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Home My WebLink About2021/02/16 Agenda PacketCiity Counciill Agenda February 16, 2021 Ccauncilrt embers Cardenas, Gaivez, McCann, Padilla and Mayor Casillas Salas A. 21 COVID-19 UPDATE BY GIITY OF CIHULA VISTA EMERGENCY SERVICES COGRUIN TOR MARLON KING B. 20,0527 PRESENTAPION BY INTERIM GRIEF E IECUPIVE OFFICER, EIILL CARN IH N OF THE SAN DIIIEGO COMMUNFY POWER PHASE ONE LAUNCH UPDATE C. 12°1,.00°19 PRESENTATIION BY CHULA VISTA POLICE CAPTAIIN DON REDMOND OF THE POLICE DEPARTMENT'S LAVE 911 D. 21 003�0 PRESENTATIION OF A RROCLAMAT�ION TO KATHY AND ADAM SPARKS IN RECOGNFION OF MANGIA IT LII NO'S &IIGNIEFIC NT CONTRIBUTTIONS TO THE GIITY AND RE&IIDIENTS OF CHULA VISTA The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, uniess a Ccauncilrt ember, a member of the public, or staff requests that an item be removed for discussion. If you wish to comment can one of these items, do so at https.-IlchLilavista.legistar.com/Ca/endar.aspx 8 APPROVAL OF UNUTES of August 4 rid 25, and September 15 and 22, 2020. Recommended fiction: Cour 11 approve -the mIlnutes. ® 21 0014 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GHULA VISTA ACKNOWLEDGING RECEIPT OF COUNGIIL POLICY NO. 220-01, THE GIITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES; AMENUING THE E IISTIINGPOLICY; AND UIELIEGATIING INVESTMENT CTWFY AUTHORITY TO THE DIFRECTOR OF F II N N G IE/TRE S U IRE IR E. (INVESTMENT REPORT PCMB THE QUARTER ENVIED DECEMBER 31, 2020 Page 2 Printer! on 2/11/2021 2021-02-16 Agenda Packet Page 2 of 395 City CounciiII Agenda February 16, 2021 Department: Finance Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Quality Acct State GVJidelines; therefore, pLarsLaant to State GUidelines Section 15060(c)(3) no environmental review is regUired. Recommended fiction: Cou n6l ad'op't -the IresciWtlicin and Irec&live -the Irepolrt. ® 20-0392 RESOLUTIION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTA ROVING THE FIRST AMENDED AND RESTATED AGREEMENT BETWEEN THE GIITY OF CHULA VISTA AND SCCA - S IICIEIR CONSULTIING GROUP, LLC. PCMB S IEGII L TAX CONSULTANT SERVICES PCMB ASSESSMENT DIISTIRICTS, COMMUMTY FAGILIITIIIES DIISTIRICTS, OPEN SPACE DIISTIRICTS AND ANNUAL SEWER ASSESSMENT ADMMSTRATIION SERVICES Department: Finance Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Quality Acct Mato GLaidolines; therefore, pLarsLaant to Mato GUidolines Section 15060(c)(3) no environmental review is required. Recommended fiction: CouIncII adopt -the IresciW-ficin. ® 2G.,0558 RESOLUTIION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTA TEMPORARILY WAIIVING ALL LATE FETES IMPOSED UPON DIELIINQUENT PAYMENTS OF ECJ&IINIESS LIIGIENSIE FETES FOR THE CALENDAR YEAR 2021 RENEWAL PERIOD Department: Economic Devebloment Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Quality Acct Mato GLaidolines; therefore, pLarsLaant to Mato GUidolines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity also qualifies for an Exemption pLarsLaant to Section 15061(b)(3) of the California Environmental Quality Acct Mato GUidolines. Recommended fiction: CouIncII adopt -the IresciW-ficin. ® 20.®0560 RESOLUTIION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTA ROVING THE 2021 ANNUAL REPORT FOR THE DOWNTOWN CHULA VISTA PROPERTY -BASED ECJ&IINIESS IMPROVEMENT DIISTIRICT Department: Economic Devebloment Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Quality Acct Mato GLaidolines; therefore, pLarsLaant to Mato GUidolines Section 15060(c)(3) no environmental review is required. Recommended fiction: CouIncII adopt -the IresciW-ficin. City of Chula Vista Page 3 Printer! can 2/11/2021 2021-02-16 Agenda Packet Page 3 of 395 City Counciill Agenda February 16, 2021 A 9 20,10550 RESOLUTTION OF THE GIITY COUNGIIL OF BETWEEN THE GIITY OF SAN DIIIEGO AND CHULA VISTA PCMB THE COLOCATiION OF GIITY OF SAN DIIIEGO SOUTH METRO SEWER RIPELINE IIN A SEGMENT OF IE STREET Department: Development Seirvllces Department THE GITY OF AGREEMENT THE GITY OF N E IISTIING INTERCEPTOR Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Quality Acct State Guidelines; therefore, pLarsLaant to State Guidelines Section 15060(c)(3) no environmental review is reyUired. In addition, notwithstanding the foregoing, the activity also qualifies for an Exemption pLarsLaant to Section 15061(b)(3) of the California Environmental Quality Acct Mato Guidelines. Recommended fiction: Lound ad'op't -the Iresolutllon. ,.0029 RESOLUTTION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTA (1) RESGIINDIING GIITY COUNGIIL RESOLUTTION NO. 2021-001 AND CANCELLING THE AWARD OF THE CONTRACT PCMB THE "MAJOR PAVEMENT REIHABEILIIT TIION FY 201$/2019 (STM0397)" PROJECT TO FRANK AND SCAN PAVING, INC. AND (2) VV IRD. ING THE PROJECT CONTRACT TO THE NEXT APPARENT LOWEST RESPONSIWE AND RESPON&IIELIE E0DIEIR, HAZARD CONSTRUCTC ION COMPANY, IN THE AMOUNT OF $2,082,419.70 Department: Engineelr ng Department Environmental Notice: The Project qualifies for a Categorical Exemption pLarsLaant to the California Environmental Quality Acct Mato Guidelines Section 15301 Mass 1 (Existing Facilities), Section 15302 Mass 2 (Replacement or ReconstrUCtion), and Section 15303 class 3 (New ConstrUction or Conversion of Small trUctUres). Recommended fiction: Lound adopt -the Iresolutllon. Persons commenting during Public Comments may address the Council can any subject matter within the Council's jurisdiction that is not listed as an item can the agenda. Mate law generally prohibits the Council from discussing or taking action can any issue not included can the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff if you wish to comment, you may do so at https.-IlchLilavista.legistar.com/Ca/endar.aspx ® 21 0028 PUBLIC COMMENTS RECEIVED for 1Fbrua ry 16, 2021 Printer! on 2/11/2021 2021-02-16 Agenda Packet Page 4 of 395 City Counciill Agenda February 16, 2021 ACTION ITEMS The item(s) listed in this section of the agenda will be considered individually by the Council an are expected to elicit discussion and deliberation. if you wish to comment on one of these items, you may do so at https.//chilavista.legistar.ccamICalendar.aspx -0556 CC N&IIDIEIRATTION OF EST ELII&IKING NEW GREENS FETES AT THE CHULA VISTAUNIICII L GOLF COURSE RESOLUTTION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTAIENUIING CHAPTER 8 (GREENS FETES) OF THE GIITY'S MASTER FETE SCHEDULE AND ESTABLISHING NEW GREENS FETES AT THE GIHUL VISTA MUMCPAL GOLF COURSE jIN-#IIS ITEM WAS PREVIOUSLY ON THE AGENDA OF 1/19/2021) Department: Economic Development Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Qualify Act State GUidelines; therefore, pUrsUant to State GUidelines Section 15060(c)(3) no environmental review is reyUired. Recommended fiction: Cound ad'op't -the Iresolutllon. 10. 200557 CONSMIEIRAPION OF EST ELIISIKING ENERGY EIENIGHMRKING AND CONSIEIRVATIION REQUIREMENTS FOR MULTlI1FMLY AND COMMElRGI L BULUIINGS GRUIN NGIE OF THE GIITY OF GHULA VISTA MENUIING CHAPTER 15.26 OF THE CHULA VISTA MUMCPAL CODE TO ESTABLISH ENERGY EIENCIN-#MRKING AND CONSIEIRVATIION REQUIREMENTS FOR MULTlI1FMLY AND COMMElRGI L BULUIINGS (FIRST IRE UIING) jIN-#IIS ITEM WAS PREVIOUSLY ON THE AGENDA OF 1/5/2021.) Department: Economic Development Department Environmental Notice: The Project qualifies for a Categorical Exemption pUrsUant to the California Environmental Quality Acct State Guidelines Section 15306 Mass 8 (Actions by Regulatory Agencies for Protection of the Environment). In addition, notwithstanding the 'foregoing, the IPro)ect also qualifies for an Exemption pUrsUant to Section 15061(b)(3) of the California Environmental Quality Acct State Guidelines. Recommended fiction: Cound place -the olydinance on first Treadling. EM Printer! on 2/11/2021 2021-02-16 Agenda Packet Page 5 of 395 Agenda February 16, 2021 11® 20.,05 70 CC N&IIDEIR TIION OF APPROVING AMENDED AND RESTATED REVENUE SHARING AND JUNT COMMUNIIFY FACIILIITIIIES AGREEMENTS WITH THE SAN UIIIEGO UNIFFIIED PORT UIISTIRICT AND CHANGES TO THE RATE AND METHOD OF APPORTIIONMENT OF S IECII L TAXIES PCMB THE BAYFRONT PROJECT S IECII L TAX FIN NCIING UIISTIRICT A. IRESOLUTIION OF THE CFY COUNCIIL OF THE CFY OF CHULA VISTA ROVING A THIRD AMENDED AND RESTATED REVENUE SHARING AGREEMENT BY AND AMONG THE CFY OF CHULA VISTA, THE SAN UIIIEGO UNIFFIIED PORT UIISTIRICT, AND THE CHULA VISTA BAYFRONT IFACIILIITIIIES IFIN NCIING AUTHORITY E. IRESOLUTIION OF THE CFY COUNCIIL OF THE CFY OF CHULA VISTA ROVING AN AMENDED AND RESTATED JUNT COMMUNIIFY FACIILIITIIIES AGREEMENT BY AND BETWEEN THE CFY OF CHULA VISTA AND THE SAN UIIIEGO UNIFFIIED PORT UIISTIRICT PCMB THE CIHUL VISTA BAYFRONT PROJECT S IECII L TAX FIN NCIING UIISTIRICT C. IRESOLUTIION OF THE CFY COUNCIIL OF THE CFY OF CHULA VISTA, ACTIING AS THE LIEUSL TIWE BODY OF THE BAYFRONT PROJECT S IECII L TAX FIN NCIING UIISTIRICT DECLARING ITS INTIENTIION TO CON&DEIR CHANGES TO THE RATE AND METHOD OF APPORTIIONMENT OF S IECII L TAXIES AUTHORIZED TO BE LEVIED THEREIN AND EXPAND TERRITORY WHEREIN IMPROVEMENTS MAY BE LOCATED AND SERVICES MAY BE PROVIDED Department: Devebpr ent eirvVlces Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental Qualify Act State GUidelines; therefore, pUrSUant to fafo GUidelinos Section 15060(c)(3) no environmental review is regUired. Recommended fiction: Coun6i ad'op't -the IresoWtIbns. EM Printer! on 2/11/2021 2021-02-16 Agenda Packet Page 6 of 395 Agenda February 16, 2021 12® 2'1-00° 0 CC N&IIDEIRATIION OF ACGEPTANG FEDERAL FUNDS AND APPLY�ING PCMB STATE UNDS PCMB AN EMERGENCY RENTAL AS&ISTANCE PROGRAM AND ENTERING INTO CONTRACTOIRSE1RVICIE PROVIDER AGREEMENT WITH SOUTH BAY COMMMITY SERVICES A. IRESOLUTTION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VI S TA AUTHORIZING THE ACCEPTANCE OF CONSC UDATIED APRRORRIATIIONS ACT OF 2021 LLOCATIION FROM THE UNIFED STATES DEPARTMENT OF TREASURY PCMB AN EMERGENCY RENT L ASSISTANCE PROGRAM AND APRRORRIATANG FUNDS THEREFOR (4/5 VOTE REQUIRED) E. IRESOLUTTION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTAAUTHORIZING THE GIITY TO PURSUE AND ACCEPT A BLOCK GRANT FROM THE STATE OF CALFFORMA DEPARTMENT OF ECJ&IINIESS, CONSUMER SERVICES AND N-#OU&ING AGENCY (EOSIN-#) PCMB AN EMERGENCY RENTAL AS&ISTANCE PROGRAM, AUTHORIZING THE GIITY MANAGER OR UIE&IIGNIEIE TO EXECUTE A STANDARD AGREEMENT WITH EC&H PCMB THE IMPLEMENTATIION OF A STATE EMERGENCY RENTAL AS&ISTANCE PROGRAM PURSUANT TO SENATE EIILL 91, AND APRRORRIATIING FUNDS THEREFOR (4/5 VOTE REQUIRED) C. IRESOLUTTION OF THE GIITY COUNGIIL OF THE GIITY OF CHULA VISTA WAIIVING THE COMPETFlWE B0UING REQUIREMENTS PURSUANT TO CHULA VISTA MUMCPAL CODE SIECPIION 2.56.070(E)(3) AND APPROVING A CONTRACTOR/SERVICE PROVIDER AGREEMENT WITH SOUTH BAY COMM JNIITY SERVICES TO PROVIDE AN EMERGENCY RENTAL AND UTTILIITY S&IIST NCIE PROGRAM FUNDED BY STATE AND FEDERAL CONSC UDATIED APRRORRIATIIONS ACT OF 2021 ALLOCATIIONS Page 7 Printer! on 2/11/2021 2021-02-16 Agenda Packet Page 7 of 395 ciity CounciiII Agenda Department: Develop pent ellvVlces Department Environmental Notice: The activity is not a "Project" as defined Linder Section 1537$ of the California Environmental QLjality Acct State GUidelines; therefore pLarsLaant to State Guidelines Section 15060(c)(3) no environmental review is required. Under NEPA, the activity qualifies for a Categorical Exclusion not SUb)ect to 24 CFR 50.19(b) (3), (11), and (12 of the Code of Federal RegUlations. Recommended fiction: Lound adopt -the Iresolutllons. 130 ,.00 GIITY MANAGER'S PROPOSED EMERGENCY ORDER, CTIING AS THE GIITY'S DIIIRECTOIR OF EMERGENCY OPEIRATTIONS, TO CAP THIRD PARTY RESTAURANT DELIVERY FETES AT 15%, AND TO POTENTIIALLY CAP RELATED SIEIWIGIE FETES, LINTIIL SUCH TIME AS THE STATE TAMES PREEMPTWE ACTIION OR RESTAURANTS 10.1E ALLOWED TO OPERATE INDOORS, AND SOLIIGIITIING GIITY COLINGIIL/ LJELIIC TIN LIT IREG(RUING SAME �MAYOR'S REPORTS UJ CHILI ' COI T IITY ATT Y' REPORTS 911_44f�' Announcements of actions taken in Closed Session shall be made available by noon on the next business clay following the Council meeting at the City Attorney's office in accordance with the Ralph M. Brown ,pct (Government Code 54957.7). 14® 21,.05"'7ro CONFERENCE WTH LEGAL COUNSEL RECD (RUING E IISTIING LIMIGATIION PURSUANT TO GOVERNMENT CODE SIECTIION 54956.9 (d)(1) Nerve of case: A. (Estate of Or ll Nu nis, Sr. by and through IRoxie A. Nu nis, et II. v.City of Choana Vista, San Diego Superior Court, Case No. 7 -2020 -43271 -CU -GIC -CTL, E. Lucy Ludwig-M61e "Nd z, et aIl. v. City of Choana Vista, San Diego Superior Court, Case No. 37 -20119 -34737 -CLI -EI -CTL EM Printer! on 2/11/2021 2021-02-16 Agenda Packet Page 8 of 395 Ciity Coundill Agenda February 16, 2021 15® 2t.,0576 CONFERENCE UVIITH LEGAL LIITIIGTIICIN Significant exposure to litigation Code Section 5495.9(d)() [or] (3): (2) Cases: A. CIIaim presented 07/17/20; and CCIUNSEL--ANTIICIIPATED pursuant to Government E. CIIaim re: Notice of Potential) Li bHity, Request for lnforrntion, Request for Payment, and Request for Performance of Work Associated with R61eases and Threatened R61eases of Hazardous Substances at the San Diego Bay National) WHdlHf Refuge Site in Choana Vista and National) City, CIIlfornl in memory of James Aiderete Bcarbcaa, October 28, 1925 - January 7, 20721 to the regular City Council meeting on )March 2, 2021, at 5:00 pear., in the Council Chambers. Materials provided to the City Council related to any open -session item on this agenda are available for public review, please contact the Office of the City Clerk at cityclerk@cl�ulavistaca.gov or (619) 691-5041. Sign up at www.cl�ulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista Page 9 Printer! can 2/11/2021 2021-02-16 Agenda Packet Page 9 of 395 LM Tuesday, August 4, 2020 5::00 PIM Vila Telleconference Coundill Chambers 276 4th Avenue, Buiilldlng A Ch ulla Viista, CA 91910 Pursuant to the Governor of the State of California's Executive Order N-29-20, and in the interest of public health and safety during the COVID-19pandemic, members of the City Council and staff participated in this meeting via teleconference. Members of the public participated remotely and were not present in Council Chambers. All votes were taken by roll call and public comments were submitted electronically or otherwise in writing. 77�e City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda items may be taken out of order during the meeting. 77�e agenda items at this meeting were considered in the order presented. Regular meetings of the City Council and the Public Financing Authority of the City of Chula Vista were called to order at 5:02 p.m. via teleconference and in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. Present:: Councilmember Diaz, Deputy Mayor Galvez, Councilmember McCann, Councilmember Padilla and Mayor Casillas Salas Also Present.- City Manager Kachadoorian, City Attorney Googins, City Clerk Bigelow, and Assistant City Clerk Turner Councilmember McCann led the Pledge of Allegiance. Item 3 was removed from the Consent Calendar at the request of staff and continued to a date uncertain. 1.. 20-0339 ORDINANCE NO. 34930F THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.05.010 TO ADD THE UNCLASSIFIED POSITION OF FA DEPUTY DIRECTOR LECC (SECOND READING AND ADOPTION) (4/5 VOTE REQUIRED) Recommended Action:: Coundill adopt the ordinance. Page I 2021-02-16 Agenda Packet Page 10 of 395 Ciity Coundill IMeeting Winutes -[draft August 4, 2020 2.. 20.0341 RESOLUTION NO. 2020-165 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING AND CONFIRMING EMERGENCY ORDER 006-2020 (EFFECTIVE JULY 29, 2020) OF THE CHULA VISTA DIRECTOR OF EMERGENCY SERVICES ALLOWING CERTAIN BUSINESSES TO TEMPORARILY OPERATE OUTDOORS AND ESTABLISHING LOCAL HEALTH AND SAFETY STANDARDS THEREFOR CONSISTENT WITH STATE AND COUNTY GUIDELINES Recommended Action:: Coundill adopt the resollution. Item 3 was removed from the Consent Calendar. 4.. 20.0202 RESOLUTION NO. 2020-166 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A BALANCED COMMUNITIES AFFORDABLE HOUSING AGREEMENT FOR OTAY RANCH VILLAGE 8 WEST BY AND BETWEEN THE CITY OF CHULA VISTA AND HOMEFED VILLAGE 8, LLC AND OTAY LAND COMPANY, LLC IN SATISFACTION OF THE CITY'S BALANCED COMMUNITIES POLICY Recommended Action:: Coundill adopt the resollution. 5.. 20.0300 RESOLUTION NO. 2020-167 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROVING THE 2020/21 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SPENDING PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS PROGRAM, AND THE EMERGENCY SOLUTIONS GRANT; (2) AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO EXECUTE AGREEMENTS WITH EACH SUBRECIPIENT; AND, (3) AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO EXECUTE ANY AND ALL HUD DOCUMENTS RELATED TO THE GRANTS Recommended Action:: Coundill adopt the resollution. 6.. 20.0297 RESOLUTION NO. 2020-166 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $55,118 FROM THE CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES FOR THE COVERDELL FORENSIC SCIENCE IMPROVEMENT PROGRAM Recommended Action:: Coundill adopt the resollution. Approval of the Consent Calendar ACT1l0N:: A imotion was imade by Counciillimeimber IMcCann, seconded by Counciillimeimber Diiaz, to approve staff's recommendations on the above Consent Calendar iiteirrsss headiings read, text waived. The imotion carried by the foll1lowing vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 NMI 2021-02-16 Agenda Packet Page I I of 395 Ciity Coundill IMeeting Minutes - Draft August 4, 2020 1 '19.0551 A. RESOLUTION OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY DECLARING A SURPLUS IN THE RESERVE AND REDEMPTION FUNDS FOR THE CHULA VISTA PUBLIC FINANCING AUTHORITY REASSESSMENT DISTRICT NO. 2001-1 AND REASSESSMENT DISTRICT NO. 2001-2 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING A SURPLUS IN THE IMPROVEMENT FUND FOR THE CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) Item 3 was continued to a future meeting with a date to be determined T. 20-0340 PUBLIC COMMENTS RECEIVED foir August 4, 2020 Grace Sardina submitted comments in opposition to removing the Christopher Columbus statue. ACTION ITEMS 8.. 20-0328 RESOLUTION NO. 2020-189 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2020/21 ADOPTED BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Finance Director Bilby gave a presentation on the item and responded to questions of the Council. At the request of Mayor Casillas Salas, there was consensus of the Council to add an item to a future meeting to consider a policy for communications within Council districts. ACT110W A imotion was imade by IMayor Casiillllas Salias, seconded by Coundillimeirnber IMcCann, to adopt Resollution No. 2020-189, headiing read, text waived. The motion carded by the foll1lowing roll1l call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 GITY ANAGER'S REPORTS City Manager Kachadoorian provided a COVID- 19 update and answered questions of the Council. MAYOR'S REPORTS Mayor Casillas Salas gave an update on the United States Census and encouraged participation. She stated her attendance at the following: the US Environmental Protection Agency interagency Consultation Group meeting, a tour of the Urbana residential units, the virtual Living Coast Discovery Center Farm to Bay Celebration and spoke on the first closure of 77*d Ave. Em 2021-02-16 Agenda Packet Page 12 of 395 Ciity Coundill IMeeting Minutes -[draft August 4, 2020 Councilmember McCann acknowledged the 77�ird Ave Village Association and thanked those who contributed to the Living Coast Discovery Center Farm to Bay event. 9.. 20.0343 GC UNCILMEMBER PADILLA: CONSIDERATION OF FORMING AN AD HOC SUBCOMMITTEE TO WORK WITH STAKEHOLDERS AND CITY STAFF TO EVALUATE AND PROPOSE POSSIBLE MODIFICATIONS TO CITY EVICTION MORATORIUM POLICIES AND RELATED PROGRAMS FOR LANDLORD/TENANT/OWNER SUPPORT Councilmember McCann stated he would abstain from voting on Item 9 due to a potential property -related conflict of interest and was not present during discussion and voting on the item. Councilmember Padilla spoke regarding the item and offered an Ad Hoc Subcommittee consisting of himself and Deputy Mayor Galvez, existing for six months and would return with recommendations for Council. 77�e following individuals submitted comments in support of the subcommittee: -Robert Cromer, representing Pacific Southwest Association of Realtors -Alan Pentico, representing Southern California Rental Housing Association ACT1I0N:: A motion was made by Coundillimeirnber Padiilllla, seconded by IMayor Casiillllas Salias, to approve the formation of an ad hoc subcommittee, consiisting of Coundillimeirnber Padiilllla and Deputy IMayor Gallvez and to be iin effect for Mix imonths, to work With stakehollders and Ciity staff to evalluate and propose possiiblle modiifications to Ciity eviiction moratorium polliiciies and rellated programs for Ilan d1lordIten ant/owner support. The emotion carried by the foll1lowing roll1l calIll vote:: Yes:: 4 - Diaz, Galvez, Padilla and Casillas Salas No„ 0 Abstain:: I - McCann GITYATT ORNEY"S REPORTS There were none. 77�e meeting was adjourned at 5:55 p.m.. Minutes prepared by: Leah Larrarte, Deputy City Clerk IrMS = rMA/ Em 2021-02-16 Agenda Packet Page 13 of 395 LM Tuesday, August 25, 2020 5::00 PIM Vila Telleconference Coundill Chambers 276 4th Avenue, Buiilldlng A Ch ulla Viista, CA 91910 Pursuant to the Governor of the State of California's Executive Order N-29-20, and in the interest of public health and safety during the COVID-19pandemic, members of the City Council and staff participated in this meeting via teleconference. Members of the public participated remotely and were not present in Council Chambers. All votes were taken by roll call and public comments were submitted electronically or otherwise in writing. 77�e City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda items may be taken out of order during the meeting. 77�e agenda items were considered in the order presented. A regular meeting of the City Council of the City of Chula Vista was called to order at 5:05 p.m. via teleconference and in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. Present:: Councilmember Diaz, Deputy Mayor Galvez, Councilmember McCann, Councilmember Padilla and Mayor Casillas Salas Also Present.- City Manager Kachadoorian, City Attorney Googins, City Clerk Bigelow, and Assistant City Clerk Turner Deputy Mayor Galvez led the Pledge of Allegiance. Mayor Casillas Salas announced that Item 13 would be continued to a future Council date. A.. 20-0358 PRESENTATION ON THE 2020 FIRE SEASON BY FIRE CHIEF JIM GEERING Fire Chief Geering, Emergency Services Coordinator King, and Deputy Fire Chief Muns gave a presentation on the item. Council discussion ensued. 1.. 20-0362 APPROVAL OF MINUTES of January 7 and 14, 2020.. Recommended Action:: Coundill approve the iminutes. Page I 2021-02-16 Agenda Packet Page 14 of 395 Ciity Coundill Meeting Minutes -[draft August 25, 2020 2.. 20-0180 RESOLUTION NO. 2020-190 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF TWO ACTIVE TRANSPORTATION PROGRAM - CYCLE GRA, JT APPLICATIONS FOR F STREET PROMENADE PHASE I FROM BAY BLVD TO BROADWAY AND BAYSHORE BIKEWAY FROM E STREET TO LAGOON DRIVE AND STATING THE CITY'S ASSURANCE TO Recommended AcUon:: Coundill adopt the resolluUon. 1 20.0329 A. RESOLUTION NO. 2020-191 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE SEWER SERVICE AGREEMENT BETWEEN THE CITY OF CHULA® VISTA AND THE COUNTY OF SAN DIEGO FOR OTAY LAKES COUNTY PARK B. RESOLUTION NO. 2020-192 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF AN ENCROACHMENT PERMIT TO THE COUNTY OF SAN DIEGO FOR THE OTAY LAKES COUNTY PARK PROJECT C. RESOLUTION NO. 2020-193 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LICENSE AGREEMENT WITH THE COUNTY OF SAN DIEGO FOR THE OTAY LAKES COUNTY PARK PROJECT Recommended AcUon:: Coundill adopt the resolluUons. 4.. 20.0363 RESOLUTION 0. 2020-194 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 4(GENERAL BUSINESS FEES) OF THE CITY'S MASTER FEE SCHEDULE TO ADD CAN NABIS-RELATED FEE 77�e following members of the public submitted comments in support of staffs recommendation: Peggy Walker Barbara Gordon Terri -Ann Skelly Recommended AcUon:: Coundill adopt the resolluUon. 5.. 20.0283 A. RESOLUTION NO. 2020-195 OF CHULA VISTA ACCEPTING DEPARTMENT OF JUSTICE, POLICING SERVICES (COPS) PROGRAM, AND ADDING AUTHORIZED STAFFING LEVEL VOTE REQUIRED) NMI OF THE CITY COUNCIL OF THE CITY $750,000 FROM THE UNITED STATES OFFICE OF COMMUNITY ORIENTED FOR THE COPS HIRING GRANT SIX PEACE OFFICERS TO THE OF THE POLICE DEPARTMENT (4/5 2021-02-16 Agenda Packet Page 15 of 395 Meeting (Minutes -[draft August 25, 2020 B. RESOLUTION NO. 2020-196 OF THE CITY COUNCIL OF THE CITY OF CHULAd VISTA, APPROVING THE AMENDED MEASURE Ad PUBLIC SAFETY EXPENDITURE PLAN TO MOVE UP THE HIRING OF SIX PEACE OFFICERS TO FISCAL YEAR 2021 AND AMENDING THE FISCAL YEAR 2021 REVENUE AND EXPENDITURE BUDGET OF THE MEASURE Ad SALES TAX FUND TO FUND SUCH POSITIONS FROM COPS HIRING GRANT PROGRAM AND MEASURE A - POLICE DEPARTMENT AVAILABLE FUND BALANCE (4/5 VOTE REQUIRED) Recommended AcUon:: Coundill adopt the resolluUonsa A. RESOLUTION NO. 2020-197 OF THE CITY COUNCIL OF THE CITY OF CHULAd VISTA, APPROVING Ad TWO-PARTY AGREEMENT BETWEEN THE CITY OF CHULAd VISTA, AND RECON ENVIRONMENTAL, INC TO SERVE AS Ad PRESERVE STEWARD/BIOLOGIST, AUTHORIZING UP TO TWO 1- YEAR EXTENSIONS TO THE AGREEMENT AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) B. RESOLUTION NO. 2020-196 OF THE CITY COUNCIL OF THE CITY OF CHULAd VISTA, APPROVING Ad TWO-PARTY AGREEMENT BETWEEN THE CITY OF CHULAd VISTA, AND ENVIRONMENTAL SCIENCE ASSOCIATES TO SERVE AS Ad PRESERVE STEWARD/BIOLOGIST, AUTHORIZING UP TO TWO 1- YEAR EXTENSIONS TO THE AGREEMENT AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Recommended AcUon:: Counciill adopt the resolluUonsa T. 20.0335 RESOLUTION NO. 2020-199 OF THE CITY COUNCIL OF THE CITY OF CHULAd VISTA, TOLLING THE DEVELOPMENT IMPACT, IPJ -LIEU, AND CAPACITY FEE AUTOMATIC ANNUAL INFLATIONARY ADJUSTMENT FOR 2020 Lisa Cohen submitted comments in support of staff's recommendation. Recommended AcUon:: Coundill adopt the resolluUon. .. 20.0286 RESOLUTION NO. 2020-200 OF THE CITY COUNCIL OF THE CITY OF CHULAd VISTA, APPROVING Ad COOPERATIVE PURCHASING AGREEMENT WITH SC COMMERCIAL, LLC (DBA THE SOCO GROUP) AUTHORIZING THE PURCHASE OF MOTOR VEHICLE FUEL, ON AN AS -NEEDED BASIS, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF REQUEST FOR PROPOSAL NUMBER 10069315-16-K AND THE COOPERATIVE TIVE AGREEMENT WITH THE CITY OF SAN TGC), IN Ad TOTAL CONTRACT AMOUNT NOT TO EXCEED $4,000,000 THROUGH APRIL 30, 2024 Recommended AcUon:: Coundill adopt the resolluUon. Em 2021-02-16 Agenda Packet Page 16 of 395 Ciity Coundill IMeeting Winutes -[draft August 25, 2020 9.. 20.0347 RESOLUTION NO. 2020-201 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A QUITCLAIM DEED CONVEYING CITY'S INTEREST, IF ANY, IN VACANT LAND TO THE OWNER OF THE ADJACENT PARCEL LOCATED AT 3925 MAIN STREET Recommended Action:: Coundill adopt the resollution. 10.. 20.0346 INVESTMENT REPORT FOR THE QUARTER ENDED JUNE 30, 2020 Recommended Action:: Coundill receiive the report. 11.. 20.0355 RESOLUTION NO. 2020-202 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING BOND AND DISCLOSURE COUNSEL AND JUDICIAL VALIDATION SERVICES IN CONNECTION WITH THE ISSUANCE OF PENSION OBLIGATION BONDS UNDER LEGAL SERVICES AGREEMENT NO. LSA 102214BETWEEN THE CITY AND STRADLING YOCCA CARL ON & RAUTH Recommended Action:: Coundill adopt the resollution. Approval of the Consent Calendar ACT1l0N:: A imotion was imade by Counciillimeimber IMcCann, seconded by Counciillimeimber Diiaz, to approve staff's recommendations on the above Consent Calendar iiteirrss, headiings read, text waived. The imotion carried by the foll1lowing vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 12.. 20.0359 PUBLIC COMMENTS RECEIVED foir August 25, 2020 Grace Sardina, representing Order Sons and Daughters of Italy in America, submitted comments regarding the Christopher Columbus statue. 77�e following members of the public submitted comments in support of an ordinance related to snort -term vacation rentals: Dyan Kirschenman Suzanne Olvera Kurt Kirschenman PUBLIC ITARINGS 11 20.0352 CONSIDERATION OF A RECOMMENDATION FROM THE PLANNING COMMISSION TO APPROVE A 141 -UNIT CONDOMINIUM PROJECT OFF MOSS STREET, BETWEEN INDUSTRIAL BOULEVARD AND BROADWAY City of Chula Vista Page 4 2021-02-16 Agenda Packet Page 17 of 395 Ciity Coundill Meeting (Minutes -[draft August 25, 2020 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING MITIGATED NEGATIVE DECLARATION AND ASSOCIATED MITIGATION, MONITORING AND REPORTING PROGRAM 1 16-0004 AND APPROVING AN AMENDMENT TO THE CHULA VISTA GENERAL PLAN INCLUDING ASSOCIATED TEXT, MAPS AND TABLES TO REFLECT A LAND USE CHANGE FROM LIMITED INDUSTRIAL TO RESIDENTIAL HIGH FOR APPROXIMATELY 6.9 ACRES AT 676 MOSS STREET B. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING A REZONE FOR A 6.94 -ACRE SITE LOCATED AT 676 MOSS STREET (FIRST READING) G. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TENTATIVE SUBDIVISION MAP PCS18-0006 TO CONSOLIDATE A 7.29 -ACRE SITE FROM THREE (3) PARCELS INTO ONE 6.94 -ACRE SITE FOR (141) MULTIFAMILY RESIDENTIAL UNITS, , FOR INDIVIDUAL OWNERSHIP AT 676 MOSS STREET D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING DESIGN REVIEW PERMIT DR18-0028 TO CONSTRUCT 16 THREE-STORY BUILDINGS TOTALING 104,416 QUARE FEET, CONSISTING OF 141 TOWNHOMES ON A 6.94 ACRE SITE LOCATED AT 676 MOSS STREET, WEST OF BROADWAY AND EAST OF INDUSTRIAL BOULEVARD E. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A VARIANCE, ZAV18-0001 TO DEVIATE THE FRONT SETBACK FROM 15 TO 10 FEET TO ALLOW AN EXISTING DOUBLE-BARRELED CULVERT TO REMAIN IN ITS CURRENT LOCATION ON A 6.94 -ACRE SITE LOCATED AT 676 MOSS STREET Mayor Cesilles Sales announced that Item 13 would be withdrawn and rescheduled for e future date. ACTION IIT( 14,. 20.0364 RESOLUTION NO. 2020-203 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA EXTENDING THE CITY'S EVICTION MORATORIUM ORDINANCE (EMERGENCY ORDINANCE NO. 3469-A) UNTIL SEPTEMBER 30, 2020 AND CONSIDERATION OF POSSIBLE MODIFICATION TO CITY'S EVICTION MORATORIUM RULES BASED UPON RECOMMENDATIONS FROM THE CITY'S AD HOC SUBCOMMITTEE OR STAFF Councilmember McCann stated he would abstain from voting on Item 14 due to e potential property -related conflict of interest. He left the meting during discussion and voting on the item. Housing Manager Hines gave e presentation on the item. City Attorney Googins spoke regarding the item Em 2021-02-16 Agenda Packet Page 18 of 395 Ciity Coundill IMeeting Minutes - Draft August 25, 2020 and responded to questions of the Council. Deputy Mayor Galvez and Councilmember Padilla provided an update from the eviction moratorium ad hoc subcommittee. At the request of Deputy Mayor Galvez and Councilmember Padilla, there was consensus of the Council to direct staff analyze issues related to payment of deferred rent. Council discussion ensued. ACT1l0N:: A imotion was imade by Deputy IMayor Galvez, seconded by Coundillimeirnber Padl111la, to adopt Resollution No. 2020-203, headiing read, text waived. The imotion carried by the foll1lowing roll1l call vote:: Yes:: 4 - Diaz, Galvez, Padilla and Casillas Salas No„ 0 Abstain:: I - McCann 15.. 20.0356 A. RESOLUTION NO. 2020-204 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ACCEPTANCE OF A CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY (CARES) ACT CORONAVIRUS RELIEF FUND (CRF) ALLOCATION OF $3,360,914 FROM THE STATE OF CALIFORNIA AND APPROPRIATING FUNDS IN THE GENERAL FUND IN FISCAL YEAR 2020/21(4/5VOTE REQUIRED) B. RESOLUTION NO. 2020-205 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENTS WITH SOUTH BAY COMMUNITY SERVICES, COMMUNITY THROUGH HOPE, AND THE LIVING COAST DISCOVERY CENTER, FUNDED BY STATE AND COUNTY CARES ACT FUND ALLOCATIONS Mayor Casillas Salas stated Councilmember McCann would abstain from voting on Item 15B due to a potential property -related conflict of interest. City Manager Kachadoorian spoke regarding the item and responded to questions of the Council. ACT1l0N:: A imotion was imade by Coundillimeirnber IMcCann, seconded by IMayor Casiillllas Salias, to adopt Resollution No. 2020-204, heading read, text waived. The imotion carried by the foll1lowing roll11 call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 ACT1l0N:: A imotion was imade by Deputy IMayor Galvez, seconded by Coundillimeirnber Padl111la, to adopt Resollution No. 2020-205, headiing read, text waived. The imotion carried by the foll1lowing roll1l call vote:: Yes:: 4 - Diaz, Galvez, Padilla and Casillas Salas No„ 0 Abstain:: I - McCann City of Chula Vista Page 6 2021-02-16 Agenda Packet Page 49 of 395 Ciity Coundill Meeting Minutes -[draft August 25, 2020 16.. 20-0361 PRESENTATION BY HARVARD FELLOW, IRENE LIU, ON CHULA VISTA INCLUSIVE ECONOMIC DEVELOPMENT Mayor Casillas Salas spoke regarding the Harvard Bloomberg partnership with the City. Economic Development Specialist Evans gave an overview of the item and introduced Harvard Fellow Irene Liu, who gave a presentation on the City's inclusive Economic Development survey. She and Deputy City Manager Crockett responded to questions of the Council. Council discussion ensued. CITY ANAGER'S REPORTS Emergency Services Coordinator King gave a COVID-19 update and responded to questions of the Council. MAYOR'S REPORTS Mayor Casillas Salas read an email commending the Chula Vista Police Department She spoke regarding 77*d Avenue businesses, the 2020 Census, and her attendance at the Crime Stoppers press conference that was held in honor of Devin Griffiths. Marketing and Communications Manager Steinberg gave a presentation in honor of Women's Suffrage month. COUNCILMEMBERS'COI MENTS Deputy Mayor Galvez spoke regarding 77�ird Avenue street closures and Women's Suffrage Month, and thanked City employees for their response to the COVID-19 pandemic. Councilmember Diaz reminded the community to complete the 2020 Census. At the request of Councilmember Diaz, there was consensus of the Council to make a referral to staff to return with an overview on short-term vacation rentals when staff workloads decrease. At the request of Councilmembers Diaz and Padilla, there was consensus of the Council to 1) request staff provide the Council with a preliminary report within 30 days regarding the MTS project, including information about the prior process that was conducted at the staff level in both agencies, a general overview about the submittals that were received, updated information regarding the process going forward, and an update on AB 1486 and SB7,- and 2) to direct the City Manager in the interim to work with MTS to request that submitters update their submittals, including their financial and project information. Councilmembers expressed gratitude to the 22 firefighters deployed to assist with the recent California fires. 17.. 20-0367 GC UNCILMEMBER Mc CANNP : RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, OPPOSING CALIFORNIA PROPOSITION 15, ENTITLED, "TAX ON COMMERCIAL AND INDUSTRIAL PROPERTIES FOR EDUCATION AND LOCAL GOVERNMENT FUNDING INITIATIVE (2020)" Councilmember McCann presented the item. EM 2021-02-16 Agenda Packet Page 20 of 395 Ciity Coundill IMeetong Minutes -[draft August 25, 2020 Council discussion ensued. 77�e following members of the public submitted comments in support of the resolution: - Myssie McCann 77�e following members of the public submitted comments in opposition to the resolution: -Vanessa Cecena Rita Clement, Chula Vista resident Nancy Nguyen Milton Ratner James Scofield, Chula Vista resident Andrea Cardenas, Chula Vista resident Czeska Cabuhat, San Diego resident Gretchen Newsom, representing IBEW 569 Neatriz Garcia, representing JOB Kate Bishop, Chula Vista resident Allison Estaris Christopher Wilson, representing Alliance San Diego Omair Khan Andrew Amorao, Chula Vista resident Norma Cazares, Chula Vista resident 11han Omar Diana Go Brigette Browning, Chula Vista resident Lynn DeHahn Carolyn Scofield, Chula Vista resident Allie Kiekhofer Khue Tran Claire Pratt Francis Riley Leslie De La Torre, Chula Vista resident Patricia Huffman, Chula Vista resident Madison Beck Brenda Aguire Shay Miller Tno Martinez Stacey Uy Margaret Baker Jewell Karinen Rosa Grant, Chula Vista resident Monica Santos, Chula Vista resident M. Ramirez Kathy Cappos Hardy, Chula Vista resident Lisandra de Gomez Ruby Baker Aleena Jun Nawabi, representing CAIR SD Melissa Walter James Scofield, Chula Vista resident Nicole Oga Robin Tan, Chula Vista resident Kandi Custodio-Tan, Chula Vista resident Lisa Cohen, representing Chula Vista Chamber of Commerce David Trujillo, representing ACLU CA Em 2021-02-16 Agenda Packet Page 21 of 395 Ciity Coundill IMeeting Minutes -[draft August 25, 2020 Belen Hernandez Garcia, representing Mid -City CAN Kyra Green, representing Center on Policy initiatives' Jewell Karinen, Chula Vista resident Trevor Malone, San Diego resident Amy Hoang Susan Tran Tom Lemmon, representing San Diego County's Building Trade Unions Jennifer James, San Diego resident Daniel 0suna Jerilyn Brown Denise C. Garder, Chula Vista resident Avia Flamm, Chula Vista resident Fernando Velazquez Meredith McNeill, San Diego resident Franco Garcia, representing Environmental Health Coalition Erin 7-surumoto Grassi, representing Alliance San Diego Peggy Ratner Richard Ratner ACTIl0N:: A imotion was imade by Coundillimeirnber IMcCann, seconded by Coundillimeirnber Diaz, to adopt the above resollution, headiing read, text waived. The imotion failled by the foll1lowing roIlIl call vote:: Yes:: 2 - Diaz and McCann No:: 2 - Padilla and Casillas Salas Abstain:: I - Galvez GITYATT ORNEY'S REPORTS There were none. Mayor Casillas Salas paid tribute to Kevin Powell. At 8:08 p.m. Mayor Mary Salas adjourned the meeting in memory of Kevin Powell. Minutes prepared by: Tyshar L. Turner, Assistant City Clerk Kerry K. Rlgebw, MMC, Gity CIIeirk Em 2021-02-16 Agenda Packet Page 22 of 395 LM Tuesday, September 15, 2020 5::00 PIM Vila Telleconference Coundill Chambers 276 4th Avenue, Buiilldlng A Ch ulla Viista, CA 91910 Pursuant to the Governor of the State of California's Executive Order N-29-20, and in the interest of public health and safety during the COVID-19pandemic, members of the City Council and staff participated in this meeting via teleconference. Members of the public participated remotely and were not present in Council Chambers. All votes were taken by roll call and public comments were submitted electronically or otherwise in writing. 77�e City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda items may be taken out of order during the meeting. 77�e agenda items at this meeting were considered in the order presented. A regular meeting of the City Council was called to order at 5:01 p.m. via teleconference and in the Council Chambers located in City Hall, 276 Fourth Avenue, Chula Vista, California. 9101 -Xi, `,;11W Present:: Councilmember Diaz, Deputy Mayor Galvez, Councilmember McCann, Councilmember Padilla and Mayor Casillas Salas Also Present.- City Manager Kachadoorian, City Attorney Googins, City Clerk Bigelow, and Assistant City Clerk Turner Councilmember Diaz led the Pledge of Allegiance. Mayor Casillas Salas called for a moment of silence to honor the firefighters and the families experiencing loss due to the recent fires in California. A.. 20-0369 PRESENTATION BY SAN DIEGO COUNTY REGISTRAR OF VOTERS MICHAEL VU REGARDING "VOTE SAFER SAN DIEGO" AND THE NOVEMBER 2020 ELECTION Mr. Vu, representing the Registrar of Voters, gave a presentation on the item. IB.. 20-0375 SPECIAL RECOGNITION OF DIANE TRAILER AND LOMA VERDE ELEMENTARY SCHOOL FOR RECEIVING THE 2020CHULA VISTA ELEMENTARY SCHOOL DISTRICT "WELLNESS CHAMPION AWARD" IN THE CITY OF CHULA VISTA Sr. Project Coordinator Kurz gave a presentation on the item to acknowledge the Wellness Champions Page I 2021-02-16 Agenda Packet Page 23 of 395 Ciity Coundill Meeting Minutes -[draft September 15, 2020 C.. 20.0378 PROCLAMATION PROCLAIMING SEPTEMBER 12 THROUGH SEPTEMBER 20, 2020 Ad WELCOMING WEEK IN THE CITY OF CHULA VISTA Mayor Casillas Sales read the proclamation and presented it to Communications Director Steinberger. Margaret Baker, representing South Bay People Power, submitted comments in support of the item. 1.. 20.0395 APPROVAL OF MINUTES of January 28 and 30, 2020. Recommended AcUon:: Coundill approve the imnutes. 2.. 20-0336 RESOLUTION NO. 2020-206 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2020/21 GENERAL FUND OPERATING BUDGET BY APPROPRIATING $7,500 TO THE ANIMAL CARE FACILITY BUDGET FOR UNANTICIPATED GRANTS (4/5 VOTE REQUIRED) Recommended AcUon:: Coundill adopt the resolluUon. 1 20.0345 RESOLUTION NO. 2020-20'7 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT AWARD FROM THE CALIFORNIA OFFICE OF TRAFFIC SAFETY FOR THE PURCHASE OF FIVE AUTO EXTRICATION TOOLS, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Recommended AcUon:: Coundill adopt the resolluUon. 4.. 20.0366 RESOLUTION NO. 2020-206 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE ASSISTANCE TO FIREFIGHTERS GRANT AWARD FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Recommended AcUon:: Coundill adopt the resolluUon. 5.. 20-0374. RESOLUTION NO. 2020-209 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR SERVICES TO ESCRIBE SOFTWARE LTD., FOR CITY COUNCIL, BOARDS, COMMISSIONS, SUBCOMMITTEES, AND COMMITTEE AGENDA AND MEETING AUTOMATION MANAGEMENT; AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Recommended AcUon:: Coundill adopt the resolluUon. NMI 2021-02-16 Agenda Packet Page 24 of 395 Ciity Councii1l IMeeting Kinutes - Draft September 15, 2020 6.. 20.0368 A. RESOLUTION NO. 2020-210 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING EMERGENCY CONTRACT CHANGE ORDERS WITH SANCON TECHNOLOGIES, INC. FOR THE CMP REHABILITATION INSIDE THE RIGHT-OF-WAY PROJECT (GIF' NOs. DRN0205/DRN0212); AND TRANSFERRING $1,450,000 IN TRANSNET APPROPRIATIONS FROM STM0402, MAJOR PAVEMENT REHABILITATION TO DRN0205 (4/5 VOTE REQUIRED) B. RESOLUTION NO. 2020-211 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $85,000 FROM THE AVAILABLE BALANCE OF THE SEWER FACILITIES REPLACEMENT FUND TO SWR0282 (4/5 VOTE REQUIRED) Recommended Action:: Councii1l adopt the resollutions. T. 20.0348 A. RESOLUTION 2020-212 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE OPTION TO EXTEND AGREEMENT BETWEEN THE CITY OF CHULA VISTA® AND PROJECT PROFESSIONALS CORPORATION FOR ON-CALL GIF' CONSTRUCTION MANAGEMENT CONSULTING SERVICES B. RESOLUTION 2020-213 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE OPTION TO EXTEND AGREEMENT BETWEEN THE CITY OF CHULA VISTA® AND KLIENFELDER CONSTRUCTION SERVICES INC. FOR ON-CALL GIF' CONSTRUCTION MANAGEMENT CONSULTING SERVICES Recommended Action:: Councii1l adopt the resollution. Approval of the Consent Calendar ACT1l0N:: A imotion was imade by Counciillimeimber IMcCann, seconded by Deputy IMayor Galvez, to approve staff's recommendations on the above Consent Calendar iiteims, headiings read, text waived. The it otion carded by the foll1lowing roll1l call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 yyy 11 1 1 1 1 AR&A 77�ere were none. City of Chula Vista Page 3 2021-02-16 Agenda Packet Page 25 of 395 Ciity Coundill Meeting Minutes -[draft September 15, 2020 8.. 20 - 0379 PUBLIC COMMENTS RECEIVED foir Septembeir 15, 2020 Tess Reed, Chula Vista resident, submitted comments regarding concerns with road construction around Broadway & 3rd and Naples & Palomar. Grace Sardina, submitted comments regarding Christopher Columbus statues. A petition was received concerning issues surrounding a snort -term vacation rental located at 603 Melrose Ave. 77�e following members of the public submitted comments expressing concern regarding short-term vacation rentals: -Al Olvera -Suzanne Olvera ACTION ITEMS 9.. 20.0327 LIVING WITH WILDLIFE - A PRESENTATION ON HANDLING WILDLIFE CONFLICTS 77�e following individuals gave a presentation on the item: -Animal Care Facility Director Mills -Animal Control Officer Supervisor Valles -Lauren DuBois and Carly Padilla, representing Project Wildlife -Kent Smirl and Rebecca Barboza, representing California Fish & Wildlife Council discussion ensued. Animal Care Facility Director Mills responded to questions of the Council. 77�e following members of the public submitted written wildlife: -Madeline Bernstein -Patricia McPherson -Joanne Fischer -Sarah Berger -Carmen Alvarez -Rebecca Dmytryk -Lisa Levinson -Vernon Berger -Patty Prescott -Member from Project Coyote comments with concerns regarding handling 10.. 20.0338 RESOLUTION NO. 2020-214 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SECOND AMENDED AND RESTATED REVENUE SHARING AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT (CHULA VISTA BAYFRONT RESORT HOTEL AND CONVENTION CENTER AND RELATED PUBLIC INFRASTRUCTURE) Development Services Director Allen gave a presentation on the item. Em 2021-02-16 Agenda Packet Page 26 of 395 Ciity Coundill IMeeting Minutes - Draft September 15, 2020 ACT110W A imotion was imade by Coundillimeirnber IMcCann, seconded by Coundillimeirnber Padl111la, to adopt Resollution No. 2020-214, headiing read, text waived. The imotion carried by the foll1lowing roll11 call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 11.. 20-0353 RESOLUTION NO. 2020-215 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF BONDS TO REFUND CERTAIN PENSION OBLIGATIONS OF THE CITY, APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A TRUST AGREEMENT AND PURCHASE CONTRACT, AUTHORIZING JUDICIAL VALIDATION PROCEEDINGS RELATING TO THE ISSUANCE OF SUCH BONDS AND APPROVING ADDITIONAL ACTIONS RELATED THERETO Finance Director Bilby gave a presentation on the item and responded to questions of the Council. Legal counsel Stiffel Nicolaus and Stradling, Yocca, Carlson, & Rauth were available for questions. Council discussion ensued. ACT110W A imotion was imade by Coundillimeirnber Padiilllla, seconded by Deputy IMayor Galvez, to adopt Resollution No. 2020-215, headiing read, text waived. The imotion carried by the foll1lowing roll11 call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 CITY ANAGER'S REPORTS City Manager Kachadoorian announced the City had received several awards from the American Public Works San Diego Chapter. Emergency Services Coordinator King provided an update on COVID-19. 12.. 20-0382 RATIFICATION OF APPOINTMENTS TO THE FOLLOWING BOARDS & COMMISSION& -Ang&h1ca Sepulveda, ClIvl!lI Seirvllce Commission -AsM&Igh Padilla, Parks and Recreation Commission Councilmember Padilla announced that he did not participate in the process or interview of Ms. Padilla and that, although he did not have a legal conflict on the item, he would abstain from voting to avoid the appearance of a conflict. City Attorney Googins announced that there was no legal prohibition on a councilm ember's relative serving on the Parks and Recreation or Civil Service Commission, and that, in the interest of avoiding the appearance of a conflict, the members related to the applicants proposed for appointment under Items 12 and 13 chose to abstain from voting on the items. Em 2021-02-16 Agenda Packet Page 27 of 395 Ciity Coundill IMeeting Minutes - Draft September 15, 2020 ACT110W A imotion was imade by IMayor Casiillllas Salias, seconded by Deputy IMayor Galvez, to ratify the appoiintiment of Angelliica Sepullveda to the Ciiviill Serviice Coirnirniissiion. The imotion carded by the foll1lowing roll11 call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 Councilmember Padilla left the meeting during voting on the Parks and Recreation Commission appointment. ACT110W A imotion was imade by IMayor Casiillllas Salias, seconded by Deputy IMayor Galvez, to ratify the appoiintiment of Ashlleiigh Padl111la to the Parks and Recreabion Coirnimissiion. The imotion carded by the foll1lowing roll11 call vote:: Yes:: 4 - Diaz, Galvez, McCann and Casillas Salas No„ 0 Abstain:: I - Padilla Councilmember Padilla returned to the meeting. 13.. 20.0383 DEPUTY MAYOR GALVEZ: RATIFICATION OF APPOINTMENT OF SARA SALAS TO THE CIVIL SERVICE COMMISSION Mayor Casillas Salas left the dais during voting on Item 13. ACT110W A imotion was imade by Deputy IMayor Galvez, seconded by Coundillimeirnber Padl111la, to ratify the appoiintiment of Sara Salias to the Ciiviill Serviice Coirnirniissiion. The imotion carded by the foll1lowing roll1l call vote:: Yes:: 4 - Diaz, Galvez, McCann and Padilla No„ 0 Abstain:: I - Casillas Salas MAYOR'S REPORTS Mayor Casillas Salas spoke regarding the following recent events: El Grito de Dolores, Mexican Independence Day, Hispanic Heritage Month, a lunch hosted by Seven Mile Casino for first responders, and a press conference regarding the closing of illegal cannabis businesses. Mayor Casillas Salas expressed gratitude and recognized the City's firefighters battling the multiple fires within the state: Dolan Fire Near Los Padres National Park Ken Stovall Matt Minehan Phoenix Humes Austin 77�orsnes ButtelTehamalGlenn Lightning Complex Fire Rich Eagan Valley Fire near Lyons Valley Brendan Barahura El Dorado Fire near Yucaipa Erik Nelson Em 2021-02-16 Agenda Packet Page 28 of 395 mmaffl= Creek Fire near Mammoth Lakes Charles Kuniyoshi Kurt Baca Javier Araiza Dan Tarin Fernando Bayardi Castle Fire near Sequoia National Forest Rich Brocchini Meeting Minutes -[draft September 15, 2020 Sonoma Lake/Napa Unit Lightning Fire near Santa Rosa David Acosta W-5 Cold Springs Fire near Susanville Francisco "Rick" Soto Ricardo Fuentes Jeremy Czapinski Santa Clara Unit Lightning Complex Fire near Contra Costa Ray Smith Jed Burt Rob Guarcello Jacques Beauchaine Councilmembers expressed gratitude to the City's first responders. Deputy Mayor Galvez spoke regarding two luncheons in tribute to 9111. She congratulated Councilmember Diaz on the successful closure of illegal cannabis businesses in his district and thanked the library for distributing masks. Deputy Mayor Galvez announced she had hired an intern, Jared Blackwell, for her district. Councilmember Padilla spoke regarding an ambush of two Los Angeles County Deputy Sheriff's, and stated that his thoughts and prayers were with the families. He stated that Mayor Casillas Salas was recognized at the Equality California Golden State Gala with the Ally Leadership Award. Councilmember McCann thanked Councilmember Padilla for his words regarding the Los Angeles County Deputy Sheriff's ambush. He stated he was grateful for the 9111 ceremonies and he thanked Councilmember Diaz for his leadership in closing the illegal cannabis businesses. Councilmember Diaz reflected on 9111. He acknowledged a// involved in the closing of illegal cannabis businesses. GITYATT ORNEY'S REPORTS 14.. 20-0387 ANNOUNCEMENT OF UPCOMING TRAINING ON THURSDAY, OCTOBER 1, 2020, AT 5:OOP.M. ON THE TOPIC OF CALIFORNIA'S OPEN MEETING LAWS AND ETHICS REQUIREMENTS (A!31234): TRAINING AND DISCUSSIONS ON TRANSPARENCY AND GOOD CONDUCT FOR PUBLIC OFFICIALS City of Chula Vista Page 7 2021-02-16 Agenda Packet Page 29 of 395 Oity Coundill Meeting Minutes -[draft September 15, 2020 City Attorney Googins announced the upcoming training and stated that it would be virtual. 