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HomeMy WebLinkAbout2019/10/01 Agenda Packet I declare under penalty of perjury that I am employed by the City of Chula Vista in the office of the City Clerk and that 1 posted the document according to Brown Act requirements. AWIA Dated: Signed. CrrY Of CHUTA VISTA • • Mary Casillas Salas, Mayor John McCann, Councilmember- District 1 Gary Halbert, City Manager Jill M. Galvez, Councilmember- District 2 Glen R. Googins, City Attorney Stephen C. Padilla, Councilmember- District 3 Kerry K. Bigelow, City Clerk Mike Diaz, Councilmember- District 4 Tuesday, October 1, 2019 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 SPECIAL MEETING OF THE HOUSING AUTHORITY MEETING JOINTLY WITH THE CITY COUNCIL OF THE CITY OF CHULA VISTA Notice is hereby given that the Mayor of the City of Chula Vista has called and will convene a Special meeting of the Housing Authority meeting jointly with the City Council on Tuesday, October 1, 2019. at 5:00 p.m. in the Council Chambers, located at 276 Fourth Avenue, Building A. Chula Vista, California to consider items on this agenda. CALL TO ORDER ROLL CALL: Councilmembers Diaz, Galvez, McCann, Padilla and Mayor Casillas Sa/as PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE CONSENT CALENDAR (Items 1 - 4) 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. City of Chula Vista Page 1 Printed on 9/26/2019 City Council Agenda October 1,2019 1. 6119-0436 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 4 (GENERAL BUSINESS FEES,) OF THE CITY'IS MASTER FEE SCHEDULE RELATING TO COMMERCIAL CANNABIS LICENSE FEES (This item was continued from 9/2,14/2019.) Department: Development Services Department Environmental Notice: The proposed activity, approval of fees, is not a "Project to as defined under Section 15378 of the State CEQA Guidelines and therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Recommended Action: Council adopt the resol�ution. 19-0453 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE CALIFORNIA DEPARTMENT OF TRANSPORTATION SUSTAINABLE COMMUNITIES GRANT PROGRAM FOR THE CHUL,A VISTA N E I G H B 0 R H 0 0 D ELECTRIC VEHICLE TRANSPORTATION PLAN Department: Engineering Department Environmental Notice: The activity is, not a "Project as defined ulnder Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is, required. In addition, notwithstanding the foregoing, the activity also qualifies for an Exemption pursuant to Section 15016,1(b)(3) of the California Environmental Quality Act State Guidelines. Recommended Action: Council adopt the resolution. 3. 19-0435 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS, AMENDMENTS, TO THE FISCAL YEAR 2018/19 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Department: Finance Department Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Gulidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action: Council adopt the resol�ution. City of Chula Vista Page 2 Printed on 912612019 2019-10-01 Agenda Packet, Page 2 of 108 City Council Agenda October 1,2019 4. 6119-0460 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE, 2018ST'AFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE GRANT AWARD FROM 'THE U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL EMERGENCY MANAGEMENT AGENCY TO HIRE 12, FIREFIGHTERS Department: Fire DepartIrnent Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Gulidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action: Council adopt the (resol�ution. 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. PUBLIC HEARINGS The following item(s) have been advertised as public hearing "s) as required by law. If you wish to speak on any item, please, fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 5. 19-0370 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 3.50OF THE CHULA VISTA MUNICIPAL CODE (DEVELOPMENT IMPACT FEES TO PAY FOR VARIOUS PUBLIC FACILITIES) (FIRST READING) (This item has been continued to the 10/15/2019 City Council meeting.) City of Chula Vista Page 3 Printed on 912612019 2019-10-01 Agenda Packet, Page 3 of 108 City Council Agenda October 1,2019 6. 19-0461 A. RESOLUTIONof THE CITY COUNCIL of THE CITY OF' CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS OF THE CHU!LA VISTA HOUSING AUTHORITY CSR OTAY RANCH APARTMENTS B. RESOLUTION OF THE CHULA VISTA DOUSING AUTHORITY REGARDING ITS INTENTION To ISSUE TAX-EXEMPT OBLIGATIONS FOR THE PROPOSED DEVELOPMENT OF OTAY RANCH APARTMENTS Department Development Services Department Environmental Notice: The Project was adequately covered in previously adopted/certified Final Environmental Impact Report FEIR 10-03) SCH No. 2010062093 for otay Punch Village 8West Sectional Planning Area (SIVA) andTentative Map. Recommended Action: council conduct the pu it c hearing, adopt resolution A, and Authority adopt resolution B. City of Chula Vista Page 4 Printed on 912612019 2019-10-01 Agenda Packet Page 4 of 108 City Council Agenda October 1,2019 ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you' wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. J 9-0456 A. REPORT AND REQUEST FOR CITY COUNCIL DIRECTION REGARDING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS B. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTIONS 19.5 .0 (ACCESSORY DWELLING UNITS) AND 19-58.023 (JUNOR ACCESSORY DWELLING UNITS) TO REMOVE THE OWNER OCCUPANCY REQUIREMENT (FIRST READING) Department: Development Services Department Environmental Notice: The activity is not a "Project 1) 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. Recommended Action: Council provide direction as it deems appropriate and lace the ordinance on first reading. CITY MANAGER'S REPORTS MAYOR'S REPORTS 8. 19-0463 RATIFICATION OF APPOINTMENTS TO THE BOARD OF ETHICS OF THE FOLLOWING: -Isidro Barragan -Karla Chinn -Stephanie Teel -Carmen Torres -Alex Welling City of Chula Vista Page 5 Printed on 912612019 2019-10-01 Agenda Packet, Page 5 of 108 City Council Agenda October 1,2019 COUNCILMEMBERS' COMMENTS CITY ATT' RN Y'S REPORT'S ADJOURNMENT to the regular City Council meeting on October 15, 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. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, andlor 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 71 1) 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. City of Chula Vista Page 6 Printed on 912612019 2019-10-01 Agenda Packet, Page 6 of 108 I T 1 L spun" is m"MENT A A0""* Eft' ww"f& 0 1A io, Tt /A(i N uA :5 b CITY OF C H'U LA V I STA October 1 21019 File ITS: 19-043,6 'TITLE IL RESOLUTION OF THE CITY COUNCIL OF THE CITY" OF CHULA VISTA AMENDING CHAPTER 4 (GENERAL BUSINESS FEES) OF THE CIWS MASTER FEE SCHEDULE RELATING TO COMMERCIAL CANNABIS LICENSE FEES RECOMMENDED ACTION Council adopt the resolution.. SUMMARY An amendment of the City's plaster Fee Schedule to establish Commercial Cannabis License fees is recommended. 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 1.5378 of the State CFQA Guidelines; therefore, pursuant to Section 1.500(c)(3) of the State CFQA Guidelines,the activity is not subject to CE'QA. u BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION In March 2018,the City Council voted to approve Ordinance 3418,which created a licensing and regulatory structure for the operation of lawful cannabis businesses in the City of Chula Vista; such structure is codified in the newly created Chula Vista Municipal Code (CVMC) Chapter 5.19 (Commercial Cannabis). CVMC Section 5.19.290 made the effectiveness of Ordinance 3418 contingent on voter approval of a cannabis tax measure to be placed on the November 2018 ballot.A cannabis tax measure, pleasure Q, was ultimately approved by voters and was certified by the City Council on December 1.1, 2018. As a result, Chapter 5.19 has now gone into effect. CVMC Section 5.19.080(T) states that fees and charges associated with commercial cannabis activity will be established by resolution of the City Council. Accordingly,on December 18, 20,18 City Council adopted fees Pzige 11 2019-10-01 Agenda Packet, Page 7 of 108 for the first phase of the commercial cannabis license application process. Staff now recommends and proposes the establishment of additional commercial cannabis license application fees and other miscellaneous cannabis-related fees in order to recover the costs of processing cannabis business applications through the remainder of the licensing process. Such costs would include reimbursement of staff processing and review time and the costs of' hiring consultants to assist in vetting and selecting qualified cannabis business applicants; approving their location in Chula Vista in compliance with the Municipal Code; and overseeing that each businesses operation is in compliance all applicable state and local regulations. '1 0-1 AC pplicati'on an ompli'ance Fees The proposed resolution amends Chapter 4 (General Business Fees) of the City's Master Fee Schedule to add Phase 2 Commercial Cannabis Application, Compliance, Inspection,and License Processing Fees as well as License Renewal,Annual Compliance Inspection and associated fees. The fees are proposed as follows to provide full cost recovery for City services,: Application/Initial Compliance Inspection Phase 2 ­a fee of$16,570 per application will be required at the initiation of the Phase 2 process. This fee will recover all reasonable costs of developing the cannabis application process including: creating necessary forms; web pages; procedures; processes; selection criteria; technical support; and all other program development costs. This fee will also be used for application review for compliance with local and state cannabis laws and regulations; security plan evaluation; review of emergency action and fire prevention plans; location verification; site inspections; data system updates and other administrative functions. This fee will be required to be paid upon submittal of the application by the applicant and will be in addition to any other development permit and processing fees that the proposed cannabis business may require. First Year Compliance Inspection Phase 2 - a fee of$31,275 per application, will be required at issuance of conditional license. This fee will primarily offset City costs associated with the regulatory compliance review and inspection of'each business during the first year following final State Cannabis License and final building inspection by the City. The first-year compliance inspection includes four (4) City inspections per cannabis business. License Renewal/Compliance Inspection­ a renewal and compliance inspection fee of$28,210 per license will be required each year after the first year. Additional Fees Two additional fees are also proposed. The first - Annual Compliance Inspection - includes a license yearend regulatory compliance and financial audit review and report preparation for each business to be performed by the City's contractor (HDL). The second - Reinspection Fee - is charged for each inspection beyond the standard four (4) inspections included in the First Year Compliance and License Renewal/Compliance Inspection Fees. • Annual Compliance Inspection (HDL) - $6,000 (per business) • Reinspection Fee- $330 (per inspection) P zi g e 2 2019-10-01 Agenda Packet, Page 8 of 108 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. Govt 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 IMPAC 111r Approval of the resolution will likely result in a positive fiscal impact to the General Fund as all reasonable staff and consultant costs associated with the cannabis regulatory process will be reimbursed to the General Fund and Development Services Fund from the fees. ONGOING FISCAL IMPAC IT There will be no material impact tothe General Fund or Development Services Fund in future years as a result of these fees being approved. All fees are designed to recover costs for staff time and consultants. ATTACHMEN'T 1. Redline Master Fee Schedule Bulletin 4-100 (Business Fees) 2. Cost of Service Analysis Staff Contact:Kelly Broughton, Development Services Director P zi g e 3 2019-10-01 Agenda Packet, Page 9 of 108 MASTER FEE SCHEDULE 4��M f/ '0000 Chapter 4— Business Fees General Business Fees CITY OF City of Chula Vista Finance Department CHULAVISTA 276 Fourth Avenue,Chula Vista, CA 91910 MIMI I GENERAL Commercial Cannabis Ir BUSINESS 1. Business License Fees, General plic,ation & First Year License Fees Duplicate license..................................................$5.00 Application Phase 1A................................. 2jt 6 8�3 Change of location..................................................$12 Application Phase 1B ................................. $2)�Q65 Home Occupation Permit .................................$25 Application Phase 1C ............................... $868, Application Phase 1D............................... Application/Initial Compliance Inspection P,hase 2, Business resource and energy evaluation (due at license apip�lication) $161570 Non-compliance fine, greater of........................$15 First Year Compljance Inspection P�hase 2 or...............................5%of business license fee (due at conditional license issuance) wewew$312275 2. Sales, Special First Year C6m,plia�nce Ins,pe,ctilon Phase 2 Closing out sale,first 60 days............................$30 includes 4 City in,s ections Closing out sale, one 30-30-day extension .......$15 cannabis busi'ne�ss. Additionaliespe,ctions will be is Special sales event........ <A[; sub o the Commercial' CannabLicense, ject i .......t Temporary outside sales event.........................$45 Re'ns ection 0� 1 Q4q4q_-VJ=44--- =FT7�!�G t I W I I%A Pat 1 t Ww"t i 1.1 Reinewal Fees, I A e. coo Annual l/Compliance Inspection, each (City)ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww ww w,$281210 i P P 111�;CK—I**"Fnm W I%A dw to W. �tWMTUIUU ry Annual Compliance Inspection, each (HDL).$61000 rn IV .......... Ad�ditionial Fees Zoning Verification Letter...............................5183 Seconclary(CVPD) �background review .. -I oo . ......$347 ...................... Provisional kground review.............$300 ..................................... ..............53,276 Reinspection, each................................. 3 3 0 SPECI FIC BUSINESS (REGULATORY) Room 1. Bath House Work permit, application................................$175 Application, annual......................................$1,400 Work permit, annual renewal.........................$100 2. Bingo Casino Parties Application......................................................$265 Application......................................................$265 Annual renewal...............................................$265 Firearms Dealer Application......................................................$365 Annual renewal...............................................$310 City of Chula Vista www.chulavista�ca.gov 619.691-5250 2019-10-01 Agenda Packet, Page 10 of 108 September M.ASTER FEE SCHEDULE 0 FEE BULLETIN 4-100 Page 2 of 3 2019 .,..,.Fraternal Society Gameroom _111-5-:1.6'.......-Public Dance Application......................................................$265 Application......................................................$175 .8,.Holistic Health Establishment 44:-)-.17. Second Hand Dealer Application $19x5 Application......................................................$315 Annual renewal.........................................................$25 Renewal, every 2 years...................................$100 &9.Holistic Health Practitioner 4-7-,'18. Solicitor Application $17.5 Application, includes ID card ..........................$165 Annual renewal...............................................$100 ID card, annual renewal....................................$70 19--.10. ,Dunk Dealer 4.8,19. Transient Merchant Application......................................................$315 Application......................................................$165, Renewal, every 2 years $100 49-,"'?0,. Alcoholic Beverage Control (ABC) Massage Establishment Determination of Public Convenience or Application...................................................$1400 Necessity PCN , ( ) Hearing Annual renewal............................................$1,250 Filing Hearing fee........................Full cost recovery Initial deposit...............................................$1,500 Sale, transfer or change of location requires a new ..................................................................................................................................................................................................................................................................................................................................... application, including payment of application fee. Tobacco Retailer. .................................................................................................................................................................................................................................................... Permit fee .......................................................$322 Massage Te c,h n i c i a n Application......................................................$175 APPEALS, Annual renewal...............................................$10�O 1. ABC N N PCN Determination 2IMobile Home Park Annual Operating Fee Processing fee................... cost recovery The annual safety and health fee for operation of a Initial deposit...............................................$1,000 mobile home park shall be as, established by the 2. Police Regulated Business License, State. Processing fee.............................Full cost recovery 3:14., Pawnbroker Initial deposit..................................................$250 Application................................. $315 FULL COST RECOVERY Renewal, every 2 years...................................$100 For all full cost recovery fee items,an initial deposit Pawnshop employee ID card shall be collected to cover the City's full cost, Application......................................................$165 including overhead, incurred in conjunction with Annual renewal.................................................$70 review and processing as requested by applicant. Change of address/replacement.......................$10 Additional funds may be collected, as required, to cover City costs. Should the application be 1 . Peddler withdrawn at any time, the deposit shall be Application......................................................