration programs shall be implemented on a SPA- by-SPA basis in accordance with Phase 2 RMP. 3. The success of a specific coastal sage scrub restoration effort will be measured by the ability of the restored habitat to support native wildlife species. An increase in bird species richness will be used as an indicator of "habitat suitability." 2018-11-27 Agenda Packet Page 265 Phase 2 Resource Management Plan Update Otay Ranch Page 2-13 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 3.5 Develop a restoration program for riparian habitats. (See Chapter 4 for description of conceptual restoration plan.) See responses below. 1. Completed – A riparian restoration program was included as an appendix to the Phase 1 RMP entitled Conceptual Riparian Habitat Revegetation Plan. 2. To be addressed at the SPA-level. Restoration projects will be implemented on a SPA-by-SPA basis, and are subject to discretionary review and approval. 3. To be addressed at the SPA-level. Success criteria will be determined on a project-by-project basis. Standards: 1. A conceptual restoration plan for riparian habitats shall be included in the Phase 1 RMP. (The Appendix to this document contains this plan). 2. Restoration programs shall be implemented on a SPA- by-SPA basis in accordance with Phase 2 RMP. 3. The success of a specific riparian restoration effort will be measured by the ability of the restored habitat to support native wildlife species. An increase in bird species richness will be used as an indicator of "habitat suitability." 3.6 Develop a restoration program for native grassland habitats. (See Chapter 4 for description of conceptual restoration plan.) See responses below. 1. Completed – A native grassland restoration program was included as an appendix to the Phase 1 RMP entitled Conceptual native Grassland Revegetation Plan. 2. To be addressed at the SPA-level. Restoration projects will be implemented on a SPA-by-SPA basis, and are subject to discretionary review and approval. Standards: 1. A conceptual restoration plan for native grassland habitats shall be included in the Phase 1 RMP. (The Appendix to this document contains this plan). 2. Restoration programs shall be implemented on a SPA- by-SPA basis in accordance with Phase 2 RMP. 3.7 Develop a vernal pool restoration program. Completed – A vernal pool restoration program was included as an appendix to the 1996 Phase 2 RMP entitled Vernal Pool Management Plan for Otay Ranch. Standard: Vernal pool restoration standards and guidelines are described in Policy 2.9 3.8 In coordination with USFWS and CDFG, the Preserve Owner/Manager shall develop a program for creation or enhancement of habitat for sensitive species that were formerly, or are occasionally present (e.g., as least Bell's vireo) on Otay Ranch. See responses below. 1. Completed – A program for the creation and enhancement of sensitive species such as least Bell’s vireo is included in the Otay Valley Regional Park Habitat Restoration Plan & Non-native Plant Removal Guidelines (County of San Diego 2006). Standards: 2018-11-27 Agenda Packet Page 266 Phase 2 Resource Management Plan Update Otay Ranch Page 2-14 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 1. Prepare a conceptual riparian revegetation plan to create habitat in the Otay River Valley of acceptable quality for breeding and nesting of least Bell's vireo (Vireo bellii pusillus). 2. Investigate the possibility of habitat enhancement and re-introduction of quino checkerspot (Euphydryas editha quino) in the vernal pool preserve during in conjunction with the Phase 2 RMP. 3. Continue to identify potential restoration opportunities for additional threatened and endangered species as they are listed by the resource agencies. 2. On-going – Habitat restoration and enhancement opportunities will be identified and implemented by the POM. Habitat enhancement for Quino checkerspot butterfly is currently being implemented in the portion of the vernal pool preserve under POM management and other Preserve lands. A more detailed discussion of these habitat enhancement efforts is included in the FY 2016-17 Annual Work Plan for the Otay Ranch Conveyed Lands Managed by the Otay Ranch POM (RECON 2016). 3. On-going – It is the on-going responsibility of the POM and PSB to identify potential restoration opportunities for additional threatened and endangered species as they become listed. OBJECTIVE 4 - WILDLIFE CORRIDORS 4.1 Design the Preserve to provide adequate habitat linkages and wildlife corridors to accommodate gene flow and wildlife movement. Completed – The Preserve configuration accounted for important wildlife corridors identified in the Wildlife Corridor Study. The Preserve configuration also provides linkages with off-site open space, such as the Otay Mountain Wilderness and San Diego National Wildlife Refuge, and is contiguous with hard-line preserve areas identified in the MSCP Subarea Plans. Standards: 1. Incorporate important wildlife corridors, as identified by the Wildlife Corridor Study (Ogden, 1992), into the Preserve (see Figure 13 [of the Phase 1 RMP]). 2. Integrate resource components of the Preserve with the Otay Valley Regional Park in a manner consistent with the goal and objectives of the Resource Management Plan. 3. Optimize linkages off-site with private open space and other regional and subregional habitat plans. 2018-11-27 Agenda Packet Page 267 Phase 2 Resource Management Plan Update Otay Ranch Page 2-15 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 4.2 Conform to standards approved by the Scientific Review Panel (SRP) for the Natural Communities Conservation Plan (NCCP) as they pertain to coastal sage scrub regarding biological resources data collection requirements. No longer applicable – The Preserve was incorporated into and conforms to the standards of the County and City’s MSCP Subarea Plans. Standard: Assure that biological data for Otay Ranch are acceptable to the Scientific Review (SRP) panel so that, if feasible, the Preserve can be incorporated into a larger South County NCCP. OBJECTIVE 5- PRESERVE MANAGEMENT & MAINTENANCE 5.1 Select a Preserve Owner/Manager who is acceptable to the City of Chula Vista and the County of San Diego. Advice of the U.S. Fish and Wildlife Service and the California Department of Fish and Game will be sought prior to final selection of a Preserve Owner/Manager. Completed – The County and City are designated as the POM through the JPA. The County and City meet the standards presented in Policy 5.1 of the GDP/SRP. The JPA is subject to review every five years, and is valid until March 6, 2026. The JPA may be extended an additional 30 years with written consent from the County and City. Should the County and City choose to terminate the JPA and pursue an alternative entity to fulfill the role of POM, they would be subject to the standards set forth in Policy 5.1. Standards: 1. The Preserve Owner/Manager shall be selected prior to or concurrent with approval of the first SPA in the Phase 2 RMP. 2. The Preserve Owner/Manager may be a local government, a public resource agency, a non-profit organization, or any other entity or entities acceptable to the landowner, City of Chula Vista, and County of San Diego. 3. The Preserve Owner/Manager may be an entity or entities working in a cooperative arrangement to fulfill the duties of the Owner/Manager. 4. The selection process may be initiated by a Request for Qualifications (RFQ) or similar announcement, followed by a recruitment/interview process. 2018-11-27 Agenda Packet Page 268 Phase 2 Resource Management Plan Update Otay Ranch Page 2-16 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 5. Review and selection of the Preserve Manager shall be conducted jointly by the landowner, the City of Chula Vista, and the County of San Diego. 6. It is desirable for candidates for Preserve Owner/Manager to have the following experience and capabilities: a. Demonstrated experience managing biological resources including endangered species. b. At least 5 years of previous experience with law enforcement and access control. c. Demonstrated ability to interact effectively with local and regional conservation agencies, recreational agencies, and the local community. d. Prior experience in coordination with individuals involved in ongoing scientific research. e. Demonstrated ability to coordinate continued monitoring efforts of the Preserve's biota, as shown by staff experience and existing programs. f. Cultural resource management experience. g. Demonstrated previous experience in long-term management of large (greater than 10,000 acres) open space areas with numerous sensitive species. h. Demonstrated ability to efficiently manage personnel and finances over a long (10+ years) term. i. Ability and willingness to cooperate with local and regional agencies and direct experience in working with governing boards and/or advisory committees representing such agencies. 2018-11-27 Agenda Packet Page 269 Phase 2 Resource Management Plan Update Otay Ranch Page 2-17 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 5.2 Define the responsibilities of the Preserve Owner/Manager in the Phase 1 RMP (see Chapter 4). Completed – The responsibilities of the POM are defined in Chapter 1 of the Phase 1 RMP and include the responsibilities outlined in Policy 5.2 of the GDP/SRP. It is the on-going responsibility of the POM to implement these responsibilities consistent with the intent of the GDP/SRP. Standard: Responsibilities of the Preserve Owner/Manager shall include, but not be limited to, the following: 1. Maintenance of existing high quality resources through the prevention of further disturbance, including controlling access to the Preserve, prohibiting off-road traffic, enforcing "no trespassing" rules, and curtailing activities that degrade resources, such as grazing, shooting, and illegal dumping. 2. Monitoring of resources to identify changes in the quality and quantity of sensitive resources and habitats. 3. Implementation and monitoring of restoration activities, as appropriate (it is understood that some restoration activities may be carried out by individual Otay Ranch developers in coordination with the Preserve Owner/Manager). 4. Implementation of maintenance activities including removal of trash, litter, and other debris, maintenance of trail systems, removal and control of exotic plant species (weeds), and control of cowbirds through trapping efforts. 5. Development of educational facilities and interpretive programs. 6. Implementation and/or accommodation of research programs. 7. Coordination with local jurisdictions, resource agencies, and adjacent ownerships. 2018-11-27 Agenda Packet Page 270 Phase 2 Resource Management Plan Update Otay Ranch Page 2-18 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 8. Coordination with the Otay Valley Regional Park JEPA, or subsequent park planning entity, regarding issues associated with Otay Valley Regional Park. 9. Enforcement activities. 10. Review of RMP Amendments, Preserve boundary adjustments, infrastructure plans, plans for active recreational uses with the Preserve, plans for land uses adjacent to the Preserve and other activities/studies as identified in the RMP. 5.3 Develop and implement a strategy that facilitates effective, long-term management of the Management Preserve consistent with the goal of the RMP. Completed – The strategies outlined in the Phase 2 RMP Update are intended to provide a strategy for the long-term management of the Preserve consistent with the Phase 1 RMP. It is the on-going responsibility of the POM to implement these management activities to ensure no reduction in habitat values consistent with the intent of the GDP/SRP. Standard: Management activities shall be undertaken to ensure no reduction in habitat values and no adverse impacts to biological resources included within the Management Preserve. 5.4 Establish a comprehensive monitoring program for the biota of the Preserve in conjunction with the Phase 2 RMP. Completed – A comprehensive Biota Monitoring Program is included in this document. The Biota Monitoring Program includes a program designed to monitor sensitive plants, wildlife, and vegetation communities. Annual monitoring tasks are prioritized in an annual work plan prepared by the PSB based on the monitoring schedule contained in the Biota Monitoring Program. Standard: Develop and implement an annual monitoring program designed to identify changes in quality and quantity of onsite biological resources, including sensitive wildlife species, sensitive plant species, and sensitive habitat types. 5.5 Monitoring programs associated with management of the Preserve shall conform to and carry out programs required by CEQA (PRC 21081.6) but shall not replace other monitoring programs required in conjunction with site-specific environmental review of individual development within Otay Ranch. Completed – Monitoring programs associated with the Biota Monitoring Program shall commence following conveyance of Preserve lands to the POM. The Biota Monitoring Program shall not replace monitoring programs required in conjunction with environmental review for individual development projects within Otay Ranch. 2018-11-27 Agenda Packet Page 271 Phase 2 Resource Management Plan Update Otay Ranch Page 2-19 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 5.6 Develop and obtain City and County approval (in coordination with the Owner/Manager) of a plan for the orderly conveyance of dedicated parcels of land to the Preserve. No longer applicable – A conveyance plan was included in the 1996 Phase 2 RMP. However, due to changes in ownership, the original conveyance plan was no longer consider feasible and the requirement was subsequently eliminated from the GDP/SRP and Phase 1 RMP. For the County, the amendment was processed through General Plan Amendment 06-012, and approved by the County Board of Supervisors in 2007 (County of San Diego 2007). For the City, the amendment was included in Appendix 3b of the Otay Ranch Villages Two, Three, and a Portion of Four Sectional Planning Area (SPA) Plan Final Second Tier Environmental Impact Report (EIR) (City of Chula Vista 2006), and certified by City Council in 2007. Standard: The conveyance plan shall be developed in accordance with the conveyance criteria outlined below. A conveyance schedule shall be prepared in conjunction with the Phase 2 RMP. 5.7 Any change in the order of conveyance shall be considered only during the review and approval process for a SPA, and shall not require a General Plan Amendment. The jurisdiction processing the SPA shall advise and consult with the other agency before approval of a change in order of conveyance. However, any change in the order of conveyance is subject to joint approval by the City of Chula Vista and County of San Diego, if the land under consideration for conveyance is in a different jurisdiction than the SPA under consideration. 5.8 Changes in land ownership resulting from the sale or transfer of ownership of any SPA shall not affect the conveyance of land to the Preserve. On-going – As discussed above, the conveyance plan required by Policy 5.7 was eliminated by subsequent general plan amendments in both the County and City. However, all development projects within Otay Ranch are subject to the 1.188-acre conveyance requirement, with the exception of the development of common uses or the subdivision of Restricted Development Areas. Standard: The development of any village or SPA, even if conveyed to a third party, shall be accompanied by the conveyance of the appropriate parcel to the Preserve. To the extent that conveyance of a specific parcel of land is required, it shall be a condition of approval for the first Tentative Map of that SPA. 5.9 Preserve lands become the property of the Owner/Manager and are not available for development. On-going – Title to lands conveyed into the Preserve are jointly held by the County and City per the Joint Powers Agreement. 2018-11-27 Agenda Packet Page 272 Phase 2 Resource Management Plan Update Otay Ranch Page 2-20 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 5.10 Include a reversionary clause in the Management Preserve ownership agreement that will prevent resale or use of the Management Preserve for any development or activities not permitted by the adopted RMP. On-going – Transfer of ownership and/or Preserve management responsibilities would be required to comply with the conditions of the Joint Powers Agreement, which prevents the resale of conveyed lands under POM management (County of San Diego & City of Chula Vista 1996). Standard: In the event that the selected Preserve Manager/Owner is, for any reason, unable or unwilling to manage the Preserve in a manner consistent with the goal and policies of the RMP, ownership of the Preserve shall be transferred to the County of San Diego, City of Chula Vista, or other receiving entity acceptable to the City, County, and landowner. Such a receiving entity shall transfer ownership to a qualified owner/manager reviewed by the resource agencies (USFWS, CDFG) and acceptable to the County of San Diego and the City of Chula Vista. Said transfer should be implemented as soon as possible, and not later than six months after exercising the reversionary clause, unless extraordinary circumstances require, as determined by the County Board of Supervisors and the City of Chula Vista City Council prior to expiration of the six months additional time. 5.11 Develop a work program that establishes the timing and responsibilities for the provision of a nature interpretive center within the Preserve. Completed – The Otay Valley Regional Park Concept Plan includes provisions for the nature interpretive center. Standard: As part of the Phase 2 RMP, identify the potential locations of a nature interpretive center within the Preserve. Completed – A conceptual location for the nature interpretive center is shown on Figure 6 of this document. The final nature interpretive center site will be determined through Otay Valley Regional Park planning processes. 5.12 Identify the costs related to RMP planning, design, research, construction, and management activities and develop a funding strategy. Completed – CFD 97-2 currently provides funding for management and monitoring of Preserve conveyances 2018-11-27 Agenda Packet Page 273 Phase 2 Resource Management Plan Update Otay Ranch Page 2-21 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status Standard: As part of the Phase 2 RMP, a cost estimate for RMP implementation shall be prepared, funding alternatives shall be identified and evaluated, and the implementation plan shall be prepared. associated with the City village developments. Prior to the approval of the first Final Map within the County’s jurisdiction of Otay Ranch, a CFD or similar funding mechanism will be established to fund management and monitoring of Preserve conveyances associated with the County village developments. The annual operating budget is determined in an annual work plan approved by the POM and then incorporated into the CFD budget. 5.13 Clarify the relationship between the Otay Ranch Resource Management Plan and the Otay Valley Regional Park JEPA. Completed – Preserve lands contained within the Otay Valley Regional Park would be conveyed to the POM for biological monitoring, with the exception of active use areas and recreational facilities such as the nature interpretive center and demonstration agriculture site. Management and funding of active use areas, trails, and recreational facilities are the responsibility of the City, County, and City of San Diego through the JEPA adopted in 1990. Standard: The potential for the Otay Valley Regional Park JEPA to assume ownership and management responsibility for the Otay River Valley and adjacent areas on the Otay Valley parcel, or portions thereof (particularly active recreation areas), shall be evaluated and funding sources identified in the Phase 2 RMP. OBJECTIVE 6 - PERMITTED USES 6.1 Provide resource-related educational and interpretive programs to increase public sensitivity to, and awareness and appreciation of resources within the Preserve, consistent with the goal of the RMP. On-going – Public access is currently restricted from the Preserve. Resource-related educational and interpretive programs may be provided at the discretion of the POM. Management and funding of the nature interpretive center is the responsibility of the City, County, and City of San Diego through the Joint Exercise of Powers Agreement adopted in 1990. Standards: 1. Under the direction of the Preserve Owner/Manager, an interpretive center(s) shall be constructed to display and interpret the biological, paleontological, and cultural resources present on Otay Ranch. 2. Construct a native plant nursery and/or botanic garden to be used for public education of native plants and plant communities and for restoration activities. 3. The sale of educational materials, books, and plants shall be allowed. 2018-11-27 Agenda Packet Page 274 Phase 2 Resource Management Plan Update Otay Ranch Page 2-22 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 6.2 Active recreational use acreage within the Preserve shall not be greater than 400 acres and shall be consistent with the resource protection and enhancement goal, objectives and policies of the RMP. On-going – The City’s 2005 General Plan Amendment reduced the acreage of the active recreation areas to 209 acres. Siting and design of active recreational use are subject to review by the POM and shall be consistent with the objectives contained in the RMP and Otay Valley Regional Park Concept Plan. Standard: Siting and design of active recreational uses shall be subject to review and comment by the Preserve Owner/Manager in consultation with the JEPA of the Otay Valley Regional Park and shall be consistent with plans for the Otay Valley Regional Park when adopted. 6.3 Provide a system of trails through the Preserve that is compatible with resource protection. This is considered to be a passive use and not a part of the 400-acre active recreational area. On-going – A conceptual trail system will be identified in the Otay Trail Alignment Study and is subject to review and comment by the POM and Wildlife Agencies. Standard: A qualified firm shall be hired to design and implement construction of a trails system through the Preserve, following review and comment by the Preserve Owner/Manager and resource agencies. 6.4 Motorized vehicular access by the public to the Preserve shall be restricted. On-going – Motorized vehicle use is a permitted use within the Preserve for the following activities: Preserve operation, Preserve maintenance, fire control, easement access, and emergency, safety, and law enforcement personnel. Motorized vehicular access by the public is strictly prohibited within the Preserve. Standards: 1. Motorized vehicular use within the Preserve shall be restricted to activities necessary for Preserve operation and maintenance and fire control. 2. Motorized vehicular use within the Preserve shall be restricted to roadways within the Preserve. 3. Where existing easements and other ingress/egress documents allow motorized access, such access shall be permitted but shall be restricted to the documented easement holder. 4. Motorized vehicular use associated with construction shall be permitted consistent with resource protection. 2018-11-27 Agenda Packet Page 275 Phase 2 Resource Management Plan Update Otay Ranch Page 2-23 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 5. Off-road vehicles shall be prohibited. 6. Motorized vehicle use for emergency access shall be permitted. Fire roads shall be permitted within the Preserve only where absolutely necessary to assure public safety and control wildfires that may damage biological resources. 6.5 Identify restricted use areas within the Preserve. On-going – Public access is currently restricted from the Preserve. The conceptual trail alignments proposed in the Otay Ranch Preserve Trail Alignment Study will be designed to avoid areas containing sensitive biological resources that are not suitable for public access. Standard: Public access may be restricted within and adjacent to wetlands, vernal pools, restoration areas, and sensitive wildlife habitat (e.g., during breeding season) at the discretion of the Preserve Owner/Manager. 