HomeMy WebLinkAboutAgenda Packet 2019_01_15City of Chula Vista
Meeting Minutes - Draft
5:00 PM Council Chambers
276 4th Avenue, Building A
Chula Vista, CA 91910
Tuesday, July 24, 2018
REGULAR MEETING OF THE CITY COUNCIL
CALL TO ORDER
A regular meeting of the City Council of the City of Chula Vista was called to order at 5:01 p.m. in the
Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL:
Present:Councilmember Aguilar, Deputy Mayor Diaz, Councilmember McCann, Councilmember
Padilla and Mayor Casillas Salas
Also Present: City Manager Halbert, City Attorney Googins, City Clerk Bigelow, and Records Manager
Turner
PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Deputy Mayor Diaz led the Pledge of Allegiance.
SPECIAL ORDERS OF THE DAY
A.18-0273 EMPLOYEE SERVICE RECOGNITION HONORING STAFF WITH
MILESTONE SERVICE ANNIVERSARIES
City Manager Halbert recognized employees with milestone service anniversaries.
B.18-0331 SPECIAL RECOGNITION OF CONNOR SZCZECHOWICZ UPON
WINNING THE 2018 U.S. KIDS GOLF CALIFORNIA STATE
INVITATIONAL
Mayor Casillas Salas read the proclamation and Councilmember Padilla presented Connor Szczechowicz
with a City of Champions medal.
C.18-0337 RECOGNITION OF THE PUBLIC WORKS DEPARTMENT’S
PARTICIPATION IN THE MAINTENANCE SUPERINTENDENT’S
ASSOCIATION (MSA) 2018 EQUIPMENT RODEO AND WINNING THE
FIRST PLACE TROPHY
Director of Public Works Quilantan recognized the Chula Vista Public Works team and Public Works
Supervisor Cancio gave a presentation on the item.
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CONSENT CALENDAR (Items 1 - 5)
Mayor Casillas Salas stated Councilmembers McCann and Padilla would be abstaining from voting on
Item # 4B due to potential property-related conflicts of interest.
1.18-0332 ORDINANCE NO. 3432 OF THE CITY OF CHULA VISTA AMENDING
CHULA VISTA MUNICIPAL CODE CHAPTER 19.58 (USES) TO ADD
SECTION 19.58.440 (MOBILE FOOD FACILITIES), AMENDING
CHAPTER 8.20 (FOOD VENDORS), AMENDING CHAPTER 5.62
(VENDING VEHICLES), AMENDING CHAPTER 10.52 (STOPPING,
STANDING, AND PARKING), AND AMENDING CHAPTER 5.07
(MASTER TAX SCHEDULE) (SECOND READING AND ADOPTION)
Recommended Action: Council adopt the ordinance.
2.18-0333 ORDINANCE NO. 3433 OF THE CITY OF CHULA VISTA APPROVING A
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA
AND NORTH C.V. WATERFRONT L.P. FOR THE DEVELOPMENT OF
APPROXIMATELY 33 ACRES OF LAND LOCATED IN THE HARBOR
DISTRICT OF THE CHULA VISTA BAYFRONT MASTER PLAN AREA
(SECOND READING AND ADOPTION)
Recommended Action: Council adopt the ordinance.
3.18-0302 RESOLUTION NO. 2018-147 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $103,078 FROM THE STATE OF
CALIFORNIA DEPARTMENT OF JUSTICE AND APPROPRIATING SAID
FUNDS TO THE POLICE GRANTS SECTION OF THE FEDERAL
GRANTS FUND FOR THE TOBACCO LAW ENFORCEMENT GRANT
(4/5 VOTE REQUIRED)
Recommended Action: Council adopt the resolution.
4.18-0304 A. RESOLUTION NO. 148 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY
THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY
FACILITIES DISTRICTS 97-1, 97-2, 97-3, 98-1, 98-2, 98-3, 99-1, 99-2,
2000-1, 2001-1, 2001-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M, 13-I,
13-M, 14-M, 16-I, 17-I, 18-M AND 19-M WITHIN THE CITY OF CHULA
VISTA AND DESIGNATING THE DIRECTOR OF FINANCE/TREASURER
TO FILE A LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH
THE COUNTY AUDITOR EACH YEAR
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B. RESOLUTION NO. 149 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY
THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY
FACILITIES DISTRICTS 06-I AND 07-M, WITHIN THE CITY OF CHULA
VISTA AND DESIGNATING THE DIRECTOR OF FINANCE/
TREASURER TO FILE A LIST OF TAXES TO BE LEVIED ON EACH
PARCEL WITH THE COUNTY AUDITOR EACH YEAR
Recommended Action: Council adopt the resolutions.
5.18-0334 A. RESOLUTION NO. 2018-150 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND
ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL
TRANSACTIONS AND USE TAX
B. RESOLUTION NO. 2018-151 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AUTHORIZING THE EXAMINATION OF
TRANSACTIONS (SALES) AND USE TAX RECORDS
Recommended Action: Council adopt the resolutions.
Approval of the Consent Calendar
A motion was made by Councilmember McCann, seconded by Councilmember
Padilla, to approve staff's recommendations on the above Consent Calendar
items, headings read, text waived. The motion carried by the following vote:
Items 1 through 4A, and 4C through 5:
ACTION:
Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 -
No:0
Abstain:0
Item 4B:
Yes:Aguilar, Diaz and Casillas Salas3 -
No:0
Abstain:McCann and Padilla2 -
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
Laura Loza, Chula Vista resident, expressed concern regarding the impacts of a sober living home in the
area of Valencia Loop.
Carolyn Reynolds, representing Coronado Cab, spoke regarding AB1069 and taxicab administration being
transferred to the Metropolitan Transit System. At the request of Mayor Casillas Salas, there was
consensus of the Council to add an item on the topic to a future agenda.
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PUBLIC HEARINGS
6.18-0236 A. RESOLUTION NO. 2018-152 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA LEVYING THE ASSESSMENTS AND
COLLECTIBLES FOR THE FISCAL YEAR 2018/2019 FOR OPEN
SPACE DISTRICTS 2 THROUGH 7, 11, 14, 15, 17, 18, 20 (ZONES 1
THROUGH 6, 8, AND 9), 23, 24, 26, 31, 33, EASTLAKE MAINTENANCE
DISTRICT NO 1 (ZONES A, B, D, AND E), AND BAY BOULEVARD
MAINTENANCE DISTRICT
B. RESOLUTION NO. 2018-153 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA LEVYING THE ASSESSMENTS AND
COLLECTIBLES FOR THE FISCAL YEAR 2018/2019 FOR OPEN
SPACE DISTRICTS 9, 10 AND TOWN CENTRE MAINTENANCE
DISTRICT
C. RESOLUTION NO. 2018-154 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA LEVYING THE ASSESSMENTS AND
COLLECTIBLES FOR THE FISCAL YEAR 2018/2019 FOR OPEN
SPACE DISTRICT 8
D. RESOLUTION NO. 2018-155 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA LEVYING THE ASSESSMENTS AND
COLLECTIBLES FOR THE FISCAL YEAR 2018/2019 FOR OPEN
SPACE DISTRICT 20 (ZONE 7)
E. RESOLUTION NO. 2018-156 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA LEVYING THE ASSESSMENTS AND
COLLECTIBLES FOR THE FISCAL YEAR 2018/2019 FOR OPEN
SPACE DISTRICT 1
F. RESOLUTION NO. 2018-157 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA LEVYING THE ASSESSMENTS AND
COLLECTIBLES FOR THE FISCAL YEAR 2018/2019 FOR EASTLAKE
MAINTENANCE DISTRICT 1 (ZONE C)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the
date and no earlier than the time specified in the notice.
City Manager Halbert announced staff was available for any questions.
City Attorney Googins described the following potential property-related conflicts of interest: Mayor
Casillas Salas on Item 6B; Councilmember Aguilar on Item 6C; Councilmembers Aguilar and McCann on
Item 6D; Councilmember McCann on Item 6E; and Councilmember Padilla on Item 6F.
Mayor Casillas Salas opened the public hearing.
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There being no members of the public who wished to speak, Mayor Casillas Salas closed the public
hearing.
A motion was made by Councilmember McCann, seconded by Councilmember
Aguilar, to adopt Resolution No. 2018-152 (Item 6A), heading read, text waived.
The motion carried by the following vote:
ACTION:
Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 -
No:0
Abstain:0
Mayor Casillas Salas left the dais at 5:33 p.m., during voting on Item 6B.
A motion was made by Councilmember McCann, seconded by Councilmember
Aguilar, to adopt Resolution No. 2018-153 (Item 6B), heading read, text waived.
The motion carried by the following vote:
ACTION:
Yes:Aguilar, Diaz, McCann and Padilla4 -
No:0
Abstain:Casillas Salas1 -
Mayor Casillas Salas returned to the dais at 5:35 p.m.
Councilmember Aguilar left the dais at 5:35 p.m., during voting on Items 6C and 6D.
A motion was made by Mayor Casillas Salas, seconded by Councilmember
McCann, to adopt Resolution No. 2018-154 (Item 6C), heading read, text waived.
The motion carried by the following vote:
ACTION:
Yes:Diaz, McCann, Padilla and Casillas Salas4 -
No:0
Abstain:Aguilar1 -
Councilmember McCann left the dais at 5:36 p.m., during voting on Items 6D and 6E.
A motion was made by Deputy Mayor Diaz, seconded by Councilmember Padilla,
to adopt Resolution No. 2018-155 (Item 6D), heading read, text waived. The
motion carried by the following vote:
ACTION:
Yes:Diaz, Padilla and Casillas Salas3 -
No:0
Abstain:Aguilar and McCann2 -
Councilmember Aguilar returned to the dais at 5:37 p.m.
A motion was made by Councilmember Padilla, seconded by Mayor Casillas
Salas, to adopt Resolution No. 2018-156 (Item 6E), heading read, text waived. The
motion carried by the following vote:
ACTION:
Yes:Aguilar, Diaz, Padilla and Casillas Salas4 -
No:0
Abstain:McCann1 -
Councilmember McCann returned to the dais at 5:38 p.m.
Councilmember Padilla left the dais at 5:38 p.m., during voting on Item 6F.
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A motion was made by Mayor Casillas Salas, seconded by Deputy Mayor Diaz, to
adopt Resolution No. 2018-157 (Item 6F), heading read, text waived. The motion
carried by the following vote:
ACTION:
Yes:Aguilar, Diaz, McCann and Casillas Salas4 -
No:0
Abstain:Padilla1 -
ACTION ITEMS
7.18-0235 A. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER
5.21, “CANNABIS BUSINESS TAX,” TO TITLE 5 OF THE CHULA VISTA
MUNICIPAL CODE TO ESTABLISH A TAX ON CANNABIS BUSINESS
ACTIVITY (FIRST READING)
B. RESOLUTION NO. 2018-158 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA: (A) AMENDING RESOLUTION NO. 2018-128
CALLING A SPECIAL ELECTION TO BE HELD ON NOVEMBER 6,
2018; (B) ORDERING SUBMISSION TO THE QUALIFIED ELECTORS OF
THE CITY A MEASURE SEEKING APPROVAL OF A GENERAL
BUSINESS LICENSE TAX ON CANNABIS BUSINESS ACTIVITY IN THE
CITY; (C) AUTHORIZING THE MAYOR TO SUBMIT BALLOT
ARGUMENTS IN FAVOR OF THE MEASURE; AND (D) DIRECTING THE
CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE
MEASURE
The following members of the public spoke in opposition to staff's recommendation:
- Rhoda Campbell, San Diego resident
- Kathleen Lippett, Poway resident
- Jose Escobar, Chula Vista resident
- Janet Asaro
- Kelly McCormick
- Barbara Gordon
- Terry Lewis, Chula Vista resident
- David Reidy, Chula Vista resident
- Dale Drees, Chula Vista resident
- Damien Johnson, and he suggested a conditional use permit process for marijuana manufacturing
facilities.
- Grace Rapp
- Megan Blaze
- April Drew, Chula Vista resident
- Steven Pavka, Chula Vista resident
The following member of the public spoke in support of staff's recommendation:
- Ken Sobel, San Diego resident
- Daniel Green, Chula Vista resident
- Molly Jones, Chula Vista resident
- Shane Harris, Chula Vista resident
- Deuel Woodward, Chula Vista resident
Council discussion ensued and the Council provided revisions to the proposed ordinance and resolution.
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The conclusion of Item 7 was discussed following Councilmembers' Comments.
Mayor Casillas Salas recessed the meeting at 7:28 p.m. The Council reconvened at 7:34 p.m., with all
members present.
8.18-0262 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS
CHAPTERS OF TITLE 2 OF THE CHULA VISTA MUNICIPAL CODE,
RELATED TO REGULATIONS AND PROCESSES APPLICABLE TO
THE CITY’S BOARDS AND COMMISSIONS (FIRST READING)
A motion was made by Councilmember McCann, seconded by Councilmember
Aguilar, to place the ordinance on first reading, heading read, text waived. The
motion carried by the following vote:
ACTION:
Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 -
No:0
Abstain:0
MAYOR’S REPORTS
9.18-0340 RATIFICATION OF APPOINTMENTS OF THE FOLLOWING:
Roselle Ellison, Board of Library Trustees
Ken Muraoka, International Friendship Commission
Venus Molina, International Friendship Commission
Marnyce S. McKell, International Friendship Commission
Tuere Faaola, Safety Commission
John Richeson, Sustainability Commission
Maria E. Balolong, Veterans Advisory Commission
Patricia Larkin, Veterans Advisory Commission
Jan Buddingh, Charter Review Commission
Rachel McDonald, Charter Review Commission
Paul Crawford, Commission on Aging
A motion was made by Councilmember McCann, seconded by Councilmember
Padilla, that the above appointments be ratified. The motion carried by the
following vote:
ACTION:
Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 -
No:0
Abstain:0
Mayor Casillas Salas stated she attended the ceremony to dedicate the Palomar Street bridge to San
Diego Police Officer Jonathan DeGuzman. She also reported on the Bonita Valley All-Star softball team's
visit to City Hall.
COUNCILMEMBERS’ COMMENTS
Councilmember Padilla spoke regarding the Palomar Street bridge dedication in memory of Officer
DeGuzman. Councilmember Padilla and Mayor Casillas Salas recognized Assemblywoman Lorena
Gonzalez Fletcher for her efforts on the state resolution necessary for the dedication, as well as the
donors who contributed to the signage.
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Councilmember McCann congratulated his Navy unit for receiving the second Battle "E" award.
CITY MANAGER’S REPORTS
City Manager Halbert gave an update on the Bayfront development.
The beginning of Item 7 was heard in order, with the conclusion following City Manager's Reports.
7.18-0235 A. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER
5.21, “CANNABIS BUSINESS TAX,” TO TITLE 5 OF THE CHULA VISTA
MUNICIPAL CODE TO ESTABLISH A TAX ON CANNABIS BUSINESS
ACTIVITY (FIRST READING)
B. RESOLUTION NO. 2018-158 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA: (A) AMENDING RESOLUTION NO. 2018-128
CALLING A SPECIAL ELECTION TO BE HELD ON NOVEMBER 6,
2018; (B) ORDERING SUBMISSION TO THE QUALIFIED ELECTORS OF
THE CITY A MEASURE SEEKING APPROVAL OF A GENERAL
BUSINESS LICENSE TAX ON CANNABIS BUSINESS ACTIVITY IN THE
CITY; (C) AUTHORIZING THE MAYOR TO SUBMIT BALLOT
ARGUMENTS IN FAVOR OF THE MEASURE; AND (D) DIRECTING THE
CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE
MEASURE
City Attorney Googins distributed a revised resolution and ordinance, based on Council's direction, and
read the revised language.
A motion was made by Councilmember Padilla, seconded by Mayor Casillas
Salas, to place the ordinance on first reading as amended, and adopt Resolution
No. 2018-158 as amended, headings read, text waived. The motion carried by the
following vote:
ACTION:
Yes:Aguilar, Diaz, Padilla and Casillas Salas4 -
No:McCann1 -
Abstain:0
CITY ATTORNEY'S REPORTS
City Attorney Googins announced that the Council would convene in closed session to discuss Item 10
below, and that Item 11 would not be discussed and would be continued to a future date.
Lynnette Tessitore, representing the Chula Vista Mid-Managers & Professional Association, spoke
regarding Item 10, and stated that the bargaining group was committed to the City and available to answer
any questions from the Council.
Mayor Casillas Salas recessed the meeting at 7:48 p.m. The Council reconvened in closed session at
8:00 p.m. with all members present.
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CLOSED SESSION
Pursuant to Resolution No. 13706 and Council Policy No. 346-03, Official Minutes and records of
action taken during Closed Sessions are maintained by the City Attorney.
10.18-0286 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)
No reportable action.ACTION:
11.18-0301 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT
TO GOVERNMENT CODE SECTION 54956.8
Property:318 4th Ave, Chula Vista, CA
Agency Negotiators: Rick Ryals and Eric Crockett
Negotiating Parties: City of Chula Vista and Heritage Group
Under Negotiation: Price and Terms for Acquisition
Item 11 was not discussed and was continued to a future date.
ADJOURNMENT
At 8:45 p.m., the meeting was adjourned to the Regular City Council Meeting on August 7, 2018, at 5:00
p.m., in the Council Chambers.
_______________________________
Kerry K. Bigelow, MMC, City Clerk
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January 15, 2019 File ID: 18-0591
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER
TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS RELATED TO THE PARTICIPATION OF THE HUD
PUBLIC OFFERING AS PART OF THE SECTION 108 LOAN GUARANTEE ASSISTANCE PROGRAM TO
REFINANCE THE EXISTING NOTE B-08-MC-06-0547 OR OTHER OBLIGATION IN THE ORIGINAL
PRINCIPAL AMOUNT OF $5,886,000, FOR THE 2008 CASTLEPARK INFRASTRUCTURE PROJECT (4/5 VOTE
REQUIRED)
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
On November 27, 2018, the City received notice from HUD regarding the opportunity to refinance the
City's Section 108 Note B-08-MC-06-0547 with a lower interest rate. On December 6, 2018, the City
notified HUD of its election to redeem the current note. In January 2019, HUD will provide the City the
applicable loan documents for the refinancing, with the expected funding to occur on February 1.
Upon Council’s approval and execution of the loan documents, the City will have a new Section 108
note with lower interest rates, resulting in a cost savings to the City.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activities for compliance with the California
Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The proposed activities
are not considered “Projects” as defined under Section 15378(b)(5) of the State CEQA Guidelines because
the proposals consist of a reporting action, is an administrative function, and is not site specific project(s)
and 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, these activities are not subject to CEQA. Under NEPA,
the activity qualifies for a Certification of Exemption pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code
of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development
Environmental Guidelines. Thus, no further environmental review is necessary.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program.
Under Section 108, HUD offers state and local governments the ability to leverage a small portion of their
CDBG program funds into a source of financing for certain eligible activities and projects. Under the terms
of the Section 108 program, an entitlement public entity may apply for loan commitments of up to five
times the entity's latest approved CDBG entitlement amount. Section 108 loans are principally secured by a
pledge of the jurisdiction’s current and future CDBG funds.
In 2008, the City received a Section 108 Loan Guarantee in the amount of $9,500,000 to complete
infrastructure improvements in the Castle Park area. Such improvements included the construction of new
sidewalks, curbs, gutters, lighting and signage in an area that lacked this basic infrastructure. By 2013, the
loan proceeds in its entirety had been exhausted and eleven streets completed (refer to map below).