77�e meeting was adjourned at 8:45 p.m. Minutes prepared by: Sheree Kansas, Deputy City Clerk Kerry K. Rlgebw, MMC, Gity CIIeirk EM 2021-02-16 Agenda Packet Page 30 of 395 LM Tuesday, September 22, 2020 5::00 PIM Vila Telleconference Coundill Chambers 276 4th Avenue, Buiilldlng A Ch ulla Viista, CA 91910 Pursuant to the Governor of the State of California's Executive Order N-29-20, and in the interest of public health and safety during the COVID-19pandemic, members of the City Council and staff participated in this meeting via teleconference. Members of the public participated remotely and were not present in Council Chambers. All votes were taken by roll call and public comments were submitted electronically or otherwise in writing. 77�e City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda items may be taken out of order during the meeting. 77�e agenda items were considered in the order presented. A regular meeting of the City Council of the City of Chula Vista was called to order at 5:00 p.m. via teleconference and in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, CA. Present:: Councilmember Diaz, Deputy Mayor Galvez, Councilmember McCann, Councilmember Padilla and Mayor Casillas Salas Also Present.- City Manager Kachadoorian, City Attorney Googins, City Clerk Bigelow, and Assistant City Clerk Turner Deputy Mayor Galvez led the Pledge of Allegiance. Mayor Casillas Salas called for a moment of silence in honor of Supreme Court Justice Ruth Bader Ginsburg. She and Deputy Mayor Galvez paid tribute to Justice Ginsburg. A.. 20-0377 UPDATE ON COMMUNICATIONS ACTIVITIES IMPLEMENTED DURING THE COVID-19 PANDEMIC FROM MARKETING AND COMMUNICATIONS MANAGER ANNE STEINBERGER Marketing and Communications Manager Steinberger gave a presentation on the item. Item 3 was removed from the Consent Calendar at the request of Councilmember Diaz. Page I 2021-02-16 Agenda Packet Page 31 of 395 Ciity Coundill IMeeting Kinutes - Draft September 22, 2020 1.. 20.0399 RESOLUTION NO. 2020-216 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING AND CONFIRMING EMERGENCY ORDER 002-2020 (AMENDED SEPTEMBER 15, 2020) OF THE CHULA VISTA DIRECTOR OF EMERGENCY SERVICES AFFIRMING AND ADOPTING COUNTY HEALTH ORDERS AS A CITY ORDER Recommended Action:: Coundill adopt the resollution. 2.. 20.0372 RESOLUTION NO. 2020-217 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE TO AMEND THE LIST OF OFFICIALS, CANDIDATES AND DESIGNATED EMPLOYEES WHO ARE REQUIRED TO FILE PERIODIC STATEMENTS OF ECONOMIC INTERESTS AND THE DISCLOSURE CATEGORIES FOR SAID FILERS Recommended Action:: Coundill adopt the resollution. Item 3 was removed from the Consent Calendar. Approval of the Consent Calendar ACT1l0N:: A imotion was imade by Counciillimeimber IMcCann, seconded by Counciillimeimber Padl1l1la, to approve staff's recommendations on the above Consent Calendar iteirns, headiings read, text waived. The imotion carded by the foll1lowing roll1l call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 1 20-0371 RESOLUTION NO. 2020-213 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING AN AGREEMENT WITH URBAN CORPS OF SAN DIEGO COUNTY FOR THE POLICE DEPARTMENT FIRST FLOOR RENOVATION PROJECT IN AN AMOUNT OF $135,737.95 Finance Director Bilby responded to questions of the Council. At the request of Councilmember Diaz, there was consensus of the Council to make a referral to staff to track and recruit more minority- and veteran -owned businesses for City bids. Yes:: No:: Abstain:: A imotion was imade by Counciillimeimber Diaz, seconded by Deputy IMayor Galvez, to adopt Resollution No. 2020-218, heading read, text waived. The imotion carried by the foll1lowing roll1l call vote:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas 0 I NMI 2021-02-16 Agenda Packet Page 32 of 395 Ciity Coundill IMeeting Winutes -[draft September 22, 2020 4.. 20-0389 PUBLIC COMMENTS RECEIVED foir Septembeir 22, 2020 Grace Sardina submitted comments in opposition to removing the Christopher Columbus statue and requested an item regarding the status of the statue be added to a Council agenda. Christopher Ramirez, Chula Vista resident, submitted comments encouraging the City to fly the POWIMIA flag at City Hall and adding veteran resource information to City websites. ACTION ITEMS 5.. 20-0330 CONSIDERATION OF ADOPTING AN ANNEXATION MAP SHOWING TERRITORY PROPOSED TO BE ANNEXED TO IMPROVEMENT AREA C OF COMMUNITY FACILITIES DISTRICT NO. 9'7-2 AND DECLARING INTENTION TO AUTHORIZE THE ANNEXATION A. RESOLUTION NO. 2020-219 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN ANNEXATION MAP SHOWING TERRITORY PROPOSED TO BE ANNEXED TO IMPROVEMENT AREA "C" OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) B. RESOLUTION NO. 2020-220 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) AND IMPROVEENT AREA"C"TM HERETO City Attorney Glen Googins announced that Item 5 was inadvertently listed as a public hearing on the agenda, but should have been an action item. David Butler, Chula Vista resident, submitted comments in support of staff's recommendation and expressed concern regarding potential traffic and parking safety issues. ACT110W A imotion was irade by IMayor Casii1l1las Sallas, seconded by Coundillimeirnber IMcCann, to adopt Resollution Nos. 2020-219 and 2020-220, headings read, text waived. The imotion carried by the foll1lowing roll1l call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 Abstain:: 0 6.. 20-0390 RESOLUTION NO. 2020-221 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2019/2020 BUDGET TO ADJUST FOR VARIANCES, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Budget and Analysis Manager Prendell gave a presentation on the item and responded to questions of the Council. Em 2021-02-16 Agenda Packet Page 33 of 395 Ciity Coundill IMeeting Minutes - Draft September 22, 2020 ACT110W A imotion was imade by IMayor Casiillllas Salias, seconded by Deputy IMayor Galvez, to adopt Resollution No. 2020-221, heading read, text waived. The imotion carried by the foll1lowing roll1l call vote:: Yes:: 5 - Diaz, Galvez, McCann, Padilla and Casillas Salas No„ 0 T. 20.04-01 PRESENTATION FROM STAFF REGARDING RECENT FEDERAL AND STATE COVID-19 EVICTION PROTECTION LAWS AND REGULATIONS, CITY COUNCIL CONSIDERATION OF ITS REMAINING OPTIONS TO EXTEND OR MODIFY CITY'S OWN COVID-19 EVICTION PROTECTIONS, AND POSSIBLE CITY COUNCIL DIRECTION TO STAFF TO BRING BACK FOR CITY COUNCIL CONSIDERATION ONE OR MORE SPECIFIC ACTIONS TO FURTHER PROTECT CITY RESIDENTIAL OR COMMERCIAL OWNERS AND/OR TENANTS FROM COVID-19 RELATED DISPLACEMENT OR HARDSHIP Councilmember McCann stated he would abstain from voting on Item 7 due to a potential property -related conflict of interest. He was not present during discussion and voting on the item. Housing Manager Hines gave a presentation on the item and was available for questions along with City Attorney Googins and Deputy City Manager Crockett 77�e ad-hoc subcommittee, consisting of Deputy Mayor Galvez and Councilmember Padilla, established to advise the Council on the COVID-19Eviction Protection laws and regulations, reviewed AB 3088 and the new state laws with City Attorney Googins. 77�e subcommittee determined that the federal and state laws and regulations were consistent with the City's protections. It recommended the City allow protections to expire and continue to monitor federal and state laws and regulations to determine if additional action was warranted. CITY ANAGER'S REPORTS City Manager Kachadoorian announced that the City's COVID case rate has decreased and the area would refrain from moving to the purple tier. Emergency Services Coordinator King gave a COVID- 19 update. MAYOR'S REPORTS Mayor Casillas Salas spoke regarding the following: continuing to wear masks and social distance, the importance of completing the US Census, supporting small businesses through networks such as Alignable, and National Voter Registration Day. Councilmembers Padilla and McCann paid tribute to Supreme Court Justice Ruth Bader Ginsburg and her life accomplishments. Deputy Mayor Galvez acknowledged City staff for their continued great work throughout the pandemic and spoke regarding the upcoming annual I Love A Clean San Diego Coastal Cleanup virtual event. Em 2021-02-16 Agenda Packet Page 34 of 395 Ciity Coundill Meeting Minutes -[draft September 22, 2020 GITYATT ORNEY'S REPORTS 8.. 20-0388 ANNOUNCEMENT OF UPCOMING TRAINING ON THURSDAY, OCTOBER 1, 2020, AT 5:OOP.M. ON THE TOPIC OF CALIFORNIA'S OPEN MEETING LAWS AND ETHICS REQUIREMENTS (A!31234): TRAINING AND DISCUSSIONS ON TRANSPARENCY AND GOOD CONDUCT FOR PUBLIC OFFICIALS City Attorney Googins spoke regarding the upcoming training. 77�e meeting was adjourned at 6:50 p.m. Minutes prepared by: Leah Larrarte, Deputy City Clerk Kerry K. Rlgebw, MMC, CIIty ClIeirk Em 2021-02-16 Agenda Packet Page 35 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 21-0014 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CF ULA VISTA ACKNOWLEDGING RECEIPT OF COUNCIL POLICY NO. 220-01, THE CITY OF CF ULA VISTA INVESTMENT POLICY AND GUIDELINES; AMENDING THE EXISTING POLICY; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER B. INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2020 11 17CO M M 1�.N 1) A, ("I'll 0 N Council adopt the resolution and receive the report. SUMMARY Per California Government Code Section 53607, on an annual basis the City Council may delegate to the City 'Treasurer the authority to conduct the investment activities of the City. And per Government Code Section 53646, the City Treasurer may annually present the City's Investment Policy to the City Council to reaffirm or make any changes to the existing policy. The Investment Policy provides guidelines for the investment of idle funds and affords the City various investment opportunities, as long as the investment is deemed prudent and is allowable under Government Code Section 53600, et seq. 'The Policy was reviewed and adopted by City Council on February 18, 2020. At this time, staff is recommending changes to the policy to clarify Section 9.0, Authorized and Suitable Investments, as it relates to the investment types Commercial Paper and Money Market Funds. 'Transmitted herewith is the City's investment report for the quarter ended December 31, 2020. To meet the reporting requirements set forth in the California Government Code Sections 53600 et seq. and the City of Chula Vista Investment Policy and Guidelines, a separate report was distributed to the City Council in January. 1 11E III�v �� EW The activity is not a "Project' as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. v 0 01 P � (:, 1 1 2021-02-16 Agenda Packet Page 36 of 395 Not applicable. DISCUSSION Investment Policy The City's Investment Policy and Guidelines was last amended on February 18, 2020 by Resolution 2020- 024 and was intended to provide direction for the prudent investment of temporarily idle cash, and for maximizing the efficiency of the cash management process. The stated goal is to enhance the economic condition of the City while ensuring the safety of funds invested. The policy includes a list of specific investment instruments available under the relevant California Government Code section 53600, et seq. Each investment transaction is made in the context of first ensuring the "safety" of principal, second, investing only for that timeframe that the cash is not needed for operational purposes ("liquidity"), and last seeking the highest return possible ("yield") provided that the first two factors are met. Per section 18.0 of the Investment Policy, each fiscal year the Finance Director/Treasurer shall provide a copy of the Policy for adoption by the City Council. At this time, staff is recommending changes to the policy to clarify Section 9.0, Authorized and Suitable Investments, as it relates to the investment types Commercial Paper and Money Market Funds. The proposed amendment to the Investment Policy is reflected in redline on Attachment 3 to this Staff Report. quarterly Investment Report The total cash and investment portfolio held by the City as of December 31, 2020 was $398,907,603 and total cash and investments held by the trustees was $47,775,389. The cash and investments held by the City are composed of the following components: Managed Investment Portfolio ($268,472,538), State of CA Local Agency Investment Fund ($70,S89,078), County of San Diego Pooled Investment Fund ($22,007,262), Cash/Time Deposits ($36,055,533), and accrued interest on investment ($1,783,193). Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted by Resolution 2020-024 on February 18, 2020. During the quarter, eight investments matured totaling $15,998,000. A portion of the funds from the matured investments was utilized to purchase five municipal bonds ($5,435,000). Incoming transfers to the City's Bank of America account totaled ($18,600,000) for the quarter and included ($4,000,000) from the State of CA Local Agency Investment Fund and ($14,600,000) from Bank of New York Mellon with ($6,000,000) of those funds subsequently sent to the County of San Diego Pooled Investment Fund for investment purposes.The balance of funds from the incoming transfers ($12,600,000) was utilized to cover the City's operating expenses. 2021-02-16 Agenda Packet Page 37 of 395 Two-year Treasuries yielding 0.13% at the beginning of the quarter ended the quarter at the same 0.13% yield. The City's investment portfolio continued to outperform the two-year treasury yield this quarter. As of December 31, 2020, the Weighted Yield to Maturity on the Managed Investment Portfolio was 2.20%, which was a decrease of 2 basis points from the previous quarter. At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 2.14 years, which decreased from 235 the previous quarter and is within the Council Policy. The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At their November 5 and December 16 meetings, the FOMC voted to maintain the Federal Funds Rate target range at its current level of 0.00% to 0.25%. The United States and the rest of the world continue to deal with the COVID-19 pandemic, which has caused tremendous human and economic hardship. The following excerpts are from the statement issued by the FOMC following their December 16 meeting. "...Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term..." Finance staff continued to manage the portfolio and work with multiple broker/dealers for investment purchases throughout the quarter. Ongoing portfolio management activity will continue to be performed in-house by the Director of Finance and finance staff. There is no further activity to report on other than routine investments by the City's Finance Department. CON171,11(`T Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property -related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. 1711SCA)IIL IIMI�IAC'T Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action. 3 2021-02-16 Agenda Packet Page 38 of 395 ONGOING 171SCAI. JMI�IAC'T There is no ongoing fiscal impact by this action. ATTACHMENTS Summary of Cash and Investments as of December 31, 2020 Investment Report for the Quarter Ended December 31, 2020 Council Policy 220-01 Investment Policy and Guidelines, reflecting proposed amendment Staff Contact: David Bilby, Director of Finance/Treasurer, Finance Department Lisa Partee, Fiscal and Management Analyst, Finance Department P 14 2021-02-16 Agenda Packet Page 39 of 395 RESOLUI-ION NO, 2021._ R SC)I UI-ION 021.- RESOLUI-ION OF THE ary COUNCIL OF FHE ary OF CHULA vis,FA ACKNOWLEDGING RECEip,r OF COUNCIL POLICY 220-0I, ,FH ary OF CHULA vis,FA INVEs,rMEN'r POLICY AND GUIDELINES; AMENDING 'FHE? EX15,rIN(1 POLICY; AND DELEGA,rING INVEs,rMEN'r Acriwry AUFHORrry 'ro FHE DIREC,rOR OF FINANCE/' REASURE WHEREAS, the City of Chula Vista's "Investment Policy and Guidelines," adopted on February I8, 2020 by Resolution No. 2020-024 (the Policy), is intended to provide direction for the prudent investment of temporarily idle cash and to maximize the efficiency of the cash management process; and WHEREAS, the stated goal of the Policy is to enhance the economic condition of the City while ensuring the safety of funds invested; and WHEREAS, the Policy includes a list of specific investment instruments available pursuant to California Government Code sections 53600, elseq, and 53635; and WHEREAS, each investment transaction is made in the context of First ensuring the "safety" of principal, second, investing only for that timeframe that the cash is not needed for operational purposes ("liquidity"), and last seeking the highest return possible ("yield") provided that the First two factors are met; and WHEREAS, in accordance with Section I8.0 of the Policy, staff has provided the City Council with a copy of the City's Investment Policy; and WHEREAS, staff recommends that the Policy be amended to clarify Section 9.0, Authorized and Suitable Investments, as it relates to the investment types Commercial Paper and Money Market Funds; and WHEREAS, City staff recommends that the Policy be amended to reflect these changes; M51 WHEREAS, pursuant to California (lovernment Code section 53607, the City Council may delegate the authority to conduct investment activities of the City to the Finance Director/'Treasurer on an annual basis, 2021-02-16 Agenda Packet Page 40 of 395 Resolution No. Page 2 NOW,,rHEREFORE, BE i,r RESOLVED by the City Council of the City of Chula Vista that: • It acknowledges receipt of council policy 220-01, the City of Chula Vista Investment Policy and Guidelines; • Amends the existing policy as reflected in Exhibit I; and • Delegates the authority to conduct and supervise the investment activities of the City to the Director of Finance/'Treasurer. David Kilby Director of Finance/'Treasurer Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 41 of 395 Summary of Cash and Investments as of December 31, 2020 City of Chula Vista Investment Agreements O O O %m@ U 31.652.094 31.603.077 31.652.094 7.09% �anagedUnvestment PortfoUio 4.493.100 4.493.100 4.493.100 1.01% IBNYCustodial Cash Account $330.371 $330.371 $330.371 0.07% U.S.Treasury Bomd/Nohe 6.500.000 6.511.970 6.523.516 1.46% Federal Agency Collateralized IMtgOb. O O O 0.00% Federal Agency Bomd/Nohe 40.719.000 41.695.662 40.674.047 9.11% Corporate Note 103.980.000 100.373.635 104.973.520 23.50% Commercial Paper O O O 0.00% Certificate ofDeposit 39.719.000 41.201.170 39.721.305 0.09% IMumiuipa|lBomd 59.000.000 61.026.205 60.170.100 13.47% Supnamadoma|m 7.000.000 7.135.630 6.004.709 1.52% Asset lBaukSeuurityKColateral izedIMtgOb. 5.006.364 5.240.244 5.160.551 1.16% PlacementService Deposits Managed Unvestment PortfoUio SubtotaU 266,500,986 276,509,146 268,472,538 60.1096 PociUedUnvestments; State ofCALocal Agency Investment Fund 70.509.070 70.749.400 70.509.070 15.00% County of San Diego Pooled U Fund 22,007,262 22,231,296 22,007,262 4.93% PociUedUnvestmments; SubtotaU 92,596,340 92,980,704 92,596,340 20.7396 Casb/TiimmeDeposifts; 36.055.533 36.055.533 36.055.533 0.07% Accrued Untemest 1,783,193 17031Q3 1,783,193 O40% Totall Cash & Investments; HeIld by the Ciity $396,936,051 $407,328,575 $398,907,603 89.30% Investment Agreements O O O 0.00% KNutua|Fumdm 31.652.094 31.603.077 31.652.094 7.09% Cash with Fiscal Agents 4.493.100 4.493.100 4.493.100 1.01% Restricted Cash 045.015 045.015 045.015 0.19% U.S. Government 10,785,180 10,785,180 10,785,180 241% Totall HeIld by lBank Trustee/Fiiduciiary Funds $47,775,389 $47,806,372 $47,775,389 10.70% Totall Portfolflio $444,711,440 $455,134,948 $446,682,992 100.00% Notes 1 Reflects bond proceeds and tax levy revenues held bytrustee inaccordance with bond covenants. 2. 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LO ccq UD UD 619 UD UD 6-s 00 0 00 0 00 0 Ci 00 0 0 co 0 0 m Il L q q II m Lf) LO Coy (0 UD UD 6-1 UD UD 6-1 Cy 0 C6 om CyCi 0 IS, r- 2 Iq 10 Im a �10 0 00 00 00 00 00 00 00 Lf) 00 00 r .2 Mn 20 t; Z 16,2 0 CL I W, v I I City of Chula Vista Corporate Bonds - Sector Distribution EXXON MOBIL 3/1/2021 30231GAV4 2.80 3,004,290.00 Energy MORGAN STANLEY 4/21/2021 61746BEA0 2.36 452,790.00 Financials DETROIT EDISON 6/1/2021 250847EG1 2.91 3,017,070.00 Utilities CITIBANK NA 7/23/2021 17325FAQ1 3.41 3,044,190.00 Financials SAN DIEGO G & E 8/15/2021 797440BN3 2.93 2,018,709.42 Utilities NORTHERN TRUST CORP 8/23/2021 665859AM6 3.22 3,059,070.00 Financials CATERPILLAR 9/7/2021 14913Q2N8 3.19 2,038,660.00 Industrials TOYOTA MOTOR CREDIT 9/15/2021 89233P5F9 3.11 1,021,430.00 Consumer Discretionary ORACLE CORP 9/15/2021 68389XBK0 3.04 1,010,070.00 Information Technology JOHNSON & JOHNSON 3/3/2022 478160CD4 2.79 4,086,880.00 Consumer Staples AMERICAN EXPRESS CREDIT 3/3/2022 0258MOEG0 3.20 3,076,890.00 Financials USBANCORP 3/15/2022 91159HHC7 3.17 3,091,860.00 Financials MUFG UNION BANK 4/1/2022 90520EAH4 2.34 1,285,549.65 Financials GLAXOSMITHKLINE 5/8/2022 377373AD7 2.81 3,102,750.00 Health Care QUALCOMM INC 5/20/2022 747525AE3 3.14 2,693,116.95 Information Technology AMERICAN HONDA FINANCE 6/27/2022 02665WCY5 1.83 2,569,075.00 Consumer Discretionary UNITED HEALTH 7/15/2022 91324PCN0 3.24 3,144,600.00 Health Care PNC BANK 7/28/2022 69353RFE3 3.53 4,131,000.00 Financials PACCAR FINANCIAL 8/10/2022 69371RN77 2.05 2,583,900.00 Financials PROCTOR & GAMBLE 8/11/2022 742718EU9 3.24 3,094,170.00 Consumer Staples ESTEE LAUDER CO 8/15/2022 29736RAE0 1.72 258,320.00 Consumer Staples CHARLES SCHWAB CORP 9/1/2022 808513AG0 1.80 2,490,903.36 Financials TOYOTA MOTOR CREDIT 9/8/2022 89236TEC5 1.83 1,546,725.00 Consumer Discretionary WALT DISNEY COMPANY 9/15/2022 254687CM6 1.64 1,143,628.95 Communication Services JP MORGAN CHASE 9/23/2022 46625HJEl 1.77 2,660,826.30 Financials PACCAR FINANCIAL 9/26/2022 69371 RQ33 1.15 1,029,600.00 Financials UNITED PARCEL SERVICE 10/1/2022 911312AQ9 3.37 3,889,725.00 Industrials UNITED HEALTH 10/15/2022 91324PDD1 2.21 2,602,307.04 Health Care CHUBB INA HOLDINGS INC 11/3/2022 00440EAUl 1.78 2,606,050.00 Financials AMERICAN HONDA FINANCE 11/16/2022 02665WCA7 2.25 494,040.72 Consumer Discretionary WALT DISNEY COMPANY 12/1/2022 25468PCW4 1.93 1,557,630.00 Communication Services COOPERATIVE RABOBANK NY 1/10/2023 21688AAL6 2.91 2,622,200.00 Financials NIKE INC 5/1/2023 654106AC7 2.09 1,249,944.00 Consumer Discretionary BP CAPITAL MARKETS 5/10/2023 10373QAL4 2.59 3,681,042.60 Energy LOEWS CORP 5/15/2023 540424AQ1 1.74 1,570,350.00 Financials SIMON PROPERTY GROUP LP 6/1/2023 828807DD6 1.92 2,102,120.00 Real Estate JOHN DEERE 6/7/2023 24422EUFI0 1.72 2,149,360.00 Industrials GILEAD SCIENCES 9/1/2023 375558BL6 2.54 3,252,351.12 Health Care CUMMINS INC 10/1/2023 231021AR7 2.22 3,792,390.00 Industrials CATERPILLAR 12/7/2023 14913Q2S7 2.56 4,057,235.00 Industrials GEORGIA -PACIFIC 1/15/2024 373298CF3 2.42 390,448.00 Materials JOHN DEERE 3/7/2024 24422EUX5 1.22 3,211,950.00 Industrials UNILEVER CAPITAL 5/5/2024 904764AX5 1.75 1,598,490.00 Consumer Staples UNILEVER CAPITAL 5/5/2024 904764AX5 1.79 2,131,320.00 Consumer Staples APPLE INC 5/6/2024 037833AS9 1.63 275,300.00 Information Technology APPLE INC 5/11/2024 037833CU2 1.69 700,862.50 Information Technology TEXAS INSTRUMENTS 5/15/2024 882508BB9 2.28 1,068,060.00 Information Technology BNY MELLON 5/15/2024 06406HCV9 1.36 656,280.00 Financials AMAZON.COM INC 8/22/2024 023135AZ9 1.88 244,574.94 Consumer Discretionary BURLINGTON NORTH SANTA FE 9/1/2024 12189LAT8 1.87 1,097,230.00 Industrials HERSHEY COMPANY 11/15/2024 427866BC1 1.87 ----716,299.85 Consumer Staples Total 1x8,373,635.40 Information Technology Financials Real Estate Consumer Discretionary Industrials Consumer Staples Energy Utilities Materials Communication Services Health Care 5,747,409.45 5.30% 34,361,459.31 31.71% 2,102,120.00 1.94% 7,125,789.66 6.58% 20,236,550.00 18.67% 11,885,479.85 10.97% 6,685,332.60 6.17% 5,035,779.42 4.65% 390,448.00 0.36% 2,701,258.95 2.49% 12,102,008.16 11.17% Total 108,373,635.40 00.001/6 Corporate Bonds - Sector Distribution 2021-02-16 Agenda Packet Page 15 of 15 Page 57 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 1 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 20111'-020 (2/22/11), 20112.-034(3/113/12), 20113'-020 (2/26/13), 2014-039 (3/11/14), 20114-191 (10/28/14), 20115'-041 (3/03/20115), 20116-046 (03/15/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/20118), 20119'-086 (05/211/2019), 2020-024 (02/18/2020), 202 l .-XXX (02/16/2021) U101 MINXIM This "Investment Policy and Guidelines" (the "Investment Policy") Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista's (the "City") cash balances, and outline policies to assist in maximizing the efficiency of the City's cash management system, while meeting the daily cash flow demands of the City, 'The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management, 'rhis Investment Policy applies to all Financial assets of the City of Chula Vista, as indicated in 3 below, 'These funds are accounted for in the City's Comprehensive Annual Financial Report, 'The Director of Finance/'Treasurer is responsible for investing the unexpended cash in the City 'Treasury for all funds, except for the employee's retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements, 'The Director of Finance/'Treasurer will strive to maintain the level of investment of this cash as close as possible to 100/®. 'These funds are described in the City's annual Financial report and include: 0 General Fund • Special Revenue Funds • Capital Project Funds • Enterprise Funds • 'Frust and Agency Funds • Any new fund created by the legislative body, unless specifically exempted 'rhis Investment Policy applies to all transactions involving the Financial assets and related activity of the foregoing funds, 2021-02-16 Agenda Packet Page 58 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 2 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 1185711 (2/4/97); 119375 (2/l6/99); 2000-050 (2/115/00); 20011.-026 (2/113/011 ); 2002-039 (2/112/02), 2005- l 84 (6/7/05); 2006- 1176 (6/l3/06); 2008-054 (2/112/08), 20110-045 (3/2/110), 201 1.-020 (2/22/111), 20112'-034(3/113/112), 20113'-020 (2/26/113), 20114-039 (3/111 /114), 20 l 4- l 9 l (110/28/114), 20115'-0411 (3/03/20115), 20116-046 (03/115/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8); 20119'-086 (05/211 /20119), 2020-024 (02/11 8/2020); 202 l .-XXX (02/116/20211 ) erinitted documents. If the bond documents are silent as to will be invested in the securiti isions of this ere in this a2ieeds. The standard of prudence to be used by the Director of Finance/'Treasurer shall be the "prudent investor standard". 'This shall be applied in the context of managing an overall portfolio, The "prudent investor standard" is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: I I ... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore Fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like an-ris, to safeguard the principal and maintain the liquidity needs of the agency..." 4.1 Personal Responsibility: 'The Director of Finance/'Treasurer, Assistant Director of Finance, 'Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments, �11 Consistent with this aim, investments are made under the ten -ns and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of 2021-02-16 Agenda Packet Page 59 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 3 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/OI), 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/IO), 20I I'-020 (2/22/I I); 20I2.-034(3/I3/I2); 20I3'-020 (2/26/I3); 20I4-039 (3/I l / l 4); 20 l 4- l 9 l (IO/28/I4), 20I5' -04l (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7'-078 (05/23/20I7); 20I8'-090 (05/22/20I8), 20I9'-086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 l .-XXX (02/I6/202I) Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio, 'To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio, OEM= The City of Chula Vista's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal, 5.3 Return on Investments: The City of Chula Vista's investment portfolio shall be designed with the objective of attaining a market -average rate of return throughout budgetary and economic cycles (market interest rates), within the City's Investment Policy's risk parameters and the City's cash flow needs. See also Section 16.0. 6.0 Delltgajicif�rrthc�r°oty4 'The City Council delegates responsibility for the investment program to the Director of Finance/'Treasurer for a period of one year. Subject to review, the City Council may renew the delegation of authority each year, 'rhe Director of Finance/'Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials, 'rhe responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee, 'rhe Director of Finance/'Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor, he advisor shall follow the Investment Policy and such other written instructions as are provided, 7.0 Ethics and Conflicts of Interest: 2021-02-16 Agenda Packet Page 60 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 4 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 1185711 (2/4/97); 119375 (2/l6/99); 2000-050 (2/115/00); 20011.-026 (2/113/011 ); 2002-039 (2/112/02), 2005- l 84 (6/7/05); 2006- 1176 (6/l3/06); 2008-054 (2/112/08), 20110-045 (3/2/110), 201 1.-020 (2/22/111), 20112'-034(3/113/112), 20113'-020 (2/26/113), 20114-039 (3/111 /114), 20 l 4- l 9 l (110/28/114), 20115'-0411 (3/03/20115), 20116-046 (03/115/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8); 20119'-086 (05/211 /20119), 2020-024 (02/11 8/2020); 202 l .-XXX (02/116/20211 ) In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to File annual disclosure statements as required for "public officials who manage public investments" [as defined and required by the Political Refon-n Act and related regulations, including Government Code Sections 811000, el seq., and the rules, regulations and guidelines promulgated by California's Fair Political Practices Commission (FPPC)], 8.0 Authorized Financial Dealers and Institutions: For any transactions executed by the City, the City's Director of Finance/Freasurer will maintain a list of the Financial institutions and brokers/dealers authorized to provide investment and depository services and will perfon-n an annual review of their Financial condition, 'rhe City will utilize Moody's Securities or other such services to deten-nme Financially sound institutions with which to do business, 'The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City's Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City's Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. 'To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal Financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate - income neighborhoods, 'To provide for the optimum yield in the investment of City funds, the City's investment procedures shall encourage competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i) the broker/dealer must be a "primary" dealer or regional broker/dealer that qualifies under Securities and Exchange Commission Rule 1150-1 (Unifon-n Net Capital Rule); (ii) the broker/dealer must be experienced in institutional trading nractices and familiar with the California Government Code as related to investments annronriate for 2021-02-16 Agenda Packet Page 61 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 5 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- l 84 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 2011-020 (2/22/11), 2012'-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016'-046 (03/15/2016), 2017'-075 (05/23/2017), 2015-090 (05/22/2015), 20 l 9-086 (05/21/2019), 2020-024 (02/18/2020), 2021' -XXX (02/16/2021) the City; and (iii) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit documents relative to eligibility including U4 form for the broker, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City's Investment Policy and agreeing to comply with the Investment Policy, The City's Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minn-num capital requirements of $10,000,000 and Five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and broker/dealers to conduct transactions on behalf of the City, 9.0 Authorized and Suitable Investments: 'rhe City is authorized by California Government Code Section 53600, A seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment's credit rating falls below the minn-num rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment, Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS' ACCEPFANCES, A maximum of 40% of the portfolio may be invested in bankers' acceptances, 'rhe maximum maturity is ISO days, No more than 30% of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank, See Government Code Section 53601(g). & NEGurIABLE CER,rIFICA,rES OF DEPOSi,r, A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD's), 'rhe maximum maturity of a NCD issue shall be 5 years, 'These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD's) differ from other certificates of deposit by their liquidity. NCD's are traded actively in secondary markets, See (lovernment Code Section 53601(1). C. COMMERCIAL PAPER, Per Government Code Section 53601(h), a maximum of 25% of the nortfolio mav be invested in commercial naner. No more than 10% of the outstandim-, commercial 2021-02-16 Agenda Packet Page 62 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 6 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/I2/02); 2005- l84 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/10), 2011-020 (2/22/11), 20I2.-034(3/I3/I2); 20I3' 020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 20I5' 04 l (3/03/20I5); 2016-046 (03/15/2016), 20I7' 078 (05/23/20I7); 20l 8-090 (05/22/20I8), 20I9' 086 (05/2I/20I9); 2020-024 (02/l8/2020); 202 l .-XXX (02/16/2021) paper of any single issuer may be purchased. The maximum maturity is 270 days, Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO, The entity that issues the commercial paper shall meet all of the following conditions in either paragraph ( I) or paragraph (2): l) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation, b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of "A" or higher, or the equivalent, by a NRSRO, 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company, b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, c. Has commercial paper that is rated in a rating category of "A. -I" or higher, or the equivalent, by a NRSRO, D. BONDS ISSUED BY THE ary OR ANY LOCAL AGENCY wi,rHIN 'FHE s,rA,rE OF CALIFORNIA, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 5360 l (a) and 53601(e). E. OBLIGA,rIONS OF 'FHE UNi,rED s,rA,rES 'FRE SI United States 'Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 53601(b). F. FEDERAL A(IENCIFS, Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, 'There is no limit on the percentage of the portfolio that can be invested in this category, See (lovernment Code Section 5360 l (0 G. REPURCHASE AGREEMEN'r, maximum tern l year. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed l year, A Master Repurchase Agreement must be signed with the bank or broker/dealer who is sellim-, the securities to the City, 'There is no limit on the mrcenta�e of the 2021-02-16 Agenda Packet Page 63 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 7 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/OI), 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/IO), 20I I'-020 (2/22/I I); 20I2.-034(3/I3/I2); 20I3'-020 (2/26/I3); 20I4-039 (3/I l / l 4); 20 l 4- l 9 l (IO/28/I4); 20I5' -04I (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7'-078 (05/23/20I7); 20I8'-090 (05/22/20I8), 20I9'-086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 l .-XXX (02/I6/202I) portfolio that can be invested in this category, See Government Code Section 5360 l (j). H. REVERSE -REPURCHASE AGREEMEN'rs (Requires Council approval for each transaction), Per Government Code Section 536M (j), reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) 'rhe security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale, b) 'rhe total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio, c) 'rhe agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the Final maturity date of the same security, d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security, e) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state - chartered bank that has or has had a significant banking relationship with a local agency. For purposes of this policy, "significant banking relationship" means any of the following activities of a bank: i. Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness, ii. Financing of a local agency's activities, iii. Accemance of a local a�encv's securities or funds as dej)osits, 2021-02-16 Agenda Packet Page 64 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENTP OLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 8 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/OI), 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/IO), 20I I'-020 (2/22/I 1); 20I2.-034(3/I3/I2); 20I3'-020 (2/26/I3); 20I4-039 (3/I l / l 4); 20 l 4- l 9 l (IO/28/I4), 20I5' -04l (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7'-078 (05/23/20I7); 20I8'-090 (05/22/20I8), 20I9'-086 (05/2I/20I9); 2020-024 (02/I8/2020); 202I' -XXX (02/I6/202I) I. MEDnjm,-,rERM CORPORA,rE No,rES, A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of Five years or less. Notes eligible for investment shall be rated in a rating category of "A," its equivalent or better by a NRSRO, See (lovernment Code Section 5360 l (k) J. NON -NE (iturIABLE CER,rIFICA,rES OF DEPOSi,r, 'rhe maximum maturity is 5 years, Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et sect. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance, There is no limit on the percentage of the portfolio that can be invested in this category, K. OBLIGA,riONS OF 'FHE? s,rA,rE OF CALIFORNIA, Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state, 'rhe maximum maturity is 5 years, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 5360 l (d). L. OBLIGA,rIONS OF,FHE o,FHER 49 s,rA,rES, Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state, 'rhe maximum maturity is 5 years, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 5360 l (d). M. MONEY MARKE'r FUNDS, A maximum of 20% of the portfolio may be invested in money market funds. No more than I0% of the agency's funds may be invested in shares of beneficial interest of any one mutual fund. Local agencies may invest in "shares of beneficial interest" issued by diversified management companies which invest in the securities and obligations as authorized by California Government Code Section 5360I, subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, 'They must have the highest rating from two NRSRO's or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than Five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000, 'rhe purchase price of the shares may not include commission, See Government Code Section 5360I(1). N. SAN DIEGO COUN,rY 'FREASURER'S POOLED MONEY FUND, Also known as the San 2021-02-16 Agenda Packet Page 65 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 9 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 2011-020 (2/22/11), 2012'-034(3/13/12), 2013' 020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015' 04 1 (3/03/2015), 2016-046 (03/15/2016), 2017' 078 (05/23/2017), 2018' 090 (05/22/2018), 2019' 086 (05/21/2019), 2020-024 (02/18/2020), 202 1 .-XXX (02/16/2021) Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County, The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management, Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit, See Government Code Section 27133, C). THE? LOCAI-A(.tENCYINVEs,rMEN,rF[JND(LAIF), LAIF is a special fund of the California State Treasury through which any local government may pool investments, The City may invest up to $75 million in this fund, Investments in LAIF are highly liquid and may be converted to cash within 24 hours, See Government Code Section 16429.1. PSHARES OF BENEFICIAL lN'rERES'r ISSUED BY A JOINT POWERS AU'rHOR1'rY (Local Government Investment Pools [I GIP]), Per Government Code Section 53601(p), there is no limit on the percentage of the portfolio that can be invested in this category. LGIP's organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of California Government Code Section 53601, inclusive, Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority, 'To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: 'The adviser is registered or exempt from registration with the Securities and Exchange Commission, 'The adviser has not less than Five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive, 'The adviser has assets under management in excess of Five hundred million dollars ($500,000,000). QASSE'r BACKED SECURITIES (ABS), A maximum of 20% of the portfolio may be invested in ABS. 'rhe maximum maturity is Five years, Securities eligible for investment under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO, ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage- backed or other pay -through bond, equipment lease -backed certificate, consumer receivable pass- through certificate, or consumer receivable -backed bond, See (lovernment Code Section 5360 1 (o). 2021-02-16 Agenda Packet Page 66 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 10 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 20111'-020 (2/22/11), 20112.-034(3/113/12), 20113'-020 (2/26/13), 2014-039 (3/11/14), 20114-191 (10/28/14), 20115'-041 (3/03/20115), 20116-046 (03/15/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8); 20119'-086 (05/211/2019), 2020-024 (02/18/2020), 20211' -XXX (02/16/2021) R� SUPRANA,riONALS. A maximum of 30% of the portfolio may be invested in supranationals, 'rhe maximum maturity is Five years, Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank that are eligible for purchase and sale within the United States, Investments under this subdivision shall be rated in a rating category of "AA," its equivalent or better by an NRSRO, See Government Code Section 53601(q). S. PLACEMEN'r SERVICE DEPOSITS. A maximum of 30% of the portfolio may be invested in placement service deposits, 'rhe maximum maturity is 5 years, Deposits placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8 and 53635X The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit 'I. COL LA,rERAI-IZED BANK DEPOSITS. Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by California (lovernment Code Section 53652 for the purpose of securing local agency deposits, The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, The maximum maturity is 5 years, There is no limit on the percentage of the portfolio that can be invested in this category, See (lovernment Code Section 5360 l (n) and 53630 et seq. 9.1 Investment Pools: The City's Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429,1 of the California (lovernment Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency, 2021-02-16 Agenda Packet Page 67 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 11 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 201 I.-020 (2/22/11), 2012'-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016-046 (03/15/2016), 2017'-078 (05/23/2017), 2018'-090 (05/22/2018), 2019'-086 (05/21/2019), 2020-024 (02/18/2020), 2021' -XXX (02/16/2021) Should any investment listed in section 9.0 exceed a percentage- o f -port folio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/'Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified, 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City's deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco with a value of 105 /® of the principal and accrued interest, government securities with a value of 1 M% of principal and accrued interest or First trust deed mortgage notes having a value of 150 /® of the City's total deposits. Collateral will be handled as required by the California Government Code, 'rhe Director of Finance/'Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation, 'rhe market value of securities that underlay a repurchase agreement shall be valued at 102 /® or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 /® no later than the next business day. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained, The right of collateral substitution is granted, 12.0 All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required, All deliverable securities shall be acquired by the safekeeping institution on a "Delivery- Vs. -Payment" (DVI') basis, For Repurchase Agreements, the j)urchase may be delivered by book entry, j)hvsical delivery or by third-mrtv custodial a�eement 2021-02-16 Agenda Packet Page 68 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 12 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 2011-020 (2/22/11), 2012'-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016-046 (03/15/2016), 2017'-078 (05/23/2017), 2018'-090 (05/22/2018), 2019'-086 (05/21/2019), 2020-024 (02/18/2020), 202 1 .-XXX (02/16/2021) consistent with the Government Code, The transfer of securities to the counter party bank's customer book entry account may be used for book entry delivery, 13.0 Diversification: 'The City's investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual Financial institutions, No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. 'Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (L(11P's), A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City's cash flow, & Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return, 'rhe City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated, 14.0 Maximum Maturities: 'To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements, 'rhe City will not directly invest in securities maturing more than Five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment, 15.0 Internal Control: 'rhe Director of Finance/'Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No 2021-02-16 Agenda Packet Page 69 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 13 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 201 1.-020 (2/22/ 1 1); 2012.-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016-046 (03/15/2016), 2017'-078 (05/23/2017), 2018-090 (05/22/2018), 2019'-086 (05/21/2019), 2020-024 (02/18/2020), 202 1 .-XXX (02/16/2021) investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/'Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy, 'This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/'Treasurer. 'To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following six designated City staff: I . Director of Finance/'Treasurer 1 Assistant Director of Finance 3. 'Treasury Manager 4. Finance Manager 5. Revenue Manager 6. Budget and Analysis Manager 16.0 Performance Standards: 'The investment portfolio shall be managed to attain a market. -average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been i -net. In evaluating the performance of the City's portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark, 17.0 Ren2EIiLng- 'rhe Director of Finance/'Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter, 'This report will include the following elements: 0 'Type of investment � Institutional issuer 2021-02-16 Agenda Packet Page 70 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 14 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 20110-045 (3/2/110), 20111'-020 (2/22/111), 20112.-034(3/113/112), 20113'-020 (2/26/13), 20114-039 (3/111/114), 20114-11911 (110/28/114), 20115'-0411 (3/03/20115), 20116-046 (03/115/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8), 20119'-086 (05/211 /20 19); 2020-024 (02/11 8/2020), 202 1 .-XXX (02/116/2021) • Purchase date • Date of maturity • Amount of deposit or cost of the investment • Face value of the investment • Current market value of securities and source of valuation • Rate of interest • Interest earnings • Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance • Statement on availability of funds to meet the next six month's obligations • Monthly and year-to-date budget amounts for interest income • Percentage of portfolio by investment type • Days to maturity for all investments • Comparative report on interest yields • Monthly transactions • Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report, 18.0 Investment P2!jKj�w end � c� IIc�n4 'rhis Investment Policy shall be reviewed at least annually by the Director of Finance/'Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and Financial and economic trends, Each Fiscal year, the Finance Director shall provide a copy of the City's current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the recent of the Policv for the reSDective fiscal vear, 2021-02-16 Agenda Packet Page 71 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 15 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 20111'-020 (2/22/11), 20112.-034(3/113/12), 20113' 020 (2/26/13), 2014-039 (3/11/14), 20114-191 (10/28/14), 20115' 04 l (3/03/20115), 20116-046 (03/15/20116), 20117' 078 (05/23/20117), 20118' 090 (05/22/20118), 20119' 086 (05/211/2019), 2020-024 (02/18/2020), 202 l .-XXX (02/16/2021) GLOSSARY AGENCIES: Federal agency securities, ASKED: 'rhe price at which securities are offered, (The price at which a fine will sell a security to an investor.) BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company, 'rhe accepting institution guarantees payment of the bill, as well as the issuer, 'rhe drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise, An acceptance is a high-grade negotiable instrument, BASIS POINT: One one-hundredth of a percent (i.e., 0.011 %) BID: 'rhe price offered by a buyer of securities, (When you are selling securities, you ask for a bid,) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position, CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate, Large -denomination CD's are typically negotiable, C( LLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public COMMERCIAL PAPER: Short terms unsecured promissory note issued by a corporation to raise working capital, These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc, DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account, DELIVERY VERSUS PAYMENT: 'rhere are two methods of delivery of securities: delivery versus mvment and delivery versus receim, Delivery versus j)avinent is delivery of securities with an 2021-02-16 Agenda Packet Page 72 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 16 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 1185711 (2/4/97); 119375 (2/l6/99); 2000-050 (2/115/00); 20011.-026 (2/113/011); 2002-039 (2/112/02), 2005- 1184 (6/7/05); 2006- 1176 (6/l3/06); 2008-054 (2/112/08), 20110-045 (3/2/110), 201 1.-020 (2/22/111); 20112'-034(3/113/112), 20113'-020 (2/26/113), 20114-039 (3/111 /114); 20 l 4- l 9 l (110/28/114); 20115'-0411 (3/03/20115), 20116-046 (03/115/20116); 20117'-078 (05/23/20117), 20118-090 (05/22/20118); 20119'-086 (05/211/20119), 2020-024 (02/118/2020), 202 l .-XXX (02/116/20211) exchange of money for the securities, Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities, DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns, FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters), FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit, FEDERAL RESERVE SYSTEM: 'rhe central bank of the United States created by Congress and consisting of a seven- member Board of (lovernors in Washington, D.C.; 112 regional banks and about 5,700 commercial banks are members of the system. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes, LOCAL AGENCY INVESTMENT FUND (LAIF): 'rhe aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment, LOCAL GOVERNMENT INVESTMENT POOL (LGI): An investment pool offered by a state or local agency to public entities for the investment of public funds, MARKET VALUE: 'rhe price at which a security is trading and could presumable be purchased or sold. MATURITY: 'rhe date upon which the principal or stated value of an investment becomes due and payable, NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC) mrmits other Financial firms to use for certain re�ulatory j)urj)oses, 2021-02-16 Agenda Packet Page 73 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 17 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/0I); 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 20I0-045 (3/2/I0); 20I I.