$165 adjusted to cover the City"s actual co�sts, including overhead,up to that time. Any funds remaining on deposit at the time of the completion or City of Chula Vista www.chulavista�ca.gov 619.691-5250 2019-10-01 Agenda Packet, Page 11 of 108 September IM' .ASTER FEE SCHEDULE 0 FEE BULLETIN 4-100 Page 3 of 3 2019 withdrawal of the application shall be returned to the depositor, after accounting for expenses incurred to date. See Master Fee Schedule Fee Bulletins 1-10O and 1-200 for additional discussion of full cost recovery and current hourly rates. City of Chula Vista www.chulavista�ca.gov 619-691-5250 2019-10-01 Agenda Packet, Page 12 of 108 Cannabis Business- Phase 11 Fee Application Submittal Activity Position Hourly Rate Hours Spent Application Fee Cost Permit Intake and Processing Dev.Services Tech.11 $ 183.03 1.5 $ 275 Field Inspection prior to formal Application Review Associate Planner $ 207.82 4 $ 831 Police Sergeant $ 166.24 4 $ 665 Fire Inspector 11 $ 161.61 4 $ 646 Code Enforcement Officer 11 $ 156.61 4 $ 626 Planning Review-Location and Site Plan Associate Planner $ 207.82 2 $ 416 PD Review-Security Plan Police Sergeant $ 166.24 3 $ 499 Fire Review-Fire Prevention/Emergency Action,Plan Fire Inspector 11 $ 161.61 8 $ 11293 Code Review-Research/License Record Management Code Enforcement Officer 11 $ 156.61 4 $ 626 Building Review-Potential major building issues w/premises Assoc.Plan Check Engineer $ 215.52 1.5 $ 323 Conditional Approval-Processing Dev.Services Tech.11 $ 183.03 3 $ 549 Legal Consultation(per appllication) Deputy City Attorney $ 176.00 3.5 $ 616 Legal Documentation((per application) Deputy City Attorney $ 176.00 2 $ 352 License,Approval/Issuance Process Dev.Services Tech.11 $ 183.03 3 $ 549 47.5 $ 8,267 Initial Compliance Inspection Inspection Prep./Compliance Report Prep./Tracking System Work (Inspection Prep.1.D hrs,l Compliance Rpt Prep.2.5 hrs.lSyst,Documentation 2'.D hrs Planning Associate Planner $ 207.82 5.5 $ 1,143 Police Police Sergeant $ 166.24 5.5 $ 914 Fire Fire Inspector 11 $ 161.61 5.5 $ 889 Finance Sr.Mlanagement,Analyst $ 132.87 5.5 $ 731 Attorney Deputy City Attorney $ 176.00 2.5 $ 440 Code Code Enforcement Officer 11 $ 156.61 5.5 $ 861 30 $ 4097'8 Initial Inspection(Prior to Lic.Issuance&Includes one Follow-up Inspection for 2 Disciplines) Planning Associate Planner $ 207.82 2 $ 416 Police Police Sergeant $ 166.24 4 $ 665 Fire Fire Inspector 11 $ 161.61 4 $ 646 Code Code Enforcement Officer III $ 156.61 4 $ 626 Attorney Deputy City Attorney $ 176.00 2.5 $ 440 Finance Sr.Mlanagement,Analyst $ 132.87 4 $ 531 20.5 $ 9,925 113hase 11 Application Fee(Paid at time of application) $ 161570 First Year Compliance Inspection Activity Position Hourly Rate Hours,Spent Application Fee Cost Inspection Prep./Compliance Report Prep./Tracking System Work (Inspection Prep.1.a hrs,l Compliance Rpt Prep.2.5 hrs.lSyst,Documentation 2'.D hrs Police Police Sergeant $ 166.24 22 $ 3,657 2019-10-01 Agenda Packet, Page 1 of 2 Page 13 of 108 Fire Fire Inspector 11 $ 161.61 22 $ 3,555 Finance Sr.Management Analyst $ 132.87 22 $ 2,923 Attorney Deputy City Attorney $ 176.00 10 $ 1,760 Code Code Enforcement Officer 11 $ 156.61 22 $ 3,445 98 $ 15,341 First Year Inspections(4 Inspections @ 4 hrs,Each)(Includes one Folllow-up Inspection for 2 Disciplines) Police Police Sergeant $ 166.24 16 $ 2,660 Fire Fire Inspector 11 $ 161.61 16 $ 2,586 Code Code Enforcement Officer 11 $ 156.61 16 $ 2,506 Attorney(1.5,hours per inspection=6(hours) Deputy City Attorney $ 176.00 6 $ 1,056 Consultant Inspection(See Attached Cannabis Management Svcs.Proposal) Consultant $ 1,250.00 4 $ 5,000 Finance Sr.Mlanagement Analyst $ 132.87 16 $ 2,126 74 $ 15,933 First Year Compliance Inspection Fee(Collected at License Issuance) 172 $ 311275 License Renewal/Compliance Inspection Program Activity Position Hourly Rate Hours,Spent Application Fee Cost Inspection Prep./Compliance Report Prep./Tracking System Work(2 Annually) (Inspection Prep.1.0 hrs,l Compliance Rpt Prep.2.5 hrs.lSyst,Documentation 2'.D hrs Planning Associate Planner $ 207.82 11 $ 2,286 Police Police Sergeant $ 166.24 11 $ 1,829 Fire Fire Inspector 11 $ 161.61 11 $ 1,778 Finance Sr.Mlanagement Analyst $ 132.87 11 $ 1,462 Attorney Deputy City Attorney $ 176.00 6 $ 1,056 Code Code Enforcement Officer 11 $ 156.61 11 $ 1,723 61 10,133 Annual Inspections(2 Inspections @ 4 hrs Each)(Includes one Follow-up Inspection for 2 Disciplines) Police Police Sergeant $ 166.24 8 $ 1,330 Fire Fire Inspector 11 $ 207.82 8 $ 1,663 Code Code Enforcement Officer 11 $ 161.61 8 $ 1,293 Attorney ey Deputy City Attorney $ 176.00 8 $ 1,408 Finance Sr.Mlanagement Analyst $ 132.87 8 $ 1,063 Consultant Inspection(See Attached Cannabis Management Svcs.Proposal) Consultant $ 1,250.00 2 $ 2,500 42 $ 9,259 Base Annual Renewal Fee 103 $ 1913 Additional Renewel Fee Program Costs Vehicles(4)@$3,750 Per Vehicle/Year for first 20 years),($2,500/Year replacement Cost over 10 years) $15,000/Year Assume 40 apps. $ 357 Safety Clothing and Personell Protective Equpipment(See Estimate) $3,000/Year Assume 40 apps. $ 75 Accela Licensing(10 Licenses) $36,000/Year Assume 40 apps. $ 900 Administrative Support $81,436/Year Assume 40 apps. $ 2,036 Program Management $218,224/Year Assume 40 apps. $ 5,456 ITnatal Aninuail Renewal Fee $ 28, Phase 11 Flat Fees Reinspection Fee(min 2 hours/discipline blended rate$167.00/hr.) $ 330.00 ea, Annual Compliance Inspection Consultant(See Attached Cannabis Management Svcs.Proposal) $ 6,000.00 ea, 2019-10-01 Agenda Packet, Page 2 of 2 Page 14 of 108 Cit Of t: a Cliula Vis, Cannabis Management Services Septem\ :e�r 23, 2019 C ::�� ;I Co mDani es 2019-10-01 Agenda Packet, Page 15 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 TABLE OF CONTENTS 1. LETTER OF TRANSMITTAL.........................................................-...................... 2 11. PROPOSED SCOPE OF SERVICES......................-..................-............-........3 111. COST.............................................................-.................__...........................__.........6 IV. EXPERIENCE AND RESOURCES ............__............................__............-.........7 V. REFERENCES ..............................................-...............-..................-.....................13 VI. ATTACHMENT'S..............................................-...........__.................................. 14 H&O Companies 1 2019-10-01 Agenda Packet, Page 16 of 108 Proposalfor Cannabis Management Services for the City of Chula Vista September 23,2019 1. LETTER OF TRANSMITTAL September 23,2019 David Bilby,MSBA,CPFO Director of Finance/Treasurer City of Chula Vista 276 Fourth Avenue Chula Vista,CA 91910 IRe:(Proposal for Cannabis Management Services Dear Mr. Bllby, Thank you for the opportunity to submit this proposal) for cannabis management services for the City of Chula Vista. The enclosed scope of services provides pricing for compliance inspections and annual financial audits of alll cannabis businesses, plus a workshop to train City employees in regulatory compliance practices., HdL was incorporated in 1983 and has over 30 years of experience providing revenue enhancement and consulting services to local governments in California. HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. IHdUs systematic and coordinated approach, to revenue management and economic data analysis is currently being uti�llized by over 500 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California. Our knowledgeable team of professionals have more than 46 years' combined experience in the establishment and implementation of cannabis regulatory programs including establishing land-use regulations, registration processes, operation regulations for cannabis facilities, staffing plans, cost recovery, structuring cannabis business taxes and conducting compliance and financial audits. We look forward to the opportunity to partner with the City of Chula Vista in developing a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me by email at anickerson@hd1compani I es.com or David McPherson at dmcphiers,on@hdlcomipanies,.com or by phone at 714.879.5000. Sincerely, le" Andy Nickerson President, HdL Companies H&O Companies 2019-10-01 Agenda Packet, Page 17 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 11. PROPOSED SCOPE OF SERVICES The City of Chula Vista is seeking assistance from HdL to provide annual financial audits of all licensed cannabis businesses in the City, along with compliance inspections up to 4 times per year. In addition, the City is requesting that HdL provide training workshops for City staff review and score cannabis business applications,to conduct applicant interviews, and to compile a final report, with scores and merit-based ranking to inform the final selection process. This proposal provides a fixed unit cost for each of these items, though the total cost will depend upon the number of businesses to be inspected and audited, and the number of inspections to Ibe performed for each business per year. Objective 1: Financial Audits and Re-gulatory Compliance Inspections HdL's Cannabis Management Team Ihas over 26 years combined experience conducting approximately 16,000 cannabis compliance inspections, financial audits and investigations in Colorado, California and Nevada. HdL can provide annual compliance reviews and financial audits at the following rates for each cannabis business permitted in the City. Objective 1.1: Financial Audits HdL will conduct an annual financial audit to verify the accuracy of the revenue reported to the City during the review Iperiod and will recommend a tax assessment should the audit reveal any unreported revenue. As part of the process, HdL will conduct a risk based analytical review of the business using the proprietary Cannabis Analytical Tracking Solution(CATSTM)program to ensure there is no diversion of product or cash. Our unique audit approach allows us to identify if a cannabis operator is under-reporting its taxes or diverting product from its facility. HdL audit staff will also use information gathered as part of the onsite inspection to assist with the financial audit. HdL will help the City Iprelpare a notification letter to send to the business to start the audit. The letter will contain pertinent information about the audit, including a list of the records requested and a request for access to the business' point of sale system. HdL recommends the notification letter be sent by the City to encourage cooperation from the business and communicate HdUs authority to conduct the audit.The audit shall include: • Field visit • Gross receipts verification • Risk based CATSTm Analytic Review • Inventory review(subject to access to the track and trace system) • POS data entry requirements review • Preparation and issuance of report • Exit conference with the City H&O Companies 3 2019-10-01 Agenda Packet, Page 18 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 HdL will provide a draft audit report to the commercial cannabis business.The business will be given the appropriate time to respond or appeal the report in accordance with the City ordinance. HdL will review any documentation provided by the business to dispute the findings and will adjust the tax assessment as necessary prior to issuing the final report to the City. Cost: $6,01010,per business per year Objective 1.2: Regulatory Compliance Inspections HdL will conduct a series of up to four on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance with State and/or local laws. If HdL identifies any non-compliant activities,l we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee. The cost for these services includes all of the following: • Notifying permittee of pending inspection • 2-hour on-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following: • Inventory management • Cash handling procedures • Access control • Video surveillance • Product safety • Alarm system maintenance and safety • ILock standards • Packaging and labeling • Waste management • Transportation documentation • Surveillance equipment maintenance • Occupational badges • Business,records • Other items as necessary to ensure compliance with laws • Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. IIf the inspection identifies any violations, of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report. • All travel costs associated with the inspection • All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report. Cost: $1,250 per business/per inspection H&O Companies 4 2019-10-01 Agenda Packet, Page 19 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 This cost does not include any follow-up re-inspection or review of any supplemental documents provided to address or contest any findings of non-compliance, nor does it include any assistance with the appeal of any enforcement action by the City. Any costs associated with such additional services would be billed at HdL's hourly rate. Combined cost per business: A. Conduct one(1)financial audit annually for each permit at a rate of$6,000. IB. Conduct one(1)compliance review annually for each permit at a rate of$1 250. C. Conduct one(1)financial audit and one(1)compliance review annually for each permit at a rate of$7,250. D. Conduct one(1)financial audit and two(2)compliance reviews annually for each permit at a rate of$8,500. E. Conduct one (1) financial audit and three (3) compliance reviews annually for each permit at a rate of$9,750. F. Conduct one (1) financial audit and four (4) compliance reviews annually for each permit at a rate of 11,000. Objective 2:Staff Training Workshop HdL's Cannabis Management Team has significant experience in providing education and training on cannabis regulatory issues. Compliance Director David McPherson is an adjunct Professor at Oaksterdam University and has provided cannabis-related training to public agencies including the California Department of Tax and Fees Administration. Deputy Compliance Director Matt Eaton previously served as an adjunct law enforcement instructor at AIMS Community College in Greeley, Colorado, and has provided cannabis enforcement training to cities,counties and law enforcement agencies. HdL will work with the City to assess the specific training needs for staff to carry out the City's permitting, regulatory and enforcement program, and will design a training program that is specifically targeted to address those needs. Subjects may include any or all of the following,as well as other topics to be determined in consultation with the City: • Overview of State and local cannabis laws and regulations • License types and administrative privileges Introduction to regulatory oversight of the cannabis industry Developing enforcement priorities • Best practices for regulatory enforcement and inspections • Conducting regulatory inspections Regulatory code compliance • Track and trace programs Report writing H&O Companies 5 2019-10-01 Agenda Packet, Page 20 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 Administrative follow-up Trainings may be either half-day(4 hours)or full-day(8 hours)as needed,and may include separate trainings for different departments or divisions, as needed. The details, of the training program will be determined in consultation with the City. Conflicts of Interest and INon-Disclosure HdL Companies works solely with public agencies and has no pirivate-sector clients in the cannabis industry. Though not anticipated, should it be determined that HdL has a conflict of interest with a cannabis business subject to inspection or audit, HdL shall immediately inform the City so that alternative measures may be taken. All cannabis business financial and inspection data will be kept confidential by HdL and will not be shared internally beyond those HdL employees who are required to have access for purposes of conducting inspections or audits,or for administrative purposes as necessary. H&O Companies 2019-10-01 Agenda Packet, Page 21 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 1111. COST The proposed services are broken down into specific line items in the cost table below. This proposal includes certain objectives that would be billed as fixed costs and others that would be billed on a per-unit basis depending upon the number of businesses and the number of inspections annually per business. HdL's fees are based on time,materials and travel-related expenses associated with the execution of the services. The hours and costs in the table below do not include any additional items that are not contemplated by this scope of services. Any additional services would be billed at HdL's hourly rate. Prices are valid for 90 days from September 23,2019. Scqpe of Service Ob i*ectives Estimated Cost Objective 1.1: Financial Audits $6,000 (conducted annually per business), per business Objective 1.2: Compliance Inspections $1,250 (Up to 4 per year per business) per inspection Objective 2: Training workshops for City staff (Half day(4 hours) $2,000 Full day(8 hours) $3,000 Travel expenses: As needed for training workshops $600 ESTIMATE OF TOTAL COSTS To be determined H&O Companies 2019-10-01 Agenda Packet Page 22 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 W. EXPERIENCE AND RESOURCES Compan3j Profile Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes,transient occupancy taxes,and a Cannabis Management Program. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms. dL's systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 500 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California. HdL's key staff has extensive experience serving local government and many have previously held positions in city management,finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor's Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (GIVIRTA) on anticipation and planning of programs to strengthen local government revenues. This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery;forecasting;and economic services available. Our team of professionals has over 46 years of direct experience establishing and implementing cannabis regulatory and taxation programs, including establishing land-use regulations, permit processes, staffing plans, and cost recovery fees; structuring cannabis business tax fees; regulatory compliance; financial audits; and law enforcement training. Our team has conducted over 16,000 cannabis compliance inspections and investigations in Colorado,California and Nevada. 