6.6 Infrastructure may be allowed within the Preserve; conceptual locations of infrastructure facilities located within or crossing the Preserve are illustrated in Figures 14-18 [of the Phase 1 RMP] (final infrastructure plans may deviate from the conceptual locations shown as long as Preserve resources are not adversely affected). On-going – Infrastructure is a permitted use with the Preserve. The siting and design criteria contained in the County and City’s MSCP Subarea Plans provide standards for the buildout of infrastructure within the Preserve. Standard: Develop a general infrastructure plan in conjunction with the first SPA of the Phase 2 RMP that provides standards and criteria to guide specific infrastructure siting and design during the phased buildout of Otay Ranch. 6.7 Fire roads shall be permitted within the Preserve only where absolutely necessary to assure public safety and control wildfires that may damage biological resources. On-going – Fire roads are a permitted use within the Preserve where necessary to assure public safety and protect biological resources. 6.8 Ecologically necessary controlled burning may be permitted within the Preserve. On-going – Controlled burning for the enhancement of biological resources is a permitted use within the Preserve. Standard: Where and when it is deemed appropriate for the enhancement of biological resources by the Preserve Owner/Manager, and subject to review by the County of San Diego and the City of Chula Vista with advice from 2018-11-27 Agenda Packet Page 276 Phase 2 Resource Management Plan Update Otay Ranch Page 2-24 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status the resource agencies (USFWS, CDFG), controlled burning shall be conducted within the Preserve. OBJECTIVE 7- RESOURCE PRESERVE – ADJACENT LAND USES 7.1 All development plans adjacent to the edge of the Preserve shall be subject to review and comment by the Preserve Owner/Manager, the City of Chula Vista, and the County of San Diego to assure consistency with resource protection objectives and policies. To be addressed at the SPA-level. Future development projects containing areas within 100 feet of the Preserve are subject to review and comment by the City and County. 7.2 The "edge" of the Preserve is a strip of land 100 feet wide that surrounds the perimeter of the Preserve. It is not a part of the Preserve - it is a privately or publicly owned area included in lots within the urban portion of Otay Ranch immediately adjacent to the Preserve. To be addressed at the SPA-level. Future development projects containing areas within 100 feet of the Preserve are required to prepare a Preserve Edge Plan. Uses within the edge are limited to walls, fencing, and landscaping. Projects adjacent to the edge must also demonstrate that uses adjacent to the Preserve edge are the least impactive to biological resources. Standard: "Edge Plans" shall be developed for all SPAs that contain areas adjacent to the Preserve. 7.3 Protect and maintain biological integrity of unconveyed land adjacent to developing SPAs. To be addressed at the SPA-level. Future development projects adjacent to conveyed and unconveyed Preserve land are required to implement avoidance measures to avoid impacts to the Preserve. This may include phasing of construction to avoid indirect impacts to nesting sensitive bird species such as coastal California gnatcatcher and least Bell’s vireo, and providing temporary fencing to prevent encroachment by construction into the Preserve. Standards: 1. Provide temporary fencing around perimeter of sensitive habitat areas and/or areas occupied by sensitive species adjacent to any SPA under construction to inhibit encroachment by construction traffic, etc. 2. Phase construction of SPAs immediately adjacent to sensitive biological resources to avoid indirect impacts. For example, construction activities that equal or exceed volume levels that inhibit breeding and nesting activities of the California gnatcatcher should be curtailed during the nesting period of the bird. 2018-11-27 Agenda Packet Page 277 Phase 2 Resource Management Plan Update Otay Ranch Page 2-25 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status OBJECTIVE 8 - RESOURCE PRESERVE – INTERIM LAND USES 8.1 Existing conditions (uses) will not be allowed to negatively impact the sensitive resources in the Preserve. On-going – The continuation of existing agricultural uses are permitted within the Preserve as an interim land use. Within the City, grazing shall be subject to the restrictions identified in Ordinance 3003 of the City’s Municipal Code. Standards 1. Existing agricultural uses, including cultivation and grazing, shall be permitted to continue as an interim activity only where they have occurred historically and continually. 2. No increase in irrigation shall be allowed, except for temporary irrigation that may be installed as part of restoration plans. 3. Grazing by sheep and goats shall not be allowed. 4. Cattle grazing shall be phased out in accordance with the conveyance program and Range Management Plan. 8.2 The County of San Diego or City of Chula Vista shall manage ongoing mineral extraction operations through the permit process. On-going – The continuation of existing mineral extraction operation is allowed within the Preserve as an interim land use. Permits for mineral extraction operations are subject to review and approval from the County and City. 8.3 Construction activities associated with infrastructure necessary for implementation of an approved development plan shall be allowed as an interim activity. On-going – Construction activities associated with approved infrastructure improvements are allowed as an interim land use within the Preserve. Standard: All construction activities shall take place in accordance with standards and criteria outlined in the conceptual infrastructure improvement plans as required in Policy 6.7. The improvement plans shall be subject to approval by the appropriate jurisdiction and review by the Preserve Owner/Manager. 8.4 Develop a Range Management Plan. Completed – The range management plan was completed concurrent with SPA One and included as an appendix to the Standard: A Range Management Plan, which will depict the allowable interaction between grazing activity and 2018-11-27 Agenda Packet Page 278 Phase 2 Resource Management Plan Update Otay Ranch Page 2-26 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status sensitive resources, shall be developed as part of the submittal of the first SPA in the Phase 2 RMP. Under this plan, the most sensitive areas (i.e., areas that support sensitive species) shall have restricted access either by fencing or other appropriate method. The plan shall be subject to review and comment by the Preserve Owner/Manager, the City and the County. 1996 Phase 2 RMP entitled Range Management Plan for Otay Ranch, San Diego County, California (Dudek 1995d). OBJECTIVE 9 - RESOURCE PRESERVE – REGULATORY FRAMEWORK FOR FUTURE USES 9.1 Consult with resource agencies (i.e., U.S Army Corps of Engineers, USFWS, CDFG) at an early stage regarding impacts to resources under their jurisdictions. On-going – Agency consultation will be initiated consistent with this requirement of the Phase 1 RMP. Standard: The Phase 1 RMP and future RMP documents shall be distributed for review by the resource agencies (USFWS, CDFG) prior to approval. 9.2 If feasible, negotiate a Memorandum of Agreement (MOA) (or separate memoranda) with the resource agencies concurrent with the Phase 2 RMP. The purpose of the MOA shall be to achieve concurrence on the RMP management approach and facilitate obtaining necessary Federal and State permits for the project at a later date. Completed – This requirement is deemed complete through City and County participation in their respective MSCP Subarea Plans. 9.3 Complete wetland delineations using the Federal Unified Method, or approved modification thereof, for each Specific Plan or SPA containing wetlands. On-going – Future development proposals are subject to discretionary review and approval and are required to complete site-specific resource studies, including an assessment of potential impacts to jurisdictional resources. Projects with the potential to impact jurisdictional resources would be required to complete a wetland delineation in accordance with the U.S. Army Corps of Engineers Wetland Delineation Manual, or most current accepted methodology for wetland delineation. Standard: Wetland delineations and permitting shall be in accordance with the standards and guidelines of the U.S. Army Corps of Engineers. 2018-11-27 Agenda Packet Page 279 Phase 2 Resource Management Plan Update Otay Ranch Page 2-27 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 9.4 Identify areas subject to CDFG Section 1600 Streambed Alteration Agreements concurrent with site-specific environmental review of each Specific Plan or SPA. To be addressed at the SPA level – Future development proposals are subject to discretionary review and approval and are required to complete site-specific resource studies and obtain permits for impacts to jurisdictional resources in accordance with CEQA. 9.5 The Otay Ranch Resource Management Plan is not a substitute for site-specific CEQA review of individual developments within Otay Ranch, however, it is anticipated that the Resource Management Plan, including attendant enhancements, programs and dedications, may mitigate the impacts of subsequent discretionary projects. To be addressed at the SPA level – Future development proposals are subject to discretionary review and approval, and are required to complete site-specific resource studies in accordance with CEQA. Standards: 1. Site-specific resource studies shall be completed for each SPA/Specific Plan. 2. Future resource studies will reflect changes in State and Federal agency status of sensitive plant and wildlife species. 9.6 Establish a procedure for amending the RMP. Completed – In the County, amendments to the RMP follow the procedures set forth in County Board of Supervisors Policy I-109. In the City, amendments to the RMP follow the procedures set forth in the Section 19.48.070 of the City’s Municipal Code. Standard: Following notice of public hearing, the RMP may be amended by the legislative body having jurisdiction over the use of land affected by the amendment, provided that all such amendments shall be subject to review and comment by the Preserve Owner/Manager, by the City of Chula Vista, and by the County of San Diego. 9.7 An amendment shall be required for any land use within the Preserve that is not specifically permitted by these policies, including the location of a university, landfill, or other development within the Preserve. To be addressed at the SPA level – Future development proposals are subject to discretionary review and approval, and would require an amendment for any land use within the Preserve not described within Chapter 3 of this document or permitted by the GDP/SRP. 2018-11-27 Agenda Packet Page 280 Phase 2 Resource Management Plan Update Otay Ranch Page 2-28 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status 9.8 Preserve boundary modifications shall be made based on site- specific studies completed for individual SPA/Specific Plans. On-going - Preserve boundary modifications would follow the boundary line adjustment process described in the County’s MSCP Plan and City’s MSCP Subarea Plan, and would be required to demonstrate compliance with Policy 9.8 of the Phase 1 RMP. Standards: 1. The overall size of the Preserve shall not be reduced by a Preserve boundary modification unless it can be demonstrated that the biological standards and guidelines can be met and the Preserve design is not adversely affected by a Preserve boundary modification that results in a reduced acreage. 2. All amendments to the RMP that would reduce the size or substantially revise the location of the Preserve boundary, or that would in any way delay the conveyance of all or portions of the Preserve to the Owner/Manager, shall require written approval by both the City of Chula Vista and the County of San Diego. 3. Boundary modifications shall conform with the setback criteria listed [on pages 134 & 135 of the RMP1]. The locations of the most sensitive areas are illustrated in Figure 19. 4. Boundary modifications are intended for use at the SPA level to make minor refinements to include additional resources within the Preserve. NOTES: CEQA = California Environmental Quality Act CFD = Community Facilities District EIR = Environmental Impact Report JPA = Joint Powers Agreement GDP = City of Chula Vista General Development Plan MSCP = Multiple Species Conservation Program SRP = County of San Diego Otay Subregional Plan Phase 2 2018-11-27 Agenda Packet Page 281 Phase 2 Resource Management Plan Update Otay Ranch Page 2-29 Attachment 2 Status of Phase 1 RMP Policies and Standards (2017) Policy Number Policy/ Standard (County of San Diego & City of Chula Vista 1993) Status SP = Specific Plan SPA = Sectional Planning Area POM = Preserve Owner/ Manager PSB = Preserve Steward/ Biologist RMP = Resource Management Plan REFERENCES CITED Chula Vista, City of (City) 2006 Otay Ranch Villages Two, Three, and a Portion of Four Sectional Planning Area (SPA) Plan Final Second Tier EIR. May 5. San Diego, County of, and Chula Vista, City of 1993 Otay Ranch Resource Management Plan. October 28. 1996 Joint Powers Agreement Between the City of Chula Vista and County of San Diego for the Planning, Operations, and Maintenance of the Otay Ranch Open Space Preserve. Dudek & Associates (Dudek) 1992 Report of the Flora of the Otay Ranch Vernal Pools 1990-1991, San Diego County, California. 1995a 1995 Contribution to Ongoing California Gnatcatcher and Cactus Wren Studies. 1995b Vernal Pool Management Plan for Otay Ranch. 1995c Otay Ranch Coastal Sage Scrub and Maritime Succulent Scrub Habitat Replacement Master Plan. 1995d Range Management Plan for Otay Ranch, San Diego County, California. 2018-11-27 Agenda Packet Page 282 Phase 2 Resource Management Plan Update Otay Ranch Page 2-30 Attachment 2 Status of Phase 1 RMP Policies and Standards (201 7) Ogden Environmental (Ogden) 1992a Final Program Environmental Impact Report. Prepared for Otay Ranch Joint Planning Project. 1992b Baldwin Otay Ranch Wildlife Corridor Study. 1992c Otay Ranch Raptor Management Study. RECON Environmental, Inc. (RECON) 2016 FY 2016-17 Annual Work Plan for the Otay Ranch Conveyed Lands Managed by the Otay Ranch Preserve Owner/Manager. San Diego, County of 1993 Otay Subregional Plan, Vol. 2. Adopted October 28. 1997 Multiple Species Conservation Program County of San Diego Subarea Plan. 2006 Otay Valley Regional Park Habitat Restoration Plan & Non-native Plant Removal Guidelines. 2007 Amendments to the Otay Ranch Subregional Plan and Phases 1 and 2 Resource Management Plans; General Plan Amendment 06 -012; Otay Subregional Planning Area (Districts 1, 2). December 5. 2018-11-27 Agenda Packet Page 283 Otay Ranch ATTACHMENT 3 Conveyance Forecast and Preserve Assembly 2018-11-27 Agenda Packet Page 284 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 285 Phase 2 Resource Management Plan Update Otay Ranch Page 3-1 Attachment 3: Conveyance Forecast & Preserve Assembly 1.0 Conveyance Forecast The land use plan in the most recently adopted General Development Plan/Subregional Plan (GDP/SRP) contains provisions for the development of up to 14 villages and 7 planning areas in the City of Chula Vista and unincorporated area of the County of San Diego (County of San Diego 1993; City of Chula Vista 2015). Development of the Otay Ranch villages and planning areas are subject to the 1.188-acre conveyance obligation, which forms the basis for Preserve assembly. As of 2017, the villages and planning areas are in various stages of planning and development. Table 3-1 shows the entitlement status of the villages and planning areas in Otay Ranch based on recorded final maps, approved SPA plans, and current land uses in the GDP/SRP as of 2017. The conveyance forecast in the table is based on the total developable area within each village/planning area that is subject to conveyance, and thus does not include common use areas which are not subject to the conveyance requirement. It should be noted that areas that have been acquired for conservation have not been subtracted from the development totals for each village/planning area, as these lands retain the underlying land use designations in the GDP/SRP. Thus, the final development footprint and subsequent conveyance obligation for each village/planning area may vary from the acreages contained in Table 3-1 below and will be determined upon recordation of each final map. 1.1 County of San Diego The GDP/SRP provides a framework for the development of three villages and four planning areas in the County’s jurisdictional area: Villages 13, 14, and 15, and Planning Areas 16, 17, 18 (partial), and 19 (County of San Diego 1993). As of 2017, no SPA plans have been approved for the County villages/planning areas. Portions of Villages 14 and 15 and Planning Area 16 have been acquired by the California Department of Fish and Wildlife (CDFW) and the United States Fish and Wildlife Service (USFWS) and retained in Rancho Jamul Ecological Reserve, Otay Mountain Ecological Reserve, and San Diego National Wildlife Refuge (Figure 3-1). Additionally, the portion of Planning Area 18 occurring within the County has been partially acquired for conservation by the California Department of Transportation and private entities. Development within these areas would likely be precluded by federal and state regulations for conserved lands. However, the underlying land use designation would allow for future development to occur upon approval of a SPA plan, if so desired, due to changes in ownership or other circumstances. 2018-11-27 Agenda Packet Page 286 Phase 2 Resource Management Plan Update Otay Ranch Page 3-2 Table 3-1 Otay Ranch Entitlement Status and Conveyance Forecast – December 20171 Ownership Status Development Area Subject to Conveyance (acres) Conveyance Obligation (acres) Approved Final Map (Total) 3,092.59 3,674.00 Villages 1 & 5 1,302.24 1,547.06 Village 2 (partial) 383.11 455.13 Village 32 (partial) 217.15 257.97 Village 6 336.88 400.21 Village 7 (partial) 196.86 233.87 Village 11 408.30 485.06 Planning Area 12 (partial)3 248.05 294.68 Entitled by Approved SPA Plan (Total)1 1,080.25 1,283.34 Village 2 (partial) 248.69 295.44 Village 32 9.54 11.33 Village 7 (partial) 18.79 22.32 Village 8 East 216.10 256.73 Village 8 West 195.90 232.73 Village 9 200.20 237.84 Village 10 133.90 159.07 Planning Area 12 (partial) 57.13 67.87 Approved SPA Plan Required for Future Development (Total) 4,136.11 4,913.70 Village 4 163.96 194.78 Village 7 (partial) 51.65 61.36 Planning Area 10 (Regional Technology Park)4 85.00 100.98 Village 13 631.50 750.22 Village 14 665.20 790.26 Village 15 688.70 818.18 Planning Area 16 718.60 853.70 Planning Area 17 816.70 970.24 Planning Area 18 6 215.80 256.37 Planning Area 19 20.00 23.76 Planning Area 20 15.00 17.82 Other Areas5 64.00 76.03 1 Actual village development footprints and conveyance obligations are based on gross estimates from the GDP/SRP and approved SPA Plans, and may differ from the totals presented in this table. The final development footprints and conveyance obligations will be determined upon recordation of the final map for each village/planning area. 2 Includes Planning Area 18B through the Village 3 GDP amendment. 3 3.53 acres will be deducted from the Planning Area 12 conveyance obligation per the adopted Eastern Urban Center Park Agreement for Phase I Park Credit (DOC#2009-0599389) recorded October 28, 2009. 4 The area designated as ‘University’ is not included in the developable total as this would be considered a Common Use and not subject to conveyance. 5 ‘Other Areas’ consists of a small portion of Village 13 occurring within the City of Chula Vista. 6 A total of 256 acres were anticipated to be conveyed to the Preserve from development o f Planning Area 18 within the City of San Diego. As the City of San Diego is not a signatory of the GDP/SRP, this area is not subject to the conveyance requirements in the 1996 Phase 2 RMP. However, these lands have been acquired for conservation or mitigation. 2018-11-27 Agenda Packet Page 287 P:\20180423_RMP2\received_ data\inap_packages\att3_ 1 \v10\Att3-1 pack.mx d 61 10120 18 mcasey c::J Otay Ranch Boundary c::J Otay Ranch Villages* Development Area Preserve Restricted Development Area Agency Aqu isitions Bureau of Land Management US Fish and Wildlife Service CA Dept. of Fish and Wildlife Californ ia Dept of Transportation Otay Water D istrict County of San Diego City of San Diego ~ Private Acquisitions (Recorded t; ___ .,! Open Space Easement) * Note: Village and Planning Area boundaries are for illustrative purposes only. ATIACHMENT 3-1 Otay Ranch Acquisitions (2017) 2018-11-27 Agenda Packet Page 288 Phase 2 Resource Management Plan Update Otay Ranch Page 3-4 Page intentionally left blank 2018-11-27 Agenda Packet Page 289 Phase 2 Resource Management Plan Update Otay Ranch Page 3-5 1.2 City of Chula Vista The GDP/SRP provides a framework for the development of 11 villages and 3 planning areas in the City’s jurisdiction: Villages 1 through 11 and Planning Areas 10, 12, and 20 (City of Chula Vista 2015). (Note: Villages that have been split up into separate sections are considered one village for the purposes of this analysis). As of 2017, portions of eight villages/planning areas within the City have processed final maps for a total of 3,092.59 acres of development, resulting in the conveyance of 3,674 acres to the Preserve. A total of 1,080.25 acres within portions of seven villages/planning areas in the City are entitled for development through approved SPA plans, but have not yet processed final maps. Portions of three villages/planning areas in the City remain to be entitled for development. Portions of Village 14 occurring within the City’s jurisdiction have been acquired by USFWS and Otay Water District. The area owned by USFWS is retained in San Diego National Wildlife Refuge. Otay Water District’s ownership is located in an area designated as ‘Other Agency Preserve Planning Efforts’ by the City’s MSCP Subarea Plan. A small portion of Planning Area 20 is also owned by the County of San Diego for conservation purposes (see Figure 3-1). 2.0 Preserve Assembly – 1993 to 2017 As shown in Table 3-2, a total of 5,850 acres of Preserve land are currently held in conservation. This includes 3,674 acres of Preserve land that has been conveyed to the POM in association with Otay Ranch development impacts as shown in Table 3-1. In addition, there are 2,176 acres of agency acquisitions and privately acquired Preserve land (Figure 3- 2a). Although the agency acquisitions and privately acquired Preserve lands are not anticipated to be conveyed to the POM, they contribute toward the conservation goals of the GDP/SRP and Phase 1 RMP and add to the biological function of the Otay Ranch Preserve. Additionally, a total of 1,794 acres on non-Preserve land (e.g., Development Area or Limited Development Area) are currently held in conservation. This includes 1,787 acres of agency acquisitions and 7 acres privately acquired Development Area/Limited Development Area (see Figure 3-2a). Although these areas retain development rights, development within these areas would likely be precluded by federal and state regulations for conserved lands. Thus, these areas would serve to broaden the conservation footprint within Otay Ranch beyond the Preserve boundary. A balance of 5,697 acres of Preserve remains available for conservation or conveyance to the POM as of December 2017 (Figure 3-2b). Of this acreage, approximately 69 acres of Preserve are not anticipated to be conveyed to the POM due to existing rights-of-way and utility easements. Thus, a total of 5,628 acres are estimated to be available for conveyance in association with Otay Ranch development impacts. A summary of the conservation status of lands within the Preserve as of December 2017 is included in Table 3-2. The remaining 5,628 acres represents those lands that are categorized as “Preserve” within the overall GDP/SRP mapping, but have not yet been conveyed to the POM or conserved by other entities. There are 1,283 acres expected to be conveyed from the Preserve as a result of entitled projects (see Table 3-1). Therefore, there is a remaining approximately 4,345 acres 2018-11-27 Agenda Packet Page 290 Phase 2 Resource Management Plan Update Otay Ranch Page 3-6 of land within the Preserve that is available for future conveyance or conservation by third parties. As of December 2017, it is not anticipated that future development in Otay Ranch will result in conveyances that total the 4,913.70 acres that would be expected per the GDP/SRP (see Table 3-1). Of the villages and planning areas within Otay Ranch that are owned by private entities and could be developed, preliminary projections from the County and the City indicate that the future conveyances could potentially be less than 4,345 acres. These calculations are considered highly speculative as they are calculated based on future development projects that have not yet been approved by the County and the City. Considering that there are 4,345 acres remaining in the Preserve, it is possible that there could be land that is designated as Preserve but is not conveyed to the POM as a result of future development in Otay Ranch. The POM allows for acquisition of Preserve lands by third parties for conservation or to mitigate for impacts from non-Otay Ranch projects. It is anticipated that any Preserve lands not conveyed to the POM as a result of development in Otay Ranch would be conserved by third party acquisitions or remain in their currently undeveloped state due to the GDP/SRP designation, which prohibits development of lands within the Preserve. 