-020 (2/22/I 1); 20I2.-034(3/I3/I2); 20I3' 020 (2/26/I3); 20I4-039 (3/I I/ I 4); 20 4- I 9 (I0/28/I4); 20I5' 04 I (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7' 078 (05/23/20I7); 20I8' 090 (05/22/20I8), 20I9' 086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 I .-XXX (02/I6/202I) NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the Financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity, 'They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit, OFFER: 'rhe price asked by a setter of securities, (When you are buying securities, you ask for an offer), PORTFOLIO: Collection of securities held by an investor, PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly Financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC). -registered securities broker/dealers, banks and a few unregulated firms, PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law requires that a Fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state -the so-called "legal list". In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital, RATE OF RETURN: 'rhe yield obtainable on a security based on its purchase price or its current market price, SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection, SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution, SECURITIES & EXCHANGE COMMISSION (SEQ: Agency created by Congress to protect investors in securities transactions by administering securities legislation, SEC RULE 15C3-1: See "Uniform Net Capital Rule". 2021-02-16 Agenda Packet Page 74 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 18 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/0I); 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 20I0-045 (3/2/I0); 20I I.-020 (2/22/I 1); 20I2.-034(3/I3/I2); 20I3' 020 (2/26/I3); 20I4-039 (3/I I/ I 4); 20 4- I 9 (I0/28/I4), 20I5' 044 (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7' 078 (05/23/20I7); 20I8' 090 (05/22/20I8), 20I9' 086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 I .-XXX (02/I6/202I) TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to Finance the national debt. Most bills are issued to mature in three months, six months, or one year, TREASURY BOND: Long-term u.s. 'Treasury securities having initial maturities of more than W years, TREASURY NOTES: Intermediate -ten -n coupon bearing u.s. 'Treasury having initial maturities of one year to ten years, UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member fin -ns as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of I5 to I; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a fin -n, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash, YIELD: 'rhe rate of annual income return on an investment, expressed as a percentage, (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security, (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of Durchase to the date of maturity of the bond, 2021-02-16 Agenda Packet Page 75 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 1 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 20111'-020 (2/22/11), 20112.-034(3/113/12), 20113'-020 (2/26/13), 2014-039 (3/11/14), 20114-191 (10/28/14), 20115'-041 (3/03/20115), 20116-046 (03/15/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8); 20119'-086 (05/211/2019), 2020-024 (02/18/2020), 202 l .-XXX (02/16/2021) U101 MINXIM This "Investment Policy and Guidelines" (the "Investment Policy") Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista's (the "City") cash balances, and outline policies to assist in maximizing the efficiency of the City's cash management system, while meeting the daily cash flow demands of the City, 'The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management, 'rhis Investment Policy applies to all Financial assets of the City of Chula Vista, as indicated in 3 below, 'These funds are accounted for in the City's Comprehensive Annual Financial Report, 'The Director of Finance/'Treasurer is responsible for investing the unexpended cash in the City 'Treasury for all funds, except for the employee's retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements, 'The Director of Finance/'Treasurer will strive to maintain the level of investment of this cash as close as possible to 100/®. 'These funds are described in the City's annual Financial report and include: 0 General Fund • Special Revenue Funds • Capital Project Funds • Enterprise Funds • 'Frust and Agency Funds • Any new fund created by the legislative body, unless specifically exempted 'rhis Investment Policy applies to all transactions involving the Financial assets and related activity of the foregoing funds, 2021-02-16 Agenda Packet Page 76 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 2 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 1185711 (2/4/97); 119375 (2/l6/99); 2000-050 (2/115/00); 20011.-026 (2/113/011 ); 2002-039 (2/112/02), 2005- l 84 (6/7/05); 2006- 1176 (6/l3/06); 2008-054 (2/112/08), 20110-045 (3/2/110), 201 1.-020 (2/22/111), 20112'-034(3/113/112), 20113'-020 (2/26/113), 20114-039 (3/111 /114), 20 l 4- l 9 l (110/28/114), 20115'-0411 (3/03/20115), 20116-046 (03/115/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8); 20119'-086 (05/211 /20119), 2020-024 (02/11 8/2020); 202 l .-XXX (02/116/20211 ) erinitted documents. If the bond documents are silent as to will be invested in the securiti isions of this ere in this a2ieeds. The standard of prudence to be used by the Director of Finance/'Treasurer shall be the "prudent investor standard". 'This shall be applied in the context of managing an overall portfolio, The "prudent investor standard" is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: I I ... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore Fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like an-ris, to safeguard the principal and maintain the liquidity needs of the agency..." 4.1 Personal Responsibility: 'The Director of Finance/'Treasurer, Assistant Director of Finance, 'Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments, �11 Consistent with this aim, investments are made under the ten -ns and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of 2021-02-16 Agenda Packet Page 77 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 3 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/OI), 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/IO), 20I I'-020 (2/22/I I); 20I2.-034(3/I3/I2); 20I3'-020 (2/26/I3); 20I4-039 (3/I l / l 4); 20 l 4- l 9 l (IO/28/I4), 20I5' -04l (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7'-078 (05/23/20I7); 20I8-090 (05/22/20I8); 20I9'-086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 l .-XXX (02/I6/202I) Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio, 'To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio, OEM= The City of Chula Vista's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal, 5.3 Return on Investments: The City of Chula Vista's investment portfolio shall be designed with the objective of attaining a market -average rate of return throughout budgetary and economic cycles (market interest rates), within the City's Investment Policy's risk parameters and the City's cash flow needs. See also Section 16.0. 6.0 Delltgajicif�rrthc�r°oty4 'The City Council delegates responsibility for the investment program to the Director of Finance/'Treasurer for a period of one year. Subject to review, the City Council may renew the delegation of authority each year, 'rhe Director of Finance/'Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials, 'rhe responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee, 'rhe Director of Finance/'Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor, he advisor shall follow the Investment Policy and such other written instructions as are provided, 7.0 Ethics and Conflicts of Interest: 2021-02-16 Agenda Packet Page 78 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 4 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 1185711 (2/4/97); 119375 (2/l6/99); 2000-050 (2/115/00); 20011.-026 (2/113/011 ); 2002-039 (2/112/02), 2005- l 84 (6/7/05); 2006- 1176 (6/l3/06); 2008-054 (2/112/08), 20110-045 (3/2/110), 201 1.-020 (2/22/111), 20112'-034(3/113/112), 20113'-020 (2/26/113), 20114-039 (3/111 /114), 20 l 4- l 9 l (110/28/114), 20115'-0411 (3/03/20115), 20116-046 (03/115/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8); 20119'-086 (05/211 /20119), 2020-024 (02/11 8/2020); 202 l .-XXX (02/116/20211 ) In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to File annual disclosure statements as required for "public officials who manage public investments" [as defined and required by the Political Refon-n Act and related regulations, including Government Code Sections 811000, el seq., and the rules, regulations and guidelines promulgated by California's Fair Political Practices Commission (FPPC)], 8.0 Authorized Financial Dealers and Institutions: For any transactions executed by the City, the City's Director of Finance/Freasurer will maintain a list of the Financial institutions and brokers/dealers authorized to provide investment and depository services and will perfon-n an annual review of their Financial condition, 'rhe City will utilize Moody's Securities or other such services to deten-nme Financially sound institutions with which to do business, 'The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City's Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City's Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. 'To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal Financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate - income neighborhoods, 'To provide for the optimum yield in the investment of City funds, the City's investment procedures shall encourage competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i) the broker/dealer must be a "primary" dealer or regional broker/dealer that qualifies under Securities and Exchange Commission Rule 1150-1 (Unifon-n Net Capital Rule); (ii) the broker/dealer must be experienced in institutional trading nractices and familiar with the California Government Code as related to investments annronriate for 2021-02-16 Agenda Packet Page 79 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 5 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- l 84 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 2011-020 (2/22/11), 2012'-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016'-046 (03/15/2016), 2017'-075 (05/23/2017), 2015-090 (05/22/2015), 20 l 9-086 (05/21/2019), 2020-024 (02/18/2020), 2021' -XXX (02/16/2021) the City; and (iii) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit documents relative to eligibility including U4 form for the broker, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City's Investment Policy and agreeing to comply with the Investment Policy, The City's Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minn-num capital requirements of $10,000,000 and Five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and broker/dealers to conduct transactions on behalf of the City, 9.0 Authorized and Suitable Investments: 'rhe City is authorized by California Government Code Section 53600, A seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment's credit rating falls below the minn-num rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment, Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS' ACCEPFANCES, A maximum of 40% of the portfolio may be invested in bankers' acceptances, 'rhe maximum maturity is ISO days, No more than 30% of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank, See Government Code Section 53601(g). & NEGurIABLE CER,rIFICA,rES OF DEPOSi,r, A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD's), 'rhe maximum maturity of a NCD issue shall be 5 years, 'These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD's) differ from other certificates of deposit by their liquidity. NCD's are traded actively in secondary markets, See (lovernment Code Section 53601(1). C. COMMERCIAL PAPER, Per Government Code Section 53601(h), a maximum of 25% of the nortfolio mav be invested in commercial naner. No more than 10% of the outstandim-, commercial 2021-02-16 Agenda Packet Page 80 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 6 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/I2/02); 2005- l84 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/10), 2011-020 (2/22/11), 20I2.-034(3/I3/I2); 20I3' 020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 20I5' 04 l (3/03/20I5); 2016-046 (03/15/2016), 20I7' 078 (05/23/20I7); 20l 8-090 (05/22/20I8), 20I9' 086 (05/2I/20I9); 2020-024 (02/l8/2020); 202 l .-XXX (02/16/2021) paper of any single issuer may be purchased. The maximum maturity is 270 days, Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO, The entity that issues the commercial paper shall meet all of the following conditions in either paragraph ( I) or paragraph (2): l) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation, b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of "A" or higher, or the equivalent, by a NRSRO, 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company, b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, c. Has commercial paper that is rated in a rating category of "A. -I" or higher, or the equivalent, by a NRSRO, D. BONDS ISSUED BY THE ary OR ANY LOCAL AGENCY wi,rHIN 'FHE s,rA,rE OF CALIFORNIA, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 5360 l (a) and 53601(e). E. OBLIGA,rIONS OF 'FHE UNi,rED s,rA,rES 'FRE SI United States 'Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 53601(b). F. FEDERAL A(IENCIFS, Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, 'There is no limit on the percentage of the portfolio that can be invested in this category, See (lovernment Code Section 5360 l (0 G. REPURCHASE AGREEMEN'r, maximum tern l year. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed l year, A Master Repurchase Agreement must be signed with the bank or broker/dealer who is sellim-, the securities to the City, 'There is no limit on the mrcenta�e of the 2021-02-16 Agenda Packet Page 81 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 7 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/OI), 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/IO), 20I I'-020 (2/22/I I); 20I2.-034(3/I3/I2); 20I3'-020 (2/26/I3); 20I4-039 (3/I l / l 4); 20 l 4- l 9 l (IO/28/I4), 20I5' -04l (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7'-078 (05/23/20I7); 20I8-090 (05/22/20I8); 20I9'-086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 l .-XXX (02/I6/202I) portfolio that can be invested in this category, See Government Code Section 5360 l (j). H. REVERSE -REPURCHASE AGREEMEN'rs (Requires Council approval for each transaction), Per Government Code Section 536M (j), reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) 'rhe security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale, b) 'rhe total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio, c) 'rhe agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the Final maturity date of the same security, d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security, e) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state - chartered bank that has or has had a significant banking relationship with a local agency. For purposes of this policy, "significant banking relationship" means any of the following activities of a bank: i. Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness, ii. Financing of a local agency's activities, iii. Accemance of a local a�encv's securities or funds as dej)osits, 2021-02-16 Agenda Packet Page 82 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENTP OLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 8 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/OI), 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 2/08); 20l0-045 (3/2/IO), 20I I'-020 (2/22/I 1); 20I2.-034(3/I3/I2); 20I3'-020 (2/26/I3); 20I4-039 (3/I l / l 4); 20 l 4- l 9 l (IO/28/I4), 20I5' -04l (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7'-078 (05/23/20I7); 20I8'-090 (05/22/20I8), 20I9'-086 (05/2I/20I9); 2020-024 (02/I8/2020); 202I' -XXX (02/I6/202I) I. MEDnjm,-,rERM CORPORA,rE No,rES, A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of Five years or less. Notes eligible for investment shall be rated in a rating category of "A," its equivalent or better by a NRSRO, See (lovernment Code Section 5360 l (k) J. NON -NE (iturIABLE CER,rIFICA,rES OF DEPOSi,r, 'rhe maximum maturity is 5 years, Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et sect. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance, There is no limit on the percentage of the portfolio that can be invested in this category, K. OBLIGA,riONS OF 'FHE? s,rA,rE OF CALIFORNIA, Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state, 'rhe maximum maturity is 5 years, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 5360 l (d). L. OBLIGA,rIONS OF,FHE o,FHER 49 s,rA,rES, Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state, 'rhe maximum maturity is 5 years, 'There is no limit on the percentage of the portfolio that can be invested in this category, See Government Code Section 5360 l (d). M. MONEY MARKE'r FUNDS, A maximum of 20% of the portfolio may be invested in money market funds. No more than I0% of the agency's funds may be invested in shares of beneficial interest of any one mutual fund. Local agencies may invest in "shares of beneficial interest" issued by diversified management companies which invest in the securities and obligations as authorized by California Government Code Section 5360I, subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, 'They must have the highest rating from two NRSRO's or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than Five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000, 'rhe purchase price of the shares may not include commission, See Government Code Section 5360I(1). N. SAN DIEGO COUN,rY 'FREASURER'S POOLED MONEY FUND, Also known as the San 2021-02-16 Agenda Packet Page 83 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 9 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 2011-020 (2/22/11), 2012'-034(3/13/12), 2013' 020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015' 04 1 (3/03/2015), 2016-046 (03/15/2016), 2017' 078 (05/23/2017), 2018' 090 (05/22/2018), 2019' 086 (05/21/2019), 2020-024 (02/18/2020), 202 1 .-XXX (02/16/2021) Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County, The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management, Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit, See Government Code Section 27133, C). THE? LOCAI-A(.tENCYINVEs,rMEN,rF[JND(LAIF), LAIF is a special fund of the California State Treasury through which any local government may pool investments, The City may invest up to $75 million in this fund, Investments in LAIF are highly liquid and may be converted to cash within 24 hours, See Government Code Section 16429.1. PSHARES OF BENEFICIAL lN'rERES'r ISSUED BY A JOINT POWERS AU'rHOR1'rY (Local Government Investment Pools [I GIP]), Per Government Code Section 53601(p), there is no limit on the percentage of the portfolio that can be invested in this category. LGIP's organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of California Government Code Section 53601, inclusive, Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority, 'To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: 'The adviser is registered or exempt from registration with the Securities and Exchange Commission, 'The adviser has not less than Five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive, 'The adviser has assets under management in excess of Five hundred million dollars ($500,000,000). QASSE'r BACKED SECURITIES (ABS), A maximum of 20% of the portfolio may be invested in ABS. 'rhe maximum maturity is Five years, Securities eligible for investment under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO, ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage- backed or other pay -through bond, equipment lease -backed certificate, consumer receivable pass- through certificate, or consumer receivable -backed bond, See (lovernment Code Section 5360 1 (o). 2021-02-16 Agenda Packet Page 84 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 10 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 20111'-020 (2/22/11), 20112.-034(3/113/12), 20113'-020 (2/26/13), 2014-039 (3/11/14), 20114-191 (10/28/14), 20115'-041 (3/03/20115), 20116-046 (03/15/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/20118), 20119'-086 (05/211/2019), 2020-024 (02/18/2020), 20211' -XXX (02/16/2021) R� SUPRANA,riONALS. A maximum of 30% of the portfolio may be invested in supranationals, 'rhe maximum maturity is Five years, Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank that are eligible for purchase and sale within the United States, Investments under this subdivision shall be rated in a rating category of "AA," its equivalent or better by an NRSRO, See Government Code Section 53601(q). S. PLACEMEN'r SERVICE DEPOSITS. A maximum of 30% of the portfolio may be invested in placement service deposits, 'rhe maximum maturity is 5 years, Deposits placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8 and 53635X The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit 'I. COL LA,rERAI-IZED BANK DEPOSITS. Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by California (lovernment Code Section 53652 for the purpose of securing local agency deposits, The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, The maximum maturity is 5 years, There is no limit on the percentage of the portfolio that can be invested in this category, See (lovernment Code Section 5360 l (n) and 53630 et seq. 9.1 Investment Pools: The City's Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429,1 of the California (lovernment Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency, 2021-02-16 Agenda Packet Page 85 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 11 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 201 I.-020 (2/22/11), 2012'-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016-046 (03/15/2016), 2017'-078 (05/23/2017), 2018'-090 (05/22/2018), 2019'-086 (05/21/2019), 2020-024 (02/18/2020), 2021' -XXX (02/16/2021) Should any investment listed in section 9.0 exceed a percentage- o f -port folio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/'Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified, 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City's deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco with a value of 105 /® of the principal and accrued interest, government securities with a value of 1 M% of principal and accrued interest or First trust deed mortgage notes having a value of 150 /® of the City's total deposits. Collateral will be handled as required by the California Government Code, 'rhe Director of Finance/'Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation, 'rhe market value of securities that underlay a repurchase agreement shall be valued at 102 /® or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 /® no later than the next business day. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained, The right of collateral substitution is granted, 12.0 All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required, All deliverable securities shall be acquired by the safekeeping institution on a "Delivery- Vs. -Payment" (DVI') basis, For Repurchase Agreements, the j)urchase may be delivered by book entry, j)hvsical delivery or by third-mrtv custodial a�eement 2021-02-16 Agenda Packet Page 86 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 12 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 2011-020 (2/22/11), 2012'-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016-046 (03/15/2016), 2017'-078 (05/23/2017), 2018'-090 (05/22/2018), 2019'-086 (05/21/2019), 2020-024 (02/18/2020), 202 1 .-XXX (02/16/2021) consistent with the Government Code, The transfer of securities to the counter party bank's customer book entry account may be used for book entry delivery, 13.0 Diversification: 'The City's investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual Financial institutions, No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. 'Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (L(11P's), A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City's cash flow, & Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return, 'rhe City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated, 14.0 Maximum Maturities: 'To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements, 'rhe City will not directly invest in securities maturing more than Five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment, 15.0 Internal Control: 'rhe Director of Finance/'Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No 2021-02-16 Agenda Packet Page 87 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 13 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2010-045 (3/2/10), 201 1.-020 (2/22/ 1 1); 2012.-034(3/13/12), 2013'-020 (2/26/13), 2014-039 (3/11/14), 2014-191 (10/28/14), 2015'-041 (3/03/2015), 2016-046 (03/15/2016), 2017'-078 (05/23/2017), 2018-090 (05/22/2018), 2019'-086 (05/21/2019), 2020-024 (02/18/2020), 202 1 .-XXX (02/16/2021) investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/'Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy, 'This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/'Treasurer. 'To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following six designated City staff: I . Director of Finance/'Treasurer 1 Assistant Director of Finance 3. 'Treasury Manager 4. Finance Manager 5. Revenue Manager 6. Budget and Analysis Manager 16.0 Performance Standards: 'The investment portfolio shall be managed to attain a market. -average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been i -net. In evaluating the performance of the City's portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark, 17.0 Ren2EIiLng- 'rhe Director of Finance/'Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter, 'This report will include the following elements: 0 'Type of investment � Institutional issuer 2021-02-16 Agenda Packet Page 88 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 14 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 20110-045 (3/2/110), 20111'-020 (2/22/111), 20112.-034(3/113/112), 20113'-020 (2/26/13), 20114-039 (3/111/114), 20114-11911 (110/28/114), 20115'-0411 (3/03/20115), 20116-046 (03/115/20116), 20117'-078 (05/23/20117), 20118-090 (05/22/2011 8), 20119'-086 (05/211 /20 19); 2020-024 (02/11 8/2020), 202 1 .-XXX (02/116/2021) • Purchase date • Date of maturity • Amount of deposit or cost of the investment • Face value of the investment • Current market value of securities and source of valuation • Rate of interest • Interest earnings • Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance • Statement on availability of funds to meet the next six month's obligations • Monthly and year-to-date budget amounts for interest income • Percentage of portfolio by investment type • Days to maturity for all investments • Comparative report on interest yields • Monthly transactions • Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report, 18.0 Investment P2!jKj�w end � c� IIc�n4 'rhis Investment Policy shall be reviewed at least annually by the Director of Finance/'Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and Financial and economic trends, Each Fiscal year, the Finance Director shall provide a copy of the City's current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the recent of the Policv for the reSDective fiscal vear, 2021-02-16 Agenda Packet Page 89 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 15 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, l 857 l (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001.-026 (2/13/01), 2002-039 (2/12/02), 2005- 184 (6/7/05); 2006- 176 (6/13/06), 2008-054 (2/12/08), 2/08); 20l0-045 (3/2/10), 20111'-020 (2/22/11), 20112.-034(3/113/12), 20113' 020 (2/26/13), 2014-039 (3/11/14), 20114-191 (10/28/14), 20115' 04 l (3/03/20115), 20116-046 (03/15/20116), 20117' 078 (05/23/20117), 20118' 090 (05/22/20118), 20119' 086 (05/211/2019), 2020-024 (02/18/2020), 202 l .-XXX (02/16/2021) GLOSSARY AGENCIES: Federal agency securities, ASKED: 'rhe price at which securities are offered, (The price at which a fine will sell a security to an investor.) BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company, 'rhe accepting institution guarantees payment of the bill, as well as the issuer, 'rhe drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise, An acceptance is a high-grade negotiable instrument, BASIS POINT: One one-hundredth of a percent (i.e., 0.011 %) BID: 'rhe price offered by a buyer of securities, (When you are selling securities, you ask for a bid,) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position, CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate, Large -denomination CD's are typically negotiable, C( LLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public COMMERCIAL PAPER: Short terms unsecured promissory note issued by a corporation to raise working capital, These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc, DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account, DELIVERY VERSUS PAYMENT: 'rhere are two methods of delivery of securities: delivery versus mvment and delivery versus receim, Delivery versus j)avinent is delivery of securities with an 2021-02-16 Agenda Packet Page 90 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 16 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, 1185711 (2/4/97); 119375 (2/l6/99); 2000-050 (2/115/00); 20011.-026 (2/113/011); 2002-039 (2/112/02), 2005- 1184 (6/7/05); 2006- 1176 (6/l3/06); 2008-054 (2/112/08), 20110-045 (3/2/110), 201 1.-020 (2/22/111); 20112'-034(3/113/112), 20113'-020 (2/26/113), 20114-039 (3/111 /114); 20 l 4- l 9 l (110/28/114); 20115'-0411 (3/03/20115), 20116-046 (03/115/20116); 20117'-078 (05/23/20117), 20118-090 (05/22/20118); 20119'-086 (05/211/20119), 2020-024 (02/118/2020), 202 l .-XXX (02/116/20211) exchange of money for the securities, Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities, DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns, FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters), FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit, FEDERAL RESERVE SYSTEM: 'rhe central bank of the United States created by Congress and consisting of a seven- member Board of (lovernors in Washington, D.C.; 112 regional banks and about 5,700 commercial banks are members of the system. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes, LOCAL AGENCY INVESTMENT FUND (LAIF): 'rhe aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment, LOCAL GOVERNMENT INVESTMENT POOL (LGI): An investment pool offered by a state or local agency to public entities for the investment of public funds, MARKET VALUE: 'rhe price at which a security is trading and could presumable be purchased or sold. MATURITY: 'rhe date upon which the principal or stated value of an investment becomes due and payable, NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC) mrmits other Financial firms to use for certain re�ulatory j)urj)oses, 2021-02-16 Agenda Packet Page 91 of 395 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 17 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/0I); 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 20I0-045 (3/2/I0); 20I I.-020 (2/22/I 1); 20I2.-034(3/I3/I2); 20I3' 020 (2/26/I3); 20I4-039 (3/I I/ I 4); 20 4- I 9 (I0/28/I4), 20I5' 044 (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7' 078 (05/23/20I7); 20I8' 090 (05/22/20I8), 20I9' 086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 I .-XXX (02/I6/202I) NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the Financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity, 'They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit, OFFER: 'rhe price asked by a setter of securities, (When you are buying securities, you ask for an offer), PORTFOLIO: Collection of securities held by an investor, PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly Financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC). -registered securities broker/dealers, banks and a few unregulated firms, PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law requires that a Fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state -the so-called "legal list". In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital, RATE OF RETURN: 'rhe yield obtainable on a security based on its purchase price or its current market price, SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection, SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution, SECURITIES & EXCHANGE COMMISSION (SEQ: Agency created by Congress to protect investors in securities transactions by administering securities legislation, SEC RULE 15C3-1: See "Uniform Net Capital Rule". 2021-02-16 Agenda Packet Page 92 of 395 COUNCIL POLICY CITY OF (HULA VISTA SUBJECT: INVESTMENT POLICY AND POLICY EFFECTIVE GUIDELINES NUMBER DATE PAGE 220-01 02/18/2020 18 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos, I 857 I (2/4/97); I9375 (2/I6/99); 2000-050 (2/I5100); 200I.-026 (2/I3/0I); 2002-039 (2/I2/02); 2005- I84 (6/7/05); 2006- I76 (6/I3/06); 2008-054 (2/I2/08); 20I0-045 (3/2/I0); 20I I.-020 (2/22/I 1); 20I2.-034(3/I3/I2); 20I3' 020 (2/26/I3); 20I4-039 (3/I I/ I 4); 20 4- I 9 (I0/28/I4), 20I5' 044 (3/03/20I5); 20I6-046 (03/I5/20I6); 20I7' 078 (05/23/20I7); 20I8' 090 (05/22/20I8), 20I9' 086 (05/2I/20I9); 2020-024 (02/I8/2020); 202 I .-XXX (02/I6/202I) TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to Finance the national debt. Most bills are issued to mature in three months, six months, or one year, TREASURY BOND: Long-term u.s. 'Treasury securities having initial maturities of more than W years, TREASURY NOTES: Intermediate -ten -n coupon bearing u.s. 'Treasury having initial maturities of one year to ten years, UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member fin -ns as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of I5 to I; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a fin -n, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash, YIELD: 'rhe rate of annual income return on an investment, expressed as a percentage, (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security, (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of Durchase to the date of maturity of the bond, 2021-02-16 Agenda Packet Page 93 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 20-0392 TITLE RESOLUTION OFTHE CITY COUNCIL OFTHE CITY OF CF ULA VISTA APPROVINGTHE FIRST AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF CF ULA VISTA AND SCG - SPICER CONSULTING GROUP, LLC. FOR SPECIAL TAX CONSULTANT SERVICES FOR ASSESSMENT DISTRICTS, COMMUNITY FACILITIES DISTRICTS, OPEN SPACE DISTRICTS AND ANNUAL SEWER ASSESSMENT ADMINISTRATION SERVICES AC"FlION Council adopt the resolution. SUMMARY The City of Chula Vista desires to amend and restate the current 3 -year Agreement with Spicer Consulting Group, LLC. 'The City would like to increase the maximum spending from $400,000.00 to $500,000.00 to include Continuing Disclosure and Arbitrage Calculation Services for Non -Land Based Bond Issues, and District Formation and Modification.. The City also desires to amend and restate the current three-year contract to extend the duration from April 01, 2018 to June 30, 2022 with total costs not to exceed $760,000.00. 1 11E IIIE�v � W The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Not Applicable. DISCUSSION The City of Chula Vista entered into an Agreement with Spicer Consulting Group to perform special tax consulting services beginningApril 01, 2018 through March 31,2021.The 3 -year Agreement has a maximum spending limit of $400,000.00. Due to additional services requested by the City such as district modifications, district formations, and continuing disclosure and arbitrage calculation services for Non -land based Bond Issues, the spending limit �/ 0 0 1 P � (:, 11 2021-02-16 Agenda Packet Page 94 of 395 will be surpassed prior to the end of the Agreement. The City would like to amend and restate the Agreement to include Arbitrage calculations and Continuing Disclosure reporting for Non -Land Based Bond issues, and district formation and modification services. Further, the City also wishes to amend and restate the current three-year contract to extend the duration from April 1, 2018 to June 30, 2022 with fees not to exceed $760,000.00 in order to cover these additional costs and the extended duration. SmaLof Work Additions Non -Land Based Bond Issues • Provide Arbitrage Calculations at least every five years for each bond issue as well as a final computation on the date on which the last maturity of a bond issue is retired; • Prepare continuing disclosure reports and event notices for City staff review, in accordance with each Bond Indenture and SEC Rule 15c2-12, and disseminate approved documents to the Electronic Municipal Market Access (EMMA). Current Non -Land Based Bond Issues Bond Issue Name Bond Issue Maturity Date Amount 2014 Reffin ect $45,920,000 October 01, 2032 2015 Refunding Certificates of Participation (Civic Center Project) $34,330,000 01, 2034 2016 Refunding Certificates of ParticiI tion (Civic Center Pro'ect $8,600,000 —March March 01, 2031 2016 Lease Revenue Refuaq!a&Eonds $25,885,000 a 01, 2033 2016'F axAllocation Refunding Bonds $29,315,000 October 01, 2036 .2017 Lease Revenue Bonds h/Ieeasure P..... $61,355,000 2017 Lease Revenue Bonds Series A New Clean Renewable Energy) $12,045,000 December 01, 2048 2017 Lease Revenue Bon,!.-, Series h, ("Fax-Exen'113ill $1,085,000 December 01, 2028 UpfQmjingNon-Land Based Bond Issues Bond Issue Name Bond Issue Maturity Date Amount 2021 Pension Oblilvation Bonds TBD TBD UpfQmjingLand Based Bond Issues Bond Issue Name Bond Issue Maturity Date Amount 2021 Bayfront Project SpecialTax Financing District TBD TBD 201 1 11 21 SpecialTax Bon. S CFD 16-1 lmprovementA!�eNo. �. TBD TBD P 12 2021-02-16 Agenda Packet Page 95 of 395 CON171LIK"T Staff has reviewed the property holdings of the City Council and has found that Mayor Casillas Salas and Councilmembers Padilla and McCann have real property holdings within 500 feet of the boundaries of the property which is the subject of this action. However, it has been determined that, no conflicts of interest exist pursuant to California Code of Regulations (CCR) section 18700(b)(6), as it is neither reasonably foreseeable that the decision will have a material financial effect on the real property, nor will the decision impose, repeal, or modify any assessments or taxes on the real property holdings as specified in CCR section 18705.2(a)(3), but is simply administrative in nature. 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. 171SCA1. JMI�IAC'T The administrative costs for each non -bonded Special 'Fax District (Open Space Districts and Maintenance CFDs) will be financed out of the revenue generated by the individual districts via the annual levy. Administrative costs incurred by the bonded districts (Assessment District and Improvement CFDs) will be recovered through the 'administrative fee' component of the annual levy, with invoices sent directly to the districts trustee for payment. These costs include the placement of the annual levy on the tax roll and other administrative tasks as required. With the current number of parcels and districts, the annual contract amount for these administration services is $24,966.55. ONGOING 171SCA1. JMI�IAC'T The ongoing fiscal impact in year 2022 would be an increase in costs of $122,889.23. Of the $122,889.23, the CFDs revenues will fund $40,036.48 while the General Fund will be responsible for $80,852.75 and the final $2,000.00 will be paid with monies held by the Pension Obligation Bond Trustee. If the one-year extension is exercised, the fiscal year 2023 impact will be an increase in costs of $34,206.86. Of the $34,206.86, the CFDs revenues will fund $18,179.80 while the General Fund will be responsible for $14,027.06 and the final $2,000.00 will be paid with monies held by the Pension Obligation Bond Trustee. Both would be due to an overall increase in the scope of work, duration extension and additional districts. ATTACHMENTS Amendment and Restatement to the Agreement Between the City of Chula Vista and SCG - Spicer Consulting Group, LLC. For Special 'Fax Consultant Services for Assessment Districts, Community Facilities Districts, Open Space Districts and Annual Sewer Assessment Administration Services; and Authorizing and Directing the Mayor to Execute Said Agreement Stafffontact:janies Moore IV 3 2021-02-16 Agenda Packet Page 96 of 395 RESOL[YrION NO, RESOL[YrION OF FHE ary COUNCIL OF 'FHE ary OF CHULA vis,FA APPROVING THE FIRS,r AMENDED AND ISI s,rA,rED AGR EEMEN'r BE,rWEEN,rHE ary OF CHULA vis,FA AND SCG --- SPICER CONSUL,rINGi GROUP, LLC, FOR SPECIAL 'FAX CONSUUFAN'r SERVICES FOR ASSESSMEN'r Dismicrs, COMMUNi,rY FAClu'rIES Dismicrs, OPEN SPACE DismicrS AND ANNUAL SEWER ASSESSMEN'r ADMINIS'TRA'TION SERVICES WHEREAS, the City has utilized the services of SCG --- Spicer Consulting Group, LLC,, to perform the necessary tasks in the administration of the City's Assessment Districts, Community Facilities Districts, Open Space Districts, and Sewer Assessment District including delinquency management and apportionment services; and WHEREAS, the current maximum contract amount is $400,000.00 for a three. -year period ending March 3I, 202I; and WHEREAS, during this three. -year period, continuing disclosure and arbitrage calculation services were also needed for Non. -Land Based Bond Issues; and WHEREAS, during this 3 --year period, District formation and modification services were also requested; and WHEREAS, the City wishes to amend and restate the current contract to: (i) include continuing disclosure and arbitrage calculation services for non -land-based bond issues, and District fon-nation and modification services; (ii) extend the initial terms through June 30, 2022, with a maximum contract amount of $760,000; and (iii) provide for a one. -year option to extend through June 30, 2023, for an amount not to exceed $240,000; and WHEREAS, the total maximum contract amount for the original Agreement, the Amended and Restated Agreement and the one. -year option to extend, if exercised by the City, would be $ I,000,000. NOW, FHEREFORE, BE i,r RESOLVED by the City Council of the City of Chula Vista, that it approves the Amendment and Restated Agreement between the City of Chula Vista and SCG ---Spicer Consulting Group, LLC, for the Special District Apportionment, Delinquency Monitoring Administration, and Other Services, in the forte presented, with such mmor modifications as may be required or approved by the City Attorney, a copy of which shall be Dept on File in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same, Presented by Approved as to form by 2021-02-16 Agenda Packet Page 97 of 395 David Kilby, MSBA, CPFO Director of Finance/'Treasurer Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 98 of 395 FIRST AMENDED AND RESTATED CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH SCG - SPICER CONS ULTING GROUP, LLC TO PROVIDE SPECIAL TAX CONSULTANT SERVICES FOR ASSESSMENT DISTRICTS, COMMUNITY FACILITIES DISTRICTS, OPEN SPACE DISTRICTS, AND ANNUAL SEWER ASSESSMENT ADMINISTRATION SERVICES 'This First Amended and Restated Agreement is dated February 16, 2021, for reference purposes only, and is effective as of the beginning date specified in Section 3 of Exhibit A ("Effective Date") by and between the City of Chula Vista, a chartered municipal corporation ("City") and SCG .- Spicer consulting group, LLC, a California Limited Liability Company ("Consultant") (collectively, the "Parties" and, individually, a "Party") with reference to the following facts: WHEREAS, the City has formed one Assessment District to provide funding for benefitting p 1, o p e rt i e s and in-frastructure under the Municipal Improvement Acts of 1913 and 1915; and WHEREAS, the City has also formed 31 McVVo-Roos Community Facilities Districts to provide funding for the construction of infrastructure or for the maintenance of open space areas in accordance with the Community Facilities Act of 1982; and WHEREAS, the City has formed 35 Open Space Districts to provide funding for perpetual maintenance of common open space areas; and WHEREAS, the City has one Sewer Assessment District which is a financing mechanism for the co��cctlon of wastewater conveyance and treatment service fees for a portion of the City. WHREA.S, the City requires a consultant for the performance of apportionment, delinquency monitoring, administration and other services for the said districts; and WHEREAS, as required by Municipal Code Section 2.56.110, a Request for Proposal (RF13) was prepared and advertised, proposals were received and reviewed, and firms were interviewed and ranked lil accordance with selection criteria.; and WHEREAS, five firms responded to the RFP, Albert Webb, BLX Group, NNS, Spicer and WlUan Financial Services; and WHEREAS, the selection committee recommended awarding the contract to SCG .- Spicer Consulting Group, LLC; and WHEREAS, the parties previously entered into the "Consultant Services Agreement with SCG Special 'T'ax Consultant Services For Assessment Districts, Community Facilities Districts, Open Space Districts, And Annual Sewer Assessment Administration Services," dated April 1, 2018 for the performance of necessary tasks in the administration of the City's Assessment Districts, Community Facilities Districts, Open Space Districts, and Sewer. Assessment District including delinquency management and apportionment services; and City of Chuhi Vism Agreement No. : 18024.-A I Constilmrit Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 99 of 395 WHEREAS, the City and C ons 4ant have identified adciiuona� services to be performed by C ons 4ant, warranting this First Amended. Agreement; and. WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to Coity in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Pr ovosionsa 1 "1 ,City of C"hula Vist � Agreement No.: 18024-A1 Consulmrit Nirme: SCC; - Spicer Consulting Group, Rev. 10/24/1"7 2021-02-16 Agenda Packet gage 100 of 395 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows: 1. SERVICES l . l Consultant agrees to perfon-n the services, and deliver to City the "Deliverables" (if any described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement, 'rhe services and/or Deliverables described in Exhibit A shall be referred to herein as the "Required Services," 12 Reductions in Scope of Work, City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction, L3 Additional Services, Subject to compliance with the City's Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional services related to the Required Services ("Additional Services"), If so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services, Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and ten -ns already provided therein. Once added to Exhibit A, "Additional Services" shall also become "Required Services" for purposes of this Agreement, 1 A Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations, L5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors, L6 Security for Performance, In the event that Exhibit A Section 4 indicates the need for Consultant to �Le Lm t � provide additional security for performance of its duties under this Agreement, Consultant shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney, L7 (lom2liance with Laws. In its performance of the Required Services, Consultant shall comply with _ any and all applicable federal, state and local laws, including the Chula Vista Municipal Code, L8 Business License, Prior to commencement of work, Consultant shall obtain a business license from City. L9 Subcontractors, Prior to commencement of any work, Consultant shall submit for City's information and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required Services, Consultant agrees to take appropriate measures necessary to ensure that all ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ;City of'Clnxla ism Agreement No.: 18024-A1 Consultant Name: SCG - Spicer Consulting Group, Rev. 10/24/17 2021-02-16 Agenda Packet Page 101 of 395 subcontractors and personnel utilized by the Consultant to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant shall ensure that each and every subcontractor carries out the Consultant's responsibilities as set forth in this Agreement, I . I o 'ren -n. 'This Agreement shall commence on the earlier to occur of the Effective Date or Consultant's commencement of the Required Services hereunder, and shall terminate when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect, 2. COMPENSATION 11 General, For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 22 Detailed InyQj6U, Consultant agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Consultant must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget, 23 Payrment to Consultant. Upon receipt of a property prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice amount within thirty (30) days, Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below, At City's discretion, invoices not timely submitted may be subject to a penalty of up to Five percent (5%) of the amount invoiced, 2A Detention Poticy. City shall retain ten percent (I0%) of the amount due for Required Services detailed on each invoice (the "holdback amount"), Upon City review and determination of Project Completion, the holdback amount will be issued to Consultant, 2,5 Reimbursement of Costs. City may reimburse Consultant's out-of-pocket costs incurred by Consultant in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred by Consultant in the performance of the Required Services, 16 Exclusions, City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors, 17 Consultant understands and agrees that payment to the Consultant or reimbursement for any Consultant costs related to the performance of Required Services does not constitute a City Final decision regarding whether such payment or cost reimbursement is allowable and eligible for ,City of Chuhi Vism Agreement No. : 18024.-A I Constilmrit Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 102 of 395 payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of this Agreement, If City determines that Consultant is not entitled to receive any amount of compensation already paid, City will notify Consultant in writing and Consultant shall promptly return such amount, 3. INSURANCE 1l Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the "Required Insurance"), 'rhe Required Insurance shall also comply with all other terms of this Section, 32 Deductibles and Self -Insured Retentions, Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work, 33 Standards for Insurers, Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (I ESI with a current A.M. Best's rating of no less than A X. For Workers' Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable, 3A Subcontractors, Consultant must include all sub.