'Key Personnel David McPherson,Compliance Director David McPherson works with local agencies to prepare them to mitigate regulatory issues surrounding Proposition 64 and SB 94. Prior to joining HdL, David served 28 years in local government for the County of Orange and the cities of Newport Beach, San Jose and Oakland. David's experience as a law enforcement officer, compliance auditor, and tax administrator has provided him a wealth of experience that makes him uniquely qualified to manage HdL's Cannabis Management Program.While working for the City of Oakland, he became the first Tax Administrator in the country to successfully tax, regulate and audit medical marijuana businesses. David has over 8 years of experience working with H&O Companies 2019-10-01 Agenda Packet, Page 23 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 cannabis regulatory programs. David is one of the state's most recognized experts in cannabis regulatory policies, compliance implementation and tax policies. His unique knowledge in horticulture, processing and dispensary operations while working for the City of Oakland has made him one of the pioneers in creatingi a Cannabis Management Program. He uses his experience to assist local and state agencies in developing cannabis policies for regulation, compliance, auditing and economic development. He worked closely with the ILeagiue of Cities, on the development of the Medical Cannabis Regulation and Safety Act (MCRSA) and helped shape SB, 94, the Medicinal Adult-U!se Cannabis Regulation and Safety Act (MAUCRSA). David provides technical support on cannabis-related matters to the League of Cities, the Police Chief's Association, Rural County Representatives of California and the California State Association of Counties. In addition, David is working collaboratively with the Department of Consumers Affairs, Department of Food&Agriculture, Department of Health Services and the California Department of Tax and Fees Administration on the implementation of best practices for regulating the cannabis industry for local agencies. David received his Bachelor's Degree in History from California State University, Fullerton and his Master's Degree in Public Administration from California State University, Long Beach.While at Long Beach,he was named"Future Urban Administrator of the Year". Matt Eaton, Deputy Compliance Director Matt Eaton is the Cannabis Compliance Manager at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 29 years' experience conducting criminal/regulatory investigations, and corporate/individual background investigations. While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews which included regulatory and financial investigations. In addition, he is a subject matter expert on track and trace systems. He understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planningi,developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommendingi changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues. Matt received his Bachelor of Science Degree from Biola University and currently maintains a Colorado Post Certificate. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, H&O Companies 9 2019-10-01 Agenda Packet, Page 24 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado. Tim Cromiartie,Senior Advisor Tim Cromartie is a Senior Cannabis Advisor at HdL, in which his primary role is providing policy expertise related to cannabis regulatory and tax policies at the state and local level. Prior to joining HdL, Tim served as the legislative representative coverings public safety issues for the League of California Cities since 2013, with a heavy emphasis on shaping legislation governing state and local regulation of marijuana. He has been actively involved in educating cities on changes in the law resulting from the Medical Cannabis Regulation and Safety Act,as well as Proposition 64,the Adult Use of Marijuana Act. When these two Acts were merged into a single regulatory structure in 2017,Tim successfully advocated for clarification of local government's regulatory and enforcement authority in the cannabis context, and for related environmental safeguards in cultivation operations, protections against over-concentration of businesses,regulation of testing labs,and the inclusion of fire safety standards and a definition of volatile solvents in state law governing cannabis manufacturing operations. Since then he has been engaged in educating local governments on the more recent Medical and Adult Use Cannabis Regulation and Safety Act(MAUCRSA), as well as advocating for a reduction in the cumulative state tax rate for cannabis,, improvements in the state"I s track-and-trace program, and the restoration of a statewide cultivation cap. Prior to the League, he held a variety of positions in the Legislature and state government, including Ilegisllative representative for CalPERS Governmental Affairs, legislative director and public safety consultant to former state Senator Gloria Romero, and field representative for Congresswoman Barbara Lee during her term in the state Senate. Mr. Cromartie holds degrees from the University of California at Berkeley (B.A. Political Science) and UC Hastings College of the Law. Tim is an ardent aviation buff and a member of the California Aerospace Museum at the site of the former McClellan Air Force Base in Sacramento. Billie-jo Naysmiith:,ComIpliance Manr Billie-jo Naysmth is a Cannabis Compliance Manager at HdL in which she plays a diverse role in implementing the Cannabis Compliance Program for local agencies in both California and Colorado. Prior to joining the firm, she was a progressive law enforcement professional with 23 years' experience conducting criminal/regulatory investigations, cannabis,applicant background investigations and complex financial investigations. While working in the Office of the Colorado Attorney General as a Criminal Investigator she investigated Financial and Securities Fraud specializing in cannabis business activity. In addition, she worked closely with forensic accountants analyzing financial records to determine if criminal activity occurred. Duringi her tenure as a Supervisory Investigator at the Colorado Department of Revenue in the Marijivana Enforcement Division (MED), Billie-jo managed criminal investigators and H&O Companies 10 2019-10-01 Agenda Packet, Page 25 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 civilian staff in the Denver Metro and Longmont field offices. Duringi her five-year stretch at the MED, she conducted approximately 5,000 criminal investigations and compliance reviews which included regulatory and financial investigations. In addition,she is a subject matter expert on track and trace systems where she has conducted data analysis in order to assist in complex cannabis regulatory investigations. She understands the complexity of reviewing data to ensure businesses follow state and local regulations. Billie-jo was responsible for assisting in the strategic planning for the division which included providing training for investigators. Furthermore, Billie-jo participated in collaborative rulemaking work groups and focus groups with cannabis industry leaders and external stakeholders to develop best practice regulations. She also provided critical recommendations for the agencies cannabis rules and regulations by addressing key loop holes in the Colorado legislation which was subsequently amended. In addition, Billie-jo formed essential partnerships with federal, state and local law enforcement agencies as well as local licensing authorities. (Billie-jo received her Bachelor of Science Degree in Business Administration from Colorado Christian University where she graduated with the distinction of Suma Cum Laude. She also currently maintains a Colorado POST Certificate. Christina Alltringer,Auidit Manager Christina Altringer is the Audit Manager at HdL. Her primary role is to oversee the audit staff,conduct forensic audits,review staffs reports,and be the point person to work directly with client cities and counties as it pertains to financial audits. IIn addition, she is responsible for managing and developing the data intelligence CATSTM program. Furthermore, in preparation of conducting forensic audits she also prepares Tax Analytical Remittance Report (TARR) summaries to evaluate under reporting or anomalies in the remittance of tax payments to local jurisdictions. Christina previously worked as a Forensic Accountant for the Federal Bureau of Investigation(FBI). In this role,she examined financial records for violations of federal and state laws involving bribery and kickbacks, corruption, money laundering, white collar crimes,Iheallth care fraud,and drug trafficking. Prior to working with the FBI,she worked at a Public Accounting firm performing financial statement audits for entities in the nonprofit,, government,small business,and insurance sectors. She earned her Bachelor of Science degree in Accounting from Minnesota State University. Christina is also a Certified Public Accountant and a Certified Fraud Examiner. Mark Lovelace,IPolicy Advisor Mark Lovelace has 16 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, H&O Companies 2019-10-01 Agenda Packet, Page 26 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Medical Marijuana Working Group for the California State Association of Counties (CSAC) and helped draft CSAC's legislative platform for cannabis issues. Mark pioneered the first-ever six-County regional summit on cannabis, issues in 2015 which resulted in the North Coast Counties Marijuana Policy Statement. His work and input were pivotal in guiding the development of SB 643 and AB 243,two components of the Medical Cannabis Regulation and Safety Act(MCRSA). Mark has worked extensively with public agencies and statewide associations on cannabis issues, including CSAC, Rural County Representatives of California, the Association of California Water Agencies,the North Coast Resource Partnership,California Department of Fish and Wildlife, the State Water Board, the North Coast Regional Water Board, the Bureau of Cannabis Control, state legislators, the Department of Justice, members of Congress and others. He has led numerous presentations, workshops and panel discussions on cannabis issues and has been a sought-after speaker on the topic for government agencies,community organizations and cannabis industry groups. Mark received his Bachelor of Science degree in Industrial Design from California State University, San Jose. Prior to his time on the Board, he worked for many years as a respected advocate on land use,planning,development and environmental issues. Kami Millr,Senior Auditor Kami Miller is a Cannabis Senior Auditor at HdL whose primary role is to ensure cannabis compliance and identify the risk assessment in the supply chain process of each permitted business. Prior to joining the firm, she served three years as a Marijuana Compliance Manager for the Department of Public Behavior and Health (DR13H) for the State of Nevada. During this time Kami played a key role in Nevada's implementation of its Medical Marijuana Program in which she was responsible for statewide monitoring of medical marijivana facilities that included cultivation,production,testing labs and retail stores. Duringi her tenure at the DPBH, Kami managed compliance auditors and support staff in the Las Vegas office. She conducted approximately 1,000 compliance and financial inspections for which she developed the inspection protocols documentation to create comprehensive reports. In addition, her experience with various cannabis track and trace systems allowed her to develop industry supply chain practices for the Department of Taxation. Kami received her Bachelor of Business Administration in E-Commerce and Supply Chain Management from Tennessee State University. Elizabeth IEumurian,Senior Aadito,r Elizabeth IEumurian is a Cannabis Senior Auditor at IHdL. Her primary role is to conduct financial audits, evaluate cannabis applications and conduct background checks.As part of the audit program, she will be conducting and preparing analytical information through the CATSTM program to prepare Tax Analytical Remittance Reports (TARR) summaries to H&O Companies 12 2019-10-01 Agenda Packet, Page 27 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 evaluate under reporting or anomalies in the remittance of tax payments to local jurisdictions. Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience ience working for a large financial institution analyzing data for reporting anomalies and performing internal audits. Elizabeth has recently done work for Blythe, California City, Coachella, Cotati, Desert Hot Springs,Long Beach,Mammoth Lakes,Moreno Valley,Perris,San Bernardino,and Vallejo. She earned her Bachelor of Arts degree in History from California State University,(Fullerton. She has also received a certificate in CannaBusiness from Oaksterdam University. Michelle Shaw,Compliance Inspector Michelle is a Cannabis Compliance Inspector at HdL and is tasked with conducting onsite inspections, examinations and other actions to monitor compliance with established standards for local licensed cannabis businesses. Prior to joining HdL, she was a Compliance Specialist Officer at a large, multinational bank where she managed,validated and oversaw the effectiveness and accuracy of numerous compliance issues within the consumer retail space. Throughout her eight years of experience at the bank, she performed onsite assessments of affiliate businesses to determine compliance/non- compliance of their processes and procedures pursuant to bank standards and state regulations. A graduate of Cypress College, Michelle holds a Foundations of Bankingi Risk certificate from the Global Association of Risk Professionals and a paralegal certificate from the Southern California College of Business and(Law. Alfredo Marquez,Senior Auditor Alfredo Marquez is a Cannabis Senior Auditor at HdL. His primary role is to conduct financial audits. Alfredo previously worked for Teledyne Technologies analyzing risk assessments for acquiring new businesses and various units in the organization. In this role he worked with people at various levels in the organization and successfully conducted financial, Sarbanes Oxley and compliance audits across North America, Latin America, Europe, and Asia. Alfredo has recently done work for Cotati, Cloverdale, Desert Hot Springs, Mammoth, Perris, and Vallejo. He earned his Bachelor's Degree in Accounting from the University of La Verne. H&O Companies 13 2019-10-01 Agenda Packet, Page 28 of 108 Proposal for Cannabis Management Services for the City of Chula Vista September.3,2'019 V. REFERENCES Steve Mitchell Acting Planning Manager City of Modesto Phone:209.577.5287 Email,s m iitchel 1(5),modestogov.com Marshall Eyerman Chief Financial Officer City of Moreno Valley Phone:951,41 3.3999 Email:marshal le(a-).mioval.org Ajay Kolluri Cannabis Program Manager City of Long Beach Phone:562.570.6406 Email:a'ay.kolluri(q-),1ongbeach.ggv Darlene Mata Community Development Director City of Hanford Phone: 559.585.2580 Email,-dmataCED-cityofhanfordca-com Clara Miramontes Assistant City Manager City of Perris Phone:951.940.6100 Email,- cmiiramiontesCcD-cit yofplerris.or g H&O Companies 14 2019-10-01 Agenda Packet, Page 29 of 108 RESOLUTION NO. RESOLUTION of THE CITY COUNCIL of THE CITY of CHULA VISTA AMENDING CHAPTER 4 (GENERAL BUSINESS FEES) of THE CIT E S MASTER FEE SCHEDULE RELATING TO COMMERCIAL CANNABIS LICENSE FEES WHEREAS,EAS, in March 2018, the City Council voted to approve Ordinance 3418, which created a licensing and regulatory structure for the operation of lawful cannabis businesses in the City of Chula vista; and WHEREAS,EAS, the licensing and regulatory structure for the operation of lawful cannabis businesses is codified in. Chula Vista Municipal Code Chapter 5.1.9; and WHEREAS, Chula Vista Municipal Code section 5.19.080(T) states that fees and charges associated with commercial cannabis activity will be established by resolution of the City Council, and WHEREAS, the City Council wishes to establish application, appeal, and background fees for the licensing of cannabis related businesses; and WHEREAS,EAS, an analysis of the consultant costs, staff effort, and the current fully burdened hourly rates for impacted staff associated with processing cannabis licenses and related activities has been conducted to determine the cost of service associated with providing licensing, compliance review, and inspection services, and WHEREAS, in order to achieve full and equitable cost recovery for cannabis application. and licensing process, the City Council wishes to amend Chapter 4 (General. BusinessFees) of the City's Master Fee Schedule, as set forth. in Exhibit 1, attached hereto and incorporated herein. by reference as if set forth in full; and WHEREAS,EAS, the proposed fees do not exceed the estimated reasonable cost of providing the associated services; and WHEREAS, article XIII C of the California Constitution: requires a vote of the electorate to increase any levy, charge, or exaction imposed by a local government, unless specifically exempted and WHEREAS, the proposed fees are exempt from the vote requirement per Sections 1(e)�(2) and I(e)(3) and WHEREAS,EAS, the proposed amendments to the Master Fee Schedule Chapter 4 shall. become effective upon adoption of this Resolution by the City Council. 2019-10-01 Agenda Packet, gage 30 of 108 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend Chapter 4 (General. Business Fees) of the City's Master Fee Schedule to establish Cannabis application, regulatory compliance, and inspection fees as set forth in Exhibit I to this Resolution. Presented by Approved as to form by Kelly Broughton Glen R. Googins Development Services Director City Attorney 2019-10-01 Agenda Packet, Page 31 of 108 MASTER FEE SCHEDULE '000,0 Cha ter 4— Business Fees General Business Fees CITY OF City of Chula Vista Finance Department � ��VISTA 276 Fourth Avenue,Chula Vista, CA 91910 will GENERAL BUSINESS Renewal Fees Annual Renewal/Compliance IInslpection, each 1. Business License Fees, General (city).......................................................$28,210 Duplicate license.................................. $5.00 Annual Compliance Inspection, each (HDL).$6,000 Change of location..................................................$12 Home Occupation Permit .................................$25 Additional Fees Zoning Verification Letter...............................$183. Business resource and energy evaluation Secondary(CVPD) background review...........$347 Non-compliance fine, greater $15 Provisional (HDD background review.............$300 or...............................5%of business license fee Appeal..........................................................$3"276 Reinspection, each..........................................$330 2. Sales, Special 4. Card Room Closing out sale,first 60 days............................$30 Closing out sale, one 30-day extension ............$15 Work permit, application...............................$175 Special sales event............................................$45 Work permit, annual renewal.........................$100 Temporary outside sales event.........................$45 5. Casino Parties Application......................................................$265, SPECIFICBUSINESS (REGULATORY) 1. Bath House 6. Firearms Dealer Application, annual......................................$1,400 Application......................................................$365 Annual renewal..................................... $310 2. Bingo Application......................................................$265 7. Fraternal Society ameroom Annual renewal...............................................$265 Application......................................................$265 3. Commercial Cannabis 8. Holistic Health Establishment Application & First Year License Fees Application......................................................$195 Application Phase 1A................................. $2,683 Annual renewal.................................................$25, Application Phase 1B ................................. $2,065 Application Phase 1C................................... $858 9. Holistic Health Practitioner Application Phase 1D......................................$433 Application......................................................$175 Application/initial Compliance Inspection Phase 2 Annual renewal...............................................