Castlepark Infrastructure Project
The current outstanding principal balance of the loan is $5,886,000. The loan requires an average annual
debt service payment of $750,000, which is funded through the CDBG annual entitlement funds. Debt
service on the current Section 108 loan began in January 2009 and is scheduled to be completed in August
2028.
On November 27, 2018, HUD notified the City of its scheduled February 2019 public offering that will
enable those borrowers that participated in certain prior public offerings to refinance their existing loans
at more favorable interest rates. The existing City of Chula Vista Section 108 note balance of $5,886,000 is
eligible to be refinanced through this public offering. Participation in the public offering would refinance
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the current note balance in its entirety. Other terms of the loan would remain the same such as the final
maturity date andsecurity provisions of the existing note.
Based on current estimates, the issuance costs to the City are expected to amount to approximately $29,430
and the present value of the savings to be realized through the note's final maturity date are anticipated to
be approximately $586,000, or 10 percent of the current debt obligation.
Below are the City’s current interest rates under the current note (Series 2008-A) compared to the
projected interest rates for the Series 2019-A offering:
Payment Date 2008-A 2019-A*
Aug 1, 2019 4.87%2.89%
Aug 1, 2020 4.96%3.05%
Aug 1, 2021 5.05%3.08%
Aug 1, 2022 5.13%3.13%
Aug 1, 2023 5.19%3.15%
Aug 1, 2024 5.25% 3.20%
Aug 1, 2025 5.30%3.33%
Aug 1, 2026 5.34%3.38%
Aug 1, 2027 5.38%3.52%
Aug 1, 2028 5.42%3.57%
*Estimated rates as of 11/26/2018
On December 6, 2018, the City notified HUD of its intent to redeem the current note based upon the
cost savings that would be realized and the opportunity for the City to fund other CDBG eligible
activities with such costs savings. In January 2019, HUD will provide the City the applicable loan
documents for the refinancing. Subsequent to the execution of the refinancing documents, HUD will
provide the documents to the Bank of New York Mellon (BNYM) in its role as the Fiscal Agent for the
Section 108 Program, and it will arrange for the loans to be funded on February 1.
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 activities funded through
the federal grant programs are directed towards the revitalization of neighborhoods, economic
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development opportunities, and improved facilities and services. The nature of these activities is consistent
with the Goals, Strategies and Initiatives in Goal 5: Connected Community.
Strategy 5.2: Provide Opportunities that Enrich the Community’s Quality of Life
Initiative 5.2.1 Provide Services and Programs Responsive to Residents Priorities
The CDBG program, in its entirety, provides for a suitable living environment with adequate public
facilities, infrastructure and services to City residents.
CURRENT-YEAR FISCAL IMPACT
The City's current Section 108 note has an outstanding principal balance of $5,886,000. Based on the
current estimates of the HUD underwriters, the net savings to the City over the remaining life of the note
are estimated to be $588,000. Issuance costs for the new Section 108 note are estimated to be
approximately $29,430. These costs will be paid to HUD three business days in advance of the offering
date, and will be paid with CDBG entitlement funds.
ONGOING FISCAL IMPACT
The present value of the savings from the note refinancing, as calculated by the HUD underwriters, will
result in an average savings of approximately $58,000 per year over the remaining ten years of loan debt
service. Because the Section 108 loan debt service is funded by the City's CDBG entitlement funds, the
average annual debt service savings per year will be available for the City to fund other CDBG-eligible
activities.
ATTACHMENTS
None.
Staff Contact: Angelica Davis, DSD – Housing Sr Management Analyst
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RESOLUTION NO. 2019-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER TO
EXECUTE ANY AND ALL NECESSARY DOCUMENTS
RELATED TO THE PARTICIPATION OF THE HUD PUBLIC
OFFERING AS PART OF THE SECTION 108 LOAN
GUARANTEE ASSISTANCE PROGRAM TO REFINANCE
THE EXISTING NOTE B-08-MC-06-0547 OR OTHER
OBLIGATION IN THE ORIGINAL PRINCIPAL AMOUNT OF
$5,886,000, FOR THE 2008 CASTLEPARK
INFRASTRUCTURE PROJECT (4/5 VOTE REQUIRED)
WHEREAS, the City of Chula Vista adopted Resolution 2006-359 on December 12,
2006, accepting $9,500,000 plus interest thereon of United States Department of Housing and
Urban Development (“HUD”) loan funds under Section 108 of the Housing and Community
Development Act of 1974, as amended, for the Castle Park Capital Improvement Projects
STU03, STL304, STU05, and STL306 (the “Project”) and executed that Section 108 note
number B-08-MC-06-0547 for the Project under a Section 108 Contract for Loan Guarantee
Assistance dated May 27, 2008; and
WHEREAS, HUD has notified the City of Chula Vista that a public offering will occur
in February 2019 to enable those borrowers that participated in certain prior public offerings to
refinance their existing loans at more favorable interest rates and to participate, the City of Chula
Vista must immediately notify HUD of its intention to refinance all or a portion of its existing
Section 108 commitment through the public offering; and
WHEREAS, HUD may require, as a condition of participation in the public offering, that
the City of Chula Vista execute documents related to the transaction, and whereas the City has
previously agreed to pay its share, as determined by HUD, of the customary and usual issuance,
underwriting, and other costs related to the public offering and future administration of the Note
and the trust certificates; and,
WHEREAS, it is economically sound and in the best interest of the City of Chula Vista
to accept more favorable fixed rates of interest under the Section 108 Loan Guarantee program
offered by HUD under the public offering.
NOW THEREFORE BE IT RESOLVED BY the City Council of the City of Chula
Vista,the City Manager, or his duly authorized agent, shall notify HUD of the City’s desires to
participate in the February 2019 public offering by HUD through the loan guarantee assistance
program under Section 108 of the Housing and Community Development Act of 1974, as
amended, for the existing obligation B-08-MC-06-0547 in the original principal amount of
$9,500,000 and to refinance the existing principal amount of $5,886,000 at such rates of interest
that will be determined by HUD at the time of the public offering.
2019-01-15 Agenda Packet Page 20
Resolution No. _________
Page 2
BE IT FURTHER RESOLVED HEREBY, the City Manager is authorized to execute
the necessary documents as required by HUD to refinance the existing guaranteed Section 108
Note, and to execute such other documents, contracts, amendments and agreements with HUD,
and to authorize payment of any required fees, as may be necessary to effectuate this refinancing
transaction.
Presented by: Approved as to form by:
________________________________________________________
Kelly Broughton, FASLA Glen R. Googins
Development Services Director City Attorney
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January 15, 2019 File ID: 18-0596
TITLE
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING THE CANNABIS
BUSINESS TAX AT 7% OF GROSS RECEIPTS
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING THE CANNABIS
CULTIVATION TAX AT $25 PER SQUARE FOOT OF CANOPY
RECOMMENDED ACTION
Council adopt the resolutions.
SUMMARY
On August 7th, 2018 City Council adopted Ordinance No. 3434 adding Chapter 5.21, “Cannabis Business
Tax,” to Title 5 of the Chula Vista municipal Code establishing cannabis tax ranges on all cannabis business
activities in Chula Vista to take effect ten days after the certification of its approval by voters at the
November 6, 2018 election. On November 6, 2018 the voters of the City of Chula Vista voted in favor of the
cannabis tax ranges. A statewide survey was conducted by staff to make a recommendation to set the
initial tax within Council’s established ranges. The state cannabis business average is 6% of gross receipts
and the City of San Diego has a gross receipts tax of 8%. Staff is recommending that Council establish an
initial 7% gross receipts tax on all cannabis businesses excluding commercial cannabis cultivation. The
majority of California Cities that allow for cannabis cultivation set their square footage tax at $25 per
square foot of canopy. Staff is recommending an initial $25 per square foot of canopy tax for all
commercial cannabis cultivation businesses.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act
(CEQA) and it has been determined that the activity qualifies for an exemption pursuant to State CEQA
Guidelines Section 15183 (Projects Consistent with a Community Plan or Zoning); Section 15301 (Existing
Facilities); Section 15303 (New Construction or Conversion of Small Structures); and 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. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable
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DISCUSSION
In November of 2016 the voters of the State of California adopted the Adult Use of Marijuana Act (AUMA)
which decriminalized non-medicinal cannabis and established a regulatory system for non-medicinal
cannabis businesses in California. In June of 2017, the California State Legislature established a
comprehensive set of laws regulating both individual and commercial medicinal and non-medicinal
cannabis activity throughout California. In response to changes in California law the City decided to license,
and regulate commercial cannabis activity by adopting Ordinance No. 3418, adopted by the City Council on
March 6, 2018 and codified as Chula Vista Municipal Code Chapter 5.19. Ordinance No. 3418 and the
associated staff report are included as Attachment 1. to this report; Chapter 5.19 is included as Attachment
3 to this report.
On August 7th, 2018, the Chula Vista City Council adopted Ordinance No. 3434 adding chapter 5.21,
“Cannabis Business Tax” to title 5 of the Chula Vista Municipal Code to establish a tax on cannabis business
activity. Ordinance No. 3434 is attached as attachment 2. The ordinance took effect ten days after the
certification of its approval by the voters at the November 6, 2018 election, pursuant to Election Code
section 9217, and imposes a general tax that generates revenue that may be used for any lawful purpose of
the City, in the discretion of the City Council. Chula Vista Municipal Code chapter 5.21 imposes a tax, to be
adopted by ordinance or resolution of the City Council, within a range of 5%-15% of gross receipts on all
cannabis businesses excluding cannabis cultivation businesses, and within a range of $5 to $25 per square
foot of canopy on all cannabis cultivation businesses.
In order to make an initial tax rate recommendation to the City Council, Staff surveyed municipal cannabis
tax rates throughout the state of California. Staff determined that the current average gross receipts non-
cultivation cannabis businesses e is 6%. Staff then noted that the City of San Diego currently has their gross
receipts tax set at 8%. Staff is recommending that City Council set an initial 7% gross receipts tax on all
cannabis businesses except cannabis cultivation and then evaluatesuch rateafter a period of one year or as
determined by Council. Staff also determined that the majority of California cities that allow for cannabis
cultivation have a $25 per square foot of canopy tax rate. As a result, Staff is recommending an initial tax
rate of $25 per square foot of canopy with evaluation after one year or as determined by Council.
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.
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CURRENT-YEAR FISCAL IMPACT
No current fiscal impact
ONGOING FISCAL IMPACT
It will have a positive fiscal impact which will be discussed in future budget workshops as more
information is available
ATTACHMENTS
1. Staff Report dated 11/13/2018 and Ordinance
2.Ordinance No. 3446
3. Amended Municipal Code chapter 5.19
Staff Contact: Kelley Bacon, Deputy City Manager
2019-01-15 Agenda Packet Page 24
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA SETTING THE CANNABIS BUSINESS TAX
AT 7% OF GROSS RECEIPTS
WHEREAS, in March 2018, the City Council adopted Ordinance No. 3418, codified as
Chula Vista Municipal Code Chapter 5.19, which created a licensing and regulatory structure for
the operation of lawful cannabis businesses in the City of Chula Vista (the “Cannabis Licensing
Ordinance”); and
WHEREAS, the legal effectiveness of the Cannabis Licensing Ordinance was made
expressly contingent upon the voter approval of a tax measure imposing an excise tax on all
commercial cannabis businesses in the City; and
WHEREAS, in August 2018, the City Council adopted Ordinance No. 3434, adding
Chapter 5.21, “Cannabis Business Tax” to title 5 of the Chula Vista Municipal Code; subject to
the approval of a simple-majority vote of the electorate; and
WHEREAS, in November 2018 the voters of the City of Chula Vista approved Ordinance
No. 3434, which then became effective in December 2018; and
WHEREAS, Chula Vista Municipal Code Section 5.21.050 imposes on every cannabis
business in the City, excluding cannabis cultivation businesses, an annual tax rate to be
established by ordinance or resolution of the City Council within the range of five percent up to a
maximum of fifteen percent of the business’s gross receipts; and
WHEREAS, staff surveyed cannabis business gross receipts tax rates statewide and found
the state average to be approximately six percent for all cannabis businesses, excluding
commercial cannabis cultivation businesses; and
WHEREAS, staff has determined that the City of San Diego has implemented an eight
percent tax for retail cannabis businesses; and
WHEREAS, staff is recommending that the City Council establish the initial Cannabis
Business Tax rate at 7%, pursuant to Chula Vista Municipal Code Section 5.21.050.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby establish the Cannabis Business Tax rate at 7%, pursuant to Chula
Vista Municipal Code Section 5.21.050.
Presented by Approved as to form by
Kelley K. Bacon Glen R. Googins
Deputy City Manager City Attorney
2019-01-15 Agenda Packet Page 25
2019-01-15 Agenda Packet Page 26
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA SETTING THE CANNABIS CULTIVATION
TAX AT $25 PER SQUARE FOOT OF CANOPY
WHEREAS, in March 2018, the City Council adopted Ordinance No. 3418, codified as
Chula Vista Municipal Code Chapter 5.19, which created a licensing and regulatory structure for
the operation of lawful cannabis businesses in the City of Chula Vista (the “Cannabis Licensing
Ordinance”); and
WHEREAS, the legal effectiveness of the Cannabis Licensing Ordinance was made
expressly contingent upon voter approval of a tax measure imposing an excise tax on all
commercial cannabis businesses in the City; and
WHEREAS, in August 2018, the City Council adopted Ordinance No. 3434, adding
Chapter 5.21, “Cannabis Business Tax,” to title 5 of the Chula Vista Municipal Code, subject to
approval of a simple-majority of the electorate; and
WHEREAS, in November 2018, the voters approved Ordinance No. 3434, which then
became effective in December 2018; and
WHEREAS, Chula Vista Municipal Code Section 5.21.060 imposes on every Cannabis
Business engaged in Commercial Cannabis Cultivation in the City, an annual tax in an amount to
be established by ordinance or resolution of the City Council within the range of $5 to $25 per
square foot of Canopy; and
WHEREAS, staff surveyed the municipal and county cannabis tax rates statewide and
determined that the majority of California cities that allow for cultivation set their square footage
tax at $25 per square foot of canopy; and
WHEREAS, staff is recommending that Council set the initial Commercial Cannabis
Cultivation tax at $25 per square foot of canopy, pursuant to Chula Vista Municipal Code
Section 5.21.060.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby establish the initial Commercial Cannabis Cultivation Tax at $25 per
square foot of Canopy, pursuant to Chula Vista Municipal Code Section 5.21.060..
Presented by Approved as to form by
Kelley K Bacon Glen R. Googins
2019-01-15 Agenda Packet Page 27
Deputy City manager City Attorney
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November 13, 2018 File ID: 18-0513
TITLE
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS OF CHULA VISTA MUNICIPAL CODE
CHAPTER 5.19
RECOMMENDED ACTION
Council place the ordinance on first reading.
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 envir onmental 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.
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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 various state regulations.
Proposed amendments include the following clarifications and additions:
• Language explaining when 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 the specific factors that may result in revocation, denial, or refusal to renew an
employee work permit rather than referring 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 tying the 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 5.19 provisions.
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.).
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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
2019-01-15 Agenda Packet Page 31
S:\Cannabis\Ordinance Amending CVMC 5.19 11.8.18.doc
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER
5.19
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:
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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.
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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.
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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)
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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:
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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ORDINANCE NO. 3446
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; and
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.
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NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
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;
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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 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
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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; 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.
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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:
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.
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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.
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 P hase 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,
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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.
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.
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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
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.
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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.
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.
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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
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.
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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.
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.
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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
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.
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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
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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]]
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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
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.
SIGNATURES ON THE FOLLOWING PAGE]
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Presented by Approved as to form by
Gary Halbert Glen R. Googins
City Manager City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 27th day of November 2018, by the following vote:
AYES: Councilmembers: Aguilar, Diaz, Padilla, and Casillas Salas
NAYS: Councilmembers: McCann
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 3446 had its first reading at a regular meeting held on the 13th day of November
2018 and its second reading and adoption at a regular meeting of said City Council held on the
27th day of November 2018; and was duly published in summary form in accordance with the
requirements of state law and the City Charter.
Dated Kerry K. Bigelow, MMC, City Clerk
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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,
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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
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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,
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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.
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“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.
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“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.
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“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.
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“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.
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“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.
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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:
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(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.
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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:
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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.
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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.
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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
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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.
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
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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,
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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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.
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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.
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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.
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January 15, 2019 File ID: 18-0503
TITLE
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A JOINT USE AND
MAINTENANCE AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA, THE
METROPOLITAN TRANSIT SYSTEM, AND THE SAN DIEGO ASSOCIATION OF GOVERNMENTS
ASSIGNING RESPONSIBILITY FOR THE MAINTENANCE OF IMPROVEMENTS ASSOCIATED WITH
THE SOUTH BAY BUS RAPID TRANSIT LINE
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM
OF UNDERSTANDING BETWEEN THE SAN DIEGO ASSOCIATION OF GOVERNMENTS, THE CITY OF
CHULA VISTA, AND THE METROPOLITAN TRANSIT SYSTEM REGARDING RAPID TRAFFIC
SYSTEMS OPERATIONS ASSOCIATED WITH THE SOUTH BAY BUS RAPID TRANSIT LINE
C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MAINTENANCE
AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND THE METROPOLITAN TRANSIT
SYSTEM FOR THE MAINTENANCE OF THE EAST PALOMAR STREET TRANSIT STATION STREET
IMPROVEMENTS
D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR
2018/2019 OPERATING BUDGET FOR THE DEPARTMENT OF ENGINEERING AND CAPITAL
PROJECTS' SUPPLIES AND SERVICES ($163,000) AND UTILITIES ($17,000) EXPENSE CATEGORIES
BASED ON UNANTICIPATED REVENUE ($180,000) ASSOCIATED WITH THE JOINT USE AND
MAINTENANCE AGREEMENT AND RAPID TRAFFIC SYSTEMS MEMORANDUM OF
UNDERSTANDING (4/5 VOTE REQUIRED)
RECOMMENDED ACTION
Council adopt the resolutions.
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SUMMARY
The resolutions in this item propose to approve the Joint Use and Maintenance Agreement (JUMA) and the
Memorandum of Understanding (MOU) Regarding Rapid Traffic Systems Operations, and the Maintenance
Agreement (MA) for the East Palomar Street Transit Station Street Improvements by and between the City
of Chula Vista (City), the Metropolitan Transit System (MTS), and the San Diego Association of
Governments (SANDAG). The two agreements, JUMA and MA, delineate the ongoing maintenance
responsibilities for the facilities and improvements that were constructed as part of the South Bay Bus
Rapid Transit (SBBRT, also known as South Bay Rapid) project and, the East Palomar Street/Interstate 805
Direct Access Ramp and Transit Station project. The MOU delineates and assigns the responsibilities and
activities required by the three aforementioned parties to operate and maintain the Traffic Systems for the
SBBRT. The JUMA and MOU also address the funding responsibilities for operation and maintenance
activities between the City, SANDAG, and MTS, as applicable.
ENVIRONMENTAL REVIEW
This 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.