-consultants/sub-contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub -consultants must also comply with the ten -ns of this Agreement, 15 Additional Insureds, City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City's Risk Manager., 'rhe general liability additional insured coverage must be provided in the form of an endorsement to the Consultant's insurance using ISO CG 20 l 0 (II/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage, 16 Gener at Liabili t ( love ra Consultant's general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers, Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide insurance, 17 No Cancellation, No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days' prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put into effect equivalent coverage(s), 18 Waiver Of Subrogation. Consultant's insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against City, 3,9 Verification of Coye1M. Prior to commencement of any work, Consultant shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that ..................................................................................... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 5 ism Agreement No.: 18024. -Al ....... Consultant Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 2021-02-16 Agenda Packet Page 103 of 395 Consultant has obtained the Required Insurance in compliance with the terms of this Agreement, The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives" or any similar language must be deleted from all certificates, 'The required certificates and endorsements should otherwise be on industry standard forms, 'rhe City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications, 110 Claims Made Poligy-Requirements, If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims made fon-n, the following requirements also apply: a. 'rhe "Retro Date" must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement, b. Insurance must be maintained, and evidence of insurance must be provided, for at least Five (5) years after completion of the work required by this Agreement, c. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a "Retro Date" prior to the effective date of this Agreement, the Consultant must purchase "extended reporting" coverage for a minimum of Five (5) years after completion of the work required by this Agreement, cl. A copy of the claims reporting requirements must be submitted to the City for review, 111 Not a Limitation of Other Obligations, Insurance provisions under this section shall not be _ construed to limit the Consultant's obligations under this Agreement, including Indemnity, 112 Additional Coverage. 'To the extent that insurance coverage provided by Consultant maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained, 4. INDEMNIFICATION 4.1. General, 'To the maximum extent allowed by law, Consultant shall protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, "Indemnified Parties"), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys' fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement, 'This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties, Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party, 42 Modified Indemni Services, Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by City of Chula Vism Agreement No.: 18024-A1 Consultant Nirme� SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 104 of 395 California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section I, above, shall be limited to the extent required by California Civil Code section 2782X 43 Costs of Defense and Award. Included in Consultant's obligations under this Section 4 is Consultant's obligation to defend, at Consultant's own cost, expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties, Subject to the limitations in this Section 4, Consultant shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them, 4A� Consultant's Obli-L),ati ons Not I-im J ted or Modified, Consultant's obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Consultant, Furthermore, Consultant's obligations under this Section 4 shall in no way limit, modify or excuse any of Consultant's other obligations or duties under this Agreement, 4.5. Enforcement Costs, Consultant agrees to pay any and all costs City incurs in enforcing Consultant's obligations under this Section 4. 4.6 Survival, Consultant's obligations under this Section 4 shall survive the termination of this Agreement, 5. FINANCIAL INTERESTS OF CONSULTANT. 5.1 Form 700 Filin). 'rhe California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference, 52 Disclosures- Prohibited Interests, Independent of whether Consultant is required to File a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona Fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement, Further, Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona Fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that no officer or employee of City, has any interest, whether contractual, non.- contractual, Financial or otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant's subcontractors, Consultant further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability, 6. REMEDIES 6.1 'Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other ,City of Chuhi Vism Agreement No. : 18024.-A I Constilmrit Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 105 of 395 covenants, agreements or conditions of this Agreement (each a "Default"), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this agreement by giving Five (5) days written notice to Consultant, Such notice shall identify the Default and the Agreement tennination date, If Consultant notifies City of its intent to cure such Default prior to City's specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Consultant up to ten (IO) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6J, Consultant shall immediately provide City any and all "Work Product" (defined in Section 7 below) prepared by Consultant as part of the Required Services, Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof, Consultant may be entitled to compensation for work satisfactorily performed prior to Consultant's receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default, 62 'Termination or Su, . City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Consultant of such termination or suspension at least fifteen ( l 5) days prior to the effective date thereof, Upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all "Work Product" (defined in Section 7 below) to City, Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof, Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City's value under the Agreement, 63 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6A Administrative No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and Filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the ten -ns of this Agreement, 6.5 Governino, Law/Venue. 'This Agreement shall be governed by and construed in accordance with the laws of the State of California, Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California, 6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California, If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by First class mail directed to the individual and address listed under "For Legal Notice," in section I.B. of Exhibit A to this Agreement, and that such service shall be effective Five days after mailing, �City of Chula Vism Agreement No.: 18024-A1 Consultant Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 106 of 395 7.OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, infon-nation, data, statistics, fon-ns, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively "Work Product") shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer Files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer Files, 8. GENERAL PROVISIONS 8.1 Amendment, 'This Agreement may be amended, but only in writing signed by both Parties, 82 ass Dent. City would not have entered into this Agreement but for Consultant's unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City's prior written consent, which City may grant, condition or deny in its sole discretion, 83 authority. 'rhe person(s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principle or officer thereof, 8A Counterparts. 'This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart, 8.5 UnjtireLAgreement, 'This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded, 8.6 Record Retention, During the course of the Agreement and for three (3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the perfon-nance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub.- contractors/sub-consultants, M Further Assurances, 'rhe Parties agree to perforin such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties, 8.8 Independent Contractor, Consultant is and shall at all times remain as to City a wholly independent contractor, Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents ("Consultant Related ;City of Chula Vista. Agreement No.: 18024-A1 Consultant Name: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 107 of 395 Individuals"), except as set forth in this Agreement, No Consultant Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits, Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner, 8.9 Notices, All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been property given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing, (End of page. Next page is signature page.) Ali City of Chuhi Vista. Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 108 of 395 SIGNATURE PAGE CONSULTANT SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date, SC (.'i .- SPICER CONSULTIN(.Ji GROUP, LLC m Shane Spilcel' Managing Director CITY OF CHULA VISTA mm MARY CASILLAS SALAS MAYOR Rog= m Kerry K. Bigelow, MMC City Clerk APPROVED AS TC) FORM Em Glen R. Googins City Attorney City of Chuhi Vista. Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 109 of 395 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Adi-ninistration: Patricia Macias 276 Fourth Avenue Chula Vista, CA 9 l 9 l 0 619409-5916 PMacias(<))chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAtiorney(<))chulavistaca.gov B. Consultant Contract Adininistration: SCG - SPICER CONSLUING GROUP, LLC 4l60 Margarita Road, Suite m,'Temecula CA 92591 (951 ) 208-7870 Shane. spicer(<))spicercgcoif For Legal Notice Copy to: S C (I --- Spicer Consulting Group, LLC Shane Spicer, Managing Director 41619 Margarita Road, Suite l o l,'rei-necula CA 9259 (951 ) 208-7870 Shane. spicer(<))spicercgcoif 2. Required Services A. General Description: 'The services to be performed by Consultant are generally described as follows: Provide Special 'Fax Consultant Services for: Assessinent Districts (ADS), Coi-m-nunity Facilities Districts (CFDs), Open Space Districts (OSDs), and Annual Sewer Assessi-neat Edi-ninistration Services, 1 Provide arbitrage calculations and continuing disclosure services for land-based and non -land based bonds, including Pension Obligation Bonds (POBs) and other future issuances that may be created throughout the terms of the Agreei-nent, 1 Provide district fon-nation and district i-nodification services as needed. City of Chuhi Vista. Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page I 10 of 395 B. Detailed Description: Consultant shall perform the following services: Scope of Work Assessment District A (Iministration an(jjV — portionment 5'ervices 0 Apportion of tax lien for each parcel within the assessment district according to the method of spread in the Engineer's Report 11111171117111111City of -1jj, 1jiVista. Agreement jjNo..j18024-jjA1 Consultant Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 2021-02-16 Agenda Packet Page I I I of 395 Provide assessment installment information for each parcel for submittal in a timely manner to the County of San Diego for placement on the property tax roll, 'rhe infon-nation shall be submitted on the media, format, and con Figuration specified by the County; Research and resubmit entries rejected by the County on behalf of the City; Provide staffing and contact information to Field inquiries concerning Assessment District administration, assessments, payoff calculation, and other information regarding district proceedings and annual installments for property owners, title companies and other interested parties; Prepare an annual levy report summarizing the information used to calculate the annual installment amount for the district, including a list of all Assessor Parcel Numbers; Prepare and record the amended assessment diagrams that result from lot splits or subdivision; Provide support to City staff in researching current and historical tax roll information, ownership, payoff calculation, delinquency notices and delinquent status from the County tax system; Prepare continuing disclosure reports and event notices for City staff review, as required by district disclosure agreements and SEC Rule l 5c2.- 1 2, and disseminate approved documents to the Electronic Municipal Market Access (Eli MA); Provide support to City staff to maintain compliance with the requirements of State of California Revenue and 'Taxation Code l63; Perform required bond call spreads in accordance with applicable state laws and coordinate the early redemption of outstanding bonds as needed; Provide certification related to specific escrow release tests on as needed basis; Assist City staff in delinquency management by closely monitoring outstanding district delinquencies, and provide periodic reports to the City presenting aging and current statuses of all delinquent installments; Provide Arbitrage Calculations at least every Five years for each bond issue as well as a Final computation on the date on which the last maturity of a bond issue is retired; Provide Asset Management Services including the ability to estimate future capital asset replacement, as required by staff, Assist City with new Assessment District fon-nations; and All other special projects as deemed necessary, including but not limited to refunding analysis, Lornrnuni& Facilities District — Bon& -W . Review the special tax schedules prepared by the City and ensure that all debt service and administrative expenses are recovered through the annual special tax levies; 0 Calculate the annual special tax levy for each parcel within the CFD following the guidelines established in the Rate and Method of Apportionment of Special 'Tax; 0 Prepare comprehensive special tax installment infon-nation for each parcel for submittal in a timely manner to the County of San Diego for placement on the property tax roll, 'This in formation shall be submitted on the media, format, and configuration specified by the County; 0 Research and resubmit entries rejected by the County on behalf of the City; 0 Provide staffing and contact infon-nation to field inquiries concerning CFD administration, annual special taxes, payoff calculation, and other information regarding district proceedings and annual installments for property owners, title companies and other interested parties; 0 Prepare an annual levy report summarizing the information used to calculate the annual installment amount for the districts, including a list of all Assessor Parcel Numbers; 0 Assist City staff with proper disclosure of special tax infon-nation for prospective property purchases as required by Sections 53340,2(b) and 53341.5 of the State of California Government Code; City of Chuhi Vista. Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 112 of 395 0 Prepare continuing disclosure reports and event notices for City staff review, as required by district disclosure agreements and SEC Rule l 5c2.- 1 2, and disseminate approved documents to the Electronic Municipal Market Access (EMMA); 0 Perform tasks associated with CFD administration, including but not limited to bond call coordination, release of lien, delinquency reporting, foreclosure coordination, and annexation; 0 Assist City staff in providing inion -nation to bond rating agencies when needed; 0 Assist in maintaining current and future CFD law and regulation compliance and notify City staff of any pertinent changes in CFD law and regulations; 0 Provide certification related to specific escrow release tests on as needed basis; 0 Assist City staff in delinquency management by closely monitoring outstanding district delinquencies, and provide periodic reports to the City presenting aging and current statuses of all delinquent installments; 0 Provide Arbitrage Calculations at least every Five years for each bond issue as well as a final computation on the date on which the last maturity of a bond issue is retired; 0 Provide Asset Management Services including the ability to estimate future capital asset replacement, as requested by staff, 0 All other special projects as deemed necessary, including but not limited to new district fonnation, tax rate projection, and refunding analysis, 0 Calculate the annual special tax levy for each parcel within the CFD following the guidelines established in the Rate and Method of Apportionment of Special 'Tax; 0 Prepare comprehensive special tax installment information for each parcel for submittal in a timely manner to the County of San Diego for placement on the property tax roll, 'rhe information shall be submitted on the media, format, and configuration specified by the County; 0 Research and resubmit entries rejected by the County on behalf of the City; 0 Provide staffing and contact information to field inquiries concerning CFD administration, annual special taxes, and other information regarding district proceedings and annual installments for property owners, title companies and other interested parties; 0 Prepare an annual levy report summarizing the information used to calculate the annual installment amount for the districts, including a list of all Assessor Parcel Numbers; 0 Assist City staff with proper disclosure of assessment information for prospective property purchases as required by Sections 53340,2(b) and 53341.5 of the State of California Government Code; 0 Provide annexation services to all subject developments, boundary map recordation, annexation proceedings, such as public hearing and owner election, and Preparation of rates and Method of Apportionment for annexations, data collection, etc.; 0 Administration and assistance with compliance requirements; 0 Provide Asset Management Services including the ability to estimate future capital asset replacement, as requested by staff, 0 Assist City with new District formations; and 0 All other special projects as deemed necessary, including but not limited to revenue projection and cash flow forecast, QgLnS_ �,M�,in �wn �Di , rids Obtain thorough understanding of the City's OSD establishment, their boundaries, Parcels and particularities; City of Chuhi Vista. Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 113 of 395 0 Review all documentation, databases, and budgets prior to preparing levy analysis, in order to ensure total and complete equity of assessments within each district; 0 Prepare complete documentation for annual assessment, including Engineer's Reports and maps; 0 Attend City Council meetings with OSD.-related items, as requested by City staff, 0 Provide comprehensive assessment installment infon-nation for each parcel and submit in a timely manner to the County of San Diego for placement on the property tax roll, 'rhe infion-nation shall be submitted on the media, format and configuration specified by the County; 0 Research and resubmit entries rejected by the County on behalf of the City; 0 Provide staffing and contact infion-nation to Field inquiries concerning OSD administration, annual assessments, and other information regarding district proceedings and annual installments for property owners, title companies and other interested parties; 0 Prepare an annual levy report summarizing the infion-nation used to calculate the annual installment amount for the districts, including a list of all Assessor Parcel Numbers; 0 Provide Asset Management Services including the ability to estimate future capital asset replacement, as requested by staff, and 0 Complete all reports on OSD required by the state and federal agencies, WanLaAmLrj.a�r Di �,ri � Obtain thorough understanding of the Montgomery Sewer District, its boundaries, Parcels, and particularities of the district; 0 Review all documentation, databases, and budgets prior to preparing levy analysis, in order to ensure total and complete equity of assessments the district; 0 Work with water agencies and download data from them to deter -nine usage; 0 Update sewer and meter rate tables with rate updates from the prior year; 0 Match new accounts to APNs (usually around 2 dozen new accounts/per year); 0 Run initial assessment, and research zero (SO) assessment parcels; 0 Provide database/workbook to City Finance Staff to perfon-n second levy check; 0 Provide comprehensive assessment installment infon-nation for each parcel and submit in a timely manner to the County of San Diego for placement on the property tax roll, 'rhe infion-nation shall be submitted on the media, format and configuration specified by the County; 0 Research and resubmit entries rejected by the County on behalf of the City; 0 Provide staffing and contact infion-nation to field inquiries concerning the district administration, annual assessments, and other infon-nation regarding district proceedings and annual installments for property owners, title companies and other interested parties; 0 Prepare an annual levy report summarizing the infion-nation used to calculate the annual installment amount for the districts, including a list of all Assessor Parcel Numbers; and 0 Complete all reports on the district required by the state and federal agencies, Non -Land Based Bonds Prepare continuing disclosure reports and event notices for City staff review, as required by the bond indenture and SEC Rule l 5c2.- l 2., and disseminate approved documents to the Electronic Municipal Market Access (EMMA); Provide Arbitrage Calculations at least every Five years for each bond issue as well as a final computation on the date on which the last maturity of a bond issue is retired; 5 City of Chuhi Vism Agreement No.. 18024.-A I , Constilmitt Nirme: SCG .- Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 114 of 395 Community Facilities _DistrictL16-1 IA2/Bayfrontl • Review the special tax schedules prepared by the City and ensure that all debt service and administrative expenses are recovered through the annual special tax levies, • Calculate the annual special tax levy for each parcel within the CFD following the guidelines established in the Rate and Method of Apportionment of Special 'Tax; • Prepare comprehensive special tax installment information for each parcel for submittal in a timely manner to the County of San Diego for placement on the property tax roll, 'rids information shall be submitted on the media, format, and configuration specified by the County; • Research and resubmit entries rejected by the County on behalf of the City; • Provide staffing and contact infon-nation to Field inquiries concerning CFD administration, annual special taxed, payoff calculation, and other information regarding district proceedings and annual installments for property owners, title companies and other interested parties; • Prepare an annual levy report summarizing the information used to calculate the annual installment amount for the districts, including a list of all Assessor Parcel Numbers; • Assist City staff with proper disclosure of special tax information for prospective property purchases as required by Sections 53340,2(b) and 53341.5 of the State of California Government Code; • Prepare continuing disclosure reports and event notices for City staff review, as required by district disclosure agreements and SEC Rule l 5c2.- 1 2, and disseminate approved documents to the Electronic Municipal Market Access (EMMA); • Perform tasks associated with CFD administration, including but not limited to bond call coordination, release of lien, delinquency reporting, foreclosure coordination, and annexation; • Assist City staff in providing information to bond rating agencies when needed; • Assist in maintaining current and future CFD law and regulation compliance and notify City staff of any pertinent changes in CFD law and regulations; • Provide certification related to specific escrow release tests on an as needed basis; • Assist City staff in delinquency management by closely monitoring outstanding district delinquencies, and provide periodic reports to the City presenting aging and current statuses of all delinquent installments; • Provide Arbitrage Calculations at least every Five years for each bond issue as well as a final computation on the date on which the last maturity of a bond issue is retired; • Provide Asset Management Services including the ability to estimate future capital asset replacement, as requested by staff, • All other special projects as deemed necessary, including but not limited to new district formation, tax rate projection, and refunding analysis, 3. Term: In accordance with Section 1. l0 of this Agreement, the term of this Agreement shall begin April 01 , 2018 and end on June 30, 2022 for completion of all Required Services, 4. Compensation: City of Chuhi Vism Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 115 of 395 A. For of Compensation Z Single Fixed Fee, For perfon-nance of all of the Required Services by Consultant as herein required, City shall pay a single Fixed fee of $760,000,00, upon coi-npletion of all Required Services to City's satisfaction, 'rhe i-naxii-nwn mount to be paid to the Consultant for all services performed through June 30, 2022, pursuant to the Agreei-nent and this First Ai-nended and Restated Agreei-nent, shall not exceed $760,000, B. Reimbursement of Costs Z None, the coi-npensation includes all costs 5. Special Provisions: E] Pen-nitted Sub. -Consultants: None E] Security for Perfori-nance: "None" Z Notwithstanding the coi-npletion date set forth in Section 3 above, City has option to extend this Agreei-nent for one additional ten -n defined as a one. -year increi-nent. 'rhe City Manager or Director of Finance/'Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises its option to extend, the ai-nount to be paid to Consultant for services provided during the extension tem shall not exceed $240,000, and each extension shall be on the same ten -ns and conditions contained herein, 'rhe i-naxiinui'n ainount to be paid to the Consultant for all services performed pursuant to the Agreeinent, this First Ai-nended and Restated Agreei-nent, and the option to extend, if exercised, shall not exceed $ l,OOO,OWW City of Chuhi Vism Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 116 of 395 give written notice to Consultant of the City's election to exercise the extension via the Notice of Exercise of Option to Extend document, E] Other: Describe Special Provisions (Delete Line If Not Applicable) City of Chula Vista. Agreement No.. 18024.-A1 Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 117 of 395 EXHIBIT B INSURANCE REQUIREMENTS Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x), Other Negotiated Insurance 'Terris: NONE City of Chuhi Vism Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 118 of 395 'Type of Insura cc c� S :::o Minimum Amount Fon-n ene I General Liability: 2 ()() per occurrence for $2,000,000 per occurrence for $ p Insurance Services Office Form Including products and Includ )d lets and in -1 rc d) o i bodilyersol bodily injury, personal injury injury, Inj C(I 00 0 d rat Co] plt, op , ions completc.'Popet ions, (including (including Zath)p, and property g c th property d end personal and damage, If Commercial General advertising injury Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement *Must be prinmiry cind must not or Blanket Al Endorsement for exclude Productsl('Omy)leled City* (%)eralions Waiver of Recovery Endorsement z Automobile Liability $ 1,000,000 per accident for bodily Insurance Services Office Form injury, including death, and CA 00 01 property damage Code 1. -any Auto Code 8 -Hired Code 9 -Non Owned z Workers' $1,000,000 each accident Compensation $1,000,000 disease policy limit Employer's Liability $1,000,000 disease each employee Waiver of Recovery Endorsement z Professional Liability $1,000,000 each occurrence (Errors & Omissions) $2,000,000 aggregate Other Negotiated Insurance 'Terris: NONE City of Chuhi Vism Agreement No.. 18024. -Al Constilmitt Nirme: SCG - Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 118 of 395 EXHIBIT C CONSULTANT CONFLICT OF INTEREST DESIGNATION The Political Deform Act 2 and the Chula Vista Conflict of Interest Code 3 ("Code") require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once Filed, a Fon-n 700 is a public document, accessible to any member of the public. In addition, consultants designated to File the Form 700 are also required to comply with certain ethics training requirements, 4 Z A. Consultant IS a corporation or limited liability company and is therefore EXCLUDED 5 from disclosure, El B. Consultant No,r a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES ((Yale eery descrij)lions available al Le )L -_C/( �!rklcol?&Cl- ill teres /-c ' J,(Je-) Name Email Address Applicable Designation Shane Spicer Shu I(", y,Tsl C("T X0111 El A. Full Disclosure Melissa Bellifirecercj.2,.c01T1 El B. Limited Disclosure (selectone or more Jonathan Short J 011 ("It h (111 ^._Jl ortP!L j x.-rc.2'.com qf1he categories under wh ich the consildlantshall El I . El 2 . E] 3 . El 4 . E] 5 . E] 6 . E] T Justification: Z C. Excluded from Disclosure I.Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who rneets the definitioll of "Consultant," pursuant to FPPC Regulation 18700.3, must file a Form 700. 2.Required Filing Deadlines Each initial Forin 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing systern, Neffile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April I during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation "Che City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded.fiom disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding fifing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at I - 866-ASK--FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this docurnent shall serve as the written determination of the consultant's requirement to comply with the disclosure requirements set forth in the Code. Completed by: James Moore 2 Cal. (Jov. Code §§81000 elseq. - F PPC Regs. 18700.3 and 18704. 3 Chula Vista Municipal Code §§2.02.010-2.02.040. 4 Cal. (Jov. Code §§53234, elseq. 5 CA F PPC Adv. A-15-147 (Chadwick) (2015); Danis i,. Fresno Unfled ,School District (2015) 237 Cal.App.4"' 261-1 F PPC 1�cg. 18700.3 (ConsLiltant defined as an "individual" who participates in making a governmental decision-, "individual" does notinclLtdc corporation or limited liability company). peri City of Chula VistaAgreement No.. 18024.-A1 Consultant Nirme: SCG Spicer Consulting Group, Rev. 10/24/17 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2021-02-16 Agenda Packet Page 119 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 20-OSS8 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CF ULA VISTA 'TEMPORARILY WAIVING ALL LATE FEES IMPOSED UPON DELINQUENT PAYMENTS OF BUSINESS LICENSE FEES FOR THE CALENDAR YEAR 2021 RENEWAL PERIOD 11 17CO M M 1.N 1) A, ("I'll 0 N Council adopt the resolution. SUMMARY In keeping with the spirit and intent of the City's COVID-19 Economic Recovery Plan approved in May 2020, staff is continually working to seek opportunities for business support and assistance during the economic crisis imposed by the COVIN -19 pandemic. To decrease the financial burden of operating a business in Chula Vista without significantly impacting the City's General Fund, staff is proposing the temporary waiver of late fees from delinquent payments of 2021 business license renewal fees. This action would enable businesses to pay their current business license renewal fee at any time in calendar year 2021, likely after operations have stabilized post Regional Stay Home Order and the lifting of purple tier restrictions from business specific sectors, without being encumbered with a late fee. Removal of the late fee will further incentivize business license renewal compliance while adding the flexibility for businesses to pay once they have reopened and stabilized their operations without being faced with additional fees. The business license fee would still be due in full at the time of renewal. 1 11E IIIE�v � W The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity also qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental QualityAct State Guidelines. Not applicable. DISCUSSION Per the Chula Vista Municipal Code, business licenses are considered delinquent after January 31st of each year and a 10% late penalty of the base and employee tax is assessed starting February Is, (CVMC 5.04.020). If not paid, this late penalty increases by 10% each month (March 1st: 20%, April 1st: 30%, May 1st: 40%, June 1st: 50%). All business license taxes not paid by July 1st are assessed a 60% penalty and may be referred P 1 2021-02-16 Agenda Packet Page 120 of 395 to Code Enforcement for further action (CVMC 5.04.030). This action would eliminate collection of late fees for the remainder of 2021. Typical business license renewal fees and the associated late fee are shown in the table below. As of the writing of this report, 8,2 19 business licenses have been renewed and staff anticipates 3A51 renewals are still outstanding and will be delinquent past the January 31s, renewal deadline and therefore subject to the late fee waiver. Business License Renewal Fees* Business Type Base Employee Tax Late Fee Late Fee Renc walTax (10% in February) (60% in July) --------------------------------------- Schedule A or B ----------------------------- $52.50 --------------------------------- $6.50 per -------------------------------------------- ------------------------------------------------- $5.25+$.65/employee $31.50+$3.90/employee (most businesses) employee Professionals $105.00 if<S=$O; $10.50 $63.00 (e.g., Physicians, if>S, Add'I Dentists, Lawyers) ------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Sched A license Vending Vehicles $200 --- --------------------- $0 --------------------------------- $20.00 -------------------------------------------- $120.00 ------------------------------------------------- Example: $52.50 $65.00 $11.75 in penalties $70.50 in penalties Restaurantw/10 ($133.25 renewal ($192.00 renewal total) employees total) *Specific Business Regulatory fees as established in Chapter 4 of the Master Fee Schedule (e g, commercial cannabis, massage establishments, pawnbrokers, etc,) are not included in the above fee table and must still be paid at time of business license renewal. CON171,11(`T 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 Councilmembers 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 Councilmember, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. 1711SCAI. 1IM13AC'T In seeking the recommended action, staff contemplated the best way to balance the needs of providing business assistance while not creating significant impact on the City's General Fund. Business license late fees/penalties are a budgeted revenue source and as such, the acceptance of this action will result in an anticipated current -year fiscal impact of $23,300 for estimated revenue not collected from the 3,451 outstanding business licenses. ONGOING 1711SCAI. IMPACT Ongoing fiscal impact is not anticipated past the 2021 calendar year. Staff Contact: MeyaAlornar, Revenue Manager Miranda Evans, Econornic Developmen t.5pecia list P 12 2021-02-16 Agenda Packet Page 121 of 395 RESOLUI-ION NO, ISE SOLUI-ION OF FHE ary COUNCIL OF 'FHE? ary OF CSI ULA vis,rA,rEMPORARII-Y WAIVING ALL LA,rE FEES IMPOSED UPON DELINQUEN'r PAYMEN,rs OF BUSINESS LICENSE FEES FOR,FHE CALENDAR YEAR 2021 RENEWAL PERIOD WHEREAS, on January 30, 2020, the World Health Organization ("WHO") declared a Public Health Emergency of International Concern, On January 3I, 2020, the United States Secretary of Health and Human Ser vices declared a Public Health Emergency; and WHEREAS, on February I4, 2020, the San Diego County Health Officer declared a Local Health Emergency as a result of the COVID.- l 9 virus, which was subsequently ratified by the Board of Supervisors on February I9, 2020; and WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State of Emergency to make additional resources available, fon-nalize emergency actions already underway across multiple state agencies and departments and help the State prepare for a broader spread of COVID.- l 9. 'rhe declaration was issued as the number of positive California cases continued to rise and following one official COVID.- l 9 death; and WHEREAS, on March I3, 2020, the President of the United States declared a national emergency as a result of the COVID.- l 9 virus; and WHEREAS, on March I3, 2020, due to the escalating number of COVID.- I9 virus cases nationwide, with many cases in the State of California, the City of Chula Vista Director of Emergency Services issued a Proclamation declaring a Local Emergency, as authorized by Government Code section 8630 and Chula Vista Municipal Code section 2. l 4,080(a); and WHEREAS, the Centers for Disease Control and Prevention, the California Department of Public Health, and the San Diego County Department of Public Health have all issued recommendations, including, but not limited to, social distancing, staying home if sick, canceling or postponing large group events, working from home, and other precautions to protect public health and prevent transmission of this communicable virus; and WHEREAS, on March I9, 2020, in a further effort to require the public to practice social distancing to help contain the spread of COVID.- l 9, the Governor issued Executive Order N-33- 20 ordering all individuals living in the State of California to stay home or at their place of residence, except to obtain essential services; and WHEREAS, with the closing of many businesses around the City due to the various orders of the City, the County, and the Governor, many sectors of our local economy have been significantly affected, especially small business owners; and 2021-02-16 Agenda Packet Page 122 of 395 Resolution No. Page 2 WHEREAS, CVMC Section 5,04,020 provides that all annual business license taxes shall be due and payable from and after the First day of January each year and become delinquent after 30 days; and WHEREAS, CVMC Section 5,04,030 provides that any business that fails to pay a business license tax on or before the delinquency date is required to pay a 10% penalty with an additional penalty in the amount of l0% per month, up to 60%; and WHEREAS, to assist local businesses during this time of economic crisis, the City Council desires to extend the payment deadline to December 3l, 2021 for any business licenses and to temporarily waive all penalties and late fees that would otherwise be imposed upon businesses with a delinquent license, NOW'THE REFORE, BE i'r RESOLVED, by the City Council of the City of Chula Vista, California, as follows: Notwithstanding anything to the contrary in Section 5,04,030 of the Chula Vista Municipal Code or any other applicable law, rule, or regulation, any penalties or late fees that may otherwise accrue for a business that fails to timely remit any business license tax imposed by Chapter 5.04 of the Chula Vista Municipal Code are hereby waived for the calendar year 2021 renewal period, Eric C. Crockett Deputy City Manager Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 123 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 20-0560 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CF ULA VISTA APPROVING THE 2021 ANNUAL REPORT FORTHE DOWNTOWN CHULA VISTA PROPERTY -BASED BUSINESS IMPROVEMENT DISTRICT 11 17CO M M 1.N 1) A, ("I'll 0 N Council adopt the resolution. SUMMARY The Downtown Chula Vista Property -Based Business Improvement District (PBID) was organized in 2001 to implement various enhancement services within the 'Third Avenue Village and Downtown area and is directly administered for the City by the owner's association known as the Third Avenue Village Association (TAVA). In accordance with Streets and Highways Code 36650-3665I,'FAVA is required to prepare a report for each fiscal year, exceptthe firstyear, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The attached report does not propose any modifications to the boundary of the District, the basis and method of levying assessment, or any changes to property classification and complies with the reporting requirements outlined in the Streets and Highways Code. The total annual assessments for the 2021 year estimated at approximately $462,469. Staff has reviewed the annual report and recommends the City Council approve the attached resolution. 1 11E JI�v :M The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Not applicable. DISCUSSION The Downtown Chula Vista Property -Based Improvement District (PBID) was organized in 2001 to implement various enhancement services within the Third Avenue and Downtown area and is directly administered for the City by the owner's association known as the Third Avenue Village Association (TAVA). In accordance with Streets and Highways Code 36650-36651, TAVA is required to prepare a report for each 1 2021-02-16 Agenda Packet Page 124 of 395 fiscal year (Attachment 1), except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. TAVA administers funds received from a PBID and receives approximately $462,469 annually in PBID assessment revenue. In addition to PBID revenue, TAVA has additional revenue from events, business licenses, grants and in-kind contributions; bringing total revenue for'FAVA to approximately $611,000. The approved line item budget for'FAVA's fiscal year is attached as Attachment 2. Prepared in accordance with the State of California Property and Business Improvement Districtlaw of 1994, Streets and Highways Code section 36650, the Annual Planning Report represents the fifth year of program operations within the current ten-year term. Pursuant to Streets and Highway Code 36650-36651,'FAVA is required to report the following information: There are no recommended changes to the boundaries of the PBID or in any zones or classification of property or businesses within the district. Section 3: Assess mint _ffudW The estimate for improvements, maintenance, and activities includes $466,169 in total expenditures. Section 4: Meth od RLFinancing Revenues will be collected through the levy of special annual assessments upon the real property for which the services and activities are provided. There are two benefits zones, those parcels that front Third Avenue and those that do not. The method of financing is contained in the attached annual report. Section 5n art Ws/Deficit Revenue TAVA estimates a revenue deficit of $12,000 from 2020 due to an unplanned expense of $37,500 associated with professional public relations and marketing consulting services to promote district awareness during the pandemic. TAVA will provide the City with a final audit report upon completion. P ;,' e 12 2021-02-16 Agenda Packet Page 125 of 395 Section 6: Other Fun 9jn&Lgn!Eihm1jgaa The only other funding contributions TAVA anticipates receiving is baseline funding from the City in the amount of $5,45 7. Section 7: PBID Environmental and Economic Enhancements, in addition to Advocacy and Administration include various key functions such as homeless assistance, maintenance and graffiti removal. Staff has reviewed the annual report and finds that it is in conformance with the reporting requirement of the Streets and Highways Code 366S0 -3665I. In addition to the funds reported in the 2021 budget, TAVA also maintains in its accounts approximately $187,000. Ofthatamount, $50,000 is anticipated to fund a street tree lighting project and $120,000 is earmarked to cover TAVA expenses during first quarter 2021 while TAVA awaits receiving the PBID assessment monies which are collected by the County, and subsequently transferred through the City to TAVA. CON171,11(`T Staff has reviewed the property holdings of the City Council and has found that, Mayor Casillas Salas has real property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2 (a) (7), this item presents a disqualifying real property -related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the above -identified member. 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. 1711SCAIL 1IM13AC'T There is no current year fiscal impact on the General Fund as a result of this action as all actions will be funded out of existing resources. ONGOING 1711SCAIL IIMIIAC'T There is no ongoing fiscal impact as a result of this action. ATTACHMENTS 1. Third Avenue Village Association Annual Report - 2021 2. Third Avenue Annual Budget - 2021 3. Maintenance/Encroachment Agreement Staft'Contact: Kevin Pointer, Senior Economic Development Specialist P ;,,, e 13 2021-02-16 Agenda Packet Page 126 of 395 RESOL[YrION NO, RESOL[YrION OF FHE ary COUNCIL OF 'FHE ary OF CHULA vis,FA APPROVINGi THE 2021 ANNUAL ISI POR,r FO ,FH DOWN'roWN CHULA vis,FA PROPER'ry-BASED BUSINESS IMPROVEMEN'r Dismicr WHEREAS, the City Council of the City of Chula Vista established a 'Third Avenue Property. -Based Improvement District (PBID) on July 24, 200I; and WHEREAS, the PBID was renewed in 2006 for an additional ten years; and WHEREAS, the PBID was renewed in 2016 and is currently in its Fifth year of another ten-year term (for the period January I, 20 l 7 through December 3I, 2026); and WHEREAS, the 'Third Avenue Village Association ('FAVA) is the owners' association for the PBID; and WHEREAS, 'FAV A is required by the California Streets and Highways Code to prepare an annual report for City Council consideration; and WHEREAS, 'FAV A has submitted its annual report for Fiscal year January i, 2021 through December 3I, 202I and Filed it with the City Clerk, NOW, ,FHEISI FOR E, BE i,r RESOLVED by the City Council of the City of Chula Vista that it approves 'FAV 's 2021 annual report for the Downtown Chula Vista Property. -Based Improvement District, Eric Crockett Deputy City Manager Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 127 of 395 Fiscal Year J W�� Downtown Chula Vista Property lBased Improvement District IFY 2021 Annuall Planning IReport to the City of Chula Vista Table of Contents Section Numbeir 1® Introduction 2® F' II Boundary and Map ® F' II Assessment Budget ® Method of Financing 5® Previous Year Surplus / Deficit Revenue 6. Otheir Funding Contributions '7® F' II Activity, Improvements, and Services ® City of Chula Vista Base ILevel Services 9. District Duration and Governance VTIT�� Downtown Chula Vista PBID Annual Planning Report FY 2021 'The DOWNTOWN CHULA VISTA PROPERTY -BASED BUSINESS IMPROVEMENT DISTRICT NO. 2016-122 (boundaries depicted on page 4) was successfully renewed by the Chula Vista City Council and approved by district property owners on June 14, 2016 for an additional ten- year period from January 1, 2017 through December 31, 2026. 'The district is managed by 'Tire 'Third Avenue Village Association (TAVA), which has overseen the operations of the PBID and its funding since January 1, 2002. Prepared in accordance with the State of California Property and Business Improvement District law of 1994, Streets and Highways Code section 36650, the 2021 Annual Planning Report represents the fifth year of program operations within the current ten-year term. 'The PC: ID's activities and improvements aim to improve and convey special benefits to properties located within the defined downtown Chula Vista, providing services beyond the basic services provided by the City of Chula Vista. 'There are no proposed changes to the PBID boundaries for 2021.The PBID encompasses approximately a 16 -block area along the 'Third Avenue commercial corridor, bounded by E Street to the north, Church Avenue to the east, Landis Avenue to the west and I Street to the south. It also includes one block on F Street that includes the City of Chula Vista central library and police station. Within the PBID boundary, there are two distinct benefit zones for the maintenance programs and activities. It was determined that the properties located on 'Third Avenue required maintenance services more frequently than the properties in the PBID located to the east and west of Third Avenue. Described below are the benefit zones. l3listrict-Wide Mali inteinaince: Is defined as all assessable properties within the PBID boundary. All parcels in the PBID boundary will receive the same base level of maittetasce services. Thlird Avenue Enhanced: Is defined as all assessable properties with frontage along 'Third Avenue, between E Street and H Street. 'These properties will receive a higher frequency of maintenance services than other parcels within the PBID boundary. 'The map oin the foll1lowling Ip iillllustrates the PBID Ibounairy gmi� Downtown Chula Vista PBID Annual Planning Report FY 2021 400 Proposed Houndailes for the ........ 1, Feet ow"town ChiAn Vista PMD 7101 Ate EnhancAd Servicos D6slrict-Wde Boundwy Parcels Downtown Chula Vista Downtown Chula Vista PBID Annual Planning Report FY 2021 11, , 11 1111111!! MMY '91,17F Financing is provided by the levy of special annual assessments upon the real property for which the services and activities are provided. 'These assessments are not a tax for the general benefit of the City. Assessment Calculation: As previously stated, the PBlD activities are segregated into two benefit zones; those parcels that front 'Third Avenue and those that do not. Annual assessments are based upon an allocation of program costs and a calculation of lot square footage and street frontage. Assessment Rates Per Sq. Ft. of Per LI Lot Foot Properties alloingThird Avenue $0.092 $16.792 (between E and H Streets) All other (prop rtii iiia the District $0.917 $2.393 Since the re-establishment of the PBlD in June of 2016, theTAVA Board of Directors has only increased the assessment rate once. There was a 3% increase in the assessment for FY 2018. ZMEM Downtown Chula Vista PBID Annual Planning Report FY 2021 , Ilk, M11111 I III 1 111 11 111 il III 1 11111111 1 11! 11 1 1 � I I I RMARMIN'lM .- -M I' I il mil i With the previous fiscal year ending on December 31, 2020, the FY 2020 audit and tax return have yet to be completed. At the time of this report, 'TAVA estimates that there will be a $12,000 revenue deficit from FY 2020 as associated with the PBID. During FY 2020, the TAVA Board of Directors engaged the services of a professional public relations and marketing firm to promote the district during the current unprecedented pandemic. Promotion and district awareness was increased extensively via social media platforms, online magazines, and through televised stories regarding the economic challenges of the district and the tenants of the property owners. 'This necessary expense added an unplanned expense of $37,500. A final audit report will be provided to the City of Chula Vista upon completion. The City of Chula Vista will contribute baseline service funding in the amount of $5,457. Bond Issuance: No bonds will be issued to finance improvements in 2021. lllllliiiilililill�l� ill Ill III ill 11 lip 11111 1111111 ji�i 11 lillil l�ril RICAN IN" 111 IMMUM11 11, Envi iron mental Enhancements Public Sgf2t�L: 'TAVA works closely with the Chula Vista Police Department to educate property owners on the safety and trespass programs that support property owners in the prevention of property crimes and to mitigate trespassing when the owner is not present. 