$100 (due at license application)....................$16,570 First Year Compliance Inspection Phase 2 10. Junk Dealer (due at conditional license issuance) $31,275 Application......................................................$315, First Year Compliance Inspection Phase 2 Renewal, every 2 years...................................$100 includes 4 City inspections per commercial cannabis business. Additional inspections will be subject to the Commercial Cannabis License Reinspection fee. City of Chula Vista www.chulavista�ca.gov 619-691-5250 2019-10-01 Agenda Packet, Page 32 of 108 September MASTER FEE SCHEDULE 0 FEE BULLETIN 4-100 Page 2 of 2 2019 11. Massage Establishment 20�. Alcoholic Beverage Control (ABC) Application...................................................$1,400 Determination of Public Convenience or Annual renewal............................................$1�250 Necessity(PCN) Hearing Filing Hearing fee........................Full cost recovery Sale, transfer or change of location requires a new Initial deposit...............................................$1,500 ..................................................................................................................................................................................................................................................................................................................................... application, including payment of application fee. 21. Tobacco Retailer. 12. Massage Technician Permit fee .......................................................$32.2 Application......................................................$175 Annual renewal...............................................$1oo APPEALS 13. Mobile Home Park Annual Operating Fee 1. ABC PCN Determination The annual safety and health fee for operation of a Processing fee.............................Full cost recovery mobile home park shall be as, established by the Initial deposit...............................................$1,000 State. 2. Police Regulated Business License 14. Pawnbroker Processing fee.............................Full cost recovery Application......................................................$315 Initial deposit..................................................$250 Renewal, every 2 years...................................$100 FU�LL COST RECOVERY Pawnshop employee ID card For all full cost recovery fee items,an initial deposit Application......................................................$165 shall be collected to cover the City's full cost, Annual renewal.................................................$70 including overhead, incurred in conjunction with Change of address/replacement.......................$10 review and processing as requested by applicant. Additional funds may be collected, as required, to 15. Peddler cover City costs. Should the application be Application......................................................$165 withdrawn at any time, the deposit shall be adjusted to cover the City's actual costs, including 16. Public Dance overhead, up to that time. Any funds remaining on deposit at the time of the completion or Application......................................................$175 withdrawal of the application shall be returned to 7. Second Hand Dealer the, depositor, after accounting for expenses 1 incurred to date. Application......................................................$315 Renewal, every 2 years...................................$10�O See Master Fee Schedule Fee Bulletins 1-100 and 1-200 for additional discussion of full cost recovery 18. Solicitor and current hourly rates. Application, includes ID card...........................$165 ID card, annual renewal....................................$70 19. Transient Merchant Application......................................................$165 City of Chula Vista www.chulavista�ca.gov 619-691-5250 2019-10-01 Agenda Packet, Page 33 of 108 I T 1 L spun" is m"MENT A A0""* Eft' ww"f& 0 1A io, Tt /A(i N uA :5 b CITY OF C H'U LA V I STA October 1, 2019 File ITS: 19-04,53 'TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE CALIFORNIA DEPARTMENT OF TRANSPORTATION SUSTAINABLE COMMUNITIES GENT PROGRAM FOR THE CHULA VISTA.NEIGHBORHOOD ELECTRIC VEHICLE TRANSPORTATION PLAN RECOMMENDED ACTION Council adopt the resolution.. SUMMARY Caltrans Sustainable Communities grants are intended to encourage local and regional multimodal transportation and land use planning that furthers the region's Regional Transportation Plan/Sustainable Communities Strategy,where applicable. Successful projects ,will also contribute to the State's Greenhouse Gas (GHG) reduction targets, employ the goals and best practices cited in the 2017 Regional Transportation Plan Guidelines, and address the needs of disadvantaged communities. Chula Vista would apply for a citywide Neighborhood Electric Vehicle Transportation Plan grant. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality ty Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the ,governmental administrative activity consists of a submittal of a grant application for transportation related projects that have not been fully defined and as such,this action would not result in a potentially significant physical impact on the environ.raent, Therefore, pursuant to Section 1 S o o(c)(3) of the State CEQA Guidelines the activity is not subject to CLC A.Although environmental review is not required at this time, once the scope of individual projects to be funded have been fully defined and the requested grant funding has been received,environmental review will be required for each project as may be needed and the appropriate environmental determination will be made. I addition,notwit:hstan.ding the foregoing,the Director of Development Services has also determined that te activity qualifies for an Exemption pursuant to Section 1 S o 1(b)(3) of the California Environmental Quality Act State Guidelines. "thus,no environmental review is required. BOARD/COMMISSION/COMMITT-EE RECOMMENDATION Not applicable. v . 01 (") l Pzige 1 2019-10-01 Agenda Packet, gage 34of 108 DISCUSSION On August 1 , 2019, Caltrans released the Fiscal Year (FY) 2020-21 Grant Application Guide and call-for- applications for the traditional State and Federal funding, as well as grant funding from Senate Bill 1 (Road Repair & Accountability Act of 2017). A total of approximately $34 million is available for Caltrans Transportation Planning Grants (Sustainable Communities, Strategic Partnerships &Adaptation Planning). The results of these grants should lead to the programming and implementation of transportation improvement projects. These grants are for transportation related planning, not for development of environmental documents, construction, or other ineligible activities identified in the grant application guides. The Sustainable Transportation Planning Grants include: Sustainable Communities Grants ($29.5 million) to encourage local and regional multimodal transportation and land use planning that furthers the region's, Regional Transportation Plan/Sustainable Communities Strategy,where applicable.Successful projects will also contribute to the State's Greenhouse Gas (GHG reduction targets,employ the goals and best practices cited in the 2017 Regional Transportation Plan Guidelines,and address the needs of disadvantaged communities. Strategic Partnerships Grants ($4.5 million) to identify and address statewide, interregional, or regional transportation deficiencies on the State highway system in partnership with Caltrans. The transit component that will fund planning projects that address multimodal transportation deficiencies with a focus on transit. Staff prepared an application for the Sustainable Communities Grant for the citywide "Chula Vista Neighborhood Electric Vehicle (NEV) Transportation Plan' As required by the Caltrans Transportation Planning Grant program, the applicant must submit a Council Resolution approving the application submittal, authorizing the Director of Engineering and Capital Projects or designee to execute all grant documents, and stating the City's assurance to secure grant funds and implement the grant project. Grant applications are due by October 11, 2019,and grant announcements are anticipated in spring 202,0. Chula Vista Neighborhood Electric Vehicle NAV Trans ortation Plan Neighborhood Electric Vehicles (NEVs) are an emerging clean technology: small, electric battery-powered zero-emission passenger vehicles that carry a load of up to 3,000 lbs. and travel up to 45 mph. The City of Chula Vista will work to develop and deliver a citywide Neighborhood Electric Vehicle Transportation Plan, covering an area of over 50 square miles and 460 centerline miles of streets that serve more than 270,0010 residents. The plan will meet GHG reduction targets and address the region's increasing traffic congestion. The City has previously implemented transportation and planning projects including the Smart Cities Strategic Action Plan,Global Climate Action/Clean Energy, and a Climate Action Plan. The NEV Plan will provide the following deliverables: 1. Citywide NEV network plan. 2. Design guidelines and infrastructure cost estimates. 3. NEV policies and legal issues. P zi g e 2 2019-10-01 Agenda Packet, Page 35 of 108 4. Developer and stakeholder meetings/workshops. 5. Educational, Marketing and Social Media Campaign. 6. Plan funding estimates. The passage of Senate Bill 1151, which authorized "any city in the county to establish a[n],... NEV transportation plan", has created an opportunity for the expansion and development of'tie City's nascent NEV infrastructure. The bill includes language that requires cities within San Diego County that are adopting NEV plans to "consult with SANDAG, the Department of Transportation, the Department of the California Highway Patrol, and any applicable local law enforcement agency in preparing a specified report to the Legislature." Chula Vista has consulted with SANDAG and Caltrans on this grant. Link to full text of Senate Bill 1151: https:/Ileinfo-legislature,.ca.gov/face,s/biliTextClient.xhtml?bill id=20172018,0�SB1151 The proposed project will create a citywide NEV Transportation Plan with a citywide NEV infrastructure map as a project deliverable. The City will work with stakeholders, including developers and Disadvantaged Community residents, to establish NEV infrastructure development standards that will provide incentives for NEV infrastructure in newly built communities and future development projects. To implement a citywide NEV roadway network, the City needs to develop NEV roadway lanes/cross- sections,charging stations,written guidelines,and posted signage. Through the proposed project,the NEV project team will develop a plan to expand the City's five (5)miles of existing NEV-friendly roads throughout the entire city (Attachment 1). The citywide NEV plan will investigate and address opportunities for public input, destination and route identification, and design criteria for infrastructure including parking and funding requirements that could lead to a development impact fee program share. Existing bicycle paths will be considered as opportunities to expand the citywide NEV network. Chula Vista is designated as a Bronze Level Bicycle Friendly Community due to an abundance of City bicycle infrastructure and policies that favor non-motorized transportation. A citywide NEV Transportation Plan will leverage existing and planned infrastructure and facilities among NEVs, bikes, scooters, and pedestrians, thereby supporting the Mobility Hub concept (Attachment 2). A previously awarded Caltrans grant, "Planning for Operations of Mobility Hubs," will be leveraged to incorporate NEVs into other transit hub solutions such as autonomous micro transit, autonomous rides are, electric vehicle charging infrastructure, and micro-mobility (i.e., dockless bike share/scooter share). The proposed NEV plan will determine the feasibility of shared low-speed pathways that provide safe and low/no emission travel options for travelers of all ages and abilities. Since NEVs, are zero emission vehicles, the NEV Plan proposal builds on the City's Complete Streets, Transportation Demand Management (TDM), Smart City, climate, and energy conservation policies. Since Chula Vista began working on climate action planning 20 years ago, protocols have been updated and standardized for consistency in reporting statewide. Due to these updates,the oldest inventory year (1990) is no longer compliant with the newer inventory protocols.The baseline was updated to 2005,, which has all P zi g e 13 2019-10-01 Agenda Packet, Page 36 of 108 the necessary data, and aligns the City's GHG reduction goals with the State's goals to reduce community- wide GHG emissions to 15 percent below 2005 levels by 2020, and 55 percent below 2005 by 2030. While the most recent 2014 GHG inventory demonstrated significant reductions in the transportation sector, additional reductions are still required to meet the City's 2020 and 20,30 goals. Additionally, to meet the state's 2050 GHG reduction goal, the City will need to pilot new innovative systems like NEV plan that can reduce transportation sector emissions. The cost estimate for the NEV Plan is estimated at$300,0001. The City will contribute $50,000 in matching funds,from T'ransNet. The City is applying for$250,000 in Caltrans Sustainable Communities grant funding. All awarded grant funds must be programmed during the State FY 20,201-21.The project start date depends on the method of contracting with Caltrans. For MPOs and RTPA,s with a current Master Fund Transfer Agreement (MFTA), work may begin as early as July 2020, pending State Budget approval, and Caltrans issuing a formal Notice to Proceed. Once the Notice To Proceed has been issued in FY21, the NEV Transportation Plan will be completed within 18-months. All final invoices, for State-funded grants awarded to MPOs/RTPAs and federal-funded grants awarded to RTPAs must be submitted to Caltrans for approval and reimbursement prior to April 28, 2023. This allows Caltrans sufficient time to comply with the State Controller's Office payment requirements. 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 declisionmaker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPAC 111r There is no direct impact to the General Fund. If a grant is awarded, staff will return to Council with a recommendation to accept and appropriate the grant funds. Matching funds would come from TransNet. ONGOING FISCAI.IMPACT On-going is not applicable because any improvements would come to Council via CIP process in future year's budget process. A'TTAC'HMEN'TS 1. Otay Ranch Town Center NEV paths and trails network 2. SANDAG Regional Mobility Hub Plan Staff Contact:Patrick Moneda,Senior Civil Engineer P zi g e 4 2019-10-01 Agenda Packet, Page 37 of 108 RESOLUTION NO. RESOLUTION of THE CITY COUNCIL of THE CITY of CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE CALIFORNIA DEPARTMENT of TRANSPORTATION SUSTAINABLt COMMUNITIES GRANT PROGRAM FOR THE CHULA VISTA NEIGHBORHOOD ELECTRIC VEHICLE TRANSPORTATION PLAN WHEREAS, on august 19, 2019, Caltrans released the Discal Year (FY) 2020-21 Chant Application Guide and call-for-applications for the traditional State and federal funding, as well as grant funding from Serrate Bill 1, the load repair & Accountability pct of 2017; and WHEREAS, $29.5 million is available for Sustainable Communities Grants to encourage local and regional planning that furthers state goals, including, but not limited to, the goals and. best practices cited in: the Regional. Transportation Plan, Guidelines adopted by the California Transportation.Commission; and WHEREAS, successful projects will also contribute to the State's Greenhouse Gas (GHG) reduction targets, employ the goals and best practices cited in the 2017 regional. Transportation.Plan Guidelines, and address the needs of disadvantaged communities; and. WHEREAS, upon approval of this resolution Chula Vista will apply for a Sustainable Communities Grant for the Chula Nista Neighborhood Electric Vehicle (NEV) Transportation. Plan; and WHEREAS, Neighborhood Electric Vehicles (NEVs) are an emerging clean technology: small, electric battery-powered zero-emission passenger vehicles that carry a load of up to 3,000 lbs. and travel up to 45 mph. The City of Chula Vista will work to develop and deliver a citywide Neighborhood Electric Vehicle icle Transportation .Plan and WHEREAS, tae plan will help Leet GRG reduction targets and address the region's increasing traffic congestion in conjunction with previously implemented transportation and planning projects including the Smart Cities Strategic fiction plan,, Global Climate Action/Clean. Energy, and Climate Action Plan; and WHEREAS, the passage of Senate Bill 1151 authorized "any city in the county to establish a[n]... NEV transportation plan" and created an opportunity for the expansion: and development of the City's nascent NEVinfrastructure; and WHEREAS, Senate Bill 1151 bill includes language that rewires cities within San Diego County that are adopting NEV plans to "consult with SANDAQ the Department of Transportation, the Department of the California Highway Patrol, and any applicable local law 2019-10-01 Agenda Packet, gage 38 of 108 enforcement agency in preparing a specified report to the Legislature", and Chula Vista has consulted with SANDAG and Caltrans on this grant;, and WHEREAS, a citywide NEV Transportation Plan, will leverage existing and planned infrastructure and facilities among NEVs, bikes, scooters, and pedestrians, thereby supporting the Mobility Hub concept and will, determine the feasibility of shared low-speed pathways that provide safe and low/no emission travel options for travelers of all ages and abilities; and WHEREAS, the City is eligible to receive Federal and/or State funding for certain transportation planning related plans, through the California Department of Transportation; and WHEREAS, a Restricted Grant Agreement is needed to be executed with the California Department of Transportation before such funds can be claimed through the Transportation Grant Programs; and WHEREAS, the City wishes to delegate authority to execute these agreements and any amendments to the City Manager or designee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it authorizes the submittal of an application for the California Department of Transportation Sustainable Communities Grant Program, and authorizes the Director of Engineering and Capital Projects or designee to execute agreements and amendments with the California Department of Transportation for the Chula Vista Neighborhood Electric Vehicle (NEV) Transportation Plan. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2019-10-01 Agenda Packet, Page 39 of 108 0110101"i 011 010 luo ........ MARQU E ETT m NA 0 \X' ........... ........... '0 ............ 1,10111............ tA 4 lit 0�l IV ............... Of�N .......... .......... 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If- ................. oM A .......... 0 00,00 .......... 