Loading...
HomeMy WebLinkAboutAgenda Packet 2019_04_09 5pmApril 9, 2019City Council Agenda PRESENTATION OF A PROCLAMATION PROCLAIMING APRIL 9, 2019 SAN YSIDRO HEALTH DAY IN THE CITY OF CHULA VISTA IN CELEBRATION OF ITS 50TH ANNIVERSARY 19-0118D.19-0118 PRESENTATION OF A PROCLAMATION PROCLAIMING APRIL AS ARTS, CULTURE, AND CREATIVITY MONTH IN THE CITY OF CHULA VISTA 19-0196E.19-0196 CONSENT CALENDAR (Items 1 - 7) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. APPROVAL OF MINUTES of November 27 and 28, 2019.19-02141.19-0214 Council approve the minutes. Recommended Action: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF THE CHULA VISTA MUNICIPAL CODE (CVMC) TO CLARIFY PROVISIONS REGARDING ILLEGAL COMMERCIAL CANNABIS CONDUCT AND PENALTIES, INCLUDING CVMC SECTIONS 1.04.010, DEFINITION OF RESPONSIBLE PARTY, 1.41.110, CIVIL PENALTIES, 5.19.020, DEFINITIONS, AND 5.19.280, ENFORCEMENT AND PENALTIES (SECOND READING AND ADOPTION) 19-01992.19-0199 City Attorney Department: The activity is not a "project" as defined under section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the ordinance. Recommended Action: Page 2 City of Chula Vista Printed on 4/4/2019 2019-04-09 Agenda Packet Page 2 April 9, 2019City Council Agenda ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.06 OF THE CHULA VISTA MUNICIPAL CODE (ADMINISTRATIVE PROVISIONS FOR THE TECHNICAL BUILDING CODES) TO COMPLY WITH STATE LAW (SECOND READING AND ADOPTION) 19-02003.19-0200 Community Services Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the ordinance. Recommended Action: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.60, LOST AND STOLEN PROPERTY, TO CHANGE THE TITLE, MINIMUM HOLDING PERIOD AND TO MAKE OTHER UPDATES (FIRST READING) 19-01194.19-0119 Community Services Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council place the ordinance on first reading. Recommended Action: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING CITY COUNCIL POLICY 505- 04 (STATEMENT OF GOALS AND POLICIES REGARDING ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICTS) B. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTERS 3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTS GENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT (FIRST READING) 19-01205.19-0120 Development Services Department Department: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution and place the ordinance on first reading. Recommended Action: Page 3 City of Chula Vista Printed on 4/4/2019 2019-04-09 Agenda Packet Page 3 April 9, 2019City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT FOR ADMINISTRATION OF TAXICAB AND OTHER FOR-HIRE REGULATIONS BETWEEN THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM AND THE CITY OF CHULA VISTA 19-01736.19-0173 Police Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution. Recommended Action: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF C HULA VISTA APPROVING UPDATED DESIGN STANDARDS FOR SMALL WIRELESS FACILITIES WITHIN THE CITY’S RIGHT-OF-WAY AND DELEGATING AUTHORITY TO APPROVE FUTURE DESIGN STANDARDS TO THE CITY MANAGER OR DESIGNEE 19-01747.19-0174 Engineering Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Recommended Action: ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council’s jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. CITY MANAGER’S REPORTS MAYOR’S REPORTS COUNCILMEMBERS’ COMMENTS Page 4 City of Chula Vista Printed on 4/4/2019 2019-04-09 Agenda Packet Page 4 April 9, 2019City Council Agenda COUNCILMEMBER GALVEZ: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DESIGNATING TALL SHIP BILL OF RIGHTS THE OFFICIAL TALL SHIP OF THE CITY OF CHULA VISTA AND AUTHORIZING IT TO FLY THE CITY’S FLAG ON ITS MAST 19-02108.19-0210 Council adopt the resolution. Recommended Action: CITY ATTORNEY'S REPORTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council meeting at the City Attorney’s office in accordance with the Ralph M. Brown Act (Government Code 54957.7). CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(1) Name of case: Leilani Kaloha v. City of Chula Vista, San Diego Superior Court, Case No. 37-2018-00004635 -CU-PO-CTL. This item was continued from the March 26, 2019 meeting. 19-01849.19-0184 ADJOURNMENT to the regular City Council meeting on April 16, 2019, at 5:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. Page 5 City of Chula Vista Printed on 4/4/2019 2019-04-09 Agenda Packet Page 5 April 9, 2019City Council Agenda In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Most Chula Vista City Council meetings, including public comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channel 24 (only in Chula Vista), and online at www.chulavistaca.gov. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels) and are archived on the City's website. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. Page 6 City of Chula Vista Printed on 4/4/2019 2019-04-09 Agenda Packet Page 6 City of Chula Vista Meeting Minutes - Draft 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 Tuesday, November 27, 2018 SPECIAL MEETING OF THE HOUSING AUTHORITY MEETING JOINTLY WITH THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER A joint special meeting of the Housing Authority and 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 Deputy City Clerk Kansas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Deputy Mayor Diaz led the Pledge of Allegiance. Mayor Casillas Salas announced, pursuant to AB 23, that she and each Councilmember would receive $50 for their attendance at that Housing Authority meeting, which was held simultaneously with the City Council meeting. SPECIAL ORDERS OF THE DAY A.18-0455 PRESENTATION ON SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY (SDCRAA) UPDATES BY BOARD MEMBER AND IMPERIAL BEACH MAYOR PRO TEM MARK WEST Imperial Beach Mayor Pro Tem Mark West and Brendan Reed, representing SDCRAA, gave a presentation on the item. B.18-0546 PRESENTATION AND SPECIAL RECOGNITION OF EASTLAKE CHURCH FOR THEIR “I HEART CHULA VISTA” COMMUNITY SERVICE WEEKEND IN THE CITY OF CHULA VISTA Public Works Director Quilantan recognized Eastlake Church and Linda Rankin, representing the church, gave a presentation on the item. Page 1City of Chula Vista 2019-04-09 Agenda Packet Page 7 November 27, 2018City Council Meeting Minutes - Draft CONSENT CALENDAR (Items 1 - 6) Items 2 and 3 were removed from the Consent Calendar at the request of members of the public. 1.18-0537 ORDINANCE NO. 3445 OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS (CHAPTER 3 - DEVELOPMENT CODE) FOR THE UNIVERSITY INNOVATION DISTRICT (SECOND READING AND ADOPTION) Recommended Action: Council adopt the ordinance. Items 2 and 3 were removed from the Consent Calendar. 4.18-0436 A. RESOLUTION NO. 2018-229 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF ELECTRIC VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 120716-NAF THROUGH THE CLIMATE MAYORS ELECTRIC VEHICLE PURCHASING PROGRAM IN AN AMOUNT NOT-TO-EXCEED TWO MILLION DOLLARS ($2,000,000) THROUGH THE TERM OF THE CONTRACT (JANUARY 2021) B. RESOLUTION NO. 2018-230 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF HEAVY-DUTY AND SPECIALIZED VEHICLES FROM NATIONAL AUTO FLEET GROUP IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 081716-NAF IN AN AMOUNT NOT-TO-EXCEED FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS ($4,500,000) THROUGH THE TERM OF THE CONTRACT (NOVEMBER 2020) C. RESOLUTION NO. 2018-231 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A 2-YEAR LEASE PURCHASE AGREEMENT WITH NATIONAL COOPERATIVE LEASING IN ACCORDANCE WITH SOURCEWELL CONTRACT NUMBER 032615 -NCL FOR THE ACQUISITION OF THIRTY-FOUR (34) ELECTRIC VEHICLES AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT Recommended Action: Council adopt the resolutions. Page 2City of Chula Vista 2019-04-09 Agenda Packet Page 8 November 27, 2018City Council Meeting Minutes - Draft 5.18-0514 RESOLUTION NO. 2018-008 OF THE CHULA VISTA HOUSING AUTHORITY APPROVING THE ISSUANCE OF TAX-EXEMPT REVENUE BONDS BY CMFA IN A PRINCIPAL AMOUNT OF UP TO $50,000,000 TO BE USED TO FINANCE THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF A 271-UNIT MULTIFAMILY RENTAL HOUSING DEVELOPMENT, LOCATED AT 1325 SANTA RITA EAST AND 1392 EAST PALOMAR STREET, CHULA VISTA, CALIFORNIA Recommended Action: Authority adopt the resolution. 6.18-0529 INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2018 Recommended Action: Council receive the report. Approval of the Consent Calendar A motion was made by Councilmember McCann, seconded by Deputy Mayor Diaz, to approve staff's recommendations on the above Consent Calendar items, headings read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 ITEMS REMOVED FROM THE CONSENT CALENDAR 2.18-0536 ORDINANCE NO. 3446 OF THE CITY OF CHULA VISTA AMENDING SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 5.19 REGARDING COMMERCIAL CANNABIS (SECOND READING AND ADOPTION) Theresa Acerro, Chula Vista resident, spoke in opposition to staff's recommendation and suggested revisions to the proposed ordinance. Staff answered questions of the Council. A motion was made by Councilmember Padilla, seconded by Deputy Mayor Diaz, to adopt Ordinance No. 3446, heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:McCann1 - Abstain:0 Page 3City of Chula Vista 2019-04-09 Agenda Packet Page 9 November 27, 2018City Council Meeting Minutes - Draft 3.18-0538 ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHAPTER 5.66 OF THE CHULA VISTA MUNICIPAL CODE, WHICH IMPOSED A TOTAL BAN ON COMMERCIAL MARIJUANA ACTIVITY, CONDITIONED UPON EFFECTIVENESS OF CITY'S ORDINANCE BANNING UNLICENSED COMMERCIAL CANNABIS ACTIVITY AS PROVIDED IN CHAPTER 5.19 OF THE CHULA VISTA MUNICIPAL CODE (FIRST READING) The following members of the public spoke in opposition to staff's recommendation on the item: - Theresa Acerro, Chula Vista resident - Becky Brundage - Kelly McCormick A motion was made by Mayor Casillas Salas, seconded by Councilmember Padilla, that the above ordinance be placed on first reading, heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:McCann1 - Abstain:0 PUBLIC COMMENTS Ken Sobel, San Diego resident, spoke regarding Measure Q and cannabis regulations. PUBLIC HEARINGS 7.18-0464 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE, SECTION 19.58.022 (ACCESSORY DWELLING UNITS); CHAPTER 19.26 (ONE- AND TWO-FAMILY RESIDENCE ZONE); AND CHAPTER 19.28 (APARTMENT RESIDENTIAL ZONE); WITH REGARD TO ACCESSORY DWELLING UNITS (FIRST READING) 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. Mayor Casillas Salas opened the public hearing. There being no members of the public who wished to speak, Mayor Casillas Salas closed the public hearing. Development Services Director Broughton responded to comments and questions of the Council. A motion was made by Councilmember Aguilar, seconded by Councilmember McCann, that the above ordinance be placed 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 Page 4City of Chula Vista 2019-04-09 Agenda Packet Page 10 November 27, 2018City Council Meeting Minutes - Draft 8.18-0516 RESOLUTION NO. 2018-232 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN UPDATE WHICH WILL BRING THE DOCUMENT UP-TO-DATE WITH CURRENT OTAY RANCH PRESERVE MANAGEMENT STRUCTURE AND ANNUAL OPERATING BUDGET, OWNERSHIP, AND BIOLOGICAL MONITORING AND MANAGEMENT REQUIREMENTS 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. Staff answered questions of the Council. Mayor Casillas Salas opened the public hearing. Stephen Haase, representing Baldwin & Sons, submitted written documentation in support of staff's recommendation and declined to speak. Mayor Casillas Salas closed the public hearing. A motion was made by Councilmember McCann, seconded by Councilmember Padilla, that Resolution No. 2018-232 be adopted, heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 9.18-0535 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED IN THE RESOLUTION 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 Attorney Googins explained the procedure for hearing the item and requested Council report any ex parte communications. The Council reported the following ex parte communications: -Mayor Casillas Salas reported meeting with Rod Bisharat and Judy Wilson, project appellants, in her office on September 12, 2018. -Councilmember McCann stated he had not met with individuals in support of or in opposition to the project. He stated he visited and looked around the project site. Page 5City of Chula Vista 2019-04-09 Agenda Packet Page 11 November 27, 2018City Council Meeting Minutes - Draft -Deputy Mayor Diaz stated he had several meetings regarding the project. He met at the carwash with Mr. Moot to discuss the project and related noise and traffic concerns on March 21, 2018, and had communicated with Mr. Moot by email over the last week. He met with Mr. Watry on March 14, 2018. He met with Ms. Wilson regarding the impacts the project would have on her standard of living. He spoke with Mr. Moot by phone on November 27, 2018. -Councilmember Padilla stated he attended an on-site meeting with Mr. Moot, representing the appellant, around October 5, 2018, at which Mr. Moot had shown him the site characteristics and dynamics regarding traffic impacts, potential traffic impacts, and traffic flow. He communicated by telephone with Mr. Moot on November 16, 2018, regarding Mr. Moot's desire for better communication with staff and Mr. Moot's concern regarding the timing of the scheduling of the hearing. Councilmember Padilla stated he communicated with Mr. Moot by phone on November 20, 2018, regarding the content of a meeting Mr. Moot had with staff and Mr. Moot’s efforts to convey to staff that he believed a traffic study was needed. Councilmember Padilla also stated he had received written communications from Mr. Moot, Mr. Watry, and others, which had been added to the record. -Councilmember Aguilar stated she communicated with the applicant, appellant, and their respective representatives on several occasions. She also stated she communicated with Judy Wilson and Peter Watry over the last six months. Associate Planner Young gave a presentation on the item. Principal Planner Power, Development Services Director Broughton, Deputy City Attorney Shirey, project applicant Neil Capin, and property owner Don Chrislock answered questions of the Council. Mayor Casillas Salas opened the public hearing. The applicant, represented by the following individuals, gave a presentation in support of the project and answered questions of the Council: Gene Cipparone, Neil Capin, Justin Schlaefli, and Don Chrislock. John Moot and Justin Rasas, representing appellant Rod Bisharat, gave a presentation in opposition to the project and requested an independent traffic study be conducted. The following members of the public spoke in opposition to staff's recommendation: -Peter Watry, Chula Vista resident -Judy Wilson, Chula Vista resident -Reem Totry, Jamul resident Tina Torres, Chula Vista resident, submitted written documentation in opposition to staff's recommendation and did not wish to speak. Justin Schlaefli and Neil Capin, representing the applicant, offered a rebuttal to the appellant's presentation. There being no further members of the public who wished to speak, Mayor Casillas Salas closed the public hearing. Staff and representatives of the applicant and appellant answered questions of the Council. John Moot, representing the appellant, answered questions of the Council and spoke in support of a formal traffic study being conducted. Mayor Casillas Salas re-opened the public hearing. Page 6City of Chula Vista 2019-04-09 Agenda Packet Page 12 November 27, 2018City Council Meeting Minutes - Draft Justin Schlaefli and Gene Cipparone, responded to statements made by John Moot regarding the necessity of a formal traffic study. Mayor Casillas Salas closed the public hearing. Council discussion ensued. Councilmember McCann made a motion to approve the resolution. Mayor Casillas Salas offered a substitute motion to continue the item to allow for a comprehensive traffic analysis with review by Caltrans. The substitute motion was not accepted. A motion was made by Councilmember McCann, seconded by Deputy Mayor Diaz, to approve the resolution. The motion failed by the following vote: ACTION: Yes:Diaz and McCann2 - No:Aguilar, Padilla and Casillas Salas3 - Abstain:0 Council discussion continued. A motion was made by Councilmember Padilla, seconded by Councilmember McCann, to direct staff to submit the existing traffic analysis for the project, along with additional traffic analysis the applicant may provide, to Caltrans for its review and clarification of its opinion on the matter, and to continue the item to January 22, 2019. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 CITY MANAGER’S REPORTS 10.18-0549 REPORT ON THE REALIGNMENT OF THE UNITED TECHNOLOGY AEROSPACE SYSTEMS BUSINESS UNIT IN CHULA VISTA Assistant City Manager Kachadoorian announced that a memorandum on the item had been provided to the Council and Councilmember Aguilar spoke regarding the item. MAYOR’S REPORTS At the request of Mayor Casillas Salas, there was consensus of the Council to add an item to a future agenda to consider endorsing the 7th Annual International Mariachi Festival at Bayside Park. Mayor Casillas Salas stated the City's Instagram account would be hosted for a day by internationally known Chef Marcela Valladolid from Chula Vista. COUNCILMEMBERS’ COMMENTS Councilmember McCann recognized individuals affected by the fires in northern California. He reported on his attendance at a ribbon cutting event for Big Block Real Estate at Eastlake and expressed gratitude to the Salvation Army for serving meals on Thanksgiving. Councilmember Aguilar spoke regarding the upcoming Starlight Parade & Children's Faire. Page 7City of Chula Vista 2019-04-09 Agenda Packet Page 13 November 27, 2018City Council Meeting Minutes - Draft CITY ATTORNEY'S REPORTS There were none. CLOSED SESSION Micki Bursalyan, representing SEIU 221, spoke regarding Item 11 and the Mid-Managers/Professional Association/Service Employees International Union negotiations. City Attorney Googins announced that the Council would convene in closed session to discuss Item 11, listed below, and that the agency-designated representatives had been amended to remove Gary Halbert and include Maria Kachadoorian. Mayor Casillas Salas recessed the meeting at 9:17 p.m. The Council reconvened in closed session at 9:22 p.m. with all members present. 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. 11.18-0548 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) There was no reportable action.ACTION: ADJOURNMENT At 9:53 p.m., the meeting was adjourned to a special City Council meeting on November 28, 2018, at 3:00 p.m. in the Executive Conference Room; and thence to the Regular City Council Meeting on December 11, 2018 at 5:00 p.m., in the Council Chambers. _______________________________ Kerry K. Bigelow, MMC, City Clerk Page 8City of Chula Vista 2019-04-09 Agenda Packet Page 14 City of Chula Vista Meeting Minutes - Draft 3:00 PM City Hall - Executive Conference Room 276 4th Avenue, Building A Chula Vista, CA 91910 Wednesday, November 28, 2018 SPECIAL MEETING OF THE CITY COUNCIL CALL TO ORDER A special meeting of the City Council of the City of Chula Vista, was called to order at 3:04 p.m. in the Executive Conference Room, 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 Deputy City Clerk Larrarte ACTION ITEMS 1.18-0541 A. INTERVIEWS AND CONSIDERATION OF APPOINTMENT TO FILL THE CURRENT VACANCY ON THE PLANNING COMMISSION (AT-LARGE SEAT) On November 13, 2018, the following individuals received two or more nominations to be interviewed for this vacancy: Michael De La Rosa, Delfina Gonzalez, Gregory Hall, Jorge Patrick Macfarland, Jim Trotter, and Monika Tuncbilek B. INTERVIEWS AND CONSIDERATION OF APPOINTMENT TO FILL THE CURRENT VACANCY ON THE MEASURE P CITIZENS' OVERSIGHT COMMITTEE (AT-LARGE DISTRICT 1 SEAT) On November 13, 2018, the following individuals received two or more nominations to be interviewed for this vacancy: Becky Cortez, Jennifer Ficacci, Hector Martinez, and Greg Martinez There were no members of the public who requested to speak regarding the item. The Council discussed the questions that would be asked of each applicant. The Council conducted the interviews. Mayor Casillas Salas recessed the meeting at 3:55 p.m. The Council reconvened at 4:12 p.m., with all members present. There were no members of the public who wished to speak following the interviews. . Page 1City of Chula Vista 2019-04-09 Agenda Packet Page 15 November 28, 2018City Council Meeting Minutes - Draft A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, to appoint Greg Martinez to the Measure P Citizens' Oversight Committee At-Large District 1 seat. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 A motion was made by Councilmember McCann, seconded by Mayor Casillas Salas, to appoint Michael De La Rosa to the Planning Commission. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 ADJOURNMENT At 4:59 p.m., the meeting was adjourned to the regular City Council meeting on December 11, 2018, at 5:00 p.m., in the Council Chambers. _______________________________ Kerry K. Bigelow, MMC, City Clerk Page 2City of Chula Vista 2019-04-09 Agenda Packet Page 16 v . 0 0 1 P a g e | 1 April 9, 2019 File ID: 19-0113 19-0199 TITLE ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF THE CHULA VISTA MUNICIPAL CODE (CVMC) TO CLARIFY PROVISIONS REGARDING ILLEGAL COMMERCIAL CANNABIS CONDUCT AND PENALTIES, INCLUDING CVMC SECTIONS 1.04.010, DEFINITION OF RESPONSIBLE PARTY, 1.41.110, CIVIL PENALTIES, 5.19.020, DEFINITIONS, AND 5.19.280, ENFORCEMENT AND PENALTIES (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY This proposed ordinance amends Chula Vista Municipal Code sections 1.04.010, 1.41.110, 5.19.020 and 5.19.280 to clarify and improve the consistency of language regarding violations of the Chula Vista Municipal Code, including penalties for violations of the commercial cannabis provisions contained in Chapter 5.19. ENVIRONMENTAL REVIEW The proposed ordinance amending Chula Vista Municipal Code Section 1.04.010, Definition of Responsible Party, Section 1.41.110, Civil Penalties, Section 5.19.020, Definitions of Commercial Cannabis Activity and Manager, and Section 5.19.280, Commercial Cannabis Enforcement and Penalties has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION In March of 2018, City Council approved Ordinance 3418, which added Chapter 5.19 to the Chula Vista Municipal Code (“CVMC”) to regulate commercial cannabis in the City of Chula Vista. At that time, City 2019-04-09 Agenda Packet Page 17 P a g e | 2 Council approved the assessment of civil penalties up to an amount of $10,000 per violation per day for violations of Chapter 5.19. Chapter 1.41 of the CVMC contains general provisions regarding the assessment of civil penalties for code violations. The current text of section 1.41.110 identifies a maximum civil penalty of $2,500 for violations, with an exception for violations of the land grading provisions containedin chapter 15.06. In order to provide consistency and clarity, Staff now recommend that section 1.41.110 be amended to: specify that violations of the commercial cannabis provisions in chapter 5.19are also exempt from the maximum $2,500 civil penalty; reiterate that violations of chapter 5.19 are subject to a civil penalty of up to $10,000 as prescribed in 5.19.280;and clean up remaining language in the section. Staff additionally recommend that language in 1.04.010, 5.19.020, and 5.19.280 be amended to more precisely reflect what is prohibited and who is responsible when a violation occurs. The recommended amendments would improve the clarity of the provisions and enhance the City’s ability to enforce its municipal code. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create 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 decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT The subject amendments to sections 1.04.010, 1.41.110, 5.19.020, and 5.19.280 improve the City’s capacity assess civil penalties for violations of the municipal code. However, it is difficult and speculative to predict when such penalties would be recovered and in what amounts. ONGOING FISCAL IMPACT The subject amendments to section 1.04.010, 1.41.110, 5.19.020, and 5.19.280 improve the City’s capacity assess civil penalties for violations of the municipal code. However, it is difficult and speculative to predict when such penalties would be recovered and in what amounts. ATTACHMENTS 1. Proposed ordinance 2.Proposed amended 1.04.010 red-line strikeout version 3. Proposed amended 1.41.110 red-line strikeout version 4. Proposed amended 5.19.020 red-line strikeout version 5. Proposed amended 5.19.280 red-line strikeout version 2019-04-09 Agenda Packet Page 18 P a g e | 3 Staff Contact: Megan McClurg; Lou El-Khazen 2019-04-09 Agenda Packet Page 19 SECOND READING AND ADOPTION C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@200E713C\@BCL@200E713C.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF THE CHULA VISTA MUNICIPAL CODE (CVMC) TO CLARIFY PROVISIONS REGARDING ILLEGAL COMMERICAL CANNABIS CONDUCT AND PENALTIES, INCLUDING CVMC SECTIONS 1.04.010, DEFINITION OF RESPONSIBLE PARTY, 1.41.110, CIVIL PENALTIES, 5.19.020, DEFINITIONS, AND 5.19.280, ENFORCEMENT AND PENALTIES (FIRST READING) WHEREAS, Chula Vista Municipal Code section 1.04.010 identifies and defines responsible parties for purposes of violations of the Chula Vista Municipal Code; and WHEREAS, Chula Vista Municipal Code section 1.41.110(C) currently caps the amount of civil penalties that can be assessed against a responsible party for violations of the municipal code at $2,500 per day, with the exception of violations of Chapter 15.04 CVMC; and WHEREAS, Chula Vista Municipal Code section 5.19.020 identifies and defines commercial cannabis activity and manager for purposes of Chapter 5.19 of the Chula Vista Municipal Code; and WHEREAS, Chula Vista Municipal Code section 5.19.280(C) authorizes the assessment of civil penalties in the amount of up to $10,000 for each and every violation of Chapter 5.19 CVMC; and WHEREAS, in City and County of San Francisco v. Sainez,the California Court of Appeal found that fines in excess of $100,000 did not violate excessive fines clauses of the Federal and State Constitutions; and WHEREAS, for purposes of constitutional inquiry under the excessive fines clause, the amount of fines imposed are required to bear some proportional relationship to the penalty’s deterrent purpose and the nature of misconduct; and WHEREAS, unlawful cannabis businesses have continued to operate in violation of the Chula Vista Municipal Code despite enforcement action and the assessment of civil penalties in the amount of $2,500 per day; 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 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 2019-04-09 Agenda Packet Page 20 Ordinance Page 2 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 chapters 1.04 and 5.19, but instead clarify important provisions and facilitate City’s ability to implement such objectives and policies; WHEREAS, it is the intent of the City Council to authorize robust enforcement procedures with regard to unlawful 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: Section I. Environmental Findings A.Chapter 1, Section 1.04.010 of the Chula Vista Municipal Code regarding the definition of “Responsible party” is amended to read as follows: 1.04.010 Definitions and rules of construction. “Responsible party” means, individually and collectively, the owner(s) of real property upon which a violation of this code or state law exists, a tenant or occupant in possession, a licensee, or any other person who has caused, created, or continues to allow a condition to occur or exist upon real property constituting a violation of this code or state law. A “responsible party” can be a natural person or an entity. [All other provisions and definitions in section 1.04.010 remained unchanged] B.Chapter 1, Section 1.41.100 of the Chula Vista Municipal Code regarding the assessment of civil penalties is amended to read as follows: 1.41.110 Civil penalties. A. The council finds that there is a need for alternative methods of enforcement of the Chula Vista Municipal Code and applicable state codes. The council further finds that the assessment of civil penalties through an administrative hearing procedure for code violations is a necessary alternative method of code enforcement. The administrative assessment of civil penalties established in this section is in addition to any other administrative or judicial remedy established by law which may be pursued to address violations of the municipal code or applicable codes. B. Civil penalties may be assessed against a responsible party for continued violations of the municipal code or applicable state codes, whether of the same section or any combination, that reflect a continuing disregard for the requirements of such laws. The director may issue a notice 2019-04-09 Agenda Packet Page 21 Ordinance Page 3 and order to the responsible party assessing a civil penalty pursuant to this section. The civil penalty may be enforced against the responsible party as a lien pursuant to CVMC 1.41.140. C. Except for violations of land grading ordinances contained in Chapter 15.04 CVMC and violations of commercial cannabis provisions contained in Chapter 5.19 CVMC, civil penalties may be assessed at a rate not to exceed $2,500 per violation per day. D. The civil penalty for violations of land grading permits or land grading work done without the issuance of a permit shall be based on an estimate by the director of grading work performed. The rate of civil penalties shall be as follows: 1. Less than 250 cubic yards, but not meeting the requirements for an exemption from grading permit under CVMC 15.04.150: $1,000 per violation; 2. Two hundred fifty-one (251) to 500 cubic yards: $5,000 per violation; 3. Five hundred one (501) to 1,000 cubic yards: $10,000 per violation; 4. Over 1,001 cubic yards: $25,000 per violation; 5. In the event any individual, firm, company, developer or property owner causes a second violation of the land grading permit ordinance, either on the same property or different property and whether or not part of the same development, the rate of civil penalties shall be doubled. For third and subsequent violations, the rate of civil penalties shall be multiplied by a factor of four. E. Civil penalties for violations of Chapter 5.19 CVMC may be assessed at a rate not to exceed $10,000 per violation per day. F. Civil penalties under this section may be accrued retroactive to the date the violations were first discovered, as evidenced by the issuance of a notice of violation pursuant to CVMC 1.41.030, or any later date determined by the director. In determining the amount to be imposed on a daily rate, the director shall consider the following factors: 1. Duration of the violation; 2. Frequency or occurrence of the violation; 3. Frequency or occurrence of other violations during the period of accrual; 4. Seriousness of the violation in relation to its threat or impact upon public health, welfare or safety; 5. History of the violations; 6. Activity taken by the responsible party to obstruct or interfere with correction of the problem; 7. Good faith or bad faith efforts by the responsible party to comply; 8. The impact of the violation on the surrounding property and community; 2019-04-09 Agenda Packet Page 22 Ordinance Page 4 9. The financial ability of the responsible party to have corrected the violation in a timely fashion. G. The director shall comply with Chapter 1.40 CVMC concerning notice of the proposed civil penalties and the right to a hearing to contest or confirm. Unless contested, the notice and order shall be final and be enforced pursuant to CVMC 1.41.160. If contested, the hearing examiner shall limit the hearing to the following issues: 1. Whether the responsible party maintained a use or condition on real property that violated the municipal code or state law on the dates specified; and 2. Whether the civil penalty assessed is consistent with the criteria expressed in subsection (F) of this section. The hearing examiner may, however, exercise discretion pursuant to CVMC 1.40.020(E) and increase or decrease the penalties assessed to a level determined to be supported by the evidence meeting the criteria under subsection (F) of this section. H. The director shall issue a final order based on the proceedings under subsection (F) of this section and establish a date for payment, following which date an enforcement lien may be imposed upon the property in accordance with applicable law. The imposition of an enforcement lien may be made a part of the proceedings and notice and order under CVMC 1.41.100 or this section. C.Chapter 5, Section 5.19.020 of the Chula Vista Municipal Code regarding the definitions of “Commercial Cannabis Activity” and “Manager” are amended to read as follows: “Commercial Cannabis Activity” means the commercial Cultivation, possession, furnishing, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis or Cannabis Products. “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 or volunteers, control hours of operation, create policy rules, or purchase supplies. [All other provisions and definitions in section 5.19.020 remained unchanged] D.Chapter 5, Section 5.19.280 of the Chula Vista Municipal Code regarding enforcement and penalties regarding commercial cannabis activity is amended to read as follows: 5.19.280 Enforcement and Penalties. A. It is unlawful to: 1. Own, operate, set up, conduct, maintain, facilitate, or direct Commercial Cannabis Activity in the City without a valid City License authorizing such Commercial Cannabis Activity; 2019-04-09 Agenda Packet Page 23 Ordinance Page 5 2. Participate as an employee, contractor, agent, volunteer, or in any other capacity in Commercial Cannabis Activity in the City without a valid City License; 3. Use any parcel or any portion of parcel of land for Commercial Cannabis Activity without a valid City License; 4. Lease, rent to, or otherwise allow Commercial Cannabis Activity to occupy or access 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. Civil penalties for violations of this Chapter may be assessed at a rate not to exceed $10,000 per violation per day. 