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DISCUSSION
South Bay Bus Rapid Transit
The San Diego Association of Governments (SANDAG) has been constructing various transit facilities as
part of the South Bay Bus Rapid Transit (SBBRT, also known as South Bay Rapid) project primarily along
East Palomar Street from Interstate 805 to Orion Avenue. The SBBRT facilities include bus stations along
its alignment following East Palomar Street and Otay Ranch Town Center before turning into the Millenia
development and terminating at Orion Avenue. Much of the alignment includes a dedicated transit
guideway separated from the road travel lanes, with a single-lane dedicated bridge crossing over State
Route 125. In addition to the physical infrastructure such as pavement, landscaping, and irrigation, the
SBBRT facilities are served by an extensive network of traffic control and street lighting systems.
The agreements to be executed by approval of these resolutions are the result of several years of
collaboration between the City, SANDAG, and MTS to develop an operations and maintenance plan that all
parties can approve. The City provided SANDAG and MTS with the most recent drafts for their review and
comments in June 2018, and the agreements presented in this item reflect the assigned responsibilities to
which all parties have agreed. Currently, the City, SANDAG, and MTS are negotiating the appropriate
format for the JUMA and MOU; therefore, the resolutions in this item, which authorize approval of the
agreements, authorize the Mayor to execute revised versions of the agreements incorporating additional
minor modifications that may be requested by SANDAG or MTS, or as determined by the City Attorneyto be
necessary or appropriate for legal compliance or risk mitigation.
Joint Use and Maintenance Agreement for South Bay Bus Rapid Transit Route (Resolution A)
The responsibility for maintaining the physical facilities recently constructed for the SBBRT are divided
between the City and MTS. Improvements constructed exclusively for SBBRT bus use (i.e. dedicated
guideway) or operational need (i.e. transit signal priority systems) are primarily the responsibility of MTS.
The City primarily maintains the areas open to public which is very similar to what existed prior to
construction of the SBBRT (i.e. public road, sidewalk, signals). The JUMA’s Exhibit A provides detailed
drawings of the areas of responsibility. A significant number of intersections required the installations of
Traffic Signals. The City will be reimbursed for the maintenance and utility costs for these new signals
through this agreement. The agreement includes SANDAG and identifies items eligible for Transnet
funding and reimbursement procedures.
The JUMA allows flexibility for each agency to fulfill their responsibilities by using their own employees or
contractors. Additionally, MTS could request that the City provide the service to perform some or all of
their responsibilities in the JUMA. A separate agreement would be negotiated to establish terms of such an
arrangement and would be brought before Council for approval at a future time.
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Rapid Transit Systems Operations Memorandum of Understanding(Resolution B)
The MOU defines each agencies responsibility for operating, maintaining and reporting the SBBRT
Transit/Traffic Systems. The City responsibilities for operations will primarily be carried out by the Traffic
Engineering Branch of the Department of Engineering and Capital Projects. The MOU, as with the JUMA,
identifies the new efforts required by all parties and allows for reimbursement using Transnet funds. To
implement the reimbursement procedure defined in the JUMA and MOU, Resolution D proposes to
appropriate funds from the General Fund to the Traffic Engineering Branch to temporarily fund operations
and maintenance activities for SBBRT facilities until reimbursement is received. The City intends to invoice
for reimbursement on a quarterly basis. Reimbursements would be deposited to the General Fund.
Maintenance Agreement for the Palomar Street Transit Station (Resolution C)
This Maintenance Agreement delineates the maintenance responsibilities between the City and MTS for the
East Palomar Transit Station improvements recently constructed in the City right of way. Primarily, MTS is
responsible for the station Monument Sign, transit stop area and amenities, enhanced landscape areas and
associated water and irrigation systems. The City is responsible for the public street and sidewalk
improvements.
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 segments of City right-of-way that are 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.).
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 proposed resolution
supports the Strong and Secure Neighborhoods and Connected Community goals as it establishes a means
for operating and maintaining a critical transit link for eastern Chula Vista and the San Diego region.
CURRENT-YEAR FISCAL IMPACT
SANDAG or MTS, as applicable, will reimburse the City through MTS for costs associated with maintaining
and operating SBBRT improvements as defined in the respective agreements.
SANDAG will reimburse the City for energy costs from new traffic signals and street lights that were
installed as part of the SBBRT project.
Approval of Resolution “D” will amend the Fiscal Year 2018/2019 operating budget for the Department of
Engineering and Capital Projects to cover maintenance and energy costs associated with maintaining the
SBBRT, which will be funded by reimbursement from SANDAG or MTS; thereby representing no impact to
the General Fund.
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ONGOING FISCAL IMPACT
The appropriations identified in Resolution “D” account for the additional funds needed to cover the
ongoing costs of City operation and maintenance efforts. The ongoing costs of operating and maintaining
new infrastructure associated with the SBBRT project represents no fiscal impact to the General Fund as
these costs will be reimbursed by SANDAG or MTS.
ATTACHMENTS
1. SBBRT Alignment Map through Chula Vista
2. Joint Use andMaintenance Agreement
3. Memorandum of Understanding Regarding Rapid Systems Operations and Maintenance
4. East Palomar Street Transit Station Maintenance Agreement
Staff Contact: Eddie Flores, City Traffic Engineer
2019-01-15 Agenda Packet Page 126
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A JOINT USE AND
MAINTENANCE AGREEMENT BY AND BETWEEN THE
CITY OF CHULA VISTA, THE METROPOLITAN TRANSIT
SYSTEM, AND THE SAN DIEGO ASSOCIATION OF
GOVERNMENTS ASSIGNING RESPONSIBILITY FOR THE
MAINTENANCE OF IMPROVEMENTS ASSOCIATED WITH
THE SOUTH BAY BUS RAPID TRANSIT LINE
WHEREAS, the San Diego Association of Governments (SANDAG) is constructing the
South Bay Bus Rapid Transit (“SBBRT”) from downtown San Diego to I-805 then along East
Palomar Street, over SR-125, around Otay Ranch Town Center Mall to Millenia, eventually
continuing onto Hunte Parkway, and onto SR-125 to the Otay Mesa Intermodal Transportation
Center in the southwest quadrant of the SR-905/Siempre Viva Road Interchange; and
WHEREAS, the SBBRT is funded by the regional TransNet sales tax; and
WHEREAS, the SBBRT is expected to provide Bus Rapid Transit (“BRT”) service for
those commuting between downtown San Diego and the Otay Mesa Border Crossing is of
regional importance to the Metropolitan Transit System (MTS), the City of Chula Vista (City),
SANDAG, and the public; and
WHEREAS, MTS intends to operate BRT services on the SBBRT; and
WHEREAS, the City of Chula Vista owns, controls, and maintains certain lands and
property for public transportation purposes along East Palomar Street, Raven Avenue, Eastlake
Parkway, Birch Road and future local street network and BRT Guideway east of Magdalena
Avenue and within the Otay Ranch Mall and Millenia project limits; and
WHEREAS, the City, SANDAG, and MTS have engaged in negotiations for terms for a
Joint Use and Maintenance Agreement, which is intended to clarify and establish the division of
maintenance and respective responsibilities as to the area identified in Exhibit A of the subject
Joint Use and Maintenance Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it approves the Joint Use and Maintenance Agreement by and between the City of Chula
Vista, the Metropolitan Transit System, and the San Diego Association of Governments for the
maintenance of improvements associated with the South Bay Bus Rapid Transit line, in the form
presented, with such modifications as may be required or approved by the City Attorney.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that,
subject to the prior approval of the Joint Use and Maintenance Agreement by both the
Metropolitan Transit System and the San Diego Association of Governments, it authorizes and
directs the Mayor or designee to execute the same.
2019-01-15 Agenda Packet Page 127
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that a
copy of the fully executed Joint Use and Maintenance Agreement shall be kept on file in the
Office of the City Clerk.
Presented by Approved as to form by
William S. Valle Glen R. Googins
Director of Engineering &City Attorney
Capital Projects
2019-01-15 Agenda Packet Page 128
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE SAN DIEGO
ASSOCIATION OF GOVERNMENTS, THE CITY OF CHULA
VISTA, AND THE METROPOLITAN TRANSIT SYSTEM
REGARDING RAPID TRAFFIC SYSTEMS OPERATIONS
AND MAINTENANCE ASSOCIATED WITH THE SOUTH
BAY BUS RAPID TRANSIT LINE
WHEREAS, the San Diego Association of Governments (SANDAG) is constructing the
South Bay Bus Rapid Transit (“SBBRT”) from downtown San Diego to I-805 then along East
Palomar Street, over SR-125, around Otay Ranch Town Center Mall to Millenia, eventually
continuing onto Hunte Parkway, and onto SR-125 to the Otay Mesa Intermodal Transportation
Center in the southwest quadrant of the SR-905/Siempre Viva Road Interchange; and
WHEREAS, the SBBRT is funded by the regional TransNet sales tax; and
WHEREAS, the SBBRT is expected to provide Bus Rapid Transit (“BRT”) service for
those commuting between downtown San Diego and the Otay Mesa Border Crossing is of
regional importance to the Metropolitan Transit System (MTS), the City of Chula Vista (City),
SANDAG, and the public; and
WHEREAS, the SBBRT project includes multiple capital improvements within the City,
including traffic signal modifications, the BRT guideway, transit signal priority operations and
infrastructure, and the one-lane guideway bridge over State Route 125 necessary to ensure that
BRT service is convenient, reliable, efficient, and safe without preempting functions for public
safety; and
WHEREAS, the City operates and maintains the traffic signal systems and equipment
within its jurisdiction that are involved with SBBRT systems operations; and
WHEREAS, MTS intends to operate BRT services on the SBBRT; and
WHEREAS, the City, SANDAG, and MTS have engaged in negotiations for terms for a
Memorandum of Understanding regarding rapid traffic systems operations which is intended to
clarify the parties’ respective responsibilities related to the operation of the traffic signal systems
for the SBBRT.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it approves the Memorandum of Understanding Between San Diego Association of
Governments, the City of Chula Vista, and the Metropolitan Transit System Regarding Rapid
Traffic Systems Operations, in the form presented, with such modifications as may be required
or approved by the City Attorney.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that,
subject to the prior approval of the Memorandum of Understanding by both the Metropolitan
Transit System and the San Diego Association of Governments, it authorizes and directs the
Mayor or designee to execute the same.
2019-01-15 Agenda Packet Page 129
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that a
copy of the fully executed Memorandum of Understanding shall be kept on file in the Office of
the City Clerk.
Presented by Approved as to form by
William S. Valle Glen R. Googins
Director of Engineering &City Attorney
Capital Projects
2019-01-15 Agenda Packet Page 130
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A MAINTENANCE
AGREEMENT BY AND BETWEEN THE CITY OF CHULA
VISTA AND THE METROPOLITAN TRANSIT SYSTEM FOR
THE MAINTENANCE OF THE EAST PALOMAR STREET
TRANSIT STATION STREET IMPROVEMENTS
WHEREAS, the San Diego Association of Governments (SANDAG) has recently
constructed the East Palomar Street Transit Station (“Project”) at Palomar Street and Raven
Avenue, east of Interstate 805; and
WHEREAS, portions of the Project included roadway improvements within the City
right-of-way; and
WHEREAS, the City and MTS have engaged in negotiations for Maintenance Agreement
for the East Palomar Street Transit Station, which is intended to identify the overall commitment
and responsibilities regarding maintenance of the landscape, irrigation, and sidewalk areas
located within the Project area.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it approves the Maintenance Agreement between the City of Chula Vista and the
Metropolitan Transit System for the East Palomar Street Transit Station Street Improvements, in
the form presented, with such modifications as may be required or approved by the City
Attorney.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that,
subject to the prior approval of the Maintenance Agreement by the Metropolitan Transit System,
it authorizes and directs the Mayor or designee to execute the same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that a
copy of the fully executed Maintenance Agreement shall be kept on file in the Office of the City
Clerk.
Presented by Approved as to form by
William S. Valle Glen R. Googins
Director of Engineering &City Attorney
Capital Projects
2019-01-15 Agenda Packet Page 131
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FISCAL YEAR 2018/2019
OPERATING BUDGET FOR THE DEPARTMENT OF
ENGINEERING AND CAPITAL PROJECTS' SUPPLIES AND
SERVICES ($163,000) AND UTILITIES ($17,000) EXPENSE
CATEGORIES BASED ON UNANTICIPATED REVENUE
($180,000) ASSOCIATED WITH THE JOINT USE AND
MAINTENANCE AGREEMENT AND RAPID TRAFFIC
SYSTEMS MEMORANDUM OF UNDERSTANDING (4/5
VOTE REQUIRED)
WHEREAS, the San Diego Association of Governments (SANDAG) is constructing the
South Bay Bus Rapid Transit (“SBBRT”) from downtown San Diego to I-805 then along East
Palomar Street, over SR-125, around Otay Ranch Town Center Mall to Millenia, eventually
continuing onto Hunte Parkway, and onto SR-125 to the Otay Mesa Intermodal Transportation
Center in the southwest quadrant of the SR-905/Siempre Viva Road Interchange, funded by the
regional TransNet sales tax; and
WHEREAS, the SBBRT is expected to provide Bus Rapid Transit (“BRT”) service for
those commuting between downtown San Diego and the Otay Mesa Border Crossing is of
regional importance to MTS, the City, SANDAG, and the public; and
WHEREAS, the City of Chula Vista owns, controls and maintains certain lands and
property for public transportation purposes along East Palomar Street, Raven Avenue, Eastlake
Parkway, Birch Road and future local street network and BRT Guideway east of Magdalena
Avenue and within the Otay Ranch Mall and Millenia project limits; and
WHEREAS, the SBBRT project includes multiple capital improvements within the City,
including traffic signal modifications, the BRT guideway, transit signal priority operations and
infrastructure, and the one-lane guideway bridge over State Route 125 necessary to ensure that
BRT service is convenient, reliable, efficient, and safe without preempting functions for public
safety; and
WHEREAS, the City operates and maintains the traffic signal systems and equipment
within its jurisdiction that are involved with SBBRT systems operations; and
WHEREAS, MTS intends to operate BRT services on the SBBRT; and
WHEREAS, the City, SANDAG, and MTS intend to enter into a Joint Use and
Maintenance Agreement that clarifies and establishes the division of maintenance and respective
responsibilities as to the area bounded in Exhibit A of said Joint Use and Maintenance
Agreement; and
WHEREAS, the City, SANDAG, and MTS intend to enter into a Memorandum of
Understanding that clarifies responsibilities related to the operation of the mentioned traffic
signal systems and transit signal priority (TSP) systems; and
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WHEREAS, the City’s Traffic Operations section within the Traffic Engineering
Division of the Department of Engineering and Capital Projects manages the operation of the
City’s roadway network, including operation of the City’s traffic signal and street lighting
system; and
WHEREAS, the City’s Traffic Signal and Street Light Maintenance section within the
Traffic Engineering Division of the Department of Engineering and Capital Projects manages the
maintenance of the City’s traffic signal and street lighting system;
WHEREAS, the subject Joint Use and Maintenance Agreement stipulates the process by
which the City will be reimbursed for its efforts to maintain the portions of the SBBRT facilities
for which it is responsible per the agreement, which will require that the City fund said efforts up
front pending subsequent reimbursement from SANDAG or MTS, as applicable; and
WHEREAS, the said Memorandum of Understanding stipulates the process by which the
City will be reimbursed for its efforts to operate traffic signal systems and TSP systems for
which it is responsible per the agreement, which will require that the City fund said efforts up
front pending subsequent reimbursement from SANDAG or MTS, as applicable.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it amends the Fiscal Year 2018/2019 operating budget for the Department of Engineering
and Capital Projects’ Supplies and Services expense category to $163,000 and Utilities expense
category to $17,000 based on unanticipated revenue ($180,000) for the operation and
maintenance of the traffic signal systems associated with the South Bay Bus Rapid Transit line to
be reimbursed, as applicable, in accordance with the Joint Use and Maintenance Agreement and
Memorandum of Understanding by and between the City of Chula Vista, the San Diego
Association of Governments, and the Metropolitan Transit System.
Presented by Approved as to form by
William S. Valle Glen R. Googins
Director of Engineering &City Attorney
Capital Projects
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EXHIBIT A
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JOINT USE AND MAINTENANCE AGREEMENT
THIS JOINT USE AND MAINTENANCE AGREEMENT (“Agreement”), is made and entered into this ___
day of ___________________, 2019, (the “Effective Date”) by and between the CITY OF CHULA VISTA,
a chartered municipal corporation (the “City”), the SAN DIEGO METROPOLITAN TRANSIT SYSTEM, a
State of California public agency (“MTS”), and the SAN DIEGO ASSOCIATION OF GOVERNMENTS, a
political subdivision of the State of California (“SANDAG”), each of which may be referred to individually
as a “Party” or collectively as the “Parties”, with reference to the following facts:
RECITALS
A. Pursuant to Public Utilities Code section 132350, et seq., SANDAG is charged with responsibility
for planning and constructing regional transit projects in San Diego County;
B. Through an Ordinance adopted by SANDAG and approved by the voters, SANDAG oversees a
sales and use tax in San Diego County dedicated to various transportation improvement projects
(TransNet), including various transit projects in Chula Vista. The TransNet tax is currently effective
through March 31, 2048;
C. Pursuant to Public Utilities Code sections 120000, et seq., MTS is the public transit operator in
San Diego county cities and adjacent unincorporated areas, including Chula Vista;
D. As of the Effective Date, SANDAG will have substantially constructed the South Bay Rapid
project (Project) using TransNet funds;
E. The Project is a bus rapid transit route including an exclusive two-lane guideway and transit
stations that runs from downtown San Diego to I-805 then along East Palomar Street, over SR-125,
around Otay Ranch Town Center Mall to Millenia then onto Birch Road, and onto SR-125 to the Otay
Mesa Transit Center in the southwest quadrant of the SR-905/Siempre Viva Road Interchange;
F. The Project will provide Rapid service for those commuting between downtown San Diego and
the Otay Mesa Border Crossing and is of regional importance to MTS, Chula Vista, SANDAG, and the
public, and is more particular described in an operating agreement between MTS and SANDAG (MTS
Doc. No. G1673.0-14.4.1; SANDAG Doc No. 5004387 SOW 4 AM 1);
G. The City owns, controls and currently maintains certain lands and property for public road and
related purposes along East Palomar Street, Eastlake Parkway, Birch Road and future local street
network;
H. Pursuant to Public Utilities Code section 120244, MTS is entitled to the benefit of any right Chula
Vista has to construct or maintain roads, highways, or any other crossings over any public or private
lands;
I. SANDAG, as part of the Project, has constructed various improvements, including an exclusive
Guideway, bridge overcrossing at SR-125, signaling equipment, telecommunications systems, traffic
signals, and traffic signal modifications, signage, striping, markings, storm water facilities, stations, and
appurtenances over portions of local streets, guideway easements, roads, and City-owned right-of-way;
J. Upon completion of construction of transit projects in MTS’s jurisdiction, SANDAG transfers title
of Project-related infrastructure and real property to MTS for ownership, maintenance and operation;
K. Once operation of the Project commences, SANDAG will continue to fund Project maintenance
and operations as allowed by the TransNet ordinance; and
L. This Agreement is intended to delineate the duties and responsibilities of SANDAG, MTS, and
Chula Vista as it relates to the portions of the Project within the boundaries of Chula Vista, more
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particularly described as to the area designated in the “MAINTENANCE AGREEMENT MAP” (Exhibit
“A”), hereinafter referred to as the “JOINT MAINTENANCE AREA.”
AGREEMENT
NOW THEREFORE, in accordance with the mutual benefits contained in the aforementioned Recitals
and in consideration thereof, SANDAG, MTS, and City agree as follows:
DEFINITIONS:
“BRT”means Bus Rapid Transit.