0i Jpli lo IFNI p "4� df I"'ur�Svsera tay Ranclh 0wluull St .............. iiiiii 000 /............... 10 IU o Fp 'VON"' ol NX, C& Or/ �/�110o®r' mvr­ x 99 '000';' WOO 00 "Jif 000III .......... 01, :IIII00................ 7 Encinitas %lana Beach Fb way Del Mar Santee S4\NTA I°I..........................11 W", %n Diego iii E Cajon L'a mes.1 Map Coronado 111011 d011001 Lo cat i o InlIbIY Nationaf City go 01 u[a 0 3 6 Miles 1111111100 N111111111 Vista 0 0.25 0.5 M" iles Access Ti m e Transit Routes 2020 Transit Stops 2020 Bikeways 2020 Neighborhood Electric Vehicle Parksand Open Space (NEV) Routes Walk 5-minute mmmm I?apid Transit Multi-Use Path Bike 5-minute Local Bus Bike Lane ......... Existing Regional Paths Drive 5-minute ............... Bike Route Future Regional Paths N ammom Existing Regional Trails 2019-10-01 Agenda Packet, aft am Future Regional Trails Page 40 of 108 / / / / / / / / / / mg Illi I� ��.�, u•����. �I l , li ff r I �,I r , ,�ulu i i llllnn I / l 01,.111111 1JJJ l Vl1J�J11 !! %/(llrrrrr l G � l , / l IIIIIIIIIIIIII m JJ I � J1 IJ 1. 1 � l ° / I " 1, , , ��� illi. illi. l rr�t 1 i w n , I r l l " 1 L 1 l 1 l l 11� 11J�111�� Il 1 � JI � 1 1iI��IJ�J�J 1 »>>�JJ1 J�ll»�1J��11JI IIJJ��IJI�JIJJIIJ»11,1 JJi 1111 »�� �JJ 11�JiJ�I l�1»»Illlll�llll<1��11 a>»>IJ»JII1111 JJJ11J��1JIJ111J1111��IlJ1J �i11J1�Ji1�l�IJ 1 J�J 1JJ� ��» >JJ 1��J1����J� i�JJJJJ�IJ���IIIJ1I���JJ� rIrl Mobility Hubs re places of connectivity where different modes of travel walking,, dikin transit,and shared mobility—seamlessly converge.T'hcao hubs aro located where there is a concentration of employment, houlni,shoppinl ,and/or re�crcatioin.They provide an integrated l quite of mobility services,amenities,and technologies to,bridge the distance between high-frequency transit and and individual i ori Ilan or destination. Features SILL • i Walking and liking infrastructure Safe, comfortable,,and inviting walkways,and bikeways; and secure Iparking for (personal (Mikes, hoveirhoardl ,and other devices., ....:....... • Shared mobility G Transportation options that share the irlde with other travelers,or use a shared F vehlicle, such as tranlsit, oin dermand r dl char , carahare, nicrormobility solutions like doickless scooters and dikes', neighborhood electric vehicles NI LV's , II " shared autonomous shuttles, and other Flexible Fleets, � I� IIIIII l � III • Support services, M J 11111�J11 J � J 1 J J �� J/ I.1.Jl, uuuum uuuum r � I G fliliu. ���� Hili, /a '. uuuuu J iia 1 1 � � J 1 J � J J t J � J) J Real-time travel information,, electric eII IIe charging,Ilmultimodal Jfin llnl J , ,IIIIIIIIIIIIII „ J � r i package deli er mobile retail services, and passenger loadingI areas. Intelligent Mobility Hubs areest suited near Wireless vehicle charging,smart(parking solutions,automated and connects � hli h-fry uenc fir ns'it and hire there vehicles,and dlynamlically managed curb space.' is a,concentration of employment', Sqpportive, land uses housing, shopping,and/or relcreation. Mobility Hubs aro centers of activity where there is a concentration of The 210,211 Regional Plan will include employment,, housing, shopping, and/or recreation. work of primary and satellite IVI��I�II Mobility rr1 existing: a `*wYr /"1r-1J, ` G f)NpiUllf gw ii l w .�.�,. „^,..� transit and Inew high frequency, high speed services In the Transit Leap. y ' �l t , These serviceswill i to rade with r Vim., 00 Complete Corridors to align several ) � 111 r ulllug l Mobility I ufeatures,l . like ° III u Ii:'� "Mm '; � Iil�Y g' hwol elctrlchllclle charging and smart 01parking—with the network o hil hl- f ca acit smarty and acts oly managed Cj highways and lcall ra+ a. lexil In,uN"un Nr h r ,uaN �"" Vu �''p„ iif�I pprtrt��IN��n�rni°uan�Kn'�"NrNgNryaa u 11 /� a M a I � ,. i p un°1,a„NNAryryuan �d o �i�t� I Fleets also inite Pratte into Mobility Hubs r N d �� to provide a wide range of travel I _0% ,,,,,,,.. II°(III optilons to bettor access transit and ° other community sti tion FORWA NDAG A BOd New Transportation Vision 2019-10-01 Agenda Packet, gage 41 of 108 The Mobility Hub ildea originated in Briemen, Germany as a wayto All combine numerous mlobility options,in one location. Bremen successfully 7, combined carshare vehicles,,,, bIike parking,, and wayfinding ellements near high-frequency transit stiatioIns. Anti'dipated Benefil"'Its Bremen's 2,90 shared cars have taken Mobillity �Hubs enhance the movement of peopie and goods whille heiping more than 4,200 privatel,y owned cars offthe road. the region meet greenhouse gas emissions reduction mandates. 101 In Burlington in Ontario, Canada, • Increased transit ridership Mobility Hubs are envisioned as a way Studies have shown that increasing the concentration of homes and jobs near to,concentrate future population transit increases ridership,and that employment density'is moire s,trong�ly and job growth near railway and bus associated with transit ridership than residential density. For examp�le, doubling stations.The city is fostering the number of homes near light rail stations, increased boarding�s,at the same completle, compact,and sustainable station by 15-59%. communities for people of all ages with::a mi:x of uses in:walking anid • Reduced need foir,d�riving a1one biking distance to transit. Locating Mobility Hubs near h,igh-frequency transit and �po,pu�lar commute and leisure destinations makes,it easier to go places without relying on a personal Mietrolinx championed the idea of car to travel long distances.Also,, more than 45% of all trips in the U.S. are Mobility H�ubs in Torontoi, Canada,to shorter than three miles, making Mobility,Hubs a v,iable way to fulfill everyday ensure shared mobility services and travel needs. supporting amenities were consisten't with transpilortiation servicesin Con�g�estion rellief communities. Land use anid Increased transportation choices and supporting amenities reduce the need to transportation consideriatilions were dievieloped based on the walking: own a car�. Pooled rides like UberPool, Lyft Shared Rides, and carpools, decrease the number of vehicles,on the road and he�lp coninect people to biking,and driving d'istanceto transit. transit.Additionall�y', bike and pedest'rian improvemen�ts will encourage more In the San Francisco, Bay Area, people to choose to,walk, bike, oir ride a scooter to trans,it or other Mobility Hub the Metropolita�n'Tran�spo�rt'atio�n destinations,. Commission anid the Association of BayArea Governments launchied an Reduced ai�r poillution effort to provide commiunity Mobility Increasing zero-emission vehicles and supporting amenities like electric,vehicle Hubs that includie solar electric charging will �reduce greenhouse gas,emissions and iMprove air quality., vehicle carsharinig,,e-bikies,free transit in Equ�ity passes,,anid other transportation: benefits to low-income residents at Flexible Fleets and automated vehicles can be viable options for seniors and persons with disabilities who are not able to travel on their own. Many private three affordable housinig sites in operators develop,and implement equity plans to ensure acces,s,ibility(e.g., Oaklan�d,Richmond,and San:Jose. adaptive bikes/scoolter�s, low-income payment options). SIDForwardilcom 9an 1E)IIego FOR SANDAG' A Mid New TrainsportatJon V�s�oin ln@OSANDAGregion VV SANDAG #SDForward #5&gMoves 2019-10-01 Agenda Packet, Page 420f 1083/1915039 I T 1 L spun" is m"MENT A Ao""* Eft' ww"f& 0 1A io, Tt /A(i N uA :5 b CITY OF C H'U LA V I STA October 1, 2019 File ITS: 19-043,5 'TITLE IL RESOLUTION OF THE CITY COUNCIL OF THE CI"T"E"of CHULA VISTA MAKING VARIOUS AMENDMENTS TS TO THE FISCAL YEAR 20,18/2019 BUDGET To ADJUST FOR VARIANCES, AND APPROPRIATING FUNDS THEREFOR R 4/5 VOTE REQUIRED RECOMMENDED ACTION Council adopt the resolution.. SUMMARY As part of the fiscal year 2 018-2019 year-end process, staff has reviewed budget to actual reports to identify potential budget overages at either the category or fund level. Various budget changes are needed to align the budget with year-end actuals. ENVIRONMENTAL REVIEW The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to the State CEQA Guidelines Section 15060(c)(3) no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION As part of the fiscal year 2018-2019 year-end process, staff has reviewed budget to actual reports to identify potential budget overages at either the category or fund.level. Various budget changes are needed to align the budget with year-end actuals. For government entities, a budget creates a legal framework for spending during the fiscal year. after the budget is approved, circumstances arise that may require adjustments to the approved budget. The City Council Policy No. 220-02 "Financial Reporting and "transfer Authority" permits budget transfers to be completed. Transfers that exceed $15,000 require City Council approval. The City Council may amend the budget at any meeting after the adoption of the budget with. a 4/5ths vote. Staff is seeping approval for recommended adjustments in the General Fund and various other funds to align budget with year-end actual expenditures where the actuals have exceeded budget. A report on the full results of fiscal year 2018-2019, Pzige 11 2019-10-01 Agenda Packet, gage 43 of 108 including audited actual revenues and expenditures,will be provided following the completion of the annual audit and with the presentation of the Comprehensive Annual Financial Report. Fiscal Year 2018/2019 Budget Adjustments Staff is recommending various adjustments, appropriations, and transfers to City Departmental and Fund budgets that require City Council authorization. General Fund Adjustments In the General Fund,some of the transfers are between expense categories within the same Department and some transfers are between Departments. There are also proposed budget adjustments reflecting increased revenue where needed to address unanticipated expenditure category overages and ensure correct accurate year-end reporting. The recommended budget adjustments are shown in the table below.There is no overall net cost to the General as a result of the proposed budget adjustments. General Fund Adjustments Summary -4th Quarter Fisca!Year 2018-19 DEPARTM ENT PERSONNEL SUPPLIES& CIP TRANSFERS TOTAL TOTAL Notes SERVICES SERVICES BUDGET OUT EXPENSE REVENUE NET COST GENERALFUND Fire IDepartment 1 22,050 22,050 (22,050) $ Human IResources 2 (73,655) 73,655 $ - $ Library lDepartment 3 500 $ 500 $ (500) $ Non-Departmental 4 2,555,712 (21,501) 2,589,598 $5,123,,8091 $(5,,123,809) $ Parks and Recreation 5 6,100 - - $ L6:0 1: 0 $ (5,144} $ TOTAL GENERAL FUND 1 $ (73,655)1 $ 21658,017 $ (211501)1 $ 2,589,598 1 $5,152,459 1 $(5,1521459) $ While there is no net cost to the General Fund from the proposed budget adjustments,there are several key items to note. 1.Fire Department - Appropriate $22,050 in revenue and expenses for Fire Station I insurance claim payment. 2. Human Resources Department-'Transfer$73,655 from Personnel Services to Supplies &Services. 3. Library Department-Appropriate$500 in revenue and expenses for donations received. 4. Non-Departmental- Increase appropriation by$55,712 in expenses and $45,712 in revenues for Fire Station I insurance claims payment; Appropriate $658,106 increase in revenues and Transfer-Out expense for Measure A Sales Tax revenue; Appropriate $1,931,492 increase in revenues and Transfer- Out expense for Measure P Sales Tax revenue;Appropriate$223,080 increase in revenues for Franchise Fees; Appropriate $2,500,000 increase in Sales Tax revenues; decrease appropriations by $21,500 for TRF0391 CIP Project- and, increase appropriations of$2,500,000 to Supplies and Services for FY2020 budget rollover. 5. Parks and Recreation Department - Appropriate $6,100 in revenue and expenses for donations received. P zi g e 2 2019-10-01 Agenda Packet, Page 44 of 108 Other Fund Adjustments, The following recommended adjustments are for funds outside of the General Fund. The proposed adjustments have a net increase to revenues of approximately $2.6 million to the various identified funds. The proposed adjustments are to impact the fund balances or current year available revenues of the respective noted funds,. Other Funds Adjustments Summary-4th Quarter Fiscal Year 2018-19 DEPARTMENT PERSONNEL SUPPLIES& OTHER OTHER CIP TOTAL 'TOTAL Note SERVICES SERVICES EXPENSES CAPITAL BUDGET EXPENSE REVENUE NET COST OTHER FUNDS 2016 Measure P Sales Tax 1 - - - - $ $(1,931,492) $(1,931,492) 2016 Measure P Sales Tax- Org 220350 la - - - - (203,032) $ (203,032) $ $ (203,032) 2016 Measure P Sales Tax- Org 220368 la - - - - 203,032 $ 2013,032 $ $ 203,032 2018 Measure ASales Tax 2 - - - - $ - $ (658,106) $ (858,10+6) Other Grants 3 409 3,752 - - - $ 4,161 $ (4,161) $ - Federal Grants 4 - (31,570) 31,570 - 2,172 $ 2,172 $ (3,859) $ (1,687) State Grants 5 - - - 5,454 - $ 5,454 $ (5,454) $ - Trunk Sewer Capital Reserve 6 - - - - 216,170 $ 216,170 $ $ 216,170 Sewer DlFs 7 - - - (216,170) $ (216,170). $ $ (216,170) Capital Im provernent Projects 8 - - - - 823,554 $ 823,554 $ (802,053) $ 21,501 TOTAL OTHER FUNDS $ 409 $ (27,818), $ 31,570 $ 514541$ 825,726 $ 835,341 $(3,405,125),$(21569,784) The Other Funds proposed budget adjustments are primarily being derived by the following transactions: 1.2 01 Measure P Sales Tax-Appropriate$1,931,492 Transfer-In from the General Fund for unbudgeted revenues. la., 2016 Measure P Sales Tax-Transfer$203,0132 from Org 2203,50 to Org 220368 for project cleanup. 2. 2018 Measure A Sales Tax-Appropriate $658,1016'Transfer-In from the General Fund for unbudgeted revenues. 3. Other Grants -Appropriate$4,161 in both revenues and expenses for accounting corrections., 4.Federal Grants-'Transfer$31,570 in the State Homeland Security FY14 grant from Supplies&Services to Other Expenses; and, EMPG Grant cleanup increasing expenses by$2,172 and revenues by$3,859. 5. State Grant - Appropriate $5,454 in both revenues and expenses for accounting corrections for the SART Grant. 6. 'Trunk Sewer Capital Reserve _ "transfer appropriations of $216,170 to the Sewer DIF Fund as an accounting correction. 7. Sewer DIFs Fund - Transfer appropriations of'$216,170 from the Trunk Sewer Capital Reserve Fund as an accounting correction. 8. Capital Improvement Projects Fund-Appropriate$802,053 in revenues and expenses for the receipt of insurance proceeds for 610 Bay Blvd;and,an accounting correction appropriating$21,501 in expenses for CIP Project TRF01391. Pzige 3 2019-10-01 Agenda Packet, Page 45 of 108 DECISION-MAKER CONFLICT' Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently,the 1,0�Oo-foot rule found in California Code of Regulations Title 2, section. 18702.2(a)(11),is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act(Cal. Gov't Code§87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRA'TEGIC GOALS The City's Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the Operational Excellence goal by communicating the City's projected financial position fort e current fiscal year in an open and transparent manner. 'This transparency supports City Initiative 13.1. - "Foster public trust through an open and ethical government." CURRENT-YEAR FISCAL IMPAC 111r The Fourth Quarter Monitoring Report presents revised revenue and expenditure projections as of September 19, 2019. Approval of the resolution amending the fiscal year 2018-2019 budget will result in the following impacts: General Fund-There is no net impact to the General Fund as the recommended adjustments to the fund are either revenue offset or neutral as a result of expenditure or revenue transfers within the expenditure categories. Other Funds - The proposed adjustments have a net increase in revenues of approximately$2.6 million to the various identified funds. Adjustments consist primarily of adjustments within expense categories, transfers across funds, and appropriation of revenue. The largest adjustment ($1.9 million) is due to the transfer of Measure P Sales Tax revenues from the General Fund to the Measure P fund. ONGOING FISCAL IMPACT Staff will review the impacted budgets to identify potential ongoing impacts and may recommend changes during fiscal year 2019-2020. AWACHMEN'TS None. Staff Contact:David Bilby, Finance Department P zi g e 4 2019-10-01 Agenda Packet, Page 46 of 108 RESOLUTION NO. 2019- RESOLUTION 01 -RESOLUTIO T OF THE CITY COUNCIL OF THE CITY OF CRUD VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2018119 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FtJNDS THEREFOR WHEREAS, the City Charter states that at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by the affirmative votes of at least four members; and WHEREAS, staff has completed the budget review for the quarter ending Jeune 30, 2019 and is recommending several budget amendments; and WHEREAS, staff is recommending $5,152,459 in: appropriations to multiple departments in the general Fund that will be offset by $5,152,459 in revenues resulting in a net impact of$0; and WHEREAS, the Truck Sewer Capital Deserve Fund and the !capital Improvement Projects Fund will be negatively impacted due to adjustments that will add appropriations that will be made from the available balances of these finds; and WHEREAS, the Measure p Sales Tai Fund, Measure A Sales Tax Fund, Federal, Chants Fund, and Sewer Development Impact Fees Fund will be positively impacted as a result of increased revenues and reduced expenditures resulting from the recommended changes; and WHEREAS, the recommended adjustments to the other Grants Fund and the State Chants Fund consist of offsetting transfers between expenditure categories and increased revenues resulting in no net impact to these funds; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend the fiscal year 2018/19 budget and approves the following appropriations and transfers: 2019-10-01 Agenda Packet gage 47 of 108 Summary of General Fund Appropriations and/or Transfers 0 Geneml Fund Adjustments Summary-4th Quarter Fiscal Year 201 a DEPARTM ENT PERSONNEL SUPPLIES& CIP TRANSFERS 'TOTAL TOTAL SERVICES SERVICES BUDGET OUT EXPENSE REVENUE NET COST GENERAL IRUNDa Fire Department 22,050 $ 22,050 $ (22,050) $ - Human Resources (73,655) 73,655 $ - $ - Library Dep a rtm en t 500 $ 500 $ (500) $ - Non-Departmental 2,555,712 (21,501) 2,589,598 $5,123,809 $(5,123,809) $ - Parks and Recreation 6,100 $ 6,100 $ (6,100) $ - TOTAL GENERAL IRUND $ (73,655) $ 21658,017 $ (21,501 21589,598 $51152,459 $(5J521459) $ Summary of Appropriations and/or Transfers for Other Funds Other Funds Adjustments Summary-4th Quarter Fiscal Year 2018-19 DEPART M ENT PERSONNEL SUPPLIES& OTHER OTHER CIP TOTAL 'TOTAL SERVICES SERVICES EXPENSES CAPITAL BUDGET EXPENSE REVENUE NET COST OTHER FUNDS 2016 Measure P Sales Tax $ $(1,931,492) $(1,931,492) 2016 Measure P Sales Tax- Org 220350 (203,032) $ (203,032) $ $ (203,032) 2016 Measure P Sales Tax- Org 220368 203,032 $ 203,032 $ $ 203,032 2018 Measure ASales,Tax $ - $ (658,106) $ (65,8,106) Other Grants 409 3,75,2 $ 4,161 $ (4,161) $ Federal Grants - (31,570) 31,570 - 2,172 $ 2,172 $ (3,859) $ (1,687) State Grants - 5,454 - $ 5,454 $ (5,454) $ - Trunk Sewer Capital Reserve 216,170 $ 216,170 $ $ 216,170 Sewer DIFs (216,170) $ (216,170) $ $ (216,170) Capital Improvement Projects 823,554 $ 823,554 $ (802,053) $ 21,501 ,TOTAL OTHER FUNDS 409 $ (27,818), $ 31,578 5,454 825)726 $ 835,341 1 $(3,405,,125,), $(2,,569,784)1 Presented by Approved as to form by David Bi by Glen R. Goo ins Director of Finance/Treasurer City Attorney 2019-10-01 Agenda Packet, Page 48 of 108 I T 1 L spun" is m"MENT A A0""* Eft' ww"f& 0 1A io, Tt /A(i N uA :5 b CITY OF C H'U LA V I STA October 1, 2019 File ID: 19-0460 .T1, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CIS LA VIS'T'A ACCEPTING THE 20,18 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE GRANT AWARD"ARD FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL, ERGENC 'MANAGEMENT AGENCY TO HIRE 1.2 FIREFIGHTERS RECOMMEND w DACTION Council adopt the resolution. SUMMARY The U.S. Department of Homeland Security, Federal Emergency Management Agency has notified the Fire Department of the fiscal year 2018 Staffing for Adequate Fire and Emergency Response(SAFER)grant award to hire 12 firefighters. The SAFER grant provides funding directly to fire departments to increase or maintain the number of trained"front line"firefighters available in their communities.The goal of the SAFER grant is to enhance local fire departments' abilities to comply with staffing, response and operational standards established by National Fire Protection Association (NFPA) 1.71.0. 