2018-11-27 Agenda Packet Page 291 2018-11-27 Agenda PacketPage 292 Phase 2 Resource Management Plan Update Otay Ranch Page 3-8 Page intentionally left blank 2018-11-27 Agenda Packet Page 293 2018-11-27 Agenda PacketPage 294 Phase 2 Resource Management Plan Update Otay Ranch Page 3-10 Page intentionally left blank 2018-11-27 Agenda Packet Page 295 Phase 2 Resource Management Plan Update Otay Ranch Page 3-11 Table 3-2 Status of Preserve Assembly - 2017 Conservation Status of Preserve and Non-Preserve Land Preserve Total (acres) Conserved Preserve Land Conveyed Preserve Land Under POM Management1 3,674 Agency Acquisitions of Preserve Land (Total) 2,130 California Department of Fish & Wildlife 814 California Department of Transportation 282 City of San Diego 3 County of San Diego 291 Otay Water District 103 U.S. Fish & Wildlife Service 637 Private Acquisition of Preserve Land (Recorded Open Space Easement) 46 Subtotal 5,850 Conserved Non-Preserve Land Agency Acquisitions of Development Area (Total) 1,787 California Department of Fish & Wildlife 1,393 California Department of Transportation 143 City of San Diego 11 County of San Diego 11 Otay Water District 35 U.S. Fish & Wildlife Service 194 Private Acquisition of Development Area & Restricted Development Area (Recorded Open Space Easement) 7 Subtotal 1,794 Preserve Land Available for Conservation Preserve Land Available for Conveyance1 5,628 Subtotal 5,628 GRAND TOTAL 13,272 NOTE: Totals are gross estimates based on recorded parcel data provided by SanGIS (2016). Acreages calculated may differ slightly from deed acreages due to minor discrepancies in parcel boundaries based on GIS. 1 Total does not include 69 acres of Preserve land within existing right-of-ways and utility easements, which are not anticipated to be conveyed to the POM. 2018-11-27 Agenda Packet Page 296 Phase 2 Resource Management Plan Update Otay Ranch Page 3-12 2.1 Vernal Pool Preservation Area Within the Preserve, specific areas were designated by the Phase 1 RMP to be included in a conceptual Vernal Pool Preserve overlay zone. The purpose of this overlay zone was to fulfill Policy 2.9 of the GDP/SRP and Phase 1 RMP, which requires the preservation of vernal pool complexes J23, J24, J25, J30, and J29 (partial) in an area encompassing no less than 330 acres. At the time the conceptual boundaries were proposed, it was recognized that the SR- 125 alignment would intersect the conceptual Vernal Pool Preserve overlay area and that the conceptual boundaries shown in the Phase 1 RMP would be refined after its construction. The finalized Vernal Pool Preservation Area is shown on Figure 3-3 and totals 408 acres. Figure 3-3 shows the refined boundary in relation to the southern segment of the SR-125 (completed in 2007) and illustrates the ownership status as of December 2017. The finalized Vernal Pool Preservation Area encompasses all vernal pools identified for conservation by the Phase 1 RMP and exceeds the 330-acre requirement. As lands with vernal pools are conveyed to the Preserve, site-specific vernal pool restoration plans will be completed. The Vernal Pool Preservation Area consists of multiple ownerships, with a majority of it held in permanent, protected conservation. As of December 2017, 341 acres (83%) of the Vernal Pool Preservation Area are held in permanent conservation and a total of 67 acres are available for conveyance to the Preserve (Table 3-3). Of the conserved lands, a total of 41 acres have been conveyed to the POM in association with Otay Ranch developments and an additional 155 acres are owned by the County. The County land is not anticipated to be conveyed to the Preserve because it was purchased using grant funding for the acquisition of Otay Valley Regional Park land and lacks a Community Facilities District or other source of long-term funding for management. Additionally, these lands are located within a Formerly Used Defense Site area that has not been cleared of ordinance by the U.S. Army Corps of Engineers. The County conducts access control measures including patrolling, signage, and fencing to prevent impacts to this land within the Vernal Pool Preservation Area. The California Department of Transportation has also acquired 110 acres of the Preserve in this area. The remaining 35 acres of conserved land are held by third parties for mitigation of non-Otay Ranch development impacts in the City of San Diego’s jurisdiction. These lands consist of privately owned parcels with recorded Biological Open Space easements (Easement ID 9004160 & 90033283). These parcels will not be conveyed to the Preserve, as they are not associated with Otay Ranch development impacts; however, their conserved status adds to the biological function and value of the Vernal Pool Preserve. 2018-11-27 Agenda Packet Page 297 Phase 2 Resource Management Plan Update Otay Ranch Page 3-13 Table 3-3 Status of Vernal Pool Preserve Assembly – December 2016 Conservation Status of Vernal Pool Preserve Land Vernal Pool Preserve Total (acres) Conserved Vernal Pool Preserve Land Conveyed Vernal Pool Preserve Land Under POM Management 41 Agency Acquisitions of Vernal Pool Preserve Land (Total) 265 County of San Diego 155 California Department of Transportation 110 Privately Conserved Vernal Pool Preserve Land (Easement ID 9004160 & 90033283). 35 Subtotal 341 Vernal Pool Preserve Available for Conveyance Vernal Pool Preserve Land Available for Conveyance 67 Subtotal 67 GRAND TOTAL 408 Note: Ownerships are based on recorded parcel data provided by SanGIS (2016). Acreages calculated may differ slightly than deed acreages due to minor discrepancies in parcel boundaries based on GIS. 2018-11-27 Agenda Packet Page 298 Phase 2 Resource Management Plan Update Otay Ranch Page 3-14 Page intentionally left blank 2018-11-27 Agenda Packet Page 299 c::J Otay Ranch Boundary ,--, L __ 1 Vernal Pool Preservation Area Preserve c::J Vernal Pool Complexes* Ownership Status Preserve Remaining to Be Conveyed a DIG (Within City of San Diego & County of San Diego Jurisdictions) � Conveyed Land Under POM Management Private Acquisitions (Recorded Open Space Easement) Agency Acquisitions � County of San Diego E3 CA Department of Transportation •source: Vernal Pool Management Plan for Olay Ranch (Dudek & Associates 1995) O � ��F!!!!eliiiietiiiiiiiiiiiiiiii90-0 () FIGURE 3-3 Vernal Pool Preservation Area (2017) 2018-11-27 Agenda Packet Page 300 Phase 2 Resource Management Plan Update Otay Ranch Page 3-16 Page intentionally left blank 2018-11-27 Agenda Packet Page 301 Otay Ranch ATTACHMENT 4 Biota Monitoring Program 2018-11-27 Agenda Packet Page 302 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 303 Biota Monitoring Program for Otay Ranch Prepared for County of San Diego 5510 Overland Avenue San Diego, CA 92123 City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Prepared by RECON Environmental, Inc. 1927 Fifth Avenue San Diego, CA 92101 P 619.308.9333 RECON Number 8117 June 22, 2018 – Finalized September 2018 Cailin Lyons, Associate Biologist 2018-11-27 Agenda Packet Page 304 Biota Monitoring Program Otay Ranch TABLE OF CONTENTS 1.0 Introduction 1 2.0 Botanical Resources 1 2.1 Resources to be Monitored 1 2.1.1 Vegetation Communities 1 2.1.2 Sensitive Plant Species 2 2.2 Methodology 3 2.2.1 Baseline Surveys 3 2.2.2 Vegetation Community Monitoring 4 2.2.3 Focused Surveys 5 2.2.4 Invasive Species Monitoring 6 3.0 Zoological Resources 7 3.1 Resources to be Monitored 7 3.1.1 Sensitive Wildlife Species 7 3.2 Methodology 8 3.2.1 Baseline Surveys for General Wildlife 8 3.2.2 Focused Surveys for Sensitive Wildlife 8 3.2.3 Invasive Species Monitoring 12 4.0 Climate Adaptation Strategy 13 5.0 References Cited 15 TABLES Table 1 Vegetation Communities to be Monitored Within the Preserve ................................ 2 Table 2 .....................................................................................................................................14 Cross-walk of Biota Monitoring Tasks with Climate Change Adaptation Strategies ...........14 APPENDICES 1: Biota Monitoring Program Plant Species Priority Groups 2: Biota Monitoring Program Wildlife Species Priority Groups 2018-11-27 Agenda Packet Page 305 Biota Monitoring Program Otay Ranch 4-1 1.0 Introduction The purpose of the Biota Monitoring Program is to provide a monitoring framework to identify changes in the quality and quantity of on-site biological resources, including sensitive wildlife species, sensitive plant species, and sensitive habitat types within lands conveyed to the County of San Diego (County) and City of Chula Vista (City), henceforth collectively referred to as the Preserve Owner/Manager (POM). The data provided by the monitoring program will be used to evaluate and prioritize future Preserve monitoring and management decisions. The Preserve Steward/Biologist (PSB) will evaluate all conveyed lands under POM management in the context of this monitoring program on an annual basis and provide monitoring and management recommendations to the POM in an annual work plan. The annual work plan will include in detail the proposed monitoring and management tasks for each year for all conveyed Preserve parcels [5.4]. Monitoring and management tasks will be prioritized based on the results of the monitoring program, as well as regional priorities and standards. The monitoring intervals contained herein may be increased, reduced, delayed, or suspended at the discretion of the PSB in consultation with the POM due to changes (or lack of changes) in species populations, environmental conditions, or regional priorities and standards. Any deviation from the monitoring requirements contained in the Biota Monitoring Program will be documented and justified in the annual work plan. The Biota Monitoring Program is comprised of two components: prioritization of resources to be monitored and proposed monitoring methodologies. These components have been evaluated and prioritized based on current regional priorities and standards. It is anticipated that these priorities and standards will change over time due to changes in species sensitivity classifications, regional priorities, and/or monitoring standards. Thus, it is intended that the priorities and standards contained in this monitoring program will be reviewed annually the PSB in consultation with the POM. Formal changes to priorities or monitoring methods will require approval from the POM prior to implementation, and will be documented by the PSB in the annual work plan. 2.0 Botanical Resources 2.1 Resources to be Monitored 2.1.1 Vegetation Communities Comprehensive vegetation mapping will occur within the Preserve parcels following conveyance to establish the baseline condition and determine the distribution of sensitive vegetation communities and wetlands. Table 1 shows the sensitivity status of vegetation communities that may be present within the Preserve as defined by the Multiple Species Conservation Program County of San Diego Subarea Plan ([County’s MSCP Subarea Plan]; County of San Diego 1997) and Multiple Species Conservation Program Subarea Plan ([City’s MSCP Subarea Plan]; City of Chula Vista 2003). 2018-11-27 Agenda Packet Page 306 Biota Monitoring Program Otay Ranch 4-2 2.1.2 Sensitive Plant Species Sensitive plant species that are included in the Otay Ranch Resource Management Plan (Phase 1 RMP; County of San Diego and City of Chula Vista 1993), County’s MSCP Subarea Plan (County of San Diego 1997), City’s MSCP Subarea Plan (City of Chula Vista 2003), and/or Management Strategic Plan for Southwestern San Diego County ([Management Strategic Plan]; San Diego Management and Monitoring Program [SDMMP] 2013) have been prioritized for monitoring based on their level of sensitivity and likelihood to occur within the Preserve. Determination of the potential occurrence for these species is based upon known ranges and habitat preferences for the species (CNPS 2016; Reiser 2001) and species occurrence records and plant vouchers from the California Natural Diversity Database (CNDDB; State of California 2016), Master Occurrence Matrix (SDMMP 2016), and Consortium of California Herbaria (Consortium of California Herbaria 2016). Appendix 1 of this Biota Monitoring Program contains a list of all plant species evaluated for inclusion in the program and the current priority group for each species. A description of the criteria that were used to define each priority group is detailed below. Priority Group 1. Priority Group 1 plant species are listed by state and federal agencies as threatened, endangered, or rare, classified as a narrow endemic by the Table 1 Vegetation Communities to be Monitored Within the Preserve Vegetation Community/ Land Cover Type County’s MSCP Subarea Plan Tier City’s MSCP Subarea Plan Tier Agricultural Lands IV IV Closed Cone Coniferous Forest I NA Chaparral1 III III Chamise Chaparral I2/III III Coastal Sage Scrub II II Coastal Sage Scrub–Chaparral Scrub II II Disturbed Lands IV IV Eucalyptus Woodland IV IV Flat-topped Buckwheat II NA Maritime Succulent Scrub I I Native Grassland I I Non-native Grassland III III Oak Woodland I I Southern Maritime Chaparral I NA Southern Mixed Chaparral I2/III III Wetlands3 I NA4 NA = Not Applicable 1 Includes all forms of chaparral besides those listed in the table. 2 Mafic form. 3 Includes vernal pools, alkali marsh, freshwater marsh, riparian forests, riparian woodlands, and riparian scrubs. 4 Wetlands are considered a sensitive resource by the City’s MSCP Subarea Plan but do not have a Tier, as they are addressed separately from upland habitats. 2018-11-27 Agenda Packet Page 307 Biota Monitoring Program Otay Ranch 4-3 City or County’s MSCP Subarea Plans, and/or have a Species Management Category of ‘SL’ (Species at risk of loss from the Management Strategic Plan Area [MSPA]), ‘SO’ (Significant occurrences at risk of loss from the MSPA), or ‘SS’ (Species more stable but still requiring species-specific management to persist in the MSPA) as defined by the Management Strategic Plan. Priority Group 1 species are considered the highest priority for monitoring, and should be funded and monitored every designated monitoring period. A total of 19 plant species meet the criteria for Priority Group 1. Priority Group 2. Priority Group 2 plant species are covered by the MSCP and have a California Rare Plant Rank (CRPR) of 1B (considered rare, threatened, or endangered throughout its range) or 2B (considered rare, threatened, or endangered in California), as defined by California Native Plant Society (CNPS; 2016). Priority Group 2 plant species are distinguished from Priority Group 1 plant species as they are not federally or state-listed, considered a narrow endemic, or an ‘SL’, ‘SO’, or ‘SS’ species. Priority Group 2 species should be monitored every designated monitoring period as funding allows. A total of three plant species meet the criteria for Priority Group 2. Priority Group 3. Priority Group 3 plant species have a CRPR of 1B (considered rare, threatened, or endangered throughout its range) or 2B (considered rare, threatened, or endangered in California) and/or have a Species Management Category of ‘VF’ (Species with limited distribution in MSPA or needing specific vegetation characteristics requiring management) or ‘VG’ (Species not specifically managed for, but may benefit from vegetation management for VF species). Priority Group 3 species are distinguished from Priority Group 2 species as they are not covered by the MSCP. Priority Group 3 species should be monitored every designated monitoring period as funding allows. A total of 10 plant species meet the criteria for Priority Group 3. Priority Group 4. Priority Group 4 plant species have a CRPR of 3 (more information about the plant’s distribution and rarity needed) or 4 (plants of limited distribution). Priority Group 4 species are distinguished from Priority Group 3 species as they have a lower CRPR and/or have not been prioritized for monitoring and/or management activities by the Management Strategic Plan. Priority Group 4 species should be monitored incidentally during other tasks as funding allows. A total of 11 plant species meet the criteria for Priority Group 4. It is anticipated that changes in species sensitivity and/or regional monitoring strategies may warrant revisions to the priority groups described above and identified in Appendix 1 of this Biota Monitoring Program. Priority groups will be evaluated by the PSB prior to the submittal of each annual work plan, and any changes to priority groups due to on-going species listings and/or regional priorities will be approved by the POM and documented in the annual work plan. 2.2 Methodology 2.2.1 Baseline Surveys Baseline surveys will be conducted by the PSB on each new parcel during the first spring following inclusion in the Preserve. Baseline surveys will be conducted according to the 2018-11-27 Agenda Packet Page 308 Biota Monitoring Program Otay Ranch 4-4 current accepted methodologies and will include mapping vegetation, compiling an inventory of all plant and wildlife species encountered, and establishing permanent photo points. Prior to conducting baseline surveys, literature and databases will be reviewed from various resources in an effort to utilize multiple sources of historical data on the vegetation present on the parcel set or in its vicinity. Resources to be reviewed may include, the Consortium of California Herbaria (Consortium of California Herbaria 2016), Rare Plants of San Diego County (Reiser 2001), Inventory of Rare, Threatened, and Endangered Plants of California (CNPS 2016), CNDDB (State of California 2016), Master Occurrence Matrix (SDMMP 2016), San Diego Biological Information and Observation System (SanBIOS; County of San Diego 2009), South Coast Multi-taxa Database (SC-MTX; SDMMP 2010), and the USFWS Species Observation Point database (USFWS 2015), or modern equivalents. Vegetation mapping will be conducted according to A Manual of California Vegetation Second Edition (Sawyer et al. 2009), or most current accepted methodology for vegetation mapping. The floral list will be recorded at the same time that vegetation mapping occurs in the field. Meandering transects will be walked by biologists throughout the parcels. Plant species will be identified and recorded in the field or collected/photographed and identified using the Jepson eFlora (2016) or most current and appropriate taxonomic key. The locations of all sensitive plant species, sensitive wildlife species, and host plants for Priority Group 1 wildlife species will be recorded using a Global Positioning System (GPS) with sub-meter accuracy. Permanent photo points will be established during baseline surveys. The number and location of photo points within each parcel will be determined based on the size of the parcel set, variety of vegetation communities, and the potential for adverse edge effects. The monitoring photo point locations will be chosen so that they provide a broad view of representative vegetation communities within the parcel set. Existing prominent features (either natural or man-made) will be mindfully placed in each photo to make relocating the exact location easy in future years. The prominent features will be chosen so that changes to the landscape (i.e., fire or weed encroachment) will minimally affect the visibility of the feature. Photo points may also be established along habitat ecotones to monitor habitat shifts in elevation. Additional monitoring photo point locations may be added in the future. A baseline survey report documenting the results of the survey will be prepared by the PSB. The baseline survey report will include a discussion of topography and soils, a description of each vegetation community, a complete floral and faunal inventory, an assessment of invasive species, and a qualitative discussion of wildlife movement corridors and threats (e.g., invasive species, access issues). The report will include exhibits showing the vegetation community mapping and all sensitive plant and wildlife species identified. All sensitive plant and wildlife species occurrences will be submitted to the CNDDB, SanBIOS, and SC-MTX databases, or modern equivalents. 2.2.2 Vegetation Community Monitoring Comprehensive vegetation community monitoring, consisting of vegetation mapping and photo point monitoring, will be proposed on 10-year intervals or following a catastrophic event (e.g., fire), unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. Vegetation communities will be mapped by the PSB according to 2018-11-27 Agenda Packet Page 309 Biota Monitoring Program Otay Ranch 4-5 A Manual of California Vegetation, Second Edition (Sawyer et al. 2009), or the most current accepted methodology for vegetation mapping. Photo point monitoring will be conducted concurrently with vegetation mapping at the photo points established during baseline surveys. In the event of a fire or other catastrophic incident, vegetation community mapping and photo monitoring may occur at a shorter interval. The results of vegetation community mapping and photo point monitoring shall be reported by the PSB to the POM in an annual report. The monitoring results will be compared with previous monitoring results to determine if type conversion or habitat loss has occurred. The data will be used to inform future monitoring and management decisions. 