“BRT FACILITY” includes, but is not limited to, BRT GUIDEWAY, striping, signage, stations, curb and
gutter, drainage inlets and other storm water facilities for the benefit of the BRT GUIDEWAY or BRT
station, trash receptacles, shelters, benches, handrails, safety glass walls, stairways, and any other
accessory objects as shown in Exhibit “A.”
“BRT GUIDEWAY” or “DEDICATED GUIDEWAY” means (for the purposes of this project) a dedicated
“BRT buses only” corridor within the median of East Palomar Road, from Oleander Avenue to Magdalena
Avenue, and an independent corridor from Magdalena Avenue to Birch Road. The DEDICATED
GUIDEWAY generally includes the paved area designated for bus only use and the curb and gutter on
each side, unless otherwise noted on Exhibit A.
“City Right-of-Way” means (for the purpose of this project) city owned or controlled land including, but not
limited to, the public streets, curb and gutter, sidewalk, and planting strips.
“JOINT MAINTENANCE AREA” means the area bounded in the attached “MAINTENANCE
AGREEMENT MAP” (Exhibit “A”).
“Maintain” and “maintain” means the performance of “maintenance” as defined in Section 27 of the
California Streets and Highway Code and shall include but not be limited to performing all necessary
Repairs and Replacements of any structure, safety convenience or device, planting, illumination
equipment, or facility.
“Rapid” (formerly known as Bus Rapid Transit) is a flexible, high performance transit mode that uses
buses or special rubber tire-based vehicles operating on pavement, and that combines a variety of
physical, operating and system elements into a permanently integrated system with a quality image and
unique identity. TSP and DEDICATED GUIDEWAY operations are intended to improve the quality of
Rapid.
“Repair” means the necessary activities, by the party charged with maintenance, to correct problems with
an existing installation/facility that is deemed inoperable by the owner/operator.
“Replacement” means the action or process of replacing something (in kind) when an owner/operator
cannot correct a problem with an existing facility and it is deemed inoperable. The party charged with
maintenance of the facility shall replace that existing facility with another of the same size and capacity.
“Signalized Intersections” means traffic control equipment used for the operation of traffic intersections
with signals including, but not limited to detectors, poles, signal indications, conduits, wiring, controllers,
cabinets, safety lights, signage, markings, striping, and TSP-related equipment (where applicable)
including phase selectors, detector loops, optical receivers, and special BRT signs, phase selectors,
detector loops, optical receivers, special signs, and markings.
“TSP” means Transit Signal Priority. TSP is an operational strategy that primarily facilitates the
movement of transit vehicles (usually those in-service), such as buses, through traffic-signal controlled
intersections. Objectives of TSP include improved schedule adherence and improved transit travel time
consistency while minimizing impacts to normal traffic operations.
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CITY AGREES:
1. To maintain each of the City’s streets, public access easements, landscape maintenance districts
and roads within the JOINT MAINTENANCE AREA, except those areas, improvements, and facilities
designated to be maintained by MTS in this Agreement.
2. To use reasonable efforts to maintain the areas, improvements, and facilities within City Right-of-
Way designated to be maintained by the City in this Agreement in such manner as to not unreasonably
interfere with the operation of the BRT GUIDEWAY.
3. To notify MTS of City access into BRT GUIDEWAY for any maintenance that is the obligation of
City under this Agreement.
4. Upon approval of an encroachment permit for the BRT FACILITY, to grant access to the JOINT
MAINTENANCE AREA to MTS for the purpose of maintenance of the BRT FACILITY.
5. To maintain all Signalized Intersections identified on Exhibit “B”, which is attached hereto and
incorporated herein, subject to reimbursement for maintenance of “new” intersections by MTS or
SANDAG as provided herein.
6. To maintain TSP-related equipment at “existing” Signalized Intersections as identified on Exhibit
“B”.
7. To perform routine maintenance, per Exhibit “D,” on Rapid route traffic control systems identified
on Exhibit “B”.
8. To process payment for all electrical energy billings (“existing” and “new”) for Signalized
Intersections listed on Exhibit “B”.
9. If MTS fails to maintain the BRT FACILITY as provided by this Agreement to the satisfaction of
the City, City agrees to provide MTS with written notice of the same.
10. If City determines any part or portion of the BRT FACILITY to be an imminent threat to health or
safety of persons or property, City agrees to provide MTS with notice of the same.
11. The City of Chula Vista point of contact for this Agreement shall be:
William S. Valle
Director/City Engineer
Department of Engineering & Capital Projects
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
(619) 409-5976
MTS AGREES:
12. To submit to City a one-time, no-cost encroachment permit application to perform maintenance
as required by this Agreement. In conjunction with performing work in the City Right-of-Way, MTS
acknowledges it may be required to enter into future cooperative agreements with the City to define the
cost and responsibilities for the City’s project support services, including but not limited to design
development reviews, construction inspection, and/or oversight, related to any present or future
improvements, protection, modification, replacement, removal, or relocation of the BRT FACILITY
performed by MTS or their respective agents.
13. To maintain, protect, relocate, and reconstruct the BRT FACILITY and all other areas and
locations identified as MTS’ responsibility on Exhibit “A”, which is attached hereto and incorporated
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herein, in a clean, safe, and functioning condition. MTS’ maintenance obligations for the BRT FACILITY
include, but are not limited to:
a.performing all Maintenance, inspection, emergency Repair, Replacement, and hazardous
material cleanup in the MTS maintenance areas shown on Exhibit “A”;
b.performing all work necessary to keep the BRT FACILITY in a clean and safe condition;
c.repainting pavement markings related to use for transit purposes and replacing pavement
markers, as necessary;
d.cleaning and painting to keep all walls, structures, columns, objects, and other surfaces free of
debris, dirt, and graffiti;
e.maintaining in a clean, safe, and functioning condition all storm water or drainage facilities for the
benefit or control of the Rapid route including but not limited to, all modular wetland systems,
underground detention vaults, median detention swales, underground infiltration units, bioretention
basins, modular underground tank systems, CDS units, inlet filters in the MTS maintenance areas shown
on Exhibit “A”;
f.watering, trimming, weeding, and controlling of planting and landscaping within the MTS
maintenance areas shown in Exhibit “A”, asnecessary; and
g.maintaining in a clean, safe, and functioning condition all utilities, structures, power installations,
lighting, fences, signs, gates, and specific signaling equipment or maintained; and
h.maintaining in a clean, safe, and functioning condition the bridge overcrossing at SR-125 in its
entirety, with the exception of the traffic signal controller, traffic signal cabinet, and any TSP systems on
the new traffic signal on the bridge; and
i.maintaining in a clean, safe, and functioning condition the underside of the bridge overcrossing
adjacent and west of SR-125 that is in the City Right-of-Way.
14. To perform its obligations under this Agreement in such manner as to not unreasonably interfere
with the operation, use, or safety of the City Right-of-Way.
15. To perform its obligations under this Agreement in accordance with City’s publicly available
policies and MTS policies, procedures, practices, standards, specifications, and regulations.
16. To be responsible for all maintenance costs for “new” Signalized Intersections as identified on
Exhibit “B” and reimburse the City for all electrical energy payments for all “new” Signalized Intersections
as identified on Exhibit “B”. City agrees to transmit payments to the electric utility provider on behalf of
MTS for electrical energy billings for “new” Signalized Intersections. MTS agrees to reimburse City for all
payments for billings for “new” Signalized Intersections in accordance this Agreement. Upon receipt of an
electrical energy billing for “new” Signalized Intersections, City will invoice MTS for the full amount of the
billing and MTS shall remit payment for such billing to City within thirty (30) calendar days of receipt of
that invoice.
17. To apply for and cause its contractors at every tier to apply for all encroachment and other
necessary permits authorizing entry into the JOINT MAINTENANCE AREA including but not limited to for
purposes of inspection, maintenance, repair, protection, replacement, removal, construction, or
reconstruction of the BRT FACILITY prior to entry or commencement of such work. MTS will submit
individual encroachment and other necessary permit applications (e.g., traffic control) for any substantive
repair activities and obtain all encroachment and other necessary permits prior to the start of any non-
maintenance work within the BRT FACILITY.
18. To give thirty (30) days advance notice to the City before performing any work on the BRT
FACILITY except for routine maintenance performed in MTS's operations area and consistent with
Paragraphs 4 and 13, or for emergency repairs. MTS agrees to provide City with access to the BRT
FACILITY as necessary for City’s inspection or approval.
19. Not to perform work on the traveled way or shoulders of the City’s roadways located within the
City Right-of-Way, without prior written consent by the City.
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20. Not to modify, alter, replace, remove, or relocate any of the BRT FACILITY within the City Right-
of-Way without prior written consent by the City, which consent shall not be unreasonably withheld,
conditioned, or delayed.
21. To take all steps necessary to protect and keep free from damage all facilities and structures
within the City Right-of-Way, including, but not limited to, foundations, bridges, signs, lighting, columns,
and landscaping over, under, above, or adjacent to the JOINT MAINTENANCE AREA. Any damage to
City Right-of-Way facilities and structures in the JOINT MAINTENANCE AREA due to MTS’ actions or
omissions shall be repaired or replaced by MTS within ten (10) days, or as soon thereafter as practicable,
at MTS’ sole expense. MTS shall immediately cease all activities giving rise to such damage and shall
modify their operations so as to prevent any further such damage. If MTS does not complete repairs or
replacements within that time period, the City may but is not obligated to proceed to perform such repairs
or replacements and MTS shall reimburse City for all costs incurred for such repairs or replacements.
22. Not to erect any kind of sign that is not necessary for the operation of MTS’ BRT GUIDEWAY
within the JOINT MAINTENANCE AREA. All signs necessary for the operation of MTS’ BRT GUIDWAY
within the JOINT MAINTENANCE AREA must not interfere with the operation, use, or safety of the City
Right-of-Way. No signs shall be attached to or painted on the City’s facilities or structures except with the
prior written consent of the City, which consent shall not be unreasonably withheld, conditioned, or
delayed.
23. Not to locate any lights on or adjacent to the JOINT MAINTENANCE AREA which would interfere
with the operation, use, or safety of the City Right-of-Way.
24. Following construction of the BRT FACILITY, except for a transfer or assignment to SANDAG, no
transfer or assignment of MTS’ primary responsibility for the design, construction, operation,
maintenance, improvements, modification, protection, replacement, removal, or relocation of the BRT
FACILITY shall be made to any third party without the prior written consent of the City, which consent
shall not be unreasonably withheld, conditioned, or delayed. Such consent shall not be unreasonably
withheld, conditioned, or delayed. All successors-in-interest to MTS will be required to comply with the
terms of this Agreement and any operation, maintenance, improvements, modification, protection,
replacement, removal, and relocation restrictions issued by the City.
25. Upon receipt of notice from City pursuant to Paragraph 9 above, MTS shall cure any failure to
maintain identified by the City by no later than thirty (30) calendar days from the date of City’s notice, or
as soon as practicable thereafter. If MTS does not timely cure such failure to maintain, City may but is
not obligated to (a) perform such maintenance on behalf of MTS at MTS’ sole expense or (b) remove the
BRT FACILITY, in whole or in part, and restore the City Right-of-Way to a safe and operable condition at
MTS' sole expense. Failure of the City to provide notice under Paragraph 9 does not relieve MTS of any
of its obligations under this Agreement.
26. Upon receipt of notice from City as provided in Paragraph 10 above, MTS shall correct the
imminent threats to health or safety identified by the City by no later than twenty-four (24) hours after
receipt of the notice, or as soon as practicable thereafter. If MTS determines that it will be unable to
correct an imminent threat to health or safety within twenty-four (24) hours, it shall immediately secure the
affected area in as safe of a condition as practicably possible and immediately notify the City of the same.
If MTS fails to timely correct an imminent threat to health or safety, City may but is not obligated to make
efforts to correct the imminent threat at MTS’ sole expense. Failure of the City to provide notice under
Paragraph 10 does not relieve MTS of any of its obligations under this Agreement.
27. To notify City in writing of any areas requiring maintenance that is the obligation of City under this
Agreement.
28. To acknowledge City's title and superior rights to the City Right-of-Way and real property covered
by this Agreement, subject to MTS’ rights under Public Utilities Code section 120244.
29. The MTS point of contact for this Agreement shall be:
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Michael B. Daney
Manager of Contract Operations and Passenger Facilities
San Diego Metropolitan Transit System
1255 Imperial Ave., Suite 1000
San Diego, CA 92101-7490
(619) 595-4903
SANDAG AGREES:
30. To reimburse MTS and the City for the maintenance obligations set forth herein to the extent
allowed by the TransNet Extension Ordinance and Expenditure Plan. In the event TransNet funding is no
longer available to fund these obligations, through exhaustion of the allocated TransNet funds and/or
expiration of the TransNet Extension Ordinance, SANDAG and MTS agree to work in good faith and use
best efforts to identify an alternative funding source sufficiently in advance of the exhaustion or expiration
of the allocated TransNet funds so as to ensure compliance with the obligations set forth in this
Agreement.
31. To reimburse the City (through MTS or directly) for the maintenance of traffic control equipment
and utility costs (Exhibit “B”), signs, markings that are directly attributed to the operation of the BRT
service and/or “new” signalized intersections.
32. To reimburse City (through MTS or directly) for all costs associated with maintenance performed
pursuant to Paragraphs 6 and 7 of this Agreement. In addition, SANDAG will reimburse the City for any
additional routine maintenance checks outside of its standard annual routine maintenance check. City
shall bill SANDAG for such costs on quarterly basis unless otherwise agreed to in writing by the Parties.
33. To reimburse City (through MTS or directly) for all costs associated with maintenance or
correction work performed pursuant to Paragraphs 25 and 26 of this Agreement. City shall bill SANDAG
for such costs within a reasonable period after such maintenance or correction work is completed.
34. SANDAG point of contact during construction of the BRT FACILITY:
Omar Atayee
SANDAG
401 B Street, Suite 800
San Diego, CA 92101
(619) 595-5319
35. SANDAG point of contact after construction of the BRT FACILITY is complete:
Kim Kawada
SANDAG
401 B Street, Suite 800
San Diego, CA 92101
(619) 699-1990
IT IS MUTUALLY AGREED THAT:
36. MTS shall have the right to terminate this Agreement by providing twelve (12) months prior
written notice (“Termination Notice”) to the City and SANDAG. MTS shall include a proposed effective
date for termination (“Termination Date”) within the Termination Notice, which shall be no earlier than
twelve (12) months after the date of service of the Termination Notice upon City and SANDAG.
Upon receipt of a Termination Notice, City shall have the option, in City’s sole discretion, to require MTS
to remove all or designated portions of the BRT FACILITY within the City Right-of-Way and restore the
City Right-of-Way to a condition reasonably acceptable to City, at MTS’ sole expense (“Option for MTS
Removal and Restoration”). MTS shall reserve the right to seek reimbursement for any removal or
restoration costs it incurs pursuant to the Option for MTS Removal and Restoration from SANDAG under
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TransNet or alternate funding sources. City shall have twelve (12) months from receipt of a Termination
Notice to exercise its Option for MTS Removal and Restoration. If City fails to timely exercise its Option
for MTS Removal and Restoration as to any or all of the BRT FACILITY, the ownership in such portions
for which City has not timely exercised its Option for MTS Removal and Restoration shall transfer to City
upon the later of: (i) the date that MTS permanently ceases operation of the BRT FACILITY, or (ii) twelve
(12) months after City’s receipt of the Termination Notice.
Notwithstanding the Termination Date, MTS shall continue to secure and maintain the BRT FACILITY in a
clean and safe condition until the latest of the following: (i) the Termination Date, (ii) the date of transfer
of all or designated portions of the BRT FACILITY pursuant to City’s failure to timely exercise its Option
for MTS Removal and Restoration, or (iii) the date that MTS has removed all or designated portions of the
BRT FACILITY, and restored the associated City Right-of-Way to a condition reasonably acceptable to
City, in accordance with City’s Option for MTS Removal and Restoration.
Upon service of a Termination Notice, MTS and SANDAG agree to work in good faith and use best efforts
to identify an alternative funding source sufficiently in advance of the exhaustion or expiration of the
allocated TransNet funds so as to ensure compliance with the obligations set forth in this Agreement as
provided in Paragraph 30 of this Agreement.
37. An individual BRT FACILITY may be added or removed from this Agreement by mutual written
agreement of the Parties and by updating Exhibit “A” or Exhibit “B” in this Agreement. Prior to the
implementation of the new component or proposed revision, the Party proposing the change should
submit a request of its intention to the other Party to this Agreement for review and comment. The party
shall take action to respond to the request within 30 days unless otherwise agreed to by the affected
Parties.
38. As technology advances, new components may be added to the Rapid route traffic control
systems. The Quarterly Standard Performance Checklist, Exhibit “D”, in this Agreement may be updated,
from time to time, following mutual written agreement of the Parties to reflect those changes and by
updating Exhibit “D” in this Agreement.
39. The City periodically reviews and may update its minimum insurance requirements. MTS is
required to maintain the insurance requirements described in Exhibit “E” per this Agreement. Thirty (30)
days prior to any change in its insurance requirements, the City will notify MTS of any changes to its
insurance requirements in relation to this Agreement and will update Exhibit “E” in this Agreement. MTS
may satisfy all or part of the City’s insurance requirements through a program of self-insurance.
40. The BRT FACILITY is and shall be owned, managed, operated, maintained, and controlled solely
by MTS. Except as provided herein, City has no duty, obligation, or responsibility for ownership,
operation, maintenance, or control of the BRT FACILITY.
41. SANDAG and MTS will assume full responsibility for maintenance, liability, repair, protection,
replacement and ultimate or interim removal of said DEDICATED GUIDEWAY as specifically set forth
herein, unless otherwise agreed upon by the City, SANDAG and MTS
42.SANDAG and MTS acknowledge and agree that the communications duct bank within City right-
of-way is owned by the City. Conduit(s) and/or fiber optic cable(s), within the communications duct bank,
are designated for exclusive use by the Parties as assigned in the Project’s as-built construction plans for
the duration of this Agreement.
43.The Parties shall be responsible for the maintenance, management, and use of their respective
communication system conduit(s), fiber optic cable(s), and communications equipment along the Rapid
route.
44. City reserves its right to use the DEDICATED GUIDEWAY, SR-125 bridge overcrossing, and/or
stations within the City right-of-way for future construction, reconstruction, expansion, modification, or
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maintenance purposes without restriction or reimbursement to any party should MTS cease operation of
the DEDICATED GUIDEWAY pursuant to Paragraph 36.
45. This Agreement shall be effective upon the date of execution of the Agreement by MTS,
SANDAG, and City. Each party will pay its costs of allocated maintenance responsibility as identified
herein and no payments are due to City, SANDAG, or MTS by any other, except as noted in this
Agreement. That unless it is amended by the Parties in writing, this Agreement is effective for the life of
TransNet upon execution by all Parties but subject to termination upon a minimum of a 12 months written
notice by any Party and automatically upon termination of legislative or administrative authorization of the
Program by any state or federal government agency.
46. No party to this Agreement shall assign any of its rights or responsibilities under this Agreement,
nor any part hereof, without the prior written consent of all other parties to this Agreement, which consent
shall not be unreasonably withheld, conditioned, or delayed.
47. Neither City nor any officer, official, director, or employee thereof is responsiblefor any damage
or liability occurring by reason of anything done or omitted to be done by MTS or SANDAG under or in
connection with any work, authority, or jurisdiction delegated to MTS or SANDAG under this Agreement.