'Through the rapid removal of graffiti tags, vandals become discouraged as their tags cannot bring them notoriety amongst their followers nor identify an area associated with a specific gang. Maintenance Seirvices: TheTAVA Clean & Safe Team provides enhanced maintenance and landscape services within the 'Third Avenue Village PBID. The services provided by 'TAVA assures the property owners and the City of Chula Vista that the district will be maintained at a level beyond the basic services provided by the City of Chula Vista. For TAVA to effectively approach the maintenance issues facing the district, a multi -dimensional approach has been developed consisting of the elements and at the frequency stated below. 'TAVA's commitment to provide maintenance services to the district are also outlined in the Third Avenue Encroachment Permit for Maintenance Services Between the City of Chula Vista and the Third Avenue Zlll�q�,�ssocl�tlon entered June 14, 2016. Sidewalk Maintenance: Uniformed personnel remove litter, debris, and refuse from sidewalks and trash receptacles within the District, as well as clean all hardscape, benches, and bus stops. Public landscape areas within the 'Third Avenue Service Area are maintained and replanted by 'TAVA staff and a professional landscape company. 'TAVA utilizes and maintains a web -based ZMEM Downtown Chula Vista PBID Annual Planning Report FY 2021 electrical irrigation program and repairs the associated in -ground irrigation system and controllers as needed. TAVA abates graffiti, debris, and weeds within the alley public right-of-way and reports illegal dumping to private property owners so that they can have the item(s) removed by Republic Services if applicable. Giraffiti Removal: The Clean 'Team removes graffiti from painted surfaces (not brick or windows) up -to 12' by painting, using environmentally safe solvents, and pressure washing. 'TAVA's goal is to remove all tags within 48 hours of notification. Sidewalk Piressuirei�n-: The 'Third Avenue Service Area is to have all sidewalks pressure washed quarterly through a professional company. The high use areas will be cleaned byTAVA on an as -needed basis. However, during state mandated drought years, pressure washing may not be permitted. Homeless Outreach: Reducing homelessness, providing the homeless with resources, and reducing disruptive behavior from street populations is a top priority among district property and business owners. In 2021, TAVA's staff will continue to work closely with Chula Vista's Public Works Department and the Chula Vista Police Department's Homeless Outreach Team to collaboratively inform the homeless population of resources and alternatives to occupying private business properties. Economic Enhancements Economi2_gEy2jqpp2gnL 0 With the unexpected economic consequences of the COVID-19 pandemic, the property owne and their tenants will continue to need the collaborative support ofTAVA, the City of Chula Vista Economic Development and Development Services Departments. Although the economic goall the first two quarters of 2021 will be to retain as many businesses as possible, 'TAVA has renew its investment to utilizing the professional marketing and public relations company Alternati Strategies to revive the district back to prosperity.The services of Alternative Strategies will proviC significant member and district promotion on social media, online magazines, blogs, as well a� through televised news stories and print media that circulate throughout all of San Diego County. Property and business owners will i benefit from the marketing of 'TAVA's signature events, tI` 'Taste ofThird, Avenue, Amps, & Ales, Lemon Festival, and the fall season's Villains in the Villag Mmi� Downtown Chula Vista PBID Annual Planning Report FY 2021 Considering that there may be limitations to event production and the number of attendees, 'TAVA is preparing alternatives to provide promotion while adhering to the mandates that are related to the current pandemic. Investoir M2Ltefing:. During 2021, 'TAVA will position the 'Third Avenue Village district as San Diego County's future dining, retail, and entertainment destination. With multiple urban development projects currently in progress along with Chula Vista's Bayfront development, investors will be able to envision the future vitality of the district. Communication Seirvices: In FY 2021 TAVA will update its website focusing on assuring that it is ADA compliant with continued information regarding the pandemic, financial grants, and government programs for members. 'TAVA will continue its production of monthly member and public newsletters, increased social media outreach to the public that projects a creative and positive business image in the media. Adyocaq)L: TheTAVA provides member advocacy that allows downtown property owners to project a unified voice and elevate their influence in policies and issues that affect the central business district. 'TAVA will continue to provide member resources via its website, workshops, and its professional staff. Each year, 'TAVA refers and introduces existing and potential members to Chula Vista's Development Services and Economic Development Departments regarding development questions within the district. Adminn stin ation: The PBID finances the professional staff that provides the services necessary for daily operations, maintenance, landscaping, economic development implementation, and advocacy on behalf of the district. Funds are allocated to office and support services such as bookkeeping, legal consultation, office rent, insurance, and office equipment. Reseirve: When year-end finances allow a 5.0% operating reserve is allocated as a contingency for any payment delinquencies and/or unforeseen budget adjustments. The FY 2021 budget does not include the allocation as an expense. If year-end finances allow, the TAVA Board will determine the amount to place into reserve. Currently TAVA holds $120,000 in operational reserve to be utilized for expenses within the first quarter of the calendar year when disbursement of assessment revenue is delayed. SECTION 8: City of Chula it Base Levell Services The City of Chula Vista has established and documented the base level of pre-existing City services. Tire PBID does not replace any pre-existing general City services. MOMM Downtown Chula Vista PBID Annual Planning Report FY 2021 Duiration: The PBID has a ten-year term commencing January 1, 2017 through December 31, 2026. Any major modifications or new or increased assessments during the term of the district that are not consistent with the provisions of the original Management District Plan will require a new mail ballot process. Distirict Goveirnance: The owner's association 'Third Avenue Village Association (TAVA) manages the Downtown Chula Vista PBID as established by the Chula Vista City Council. The current PBID term is from January 1, 2017 to December 31, 2026. MUMM 4:54 PM Third Avenue Village Association 11/25/20 Profit & Loss Budget Overview Accrual Basis January through December 2021 Ordinary Income/Expense Income 42000 - Other Revenue Maintenance Revenue 42100 - Interest Income 42200 - Miscellaneous Revenue 42000 • Other Revenue - Other Total 42000 • Other Revenue 44000 • BID Revenue 44100 • Business License 44200 • BID Event Revenue 44300 - BID Grants 44400 - Inkind Contributions 44600 - Associate Membership Total 44000 • BID Revenue 45000 • PBID Revenue 45050 • PBID Event Revenue 45100 - Property Owner Assessments 45300 • Grants 45400 • Inkind Contributions 45500 - Other Revenue 45700 • PBID Grants Total 45000 - PBID Revenue 46000 - Uncategorized Income Total Income Jan - Dec 21 0.00 0,00 0.00 0,00 0.00 20,000.00 84,330.00 0.00 0.00 600.00 104, 930.00 0.00 467, 924.90 0.00 0.00 0.00 0.00 467,924.90 0.00 572,854.90 Gross Profit 572,854.90 Expense PBID Expenses 85000 - PBID Event Expenses 0.00 50000 - Compensation & Benefits 50200 • Health Insurance 0.00 50300 • Payroll Taxes 20,620.00 50400 - Payroll Processing Fee's 5,115.00 50500 - Salaries & Wages 240,989.00 50700 - Workers Comp 9,300.00 50800 - Cell Phone Allowance 1,440.00 Total 50000 - Compensation & Benefits 277,464.00 70000 - Outside Services 70100 - Accounting Fees 12,730.00 70200 - Advertising and Promotions 42,000.00 70300 - Computer- Web Site 8,130.00 70400 - Legal Fees 6,000.00 70500 • Outside Contract Services 0.00 Total 70000 - Outside Services 68,860.00 2021-02-16 Agenda Packet Page 1 Page 137 of 395 4:54 PM Third Avenue Village Association 11/25/20 Profit & Loss Budget Overview Accrual Basis January through December 2021 80000 • Operations 80100 - Office Expense 80105 - Bank Charges 80110- Business Registration Fees 80115 - CC Processing Fee's 80120 • Charitable Contributions 80125 - Dues & Subscriptions 80130 - Equip Rental & Maintenance 80140. Meals & Entertainment 80145 • Office Maintenance 80150 • Postage, Mailing Service 80155 • Printing & Reproduction 80160 • Small Tools 80165 • Supplies 80170 • Telephone, Telecommunications 80175 • Penalties Total 80000 • Operations 81000 • Occupancy Cost 81100 - Rent 81200 • Utilties 81300 • Parking 81400 - Waste Services Total 81000 - Occupancy Cost 82000 • Insurance 82100 • Insurance - Liab, D&O, Auto 82300 - Property Insurance Total 82000 • Insurance 83000 • Travel and Meetings 83100. Conference, Convention, Meeting 83200 - Travel 83000 • Travel and Meetings - Other Total 83000 • Travel and Meetings 84000 • Maintenance Services 84100 • Auto 84120 - Auto Registration 84130 - Fuel 84140 - Maintenance & Service Total 84100 • Auto 84200 • Maintenance Supplies 84400 • Third Avenue 84420 • Maintenance Payroll 84430 - Outside Services Total 84400 • Third Avenue 84500 - District Utilities Total 84000 • Maintenance Services Total PBID Expenses Bid Expenses 91000 • Outside Services 91100 • Advertising & Promotions 91200 • Outside Contract Services 91000 • Outside Services - Other Total 91000 - Outside Services 2021-02-16 Agenda Packet Jan - Dec 21 2,400.00 60.00 34.00 1,125.00 0.00 385.00 3,900.00 600.00 800.00 605.00 844.00 0.00 1,800.00 3,780.00 0.00 16,333.00 46,350.72 2,160.00 0.00 3,876.00 52,386.72 15,110.00 0.00 15,110.00 0.00 0.00 240.00 240.00 280.00 1,590.00 940.00 2,810.00 10,920.00 0.00 45,167.00 45,167.00 8,400.00 67,297.00 497,690.72 0.00 0.00 0.00 0.00 Page 2 Page 138 of 395 4:54 PM Third Avenue Village Association 11/25/20 Profit & Loss Budget Overview Accrual Basis January through December 2021 92000 • Operations 92105 • Bank Charges 92115 • CC Processing Fees 92130 • Postage, Mailing Service 92135 • Printing & Reproductions 92140 • Supplies Total 92000 - Operations 95000 • Event Expenses Total Bid Expenses 88000 • Award / Contest Winners Total Expense Net Ordinary Income Other Income/Expense Other Expense 89100 • Loss on Disposal of Fixed Asset 99999 • Ask My Accountant Total Other Expense Net Other Income Net Income 2021-02-16 Agenda Packet Jan - Dec 21 0,00 0.00 0.00 0.00 0.00 0.00 73, 581.00 73, 581.00 0.00 571,271.72 1,583.18 0.00 0.00 0.00 0.00 1,583.18 Page 3 Page 139 of 395 ACN # IbOl0 Attach en.t 3 THIRD AVENUE VILLAGE AGREEMENT AND ENCROACHMENT PERMIT FOR MAINTENANCE SERVICES BETWEEN THE CITY OF CHULA VISTA AND THE THIRD AVENUE VILLAGE ASSOCIATION This Agreement ("Agreement") is entered into effective Ju -n{ 14 , 2016 ("Effective Date") by and between the Third Avenue Village Association ("TAVA"), a private, non-profit corporation, and the City of Chula Vista ("City"), a California municipal chartered corporation. This Agreement shall also constitute an Encroachment Permit issued to TAVA by the City, as of the Effective Date, for all work to be performed by TAVA pursuant to this Agreement. This Agreement and Encroachment Permit are made and issued pursuant to the following facts: RECITALS WHEREAS, on June 17, 1980, the City established the Towne Centre #1 Street Lighting and Landscape Maintenance District ("L&LMD"), via Council Resolution 10139, to maintain the landscape and lighting beautification project along Third Avenue; and WHEREAS, on July 24, 2001, the City established the Downtown Chula Vista Property -Based Business Improvement District ("DTCV PBID"), via Council Resolution 2001-232, which took over the L&LMD responsibilities and expanded economic development activities; and WHEREAS, the DTCV PBID is administered by TAVA and, inter alfa, provides for enhanced maintenance services by TAVA within the DTCV PBID boundaries; and WHEREAS, the DTCV PBID services the Third Avenue commercial corridor that encompasses E Street to the north, Landis Avenue to the west, Church Avenue to the East, and I Street to the south ("Third Avenue"); and WHEREAS, the area commonly known as Third Avenue Village ("Village") which runs the length of Third Avenue, starting at the north end of the intersection at E Street and ending at the south end of the intersection at I Street is within the DTCV PBID boundaries; and WHEREAS, on September 17, 2002, the City appropriated funding to construct the Downtown Monument Sign ("Arch sign"), via Resolution 2002-378, and the Downtown Business Association (predecessor to TAVA) agreed to cover the future electrical power, monthly maintenance and routine repair costs for the Arch sign; and WHEREAS, on July 18, 2006, the DTCV PBID was renewed for a period of 10 years pursuant to City Resolution 2006-222/Redevelopment Agency Resolution 2006-1949; and WHEREAS, TAVA is in the process of renewing the DTCV PBID for a new 10 -year term ending December 31, 2026; and WHEREAS, the proposed Management District Plan, including the Engineer's Report, submitted by TAVA in conjunction with the renewal of the DTCV PBID (the "Renewal Plan"), identify certain Environmental Enhancements to be provided by the DTCV PBID, generally including: (Client Files/4957/1/K/S0405920.D0CX}Page I of 12 2021-02-16 Agenda Packet Page 140 of 395 2 Zvl6 -12� sidewalk sweeping, sidewalk pressure washing, graffiti removal, landscaping maintenance, irrigation, sidewalk maintenance, beautification, tree lighting, and other activities as set forth in the Renewal Plan; and WHEREAS, TAVA members and property owners benefit from the previously installed and planned future enhancements along Third Avenue ("Enhancements") by improving the overall Third Avenue image and marketability, drawing potential customers into the Village; and WHEREAS, the Enhancements include, but are not limited to, the ULMD, the Arch sign, enhancements being made pursuant to the Third Avenue Streetscape Master Plan ("TASMP"), and the Environmental Enhancements contained in the Renewal Plan; and WHEREAS, the City and TAVA are entering into this Agreement based on the understanding that TAVA is supportive of the Enhancements, will perform annual maintenance of, and services to, the Enhancements, and will provide funding for the same by including them in the Renewal Plan, and the annual PBID reports and budget documents prepared in accordance with California Streets and Highways Code Sections 36600, et seq. ("PBID Law"); and WHEREAS, the City and TAVA acknowledge that this Agreement is dependent upon renewal of the DTCV PBID, that the TAVA Responsibilities, as described in Article I of this Agreement, are encompassed within the activities to be provided by the DTCV PBID pursuant to the Renewal Plan, and that the City will continue to provide the basic levels of service within the DTCV PBID boundaries as those provided citywide. NOW, THEREFORE, for valuable consideration, the City and TAVA do hereby mutually agree as follows: All of the Recitals above are incorporated into this Agreement by this reference. ARTICLE 1. TAVA'S OBLIGATIONS A. GENERAL DESCRIPTION OF MAINTENANCE SERVICES. The Enhancements to be maintained under this agreement are typically located within the DTCV PBID and TASMP boundaries. The "Maintenance Area" consists of Third Avenue. starting at north end of intersection at E Street and ending at south end of intersection at H Street. A map of the Maintenance Area subject to this Agreement is attached as Exhibit A. TAVA agrees, at its expense using PBID funds, which TAVA will allocate in sufficient amounts to allow TAVA to perform its responsibilities under this agreement, to maintain the Enhancements, as set forth more fully in Article I, Section B, at a level as determined by TAVA no less than the generally accepted preventative maintenance standards and frequency that promotes a safe, enjoyable, and vibrant environment or streetscape experience ("TAVA's Maintenance Responsibilities"). TAVA further agrees that TAVA's Maintenance Responsibilities are encompassed within the activities contemplated to be provided by the District in the Renewal Plan and will be contained in the PBID reports and budgets which TAVA will file with the City Clerk annually, pursuant to the PBID Law. {Client Files/4957/l/K/S0405920.DOCX)Page 2 of 12 2021-02-16 Agenda Packet lege 141 of 395 The City agrees, at its expense, to maintain facilities as set forth more fully in Article I1, Section C, at a basic level of service provided citywide. It is understood that the maintenance, repair, and/or replacement of the Enhancements that are not the obligation of TAVA under this Agreement, are, unless otherwise agreed upon, the responsibility of the City. However, the City is not required or obligated in any manner, including this Agreement, to perform maintenance, repair, or replacement of the Enhancements. For items listed as "Street Appurtenances" in Article 1, Section B.1, elements damaged beyond repair by unknown third parties, as determined by the City, will be removed by the City and not replaced. TAVA can elect to fund replacement of the "Street Appurtenances" items at their discretion. For purposes of definition, the term "maintenance" or "maintain" shall mean typical routine maintenance activities, including but not limited to, cleaning, painting, trimming, pruning, watering, repairing and the replacement of system components of items identified in Article 1, Section B of this Agreement. "Replacement of system components" applies to the Irrigation and Lighting Systems. Water utility costs from existing and future meters servicing the landscaping along Third Avenue between E and H Street, as shown on Exhibit B, shall be a TAVA responsibility. Electricity cost from existing and future meters servicing the electrical needs along Third Avenue between E and H Street, as shown on Exhibit B, will be proportioned between the City and TAVA. Meters that serve only the auxiliary power pedestals will be the responsibility of the City. A separate agreement will be required to provide payment and allow use of the auxiliary power pedestals. The remaining meters serve the low voltage transformer for tree (twinkle type) lights, tree accent (up type) lights, irrigation systems, special signage and pedestrian lights. These meters will be in the City's name and bills will be divided between the City and TAVA. The City will calculate the energy usage of the pedestrian lighting only, which will be the City share of the monthly bill, and invoice TAVA for the remaining amount since all other electrical components on the meter are TAVA responsibilities. The calculation for the pedestrian lighting will be: (number of lights x wattage of lights x number of hours on) 1 1000 = kilowatt hours kilowatt hours x the rate = cost of pedestrian light energy usage Any City property and/or Enhancement that is damaged by TAVA staff or their contractors during the course of fulfilling TAVA's maintenance responsibilities shall be repaired or replaced by TAVA. Repair and replacement proposals will be subject to approval of the City to ensure public safety. The City and TAVA both acknowledge that future Enhancements may be implemented in phases. Accordingly, TAVA will be required to maintain, as set forth herein, the future Enhancements after any applicable plant establishment/warrantee period has expired and they are accepted by the City. The City shall provide 30 days written notice to TAVA of the start date that TAVA is to begin its maintenance of any future Enhancements. TAVA agrees to begin its maintenance activity by the start date stated in the City's notice. This Agreement does not otherwise relieve TAVA of its required enhanced maintenance services pursuant to the DTCV PBID. JClient Files/4957/l/K/SO405920.DQCX}Page 3 of 12 2021-02-16 Agenda Picket Page 142 of 395 B. INL4INTENANCE RESPONSIBILITIES OF TAVA. TAVA shall be responsible to perform the following and, will annually allocate and budget appropriate PBID funds to do so: 1. Street Appurtenances: Street appurtenances will be maintained based upon manufacturers' recommendations or general accepted practices. Examples of street appurtenances are: benches; bus shelters; trash, recycling and smoking receptacles (excluding "Big Belly" types); bicycle racks; kiosks; directional/wayfinding, signage; Third Avenue Village themed signae and banners; interpretive signs; decorative art elements; outdoor decorative clock, (at 3' Ave. & F St.) holiday decorations. Signage shall be kept clean and internally lit signs shall be maintained in working condition. 2. Landscape Maintenance: All public landscaped areas, medians, planters and tree wells will be maintained including trash and debris removal, trimming, dead heading, root pruning, watering, fertilizing and treating for disease to promote healthy growth and enhanced visual appearances. Replacement of all plantings, except street and palm trees, that die or are damaged by unknown third parties will be funded for and at the discretion of TAVA. Street trees (consisting of existing and newly planted trees within the maintenance area) will be maintained using general standard horticultural practices proper for each particular tree. Tree branches shall be kept lifted to a minimum height of eight (8) feet for safe pedestrian movement around the trees, and shrubs will be trimmed, irrigated and fertilized per general standard practices to insure a healthy appearance and to prevent interference with walkways and pedestrians. The median palm trees are excluded and will be maintained by the City. Street tree grates will be maintained per manufacturer guidelines and frequency to ensure that the street tree grates are properly maintained for condition and appearance and to prevent interference with walkways and pedestrians. 3. Irrigation Systems: Operate, repair and replace, as needed, all irrigation system components including water and electrical utility costs. The system shall be maintained per manufacturer's guidelines and spray heads adjusted to minimize overspray into adjacent public rights of way. Damaged irrigation controllers, communication cards and antennas, enclosures, pumps, valves, backflows, irrigation lateral and main line and sprinkler heads will be repaired or replaced, including all wiring and other irrigation related electrical equipment, as soon as practical to avoid plant loss. TAVA shall maintain annual online Rainmaster IC service contracts for central control capability. Irrigation main line failures under streets or sidewalks are excluded and will be repaired by the City. 4. Lighting Systems: Operate, repair and replace, as needed, all decorative accent lighting systems and component and, associated calculated electrical energy cost as described in Article I, Section A. Accent lighting includes, but is not limited to, tree up -lighting, tree twinkle lights, themed signage lighting. Accent lighting f -fixtures shall be maintained per manufacturer's guidelines and kept in working order. Adjustments to lighting shall be performed as needed. Burnt out bulbs shall be replaced as soon as practical. Since portions on the electrical system are shared with the pedestrian lighting system (City), only the system components immediately accessible (for example, the bulb/light housing, the electrical outlet for tree lights, the 6-12 inches of conduit riser below ground) are to be maintained by TAVA. The remainder of the electrical system will be maintained by the City. 5. Pedestrian Areas: Clean and perform minor repairs to all pedestrian areas (concrete and brick pavers), as needed, including the removal of unsightly materials from the sidewalks, {Client Files/4957/1/K/SO405920.DOCX}Page 4 of 12 2021-02-16 Agenda Packet lege 143 of 395 sweeping, and power washing. Brick pavers will be cleaned per manufacturer's guidelines and frequency and retreated or resealed per manufacturer's recommendation to protect the paver surface. Pedestrian crosswalks are excluded and will be maintained by the City. 6. Electricity and Water. TAVA shall be responsible for the costs of and be required to provide water and electricity to perform the maintenance services of this Agreement, including watering of vegetation. TAVA agrees to have the bill for water placed in its name and shall take all necessary actions to do so upon request by the City. Electrical power meters will be in the City's name and the City will invoice TAVA the calculated power usage, as described above in Article 1, Section A. 7. Graffiti. Graffiti (within 12 feet of the ground, excluding murals on private property) will be removed from all features within the PBID Boundary within 72 hours of being reported. Graffiti above 12 feet will be the responsibility of the property owner, Public or Private. 8. General Maintenance: Perform general miscellaneous maintenance services in the PBID Boundary area (including alleys) on a daily basis. General maintenance can include routine cleaning, trash and debris removal (excluding hazardous waste), and minor repairs to ensure a clean and aesthetically pleasing environment throughout the Village. These activities will be at the discretion of TAVA and as defined in further detail in the PBID Renewal Management Plan_ 9. Permits. This Agreement will serve as the Encroachment Permit for TAVA to perform the activities described herein. For activities requiring traffic control on the city streets, a traffic control plan shall be submitted to the Traffic Engineering Section for review and approval at no cost to TAVA. Any other non -city permits that may be needed to perform the work described herein will be obtained by TAVA. Special Event permits will still be required. l0. Reporting of Hazardous Conditions. Any condition or hazardous situation to the general welfare of the public within the public right of way observed by TAVA personnel or contractors in the normal conduct of their duties under this Agreement shall be remedied, reported to the City when not within the scope of this agreement or blocked off within 48 hours of discovering or reporting of the condition. An example of a hazardous condition would be where a tree grate has been displaced from its safe and proper setting, in such a way that a pedestrian may trip. Another example would be broken irrigation systems that would flood water if the system were activated Failure of TAVA staff or contractors to observe or appreciate hazardous conditions or situations shall not give rise to any liability by TAVA for a failure to report such conditions that are outside the scope of this Agreement to the City. C. STANDARD OF CARE. TAVA expressly warrants that the work to be performed pursuant to this Agreement shall be performed in accordance with the standard of care ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. No TVaiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the TAVA of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the TAVA or its subcontractors. {Client Files/4957/i/KJSO405920.DOCX}Page 5 of 12 2021-02-16 Agenda Packet lege 144 of 395 D. COi IPLIANCE NN ITH LAWS OR REGULATIONS. TAVA agrees it shall comply with all local, state, and federal laws or regulations in the performance of this Agreement. Should a federal or state law pre-empt a local law, or regulation, TAVA shall comply with the federal or state law and implementing regulations. No provision of this Agreement requires TAVA to observe or enforce compliance with any provision, perform any other act, or do any other thing in contravention of federal, state, territorial, or local law, regulation, or ordinance. If compliance with any provision of this Agreement violates or would require the TAVA to violate any law or regulation, then TAVA agrees to notify City immediately in writing. Should this occur, the City and TAVA agree that they will make appropriate arrangements to proceed with or, if necessary, amend or terminate this Agreement, or portions of it, expeditiously. TAVA agrees to take appropriate measures necessary to ensure that participants utilized by TAVA to complete its obligations under this Agreement, such as subcontractors, comply with applicable laws, regulations, ordinances, and policies, whether federal, state, or local, affecting Project implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of TAVA under this Agreement, TAVA shall ensure that the subcontractor carries out the TAVA's responsibilities as set forth in this Agreement. The use of participants by TAVA to fulfill the terms of the Agreement does not in any form relieve TAVA of its obligations under this Agreement. E. TAVA INSURANCE REQUIREMENTS. TAVA agrees that it shall acquire and maintain insurance as set forth in Exhibit C by the effective date of this Agreement or as otherwise required by the City. The City may, by written notice, change the insurance requirements in its sole and reasonable discretion and TAVA agrees to acquire and maintain such insurance as requested by the City. F. TAVA FUNDING. The TAVA is entering into this Agreement based on an understanding that the City will continue to contribute fiscally to the annual special assessment obligations derived from the Property Based Improvement District (PBID) established on July 2001 and renewed in July 2006. Should the City cease to contribute fiscally (at the level of contribution as of the date of this Agreement or any subsequent increases approved by the Board of Directors) or the PBLD be dissolved by the majority of the property owners, as prescribed under the Property and Business Improvement District Law of 1994, TAVA shall have the right to terminate this Agreement. Annually, TAVA shall review the maintenance operations of Third Avenue to determine efficiencies, effectiveness, contracts and other aspects of the maintenance to allocate the appropriate PBID funding for such services to be rendered under this Agreement. ARTICLE I1. CITY OBLIGATIONS A. THIRD AVENUE STREETSCAPE MASTER PLAN (TASivIP). The TASMP will be constructed in phases. Accordingly, should the City elect not to complete the TASMP, then TAVA shall solely be required to perform the maintenance services under the terms and conditions of the Agreement for Enhancements that have been completed by the City. B. COOPERATION-MAINTENA�`TCE SERVICES. The City will be responsible to operate, maintain and repair the following features to a basic level of service provided citywide: {Client Files/4957/1/K/SO405920.DOCX}Page 6 of 12 2021-02-16 Agenda Packet lege 145 of 395 I . Streets (including on street parking areas) from the face of curb to the face of curb (or theoretical face of curb in the plaza area) 2. Pavement markings and striping 3. Bollards 4. Regular street signs 3. Traffic signals v 6. Street and Pedestrian Lighting including the calculated electrical power 7. Palm trees in the median S. Storm water devices including but not limited to "filterras" (excluding landscape type features) 9. Auxiliary electrical power system (use of the system will be a separate cost and require a separate agreement/permit) 10. The City will maintain a street sweeping contract, to the extent funding is available, for weekly service for Third Avenue and associated streets within the Village, which includes the Maintenance Area, set forth in Exhibit A 11. The City shall report any repairs or new construction to TAVA staff prior to proceeding to coordinate information, schedule and notification to business within the Village 12. Replacement of dead/dying street trees ARTICLE III. INDEMNIFICATION A. NIUTUAL INDEMNIFICATION. The parties agree to mutual indemnification as set forth in this Article. 1. TAVA shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, agents and employees, from and against any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of TAVA, its officials, officers, employees, agents, consultants, and contractors, arising out of or in connection with the performance of TAVA's maintenance responsibilities in the "Maintenance Area," or this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees or claims for injury or damages are caused by or the result from the negligent or intentional acts or omissions of TAVA, its officials, officers, employees, agents, consultants, and/or contractors. The aforementioned proportional liability shall be determined by agreement of the parties, by arbitration (if arbitration has been agreed upon by the parties), or by a court of competent jurisdiction. 2. The City shall defend, indemnify, protect and hold harmless TAVA, its officers, agents and employees, from and against any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of the City, its officials, officers, employees, agents, consultants, and contractors, arising out of or in connection with the performance of the City's maintenance responsibilities in the "Maintenance Area," or this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees or claims for injury or damages are caused by or the result from the negligent or intentional acts or omissions of the City, its officials, officers, employees, agents, consultants, and/or (Client Files/4957/l/K/SO405920.DOCX}Page 7 of 12 2021-02-16 Agenda Packet lege 146 of 395 contractors. The aforementioned proportional liability shall be determined by agreement of the parties, by arbitration (if arbitration has been agreed upon by the parties), or by a court of competent jurisdiction. B. COST OF DEFENSE AND AWARD. Upon receipt of an action or claim against the City or TAVA or both arising under either Party's acts or omissions as a result of this Agreement, TAVA and/or the City shall tender the action or claim to TAVA's insurance carrier for the defense against such claim. Should the tender for defense be denied by the insurance carrier, each party shall then bear their own defense costs (including reasonable attorney's fees), subject to reimbursement based in proportion to and to the extent of the parties respective liability, as provided for in Sections A.1 and A.2 of this Article, at the conclusion of the matter. If the City or TAVA bear their own defense costs as set forth above, neither the City nor TAVA waive any rights or remedies they may have against the insurance carrier to require them to pay all defense costs, including attorney's fees. The Parties shall also pay and satisfy any judgment, award or decree that may be rendered against them or their directors, officials, officers, employees, agents and/or volunteers, subject to the limitations in Sections A.1 and A.2. The aforementioned proportional liability shall be determined by agreement of the parties, by arbitration (if arbitration has been agreed upon by the parties), or by a court of competent jurisdiction. C. ADDITIONAL TERIMS. The parties also agree to the following: I. Insurance Proceeds. Each Party's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by them, their directors, officials, officers, employees, agents, and/or volunteers. 2. Declarations. Each Party's obligations under this Article shall not be limited by any prior or subsequent declaration by them. 3. Enforcement Costs. Each Party agrees to pay any and all costs incurred by the other party enforcing the indemnity and defense provisions set forth in this Article if the other party is successful in enforcing such indemnity and defense provisions. 4. Survival. Each Party's obligations under this Article shall survive the termination of this Agreement. ARTICLE N. TERMINATION OF AGREEMENT A. TERIMINATION FOR CAUSE. If, through any cause, TAVA shall fail to fulfill in a timely and proper manner TAVA's obligations under this Agreement, or if TAVA shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to TAVA of such termination, which includes the specific alleged cause or causes, and specifying the effective date thereof at least thirty (30) days before the effective date of such termination ("Termination Notice"). TAVA shall have the ability to cure such cause or causes or, if a cure is not possible within thirty (30) days, to begin such cure and diligently prosecute such cure to completion which in any event shall not exceed ninety (90) days after the receipt of such Termination Notice. TAVA hereby expressly waives any and all claims for damages or compensation as a result of termination of this Agreement. B. TERMINATION OF AGREEMENT FOR CONVENIENCE OF CITY. City may terminate this Agreement at any time and for any reason, by giving specific written notice to TAVA {Client Files/4957/l/K/SO405920.DOCX}Page 8 of 12 2021-02-16 Agenda Packet lege 147 of 395 of such termination and specifying the effective date thereof, at least sixty (60) days before the effective date of such termination. TAVA hereby expressly waives any and all claims for damages or compensation as a result of termination of this Agreement. ARTICLE V. MISCELLANEOUS PROVISIONS A. AGREEiMENT REVIEW. Both parties agree to meet and confer from time to time to identify changes in site conditions, problems with the maintenance services and/or the need to modify the Agreement to address same. Minor changes to the Agreement may be made at any time in writing upon mutual agreement of all parties. In addition, each of the parties may call for a meeting to discuss concerns, support, and ideas on how to make the maintenance services more successful and efficient in subsequent years. B. COi<IMUNICATIONS AND COORDINATION REPRESENTATIVES. To provide for consistent and effective communication, both parties will appoint a principal and secondary representative to serve as its central point of contact on matters relating to this Agreement and/or the level of maintenance services in question. The principal representatives for this Agreement are listed below as follows: For TAVA: Executive Director (619)422-1982 TAVA Board President 353 Third Avenue Chula Vista, CA 91910 For City: William Valle, Assistant Director of Engineering (619) 409-5976 276 Fourth Avenue Chula Vista, CA 91910 C. TERM. The term of the Agreement shall commence on the Effective Date and shall expire on December 31, 2026, unless otherwise terminated at an earlier date. Notwithstanding the foregoing, the parties may elect to extend the Agreement by mutual written agreement for an additional period coinciding with a PBM extension of the parties. D. EFFECTIVE DATE. The terms and conditions of this Agreement shall be effective as of the date this Agreement is signed by all parties on the Signature Page. E. ASSIGNABILITY. The services of TAVA are personal to the City, and TAVA shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. Client Files/4957/1/K/SO405920.DOCX)Page 9 of 12 2021-02-16 Agenda Packet lege 148 of 395 1. Limited Consent. City hereby provides limited consent that TAVA may assign the performance of the aforementioned "Maintenance Services" to sub -contractors, subject to City approval. F. INDEPENDENT CONTRACTOR. City is interested only in the results obtained and TAVA shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept TAVA's Maintenance Services, including their quality. TAVA and any of the TAVA's agents, employees or representatives are, for all purposes under this Agreement, independent contractors and shall not be deemed to be employees of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and TAVA shall be solely responsible for the payment of same and shall hold the City harmless with regard to them. 1. Actions on Behalf of City. Except as City may specify in writing, TAVA shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever, as an agent or otherwise. TAVA shall have no authority, express or implied, to bind City or its members, agents, or employees, to any obligation whatsoever, unless expressly provided in this Agreement. 2. No Obligations to Third Parties. In connection with this Agreement, TAVA agrees and shall require that its agents, employees, subcontractors agree that City shall not be responsible for any obligations or liabilities to any third party, including its agents, employees, subcontractors, or other person or entity that is not a parry to this Agreement. Notwithstanding that City may have concurred in or approved any solicitation, sub agreement, or third party contract at any tier, City shall have no obligation or liability to any person or entity not a party to this Agreement. G. ADMINISTRATIVE CLAINIS REQUIREMENTS AND PROCEDURES. No suit or arbitration shall be brought arising out of this Agreement, against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by City in the implementation of same. Upon request by City, TAVA shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 1. NOTICES. Notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. Notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement as the places of business for each of the designated parties. {Client Files/4957/1/K/SO405920.DOC X}Page 10 of 12 2021-02-16 Agenda Packet lege 149 of 395 J. INTEGRATION. This Agreement, together with any other written document referred to or contemplated in it, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision of it may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. K. CAPACITY OF PARTIES. Each signatory and party to this Agreement warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all necessary resolutions or other actions have been taken so as to enable it to enter into this Aueement. L. GOVERNING LAWNENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance under it, shall be the City of Chula Vista. [NEXT PAGE IS SIGNATURE PAGE] {Client Files/4957/l/K/SO405920.DOCX}Page 11 of 12 2021-02-16 Agenda Packet lege 150 of 395 SIGNATURE PAGE TO THIRD AVENUE VILLAGE AGREEMENT AND ENCROACHMENT PERMIT FOR MAINTENANCE SERVICES BETWEEN THE CITY OF CHULA VISTA AND THE THIRD AVENUE VILLAGE ASSOCIATION 1N WITNESS WHEREOF, City and TAVA have executed this Agreement indicating that they have read and understood same, and indicate their full and complete consent to its terms: For Third Avenue Village Association (TA VA): Date: PA S, Boar es] ent, Third Avenue Village Association TROTTER, Secretary, Third Avenue Village Association For the City of Chula Vista: M CASELLAS SALAS, Mayor, City of Chula Vista Approved as to form: LEN R1GOO S, Atto ey, ty of la ista ATTEST: DONNA R. NORR S, GMC City Clerk {Client Files/4957/l/K/SO405920.DOCX}Page 12 of 12 Date: ('-5� ) `"C CG Date:6h6� 2021-02-16 Agenda Picket Page 151 of 395 I Exhibit "A"Limits ofMaintenance Sen--iceArea Propasec BouWa for Ine Ov.mo ChLft VWS PBO -ru AV EiffiarAMt Servicrs 0.1, vmDona"ry Dovmtown Chula Vista. 2021-02-16 Agenda Packet Page 152 of 395 ,�,� I•,•.I �i- � ;, ;.ill ' + ="n 5a� __ �1 j:�•,I � f `��f M i _I� � nT_ jf-I ' E i c t"csGS? _�_--- ��)-' Ili �.I ^_____. I. ' i It ``e £i � ■€ �'t- `S fit;=; I •• I l i t� �I K I� __ 11 i, l-iF I I I_ 1F• _ '� BVI [[ E I '11• _ ar �� I ° 15 17_31 5 r {k��{ 5 113435002 ` z 7 v ii •'�'� €� � I � �� I 2� v =gig �y 9t cL� I i4 -'sem g - i� v<- - a It z'[€ -`-!ilii fit Inai S j1 a r t j;I I tILI i.� ssJiii IJ L"CI ( I III 'b ;6! 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Wit'' � • 6 � - _ �, � ,!Y� S �•� ZS et;E its e Vint 2021-02-16 Agenda Packet Page 154 of 395 J 1021-02-16 Agenda Packet Page 155 of 395 - 23-::s a3s F f{i1�-•- r Q _t Ll .L J 1021-02-16 Agenda Packet Page 155 of 395 r Q _t Ll `x J 1021-02-16 Agenda Packet Page 155 of 395 EXHIBIT C A. INSURANCE. TAVA agrees to abide by the folloNving insurance requirements: General. TAVA must procure and maintain, during the period of performance of this Agreement. and for t-welve months after completion. policies of insurance from insurance companies to protect against claims for injuries to persons or damages to property that max, arise from or in connection Nyith the performance of the work under this Agreement and the results of that %cork bN, the TAVA. his agents, representatives. employees or subcontractors. and provide documentation of same prior to commencement of .work. 2. Minimum Scope of Insurance. Coverage must be at least as broad as: a. CGL. Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001). a. Auto. Insurance Services Office Form 'Number CA 0001 covering Automobile Liability, Code I (any auto). b. J C. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. c. E& O. Professional Liability or Errors & Omissions Liability insurance appropriate to the TAVA's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. 3. Minimum Limits of Insurance. TAVA must maintain limits no less than those included in the table below: i. General Liability: 51,000,000 per occurrence for bodily injury, personal (Including injury, (including death), and property damage. If operations, Commercial General Liability insurance with a general products and aggregate limit is used_ either the general aggregate limit completed must apply separately to this Project/location or the operations, as general aggregate limit must be t.vice the required applicable) occurrence limit. ii. Automobile 51,000.000 per accident for bodily injury, including death, Liability: and property damage. iii. Workers' Statutory Compensation 51.000.000 each accident Employer -'s 51.000.000 disease -police limit Liability: $1.000.000 disease -each employee. 2021-02-16 Agenda Packet Page 156 of 395 iv. Professional $1.000,000 each occurrence Liability or - Errors & Omissions Liability: If TAVA maintains higher limits than the minimums shown above. the City requires and shall be entitled to coverage for the higher limits maintained by TAVA. 4. Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City. either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or TAVA will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration; and defense expenses. 5. Other Insurance Provisions. The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: a. Additional Insureds. City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to all policies of insurance, including those with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of TAVA, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of TAVA, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to TAVA's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. b. Primary Insurance. TAVA's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials. employees. agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers. officials, employees; or volunteers is .wholly separate from the insurance of TAVA and in no way relieves TAVA from its responsibility to provide insurance. c. Cancellation. The insurance policies required by this Agreement shall not be canceled by either party, except after thirty days' prior written notice to the City by certified mail, return receipt requested. The words "xvill endeavor" and "but failure to mail such notice shall impose no obligation 2021-02-16 Agenda Packet Mage 157 of 395 or liability of any hind upon the company, its agents, or representatives" shall be deleted from all certificates. d. Active Negligence. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insureds in anv case v here an agreement to indemnify the additional insured .would be invalid under Subdivision (b) of Section 2782 of the Civil Code. e. 11 giver of Subrogation. TAVA's insurer -will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. 6. Claims Forms. If General Liability. Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims -made form: a. Retro Date. The "Retro Date" must be shown. and must be before the date of the Agreement or the beginning of the work required by the Agreement. b. Maintenance and Evidence. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the work required by the Agreement. c. Cancellation. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a 'Retro Date" prior to the effective date of the Agreement. TAVA must purchase "extended reporting" coverage for a minimum of five years after completion of the work required by the Agreement. d. Copies. A copy of the claims reporting requirements must be submitted to the Cats for review. 7. Acceptability of Insurers. Insurance is to be placed with licensed insurers admitted to transact business in the State of Califomia with a current A.M. Best's rating of no less than A V. if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund .when not specifically rated. 2021-02-16 Agenda Packet lege 158 of 395 8. Verification of Coverage. TAVA shall furnish the City with original certificates and amendatory endorsements effecting coverage required by Section I.C. of this Agreement. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the requirements of this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time; complete. certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 9. Subcontractors. TAVA must include all subcontractors as insureds under its policies or furnish separate certificates and endorsements for each subcontractor All coverage for subcontractors is subject to all of the requirements included in these specifications. 10. Not a Limitation of Other Obligations. Insurance provisions under this Article shall not be construed to limit TAVA's obligations under this Agreement, including Indemnity. 2021-02-16 Agenda Packet gage 159 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 20-0550 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CF ULA VISTA APPROVING A JOINT USE AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE CITY OF CHULA VISTA FOR THE COLOCATION OF AN EXISTING CITY OF SAN DIEGO SOUTH METRO INTERCEPTOR SEWER PIPELINE IN A SEGMENT OF E STREET 1? 17CO M M 1.N 1) 1.J) A, ("I'l 0 N Council adopt the resolution. SUMMARY The proposed joint Use Agreement between the City of San Diego and the City of Chula Vista is for the coloration of the City of San Diego's existing 78 -inch San Diego South Metro Interceptor Sewer Pipeline located in the extension of E Street in the City of Chula Vista. 'The E Street extension was constructed as part of the Costa Vista RV Park Resort development in the City of Chula Vista Bayfront planning area. 