2.2.3 Focused Surveys a. Rare Plant Surveys Initial baseline rare plant surveys for each new parcel will be conducted by the PSB during the first spring following the baseline survey. During the first rare plant survey completed for each parcel set, all Priority Group 1 through 4 plant species will be recorded. On-going monitoring is recommended as follows: three-year intervals for rare annual and herbaceous plant species and five-year intervals for rare perennial species, unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. Special focus will be given to documenting the full distribution of Priority Group 1 species. Priority Group 2 and 3 species will be monitored during rare plant surveys, as funding allows, unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. Priority Group 4 species will only be monitored incidentally when encountered during other monitoring tasks. Species occurrence records from CNDDB and the Master Occurrence Matrix will be reviewed prior to initiating rare plant surveys, to determine which sensitive plant species have been documented in the vicinity of the parcel sets. Herbarium voucher records from the on-line Consortium of California Herbaria may also be searched to determine additional sensitive plant species that have been vouchered near the parcel sets. Rare plant surveys will be conducted using the CNPS Botanical Survey Guidelines (2001) or most current accepted protocol. Surveyors will walk meandering transects and will visually search for sensitive plants. All sensitive plant species identified will be recorded using sub- meter GPS and will include information adapted from the CNDDB field form, including the species name, number of individuals, site quality, threats, surveyor, survey date, and additional comments. Surveys will occur in spring when annual and herbaceous perennial species are most visible. If environmental conditions are not appropriate during any given monitoring year (e.g., drought conditions, recent fire), the monitoring schedule may be revised to postpone the surveys until the next season in which conditions are suitable. During rare plant surveys at each parcel set, study plots may be established for known populations of Priority Group 1 species with an “IMG” activity code (defined as ’Inspect an d Manage’) in the Management Strategic Plan (see Appendix 1 of this Biota Monitoring Program). “IMG” species will be monitored consistent with the methods in the Management Strategic Plan Monitoring Protocol for Rare Plant Occurrences on Conserved Lands in Western San Diego County (MSP Rare Plant Protocol; SDMMP 2015) or according to the 2018-11-27 Agenda Packet Page 310 Biota Monitoring Program Otay Ranch 4-6 most current accepted protocol. Sampling will include detailed mapping of the population and surrounding habitat, a threats assessment, and the establishment of permanent photo points in accordance with the most current protocol. Each study plot will be surveyed at an appropriate time of year for its focal species. Study plots will be sampled concurrent with each parcel set’s rare plant survey, as funding allows. Focused survey results and incidental observations shall be reported by the PSB to the POM in an annual report. All sensitive plant species occurrences shall be submitted by the PSB to the CNDDB, SanBIOS, and SC-MTX databases, or modern equivalents. All data collected in association with the MSP Rare Plant Protocol will be submitted by the PSB to SDMMP for inclusion in the SC-MTX database. b. Vernal Pool Plant Monitoring Vernal pool plant monitoring is recommended to occur every five years for Preserve parcels containing vernal pool habitat to determine the presence/absence of Priority Group 1 vernal pool plant species and other species, unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of a quantitative assessment of vernal pool plant species within a subset of pools. A total of two survey visits are recommended during inundation—typically in February or March—and after the pool has dried for the season—typically April or May. All plant species present within the pool will be identified and assigned an absolute percent cover. Monitoring results shall be reported by the PSB to the POM in an annual report. All sensitive plant species occurrences shall be submitted by the PSB to the CNDDB, SanBIOS, and SC- MTX databases. 2.2.4 Invasive Species Monitoring New infestations of high-priority invasive plants will be recorded incidentally by the PSB during monitoring efforts following the Early Detection Rapid Response (EDRR) method, with special focus in drainages and edge areas that are susceptible to new invasions. Priority will be given to detecting Cal-IPC High, Moderate, and Alert species and priority invasive plant species in the Invasive Plant Strategic Plan (Cal-IPC 2016; SANDAG 2012). The monitoring strategy of EDRR consists of detecting invasive infestations at their first arrival within a given area while the populations are still localized and small (USDA 2016). EDRR greatly increases the likelihood that new invasions will be addressed successfully and prevented from becoming established and widespread in a given area. Through this method, invasive species that have recently invaded are managed first. Controlling new occurrences of invasive plants is a more cost-effective method of treatment than treating large infestations that are more difficult to eradicate. The results of invasive species monitoring will be used to inform management decisions. Weed control efforts will be prioritized and implemented by the PSB in coordination with the POM. 2018-11-27 Agenda Packet Page 311 Biota Monitoring Program Otay Ranch 4-7 3.0 Zoological Resources 3.1 Resources to be Monitored 3.1.1 Sensitive Wildlife Species Sensitive wildlife species that are included in the Phase 1 RMP (County of San Diego and City of Chula Vista 1993), County’s MSCP Subarea Plan (1997), City’s MSCP Subarea Plan (2003), and/or Management Strategic Plan (SDMMP 2013) have been prioritized based on their level of sensitivity and likelihood to occur within the Preserve. Determination of the potential occurrence for these species is based upon known ranges and habitat preferences for the species (Jennings and Hayes 1994; Unitt 2004) and species occurrence records from the CNDDB (State of California 2016) and the Master Occurrence Matrix (SDMMP 2016). Appendix 2 of this Biota Monitoring Program contains a list of all wildlife species evaluated for inclusion in the program and the current priority group for each species. A description of the criteria that was used to define each priority group is detailed below. Priority Group 1. Priority Group 1 wildlife species are listed by state and federal agencies as threatened, endangered, or a candidate for listing, classified as a narrow endemic by the City or County’s MSCP Subarea Plan, and/or have a Species Management Category of ‘SL’, ‘SO’, or ‘SS’. Priority Group 1 species are considered the highest priority for monitoring and should be funded and monitored every designated monitoring period. A total of 18 wildlife species meet the criteria for Priority Group 1. Priority Group 2. Priority Group 2 wildlife species are covered by the City or County’s MSCP Subarea Plan. A majority of these species are also classified by CDFW as a species of special concern, fully protected, or watch list species. Priority Group 2 wildlife species are distinguished from Priority Group 1 wildlife species as they are not federally or state-listed, considered a narrow endemic, or a ‘SL’, ‘SO’, or ‘SS’ species. Priority Group 2 species should be monitored every designated monitoring period as funding allows. A total of 11 wildlife species meet the criteria for Priority Group 2. Priority Group 3. Priority Group 3 wildlife species are classified by CDFW as a species of special concern, fully protected, or watch list species and/or have a Species Management Category of ‘VF’ or ‘VG’. Priority Group 3 species are distinguished from Priority Group 2 species as they are not covered by the City or County’s MSCP Subarea Plan. Priority Group 3 species should be monitored every designated monitoring period as funding allows. A total of eight wildlife species meet the criteria for Priority Group 3. Priority Group 4. Priority Group 4 wildlife species are classified by CDFW as a species of special concern, fully protected, or watch list species. Priority Group 4 species are distinguished from Priority Group 3 species as they have not been identified as regionally sensitive and prioritized for monitoring and/or management activities by the Management Strategic Plan. Priority Group 4 species should be monitored 2018-11-27 Agenda Packet Page 312 Biota Monitoring Program Otay Ranch 4-8 incidentally during other tasks as funding allows. A total of nine wildlife species meet the criteria for Priority Group 4. It is anticipated that changes in species sensitivity and/or regional monitoring strategies may warrant revisions to the priority groups described above and identified in Appendix 2 of this Biota Monitoring Program. Priority groups will be evaluated by the PSB prior to the submittal of each annual work plan, and any changes to priority groups due to on-going species listings and/or regional priorities will be approved by the POM and documented in the annual work plan. 3.2 Methodology 3.2.1 Baseline Surveys for General Wildlife A baseline wildlife survey will be conducted by the PSB on each new parcel during the first spring following inclusion into the Preserve. Prior to conducting the baseline survey, literature and databases will be reviewed from various resources in an effort to utilize multiple sources of historical data on the sensitive wildlife present on the parcel or in the vicinity. Resources to be reviewed may include the CNDDB (State of California 2016), SanBIOS (County of San Diego 2009), Master Occurrence Matrix (SDMMP 2016), and the USFWS Species Observation Point database (USFWS 2015). The baseline wildlife survey will occur shortly after sunrise when bird and mammal species are most active and will continue into the afternoon as temperatures increase to allow for reptile species to be more active and more easily detected. The faunal list will be compiled through species observations and detections (e.g., calls, nests, scat). The locations of all sensitive wildlife species identified will be recorded using a GPS with sub-meter accuracy. The results of the faunal inventory will be included in the baseline survey report. All sensitive wildlife species occurrences will be submitted by the PSB to the CNDDB, SanBIOS, and SC- MTX databases, or modern equivalents. 3.2.2 Focused Surveys for Sensitive Wildlife Focused surveys to be conducted for sensitive wildlife species will be determined by the PSB in consultation with the POM for each Preserve parcel based upon the presence of suitable habitat identified during baseline surveys and/or previous species occurrence records. Monitoring will be proposed at the intervals described below, unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. The survey schedule will be evaluated by the PSB on an annual basis. Any alterations to the schedule will be justified in the annual work plan. All focused survey results and incidental observations shall be reported by the PSB to the POM in an annual report. All sensitive wildlife species occurrences shall be submitted to the CNDDB, SanBIOS, and SC-MTX databases. Surveys conducted in accordance with USFWS and CDFW survey protocols and guidelines will adhere to all applicable notification and reporting requirements outlined in the survey protocol, unless waived by the applicable agency. Survey methodologies and monitoring intervals for sensitive birds, invertebrates, amphibians, reptiles, and mammals are described in further detail below. 2018-11-27 Agenda Packet Page 313 Biota Monitoring Program Otay Ranch 4-9 a. Sensitive Birds The following protocols and monitoring intervals are recommended for Priority Group 1 bird species: Coastal California gnatcatcher (Polioptila californica californica). Monitoring is recommended to occur every five years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of presence/absence surveys within all suitable and previously occupied habitat following the currently accepted USFWS protocol at the time of the survey. Coastal cactus wren (Campylorhynchus brunneicapillus sandiegensis). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of presence/absence surveys within all suitable and previously occupied habitat following the currently accepted practices at the time of the survey. Burrowing owl (Athene cunicularia hypugaea). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of focused surveys for burrowing owls in areas containing high-quality habitat with suitable burrows for nesting following the currently accepted CDFW protocol at the time of the survey. It is recommended that monitoring efforts consist of bi-annual visits to previously occupied burrows, in winter and spring, to determine status of the population. Least Bell’s vireo (Vireo bellii pusillus). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of focused surveys and nest monitoring for least Bell’s vireo in suitable riparian habitat following the currently accepted USFWS survey guidelines at the time of the survey. Nest monitoring will be used to determine brown-headed cowbird parasitism rates. Southwestern willow flycatcher (Empidonax traillii extimus). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of focused surveys for southwestern willow flycatcher in suitable riparian habitat following the currently accepted USFWS protocol at the time of the survey. Western yellow-billed cuckoo (Coccyzus americanus occidentalis). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey 2018-11-27 Agenda Packet Page 314 Biota Monitoring Program Otay Ranch 4-10 schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of focused surveys for western yellow- billed cuckoo in suitable riparian habitat following the currently accepted protocol at the time of the survey. Sensitive Raptors. The following raptor species are considered Priority Group 1 species: golden eagle (Aquila chrysaetos canadensis), northern harrier (Circus cyaneus hudsonius), and American peregrine falcon (Falco peregrinus anatum). Observations of these species will be incidentally recorded during all monitoring activities. Additional focused surveys may be completed at the discretion of the PSB in consultation with the POM. More detailed monitoring methods for these species will be included in a Long-term Raptor Management Program to be prepared in coordination with regional monitoring efforts. The Long Term Raptor Management Program will be implemented after the first final map is approved and a funding source is established for development in the unincorporated county. The Long-term Raptor Management Program will be consistent with the recommendations of the Otay Ranch Raptor Management Study such that includes components such as population monitoring, habitat enhancement, protection from human disturbance, and education/outreach. Other management techniques that may be more appropriate for the raptor population on Otay Ranch may be implemented per the discretion of the POM and the PSB. The Program will include periodic long-term monitoring of onsite raptor populations to determine their status and the appropriateness of management techniques. The overall goal of the Long-term Raptor Management Program is to maintain and where feasible enhance preserved raptor populations on Otay Ranch. A comprehensive list of all sensitive bird species in Priority Groups 2–4 will be recorded in conjunction with vegetation surveys every 10 years and through incidental observations made during other monitoring tasks. Focused surveys for species in Priority Groups 2–3 may be conducted at the discretion of the PSB in consultation with the POM, as funding allows. b. Sensitive Invertebrates The following protocols and monitoring intervals are recommended for Priority Group 1 invertebrate species: Quino checkerspot (Euphydryas editha quino). Monitoring is recommended to occur every five years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of modified surveys based on USFWS protocols. The modified protocol will consist of up to five survey visits in high-quality habitat and/or previously occupied areas and will be conducted once per week during appropriate weather conditions. Hermes copper (Lycaena hermes). Monitoring is recommended to occur every five years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of meandering surveys within suitable habitat areas supporting dense stands of the host 2018-11-27 Agenda Packet Page 315 Biota Monitoring Program Otay Ranch 4-11 plant of the Hermes copper, spiny redberry (Rhamnus crocea), during the adult flight period (mid-May to mid-July, depending on elevation). Thorne’s hairstreak (Mitoura thornei). Monitoring is recommended to occur every five years by for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of presence/absence surveys for Thorne’s hairstreak within suitable Tecate cypress forest habitat. One survey will be conducted during the first flight period in March. An additional survey may be conducted during the second flight period in June if Thorne’s hairstreak is not detected during the first survey. Harbison’s dun skipper (Euphyes vestris harbisoni). Monitoring is recommended to occur every five years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of presence/absence surveys for Harbison’s dun skipper within suitable habitat containing San Diego sedge (Carex spissa) during the adult flight period (mid-May to mid-July). San Diego fairy shrimp (Branchinecta sandiegonensis) and Riverside fairy shrimp (Streptocephalus woottoni). Monitoring is recommended to occur every five years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of modified surveys based on USFWS protocols within a subset of pools. The subset of pools will be determined by the PSB in consultation with the POM. Any pools known to support Riverside fairy shrimp will be included in the subset. The modified protocol will consist of up to five survey visits conducted every 10–14 days when pools are inundated. If rainfall and/or temperatures are not favorable for surveying, an altered survey schedule may be followed. Modifications to USFWS protocols shall be discussed in consultation with USFWS at the time surveys are planned. c. Sensitive Amphibians and Reptiles The following protocols and monitoring intervals are recommended for Priority Group 1 invertebrate species: Arroyo toad (Bufo californicus). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consist of modified surveys based on USFWS protocols during the breeding season within suitable habitat. It is recommended that the modified protocol consists of up to five survey visits, with no fewer than three visits during any given monitoring event. If weather conditions are not favorable for arroyo toad breeding activity, the diurnal component of the surveys may be dropped or an alternate survey schedule may be proposed. Modifications to the survey protocol may be proposed by the PSB and shall 2018-11-27 Agenda Packet Page 316 Biota Monitoring Program Otay Ranch 4-12 be discussed in consultation with the POM and USFWS at the time surveys are planned. Western pond turtle (Actinemys [=Clemmys] marmorata pallida). Monitoring is recommended to occur every three years for Preserve parcels containing suitable and/or previously occupied habitat for this species unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. It is recommended that monitoring efforts consisting of modified visual surveys based on the U.S. Geological Survey methodology will be conducted during the breeding season within suitable habitat. Trapping surveys are not proposed as part of the Biota Monitoring Program but may be performed in conjunction with other regional monitoring efforts. All other sensitive amphibian and reptile species in Priority Groups 2–4 (see Appendix 2 of this the Biota Monitoring Program) will be recorded through incidental observations made during other monitoring tasks. Focused surveys for species in Priority Groups 2–3 may be conducted at the discretion of the PSB in consultation with the POM, as funding allows. d. Sensitive Mammals The following protocols and monitoring intervals are recommended for Priority Group 1 mammal species: American badger (Taxidea taxus). Observations of American badgers or sign (e.g. dens) will be incidentally recorded during all monitoring activities. Monitoring of previously occupied burrows is recommended to occur annually unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. Monitoring efforts should consist of twice annual visits to previously occupied burrows, in winter and spring, to check for recent sign to determine status of the individual. Additional focused surveys may be completed at the discretion of the PSB in consultation with the POM. Sensitive mammal species in Priority Groups 2–4 (see Appendix 2 of this Biota Monitoring Program) will be recorded through incidental direct observations or detection of sign (e.g., scat, burrows, nests) made during other monitoring tasks. Focused surveys or monitoring at known burrow locations for mammal species in Priority Groups 2–3 may be conducted at the discretion of the PSB in consultation with the POM, as funding allows. 3.2.3 Invasive Species Monitoring a. Brown-headed Cowbird Monitoring and control of brown-headed cowbird (Molothrus ather) using trapping techniques are recommended to occur a minimum of once every three years in areas where least Bell’s vireo populations are present within the Preserve unless an alteration to the survey schedule is recommended by the PSB in consultation with the POM. Brown-headed cowbird parasitism rates determined during least Bell’s vireo monitoring efforts may be used to inform the timing and frequency of trapping efforts. If least Bell’s vireo nest monitoring results show low 2018-11-27 Agenda Packet Page 317 Biota Monitoring Program Otay Ranch 4-13 parasitism rates, then trapping may be halted for one to two years. If least Bell’s vireo nest monitoring results show medium to high parasitism rates, then annual trapping may be proposed. In the absence of nest monitoring, brown-headed cowbird trapping is recommended to be performed a minimum of once every three years. b. Woodland Pests Suitable oak and riparian woodland, forest, and scrub habitats will be monitored by the PSB for Kuroshio shot hole borer (Euwallacea sp.), gold-spotted oak borer (Agrilus auroguttatus), and other pest infestations following the EDRR method. Suspected occurrences of Kuroshio shot hole borer and gold-spotted oak borer will be recorded using GPS and reported to the POM. Samples will be submitted to the County Department of Agriculture for identification. A management and monitoring strategy will be developed should an infestation of this species be identified within the Preserve. 4.0 Climate Adaptation Strategy Climate change adaptation is defined by the National Wildlife Federation as “‘initiatives and measures to reduce the vulnerability of natural or human systems against actual or expected climate change effects” (National Wildlife Federation 2014). The monitoring strategies contained in the Biota Monitoring Program will provide the PSB and POM with information regarding the responses of species populations to the effects of climate change, as well as early detection of threats to sensitive populations. Management actions, such as invasive species control and habitat restoration and enhancement, will be used to improve the resiliency of populations of sensitive vegetation communities, plants, and animals that are considered the most susceptible to these effects. A cross-walk of biota monitoring tasks linked with climate adaptation strategies is shown in Table 2. Climate adaptation strategies will be incorporated into the annual work plan as part of annual management tasks. 2018-11-27 Agenda Packet Page 318 Biota Monitoring Program Otay Ranch 4-14 Table 2 Cross-walk of Biota Monitoring Tasks with Climate Change Adaptation Strategies Monitoring Task Purpose Botanical Resources Baseline Surveys for Vegetation Baseline surveys provide baseline biological data for vegetation communities and plant species present within the Preserve at the time a parcel is brought into the Preserve. These data can be used to track changes in vegetation community and/or plant species diversity or abundance due to the effects of climate change, as well as provide a baseline for recovery should a climate- related catastrophic event, such as fire or severe flooding, occur. Vegetation Community Monitoring Vegetation community monitoring will provide information related to climate-related responses, including type conversion or elevation shifts due to the effects of climate change-related phenomenon such as prolonged drought, altered hydrologic regime, the proliferation of non-native, invasive plant species, or other catastrophic events. Focused Surveys for Sensitive Plants Focused surveys will monitor the response of sensitive plant species populations that are susceptible to the effects of climate change (e.g., increased drought, proliferation of non-native plant species). Monitoring will inform management actions to reduce threats and improve the resiliency of high-priority populations. Management actions may include habitat enhancement and weed control in areas with high-priority sensitive plant populations. Invasive Species Monitoring Invasive species monitoring will provide information regarding new and emerging threats to sensitive habitats and species. Monitoring will inform management actions (e.g., weed control) to reduce threats and improve the resiliency of high-priority sensitive plant populations, as well as to prevent the establishment of new populations of high-priority invasive species. Zoological Resources Baseline Surveys for General Wildlife Baseline surveys will provide baseline biological data for wildlife species present within the Preserve at the time a parcel is brought into the Preserve. These data can be used to track changes in species diversity and abundance due to the effects of climate change, as well as provide a baseline for recovery should a climate-related catastrophic event, such as fire or severe flooding, occur. Focused Surveys for Sensitive Wildlife Focused surveys will monitor the response of sensitive wildlife species populations that are susceptible to the effects of climate change (e.g., reduced food availability, type conversion of suitable habitat). Monitoring will inform management actions to reduce threats and improve the resiliency of high- priority populations. Management actions may include habitat restoration and enhancement to expand the amount of suitable habitat available, create refugia, increase potential food sources, and connect fragmented or isolated habitat patches. Invasive Species Monitoring Invasive species monitoring will provide information regarding new and emerging threats to sensitive habitats and species. Monitoring will inform management actions (e.g., trapping and other control methods) to reduce threats to high-priority populations of sensitive wildlife species, as well as to prevent the establishment of new populations of high-priority invasive species. 