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 151378 oft e State CLC A Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines,the activity is not subject to CFC .. Thus,no environmental review is required. BOARD/COMMISSION/COMMITTEE,RECOMMENDATION Not applicable. DISCUSSION On May 7,201.8 the City Council approved Resolution.201.0-062,which established commitment and support for the Fire Department to apply for the 2015 SAFER grant to hire twelve 1.2 firefighters.The SAFER grant provides funding directly to fire departments to increase or maintain the number of trained "front line" firefighters available in their communities.The goal of the SAFER grant is to enhance local fire departments' abilities to comply with staffing,response and operational standards established by NEPA.Standard 1.710. On March 22, 2019 the Fire Department applied for the SAFER grant, and on September 10, 2019 the Fire Department received notification of the grant award. The performance period of the grant starts March 1.1, 2019 and ends March 1.0, 2 0�2 3.The SAFER grant programa allows the recruitment and hiring of'firefighters to occur up to six months before the beginning of the three-year performance period. v . 01 (,) l Page 1 2019-10-01 Agenda Packet, gage 49 of 108 SAFER is a cost sharing grant with a three-year performance period. Eligible costs within the grant include salary and benefits beginning from the date of hire,including fire academy training.The grant and matching funds,are allocated as follows: PERIOD FEDERAL, FEDERAL, CITY CITY SHARE SHARE AMOUNT SHARE First-12 Months 75% $11227)429 25% $409)143 Second -12 75% $112�27)429 25% $409)143 Months, Third- 12 35% $572 800 65% 1 063 772 M , onths I I I TOTAL $3,0271658 $11882058 The Federal award amount for the complete performance period is$3,027,658. As a condition of the grant, the City is required to contribute a cost match in the amount of $1,882,058. The total project cost is $41909)716. Accepting this grant and hiring 12 firefighters is anticipated to bring significant positive impacts to the Fire Department and Chula Vista. These firefighters will be used to staff E6,0 at the new 4.0 staffing level in the Millenia development area. Historically, this area has not met response times, and the addition of another engine company staffed with 4 firefighters will significantly improve response capability. 'The Fire Department currently does not meet City, Fire Department, and/or NFPA 1710 standards in this area. As stated in the grant application,this area is compliant 29% of the time. With the addition of E601,compliance is forecasted to be 50%of the time. 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. Govt 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 Staff will return to City Council at a later date with actual costs associated with the academy, salary and benefits,and the proposed funding source for appropriation. ONGOING FISCAL IMPAC Fir Ongoing fiscal impact costs are estimated at approximately $2 million and will be budgeted as part of the normal Fire Department budget development process. ATTACHMENTS Not applicable. Staff Contact.-Harry Funs Pzige 2 2019-10-01 Agenda Packet, Page 50 of 108 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE 2018 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE GRANT AWARD FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL EMERGENCY MANAGEMENT AGENCY TO HIRE 12 FIREFIGHTERS WHEREAS, the City of Chula Vista Fire Department delivers fire, rescue and emergency medical services to Chula Vista residents and visitors every day; and WHEREAS, the Fire Department has been unsuccessful in meeting threshold compliance with City, Fire Department, and National Fire Protection Association (NFPA), 1710 response standards; and WHEREAS, the Staffing for Adequate Fire and Emergency Response Grant (SAFER) was created to provide funding directly to fire departments to help increase or maintain the number of trained "front line" firefighters available in their communities; and WHEREAS, the goal of the SAFER grant is to enhance local fire departments' abilities to comply with staffing, operations, and response standards established by NFPA 17 10; and WHEREAS, the SAFER grant will provide funding to hire and train 12 new firefighters to staff Engine 60 in the Millenia development area with four firefighters; and WHEREAS, the SAFER grant is a cost-sharing grant that covers personnel. and direct benefits with a three-year performance period, with the Federal share being $3,027,658 and the City share being $1,882,058; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it accepts the 2018 Staffing for Adequate Fire and Emergency Response (SAFER) grant award from the U.S. Department of Homeland Security, Federal, Emergency Management Agency to hire 12 firefighters. Presented by Approved as to form by Jim Geer ng Glen R. Googins Fire Chief City Attorney 2019-10-01 Agenda Packet, Page 51 of 108 I T 1 L spun" is m"MENT A A0""* Eft' ww"f& 0 1A io, Tt /A(i N uA :5 b CITY OF C H'U LA V I STA October 1 21019 File iii: 19-0461 'TITLE A. RESOLUTION of THE CITY" COUNCIL OF '"T"HE CI"T"Y" OF CHULA VISTA APPROVING THE ISSUANCE, SALE, AND DELIVERS OF MULTIFAMILY HOUSING REVENUE BONDS of THE CFS LA VISTA HOUSING AUT'HORI'TY FOR oTAY RANCH APARTMENTS B. RESOLUTION Io of THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS IN'TEN'TION TO ISSUE TAX-EXEMPT OBLIGATIONS FOR THE PROPOSED DEVELOPMENT of O AY"RANCH APARTMENTS RECOMMENDED ACTION Council conduct the public hearing,adopt resolution A,and Authority adopt resolution P. SUMMARY The Chula Vista Housing Authority("CVHA") has received a request from pieta Dousing("Project Sponsor" on behalf of otay Affordable I V8, LP to consider the issuance of tax exempt private activity bonds to finance the construction, maintenance, and operation of 175 affordable units for very low income and low income households at Otay Ranch Apartments (the "Project"). The Project is located at Main Street F'/w and west of La Media Parkway in the otay Ranch Escaya master planned community. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEA) and has determined that the Project was adequately covered in previously adopted/certified otay Ranch Village 8 West Sectional Planning Area and'Tentative Map Final Environmental Impact Report FF'IR 10-03) - SCIS No. 20,10,06209 . Thus, no further C QA review is necessary. BOARD/COMMISSION/COMMITTEE RECOMMENDATION the Housing Advisory Commission was not able to consider the Project due to timing constraints for the October 11, 2019 application deadline. DISCUSSION The Project Sponsor is requesting that the C �� e the conduit on issuer or tax-exempt private activity bonds for multi-family projects ("tax-exempt bonds") in an aggregate amount not to exceed 70 million for new construction and operation of the Project located at west of La Media Parkway and bounded by Main Prig . 2019-10-01 Agenda Packet, gage 52 of 108 East Street to the south and Main West Street to the north (Attachment 1: Locator Map). An application will be submitted by October 11, 2019 to the California Debt Limit Allocation Committee (CDLAC),the State bonding authority, and for the companion tax credits. The bond allocation and tax credit contributions will be used to substantially finance the Project. In compliance with Section 147(f) of the Internal Revenue Service Code of 1986, reflecting the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), a public hearing (the "TEFRA hearing") by the elected legislative body of the jurisdiction must be held to provide the public an opportunity to comment on the use of the tax-exempt funds to finance the Project. Proof of a public hearing to be held within 30 days of application to CDLAC is required for consideration of a bond allocation. At this time,the City Council is asked to hold the TEFRA hearing to consider whether the CVHA should issue tax exempt private activity bonds to finance the Project and to approve the issuance, sale, and delivery of multi-family housing revenue bonds by the CVHA at such time as the bond allocation is received from CDLAC. Additionally, it is requested that the CVHA adopt a resolution expressing its preliminary intent to issue bonds. Such preliminary actions are necessary in order to allow the CVHA to submit an application to CDLAC on behalf of the Project Sponsor and to allow the Project Sponsor to receive reimbursement out of bond proceeds for cost it incurs leading up to the actual sale of the bonds. If successful in obtaining a blond allocation from CDLAC, the CVHA will then consider final approval of loan documents for the issuance of bonds. Resolutions presented for the City Council's and CVHA's consideration have been prepared by Stradling Yocca Carlson & Rauth, serving as bond counsel for the City of Chula Vista and CVHA. All future bond documents will also be prepared by bond counsel. The Development Team The Project Sponsor, Meta Housing Corporation, is a for-profit affordable housing developer. Otay Affordable I V8, LLC will serve as the Administrative General Partner, with JMH Investments, LLC as the manager. FF'AH V Otay Ranch 1, LLC will serve as the Managing General Partner. At bond closing, a limited partnership, Otay Affordable I V8, LP,will be created to construct, maintain and operate the Project. 1111 NMI I IN Role FIRM /CONTACT Ownership Otay Affordable I V8, LP Managing General Partner 0.010/0 FF'AH V Otay Ranch 1, LLC ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Administrative General Partner 0.090/0 Otay Affordable I V8, LLC JMH Investments,LLC, Man Tax Credit Investor/Limited Partner 99.99% Red Stone Capital Equity Partners, LLC Property Management WSH Property Management Lender/Purchaser Pacific Western Bank ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Architect Dahlin Group, Inc. Page 2 2019-10-01 Agenda Packet Page 53 of 108 Meta Housing will be responsible for managing the construction of'the property through completion and cost certification, with a general contractor overseeing construction. Meta will also be responsible for preparation of annual property-specific budgets, marketing,leasing, overseeing property management and maintenance, income-qualification of residents, annual reporting to investor and lender, payments to lenders and provide resident services. WSH Property Management will serve as the day to day property manager. Meta Housing was selected by the master plan developer of Otay Ranch Village 8 West as their partner in developing affordable housing in compliance with the City's Balanced Communities Policy. Meta Housing has developed over 80 affordable communities, totaling 6,400 units, throughout California with the majority of the communities within Los Angeles County. Their communities include special needs housing, senior housing, family housing, and mixed-use/transit oriented developments. Otay Ranch Apartments represents the first bond and tax credit financed affordable housing development for Meta Housing in the San Diego region. The Proposed Project The Project will be built within the Escaya master planned community in eastern Chula Vista. The low- income units will satisfy the requirements of the City's Balanced Communities Program for the provision of Affordable Housing within the Escaya community. The development envisions 175 units with all units affordable to low income households. The proposed development will consist of 55 1-bedroom units, 72 2- bedroom units, 46 3-bedroom units. There will also be 2 two-bedroom manager's units. Project amenities include community rooms,property management offices,game room,outdoor courtyards,and a tot lot. The Project is ideally located for the convenience of residents. The Project is within comfortable walking and biking distance to recreational opportunities and neighborhood services and has direct access to public transportation. Nearby amenities and services include,: • Less than 1.5 miles from grocery store and other shopping; and, • Less than 0.50 mile from a planned park and elementary school. The Project total costs for both acquisition and construction is estimated at$61 million. Table 2 - Estimated Costs&Key Performance Indicators Total Estimated Costs Estimated Costs Estimated Costs per per Unit Gross Buiflfflng Sq Ft Acquisition 3)605fi09 20,603 21 Construction 34,394,391 196)539 204 Soft Costs 23,477,593 134)157 139 TOTAL COSTS $61p4771593 $351p300 $364 TOTAL Dwelling Units 175 (DUs) TOTAL Gross Bldg Sq Ft 16812 Income&Rent Restriction s P zi g e 3 2019-10-01 Agenda Packet, Page 54 of 108 Forte bond financing, Section 142 (d) of the Internal Revenue Code requires either a minimum of 20 percent of the rental units in the Project to be available for occupancy by persons or families whose income does not exceed 5O percent of the area median income (AMI) for the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the AMI.The units are made available at affordable rents established by the applicable State law. The project will exceed the affordability requirements with 173 units currently restricted as affordable for very low-income households at 50 percent of AMI and low income households at 60 percent of AMI, with two units reserved for the resident manager, see Table 3. The Project proposes to maintain the existing income and rent restrictions for fifty-five years from the effective date of the bond financing agreements. These income and rent restrictions will be outlined within a bond regulatory agreement to be recorded against the property and shall be in compliance with the CDLAC Committee Regulations and the Low Income Housing '"Tax Credit program as set forth in Section 42 of the Internal Revenue Code in 1986, as amended ("LIHTC IP) Table 3 -Affordability&Estimated Monthly Rent/Income (Effective April 24,201 9) Unit Type dery Low @ 50%AMI Low Income @ 60%AMI No.of CTCAC Max Annual No.of CTCAC Monthly Max Annual Units Monthly Income Units Gross Rents Income Gross Rents 1 Bdrm/1 Ba 18 $ 1,003 $ 371450* 37 $ 1,203 $44)940* 2 Bdrm/1 Ba 0 $ 1)203 $42)800* 72 $ 1,444 $ 51,360* 3 Bdrm 0 $ 1,391 $48J50* 46 $ 1,669 $ 57,780*_ IOTA L IMUS 18 155 *Assumes 1 person occupying a 1-bedroom, 2 persons occupying a two bedroom, and a three persons occupying a three bedroom. Max Annual Income would increase depending on actual occupancy. Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual tax credit certification. Compliance with strict property management policies and procedures will ensure that income and rent restrictions will be maintained for the full 55-year compliance period. Proposed Housing Bonds/Notes Multifamily housing financing often involves the issuance of tax-exempt Multifamily Housing Revenue Bonds/Notes (Notes) on behalf of private developers of qualifying affordable rental apartment projects. The advantages of tax-exempt financing to developers include below-market interest rates, longer loan terms, and access to Low-income Housing Tax Credits (Tax Credits) - features that are not available with typical conventional multifamily housing mortgage loans. Utilizing the CVHA's tax-exempt borrowing status, the lower tax-exempt interest rate financing (and making Federal four percent Tax Credits available) is passed on to developers of affordable rental housing. The CVHA's ability to issue tax-exempt bonds/notes is limited under the U.S. Internal Revenue Code. To issue tax-exempt bonds/notes for a development, the CVHA must first submit an application to the CDL,AC for a tax-exempt bond/note allocation. Prior to submitting applications to CD,LAC, developments are brought before the City Council and the CVHA. CVHA bond inducement resolutions must be obtained prior to a CDLAC application submittal. A Tax Equity and Fiscal Responsibility Act (TETRA) City Council P 4 2019-10-01 Agenda Packet, Page 55 of 108 resolution must be secured approximately 30 days, before the CDLAC allocation meeting. These are the actions being considered by the City Council and CVHA with this staff report and associated Resolutions. The Project Sponsor intends to submit an application to CDLAC for a $43,0001,0100 tax-exempt bond/note allocation by October 11, 2019 and will apply to "ECAC for a Tax Credits allocation in November 2019. CDLAC will make its final awards in December 2019. The Notes will be used for new construction financing.The Notes will meet the requirements of the CVHA's Multifamily Housing Revenue Bond Program policy,as well as State and Federal tax law. Proposed Financing The 'Tax Exempt Multi-Family Revenue Bonds and Low Income Housing Tax Credit financing will support the majority of the estimated $61 million total development cost of the Project. The Project Sponsor has requested the CVHA consider the issuance of' a series of' tax-exempt obligations with a total aggregate principal not to exceed $70 million in both a tax exempt and taxable series. Pacific Western Bank will provide a construction-converting-to-permanent loan ('"l ax-Exempt Series). Another $4,000,0100 is anticipated in a Taxable Series. The $70,000,000 maximum bond allocation is approximately 63 percent higher than the amount for which the Project is being underwritten for financing,which is $43,000,000. This maximum allocation represents a cushion to account for possible increases in the bond amount due to increases in construction costs or decreases in the assumed interest rate. The bond amount that is ultimately issued will be based upon project costs, revenues and interest rates prevailing at the time of bond issuance. The Project Sponsor will also apply for approximately$28 million in Low Income Housing Tax Credits. Red Stone Equity Partners will be the Tax Credit Investor. The balance of needed funds for the construction and permanent financing of the Project is proposed to be provided by