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. 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. Section II. 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. 2019-04-09 Agenda Packet Page 24 Ordinance Page 6 Section III. 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 IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Gary Halbert Glen R. Googins City Manager City Attorney 2019-04-09 Agenda Packet Page 25 Chula Vista Municipal Code Page 1/3 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. 1.04.010 Definitions and rules of construction. In the construction of this code and of all ordinances of the City, the following rules shall be observed, unless such construction would be inconsistent with the manifest intent of the City Council or the context clearly requires otherwise: “Abatement” means an act or combination of actions designed to correct a nuisance. Abatement includes, but is not limited to, removal, demolition or repair of structures; removal of weeds, rubbish and debris; reconstruction of structures to code; restoration of drainage ways or courses; grading or regrading and filling of illegally graded or developed land; revegetation; vacating of illegal or nonconforming structures; removing barriers improperly blocking off public access; removal of encroaching structures onto public property; and other action which is reasonably related to the correction or mitigation of nuisances under this code or state law. “City” or “this City” means and shall be construed as if followed by the words “of Chula Vista.” “City Manager” means an officer appointed by the City Council as the City Manager, and includes those officers and employees he or she designates to perform certain functions. The term “City Manager” includes a director, as defined herein, except in those proceedings where an appeal to the City Manager is taken from the order of a director. “Code” or “this code” means the Municipal Code of the City of Chula Vista, California. “Code enforcement officer” means a person, other than a police officer, designated by the City Manager or a director to enforce violations of the Municipal Code. A code enforcement officer is authorized to issue notices of violation and administrative citations pursuant to Chapter 1.41 CVMC. A code enforcement officer is authorized to issue misdemeanor citations or to arrest a person without a warrant for a misdemeanor committed in his or her presence which is a violation of state law or an ordinance which the code enforcement officer has a duty to enforce. A code enforcement officer may exercise all powers of arrest pursuant to California Penal Code Section 836.5. A code enforcement officer is not a peace officer within the definition of Penal Code Sections 830 through 832.8. Computation of Time. The time in which any act provided by law is to be done is computed by excluding the first day and including the last, unless the last day is a legal holiday and then it is also excluded. “Council” whenever used in this code means the City Council of the City. “County” or “this county” means the county of San Diego. “Day” means the period of time between any midnight and the midnight following. Daytime and Nighttime. “Daytime” means the period of time between sunrise and sunset. “Nighttime” means the period of time between sunset and sunrise. “Director” means the Chief of Police, Fire Chief, City Engineer, Director of Development Services, Director of Finance, Director of Recreation, Director of Public Works, and the employees designated by them or assigned by job function to perform code enforcement functions and duties. It also includes the county health officer or director of public health for public health and sanitation. The Directors are authorized to issue rules and regulations on behalf of the City where referenced in this code. Gender. The masculine gender includes the feminine and neuter. “In the City” means and includes all territory over which the City now has, or shall hereafter acquire, jurisdiction for the exercise of its police powers or other regulatory powers. Joint Authority. All words giving a “joint authority” to three or more persons or officers shall be construed as giving such authority to a majority of such persons or officers. “Month” means a calendar month. 2019-04-09 Agenda Packet Page 26 Chula Vista Municipal Code Page 2/3 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. “Notice” means a written document which informs a person of the time, date and place for a hearing, the nature of a penalty or corrective action required of that person, and the Municipal Code section(s) applicable to the proceeding. Service of notice is covered in CVMC 1.40.030. “Nuisance” is as defined under California Civil Code Section 3480, and includes a condition upon or use of real property within Chula Vista that violates the Municipal Code or state law. It may also include dilapidation or disrepair of structures; the maintenance of a structure in which illegal drug, gambling or prostitution activity occurs; or a structure on private property which encroaches into public property. Number. The singular number includes the plural and the plural the singular. “Oath” means and includes an affirmation. Officers, Departments, Etc. Officers, departments, boards, commissions and employees referred to in this code shall mean officers, departments, boards, commissions and employees of the City, unless the context clearly indicates otherwise. Official Time. Whenever certain hours are named in this code, they shall mean Pacific Standard Time or Daylight Saving Time, as may be in current use in the City. Or, And. “Or” may be read “and,” and “and” may be read “or,” if the sense requires it. “Owner,” applied to a building or land, means and includes any part owner, joint owner, tenant in common, tenant in partnership, joint tenant or tenant by the entirety of the whole or of a part of such building or land. “Park ranger” means a person, other than a police officer, designated by the City Manager or a director to enforce violations of the Municipal Code and whose primary duty is the protection of the park, public property, open space and other property of the City and the preservation of peace therein. A park ranger is authorized to issue infraction citations as authorized by Chapter 1.20 CVMC. A park ranger is also authorized to issue infraction citations committed in his or her presence which are violations of state law. “Person” means and includes any person, firm, association, organization, partnership, business trust, corporation or company. “Personal property” means and includes every species of property, except real property, as defined in this section. Preceding and Following. The words “preceding” and “following” mean next before and next after, respectively. “Process” means and includes a writ or summons issued in the course of judicial proceedings of either a civil or criminal nature. “Property” means and includes real and personal property. “Real property” means and includes land, improvements and structures on land, tenements and hereditaments. “Responsible party” means, individually and collectively, the owner(s) of real property upon which a violation of this code or state law exists,; or a tenant or occupant in possession, a licensee, or any other person who has caused, created, or continues to allow a condition to occur or exist upon real property constituting a violation of this code or state law. A “responsible party” can be a natural person or an corporation entity. Shall and May. “Shall” is mandatory and “may” is permissive. Signature or Subscription by Mark. “Signature” or “subscription” includes a mark when the signer or subscriber cannot write, such signer’s or subscriber’s name being written near the mark by a witness who writes his own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto. “State” or “this state” shall be construed to mean the state of California. 2019-04-09 Agenda Packet Page 27 Chula Vista Municipal Code Page 3/3 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. “Tenant or occupant,” applied to a building or land, includes any person holding a written or an oral lease of, or who occupies the whole or a part of, such building or land, either alone or with others. Tenses. The present tense includes the past and future tenses, and the future includes the present. Week. A “week” consists of seven consecutive days. “Writing” means and includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, statement or record is required or authorized by this code, it shall be made in writing in the English language, unless it is expressly provided otherwise. “Year” means a calendar year, except where otherwise provided. (Ord. 3322 § 1, 2014; Ord. 2790, 1999; Ord. 2718 § 1, 1998; prior code § 1.2). 2019-04-09 Agenda Packet Page 28 Chula Vista Municipal Code Page 1/2 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. 1.41.110 Civil penalties. A. The council finds that there is a need for alternative methods of enforcement of the Chula Vista Municipal Code and applicable state codes. The council further finds that the assessment of civil penalties through an administrative hearing procedure for code violations is a necessary alternative method of code enforcement. The administrative assessment of civil penalties established in this section is in addition to any other administrative or judicial remedy established by law which may be pursued to address violations of the municipal code or applicable codes. B. Civil penalties may be assessed against a responsible party for continued violations of the municipal code or applicable state codes, whether of the same section or any combination, that reflect a continuing disregard for the requirements of such laws. The director may issue a notice and order to the responsible party assessing a civil penalty pursuant to this section. The civil penalty may be enforced against the responsible party as a lien pursuant to CVMC 1.41.140. C. Except for violations of land grading ordinances contained in Chapter 15.04 CVMC and violations of commercial cannabis provisions contained in Chapter 5.19 CVMC, civil penalties may be assessed at a daily rate not to exceed $2,500 per violation per day. D. The civil penalty for violations of land grading permits or land grading work done without the issuance of a permit shall be based on an estimate by the director of grading work performed. The rate of civil penalties shall be as follows: 1. Less than 250 cubic yards, but not meeting the requirements for an exemption from grading permit under CVMC 15.04.150: $1,000 per violation; 2. Two hundred fifty-one (251) to 500 cubic yards: $5,000 per violation; 3. Five hundred one (501) to 1,000 cubic yards: $10,000 per violation; 4. Over 1,001 cubic yards: $25,000 per violation; 5. In the event any individual, firm, company, developer or property owner causes a second violation of the land grading permit ordinance, either on the same property or different property and whether or not part of the same development, the rate of civil penalties shall be doubled. For third and subsequent violations, the rate of civil penalties shall be multiplied by a factor of four. E. Civil penalties for violations of Chapter 5.19 CVMC may be assessed at a rate not to exceed $10,000 per violation per day. FE. Civil penalties under this section may be accrued retroactive to the date the violations were first discovered, as evidenced by the issuance of a notice of violation pursuant to CVMC 1.41.030, or any later date determined by the director. In determining the amount to be imposed on a daily rate, the director shall consider the following factors: 1. Duration of the violation; 2. Frequency or occurrence of the violation; 3. Frequency or occurrence of other violations during the period of accrual; 4. Seriousness of the violation in relation to its threat or impact upon public health, welfare or safety; 5. History of the violations; 6. Activity taken by the responsible party to obstruct or interfere with correction of the problem; 7. Good faith or bad faith efforts by the responsible party to comply; 8. The impact of the violation on the surrounding property and community; Formatted: Indent: Left: 0" 2019-04-09 Agenda Packet Page 29 Chula Vista Municipal Code Page 2/2 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. 9. The financial ability of the responsible party to have corrected the violation in a timely fashion. GF. The director shall comply with Chapter 1.40 CVMC concerning notice of the proposed civil penalties and the right to a hearing to contest or confirm. Unless contested, the notice and order shall be final and be enforced pursuant to CVMC 1.41.160. If contested, the hearing examiner shall limit the hearing to the following issues: 1. Whether the responsible party maintained a use or condition on real property that violated the municipal code or state law on the dates specified; and 2. Whether the civil penalty assessed is consistent with the criteria expressed in subsection (FE) of this section. The hearing examiner may, however, exercise discretion pursuant to CVMC 1.40.020(E) and increase or decrease the penalties assessed to a level determined to be supported by the evidence meeting the criteria under subsection (FE) of this section. HG. The director shall issue a final order based on the proceedings under subsection (FE) of this section and establish a date for payment, following which date an enforcement lien shall may be imposed upon the property in accordance with applicable law. The imposition of an enforcement lien may be made a part of the proceedings and notice and order under CVMC 1.41.100 or this section. (Ord. 3401 § 1, 2017; Ord. 3377 § 1, 2016; Ord. 2718 § 3, 1998). 2019-04-09 Agenda Packet Page 30 Chula Vista Municipal Code Page 1/6 The Chula Vista Municipal Code is current through Ordinance 3451, passed February 5, 2019. 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 reference 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: 1. 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. 2. 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 otherwise to accidentally or purposely consume Cannabis or Cannabis Products. Attractive to Youth items include: 1. 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. 2. 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. 3. Packaging or labeling that contains images, characters, or phrases that closely resemble images, characters, or phrases popularly used to advertise to Youth. 4. Advertising that mimics Advertising of a non-cannabis consumer product of a type that is typically consumed by, or marketed to, Youth. 5. 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, 2019-04-09 Agenda Packet Page 31 Chula Vista Municipal Code Page 2/6 The Chula Vista Municipal Code is current through Ordinance 3451, passed February 5, 2019. 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 California Health and Safety Code Section 11018.5. “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 Chapter. 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 Health and Safety Code Section 109935, or drug, as defined by Health and Safety Code Section 109925. “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, 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 California Health and Safety Code Section 11362.7. “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, furnishing, 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 CVMC 5.19.030. 2019-04-09 Agenda Packet Page 32 Chula Vista Municipal Code Page 3/6 The Chula Vista Municipal Code is current through Ordinance 3451, passed February 5, 2019. “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 California Health and Safety Code Section 1596.76. “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. “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 CVMC 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 California Food and Agricultural Code Division 15 (commencing with Section 32501). 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. 2019-04-09 Agenda Packet Page 33 Chula Vista Municipal Code Page 4/6 The Chula Vista Municipal Code is current through Ordinance 3451, passed February 5, 2019. “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 or volunteers, 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 CVMC 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 California Health and Safety Code Section 11362.5, 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 CVMC 5.19.030. “Officer” means any of the following: 1. The chief executive officer of an entity engaged in a Commercial Cannabis Business. 2. A member of the board of directors of an entity engaged in a Commercial Cannabis Business. 3. 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. “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. “Owner” means any of the following: 1. In the context of a Commercial Cannabis Business, a Person with an aggregate ownership interest, direct or indirect, of 10 percent 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 percent or more in a Commercial Cannabis Business. 2. In the context of a Premises, a Person with an aggregate ownership or long-term lease interest, direct or indirect, of 10 percent or more in the Premises, whether as a partner, shareholder, member, joint tenant or the like. “Patient or Qualified Patient” means a person who is entitled to the protections of California Health and Safety Code Section 11362.5 as further provided in California Health and 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. 2019-04-09 Agenda Packet Page 34 Chula Vista Municipal Code Page 5/6 The Chula Vista Municipal Code is current through Ordinance 3451, passed February 5, 2019. “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. “State Laws” means the laws of the State of California, which include, but are not limited to, California Health and Safety Code Section 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 Section 11362.7 et seq. (Medical Marijuana Program); California Health and Safety Code Section 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 State 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 CVMC 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: 1. Accredited by an accrediting body that is independent from all other persons involved in Commercial Cannabis Activity in the State; and 2. Licensed by the State. 2019-04-09 Agenda Packet Page 35 Chula Vista Municipal Code Page 6/6 The Chula Vista Municipal Code is current through Ordinance 3451, passed February 5, 2019. A City License is required to operate a Testing Laboratory pursuant to CVMC 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 California Health and Safety Code Section 109925. “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. “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 nonprofit business where the majority of individuals who patronize, congregate, or assemble at the business location are less than 21 years old. (Ord. 3418 § 2, 2018). 2019-04-09 Agenda Packet Page 36 5.19.280 Enforcement and Penalties. A. It is unlawful to: 1. Own, operate, set up, conduct, maintain, facilitate, or direct Commercial Cannabis Activity in the City without a valid City License authorizing such Commercial Cannabis 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, intern, volunteer, or in any other capacity in a Commercial Cannabis usiness Activity in the City without a valid City License; 3. Use any parcel or any portion of parcel of land foras a Commercial Cannabis Business Activity without a valid City License; 4. Lease, rent to, or otherwise allow a Commercial Cannabis BusinessCommercial Cannabis Activity to occupy or access 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 ofCivil penalties for violations of this Chapter may be assessed at a rate not to exceed $10,000 for each and every offenseper violation per day. 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. 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. 2019-04-09 Agenda Packet Page 37 P a g e | 1 April 9, 2019 File ID: 19-0052 19-0200 TITLE ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.06 OF THE CHULA VISTA MUNICIPAL CODE (ADMINISTRATIVE PROVISIONS FOR THE TECHNICAL BUILDING CODES) TO COMPLY WITH STATE LAW (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY Assembly Bill (AB) 2913 approved by the California legislature on September 21, 2018 extends the life of building permits for residential occupancies from 180 days (six months) to 12 months after permit issuance, unless the permittee has abandoned the work authorized by the permit. AB 2913 also authorizes a permittee to request, and the Building Official to grant in writing, one or more extensions of time for periods of not more than 180 days per extension. This ordinance will update Chula Vista Municipal Code Chapter 15.06 to extend building permit application and permit expiration times for all building permit applications and for all issued building permits, and not only those related to residential occupancies as expressed in AB 2013. The resolution will update Chapter 10 (Building Fees) of the City’s Master Fee Schedule related to building permit application and time extension fees. ENVIRONMENTAL REVIEW The City’s Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the action pertains to ministerial permit regulations. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The draft ordinance was considered by the Development Services Citizen Oversight Committee on January 30, 2019. There was general consensus in support of the proposed ordinance. 2019-04-09 Agenda Packet Page 38 P a g e | 2 DISCUSSION AB 2913 Provisions of the California Health and Safety Code relate to building permits, which are addressed when a building permit is deemed to be expired. A building permit may expire because work authorized by the permit has not commenced or the permittee has suspended or abandoned the work. Assembly Bill (AB) 2913, approved by the California legislature on September 21, 2018, extends the timeframe for residential occupancy building permits from 180 days (six months) to 12 months after permit issuance, unless the permittee has abandoned the work authorized by the permit. AB 2913 also authorizes a permittee to request, and the Building Official to grant in writing, one or more extensions oftime for periods of not more than 180 days per extension. The bill requires that the permittee request the extension in writing and demonstrate justifiable cause for the extension. Existing Chula Vista Municipal Code Building Permit Provisions Chula Vista’s building permit application regulations are set forth in Chula Vista Municipal Code (CVMC) Section 15.06.085. Section 15.06.085.C of the CVMC states that building permit applications for which no permit is issued shall expire within 180 days following the date of application. The current code also provides that an application “shall not be extended more than once”. Chula Vista’s building permit issuance regulations are set forth in CVMC Section 15.06.090. Section 15.06.090.D of the Code states that if work is not commenced, or if work is suspended or abandoned, within 180 days from the date of the permit issuance, the permit shall expire. The current code also provides that an issued permit shall not be extended more than once. Proposed Chula Vista Municipal Code Amendment This ordinance will update the CVMC to extend building permit application and permit expiration times for all building permit applications and for all issued building permits, and not only those related to residential occupancies as expressed in AB 2913. Revisions to the Chula Vista building permit application regulations set forth in Section 15.06.085.C of the CVMC are proposed to provide that building permit applications for which no permit is issued shall expire within twelve (12) months following the date of application, and that the Building Official may grant one or more extensions of time. Each time extension would extend the permit application by 180 days. When considering an extension of the permit application, the Building Official will consider the need to update the permit application to reflect any newly adopted building codes and regulations. Revisions to the Chula Vista building permit issuance regulations set forth in Section 15.06.090.D of the CVMC are proposed to provide that if work is not commenced within twelve (12) months from the date of permit issuance, the permit shall expire. If work is suspended or abandoned, the permit expires after 180 days. Additional revisions to the code to allow the Building Official to grant one or more extensions of time are proposed. Each time extension would extend the permit application by 180 days. When considering an extension of the permit, the Building Official will consider the need to update the permit application to reflect any newly adopted building codes and regulations. 2019-04-09 Agenda Packet Page 39 P a g e | 3 Master Fee Schedule Amendment The City currently assesses a flat fee of $105 to process each plan check (permit application) or permit (permit issuance) extension. For unexpired applications or permits without changes to the plans or specifications, a new fee equal to fifty percent (50%) of the adopted new permit fee is proposed. Unexpired permits requiring changes would also be subject to the City’s existing supplemental plan check and supplemental inspection fees, which are assessed on a half-hour basis. For expired permits, a new application accompanied by the full new permit fee is required. The proposed fees ensure that the City recovers the full cost of providing associated intake, plan check, and inspection services. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create 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 members, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Amending the Chula Vista Municipal Code to allow permit applications and permits to stay active for one year instead of 180 days is anticipated to reduce the number of requests. For those requesting extensions, the fees to be assessed are increasing from $105 to either fifty-percent (50%) of the new permit fee or payment of the new permit fee in full. Minimal fiscal impacts to the Development Services Fund are anticipated in the current year. ONGOING FISCAL IMPACT Amending the Chula Vista Municipal Code to allow permit applications and permits to stay active for one year instead of 180 days is anticipated to reduce the number of requests. For those requesting extensions, the fees to be assessed are increasing from $105 to either fifty-percent (50%) of the new permit fee or payment of the new permit fee in full. Ongoing fiscal impacts to the Development Services Fund are not anticipated. ATTACHMENTS 1) Proposed Master Fee Schedule revisions in redline format Staff Contact: Chris Jacobs, Senior Planner, Advance Planning 2019-04-09 Agenda Packet Page 40 Ordinance Page 1/5 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.06 OF THE CHULA VISTA MUNICIPAL CODE (ADMINISTRATIVE PROVISIONS FOR THE TECHNICAL BUILDING CODES) TO COMPLY WITH STATE LAW WHEREAS, Chula Vista Municipal Code Chapter 15.06 established rules and regulations for the administration and enforcement of certain technical building codes; and WHEREAS, Assembly Bill 2913 approved on September 21, 2018 extends the life of building permits for residential occupancies from 180 days to 12 months, and authorizes the Building Official to grant one or more extensions for time periods of not more than 180 days per extension; and WHEREAS, the revisions contained in this Ordinance to CVMC Chapter 15.06 “Administrative Provisions for the Technical Building Codes” will implement AB 2913 and Sections 18938.5 and 18938.6 of the Health and Safety Code relating to building permits; and WHEREAS the City’s Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the action pertains to ministerial permit regulations. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. NOW THEREFORE the City Council of the City of Chula Vista does hereby ordain as follows: Section I. Substantive Action Chapter 15.06 of the Chula Vista Municipal Code is hereby amended as follows: Chapter 15.06 ADMINSTRATIVE PROVISIONS FOR THE TECHNICAL BUILDING CODES Sections: 15.06.085 Application for a Permit 15.06.090 Permit Issuance 15.06.085 Application for a Permit. A. Application. To obtain a permit, the applicant shall first file an application in writing on a form furnished by the City for that purpose. Every application shall: 1. Identify and describe the work to be covered by the permit for which application is made. 2. Describe the land on which the proposed work is to be done by legal description, street address or similar description that will readily identify and definitely locate the proposed building or work. SECOND READING AND ADOPTION 2019-04-09 Agenda Packet Page 41 Ordinance Page 2/5 3. Indicate the use or occupancy for which the proposed work is intended. 