2018-11-27 Agenda Packet Page 319 Biota Monitoring Program Otay Ranch 4-15 5.0 References Cited California, State of 2016 Natural Diversity Data Base. RareFind Version 5. Department of Fish and Game. Accessed online from http://www.dfg.ca.gov/biogeodata/cnddb/mapsanddata.asp. California Invasive Plant Council (Cal-IPC) 2016 Invasive Plant Inventory Database. Accessed online from http://www.cal- ipc.org/paf/. California Native Plant Society (CNPS) 2001 CNPS Botanical Survey Guidelines. Revised June 2. Accessed online from http://www.cnps.org/cnps/rareplants/forum.php. 2016 Inventory of Rare, Threatened, and Endangered Plants of California (online edition, v8-02). Accessed online from http://www.rareplants.cnps.org/ Chula Vista, City of (City) 2003 Multiple Species Conservation Program Subarea Plan. February. Consortium of California Herbaria 2016 Data provided by the participants of the Consortium of California Herbaria. Accessed online from http://www.ucjeps.berkeley.edu/consortium/. Jennings, M. R., and M. P. Hayes 1994 Amphibian and Reptile Species of Special Concern in California. Final report submitted to the California Department of Fish and Game, Inland Fisheries Division, Rancho Cordova, CA. Jepson Flora Project 2016 Jepson eFlora. Accessed online from http://ucjeps.berkeley.edu/interchange/. National Wildlife Federation 2014 Climate-Smart Conservation: Putting Adaptation Principles into Practice. Reiser, C. H. 2001 Rare Plants of San Diego County. Aquifir Press, Imperial Beach, CA. San Diego Association of Governments (SANDAG) 2012 Management Priorities for Invasive Non-native Plants – A Strategy for Regional Implementation, San Diego County, California. September. San Diego, County of 1997 Multiple Species Conservation Program County of San Diego Subarea Plan. 2009 San Diego Biological Information and Observation System. San Diego Geographic Information Source – JPA. Accessed online from http://www.sangis.org/download/index.html. 2018-11-27 Agenda Packet Page 320 Biota Monitoring Program Otay Ranch 4-16 San Diego, County of, and Chula Vista, City of 1993 Otay Ranch Resource Management Plan. October 28. San Diego Management & Monitoring Program (SDMMP) 2010 Multi-Taxa Database. 2013 Management Strategic Plan for Conserved Lands in Western San Diego County. 2015 Management Strategic Plan Monitoring Protocol for Rare Plant Occurrences on Conserved Lands in Western San Diego County. 2016 Master Occurrence Matrix. Accessed online from http://portal.sdmmp.com/gis_viewer.php. Sawyer, J.O., T. Keeler-Wolf, and J.M. Evens. 2009 A Manual of California Vegetation, Second Edition. California Native Plant Society, Sacramento, CA. Unitt, P. 2004 San Diego County Bird Atlas. United States Department of Agriculture (USDA) 2016 National Invasive Species Information Center. Plants: Early Detection and Rapid Response. Accessed online from http://www.invasivespeciesinfo.gov/plants/detection.shtml. U.S. Fish and Wildlife Service (USFWS) 2015 Species Observation Points. Provided by Carlsbad Field Office. 2018-11-27 Agenda Packet Page 321 Otay Ranch APPENDICES 2018-11-27 Agenda Packet Page 322 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 323 Otay Ranch APPENDIX 1 Biota Monitoring Program Plant Species Priority Groups 2018-11-27 Agenda Packet Page 324 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 325 Biota Monitoring Program Otay Ranch Page 4.1-1 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Priority Group 1—Annuals & Herbaceous Perennials Acanthomintha ilicifolia San Diego thornmint CE/FT 1B.1 NE, MSCP NE, 4-2 SO Bloomeria [=Muilla] clevelandii San Diego goldenstar –/– 1B.1 MSCP 4-2 SS/ ISV, IMG Brodiaea orcuttii Orcutt’s brodiaea –/– 1B.1 MSCP NE, 4-2 SO/ ISV, IMG Calochortus dunnii Dunn’s mariposa lily CR/– 1B.2 NE, MSCP NE, 4-3 VG Deinandra [=Hemizonia] conjugens Otay tarplant CE/FT 1B.1 NE, MSCP NE, 4-1 SS/ ISV, IMG Dicranostegia orcuttiana [=Cordylanthus orcuttianus] Orcutt’s bird’s-beak –/– 2B.1 MSCP 4-1 SL Dudleya variegata variegated dudleya –/– 1B.2 NE, MSCP NE, 4-1 SS/ ISV, IMG Eryngium aristulatum var. parishii San Diego button-celery CE/FE 1B.1 MSCP 4-2 VF Navarretia fossalis spreading navarretia [= prostrate navarretia] –/FT 1B.1 MSCP 4-2 VF Orcuttia californica California Orcutt grass CE/FE 1B.1 MSCP 4-2 SL & VF Packera [=Senecio] ganderi Gander’s ragwort [=Gander’s butterweed] CR/– 1B.2 MSCP 4-3 SO/ ISV, IMG 2018-11-27 Agenda Packet Page 326 Biota Monitoring Program Otay Ranch Page 4.1-2 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Pogogyne nudiuscula Otay mesa mint CE/FE 1B.1 MSCP 4-2 SL & VF Priority Group 1—Perennials Clinopodium [=Satureja] chandleri San Miguel savory –/– 1B.2 MSCP 4-2 SL/ IMG, ISV Cylindropuntia californica var. californica [=Opuntia parryi var. serpentina] snake cholla –/– 1B.1 NE, MSCP NE, 4-1 VG Fremontodendron mexicanum Mexican flannelbush CR/FE 1B.1 – – SL/ ISV, IMG Ericameria palmeri var. palmeri [=E. palmeri ssp. palmeri] Palmer’s goldenbush [=Palmer’s ericameria] –/– 1B.1 NE, MSCP NE, 4-2 VF Lepechinia ganderi Gander’s pitcher sage –/– 1B.3 NE, MSCP NE, 4-3 VG Monardella hypoleuca ssp. lanata felt-leaved monardella –/– 1B.2 MSCP NE, 4-3 VF Monardella stoneana [previously included in M. linoides ssp. viminea] Jennifer’s monardella –/– 1B.2 – – SL 2018-11-27 Agenda Packet Page 327 Biota Monitoring Program Otay Ranch Page 4.1-3 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Priority Group 2—Perennials Arctostaphylos otayensis Otay manzanita –/– 1B.2 MSCP 4-3 VF Ferocactus viridescens San Diego barrel cactus –/– 2B.1 MSCP 4-1 VG Hesperocyparis [=Cupressus] forbesii Tecate cypress –/– 1B.1 MSCP 4-3 VF Priority Group 3—Annuals Clarkia delicata Delicate clarkia [=Campo clarkia] –/– 1B.2 – – – Priority Group 3—Perennials Adolphia californica California adolphia –/– 2B.1 – – VG Ambrosia chenopodiifolia San Diego bur-sage –/– 2B.1 – – – Atriplex coulteri Coulter’s saltbush –/– 1B.2 – – VF Comarostaphylis diversifolia ssp. diversifolia summer holly –/– 1B.2 – – VG Euphorbia misera cliff spurge –/– 2B.2 – – VF Iva hayesiana San Diego marsh-elder –/– 2B.2 – – VG 2018-11-27 Agenda Packet Page 328 Biota Monitoring Program Otay Ranch Page 4.1-4 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Salvia munzii Munz’s sage –/– 2B.2 – – – Quercus dumosa Nuttall’s scrub oak –/– 1B.1 – – VF Quercus engelmannii Engelmann oak –/– 4.2 – – VF Priority Group 4 Artemisia palmeri San Diego sagewort –/– 4.2 – – – Bahiopsis [=Viguiera] laciniata San Diego viguiera [=San Diego County viguiera] –/– 4.2 – – – Chamaebatia australis southern mountain misery –/– 4.2 – – – Dichondra occidentalis western dichondra –/– 4.2 – – – Harpagonella palmeri Palmer’s grapplinghook –/– 4.2 – – – Juncus acutus ssp. leopoldii southwestern spiny rush –/– 4.2 – – – Myosurus minimus Little mousetail –/– 3.1 – – –* Ophioglossum californicum California adder’s-tongue –/– 4.2 – – – 2018-11-27 Agenda Packet Page 329 Biota Monitoring Program Otay Ranch Page 4.1-5 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Romneya coulteri Coulter’s matilija poppy –/– 4.2 – – – Selaginella cinerascens ashy spike-moss –/– 4.1 – – – Stipa diegoensis [=Achnatherum diegoense] San Diego needlegrass –/– 4.2 – – – Species Evaluated But Not Expected To Occur Acmispon prostratus [=Lotus nuttallianus] Nuttall’s lotus –/– 1B.1 MSCP 4-3 SO/ IMG Agave shawi var. shawii Shaw’s agave –/– 2B.1 NE, MSCP NE, 4-3 SL/ IMG Ambrosia pumila San Diego ambrosia –/FE 1B.1 NE, MSCP NE, 4-2 SO/ IMG Aphanisma blitoides aphanisma –/– 1B.2 MSCP 4-3 SL/ ISV, IMG Arctostaphylos glandulosa ssp. crassifolia Del Mar manzanita –/FE 1B.1 MSCP 4-3 VF/ ISV, IMG Arctostaphylos rainbowensis rainbow manzanita –/– 1B.1 – – VG Astragalus tener var. titi coastal dunes milkvetch CE/FE 1B.1 MSCP 4-3 – Atriplex parishii Parish’s brittlescale –/– 1B.1 – – VF Baccharis vanessae Encinitas baccharis [=Encinitas coyote brush] CE/FT 1B.1 NE, MSCP NE, 4-3 SO/ ISV, IMG 2018-11-27 Agenda Packet Page 330 Biota Monitoring Program Otay Ranch Page 4.1-6 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Berberis nevinii Nevin’s barberry CE/FE 1B.1 NE, MSCP NE, 4-3 – Brodiaea filifolia thread-leaved brodiaea [=thread-leaf brodiaea] CE/FT 1B.1 NE, MSCP NE, 4-3 SS/ ISV, IMG Brodiaea santarosae Santa Rosa brodiaea –/– 1B.2 – – SS/ ISV Ceanothus cyaneus Lakeside ceanothus –/– 1B.2 NE, MSCP NE, 4-3 VF Ceanothus verrucosus wart-stemmed ceanothus –/– 2B.2 MSCP 4-3 VF Centromadia [=Hemizonia] parryi ssp. australis southern tarplant –/– 1B.1 – – VF Chloropyron maritimum ssp. maritimum [=Cordylanthus maritimus ssp. maritimus] salt marsh bird’s-beak CE/FE 1B.2 MSCP NE, 4-1 SL/ IMG Chorizanthe orcuttiana Orcutt’s spineflower CE/FE 1B.1 – – SL/ IMG Chorizanthe procumbens [=var. albiflora] prostrate spineflower [=Fallbrook spine-flower] Corethrogyne [=Lessingia] filaginifolia var. linifolia Del Mar Mesa sand aster –/– 1B.1 MSCP 4-3 – 2018-11-27 Agenda Packet Page 331 Biota Monitoring Program Otay Ranch Page 4.1-7 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Dudleya blochmaniae ssp. blochmaniae Blochman’s dudleya –/– 1B.1 – – SL Dudleya brevifolia [=D. blochmaniae ssp. brevifolia] short-leaved dudleya [short-leaved live-forever] CE/– 1B.1 NE, MSCP NE, 4-3 SL/ IMG Dudleya viscida sticky dudleya –/– 1B.2 MSCP 4-3 SS/ IMG Erysimum ammophilum Sand-loving wallflower [=coast wallflower] –/– 1B.2 MSCP 4-3 SL/ ISV, IMG Hazardia orcuttii Orcutt’s hazardia CT/FC 1B.1 – – SL Lepechinia cardiophylla heart-leaved pitcher sage –/– 1B.2 NE, MSCP 4-3 SL/ IMG Lepidium latipes Dwarf pepper-grass –/– CBR – – – Monardella viminea [=M. linoides ssp. viminea] willowy monardella CE/FE 1B.1 NE, MSCP NE, 4-3 SL/ IMG Nolina cismontana chaparral nolina –/– 1B.2 – – SL/ ISV, IMG Nolina interrata Dehesa nolina [=Dehesa bear-grass] CE/– 1B.1 NE, MSCP NE, 4-3 SO/ ISV, IMG 2018-11-27 Agenda Packet Page 332 Biota Monitoring Program Otay Ranch Page 4.1-8 Appendix 1 Biota Monitoring Program Plant Species Priority Groups Species State/Federal Status (State of California 2016b & 2016c) CNPS Rare Plant Ranking (2016) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Pinus torreyana ssp. torreyana Torrey pine (native pop.) –/– 1B.2 MSCP 4-3 VF Physalis crassifolia [=greenei] Greene’s ground-cherry Pogogyne abramsii San Diego mesa mint CE/FE 1B.1 MSCP 4-3 VF Rosa minutifolia small-leaved rose CE/– 2B.1 MSCP 4-3 SS/ ISV, IMG Tetracoccus dioicus Parry’s tetracoccus –/– 1B.2 MSCP 4-3 SS/ ISV, IMG Phase 1 RMP Species Evaluated But No Longer Considered Sensitive Calamagrostis koelerioides [=C. densa] dense pine reedgrass [=dense reed grass] –/– CBR MSCP 4-3 – Caulanthus heterophyllus [=Caulanthus heterophyllus var. heterophyllus and Caulanthus stenocarpus] slender-pod jewelflower –/– CBR MSCP 4-2 – Solanum xanti [=tenuilobatum] Chaparral nightshade [=narrow-leaved nightshade] –/– CBR – 4-2 – 2018-11-27 Agenda Packet Page 333 Biota Monitoring Program Otay Ranch Page 4.1-9 Appendix 1 Biota Monitoring Program Plant Species Priority Groups CALIFORNIA NATIVE PLANT SOCIETY RARE PLANT RANKING 1B = Species rare, threatened, or endangered in California and elsewhere. These species are eligible for state listing. 2B = Species rare, threatened, or endangered in California but more common elsewhere. These species are eligible for state listing. 3 = Species for which more information is needed. Distribution, endangerment, and/or taxonomic information is needed. 4 = A watch list of species of limited distribution. These species need to be monitored for changes in the status of their populations. .1 = Species seriously threatened in California (over 80% of occurrences threatened; high degree and immediacy of threat). .2 = Species fairly threatened in California (20-80% occurrences threatened; moderate degree and immediacy of threat). .3 = Species not very threatened in California (<20% of occurrences threatened; low degree and immediacy of threat or no current threats known). CBR = Considered but rejected COUNTY’S MSCP SUBAREA PLAN NE = Narrow endemic MSCP = Multiple Species Conservation Program covered species CITY’S MSCP SUBAREA PLAN NE = Narrow endemic 4-1 = Species adequately conserved (Table 4-1) 4-2 = Species with known occurrences or suitable habitat within Chula Vista Subarea (Table 4-2) 4-3 = Species not likely to be found in the Chula Vista Subarea (Table 4-3) MANAGEMENT STRATEGIC PLAN SL = Species at risk of loss from the Management Strategic Plan Area. SO = Significant occurrence(s) at risk of loss from the Management Strategic Plan Area. SS = Species more stable but still requires species specific management to persist in the Management Strategic Plan Area. VF = Species with limited distribution in the Management Strategic Plan Area or needing specific vegetation characteristics requiring management. VG = Species not specifically managed for, but may benefit from vegetation management for VF species. ISV = Implement surveys to gather baseline data for managing the species. IMG = Inspect and implement management actions as necessary. 2018-11-27 Agenda Packet Page 334 Biota Monitoring Program Otay Ranch Page 4.1-10 Appendix 1 Biota Monitoring Program Plant Species Priority Groups REFERENCES CITED California Native Plant Society (CNPS) 2016 Inventory of Rare, Threatened, and Endangered Plants of California (online edition, v8-02). Accessed online from http://www.rareplants.cnps.org/ California, State of 2016a State and Federally Listed Endangered, Threatened, and Rare Plants of California. Natural Diversity Database. Department of F ish and Wildlife. April 2016b Special Vascular Plants, Bryophytes, and Lichens List. Natural Diversity Database. Department of Fish and Wildlife. April. Chula Vista, City of (City) 2003 Multiple Species Conservation Program Subarea Plan. February. San Diego, County of (County) 1997 Multiple Species Conservation Program County of San Diego Subarea Plan. San Diego Management & Monitoring Program (SDMMP) 2013 Management Strategic Plan for Conserved Lands in Western San Diego County. 2018-11-27 Agenda Packet Page 335 Otay Ranch APPENDIX 2 Biota Monitoring Program Wildlife Species Priority Groups 2018-11-27 Agenda Packet Page 336 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 337 Biota Monitoring Program Otay Ranch Page 4.2-1 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Priority Group 1 Actinemys [=Clemmys] marmorata pallida Western pond turtle CSC/– NE, MSCP 4-2 SL/ IMG Athene cunicularia hypugaea Burrowing owl CSC/– NE, MSCP 4-1 SL/ ISV Aquila chrysaetos canadensis Golden eagle CFP, WL/BEPA NE, MSCP 4-2 SO Branchinecta sandiegonensis San Diego fairy shrimp –/FE NE, MSCP 4-2 SO & VF Bufo californicus Arroyo toad CSC/FE NE, MSCP 4-2 SO/ ISV Campylorhynchus brunneicapillus sandiegensis Coastal cactus wren CSC/– NE, MSCP 4-1 SO Circus cyaneus hudsonius Northern harrier CSC/– MSCP 4-2 SO/ ISV Coccyzus americanus occidentalis Western yellow-billed cuckoo CE/FT NE – – Empidonax traillii extimus Southwestern willow flycatcher CE/FE NE, MSCP 4-2 SL Euphydryas editha quino Quino checkerspot –/FE NE 4-1 SL Euphyes vestris harbisoni Harbison dun skipper –/– NE – – Falco peregrinus anatum American peregrine falcon CFP/– NE, MSCP 4-2 VG 2018-11-27 Agenda Packet Page 338 Biota Monitoring Program Otay Ranch Page 4.2-2 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Lycaena hermes Hermes copper –/FC – – SL Mitoura thornei Thorne’s hairstreak –/– NE, MSCP 4-3 VF Polioptila californica californica Coastal California gnatcatcher CSC/FT MSCP 4-1 VF Streptocephalus woottoni Riverside fairy shrimp –/FE NE, MSCP 4-2 VF Taxidea taxus American [=mountain] badger CSC/– MSCP 4-2 SL Vireo bellii pusillus Least Bell’s vireo CE/FE NE, MSCP 4-1 VF Priority Group 2 Accipiter cooperi Cooper’s hawk WL/– MSCP 4-2 VG Agelaius tricolor Tricolored blackbird CSC/– MSCP 4-2 VF Aimophila ruficeps canescens Southern California rufous-crowned sparrow WL/– MSCP 4-1 VG Aspidoscelis hyperthrus beldingi Belding’s orange-throated whiptail CSC/– MSCP 4-2 VG Buteo regalis Ferruginous hawk WL/– MSCP 4-2 VG Felis concolor Mountain lion –/– MSCP 4-2 VG 2018-11-27 Agenda Packet Page 339 Biota Monitoring Program Otay Ranch Page 4.2-3 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Numenius americanus Long-billed curlew WL/– MSCP 4-1 VG Phrynosoma blainvillii [=coronatum blainvillii] Coast [=San Diego] horned lizard CSC/– MSCP 4-2 VF coastal & VG inland Plegadis chihi White-faced ibis WL/– MSCP 4-2 VG Odocoileus hemionus fuliginata Southern mule deer –/– MSCP 4-2 VG Sialia mexicana occidentalis Western blue-bird –/– MSCP 4-2 VG Priority Group 3 Accipiter striatus velox Sharp-shinned hawk WL/– – – VG Asio otus Long-eared owl CSC/– – – – Artemisiospiza [=Amphispiza] belli belli Bell’s sage sparrow WL/– – – VG Chaetodipus fallax fallax Northwestern San Diego pocket mouse CSC/– – – VG Cnemidophorus tigris multiscutatus Coastal whiptail –/– – – VG Crotalus ruber Red-diamond rattlesnake CSC/– – – VG Lepus californicus bennettii San Diego black-tailed jackrabbit CSC/– – – VF 2018-11-27 Agenda Packet Page 340 Biota Monitoring Program Otay Ranch Page 4.2-4 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Thamnophis hammondii Two-striped gartersnake CSC/– – – VG Priority Group 4 Chaetodipus californicus femoralis Dulzura pocket mouse CSC/– – – – Elanus leucurus White-tailed kite² CFP/– – – – Eremophila alpestris actia California horned lark WL/– – – – Eumops perotis californicus California mastiff bat CSC/– – – – Falco mexicanus Prairie falcon WL/– – – – Lanius ludovicianus Loggerhead shrike CSC/– – – – Neotoma lepida intermedia San Diego desert woodrat CSC/– – – – Eumeces skiltonianus interparietalis Coronado skink CSC/– – – – Salvadora hexalepis virgultea Coast patch-nosed snake CSC/– – – – Species Evaluated But Not Expected to Occur Branta canadensis Canada goose –/– MSCP 4-2 VG Buteo swainsoni Swainson’s hawk CT/– MSCP 4-2 VG 2018-11-27 Agenda Packet Page 341 Biota Monitoring Program Otay Ranch Page 4.2-5 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Charadrius alexandrinus nivosus Western snowy plover CSC/FT MSCP 4-1 SL Charadrius montanus Mountain plover CSC/– MSCP 4-3 – Egretta rufescens Reddish egret –/– MSCP 4-2 VG Haliaeetus leucocephalus Bald eagle CE, CFP/BEPA MSCP 4-2 VG Panoquina errans Wandering skipper –/– MSCP 4-1 VG Passerculus sandwichensis beldingi Belding’s savannah sparrow CE/– NE, MSCP 4-1 VF Passerculus sandwichensis rostratus Large-billed savannah sparrow CSC/– MSCP 4-1 VG Pelecanus occidentalis californicus California brown pelican CFP/– MSCP 4-2 VG Rana aurora draytonii California red-legged frog CSC/FT NE, MSCP 4-3 – Rallus obsoletus [=longirostris] levipes Light-footed Ridgway’s rail CE, CFP/FE NE, MSCP 4-1 SO Sternula antillarum browni California least tern CE, CFP/FE NE, MSCP 4-1 SS Thalasseus [=Sterna] elegans Elegant tern WL/– MSCP 4-2 VG 2018-11-27 Agenda Packet Page 342 Biota Monitoring Program Otay Ranch Page 4.2-6 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) Species Evaluated But No Longer Considered Sensitive Bubo virginianus Great horned owl –/– – – – Buteo jamaicensis Red-tailed hawk –/– – – – Buteo linteatus Red-shouldered hawk –/– – – – Falco sparverius American kestrel –/– – – – Lichanura trivirigata roseofusca [=Charina trivirgata] Rosy boa –/– – – – Otus kennicotti Western screech owl –/– – – – Tyto alba Barn owl –/– – – – 2018-11-27 Agenda Packet Page 343 Biota Monitoring Program Otay Ranch Page 4.2-7 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups Species State/Federal Status (State of California 2016a & 2016b) County’s MSCP Subarea Plan (1997) City’s MSCP Subarea Plan (2003) Management Strategic Plan Species Management Category/ Monitoring Activity Code¹ (SDMMP 2013) ¹Only the ISV and IMG activity codes from the Management Strategic Plan have been included. The remaining activity codes in the Management Strategic Plan are related to regional studies or management actions and are, therefore, not pertinent to the Biota Monitoring Program. FEDERAL CANDIDATES AND LISTED SPECIES STATE LISTED SPECIES FE = Federally listed endangered CE = State listed endangered FT = Federally listed threatened CT = State listed threatened FC = Federal candidate for listing CR = State listed rare BEPA = Bald Eagle Protection Act CFP = CDFW fully protected species CSC = CDFW species of special concern WL = CDFW watch list species COUNTY’S MSCP SUBAREA PLAN NE = Narrow endemic MSCP = Multiple Species Conservation Program covered species CITY’S MSCP SUBAREA PLAN NE = Narrow endemic 4-1 = Species adequately conserved (Table 4-1) 4-2 = Species with known occurrences or suitable habitat within Chula Vista Subarea (Table 4-2) 4-3 = Species not likely to be found in the Chula Vista Subarea (Table 4-3) 2018-11-27 Agenda Packet Page 344 Biota Monitoring Program Otay Ranch Page 4.2-8 Appendix 2 Biota Monitoring Program Wildlife Species Priority Groups MANAGEMENT STRATEGIC PLAN SL = Species at risk of loss from the Management Strategic Plan Area. SO = Significant occurrence(s) at risk of loss from the Management Strategic Plan Area. SS = Species more stable but still requires species specific management to persist in the Management Strategic Plan Area. VF = Species with limited distribution in the Management Strategic Plan Area or needing specific vegetation characteristics requiring management. ISV = Implement surveys to gather baseline data for managing the species. IMG = Inspect and implement management actions as necessary. REFERENCES CITED California Native Plant Society (CNPS) 2016 Inventory of Rare, Threatened, and Endangered Plants of California (online edition, v8-02). Accessed online from http://www.rareplants.cnps.org/. California, State of 2016a State & Federally Listed Endangered & Threatened Animals of California. Natural Diversity Database. Department of Fish and Wildlife. April. 2016b Special Animals. Department of Fish and Wildlife. April. Chula Vista, City of (City) 2003 Multiple Species Conservation Program Subarea Plan. February. San Diego, County of (County) 1997 Multiple Species Conservation Program County of San Diego Subarea Plan. San Diego Management & Monitoring Program (SDMMP) 2013 Management Strategic Plan for Conserved Lands in Western San Diego County. 