It is understood and agreed that, pursuant to California Government Code
Section 895.4,MTS or
SANDAG, as applicable, shall fully defend, indemnify, and save harmless City, and all officers, officials,
directors, and employees thereof from all claims, suits, or actions of every name, kind, and
description brought for or on account of injury (as defined in California Government Code Section
810.8) occurring by reason of anything done or omitted to be done by MTS or SANDAG under in
connectionwith any work,authority, or jurisdiction delegated to MTS or SANDAG under this Agreement.
48. Neither MTS, nor any director, officer, or employee thereof, is responsible for any damage or
liability occurring by reason of anything done or omitted to be done by City or SANDAG under or in
connection with any work, authority, or jurisdiction delegated to City or SANDAG under this Agreement.
It is also understood and agreed that, pursuant to California Government Code Section 895.4, City or
SANDAG, as applicable, shall fully defend, indemnify, and save harmless MTS, its directors, officers, and
employees from all claims, suits, or actions of every name, kind, and description brought for or on
account of injury (as defined in California Government Code Section 810.8) occurring by reason of
anything done or omitted to be done by City or SANDAG under or in connection with any work, authority,
or jurisdiction delegated to City or SANDAG under this Agreement.
49. Neither SANDAG, nor any director, officer, or employee thereof, is responsible for any damage
or liability occurring by reason of anything done or omitted to be done by City or MTS under or in
connection with any work, authority, or jurisdiction delegated to City o r M T S under this Agreement.
It is also understood and agreed that, pursuant to CaliforniaGovernment Code Section 895.4, City or
MTS, as applicable, shall fully defend, indemnify,and save harmless SANDAG, its directors, officers, and
employees from all claims, suits, or actions of every name, kind, and description brought for or on
account of injury (as defined in California Government Code Section 810.8) occurring by reason of
anything done or omitted to be done by City or MTS under or in connection with any work, authority, or
jurisdiction delegated to City or MTS under thisAgreement.
50. The parties have entered into a separate agreement/ concerning responsibility for the Traffic
Signal Operations for the Rapid Project entitled Memorandum of Understanding Between the San Diego
Association of Governments, the City of Chula Vista, and the Metropolitan Transit System Regarding
Rapid Traffic Systems Operations (MTS Doc. No. ________; SANDAG Agreement No. ________; City
Agreement No. ________.)
51. Nothing in the provisions of this Agreement is intended to create duties or obligations to or
rights in third parties not parties to this contract or affect the legal liability or either party to the
contract by imposing any standard of care different from the standard of care imposed by law.
52. The parties hereto recognize and agree that separate counterpart signature pages may be
used but that all such pages constitute one and the same Agreement.
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Attachments: Exhibit A Maintenance Agreement Map
Exhibit B List of Traffic Signals
Exhibit C JUMA between the State, SANDAG, and MTS at SR-125
Exhibit D City Routine Maintenance Checklist -Rapid route traffic control system
Exhibit E City Insurance Requirements
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MTS Doc. No. G2198.0-19
10
CITY OF CHULA VISTA SAN DIEGO METROPOLITAN
TRANSIT SYSTEM
By By
MARY CASILLAS-SALAS
Mayor
PAUL C. JABLONSKI
Chief Executive Officer
Approved as to form and Procedure:Approved as to form:
By
By GLEN R. GOOGINS
City Attorney
KAREN LANDERS
General Counsel
SAN DIEGO ASSOCIATION OF
GOVERNMENTS
By
HASAN IKHRATA
Executive Director
By JOHN KIRK
Office of General Counsel
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Project
EXHIBIT A
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OSD-7
OSD-7
SUNBOW II
OSD-35
SUNBOW II
OSD-35
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SUNBOW II
OSD-35
SUNBOW II
OSD-35
SUNBOW II
OSD-35
SUNBOW II
OSD-35
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Traffic
Signal
System No.
Traffic Signal Location Meter Address Alignment
Station
Exhibit A
Sheet No.
New Signal or
Modification Energy Costs
1 East Palomar St/Nacion Av 406 East Palomar TBD 2 New SANDAG 100%
2 East Palomar St/Raven Av 452 East Palomar TBD 2 New SANDAG 100%
3 East Palomar St/Oleander Av 1331 Oleander Ave 404+10 2 New SANDAG 100%
4 East Palomar St/Brandywine Av/Medical Center Dr 1315 Medical Center Dr 424+45 3 Modification City 100%
5 East Palomar St/Sunbow Plaza (Commercial Drwy)683 East Palomar St 430+60 3 New SANDAG 100%
6 East Palomar St/Davies Dr 1381 Davies Dr 434+65 3 Modification City 100%
7 East Palomar St/Medical Center Ct 789 East Palomar St 445+65 3 New SANDAG 100%
8 East Palomar St/Paseo Ladera 847 East Palomar St 454+65 3 Modification City 100%
9 East Palomar St/Brashear Pl 972 East Palomar St 467+15 4 Modification City 100%
10 East Palomar St/Santa Olivia Rd/Santa Carina Dr 993 East Palomar St 475+60 4 New SANDAG 100%
11 East Palomar St/Santa Sierra Dr/Santa Maria Dr 1390 Santa Maria Dr 490+15 4 New SANDAG 100%
12 East Palomar St/Heritage Rd 2582 Heritage Rd 500+00 4 Modification City 100%
13 East Palomar St/Monarche Dr/Santa Rita 1311 Monarche Dr 519+35 5 Modification City 100%
14 East Palomar St/Heritage Station 1339 East Palomar St 524+75 7 Modification City 100%
15 East Palomar St/Monarche Dr/Santa Andrea St 1339 East Palomar St 530+00 5 Modification City 100%
16 East Palomar St/Santa Alicia Av 1489 East Palomar St 539+46 5 New SANDAG 100%
17 East Palomar St/Santa Flora Rd 1555 East Palomar St 558+60 6 New SANDAG 100%
18 East Palomar St/Santa Delphina Av 1166 Santa Delphina Ave 569+60 6 New SANDAG 100%
19 East Palomar St/La Media Rd 1192 La Media Rd 575+00 6 Modification City 100%
20 East Palomar St/Santa Cora Av 1717 East Palomar St 583+45 6 Modification City 100%
21 East Palomar St/Lomas Verde Station 1735 East Palomar St 587+77 8 New SANDAG 100%
22 East Palomar St/Vista Sonrisa Av 1777 East Palomar St 592+00 6 New SANDAG 100%
23 East Palomar St/Santa Rosa Dr 1801 East Palomar St 598+95 6 Modification City 100%
24 East Palomar St/Olympic Pkwy 1825 East Palomar St 605+00 10 Modification City 100%
25 East Palomar St/View Park Wy 1895 East Palomar St 617+70 10 New SANDAG 100%
26 East Palomar St/Santa Venetia Station 1926 East Palomar St 620+50 11 Modification City 100%
27 East Palomar St/Magdalena Av 1943 East Palomar St 623+35 10 New SANDAG 100%
28 East Palomar St/Bridge Overcrossing at SR-125 TBD TBD 10 New SANDAG 100%
29 Town Center Dr/Ring Rd (Otay Ranch Town Center)TBD 644+00 10,12 New SANDAG 100%
30 BRT Guideway/Otay Ranch Town Center (Cinema)TBD 658+85 12 New SANDAG 100%
31 Eastlake Pkwy/Kestrel Falls Rd 1615 Eastlake Pkwy 664+62 12 Modification City 100%
32 Eastlake Pkwy/Birch Rd 1665 Eastlake Pkwy 675+80 12 Modification City 100%
33 Eastlake Pkwy/Stylus St 1738 Eastlake Pkwy 112+56 15 Modification City 100%
34 BRT Guideway Crosswalk at Eastlake Pkwy TBD 108+98 15 New SANDAG 100%
35 BRT Guideway/Solstice Av TBD 104+25 15 New SANDAG 100%
36 BRT Guideway/Orion Av TBD 100+00 15 New SANDAG 100%
37 Orion Av/Stylus St TBD TBD --Modification City 100%
38 Orion Av/Artisan Way TBD TBD --Modification City 100%
39 Orion Av/Birch Rd TBD TBD --Modification City 100%
40 Birch Rd/Millenia Av TBD TBD --Modification City 100%
41 Birch Rd/SR125-NB Ramp TBD TBD --Modification City 100%
42 Birch Rd/SR125-SB Ramp TBD TBD --Modification City 100%
ELECTRICAL ENERGY
EXHIBIT B
ELECTRICALLY OPERATED TRAFFIC CONTROL DEVICES
CITY OF CHULA VISTA & SANDAG
BASIS OF COST DISTRIBUTION
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EXHIBIT D
QUARTERLY STANDARD PERFORMANCE CHECKLIST FOR TSP INTERSECTIONS
• Perform all routine maintenance checks normally performed by the City whether or not a TSP
device is installed
• Check all phase selector card, connections, wiring, and receivers to ensure proper operation (as
per manufacturer recommendations/guidelines)
• Clean optical receivers at least once every six months (if present)
QUARTERLY STANDARD PERFORMANCE CHECKLIST FOR DEDICATED GUIDEWAY
INTERSECTIONS
• Perform all routine maintenance checks normally performed by the City whether or not a TSP
device is installed
• Check all phase selector card, connections, wiring, and receivers to ensure proper operation (as
per manufacturer recommendations/guidelines).
• Check all video and loop-based detection (particularly those supporting Rapid dedicated
guideway operations).
QUARTERLY STANDARD PERFORMANCE CHECKLIST FOR OLG INTERSECTIONS AND TRAFFIC
SIGNAL EQUIPMENT
• Perform all routine maintenance checks normally performed by the City whether or not a TSP
device is installed
• Check all phase selector card, connections, wiring, and receivers to ensure proper operation (as
per manufacturer recommendations/guidelines).
• Clean optical receivers at least once every six months (if present)
• Check all video and loop-based detection for the OLG, including loops that indicate direction
and vehicle counts on the OLG.
• Check that battery backup status is ok at both OLG equipment cabinets.
• Check that the gate control arms are intact, undamaged, and operating properly.
o If gate system appears to be damaged or not functioning properly, then City will report
issue(s) to MTS for evaluation and/or repair.
• Check the emergency preemption system for the OLG is operating as designed (e.g. triggers
proper signal phases, OLG indications, and gate arm activations).
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EXHIBIT E
A. INSURANCE. MTS agrees to abide by the following insurance requirements:
1. General. MTS must procure and maintain, during the period of
performance of this Agreement, and for twelve months after completion,
policies of insurance from insurance companies to protect against claims
for injuries to persons or damages to property that may arise from or in
connection with the performance of the work under this Agreement and
the results of that work by the MTS, his agents, representatives,
employees or subcontractors, and provide documentation of same prior to
commencement of work.
2. Minimum Scope of Insurance. Coverage must be at least as broad as:
a. CGL. Insurance Services Office Commercial General Liability
coverage (occurrence Form CG0001).
b. Auto. Insurance Services Office Form Number CA 0001 covering
Automobile Liability, Code 1 (any auto).
c. WC. Workers’ Compensation insurance as required by the State of
California and Employer’s Liability Insurance.
d. E&O. Professional Liability or Errors & Omissions Liability insurance
appropriate to MTS or the Contractor’s profession.
3. Minimum Limits of Insurance. MTS must maintain limits no less than
those included in the table below:
i. General Liability: (Including
operations, products and
completed operations, as
applicable)
$5,000,000 per occurrence for bodily injury,
personal injury, (including death), and
property damage. If Commercial General
Liability insurance with a general aggregate
limit is used, either the general aggregate
limit must apply separately to this
Project/location or the general aggregate
limit must be twice the required occurrence
limit. The required five million ($5,000,000)
Liability Limit may be met by way of
combined Primary and Umbrella or Excess
Liability limits
ii. Automobile Liability: $1,000,000 per accident for bodily injury,
including death, and property damage.
iii. Workers’ Compensation
Employer’s Liability:
Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee
iv. Professional Liability or
Errors & Omissions Liability
$1,000,000 per occurrence or claim
$2,000,000 aggregate
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4. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the option of
the City, either the insurer will reduce or eliminate such deductibles or self -
insured retentions as they pertain to the City, its officers, officials,
employees and volunteers; or MTS will provide a financial guarantee
satisfactory to the City guaranteeing payment of losses and related
investigations, claim administration, and defense expenses.
5. Other Insurance Provisions. The general liability, automobile liability,
and where appropriate, the worker’s compensation policies are to contain,
or be endorsed to contain, the following provisions:
a. Additional Insureds. City of Chula Vista, its officers, officials,
employees, directors, agents, and volunteers are to be named as
additional insureds with respect to all policies of insurance,
including those with respect to liability arising out of automobiles
owned, leased, hired or borrowed by or on behalf of MTS, where
applicable, and, with respect to liability arising out of work or
operations performed by or on behalf of MTS, including providing
materials, parts or equipment furnished in connection with such
work or operations. The general liability additional insured coverage
must be provided in the form of an endorsement to MTS’s
insurance using ISO CG 2010 (11/85) or its equivalent. Specifically,
the endorsement must not exclude Products/Completed Operations
coverage.
b. Primary Insurance. MTS’s General Liability insurance coverage
must be primary insurance as it pertains to the City, its officers,
officials, employees, directors, agents, and volunteers. Any
insurance or self-insurance maintained by the City, its officers,
officials, employees, directors, or volunteers is wholly separate from
the insurance of MTS and in no way relieves MTS from its
responsibility to provide insurance.
c. Cancellation. The insurance policies required by this Agreement
shall not be canceled by either party, except after thirty days’ prior
written notice to the City by certified mail, return receipt requested.
The words “will endeavor” and “but failure to mail such notice shall
impose no obligation or liability of any kind upon the company, its
agents, or representatives” shall be deleted from all certificates.
d. Active Negligence. Coverage shall not extend to any indemnity
coverage for the active negligence of the additional insureds in any
case where an agreement to indemnify the additional insured would
be invalid under Subdivision (b) of Section 2782 of the Civil Code.
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e. Waiver of Subrogation. MTS’s insurer will provide a Waiver of
Subrogation in favor of the City for each required policy providing
coverage for the term required by this Agreement.
6. Claims Forms. If General Liability, Pollution and/or Asbestos Pollution
Liability and/or Errors & Omissions coverage are written on a claims-made
form:
a. Retro Date. The “Retro Date” must be shown, and must be before
the date of the Agreement or the beginning of the work required
by the Agreement.
b. Maintenance and Evidence. Insurance must be maintained and
evidence of insurance must be provided for at least five years after
completion of the work required by the Agreement.
c. Cancellation. If coverage is canceled or non-renewed, and not
replaced with another claims-made policy form with a “Retro Date”
prior to the effective date of the Agreement, MTS must purchase
“extended reporting” coverage for a minimum of five years after
completion of the work required by the Agreement.
d. Copies. A copy of the claims reporting requirements must be
submitted to the City for review.
7. Acceptability of Insurers. Insurance is to be placed with licensed insurers
admitted to transact business in the State of California with a current A.M.
Best’s rating of no less than A V. If insurance is placed with a surplus
lines insurer, insurer must be listed on the State of California List of
Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of
no less than A X. Exception may be made for the State Compensation
Fund when not specifically rated.
8. Verification of Coverage. MTS shall furnish the City with original
certificates and amendatory endorsements effecting coverage required by
this section of this Agreement. The endorsements should be on insurance
industry forms, provided those endorsements or policies conform to the
requirements of this Agreement. All certificates and endorsements are to
be received and approved by the City before work commences. The City
reserves the right to require, at any time, complete, certified copies of all
required insurance policies, including endorsements evidencing the
coverage required by these specifications.
9. Contractors. MTS must include all contractors as insureds under its
policies or furnish separate certificates and endorsements for each
contractor. All coverage for each contractor is subject to all of the
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requirements included in these specifications. Contractor’s obligation
with respect to the required coverage under Section 3(i), as discussed
above, may be reduced to a minimum of one million ($1,000,000) only
upon the condition and MTS’s agreement that MTS shall name contractor
as an additional insured and MTS’s umbrella or excess liability coverage
also covers subcontractors for an additional four million ($4,000,000).
10. Not a Limitation of Other Obligations. Insurance provisions under this
Article shall not be construed to limit MTS’s obligations under this
Agreement, including Indemnity.
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MEMORANDUM OF UNDERSTANDING
BETWEEN SAN DIEGO ASSOCIATION OF GOVERNMENTS,
THE CITY OF CHULA VISTA, AND THE METROPOLITAN TRANSIT SYSTEM
REGARDING RAPID TRAFFIC SYSTEMS
OPERATIONS
This Memorandum of Understanding (“MOU”) is made and entered into effective as of this ____
day of _________, _____, by and between the San Diego Association of Governments (“SANDAG”), the
City of Chula Vista (“City”), and the Metropolitan Transit System (“MTS”) for the purpose of developing
consensus between said agencies on the operations of the Traffic Signals , Transit Signal Priority (TSP),
and One-Lane Guideway (OLG) systems for the South Bay Rapid Project (hereinafter referred to as the
“Project”).
RECITALS
WHEREAS, SANDAG is responsible for the administration of the local transportation sales tax
program in San Diego County as set forth in the TransNet Extension Ordinance and Expenditure Plan
(TransNet); and
WHEREAS, SANDAG is responsible for constructing transit projects funded by the revenues from
TransNet, including the Project; and
WHEREAS, the Project includes multiple capital improvements within the City, including traffic
signal systems, the Rapid Dedicated Guideway, in line Transit Stations, TSP systems and the OLG bridge
over SR 125; and
WHEREAS, these capital improvements and the underlying systems are necessary to improve
transit system performance by ensuring the Rapid route service is safe, convenient, reliable, and efficient
without impacting preemption functions for public safety; and
WHEREAS, the City operates and maintains the traffic signal systems and equipment within the
jurisdiction which are needed for Rapid systems operations; and
WHEREAS, implementation, proper operation, and monitoring of TSP, traffic signals, and OLG
operations is critical to meeting regional transportation goals; and
WHEREAS, MTS as the Project operator, will be responsible for bus operations on the Rapid
route; and
WHEREAS, MTS will be responsible for maintenance checks and replacement for equipment
located on the vehicle including those non-TSP elements which may impact proper TSP operations, as
well as regular review and update of project schedules to support effective use of TSP, pursuant to
Memorandum of Understanding between MTS and SANDAG, SANDAG Contract number _________;
and
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WHEREAS, City is responsible for traffic signal operations at TSP intersections. Intersection
traffic signal control equipment, including the signal side GTT Opticom Priority Equipment, will be
managed and operated by the City if it is otherwise responsible for that intersection. Full cost recovery to
operate and manage traffic control equipment, including TSP elements, along the Rapid route shall be
billed by the City to SANDAG on a quarterly basis or as mutually agreed upon by the Parties; and
WHEREAS, responsibilities related to bus operations and maintenance will be agreed to in a
separate Memorandum of Understanding between MTS and SANDAG; and
WHEREAS, responsibilities related to the maintenance of the Capital Improvements along the
Rapid dedicated guideway and in line transit stations will be agreed to in a separate Joint Use
Maintenance Agreement (JUMA) between MTS, SANDAG and the City, and
WHEREAS, the Parties agree that monitoring and reporting is a critical component of the success
of this Project, and
WHEREAS, the Parties of this MOU have defined the TSP requirements, made a determination
on where TSP will be implemented, and mutually desire to specify the operation and monitoring
responsibilities of the Parties in regard to the Project.