4. Be accompanied by plans, diagrams, computations and specifications, and other data as required in subsection (B) of this section. 5. State the valuation of any new building or structure or any addition, remodeling or alteration to an existing building. 6. Be signed by the applicant, or the applicant’s authorized agent. 7. Give such other data and information as may be required by the Building Official. B. Submittal Documents. Plans, specifications, engineering calculations, diagrams, soil investigation reports, special inspection and structural observation programs and other data shall constitute the submittal documents and shall be submitted in one or more sets with each application for a permit. When such plans are not prepared by an architect or engineer, the Building Official may require the applicant submitting such plans or other data to demonstrate that state law does not require that the plans be prepared by a licensed architect or engineer. The Building Official may require plans, computations and specifications to be prepared and designed by an engineer or architect licensed by the state even if not required by state law. However, the Building Official may waive the requirement to submit plans, calculations, construction inspection requirements and other data if the nature of the work applied for is such that reviewing of plans is not necessary to obtain compliance with this chapter. 1. Information on Plans and Specifications. Plans and specifications shall be drawn to scale on substantial paper or cloth and shall be of sufficient clarity to indicate the location, nature and extent of the proposed work and show in detail that the proposed work will conform to the provisions of this chapter, the technical codes and all relevant laws, ordinances, rules and regulations. Plans for buildings of other than Group R, Division 3 and Group U occupancies shall indicate how required structural and fire-resistive integrity will be maintained where penetrations will be made for electrical, mechanical, plumbing and communication conduits, pipes and similar systems. 2. Architect or Engineer of Record. When it is required that documents be prepared by an architect or engineer, the Building Official may require the applicant to engage and designate on the building permit application an architect or engineer who shall act as the architect or engineer of record. If the circumstances require, the applicant may designate a substitute architect or engineer of record who shall perform all the duties required of the original architect or engineer of record. The applicant shall notify the Building Official in writing if the architect or engineer of record is changed or is unable to continue to perform the duties. The architect or engineer of record shall be responsible for reviewing and coordinating all submittal documents prepared by others, including deferred submittal items, for compatibility with the design of the building. 3. Deferred Submittals. Deferred submittals are defined as those portions of the design which are not submitted at the time of the application and which are to be submitted to the Building Official within a specified period. Deferred submittals shall have prior SECOND READING AND ADOPTION 2019-04-09 Agenda Packet Page 42 Ordinance Page 3/5 approval of the Building Official. The architect or engineer of record shall list the deferred submittals on the plans at time of application and shall submit the deferred submittal documents for review by the Building Official. The architect or engineer of record shall submit the deferred submittals to the Building Official with notation indicating that the deferred submittals have been reviewed and that they have been found to be in general conformance with the design of the building. The deferred submittal items shall not be installed until their design and deferred submittals have been approved by the Building Official. C. Expiration of Plan Review. Every Aapplications for which no permit is issued within 12 months 180 days following the date of application shall expire and plans and other data submitted for review may thereafter be returned to the applicant or destroyed by the Building Official . The Building Official may grant one or more extensions of time for periods extend the time for action by the applicant for a period not exceeding 180 days per extension on written request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken. When considering an extension of a permit application, the Building Official shall consider the need to update the permit application to newly adopted building codes and regulations. An application shall not be extended more than once. In order to renew action on an application after expiration, the applicant shall submit a new permit application with required submittal materials and shall be subject to all applicable fees and regulations in effect on th e date the new application is submitted resubmit plans and pay a new plan review fee. (Ord. 3087 § 1, 2007). All applicants requesting plan review extensions or new permit applications shall pay the required fees as designated in the City’s Master Fee Sche dule, as may be amended from time to time by resolution of the City Council. 15.06.090 Permit Issuance. A. Issuance. The application, plans, specifications, computations and other data filed by an applicant for permit shall be reviewed by the Building Official. Such plans may be reviewed by other departments of the city to verify compliance with all applicable laws. If the Building Official finds that the work described in an application for a permit and the plans, specifications and other data filed therewith conform to the requirements of this chapter, the technical codes, and other pertinent laws and ordinances, and that the fees specified in CVMC 15.06.095 have been paid, the Building Official shall issue a permit to the applicant. When a permit is issued, and plans and specifications are required for that permit, the Building Official shall endorse in writing or stamp the plans and specifica tions “APPROVED.” Such approved plans and specifications shall not be changed, modified or altered without authorization from the Building Official, and all work regulated by this chapter or the technical codes shall be done in accordance with the approved plans and specifications. The Building Official may issue a permit for the construction of part of a building, structure or building service equipment before the entire plans and specifications for the whole building, structure or building service equipment have been submitted or approved, provided adequate information and detailed statements have been filed complying with all pertinent requirements of SECOND READING AND ADOPTION 2019-04-09 Agenda Packet Page 43 Ordinance Page 4/5 the technical codes. The issuance of a partial permit shall not, in any way, commit the Building Official to grant a permit for the entire building, structure or building service. B. Retention of Plans. The Building Official shall maintain an official copy, microfilm, electronic or other type of photographic copy of the plans of every building, during the life of the building, for which the City issued a building permit. All plans for common interest developments as defined in Section 1351 of the California Civil Code shall be maintained with the following exceptions: 1. Single or multiple dwellings not more than two stories and basement in height. 2. Garages and other structures appurtenant to buildings listed in the exception in subsection (B)(1) of this section. 3. Farm or ranch buildings. 4 Any one-story building where the span between bearing walls does not exceed 25 feet, except a steel frame or concrete building. C. Validity of Permit. The issuance of a permit or approval of plans, specifications and computations shall not be construed to be a permit for, or an approval of, any violation of any of the provisions of this chapter or the technical codes, or of any other ordinance of the City. Permits presuming to give authority to violate or cancel the provisions of this chapter, the technical codes, or of other ordinances of the City shall not be valid. The issuance of a permit based on plans, specifications and other data shall not prevent the Building Official from thereafter requiring the correction of errors in these plans, specifications and other data, or prevent the Building Official from stopping building operations when there is a violation of these plans, specifications and other data, or violations of this chapter or the technical codes or of any other ordinances. D. Expiration of Permit. Every permit issued by the Building Official under the provisions of t he technical codes shall expire, if the building or work authorized by such permit is not commenced within 12 months 180 days from the date of such permit, or if the building or work authorized by such permit is suspended or abandoned at any time after the work is commenced for a period of 180 days. Before such work can be recommenced, a new permit shall first be obtained to do so, and the fee shall be one-half the amount required for a new permit for such work, provided no changes have been made or will be made in the original plans and specifications for such work; and provided, that such suspension or abandonment has not exceeded one year. In order to renew action on a permit after expiration, the permittee shall pay a new full permit fee. A permittee holding an unexpired permit may apply for an extension of the time within which work may commence under that permit when the permittee is unable to commence work within the time required by this section for good and satisfactory reasons. A permittee holding an unexpired permit may apply for an extension of the time for good and satisfactory reasons. A permittee with an expired permit may apply for a new permit. All permittees requesting permit extensions or new permits shall pay the required fees as designated SECOND READING AND ADOPTION 2019-04-09 Agenda Packet Page 44 Ordinance Page 5/5 in the City’s Master Fee Schedule, as may be amended from time to time by resolution of the City Council. The Building Official may grant one or more extensions of extend the time for action by the permittee for a period not exceeding 180 days per extension upon written request by the permittee demonstrating good and satisfactory reasons for such extension. showing that circumstances beyond the control of the permittee have prevented action from being taken. When considering an extension of a permit, the Building Official shall consider the need to update the permit to any newly adopted building codes and regulations. Permits shall not be extended more than once. E. Suspension or Revocation. The Building Official may in writing suspend or revoke a permit issued under the provisions of this chapter and the technical codes when the permit is issued in error or on the basis of incorrect information supplied, or in violation of this chapter , the technical codes or any other ordinance or regulation. (Ord. 3087 § 1, 2007). Section II. 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 appli cation 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 III. 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 IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by: Approved as to form by: _____________________________________ ____________________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney SECOND READING AND ADOPTION 2019-04-09 Agenda Packet Page 45 P a g e | 1 April 9, 2019 File ID: 19-0119 TITLE ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.60, LOST AND STOLEN PROPERTY, TO CHANGE THE TITLE, MINIMUM HOLDING PERIOD AND TO MAKE OTHER UPDATES (FIRST READING) RECOMMENDED ACTION Council place the ordinance on first reading. SUMMARY Staff is requesting to reduce the retention period for unclaimed personal property from six (6) months to three (3) months to conform to state law and to facilitate efficient use of the City’s limited storage space, as well as a title change and other updates. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines, because it will not result in a physical change to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable DISCUSSION The City’s Park Rangers work with the Police Department’s Homeless Outreach Team , County social service representatives and nonprofit stakeholders in the City’s parks to offer unsheltered individuals resources and referrals. Following weekly outreach activities and as part of regular care to keep the parks tidy and useable for all, Parks staff members clean the City’s parks and rights of way. For instance, staff collects and discards obvious refuse, such as fast food containers, empty water bottles, syringes, cigarette butts, cardboard, feces, uneaten food, and broken items. Staff also works with a shopping cart retrieval service that collects empty carts. 2019-04-09 Agenda Packet Page 46 P a g e | 2 Additionally, staff identifies unattended personal property on the grass, sidewalks, landscaping, play grounds, picnic areas and parking lots of the City’s parks and rights of way. Examples of unattended personal property include backpacks, bags, clothing, tarps, bedding, bicycles, and shopping carts filled with these items. Staff posts the item with a written notice that it will be removed in 24 hours. The notice gives a phone number, location and hours of operation so the owner may claim the property, free of charge. Staff returns after 24 hours. In many instances, the item has been removed. If the item remains, however, staff photographs, tags, collects and stores it at 707 F Street, an unused City building. A small portion of the stored property is claimed, with owners typically retrieving their property within a month of collection. The majority is never claimed. Staff stores the unclaimed items for at least six (6) months, as required by the City’s municipal code, before periodic disposal. Staff estimates the current volume of unclaimed items fills a 5,000 to 6,000 square foot secure, enclosed space, including aisles to allow the property to be viewed and safely retrieved. The building at 707 F Street is the City’s only storage facility for unclaimed items from the parks and rights of way. It is slated for demolition in the spring of 2019 to make room for redevelopment at that site. Consequently, staff is exploring alternativesites for storage. In this request, staff is recommending reducing the required retention period for unclaimed property from six (6) months to three (3) months. A shorter retention requirement is expected to eventually reduce the City’s storage needs. A shorter retention period also would allow the City to use storage space more efficiently by moving out unclaimed items more quickly to accommodate incoming items. State law allows a city to establish its own retention period for unclaimed property, as long as the period is at least three (3) months. (Cal. Civil Code sections 2080.4 and 2080.6). In 1967, the City Council set a six (6)-month retention period. (Chula Vista Municipal Code Section 2.60.010.) A survey of other cities in San Diego county with ordinances addressing unclaimed property showed a three-month retention period; Chula Vista is the only jurisdiction identified with a longer retention period. This request also recommends updates to the Chapter 2.60, such as changing the title from “lost and stolen” property to “unclaimed” property, for consistency with the state laws cited above. Also, for found items turned into the Police Department, which the finder would like to claim, the Department is required to publish notice in a newspaper of general circulation to give the owner a chance to recover the item. The value of the found item requiring newspaper notice is $25 (CVMC Section 2.60.150). This update would increase the value to $250, consistent with state law (Cal. Civil Code section 2080.3). 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.). 2019-04-09 Agenda Packet Page 47 P a g e | 3 LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Reducing the required retention period for unclaimed personal property supports Operational Excellence by increasing the efficient use of City resources. It also supports Strong and Secure Neighborhoods by facilitating staff’s diligent work to reunite owners with property while keeping City parks clean and inviting for all to enjoy. CURRENT-YEAR FISCAL IMPACT There will be no fiscal impact to the current fiscal year. Storage will be temporarily relocated from 707 F Street to Eucalyptus Park Maintenance Shed. ONGOING FISCAL IMPACT The temporary storage location is limited in size and will not accommodate the current demand for space of the unclaimed personal property. A larger permanent facility will need to be identified for lease or purchase with an unknown cost associated with this space. ATTACHMENTS 1. Redline-strikeout of CVMC 2.60 2.Proposed amended ordinance Staff Contact: Tracy Lamb, Director of Community Services 2019-04-09 Agenda Packet Page 48 Chula Vista Municipal Code Chapter 2.60 LOST AND STOLEN PROPERTY* Page 1/3 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. Chapter 2.60 LOST AND STOLEN UNCLAIMED PROPERTY* Sections: 2.60.010 Holding period – Minimum term – Exceptions. 2.60.020 Holding period – Bicycles and perishable material – Sale permitted when. 2.60.030 Sale – Procedure generally. 2.60.035 Transfer of property to city. 2.60.040 Sale – Notice of time and place required. 2.60.050 Sale – Payment of purchase price – Receipt – Transfer of title. 2.60.060 Recovery of property by owner permitted when. 2.60.070 Disposition of proceeds of sale – Generally – Manner of selling items. 2.60.080 Disposition of proceeds of sale – Perishable property procedure. 2.60.090 Responsibility for care and preservation – Liability for loss or damage. 2.60.095 Destruction of unclaimed property – Liability for destruction. 2.60.100 Identification tag required – Contents. 2.60.110 Register to be maintained – Contents. 2.60.120 Chapter not applicable to animals. 2.60.130 Identification markings for certain impounded articles – Purpose and intent. 2.60.140 Identification markings for certain impounded articles – Procedure authorized. 2.60.150 Vesting of title to unclaimed property in finder. * For statutory provisions regarding the disposition of lost or unclaimed property, see Civil Code § 2080, et seq.; for authority for municipalities to regulate the disposition of lost property in the hands of the police, see Civil Code § 2080.4. CROSS REFERENCE: Purchasing Systems, see Ch. 2.56 CVMC. 2.60.010 Holding period – Minimum term – Exceptions. All unclaimed personal property, except animals, bicycles and perishable property, in the possession of the police department or other City department shall be held by the police department or other City department for a period of at least six months 90 days. (Ord. 1067 § 1, 1967; prior code § 2.37). 2.60.020 Holding period – Bicycles and perishable material – Sale permitted when. Unclaimed perishable property may be sold at public auction, or transferred in the manner set forth in this chapter for personal property other than perishable property, prior to the expiration of the six-month 90-day period. Bicycles may be sold at public auction in the same manner, or donated to a nonprofit, charitable organization designated by the chief of police, after being held by the police department for a period of at least 90 days. (Ord. 2657 § 1, 1995; Ord. 2098 § 1, 1985; Ord. 1067 § 1, 1967; prior code § 2.38). 2.60.030 Sale – Procedure generally. After holding such unclaimed property for the period described herein, the same shall be sold by the chief of police, or his duly authorized representative, at public auction to the highest bidder or, in the case of unclaimed bicycles only, may be donated to a nonprofit, charitable organization designated by the chief of police. Any donation of bicycles shall be made pursuant to department policy for designation of eligible nonprofit, charitable organizations, which shall set forth standards including, but not limited to: that the recipient organization will use the bicycles for donation to youths determined to be “at risk” or of special financial need and that donations of bicycles will not be made to members of the police department or their respective families. Alternatively, pursuant to the provisions of CVMC 2.60.035, said unclaimed property may be transferred to the city. (Ord. 2657 § 2, 1995; Ord. 2098 § 1, 1985; Ord. 1067 § 1, 1967; prior code § 2.39). 2.60.035 Transfer of property to city. Upon recommendation of the chief of police or his duly authorized representative, the city purchasing agent may determine that unclaimed property is suitable for use by the city. The provisions of this chapter relating to the holding period and notice shall be complied with prior to the transfer to and acquisition by the city. (Ord. 2098 § 2, 1985). 2019-04-09 Agenda Packet Page 49 Chula Vista Municipal Code Chapter 2.60 LOST AND STOLEN PROPERTY* Page 2/3 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. 2.60.040 Sale – Notice of time and place required. Prior to the sale at public auction or transfer, notice of the time and place of such sale and articles to be sold or transferred shall be given by the chief of police, at least five days before the time fixed therefor, by publication once in a newspaper of general circulation published in the city. (Ord. 2098 § 1, 1985; prior code § 2.40). 2.60.050 Sale – Payment of purchase price – Receipt – Transfer of title. At the time of the sale of any unclaimed property, the purchaser shall pay the cash purchase price into the finance department, and the finance department shall issue a validated receipt for such money for the personal property being purchased, and the chief of police or the authorized member of his department shall, upon presentation of such validated receipt, transfer such property to the purchaser. (Prior code § 2.40.1). 2.60.060 Recovery of property by owner permitted when. Any person may claim property in possession of the police department at any time prior to the first publication of notice of sale or transfer by proving, to the satisfaction of the chief of police, ownership of such property and paying the required fee(s). (Ord. 2506 § 1, 1992; Ord. 2098 § 1, 1985; prior code § 2.41). 2.60.070 Disposition of proceeds of sale – Generally – Manner of selling items. All moneys derived from the sale of unclaimed property other than perishable property shall be deposited in the general fund of the city and shall belong to the city. If more than one article is offered for sale at auction, they may be sold individually or collectively, as the chief of police may determine. (Prior code § 2.42). 2.60.080 Disposition of proceeds of sale – Perishable property procedure. All moneys, if any, derived from the sale of unclaimed perishable property shall be held for the owner of such property, providing he shall prove ownership of the perishable property prior to the expiration of the period of six months 90 days from the date of first possession of such property by the chief of police. If no owner claims such property within the six-month 90-day period, then the moneys derived from such sale shall be placed in the general fund of the city. (Prior code § 2.43). 2.60.090 Responsibility for care and preservation – Liability for loss or damage. The chief of police or City staff designated by the chief of police shall be responsible for the care and preservation of the unclaimed property hereinbefore referred to, until the same is sold, destroyed, or returned to the lawful owner thereof, but in no event shall the chief of police, designated staff or the city be liable in damages for the loss or damage to such unclaimed property. (Ord. 2147 § 3, 1986; prior code § 2.44). 2.60.095 Destruction of unclaimed property – Liability for destruction. The chief of police or his representative may destroy all unclaimed property after holding the unclaimed property for the period prescribed herein, with no owner appearing and proving ownership of the property within the prescribed period, or the unclaimed property may be destroyed upon the failure of the property to be sold at public auction pursuant to this chapter; but in no event shall the chief of police or the city be liable for damages for the destruction of such unclaimed property. (Ord. 2147 § 2, 1986). 2.60.100 Identification tag required – Contents. Each article of unclaimed property shall be identified with a tag on the same, showing the first date of possession by the chief of police and the circumstances surrounding his acquisition of possession. (Prior code § 2.45). 2.60.110 Register to be maintained – Contents. The chief of police or City staff designated by the chief of police shall maintain a register of all unclaimed property received by the police department. Such register shall describe each item of property; the time, date and place it was received; the name of the person from whom it was received; and the circumstances surrounding its receipt, together with the date and manner of disposition of such property. (Prior code § 2.45.1). 2.60.120 Chapter not applicable to animals. This chapter shall not apply to lost, strayed or unclaimed animals. (Prior code § 2.46). 2.60.130 Identification markings for certain impounded articles – Purpose and intent. It is the purpose and intent of the city council to establish a procedure which authorizes the police department of the city to place identifying numbers upon certain articles which have been impounded during the course of 2019-04-09 Agenda Packet Page 50 Chula Vista Municipal Code Chapter 2.60 LOST AND STOLEN PROPERTY* Page 3/3 The Chula Vista Municipal Code is current through Ordinance 3449, passed January 8, 2019. investigation of theft, where said articles have had the identifying numbers removed or obliterated, thus making the possession of said articles illegal under the provisions of Section 537E of the California Penal Code. Said procedure is also intended for application to any articles which come into the possession of the police department for control or custody by any other process and which may also have had any identifying numbers or markings obliterated therefrom. (Ord. 1193 § 1, 1969; prior code § 2.10.1). 2.60.140 Identification markings for certain impounded articles – Procedure authorized. The chief of police is authorized and directed to assign a distinguishing number or identification mark and affix said number or mark to any itemradio, piano, stereo tape deck, phonograph, sewing machine, washing machine, typewriter, adding machine, comptometer, bicycle, firearm, safe or vacuum cleaner, dictaphone, watch, watch movement, watch case, or any mechanical or electrical device, appliance, contrivance, material, piece of apparatus or equipment, from which the manufacturer’s name plate, serial number or any other distinguishing number or identification mark has been removed, defaced, covered, altered or destroyed, so that said article may be properly and legally returned to the possession of the person legitimately entitled to the ownership and possession thereof. (Ord. 1193 § 1, 1969; prior code § 2.10.2). 2.60.150 Vesting of title to unclaimed property in finder. A. Valuation of $250.00 or More. If the reported value of the property is $25 0.00 or more and no owner appears and proves his ownership of the property within 90 days, the police department shall cause notice of the property to be published at least once in a newspaper of general circulation. If after seven days following the first publication of the notice, no owner appears and proves his ownership of the property and the person who found or saved the property pays the cost of the publication, the title shall vest in the person who found or saved the property, unless the property was found in the course of employment by an employee of any public agency, in which case the property shall be sold at public auction. Title to the property shall not vest in the person who found or saved the property or in the successful bidder at the public auction unless the required fee(s) is first paid to the city, county, or city and county whose police department caused the notice to be published. B. Valuation of Less Than $250.00. If the reported value of the property is less than $25 0.00 and no owner appears and proves his ownership of the property within 90 days, the title shall vest in the person who found or saved the property, unless the property was found in the course of employment by an employee of any public agency, in which case the property shall be sold at public auction. C. Exception – Bicycle. If the found or saved property is a bicycle, if no owner appears and proves ownership of the bicycle within 90 days, the title shall not vest in the person who found or saved the bicycle. All such unclaimed bicycles shall be sold at public auction or donated for charitable purposes pursuant to this chapter. (Ord. 2657 § 3, 1995; Ord. 2506 § 1, 1992; Ord. 2147 § 1, 1986; Ord. 1766 § 1, 1977). 2019-04-09 Agenda Packet Page 51 C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@D80D7CE8\@BCL@D80D7CE8.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.60, LOST AND STOLEN PROPERTY, TO CHANGE THE TITLE, MINIMUM HOLDING PERIOD, AND TO MAKE OTHER UPDATES WHEREAS, the Police, Parks and Public Works departments of the City routinely encounter lost or unattended personal property in City parks and other City-owned property; and WHEREAS, City staff collects, tags and stores such for safekeeping to give the owner an opportunity to claim the property; and WHEREAS, such property is retained at the Police Department, which has limited capacity, or at 707 F Street, the former City shops building; however, this location will become unavailable for storage use in the spring of 2019, requiring the City to find alternative means and locations to store lost and unattended property; and WHEREAS, Chula Vista Municipal Code section 2.60.010, enacted in 1967, requires retention of such property for at least six (6) months; and WHEREAS, pursuant to California Civil Code section 2080.4 and Civil Code section 2080.6, a city may provide by ordinance or regulations for the care, restitution, sale or destruction of unclaimed property in the city’s possession, so long as the ordinance requires the city to hold such unclaimed property for the State-law minimum of ninety (90) days; and WHEREAS, staff has requested and demonstrated a need to reduce the required retention period for lost and unclaimed property from six (6) months to ninety (90) days for consistency with State law and to allow more efficient management of limited storage space in the Police Department and other City property; and WHEREAS, Chula Vista Municipal Code section 2.60.150, Vesting of title to unclaimed property in finder, which applies to a found item turned in by a finder who wants to claim the item, requires the Police Department to advertise the found item in a newspaper of general circulation when the item is valued at $25 or more; while these instances are rare, the staff time and ad costs to City for advertising exceeds the value of the found item because the value threshold is so low; and WHEREAS, pursuant to California Civil Code section 2080.3, the value threshold requiring advertising found property when the finder wishes to claim the item is $250; and WHEREAS, staff has requested and demonstrated a need to increase the value threshold for advertising found property in which a finder seeks to claim the item from $25 to $250, to save staff time and City funds and for consistency with State law; and 2019-04-09 Agenda Packet Page 52 Ordinance Page 2 WHEREAS, staff has requested to change the title from “lost and stolen” property to “unclaimed” property for consistency with state law and the ordinances of other cities. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Chapter 2.60 UNCLAIMED PROPERTY* Sections: 2.60.010 Holding period –Minimum term – Exceptions. 2.60.020 Holding period – Bicycles and perishable material – Sale permitted when. 2.60.030 Sale – Procedure generally. 2.60.035 Transfer of property to city. 2.60.040 Sale – Notice of time and place required. 2.60.050 Sale – Payment of purchase price – Receipt – Transfer of title. 2.60.060 Recovery of property by owner permitted when. 2.60.070 Disposition of proceeds of sale – Generally – Manner of selling items. 2.60.080 Disposition of proceeds of sale – Perishable property procedure. 2.60.090 Responsibility for care and preservation – Liability for loss or damage. 2.60.095 Destruction of unclaimed property – Liability for destruction. 2.60.100 Identification tag required – Contents. 2.60.110 Register to be maintained – Contents. 2.60.120 Chapter not applicable to animals. 2.60.130 Identification markings for certain impounded articles – Purpose and intent. 2.60.140 Identification markings for certain impounded articles – Procedure authorized. 2.60.150 Vesting of title to unclaimed property in finder. * For statutory provisions regarding the disposition of lost or unclaimed property, see Civil Code § 2080, et seq.; for authority for municipalities to regulate the disposition of lost property in the hands of the police, see Civil Code § 2080.4. CROSS REFERENCE: Purchasing Systems, see Ch. 2.56 CVMC. 2.60.010 Holding period –Minimum term – Exceptions. All unclaimed personal property, except animals, bicycles and perishable property, in the possession of the police department or other City department shall be held by the police department or other City department for a period of at least 90 days. (Ord. 1067 § 1, 1967; prior code § 2.37). 2.60.020 Holding period –Bicycles and perishable material – Sale permitted when. Unclaimed perishable property may be sold at public auction or transferred in the manner set forth in this chapter for personal property other than perishable property, prior to the expiration of the 90-day period. Bicycles may be sold at public auction in the same manner, or donated to a 2019-04-09 Agenda Packet Page 53 Ordinance Page 3 nonprofit, charitable organization designated by the chief of police, after being held by the police department for a period of at least 90 days. (Ord. 2657 § 1, 1995; Ord. 2098 § 1, 1985; Ord. 1067 § 1, 1967; prior code § 2.38). 2.60.030 Sale –Procedure generally. After holding such unclaimed property for the period described herein, the same shall be sold by the chief of police, or his duly authorized representative, at public auction to the highest bidder or, in the case of unclaimed bicycles only, may be donated to a nonprofit, charitable organization designated by the chief of police. Any donation of bicycles shall be made pursuant to department policy for designation of eligible nonprofit, charitable organizations, which shall set forth standards including, but not limited to: that the recipient organization will use the bicycles for donation to youths determined to be “at risk” or of special financial need and that donations of bicycles will not be made to members of the police department or their respective families. Alternatively, pursuant to the provisions of CVMC 2.60.035, said unclaimed property may be transferred to the city. (Ord. 2657 § 2, 1995; Ord. 2098 § 1, 1985; Ord. 1067 § 1, 1967; prior code § 2.39). 2.60.035 Transfer of property to city. Upon recommendation of the chief of police or his duly authorized representative, the city purchasing agent may determine that unclaimed property is suitable for use by the city. The provisions of this chapter relating to the holding period and notice shall be complied with prior to the transfer to and acquisition by the city. (Ord. 2098 § 2, 1985). 2.60.040 Sale –Notice of time and place required. Prior to the sale at public auction or transfer, notice of the time and place of such sale and articles to be sold or transferred shall be given by the chief of police, at least five days before the time fixed therefor, by publication once in a newspaper of general circulation published in the city. (Ord. 2098 § 1, 1985; prior code § 2.40). 2.60.050 Sale –Payment of purchase price – Receipt – Transfer of title. At the time of the sale of any unclaimed property, the purchaser shall pay the cash purchase price into the finance department, and the finance department shall issue a validated receipt for such money for the personal property being purchased, and the chief of police or the authorized member of his department shall, upon presentation of such validated receipt, transfer such property to the purchaser. (Prior code § 2.40.1). 2.60.060 Recovery of property by owner permitted when. Any person may claim property in possession of the police department at any time prior to the first publication of notice of sale or transfer by proving, to the satisfaction of the chief of police, ownership of such property and paying the required fee(s). (Ord. 2506 § 1, 1992; Ord. 2098 § 1, 1985; prior code §2.41). 2.60.070 Disposition of proceeds of sale –Generally – Manner of selling items. All moneys derived from the sale of unclaimed property other than perishable property shall be deposited in the general fund of the city and shall belong to the city. If more than one article is offered for sale at auction, they may be sold individually or collectively, as the chief of police may determine. (Prior code § 2.42). 2019-04-09 Agenda Packet Page 54 Ordinance Page 4 2.60.080 Disposition of proceeds of sale –Perishable property procedure. All moneys, if any, derived from the sale of unclaimed perishable property shall be held for the owner of such property, providing he shall prove ownership of the perishable property prior to the expiration of the period of 90 days from the date of first possession of such property by the chief of police. If no owner claims such property within the 90-day period, then the moneys derived from such sale shall be placed in the general fund of the city. (Prior code § 2.43). 2.60.090 Responsibility for care and preservation –Liability for loss or damage. The chief of police or City staff designated by the chief of police shall be responsible for the care and preservation of the unclaimed property hereinbefore referred to, until the same is sold, destroyed, or returned to the lawful owner thereof, but in no event shall the chief of police, designated staff or the city be liable in damages for the loss or damage to such unclaimed property. (Ord. 2147 § 3, 1986; prior code § 2.44). 2.60.095 Destruction of unclaimed property –Liability for destruction. The chief of police or his representative may destroy all unclaimed property after holding the unclaimed property for the period prescribed herein, with no owner appearing and proving ownership of the property within the prescribed period, or the unclaimed property may be destroyed upon the failure of the property to be sold at public auction pursuant to this chapter; but in no event shall the chief of police or the city be liable for damages for the destruction of such unclaimed property. (Ord. 2147 § 2, 1986). 2.60.100 Identification tag required –Contents. Each article of unclaimed property shall be identified with a tag on the same, showing the first date of possession by the chief of police and the circumstances surrounding his acquisition of possession. (Prior code § 2.45). 2.60.110 Register to be maintained –Contents. The chief of police or City staff designated by the chief of police shall maintain a register of all unclaimed property received by the police department. Such register shall describe each item of property; the time, date and place it was received; the name of the person from whom it was received; and the circumstances surrounding its receipt, together with the date and manner of disposition of such property. (Prior code § 2.45.1). 2.60.120 Chapter not applicable to animals. This chapter shall not apply to lost, strayed or unclaimed animals. (Prior code § 2.46). 2.60.130 Identification markings for certain impounded articles –Purpose and intent. It is the purpose and intent of the city council to establish a procedure which authorizes the police department of the city to place identifying numbers upon certain articles which have been impounded during the course of investigation of theft, where said articles have had the identifying numbers removed or obliterated, thus making the possession of said articles illegal under the provisions of Section 537E of the California Penal Code. Said procedure is also intended for application to any articles which come into the possession of the police department 2019-04-09 Agenda Packet Page 55 Ordinance Page 5 for control or custody by any other process and which may also have had any identifying numbers or markings obliterated therefrom. (Ord. 1193 § 1, 1969; prior code § 2.10.1). 2.60.140 Identification markings for certain impounded articles –Procedure authorized. The chief of police is authorized and directed to assign a distinguishing number or identification mark and affix said number or mark to any item, from which the manufacturer’s name plate, serial number or any other distinguishing number or identification mark has been removed, defaced, covered, altered or destroyed, so that said article may be properly and legally returned to the possession of the person legitimately entitled to the ownership and possession thereof. (Ord. 1193 § 1, 1969; prior code § 2.10.2). 2.60.150 Vesting of title to unclaimed property in finder. A. Valuation of $250.00 or More. If the reported value of the property is $250.00 or more and no owner appears and proves his ownership of the property within 90 days, the police department shall cause notice of the property to be published at least once in a newspaper of general circulation. If after seven days following the first publication of the notice, no owner appears and proves his ownership of the property and the person who found or saved the property pays the cost of the publication, the title shall vest in the person who found or saved the property, unless the property was found in the course of employment by an employee of any public agency,in which case the property shall be sold at public auction. Title to the property shall not vest in the person who found or saved the property or in the successful bidder at the public auction unless the required fee(s) is first paid to the city, county, or city and county whose police department caused the notice to be published. B. Valuation of Less Than $250.00. If the reported value of the property is less than $250.00 and no owner appears and proves his ownership of the property within 90 days, the title shall vest in the person who found or saved the property, unless the property was found in the course of employment by an employee of any public agency, in which case the property shall be sold at public auction. C. Exception – Bicycle. If the found or saved property is a bicycle, if no owner appears and proves ownership of the bicycle within 90 days, the title shall not vest in the person who found or saved the bicycle. All such unclaimed bicycles shall be sold at public auction or donated for charitable purposes pursuant to this chapter. (Ord. 2657 § 3, 1995; Ord. 2506 § 1, 1992; Ord. 2147 § 1, 1986; Ord. 1766 § 1, 1977). Section II. 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 III. Construction 2019-04-09 Agenda Packet Page 56 Ordinance Page 6 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 IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Tracy Lamb Glen R. Googins Community Services Director City Attorney 2019-04-09 Agenda Packet Page 57 v . 0 0 1 P a g e | 1 April 9, 2019 File ID: 19-0120 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING CITY COUNCIL POLICY 505-04 (STATEMENT OF GOALS AND POLICIES REGARDING ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICTS) ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTERS 3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTS GENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT (FIRST READING) RECOMMENDED ACTION Council adopt the resolution and place the ordinance on first reading. SUMMARY Community Facilities Districts (CFDs) are used as a public financing mechanism in the City of Chula Vista. The City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the “Goals and Policies”) and the City’s CFD Ordinance ratify and govern the use of CFDs in the City. Codifying the CFD Ordinance as Chapter 3.60 of the Chula Vista Municipal Code (CVMC) and adopting the Goals and Policies as City Council Policy 505-04 are recommended. Additional edits to the CFD Ordinance to expand the list of authorized public facilities and services to include certain facilities and services to be financed in a future special tax district on the Chula Vista Bayfront are also recommended, along with the adoption of CVMC Chapter 3.61 (Bayfront Project Special Tax Financing District Procedural Ordinance). ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. 2019-04-09 Agenda Packet Page 58 P a g e | 2 DISCUSSION The Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) provides local jurisdictions with an alternative method of financing certain public capital facilities and services, especially in developing areas and areas undergoing rehabilitation. Special tax districts formed pursuant to the Mello-Roos Act are referred to as Community Facilities Districts, or CFDs. As a prerequisite to forming CFDs, the local jurisdiction must first consider and adopt local goals and policies concerning use of the Mello-Roos Act. On January 13, 1998, Council adopted the Goals and Policies via Resolution No. 18860. The approval of this document ratified the use of CFDs in the City of Chula Vista as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure and (2) the financing of authorized public services. The Goals and Policies were subsequently amended in July 1998, December 1998, and November 2013 via Resolution Nos. 19103, 19300, and 2013-225, respectively. Staff recommends adopting the Goals and Policies as City Council Policy Number 505-04 (Attachment 1). Inclusion of the Goals and Policies in the City Council Policy Manual increases transparency and simplifies administration. Minor textual edits are recommended, along with updates to reflect standard practices. Substantive updates to the Goals and Policies include the following: For districts issuing bonds, increasing the maximum period of capitalized interest from 18 months to 36 months for tax-exempt financings and 48 months for taxable financings; For maintenance and/or service districts, requiring the inclusion of life-cycle replacement costs for maintained facilities in the rate and method of apportionment; and For maintenance and/or service districts, requiring the authorization of annual inflationary adjustments to the maximum special taxrates, to be based on the most specific applicable index. In addition to adopting the Goals and Policies, on April 28, 1998 the Council adopted Ordinance 2730, enacting the City of Chula Vista Community Facilities District Ordinance (the “CFD Ordinance”). In adopting the CFD Ordinance pursuant to its Charter City authority, the City incorporated the Mello-Roos Act with modifications to accomplish the following: (1) include all maintenance activities authorized by the Landscaping and Lighting Act of 1972 (the “1972 Act”); (2) include maintenance activities not listed in the Mello-Roos Act or the 1972 Act (i.e. monitoring activities on privately owned parcels within the Otay Ranch Preserve and maintenance of pedestrian bridges and community gardens); and (3) establish an operating reserve fund for open space districts. Staff recommends codifying the CFD Ordinance as CVMC Chapter 3.60 (Community Facilities Districts – General) for increased transparency and simplified administration. Updates to the ordinance for consistency with CVMC standards are also recommended, including replacing the Declaration of Policy section with a General Intent section, the addition of a Definitions section, and minor reordering of sections. Additional modifications to further expand the list of explicitly authorized services and facilities are also recommended, as described below. Chula Vista BayfrontSpecial Tax District On May 8, 2012, the City of Chula Vista and the San Diego Unified Port District entered into a Bayfront Master Plan Financing Agreement (the “Financing Agreement”) for the Chula Vista Bayfront Master Plan 2019-04-09 Agenda Packet Page 59 P a g e | 3 (CVBMP). The Financing Agreement identified the rights and obligations of each agency, with respect to the financing, development, and construction of public improvements, infrastructure, and a planned convention/conference center in the CVBMP area. The Financing Agreement was subsequently amended and restated to recognize additional rights and obligations of the respective agencies, effective June 20, 2017. In Section 4.2.2(d) of the Financing Agreement both parties acknowledged a mutual desire to explore the creation of a vehicle by which additional occupancy-based revenues in an amount up to one-half of the current Transient Occupancy Tax (TOT) for the Bayfront project area could be applied to the cost of public improvements and/or the planned convention/conference center. The Financing Agreement recognized the creation of a district under the Mello-Roos Act or the CFD Ordinance as a possible public financing mechanism for this purpose and the parties agreed to consider the creation of such a district. Formation efforts for a Bayfront special tax district are underway and will be brought forward to the Council for consideration in spring 2019. In undertaking the formation of the Bayfront special tax district, the need to further amend the CFD Ordinance to authorize additional services and facilities not explicitly authorized by the Mello-Roos Act was identified. Additional services and facilities to be authorized include the following: Public shuttle operations; and Promotion of public events and tourism within the district; and Security, sanitation, graffiti removal, street and sidewalk cleaning and other municipal services supplemental to those normally provided by the City; and Parking improvements; and Energy efficiency, water conservation, and renewable energy improvements; and Conference center facilities. In further support of a future Bayfront special tax district, the adoption of CVMC Chapter 3.61 (Bayfront Project Special Tax Financing District Procedural Ordinance) is recommended. As proposed, Chapter 3.61 establishes a procedure for financing certain public improvements and maintenance and services to serve the CVBMP area, through the establishment of a Bayfront Project Special Tax Financing District (the “Bayfront District”). Chapter 3.61 incorporates the provisions of the Mello-Roos Act and the California Streets and Highways Code, while identifying certain provisions that will not apply or that will be modified. Examples include the previously referenced allowance for three years of capitalized interest on tax-exempt bonds and four years on taxable bonds, as compared with the two years authorized in the Mello-Roos Act. Additional modifications and exclusions of Mello-Roos Act provisions largely relate to the formation process for the future Bayfront District, which will require an election of landowners, not registered voters. The Bayfront District special tax will be levied by hotel operators on transient occupants (hotel visitors). The tax will not be assessed on traditional residential uses. As such, it is more appropriate for the district electors to be the landowners, rather than the registered voters as required under the Mello-Roos Act. 2019-04-09 Agenda Packet Page 60 P a g e | 4 Next Steps If approved, CVMC Chapters 3.60 and 3.61 will be effective 30 days after the second reading of the ordinance. Staff intends to return with a Resolution of Intent to form the previously described Bayfront District immediately following the effective date of the ordinance. The date of the public hearing to consider establishment of the Bayfront District will be set at that time. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current year fiscal impact. All costs associated with preparation of the report and proposed resolution and ordinance are funded byexisting current year appropriations. ONGOING FISCAL IMPACT There is no ongoing fiscal impact resulting from approving the resolution adopting City Council 505-04 (Statement of Goals and Policies Regarding Establishment of Community Facilities Districts) or codifying the existing CFD Ordinance. Approving updates to the CFD Ordinance to allow for the financing of additional facilities and services in CFDs and adopting the Bayfront Project Special Tax Financing District Procedural Ordinance support development of the Chula Vista Bayfront. ATTACHMENTS 1. Proposed City Council Policy 505-04 (Statement of Goals and Policies Regarding Establishment of Community Facilities Districts) Staff Contact: Tiffany Allen, Development Services Department 2019-04-09 Agenda Packet Page 61 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 1 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) BACKGROUND The Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) and Ordinance No. 2730, as amended from time to time and codified in Chapter 3.60 of the Chula Vista Municipal Code (the “CFD Ordinance”) allows for the creation of Community Facilities Districts (CFDs) to finance certain public capital facilities and services, especially in developing areas and areas undergoing rehabilitation. As a prerequisite to forming CFDs pursuant to the Mello-Roos Act, each local jurisdiction must first consider and adopt local goals and policies as described therein. The City first adopted the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the “Goals and Policies”) on January 13, 1998, via Resolution No. 18860. The Goals and Policies were subsequently amended in July 1998, December 1998, and November 2013 via Resolution Nos. 19103, 19300, and 2013-225, respectively. Inclusion of the “Goals and Policies” in the City Council Policy Manual is recommended and are applicable to CFDs formed under the Mello-Roos Act and the CFD Ordinance. PURPOSE The purpose of this Statement of Goals and Policies is to provide the City staff, the residents of the City,and the owners and developers of property located within the City with guidance in the application for,and consideration of, the establishment of community facilities districts for the purpose of financing or assisting in financing the acquisition or construction of public infrastructure or the provision of authorized public services to benefit and serve either existing or new development or a combination thereof. The underlying principals behind this policy are the protection of the public interest, assuring fairness in the application of special taxes to current and future property owners, assuring full disclosure of the existence of any special tax liens, ensuring the creditworthiness of any community facilities district special tax bonds, protecting the City's credit rating and financial position and assuring that applicants for all community facilities district proceedings other than City initiated proceedings pay all costs associated with the formation of any community facilities district. POLICY The City Council of the City of Chula Vista (hereafter the “City Council”) hereby establishes and states its goals and policies concerning the use of Chapter 2.5 of Part I of Division 2 of Title 5 of the Government Code of the State of California (hereafter the “Act”) in providing adequate public infrastructure improvements and public services for the City of Chula Vista (the “City”). The following goals and policies shall apply to all community facilities districts hereafter formed or proposed to be formed by the City. Any policy or goal stated herein may be supplemented or amended by resolution 2019-04-09 Agenda Packet Page 62 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 2 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) of the City Council. The scope of this policy is limited to the proposed formation of community facilities districts for the limited purpose of financing or assisting in financing the acquisition or construction of public infrastructure and/or the provision of authorized public services. Introductory Statement The City will consider applications initiated by owners or developers of vacant property proposed to be developed, owners of property within existing developed areas, registered voters residing in existing developed areas, or the City itself for the establishment of community facilities districts to finance authorized public improvements or to provide authorized public services which benefit or serve existing or new development or a combination thereof. A community facilities district or an improvement area within a community facilities district proposed to be established to finance public improvements or authorized services to serve new development may be referred to as a “Development Related CFD.” Each application for the establishment of a community facilities district must comply with the applicable goals and policies contained herein unless the City Council expressly grants an exception to such policy or policies as they apply to a specific application. Finding of Public Interest or Benefit The City Council may authorize the initiation of proceedings to form a community facilities district to finance authorized public improvements or to provide authorized public services if the City Council determines that the public improvements to be financed or public services to be provided or, in the case of a Development Related CFD, the attributes of the new development will provide, in the opinion of the City Council, a public benefit to the community at large as well as the benefit to be derived by the properties within the community facilities district. Examples of public benefit to the community at large may include, but are not limited to the following: 1. Construction of a major public facility which meets a community need including, but not limited to, a major arterial which will provide a vital roadway facility to alleviate congestion, water storage facilities which will remedy inadequate fire flow, and storm drainage facilities which are a part of the storm drainage master plan. 2. Provision of public infrastructure sooner than would otherwise be required for a particular development project. 2019-04-09 Agenda Packet Page 63 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 3 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) 3. Construction of public infrastructure to serve commercial or industrial projects which will expand the City's employment and/or sales tax base. 4. Provision of maintenance or other authorized public services such as landscaping, lighting, storm drain, flood control or open space maintenance necessary to promote or maintain quality of life and public safety within existing or developing areas of the City. Authorized Public Facilities Improvements proposed to be financed through a community facilities district must be public improvements which will be owned, operated or maintained by the City or another public agency or public utility or to which the City is authorized to contribute revenue. The types of improvements eligible to be financed must serve a whole neighborhood or commercial or industrial area or greater. Such improvements include: 1. Streets and highways satisfying one or more of the following criteria: A. identified in the Circulation Element of the City as collectors or arterials; B. no direct access by abutting properties; or C. minimum daily traffic volume of 3,500 ADT. 2. Sewer lines or other sewer facilities serving a minimum of 500 single family dwellings or equivalent dwelling units or such other area of the community as the City Manager, or his or her designee, may determine to otherwise be consistent with the intent of these goals and policies to be located within authorized streets and highways or within other public rights-of-way shown on the master plan of sewer facilities. 3. Water mains with a minimum diameter of 10" or other water facilities to be located within authorized streets and highways or within other public rights-of-way shown on the master plan of water facilities. 4. Drainage facilities serving a minimum of 100 acres or such other area of the community as the City Manager, or his or her designee, may determine to otherwise be consistent with the intent of these goals and policies or draining an eligible street. 5. Landscaping and irrigation facilities meeting one of the following criteria: 2019-04-09 Agenda Packet Page 64 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 4 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) A. Located within the right-of-way of a street or highway shown on the Circulation Element of the City's General Plan; B. Located adjacent to an adopted scenic route; or C. Located within dedicated open space. 6. Reclaimed water facilities serving an area which benefits the area within the proposed community facilities district. 7. Dry utilities serving a minimum of 500 single family dwelling units or equivalent dwelling units or such other area of the community as the City Manager, or his or her designee, may determine to otherwise be consistent with the intent of these goals and policies; provided, however, the amount of special tax bond proceeds allocable to such dry utilities may not exceed that amount permitted under Federal tax law and regulations to ensure the tax exempt status of interest on the applicable special tax bonds. 8. Grading for eligible public streets; provided, however, grading for a Development Related CFD must meet one of the following criteria: A. Grading within the vertical planes of the right-of-way; B. Slopes to City-owned open space or open space easement areas; or C. Offsite roadway grading. If the cut and fill within (A) and (B) do not balance, the cost of excavating, hauling and compacting fill in the street is authorized to be financed. If there is excess material in the street right-of-way, only the cost of excavating and hauling to private property within the development project is eligible to be financed. The determination of balance will be made on a total eligible street grading basis, not on an individual street basis. 