2018-11-27 Agenda Packet Page 345 Otay Ranch ATTACHMENT 5 Preserve Configuration Preservation Summary 2018-11-27 Agenda Packet Page 346 Otay Ranch Page intentionally left blank 2018-11-27 Agenda Packet Page 347 Phase 2 Resource Management Plan Update Otay Ranch 5-1 Attachment 5 Preserve Configuration Preservation Summary Resource Preservation Standard Sensitive Vegetation Communities Alkali Meadow 72%1 Coastal Sage Scrub 70%2 Floodplain Scrub 95%1 Freshwater Marsh 95%1 Maritime Succulent Scrub 80%3 Native Grassland 25%4 Non-native Grassland - Oak Woodland 100% Riparian Forest/Woodland 100% Southern Interior Cypress Forest 100% Southern Willow Scrub 95%1 Vernal Pools 95%1 Sensitive Plant Species Acanthomintha ilicifolia San Diego thornmint 95%5 Adolphia californica California adolphia 75% Ambrosia chenopodiifolia San Diego bur-sage 75% Arctostaphylos otayensis Otay manzanita 80%5 Artemisia palmeri San Diego sagewort 75% Bahiopsis [=Viguiera] laciniata San Diego viguiera [=San Diego County viguiera] 75%6 Bloomeria [=Muilla] clevelandii San Diego goldenstar 54%5 Brodiaea orcuttii Orcutt’s brodiaea 75% Calamagrostis koeleriodes [=C. densa] dense pine reedgrass [=dense reed grass] N/A* Clinopodium [=Satureja] chandleri San Miguel savory 50% Calochortus dunnii Dunn’s mariposa lily 100% Caulanthus heterophyllus [=C. heterophyllus var. heterophyllus and C. stenocarpus] slender-pod jewelflower N/A* Chamaebatia australis southern mountain misery 50% Chorizanthe procumbens var. albiflora Fallbrook spine-flower 50% Clarkia delicata delicate clarkia 75%7 Comarostaphylis diversifolia ssp. diversifolia summer holly 75% 2018-11-27 Agenda Packet Page 348 Phase 2 Resource Management Plan Update Otay Ranch 5-2 Resource Preservation Standard Cylindropuntia californica var. californica [=Opuntia parryi var. serpentina] snake cholla 80%5 Deinandra [=Hemizonia] conjugens Otay tarplant 80% Dicranostegia orcuttiana [=Cordylanthus orcuttianus] Orcutt’s bird’s-beak 75%8 Dichondra occidentalis western dichondra 50% Dudleya variegata variegated dudleya 75%5 Eryngium aristulatum var. parishii San Diego button-celery (where occurring with vernal pool species) 100% Eryngium aristulatum var. parishii San Diego button-celery (all other occurrences) 95% Ferocactus viridescens San Diego barrel cactus 75%5 Fremontodendron mexicanum Mexican flannelbush 100% Harpagonella palmeri Palmer’s grapplinghook 75% Hesperocyparis [=Cupressus] forbesii Tecate cypress 75% Iva hayesiana San Diego marsh-elder 75%9 Juncus acutus ssp. leopoldii southwestern spiny rush 50% Lepechinia ganderi Gander’s pitcher sage 75% Lepidium latipes Dwarf pepper-grass 50% Monardella viminea [=M. linoides ssp. viminea] willowy monardella 100% Myosurus minimus little mousetail 100% Navarretia fossalis spreading navarretia [=prostrate navarretia] 100% Ophioglossum lusitanicum spp. californicum California adder's-tongue fern 50% Physalis greenei Greene's Ground-cherry 50%5 Pogogyne nudiuscula Otay mesa mint 95% Quercus engelmannii Engelmann oak 50% Romneya coulteri Coulter’s matilija poppy 50% Salvia munzii Munz’s sage 46%6 2018-11-27 Agenda Packet Page 349 Phase 2 Resource Management Plan Update Otay Ranch 5-3 Resource Preservation Standard Selaginella cinerascens ashy spike-moss 50% Stipa diegoensis [=Achnatherum diegoense] San Diego needle grass 75%5 Solanum xanti [=tenuilobatum] chaparral nightshade [=narrow-leaved nightshade] N/A* Sensitive Wildlife Species Cooper’s hawk Accipiter cooperii MSCP Western pond turtle Actinemys [=Clemmys] marmorata pallida MSCP Tricolored blackbird Agelaius tricolor MSCP Southern California rufous-crowned sparrow Aimophila ruficeps canescens MSCP Silvery legless lizard Anniella pulchra pulchra 80% Pallid bat Antrozous pallidus (roosting habitat) 100% Golden eagle Aquila chrysaetos canadensis MSCP Bell’s sage sparrow Artemisiospiza [=Amphispiza] belli belli 80% Long-eared owl Asio otus wilsonianus 100% Belding’s orange-throated whiptail Aspidoscelis hyperythra beldingi MSCP Western burrowing owl Athene cunicularia hypugaea MSCP San Diego fairy shrimp Branchinecta sandiegonensis (occupied habitat) 95% Arroyo toad Bufo californicus MSCP Coastal cactus wren Campylorhynchus brunneicapillus sandiegensis (viable populations) 100%10 Dulzura pocket mouse Chaetodipus californicus femoralis 80% Northwestern San Diego pocket mouse Chaetodipus fallax fallax 80% Mexican long-tongued bat Choeronycteris Mexicana (roosting habitat) 100% Spotted bat Euderma maculatum (roosting habitat) 100% Big free-tailed bat Nyctinomops macrotus (roosting habitat) 100% Northern harrier Circus cyaneus hudsonius MSCP Coastal whiptail Cnemidophorus multiscultatus tigris 80% San Diego banded gecko Coleonyx variegatus abbotti 80% 2018-11-27 Agenda Packet Page 350 Phase 2 Resource Management Plan Update Otay Ranch 5-4 Resource Preservation Standard Townsend’s western big-eared bat Corynorhinus townsendii townsendii (roosting habitat) 100% Red diamond rattlesnake Crotalus ruber 80% San Diego ring-necked snake Diadophis punctatus similis 80% Southwestern willow flycatcher Empidonax traillii extimus MSCP California horned lark Eremophila alpestris actia 80% Coronado skink Eumeces skiltonianus interparietalis 80% Western mastiff bat Eumops perotis californicus (roosting habitat) 100% Quino checkerspot Euphydryas editha quino MSCP for City and 100% for County Harbison dun skipper Euphyes vestris harbisoni 100% Yellow-breasted chat Icteria virens auricollis 80% California mountain kingsnake Lampropeltis zonata (San Diego population) 100% Loggerhead shrike Lanius ludovicianus 80% San Diego black-tailed jackrabbit Lepus californicus bennettii 80% Rosy boa Lichanura trivirgata roseofusca N/A* Hermes copper Lycaena hermes 100% California leaf-nosed bat Macrotus californicus (roosting habitat) 100% Thorne’s hairstreak butterfly Mitoura thornei MSCP San Diego desert woodrat Neotoma lepida intermedia 80% Southern grasshopper mouse Onychomys torridus ramona 80% Pacific pocket mouse Perognathus longimembris pacificus 100% Coast horned lizard Phrynosoma coronatum (San Diego/blainvillii pop.) MSCP Coastal California gnatcatcher Polioptila californica californica (known occurrences) 52%2 California red-legged frog Rana aurora draytonii MSCP Coast patch-nosed snake Salvadora hexalepis virgultea 80% Yellow warbler Setophaga [=Dendroica] petechia 80% Riverside fairy shrimp Streptocephalus woottoni MSCP 2018-11-27 Agenda Packet Page 351 Phase 2 Resource Management Plan Update Otay Ranch 5-5 Resource Preservation Standard Western spadefoot Spea hammondii 80% Two-striped gartersnake Thamnophis hammondii 80% Least Bell’s vireo Vireo bellii pusillus MSCP Sandstone night lizard Xantusia gracilis 80% Steep Slopes Steep Slopes 83% NOTES: The preservation standards contained within this table represent overall goals for the Otay Ranch Preserve; the standards may be re-evaluated and refined at the project level. * = As shows within Attachment 4, Appendix 1 and Appendix 2, these species were evaluated within the Phase 1 RMP but are no longer considered sensitive 1 = The Preserve has been designed to achieve this standard. However, restoration for impacts is required at a minimum 1:1 ratio to ensure no net loss of wetlands or vernal pools. Mitigation ratios shall be determined by the appropriate public agency at the time of impacts. 2 = The restoration requirement to achieve this standard was eliminated by County Board of Supervisors General Plan Amendment 06-012 and City Council Resolution 2006-155. 3 = 56-acre minimum restoration requirement to achieve this standard. 4 = The Preserve has been designed to achieve this standard. Restoration for impacts is required at a 1:1 to 3:1 ratio. 5 = The Preserve has been designed to achieve this standard. However, impacted plants must be re- established or translocated (e.g. salvaged or propagated from seed) into protected open space to achieve this standard, according to the methods specified in the GDP/SRP EIR Findings of Fact. 6 = The Preserve has been designed to achieve this standard. Restoration for impacts to coastal sage scrub dominated by these species (e.g. greater than 50 percent relative shrub cover) is required at a 2:1 ratio. 7 = Preservation standard is 100% for the population in the canyon in northeastern Jamul Mountains. 8 = Preservation standard is 100% preservation is required for the population in the canyon south of the San Diego Air Sports Center. All canyon slopes in this area are required to be preserved in open space to avoid potential impacts. 9 = This species shall be restored at a 2:1 ratio in drainages that have been disturbed. 10 = Habitat restoration, creation, and enhancement is required for unavoidable impacts to occupied habitat to achieve this standard. Mitigation ratios for occupied habitat and potential habitat will be based on accepted standards by the appropriate agency at the time of impacts. 2018-11-27 Agenda Packet Page 352 Phase 2 Resource Management Plan Update Otay Ranch 5-6 Page intentionally left blank 2018-11-27 Agenda Packet Page 353 P a g e | 1 November 27, 2018 File ID: 18-0535 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED IN THE RESOLUTION RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY On December 15, 2015, Gene Cipparone Architect, Inc. (Applicant), submitted a Design Review and Conditional Use Permit application for approval of a 2,380 square-foot automated carwash building with vacuum stations and associated parking and landscaping on a 0.55-acre site located at 495 Telegraph Canyon Road (the “Project”). The DR and CUP were approved by the Planning Commission on January 10, 2018. On January 18, 2018, an Appeal of the Planning Commission’s decision was filed by Rod Bisharat (Appellant). The appeal is based on previously stated opposition to the proposed Project due to neighbors’ concerns with the Project features. The Appeal contends that (1) the statements and evidence relied upon by the Planning Commission were inaccurate; and (2) the findings of the Planning Commission are not supported by the information provided. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a categorical exemption pursuant to Section 15332 of the State CEQA Guidelines. Thus, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION At its meeting of January 10, 2018, the Planning Commission voted 4-0-0 to approve the Design Review Permit Resolution and the Conditional Use Permit Resolution to develop the subject Site with the proposed Project with the condition that the “Applicant shall replace the 6-ft. wall with a 9-ft. wall along the northwestern portion of the property.” 2018-11-27 Agenda Packet Page 354 P a g e | 2 DISCUSSION On December 15, 2015, the Applicant, Gene Cipparone Architect, Inc., submitted a Design Review (DR) and Conditional Use Permit (CUP) application for approval of a 2,380 square-foot automated carwash building with vacuum stations with associated parking and landscaping on a 0.55-acre site located at 495 Telegraph Canyon Rd. Currently, the site contains a one-story building with two tenants, an auto repair and dry cleaners. Other uses on the site include a Goodwill drop off bin, can and bottle recycling center, and a food truck (see Locator Map, Attachment 1). All existing structures or uses will be removed from the site. Pursuant to Chula Vista Municipal Code (CVMC) Section 19.14, a Conditional Use Permit is required for a carwash. Normally, a project such as this would be approved by the Zoning Administrator. However, due to the issues and concerns raised by an adjacent neighbor, per Section 19.14.050 of the Chula Vista Municipal Code, the Zoning Administrator referred the matter to the Planning Commission for review. On October 4, 2017, as the Project was being reviewed and evaluated by City staff for presentation to the Planning Commission, a letter was received by staff from Procopio, a San Diego land use law firm, on behalf of Judith Wilson, a Chula Vista property owner (the “October Procopio Letter”). The October Procopio Letter contained a series of comments on the Noise Analysis Report. The comments allege that the Project does not comply with the City’s Noise regulations, and that certain findings cannot be made by the approving authority. City staff reviewed the letter, and the City’s Noise Consultant, Eilar Associates, Inc., prepared a memorandum dated October 13, 2017 responding to the comments in the letter (the “October Eilar Memorandum”). The October Eilar Memorandum and the October Procopio Letter were presented to the Planning Commission at its hearing of January 10, 2018, and were included as Attachment’s 4 and 5 of the Planning Commission Staff Report. Staff’s and Eilar Associates, Inc. response to the letter demonstrates that all the evidence to support the findings required by the Project approval have been met and made. Furthermore, staff’s response shows the Project’s consistency with, and implementation of, the vision, objectives and policies of the City’s General Plan and consistency with the development regulations and standards of the CVMC. Between January 4, 2018 and January 9, 2018, prior to the Planning Commission meeting, four letters were submitted to the Planning Commission (see Response Letters to Planning Commission, Attachment 3). One of the letters was from Procopio on behalf of Judith Wilson (the “January Procopio Letter”), and the remaining letters were from Rod Bisharat (the Appellant), Lorna Hardin, and Judith Wilson. The January Procopio Letter again alleged that the Project is inconsistent with the Chula Vista Municipal Code and that the required findings cannot be made. City staff reviewed the letters and the City’s Noise Consultant, Eilar Associates, Inc., prepared a second memorandum letter dated January 9, 2018 rebutting the comments in the letter (the “January Eilar Memorandum”). The January Eilar Memorandum stated that the Project is consistent with and implements the vision, objectives and policies of the City’s General Plan and is consistent with the development regulations and standards of the Chula Vista Municipal Code. Staff reviewed and presented the proposed Project to the Planning Commission at its meeting of January 10, 2018 for consideration and recommended approval. As part of the Agenda packet, staff included a memorandum responding to the October Procopio Letter (see Attachment’s 4 and 5 of the Planning Commission Agenda Packet). The January Procopio Letter and the January Eilar Memorandum, in addition 2018-11-27 Agenda Packet Page 355 P a g e | 3 to letters received from Rod Bisharat, Lorna Hardin, and Judith Wilson, were provided to the Planning Commission on the dais. The comments in the letters were addressed by staff at the Planning Commission hearing. After considering all the information in the Agenda packet, staff’s presentation, and all public testimony, the Planning Commission approved the Project, subject to conditions (see Planning Commission Minutes, Attachment 4). On January 18, 2018, an Appeal of the Planning Commission’s decision was filed by Rod Bisharat (see Attachment 5). The Appeal is based on previously stated opposition to the proposed Project due to neighbors’ concerns with the Project features. The Appeal states that there is (1) factual error in accepting Caltrans’ letter allowing the new entrance on Telegraph Canyon Road to be an enter/exit driveway; (2) factual error in accepting the County of San Diego’s closure letter as evidence of soil at former gas station no longer contaminating the site; (3) findings not supported since no CEQA analysis was done or a traffic study for the impacted intersection of Halecrest Drive and Telegraph Canyon Road; (4) findings not supported since the Planning Commission failed to address, resolve issues, or make findings regarding noise, traffic, driveway entrance/exit, and contaminated soil issues. Staff reviewed the Appeal and determined that: (1) The decision of the Planning Commission was based on an accurate review of the goals, objectives and policies of the City’s General Plan and the CVMC, as well as, the evidence presented to support the decision; (2) The Planning Commission considered all the information related to the Project, the goals, objectives, and policies of the City’s General Plan as well as the provisions of the California Environmental Quality Act. The Appeal does not provide any new reliable information supporting the Appellant’s case. The Appeal is based on the same information that was presented by the Appellants to City staff and the Planning Commission at its meeting of January 10, 2018. The information presented to staff and to the Planning Commission does not support denial of the Project; and (3) The findings contained in the staff report to the Planning Commission and made by the Planning Commission support approval of the Project. Staff finds that there is no basis for granting of the Appeal, and, therefore, staff concludes that the Appeal should be denied. The remainder of this staff report describes the subject site and Project, and provides an analysis of the Appeal and staff’s detailed response to the Appeal. The detailed analysis of the Project and its consistency with the General Plan including the required findings is also contained in the Planning Commission’s agenda packet, which is attached to this staff report and incorporated herein, as well as in the City Council Resolution attached to this Staff Report. 2018-11-27 Agenda Packet Page 356 P a g e | 4 Project Site Characteristics: The 0.55-acre project site (the “Project Site”) is located in the western portion of Chula Vista. The Project Site contains a one-story building with two tenants, an auto repair and dry cleaners. Other uses on the site include a Goodwill drop off bin, can and bottle recycling center, and a food truck, while the remaining portion of the Project Site is vacant. The Project Site is surrounded by commercial retail to the north, east, and south and an apartment complex is located to the west (Attachment 1, Locator Map). Summary of Surrounding Land Uses General Plan Zoning Current Land Use Site: Commercial Office, CO Central Commercial, CCD Auto Shop/Dry Cleaners South: 805 Freeway off-ramp 805 Freeway off-ramp 805 Freeway off-ramp Residential Medium High Apartment Residential, R3GP Multi-Family Condos North: Commercial, CO Commercial Office, COP Dentist Residential RLM Single Family Residential, R1 Single-Family Homes East: Commercial Office, CO Central Commercial, CCD Arco Gas Station West: 805 Freeway 805 Freeway 805 Freeway Project Description The proposal includes a one-story 2,380 square-foot automated carwash building with vacuum stations located within the parking lot. The proposed building consists of an 85-ft. carwash tunnel with skylights above and blowers at the end of the carwash tunnel to dry the vehicles. There are also restrooms, vending machines, office space, and equipment room for the carwash. Customers may access the site through two driveways on Halecrest Drive or Telegraph Canyon and loop around to the western portion of the Project Site to the pay stations. Customers will select their desired carwash selection, pay for the carwash, and then proceed to drive their vehicle through the carwash tunnel. Customers do not exit their vehicles. They also have the option to use a vacuum station to vacuum their vehicles. A canopy extending the full length of the parking spaces provides shade for the vacuum stations. Compliance with Development Standards The following Project Data Table shows the development regulations along with the Applicant’s proposal to meet said requirements: Assessor’s Parcel Number:639-080-68-00 Current Zoning: Central Commercial (CCD) General Plan Designation:Central Office (CO) Lot Area:0.55 acres 2018-11-27 Agenda Packet Page 357 P a g e | 5 PARKING REQUIRED: Parking spaces, broken down as follows: Carwash employees: one space for each employees (3) Carwash Vacuum Station One space per vacuum station (12) Total: 15 parking spaces PARKING PROPOSED: Handicapped= 1 space Regular=14 spaces Total: 15 parking spaces SETBACKS/HEIGHT REQUIRED: Front: 10 feet Exterior Sides: 10 feet Rear: 0 Height: 45 feet SETBACKS/HEIGHT PROPOSED: 197 feet 33 & 224 feet 0 feet 28 feet Appeal: On Thursday, January 18, 2018, Rod Bisharat submitted an Appeal of the Planning Commission’s January 10, 2018 decision. Analysis Staff has reviewed and analyzed the Appeal and offers the following analysis. The Appellant indicates they are appealing “the procedure, actions and approval” of the Project by the Planning Commission because: a) Factual error in accepting Caltrans’ letter allowing the new entrance on Telegraph Canyon Road to be an enter/exit driveway; b) Factual error in accepting County of San Diego’s closure letter as evidence of soil at former gas station no longer contaminating the site; c) Findings not supported since no CEQA analysis was done or a traffic study for the impacted intersection of Halecrest Drive and Telegraph Canyon Road; d) Findings not supported since the Planning Commission failed to address, resolve issues, or make findings regarding noise, traffic, driveway entrance/exit, and contaminated soil issues. Staff’s response to the Appeal is that these statements, as basis for the Appeal, are unsupported and do not represent cause to reverse the Planning Commission’s decision. The statements are unsupported because the Appellants do not provide any new specific evidence indicating that the statements and findings relied upon by the Planning Commission are inaccurate. Appellant’s Appeal reiterates the information proffered at the Planning Commission hearing. No new information has been provided by the Appellant. Staff’s analysis and all the information presented to the Planning Commission in the agenda packet are accurate and supported by substantial evidence in the record of the Planning Commission’s proceedings as well as being based on the vision, objectives and policies of the City’s 2005 General Plan and the development standards, regulations, and design guidelines contained in the Design Manual. As shown in the attached Planning Commission Agenda Packet (Report, Resolutions, and Attachments), the proposed Project is consistent with the vision, objectives and policies of the General Plan and the regulations of the Chula Vista Municipal Code. The General Plan and the Design 2018-11-27 Agenda Packet Page 358 P a g e | 6 Manual envision the area with commercial uses that contribute to create a vibrant and attractive area. Today, the parcel within the CCD Zone is developed with a retail and automobile repair use. Additionally, the proposed Project has been designed to meet the development standards, regulations and design guidelines of the Design Manual. The Project is also fully compliant with the City Noise Ordinance. Exhibit A of the Appeal Letter is presented as the “basis or evidence” for the Appeal. Included are documents that were submitted to the City on January 8, 2018. As indicated earlier in this report, the letter from Rod Bisharat was submitted to the Planning Commission the night of the hearing (January 10th) and was considered by the Planning Commission as part of its decision to adopt the Addendum and approve the Project. Exhibit B of the Appeal Letter, reiterates Judith Wilson’s concerns of inadequate noise control from the Project Site and that the findings required for both a CEQA Exemption and the CUP cannot be made without appropriate and effective noise mitigation. As part of the deliberations at the Planning Commission meeting, City staff addressed the contents of the Appeal letter. Since the responses to the letters submitted to the Planning Commission were delivered verbally by staff at the hearing, staff provides the following written responses for Council’s consideration. On March 20, 2018, a letter was received by staff from Schwartz Semerdjian, a San Diego land use law firm, on behalf of Rod Bisharat, the Appellant (see Schwartz Semerdjian Letter No. 1, Attachment 6). The letter from Schwartz Semerdjian again alleged that the Project does not comply with the California Environmental Quality Act (CEQA), City’s Traffic and Noise regulations. The comments in the letter were previously addressed by staff at the Planning Commission hearing. Following is a summarized list of issues in the Appeal letter (in italicized font) followed by a staff response as to how that issue was addressed as part of the Project review process. The below responses were provided verbally at the Planning Commission hearing. Driveway Exit “Factual error- applicant permitted an exit onto Telegraph Canyon Road. Caltrans/City previously precluded this when new entrance lane onto highway #805 was constructed.” Upon initial submittal of the Project, staff routed a set of project plans to Caltrans for their review. Caltrans submitted a letter dated March 9, 2016 regarding their review of the Project. On November 16, 2016, the Applicant contacted Caltrans via e-mail, requesting clarification on the right-of-way fence. On March 21, 2017, at staff’s suggestion, the Applicant provided the final plans to Caltrans for their final review. On March 22, 2017, Caltrans responded via e-mail and a letter dated October 3, 2017 (See Caltrans Letter, Attachment 7). Caltrans again stated they had no opposition to the project and showed an exhibit