'The agreement sets forth both Cities' respective rights and obligations for the construction, operation, and maintenance of their respective facilities within the joint Use Area as depicted in Exhibit B of the joint Use Agreement (Attachment 2). I UE JI�v �� EW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defined under Section 15378 of the state CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subjectto CEQA. Although environmental review is not required atthis time, once the scope of potential project(s) has been defined, environmental review will be required for each project and the appropriate environmental determination will be made. In addition, 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. Not applicable. DISCUSSION The City of San Diego is engaged in the activity of conveying wastewater to the environs of the City of San Diego. The City of San Diego owns, operates, and maintains the existing 78 -inch San Diego South Metro Interceptor Sewer Pipeline commonly known as San Diego South Metro Interceptor ("SDSMI"), located within an existing City of San Diego easement and within a new segment of E Street between Bay Blvd and I- v 0 0 1 P � (:, 11 2021-02-16 Agenda Packet Page 160 of 395 S Interchange to be constructed as part of the Bayfront RV Resort development Project. No realignment of the existing SDSMI trunk sewer is required. Sun Communities, Inc. is the developer of the Costa Vista RV Park Resort development. Sun Communities wishes to develop the project as approved on September 18, 2019 pursuant to the San Diego Unified Port District Coastal Development Permit, Document No. 70332, which includes constructing the E Street Segment. As a condition of approval, Sun Communities is required to construct the Street Segment, E Street, over the Easement as described on Exhibit "A" and depicted on Exhibit "B", of the joint Use Agreement (Attachment 2). Sun Communities has constructed, and Chula Vista will operate and maintain the Street Segment, E Street, a future public transportation facility and related improvements. The Street Segment, E Street includes but is not limited to: landscape, sewer and storm drain pipelines and appurtenances; traffic signals and signal interconnections; along with other improvements located in, upon, over, under and across the Street Segment. The City of San Diego's Public Utilities Department will continue to operate and maintain the SDSMI and associated facilities and appurtenances for such purpose, under and across the Street Segment. The intent of the joint Use Agreement is to set forth both Cities' respective rights and obligations for the construction, operation and maintenance of their respective facilities within the joint Use Area. CON171,11(`T Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property- related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov't Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. 1711SCAI. IIMI�IAC'T All costs associated with the negotiation and preparation of the proposed Agreement are borne by the developer, resulting in no net fiscal impact to the General Fund or the Development Services Fund. ONGOING 1711SCAI. IIMI�IAC'T Maintenance costs of the Street Segment will be the responsibility of the City of Chula Vista. Maintenance costs of the existing 78 -inch San Diego South Metro Interceptor Sewer Pipeline will be the sole responsibly of the City San Diego. ATTACHMENTS Attachment No. 1: Location Map P ;,,, e 12 2021-02-16 Agenda Packet Page 161 of 395 Attachment No. 2: joint Use Agreement Staff Contact; Boushra Salem, Principal Civil Engineer, Development Services department 3 2021-02-16 Agenda Packet Page 162 of 395 RESOL[YrION NO, RESOL[YrION OF FHE ary COUNCIL OF 'FHE ary OF CHULA vis,FA APPROVING A JOINT USE AGiREEMEN'r BE,rWEEN 'FHE ary OF SAN DIEGO AND 'FHE ary OF CHULA vis,FA FOR THE COLOCA,rION OF AN EXis,I-INGi ary OF SAN DIEGO soum ME,FRO IN,rERCEP,rOR SEWER PIPELINE IN A SEGiMEN'r OF E s,rREE'r WHEREAS, the City of San Diego is engaged in the activity of conveying wastewater to the environs of the City of San Diego, State of California; and WHEREAS, the City of San Diego owns, operates, and maintains the existing 78 --inch San Diego South Metro Interceptor Sewer Pipeline, commonly known as San Diego South Metro Interceptor ("SDSMI"), located, in part, within a new segment of E Street between Bay Blvd and 1-5 Interchange as part of the Costa Vista RV Resort development project; and WHEREAS, Sun Communities, Inc. (Sun) is the developer of the Costa Vista RV Park Resort development and Sun wishes to develop the project as approved on September l 8, 2019 pursuant to the San Diego Unified Port District Coastal Development Pen -nit, Document No. 70332, which includes construction of the E Street segment; and WHEREAS, Sun has substantially constructed the E Street segment over the City of San Diego easement described on Exhibit "A" and depicted on Exhibit "B" of the Joint Use Agreement (Attachment 2); and WHEREAS, Chula Vista will operate and maintain the E Street segment, and related facilities, as a public transportation facility; and WHEREAS, City of San Diego's Public Utilities Department will continue to operate and maintain the SDSMI and associated facilities and appurtenances for such purpose, under and across this segment of E Street; and WHEREAS, the proposed Joint Use Agreement between the parties is intended to set forth each party's respective rights and obligations for the construction, operation, and maintenance of their respective facilities within the Joint Use Area, NOW, 'III EREFORE, BE i,r RESOLVED by the City Council of the City of Chula Vista that it approves the Joint Use Agreement By and Between the City of Chula Vista and the City of San Diego (E Street and Bay Boulevard), in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on File in the Office of the City Clerk, and authorizes the City Manager or designee to execute the agreement, 2021-02-16 Agenda Packet Page 163 of 395 Resolution No. Page 2 'riffany Allen Director of Development Services Approved as to form by Glen \,Q00 gins City Attorney 2021-02-16 Agenda Packet Page 16 of 395 m 'AL,H'ID DDEAN NAl"'IIill/ Nlei. II, C'YllY a "D C11 11 U 11, A 3> VIIS-FA tlH S IMPERIAL JBEACTI SAN DIIIE(;O 1� MEXICO m 2021-02-16 Agenda Packet Page 165 of 395 Recording Requesled y and When Recorded Relurn lo. City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, CA 9 l 9 l 0 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Above Space for Recorder's Use Only CCV File No.: 0710.-45.-PC2562 JOINT USE AGREEMENT BY AND BETWEEN THE CITY OF (HULA VISTA AND THE CITY OF SAN DIEGO E Street and Bay Boulevard 'This JOINT USE AGREEMEN'r ("Agreement"") is made this _ _ _ day of ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ...... 1 20 _ _ , by and between the ary OF CHULA vis,FA, a California municipal corporation ("CV"), and,FHE ary OF SAN DIE(10, a California municipal corporation ("SD") (individually referred to as the "Party" and collectively as the "Parties") and is made with reference to the following facts: RECITALS A4 WHEREAS, SD is engaged in the activity of conveying wastewater to the environs of the City of San Diego, State of California; 134 WHEREAS, the existing SD sewer rnam pipeline commonly known as the San Diego South Metro Interceptor Pipeline, owned and operated by SD, is located within an existing SD easement ("SD Easement"), a portion of which is within a new segment of E Street to be constructed within the development commonly known as Bayfront RV Park Resort ("RV Park") for which CV has condemned an easement (CV Easement), as described in the attached Exhibit A and shown on the attached Exhibits B and C; City (�f.�an Diego / City (�I'Chula Vista -J(IA E.Weel and Bay BNd 2021-02-16 Agenda Packet Page 166 of 395 C4 WHEREAS, the new segment of E Street is a proposed public road to be located within the jurisdictional boundaries of CV, between 1-5 and Bay Blvd, as described in the attached Exhibit A and shown on the attached Exhibits B and C; DA WHEREAS, CV has Cited an emment domain action in San Diego Superior Court, entitled Ci(?f Chl � � y ula Visla v. S' an Diego Gas & E'learic (Yoml)atCy et at, Superior Court Case No. 37.-2019.-00067033.-C[J.-Ei.-c,ri- ("Condemnation Action"), against San Diego Gas & Electric ("SDG&E") and SD in order to condemn property rights, namely the CV Easement, to allow it to construct and maintain the new street segment of E Street, subject to SD's easement rights of record for the SD Easement; EWHEREAS, on or about January 16, 2020, CV took possession of the proposed CV Easement area via an Order of the Superior Court issued pursuant to Code of Civil Procedure sections 1255,410 and 1255,460 in order to allow CV to commence construction activities in furtherance of the CV's easement rights; FA WHEREAS, the Condemnation Action was resolved through a Stipulation for Settlement and Entry of Stipulated Judgment and Order of Condemnation, and the Stipulated Judgment and Final Order of Condemnation were signed by Judge Frazier on December 3I, 2020; GWHEREAS, Sun Communities, Inc. ("Sun Communities"), the developer of the RV Park project, wishes to develop the RV Park project as approved on September 18, 2019 pursuant to the San Diego Unified Port District Coastal Development Pen -nit, Document No. 70332, which includes constructing the new street segment of E Street in the CV Easement; K WHEREAS, as a condition of the approval of the RV Parkproject, Sun Communities is required to construct the new street segment over the SD Easement and CV Easement . 'rhe area where the new street segment is within both the SD Easement and the CV Easement, as described on Exhibit A and depicted in Exhibits B and C, is referred to herein as "Joint Use Area"; L WHEREAS, Sun Communities desires to construct, and CV desires to operate and maintain the new street segment of E Street, a future public transportation facility, and related improvements, including but not limited to: landscape, sewer and storm drain pipelines and appurtenances; traffic signals and signal interconnections; along with other improvements located in, upon, over, under and across the Joint Use Area; JA WHEREAS, SD is willing to allow the construction of the new street segment over SD's Easement and will thereafter operate and maintain the San Diego South Metro Interceptor Pipeline and associated facilities and appurtenances for such purpose, under and across the to be constructed street segment; I City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 167 of 395 KA WHEREAS, Sun Communities will construct the new street segment within the Joint Use Area; and I_ WHEREAS, CV and SD desire to set forth their respective rights and obligations in the event of actual or potential present or future conflicts in the construction, operation, or maintenance of their respective facilities within the Joint Use Area, NOW, rHEREFORE, for valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the Parties hereby agree as follows: I . Non -Interruption of Use or Operation of Facilities. Each Party agrees and covenants not to interrupt the use or operation of the other Party's facilities located within that Joint Use Area, Any temporary interference by one Party with the use or operation of the other Party's facilities shall be made only with the other Party's prior written consent. SD specifically agrees, except as provided in paragraph 9 below, that during any temporary interference it will, as practical, neither cause any lane of CV's roadways to be closed for the entire length of such roads nor cause the flow of traffic to be reduced to less than two lanes on such roads, 'rhe Parties agree and covenant to work in good faith with the other Party to pennit such temporary interference, and the Party whose facilities are being interfered with shall not unreasonably withhold its consent to such interference. Any and all costs, expenses or losses incurred by the Party whose facilities are interfered with shall be borne by the Party causing the interference, 1 Future Relocation of Facilities. In the event that future construction (including expansion), operation or maintenance of CV's facilities located within the Joint Use Area shall cause the need for relocation of some or all of SD's facilities, CV shall bear all costs, expenses and losses of or resulting from the relocation. Any relocation shall not occur without the prior written consent of SD, which consent shall not be unreasonably withheld, 1 Effective Date, 'rhe effective date of this Agreement shall be the date this Agreement is recorded with the San Diego County Recorder's Office. 4. Agreement Binding Upon Successors. 'This Agreement shall be binding upon and inure to the benefit of the representatives, agents, successors, assigns and interests of the Parties as to any or all of the Joint Use Area, until released by the mutual consent of the Parties, 5. Agreement Runs with the Land. 'rhe covenants and ten -ns contained in this Agreement shall create equitable servitudes on the property described in Exhibit A and shown in Exhibit B. If such covenants are breached, each Party shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which either Party may be entitled, I City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 168 of 395 6. Termination of Use. In the event that SD permanently terminates the use of the Joint Use Area for the purposes set forth herein, SD shall: (i) abandon all facilities within the Joint Use Area in accordance with best practices and in a manner that does not and will not cause damage to CV's facilities within the Joint Use Area, and (ii) vacate its Easement in accordance with its easement vacation process, Upon SD's vacation of the Easement, this Agreement shall terminate and CV shall have no further obligations under this Agreement. For purposes of interpreting this Agreement, the term "permanently terminates" shall mean a willful termination of the use as evidenced by written action or document of either the governing body or official or employee possessing appropriate authority of SD, T Written Consent for Construction or Placement of Structures. No Party shall place or construct, or permit the placement or construction of, any new structures, temporary or permanent, on the Joint Use Area, without the prior written consent of the other Party. Notwithstanding the foregoing, SD acknowledges and agrees that CV shall not be required to obtain prior written consent to conduct routine maintenance or repairs of pavement, streets, curbs, gutters, sidewalks, light and sign posts, landscaping, dry utilities, wet utilities, or traffic signals on or within the Joint Use Area, Notwithstanding anything to the contrary herein, CV shall not perform or cause to be performed any construction activities involving the use of heavy vehicles, machinery or equipment (such as an excavator or crane), or install or cause to be installed any improvements (other than those improvements which are replacing or repairing existing improvements with like improvements, for example, replacing or repairing existing sidewalk, pavement, or street light) within SD's easement without the prior written consent from SD 8. Emergency Repairs. Notwithstanding any contrary provision of paragraph l hereinabove, in the event of damage caused by an act of God, war, or other casualty, or damage caused under circumstances where it would be impractical or impossible for one Party to notify the other Party of the necessity for temporary interference with the other Party's facilities, the Party creating the temporary interference may, without notice, enter upon the Joint Use Area and make emergency repairs to restore its service, 'rhe Party creating the temporary interference shall, however, take reasonable and prudent measures at its sole cost to protect the installations and facilities of the other Party and to minimize such interference. If a Party determines that it will make emergency repairs in accordance with this section, that Party will make all reasonable efforts to notify the other Party prior to commencing construction activities. If the Party making emergency repairs in accordance with this section causes damage to any installation or facility of the other Party, the Party causing the damage shall: (i) immediately notify the other Party of such damage and (ii) bear all costs to repair or replace all such damaged installations and facilities, 9. Mutual Indemnification. SD and CV agree that, except as provided in Paragraphs 12.e, l 1 f, and 12.g herein, each shall indemnify and hold the other harmless from and against liability, loss, cost, damage and expense arising from (i) any negligent act or 4 Oy (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 169 of 395 omission of the other Party or its employees, agents, contractors, successors or assigns or (ii) the location and existence of the other Party's above-described facilities, whether defective or otherwise, including, but not limited to, any such loss, cost, damage, liability, or expense arising from damage to or destruction of real and personal property or injury to or death of any person, shall be determined by the law in effect at the time of incident giving rise to such liability, loss, costs, damages or expense; provided, however, that liability and indemnification obligations shall not be limited in any way by any limitation on the amount or type of damages, compensation of benefits payable by or for the other under any Worker's Compensation Acts, Disability Benefit Acts or other Employee Benefit Acts, Liability to a third party(ies) shall be divided between SD and CV in proportion to the measure of SD and CV's respective liability. Notwithstanding the foregoing, each Party shall hold harmless the other against damage to or destruction of the indemnitor's facilities caused by an act(s) of a third party(ies). M Counterparts. 'This Agreement may be executed in any number of counterparts, each of which shall be original and all of which shall constitute one and the same documents, l l . Recording. 'rhe Parties hereto shall cause this Agreement to be recorded in the Official Records of the San Diego County Recorder's Office. 11 Miscellaneous Provisions. 12, a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either Party shall be in writing and shall be deemed duty served, delivered, and received when personally delivered to the Party to whom it is direct, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.S. mail, certified or prepaid, addressed to the address indicated in this Agreement, A Party may change such address for the purpose of this paragraph by giving written notice of such change to the other Party in the manner provided in this paragraph, ary OF CHULA vis,FA Development Services Department/Land Development Section 276 Fourth Avenue, Building B Chula Vista, CA 9l 9l 0 Attn: City Engineer ary OF SAN DIEGO Public Utilities Director 9192 'ropaz Way San Diego, CA 921 23.-1 l l 9 I City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 170 of 395 ary OF SAN DIEGO Attention: Director, Real Estate Assets Department 1200 'Third Avenue, Suite I700 (MS 5 l A) San Diego, CA 92 l 0 l I2,b, Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms, I2,c, Entire Agreement. 'This Agreement together with any other written documents referred to herein, embody the entire agreement and understanding between the Parties regarding the subject matter hereof and any and all prior or contemporaneous oral or written representations, agreements, understandings, and/or statements shall be of no force and effect, 'This Agreement is not intended to supersede or amend any other agreement between the Parties unless expressly noted, l 2.d. Recitals, Exhibits. Any recitals set forth above and any attached exhibits are incorporated by reference into this Agreement, l 2.e. Compliance with Laws. Each Party agrees to comply with all applicable laws, ordinances, governmental regulations or agreements, regarding the habitat, protected species, water quality, solid wastes, hazardous wastes, hazardous materials, toxic substances, and any and all other fon-ns of pollution or nuisance control (herein collectively referred to as ("Standards"). 12.f. Mutual Indemnification for Abating Violation of Standards by Other Party. Each Party shall indemnify the other Party for all costs (including, but not limited to consulting, engineering, mitigation, clean-up, containment, disposal, and legal costs) incurred by the other Party as a result of abating a violation of Standards in any proceeding before any authority or court, and paying any Fines or penalties imposed because of a violation of any Standards, which result from a Party failing to comply with the Standards, l 2.g. Mutual Hold Harmless by and between SD and CV. SD and CV hereby assumes liability for, and shall indemnify and hold harmless the other from any suit, enforcement action, or claim resulting from or relating to (I) any alleged violation of Standards, or (2) all injuries to or death of any persons and loss of or damages to property, including without limitation, employees and property of the other, and which relate to any alleged violation of Standards which would not have arisen but for the actions, or inactions, of the other, I City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 171 of 395 I 2,h, Authority of Signatories. Each signatory and Party hereto hereby warrants and represents to the other Party that it has legal authority and capacity and direction froi-n its principal to enter into this Agreeinent, and that all resolutions and/or other actions have been taken so as to enable said signatory to enter into this Agreei-nent, 12JModification. 'This Agreei-nent may not be i-nodified, terminated, or rescinded, in whole or in part, except by written instrui-nent duty executed and acknowledged by the Parties hereto, their successors, or assigns and duty recorded in the Office of the San Diego County Recorder, I 2j . Severability. If any ten -n, covenant or condition of this Agreei-nent or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreeinent, or the application of such ten -n, covenant, or condition to person or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each tem, covenant, or condition shall be valid and be enforced to the fullest extent permitted by law, 121, Preparation of Agreement. No inference, assui-nption orpresui-nption shall be drawn froom the fact that a Party or its attorney prepared and/or drafted this Agreei-nent, It shall be conclusively presumed that both Parties participated equally in the preparation and/or drafting this Agreei-nent, INE'A-ITAGE ISSIGNA JUI�E J)A GE'l 7 City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 172 of 395 SIGNATURE PAGE TO JOINT USE AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND THE CITY OF SAN DIEGO IN wi,rNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year First hereinabove set forth, CITY OF (.:;HULA VISTA By: ---------------- -- Maria V. Kachadoorian, City Manager Imm By: ---------------- ---- Kerry Bigelow, City Clerk Approved as to form: By: ............. Chen R. Googins City Attorney am CITY OF SAN DIEGO 0 Shauna Lorance Director, Public Utilities no m Cybele L. Thompson Director, Real Estate Assets no Approved as to form: MARA W. ELLJo'rT City Attorney By: ................ Hilda Mendoza Deputy City Attorney List of Exhibits: I) Exhibit "A" Legal Description Joint Use Area 2) Exhibit "B" Plat Depiction Joint Use Area 8 City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay BNd 2021-02-16 Agenda Packet Page 173 of 395 3) Exhibit "C" --- Bayfront RV Park/City of San Diego Drawing 41522.-17 I City (�I'San Diego / City (�I'Chula Vista -JUA E Street and Bay Blvd 2021-02-16 Agenda Packet Page 174 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 21-0029 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CF ULA VISTA (1) RESCINDING CITY COUNCIL RESOLUTION NO. 2021-001 AND CANCELLING THE AWARD OF THE CONTRACT FOR THE "MAJOR PAVEMENT REHABILITATION FY 2018/2019 (STM0397)" PROJECT TO FRANKAND SON PAVING, INC. AND (2) AWARDING THE PROJECT CONTRACT TO THE NEXT APPARENT LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, HAZARD CONSTRUCTION COMPANY, IN THE AMOUNT OF $2,082,419.70 1? 17CO M M 1.N 1) 1.J) A, ("I'l 0 N Council adopt the resolution. SUMMARY On January 5, 2021, the City Council adopted Resolution No. 2021-001 awarding the "Major Pavement Rehabilitation FY 2018/2019" (STM0397) project (Project) contract to Frank and Son Paving, Inc. in the amount of $2,044,644.72. On January 7, 7071, City staff issued a Notice of Award toFrank and Son Paving, Inc. notifying it of the Project award and the 10 -day requirement to send the required Bond for Material and Labor, Bond for Faithful Performance, Certificates of Insurance, Guarantee, Non -Collusion Affidavit, and Worker's Compensation Insurance Declaration, with a due date of January 22, 2021. On January 21, 2021, upon receipt of a request from Frank and Son Paving, Inc., City staff granted a one-week extension, until January 29, 2021, to complete and provide the required bonds for the Project. Frank and Son Paving, Inc. did not complete and provide the required bonds by that date. Due to Frank and Son Paving, Inc.'s failure to timely complete and provide the required bonds in accordance with Section 10 of the Bid Proposal and Conditions and the Bidder's Bond To Accompany Bid Proposal, staff recommends: (1) rescinding City Council Resolution No. 2021-001 and cancelling the award for the Project contract to Frank and Son Paving, Inc. and (2) awarding the Project contract to the next apparent lowest responsive and responsible bidder, Hazard Construction Company, in the amount of $2,082,419.70. I UE JI�v �� EW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class I (Existing Facilities), Section 15302 Class 2 v 0 0 1 P � (:, 1 1 2021-02-16 Agenda Packet Page 175 of 395 (Replacement or Reconstruction), and Section 15303 class 3 (New Construction or Conversion of Small Structures) because the proposed actions would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required. 111ECOMruin NI ATION Not applicable. DISCUSSION On January 5, 2021, the City Council adopted Resolution 2021-001 awarding the contract for the "Major Pavement Rehabilitation FY 2018/2019" (STM0397) project (Project) to Frank and Son Paving, Inc. in the amount of $2,044,644.72. On January 7, 2021, City staff issued a Notice of Award notifying Frank and Son Paving, Inc. that it was required, per the Project's bid specifications/requirements, to complete and provide a Bond for Material and Labor, Bond for Faithful Performance, Certificates of Insurance, Guarantee, Non -Collusion Affidavit, and Worker's Compensation Insurance Declaration by no later than ten (10) days after Project award, or January 22, 2021. These requirements are standard in public works procurements in order to ensure timely delivery of capital projects in a manner that protects against risks to public agencies. On January 21, 2021, Frank and Son Paving, Inc. requested a one-week extension to submitthe required Bond for Material and Labor and Bond for Faithful Performance. The City granted the one-week extension with a new due date of January 29, 2021, to submit the required bonds. Frank and Son Paving, Inc. did not complete and provide the required bonds by that date. On February 2, 2 02 1, staff notified Frank and Son Paving, Inc. that it had failed to timely complete and provide the Project bonds and that City staff intended to recommend rescinding the award to Frank and Son Paving, Inc. and proceed with award of the Project contract to the next apparent low bidder. Due to Frank and Son Paving, Inc.'s failure to timely complete and provide the contract documents in accordance with Section 10 of the Bid Proposal and Conditions and the Bidder Bond to Accompany Bid Proposal, staff recommends: (1) rescinding City Council Resolution No. 2021-001 and cancelling the award Project contract to Frank and Son Paving, Inc. and (2) awarding the Project contract to Hazard Construction Company in the amount of $2,082,419.70. In addition, staff intends to pursue forfeiture of the security in Frank and Son Paving Inc.'s Bidder's Bond in the amount of $37,774.98 to cover the difference between Frank and Son Paving Inc.'s bid price and Hazard Construction Company's bid price. Hazard Construction Company's license, Contractor's License No. 7S0S42, as well as all listed subcontractors' licenses, are current and active as of February 2021. Hazard Construction Company has performed similar work in the region with satisfactory performance. Staffs review of Hazard Construction Company's bid determined it to be responsive and Hazard Construction Company to be responsible. Therefore, Staff recommends awarding the contract to Hazard Construction Company in the amount of $2,082,419.70. P 12 2021-02-16 Agenda Packet Page 176 of 395 Disclosure Statement Attachment 2 is a copy of the Contractor's Disclosure Statement. yWt_statement The Contractor that is awarded the contract and its sub -contractors are required to pay prevailing wages to persons employed by them for work under this contract. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California. ChurntOrders Chula Vista Municipal Code section 2.56.160.C.2 authorizes the City Engineer to approve change orders up to the remaining CII' budget available for this CII' project. CON171,11("T Staff has reviewed the property holdings of the City Council and has found that Mayor Salas and Councilmember McCann have property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. However, the decision solely concerns repairs, replacement, or maintenance of existing streets, water, sewer, storm drainage, or similar facilities, and the Councilmembers' properties will not be affected disproportionately to other properties receiving the same services. Consequently, pursuant to California Code of RegulationsTitle 2, sections 18700 and 18702.2(d)(1), this item does notpresenta real property -related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). 171SCA III. JM13AC'T Sufficient funding is available in STM0397 to award the contract. The following is a summary of anticipated project costs: FUNDS REQUIRED FOR CONSTRUCTION A. ContractAmount $2,082,419.70 B. Contract Contin $120,023.83 C. Construction Ins p,::! 1a arax. 12%7 $323,000.00 D. Protect Closeout $50,000.00 Closeout �i Ar roe. ,2 ulo TOTAL FUNDS REQUIRED FOR CONSTRUCTION $ 2,575,443.53 AVAILABLE FUNDING A. Transnet - STM0397 $ 2,460,118.53 B. CalRecvcle Grant- STM0397 (Grant#: TRP10-18-0049 $89,525.00 mentFund $25,800.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $ 2,575,443.53 ONGOING 171SCAI. JMIIAC'T Upon completion of the project, the improvements will require routine street maintenance. 3 2021-02-16 Agenda Packet Page 177 of 395 ATTACHMENTS Attachment I - Notice of Failure to Complete and Provide Contract Documents Attachment 2 - Contractor's Disclosure Statement Staft'Contact: Jose Luis Gonie7, Principal Civil Engineer P 14 2021-02-16 Agenda Packet Page 178 of 395 RESOLU,rION NO, 2021._ ISE SOLU,rION 021.- RESOLU,rION OF FHE ary COUNCIL OF FHE ary OF CHULA vis,FA (I) RESCINDING ci,ry COUNCIL RESOLU,rION NO, 2021-001 AND CANCELLINGi FHE AWARD OF FHE CON,FRAcr FOR FHE "MAJOR PAVE MEN'r REHAB I u,rA,rION" FY 2018/200 (s,rm0397)" PROJEC,r rO FRANK AND SON PAVING, INC. AND (2) AWARDINGi FHE PROJEC,r CON,FRAcr 'ro FHE NEx,r APPAREN'r LOWES,r RESPONSIVE AND RESPONSIBLE BIDDER, HAZARD CONsmucrION COMPANY, IN FHE SIV OUN,r OF $2,082,419.70 WHEREAS, Chula Vista Municipal Code section 2,56, 1 60 authorizes the City to contract for public works; and WHEREAS, on January 5, 2021, the City Council adopted Resolution No. 2021.-001 awarding the "Major Pavement Rehabilitation FY 2018/2019 (s,rM0397)" project (Project) contract to Frank and Son Paving, Inc. in the amount of $2,044,644,72; and WHEREAS, on January 7, 2021, City staff issued a Notice of Award notifying Frank and Son Paving, Inc, that it was required, per the Project's bid specifications/requirements, to complete and provide a Bond for Material and Labor, Bond for Faithful Performance, Certificates of Insurance, Guarantee, Non. -Collusion Affidavit, and Worker's Compensation Insurance Declaration by no later than ten 0) days after Project award, and identifying the due date as January 22, 2021; and WHEREAS, upon receipt of a request from Frank and Son Paving, Inc., City staff granted a one-week extension, until January 29, 2021, to complete and provide the required bonds for the Project; and WHEREAS, Frank and Son Paving, Inc, failed to timely complete and provide the Project bonds in accordance with Section 10 of the Bid Proposal and Conditions, the Bidder's Bond to Accompany Bid Proposal, and staff's grant of extension; and WHEREAS, on February 2, 2021, staff notified Frank and Son Paving, Inc, that it had failed to timely complete and provide the Project bonds and that City staff intended to recommend rescinding the award to Frank and Son Paving, Inc, and proceed with award of the Project contract to the next apparent low bidder; and WHEREAS, staff has deten-nined that the bid submitted by the next apparent low bidder, Hazard Construction Company, is responsive in all material respects to the bid specifications/requirements, and that Hazard Construction Company is the lowest responsive and responsible bidder; and 2021-02-16 Agenda Packet Page 179 of 395 WHEREAS, staff recommends: (I) rescinding City Council Resolution No. 2021--001 and cancelling the award of the Project contract to Frank and Son Paving, Inc. and (2) awarding the Project contract to Hazard Construction Company in the amount of $2,082,419.70 WHEREAS, staff intends to seek forfeiture of the security in Frank and Son Paving, Inc.'s Bidder's Bond in the amount of $37,774.98 to cover the difference between Frank and Son Paving Inc.'s bid price and Hazard Construction Company's bid price, NOW, 'FHEISE FORE, BE IT RESOLVED that the City Council of the City of Chula Vista rescinds City Council Resolution No. 2021--001 and cancels the award of the "Major Pavement Rehabilitation FY 2018/2019" (STm0397) project contract to Frank and Son Paving, Inc, BE i,r FUR,FHER RESOLVED that the City Council of the City of Chula Vista awards the contract for the "Major Pavement Rehabilitation FY 2018/2019" (s,rm0397) project to Hazard Construction Company in the amount of $2,082,419,70. BE i,r FUR,FHER RESOLVED that the City Council of the City of Chula Vista authorizes the Mayor, or designee, to execute the project contract on behalf of the City of Chula Vista, and directs a copy to be kept on Cite with the Office of the City Clerk, William S. Valle Director of Engineering and Capital Projects Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 180 of 395 CHLRACITY O,F Department of Engineering & Capital Prajects VISTA - ----------------- 1---------- - ---------------- . ---- --------------------------------------------- February 2, 2021 File: ST10397 Mailed via USPS Priority Emailed to fr,,,tnkns( s o nig v i nj, (Lv g It o o o ni , Frank and Son Paving, Inc. Attn: Alicia Vasquez 1019 Third Avenue Chula Vista, C.A. 91911 Hudson Insurance Company 100 William Street New York, New York 10038 CIP 4ST1 0397 MAJOR PAVEMENT REHABILITATION 17Y 18/19 SUBJECT: NOTICE OF FAILURE TO COMPLETE AND PROVIDE CONTRACT DOCUMENTS A Notice of Award letter, dated January 7, 2021, was sent by the City of Chula Vista (City) providing notice that Frank and Son Paving, Inc. (Contractor) was required to execute the Contract and furnish the required Bond for Material and Labor, Bond for Faithful Performance, Certificates of Insurance, Guarantee, Non -Collusion Affidavit, and Workers' Compensation Insurance Declaration to the City within ten (10) working days from the date of receipt of the Notice of Award, and not later than January 22, 2021. A one-week extension to the due date of the above listed documents was requested by Contractor on January 21, 2021. The City granted the extension, resulting in a new due date January 29, 2021. The required Bonds for Material and Labor and Faithful Performance were not received by the City on January 29, 2021, and follow up email communication between the City and Contractor confirmed that the Contractor had failed to provide the required bonds to the City prior to the extended deadline. Due to Frank and Son Paving, Inc.'s failure to timely complete and provide the contract documents in accordance with Section 10 of the Bid Proposal and Conditions and the Bidder's Bond To Accompany Bid Proposal, the City hereby notifies Frank and Son Paving, Inc. that it intends to schedule an agenda item for the February 16, 2021 City Council meeting at which staff will recommend: (1) rescinding the award of the project contract to Frank & Son, Inc.; (2) awarding the project contract to the next apparent lowest responsive and responsible bidder; and (3) seeking forfeiture of the security in the Bidder's Bond To Accompany Bid Proposal dated October 28, 2020 executed by Hudson Insurance Company (Surety). Sincerely, �1� .. .. .. .. .. .. . I.,., . .. .. .. .. .. .. .. .. .. .. .. .. .. . cx. til"n" . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. Nicola Kavanagh, PE Principal Civil Engineer Attachments: I . Notice of Deadline Extension to Execute Contract letter, Major Pavement Rehabilitation FY 18/19 CIP # STM0397, dated January 22, 2021 2. Bid proposal guaranty dated October 28, 2020 provided by Hudson Insurance Company 3. Email Confirming Frank & Son failure to provide the required bonds, dated January 29, 2021 cc: William Valle, Jose Gomez, Greg Tscherch, Tim Jones, Jonathan Salsman, Michael McDonnell, Florence Picardal Civic Centvr� 276 Fourth Avvinuc, Lkdkhrig B hida Vista, CA 91910 P u b I i c Worke n Ley: 1800 Nil., I Chti la Msta, CA 91911 (6N)691 -502d I fax (f.,A9)6`)'1-5]7] 2021-02-16 Agenda Packet Page 181 of 395 CI F Department me Engineering Capital ' January 22, 2021 File: S"[ M0397 Mailed via USPS priority Er nailed to fturunk nsn tnnrur�vinn (.iLoo.c(,)r n Frank and Son Paving, Inc. Attn: Alicia Vasquez 1019 Third Avenue 'hula Vista, CA 91911 CIp #S"[M0397 MAJOR PAVEMENTREHABILITATION 1~Y 18/19 SUBJECT: NOTICE OF DEADLINE EXTENSION TO EXECUTE CONTRACT A Notice of Award letter (see attached), dated January 7, 2021, was sent by the City of Chula Vista (City) providing notice that Frank and Son Paving, Inc. (Contractor) was required to execute the Contract and furnish the required Bond for Material and Labor, Bond for Faithful Performance, Certificates of Insurance, Guarantee, Non -Collusion affidavit, and Workers' Compensation Insurance Declaration to the City within ten (10) working days from the date of receipt of the Notice of Award, and not later than January 22, 2021. A one-week extension was requested by the Contractor on January 21, 2021 via er nail (see attached). The City hereby grants the requested extension. The above listed docur nents shall be furnished to the City no later than January 29, 2021 at 5000 p.m. to the following maiCii�q a&lrevsp FSngineerii�q DeIiartment, Attention Florence Picar(lal, .276 Fourth Avenue, Chula Vista, ('A 91910. Failure to execute the Contract and to Burnish all bonds, insurance, and other docur nents within the time stipulated may cause the City of Chula Vista to annul the award and take action as described in the proposal Requirements and Conditions, including but not limited to forfeiture of the bid proposal guaranty. In order to preserve the City's ability to award the contract to the second lowest responsible and responsive bidder in case of Contractor's inability to fulfill the contract requirements, timeliness in furnishing the above referenced docur nents is critical. Therefore, no further extensions shall be granted. Sincerely, ........... Nicola M. Kavanagh, P.E. Principal Civil Engineer Attachments: 1. Notice of Award letter to Frank and Son Paving, Inc. clated January 7, 2021 2. Ernail f corn Frank and Son Paving, Inc. to City of Chula Vista requesting extension clated ,lanuary 21, 2021 CC: Williarn Valle, Jose Gornez, Greg Tscherch, Tim Jones, Jonathan Salsrnan, Michael McDonnell, Florence Picardal --------------------------------------------------------------------------------------------------------------------------------------------------------- m "' : d, u._.!"r 91910 %A(V "'AlLt]avi �iaca. Dov �6 "19) f1"Id -7"112 1 J'clx (6 ui 691- � 1 � �r u� 1:1�rrtr, r; 2It� 1�a�ur°l �r,�ava�iiraaa�, 11aai:l��illar � 11 4.a°b q1�s 'V1, td, � �� ( '� � �.� a � '�� P aiblic arks C a.�rtm l�ru1111"a✓1,��.�r c. b�cr�.�c1 C.1`ulu �11sla,C"A 91911 2021-02-16 Agenda packet page 182 of 395 CHLAACITY OF Department of Engineering & Capital Pralects MSTA -..............---1. --------- - ---------------- . ---- --------------------------------------------- January 7, 2021 File: STM0397 Mailed via USPS Priority Frank and Son Paving, Inc. Attn: Alicia Vasquez 1019 Third Avenue Chula Vista, C.A. 91911 NOTICE OF AWARD The bid proposal submitted by Frank and Son Paving, Inc. and dated October 28, 2020, has been awarded to Frank and Son Paving, Inc. by the City Council of the City of Chula Vista on January 4, 2021, to perform the following work to wit: MAJOR PAVEMENT REHABILITATION FY 18/19 CIP #STM0397 Enclosed are three (3) originals each of the Contract, Bond for Material and Labor, Bond for Faithful Performance, Guarantee, Non -Collusion Affidavit, and Workers' Compensation Insurance Declaration. Please execute these documents on the appropriate lines and include corporation seals and notarizations as applicable. Please complete the Bond for Material and Labor by filling in the blanks. Amount of this bond is to be the sum of 4WO MILLION, FORTY-FOUR THOUSAND, SIX HUNDRED FORTY-FOUR DOLLARS AND SEVENTY-TWO CENTS ($2,044,644.72). Please also complete the Bond for Faithful Performance by filling in the blanks. Amount of this bond is to be the sum of TWO MILLION, FORTY-FOUR THOUSAND, SIX HUNDRED FORTY-FOUR DOLLARS AND SEVENTY-TWO CENTS ($2,044,644.72). Please also furnish the required Certificates of Insurance and comply with the insurance requirements in Section 7 of the 2019 Chula Vista Standard Special Provisions, approved by the City Engineer on April 9, 2019. These provisions may be found on our website at h-�ll,[?-:-H-w-w-w-.-ch-t�-I-a,vi-�,,fac-a,L�,QY!b�.rm-�,,,-/-�-,,_her _W_(_I_o_C_Ir-m-�-,,,-n-�"?--i-(-I-:-:-:-8--3-9-4-. Also, for clarification, note that all insurers must be authorized to do business in the State of California and the City's description of "Acceptability of Insurers" refers to insurers with a current A.M. Best rating of no less than A: VII with a "D" (Domiciled) or 1." (Licensed to do business). These are the only two ratings acceptable to the City. Only one (1) original Insurance Certificate is required along with two (2) copies. Please be advised that Frank and Son Paving, Inc. is required by the Proposal Requirements and Conditions to execute the enclosed Contract and furnish the required Bond for Material and Labor, Bond for Faithful Performance, Certificates of Insurance, Guarantee, Non -Collusion Affidavit, and Workers' Compensation Insurance Declaration to this office within ten (10) working days from the date of receipt of this Notice of Award, which date is not later than January 22, 2021. Mailing addrevs: Engineering Department, 276 Fourth Avenue, Chula Vista, CA 91910. Failure to execute the Contract and to furnish all bonds, insurance, and other documents within the time stipulated may cause the City of Chula Vista to annul the award and take action as described in the Proposal Requirements and Conditions. Frank and Son Paving, Inc.'s executed original contract will be returned after signature by City officials. If you have any questions, please contact Construction Inspection at Constructionlrispection(d chulavistaca.gov. William S. Valle Director of Engineering and Capital Projects/City Engineer Enclosures cc: Nicola Kavanagh, Principal Civil Engineer Civic Cente� 276 Fourth Avvinuc, Lkdkhng B t 1110a Vista, CA 91910 tviqol�t'IcilLilLivist�,ic,�,a��g(),v � (6N)69'1-502� I fax (f.,A9)6()'1-5]7] PubhtNrl N C it I W IA,16v C'ln.daVkta,CA 91911 6 Ng""enda Page 183 of 395 Nicola Kavanagh From: Frank and Son Paving, Inc. <franknsonpaving@yahoo.com> Sent: Thursday, January 21, 2021 9:43 AM To: CONSTRUCTION I NSPECTION@CHU LAVISTA.GOV,- Nicola Kavanagh Subject: CONTRACTS CIP#STM0397 Warning: External Hi Nicola, Email We are in receipt of the Notice of award. Are requesting an extension of one week to submit all documents back to you. We were out with COVID and now just getting back into the office. We have submitted the request for bonds so should have the soon. Frank and Son Paving, tnc. I PO BOX 698; Bonita, CA 91908 10193rdAvenue; Cbula Vista, CA 9191 Email- franla2sonpaviRgCq) ,,yahoo.com PH (619) 422 8 522 T�w (619) 420 9020 Mon. tbru Fri Bat m to 4 pm 11 2021-02-16 Agenda Packet Page 184 of 395 W KNOW ALL PERSONS BY THESE PRESENTS, that T[We Frank and Son Paving, Inc. I as Principal, and Hudson Insurance Company , as Surety, are held firmly bound unto the City of Chula Vista ("City") in the sum of ten percent of total amount bid ($ 10% , to be paid to the said City or its attorney, its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, successors or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the bid of Principal on the City's request for bids on the following project, to -wit: MAJOR PAVEMENT REHABILITATION FY 18/19 CIP #STM0397 which bid is dated October 28, 2020 , is accepted by the City, and if the above bounden Principal, his/her heirs, executors, administrators, successors and assigns, shall duly enter into and execute a Contract for such construction and shall execute and deliver the bonds required by said Bid Specifications, on or before the date specified in the "Notice of Award," which date shall be no less than ten (10) days (not including Sunday), from the date the bounden Principal is notified by and from the City that said Contract is ready for execution, then this obligation shall become null and void; otherwise it shall be and remain in full force, effect, and virtue. IN WITNESS WHEREOF, I/We hereunder set our hands and seals this 28th day of October 20 20 , Principal: Frank and Son Paving, Inc. Surety: Hudson ln�uran�e Company Cyndi Beilman, Attorney -in -Fact (Attach Notaries and Powers of Attorney for Principal and Surety) Bond in the value of 10% of the total bid amount is mandatory. A specific dollar amount is preferred. If amount is not known at the time the bond is issued, please insert "10% of bid amount." 28 lit":Ilchulat,itioca-my.shamFoini.conVperwnatltjona2—chulavistaco_XoWDocrimmL,ISTAf0397 Ad—tise PackagelSTU0397_jPrevading Wage Bid Package (2019.08) +Spec Prov Tech (2019.07. 11)1.do Rev. 041)812019 2021-02-16 Agenda Packet Page 185 of 395 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California 4�" County of On before me, [Hera insert name and 11ile of the 0 Kerr Z personally appeared Lk, r-1, � �/ to �p person(,) (R��( who proved to me on the basis of satisfactory evidenc o be the person(z) whose name(s�is/a-resubscribed to the within instrument and acknowledged to me that her/she/they executed the same in hoi,9/her/thai°r authorized capacity([ °), and that by .hs/her/th,,asign ature(s) on the instrument the person), or the entity upon behalf of which the personacted, executed the instrument. I certify under PENALTY OF PERJURY Linder the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand MARISA BERTELSEN Commission No. 2259013 > Z NOTARY PUBLIC - CALIFORNIA < SAN DIEGO COUNTY Commission Expires September 21 2022 Notary Public Signature (Notary Public Seal) — 111�'�^ _T�o 11 I DESCRIPTION OF THE ATTACHED DOCUMENT I 12 (Title or description of attached document) (Title or description of attached document continued) ) Number of Pages Document Date CAPA,QITY CLAIMED BY THE SIGNER Individual (s) El Corporate Officer (T-itle) 1771 Partner(s) F Attorney -in -Fact E] Trustee(s) Other INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes 1e.gai'din.g notary tvordino and i/'nLeded, should be completed and attached to (he docioneirt, Acknowledg7rents from other states tria-il be completed for documents being sent to that state so long as the wording does nor require the California norm -11 to violate California 1701an" law. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. ® Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the names) of document signer(s) who personally appear at the time of notarization. • Indicate the correct singular or plural forms by crossing off incorrect forms (Le. he/sheMmey, is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or tines. If seat impression smudges, re -seal if a sufficient area permits, otherwise complete a different acknowledgment form. ® Signature of the notary public must match the signature on file with the office of the county clerk. Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. Indicate title or type of attached document, number of'pages and date, Indicate the capacity claimed by the signer, If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary), • Securely attach this document to the signed document with a staple. 9 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA County of -San Diego On October 28, 2020 before me, Pam Davis Notary Public, Date Insert Name of Notary exactly as it appears on the official seal personally appeared Cyndi Beilman Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to Expiration of notary teen has been extended by 180 days be the person(s) whose name(s) is/are subscribed to the by CA Executive Orders N-63-20 dated May 7, 2020 within instrument and acknowledged to me that he/she/they and N-71-20 dated June 30, 2020. executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. www aA PAM DAVIS M DAMS I certify under PENALTY OF PERJURY under the laws of OMM, #2165394 COMM, paragraph is true the State of California that the foregoing paragi N A I OR A P 0 . C Lr? BL RL NOTARY PUBLIC a CALIFORNIA SAN and correct. 0 7 DIEGO COUNTY C i i . 20 2820 commission Exlpirps Oct. 20 4 Witness my hand,'d- fficial segL, Signature Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of the form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Individual D Individual F-1 Corporate Officer —Title(s): E] Corporate Officer —Title(s): D Partner El Limited El General El Partner F-1 Limited n General Attorney in Fact W. El Attorney in Fact ❑ Trustee Mthumb R Trustee ❑ Guardian or Conservator Top of here [] Guardian or Conservator Top of thumb here ❑ Other: E] Other: Signer is Representing: Signer is Representing: 2021-02-16 Agenda Packet Page 187 of 395 HA -10-A85-0103 POWER OF ATTORNEY KNOW ALL MEN BY THI:SE PRESENTS: That HUDSON INSURANCE COMPANY, a corporation of the State of Delaware, with offices at 100 William Street, New York, New York, 10038, has made, constituted and appointed, and by these presents, does make, constitute and appoint Anne Wright, Cyndi Beilntan, Dana Michaelis of the state of California its true and lawful Attomey(s)-in-Fact, at New York, New York, each of them alone to have full power to act without the other or others, to make, execute and deliver on its behalf, as Surety, bonds and undertakings given for any and all purposes, also to execute and deliver on its behalf as aforesaid renewals, extensions, agreements, waivers, consents or stipulations relating to such bonds or undertakings provided, however, that no single bond or undertaking shall obligate said Company for any portion of the penal sunt thereof in excess of the sum of "feta Million Dollars ($10,000,000.ID®). Such bonds and undertakings when duly executed by said Attorney(s)-in-Fact, shall be binding upon said Cotripauy as gully and to the same extent as if signed by the President of said Company under its corporate seal attested by its Secretary. In Witness Whereof, HUDSON INSURANCE COMPANY has caused these presents to be of its Senior Vice President thereunto duly )ghorized on this 19th day of_ lune 20 19 at New York, New York. HUDSON INSURANCE COMPANY 'tr"'• 7 9 i f3 , "•.Chmv rR 7 ` rt Aucst...._... ...:::........ ......... By........ ...... ... .., .... .... ...........:...... Dina Dasicalakis Michael P. Cifone Corporate Secretary Senior Vice President S'TWIT, Oh NEW YORK COUNTY OF NE%V YORK. SS. On the 19th day of, June 20 19 before me personally cattle Michael P. Cifooc to me known, who being by me duly sw[nnn did depose and say that he is it Scnior Vice President of HUDSON INSURANCE COMPANY, the co poration described herein and which ex"uicd the above insuunnent, that he knows the seal of said Corporation, that the seal affixed to said instrument is such corporate seal, that it was so affixed by order of the Board of Directors of said Corporation, and that he signed his namnalb n a�weh �lakc order. Itl eo@�'��oDdd°: CAMERON C;CDi Rl.�i a h YO p� Goo 9 ............ 4 .. .. ...... 0 (Notarial Seal) si9� �? ^ Public State of New York �O (A Notary o J— `, e No. 01606372305 Qualified in New York County e o Commission Expires June d, 2022 4� CERTIFICATION STATE Of: NEW YORKp%4a 0 0 COUNTY OF NEW YORK 41`00eOF NOs��` ejeeee Ui utUrN 1 he undersigned Dina Daskalabs i ereby certifies: That the original resolution, of which the fallowing is a true and correct copy, was duly adopted by unanimous written consent of the Board of Directors of Hudson Insurance Company dated .July 27"' 2007, and has not since been revoked, amended or modified: "RESOLVED, that the President, the Executive Vice Presidents, the Senior Vice Presidents and the Vice Presidents shall hn%r tune authority and discretion, to appoint such agent or agents, or attorney or attorneys -in -fact, for the purpose of carrying on this Company's surety business, and to empower such agent or agents, or attorney or attorneys -in -fact, to execute and deliver, under this Company's .seal or otherwise, bonds obligations, and rccognizances, whether made by this Company as surety thereon or otherwise, indemnity contracts, contracts and certificates, and any acid all other contracts and undertakings made in the course of this Company's surety business, and renewals, extensions, agreennents, waivers, consents or stipulations regarding undertakings so made, and FURTI FFR RESOVLF,D, that the signature of any such Officer of [lie Company and the Company's seat may be affixed by facsimile to ally power of attorney or certification given for the. execution of any bond, undertaking, recognizance, contract of indenmity m other written obligation in dtc nature thereof or related thereto, such signature and seal when so used whether heretofore or hereafter, being hereby adopted by the Company as the original signature of such officer and the original seal (if' the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed." "THAT the above and foregoing is a full, true and correct copy of Power of Attorney issued by said Company, and of the whole of the original and that the said Power of Attorney is still in full force and effect and has not been revoked, and funhennore that the Resolution of the Board of Directors, set forth in the said Power of Atotne is new in force. r Wrtn" the hand of the undersigned and the seal of said Corporation this 28th d ry of October 2020 tF i ° 7) <`. / �4�( w .i ram By .... Dina (D isl alakis, Corno I, talc Secretary 2021-02-16 2021-02-16 Agend Packet Page 188 of 395 Jonathan SaIsman From: Florence Picardal Sent: Friday, January 29, 2021 2:34 PM To: Nicola Kavanagh Cc: Jonathan Salsman Subject: FW: Bonds for Chula Vista - Major Pavement Rehabilitation Importance: High Nicola: This is the latest mail from Jeanette. I replied that I was forwarding to you for a response. - fp From: Frank and Son Paving, Inc. <franknsonpaving@yahoo.com> Sent: Friday, January 29, 20212:31 PM To: Florence Picardal <fpicardal@chulavistaca.gov> Subject: Fw: Bonds for Chula Vista - Major Pavement Rehabilitation Warning: External Florence, Email We just got final word from my Surety Broker. We do apologize but will not have the final bonds until Monday. May we have them hand delivered to your office as soon as I receive them? See below response. Frank and Son Paving, tnc. PO BOX 698; Bonita, CA 91908 1019.3rdAvenue; Chula Vi9ta, CA 9191 Email- h-a11kf2S2W1h�OO.COJv1 (619) 422 8 322 T -ax (619) 420 9026 Mon. thi u Eki 8am to 4 pin .................... l:::orwarded IMessage .................... From: Cyindi To: ��raink and Son �::-Iaviing, Inc. Sent: l::::riday, Jainuary 29, 2021, 02::25::39 I::-IIM I::-'S'T Subect: I13oinds for Chula Vista IMa or I::-Iaveinneint IfRelhalbiilliitatiioin j 2021-02-16 Agenda Packet Page 189 of 395 r expectJconfirmdocuments recordedJ Mondaywe can release thebonds for the referenced project. Surety Assom.f �tes of ou�therin1lfforir-fllinsur ince Seirv1ces '"CAll...11 RANS DBE/WBE ER11"'IFIED #38706******* '"IFED�RAll....CCR REGI_11RY #961.857609 CAGB::: #635B7***** ***Cl"IlY OF SAN DIEGO Sil....BE�:R: 11IFI A_If ION # I.OW10 D :1.******** (61.9) 994... 3652 cell (61.9) 501. 1.899 Office (61.9) 2.109833 fax 5 3 0,Jad1<soin Dirfve Sute 208 I....a Mesad CA 91.942 "BUH....DING UI x:::11 Y REll....All IONSHIPS O YOU CAN BUH....D YOUR BUSINESS" Pwu rn�v PrK if P. N�IIII Llnked�� I Ilrtlllp,v Illi urll««uu.,« «rurr« «urrllr�ur�«urliu v" liew, rnPin uonp auii Linked �- �ltl�r aI�656516/.� Ir S��Irr... _IL IIh1s e im1II ail ainy atladhimeir-as Ibeireto aire 1in�teinded oireIIS for use Iby the ddiressee(s) ire irm ed Iheir6in ail imay r:cmirta: in Ilegally pir1vfleged aind coinfideinflal 1infoirirm afloin,. If you acre not. the 1in�teindedfirer: p1 ein�t. of t.Hs e mad, you afire heireby no�flfied airy d1sseim in�floind d1stir bu�floin oir r:gpyp ing of t.Hs e imad, ail airy atladhimeints thereto, 1s stir1ctly pircmlh11b1�ted,. If you rer6ve t.Hs e mad 1in eriroir Iplease 1i m i m ede ately no�flf firm e at. (61.9) 01. 1.899 ail permaineintly delete the or1g1inll copy ail airy copy of airy e...imad, ail airy 2021-02-16 Agenda Packet Page 190 of 395 2021-02-16 Agenda Packet Page 191 of 395 CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City of Chula Vista (the "City"), a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City election must be filed. The following information must be disclosed: List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. ...... 2. If any person* identified pursuant to item one (1) above is a corporation or partnership, list the names of all individuals with a two thousand dollars ($2,000) investment in the business (corporation/partnership) entity. 71 If any person* identified pursuant to item one (1) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. W", iiisOVAII19111'"1(PiA° ,I V 1{,, ;i 40. Has any person* associated with this contract had any financial dealings with an official" of the City as it relates to this contract within the past twelve (12) months? Yes No to"O' 29 hllps://chulavislaca-my.sharepoinl.cornlpersonallijones2_chulavislaca_gov/Documenls/STM0397 - Adverlise Package/STM03971Prevailing Wage Did Package (2019.08) + Spec Prov -Tech (2019.07.11)].docx Rev. 0410812019 2021-02-16 Agenda Packet lege 192 of 395 Hazard Construction Responses for Mandatory Disclosure of Business Interests Form Ownership Senior Management Team Title % Interest Jason A. Mordhorst President 63.16% William S. Rogers Executive Vice President 0.00% Mark P. Thunder Vice President of Operations 5.26% Emmanuel C. Gavino Chief Financial Officer/Secretary 31.58% 100.00% Value of financial interest in the proposed transaction: Hazard Construction has 100% financial interest in the bid proposal. Contingent interest in the transaction and the value of such interest should the contingency be satisfied: Hazard Construction has no contingent interest other than the bid proposal. Any philanthropic, scientific, artistic, or property interest in the transaction: Not applicable 2021-02-16 Agenda Packet Page 193 of 395 If Yes, briefly describe the nature of the financial interest the official** may have in this contract. V 6. Have you made a contribution of more than two hundred fifty dollars ($250) 'within the past twelve (12) months to a current member of the Chula Vista City Council? No V, Yes _ If yes, which Council member? Have you provided more than three hundred forty dollars ($340), or an item of equivalent value, to an official** of the City in the past twelve (12) months? (Thais includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes No ITITIT mm_ If Yes, which official** and what was the nature of item provided? Date: 2 HAZARD CONSTRUCTION COMPANY Name of Company, Firm or Entity Signature of Jtontr clor/Applicant Print or type name of Contractor/Applicant Title Person is defined as: any individual, firm, co -partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 30 hitps://chalavistaca-my. sharepoint. com/personal/ijones2_chulavistaca_gov/Documents/STM0397 Advertise Package/STM03971Prevailing Wage Bid Package (2019.08) + Spec Prov -Tech (2019.07.11)). docx Rev. 04/0812019 2021-02-16 Agency Packet lege 194 of 395 Fronn:Jonathan Hawes Sent: Tuesday, February O2,2O219:4OAM To: OtyC|erk< Subject: Public comment for next city council meeting External Good evening. Myname isJonathan Hawes. | served asE|Monte City Clerk from 2U13Lo Email 2018. Since 2015 | have been a whistleblower on Andre Quintero and Team B Monte's embezzlement of$lO million from the B Monte Promise Foundation scholarship fund. | have interviewed dozens ofE| Monte residents who have privately confirmed that Promise funds were used for fraudulent trips to Vietnam and Haiti, a bogus consultant in Salt Lake City, house repairs, and other criminal activities. I have myself been interviewed by the FBI about two dozen times. Documents proving the embezzlement have been submitted to the FBI and the District Attorney's Office and are now available tothe public online ( i|am asking the Chula Vista City Council to call out these crimes and protect the vulnerable residents of one of the poorest cities in southern California. El Monte children, who should've been provided with college scholarships, were robbed. Andre Quintero and Team El Monte members must go to prison. If you have any questions, please call ortext nneat hank you. 2021-02-16 Agenda Packet Page 195 of 395 From: Sent: Tuesday, February O9 20214:56 PM Tm:OtyC|erk Subject: PUBLIC COMMENTS FOR THE COUNCIL MEETING OFO2/O9/2O21 Importance: High External He|k). Email My name is Sh8rmane Esto|@no and | 8m 8 25+ year resident of Bonita. Today |8Dlwriting k}the City Council t0make them aware 0fthe blighted ShOpping08Dte[iO our community that is annexed by the City of Chula Vista. This shopping center is located on the south side of Bonita Road, between Allen School Road and Willow Road and extends from 8popular breakfast restaurant OOthe east side, tOthe Old Bonita Store on the west side. The deferred maintenance on the structures is more than blight, his8public safety hazard and there are concerns within the community about the safety of the tenants and the customers that patronize the center. The StrU{tUr8(S)are made Ofwood and have 30year old shake shingle roofs that are 8fire hazard. In addition, there are large, bright blue tarps that have been covering the roofs for many months, which indicates the |S8hS have not been remedied and the S8f81y of the public is at risk, especially inthe establishments that are serving food to the public. I am requesting the City Council to deploy resources to inspect and take action. In closing, the City of Chula Vista is now on notice. 2021-02-16 Agenda Packet Page 196 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 24-44�74 TITLE RESOLUTION OFTHE CITY COUNCIL OFTHE CITY OF CF ULA VISTA AMENDING CHAPTER 8 (GREENS FEES) OFTHE CITY'S MASTER FEE SCHEDULE AND ESTABLISHING NEW GREENS FEES ATTHE CF ULA VISTA MUNICIPAL GOLF COURSE 1? 17CO M M 1.N 1) 1.J) A, ("I'l 0 N Council adopt the resolution. SUMMARY The Chula Vista Golf Course (CVGC) hosts over 60,000 rounds of golf and over 400 tournament and banquet events each year. The rates charged for the use of this facility have not been increased in over 12 years and lag far behind other municipal courses in the area. In order to address deferred maintenance and to continue the program of upgrading the facility and increasing the quality of the experience for our customers, staff is recommending the fees be increased to a level more commensurate with comparable local courses. Adoption of this resolution would also authorize the City Manager, or designee, to amend Chapter 8 (Greens Fees) to increase the greens fees by a maximum of three percent (3%) per year for the next five (5) years through 2026, to accommodate inflation and increases to the minimum wage. I UE JIE�v � W The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it grill not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Not Applicable DISCUSSION While the demand for golf has declined over the past 20 years, Chula Vista Golf Course (CVGC) remains a local favorite. It is both affordable and accessible to the public. CVGC hosts over 60,000 rounds of golf and over 400 tournament and banquet events each year. The course serves 13 boys and girls high school golf teams that compete in the Sweetwater High School District. CVCG is home to the weekly Chula Vista Rotary v 0 0 1 P � (:, 11 2021-02-16 Agenda Packet Page 197 of 395 and the facility supports the community through hosting celebrations of all kinds including numerous fundraisers. The Touchstone Golf Foundation has raised over $40,000 in the last 2 years for non -profits. Membership of the Chula Vista Men's and Women's clubs total over 300 players. For 32 years CVGC was ]eased to a turnkey operator with the City getting paid rent but having little input on the operations or maintenance of the facility. During that time an estimated $4 million of differed maintenance accrued. It was decided that a new operating model was necessary so the City could be more involved in the management of the asset. In November 2016, the City retained Touchstone Golf, a professional golf course management company to run the daily operations and work with the city on making improvements to the facility. Under Touchstone's Management, working closely with City staff, the course has seen gradual improvement and progress is being made on several of the deferred maintenance items but like most asset management projects that start with a deep deficit there is still millions of dollars of improvements needed at the facility. Unfortunately, many deferred maintenance issues remain along with normal wear and tear problems that require daily attention. Immediate improvements that need to be addressed are ADA improvements, resurfacing fairways, irrigation repairs, greenside bunker renovation, tree work, tee leveling, and equipment replacement (Attachment 3). Without these improvements the golf course will fall further behind the other courses in the marketplace. While we have managed to sustain a small profit for the City every year and have avoided investing any money from the general fund, we are working with revenues based upon a 14 -year- old fee structure. This fee structure has not kept up with inflation, increase in minimum wage and utilities which hampers our ability from making any significant progress on the major issues that exist at the facility. Attachment I to this report shows CVGC's current fee structure compared to those of other local municipal and public courses. The CVGC is the lowest in virtually every category. Attachment 2 is our current rate structure compared to the rates proposed by this action. These new rates, while still low are more in line with comparable courses. Attachment 2 shows the projected annual revenue increase generated by the rate change. Even with this modest increase in fees, based on current annual rounds, we will not be able to address all items identified in Attachment 3 but will prioritize ADA and access issues first. The closure of the course during the pandemic dramatically reduced the funds on hand so we are hopeful that funds will be available for these improvements to take place during the 2021/22 fiscal year. If approved this action will amend the City's Master Fee Schedule to reflect these new fees and will authorize the City Manager or her designee to increase the fees a maximum of three percent per year as needed to accommodate inflation and increases in the minimum wage for the next five (5) years, through 2026. Chula Vista Golf Course is committed to providing an enjoyable golf and dining experience at an excellent value. For the property to be successful fee increases will be required from time to time to offset increased expenses and provide funds for necessary improvements. In our current climate Golf has a great opportunity to capture more golfers and continue to bring them back to Chula Vista. 2021-02-16 Agenda Packet Page 198 of 395 CON171,11("T Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov't Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. 171SCAI. JMI�IAC'T When the new rates take effect in the third quarter of the current fiscal year it is anticipated that the Golf Course will see an increase in revenue which will be offset by the needed deferred maintenance remediation. There will be no significant impact to the general fund in the current fiscal year. ONGOING 171SCAI. JMI�IAC'T In upcoming fiscal years as the facility condition improves the increase in rates may result in a modest increase in revenues to the general fund. ATTACHMENTS 1. Comparable Fee chart for local Municipal Golf Courses 2. Proposed new Fee Schedule for CVGC 3. February 26, 2020 Letter from Touchstone Golf Staft'Contact: Rick Ryals, Real Property Manager 3 2021-02-16 Agenda Packet Page 199 of 395 RESOL[YrION NO, RESOL[YrION OF FHE ary COUNCIL OF'THE? ary OF CI ULA vis,FA AMENDING CHAP,rER 8 (GREENS FEES) OF 'THE; ary, s MAsFER FEE SCI EDIJI-E AND Es'FABLISHING NEW GREENS FEES Xr THE? CHULA vis,FA MUNICIPAL GOLF COURSE WHEREAS, the Chula Vista Municipal Golf Course (CVMGQ hosts over 60,000 rounds of golf, over 400 annual tournament and banquet events, I3 boys and girls high school golf teams, weekly Rotary meetings, and numerous other community celebrations and events including fundraisers; and WHEREAS, the greens fees charged at the CVMGC have been in effect since 2008; and WHERAS, staffs analysis shows that the greens fees charged at the CVMGC are lower than other local municipal and public golf courses; and WHEREAS, the revenue currently generated by these greens fees is not sufficient to adequately maintain CVMGC and address years of deferred maintenance; and WHEREAS, staff recommends amending the Master Fee Schedule to increase greens fees at the CVMGC, as provided on Exhibit "A", to generate additional revenue to offset increased expenses and provide funds for necessary improvements; and WHEREAS, staff recommends that the City Council authorize the City Manager, or designee, to amend the Master Fee Schedule to increase greens fees at the CVMGC by a maximum of three percent (3%) per year for a period of Five (5) years, through calendar year 2026, to account for future increased expenses and provide funds for necessary future improvements, NOW,'THE ISI FOR E, BE i,r RESOLVED by the City Council of the City of Chula Vista that it approves amending Chapter 8 (Gireens Fees) of the City of Chula Vista's Master Fee Schedule, as provided on Exhibit "A", and establishes new greens fees at the Chula Vista Municipal Golf Course, as provided in the amended Master Fee Schedule, BE i,r FUR,FHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the City Manager, or designee, to amend the Master Fee Schedule to increase greens fees at the Chula Vista Municipal Golf Course by a maximum of three percent (3%) per year for a period of Five (5) years, through calendar year 2026, 2021-02-16 Agenda Packet Page 200 of 395 Eric Crockett Deputy City Manager Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 201 of 395 Attachment 11 Competitive Rate Comparison Green and Cart Fee Rates Chula Vista Resident Chula Vista Non- Resident Bonita Balboa Balboa Non- resident Coronado Coronado Non- Resident Eastlake Resident Eastlake non - resident Weekday Standard walking $ 20 $ 25 32 $ 32 $ 40 $ 38 $ 42 Standard riding $ 33 $ 38 $ 46 $ 37 $ 55 $ 56 $ 62 $ 55 $ 100 Senior walking $ 11 $ 22 Senior riding $ 23 $ 317 $ 55 55 Twilight walking $ 13 $ 16 $ 22 $ 19 $ 24 $ 23 $ 26 Twilight riding $ 26 $ 29 $ 36 $ 29 $ 34 $ 35 $ .38 $ 45 $ 55 Super Twilight walking $ 10 $ 1 Super Twilight riding $ 20 $ 20 Early Bird Back 9 walking $ 12 $ 15 $ 20 $ 14 $ 18 20 $ 25 Early Bird Back 9 ridjn� $ 19 $ 22 $ 28 $ 22 $ 26 31 $ 316 $ 30 $ 30 Resident cards 12 $ 25 Weekend Standard walking $ 29 $ 38 $ 46 $ 40 $ 50_ 431 $ 49 Standard riding $ 42 $ 51 60 $ 55 $ 65 $ 61 $ 69 $ 75 125 Senior walking Senior riding Twilight walking $ 16 $ 19 $ 28 24 $ 30 26 $ 31 Twilight riding $ 29 $ 32 $ 42 $ 34 $ 40 $ 38 43 $ 50 $ 55 Super Twilight walking $ 15 $ 15 $ 24 $ 30 Super Twilight riding $ 25 $ 25 A $ 40 Early Bird Back 9 walking $ 14 $ 17 I $ 24 18 $ 23 $ 20 $ 25 Early Bird Back 9 ridiny, $ 21 $ 24 I $ 32 26 1 $ 31 $ 36 2021-02-16 Agenda Packet Page 202 of 395 fn Oc fn Qj Ca' C4 Nq fwA fA fA fA fA fA (A ry M mD ry CIA Oc V-) 7t r - OW - - - - - -------- as 03 cl cl C= r rn CD 't Oq 0 M 0) 06 00 V -- CD CD (C= CD CD (c= CA 4 K 6 K OK cs 06 rn CIA (n 6 an d to ws YD 0 wjtr- u vi vi vi vi vi vi vi vi Ow Ow ------- -;� - ellill ------ ------ ----- Qu U€J CEJ CEJ €J CEJ €J CEJ CEJ CEJ CEJ - ----- ----- ----- to to E, to to way to big big big CSS to 71� 71� CA All" TO t.,� C,, H STO N E c'3e'>Jf�'r February 26"', 2020 Mr. Rick Ryals City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: Chula Vista Golf Course Major Projects and Capital Improvements [)car Rick: As you know there are a number of improvements necessary to bring Chula Vista Golf Course up to an acceptable standard that will enable us to retain our current custorners and attract new custorners. This proposal has been created with the rrundset that we will take an incremental approach to improving the golf course over time. Below you will find a list of projects that we need to address as soon as possible. Attached are additional iterns that are important but not as time sensitive, but none the less important, including the ADA project. Fortunately, the net income frown the golf course is more than sufficient to cover the total cost. IC m mediateTPIrgoiects Description Est. Cost Reseal and level asphaltin the handicap parking areas. Demo existing Parking Lot parking barriers and add wheel stops achieve ADA compliance parking $34,000 areas Cart return area and Seal and level concrete path and concrete cart. return area. Seal and level rarrip frown parkJJJg lot asphalt. in same area. Achieve safe path of travel from parking lot. to pro $20,000 shor). 19"' Hole Install lift. to the 19"' hole and upgrade bathroom to be ADA compliant. $75,000 Oven Currently staggering cooking for events $5,000 Install 35,000 square feet. (I acre) of Paspalum Sod in bare spots on various Fairway Sod fairways to improve playability (quality) for the golfers. (Jolfers have a $25,000 basic cx ectat:ion that. the will be able to -)lay off grass.oh Install new bridge for cartand walking traffic to cross over the river on the Cart Bridge Hole 3 3'-' hole. Existing bridge is closed due to strUClural misting causing itto be $65,000 unsafe. Tree work "frim Various trees and remove dead trees and stumps from the course for $40,000 safel air ries Second AC Unit for Install second AC unit. for Vista Room. $8,000 Vista Roorn Total: $272,000 We look forward to working with the City to ensure the golf course and restaurant is properly maintained for the benefit of the community. If you have any questions or feedback feel free to contact rine anytime. Thank you for your consideratioll. Cordially, fiF Steve Harker President & CEO Cc: Armando Najera, Chris Giffillen 2021-02-16 Agenda ITk4ostone Goff, 1052 Ovedook, lBerkelley, CA 94708 * (510) 919-3017 Page 204 of 395 Chula Vista Golf Course Additional Capital Improvements and Equipment 2020-2021 Description Est. Cost ......... 1-L.everage Cart Beverage cartneeded for course. Can double for events in the evening $17,200 Dance Floor Second dance floor needed for events $8,000 Banquet Chairs 100 Brown Banquet. Chairs, 220 Chiavari Chairs, currently renting for $8,000 lar),cr events. Bunker Renovatioll Rebuild and reshape 3 to 5 greenside bunkers to improve their drainage, 'rhe $30,000 sand quality, and -)fa yability. currentbunkers are well below standard. Tee Box Leveling Strip, level, and re -sod 2 to 4 tecs on the golf course to improve playabilily $30,000 and turf coveralre. Goffers c- ect. a level tec with grass. Create architectural plan to Splitthe middle room into half storage and Bridal Suite/Derno old other half bridal suite. Bar in inoperable and needs to be demo creating $25,000 bar area space for storage. Currently losing weddings and qLtinceancras due to not. havinU a bridal sLtil.c. Replace exterior lights with LED lightto saving energy and money over Led Lighting time. Add 2 LED lights to driving range for nightlitputting green and tec $15,000 box. &�Dance �Floor_ Carpet. banquet. room and add permanent. dance floor $35,000 __.C,'�amet New fires and clutch needed for tractor $8,000 Paint exterior of Exterior of clubhouse is dated. $20,000 clubhouse Total: $204,200 2021-02-16 Agenda Packet Page 205 of 395 MASTER FEE SCHEDULE Ex" ll Chapter 8 - Greens (Fees hibit A Chula is Municipal Golf Course 276 Fourth Avenue, Chula Vista, CA 91910 STANDARD GREENS FEES RESlIDENT DIISCOUNTS 'I An annual resident discount card may be . - Monday through Friday (exc. legal holidays) Number of holes 1-8 purchased. Residency requirements must be rneL Standard greens fees $2 (`5 to purchase the discount card. Resident discount rate $220 Annual resident discount card 2. Saturdays, Sundays and legal holidays $2Q�:2 Number of holes 1-8 Standard greens fees $398 Resident discount rate 3. Monday through Friday (exc. legal holidays) Number of holes Standard greens fees $1-64,15 Resident discount rate $1-32 4. Monday through Friday, twilight Number of holes Standard greens fees $19 Resident discount rate 5. Monday through Friday, super twilight Number of holes Standard greens fees $130 Resident discount rate $10 6. Saturdays, Sundays and legal holidays Number of holes Standard greens fees $1 -8 -7 - Resident discount rate $1-54 7. Saturdays, Sundays and legal holidays, twilight Number of holes Standard greens fees Resident discount rate $196 8. Saturdays, Sundays and legal holidays, super twilight One of the following forms of identification will be required to show proof of residency - 1. Driver's license 2. Current utility bill 3. Parcel map showing location of Chula Vista property ownership Resident rates also apply for non-residents of the City of Chula Vista who are members of either the Chula Vista Men's Golf Club or the Chula Vista Ladies' Golf Association, and have paid a one Lime fee to the City of Chula Vista. One-time, non-resident exception $25 SENIIOR RATES Qualifications and restrictions- 1- Chula Vista residency. Said residency shall be verified by driver's license or voter registration card. 2. The individual must be at least 62 years of age. 3. Play is restricted to weekdays only, holidays excluded. Play is restricted to Monday through Friday, 8-00 a.m. to :12-00 noon. Senior discount cards Yearly discount card $12 Monthly discount card $50 Number of holes No new monthly discount cards will be issued after Standard greens fees $16-�F, 07/25/2006. Existing monthly cardholders are Resident discount rate $1-35 "grandfathered". Senior Greens -Fee--per--round presidents only Number of holes or :18 With yearly discount card With rnonLh�-�fiothered" discount card $3.00 City of Chula Vista www.chulavis-Laca.gov 619.397.6000 2021-02-16 Agenda Packet Page 206 of 395 May 2010 MASTER FEE SCHEDULE FEE BULLETIN 8--100 Page 2 of 2 JUNIOR MONTHLY TICKET A Junior Monthly ticket shall entitle a junior to play a maximum of :18 holes per day after the hour of 2:00 p.m., subject to any rules, regulations or restrictions imposed by the management of the Chula Vista Golf Course. Juniors are defined as non -college students who have not reached their eighteenth birthday or completed their senior year of high school. Monthly RAIN CHECKS No rain checks will be given for any fee category. LEGAL HOLIDAYS For purposes of these golf course fees, legal holidays are defined as follows- )ar:ouary Qt 2cernbei, 31 ................. New Year's lEvLDay January 1 New Years Day I iurfj Moirifjay uiri Jairlijary .. .. .. .. .. .. Marbiri I uljieiIlvuirig II i]y February Lincoln's Birthday Third Monday in February.... Washington's Birthday Marc['i 31 .. .. .. .. .. .. .. .. .. .. .. .. .. .. asar(::,['1avez II)ay Last Monday in Mernoria I Day July Independence Day First Monday in Septernber...................... Labor Day September 9 Admission Day Second Monday in October............... Colurn bus Day November 11 Day Fourth Thursday in Novernber............. Thanksgiving Fourth Friday in Novernber.................. Thanksgiving Decern her 241,15 Christmas If.Yc December 25 Christmas Day City of Chula Vista www.chulavis-Laca.gov 619.397.6000 2021-02-16 Agenda Packet Page 207 of 395 Date: 1 To: City Council Fnmrn: Maria h(Nachadomhan,City Manager Via: Eric C'Crockett, Deputy City Manager Subject: E'mommnen1response toGolf Course Below are staffs responses to thee-commerts received by Mr. Stahl with anupdated attachment "2" for the Master Fee Schedule to correct a few items that were missed in the original report. City staff and representative of Touchstone will be available during the meeting to address any additional questions or comments. A. The largest increase is senior nate, isthis fair for seniors on fixed/limited income? A thorough analysis was conducted with our competitive courses(attachment 7"mfthe and found that the senior rate along with all our rates would continue to be fair and practical rates for our Senior residents pay same rate as non-resident seniors, is this fair for resident seniors? Senior Residents dmnot pay the same as Non -Resident Seniors. The senior resident card rate is $11 and any non-resident is $25Monday bhmFriday. L Senior hours 8:00am to 12pm, but for many years seniors have played from sunrise on at senior rate, do seniors now have to pay non senior rate to play before 8? Senior hours are from sunrise tosunset. D. A onetime, lifetime fee of $25 dollars buys a non-resident the status of a resident, is that fair to residents who pay taxes yearly and generally shop inthis City? The requirement is that you join the Men's club membership $80and continuation mfonactive membership oƒ$22annually /srequired after the $25pmynrentƒornon-resident fee. 2021-02-16 Agenda Packet Page 208 of 395 E. Operator raised cart fees 7 months ago from $12 to $15 (reason given was COVID-19 to disinfect carts, however, this procedure lasted only for a short time, and is rarely if ever done now,) can operator arbitrarily change this fee? The operator controls the rates of the cart fees and they are not part of the city master fee schedule. Due to the volatility of many factors including, electricity, demand, staffing, cleaning and use of the golf carts the cart fees were raised. The carts are disinfected daily with an approved disinfectant by the county of San Diego called Strike Bac. Currently the operator charges Holiday rates on non -designated days (Dec. 24th and December 31), can operator do this? The comment is correct, and amendments are being proposed to the Master Fee Schedule to address the issue. Chula Vista Golf Course Revenues and Expenditures: In 2016 the City changed the management of the golf course from a lease model to an operator model and the Chula Vista Golf Course was converted to an enterprise fund. For the 30 years prior to 2016 the lease revenue was a revenue to the General fund. However, since 2016 the golf course revenues are used ONLY for the operations and maintenance of the Chula Vista Golf Course and no longer are a revenue to the General fund or used by the General Fund. The following is how the last four years of available resources were reinvested back into the course: 2017: revenues over expenditures provided $83,333 dollars in needed improvements. 2018: revenues over expenditures provided $176,279 dollars in needed improvements. 2019: due to a big decline in revenue primarily due to weather and the Willow Street Construction project there were no revenues over expenditures. 2020: due primarily to the pandemic revenues over expenditures provided only $15,000 dollars in needed improvements. Over the years we have also invested $104,900 dollars toward new sod and bunker refacing. We have some funds available in the enterprise fund which will be allocated to the list of necessary improvements that are identified on Attachment 3 of the item. The Golf Course continues to operate in the black but just barely as labor, water and energy increase all continue to climb however, with the Pandemic there has been an increase in rounds played so additional resources should be available for improvements. 2021-02-16 Agenda Packet Page 209 of 395 As of close of books at the end of November we were $175,000 in the black for the current fiscal year. Atthe same point last year vvewere S8OOOOinthe red. Aaofthis morning the Golf course has $37],776inits accounts. Cash to General Fund In total we deposited into the General Fund $162,580 the first two years from Golf Course revenue. David set up an Enterprise fund to cover expenses for the transition and needed those funds. We have not taken anything out since July 2018. Finally, attached is a letter from a golfer that I think reflects the majority of the golfers that are currently 2021-02-16 Agenda Packet Page 210 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 24-4444 20-0557 TITIX ORDINANCE OF THE CITY OF CHUL,A VISTA AMENDING CHAPTER 15.26 OF THE CFlUL,A VISTA MUNICIPAL, CODE TO ESTABLISH ENERGY BENCHMARKING AND CONSERVATION REQUIREMENT'S FOR MULJIFAMIL,Y AND COMMERCIAL, BUILDINGS (FIRST RF ACTION Council place the ordinance on first reading. SUMMA11Y In 2018 the State of California adopted Assembly Bill 802 requiring commercial and multifamily buildings above 50,000 square feet to benchmark their energy consumption annually using Energy Star Portfolio Manager and disclosing that information to the State. Energy benchmarking is the measuring of a building's energy consumption and comparing itto similar buildings in similar climate zones. The Energy Star program is designed to assign a score to each benchmarked building on a scale of 1-100. This rating is similar to the Miles Per Gallon (MPG) rating of a car in that it tells you how energy efficient a particular building is. Arating of 50 indicates that the building, from an energy consumption standpoint, performs better than 50% of all similar buildings nationwide, while a rating of 75 indicates that the building performs better than 75% of all similar buildings nationwide. Conversely, seeing that a building uses more energy than 80 or 90% of similar buildings can be a convincing indicator for building improvements. In September 2017, City Council adopted the 2017 Climate Action Plan (CAP) to help address the local threat of climate change by reducing greenhouse gas (GfIG) emissions and lowering Chula Vista's vulnerability to expected climate change impacts. The CAP includes a strategy to create more energy-efficient buildings by requiring energy -savings retrofits in existing buildings. Benchmarking facilitates building performance reporting and public disclosure, with the goal of creating efficient buildings and the potential for ordinances to conserve energy. To better represent the building stock in the city and to maximize a reduction in greenhouse gas emissions, staff propose to exceed the AB802 requirements by lowering the threshold to buildings 20,000 square feet and above and to require potential cost-effective upgrades for existing commercial and multi -family properties. Most buildings below 50,000 square feet in Chula Vista are older and less efficient, so there are many opportunities for improvement. The proposed benchmarking requirement and potential requirement for upgrades for existing multi -family and commercial properties above 20,000 square feet are intended to support that effort and align with the strategy outlined in the CAP. �/ 0 01 P � (:, 1 1 2021-02-16 Agenda Packet Page 211 of 395 Some of the key benefits of this ordinance include reducing GHG emissions in Chula Vista, lowering the carbon footprint of existing multi -family and commercial buildings, helping building owners save money through cost-effective efficiency measures and improving the quality of Chula Vista's building stock. Additional benefits include helping building owners understand and manage their buildings' energy use and educating tenants and real estate professionals about building energy performance. City staff plan to collect the data and report to the State on behalf of the City's building owners to help improve their performance over time. Having access to Chula Vista multi -family and commercial building data in this manner will allow staff to provide educational outreach tailored to individual building owners and be able to track opportunities for energy efficiency programs, as it can often be a challenge to gain access on local building data. I UE �v �� JIEW The Development Services Director has reviewed the proposed Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a Class 8 Categorical Exemption pursuant to Section 15 308 (Actions by Regulatory Agencies for Protection of the Environment) of the state CEQA Guidelines. The proposal seeks to help address the local threat of climate change by reducing greenhouse gas (GfIG) emissions and lowering vulnerability to anticipated climate change impacts. Thus, no further environmental review is necessary. In addition, notwithstanding the foregoing, the Development Services Director has also determined that the Project qualifies for an Exemption pursuant to Section 15061 (b) (3) of the California Environmental Quality Act State Guidelines. The Sustainability Commission (SSC) on August 10th, 2020 supported the proposed requirements. DISCUSSION In 2018 the State of California adopted Assembly Bill 802 requiring commercial and multifamily buildings above 50,000 square feet to benchmark their energy consumption annually using Energy Star Portfolio Manager and disclosing that information to the State. Energy benchmarking is the measuring of a building's energy consumption comparing it to similar buildings in similar climate zones. The Energy Star program is designed to assign a score to each benchmarked building, on a scale of 1-100 This rating is similar to the Miles Per Gallon (MPG) rating of a car in that it tells you how energy efficient a particular building is. A rating of 50 indicates that the building, from an energy consumption standpoint, performs better than 50% of all similar buildings nationwide, while a rating of 75 indicates that the building performs better than 75% of all similar buildings nationwide. Conversely, seeing that a building uses more energy than 80 or 90% of similar buildings can be a convincing indicator for building improvements. In September 2017, City Council adopted the 2017 Climate Action Plan (CAP) to help address the local threat of climate change by reducing greenhouse gas (GfIG) emissions and lowering Chula Vista's vulnerability to expected climate change impacts. The CAP includes a strategy to create more energy-efficient buildings by requiring energy -savings retrofits in existing buildings. Benchmarking facilitates building performance reporting and public disclosure, with the goal of creating efficient buildings and the potential for ordinances to conserve energy. To better represent the building stock in the city and to maximize a reduction in greenhouse gas emissions, staff propose to exceed the AB802 requirements by lowering the threshold to buildings 20,000 square feet and above and to require potential cost-effective upgrades for existing P 12 2021-02-16 Agenda Packet Page 212 of 395 commercial and multi -family properties. Most buildings below 50,000 square feet in Chula Vista are older and less efficient, so there are many opportunities for improvement. This proposed ordinance is designed to meet provisions under AB 802 for a local program exemption, meaning buildings subject to AB802 will no longer be required to report the state, and will instead submit their benchmarking report to the City. Having access to data on Chula Vista buildings in this manner will allow the City to offer tailored programming and assistance to building owners, with the goal of reducing GHG emissions and minimizing climate change impacts. In turn, the City will annually remit benchmarking data in bulk to the California Energy Commission for applicable Chula Vista buildings on their behalf. This proposed ordinance is intended to align with the strategy laid out in the CAP and to increase compliance with AB802. Parameters include the following: 0 Require commercial buildings 20,000 square feet and above to benchmark their energy consumption annually using Energy Star Portfolio Manager Enhance market transparency for building efficiency by making energy performance data available online and requiring buildings to disclose performance to existing and prospective owners and tenants • Require low performing buildings to implement cost effective measures to improve their energy performance • Require buildings to measurably improve their energy performance over each 5 -year period or ==151909W If the least efficient buildings do not make efficiency progress on their own by the second 5 -year deadline, they will be required to make minimum improvements (10-15%) identified as cost- WifiBR9ZEMIETERM 0 For Multifamily Buildings: 0 Require one-time prescriptive upgrades inside older multifamily rental units where tenants pay energy bills 0 Limit audits to buildings with significant owner -paid energy use • Gradually phase-in requirements to give the affected buildings, energy performance industry and City staff time to build capacity • Allow flexibility for buildings to take different paths to efficiency and exemptions for buildings that are already relatively efficient 0 Avoid requiring upgrades that are not cost-effective Some of the key benefits of this ordinance include reducing GHG emissions in Chula Vista, lowering the carbon footprint of existing multi -family and commercial buildings, helping building owners save money through cost-effective efficiency measures and improving the quality of Chula Vista's building stock. Additional benefits include helping building owners understand and manage their buildings' energy use and educating tenants and real estate professionals about building energy performance. Not all currently required buildings in Chula Vista have been reporting to the state since AB802 was enacted and with this ordinance, staff will be able to provide assistance with benchmarking and create educational opportunities on the process. Having a local benchmarking ordinance will increase the compliance with the 3 2021-02-16 Agenda Packet Page 213 of 395 state's requirements. The proposed benchmarking ordinance targets building owners versus the tenants of those buildings, as owners are the ones making decisions on larger building systems like I-IVAC, insulation and lighting. Since buildings are one of the largest sources of a city's carbon emissions, similar ordinances D have been adopted by at lust 30 cities in the United States with the intent to mitigate and reduce emissions and a few are shown in table I below: Table 1: Other cities that have adopted a benchmarking ordinance 2015 Salt Lake City, LIT 2017 Edina, MN 2019 Reno, NV Los Angeles CA San Jose, CA 2019 1/ 2015 V 2012; 2018 2018 ✓ Building Performance Ordinances 25,000 1/ ✓ V 25,000 1/ ✓ 30,000 1/ 20,000 ✓ 1/ 1/ 10,000 V I/ V 20,000 1/ 1/ 1/ Building performance ordinances (BPOs) start by getting energy performance information in the hands of building owners and users. This improves market transparency and facilitates management of building energy costs. Buildings that are relatively energy efficient tend to be rewarded when the market can more easily value their lower energy costs. Similarly, for buildings that make steady energy efficiency progress, BPOs strengthen the incentive to improve. On average, buildings that benchmark each year see a steady decline in utility costs and energy consumption of about 2-3% per year. For less energy efficient buildings that do not experience progress after a few years of benchmarking, Chula Vista's BPO creates a pathway for implementing energy efficiency improvements that make financial sense. Lower performing buildings that do not meet performance targets by their fifth benchmarking year will be required to conduct energy audits to identify savings opportunities. Following an audit, those building owners are given another 5 years to make minimum improvements identified by the audit that pay for themselves in a reasonable amount of time. In Chula Vista multifamily, commercial and industrial buildings over 20K square feet are emitting 113,000 mtonsCO2e/year. The ordinance is projected to reduce these emissions by 6% after 10 years and 8% after 15 years. P 14 2021-02-16 Agenda Packet Page 214 of 395 City of Chula Vista Proposed Multifamily and Commercial Energy Benchmarking Ordinance The proposed Energy Benchmarking Ordinance requires that buildings 20,000 square feet and above, approximately 47% of the commercial building stock in Chula Vista, benchmark their energy consumption using Energy Star portfolio manager and report to the City annually. Buildings would be required to meet a threshold and if they do not perform, they will be required to conduct an audit and implement energy efficiency improvements by year 10 of benchmarking. Coiiniinei°c4l Bufldliiig StodCl ypes ilii OiWa VIsta mm Off!C(I'iJILIlldling-, mu lindUrU'l<d 1:31LIlldling7r, li(AJl 131 Lill ding7r, OiWa Vista Coiiniineic4l Bufldliiig i Stod,c vs Beiiidiiinai°°Ildiiig Iliequii eiineiii't iiiiii Tota I iiiiii ReqUired to benchimark, P "'t �":' (:, 1 5 2021-02-16 Agenda Packet Page 215 of 395 Table 2: Proposed Requirements Benchmark (Compare energy used to All Submit energy data Annually from similar buildings in similar climates) 2022 Provide beinchimairking Disclose (Report consumption and Energy All report to current and Starting 2022 Stair data to the city of Chula Vista) prospective owners and tenants Improvement Targets of the proposed Chula Vista Multifamily and Commercial Energy Benchmarking Ordinance The following performance targets aim to help those older buildings that have outdated equipment or less efficient insulation, windows and lights. By tracking the energy consumption, owners can assess what would be most convenient for them to choose to improve their performance. In these instances, the building owner will consider cost effectiveness and return on investment (ROI) compared to utility costs. For example, a building that scores between 0 and 45 points tells us that either the operator made a mistake inputting the information on the ENERGY STAR website, or that the building is old and has outdated equipment that needs to be tuned up or replaced. By learning what the performance is and the possible ways to improve it, a building owner becomes aware and will improve the issues keeping in mind return on investment compared to current energy bills. P 16 2021-02-16 Agenda Packet Page 216 of 395 Buildings with ENERGY STAR score below 80 Conduct an ASHIRAE Audit (Conduct a study of building that do not meet Performance Targets after Level I Audit (including Retro - Every 5 years systems to identify issues) 5 years of benchmarking (10-30% energy use commissioning where reduction) appropriate), Apply cost-effective improve (Based on the audit, apply Buildings with ENERGY STAR score below 65 measures identified in improvements that are cost-effective with that do not meet Minimum Improvement the audit in order to Every 10 years, beginning 2028 a miin�mum 1101) requirements after 10 years of benchmarlking reduce energy (10-15% energy use reduction) consumption Improvement Targets of the proposed Chula Vista Multifamily and Commercial Energy Benchmarking Ordinance The following performance targets aim to help those older buildings that have outdated equipment or less efficient insulation, windows and lights. By tracking the energy consumption, owners can assess what would be most convenient for them to choose to improve their performance. In these instances, the building owner will consider cost effectiveness and return on investment (ROI) compared to utility costs. For example, a building that scores between 0 and 45 points tells us that either the operator made a mistake inputting the information on the ENERGY STAR website, or that the building is old and has outdated equipment that needs to be tuned up or replaced. By learning what the performance is and the possible ways to improve it, a building owner becomes aware and will improve the issues keeping in mind return on investment compared to current energy bills. P 16 2021-02-16 Agenda Packet Page 216 of 395 MI6 -65 ME Benefits of implementation of the proposed ordinance Benchmarking has a wide range of benefits, including the following: • Building owners can save money through cost-effective efficiency measures and benchmarking can help building owners to better understand and manage their buildings' energy use. • Being able to measure building energy consumption against similar buildings and against their own history helps building operators make more informed decisions. 0 Education of tenants and real estate professionals about building energy performance because of the increase in property values of a more energy efficient building • Allow owners to market buildings in compliance as efficient and high performing. • Improve the quality of Chula Vista's commercial building stock • Reduce greenhouse emissions and help inform future energy programs and services by staff which is in line with the 2017 Climate Action Plan. • City staff will be able to help building owners take advantage of rebates and incentives and will provide feedback on what building owners could be doing to improve their building's performance. These proposed energy efficiency requirements will affect about 47% of multifamily and commercial buildings are an effort to bring existing buildings closer to the energy efficiency of current energy code for new buildings, keeping in mind that all new commercial buildings will be required to install photovoltaic panels by year 2030 per California energy code. The required updates are cost effective energy efficiency measures that have been adopted by other cities and have been widely available for years. The ordinance requirements will serve to building owners and staff as a too] to improve the energy efficiency of buildings in the City reducing carbon emissions and boosting building values. The Owner may receive an exemption from filing a Benchmarking Report for a reporting year, subject to Conservation Section approval, by submitting evidence in accordance with guidelines set forth by the Conservation Section that any of the following conditions apply: P 17 2021-02-16 Agenda Packet Page 217 of 395 • 'The entire Property did not have a Certificate of Occupancy or Temporary Certificate of Occupancy for at least half of the year required to be Benchmarked. • 'The entire Property was not occupied, due to renovation, for at least half of the year to be Benchmarked. • A demolition permit for the entire Property has been issued and demolition work has commenced. • 'The Property did not receive Energy or water services for at least half of calendar year required to be Benchmarked. • 'The Property is in Financial Distress. • Disclosure of the Property Energy usage data would result in the release of proprietary information that can be characterized as a trade secret or would otherwise violate a customer's right to privacy under the California Constitution or other applicable law. COVID-19 And impacts on the proposed ordinance COVID-19 has impacted the commercial building stock and City staff plans to take this in consideration when establishing a baseline year and will follow State recommendations. In addition, City staff is open to any Council recommendation regarding COVID 19 and the impact on the commercial buildings. City staff recognizes the struggles all businesses are experiencing during this time and wants to help building owners and businesses lower their operating costs without burdening them with additional requirements. However, it is important to lower carbon emissions in the City and implement the Council -approved Climate Action Plan. 2MMEM Once City Council adopts the Multifamily and Commercial Energy Benchmarking Ordinance, staff will submit the ordinance for approval by the California Energy Commission (CFC). City staff will also begin working on outreach and education and will create an associated website to house this information. Staff will assist building owners with their ENERGY STAR account set up, as needed. Buildings will have to be benchmarked and must report to the City each year starting in 2022. CON171,11(`T Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property -related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. 