9. Such other improvements as may be authorized by law and which the City Council determines are consistent with the policies herein. The City Council shall have the final determination as to the eligibility of any improvement for financing, as well as the prioritization of financing of such improvements. Generally, “in-tract” (e.g., local streets or utilities) improvements which serve residential development will not be considered eligible to be financed through a community facilities district unless requested by the owners or registered voters of an existing residential development to remedy a threat, found to exist by the City Council, to the public health or safety resulting from an existing deficiency in public improvements to 2019-04-09 Agenda Packet Page 65 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 5 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) serve such existing development. Any public improvements proposed to be financed through a community facilities district must meet all design and construction requirements and standards as may be established by the City. Any public improvement, the construction of which is completed following the adoption of the resolution of formation of a community facilities district, proposed to be acquired by the City from the owner or developer of property within a Development Related CFD must be constructed as if such improvements had been constructed under the direction and supervision, or under the authority of, the City. Public improvements proposed to be acquired from the proceeds of special tax bonds or special taxes shall not be acquired until all improvements for a particular Project (as defined below) are completed and accepted by the City and the City Manager, or his or her designee, has certified the final cost of such improvements. For purposes of this paragraph, a “Project” shall be defined as all improvements within a particular street or easement including street improvements, sewer, drainage, utilities and grading and which are authorized to be acquired by the community facilities district pursuant to an acquisition and financing agreement by and between the City, acting on behalf of itself and the community facilities district, and the property owner or developer who is responsible for the construction of the public improvements (the “'Acquisition/Financing Agreement”). If improvements within more than one (1) Project are authorized to be acquired through the community facilities district, then the improvements within each Project may be acquired separately as all improvements within such Project are completed and accepted by the City and the final costs certified. Each Project established for any community facilities district and all improvements included within each such Project must be described in the Acquisition/Financing Agreement for such community facilities district. If the Acquisition/Financing Agreement has established more than one (1) Project for any community facilities district, the Acquisition/Financing Agreement may authorize the partial release of funds to pay for the acquisition of each Project when such Project is completed and accepted by the City. The City Council may, in its sole discretion, elect to deviate from or waive the foregoing policy in its consideration of the approval of an Acquisition/Financing Agreement for a community facilities district to authorize the payment of the purchase price for each discrete component of a Project, i.e., an individual improvement within a Project such as a sewer line within a Project which also includes street, water and drainage improvements. In electing to deviate from or waive the foregoing policy, the City Council may condition the payment of the purchase price for discrete components as the City Council deems necessary to ensure the financial integrity of the community facilities district financing. 2019-04-09 Agenda Packet Page 66 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 6 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) Prioritization of Public Improvements It is the policy of the City to give first priority to the provision of public improvements benefiting the City in any community facilities district established by the City. It is secondarily the policy of the City, in any community facilities district established by the City, to assist in the provision of other public improvements to be owned, operated or maintained by other public agencies or public utilities. Authorized Public Services Public services proposed to be financed through a community facilities district may include: 1. Maintenance of parkways, medians and open space, including but not limited to, maintenance of walls, fences, trail systems, pedestrian access systems and other facilities within such open space, maintenance and preservation of habitat within such open space, and biota and other forms of monitoring of plants, wildlife, use of wildlife corridors and habitat quality as a part of any such open space maintenance program. 2. Maintenance of naturalized drainage and flood control facilities including, but not limited to, channels and detention and desiltation basins. 3. Such other services as may be authorized by the Mello-Roos Act or by ordinance of the City adopted pursuant to the charter authority of the City and which the City Council determines are consistent with the goals and policies herein and are in the best interest of the City and the residents and property owners within the community facilities district. Incidental Costs Eligible Incidental Costs Eligible incidental costs which may be financed from the proceeds of special tax bonds issued for a Development Related CFD or the special tax levied within a Development Related CFD shall be limited to those incidental costs directly related to the improvements financed from the proceeds of such special tax bonds or special tax revenues and may include: 1. Usual and customary design and engineering costs not to exceed the following percentages: A. Civil engineering - 7.5% of the cost of the improvements for which the engineering was performed. 2019-04-09 Agenda Packet Page 67 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 7 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) B. Soils engineering - 15% of the cost of the applicable grading. C. Landscape architecture - 10% of the cost of the applicable landscaping and irrigation. D. Surveying and construction staking - 2% of the combined cost of the civil engineering improvements and grading for the applicable street and wet utilities. E. Utility engineering/coordination -3% of the cost of the applicable dry utilities. 2. Construction administration and supervision not to exceed, in aggregate, 1.75% of the total construction cost of the applicable public improvements. 3. Special engineering studies related to "collector" or "transmission" facilities. Eligibility of such studies must be reviewed and approved by the Director of Development Services, or his or her designee. 4. Plan check and inspection fees (less any refunds). 5. Capacity or connection fees related solely to the public improvements being acquired or constructed as permitted under the Mello-Roos Act. 6. Capitalized interest on any community facilities district special tax bonds as authorized by the City Council pursuant to these goals and policies. 7. Costs of acquisition of off-site rights-of-way and/or easements including the following: A. Appraisal costs, including title reports. B. Costs of preparing acquisition plats. C. Appraised value or actual cost of right-of-way or easement, whichever is less. D. Legal fees and cost related to eminent domain proceedings approved by the City Attorney. 8. Reimbursement of funds advanced by the applicant to pay for (i) preformation costs and/or (ii) costs of issuance incurred by or on behalf of the City. 9. Costs of environmental review, permitting and mitigation limited to the specific public improvements proposed to be financed through the community facilities district. Unless specified otherwise above, the City Manager, or his or her designee, shall review all incidental 2019-04-09 Agenda Packet Page 68 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 8 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) costs to ensure that such costs are customary and reasonable. Ineligible Incidental Costs The following costs are not eligible to be financed from the proceeds of community facilities district special tax bonds: 1. Development impact fees; provided, however, the City Council may, in its sole discretion, grant credit in an amount not to exceed the obligation for the payment of such fees if improvements which would otherwise be financed from the proceeds of such fees are financed from the proceeds of community facilities district special tax bonds or special taxes. 2. Administrative or overhead expenses, financial or legal fees incurred by an applicant for the formation of a community facilities district. This limitation does not apply to amounts advanced by the applicant to the City pursuant to the provisions of this policy to pay for preformation costs incurred by the City. (See “Preformation Cost Deposits and Reimbursements” below.) 3. Land use planning and subdivision costs and environmental review costs related to such land use planning and subdivision. 4. Planning Studies unless off-site. 5. Environmental impact reports unless off-site. 6. Construction loan interest. 7. Subdivision financial analysis. 8. Attorneys’ fees related to the land use entitlement or subdivision process unless off-site. 9. On site right-of-way and easements. 10. Any compensation payable to the City as consideration for the City's agreement to provide the financing mechanism for the financing of the authorized improvements and eligible incidental expenses and to acquire the authorized improvements pursuant to the terms and conditions of an agreement with the City and the property owner or developer as appropriate. 11. Other overhead expenses incurred by the applicant. Required Value-To-Debt Ratio It is the policy of the City that the value-to-debt ratio for a community facilities district must be at least 2019-04-09 Agenda Packet Page 69 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 9 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) 4:1. The calculated value-to-debt ratio shall reflect the full cash value of the properties subject to the levy of special taxes, including the value of the improvements to be financed from the proceeds of the issue or series of special tax bonds for which the value-to-debt ratio is being computed, compared to the aggregate amount of the special tax lien proposed to be created plus any prior fixed assessment liens and/or special tax liens. The required value-to-debt ratio shall be determined with respect to all taxable property within the community facilities district in the aggregate and with respect to each development area for which no final subdivision map has been filed. A community facilities district with a value-to-debt ratio of less than 4:1 but equal to or greater than 3:1 may be approved, in the sole discretion of the City Council, upon a determination by the City Manager, after consultation with the Finance Director, the bond counsel, the underwriter and the financial advisor, that a value-to-debt ratio of less than 4:1 is financially prudent under the circumstances of the particular community facilities district. In addition, the City Council may, in its sole discretion, accept a form or forms of credit enhancement such as a letter of credit, bond insurance or the escrow of bond proceeds to offset a deficiency in the required value-to-debt ratio as it applies to the taxable property within the community facilities district in the aggregate or with respect to any development area. The value-to-debt ratio shall be determined based upon the full cash value of the properties subject to the levy of the special tax as shown on the ad valorem assessment roll or upon an appraisal of the properties proposed to be assessed; provided, however, the City Manager may require that the value- to-debt ratio be determined by an appraisal if, in his or her judgement, the assessed values of the properties proposed to be assessed do not reflect the current full cash value of such properties. The appraisal shall be coordinated by, done under the direction of, and addressed to the City. The appraisal shall be undertaken by a state certified real estate appraiser, as defined in Business and Professions Code Section 11340. The appraiser shall be selected and retained by the City or the City's financial advisor. The costs associated with the preparation of the appraisal report shall be paid by the applicant for the community facilities district and shall be subject to possible reimbursement as provided for herein. The appraisal shall be conducted in accordance with assumptions and criteria established by the City, based upon generally accepted appraisal standards or state recommended standards for similar appraisals conducted for the same purpose. The City reserves the right to require a market absorption study for any Development Related CFD. In any such case the City shall retain, at the applicant's sole expense but subject to reimbursement as provided for herein, a consultant to prepare a report to verify or establish the projected market absorption for and the projected sales prices of the properties proposed to be included within the 2019-04-09 Agenda Packet Page 70 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 10 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) community facilities district. If a market absorption study is conducted, the appraiser shall utilize the conclusions of the market absorption study in conducting the appraisal of the properties within the proposed community facilities district or shall justify, to the satisfaction of the City Manager, why such conclusions were not utilized in conducting such appraisal. Criteria for Appraisals Definition of Appraisal For purposes of these goals and policies, an appraisal shall mean a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. Contents of the Appraisal An appraisal should reflect nationally recognized appraisal standards, including, to the extent appropriate, the Uniform Standards of Professional Appraisal Practice. An appraisal must contain sufficient documentation, including valuation data and the appraiser's analysis of such data, to support the appraiser's opinion of value. At a minimum, the appraisal shall contain the following: 1. Purpose of the Appraisal. This should include the reason for the appraisal, a definition of all values required, and the property rights being appraised. 2. Area, City and Neighborhood Data. These data should include such information as directly affects the appraised property together with the appraiser's conclusions as to significant trends. 3. Property Data. This should include a detailed physical description of the property, its size, shape, soil conditions, topography, improvements, and other physical characteristics which affect the property being appraised. The availability, capacity of, and proximity to, utilities and other infrastructure should also be discussed. 4. Title Condition. The condition of title to the property appraised should be discussed based upon the appraiser’s examination of a title report of the property appraised. The appraiser should analyze and discuss those title issues which are concluded to impact the value of the property being appraised. 2019-04-09 Agenda Packet Page 71 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 11 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) 5. Improvement Condition. A. The appraiser shall value the property within the community facilities district on an “as-is” basis taking into consideration the value associated with the public improvements to be funded from the proceeds of the issue of bonds for which the appraisal is being undertaken. The property in the community facilities district shall be valued as if it were free and clear of any special taxes and assessments, if any, so that a proper comparison of value-to-debt can be determined. In determining his or her conclusion of value, the appraiser may consider the value of the property in the community facilities district under different market conditions. This may consist of valuing the property as if it were sold to a single purchaser in bulk or sold to several purchasers in portions or pieces. B. Land parcels which have been developed with residences and subsequently sold should at a minimum indicate land parcel size, number of lots, density, number of plans, square footage, room counts, year construction was initiated, year of completion, and when sales were initiated. C. Land parcels with residential product under construction or with standing inventory should be described as in A. above and include a summary of the stage of development regarding the number of units completed, number of models, status of units under construction, finished lots and mass-graded or raw lots. In addition, a comment on the marketability of the units (architecture, size, etc.) is appropriate. D. Land parcels which have been developed with income-producing (or owner- occupied) commercial/retail, industrial, hotels, apartments, offices, etc., should be described as follows: i. Commercial-Retail - Land parcel size; basic construction type; typical tenant improvements (and who is responsible for their construction); leasable area, when construction was initiated; and date of completion. ii. Industrial - Land parcel size; basic construction type, whether single or multi-tenant; typical office build-out as percentage of total area, when construction was initiated; and date of completion. 2019-04-09 Agenda Packet Page 72 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 12 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) iii. Hotels – Land parcel size; basic construction type; number of rooms; dining, recreation, convention space, meeting rooms, and other amenities. iv. Apartments -Land parcel size; basic construction type; number of stories; number of units; unit mix; size; total rentable area, when construction was initiated; and date of completion. v. Office - Land parcel size; basic construction type; typical tenant improvements/allowance; net rentable area, when construction was initiated; and date of completion. 6. General Plan Classification. Describe the General Plan classification of the subject and comparable properties. 7. Zoning. Describe the zoning for the subject and comparable properties. Note any discrepancy between General Plan classification and zoning. If rezoning is imminent, discuss further under Item 8 below. 8. Analysis of Highest and Best Use. The report should state and support the highest and best use to which a property can be put and recognize that land is appraised as though vacant and available for development to its highest and best use, and the improvements are based on their actual contribution to the site. 9. Statement of Value. The appraiser's opinion of the value of the specified property rights, prepared according to all relevant and reliable approaches to value consistent with commonly accepted professional appraisal practices. If a discounted cash flow analysis is used, it should be supported by at least one other valuation method such as sales comparison approach utilizing sales of properties that are in the same stage of development. If more than one valuation approach is used, the appraiser shall include an analysis and reconciliation of such approaches to support the appraiser's opinion of value. 10. Certification. Certification of appraiser and permission to reproduce and use the appraisal report as required for bond issuance. Maximum Aggregate Taxes and Assessments It is the policy of the City that the maximum annual special tax installment applicable to any parcel used for residential purposes (not including motels, hotels, campsites, or other short-term lodging, as determined by the City) shall not exceed one percent (1%) of the sale price of newly developed 2019-04-09 Agenda Packet Page 73 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 13 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) properties subject to the levy of the special tax (the “Newly Developed Properties”) as of the date of the close of escrow of the initial sale of any residential dwelling unit to such residential home owner. As a distinct and separate requirement, the total of the following taxes, assessments described in 4. below and special taxes appearing on the property tax bill, shall not exceed two (2%) of such initial sales price of Newly Developed Properties: 1. Ad valorem property taxes. 2. Voter approved ad valorem property taxes in excess of one percent (1%) of the assessed value of the subject properties. 3. The maximum annual special taxes levied by the community facilities district under consideration and any other community facilities district or other public agency excepting therefrom special taxes levied by a community facilities district formed or under consideration for formation for the purpose of providing services such as open space maintenance, landscape maintenance and preserve maintenance. 4. The annual assessment installments, including any administrative surcharge, for any existing assessment district where such assessment installments are utilized to pay debt service on bonds issued for such assessment district. Annual assessment installments for maintenance and services shall not be included in the assessments calculated in determining the aggregate tax, assessment and special tax obligation for a parcel. The applicant for the establishment of any Development Related CFD which includes residential development subject to the foregoing limitations shall be required to enter into an agreement with the City or the community facilities district requiring the prepayment by the applicant of that portion of the special tax obligation applicable to any parcel used for residential purposes in order to reduce the annual maximum special tax obligation so that the maximum annual special tax installment shall not exceed 1% of the sales price for such parcel and the total taxes, assessments and special taxes does not exceed 2% of such sales price. Special Tax Requirements The rate and method of apportionment of the special tax for any community facilities district shall adhere to the following requirements: 2019-04-09 Agenda Packet Page 74 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 14 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) 1. The maximum special tax shall be adequate to include an amount necessary to pay for the expenses incurred by such community facilities district in the levy and collection of the special tax and the administration of the special tax bonds and the community facilities district. 2. The maximum projected annual special tax revenues must equal 110% of the projected annual gross debt service on any bonds of the community facilities district. 3. A backup special tax shall be required for any Development Related CFD to protect against changes in density resulting in the generation of insufficient special tax revenues to pay annual debt service and administrative expenses, unless the City Manager, or his or her designee, based on the advice of the financial advisor, special tax consultant or underwriter determines that a backup special tax is not needed under the special tax formula for such Development Related CFD. The City Council may additionally or alternatively require that as a condition of approval of the downsizing of the development in a Development Related CFD at the request of the applicant or the applicant's successor- in-interest, the applicant or the applicant's successor-in-interest, as applicable, may be required to prepay such portion of the special tax obligation as may be necessary in the determination of the City to ensure that adequate debt service coverage exists with respect to any outstanding bonds or otherwise provides security in a form and amount deemed necessary by the City Council to provide for the payment of debt service on the bonds. 4. All developed and undeveloped property within any community facilities district which is not otherwise statutorily exempt from the levy of special taxes shall bear its appropriate share of the community facilities district’s aggregate special tax obligation from the date of formation of the community facilities district consistent with the other goals and policies set forth herein. 5. A partial and/or total prepayment option shall be included in any rate and method of apportionment of special taxes to pay for public facilities. No prepayment shall be permitted of a special tax levied to finance authorized services and/or maintenance. 6. The maximum special tax to pay for public facilities shall be levied against any parcel used for private residential purposes in the first fiscal year following the fiscal year in which the building permit for the construction of a residential dwelling unit on such parcel is issued and such maximum special tax may not escalate after the first fiscal year in which such special tax is so levied. 7. The rate and method of apportionment of a special tax to pay for public facilities shall specify a fiscal year beyond which the special tax may not be levied on any parcel used for private 2019-04-09 Agenda Packet Page 75 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 15 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) residential purposes. A special tax to pay for public services and/or maintenance shall have no termination date unless established by the City Council. 8. The rate and method of apportionment of a special tax to pay for public services and/or maintenance shall include life-cycle replacement costs for maintained facilities, as determined by the City Manager, or his or her designee. 9. The rate and method of apportionment of a special tax to pay for public services and/or maintenance shall authorize annual inflationary adjustments to the maximum special tax. The authorized adjustments shall be based upon industry standard published indices, or such other data as may be approved by the City Manager, or his or her designee. In all instances, it shall be the policy of the City to employ the most specific applicable index. Examples include applying the Consumer Price Index for Urban Wage Earners and Clerical Workers to labor costs and applying the Construction Cost Index to asset replacement costs. Terms and Conditions of Special Tax Bonds All terms and conditions of any special tax bonds issued by the City for any community facilities district, including, without limitation, the sizing, timing, term, interest rates, discount, redemption features, flow of funds, investment provisions and foreclosure covenants, shall be established by the City. Each special tax bond issue shall be structured to adequately protect bond owners and to avoid negatively impacting the bonding capacity or credit worthiness of the City. Unless otherwise approved by the City Council, the following shall serve as minimum bond requirements: 1. A reserve fund shall be established for each bond issue to be funded out of the bond proceeds in an amount equal to 10% of the original proceeds of the bonds or such lesser amount as may be required by federal tax law. 2. Interest shall be capitalized for a bond issue only so long as necessary to place the special tax installments on the assessment roll; provided, however, interest may be capitalized for a term to be established in the sole discretion of the City Council on a case-by-case basis, not to exceed an aggregate of 24 months, taking into consideration the value-to-debt ratio, the expected timing of initial occupancy dates for the private improvements being constructed, expected absorption and buildout of the project, the expected construction and completion schedule for the public improvements to be funded from the proceeds of the bond issue in question, the size of the bond issue, the development pro forma and the equity position of the applicant and such other factors as the City Council may deem relevant. 2019-04-09 Agenda Packet Page 76 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 16 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) 3. In instances where multiple series of bonds are to be issued, the City shall determine what improvements shall be financed from the proceeds of each series of bonds. 4. Neither the faith, credit or taxing power of the City shall be pledged to the payment of the bonds. The sole source of revenue for the payment of the bonds shall be the special taxes, capitalized interest, if any, and moneys on deposit in the reserve fund established for such bonds. Discharge of Special Tax Obligation It is the policy of the City that the special tax obligation related to the financing of the acquisition or construction of public improvements may be prepaid and discharged in whole or in part at any time. The applicant for the formation of a Development Related CFD must provide notice and opportunity for the purchasers of property within such community facilities district to prepay the special tax obligation applicable to such property at the time of the close of escrow. The applicant for the formation of a Development Related CFD must prepare and present a plan, satisfactory to the City Council, prior to the public hearing to consider the formation of such community facilities district describing how the prospective purchaser will be notified of the existence of the special tax lien and the options which the prospective purchaser has regarding the prepayment and discharge of the special tax obligation. Disclosure to Property Purchasers in Development Related CFD's The applicant for the formation of a Development Related CFD will be required to demonstrate to the satisfaction of the City Manager (when the term City Manager is used herein it shall mean the City Manager or his or her designee) that there will be full disclosure of the special tax obligation for such community facilities district and of any and all other special taxes or assessments on individual parcels to prospective purchasers or lessees of property within such community facilities district, including interim purchasers, merchant builders, residential homeowners and commercial or industrial purchasers or lessees. Such notice must include all of the following in addition to such other provisions as may be required by the Mello-Roos Act, the Municipal Code of the City or the applicant may deem necessary: 1. Provide for full disclosure of the existence of the special tax lien and any other assessment or special tax obligation applicable to the properties within the community facilities district (whether imposed by the City or any other public agency), including the principal amount of the special 2019-04-09 Agenda Packet Page 77 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 17 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) tax obligation and any other applicable assessment or special tax obligation, term of each of the assessment or special tax liens and the amount of the expected payments of the special taxes and the maximum authorized special tax. 2. Disclose the option to prepay the special tax to pay for public facilities or allow the special tax to pay for public facilities to be passed through to the purchaser of such property and the adjustment, if any, in the sales price of the homes or other property which will apply if the special tax lien is passed through. Provide the ability for the prospective purchaser to elect to exercise the option either to prepay the special tax obligation for facilities at the close of escrow or to have the special taxes included in the property taxes for the property. Such disclosure shall be placed in all sales brochures, all other on-site advertising and all purchase documents. 