of the driveway and how it met the minimum length of 50-ft. distance from the freeway on-ramp. The exhibit also showed it as being an entrance/exit driveway. At no time during the review process did Caltrans notify staff that this was to be an entrance only driveway. During the Planning Commission meeting and also in the Appeal letter, Exhibit A, the Appellant stated he contacted Caltrans and was verbally told this should be an entrance only driveway. The Appellant did not 2018-11-27 Agenda Packet Page 359 P a g e | 7 provide a letter from Caltrans to this effect. At the Planning Commission meeting, staff clarified that the driveway is within Caltrans jurisdiction, and if Caltrans wanted it as an entrance only driveway, they have the right to require this, but have yet to inform the City. After the Planning Commission meeting, staff contacted Caltrans asking for clarification. Caltrans provided a letter dated March 16, 2018 (see Caltrans Response Letter, Attachment7) stating the entrance/exit is sufficient with Caltrans. Soil Contamination “Factual error-Commission accepted closure letter as evidence soil at former gas station not contaminated.” “Findings Not Supported- Planning Commission failed to address, resolve issues, or make findings regarding issues set forth… how handling of on site water would not contribute to off site migration from contaminated soils.” A Phase 1 Environmental Site Assessment dated March 23, 2016 was prepared by Ninyo & Moore Geotechnical and Environmental Services Consultants. The report noted a gasoline service station, which formerly operated on the Project Site, had two documented unauthorized releases that impacted the soil. In both instances, the County of San Diego opened a case to resolve the issue. The first case was closed in 2002 and the second case in 2004. The contamination was cleaned up on the site to the satisfaction of the County of San Diego. Since that time, no additional contaminants have been found on the site. The Appellant has not provided factual evidence to the contrary. In an effort to provide further clarification regarding the location of the contaminants on the site, and how the Project will impact the soil, if at all, the Applicant submitted a Soil Management Plan (SMP) dated May 15, 2018 and an Addendum to Soil Management Plan (ASMP) dated June 27, 2018 prepared by CTE, Inc. to the County of San Diego Department of Environmental Health Voluntary Assistance Program (VAP) for review. The County of San Diego requires this report to be submitted for review and approval prior to construction of the Project. The reports describe the reuse and disposal of soils to be excavated on the site during grading. Approximately 550 cubic yards of impacted soil will be generated and either reused on the site (meeting onsite reuse criteria), disposed of at a landfill, or reused as inert soil as determined by the RWQCB Conditional Waiver 10 of the Order R9-2014-0041. Soils meeting hazardous waste criteria will be disposed of at an appropriate facility. A Community Health and Safety Plan (CHSP) was also submitted to the County of San Diego Department of Environmental Health outlining proposed safeguards for the community due to the excavation, stockpiling and loading of soils generated during grading. On July 3, 2018, the SMP, ASMP, and CHSP were approved by the County of San Diego Department of Environmental Health (see County of San Diego Approval Letter, Attachment 8). The Applicant will continue to work with the County of San Diego throughout the grading process to ensure compliance. Traffic “Findings Not Supported. No CEQA analysis done. Project permitted without traffic analysis or traffic study at an impacted intersection at Halecrest and Telegraph Canyon Road.” 2018-11-27 Agenda Packet Page 360 P a g e | 8 The Project was analyzed by the City’s Traffic Engineer and the determination was made that trips associated with the Project do not result in a significant traffic impact (see Attachment 9, City Traffic Engineer Response Letter). There were also concerns regarding queuing on Halecrest Drive from vehicles leaving the Project Site. The Appellant assumed this would block motorists from being able to exit the Arco Gas Station to the east. The City’s Traffic Engineer explained the timing of the traffic signals and how long each vehicle will be waiting at a signal. The City Traffic Engineer indicated that there will be no issues with the queuing on Halecrest Drive. At maximum capacity, one vehicle will exit the carwash tunnel every minute. Customers will then have the option to use the vacuum stations. At the Planning Commission meeting, the Applicant explained the typical operation at other San Diego carwash locations. Approximately 15-20 vehicles are on-site at once and stay on the site for approximately 15-20 minutes after using the vacuum stations. The peak hours for this Project are from 10:00 a.m. to 4:00 p.m. which does not conflict with the intersections peak traffic times of 6:00 a.m. to 9:00 a.m. and 6:30 p.m. to 7:30 p.m. In accordance with City Staff’s suggestion, the Applicant previously agreed to reduce the hours of operation and open at 8:00 a.m. instead of 7:00 a.m., to avoid interfering with rush hour traffic. Therefore, the City’s Traffic Engineer does not see this as an issue and believes the Project will not cause queuing issues on Halecrest Drive. (See Attachment 9, City Traffic Engineer Response Letter). On October 3, 2018, a letter was received from Schwartz Semerdjian, representing the Appellant, disputing the City Traffic Engineer’s letter and requested a Traffic Study to be prepared to assess any additional cumulative impacts (See Attachment 10, Schwartz Semerdjian Letter No. 2). A Traffic Study, dated November 12, 2018, by Urban Systems Associates, Inc., was prepared to address the Appellant’s concerns (See Attachment 11,Traffic Study)._The Traffic Study concluded that the proposed Project would not result in any significant impacts to the Project’s access point or surrounding roadways. Noise “Findings Not Supported- Planning Commission failed to address, resolve issues, or make findings regarding issues set forth in attached Exhibit A and B.” A Noise Analysis Report dated August 7, 2017, by HMMH was prepared to assess the potential noise impacts of the Project. The proposed carwash building is to be constructed along the rear property line. The carwash driers within the carwash tunnel are located along the eastern property line, furthest away from the single-family residential homes. A 6 ft. and 12-ft. solid wall will be provided along the property line as a project feature. The Noise Analysis Report found that the proposed carwash will be consistent with the City of Chula Vista Noise Standards. Several vacuum stations will be provided within the parking lot area for customers to use under a canopy. The mechanical equipment for the vacuum stations will be located within the carwash building and fully enclosed. Per the Project’s Conditions of Approval, no activity shall occur past 8:00 p.m. on the Project Site. Therefore, the carwash and vacuum stations will not exceed the nighttime noise standard for adjacent residential or commercial uses. Hours of operation for the carwash will be from 8:00 a.m.-8:00 p.m., seven days a week. 2018-11-27 Agenda Packet Page 361 P a g e | 9 On October 4, 2017, a letter was received from Procopio, representing an adjacent neighbor, requesting revisions to the Noise Analysis Report (Attachment 5 of the Planning Commission Agenda Packet). After review of their concerns, the City’s Third-Party Noise Consultant, Eilar Associates, Inc., provided a response memorandum (Attachment 4 of the Planning Commission Agenda Packet) indicating the acoustical report prepared by HMMH was adequate. Therefore, no further revisions of the Noise Analysis Report are required. On January 4, 2018, another letter was received from Procopio, representing an adjacent neighbor, requesting revisions to the Noise Analysis Report. Upon review of their concerns, the City’s Third-Party Noise Consultant, Eilar Associates, Inc., provided a second response memorandum, again indicating the acoustical report prepared by HMMH was adequate and rebutting the assertions contained in Procopio’s letters. The two letters and the City’s Third Party Noise Consultant responses were provided to the Planning Commissioners at the hearing. The Appellant has not provided any factual evidence to the contrary. On September 13, 2018, a letter was received from Peter Watry, representing an adjacent neighbor, requesting a condition be added to the City Council Resolution as to the Project not exceeding the noise standard (See Attachment 12, Peter Watry Letter). Per Condition No. III.2 of the CUP15-0023 Planning Commission Resolution, the Project is required to meet Title 19 of the Chula Vista Municipal Code, which includes the noise thresholds. The Project shall also comply with the Noise Study approved by the Planning Commission. Therefore, no additional condition of approval is necessary. Conclusion The Project will provide new investment and site improvements that will contribute to, revitalize and enhance the Project Site and the neighborhood. The Project’s central location in the City and along one of the City’s major corridors will provide convenient access for residents to obtain a service in close proximity. The Project Site will be developed with a quality project that is consistent with the vision, objectives and policies of the General Plan. The Project has been designed to meet the development regulations and design guidelines of the Design Manual. Regarding the driveway exit, soil contamination, traffic, and noise, the Project has met the City’s requirements. Staff has reviewed and analyzed the Appeal and has determined that the Appeal has no merit and should be denied based on the following: 1) The decision of the Planning Commission was based on an accurate interpretation of the goals, objectives and policies of the City’s General Plan, Design Manual, and the CVMC. 2) The Planning Commission considered all the information and testimony related to the Project, the goals, objectives, and policies of the City’s General Plan, Design Manual, and the Chula Vista 2018-11-27 Agenda Packet Page 362 P a g e | 10 Municipal Code, as well as the provisions of the California Environmental Quality Act. The Appeal does not provide any new reliable information supporting the Appellant’s case. 3) The findings contained in the Staff Report to the Planning Commission and made by the Planning Commission, attached hereto and incorporated herein, fully support approval of the Project. Based on this conclusion and all the information contained in this Staff Report, City Council Resolution and Attachments, as well as the Planning Commission Staff Report, Planning Commission Resolutions and Attachments, all incorporated herein by this reference, staff finds that there is no basis for granting of the Appeal, and, therefore, staff concludes that the Appeal should be denied. Staff recommends that the City Council adopt the Resolution presented with this Staff Report and deny the Appeal and affirm the Planning Commission decision to approve the Project. DECISION-MAKER CONFLICT No Property within 500 feet 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 Project implements the Economic Vitality, Healthy Community, Strong and Secure Neighborhoods, and Connected Community Strategic goals because the Project represents an investment in the construction of a commercial building and all its infrastructure; the construction of the Project will provide an automated carwash facility; the Project also contributes to the City’s Strategic Goals by providing construction of a development project that is consistent with the goals and objectives of the City’s General Plan and the development standards of the City of Chula Vista Municipal Code in a manner that ensures public health and safety of the community. CURRENT-YEAR FISCAL IMPACT All costs associated with processing the Project, including the Appeal, are borne by the Applicant, resulting in no net impact to the General Fund or Development Services Fund. The Appellant paid the required filing fee for the Appeal. Costs associated with the processing of future implementing permits, will also be recovered by permit and processing fees. ONGOING FISCAL IMPACT There is no ongoing fiscal impact to the City as a result of this action. 2018-11-27 Agenda Packet Page 363 P a g e | 11 ATTACHMENTS 1. Locator Map 2. Planning Commission Agenda Packet 3. Response Letters to Planning Commission 4. Planning Commission Minutes 5. Appeal from Rod Bisharat 6. Schwartz SemerdjianLetter No. 1 7. Caltrans Response Letter 8. County of San Diego Approval Letter 9. City Traffic Engineer Response Letter 10. Schwartz Semerdjian Letter No. 2 11. Traffic Study 12. Peter Watry Letter Staff Contact: Caroline Young, Associate Planner 2018-11-27 Agenda Packet Page 364 2018-11-27 Agenda Packet Page 365 2018-11-27 Agenda Packet Page 366 2018-11-27 Agenda Packet Page 367 2018-11-27 Agenda Packet Page 368 2018-11-27 Agenda Packet Page 369 2018-11-27 Agenda Packet Page 370 2018-11-27 Agenda Packet Page 371 2018-11-27 Agenda Packet Page 372 2018-11-27 Agenda Packet Page 373 2018-11-27 Agenda Packet Page 374 2018-11-27 Agenda Packet Page 375 2018-11-27 Agenda Packet Page 376 2018-11-27 Agenda Packet Page 377 2018-11-27 Agenda Packet Page 378 2018-11-27 Agenda Packet Page 379 2018-11-27 Agenda Packet Page 380 2018-11-27 Agenda Packet Page 381 2018-11-27 Agenda Packet Page 382 2018-11-27 Agenda Packet Page 383 2018-11-27 Agenda Packet Page 384 2018-11-27 Agenda Packet Page 385 2018-11-27 Agenda Packet Page 386 2018-11-27 Agenda Packet Page 387 2018-11-27 Agenda Packet Page 388 2018-11-27 Agenda Packet Page 389 2018-11-27 Agenda Packet Page 390 2018-11-27 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Page 508 2018-11-27 Agenda Packet Page 509 2018-11-27 Agenda Packet Page 510 2018-11-27 Agenda Packet Page 511 e Case Closure Summary - Leaking Underground Fuel Storage Tank Program 111. RELEASE AND SITE CHARACTERIZATION INFORMATION IContinuedl H 12571.002 MAXIMUM DOCUMENTED CONTAMINANT CONCENTRATIONS -·BEFORE AND AFTER CLEANUP Contaminant Soll :nam Water1cpm) l.iontamtnant ~Oii :nnm vvater mom1 Set ore Attar Bero re Aner i:Jefore "ner aero re After TPH (Gas) 2400 2400 NIA NIA Ettwlbennn& 9.3 9.3 NIA N/A .. Benzene <2 <2 NIA N/A Xv lane 200. 200 NIA N/A Toluene 11 11 N/A NIA MTaE <14 <14 NIA : NIA Comments: Soll samples taken during dispenser upgrades revealed Total Petroleum Hydrocarbon contamination beneath dispensers at approximately 3.5 feet below ground surface (bgs). Su sequent sampling from soil borings drilled to 40 bgs revealed contaminant concentrations are below laboratory detection lev11ls Indicating that the contamination Is restricted to shallow depths. Groundwater was not encountered In any of the borings drilled during the assessmenl The consultant states that approximately 20 cubic yards of contaminated soil with concentrations exceeding 1 DO mg/kg remains onslte. From the lnfonnatlon submitted as part of the assessment, there appear& to be no risk to human health or th& environment and no cleanup.ls required. Case 001 {closed In 1997~ Involved contamination from underground &torage tanks. Soll vapor extraction was performed for thr~ yea I"$ and conflrmaUon sampl11s taken In 1997 revealed that rembdlatlon was successful. . • IV CLOSURE . Does comoleted corrocUve ac::tJon protect exlstlna beneflc:lal uses oer the Realonal Board Basin Plan? Yes Does comnleted corrective action nrotect Potential beneficial usas oer the Reafonal Board 8aaln Plan? Yes Does corrective action protect public health for current rand use? Yes Case overslaht comoleted based uoan th11 current/future site use as a aas station. Site Management Requirements: Any contaminated soil excavated as part of subsurface construction work must be managed In accordance with the legal requirements at that time. I Shnuld corrective action be reviewed If land use chanaes? Yes .. Decommissioned: No { Number Decommissioned: NIA List Enforcement Actions Taken: Notice of Corrective Action and Relmbul'$ement Resoonslbllltv List Enforcement Actions Resclntfed: NIA V. LOCAL AGENCY REPRESENTATIVE DATA Date Submitted to RB: NIA $Olis nl CB$e RWQCB Staff ~a_me: NIA TIUo: Hydrogeologlst Land and Water Qual Date: ··~ -<(-. RB Res onse: NIA .Tltle: NIA I Number Retained: N/A ····-... ·-- Division Date: N/A VII. ~_[)DITIONf.L COMMENT~1 OATA1 ETC. I Thi• ~O.,moot '"'In• 'Nlotod CASE CLO:: .. LOTTER, '""' be ""''"'" by tho lood •gooey ",.: ol llio offloioi ,., :lo. .. I DEH:HM·9152 (Rev. 3196) Page 2 of 2 2018-11-27 Agenda Packet Page 512 2018-11-27 Agenda PacketPage 513 2018-11-27 Agenda PacketPage 514 2018-11-27 Agenda PacketPage 515 Prepared by: Amelia Giacalone Transportation Planner Ill Jorge Cuyuch Transportation Engineer I TRAFFIC IMPACT ANALYSIS SHARP CHULA VISTA MEDICAL CENTER OCEAN VIEW TOWER Chula Vista, California March 22, 2016 LLG Ref. 3-15-2536 Under the Supervision of: John Boarman, P. E. Principal LINSCOTT LAW & GREENSPAN e ng f 11 e e u Linscott. Law & Greenspan, Engineers 4542 Ruffner Street Suite 100 San Diego, CA 92111 858.300.880() T 858.300.8810 F www.llgengineers.com 2018-11-27 Agenda Packet Page 516 Intersection 1. Telegraph Canyon Road I I- 805 SB Ramps 2. Telegraph Canyon Road I I- 805 NB Ramps 3. Telegraph Canyon Road I Oleander Avenue 4. Telegraph Canyon Road I Medical Center Drive 5. Telegraph Canyon Road I Heritage Road 6. Medical Center Court I Medical Center Drive 7. Medical Center Court I Loop Road Access West 8. Medical Center Court I Loop Road Access East 9. Medical Center Court I Main Hospital Dwy 10. E Palomar Street I Medical Center Drive 11. E Palomar Street I Medical Center Court 12. E Palomar Street I Heritage Road 13. Olympic Parkway I I-805 SB Ramps LINSCOTT, LAW & GREENSPAN, engineers TABLE 10-1 NEAR TERM INTERSECTION OPERATIONS Control Peak Type Hour Signal AM PM Signal AM PM Signal AM PM Signal AM PM Signal AM PM Sig1rnl AM PM owscc AM PM owsc AM PM owsc AM PM Signal AM PM Signal d AM PM Signal AM PM Signal AM PM 44 Near Term Near Term+ Project Project %of Delay• 12.0 37.3 46.6 63.1 25.3 26.2 28.0 34.4 54.1 45.9 21.8 25.2 14.5 16.7 13.8 15.9 15.3 11.4 33.2 50.8 9.0 10.9 97.3 51.2 63.8 84.2 Impact Entering Type LO Sb Delay LOS Volume {>5%) B 12.0 B 1% D 37.8 D 1% None D 47.1 D 1% E 65.7 E 1% Cum I c 25.6 c 1% c 26.6 c 1% None c 29.7 c 2% c 38.3 D None 3% D 54.8 D 0% D 46.2 D 1% None c 30.9 c 11% c 43.0 D 11% None B 15.9 c 17% c 33.7 D 21% None B 20.3 c 15% None c 21.4 c 18% c 21.9 c 18% None B 13.5 B 22% c 33.4 c 4% D 52.0 D 4% None A 9.3 A 3% B 11.6 None B 3% F 97.7 F 1% Cum I D 51.8 D 1% E 64.0 E 0% F 85.7 0% Cum I F LLG Ref. 3-15-2536 Sharp Chula Vista Medical Center Ocean View Tower 2018-11-27 Agenda Packet Page 517 TABLE 11-2 LONG TERM WITH PROJECT STREET SEGMENT OPERATIONS Long-Term Significance Criteria with Project Street Segment Classification LOSC Impact Capaciif ProjectADT Project% of Type AD Tb Lose Entering >800 Volume (>5%) Telegraph Canyon Road Halecrest Drive to Oleander A venue 7-Lane Expressway 61,250 70,900 E 635 1% Cum I Oleander A venue to Medical Center Drive 6-Lane Prime Arterial 50,000 65,800 F 828 1% Cuml Medical Center Drive to Heritage Road 6-Lane Prime Arterial 50,000 52,500 D 524 1% None Medical Center Drive Telegraph Canyon Road to Medical Center Class I Collector 22,000 24,400 D 1,490 6% None Court Medical Center Court to E. Palomar Street Class I Collector 22,000 11,800 A 773 7% None Medical Center Court East of Medical Center Drive Class II Collector 12,000 14,400 E 2,263 16% Direct North ofE. Palomar Street Class II Collector 12,000 5,600 A 497 9% None E. Palomar Street Oleander A venue to Medical Center Drive 4-Lane Major Road 30,000 17,800 A 359 2% None Medical Center Drive to Medical Center 4-Lane Major Road 30,000 17,900 Court A 0 0% None Medical Center Court to Heritage Road 4-Lane Major Road 30,000 14,100 A 497 4% None Olympic Parkway 1-805 Ramps to Oleander Avenue 6-Lane Prime Arterial 50,000 46,300 c 331 1% None Oleander Avenue to Brandywine Avenue 6-Lane Prime Arterial 50,000 48,800 c 276 1% None ~ LiNSCOn, LAW & GREENSPAN, engineers LLG Ref 3-15-2536 53 Sharp Chula Vista Medical Center Ocean View Tower Re0~G.·.Rer,x1.2":;<:; -Re"-1St·J l\·farcl: ~2 >J; t• i ::·%:~ ,i,,_,,__-... 2018-11-27 Agenda Packet Page 518 with LOS A representing the best operating conditions and LOS F representing the worst. Level of service designation is reported differently for signalized and un-signalized intersections, as well as for roadway segments. In the 2010 Highway Capacity Manual (HCM), Level of Service for signalized intersections is defined in terms of delay. The level of service analysis results in seconds of delay expressed in terms of letters A through F. Delay is a measure of driver discomfort, frustration, fuel consumption, and lost travel time. Table 4-1 summarizes the signalized intersections levels of service descriptions. 4.3. 1 Signalized Intersections Table 4-2 depicts the criteria, which are based on the overall average control delay for a signalized intersection. The level of service criteria is stated in terms of the average control delay per vehicle for a 15-minute analysis period. Control delay includes initial deceleration delay, queue move-up time, stopped delay, and final acceleration delay. Level of service A describes operations with very low delay, (i.e. less than I 0.0 seconds per vehicle). This occurs when progression is extremely favorable, and most vehicles arrive during the green phase. Most vehicles do not stop at all. Short cycle lengths may also contribute to low delay. Level of service B describes operations with delay in the range 10.1 seconds and 20.0 seconds per vehicle. This generally occurs with good progression and/or short cycle lengths. More vehicles stop than for LOS A, causing higher levels of Average delay. Level of service C describes operations with delay in the range 20.1 seconds and 35.0 seconds per vehicle. These higher delays may result from fair progression and/or longer cycle lengths. Individual cycle failures may begin to appear. The number of vehicles stopping is significant at this level, although many still pass through the intersection without stopping. Level of service D describes operations with delay in the range 35.1 seconds and 55.0 seconds per vehicle. At level D, the influence of congestion becomes more noticeable. Longer delays may result from some combination of unfavorable progression, long cycle lengths, or higher v/c ratios. Many vehicles stop, and the proportion of vehicles not stopping declines. Individual cycle failures are more frequent. Level of service E describes operations with delay in the range of 55.1 seconds to 80.0 seconds per vehicle. This is considered to be the limit of acceptable delay. These high delay values generally indicate poor progression, long cycle lengths, and high v/c ratios. Individual cycle failures are frequent occurrences. Level of service F describes operations with delay in excess of over 80.0 seconds per vehicle. This is considered to be unacceptable to most drivers. This condition often occurs with over-saturation (i.e., when arrival flow rates exceed the capacity of the intersection). It may also occur at high v/c ratios below 1.00 with many individual cycle failures. Poor progression and long cycle lengths may also be major contributing causes to such delay levels LINSCOTT, LAW & GREENSPAN, engineers 12 LLG Ref. 3-15-2536 Sharp Chula Vista Medical Center Ocean View Tower 2018-11-27 Agenda Packet Page 519 2018-11-27 Agenda Packet Page 520 2018-11-27 Agenda Packet Page 521 2018-11-27 Agenda Packet Page 522 2018-11-27 Agenda Packet Page 523 3/19/2018 3129 Cauby St - Google Maps https://www.google.com/maps/place/3350+Rosecrans+St,+San+Diego,+CA+92110/@32.7487479,-117.2076886,3a,75y,54.47h,82.32t/data=!3m6!1e1!