deferred developer fee. No financial assistance from the City or the CVHA is being requested for the Project.A summary of'the estimated sources and uses submitted by the Project Sponsor is provided in Attachment 2. The bonds will meet all requirements of the CVHA's Multifamily Housing Revenue Bond Program and will fully comply with the City bond disclosure policies. Final approval of the issuance oft e bonds and the related bond documents will be presented to the City and CVHA for approval at such time Project Sponsor is successful in receiving a commitment from CDLAC for a bond allocation. Article 34 Article 34 of the California Constitution requires that voter approval be obtained before any "state public body" develops, constructs or acquires a "low rent housing project". The City of'Chula Vista obtained voter approval on April 11, 1" 78 and subsequently on November 6, 2006 with the passage of Proposition C, which authorized the development, construction and acquisition of housing for persons of low-income. With the 175 total units of the proposed Projects, there remains a balance of 967 units under the City's current authority to facilitate these activities. Page 5 2019-10-01 Agenda Packet, Page 56 of 108 DECISION-MAKER CONFLICT' Staff has reviewed the property holdings of' the City Council and the CVHA 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 or CVHA member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR.FISCAL IMPACT Bond Financing is a self-supporting program with the borrower responsible for the payment of all costs of issuance and other costs of the bonds. The CVHA will receive compensation for its services in issuing bonds by charging an origination fee equal to 20 basis points (0.20%) of the total original principal amount of the bonds to be issued, with a minimum fee of$15,000. The issuance fee estimated to be paid to the CVHA by the owner will be$86,000 ($43 million x 0.01020). ONGOING FISCAL IMPAC IT The Multifamily Housing Revenue Bond program is self-supporting. Staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee of$17,000, paid to the CVHA by the owner. ATTACHMEN'TS I. Locator Map 2. Sources and Uses 2. Disclosure Form Staff Contact: Leilani Hines, Housing Manager Chula Vista Housing Authority P zi g e 6 2019-10-01 Agenda Packet, Page 57 of 108 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CCHUL VITT APPROVING THE ISSUANCE, ALE, AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS OF THE CCHULA VISTA HOUSING AUTHORITY FOR OTAY RANCH APARTMENTS WHEREAS, the Chula Vista Housing Authority (the "Authority" or"CCVHA")) intends to issue not to exceed$70,000,000 aggregate principal amount of multifamily housing revenue bonds (the "Bonds") to finance the costs of developing a 175-unit multifamily rental lousing project known as Otay Ranch Apartments located east of La Media Parkway and bounded by blain East Street and Main West Street within. the Otay ranch. uscaya master planned community (the 4`Proj ect") in the City of Chula Vista, California(the "City"); and WHEREAS, the project will be owned anal/or operated by Otay Affordable l V8, LP, or another limitedpartnership affiliated with Meta Housing Corporation (the "Owner"") and WHEREAS, pursuant to Section 147(f)of the Internal .Revenue Code of 1986, as amended (the "'Code"), the Bonds are required to be approved, following a public hearing, by an elected representative of the governmental unit having jurisdiction over the area in which the project is located.; and. WHEREAS, the project is located wholly within the geographic jurisdiction of the City; and WHEREAS, the City Council (the "City Council") is the elected legislative body of the CCity, an WHEREAS, the City has caused a notice to be posted on the Authority's primary public website in an area used to inform residents about events such as public meetings located at htt �s://www.cbulavistaca. ov/de artments/Ana or-counciI/counc I-nmeeti -a enda, and htti)�s://www.chulavista ov/dep artments/develo meat-services/ lannin / ublic-notices/ ub 1i c- notices on September 23,2019 to the effect that a public hearing would be held by the City Council on October 1, 2019, regarding the issuance of the Bonds by the Authority; and. WHEREAS, on. October 1, 019, the City Council held said public hearing, at which time an opportunity was provided to present arguments bath for and against the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Nista, as follows: Section 1. The City Council does hereby find and declare that the above recitals are true and correct. Section 2. pursuant to Section 147(f) of the Code, the City Council, hereby approves the issuance of the Bonds by the Authority in one or more series, in an aggregate principal amount 2019-10-01 Agenda Packet, gage 58 of 108 Resolution No. Page 2 not to exceed $70,000,000 and with a final maturity not later than 55 years from the date of issuance to finance the acquisition, construction, and equipping of the Project. It is the purpose and intent of the City Council that this Resolution constitutes approval of the issuance of the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f). Section 3. This Resolution shall. take effect from and after its adoption. Presented by Approved as to form by Kelly G. Broughton, FI LA Glen R. Googins Director of Development Services City Attorney 2019-10-01 Agenda Packet, Page 59 of 108 IkEo SOLUTION NO. RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY REGARDING ITS INTENTION TO ISSUE TAX- EXEMPT OBLIGATIONS FOR THE PROPOSED DEVELOPMENT OF OTA Y RANCH APARTMENTS WHEREAS, the Chula Vista Housing Authority (the "Issuer" or "CVHA") desires to assist Otay Affordable I V81 LP, a California limited partnership, or another limited partnership affiliated with Meta Housing Corporation (the "Applicant") in financing the costs of developing a 175- unit multifamily rental housing project known as Otay Ranch Apartments, as described in Exhibit A attached hereto and incorporated herein (the "Prof ect"); and WHEREAS, the Issuer intends to assist in the financing of the development of the Projject or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), which Obligations are expected to be issued pursuant to Chapter I of Part 2 of Division 24 the Health and Safety Code of the State of California; provided, however, that this Resolution shall. not authorize the issuance of the Obligations and provided further that neither the faith and credit nor the taxing power of the Issuer shall be pledged to repay such Obligations if, and when, authorized; and WHEREAS, prior to the issuance of the Obligations the Applicant expects to incur certain expenditures with respect to the Project from its own available monies which expenditures it desires to have reimbursed from. a portion of the proceeds of the sale of the Obligations if, and when, issued; and W. EREAS, Section 146 of the Internal Revenue Code of 1986, as amended (tlae `Code"" limits the amount of multifamily housing revenue bonds that may be issued in any calendar year by entities within a state and authorizes the governor or the legislature of a state to provide the method of allocation within the state; and W. EREAS, Chapter 11.8 of Division I of Title 2 of the Government Code of the State of California (the "Government Code"') governs the allocation of the state ceiling among governmental units in the State of California having the authority to issue multifamily housing revenue bonds; and W. EREAS, Section 8869.85 of the Government Code requires a local agency to file an application with the California Debt Limit Allocation Committee ("CDLAC"" prior to the issuance of multifamily housing revenue bonds; and WHEREAS the Issuer desires to apply to CDLAC for an allocation for the Prof ect. NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CHULA, VISTA HOUSING AUTHORITY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: 2019-10-01 Agenda Packet, Page 60 of 108 Resolution No. Page 2 SECTION L The Issuer :has received an application for the financing of the Project on behalf of the Applicant (the "Application"). The Applicant will incur costs with respect to the Project prior to the issuance of the Obligations. The Issuer hereby states its intention and reasonably expects to reimburse to the Applicant for such costs with proceeds of the obligations-, provided, however, that nothing herein: obligates the Issuer to issue the obligations or provides the Applicant with any legal right to compel the issuance of the Obligations, which decision remains in the final discretion of the Issuer. Exhibit A describes the general character, type, purpose, and function of the Project. SECTION 2. The reasonably expected maximum principal amount of the obligations is $70,000,000. This Resolution is beim adopted no Later than sixty (60) days after the date (the '.'Expenditure late or bates") that the Applicant will upend moneys for the portion of Project costs to be reimbursed from proceeds of the Bonds. The expected date of issue of the .Bonds is within eighteen 1 ) months of the later of the Expenditure Date or Dates and the first date the Project are placed in service and, in no event" later than three years after the Expenditure late or Dates. SECTION 3. Proceeds of the ends to be used to reimburse for Project costs are not expected to be used directly or indirectly to pay debt service with respect to any obligation or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 4. This Resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than. the Obligations are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the Issuer or any related party) pursuant to their budget or financial. policies with respect to the portion of the Project costs to be financed with the Obligations. This Board of Commissioners is not aware of any previous adoption of official. intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures relating to the project and for which tax-exempt obligations :have not been issued. SECTION 5. This Resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation: §1.103-8(a)(5) and Treasury Regulation, 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of expenditures incurred prior to the date of issue of the obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. SECTION 6. The officers and employees of the Authority are hereby authorized and directed to apply to CDLAC for a portion, of the private activity bond allocation set aside for the calendar years 2019 or 2020 for the Project in an aggregate amount not to exceed $70,000,000, 2019-10-01 Agenda Packet, gage 61 of 108 Resolution No. Page 3 to collect from the Applicant and bold pursuant to CDLAC requirements the required CDLAC deposit for the requested allocation, and to certify to CDLAC that such amount has been placed on deposit in an account in, a financial, institution. Because the amount of private activity bond allocation is limited, such officers are also authorized to resubmit the application to CDLAC one or more times during the calendar years 2019 or 2020 in the event the application is denied by CDLAC. SECTION 7. The officers and employees of the Issuer are hereby authorized and directed,jointly and severally, to take any actions and execute and deliver any and all documents which any of them deem necessary , with the advice of City Attorney, in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers and employees are hereby ratified and confirmed; provided that the terms and conditions under which the Bonds are to be issued and sold must be approved by this Board in the manner provided by law prior to the sale of the Bonds. SECTION 8. All the recitals in this Resolution are true and correct. SECTION 9. This Resolution shall. take effect immediately upon its adoption. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services Legal Counsel 2019-10-01 Agenda Packet, Page 62 of 108 EXHIBIT A DESCRIPTION OF PROJECT A multi-family rental housing project totaling 175 units known as "Otay Ranch Apartments" apartments located west of La Media Parkwayand bounded by Main East Street and Main West Street in the Otay Ranch Escaya master planned community in the City of Chula Vista, California. 2019-10-01 Agenda Packet, Page 63 of 108 LoiCat r Mai p w IY J A`'` � ap t r nrr i f Pr v e 'Q ' G IQ a cr P f J, !L q `l f, Nlr r r w itAn 1fiJ ,v y q,. s r ( f I t w f1N5//11,�' is 7 «r A it 00 i-i r 9, 1 1 «'fi r « q f, P (✓'/ 1/� If Ir r def l ,, f � it'�;, "" 1 "s: J 4. f i '. ", °,�, �n, ",r ,e ��,ww�u✓+,�', ��P. r r/r e « rpd rill z NSIJ J ti, r„ a 'it r, r ° t It ttil d" , ,r r ✓ I, It ,,af ,. "rIN; ' w i % l 1 a r f r 1pr, �1, o,. « "" nrrnwrvw✓ww Ir J, I IN Of , ,r„ v r Nw"/A,'A 5'yr,'vY' %!"II f 'Pd e.; Ir 1. t xMw" ,. 1Nr.rYY "[ 1 ,rn,"",. ( ,r �, w, «. 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'/,, :L, IJ u:J >.. r.If wI'm ,.,n rP D1.J.. r/ ,,;' rlN UllG» F, r p; 'h is j ,,;%, I I ;r" alwlw i«r MDIs /, %.rl P?;wy r«/» e J iue 4i7 A wadwu 'Dr, 1 a -;Gd(,¢(!v1°!wDr r r;,I,"Ji"r`w /r,rr"�f,; if J, � r1f1 I /' ,wl P";w11 rlrfl f d«ee di 4w` /` ° ) rv,'tPr' r ( if ^e r vvAe r/ J uPc a!„ "r", r J. , 1:;.. ' w,,,.. "„ % l I'., ar,r r/ ,r Jp✓ rwn= i' 1Wmf, �1?rvr�»,w A I �rl /,';.�I, I ,rl+ j!v wY Yr 'N'''rowwu:.IY ews N ib✓w+/r "' ( ','. J� �i ;.. ru ",,, Y»"< h1: w wwwmvrw«„w»r`m" �YlJ ,� ,r�P� ,"w^'w r,P; �� i��; � 'J/ '„/ r«✓'N'nn Y m Ir^ ,: rrYr'm ,r!»r„or�l1� ,it. :iv rrmv"!! ,Ir'd /, ,ln (yP06' I' h r/ Irc«rr rwwVO w »wf raNN"r, ruflfilVWIViImr' I ✓ r/,n IU � 1 �N, �wr: �r,G. N,"":,.. 'fcr;. "„ ;,1 r �"wry miWdk'"'w ,,,, „wl'wrrl�1VY'""w», �,: ,!✓J , ,,J, Ur.f r � 1�" %yp7�ll; , «", ,i, vr' /r ,,,,;,,; wl; ^,� /ry ''1 »",�•;rwra,�vYnr°wry"',"(1 re , :a...... uxrur,. III( J.. """i'1 rn r%wIVrt 4� Pofitall ds rli1.. v, n>.,,,,, r // ri ,'•u'. "I; III % •I': )il�)4r, ",,,. BIW': :,, mn«,/ 1� »ur,adY "y. DNw''"IrPr Olrr' n : t ra r W 1 rr„rr» FI ��anw»Iwwv»,rrrwalw" olr." "wwrarr1111r,.�n.r,a re.. „w,"✓»,r...:_, 'I t I 1�A. ! ` � Ifs wWr' ,,,,,w r»,f, 1�f. "vim";' dJl6 ,rN•Mr< .:�, :wwwwww'I "„ a ,,�Pr' b i Ap ;d'"f° 1� « ' r ! Qfuvw i,%I @ 'UT w;,,vwuw „r;✓' iY I is JIG✓r,,. rN,P,rw �wrvdN�ru, iw,r r 1"M. r :;,,r»r,r ,I "�Yr rtrr r� ,,71wbY'Y,(u'WR'''I rr�,r 14 °%"" uuv. �»rm.�'I✓r/�l� / is 7rU „Ijw •r, Frwm eNlav« mm V` r / w rw / rr rr r „ J no"rra mrrwrvm'I Wm'u'rm'wrwrxwawvmrrr'r rrrr««rrrrrrrrrrrrr -.rrrr ra--r«««.. ruarrrrrraar �rmrrr r««« «rim Imn mwwurrrw ...rrrr wwaam uwur ry mar rvoor amrrrrr., rwriivvol�kMwwww rc��mmu� 11 rm' wwwwllf� mlwww wl a ma.«mrmruuwmuww.nm wrlwnmmrt ulwWrvumo ourrvrvmrvwrwwwwwrvw wwwwuwwww lwnwwwwwww 11111" mwwwwwwwwwm mwwwwwmwww ImmlmmwnmrlmWmrn" wwwwwrwmrw. ,.mwwwwwwwwwwww'mwmw'mwrmmmrmwwwrvrvrrww'mwmwrmmmmrvrw'mrwmrwr�lf Z 'L'�= - ale a-g Attachment otay Ranch Apartments 175 Units Sources and Uses Cost Funds Project Cast: Acquisition $3,605,609 Structures & Site Improvements $34,394,391 A LCL E 21329,800 Financing Fees and Interest $3,465,,917 Legal Fees $225,000 Reserves $820,345 Permit Processing & Dev Impact Fees $6,165,000 Developer Fee $7',025,000 Misc. (acctg, marketing, reports, studies, etc.) $1,346,532 Contingency $2,100,000 Total Development Costs 61,477,594 Sources of Funds Perm Loan 1st TD $ 29,602,000 Federal Tax Credit Equity $ 20169,81338 State Tax Credit Equity $ 71402,256 Su btota 1 $ 5717021594 Subsidies Deferred Developer Fee $ 31775)000 Su btota 1 $ 317751000 TOTAL 1,477,5 4 Project Dus 175 Project Cost $ 5114771594 Cost per Unit $ 351,301 per unit EM jj -Aq)* epu mary Proforma 20190920 Revile D le IVIS110 Housing Di n Development Processing A USU ]HIONIGIAPP wit V STA AFFORDABLi LICATION Pa CHLS iii ureStatement Pu� uantt,oC,'ItyCo,un�i "Il I Poficy,101-01,, priiort,o anylaction on a�mait,,ter�t,h,�at�r�,e�quir,esd*lscre�ti�onary act"on bythe Caty Council, Planning Commission or, other offidal legislative bodylof�the City,, a #,, 41 statement of disclosure of cert,ain ownerships, finalnclial Interest's,1, paymients, and campaign, � lip contributions,rin ust ble,filed.,The f�dilow'*Ilng'ln�formatio�n must be disdose& bj ect, of' L Ust thle names,of all plersion,s* having,afinanic'141 inte; st 'on the project that's the sV the appficationilill, project o�r contract (e.,g., owner, applificant, contractor�,, subcont ractorill, Id., material su ,PP 1sued., Own le r/Develo per—MNeinlig Corpotation Sponso, —Otay,Affordabile I V8,0 LP AG P—OtayAfford a N e 1 V8,LL.0 M G,P—F FA H V ON y�Ra n Il LLC t the, names of a,11 poration 2 ils a cor, tn e,rsh'i p, !ts. If anly person*' ' "dentified n section 1. or par, I,nd"I'viduals with an Investment of'$12000 or morein'the entity. N/A 3. If any person* identified i"nsectillon 1L. isa non-profit organization or trust., list the names of any person, who i's the director of the non-profit organization or thie namesil of the trustee,,, be neficil a ry,a�nd trustor of th e trust. Deborah Willard, President 4. P lea se,icle ntilfy eve ry,pile rso n,* 'in cl u dii ng a ny age is employee s,, co n,s,u Ita nts,,o r I nde pe nde nt contractors,,whom you have authorized to represent youbefore the City''In'thips matter'll, DahlInArchitects HunsakerCivill Engineer ................................................ 276 Fourth A'Yenuile Chula Vista California 9 1910 www.chulavistaca.gov (619) 69,1-5047 2019-1O-0I Agenda Packet, Page 66 of 108 1400l D e� vi le o p rn e n t S, e, r v c e, s Ci le P, a r 't in e n t Hoijus,ing DSIon Development Prote,s,sing CHM%STA AFFORDABLE HOUSING APPLICATION 1! Part" V D A isclosure Statement Page 23 5. H�ia,s,an,yp�erso,,n*'idenit'i'I'fledl'nli.,2.,,,,,,3,.,o,r4.,,,,ab,,ove,,,o,,r,o,therw,"�'i,'seass ol,c,ia�lite,,dw�ithth�sco�n�tract, project or,application, had ariiy�financlial dea ling"S with an officiall** of t1he Cityista a *t relates to,thills,contract, pr'"'ect or apipflication Within the past 12 mon'ths? s I i , # Oil E] Yes If yes, bri"efly,diescribe the nature,of the,financial interest,the official" may have 'in this contract., 6. H persorii* anyone idlentifited in 1.,,2.p 3.,,or,ii iabovell,or otherwilse associatedl with this, contract, projectpllicatioq, made a cign,contribuflion of more than$112,50 witbin the past twelve(12) monthstio an official olfAfte Clity of'Chula Vista? 13 Y'e s 01 Noll If Yes, briefly describe the, nature of the firiancial "Interest the officliial** may have In thIS, contraict. 41, Ct ISO I I 7. Has,any,persorii*jidentiffledV in 1., 2.1 3,.,,or 4.,above,or otherwise,as ciat lid,with th s contra project or application, provided moretban, 440(or an Item of equ'livaileint:valuie' fificial"olf the City,of Chula Vista in the past �(12)mmffis?,(This includes any,payrin�ent that confers a person.al benefit,on the re-cipient,loa rebate or d'scount,Ith e pri*n 0 1 , of anytWng of vaiue,,,m,oney to retire,a iepl debt,gift,loan,etc,.,,) iEl Yes M No I i 'iteillin provi"Ided? IIS wh ich offic i a I a nd w hia it wa s,t h e na t ure-of 1 HasaE on* 'I'dent'lif�,,i�edilnil,,,,2,,,, 3,,o,r4, aibove,,lorotherw�i's�eassoc�'i�atiedwl'tht'h�,I,s,c�,o,n�tra�c't,,j project or,applicatio in, be-R,ri a,source of'income of$5001 or more to,an official"of the,,City ofthulia, Vista in thepasittwelve(12)months? El Yes 0 Nio I tj if yes,whichi offic"al" and the nature of t'he fterrill provided? 