3. Specify in all disclosure documents the name, title, telephone number and address of a representative of the City as provided to the applicant who may be contacted by any prospective purchaser of property within the community facilities district for further information regarding the community facilities district and the special tax liens. The applicant must agree to provide an original copy of all applicable disclosure documents to the City prior to initiating property sales. Preformation Cost Deposits and Reimbursements Except for those applications for community facilities districts where the City is the applicant, all City and consultant costs incurred in the evaluation of applications and the proceedings to form a community facilities district and issue special tax bonds therefor will be paid by the applicant by advance deposit with the City of moneys sufficient to pay all such costs. Each application for the formation of a community facilities district shall be accompanied by an initial deposit in an amount to be determined by the City Manager to be adequate to fund the evaluation of the application and undertake the proceedings to form the community facilities district and issue the special tax bonds therefor. The City Manager may, in his or her sole discretion, permit an applicant to make periodic deposits to cover such expenses rather than a single lump sum deposit; provided, however, no preformation costs shall be incurred by the City in excess of the amount then on deposit for such purposes. If additional funds are required to pay required preformation costs, the City Manager may make written demand upon the applicant for such additional funds and the applicant shall deposit such additional funds with the City within five (5) working days of the date of receipt of such demand. Upon the depletion of the funds deposited by applicant for preformation costs, all proceedings shall be 2019-04-09 Agenda Packet Page 78 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 18 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) suspended until receipt by the City of such additional funds as the City Manager may demand. The deposits shall be used by the City to pay for costs and expenses incurred by the City incident to the evaluation of the application and the proceedings for the formation of the community facilities district and the issuance of the special tax bonds therefor, including, but not limited to, legal, special tax consultant, engineering, appraisal, market absorption, financial advisor, administrative and staff costs and expenses, required notifications, printing and publication costs. The City shall refund any unexpended portion of the deposits upon the occurrence of one of the following events: 1. The formation of the community facilities district or the issuance of the special tax bonds; 2. The formation of the community facilities district or the issuance of the special tax bonds is disapproved by the City Council; 3. The proceedings for the formation of the community facilities district and the issuance of the special tax bonds are abandoned at the written request of the applicant; or 4. The City has determined that the special tax bonds will not be issued and sold. Except as otherwise provided herein, the applicant shall be entitled, at the option of the applicant, to reimbursement of, or credit against, special taxes for all amounts deposited with the City to pay for costs incident to the evaluation of the application and the proceedings for the formation of the community facilities district and the issuance of the special tax bonds therefor upon the formation of the community facilities district and the successful issuance and sale of the special tax bonds for the community facilities district. Any such reimbursement shall be payable solely from the proceeds of the special tax bonds. The City shall not accrue or pay interest on any moneys deposited with the City. Selection of Consultants The City shall select and retain all consultants necessary for the evaluation of any application and the proceedings for the formation of a community facilities district and the issuance of the special tax bonds therefor, including, but not limited to, special tax consultant, bond counsel, financial advisor, underwriter, appraiser, and market absorption analyst after consultation with the applicant. 2019-04-09 Agenda Packet Page 79 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 19 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) Land Use Approvals Properties proposed to be included in a Development Related CFD must have received such discretionary land use approvals as may, in the determination of the City Manager, or his or her designee, be necessary to enable the City to adequately evaluate the community facilities district including the properties to be included and the improvements proposed to be financed. The City will issue bonds secured by the levy of special taxes within a Development Related CFD when (i) the properties included within such community facilities district have received those applicable discretionary land use approvals which would permit the development of such properties consistent with the assumptions utilized in the development of the rate and method of apportionment of the special taxes for such community facilities district; (ii) applicable environmental review has been completed; and (iii) the City has determined that the other prerequisites to a bond sale have been satisfied. It is the policy of the City Council in granting approval for development such as zoning, specific plan or subdivision approval to grant such approval as a part of the City’s ongoing planning and land use approval process. In granting such approval, the City reserves such rights as may be permitted by law to modify such approvals in the future as the City Council determines the public health, safety, welfare and interest may require. Such approval when granted is subject to a condition that the construction of any part of the development does not, standing alone, grant any rights to complete the development of the remainder of such development. Construction of public improvements to serve undeveloped land financed through a community facilities district shall not vest any rights to the then existing land use approvals for the property assessed for such improvements or to any particular level, type or intensity of development or use. Applicants for a Development Related CFD must include an express acknowledgment of this policy and shall expressly waive on their behalf and on behalf of their successors and assigns any cause of action at law or in equity including, but not limited to, taking or damaging of property, for reassessment of property or denial of any right protected by USC Section 1983 which might be applicable to the properties to be assessed. Application Procedure for Development Related CFD's Any application for the establishment of a community facilities district shall contain such information and be submitted in such form as the City Manager may require. In addition to such information as the City Manager may require, each application must contain: 2019-04-09 Agenda Packet Page 80 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 20 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) 1. Proof of authorization to submit the application on behalf of the owner of the property for which the application is submitted if the applicant is not the owner of such property. 2. Evidence satisfactory to the City Manager that the applicant represents or has the consent of the owners of not less than 67%, by area, of the property proposed to be subject to the levy of the special tax. 3. For any Development Related CFD proposed to finance improvements to benefit new development, a business plan for the development of the property within the proposed community facilities district and such additional financial information as the City Manager may deem necessary to adequately review the financial feasibility of the community facilities district. For Development Related CFD’s proposed to finance improvements to benefit new development, the applicant must demonstrate to the satisfaction of the City Manager the ability of the owner of the property proposed to be developed to pay the special tax installments for the community facilities district and any other assessments, special taxes and ad valorem taxes on such property until full build out of the property. It is the intention of the City Council that applicants for a community facilities district have an early opportunity to have the application reviewed by City staff for compliance with this policy. In that regard, the City Council hereby directs the City Manager to create a community facilities district application review committee composed of the City Attorney, Director of Public Works, City Engineer, Director of Development Services, and Finance Director,or their designees, and such additional persons as the City Manager may deem necessary. The committee maymeet with the applicant for a community facilities district for the purpose of reviewing an application to form a community facilities district following the determination by the City Manager, or his or her designee, that the information contained in the application for such community facilities district complies with the requirements of this policy. Following the review of such an application, the committee shall prepare and submit a report to the City Manager containing the findings and recommendations of the committee regarding the application. Following review of the committee report, the City Manager shall place the application on the City Council agenda for review. After review of the application and consideration of the committee report, the City Council shall determine whether or not to approve the initiation of proceedings to form the community facilities district. The decision of the City Council pertaining to the application shall be final. The ability of a property owner or developer to obtain financing of public improvements from the proceeds of tax-exempt bonds provides substantial economic benefits to such owner or developer not the least of which may be the financing of such improvements at interest rates substantially lower than 2019-04-09 Agenda Packet Page 81 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 21 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) conventional financing interest rates, if such conventional financing is available, and/or the ability to obtain financing without providing equity compensation to the lender. In providing such financing for a Development Related CFD the City Council believes that the City is providing valuable consideration to the property owner or developer and should be receive consideration in exchange. It is the goal of the City to ensure that the City and the remainder of its residents, property owners and taxpayers are compensated for the consideration provided to the property owner or developer of a Development Related CFD and that such compensation should be one percent (1%) of the total authorized bonded indebtedness for such a community facilities district. Prior to the issuance of special tax bonds for any Development Related CFD, the applicant shall pay to the City the pro rata amount of any compensation payable to the City as consideration for the City's agreement to provide the financing mechanism for the financing of the authorized improvements and eligible incidental expenses and to acquire the authorized improvements pursuant to the terms and conditions of an agreement between the City and the property owner or developer as appropriate. For example, if the compensation payable to the City for such consideration is $100,000 for a Development Related CFD where the total authorized bonded indebtedness is $10,000,000 and the series of special tax bonds to be initially issued is $5,000,000, the compensation payable to the City prior to the issuance of the initial series of bonds will be the principal amount of the initial bond issue ($5,000,000) divided by the total amount of the authorized bonded indebtedness ($10,000,000) multiplied by the total compensation for such Development Related CFD ($100,000). In this example, the compensation payable prior to the issuance of the first series of bonds would be:$5,000,000$10,000,000 × $100,000 = $50,000 Community Facilities Districts for Energy Efficiency, Water Conservation, and Renewable Energy Improvements Introductory Statement Senate Bill No. 555 (Statutes 2011, Chapter 493) amended the Mello-Roos Act to authorize the use of community facilities districts for financing energy efficiency, water conservation, and renewable energy improvements to privately or publicly owned real property and buildings. In particular, Senate Bill No. 555 added section 53328.1 to the Mello-Roos Act, thereby authorizing special taxes to be levied only with the unanimous consent of all owners of property to be taxed by such a district. 2019-04-09 Agenda Packet Page 82 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 22 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) In light of the legislative findings in section 8 of Senate Bill No. 555, the City Council may determine to establish one or more programs through which the City may use section 53328.1 of the Mello-Roos Act and the related provisions added to the Mello-Roos Act by Senate Bill No. 555 to provide special tax financing for improvements and properties that meet the criteria set forth in the hearing report prepared in connection with the establishment of any such program (each a “Program”). The City will administer each Program or contract with a third-party to administer such program (a “Program Administrator”). With respect to financings done through a Program, the goals and policies set forth in this section, as such goals and policies may be amended from time to time, supersede any other goals and policies adopted by the City concerning the use of the Mello-Roos Act. 1. Eligible Improvements. A program may be used to finance or refinance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements on real property and in or on buildings, whether the real property or buildings are privately or publicly owned, subject to the following: A. For privately owned real property and buildings, each owner must consent in advance to the financing, in writing. B. Financing through a Program is not available for the initial construction of privately-owned residential buildings unless that initial construction is undertaken by the intended owner or occupant. The City is not establishing any priorities with respect to the financing of Eligible Improvements. Priority for financing shall be considered on a case by case basis as determined by the City or the applicable Program Administrator in accordance with the hearing report prepared in connection with the related Program, as amended or modified from time to time (each a “Hearing Report”). No services (as defined by Government Code Section 53313) will be financed through any Program. 1. Notice to Prospective Owners. To ensure that prospective purchasers of property subject to a special tax levied through a Program are fully informed about the tax, the related Program Administrator will record a notice of special-tax lien for each participating property as required by the Mello-Roos Actand will provide the seller of each with a disclosure notice that satisfies section 53340.2 of the Mello-Roos Act and California Civil Code section 1102.6b. 2. Financing Limits. For each property. the minimum funding request and maximum amount financed shall be determined in accordance with the Hearing Report. It is not expected that the 2019-04-09 Agenda Packet Page 83 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Statement of Goals and Policies Regarding Establishment of Community Facilities Districts POLICY NUMBER EFFECTIVE DATE PAGE 505-04 23 OF 23 ADOPTED BY: (Resolution No.)DATED: AMENDED BY: Resolution No. (date of resolution) City will issue bonds in connection with any Program. If the City issues bonds in connection with a Program, the City will establish policies concerning the credit quality of such bonds on a case by case basis. 3. Underwriting Requirements for Financings. For each property, the financing of Eligible Improvements on that property must meet the eligibility requirements set forth in the Hearing Report. The Hearing Report may be amended or modified from time to time as specified therein or the City Council may waive or modify any requirement in the Hearing Report on a case by case basis. 4. Maximum Annual Special Tax. The total annual aggregate amount of property taxes and assessments on each property that participates in a Program, including the special tax imposed through such Program may not exceed five percent (5%) of the value of the property. The value of the property will be derived from the assessed value, the appraised value, or an estimate of value based upon data supplied by a reputable real estate information service. If appraisals are used to determine value for any purpose of a Program, the definitions, standards, and assumptions to be used in such appraisals shall be determined on a case by case basis by the City or the related Program Administrator. 5. Administration Costs. The annual special tax for each property that participates in a Program must be in an amount sufficient (i) to finance or refinance the Eligible Improvements for such property and (ii) to pay the property’s pro-rata share of the City’s and the related Program Administrators costs to administer such Program. 6. Minimum Standards; Waiver and Amendment. The policies set forth in this section reflect the minimum standards under which the City will make use of the Mello-Roos Act to finance Eligible Improvements. The City may, in its discretion, require additional measures and procedures, enhanced security and higher standards in particular cases. The City may, in its discretion and to the extent permitted by law, waive any of the policies set forth herein. Such waivers are granted only by action of the City Council. The goals and policies set forth in this section may be amended at any time and from time to time by the City. 2019-04-09 Agenda Packet Page 84 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING CITY COUNCIL POLICY 505-04 (STATEMENT OF GOALS AND POLICIES REGARDING ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICTS) WHEREAS, Chula Vista Municipal Code (CVMC) Section 2.04.010 authorizes the City Council to adopt, by resolution, necessary and desirable policies pursuant to the CVMC, and instructs that such policies shall be maintained in the City Council Policy Manual; and WHEREAS, the Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) provides local jurisdictions an alternative method of financing certain public capital facilities and services, especially in developing areas and areas undergoing rehabilitation; and WHEREAS, as a prerequisite to forming Community Facilities Districts (CFDs) pursuant to the Mello-Roos Act, the local jurisdiction must first consider and adopt local goals and policies concerning use of the Mello-Roos Act; and WHEREAS, on January 13, 1998, the Council adopted the “City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts” (the “Goals and Policies”) via Resolution No. 18860; and WHEREAS, the Goals and Policies were subsequently amended in July 1998, December 1998, and November 2013 via Resolution Nos. 19103, 19300, and 2013-225, respectively; and WHEREAS, Ordinance No. 2730 (the “CFD Ordinance”) allows the City to exercise its Charter powers to establish a CFD pursuant to the CFD Ordinance and the City wishes to make the Goals and Policies applicable to CFDs formed thereunder; and WHEREAS, the City wishes to adopt the existing Goals and Policies as City Council Policy 505-04, with modifications as set forth in Exhibit 1, attached hereto and incorporated herein by this reference as if set forth in full. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby adopts City Council Policy 505-04 (Statement of Goals and Policies Regarding Establishment of Community Facilities Districts) as set forth in Exhibit 1 to this Resolution, attached hereto and incorporated herein by this reference. 2019-04-09 Agenda Packet Page 85 Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2019-04-09 Agenda Packet Page 86 C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@780EE316\@BCL@780EE316.docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTERS 3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTS GENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT WHEREAS, the City of Chula Vista (the “City”) is a municipal corporation and charter city duly organized and existing under a freeholder’s charter pursuant to which the City has the right and power to make and enforce all laws and regulations with respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “Constitution”) and the Charter of the City (the “Charter”); and WHEREAS, the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello- Roos Act”), provides the City with an alternative method of financing certain public capital facilities and services, especially in developing areas and areas undergoing rehabilitation; and WHEREAS, on April 28, 1998, the City Council adopted Ordinance 2730, enacting the City of Chula Vista Community Facilities District Ordinance (the “CFD Ordinance”); and WHEREAS, the CFD Ordinance authorizes community facilities districts to finance habitat maintenance and the monitoring of biological resources and certain maintenance services authorized to be financed through the Landscape and Lighting Act of 1972, but not expressly authorized in the Mello-Roos Act; and WHEREAS, the City Council desires to authorize additional services and facilities to be financed in community facilities districts, including public shuttle operations; promotion of public events and tourism within districts; security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services within districts supplemental to those normally provided by the City; parking improvements; energy efficiency, water conservation, and renewable energy improvements; ecological and sustainability educational improvements; and convention center facilities; and WHEREAS, the City Council also desires to establish a procedure for financing certain public capital facilities and services through the establishment of the Bayfront Project Special Tax Financing District; and WHEREAS, the City Council of the City, acting under and pursuant to the powers reserved to the City under Sections 3, 5, and 7 of the Constitution and the Charter, finds that the public interest and necessity require the enactment of this ordinance to authorize, and establish the authorization and procedure for, the formation of community facilities districts by the City to 2019-04-09 Agenda Packet Page 87 Ordinance Page 2 finance such additional public services and facilities not authorized by the Mello-Roos Act as the City Council may deem necessary. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I.Chapter 3.60 is hereby added to the Chula Vista Municipal Code to read as follows: Chapter 3.60 Community Facilities Districts - General Sections: 3.60.010 Short title. 3.60.020 General intent. 3.60.030 Definitions. 3.60.040 Authority and procedure. 3.60.050 Nonexclusivity. 3.60.060 Amendments to Mello-Roos Act. 3.60.010 Short title. This chapter shall be known as and may be cited as the “City of Chula Vista Community Facilities District Ordinance.” 3.60.020 General intent. The City Council intends to permit the financing of public services and facilities pursuant to the authorization and procedure set forth in this chapter, as well as by any other method permitted by law. This chapter is enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of Article XI of the California Constitution and the City Charter. 3.60.030 Definitions. “Improvements” means improvements, as defined in Streets and Highways Code Section 22525 and pedestrian bridges. “Maintenance” means maintenance, as defined in Streets and Highways Code Section 22531. “Mello-Roos Act” means the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311 of Part 1, Article 2, Title 5 of the California Government Code), as amended from time to time. “Servicing” means servicing, as defined in Streets and Highways Code Section 22538. 2019-04-09 Agenda Packet Page 88 Ordinance Page 3 3.60.040 Authority and procedure. Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this chapter, establish a community facilities district as provided for in the Mello-Roos Act, as modified herein. Except as otherwise provided in this chapter, the provisions of the Mello-Roos Act, now in effect or as such act may be amended from time to time, are hereby incorporated in this chapter by this reference and made a part hereof. 3.60.050 Nonexclusivity. The provisions of this chapter are not exclusive. The power and authority conferred upon the City Council by the provisions of this chapter are in addition to and supplemental to the powers conferred by the Charter, any other ordinance of the City, or law. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Mello-Roos Act; provided, however, that whenever the City is acting pursuant to this chapter the provisions of this chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law, including the Mello-Roos Act. 3.60.060 Amendments to Mello-Roos Act. A. The services authorized to be financed pursuant to Government Code Section 53313 are hereby amended to add and include: 1. The maintenance, operation and management of public property in which the City of Chula Vista has a property interest in or private property that is required to be dedicated or maintained as open space or for habitat preservation or both. Such property may be located outside the boundaries of the applicable community facilities district and outside the jurisdictional boundaries of the City. Such maintenance, operation and management shall mean the furnishing of services and materials for the ordinary and usual maintenance, operation and management of any open space or habitat area as may be required by the City or other public agency charged with the responsibility to maintain, operate, or manage any such area. Such services may include but shall not be limited to the following: a. Repair, removal or replacement of any improvement, structure or facility necessary or convenient to the maintenance, operation or management of the open space or habitat area; and b. Providing for the life, growth, health, and beauty of habitat, including the cultivation, irrigation, trimming, spraying, fertilizing, or treating of disease or injury; and c. The removal of trimmings, rubbish, debris, and other solid waste; and 2019-04-09 Agenda Packet Page 89 Ordinance Page 4 d. The operation and management of open space and natural habitat, including biological monitoring and evaluation of collected data; and e. The conduct of biological activities necessary to sustain the species being protected; and f. The operation and maintenance of pedestrian bridges and community gardens within or appurtenant to such open space or habitat area(s). 2. The Maintenance and/or Servicing of Improvements. 3. Public shuttle operations. 4. Promotion of public events and tourism; provided, however, the special tax financing any such promotion shall not be apportioned in any tax year on any property in residential use in such tax year, as determined by the City Council, in its capacity as the legislative body of the community facilities district authorized to finance such promotion. 5. Security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the City. 6. Life-cycle replacement costs for maintained and/or operated facilities. B. The facilities authorized to be financed pursuant to Government Code Section 53313 are hereby amended to add and include: 1. Parking improvements. 2. Energy efficiency, water conservation, and renewable energy improvements. 3. Ecological and sustainability educational improvements. C. Any community facilities district established for one or more of the purposes authorized in Government Code Section 53313 or in section A above may establish maintenance or service zones or areas within such district to facilitate the provision and administration of such services. D. At the time a community facilities district is formed to provide any of the services authorized pursuant to section A above or territory is annexed to an existing community facilities district which was formed to provide any of the services authorized pursuant to section A above, the owner or developer of the property within such newly formed community facilities district or the territory annexed to an existing community facilities district shall be responsible for providing such 2019-04-09 Agenda Packet Page 90 Ordinance Page 5 services or causing such services to be provided for a minimum period of one year from the date of formation of such community facilities district or the date of annexation of such territory to an existing community facilities district, respectively, or if required by the City Manager, until such later time as the open space or habitat area and/or the improvements which are to be financed from special taxes to be levied within such newly formed community facilities district or such territory annexed to an existing community facilities district are accepted by the City Manager or his or her designee. E. For each community facilities district formed to provide any of the maintenance and services authorized pursuant to section A above, there shall be established and maintained an annual operating reserve fund in an amount not to exceed one hundred percent (100%) of the annual maintenance, operations and management budget for each such community facilities district for any fiscal year. The rate and method of apportionment of the special tax for any such community facilities district shall provide that the special tax may be levied on all taxable property within the community facilities district prior to the acceptance by the City or other public entity for operation, maintenance and management of the open space or habitat areas and/or improvements to be operated, maintained and managed from the proceeds of the special taxes in order to initially fund the operating reserve fund at an amount equal to one hundred percent (100%) of the estimated annual maintenance, operations and management budget for the first fiscal year following acceptance of such areas or improvements. If the areas and/or improvements are to be accepted incrementally, the operating reserve fund shall be initially funded incrementally in an amount equal to one hundred percent (100%) of the estimated annual maintenance, operations and management budget for the first fiscal year following acceptance of such increment of the areas and/or improvements. A precondition to the acceptance of any open space or habitat area and/or improvements by the City or another public entity for operation, maintenance and management shall be that the operating reserve fund for such area or improvements must have been funded at an amount equal to one hundred percent (100%) of the annual budget for the operation, maintenance, and management of such area and/or improvements for the fiscal year following the acceptance thereof (the “Reserve Fund Requirement”). The rate and method of apportionment of the special tax shall further provide that following acceptance of the areas and/or improvements, or any increment thereof, the proceeds of the annual special tax levy may be used to replenish the operating reserve fund to the Reserve Fund Requirement provided that the annual special tax levy shall not exceed the authorized maximum special tax for such fiscal year. Such operating reserve shall be maintained for and may be used to provide necessary operating revenue for the first six (6) months of each fiscal year. 2019-04-09 Agenda Packet Page 91 Ordinance Page 6 Section II.Chapter 3.61 is hereby added to the Chula Vista Municipal Code to read as follows: Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance Sections: 3.61.010 Short title. 