AGREEMENT
NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as
follows:
DEFINITIONS
1.Communications System are systems for exchanging information including two-way radio
systems for communications between dispatchers and vehicle operators, wireless and wired
communications between field devices and management and monitoring systems, Automatic
Vehicle Locator (AVL) systems, automated dispatching systems, vehicle guidance systems,
telephones, facsimile machines and public address systems.
2.Traffic Signal Controller is the computer (usually located in an equipment cabinet near the
signalized intersection) that controls the operations of the signal based on the signal timing
parameters established for each location.
3.Traffic Signal Phase is a portion of the overall signalized intersection operation that defines the
directions of travel (e.g. eastbound left turn, westbound left turn, etc.) and allowable time
parameters (e.g. max green time, min green time, etc.) that can be controlled based on traffic
and/or settings input by the City.
4.Transit Signal Priority (TSP)is an operational strategy that primarily facilitates the movement of
transit vehicles (usually those in-service), either buses, through traffic signal controlled
intersections. Objectives of TSP include improved schedule adherence and improved transit
travel time consistency while minimizing impacts to normal traffic operations.
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5. Check-In is used for TSP mixed flow, Dedicated Guideway, and One-Lane Guideway operations
to determine a bus is approaching an intersection and to make a request (input) to the traffic
signal controller. This initiates the logic that controls signal phasing and TSP functions.
6.Check-Out is used for Dedicated Guideway and One-Lane Guideway operations to determine a
bus has cleared a particular location or intersection which then initiates additional logic or cancels
certain TSP actions in the signal controller.
7.Green Extension occurs when the green light indication at a traffic signal is extended a short
period of time in the direction of travel of the bus (established per intersection) to allow a bus
more time to move through the intersection.
8.Early Green occurs when a bus arrives on a red light indication at a traffic signal and the
appropriate signal phase is advanced to allow the bus to receive a green light sooner than it
otherwise would allow.
9.Phase Omit occurs when other phases of the operation of the signalized intersection are allowed
to be omitted for a temporary period to allow phases in the direction of travel of the bus to receive
TSP.
10.Active Transit Signal Priority System means a system that allows the bus to request special
transit priority at a particular traffic signal that processes whether or not the request can be
granted given the status of the signal cycle and its configuration. An active TSP approach can be
applied in both mixed flow traffic operations (where the bus travels in regular lanes of traffic) or in
Dedicated Guideway operations.
11.Emergency Pre-emption System means the hardware and software comprising a system that
provides for the altering of standard traffic signal timings and sequences to safely and efficiently
accommodate approaching emergency vehicles in order to reduce response times.
12.Rapid (formerly known as Bus Rapid Transit)is a flexible, high performance transit mode that
uses buses or special rubber tire-based vehicles operating on pavement, and that combines a
variety of physical, operating and system elements into a permanently integrated system with a
quality image and unique identity. TSP and Dedicated Guideway operations are intended to
improve the quality of Rapid.
13.Dedicated Guideway (for the purposes of this project) is a dedicated “Rapid buses only” corridor
within the median of East Palomar Street, from Oleander Avenue to Magdalena Avenue, and an
independent corridor from Magdalena Avenue to Birch Road.
14.Regional Transit Management System (RTMS)is the widely deployed transit Automatic Vehicle
Location (AVL) tracking, communications, and dispatching system used by Metropolitan Transit
System (MTS). This system determines the status and schedule adherence of buses and
supports TSP.
15.Central Signal Management System (CSMS)is a central signal management system deployed
by the City to monitor and manage traffic signal operations. This system is capable of collecting
data from and monitoring individual signals. The City may operate more than one CSMS,
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however for purposes of this project the assumed CSMS is Transparity provided by McCain
Traffic Supply.
16.Central Management Software (CMS) is a supporting system, sourced from Global Traffic
Technologies (GTT), focused on emergency preemption and phase selector data management
and monitoring. This system is an important tool in providing reports on the signal components
related to TSP and Guideway activity.
17.One-Lane Guideway (OLG) Control System (formerly known as One-Way Transit Control
System)is the system deployed to manage bus and potential emergency traffic across the
Guideway bridge over SR 125. This system operates two traffic signals on either side of the
bridge along the single lane of bus operations, and includes electronic signage, additional
sensors, and access control gates.
18.Automatic Vehicle Location (AVL)is a system that senses or calculates, at intervals, the
location of transit vehicles. Vehicle location can be used in various applications, including
schedule adherence monitoring, operational control and incident management through computer-
assisted dispatching, real-time customer information, transit signal priority, etc. Most transit AVL
systems now use global positioning system (GPS) to determine vehicle location.
19.Global Positioning System (GPS)is a system that uses satellites to transmit signals that enable
GPS receivers to determine vehicle location, speed, direction, and time of a vehicle.
20.TSP Corridor means a well-traveled transit corridor where TSP technology is available to
specially equipped buses to allow communications between the transponder on a bus and the
traffic signal.
21.Priority Request refers to the electronic message sent from the vehicle to the traffic signal
equipment to request Early Green or Green Extension priority treatment.
22.Phase Selector is a specific piece of signal equipment which receives and processes Priority
Requests and then determines if this request should be forwarded to the traffic controller for TSP
action. The Phase Selector is an important component of the overall TSP system as it
distinguishes between TSP and emergency preemption requests, and it logs details of the
request made which are useful in monitoring.
23.Division Director in terms of this MOU will mean the Director of Mobility Management and
Project Implementation for SANDAG and the Director of Engineering and Capital Project
Department and/or Public Works Department for the City, or their duly-appointed designees.
24.Rapid Route in terms of this MOU will mean the entire segment of the South Bay Rapid route in
the City of Chula Vista on local roads.
PROJECT DESCRIPTION
SANDAG is working in collaboration with the MTS, Caltrans, and the City to design and build the South
Bay Rapid service as part of the voter approved TransNet program. When completed, South Bay Rapid
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will be a 26-mile route from the Otay Mesa Port of Entry to Downtown San Diego via eastern Chula Vista,
connecting to employment and activity centers in Downtown San Diego and South County. It will be the
fourth Rapid transit project in the San Diego region. Three new Rapid lines along Interstate 15 (I-15) and
in the Mid-City area of San Diego began service in 2014. Following the established MTS route number
convention, the South Bay Rapid will be numbered Route 225.
The South Bay Rapid service will offer passengers high-quality transit that is frequent, reliable, and
comfortable. The project will provide new upgraded vehicles, limited stops, enhanced stations with real-
time vehicle arrival displays, Transit Signal Priority (TSP), signal progression, and a dedicated transit
guideway to provide a more efficient and reliable Rapid transit service. Construction began in 2016 and a
soft opening with limited service began in September 2018, with full implementation in 2019.
The portion of the South Bay Rapid route that is within the City of Chula Vista spans from Millennia to the
East Palomar Street Park & Ride Transit Station (just east of I-805) via East Palomar Street.
There are three traffic operations systems that are critical to the efficient and safe operations of the South
Bay Rapid services. TSP will be active at forty-two (42) traffic signal controlled intersections within the
City of Chula Vista. Nine (9) of these will be at mixed flow intersections and thirty-three (33) of these will
be Dedicated Guideway (and Station) intersections. TSP at mixed flow intersections will change the
signal phase to provide an early green or green extension when a delayed bus is approaching to improve
schedule adherence while minimizing impacts to normal traffic operations. At Dedicated Guideway
intersections, the detection of buses primarily occurs from detector loops in the bus lanes of the
Dedicated Guideway. TSP logic at Dedicated Guideway intersections is based on peer-to-peer logic
where information on a bus activating traffic signal phases at one intersection can be passed to other
downstream signalized intersections. This allows special TSP logic that can extend, shorten, or phase
omit signal phases to benefit the bus. Additionally, the One-Lane Guideway (OLG) bridge connecting
Otay Ranch Town Center and the Santa Venetia Station requires a control system which will manage bus
traffic across the bridge, since two directional traffic will be using a one-way bridge, using traffic signals
on either side of the bridge, electronic signage, sensors, and control gates.
SANDAG AGREES:
1. Management of Rapid Traffic Systems:
a.SANDAG agrees to work with the City in a cooperative effort to develop and input
configurations into the TSP intersections as part of the initial deployment.
b. SANDAG agrees to provide the City with the configuration and backup software
during preliminary and final acceptance of the OLG control system to support the
City’s monitoring and management of the OLG.
c. SANDAG agrees to work with the City to determine the approach and timing to return
the Rapid Dedicated Guideway or OLG to safe operations if the City determines in
their judgement that it is unsafe to operate due to physical issues or signal
operations.
2. Monitoring
a. SANDAG, in cooperation with MTS, will be responsible for the overall monitoring of
TSP, Rapid route, and OLG performance and operation and for notifying the City
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when problems are identified, as well as management of ongoing funds and
agreements.
b. SANDAG will produce quarterly reports to the City and MTS that summarizes the
performance efficiency, problems, or issues related to the TSP, Rapid route and
OLG. SANDAG will also be permitted read-only access or receive preconfigured
reports to obtain data from the MTS Regional Transit Management System (RTMS)
to review problem locations identified through the City data. SANDAG will identify
any issues and provide the necessary information to the City on any problematic
locations in support of meeting goals for the Project.
3. Performance Evaluation
a. To review and comment on service monitoring reports prepared by City in
accordance with:
i. Criteria (to be developed in cooperation with City)
ii. Procedures (to be developed in cooperation with City)
iii. Scheduling (to be developed in cooperation with City)
b. To at least annually have a traffic engineer review and observe the traffic flow along
the OLG and Rapid route, in conjunction with the City. This would include on-site
reviews of the Rapid route to discuss any outstanding operations issues or concerns,
public complaints, complaints from MTS regarding unusual or increasing delays, and
development of an action list including suggested corrective action, follow-up review,
timelines, responsibilities, and/or equipment needs.
4. Funding
a. SANDAG agrees to provide funds for ongoing TSP, Traffic Signal and OLG
operations (including monitoring & reporting) to City, on a full cost recovery basis, to
fulfill the City’s requirements under this MOU.
b. SANDAG shall not be required to provide additional funding without written
amendment to this MOU. SANDAG and the City will evaluate and review the fees
within the formulas at the biannual meetings to determine any potential cost
increases that may have occurred due to economic inflation, unanticipated signal
timing modifications, staff hourly rate changes, vendor contract changes, etc.
c. All payments to City will be made by SANDAG on a quarterly basis or as mutually
agreed upon for actual City costs incurred. City will submit an invoice for payment to
SANDAG detailing all costs incurred by the City based on the cost breakdown.
CITY AGREES:
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1. Management and Operations of Rapid Traffic Systems:
a.The City agrees to operate equipment located along the Dedicated Guideway and at
intersections along the Rapid route to support the operations of traffic signals and
TSP functions (including non-TSP elements that may impact proper TSP operations
such as communications system elements, detector loops, video detection, electric
wiring, and cabinet and controller equipment), and the traffic signal controller for the
OLG to support the access control functions.
b. During regular operations and performance checks, the City will make reasonable
efforts to ensure that appropriate and current controller, signal and TSP timing,
software, and communications configurations are entered or maintained. This will
include special timing plan, peer-to-peer logic, and configuration information for the
OLG and Rapid route intersections. The City will make reasonable efforts to carry
out the standard performance checklist as set forth in Exhibit B on a quarterly basis.
c. The City will make reasonable efforts to maintain copies of the TSP configurations
and Rapid route signal configurations in the controller cabinets where the intersection
signal timing sheets are kept. These configurations will be jointly developed and input
into the signalized intersection as part of the initial deployment in a cooperative effort
between the City and SANDAG.
d. The City will make reasonable efforts to maintain the software configurations and
backup software for the OLG for easy electronic upload either remotely or in the field.
SANDAG will provide the City with the configuration and backup software during
preliminary and final acceptance of that system. The City will make reasonable efforts
to coordinate with MTS and SANDAG on any changes to the OLG’s software
configurations in advance of implementation.
e. City will make reasonable efforts to conduct follow-up operations checks and resolve
functionality issues or failures under the following desired timelines:
i. Once a TSP concern has been identified and reported to the City, the City
will make reasonable efforts for follow-up operational checks within 5 working
days. The City will be responsible for retaining spare equipment (e.g., traffic
signal controllers, phase selectors, video detection cameras) sufficient to
allow a repair within 5 working days of the City’s initial response to the issue.
The total quantity and types of spares necessary to meet this timeline will be
determined by the City.
ii. Once a functionality issue or failure has been reported to the City with a
Rapid route traffic signal or the OLG Control System:
1.The City will make reasonable efforts to provide an initial response
within one (1) hour if it occurs during South Bay Rapid operating
hours.
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2. The City will make reasonable efforts to provide an initial response
by one (1) hour before service begins if it occurs outside of South
Bay Rapid operating hours.
3.The City will make reasonable efforts to notify MTS and SANDAG if
resetting the System or traffic signal controller fails to resolve the
issue within two (2) hours of the attempt to reset.
4. For minor equipment or software failures that can be resolved
installing spare equipment by a City signal technician or
maintenance crew, resolution (repair, software reload, equipment
swap, and/or reset resolution), City will make reasonable efforts to
ensure City’s initial response to the issue will occur within 4 hours.
5. For major equipment or software failures that will require specialized
equipment or outside contractors (e.g. need to replace a detector in
pavement, physical damage to the facilities, etc.), the City will make
reasonable efforts to restore full operations within 5 working days of
the City’s initial response to the issue.
6. If the City determines in their judgement that the Dedicated
Guideway or OLG is unsafe to operate buses, they will make
reasonable efforts to notify SANDAG within 24 hours of this
determination and will notify MTS within one (1) hour to establish
detours. The City will hold a meeting with SANDAG and MTS to
determine the approach and timing to return the Dedicated
Guideway or OLG to safe operations.
7. Once an issue has been resolved, the City will make reasonable
efforts to notify MTS within two (2) hours and SANDAG within 24
hours.
8. If the City is unable to meet these timelines due to the extent of the
damage or issue with the Rapid route signals and/or OLG, they will
make reasonable efforts to notify MTS and SANDAG within 36 hours
of the extent of the issue or damage and set a meeting to discuss
options and temporary operations.
2. Monitoring
a. City will make reasonable efforts to provide SANDAG with the following data from the
traffic signal equipment and systems through one of the options noted below:
i. Emergency Vehicle Preemption Report (low priority & high priority request) –
This report should be provided at a minimum of monthly intervals for all TSP
and Rapid route intersections in the Project. It details each TSP request
received by the traffic signal controller by intersection, date, time, level of
priority, etc. The report should be provided electronically in a format allowing
further processing and comparison.
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1. Alternate Reporting Mechanism: It is anticipated that reporting
improvements will be made to Transparity that make this report
available centrally through Transparity without the need for the City
to “run” the reports and send the electronically to SANDAG.
SANDAG agrees that this alternate reporting mechanism is
acceptable in lieu of the process described above.
ii. Phase Selector or GTT Central Management Software (CMS) EVP Device
Report (low priority/high priority) – TSP and Rapid route intersections also
include data at the Phase Selector which keeps a log of all TSP and
emergency vehicle preemption requests. This log is accessible by accessing
the Phase Selector directly without interacting or interfering with the traffic
signal controller in any way. This log is useful for more detailed analysis of
TSP operations and effectiveness, particularly when compared with data
from RTMS. It provides additional data not available through other reports
on the specific duration of requests, cancellation of requests, and requests
passed through to the traffic signal controller. Once the initial TSP
implementation is in place and operational, this data is expected to be
collected once every 3 months. For TSP enabled intersections, the City will
either download this data from the Phase Selectors and provide the
electronic files to SANDAG or provide appropriate access so that the logs
may be downloaded.
1. Alternate Reporting Mechanism: It is anticipated that reporting
improvements will be made to Transparity and/or GTT’s CMS that
will make this data available without the need to access individual
intersection cabinets. Once such improvements are in place, the
City can make these reports available to SANDAG either directly
through electronic means or through a central reporting resource.
SANDAG agrees that this alternate reporting mechanism is
acceptable in lieu of the process described above.
iii. Phase Selector Opticom Equipment Diagnostics Report – For mixed flow
TSP and Rapid route intersections, when collecting Phase Selector data or
performing regular maintenance checks, the City will run the available Phase
Selector diagnostic check. This check confirms that the priority request
receivers, cabling, and phase selector are operating properly. This data can
be downloaded either to field laptop from individual intersections. The City
will make reasonable efforts to provide a summary of known or reported TSP
equipment failures to SANDAG. This can be done by either providing the
downloaded files or by creating a separate summary list.
iv. The OLG Control System generates specialized alarms and reports specific
to the operation of the OLG. These reports will be contained in the
Transparity system owned and operated by the City. The City will make
reasonable efforts to provide monthly summaries of key reports (or
alternatively provide remote access to the reports to SANDAG) from this
system on the OLG operations to include:
1. Number of buses/vehicles using the OLG by direction
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2. Maximum and average crossing times of the OLG as defined by first
check-in and check-out of the OLG
3. Summaries of bus dwell times awaiting clearance to traverse the
OLG
4. Summary of OLG alarms requiring reset of the system by day, time,
and type as defined in the OLG system manual
b. There may be occasions when particular issues arise that are not consistent with the
reporting schedule above. During these unplanned events, the City will make
reasonable efforts to provide the above noted reports for the identified problem
locations within ten working days’ notice. Alternatively, the City may provide read-
only access or oversight for SANDAG to download Phase Selector and/or traffic
controller event log data and diagnostics reports by SANDAG.
3. Performance Evaluation
a. To maintain logs in the controller cabinets documenting the TSP, traffic signal, and
OLG timing plan and configuration changes.
b. To maintain logs in the controller cabinets documenting TSP, traffic signal, and OLG
maintenance efforts.
4. City will make reasonable efforts to maintain operational control of the intersections that are
identified in this MOU and will collect data appropriate to monitoring TSP, Rapid route, and OLG
performance per this MOU.
5. The system installed at each of the intersections to provide priority for transit vehicles also has the
capability of providing emergency vehicle preemption. City may use the Emergency Pre-emption
System capabilities. The Emergency Preemption settings and operations are the sole responsibility
of the City. If Emergency Pre-emption System changes are made, the TSP settings and parameters
will be maintained unless otherwise agreed by the Parties.
MTS AGREES:
1. Management of Rapid Route Systems:
a.MTS will be responsible for the maintenance checks and replacement of equipment
located on vehicles (e.g. priority request transmitters) including those non-TSP
elements that may impact proper TSP operations and TSP elements, as well as
regular review and update of transit schedules, as appropriate, to support the most
effective use of TSP.
b. MTS shall be responsible for the operation of the OLG bridge overcrossing at the SR-
125 in its entirety except for the OLG’s traffic signal controller, traffic signal cabinet,
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any TSP systems, and software configurations which are the City’s responsibility per
this MOU.
c. MTS shall not, at any time, use or permit the public or any third party to use the
Dedicated Guideway, SR-125 bridge overcrossing, and/or Stations in any manner
that will interfere with or impair any of the City’s municipal duties or operations or the
use of the Rapid facilities as bus transit facilities.