…1/1 Image capture: Apr 2017 © 2018 Google Street View - Apr 2017 San Diego, California Google, Inc. 3129 Cauby St 2018-11-27 Agenda Packet Page 524 3/19/2018 3001 Cauby St - Google Maps https://www.google.com/maps/place/3350+Rosecrans+St,+San+Diego,+CA+92110/@32.7486845,-117.2075808,3a,75y,8.56h,81.49t/data=!3m6!1e1!3…1/1 Image capture: Apr 2017 © 2018 Google Street View - Apr 2017 San Diego, California Google, Inc. 3001 Cauby St 2018-11-27 Agenda Packet Page 525 2018-11-27 Agenda Packet Page 526 2018-11-27 Agenda Packet Page 527 “Environmental and public health through leadership, partnership and science” July 3, 2018 Mr. Neil Capin Rosecrans & Caubly, LLC 1835 Palm Ave San Diego, CA 92154 Dear Mr. Capin: VOLUNTARY ASSISTANCE PROGRAM - DEH2018-LSAM-000489 RESPONSE LETTER PROPOSED WASH N GO 495 TELEGRAPH CANYON RD., CHULA VISTA, CA 91910 Staff of the Department of Environmental Health, Site Assessment and Mitigation Program (SAM) have reviewed the May 15, 2018 Soil Management Plan (SMP) and June 27, 2018 Addendum to Soil Management Plan (ASMP) prepared by CTE, Inc. The reports describe the scope of work for the segregation, reuse and disposal of soils to be excavated at this site during a grading project for the construction of future car wash facility. It is estimated that at least 550 cubic yards of impacted soil will be generated from the site during this project. Impacted soils meeting onsite reuse criteria will be placed in areas beneath a minimum of one foot below building slab and at least two feet from utility trenches or open ground (if applicable). Excess contaminated soils may also be disposed of at a landfill or reused as inert soil as determined by the RWQCB Conditional Waiver 10 of Order R9-2014-0041. Soils meeting hazardous waste criteria are encountered, would be disposed of at an appropriate facility. In addition, SAM staff have also reviewed the Community Health and Safety Plan (CHSP), also submitted in the report. The report addresses proposed safeguards for the community due to the excavation, stockpiling and loading of soils generated during the grading project. The report describes the proposed methods for the application of water to control dust, the use of Photo Ionization Detectors (PID) to monitor hydrocarbon vapors and the protocols to be followed if PID readings at or above 25 ppm are noted. The report further discusses methods of noise control, BMP’s, emergency planning and public notification. The SMP, ASMP, and CHSP are approved. If you have any questions, please call me at (858) 505-6856. Sincerely, Ewan Moffat PG 7207, CHg 972, Project Manager Site Assessment and Mitigation Program cc: Mr. Gregory F. Rzonca, CTE Inc. DEPARTMENT OF ENVIRONMENTAL HEALTH LAND AND WATER QUALITY DIVISION P.O. BOX 129261, SAN DIEGO, CA 92112-9261 Phone: (858) 565-5173 Fax: (858) 694-3670 www.sdcdeh.org AMY HARBERT ASSISTANT DIRECTOR ELISE ROTHSCHILD DIRECTOR 2018-11-27 Agenda Packet Page 528 2018-11-27 Agenda Packet Page 529 2018-11-27 Agenda Packet Page 530 2018-11-27 Agenda Packet Page 531 2018-11-27 Agenda Packet Page 532 2018-11-27 Agenda Packet Page 533 2018-11-27 Agenda Packet Page 534 2018-11-27 Agenda Packet Page 535 2018-11-27 Agenda Packet Page 536 2018-11-27 Agenda Packet Page 537 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 1 ATTN: Neil Capin Wash-N-Go Carwash E-Mail: ▼ neilcapinjr@gmail.com FROM: Justin P. Schlaefli, PE TE PTOE TOTAL PAGES (Including Cover): DATE: November 12, 2018 TIME: 6:41:40 AM JOB NUMBER: N/A SUBJECT: 495 Telegraph Canyon Road- Traffic Confidential Communications This transmittal is intended for the recipient named above. Unless otherwise expressly indicated, this entire communication is confidential and privileged information. If you are not the intended recipient, do not disclose, copy, distribute or use this information. If you received this transmission in error, please notify us immediately by telephone, at our expense and destroy the information. As requested, we reviewed comments related to the proposed Wash-N-Go Carwash at 495 Telegraph Canyon Road (DR 15-0037, CUP 15-0023). In reviewing the comments as well as the traffic characteristics of the site, we relied on personal knowledge of the area, visits to the site, information from other recent studies and substantial experience conducting transportation analysis in the San Diego Region and Chula Vista in particular. The standard we utilized in our review was primarily SANTEC/ITE, Guidelines for Traffic Impact Studies (TIS) in the San Diego Region, March 2, 2000 and regional standard of practice as well as knowledge of Chula Vista. We found that the proposed Carwash would not be anticipated to have any significant project level environmental impact at the access point or surrounding roadways for a variety of reasons. A further discussion of the various applicable Guidelines and factors is included below. TIS Guidelines: The SANTEC/ITE, Guidelines for Traffic Impact Studies (TIS) in the San Diego Region, March 2, 2000 have been utilized for many years as a primary guide for traffic studies in many jurisdictions within San Diego County. These Guidelines provide documentation of the commonly accepted standard-of-practice in the San Diego Region. Jurisdictions may provide supplemental guidance and it is recommended that Agency staff be consulted regarding application of the Guidelines. For example, the Guidelines state, “special situations may call for variation from these guidelines”. However, they provide a reasonable starting point for most studies including input on trip generation, study area, significance criteria study scenarios and more. These Guidelines were referred to in consideration of the project discussed above. Trip Generation: The starting point of any traffic analysis is often trip generation calculations. The Guidelines recommend the use of SANDAG data ((Not So) Brief Guide) or City of San Diego, Trip Generation Manual data. If data in those guides are not available, it is recommended that ITE rates be considered. Finally, if there are unique site characteristics, estimation of trip rates or counts at other sites are recommended. In the case of an automated carwash, SANDAG data contains a recommended rate (see below): MEMO 2018-11-27 Agenda Packet Page 538 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 2 In general, it is standard practice where site specific data is known that an independent variable (i.e. acre) be used to more accurately calculate trip generation. Therefore, instead of simply using a 900 trips per site rate, the acreage of the site should be used to more accurately calculate the site specific trip generation. However, under a worst-case projection, the site would have the following trip generation: Following the more typical and technically accepted procedure, the independent variable would be used to adjust the trip generation based on site specific characteristics (i.e. site size). Following this procedure, the following trip generation has been calculated for the site. %*#In :Out In Out %*#In :Out In Out Car Wash 900 /Site 900 4% 36 5 : 5 18 18 9% 81 5 : 5 41 41 900 36 18 18 81 41 41 Notes: AC= Acre ADT= Average Daily Trips TOTAL 1 Site Proposed Project- SANDAG Rates (worst case) Use Amount Trip Rate ADT AM Peak Hour PM Peak Hour %*#In :Out In Out %*#In :Out In Out Car Wash 0.595 AC 600 /AC 357 4% 14 5 : 5 7 8 9% 32 5 : 5 16 16 357 14 7 8 33 17 16 Notes: AC= Acre ADT= Average Daily Trips TOTAL Proposed Project- SANDAG Rates Use Amount Trip Rate ADT AM Peak Hour PM Peak Hour 2018-11-27 Agenda Packet Page 539 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 3 However, due to the age of the studies used to develop the SANDAG rates, a search of more recent data was conducted. Due to changes in design for automated car washes and changes in driver behavior, a more recent trip generation study would be consulted as an additional data point in determining the proper trip generation. More recent studies have been done in the Southern California region and approved by other Agencies. Recently, a study was completed at a site with very similar operational and site characteristics to the proposed Wash-N-Go Carwash. This study was utilized by the City of Menifee in approving a new carwash in their jurisdiction. Information from this study is attached (see attachment 1). For comparison purposes, the trip calculations for the other site are included below. This information from another similar site appears to support the application of the SANDAG rate on an acreage basis due to the similarity in trip generation. Based on this information, it is unlikely that trip generation for the site on a typical day would exceed 357 trips per day. However, it is typical that operations for a carwash would fluctuate seasonally and based on weather. Therefore, a range of values could be considered. In an extremely conservative, worst-case situation, the trip generation could be up to 900 ADT. This would likely represent peak operation of the carwash. However, this would be considered extremely conservative and would likely not represent the average condition. More typically, the community would see a trip generation from the site closer to the 357 trips per day which are in the median of the range consistent with SANDAG rates. Study Scoping: Based on the trip generation information presented above, the “Flow Chart for Traffic Impact Study Requirements” (Table 1) from the Guidelines can be applied. This Table has been reproduced below with highlights along the flow chart specific to the proposed carwash. %*#In :Out In Out %*#In :Out In Out Car Wash 296 5% 15 7 : 3 10 5 10% 30 4 : 6 12 18 296 15 10 5 30 12 18 Notes: SF= Square Foot ADT= Average Daily Trips 1 Site Proposed Project- Counts from Similar Site Use Amount Trip Rate ADT AM Peak Hour PM Peak Hour Counts TOTAL 2018-11-27 Agenda Packet Page 540 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 4 Based on the flow chart, a traffic study ordinarily would not be required. The proposed Carwash falls well below the 1,000 trip threshold. This is especially the case when considering existing uses on the site which would serve to further reduce the net increase in trip generation. Likewise, after accounting for traffic splitting by direction on Telegraph Canyon and then again for the directionality of flow onto any freeway on-ramp or off-ramp at the adjacent intersection, it is estimated that approximately 30% of project traffic may use the freeway in the highest direction (either north or south). Looking at the highest peak hour and direction, this would represent only 12 trips. This would be far lower than the 20 peak hour trips in a single direction for a 2018-11-27 Agenda Packet Page 541 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 5 freeway on/off-ramp shown in the table.. Therefore, absent unique circumstances, a traffic study would not be required. Baseline: In addition to the trip generation calculations and flowchart discussed above, a review of the project site shows a long history of existing uses. These existing uses represent the traffic levels the community has long experienced. Pre-existing uses include a drycleaner and smog auto repair station. These uses serve to further reduce the incremental amount of traffic to be generated by the project. An auto repair center would typically generate up to 400 trips per acre and 20 trips per 1,000 sf while a dry cleaner would generate approximately 40 trips per 1,000 sf. Additionally, a Goodwill donation center is located on the site which would have additional trips associated with it. The existing building onsite contains approximately 2,300 square feet. Therefore, the net increase in trip generation is less than 300 trips. In addition, previous uses include a gas station which would have generated substantial additional trips. Based on the SANDAG trip generation guidelines, a gas station would have generated up to 900 trips per station indicating a carwash on the same site would have equal (considering worst-case) or significantly reduced traffic. Taken together with the history of use on the site, the trip generation increase caused by an automated carwash is minimal. Issues Discussed in Schwartz Semerdjian Letter (dated October 3, 2018): Although no traffic study would have been required following the standard-of-practice and regional guidelines, a letter was received appealing the Wash-N-Go Carwash project. The letter raises several issues which are discussed below: 1. The letter mentions that the City of Chula Vista, Traffic Engineer, Frank Rivera does not use a baseline analysis for trip generation. As discussed above, there are multiple ways to calculate trip generation. Almost all accepted methodologies and certainly the best evidence would illustrate a rather modest trip generation of under 500 ADT if the baseline were considered to be a vacant site. However, as discussed above, there is a long history of pre-existing use on the site including a former gas station and current drycleaner and auto repair facility. If the baseline were considered to be the former gas station, it is likely that the proposed carwash would reduce traffic compared to the gas station. Even an older service station design would generate up to 900 trips per station far exceeding the trip generation from the proposed carwash. If a more recent baseline is used due to the recent fluctuations in occupancy at the site (i.e. gas station reaching the end of its service life), the carwash would show a very minor increase in trip generation as discussed above. It is not only typical but legally appropriate to look at the total history of a site and utilize a credit for existing uses that a project will remove and replace. 2. The letter mentions a statement from Mr. Rivera that the carwash would generate a maximum of 600 vehicles per day. This statement is well supported in the record and the trip generation would likely be far lower than this initial estimate as documented above. 3. The letter mentions a service rate and improperly utilizes the service rate in calculating trip generation for the site. This is not in-keeping with the standard of practice. There are very few uses which operate at maximum capacity for the entire day. This is particularly true of carwashes with nearby competition. Actual counts from similar sites indicate that the anticipated trip generation is far lower (see above). 4. The letter references calculations from Mr. Rivera. These calculations are well supported and represent the industry standard. The trip generation calculation utilizing acreage as an independent variable is the proper methodology for calculating trip generation and is supported by independent studies of similar sites (see trip generation discussion above). 5. Once again, the letter incorrectly utilizes the SANDAG (Not So) Brief Guide in calculating an inflated trip generation for the project site. Industry practice is to utilize the independent variable (when 2018-11-27 Agenda Packet Page 542 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 6 available) to properly tailor trip generation for a project site. This is far superior to utilizing a generic “per site” methodology and is recommended when site specific characteristics are known. This is also supported by independent studies and calculations for other sites (see trip generation discussion above). 6. The letter mentions a 50 trip threshold when determining the need for a traffic study. Based on trip generation calculations for this site, it is clear that the trip generation for the site will be far less than 50 trips in the average scenario based on industry standard practice and substantial evidence. Additionally, the appropriate threshold is 100 trips for the type of use proposed on the site. Even in the worst-case, peak scenario, the trip generation is far under this limit. The flowchart is included in a discussion above and illustrates that no traffic study would have been required. 7. The letter references an intersection analysis from another traffic study for the intersection of Telegraph Canyon Road at I-805 NB ramp. According to Table 6-1 of this traffic study (see Attachment 2), the current level of service at Telegraph Canyon Road/I-805 NB ramp is LOS C/D. Likewise, according to Table 8-1, the LOS with the Sharp Chula Vista Medical Center traffic would be C/D. In the Near Term condition, which includes 10% growth and the Medical Center, the LOS would be an “E” with a delay of 65.7 seconds. The Medical Center project was expected to change the delay by 2.6 seconds. The Medical Center project added 63 project trips to the intersection. The Carwash, on the other hand, would have fewer than half the number of trips at the same intersection in the average condition. The change in delay (even with future traffic growth) would likely be well under 2 seconds and would therefore not be considered a significant cumulative impact. In addition, following City of Chula Vista criteria, the Carwash would contribute far less than 5% of the entering volume at that intersection. The entering volume on the WB leg is 2,564 in the PM-higher peak hour which would indicate a threshold of 128 trips in the peak hour (5% of the value). The proposed project simply does not generate this amount of traffic under any trip generation scenario discussed above. Therefore, the proposed project would not cause a significant direct or cumulative impact. 8. The letter mentions a possibility that the project would substantially increase hazards to motorists. Specifically, the letter mentions the likelihood of queuing on Halecrest Drive. Unfortunately, there is no evidence to support the hypothesis that queuing, which is typical of any intersection would constitute a hazard to motorists. Although driveways in close proximity to intersections may be blocked due to queuing of vehicles, this is a typical and safe condition with countless examples throughout Southern California. This is especially the case with many traffic signals in commercial areas. Motorists are familiar with navigating such conditions. In typical conditions, the queue at the signal will clear regularly when the signal changes and patrons will then safely turn into the driveway. This condition actually exists today and is safely navigated by patrons of the existing businesses onsite and previously at the gas station. Additionally, a driveway exists on Telegraph Canyon Road to provide options if traffic is queued. This will be the most likely ingress for traffic traveling westbound on Telegraph Canyon Road. Finally, the proposed opening time for the carwash is 8:00am putting the majority of peak trips outside of the AM peak hour and further minimizing the potential for the situation described in the letter. During the PM peak hour, the predominate direction of travel at Halecrest is northbound where the driveway would not be blocked. In order to further minimize the likelihood of such a condition, “Do not Block” intersection markings could be utilized. However, due to the long history of commercial uses on the site and lack of reports of conflict or hazard with a nearly identical configuration, it is unlikely that a significant hazard would result from the proposed carwash. 2018-11-27 Agenda Packet Page 543 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 7 Attachment 1 2018-11-27 Agenda Packet Page 544 2018-11-27 Agenda PacketPage 545 2018-11-27 Agenda PacketPage 546 2018-11-27 Agenda PacketPage 547 2018-11-27 Agenda PacketPage 548 Neil Capin © Urban Systems Associates, Inc. Wash-N-Go Carwash 11/12/2018 495 Telegraph 8451 Miralani Drive, Suite A • San Diego, CA 92123 • (858) 560-4911 8 Attachment 2 2018-11-27 Agenda Packet Page 549 2018-11-27 Agenda PacketPage 550 2018-11-27 Agenda PacketPage 551 2018-11-27 Agenda PacketPage 552 2018-11-27 Agenda PacketPage 553 2018-11-27 Agenda PacketPage 554 2018-11-27 Agenda PacketPage 555 2018-11-27 Agenda PacketPage 556 2018-11-27 Agenda PacketPage 557 2018-11-27 Agenda Packet Page 558 2018-11-27 Agenda Packet Page 559 2018-11-27 Agenda Packet Page 560 2018-11-27 Agenda Packet Page 561 RESOLUTION NO. 2018- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED IN THE RESOLUTION WHEREAS, the parcel of land which is the subject matter of this Resolution is depicted in Exhibit “A,” attached hereto and incorporated herein by this reference, and for the purpose of general description consists of 0.55 acres located at 495 Telegraph Canyon Road, as identified in County Assessor Records as Assessor’s Parcel Numbers 639-080-68-00 (Project Site); and WHEREAS, on December 15, 2015 duly verified applications requesting approval of Design Review Application DR15-0037 and Conditional Use Permit Application CUP15-0023 were filed with the City of Chula Vista Development Services Department by Gene Cipparone Architect, Inc., (Applicant); and WHEREAS, said Applicant requests approval of Design Review Permit DR17-0037 and Conditional Use Permit CUP15-0023 to construct a 2,380 square-foot automated carwash building with vacuum stations with associated parking and landscaping (Project) on the Project Site; and WHEREAS, a hearing time and place was set by the Planning Commission for consideration of the Project and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, and its mailing to property owners and residents within 500 feet of the exterior boundaries of the Project Site, at least ten (10) days prior to the hearing; and WHEREAS, the duly called and noticed public hearing on the Project was held before the Planning Commission of the City of Chula Vista on January 10, 2018 in the Council Chambers, 276 Fourth Avenue, at 6:00 p.m. to hear public testimony and staffs’ presentation; and WHEREAS, the Planning Commission on said date reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and determined that the Project qualifies for a Categorical Exemption pursuant to Section 15332 of the State CEQA Guidelines; and WHEREAS, on January 18, 2018, Rod Bisharat filed an appeal of the Planning Commission’s Decision to approve Design Review Permit DR17-0015 and Conditional Use Permit CUP15-0023 (the “Appeal”); and 2018-11-27 Agenda Packet Page 562 Resolution No. 2018- ______ Page 2 WHEREAS, the City Clerk set the time and place for the public hearing on the Appeal and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, its mailing to property owners within 500 feet of the exterior boundary of the Project Site at least 10 days prior to the hearing; and WHEREAS, the Chula Vista City Council held a duly noticed public hearing to consider said Appeal at the time and place as advertised, namely November 27, 2018 at 5:00 p.m. in the Council Chambers, 276 Fourth Avenue. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby find and determine that under the provisions of Chula Vista Municipal Code (CVMC) Sections 19.14.588.B and 19.14.130, the Appeal that is the subject of this Resolution is hereby denied and the decision of the Planning Commission to adopt the Addendum and approve the Project is hereby affirmed, with findings as follows: I. ENVIRONMENTAL REVIEW That the City Council of the City of Chula Vista, in the exercise of its independent judgment, as set forth in the record of its proceedings, considered the Preliminary Environmental Review of the Project conducted by the Director of Development Services for compliance with the California Environmental Quality Act (CEQA), and has determined that the Project qualifies for a Categorical Exemption pursuant to Section 15332 of the State CEQA Guidelines and that the record of proceedings provides no evidence that a Section 15300.2 Exception to said Section 15332 Categorical Exemption exists. II. CONFORMANCE WITH CHULA VISTA MUNICIPAL CODE That the City Council of the City of Chula Vista, in the exercise of its independent judgment, as set forth in the record of its proceedings does hereby adopt all findings made by the Planning Commission contained in Design Review Permit Resolution DR15-0037 and Conditional Use Permit Resolution CUP15-0023 for the Project, attached hereto and incorporated herein by this reference, as if said findings were their own. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby find and determine that the Appeal that is the subject of this Resolution is hereby DENIED and that the determination of the Planning Commission is hereby AFFIRMED, in accordance with the applicable development standards, regulation and guidelines of the Chula Vista Municipal Code and the Conditions of Approval specified in Planning Commission Resolutions DR17-0037 and CUP15-0023 dated January 10, 2018, attached hereto and incorporated herein by this reference (Exhibit “B”), as may be modified hereby. Presented by:Approved as to form by: ___________________________________________________________ Kelly Broughton, FASLA Glen R. 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