276 Fourth Avenue Chula Vista Coliforniia 91,191 Ci [ www.chu'lovistaca'.gov (6 19) 69 1-5047 2019-10-01 Agenda Packwelt Page 67 of 108 Quem Division Development Processing CITY OF CHHUIA VISTA AFFORDABLE HOUS]ING APIP IC SIO Part Disclosure SPage 2 9/23/19 ............ ............................................... Date ig�a re C r r�ac r A.....................ppli a Chris Maffris Print ortype name of Co ror"/'Ai , Person is identified y individual, firm,co-partnership,joint venture,, social club, fraternal organization, receiver, syndicate, county, city, m uu,n idly, district, r other political subdivision,or any other group or combination acting as a unit Off l l % n lu d'es, but its not limited r, Council' member, Planning Commissioner, Member board, commission, or committee ofthe City, and City employees or sty members. This Disclosure Statement must be completed ae time theprojecta lira i n,or contract, is,sme ' to City staff for processing, and updated ulin one week prior to,consideration, ffie legislative 276 'Furth Avenue ul Vista Californilb 91910 www.c` ul vis c . 19 69 1-5047 2019-10-01 Agenda Packet, gage 68 of 108 I T 1 L spun" is m"MENT A A0""* Eft' ww"f& 0 1A io, Tt /A(i N uA :5 b CITY OF C H'U LA V I STA October 1 21019 File ITS: 19-04,56 T °'uL A. REPORT AND REQUEST FOR CITY COUNCIL DIRECTION REGARDING ACCESSORY" DWELLING UNITS AND JUNIOR ACCESSORY"DWELLING UNITS B. ORDINANCE of 'TIDE CITY of CHULA VISTA AMENDING CHULA VISTA. MUNICIPAL CODE SECTIONS 19.58.022 (ACCESSORY DWELLING UNITS) AND 1.9.58.023 (JUNIOR ACCESSORY DWELLING IN UNITS) TO REMOVE THE OWNER OCCUPANCY REQUIREMENT (FIRST READING) RECOMMENDED ACTION Council provide direction as it deems appropriate and place the ordinance on first reading. SUMMARY In January 2017, the State of California enacted several laws designed to reduce barriers to the development of affordable housing, specifically, Accessory Dwelling Units (ADUs). In response to these legislative actions, the City Council approved ordinances amending various chapters of the Chula Nista Municipal Code (CVMC) relating to the development of ADUs and Junior ADCs (JADU,$). The City Council has requested a report regarding ADU fees and related issues. ENVIRONMEN°'u L 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 10 as defined under Section 1.5378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15i0,601(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. u BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION At the March 12, 2019 City Council meeting, the Council approved a referral directing staff to examine building fees for ADUs. 1 l Page 1 2019-10-01 Agenda Packet, gage 69 of 108 ADUs and JADUs are alternative housing models,commonly known as secondary units,in-law units,granny flats, or backyard cottages. ADUs provide complete independent living facilities for one or more persons and may be attached to an existing single-family residence or detached. In contrast, JADUs are contained within an existing single-family structure, and may share sanitation facilities with the existing structure. For both ADUs and JADUs,the City requires the property owner to reside in either the existing single-family structure or the accessory unit. The following describes AIT regulations currently in effect and the various fees that are assessed by the City of Chula Vista on AIUs and JADUs, as compared with other local jurisdictions. A number of possible modifications to regulations and associated programs are also described,for Council's consideration. Existing ADU Regulafions In order to reduce barriers and create opportunities for residential property owners to build accessory dwelling units as affordable housing stock, the State of California enacted Senate Bill 1069, Senate Bill 2406, and Assembly Bill 2299, effective January 2017. In January 2018, additional bills were enacted (Senate Bill 229 and Assembly Bill 494). Each bill is discussed in further detail below. Senate Bill 1069 amended the California Government Code to include the finding that ADUs offer lower cost housing to meet the needs of existing and future residents,, and that they represent an essential component of California's housing supply. It further stated that it was the intent of the State Legislature that the provisions of a local agency AIT ordinance not be so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of homeowners to create ADUs in authorized zones. Senate Bill1069 modified existing Planning and Zoning Law to include the following provisions: • Replaced the term "second unit's with"accessory dwelling unit'. • Prohibited the imposition of parking standards for ADUs under specified circumstances; • Required ministerial approval to create existing space within a single-family dwelling or accessory structure for ADUs; • Prohibited local agencies from requiring the installation of a new or separate utility connection between the ADD and the utility,or requiring a connection or capacity fee; and • Established various development standards. Assembly Bill 2299 established State law authorizing local jurisdictions to create an ordinance with similar provisions to those included in Senate Bill 1069, with an added provision to reduce or eliminate parking requirements. Senate Bill 2406 established State law for the provision of JADUs within existing single-family residences. Key provisions include: • Prohibited parking requirements; • Limited the number of JADUs to one per single-family residential zoned lot with an existing single- family residence; • Allowed for owner-occupancy requirements, unless the owner is another governmental agency, land trust, or housing organization; and • Established various development standards. Pzige 2 2019-10-01 Agenda Packet, Page 70 of 108 Enacted in January 20�18, Senate Bill 229 refined provisions previously established with Senate Bill 2069 and Assembly Bill 2299 by allowing ADUs in zones that allow a single-family or multifamily use with a proposed or existing single-family dwelling. Assembly Bill 494 also refined the previous bills and is similar to Senate Bill 229, but added flexible setback requirements for existing garages, limited parking requirements to a maximum of one space per ADU or bedroom, whichever is less, and further defined the accessory structures that could include an accessory unit. In response to the actions of the State, the City Council adopted Ordinance 3423 in April 2018 amending various chapters of the CVMC relating to the development of ADUs and JADUs and Ordinance 3424 waiving certain fees. Ordinance 3423 made the following key changes to CVMC Chapter 19 (Planning and Zoning) to comply with State law: Changed nomenclature from Accessory Second Dwelling Unit to Accessory y Dwelling Unit; • Allowed ADUs on single-family and multifamily zoned lots developed with a proposed or an existing single-family dwelling; • Eliminated the minimum lot size requirement; Permitted a maximum ADU unit size of 1,200 square feet- not to exceed50% of the primary dwelling,whichever is less; Eliminated the garage replacement requirement, when the garage for a primary dwelling is converted to an ADU; Allowed replacement parking in any configuration,including tandem parking; • Eliminated parking requirements for ADUs located within 1/2mile of public transit; Allowed existing detached garages in the rear yard to be converted to an ADU, and maintained the existing setback; Required ADUs above a detached garage to maintain a minimum five-foot rear and side yard setback from property lines; Permitted attached ADUs,subject tothe same development standards as the primary dwelling; • Allowed for ADUs to be subject to design standards; • Allowed local agencies to require owner-occupancy; and Allowed JADUs to be located within the existing dwelling (i.e. converted bedroom), not exceeding 500 square feet,with no parking requirement. Ordinance 3424 amended CVMC Chapter 3.32 (Residential Construction Tax) to exempt ADUs and JADUs from the City's Residential Construction Tax (RCT) and amended CVMC Chapter 17.10 (Parklands and Public Facilities) to waive the assessment of Parkland Acquisition and Development (PAD) Fee for ADUs and JADUs. Assuming a one-bedroom ADU in western Chula Vista, classified as multifamily, adoption of Ordinance 3424 reduced the fees due for that unit by nearly$10,0001 ($250 reduction in RCT and$9,566 in PAD fees waived). In November 2018, the Council took further action to reduce the fees applicable to ADUs by adopting Ordinance 3448. This ordinance removed the requirement in CVMC Section 19.58.022(C)(9) to install separate water and sewer connections for new detached ADUs. By removing this requirement, the City removed the need to charge water and sewer connection fees for ADUs ($3,892 reduction in Sewer Capacity Fee). P zi g e 3 2019-10-01 Agenda Packet, Page 71 of 108 ADU and JA DU Fees The cost to permit an ADI or JADU varies based on the type of unit and the complexity of the existing single-family structure. The City collects intake and plan check fees upon permit application. Inspection fees are collected upon permit issuance, and development impact fees may be paid anytime between permit issuance and final inspection. Intake, Plan Check&Inspection Fees Intake, plan check, and inspection fees charged by the City for a typical detached 500 square foot ADU are as follows: Table 1 -Typical ADS]Intake,Plan Check,and Inspection Fees 111111NEEMEMEEM =2 Intake Fee $ 546.01 Building Plan Check Fee $ 1)474.21 Fire Prevention Plan Check Fee $ 298.98 Building Inspection Fee $ 2)941-66 Total $ 5)260.86 Fees for a similar ADU structure from neighboring jurisdictions are provided below: Table2 -Fee Comparison 1� 1111111111111110 1111111111 Imperial Beach Oceanside IIr fN S City of Diego San Marcos $ 1,358 National CityIIIFIIiIIIIIIIIIIIIIIIIIIFIIiIIIIIIIIIIIIIII Carlsbad 11584 Chula Vista Solana Beach 21321 Vista La Mesa2,760 , Coronado Del Mar 21778 Del Mar, Coronado 31666 Vista 4,137 La Mesa Chula Vista 51261 Solana Beach National City 6,0100, Carlsbad City of San Diego 61167 San Marcos Oceanside 6,347 $20000 $4)000 $6)000 $80000 Imperial Beach 6,x"301 Development Impact Fees In-Lieu Fees, CapaciV Fees, and Taxes In addition to the above permit fees, the City also assesses development impact fees [DIF"s) on all new residential and non-residential development, including ADUs and JADUs. DIFs are exactions charged by local agencies in order to defray all or a portion of the cost of new public facilities required to serve new development. DIFs fund only capital projects and purchases; they cannot be used to fund ongoing maintenance or operations of facilities. P zi g e 4 2019-10-01 Agenda Packet, Page 72 of 108 Adopted by ordinance oft City Council,the legal structure for the City's DIF program is based on Section 66000 of the California Government Code (the "Mitigation Fee Act") and relevant case law. This legal framework requires that DIFs charged by the City bear a reasonable and roughly proportional relationship to the development project impacts being mitigated. Each of the City's DIF programs relies upon a nexus study that identifies the impacts attributable to new development, the capital program necessary to mitigate those impacts,and then apportions the costs of that capital program to new development. DIFs are approved by ordinance of the City Council, with the Public Facilities Development Impact Fee (PFDIF codified in CVMC Chapter 3.50 (Development Impact Fees to Pay for Various Public Facilities) and the Eastern, Western, and Bayfront 'Transportation Development Impact Fees (TDIFs) codified in CVMC Chapter 154 (Transportation Development Impact Fees). The Traffic Signal Fee is assessed citywide on all new development (respdential and non-residential) and is authorized by City Council Policy 478-01 (Participation by Private Developers in the Financing and "or Installation of Traffic Signals). Additional DIFs may be assessed for trunk sewer and pedestrian bridge construction purposes, depending on the geographic location of the unit. In addition to DIF's, new development in the City is also charged Parkland Acquisition and Development (PAD) In-Lieu Fees, Sewer Capacity Fees, and a Residential Construction Tax. Each of these charges is authorized by California law. The PAD fee relies upon the legal authority granted to local agencies in Section 66477 of the California Government Code (the"Quimby Act"), and is assessed on all new residential development in the City (single-family, multifamily, and mobile home). The City's PAD ordinance is codified in CVMC Chapter 17.10 (Parklands and Public Facilities). The Sewer Capacity fee is authorized by Section 5474 oft ae California Health and Safety Code and is collected from any owner or person making an application to develop any residential commercial, industrial or other property in the City. The City's Sewer Capacity Fee ordinance is codified in CVMC Chapter 13-14 (Sewers - Fees). The Residential Construction Tax is imposed pursuant to the taxing power of the City and is codified in CVMC Chapter 3.32 (Residential Construction Tax). As previously described,the City Council has acted to waive and/or exempt ADUs and JADUs from the payment of these specific fees. The following assumptions are applied when assessing impact fees on ADRs and JADUs: The PFDIF is assessed using the multifamily rate; Transportation DIFs are assessed using the medium-density residential rate; • The Traffic Signal fee is assessed using the medium-density residential rate; Pedestrian Bridge DIFs are assessed using the multifamily residential rate. In addition to assessing DIFs for the new ADU/JADU using the multifamily or equivalent) rate, we also assume a reduced impact for the residents of the existing structure. In effect,we view the entire parcel as a medium-density multifamily residential project for impact fee purposes when an ADU or JADU is, added. A DIF credit is calculated by comparing the reduced fees that would have been due for a medium-density multifamily unit with the fees that would be collected from a new low-density single-family unit. This credit is then applied to the fees calculated for the ADU/JADU. As a result, new ADUs/JADUs pay less than would otherwise be due for a traditional multifamily unit. The following table summarizes the DIF's, in-lieu fees, capacity fees, and taxes currently assessed on ADUs/JADUs, including the application of credit forte existing use. A comparison with the current fee P zi g e 15 2019-10-01 Agenda Packet, Page 73 of 108 applicable to new single-family dwelling unit (DU) construction is also provided for reference. New rates effective October 1,2019 are provided. Table 3 -Current ADU/JADU Impact Fees ME EM Adopted Fee Net M per Slingle- Existing ADU/JADU ADU/JADU Fee Item Famfly DU Uniot Credi't Fee Fees,Due Public Facilities DIF $ 11,175 $ (760�) $ 101�569 $9�1809 Western Transportation DIF 4)474 (895) 3)5�79 2)684 Traffic S,ignal Fee 406 (81) 324 243 Sewer Capacity Fee 3)89�2 Parkland Acquisition&Development Fee 13o013 Residential Construction Tax 450 Total Impact Fees and Taxes $ 33�410 $ (lo736) $ 14A72 $ 12�736 Adopted Fee Net per Sm,gle- Exi'sting ADU/JADU ADU/JADU Jee Item Famfly DU Un wit Credit Fee Flees Due Public Facilities DIF $ 11J75 $ (760) $ 10�569 $ 9o8O9 Eastern Transportation DIF 14�705 (2)941) 11Y764 8y823 Traffic Signal Fee 406 (81) 324 243 Sewer Capacity Fee 3y892 - - - Parkland Acquisition&Development Fee 20,695 Residential Construction Tax 450 - - Total Impact Fees and Taxes $ 51�323 $ (3)782) $ 22�657 $ 18�875 Neighboring jurisdictions have taken a number of actions related to development impact fees assessed on ADUs. As of the drafting of this report,the following programs are in place: Vista waives development impact fees for ADUs that qualify as affordable housing units; Escondido waived development impact fees for all AD,Us; Poway reduced development impact fees by 50%; City of San Diego waived all development impact fees (and other similar fees); Santee has waived all development impact fees and permit fees (plan check and inspections) for a five-year trial; and San Diego County has waived all development impact fees and permit fees (plan check and inspections) for a five-year trial. Payment Plans The City currently offers payment plans for ADU,s/JADUs,with the following standard terms: Pzige 6 2019-10-01 Agenda Packet Page 74 of 108 • Maximum repayment period of twenty-four (24) months; • Minimum DIF deferral amount of$1,000; • Deferral of$10,000 or less may be secured with a Promissory Note; Deferrals in excess of $10,000 require a Promissory Note and recordation of a Lien and Development Impact Fee Payment Plan Agreement on the property as security; • Simple interest of three percent(3%) per annum is assessed; • The first payment must be made concurrent with the execution of the Promissory Note; Payments are due no later than thenj 5thof each month; and Payment received after the 15th of each month are assessed interest of seven percent (7%,) per annum on the unpaid balance. To date, the City has entered into 6 ADU/JADU DIF' payment plans, for a total of $49�,000. The average amount deferred is $8,170. Payment plans are not available for intake,p�lan check,and inspection fees. Recommended Actions, In response to the Council's referral to staff and input from the applicants, staff recommends a number of actions to further reduce barriers to development of ADUs/JADU,s,as described below. Own t Staff recommends eliminating the owner-occup�ancy requirement for ADUs and JADUs. Adoption of the proposed ordinance makes this modification to CVMC Sections19.58.022 (ADUs) and 19-58.023 (JADU,$). Further, staff recommends that all owner-occupancy deed restrictions that have been required by the City as part of the ADU/JAD�U development process to date be released at no cost to the property owners. Fee "Waivers"' Due to the legal framework under which DIF's are established, it is not possible to waive DIF fees in the traditional sense. To do so would result in other fee payers sub�sidizing the development of ADUs/JADUs,a violation of the Mitigation Fee Act. In order to not charge a DIF fee that is due ("waive" the fee), an alternative funding mechanism to pay the fees that would otherwise have been collected must be identified. Staff recommends the creation of a process to pay DIFs due for ADUs/JADUs, if certain affordability requirements are met (hereinafter referred to as "waiving"). Staff recommends "waiving" DIFs for ADUs/JADUs if the applicant records an affordable housing deed restriction on their property. Staff proposes the following deed restriction requirements: Table 4-Proposed Affordability Deed Restrictions, 11�111111111 1 MW 011 Very Low-Income at 30%to 50%of local area median income (AMI)i 10 years Low-Inclome at 50%to 80% of AMI 15 years Moderate-income at 80%to 120% of AMI 2 0 years In addition, staff recommends offering DIF "waivers" to property owners that are constructing ADUs/JADUs to be occupied by family members, with the recordation of a deed restriction to require such occupancy,. Page 7 2019-10-01 Agenda Packet, Page 75 of 108