2. Monitoring
a.MTS will perform TSP emitter checks on buses by using the test equipment available
in the IAD yard. These checks will be performed as needed to keep the equipment in
working condition.
b. For the OLG, MTS will monitor operations and interactions of buses/operators with
the OLG system and report the following:
i. Apparent issues with the OLG system operations and/or related signal
operations, including issues such as:
1. Broken or inoperable control gate arms (including location of gate
arm)
2. Inoperable or seemingly problematic Dedicated Guideway traffic
signal indications
3. Inoperable or damaged extinguishable message signs (indicating
buses on the OLG)
4. Unusual delays at the OLG where buses do not appear to be
travelling in the opposing direction to the reported delay
5. Situations (such as bus mechanical failure or safe operation issue)
that prevent the continued operation of the OLG
ii. MTS will notify the City of such situations within one (1) hour of their being
reported by an MTS operator or field supervisor and establish on-going two-
way communications with the City as necessary until the situation is resolved
or is no longer apparent.
iii. If the City indicates they have taken corrective action or repaired the
outstanding situation, MTS will confirm with the City that OLG operations
have returned to normal following buses crossing the OLG in both directions.
c. MTS will follow MTS safety and operational procedures should a potential safety
issue be identified by MTS on the OLG or Dedicated Guideway that requires
operations to be suspended or detours implemented. This may include contacting
police, emergency services, and/or the City’s Traffic Engineering Division.
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d. MTS will log notifications received from the City regarding OLG and Dedicated
Guideway operations and equipment failures.
e. MTS agrees to work with the City to determine the approach and timing to return the
Dedicated Guideway or OLG to safe operations if the City determines in their
judgement that it is unsafe to operate due to physical issues or signal operations.
THE PARTIES MUTUALLY AGREE:
1. The implementation, proper operation, management, and monitoring of TSP is critical to meeting
regional transportation goals and the inclusion of Rapid route service objectives.
2. The Parties recognize the mutual benefits of improving transit system performance through TSP
without significantly impacting traffic circulation or preemption functions for public safety.
3. The Parties recognize that the system components at the affected traffic intersections will support
both TSP and emergency pre-emption functionality; however all settings, primary equipment, and
supporting equipment for emergency pre-emption functionality is the exclusive responsibility of the
entity that owns the intersection.
4. The Parties agree that TSP monitoring and reporting is a critical component of the success of this
Project.
5. It is the intent of the Parties involved to work cooperatively to continue to improve regional traffic
management and transit priority systems in the San Diego region.
6. The mutual benefits of improving transit system performance through TSP should be carried out
without significantly impacting traffic circulation.
7. City will make reasonable efforts to maintain operational control of the intersections that are
identified in this MOU and will collect data appropriate to monitoring TSP performance; and
a. Any changes to signal timing parameters including TSP settings will only be
implemented by the City.
b. City may modify or change timing plans which do not affect TSP operations without
prior review by SANDAG or MTS.
c. For special events, construction, street maintenance or emergencies, City may
modify timing plans without prior review of SANDAG or MTS. The TSP settings and
parameters for the affected intersection(s) should be re-entered into the timing plans
within three (3) days after the event.
d. New and adjusted timing plans along the Rapid route, except OLG, intersections in
Exhibit A which will impact TSP operations, will be submitted to all Parties for a 14-
day review prior to implementation.
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8. City reserves its right to use the Dedicated Guideway, SR-125 bridge overcrossing, and/or Stations
within the City right-of-way for future construction, reconstruction, expansion, modification, or
maintenance purposes without restriction or reimbursement to any party should MTS cease
operation of the Dedicated Guideway and/or Stations for any reason, including but not limited to
termination or expiration of this MOU.
9. SANDAG, MTS, and the City shall be responsible for management, use, and operation of their
respective fiber optic cables and communications equipment along the Rapid route.
10. Additional TSP Corridors, intersections, guideway segments, and/or OLG components may be
added to this MOU by mutual written agreement of the Parties and by updating Exhibit A in this
MOU. Prior to the implementation of the new component, the Party proposing the change should
submit a request of its intention to the other Party to this MOU for review and comment. The party
shall take action to respond to the request within 30 days unless otherwise agreed to by the
affected Parties.
11. Addition or Removal of Other Parties - Other jurisdictions or transit operators may be added as a
party this MOU and current parties may be removed as a party to this MOU. An amendment to this
MOU must be made and agreed upon by all Parties involved in order to add additional parties or to
remove current parties.
12. Scheduled Meetings - The Parties to this MOU will meet biannually to review the monitoring reports
produced by SANDAG and discuss the status and any potential changes to the TSP, Dedicated
Guideway, and/or OLG systems. According to the preference of the Parties involved, the biannual
meetings could be conducted as a conference call. An additional annual meeting should be held to
review and establish annual budgets and annual funding commitments for the coming year before
the annual meeting with the SANDAG Transportation Committee.
13. Conflict Resolution - In the event of a conflict between the Parties, any Party may initiate the
conflict resolution process as follows:
a. The Parties are to submit a memo to all other Parties documenting the reasons and
supporting evidence for the conflict or changes to any part of this MOU. After any
additional information required has been collected, the Parties to this MOU will meet
to discuss the issues and possible solutions in attempting to reach a consensus.
b. If no mutual consensus can be reached by the Parties involved, the reasons and
supporting evidence for the conflict may be presented to the appropriate Division
Directors of each Party in order to reach a resolution. Should the appropriate
Division Directors of each Party approve the requested TSP changes the Parties
involved will be granted permission to implement the proposed changes.
c. In the event that the Parties involved cannot agree on a resolution to the conflict at
Division/Department Director levels, then the Parties agree to abide by the approval
or denial of the requested changes at the Executive Director and City Manager level.
14. That all obligations of SANDAG under the terms of this MOU are subject to the appropriation of the
required resources by SANDAG and the approval of the SANDAG Board of Directors.
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15. Notice -Any notice required or permitted under this MOU may be personally served on the other
party, by the party giving notice, or may be served by certified mail, return receipt requested, to the
following addresses:
For SANDAG:
401 B Street, Suite 800
San Diego, CA 92101
Attn: Kim Kawada
Chief Deputy Executive Director
For MTS:
1255 Imperial Avenue, Suite 1000
San Diego CA 92101
Attn: Timothy E. Allison
Manager of Real Estate Assets
For City of Chula Vista:
276 Fourth Avenue
Chula Vista, CA 91910
Attn: William S. Valle
Director/City Engineer
Department of Engineering & Capital Projects
16. That unless it is amended by the Parties in writing, this MOU is effective for the life of TransNet
upon execution by all Parties but subject to termination upon a minimum of a 90 days written notice
by any Party and automatically upon termination of legislative or administrative authorization of the
Program by any state or federal government agency.
17. Neither SANDAG, MTS, nor City nor any officer, director, or representative thereof is or shall be
responsible for any damage or liability occurring by reason of anything done or omitted to be done
by any other Party under or in connection with any work, authority or jurisdiction delegated to any
other Party under this MOU. It is understood and agreed that, pursuant to Government Code
Section 895.4, each Party to this MOU shall fully defend, indemnify and save harmless all other
parties, including all officers and employees from all claims, suits or actions of every name, kind
and description brought for or on account of injury (as defined in Government Code Section 810.8)
occurring by reason of anything done or omitted to be done by any Party under or in connection
with any work, authority or jurisdiction delegated to any Party under this MOU. The indemnification
provisions of this MOU shall survive termination of the MOU.
18. This MOU shall be interpreted in accordance with the laws of the State of California. If any action is
brought to interpret or enforce any term of this MOU, the action shall be brought in a state or
federal court situated in the County of San Diego, State of California.
19. All terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto,
and each of their respective heirs, executors, administrators, successors, and assigns.
20. For purposes of this MOU, the relationship of the parties is that of independent entities and not as
agents of each other or as joint venture or partners. The parties shall maintain sole and exclusive
control over their personnel, agents, consultants, and operations.
21. This MOU shall be interpreted in accordance with the laws of the State of California. If any action is
brought to interpret or enforce any term of this MOU, the action shall be brought in a state or
federal court situated in the County of San Diego, State of California.
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22. All terms, conditions, and provisions hereof shall inure to and shall bind each of the Parties hereto,
and each of their respective heirs, executors, administrators, successors, and assigns.
23. No alteration or variation of the terms of this MOU shall be valid unless made in writing and signed
by the parties hereto, and no oral understanding or agreement not incorporated herein shall be
binding on any of the parties hereto.
24. Nothing in the provisions of this MOU is intended to create duties or obligations to or rights in third
parties to this MOU or affect the legal liability of the parties to this MOU.
25. This MOU may be executed in any number of identical counterparts, each of which shall be
deemed to be an original, and all of which together shall be deemed to be one and the same
instrument when each party has signed one such counterpart.
Attachments: Exhibit A
Exhibit B
Exhibit C
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IN WITNESS WHEREOF, the Parties hereto have executed this MOU effective on the day and year first
above written.
CITY OF CHULA VISTA SAN DIEGO METROPOLITAN
TRANSIT SYSTEM
By By
MARY CASILLAS-SALAS
Mayor
PAUL C. JABLONSKI
Chief Executive Officer
Approved as to form and Procedure: Approved as to form:
By
By GLEN R. GOOGINS
City Attorney
KAREN LANDERS
General Counsel
SAN DIEGO ASSOCIATION OF
GOVERNMENTS
By
HASAN IKHRATA
Executive Director
Approved as to form:
By JOHN KIRK
Office of General Counsel
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EXHIBIT A
PROJECT LOCATION
The San Diego Association of Governments (SANDAG) is working in collaboration with the Metropolitan
Transit System (MTS), Caltrans, and the City of Chula Vista to design and build the South Bay Rapid
service as part of the voter approved TransNet program. When completed, South Bay Rapid will be a 26-
mile route from the Otay Mesa Port of Entry to Downtown San Diego via eastern Chula Vista, connecting
to employment and activity centers in Downtown San Diego and South County.
The portion of the South Bay Rapid route that is within the City of Chula Vista spans from Millennia to the
East Palomar Street Park & Ride Transit Station (just east of I-805) via East Palomar Street along the
following signalized intersections:
East Palomar St/Nacion Av
East Palomar St/I-805 DAR (CALTRANS)
East Palomar St/Raven Av
East Palomar St/Oleander Av
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East Palomar St/Brandywine Av/Medical Center Dr
East Palomar St/Sunbow Plaza (Commercial Drwy)
East Palomar St/Davies Dr
East Palomar St/Medical Center Ct
East Palomar St/Paseo Ladera
East Palomar St/Brashear Pl
East Palomar St/Santa Olivia Rd/Santa Carina Dr
East Palomar St/Santa Sierra Dr/Santa Maria Dr
East Palomar St/Heritage Rd
East Palomar St/Monarche Dr/Santa Rita
East Palomar St/Heritage Station
East Palomar St/Monarche Dr/Santa Andrea St
East Palomar St/Santa Alicia Av
East Palomar St/Santa Flora Rd
East Palomar St/Santa Delphina Av
East Palomar St/La Media Rd
East Palomar St/Santa Cora Av
East Palomar St/Lomas Verde Station
East Palomar St/Vista Sonrisa Av
East Palomar St/Santa Rosa Dr
East Palomar St/Olympic Pkwy
East Palomar St/View Park Wy
East Palomar St/Santa Venetia Station
East Palomar St/Magdalena Av
East Palomar St/Bridge Overcrossing at SR-125
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Town Center Dr/Ring Rd (Otay Ranch Town Center)
BRT Guideway/Otay Ranch Town Center (Cinema)
Eastlake Pkwy/Kestrel Falls Rd
Eastlake Pkwy/Birch Rd
Eastlake Pkwy/Stylus St
BRT Guideway Crosswalk at Eastlake Pkwy
BRT Guideway/Solstice Av
BRT Guideway/Orion Av
Orion Av/Stylus St
Orion Av/Artisan Way
Orion Av/Birch Rd
Birch Rd/Millenia Av
Birch Rd/SR125-NB Ramp
Birch Rd/SR125-SB Ramp
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EXHIBIT B
QUARTERLY STANDARD PERFORMANCE CHECKLIST FOR TSP INTERSECTIONS
Check communications system connectivity to the traffic controller and phase selector card, and
confirm communications with the Central Signal Management System.
Connect and download phase selector card data (configurations and stored data) to the field
technician laptop or similar download through remote connection
Check traffic controller firmware/software, as well as timing plan configuration to ensure TSP
parameters are in place and correct
QUARTERLY STANDARD PERFORMANCE CHECKLIST FOR DEDICATED GUIDEWAY
INTERSECTIONS
Check communications system connectivity to the traffic controller and phase selector card, and
confirm communications with the Central Signal Management System.
Connect and download phase selector card data (configurations and stored data) to the field
technician laptop or similar download through remote connection.
Check traffic signal controller software to confirm the operating system and controller software
are consistent with the latest field release approved versions (as determined by the City).
Check traffic controller firmware/software, as well as timing plan configuration to ensure proper
timing, TSP, and peer-to-peer logic parameters are in place and correct.
QUARTERLY STANDARD PERFORMANCE CHECKLIST FOR OLG INTERSECTIONS AND TRAFFIC
SIGNAL EQUIPMENT
Check communications system connectivity to the traffic controller and phase selector card, and
confirm communications with the OLG Control System.
Check communications system connectivity between the two OLG traffic controllers.
Connect and download phase selector card data (configurations and stored data) to the field
technician laptop or similar download through remote connection.
Check that battery backup status is ok at both OLG equipment cabinets.
Check the emergency preemption system for the OLG is operating as designed (e.g. triggers
proper signal phases, OLG indications, and gate arm activations).
Check traffic controller software to confirm the operating system and controller software are
consistent with the latest field release approved versions for the OLG and that any additional
OLG software modules/installs are correct (as determined by the City).
Check traffic controller firmware/software, as well as timing plan configuration to ensure proper
timing, TSP, peer-to-peer logic, and OLG logic parameters are in place and correct.
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EXHIBIT C
COST ESTIMATE
Estimate of City’s full cost recovery for traffic signal operations, OLG, and due to TSP program along
Rapid route:
Position Services Approximate
hours per year
(per intersection)
Hourly cost
estimate
Annual estimate*
(per intersection)
Traffic Devices
Technician Supv
Support of Operations
Activity
4 $113.77 $455.08
Associate
Engineer
Reporting, review,
check comm., refine
signal timing
12 $137.37 $1,648.44
TOTAL $2,103.52
Annual estimate per “TSP” intersection: $2,103.52
Number of TSP intersections: 42
Annual estimate* for TSP intersections: $88,347.84
*This annual estimate does not include overtime, on-call, or emergency call back
efforts which may be needed to meet the desired response times in this MOU.
Therefore, additional costs may be due to SANDAG.
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1
MAINTENANCE AGREEMENT BETWEEN THE
CITY OF CHULA VISTA AND
THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM
FOR THE EAST PALOMAR STREET TRANSIT STATION
STREET IMPROVEMENTS
THIS AGREEMENT (“Agreement”) is made and entered into this _______day of
_____________, 2018, (the “Effective Date”) by and between the City of Chula Vista, a
California Chartered Municipal Corporation (“City”), and the Metropolitan Transit System, a
public transportation service provider (“MTS”), for the purpose of outlining and defining the
roles, responsibilities, terms and conditions related to maintenance, repair and replacement of
certain infrastructure that are part of the “East Palomar Street Transit Station Street
Improvements” (the “Project”). The City and MTS may be referred to in this Agreement
individually as a “party” and collectively as the “parties”.
RECITALS:
WHEREAS, the parties desire to work together to allocate their respective obligations
relative to newly constructed or revised improvements within City’s right of way; and
WHEREAS, this Agreement is intended to identify the overall commitment and
responsibilities regarding maintenance of the landscape, irrigation, and sidewalk areas
(collectively the “Landscaping”) located within the Project area; and
WHEREAS, the Project area lies within the jurisdiction of the City; and
WHEREAS, City jurisdiction shall refer to all areas located within the City right-of-way.
NOW, THEREFORE, in accordance with the mutual benefits contained in the
aforementioned Recitals and in consideration thereof, City and MTS agree as follows:
Article I - Maintenance
The City and MTS agree to allocate maintenance responsibilities, including but not
limited to inspection, repair, replacement, and general maintenance as shown on Exhibit
“A” and as further described below .
1. The City shall maintain, at City expense:
a) All improvements within the City right of way on Exhibit “A”that are not
shown as an MTS responsibility including but not limited to pavement, curbs,
gutters, sidewalks, traffic signs, pavement striping, pavement markings,
pavement legends, traffic signal, and landscaped areas.
2. MTS agrees to perform and complete the following, at MTS expense:
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a) To maintain all landscaped areas designated on Exhibit “A”as frequently as
necessary to maintain a safe, neat and attractive appearance, as determined by
the City.
b) To furnish electricity for irrigation system controls, water, and fertilizer
necessary to sustain healthy plant growth during the entire life of this
Agreement.
c) To replace unhealthy or dead plantings when observed by MTS or within 30
days when notified in writing by City that plant replacement is required.
d) To prune shrubs, tree plantings, and trees to control extraneous growth and to
ensure City standard lines of sight to signs and corner sight distances are
always maintained for the safety of the public.
e) To maintain, repair, and operate the irrigation systems in a manner that
prevents water from flooding or spraying onto City roadways, spraying parked
and moving automobiles, spraying pedestrians on public sidewalks/bike paths,
or leaving surface water that becomes a hazard to vehicular or
pedestrian/bicyclist travel.
f) To control weeds at a level acceptable to the City. MTS shall perform any
weed control by chemical weed sprays (herbicides) in strict compliance with
all federal, state, and local laws, rules, and regulations, including but not
limited to those established by the California Department of Food and
Agriculture.
g) To furnish electricity and maintain accent, landscape and other electric
powered systems and controls for any lighting, security or informational
systems installed by and for MTS within the areas shown on Exhibit “A”.
h)To maintain all sidewalk areas, bus shelters, and other related transit
amenities, within the areas shown as MTS responsibility on “Exhibit A”.
MTS acknowledges and agrees that such maintenance includes, but is not
limited to, concrete repair, replacement and to grind or patch vertical
variations in elevation of sidewalks for an acceptable walking and riding
surface, and the removal of dirt, debris, graffiti, weeds, and any deleterious
item or material on or about sidewalks, benches, shelters, trash receptacles, or
the landscaping in an expeditious manner.
i) To allow random inspection of Landscaping, street lighting systems,
sidewalks and signs by a City representative.
j) To keep the landscaped area policed and free of litter and deleterious material.
3. MTS acknowledges and agrees that all work performed by or on behalf of MTS under
this Agreement will be done at no cost to City.
Article II – Exhibit “A” Revisions
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1. When a planned future improvement is constructed or a minor revision has been
implemented within the limits of the City’s right-of-way with City’s prior written
consent or some other action or circumstance affects the parties’ division of
maintenance responsibility as described herein, the parties agree to work in good faith
to prepare a new dated and revised Exhibit “A”to thereafter become a part of this
Agreement. To become effective, the revised exhibit must be executed by both parties
through their authorized representatives. No other formal amendment to this
Agreement will be required for the revised exhibit to become effective.
Article III - Access
1. For the purposes of this Agreement, MTS shall not be required to obtain a permit for
routine maintenance work that does not require traffic control within the City right-
of-way.
2. For all other work under this agreement MTS shall obtain a no-cost encroachment
permit and obtain future encroachment permit riders as required for any changes to
the scope of work allowed by this Agreement prior to the start of any work within
City's right-of-way.
Article IV - Non-Interruption of Use or Operation of Facilities
1. MTS agrees and covenants not to permanently interrupt the use or operation of the
City’s facilities covered by this Agreement.