3.61.020 Purpose and intent. 3.61.030 Definitions. 3.61.040 Special tax proceedings. 3.61.050 Nonexclusivity. 3.61.060 Construction. 3.61.070 Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of the California Streets and Highways Code. 3.61.080 Authorized expenditures. 3.61.090 Hearing – Continuances. 3.61.100 Election; Voter qualifications; Ballots. 3.61.110 Notice of special tax lien. 3.61.120 Application of special tax. 3.61.130 Special tax collected with transient occupancy tax. 3.61.140 Optional collection of delinquent special taxes on secured property tax roll. 3.61.150 Compliance with this Chapter. 3.61.010 Short title. This chapter shall be known as and may be cited as the “Bayfront Project Special Tax Financing District Procedural Ordinance.” 3.61.020 Purpose and intent. The purpose of this Chapter is to establish a procedure for financing certain public and private improvements and maintenance and services to serve the Chula Vista Bayfront Project through the establishment of a Bayfront Project Special Tax Financing District, the levy and collection of special taxes within such district and the issuance of bonds secured by such special taxes for the purpose of financing convention center facilities and certain other public improvements. The City Council intends to permit the financing of public services and public and private improvements pursuant to the authorization and procedure set forth in this Chapter, as well as by any other method permitted by law. This Chapter is enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of Article XI of the California Constitution and the City Charter. 2019-04-09 Agenda Packet Page 92 Ordinance Page 7 3.61.030 Definitions. Terms defined in the Mello-Roos Act but not defined in this Chapter shall have the meaning given such terms in the Mello-Roos Act. For purposes of this Chapter the following definitions shall apply and to the extent the same term is defined in the Mello- Roos Act the following definition shall apply to such term: “Campsite” shall have the meaning given such term in CVMC 3.40.020. “Chapter” shall, when referred to in the Mello-Roos Act or herein, mean this Chapter 3.61 of the CVMC. “Community facilities district” shall, when used in the Mello-Roos Act or herein, mean the District. “Convention Center Facility” means any building, improvement to real property, equipment or personal property (in each case having an expected useful life of five years or longer) that comprises any portion of a convention center or conference center, and the construction, acquisition, rehabilitation, replacement or upgrade thereto, whether publicly or privately owned. “District” shall mean the Bayfront Project Special Tax Financing District established pursuant to this Chapter. “Hotel” shall have the meaning given such term in CVMC 3.40.020. “Landowner” shall, for the purposes of this Chapter, have the meaning given such term in Section 53317(f) of the Mello-Roos Act; provided, however, the City of Chula Vista shall be the Landowner of all land within the District owned by the City in its capacity as a charter city or as the successor agency to the Redevelopment Agency of the City of Chula Vista and the Port District shall be the Landowner of all land within the District owned by such district. “Mello-Roos Act” shall have the meaning given such term in CVMC 3.60.030. “Occupancy” shall have the meaning given such term in CVMC 3.40.020. “Operator” shall have the meaning given such term in CVMC 3.40.020. “Port District” shall mean the San Diego Unified Port District. “Rent” shall have the meaning given such term in CVMC 3.40.020. “RIDA” means RIDA CHULA VISTA, LLC, a Delaware limited liability company, and any successor or assign thereto. 2019-04-09 Agenda Packet Page 93 Ordinance Page 8 “Resort Hotel” shall mean the Hotel as such term is defined in the Disposition and Development Agreement entered into as of May 7, 2018 by and among the Port District, the City and RIDA, as such agreement may be amended from time to time. “Services” shall include those services specified in CVMC 3.60.060. “Transient” shall have the meaning given such term in CVMC 3.40.020. 3.61.040 Special tax proceedings. Proceedings for the formation of a Bayfront Project Special Tax Financing District for the purposes set forth in section 3.61.020 may be conducted pursuant to this Chapter whether or not provided by state law. 3.61.050 Nonexclusivity. This Chapter is not, in any way, exclusive. The power and authority conferred upon the City Council by the provisions of this Chapter are in addition to and supplemental to the powers conferred by the Charter, any other ordinance of the City, or law, including the Mello-Roos Act. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Mello-Roos Act; provided, however, that whenever the City is acting pursuant to this Chapter the provisions of this Chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law, including the Mello-Roos Act. 3.61.060 Construction. This Chapter is to be liberally construed. 3.61.070 Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of the California Streets and Highways Code. A. Except as otherwise provided in this Chapter, the Mello-Roos Act and those sections of the California Streets and Highways Code and any amendments thereto, referred to in the Mello-Roos Act, are incorporated in and made a part of this Chapter. B. Except as otherwise provided by this Chapter, the mode and manner for making improvements, for levying and collecting special taxes and for issuing bonds shall be as prescribed in the Mello-Roos Act. In any conflict between the provisions of the Mello-Roos Act or the referenced portions of the California Streets and Highways Code, the provisions of this Chapter shall prevail. C. The provisions of Sections 53312.7, 53312.8, 53313.6, 53313.7, 53313.9, 53317(b), 53319(d), 53321(b) and (f), 53325.6 (and the reference to 53325.6 contained in Section 53331), 53329, 53329.5, 53340(d) and (f)(C), 53340.1(b), 53345.8, 55352, 53362.5, and 53365 of the Mello-Roos Act are not incorporated 2019-04-09 Agenda Packet Page 94 Ordinance Page 9 into this Chapter and shall have no application to proceedings conducted pursuant to this Chapter. D. The provisions of Section 53313.51 of the Mello-Roos Act notwithstanding, whenever the City is a party to construction contracts, the City may use normal public works contracting procedures even if they do not involve or require the identification of “discrete portions or phases” of the facilities to be constructed. E. For purposes of this Chapter, clause (n) of Section 53313.5 of the Mello-Roos Act is amended to read as follows: “(n) In addition to any other facilities that may be financed pursuant to Section 53313.5, the District may finance the acquisition, construction, reconstruction, replacement, rehabilitation, expansion, upgrade and maintenance of any Convention Center Facility as defined in CVMC 3.61.030.” F. For purposes of this Chapter, the provisions of Section 53314.3 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): “In the first fiscal year in which a special tax or charge is levied for any facility or for any services in a community facilities district or a zone within a community facilities district, the legislative body shall include in the levy a sum sufficient to repay to the legislative body the amounts transferred to that district or zone pursuant to Section 53314. The amounts borrowed, with interest, shall be retransferred to the proper fund or funds from the first available receipts from the special levy in that district or zone. Notwithstanding the above provisions, the legislative body may, by a resolution adopted no later than the time of the first levy, extend the repayment of the transferred funds over a period of time not to exceed three consecutive years, in which event the levy and each subsequent levy shall include a sum sufficient to repay the amount specified by the legislative body for the year of the levy.” G. For purposes of this Chapter, the provisions of Section 53314.5 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): “Pursuant to a resolution adopted by the legislative body, the legislative body may appropriate any of its available moneys to a revolving fund to be used for the acquisition of real or personal property, engineering services, or the construction of structures or improvements needed in whole or in part to provide one or more of the facilities of a community facilities district. The revolving fund shall be reimbursed from tax revenues or other moneys available from the facilities district, and no sums shall be disbursed from the fund until the legislative body has, by resolution, established the method by, and term not exceeding five years within, which the community facilities district is to reimburse the funds. The district shall reimburse the fund for any amount disbursed to the area within five years after such disbursement, together with interest as the current rate per annum 2019-04-09 Agenda Packet Page 95 Ordinance Page 10 received on similar types of investments by the legislative body as determined by the local agency’s treasurer.” H. For purposes of this Chapter, the provisions of Section 53314.6 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): "(a) In connection with the financing of services and facilities pursuant to subdivision (f) of Section 53313 and subdivision (k) of Section 53313.5, the legislative body may establish a revolving fund to be kept in the treasury of the district. Except as provided in subdivision (b), moneys in the revolving fund shall be expended solely for the payment of costs with respect to those services and facilities. The revolving fund may be funded from time to time with moneys derived from the following: (1) Proceeds from the sale of bonds issued pursuant to Article 5 (commencing with Section 53345), notwithstanding any limitation contained in Section 53345.3. (2) Any taxes or charges authorized under this Chapter. (3) Any other lawful source. (b) Subject to the provisions of any resolution, trust agreement or indenture providing for the issuance of district bonds for the purposes set forth in subdivision (k) of Section 53313.5, the legislative body may withdraw money from the revolving fund whenever and to the extent that it finds that the amount of money therein exceeds the amount necessary to accomplish the purposes for which the fund was established. Any moneys withdrawn from the revolving fund shall be used to redeem bonds of the district issued for the purposes set forth in subdivision (k) of Section 53313.5 or shall be paid to taxpayers in the district in amounts that the legislative body determines.” I. For purposes of this Chapter, the provisions of Section 53314.9 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): "(a) Notwithstanding Section 53313.5, at any time either before or after the formation of the district, the legislative body may accept advances of funds or work in-kind from any source, including, but not limited to, private person or private entities and may provide, by resolution, for the use of those funds or that work in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a district. The legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds or work in- kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work in- 2019-04-09 Agenda Packet Page 96 Ordinance Page 11 kind, as determined by the legislative body, with or without interest, under the following conditions: (1) The proposal to repay the funds or the value of cost of the work in- kind, whichever is less, is included both in the resolution of intention to establish a district adopted pursuant to Section 53321 and in the resolution of formation to establish the district adopted pursuant to Section 53325.1, or in the resolution of consideration to alter the types of public facilities and services provided within an established districted adopted pursuant to Section 53334. (2) Any proposed special tax or change in a special tax is approved by the qualified electors of the district pursuant to this chapter. Any agreement shall specify that if the qualified electors of the district do not approve the proposed special tax or change in a special tax, the local agency shall return any funds which have not been committed for any authorized purposes by the time of the election to the person or entity advancing the funds. (3) (1) Any work in-kind accepted pursuant to this section shall have been performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the local agency. (b) The agreement shall not constitute a debt or liability of the local agency.” J. For purposes of this Chapter, the provisions of clause (a) of Section 53321 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike- through text): "(a) State that a community facilities district is proposed to be established under the terms of this chapter and describe the boundaries of the territory proposed for inclusion in the district, which may be accomplished by reference to a map on file in the office of the clerk, showing the proposed community facilities district. The boundaries of the territory proposed for inclusion in the district shall include the entirety of any parcel subject to taxation by the proposed district.” K. For purposes of this Chapter, the provisions of Section 53324 of the Mello-Roos Act are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): "(a) If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the district, or the owners of one-half or more of the area of the land in the territory proposed to be included in the district and not exempt from the special tax, file written protests against the establishment of the district, and protests are not withdrawn so as to reduce the value of the protests to 2019-04-09 Agenda Packet Page 97 Ordinance Page 12 less than a majority, such no further proceedings to create the specified community facilities district or to authorize the specified special tax shall be abandoned taken for a period of one year from the date of the decision of the legislative body. Notwithstanding the abandonment of the proceedings to create such specified community facilities district or to authorize such special tax pursuant to this Section 53324(a), new proceedings to create such specified community facilities district or to authorize such special tax may be initiated at any time thereafter. If the majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of facilities or services within the district, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of formation. Notwithstanding the elimination of such types of facilities or services or such specified special tax from the resolution of formation, new proceedings to authorize the furnishing of such types of facilities or services within the district or to authorize the levy of such specified special tax may be initiated pursuant to Article 3 of the Mello-Roos Act, as amended by this Chapter 3.61, at any time thereafter. (b) This section does not apply to the formation of a district pursuant to Section 53328.1.” L. For purposes of this Chapter, the provisions of Section 53337 of the Mello-Roos Act are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): “If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against changing the public facilities or services financed by the district, those changes in the facilities or services shall be eliminated from the resolution ordering changes in the types of public facilities or services to be financed and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing. Notwithstanding the elimination of such changes in the public facilities and services from the resolution ordering changes in the types of public facilities and services to be financed, new proceedings to consider ordering such changes in the types of public facilities and services may be initiated at any time thereafter. If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against the levying of any additional special taxes within the district, or against a proposed alteration to an existing special tax within the district, those changes shall be eliminated from the resolution and the changes 2019-04-09 Agenda Packet Page 98 Ordinance Page 13 shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing. Notwithstanding the elimination of such changes from the resolution, new proceedings to consider the levying of such additional special taxes or such alteration to such existing special tax may be initiated at any time thereafter.” M. For purposes of this Chapter, the provisi ons of Section 53339.6 of the Mello-Roos Act are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): “If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the existing community facilities district, or if 50 percent or more of the registered voters or six registered voters, whichever is more, residing within the territory proposed for annexation or proposed to be annexed in the future, or if the owners of one-half or more of the area of land in the territory included in the existing district and not exempt from special tax, or if the owners of one-half or more of the area of land in the territory proposed to be annexed or proposed to be annexed in the future and not exempt from the special tax, file written protests against the proposed annexation of territory to the existing community facilities district or the proposed addition of territory to the existing community facilities district in the future, and protests are not withdrawn so as to reduce the protests to less than a majority, the no further proceedings to annex the same territory, or to authorize the same territory to be annexed in the future, shall be abandoned undertaken for a period of one year from the date of decision of the legislative body on the issues discussed at the hearing.” N. For purposes of this Chapter, the provisions of Section 53345.3 are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): “The amount of the proposed bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; lease payments for school facilities, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued pursuant to this chapter; architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within two years such period of time of issuance of the bonds as shall be established by the City Council; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. Bonds may not be issued pursuant to this chapter to fund any of the services specified in Section 53313; however, bonds may be issued to fund capital facilities to be used in providing these services.” 2019-04-09 Agenda Packet Page 99 Ordinance Page 14 O. For purposes of this Chapter, the provisions of Section 53359.5(b)(13) of the Mello-Roos Act shall apply only to special taxes levied on the property tax rolls pursuant to CVMC 3.61.150. For all other special taxes, instead of the information required by Section 53359.5(b)(13), the City shall include in the report the same information with respect to the special taxes that it normally collects and reports regarding the City’s transient occupancy taxes. 3.61.080 Authorized expenditures. A. Revenues from any special tax imposed under this Chapter may be spent on the following: debt service; lease payments; cost of issuance of securities issued for the purpose of financing or refinancing the Convention Center Facility and any other facilities authorized to be financed by the District; replenishment or funding of reserve funds established in connection with the issuance of debt (as defined in the Mello-Roos Act), administrative costs of the District; prepayment of such securities; direct costs of acquisition, planning, engineering, design, site preparation, and construction of the Convention Center Facility and any other facilities authorized to be financed by the District; ongoing capital repairs and maintenance of the Convention Center Facility and any other facilities authorized to be financed by the District; the costs of providing services and maintenance as authorized by the District and all incidental and administrative costs authorized by the Mello-Roos Act or the District. Revenues from any such special tax received by the District in any fiscal year may, to the extent necessary, be accumulated and applied to the payment of authorized expenditures incurred in a future fiscal year. 3.61.090 Hearing – Continuances. All hearings called for under the Mello-Roos Act shall be required by this Chapter, except that they may be continued from time to time without further notice, but shall be completed within two years of the original hearing date. For purposes of this Chapter, the mailing of notices as provided in Sections 53322.4 and 53346 and any other similar provisions of the Mello-Roos Act shall be made to the Landowners of properties that would not be exempt from the special tax if the proposed special tax were being currently levied as proposed in the resolution of intention. 3.61.100 Election; Voter qualifications; Ballots. All election procedures set forth in the Mello-Roos Act shall apply to this Chapter, with the following exceptions: A. The qualified electors shall in all cases be the Landowners. B. The City Clerk shall in all cases be the election official. C. The Landowner-voters shall be those meeting the definition of Landowner as defined in CVMC 3.61.030 as of the close of the public hearing pertaining to the establishment of the District unless the City Clerk is informed, by reliable 2019-04-09 Agenda Packet Page 100 Ordinance Page 15 evidence, of a change in ownership after that time and prior to the election. In that event, the City Clerk shall, at the request of the new Landowner submitted with such evidence no later than 24 hours before the deadline for returning ballots, prepare a new ballot and deliver it to the new Landowner. The City Clerk shall also, in that event, accept and include in the canvass of the election the ballot submitted by the new Landowner rather than the ballot prepared for the former Landowner. D. Since the Landowner-voters are entitled to a secret ballot, and since ballots are required to contain the names of each Landowner and the number of votes each Landowner is entitled to cast, the City Clerk shall protect the confidentiality of the ballots. No person, other than those among the staff and consultants of the City who require access for the purposes of counting and canvassing the ballots, may have access to the ballots at any time, unless by order of a court of competent jurisdiction. 3.61.110 Notice of special tax lien. A. For purposes of this Chapter, and to conform the language of the form of the notice of special tax lien contained in Section 3114.5 of the California Streets and Highways Code, the County Recorder shall index the notice of liens in the names of the property owners within the District whose properties are not exempt from the special tax. B. Whenever a parcel of property in the District begins to be used as a Hotel or a Campsite, either for the first time or for a period of time when it was not so used, that property shall thereupon become subject to the special tax. The City Clerk shall prepare an amended notice of special tax lien, or an amendment to the notice of special tax lien, that applies to and describes the new Hotel or Campsite property, as applicable, in accordance with the California Streets and Highways Code. The City Clerk shall arrange for recording of the document with the county recorder as provided in the California Streets and Highways Code. 3.61.120 Application of special tax. A. Any special tax imposed pursuant to this Chapter shall be levied, in any year, only on property located within the District, other than the Resort Hotel property, for the use of such property during such year as a Hotel or Campsite (or, as the case may be, levied on the leasehold or other possessory interest in a parcel which is owned by a public agency and being used as a Hotel or Campsite). B. Any special tax imposed on the Resort Hotel property pursuant to this Chapter shall be levied as provided for in the rate and method of apportionment of such special tax as applied to such property. 2019-04-09 Agenda Packet Page 101 Ordinance Page 16 3.61.130 Special tax collected with transient occupancy tax. A. All special taxes imposed pursuant to this Chapter, other than the special tax imposed on the Resort Hotel property, shall be due and remitted with the Operator’s payment of the transient occupancy taxes as set forth in chapter 3.40 of the CVMC. In the event that the Landowner is not the Operator, the Landowner shall cause the Operator to remit the special taxes imposed pursuant to this Chapter with the Operator’s payment of the transient occupancy tax. Unlike chapter 3.40, however, the special tax is not imposed on the Transient but is imposed on the real property containing the Hotel or Campsite or, as the case may be, on the leasehold or other possessory interest containing the Hotel or Campsite if the parcel or parcels containing the Hotel or Campsite are owned by a public agency. The Operator may, but is not required to, add the special tax to, and collect it with, the Rent. Subject to and as modified by the foregoing, the provisions of sections 3.40.040, 3.40.050, 3.40.070, 3.40.080, 3.40.090, 3.40.100, 3.40.110, 3.40.120, and 3.40.130 shall apply to any special tax levied pursuant to this Chapter. Despite the method of collection and administration, the special tax is distinct from the City’s transient occupancy tax and may be enforced, in the event of nonpayment, as provided in the Mello-Roos Act, including through a judicial foreclosure. B. Any special tax imposed on the Resort Hotel property pursuant to this Chapter, shall be due and remitted as provided for in the rate and method of apportionment of such special tax as applied to such property. 3.61.140 Optional collection of delinquent special taxes on secured property tax roll. Any special taxes delinquent as of July 1 of any fiscal year, together with any penalties and interest accrued as of that date, may, at the option of the City Council, be placed on the secured property tax roll in that fiscal year and be levied on the parcel for which such special taxes are delinquent, where it shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. 3.61.150 Compliance with this Chapter. Any proceedings taken, special tax levied or bonds issued pursuant to this Chapter shall not be held invalid for failure to comply with the provisions of this Chapter provided such failure is not a constitutional defect. 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 2019-04-09 Agenda Packet Page 102 Ordinance Page 17 unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section IV. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section V. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VI. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2019-04-09 Agenda Packet Page 103 P a g e | 1 April 9, 2019 File ID: 19-0173 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT FOR ADMINISTRATION OF TAXICAB AND OTHER FOR-HIRE REGULATIONS BETWEEN THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM AND THE CITY OF CHULA VISTA RECOMMENDED ACTION Council adopt the resolution. SUMMARY On September 11, 2018, City Council approved an agreement with San Diego Metropolitan Transit System (MTS)to regulate taxicabs and other for-hire vehicles, which would provide a high level of regulatory service to a greater number of for-hire vehicles, to the benefit of public safety. This agreement ends on June 30, 2019, and the Police Department is recommending to approve an agreement amendment to extend to June 30, 2024. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the “Project” qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION AB 1069 changed taxi regulation in California. The bill was supported by the taxi industry to make taxis more competitive with Uber and Lyft by reducing operating costs. The bill replaced longstanding city-by- city regulation, requiring multiple permits and fees, with regional regulation and a single permit and fee. Enacted in 2017, the bill imposes requirements on cities that are effective on January 1, 2019. One, in order to require a business license, the taxi company must be substantially located in the city. Substantially 2019-04-09 Agenda Packet Page 104 P a g e | 2 located means the taxi company has a primary business address in the city, or the largest share of the taxi’s originating trips are in the city, as demonstrated by a taxicab operator. Two, a city must create a Joint Powers Agreement with other government entities, or enter into an agreement with a transit agency, for the purpose of regulating taxicab companies and taxicab drivers. Three, regardless of where a taxi is substantially located or the type of regional regulation adopted, cities may impose certain regulations on taxis, including: a) limiting the number of taxicab providers that may use taxi stand areas or pick up street hails; b) requiring taxicab service providers to provide services in a manner that ensures equal access for all populations in the city; and c) enacting other public health, safety or welfare ordinances relating to taxicabs. On September 11, 2018, City Council approved an agreement with San Diego Metropolitan Transit System (MTS) to regulate taxicabs and other for-hire vehicles, which would provide a high level of regulatory service to a greater number of for-hire vehicles, to the benefit of public safety. This agreement ends on June 30, 2019, and the Police Department is recommending to approve an agreement amendment to extend to June 30, 2024. MTS is a transit agency that has been providing transit services in the region since 1976 (originally named the Metropolitan Transit Development Board), including bus and trolley services in Chula Vista. MTS has a dedicated Taxicab Administration unit and a robust inspection program to protect the public safety. Responsibilities include determining owner eligibility; inspecting vehicles; issuing permits; monitoring compliance with administrative and operational regulations; and investigating passenger complaints. In addition to regulating taxis, the Taxicab Administration unit regulates other for-hire transportation services, such as jitneys (shuttles following a fixed route), charter, sightseeing, low-speed and non- emergency medical vehicles. MTS provides regulatory services by contract for these vehicles in most cities in its service area, including El Cajon, Imperial Beach, National City, La Mesa, Lemon Grove, Poway, Santee and San Diego. Only Coronado administers their own taxicab regulations. If Council approves the agreement amendment, then MTS will go to the MTS board for consideration. If approved by the MTS board, the agreement would extend to June 30, 2024. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create 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. CURRENT-YEAR FISCAL IMPACT As part of the annual business license renewal process, the City will continue to collect business licenses from the taxicab businesses, which is $5,400 annually. Approving the agreement amendment with MTS for taxicab administration will result in no current-year fiscal impact. 2019-04-09 Agenda Packet Page 105 P a g e | 3 ONGOING FISCAL IMPACT Approving the agreement amendment with MTS for taxicab administration will have no ongoing fiscal impact. ATTACHMENTS ATTACHMENT 1: First Amendment to Agreement with San Diego Metropolitan Transit System for Administration of Taxicab and Other For-Hire Vehicle Regulations ATTACHMENT 2: Agreement with San Diego Metropolitan Transit System for Administration of Taxicab and Other For-Hire Vehicle Regulations Staff Contact: Captain Vern Sallee, Police Department 2019-04-09 Agenda Packet Page 106 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT FOR ADMINISTRATION OF TAXICAB AND OTHER FOR-HIRE REGULATIONS BETWEEN THE SAN DIEGO METROPOLITAN TRANSIT SYSTEM AND THE CITY OF CHULA VISTA WHEREAS, Assembly Bill No. 1069, signed into law by California’s governor in 2017 and effective on January 1, 2019, requires cities to either create a Joint Powers Authority or enter into an agreement with a transit agency, such as the San Diego Metropolitan Transit System (MTS), to regulate taxicab companies and taxicab drivers; and WHEREAS, as authorized by California Public Utilities Code Section 12066, the MTS for years has contracted with most cities in its service area, such as National City, Imperial Beach, San Diego, Lemon Grove, El Cajon, Santee and Poway, to provide full-service regulation of taxicabs and other for-hire transportation services; and WHEREAS, on September 11, 2018, City Council approved an agreement with San Diego Metropolitan Transit System to regulate taxicabs and other for-hire vehicles; and WHEREAS, the current agreement with MTS ends on June 30, 2019, and the Police Department recommends to approve an amendment to extend taxicab administration to June 30, 2024; and WHEREAS, AB 1069 reserved rights of cities to regulate taxi stands in their jurisdictions and to require taxicab companies that are substantially located in Chula Vista, as defined by AB 1069, to obtain a business license. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the First Amendment to the Agreement for Administration of Taxicab and Other For-Hire Vehicle Regulations between the San Diego Metropolitan Transit System and the City of Chula Vista, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk,and authorizes and directs the Mayor to execute same. Presented by Roxana Kennedy Chief of Police Approved as to form by Glen R. Googins City Attorney 2019-04-09 Agenda Packet Page 107 2019-04-09 Agenda Packet Page 108 MTS Doc No. G21220.1-18 FIRST AMENDMENT TO AGREEMENT FOR ADMINISTRATION OF TAXICAB AND OTHER FOR-HIRE VEHICLE REGULATIONS BETWEEN SAN DIEGO METROPOLITAN TRANSIT SYSTEM AND CITY OF CHULA VISTA THIS AGREEMENT is entered into by and between the City of Chula Vista, a municipal corporation, 276 4th Avenue, Chula Vista, CA (herein called “CITY”), and the San Diego Metropolitan Transit System, a public agency, 1255 Imperial Avenue, Suite 1000, San Diego, CA (herein called “MTS”), in view of the following recitals, which are a substantive part of this Agreement: RECITALS A. MTS is authorized under Section 120266, Chapter 2, Division 11 of the California Public Utilities Code (PUC), to enter into contracts to regulate transportation services within a city in its area of jurisdiction and the County of San Diego; B. CITY is within MTS’s jurisdiction created January 1, 1976, under Section 120050, et seq., Chapter 2, Division 11 of the PUC; C. CITY regulated taxicab and other for-hire vehicles in accordance with the Chula Vista City Municipal Code, Chapter 5.54.010; D. CITY desires that MTS regulate taxicabs and other for-hire vehicles and services such as charter vehicles, sight-seeing vehicles, nonemergency medical vehicles, and jitney vehicles pursuant to PUC Section 120266 and in accordance with MTS Ordinance No. 11, “An Ordinance Providing for the Licensing and Regulating of Transportation Services Within the City and County”; E. CITY and MTS entered into an agreement for the period of November 1, 2018 through June 30, 2019; and F. CITY and MTS now desire to enter into an agreement to extend the period from July 1, 2019 through June 30, 2024. NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement, CITY and MTS agree as follows: 1. MTS will administer and enforce its taxicab and other for-hire vehicles Ordinance policies and regulations as in effect on July 1, 2019, and as thereafter from time to time amended by MTS, and thereby regulate such taxicab and other for-hire vehicles and transportation services rendered wholly within the CITY’s corporate limits during the period of July 1, 2019 through June 30, 2024, pursuant to PUC Section 120266 and in accordance with MTS Ordinance No. 11. 2. MTS will collect and administer all such regulatory fees, fines, and forfeitures as now or hereafter provided by the MTS Taxicab and Other For-Hire Vehicles Ordinance No. 11 policies, and regulations. 3. The CITY Manager and MTS Chief Executive Officer may supplement this 2019-04-09 Agenda Packet Page 109 MTS Doc No. G21220.1-18 agreement by executing a Memorandum of Understanding relative to administrative and operating procedures of taxicab and other for-hire vehicles regulation and to provide for reimbursable staff and legal support services. 4. This Agreement shall be effective upon execution by the City and MTS and shall continue until written notice of termination. This Agreement may be terminated at any time by either party upon 180 days’ written notice to the other party. IN WITNESS THEREOF, this first amendment to the agreement is executed by the CITY acting by and through its Mayor pursuant to Council Resolution No. , and by MTS acting through its Chief Executive Officer. Dated this 1st day of July, 2019. CITY OF CHULA VISTA SAN DIEGO METROPOLITAN TRANSIT SYSTEM Mary Casillas Salas Paul C. Jablonski Mayor Chief Executive Officer WE HEREBY APPROVE the form of the foregoing Agreement. Glenn Googins Office of the General Counsel City Attorney Date: Date: Attest: -2- 2019-04-09 Agenda Packet Page 110 2019-04-09 Agenda Packet Page 111 2019-04-09 Agenda Packet Page 112 P a g e | 1 April 9, 2019 File ID: 19-0174 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING UPDATED DESIGN STANDARDS FOR SMALL WIRELESS FACILITIES WITHIN THE CITY’S RIGHT-OF-WAY AND DELEGATING AUTHORITY TO APPROVE FUTURE DESIGN STANDARDS TO THE CITY MANAGER OR DESIGNEE RECOMMENDED ACTION Council adopt the resolution. SUMMARY Increased usage of cellular data functions has subsequently increased the demand for greater capacity on cellular networks, thus requiring new wireless facilities. To provide higher bandwidth signals and extend coverage for more users, the next phase of cellular technology, 5G, will use a small wireless facility or small cell concept. These small cell deployments are significantly smaller than the previously built macro cell sites and have a more limited range by serving only users within the immediate proximity. As a result, the telecommunications industry is planning for a far greater density of small cell sites. Wireless service providers are proposing to install small cell equipment in outdoor applications on City-owned poles and City-owned street lights located in City Right-of-Way to provide faster data coverage and capacity for mobile phones and other cellular devices. To facilitate the installation of this technology and maintain acceptable aesthetics of the City’s streetscape, City staff is proposing the provisions within the attached resolution as follow up to Resolution No. 2019-003 to regulate the design standards for small cell sites. Per a recent Federal Communications Commission (FCC) ruling, aesthetic regulations imposed by a municipality are permissible providing that they are reasonable, no more burdensome than those applied to other types of infrastructure deployments, and are published in advance. 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 is not a “Project” as defined under Section 15378 of the state CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Although environmental review is not required at this time, once the scope of potential project(s) has been defined, environmental review will be required for each project and the appropriate environmental determination will be made. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. 2019-04-09 Agenda Packet Page 113 P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Wireless telecommunications facilities are regulated by federal, state, and local laws. Over the last few decades, legislation at the federal and state levels have been proposed and implemented to strip municipalities of their local zoning and permitting authority regarding the regulation of telecommunications facilities. A brief overview of the most notable acts and their implications is provided below. Telecommunications Act Federal law significantly limits the city’s ability to regulate telecommunication facilities. Under the Telecommunications Act of 1996, a city cannot prohibit the provision of wireless service or unreasonably discriminate among wireless service providers. Also, under federal law, the city may not regulate the placement, construction or modification of wireless communications facilities on the basis of radio frequency emissions, so long as the facilities comply with the FCC regulations concerning such emissions. Despite federal limitations, cities historically have retained the ability to regulate the aesthetic of wireless facilities, including factors such as height and property line setbacks. However, federal law developments continue to erode that ability thereby reducing local control. The Spectrum Act In 2012, Congress enacted the Middle Class Tax Relief and Job Creation Act (The Spectrum Act of 2012). The Spectrum Act was intended to facilitate the telecommunication industry’s rapid deployment of 3G and 4G wireless infrastructure by requiring local governments to approve any application that sought to modify an existing wireless telecommunication facility that does not “substantially change” the existing facility. The Spectrum Act itself contains no specific definitions, but in 2015, the FCC promulgated regulations containing definitions, processing requirements, timelines and remedies for applications that seek to modify an existing wireless telecommunication facility in accordance with the Spectrum Act. These FCC rules purport to bind local governments. Most significantly for cities, the federal regulations state very short permit processing timelines, referred to as “shot clocks”, of 60, 90, and 150 days depending on the type of facility. September 26, 2018 FCC Ruling On September 26, 2018, the FCC issued a ruling and order designed to promote the expeditious deployment of small cell sites in the public ROW. Portions of the ruling and order purported to take effect on January 14, 2019; however, other portions of the ruling are not set to take effect until April 15, 2019. The recent FCC ruling applies to small wireless facilities defined as a facility that meets each of the following conditions: 1. The structure on which antenna facilities are mounted— a. Is 50 feet or less in height, or b. Is no more than 10 percent taller than other adjacent structures, or c. Is not extended to a height of more than 10 percent above its preexisting height as a result of the collocation of new antenna facilities; and 2019-04-09 Agenda Packet Page 114 P a g e | 3 2. Each antenna (excluding associated antenna equipment) is no more than three (3) cubic feet in volume; and 3. All antenna equipment associated with the facility (excluding antennas) are cumulatively no more than 28 cubic feet in volume; and 4. The facility does not require antenna structure registration under federal law; 5. The facility is not located on Tribal lands; and 6. The facility does not result in human exposure to radio frequency radiation in excess of the applicable safety standards specified in federal law. The recent FCC ruling purports to establish the following new standards for small wireless facilities: •Broad interpretation of local prohibitions:The FCC order attempts to further limit the city’s ability to adopt a regulation that “materially limits or inhibits the ability of wireless carriers.” •Cost-based fees:The FCC ruling states that cities are limited to charging fees that are no greater than a “reasonable approximation” of their costs for processing applications and for managing deployments in the right of way. The FCC ruling purports to establish a presumptively lawful, nationwide fee schedule for small cell applications as follows: o $500 for a single up-front application that includes up to five (5) small wireless facilities, with an additional $100 for each small wireless facility beyond five, or $1,000 for non- recurring fees for a new pole to support one or more small wireless facilities; o $270 per small wireless facility per year for all recurring fees, including any possible ROW access fee or fee for attachment to city-owned poles in the ROW. •Aesthetic regulations:The FCC order states that such local regulations will not be preempted if they are (1) reasonable, (2) no more burdensome than those applied to other types of infrastructure deployments and (3) published in advance. •Underground requirements:The FCC ruling states that a requirement that all wireless facilities be deployed underground would amount to an effective prohibition and is thus not permitted. •Quid Pro Quo “in kind service”:The FCC ruling discourages situations where the city makes clear it will approve a deployment only on condition that the provider supply an “in-kind” service or public benefit, such as installing a communications network dedicated to city’s exclusive use. •Batched applications:The FCC ruling states that cities cannot prohibit batched applications (e.g., multiple street lights.) In addition, the recent FCC ruling purports to establish a new set of even more restrictive “shot clocks” applicable only to small wireless facilities. These shot clocks are: • Sixty (60) days for small cell wireless facility attachments to existing poles or structures; and • Ninety (90) days for small cell wireless facilities on new poles or structures. It should be noted that staff is informed that various elements of the FCC’s ruling and order have been challenged administratively and in federal court. At the time of this action, staff is informed that these challenges have not yet been resolved. If such challenges ultimately affect the scope of this proposed resolution, staff will return and provide an update to the City Council regarding the same. 2019-04-09 Agenda Packet Page 115 P a g e | 4 On January 8, 2019, the City Council adopted Resolution No. 2019-003, approving design standards for small wireless facilities in the City’s right-of-way. The updated design standards (see Attachment 2 which is incorporated herein by this reference) represent minor modifications to those standards approved by Resolution 2019-003 and establish the new official design standards for small wireless facilities in the City’s right-of-way. This action would further delegate authority from the City Council to the City Manager, or his/her designee, to approve updated design standards in the future. Staff recommends that the City Council approve this delegation of authority to allow the City adequate flexibility to timely and efficiently update the design standards applicable to small cell deployments within the City’s right-of-way. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create 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 resolution supports the Economic Vitality Goal as the use of safe and secure access to data can help promote an environment for residents and businesses to prosper in. The goals of Strong and Secure Neighborhoods and Connected Community are also linked to this resolution as it will ensure the future installation of this technology will maintain acceptable aesthetics within the City’s streetscape. CURRENT-YEAR FISCAL IMPACT Approval of the resolution will have no direct impact to the General Fund. ONGOING FISCAL IMPACT None. The competitive local exchange carriers will be responsible for constructing, managing and maintaining the small cell wireless facilities. ATTACHMENTS 1. Updated Small Wireless Facility Design Standards Staff Contact: Eddie Flores, City Traffic Engineer 2019-04-09 Agenda Packet Page 116 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING UPDATED DESIGN STANDARDS FOR SMALL WIRELESS FACILITIES WITHIN THE CITY’S RIGHT-OF-WAY AND DELEGATING AUTHORITY TO APPROVE FUTURE DESIGN STANDARDS TO THE CITY MANAGER OR DESIGNEE WHEREAS, it is in the public interest for the City Council to adopt design standards for the deployment of small wireless facilities within the City’s Right-of-Way; and WHEREAS, on January 8, 2019, the City Council passed Resolution 2019-003 adopting design standards for small wireless facilities within the City’s right-of-way; and WHEREAS, this Resolution would establish updated design standards for all small wireless facilities placed on poles, including street light poles and power poles, and other infrastructure within the City’s Right-of-Way; and WHEREAS, the proposed design standards would provide greater direction and assure consistency in small wireless facility design and configuration within the City’s Right-of-Way; and WHEREAS, the proposed design standards illustrate the desired level of design quality and configuration of proposed small wireless facility within the City’s Right-of-Way; and WHEREAS, City staff has determined the proposed design standards to be reasonable and no more burdensome than those applied to other types of infrastructure deployments within the City; and WHEREAS, City staff will publish applicable design standards for small wireless facilities on the City’s website for public review. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the design standards for small wireless facilities within the City’s Right-of-Way in the form presented. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it delegates authority to approve future design standards for small wireless facilities within the City’s Right-of-Way to the City Manager or his/her designee. 2019-04-09 Agenda Packet Page 117 Resolution Page 2 Presented by Approved as to form by _____________________________________ ____________________________________ William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2019-04-09 Agenda Packet Page 118 Design Standards for Small Wireless Facilities in the Right-of-Way Location: 1. Siting: Preferred location for small wireless facilities is within non-residential neighborhoods or on streets with no fronting residences (500 feet away from residential zones). Should the location be within a residential neighborhood, reasonable efforts shall be made to ensure that the facility is not in direct view of residential living areas such as living rooms, bedrooms, etc. a. Within 500 feet of a residential zone, noise limit from any small wireless facility shall be 5dBA above ambient sound, not to exceed 30 dBA as measured at the property line. Other federal, state, or city noise regulations may apply. 2. Small wireless facilities shall not be installed on electrical/electronic traffic control devices’ poles/hardware such as traffic signals (including traffic signal poles with street lights), pedestrian hybrid beacons (formerly known as HAWK), Rectangular Rapid Flashing Beacons (RRFB), and flashing beacons. Small wireless facilities should be positioned on existing street light poles or new street light poles spaced per City standards. 3. All small wireless facilities and related equipment located within the City’s ROW shall be located such that they meet ADA requirements and do not obstruct, impede, or hinder usual pedestrian or vehicular travel or interfere with the operation and maintenance of street lights, signage, street furniture, fire hydrants, other street appurtenances, or business district maintenance. 4. A maximum of one small wireless facility is permitted per pole. 5. Location of small wireless facilities shall provide appropriate clearance from existing utilities. Facility and Support Equipment: 6. Wireless facilities shall be placed within an enclosure and concealed from view to the maximum extent possible. 7. Radiation certified to be at safe levels by a non-ionizing radiation electromagnetic radiation report (NIER) shall be submitted to the City and retained on file for equipment type and model. 8. Applicant shall submit a NIER report for each equipment type certifying that the non- ionizing and electromagnetic radiation emitted from the proposed small wireless facility is safe, and it shall be endorsed by a qualified professional. It shall specify minimum approach distances for the general public as well as electrical and communication workers that are not trained for working in an RF environment when accessing the pole by climbing, ladder or bucket. 9. A “disconnect” shall be required for both the power supply and the wireless antenna that can be easily accessed and operated by street lighting maintenance personnel. 10. Wireless facilities shall be designed, textured, and painted to match existing pole to minimize visual impacts. 11. “ABC”: Antennas, brackets (mounting), and cabling should all have a uniform paint color and be painted to match the color of the equipment, including the fiber termination 2019-04-09 Agenda Packet Page 119 Resolution Page 2 enclosure. Form and Placement: 12. Narrow Vertical Alignment: Wireless facilities shall require shrouds and equipment enclosures that are the same diameter as the post at a ratio of approximately 1:1 such that it reads as one contiguous streamlined form from the street level are preferred. Any tilted or cantilevered arrangements are not acceptable unless approved by the City Engineer. 13. Antenna and Remote Radio Unit (RRU): a. Antenna designs should avoid placements that may impair light, air, or views from adjacent structure windows. b. Antennas shall be generally cylindrical or rectangular in shape. c. Each antenna shall be located inside an enclosure of no more than 6 cubic feet, or in the case of an antenna that has exposed elements, the antenna and its exposed elements should fit within an imaginary enclosure of no more than 6 cubic feet. d. Antennas and RRUs shall be placed within the shroud above the pole. RRUs attached to the side of the pole are discouraged; but if required, it shall use the smallest RRU volume possible and be stacked vertically and close together with 6 inches maximum between the RRU housing and the pole. e. Equipment should be secured by using steel/aluminum banding and not through bolting/drilling into pole. Drilling into an existing street light pole generally voids the pole’s warranty. f. Equipment shall be stacked close together and on the same side of the pole. If a long rectangular disconnect switch is used, the enclosure shall be rotated so the elements can be stacked closer together on the pole. Wide offsets (more than 4 inches) of equipment enclosure brackets from the pole shall be prohibited. g. All equipment height shall be above the ground at least 8 feet. If the small wireless facility equipment is positioned toward the street, the attachment shall be installed no less than 16 feet above the ground. h. Small wireless facility equipment shall not extend more than 8 inches from the pole exterior surface on the half of the pole facing the street side and 12 inches from the pole exterior surface the remaining half not facing the street. 14. Wires and Cables: Wires and cables shall be contained within the shroud and placed inside the pole to the maximum extent practicable with a maximum of 12 inches of exposed cable slack per equipment unit. Cabling and meters shall be inside the pole or shrouds to the maximum extent practicable. When feasible, provider may use existing City conduit(s) between City pull box and City street light pole/other pole to install small wireless facility wiring. 15. Signage and Lights: a. Signage and lights are limited to what may be required by the FAA or FCC. b. Signage and lights shall use the smallest and lowest visibility signs, including the radio-frequency warning sticker required by government or electric utility regulations, and placed as close to the antenna as possible. c. Signage and lights shall use equipment that does not feature flashing lights that may be visible to the public. 2019-04-09 Agenda Packet Page 120 Resolution Page 3 16. Electrical Meters: A separate meter must be provided for small wireless facility. Electrical meters should be located on, within the pole or underground. In the case pole owner prohibits the use of a pole-mounted meter, and an above ground power meter box is required, then the meter box must be of the smallest footprint available and be approved by the City Engineer or designee. 17. Utility Box: Reasonable efforts must be made by provider to avoid the use of above ground utility boxes. If above ground utility boxes must be used, then they shall: a. Use the smallest feasible footprint and not exceed 48-inches in height and 30- inches in width/depth. b. Be secured to a concrete pad. c. Deviations from these standards must be approved by City Engineer or designee. 18. Pole Height: Overall height of the pole shall be similar to the surrounding poles and/or not exceed 35 feet in height. Ancillary Equipment: 19. Plans and photo simulations shall accurately show smaller equipment items such as duplexers, ground buss bars, PBX or J-Boxes. These elements shall be hidden in locations such as behind equipment enclosures or in mounting arms which feature recessed areas. New Stand-alone Utility Pole Design Standards: 20. City preference is that all poles with proposed small wireless facilities include a luminaire and mast arm in accordance with City street light standards. However, the City may review stand-alone utility poles on a case-by-case basis. Any new stand-alone pole shall match the aesthetic of existing street light/poles adjacent to the new pole. 21. Visual standards for the pole include, but are not limited to, the following: a. Any transition between an equipment cabinet at the base of the pole and the upper pole should have a proper transition (at least 2 inches vertical for every one inch change in diameter. b. The equipment cabinet at the base of the pole shall not be larger than 28 cubic feet in size. c. Upper pole shall be scaled to 50% to 75% of the size of the cabinet but not larger than 10 inches at the widest portion. d. All hardware connections, including those between the cabinet and upper pole, shall be concealed from view. No horizontal flat spaces greater than 1.5 inches shall exist on the equipment cabinet to prevent placement of cups, trash, or other objects. Placement of New Stand-alone Utility Poles: 22. The placement of new stand-alone utility poles shall be in accordance with the below standards (however, the City Engineer retains discretion for final approval of proposed stand-alone pole locations). New utility poles: a. Shall be at least 10 feet from the triangle extension of an alleyway flare. b. Shall not be located within 100 feet of the apron of a fire station or other adjacent 2019-04-09 Agenda Packet Page 121 Resolution Page 4 emergency service facility. c. Shall not impede or obstruct usual pedestrian or vehicular travel in accordance with City standards and ADA guidelines. d. Shall be located at intersecting property lines when possible. e. Shall be located on collector streets, when possible. f. Shall be located at least 15 feet away from tree trunks or outside of the drip line of the tree (whichever is greater) to prevent root disturbance. g. Shall be located at least 5 feet away from the widest point of a drive approach. h. Shall be located at least 50 feet from an existing electrical/electronic traffic control device. i. No physical, electrical, or radio interference by the small wireless facility equipment shall be permitted. ii. If required by the City, the provider will provide analysis that the proposed small wireless facility shall not cause any interference with the City public safety radio system, electrical/electronic traffic control devices, emergency signal control devices, “smart city” applications, or other City communications or electronic components. iii. i. When located adjacent to a commercial establishment, reasonable efforts should be made to ensure that the facility is not in direct view of businesses’ main entrance, picture windows or other large openings including, but not limited to sliding glass doors or openings that create an indoor-outdoor dining experience. Decorative Pole Placement: 23. Decorative poles, defined as a pole that is specially designed and placed for an aesthetic purpose, may be replaced by a wireless provider for the purpose of collocation if the replacement pole reasonably conforms to the design aesthetic of the displaced pole. 24. The decorative pole design must be approved by the City Engineer or designee. Photo Simulations: 25. Ensure that all photo simulations appear realistic with respect to cabling/conduit, the RF warning and node ID stickers, and equipment offset from the pole. Verify whether a GPS antenna is needed; as submittals often feature (macro-sized) GPS antennas on simulations when none are shown on plans or needed. 26. If the existing pole is leaning and slated for replacement, the simulation should show a new upright pole. 27. Ensure photo simulations accurately show the offset of equipment cabinets from the pole. Many simulations depict flush-mounted installations when the actual site features a significant offset from the pole. 2019-04-09 Agenda Packet Page 122 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DESIGNATING TALL SHIP BILL OF RIGHTS THE OFFICIAL TALL SHIP OF THE CITY OF CHULA VISTA AND AUTHORIZING IT TO FLY THE CITY’S FLAG ON ITS MAST WHEREAS, the Bill of Rights was constructed in 1971 in South Bristol Maine by Harvey F. Gamage, and spent years chartering New England waters; and WHEREAS, as a sail training vessel, the Bill of Rights sailed the Atlantic Coastal waters, traversed the Panama Canal and sailed the east Pacific Coastal waters to California; and WHEREAS, the Bill of Rights is now berthed at the California Yacht Marina’s excursion dock in the Chula Vista Harbor; and WHEREAS, the Bill of Rights serves the City of Chula Vista and surrounding communities with on-the-water programs that link education, science, and art in an innovative, maritime-learning platform, and it represents the City in various sea battles and tall ship festivals. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it designate tall ship Bill of Rights the official tall ship of the City of Chula Vista and authorize it to fly the City’s flag on its mast in accordance with typical boat flag etiquette. Presented by Approved as to form by Jill M. Galvez Glen R. Googins Councilmember City Attorney 2019-04-09 Agenda Packet Page 123