2. MTS agrees and covenants that any temporary interference by MTS with the use or
operation of the City’s facilities shall be made only with the City’s prior written
consent. MTS specifically agrees, except as provided in Article V, section 5, that
during any temporary interference, it will neither cause any lane of the City’s
roadways to be closed for the entire length of such roads, nor to cause the flow of
traffic to be reduced to less than one lane, each direction, on such the roads.
3. MTS agrees and covenants to work in good faith with the City to permit such
temporary interference, and the City shall not unreasonably withhold its consent to
such interference.
4. Notwithstanding any contrary provision in Article V, in the event of damage caused
by an act of God, War, or other casualty, or damage caused under circumstances
where it would be impractical or impossible for one party to notify the other party of
the necessity for temporary interference with the other party’s facilities, the party
creating the temporary interference may, without notice, make emergency repairs to
restore its service. The party creating the temporary interference shall, however, take
reasonable and prudent measures to protect the facilities of the other party and
minimize such interference, and as soon as practically possible, notify the other party
of such emergency repairs. If permanent repairs are required after such emergency
repairs have been made, reasonable notice shall be given to the other party.
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Article V - Indemnity
1. MTS shall defend, indemnify, protect and hold harmless the City, its elected and
appointed officers and employees from and against all claims for damages, liabilities,
costs, and expenses (including without limitation attorneys’ fees) arising out of or
alleged by third parties to be the result of the negligent acts, errors, or omissions or
the willful misconduct of MTS or MTS’s employees, subcontractors or other persons,
agencies, or firms for whom MTS is legally responsible in connection with the
performance or existence of the work covered by this Agreement, except only for
those claims, damages, liability, costs and expenses (including without limitations,
attorneys’ fees) arising from the sole negligence or sole willful misconduct of the
City. MTS’ obligations under this Section include but are not limited to
indemnification and defense for all liability arising from, connected with, caused by
or claimed to be caused by the active or passive negligent acts, errors, or omissions of
the City, its agents, officers, or employees which may be in combination with the
active or passive negligent acts, errors, or omissions of MTS, its employees, agents,
or officers, or any third party. MTS’s indemnification shall include any and all costs,
expenses, attorneys’ fees and liability incurred by the City, its officers, agents, or
employees in defending against such claims, whether the same proceed to judgment
or not. MTS’s obligations under this Section shall not be limited by any prior or
subsequent declaration by MTS. MTS’s obligations under this section shall survive
the termination of this Agreement.
Article VI – Standard of Care
1. All work performed by either party or its representatives shall be performed in
accordance with the standard of care ordinarily exercised by members of the
profession currently practicing under similar conditions and in similar locations and
in compliance with the most recent edition of the Standard Specifications for Public
Works Construction and San Diego Regional Supplement (Greenbook). To the extent
that all or a portion of a party’s facilities is damaged by the other party, the party
causing the damage shall repair and/or replace other party’s facilities. The repair
and/or replacement shall meet the standards of the facility owner’s jurisdiction and be
subject to the review and approval of the appropriate representative, generally the
City or County Engineer, as the case may be. Each party shall bear its own costs,
expenses, and losses.
Article VII – Insurance
MTS and its contractors shall maintain in force, during the term of this Agreement, a
policy of general liability insurance, including coverage of bodily injury liability and
property damage liability, naming the City, its officers, agents and employees as
additional insured in an amount of $1 million per person and $2 million in aggregate.
Coverage shall be evidenced by a Certificate of Insurance/Endorsement in a form
satisfactory to the City that shall be delivered to the City with a signed copy of this
Agreement.
MTS maintains a program of self-insurance for its Commercial General Liability
exposures. Claims are processed and administered in accordance with the California
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Government Code. MTS’s utilization of self-insurance shall not in any way limit
liabilities assumed under this Agreement. In addition, MTS shall require and ensure that
all contractors retained by the MTS to perform work on the Project or work on
improvements identified in Article I of this Agreement (“MTS Contractors”) meet the
insurance requirements.
Article VIII – Termination
Either party may terminate this Agreement by providing written notice to the other party.
Termination shall become effective 90 days after notice is received, unless a later date is
specified in the notice.
Article IX – Miscellaneous
1. Effective Date.
The Agreement shall take effect upon full execution of the Agreement, as of the Effective
Date stated on page 1 of the Agreement.
2. Duty To Third Parties
Nothing within the provisions of this Agreement is intended to create rights in third
parties not parties to this Agreement or to affect the legal liability of a Party as to a third
party to the Agreement by imposing any standard of care different from the standard of
care imposed by law.
3. Notices.
All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands and requests to be sent to any party
shall be deemed to have been properly given or served if personally served or deposited
in the United States mail, addressed to such party, postage prepaid, registered or certified,
with return receipt requested, at the addresses identified below.
To City:
William S. Valle
City of Chula Vista
City Engineer
276 Fourth Avenue
Chula Vista California 91910
With a copy to:
Glen R. Googins
City of Chula Vista
City Attorney
276 Fourth Avenue
Chula Vista California 91910
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To MTS:
Timothy E. Allison
San Diego Metropolitan Transit System
Manager of Real Estate Assets
1255 Imperial Avenue, Suite 1000
San Diego, California 92101-7490
2. Entire Agreement.
This Agreement, together with any other written document referred to or contemplated
herein, embody the entire Agreement and understanding between the Parties relating to
the subject matter hereof. This Agreement supersedes any and all other agreements,
either oral or written with respect to the subject matter contained herein.
3. Capacity of Parties.
Each signatory and Party hereto hereby warrants and represents to the other Party that it
has legal authority and capacity and direction from its principal to enter into this
Agreement; that all resolutions or other actions have been taken so as to enable it to enter
into this Agreement.
4. Governing Law/Venue.
This Agreement shall be governed by and construed in accordance with the laws of the
State of California. Any action arising under or relating to this Agreement shall be
brought only in the federal or state courts located in San Diego County, State of
California, which shall also be deemed to be the sole and proper venue for any action or
proceeding relating to this Agreement.
5. Modification.
No amendment, modification, waiver, or discharge of any provision of this Agreement
shall be effective unless the same shall be in writing and signed by the Parties hereto, and
then shall be valid only in the specific instance and for the purpose for which given.
6. Counterparts.
This Agreement may be executed in more than one counterpart, each of which shall be
deemed to be an original but all of which, when taken together shall constitute but one
instrument.
7. Severability.
In the event that any provision of this Agreement shall for any reason, be determined to
be invalid, illegal, or unenforceable in any respect, the Parties hereto shall negotiate in
good faith and agree to such amendments, modifications, or supplements to this
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Agreement or such other appropriate action as shall, to the maximum extent practicable
in light of such determination, implement and give effect to the intentions of the Parties
as reflected herein.
8. Headings.
The captions and headings in this Agreement are for convenience only and shall not
define or limit the provisions hereof.
9. Waiver.
No course of dealing or failure or delay, nor the single failure or delay, or the partial
exercise of any right, power or privilege, on the part of the Parties shall operate as a
waiver of any rights herein contained. The making or the acceptance of a payment by
either Party with knowledge of the existence of a breach shall not operate or be construed
to operate as a waiver of any such breach.
10. No Additional Beneficiaries.
Despite the fact that the required performance under this Agreement may have an effect
upon persons not Parties hereto, the Parties specifically intend no benefit therefrom, and
agree that no performance hereunder may be enforced by any person not a Party to this
Agreement.
[Remainder of page intentionally left blank]
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IN WITNESS WHEREOF, the Parties hereto have set their hands and seals the day and
year first above written.
CITY OF CHULA VISTA SAN DIEGO METROPOLITAN
TRANSIT SYSTEM
BY_______________________________ BY ________________________________
Mary Casillas Salas, Mayor Paul Jablonski, Chief Executive Officer
ATTEST:
BY_______________________________
Kerry Bigelow, City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM AND
LEGALITY:
BY_______________________________ BY_____________________________
Glen R. Googins, City Attorney Karen Landers, General Counsel
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January 15, 2019 File ID: 18-0564
TITLE
PRESENTATION AND CONSIDERATION OF ACCEPTANCE OF THE 2017/2018 CONSOLIDATED ANNUAL
PERFORMANCE AND EVALUATION REPORT (CAPER); AND SOLICITATION OF INPUT ON FUNDING
PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT
PARTNERSHIPS PROGRAM (HOME), AND EMERGENCY SOLUTIONS GRANT (ESG) 2019/2020 PROGRAM
RECOMMENDED ACTION
Council conduct the public hearing and receive the report.
SUMMARY
The City of Chula Vista is required to prepare a Consolidated Annual Performance and Evaluation Report
(CAPER) for the City’s U.S. Department of Housing and Urban Development (HUD) grant programs, which
includes the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and
Emergency Solutions Grant (ESG). This report provides a summary of activities undertaken this past fiscal
year to meet the goals of the 2015-2019 Consolidated Plan for these HUD grant programs. In addition, a
public hearing is being held to solicit input on funding priorities for the upcoming program year
(2019/2020).
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activities for compliance with the California
Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The proposed activities
are not considered “Projects” as defined under Section 15378(b)(5) of the State CEQA Guidelines because
the proposals consist of a reporting action, is an administrative function, and is not site specific project(s)
and 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, these activities are not subject to CEQA. Under NEPA,
the activity qualifies for a Certification of Exemption pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code
of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development
Environmental Guidelines. Thus, no further environmental review is necessary.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
The City of Chula Vista receives, on an annual basis, Community Development Block Grant (CDBG), HOME
Investment Partnerships (HOME) Program, and Emergency Solutions Grant (ESG) Program funds from the
U.S. Department of Housing and Urban Development (HUD) to contribute towards a number of diverse
programs and services aimed at enhancing the quality of life for Chula Vista’s low to moderate income
residents. On an annual basis, the City prepares a Consolidated Annual Performance and Evaluation Report
(CAPER) describing the use of HUD funds on housing and community development activities that primarily
benefit low and moderate income persons and households. The CAPER also provides a progress report
towards meeting the goals identified in the 2015-2019 Consolidated Plan.
CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT (CAPER):
HUD requires that the City report its performance with regard to CDBG, HOME, and ESG grants using the
HUD Consolidated Annual Performance and Evaluation Report (CAPER). The CAPER was provided to HUD
45 days after the conclusion of the 2017/2018 fiscal year and includes specific financial and performance
information for the CDBG, HOME, and ESG grants. The document was made available for public review from
September 7 through September 22, 2018. The CAPER also includes a narrative portion describing how the
City carried out its housing and community development strategies, projects, and activities during the fiscal
year.
The 2017/18 CAPER represents the third year of the Five-year Consolidated Plan and demonstrated that
the City adhered to all the required HUD regulations governing the grant funds. Specifically, the City
expended the grant funds within the prescribed timeframe; funded projects meeting a HUD National
Objective; and maintained the administration and public service expenditures within the mandated
maximum spending limitations.
While the City met all administrative requirements, significant progress was also made towards the goals
and objectives identified in the Con-Plan. The funds expended during the reporting year had a tremendous
impact on the community, as demonstrated by the beneficiary numbers reported below. The goal numbers
represent persons or households benefitting from either Public Services or Affordable Housing. These
numbers are unduplicated, meaning that they are only counted once during the reporting year, regardless
of the number of times served. Likewise, the Capital Improvement Projects and Facility Improvement
numbers are the total persons residing in the area, benefitting from the improvements.
Table 1: Financial and Beneficiary Data - 2017/2018 Annual Action Plan
FUNDING
SOURCES
AMOUNT
EXPENDED
SERVICE TYPE NUMBER OF
BENEFICIARIES
CDBG & ESG $865,000 Public Services: (Low-Income persons including; Homeless, Youth,
Disabled, Elderly)
4,429
HOME & CDBG $351,700 Affordable Housing:(Rental Assistance, First Time Homebuyer
and Owner-Occupied Rehab)
17*
CDBG $813,200 Capital Improvement Projects and Public Facilities: (Section
108 Loan Payme nt, Holiday Estates and Moss Street)
2,705
Total $2,029,900 Total Served 7,151
* An additional 15 households received First Time Homebuyer assistance through the CalHome grant program provided by the State of
California.
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The table below provides an overview of the Housing and Community Development goals identified in the
Five-Year ConPlanand the progress made to date.
Table 2: Financial and Beneficiary Data - 2015-2019 Five Year Consolidated Plan
FUNDING
SOURCES SERVICE TYPE 5-Year
Goal
ANNUAL PROGRAM REPORTED Total to
Date15/16 16/17 17/18 18/19*
CDBG and
ESG Public Services 19,970 5,719 4,675 4,429 2,367 17,190
HOME and
CDBG
Affordable Housing 300 25 32 17 72 146
CDBG CIPs and Public Facilities 15,000 0 14,540 2,705 7,680 24,925
Total 35,270 5,744 19,247 7,151 10,119 42,261
*Beneficiary numbers are proposed not actual, as the program year is not yet complete.
While the City’s overall performance is on track to meet the established goals, Affordable Housing has fallen
short. Housing costs have consistently risen faster than the area median income, limiting the opportunities
to obtain affordable housing. These factors, along with the effects of the elimination of Redevelopment
Low/Moderate funds have impacted the Housing Authority’s ability to fund and develop new affordable
units. During the 2018/2019 the City had the opportunity to partner with Wakeland Housing and
Development Corporation by providing financial assistance in the acquisition of two parcels on Anita to be
used in the development of 42 affordable housing units. In the 2019/2020 program year the Housing
Division will explore other funding and leveraging opportunities and continue to focus on a variety of
projects and programs to address the growing housing concerns.
PUBLIC HEARING SOLICITING INPUT FOR THE 2019/2020 ANNUAL PROCESS FOR HUD GRANT
PROGRAMS:
The City’s HUD approved 2015-2019 Consolidated Plan (ConPlan), effective July 1, 2015, identifies the
Housing and Community Development needs and establishes funding priorities and goals.
This public hearing represents the first opportunity to solicit public input on the housing and community
development needs of the community and funding priorities for the upcoming year (2019/2020) and the
final year of the ConPlan.
Resources:
While the City has not yet received notification of its allocation for fiscal year 2019/2020, we are
estimating five percent reduction (5%) in the CDBG grant due to potential budgetary cuts at the federal
level. For the purpose of this report, the City anticipates receiving the following for the upcoming year.
HUD Grant Program 2018/2019 (Actual)2019/2020 (Anticipated)
Community Development Block Grant (CDBG)$2,289,135 $2,174,678
Home Investment Partnerships Act (HOME)$ 947,625 $900,244
Emergency Shelter Grant (ESG)$ 179,761 $170,773
Total Grants $3,416,521 $3,245,695
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Additionally, there is $203,453 in prior year unencumbered CDBG grant funds that will need to be
reprogrammed to other activities. These funds were generated from closed/completed projects and
program income received through the repayments of CDBG-issued loans.
Funding applications for the three grant programs (CDBG, HOME, and ESG) will be available to all
interested organizations and City departments on January 18, 2019, with a deadline of February 15, 2019.
Staff will review all applications to determine eligibility and return to Council in March 2019 to present
recommended allocations to eligible projects.
CDBG Program:
The CDBG program represents the City’s largest grant entitlement to fund a variety of housing and
community development activities to benefit the City’s lower income residents. Funding is generally
available for public service activities, capital projects, housing activities, and debt service payment of a
Section 108 loan.
Section 108 Loan:
For fiscal year 2019/2020, the City’s Section 108 debt service payment will be $762,428. After deducting
the required debt service payment from the anticipated CDBG annual entitlement, approximately
$1,433,000 will remain for public services programs, community development, housing projects, and grant
administration.
Administration:
HUD regulates the amount of funding which can be utilized on planning/administration activities by
placing an expenditure cap of 20% of the entitlement amount (approximately $430,000). Administration
funds are used to cover staff costs associated with the management and administration of the City’s CDBG
program. This includes preparation of the annual planning documents, regulatory compliance, contract
oversight of approximately 15 partnering agencies, completion of environmental reviews and fiscal
management.
Public Services Category:
As with administration activities, HUD also regulates the amount of funds for public service activities. Only
15% (approximately $326,000) of its CDBG funds can be expended for these activities. Annually, the City
receives a large number of funding requests for public services which typically exceed the amount
available.
Consistent with the 2015-2019 ConPlan, additional rating criteria (the “tier” system) will be included in the
review of the Public Services applications. Staff has seen a significant increase in the number of requests
and amount of the requests received by both non-profit organizations and City Departments. CDBG funds
are typically pursued to close funding gaps resulting from losses of funding at the Federal and State levels
and in community giving. Several non-profit organizations and City Departments have experienced
complete cuts in state funding and/or experienced decreased levels of donations.
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Given the limited financial resources available, the tier system focuses our limited resources on basic and
essential daily living needs and on vulnerable populations where the impact of limited resources can be
significant. The funding methodology consists of a three-tier approach, classifying each of the activities in
the following three categories for Public Services activities:
Tier I: Basic/Essential Needs (Homeless Services, Food, Emergency Housing)
Tier II: Special Needs Clientele who meet HUD’s Definition of Presumed Benefit (Services for
Battered Spouses, Abused Children, Severely Disabled Adults)
Tier III: Other (Transportation Services, Case Management, Preventative Health Care Services,
Recreational (non-disabled, non-emergency services)
Historically, there has been sufficient funding for Tier I and Tier II programs. Any remaining Public Services
funds were distributed among Tier III programs.
Capital Improvement and Housing Related Activities:
Approximately $854,566 is available for capital improvement and housing projects for 2019/2020. To be
considered eligible for funding, a project must first meet a HUD National Objective (located in a low and
moderate income census tract), not be regional in nature, and be located in a service area that is primarily
residential. Funding recommendations for Capital and Housing Related Activities are then prioritized based
on the following criteria:
Eligible projects that address priorities listed in the ConPlan; and
Effectiveness of activity by meeting the following:
Leveraging of other funding sources;
Number of clients to be served;
Identification on the City of Chula Vista’s Critical Needs List (applicable to infrastructure projects,
improvements to park and recreational facilities, and purchase of equipment or improvements to fire
stations).
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 activities funded through
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the federal grant programs are directed towards the revitalization of neighborhoods, economic
development opportunities, and improved facilities and services. The nature of these activities is consistent
with the Goals, Strategies and Initiatives in Goal 5: Connected Community.
Strategy 5.1: Encourage Residents to Engage in Civic Activities
Initiative 5.1.2 Fosters an Environment of Community Involvement
The City has developed a detailed Citizen Participation Plan (CPP) which requires the participation of the
community. The CPP requires the City to provide citizens with reasonable and timely access to meetings,
information, and records related to the grantee's proposed and actual use of funds. A minimum of two
public hearings are held annually to obtain citizen participation at all stages of the Five-Year Consolidated
Plan and Annual Action Plan. This includes the identification of priorities, review of proposed activities, and
review of program performance.
Strategy 5.2: Provide Opportunities that Enrich the Community’s Quality of Life
Initiative 5.2.1 Provide Services and Programs Responsive to Residents Priorities
The CAPER includes the list of accomplishments using CDBG, HOME and ESG funding that provides decent
affordable housing opportunities and a suitable living environment with adequate public facilities,
infrastructure and services to City residents.
CURRENT-YEAR FISCAL IMPACT
There is no current fiscal impact to the General Fund as the program is revenue offset by the grant funds.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts as the program is revenue offset by the grant funds.
ATTACHMENTS
None.
Staff Contact: Angelica Davis, Sr Management Analyst
Development Services Department (Housing Division)
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