1711SCAIL 1IM13AC'T Based on the number of buildings that would be covered under this ordinance and the amount of time needed to assist with benchmarking disclosure and to implement outreach and education to the building owners, this is estimated to cost approximately $89,000 annually. Depending on timing of implementation P 18 2021-02-16 Agenda Packet Page 218 of 395 during the remainder of this fiscal year, we estimate roughly half that amount, or $44,500, would impact the current fiscal year budget and would be covered by the general fund. ONGOING 1711SCAI. IIMI�IACI' Staff will prepare a fee study and will track the ongoing fiscal impact in order to create a proposed annual benchmarking fee which would cover the implementation costs. The fee will be subject to adjustment annually based on full cost recovery. Preliminary analysis estimates the fee level to be approximately $110 per property. This fee will cover administrative costs like assistance with reporting, education of building owners and trainings and will offset the general fund impact. This expected fee amount is minimal compared to the size and value of the building. Buildings will gain conspicuous utility savings over time that will surpass the fee charged by the City. Other cities like Berkeley and Los Angeles charge an administrative fee. ATTACHMENTS 1) Conservation and Energy Benchmarking Ordinance 2) Conservation and Energy Benchmarking Ordinance Summary 3) Conservation and Energy Benchmarking Ordinance Overview 4) Memo -Cost Effectiveness of Audits and Retro -Commissioning Staft'Contact: Coleen Wisniewski, Economic Development Department 9 2021-02-16 Agenda Packet Page 219 of 395 City of Chula Vista ORDINANCE NO. ORDINANCE OF 'rum, crry OF CI= ULA vis,rA AMIH.NDING CHAP,rER 15.26 OF ,rHE CI= ULA vis,rA MUNICIPAL CODE rO ES,rABLISH ENERGY 131H.NCHMARKING AND CONSERVA-riON REQIJIRF,,Ml-,-.N-rS FOR muurIFAMI[_Y AND COMMERCIAL BUILDINGS WHEREAS, City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to reduce the community's greenhouse gas emissions; and WHEREAS, the CCWG recommended twelve climate protection measures, including requiring energy -savings retrofits in existing buildings at a specific point in time, which were included in the 2017 Climate Action Plan; and WHEREAS, as a component of the 2017 Climate Action Plan, staff proposed developing a residential and commercial energy conservation ordinance for City Council consideration; and WHEREAS, on September 26, 2017, City Council adopted the 2017 Climate Action Plan and directed staffto implement the measures based on funding levels; and WHEREAS, through its 2017 Climate Action Plan, the City committed to reducing greenhouse gas emissions to 15% below 2005 levels by 2020 and 55% below 2005 levels by 2030; and WHEREAS, through its 2016 Greenhouse Gas Inventory, approved May 26, 2020, the City's 2016 emissions were 12% below 2005 levels; and WHEREAS, the State of California passed Assembly Bill 802 in 2015, codified in California Public Resources Code section 25402.10; establishing annual energy benchmarking requirements for certain buildings larger than 50,000 sqft and creating a path for building owners to access whole building data from utilities under certain conditions; and WHEREAS California Code of Regulations'hide 20 Division 2 Chapter 4 Article 9 Section 1684 (3) established an exemption for properties that benchmark under local benchmarking programs meeting the requirements of Section 1684 (b) WHEREAS, staff is presenting to Council an ordinance amending Chapter 15.26 of the Municipal Code and adding Section 15.26.050 requiring multifamily and nonresidential buildings of at least 20,000 square feet to annually benchmark energy use, disclose energy performance information and periodically undertake audits or energy upgrades-, and 2021-02-16 Agenda Packet Page 220 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 2 WHEREAS, California Code of Regulations, Title 24, Part 1, Sections 10-106 and 10- 110, establish a process for local governments to apply to the CEC for a determination that a locally adopted building energy efficiency standard meets the requirements of Public Resources Code Section 25402.1(h)(2); and WHEREAS, Pursuant to Sections 17958 and 18941 of the Health and Safety Code, before making any modifications to the California Building Standards Code, the City must make an express finding that such modifications are reasonably necessary because of local climatic, geologic or topographical conditions. Modifications to the California Building Standards and Building Energy Efficiency Standards, as detailed in this Ordinance, are reasonably necessary due to local climatic conditions. As a result of high summer ambient temperatures and periods of heat waves, average load demand and peak load demand of energy used in Chula Vista is an important factor concerning public safety and adverse economic impacts of power outages or power reductions. Reduction of total and peak energy use, as a result of incremental energy conservation measures required by this Ordinance, will have local and regional benefits in the cost-effective reduction of energy costs for the building owner, additional available system energy capacity, and a reduction in greenhouse gas emissions; and WHEREAS, the City affirms that the requirements below will require buildings to be designed to consume no more energy than permitted by California Building Code; and WHEREAS, this Ordinance is intended to preserve and enhance the environment of the City of Chula Vista and is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, because there is no possibility that the ordinance may have a significant negative impact on the environment. 'rhe proposed ordinance is exempt from the requirements of CEQA pursuant to Section 15308 of the CEQA Guidelines, which exempts actions taken by regulatory agencies for the enhancement and protection of the environment; and NOW, -ruin,RE FORE, BE rr RE, SOLVED that the City Council of the City of Chula Vista hereby adopts this resolution and directs staff to prepare and present for City Council consideration proposed local amendments to future versions of California Energy Code requiring increased local energy efficiency standards and the necessary future cost- effectiveness studies, consistent with this resolution. NOW 'rHERE FORE the City Council of the City of Chula Vista does ordain as follows: Section. I® Chapter 15.26 of the Chula Vista Municipal Code is hereby amended by addition of the sections 15.26.050 as follows: 15.26.050 Mandatory Benchmarking and Conservation. Requirements for Multifamily and Commercial Buildings 2021-02-16 Agenda Packet Page 221 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 3 A. purpose andIntent. It is the purpose and intent of this section to promote ongoing energy conservation in buildings in order to reduce GHG emissions resulting from energy consumption. B. Applicability. This section applies to Properties within the City of Chula Vista with a Gross Floor Area of at least 20,000 square feet, and having either (i) no residential utility accounts, or (ii) five or more active utility accounts of one utility type, at least one of which is residential. An overview of the applicability of select ordinance requirements appears in 'rable 15.26.050(13) below. Table 15.26.050 B lees clef vervee Section Nonresidential Multifamily Properties Pro ernes Benchmarking Requirements Applies Applies Section 15.26.050 (D) -------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Direct Disclosure and Public Disclosure Requirements Applies Applies Section 15.26.050(!", )_ Conservation Requirements Applies Applies to Properties with Section 15.26.050 (F) (1-4, 7, 8)_ Significant Common Load Minimum Improvement Applies to Properties with Requirements Applies Significant Common Load Section 15.26.050 Applies to buildings constructed Multifamily Prescriptive Upgrades Not Applicable before 2006 for rental tenant spaces Section 15.26.050 (F)(6) where utility costs are borne by tenant Compliance Schedule, Records Maintenance, and Failure to Comply Applies Applies Sections 15.26.050 (G), (H) and (1) EXE".MP'rIONS: Properties owned by any of the following are exempt from Section 15.25.050: (a) the County of San Diego-, (b) the State of California-, (c) the United States of America-, (d) the Metropolitan Transit Service; or (e) the Chula a Vi sta and Sweetwater School Districts. 2021-02-16 Agenda Packet Page 222 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 4 C. Dqfinilions. For purposes of this Section, the following terms shall have the following meanings: "Audit 'rem plate" means the U.S. Department of Energy's (DOE) online application for entering, validating and submitting data generated by an American Society of Heating Refrigerating and Air -Conditioning Engineers ("ASHRAE") 211 audit and Retro - Commissioning, located at "Base Building Systems" means the systems and subsystems of a building that use or distribute Energy or water or impact the Energy or water consumption, including the building envelope; the heating, ventilating and air conditioning (HVAC) systems; air conveying systems; electrical and lighting systems; domestic hot water systems, water distribution systems, plumbing fixtures and other water -using equipment; and landscape irrigation systems and water features. Base Building Systems shall not include: Systems or subsystems owned by a tenant or for which a tenant bears full maintenance responsibility, that are within the tenant's ]eased space and exclusively serve such ]eased space, and for which the tenant pays all the Energy and water bills according to usage and demand as measured by a meter or sub -meter" 2. Systems or subsystems owned by a residential unit Owner that exclusively serve the residential unit of that Owner-, 3. Systems or subsystems that operate industrial applications such as manufacturing. "Baseline Year" means a Covered Property's first year submitting a Benchmarking Report pursuant to this section or CA Assembly Bill 802 if applicable, or, the most recent year a Covered Property was subject to the Conservation Requirements, whichever is later. "Benchmark" means to complete and electronically submit the Chula Vista Benchmarking Report via ENERGY srAR Portfolio Manager. "Benchmarking Report" rhe report generated by ENERGY srAR Portfolio Manager when a completed Chula Vista Benchmarking Report is submitted to the City, including both the information required to be input into ENERGY srAR Portfolio Manager and the information generated by ENERGY srAR Portfolio Manager. "Conservation Section" means the City of Chula Vista's Office of Sustainability Conservation Section. "Covered Property" means a Property that meets the applicability requirements of this section. 2021-02-16 Agenda Packet Page 223 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 5 "Energy" means electricity, natural gas, steam, heating oil, or other products sold by a utility to a customer of a building, or renewable on-site electricity generation, for purposes of providing heat, cooling, lighting, water heating, or for powering or fueling other end -uses in the building and related facilities. "Energy Audit" means systematic evaluation to identify potential modifications and improvements to a building's equipment and systems which utilize energy in order to optimize a building's overall energy performance. "EIJI" or "Energy Use Intensity" means the Energy consumed per square foot of a building per year, as calculated by ENERGY s,rARCR) Portfolio ManagerCR) by dividing the total Energy consumed by the building in one (1) year (measured in kBtu or GJ) by the total Gross Floor Area of the building. "EUI -WN" or "Weather -normalized Energy Use Intensity" means the weather - normalized Energy consumed per square foot of a building per year, as calculated by ENERGY s,rAR Portfolio Manager by dividing the total weather normalized Energy consumed by the building in one (1) year (measured in kBtu or GJ) by the total Gross Floor Area of the building. 'T,".NERGY s,rAR Certified" means a building which has earned an ENERGY s,rARCR) Score of 75 or higher, indicating that it performs better than at least seventy-five percent (75%) of similar buildings nationwide and completed an ENERGY s,rAR Certification application and received EPA approval. 'T,".NERGY s,rAR Portfolio Manager" means the U.S. Environmental Protection Agency's (EPA) online application for measuring, tracking, and managing a building's Energy, water and greenhouse gas emission data and benchmarking it's performance, located at bitj-L,://www.(-,,ii(-,,rx.2y 1.,,jr.gov/. .�j ..— 'T,".NERGY s,rAR Score" means a number ranging from I to 100 assigned by the EPA's ENERGY s,rAR Portfolio Manager as a measurement of a building's Energy efficiency, normalized for a building's characteristics, operations, and weather, according to methods established by ITS EPA's ENERGY s,rARCR) Portfolio Manager. "Financial Distress" means a Property that: 1. Had arrears of property taxes or water or wastewater charges that resulted in the Property's inclusion, within the prior two (2) years, on the City's annual tax lien sale list; or 2. Has a court appointed receiver in control of the asset due to financial distress-, or 3. Is owned by a financial institution through default by the borrower; or 2021-02-16 Agenda Packet Page 224 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 6 4. Has been acquired by a deed in lieu of foreclosure; or 5. Hasa senior mortgage subject to a notice of default. "Gross Floor Area" or "GFA" means the total number of square feet measured between the principal exterior surfaces of enclosing fixed walls. 'rhis includes all fully enclosed space within areas inside the outside surfaces of the exterior walls of the building(s) including lobbies, tenant areas (occupied and unoccupied), common areas, meeting rooms, offices, break rooms, atriums (count the base level only), restrooms, elevator shafts, stairwells, mechanical equipment areas, basements, storage rooms, mechanical space such as boiler rooms, elevator shaft, hallways, stairwells, and connecting corridors between buildings. This does not include exterior spaces, balconies, patios, exterior loading docks, driveways, covered walkways, outdoor play courts (tennis, basketball, etc.), parking, open-air stairwells, breezeways, interstitial plenum space between floors (which house pipes and ventilation), or crawl spaces. "High Performance Building" A Property that submitted a Benchmarking Report for its most recent benchmarking compliance deadline and either (i) achieved a Verified ENERGY s,rAR Score of 80 or greater or (ii) achieved ENERGY s,rAR Certification, or (iii) achieved LEED Existing Building Certification for three (3) of five (5) preceding years. "Industrial Occupancy" means any building or portion thereof classified under occupancy groups F-1 and F-2 ("Factory and Industrial") or H-1, H-2, H-3, H-4, and H-5 ("High Hazard") under California Code of Regulations Title 24 Section 302 (2016) as amended. "Master Metering" or "Master Metered" means measuring a buildings electricity or gas consumption for the purposes of utility billing from multiple tenant units together, rather than using individual meters or sub -meters for each dwelling units. "Mechanical Equipment" means centralized building systems or devices, that are fixed in a location for uses associated with structures, and relating to water use, drainage, heating, ventilating, air conditioning, and similar purposes. "Multifamily Property" means a residential Property that contains five (5) or more Multifamily Dwelling Units. "Nonresidential Property" means a Property or part thereof used for purposes other than human habitation. "Owner" An individual, individuals, or entity possessing title to a Property, the board of directors, or managing partners in the case of a cooperative apartment corporation, association, or partnership, or a master tenant in a triple net lease arrangement, or the authorized representative thereof. 2021-02-16 Agenda Packet Page 225 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 7 "Previous Baseline Year" means a Covered Property's first year submitting a Benchmarking Report pursuant to this section or CA Assembly Bill 802 if applicably, or, the second to last year in which the Covered Property was subject to the Conservation Requirements, whichever is later. "Property" means any of the following: 1. A single building-, 2. A campus of two (2) or more buildings which are owned and operated by the same party, have a single shared primary function, and consisting of: a. Buildings that are behind a common utility meter or served by a common mechanical/electrical system (such as a chilled water loop) which would prevent the Owner from being able to easily determine the Energy use attributable to each of the individual buildings; and/or b. Buildings or parts of buildings that have an individual Gross Floor Area of less than 20,000 square feet. "Retro -Commissioning" means a systematic process for optimizing existing systems relating to building performance through the identification and correction of deficiencies in such systems. "Significant Common Load" means a multifamily residential with Master Metering, Mechanical Equipment or where the total non -rentable portion of the Gross Floor Area is 10,000 square feet or more. "Site EIJI (Energy Use Intensity)" means the Site Energy Use divided by the property's Gross Floor Area as calculated by ENERGY s,rARCR) Portfolio Managerg. "Site Energy Use" means the total amount of all the energy a property consumes on-site, regardless of the source, as calculated by ENERGY s,rARCR) Portfolio ManagerCR). It includes energy purchased from the grid or in bulk (which are the amounts on utility bills), as well as renewable energy generated and consumed on-site such as from solar and wind (excess renewable energy generate on-site and sold to the utility is excluded from site energy use). "Source EIJI (Energy Use Intensity)" means the Source Energy Use divided by the property's Gross Floor Area as calculated by ENERGY s,rARCR) Portfolio Managerg. "Source Energy Use" means the total amount of raw fuel that is required to operate a property, as calculated by ENERGY s,rARCR) Portfolio Managere. In addition to what the property consumes on-site, Source Energy Use includes losses that take place during generation, transmission, and distribution of the energy. 2021-02-16 Agenda Packet Page 226 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 8 "Verified ENERGY s,rAR Score" means an ENERGY s,rAR Score based on data that has been verified by a Professional Engineer (PE) or Registered Architect (RE). D. BenchmarkingRequiremenls. Owner shall Benchmark in accordance with the following on or before the compliance deadlines specified in Section 15.26.050(6)(1): (1) Establish an ENERGY s,rAR Portfolio Manager account (if Owner has not already done so), add Covered Properties completing all required fields (if Owner has not already done so), and maintain current all required fields. (2) Annually collect data, according to the schedule set forth in Section 15.25.050(f,')(1)(a) related to the property's total energy usage for the entire prior calendar year in accordance to the latest guidance under Building Energy Use Data Access, Benchmarking, and Public Disclosure Regulations, California Code of Regulations, Title 20, Division 2, Chapter 4, Article 9, Section 1680, and following, including, but not limited to, those related to obtaining customer consent. (3) Annually submit an energy benchmarking to the Conservation Section report according to the schedule set forth in Section 15.25.050(F)(1)(a). 'rhe energy benchmarking report shall be generated using ENERGY s,rAR Portfolio by responding to the Conservation Section's designated Data Request for the appropriate compliance year. (4) Benchmarking Reports shall at minimum include the following: a. Descriptive Information. Basic descriptive information to track and report a property's compliance with this Chapter, including, but not limited to, the property address(es), Gross Floor Area, property type, year(s) built, and the individual or entity responsible for the Benchmarking Report; and b. Energy Information. Information necessary to Benchmark Energy usage shall be determined by the Conservation Section and shall include, at a minimum, the following information and derivatives thereof: i. 'rhe ENERGY s,rAR Portfolio Manager ENERGY s,rAR Score for the property, and ENERGY s,rAR certification status, where available; and ii. 'rhe weather -normalized Site and Source Energy Use (kB,rtj) and Energy Intensity per unit area per year (kB,rtj per square foot per year) for the property; and 2021-02-16 Agenda Packet Page 227 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 9 iii. 'rhe Site and Source Energy Use (1<13'r[J), and Energy Use Intensity (EIJI) per unit area per year (1<13'ru per square foot per year) for the property; and iv. 'rhe annual carbon dioxide equivalent emissions due to Energy use for the Property as estimated by ENERGY s'rAR Portfolio Manager; and v. Monthly and annual Site energy use by energy type and share of energy use supplied by on and off-site renewables. (5) Starting in 2023, Owners may be assessed an annual Benchmarking Filing Fee to recover the costs of implementation, enforcement, administration and infrastructure for this Section. 'rhe City Manager may adjust the Benchmarking Filing Fee annually. (6) Owners shall run the Data Quality Checker available within ENERGY s'rAR Portfolio Manager and shall correct all missing or incorrect information as identified by IHNERGY s'rAR Portfolio Manager prior to submitting the Benchmarking Report to the City. (7) Exemptions from Benchmarking Requirements. a. 'rhe Owner may receive an exemption from filing a Benchmarking Report and remitting the Benchmarking Filing Fee for a reporting year, subject to Conservation Section approval, by submitting evidence in accordance with guidelines set forth by the Conservation Section that any of the following conditions apply: 'rhe entire Property did not have a Certificate of Occupancy or 'remporary Certificate of Occupancy for at least half of the year required to be Benchmarked; or ii. 'rhe entire Property was not occupied, due to renovation, for at least half of the year to be Benchmarked; or iii. A demolition permit for the entire Property has been issued and demolition work has commenced; or iv. 'rhe Property did not receive Energy or water services for at least half of calendar year required to be Benchmarked; or v 'rhe Property is in Financial Distress; or vi. Disclosure of the Property Energy usage data would result in the release of proprietary information that can be characterized 2021-02-16 Agenda Packet Page 228 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 10 as a trade secret or would otherwise violate a customer's right to privacy under the California Constitution or other applicable law. E. Direct Disclosure and Public Di,0osure Requirements. Properties shall comply with Sections 15.26.050(E)(1), (2), and (3) below. (1) Direct Disclosure of Benchmarking Report. Owners shall provide a web link or hard copy to their most recent Benchmarking Report to: a. Existing tenants and current owners with an interest of 5% or more, within 90 days of annual Benchmarking compliance deadline. b. Prospective buyers prior to close of sale and prospective tenants prior to lease signing or lease renewal. (2) Direct Disclosure of Audit and Retro -Commissioning Reports. Owners shall provide Energy Audit and Retro -commissioning Reports produced for compliance with Section 15.26.050(f,')(4), if applicable, to all existing residential and nonresidential tenants within 90 days of the Conservation compliance deadline. Owners shall confer with any nonresidential tenants that pay utility costs, identifying energy efficiency investment opportunities and assessing the potential for mutually beneficial co -investment arrangements in accordance with procedures established by Conservation Section within 180 days of the Conservation compliance deadline. (3) Public Disclosure. 'rhe City will make data public. a. 'rhe Conservation Section shall make the following information available to the public on the Internet, as reported by Owners, and update the information at least annually: i. Summary statistics on overall compliance with Section; and ii. Summary statistics on overall energy consumption of Covered Properties subject to this Section derived from annual benchmarking reports; and iii. For each building subject to this Section: iv. Address and property use type(s); and v. Annual summary statistics derived from the submitted benchmarking report, including all information required under Section 15.26.050(D)(4). 2021-02-16 Agenda Packet Page 229 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page I I b. Exemption. Properties with more than half of Gross Floor Area used for Industrial Occupancy are exempt from the Public Disclosure requirements (Section 15.26.050(1-,",)(3)). F. Conservation Requirements. Conservation Requirements apply according to the compliance deadlines specified in Section 15.26.050(G). Properties meeting the requirements for a High Performing Building (Section 15.26.050(C)) are exempt from all requirements in Section 15.26.050(f,'). (1) Multifamily properties are subject to the Multifamily Prescriptive Measure requirements (Section 15.26.050(F)(6)) by their first five (5) year Conservation Requirement deadline. In addition, multifamily properties with Significant Common Load must meet either the Performance Targets (Section 15.26.050(f,')(3)), or, the Audit Requirement (Section 15.26.050(F)(4)) and Minimum Improvement requirement (Section 15.26.050(f,')(5)). (2) Non-residential must meet either the Performance Targets (Section 15.26.050(f,')(3)), or, the Audit Requirement (Section 15.26.050(F)(4)) and Minimum Improvement requirement (Section 15.26.050(f,')(5)). (3) Performance Targets. Every five (5) years demonstrate that: a® Property has decreased its Site EUI -WN by at least the Improvement Target in Table 15.26.050(f,')(3)(a) below from Baseline Year-, Table 15.26.050(F)(3)(a) Baseline Year ENERGY STAR Score Improvement Target 0-45 30% 46-65 20% 66-79 10% 804- None b. Or if Property was not eligible for an ENERY STAR Score in the baseline year, Property has reduced its weather -normalized Site EIJI by at least the Improvement Target in Table 15.26.050(F)(3)(b) below from Baseline Year. mm"HIMMUM Baseline Year Site ELJI-WN Improvement Target (kBTLJ / sf / year) 2021-02-16 Agenda Packet Page 230 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 12 804- 30% 51-79 20% 19-50 10% 0-18 None c. 'rabies 15.26.050(F)(3)(a) and 15.26.050(F)(3)(b) shall be updated periodically by the Conservation Section subject to City Council approval. (4) Audit Requirement. Every five (5) years an Energy Audit and Retro - Commissioning shall be performed in accordance with the following specifications. a. Energy Audit and Retro -Commissioning Specifications Audit rype. A I -eve] 1, or greater, Energy Audit in conformance with the current ASHRAE Standard 211 "Commercial Building Energy Audits" at the time the Audit is initiated. Before Owners choose an ASHRAE Level I Energy Audit they must obtain also obtain a quote for a more extensive audit and discuss the additional value with the audit provider. Owner's shall document fulfillment of this requirement as specified by the Conservation Section. ii. Retro -Commissioning. Retro -commissioning requirements shall be performed in accordance with industry standard practices, including current ASHRAE Guideline 0.2 "Commissioning Process for Existing Systems and Assemblies" at the time the Retro -Commissioning is initiated. 1. Applicability. Retro -commissioning requirements shall apply to properties that meet all of the following: a. At least 50,000 square feet of conditioned space-, b. Existing Mechanical Equipment-, c. Digital controls in place that are reparable or in good working order in the opinion of the auditor. 2. Exemption. Properties that have experienced major changes in operations during prior six months or have planned to make major changes in the following year. rhe Retro -Commissioning of the Base Building Systems shall include, at minimum, the following: 2021-02-16 Agenda Packet Page 231 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 13 Heating, ventilation, air conditioning (HVAC) systems and controls, and b. Indoor lighting systems and controls; and c. Water heating systems; and d. Renewable energy systems. iii. Audit Professional Qualifications. Audits shall be signed and performed directly by or under the direct supervision of, an individual whose job duties do not regularly occur at the Property and who has two or more years of auditing experience and possesses one or more of the certifications specified in Table 15.26.050(F)(4)(v) or other qualifying certifications as specified by the Conservation Section. iv. Retro -Commissioning Professional Qualifications. Retro - Commissioning shall be performed directly by or under the direct supervision of, an individual whose job duties do not regularly occur at the Property and who has two or more years of auditing experience and possesses one or more of the certifications specified in Table15.26.050(1)(4)(v) or other qualifying certifications as specified by the Conservation Section. v. Qualifying Professional Certifications. Table 15.26.050 ff)(4)(v) Qualifying Professional Certifications Professional Qualifying Certification ----------Type ----------- ------------------------------------------------------------------------------------------------------------ Energy Audit 1. An accredited certification that has been designated a or Retro- "Better Buildings Recognized Program" by the DOE Commissioning meeting the criteria set forth in the Better Buildings Professional Workforce Guidelines (BBWG) for Building Energy (any listed) Auditors or Energy Managers 2. A Professional Engineer (PE) registered in the State of California Energy Audit 1. Certified Energy Auditor (CEA) or Certified Energy Professional Manager (CEM), issued by the Association of Energy (any listed) Engineers (AEE) 2. Certified Facilities Manager (CFM), issued by the International Facility Management Association (IFMA) 3. System Maintenance Administrator (SMA) or System Maintenance Technician (SMT), issued by Building Owners and Managers Institute 130MI International 2021-02-16 Agenda Packet Page 232 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 14 vi. Energy Audit and Retro -Commissioning Report. A report (or reports) of the Energy Audit and Retro -Commissioning (where applicable), completed and signed by a qualified Audit Professional and qualified Retro -Commissioning Professional, shall be submitted electronically to the Conservation Section via the Conservation Section's designated Audit Report 'template, or via other means as specified by the Conservation Section. Completed Reports shall include all items designated as required, including but not limited to the following: i. the date(s) that the Energy Audit and Retro - Commissioning (if applicable) were performed; and 2. Identifying information on the auditor provider (and Retro - Commissioning provider if applicable); and 3. Information on the base building systems and equipment-, and 2021-02-16 Agenda Packet Page 233 of 395 4. High Performance Building Design Professional (I-IBPD) or Building Energy Assessment Professional (BE P), issued by the American Society of Heating, Refrigerating, and Air -Conditioning Engineers (ASHRAE) 5. For Audits of multifamily residential properties only, a Multifamily Building Analyst (MFBA), issued by thLBuildinLPerformance Institute (BPIj_ Retro- I. Certified Commissioning Professional (CCP), issued Commissioning by the Building Commissioning Association (BCA) Professional 2. Certified Commissioning Authority (CxA) or (any listed) Certified Commissioning Technician (Cx'l), issued by the AABC Commissioning Group (ACG) 3. Certified Building Commissioning Professional (CBCP) or Existing Building Commissioning Professional (EBCP), issued by the Association of Energy Engineers (AEE) 4. Certified Professional certified by the National Environmental Balancing Bureau (NEBB) 5. Commissioning Process Management Professional (CPMP), issued by American Society of Heating, Refrigerating, and Air -Conditioning Engineers (ASHRAE) 6. Accredited Commissioning Process Authority Professional (ACPAP) approved by the University of Wisconsin vi. Energy Audit and Retro -Commissioning Report. A report (or reports) of the Energy Audit and Retro -Commissioning (where applicable), completed and signed by a qualified Audit Professional and qualified Retro -Commissioning Professional, shall be submitted electronically to the Conservation Section via the Conservation Section's designated Audit Report 'template, or via other means as specified by the Conservation Section. Completed Reports shall include all items designated as required, including but not limited to the following: i. the date(s) that the Energy Audit and Retro - Commissioning (if applicable) were performed; and 2. Identifying information on the auditor provider (and Retro - Commissioning provider if applicable); and 3. Information on the base building systems and equipment-, and 2021-02-16 Agenda Packet Page 233 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 15 4. A list of retrofit measures available to the Owner that can reduce energy use, and/or cost of operating the Property including: a. costs of each measure; and b. an estimate of the energy and operating cost savings associated with each measure; and c. simple payback of each measure; and d. identification of at least 2 contractors able to perform measure. 5. Identification or recommendation of measures applicable to tenant -controlled spaces, including estimates for energy and operating savings for all affected tenants; and 6. Identification or recommendation of measures needed to meet applicable Performance 'targets; and 7. Identification or recommendation of measures needed to meet Minimum Improvement, if applicable. 8. Identification of all rebate, incentive and financing programs available to property and/or in association with specific measures; and 9. If applicable, a list of all the Retro -Commissioning process activities undertaken and retro commissioning measures completed; and 10. A list of all retrofit measures taken (if applicable); and 11. Functional performance testing reports (if applicable),- and 12. Operational training conducted (if applicable); and 13. Attestation that an ASHRAE level 2 Energy Audit and (if applicable) ASHRAE 0.2 Retro -Commissioning process were conducted. (5) Minimum Improvement. Every ten (10) years properties must demonstrate that: 2021-02-16 Agenda Packet Page 234 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 16 a® Property has decreased its Site EIU-WN by at least the Mandatory Minimum Improvement in Table 15.26.050(F)(5)(a) below from the Previous Baseline Year-, ljna�� Baseline Year ENERGY STAR Score Mandatory Minimum Improvement 0-45 15% 46-65 10% 66-79 None 804- None b. Or, if Property was not eligible for an ENERY STAR Score in the Previous Baseline Year, Property has decreased its Site EIU-WN by at least the Mandatory Minimum Improvement in Table 15.26.050(F)(5)(b) below from the Previous Baseline Year. Table 15.26.050(F)(5)(b) Baseline Year Site ELJI-WN (kBTLJ / sf / year) Mandatory Minimum Improvement 804- 15% 51-79 10% 19-50 None 0-18 None c. 'rabies 15.26.050(F)(5)(a) and 15.26.050(F)(5)(b) shall be updated periodically by the Conservation Section subject to City Council approval. d. Exemption: Owners are not required to complete retrofit measures identified or recommended in the most recent audit report for meeting the Minimum Improvement (per Section 15.26.050(F)(4)(a)(vi)(7)) if those measures have a simple payback greater than 13 years, or have a payback period that exceeds the expected useful life of the retrofit measure. If all measures identified per Section 15.26.050(17)(4)(a)(vi)(7) having a simple payback of 13 years or less, and having an expected useful life that is longer than the payback period, are completed, the Mandatory Minimum Improvement percentage in Table 15.26.050(F)(5)(a) or Table 15.26.050(F)(5)(b), as applicable, is waived® (6) Multifamily Prescriptive Measures. Multifamily Residential Properties constructed prior to 2006 must perform the minimum number of measures 2021-02-16 Agenda Packet Page 235 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 17 required in Table 15.25.050(F)(6)(a) within all tenant spaces where utility costs are borne by tenants. Owners may choose any applicable measures from 'l able 15.25.050(F)(6)(b). Measures already in place shall count toward satisfying the minimum number of measures. Where a measure is not applicable it shall count toward satisfying the minimum number of measures. Table 15.26.050(F)(6)(a) Year Built Climate Zone 7 Climate Zone 10 Pre -1978 Choose four (4) Measures Choose five (5) Measures 1978-1991 Choose three (3) Measures 1992-2005 Choose two (2) Measures Table 15.26.050(FI(6)(b Measure Name Description R-38 Attic Add attic insulation in buildings with vented attic spaces to meet Insulation R-38. Air Sealing Apply air sealing practices throughout all accessible areas of the unit. All joints, penetrations and other openings in the building envelope that are potential sources of air leakage shall be caulked, gasketed, weather stripped, or otherwise sealed to limit infiltration and exfiltration. Buildings constructed before 1992 should be sealed to 7 Air Changes per Hour (ACH), and buildings constructed from 1992-2005 should be sealed to 5 ACH, at 50 Pascals pressure difference. Cool Roof For steep slope roofs, install a roofing product rated by the Cool Roof Rating Council (CR C) with an aged solar reflectance of 0.25 or higher and thermal emittance of 0.75 or higher. Duct Sealing Air sea] any accessible ductwork to meet the requirements of the 2016 Title 24 Section 150.2(b)IE. Units with one or more vented combustion appliances are s'rRONGLY RECO -,".LADED to have a BPI Combustion Appliance Safety Inspection performed after duct sealing. LED Lighting Replace low performing screw based lighting with high performing lighting per the requirements of 'ritie 24 Section 150.0(k)I.A,D,G,H and I. 2021-02-16 Agenda Packet Page 236 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 18 Water Heating Water Heater Blanket Add R-6 insulation to the exterior of Package existing residential tank storage water heaters manufactured (if water heater before April 2015. Requirement is waived for water heaters with serves internal tank insulation of at least R-16. individual unit) Hot Water Pipe Insulation Insulate all accessible hot water pipes with R-3 pipe insulation. Low Flow FjjdM Upgrade sink and shower fittings to meet 2016 CA Green requirements, which require maximum flow rates of 1.8 gallons per minute (gpm) for showerheads and kitchen faucets, and 1.2 gpm for bathroom faucets. Windows Replace existing single pane windows with a dual pane product, which has a IT -factor equal to 0.32 or lower and a Solar Heat Gain Coefficient (SHGC) equal to 0.25 or lower. This measure was only evaluated for the pre -1978 vintage, which is assumed to have single -pane, metal -frame windows. Water Heater High F".fficiencyjjeat Pump Water Heatet-. Replace natural gas Replacement storage water heater, or, tank] ess water heater having an Energy (if water heater Factor of .81 or less, with Heat Pump Water Heater with serves Uniform Energy Factor (UF Y,) of at least 3.1 (Northwest Energy individual unit) Efficiency Alliance 'ri er 3). -or- high Efficiency Tankless Water Heatet-. Replace natural gas storage water heater, or, tankless water heater having a Energy Factor of .81 or less, with tank] ess water heater with a minimum Energy Factor of 0.96. Air Conditioner ffigh Efficiency Air Conditioner Replace an existing air Replacement conditioner having a SEER rating of 13 or less with an air conditioner of at least 18 SEF"K -or- high _F"Tficiency Heat Pump Replace an existing air conditioner having a SEER rating of 13 or less with a Heat Pump of at least 18 SEER. (7) Amortization of Pass-through Costs. Where lease terms allow owners to pass on the costs of complying with this section to lessees, should Owner choose to do so, those costs may not be passed through in bulk. Instead they shall be amortized as follows: 2021-02-16 Agenda Packet Page 237 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 19 a. Audit Requirement costs shall be amortized over five (5) years. b. Costs of measure implementation shall be amortized over the expected useful life of the measure. (8) Exemptions. 'rhe following exemptions apply to the Conservation Requirement: a The Property has been occupied less than five (5) years; b. The Property is in Financial Distress-, c. A demolition permit for the entire Property has been issued and demolition work has commenced-, d. The Property has not previously been subject to the Benchmarking Requirement. G. Compliance ,Schedule. Compliance deadlines for the requirements of this section detailed in Mable 15.26.050(G) below. The Conservation Section may grant an extension of time of up to sixty (60) days to file any submittal required by this Section upon request in writing. 'rhe Conservation Section may grant an additional extension up to one hundred eighty (180) days upon an application demonstrating evidence of substantial hardship. Table 15.26.050((1) Compliance Deadlines 2021-02-16 Agenda Packet Page 238 of 395 Compliance Deadline Section 50,000+ square feet GFA 20,00049,999 square feet GFA Benchmarking Requirements May 20th of each year March 20th of each year Section 15.26.050 D. beginning 2022 beginning 2022 Direct Disclosure and Public Disclosure Requirements Beginning September 1, 2022 Beginning September 1, 2022 Section 15.26.050 (1 - Conservation Every five (5) years beginning Every five (5) years beginning Requirements 2023 or later according to a 2026 or later according to a Section 15.26.050 (1,) (1- schedule to be determined by schedule to be determined by the 4, 7, �)_ the Conservation Section Conservation Section_ Minimum Improvement Every ten (10) years beginning Every ten (10) years beginning in Requirements in the year 2028 or later the year 2031 or later according Section 15.26.050 F 5 _Iccordin to a schedule to be 2021-02-16 Agenda Packet Page 238 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 20 determined by the to a schedule to be determined by Conservation Section the Conservation Section. Multifamily Prescriptive 2023 or later according to a 2023 of later according to a Upgrades schedule to be determined by schedule to be determined by the Section 15.26.050 (F)(6) --- the Conservation Section ------------------------ ConservationSection --------------- H. RecordAllaintenance. 'rhe Owner shall maintain records related to Benchmarking, Audits and Retro -Commissioning, and Efficiency Improvement Measures including, but not limited to, the Energy and water bills and reports or forms received from tenants and/or utilities. Such records shall be preserved for a period of five years. When the Property is sold, copies of the records shall be given to the new Owner. Ownership of the property in Portfolio Manager must also be transferred to the new owner. I. Toilure to Comply. It shall be unlawful for any person to violate any provision or to fail to comply with any of the requirements of this section shall be subject to the following remedies and enforcement measures: (1) A Notice of Failure to Comply shall be issued to the Owner specifying the provisions violated and including an order to correct outlining steps necessary to bring Property back under compliance; and (2) On the 60th day following issuance of a Notice of Failure to Comply, the following may be issued. a. Monetary Fines. Monetary fines may be levied up to the amounts shown in 'l able 15.26.050(l)(2)(a) on a per incident basis depending on Property G FA. Table I # 1,1[1)(Ua) Maximum Fine Amounts Property Size (square feet) Aniount Per Incident 20,000-49,999 GFA Up to $750 50,000-99,999 GFA Up to $1,500 100,000+ GFA Up to $2,250 b. City may take actions against the Property that could potentially impede financing, leasing or sale transactions for the Covered Property. c. Public disclosure of non-compliance. (3) Monetary penalties for non-compliance shall be waived until January 1, 2023. 2021-02-16 Agenda Packet Page 239 of 395 Draft Multifamily and Commercial Benchmarking and Conservation Ordinance Page 21 J. Implementation Authority. 'rhe City Manager may adopt rules and regulations for the implementation of this section including, without limitation, supplementing the list of qualified measures set forth in table 15.26.050(F)(6)(b) as new energy efficient technologies or materials are developed. Section. H. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. 'rhe City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section. III® Construction. 'rhe City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section. W. Effective Date 'rhis ordinance shall take effect on the latter to occur of the following: the 90th day after its final passage, and approval by the California Energy Commission. Section. V. Publication. 'rhe City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Director of Economic Development Approved as to form by Glen R. Googins 2021-02-16 Agenda Packet Page 240 of 395 Multifamily and Commercial Building Benchmarking and Conservation Ordinance Policy Overview • Require annual energy benchmarking for buildings 20,000 square feet or larger • Enhance market transparency for building efficiency by making energy performance data available online and requiring buildings to disclose performance to existing and prospective owners and lessors • Require buildings to measurably improve their energy performance over each 5 -year period or undertake anaudit, and incertain cases, Retro -Commissioning • If the least efficient buildings do not make efficiency progress on their own by the second 5 -year deadline, they will be required to make minimum improvements (10-15%) identified as cost-effective intheir audit • For Multifamily Buildings: o Require one-time prescriptive upgrades inside older multifamily rental units where tenants pay energy bills o Limit audits tobuildings with significant owner -paid energy use • Gradually phase-in requirements to give the affected buildings, energy performance industry and city staff time tobuild capacity • Allow flexibility for buildings to take different paths to efficiency and exemptions for buildings that are already relatively efficient * Avoid requiring upgrades ifthat are not cost-effective 2021-02-16 Agenda Packet Page 241 of 395 PolicySUrArAary—BenchrAarking and Conservation Ordinance Page 2of 5 Proposed Requirements 1. Applies to properties consisting of individual parcels or joined parcels containing a combined gross floor area of at least 20,000 square feet. Residential condominium units as well as state, federal and certain local government buildings are exempt. 2. Properties must annually submit benchmarking reports via Energy Star Portfolio Manager bythe deadline starting in2O22. Starting in2O23,anannual benchmarking fee may be assessed to recover program costs based on afee study. Estimated at approximately $110. 21 Annual Deadlines. a. Properties 50,000 sq ft—May 201h of each year. b. Properties 20,00-50,00sq ft—March 2Qmofeach year. 2.2. Properties meeting the following will be exempt: a. Unoccupied b. Scheduled for demolition C. Under financial distress d. No energy or water service 3. The City will make benchmarking data available tothe public for all properties except when the majority of floor area is dedicated to industrial or manufacturing uses. For all properties, owners must provide a web link to their most recent benchmarking report ora hard copy, in the following situations. 3.1. Toexisting owners and lessees within 3Odays offiling. 3.2. To prospective buyers prior to close, and prospective lessees prior to lease signing, including lease extensions. 4. Every five years, properties must meet the criteria for ahigh-performing building (4.1) or perform one of two conservation requirements (4.2 or 4.3). Multifamily properties must meet the multifamily conservation requirements of (4.4). Starts in 2023 for 50,000 sqft+ buildings and 2O2Gfor 2O,OOO-5O,OOOsqftbuildings. 41 High Performing Buildings Criteria (one ofthe foUovvinQ): a. Achieve Verified Energy Star score of 80 or higher during preceding year Achieve Energy Star certification during preceding year Achieve LEEDExisting Building Certification 3of5preceding years 4.2. Audit and Retro -commissioning Requirement. a. Conduct ASHRAE Level 1, or greater, audit. Owners must obtain quote and discuss value of more extensive audit specification (ie.Level 2). b. Conduct AHRAE 0.2 Retro -commissioning for buildings with: 1. Atleast 5O,OOO+sqftconditioned space 2. Existing mechanical equipment 3. Digital controls that are repairable or in good working order in the opinion of the auditor 4. Exempt if major changes in operation have occurred in prior six months or planned during neatyear C. Submit Audit and Retro -commissioning Report to City electronically using the "Audit Template" online tool produced bythe DOE. Report must include: 1. Energy Conservation Measures (ECMs) needed to meet the applicable Energy Performance Requirements (43 column Aand column B) Prepared for Chula Vista November 2020 v3,6 Eric Engelman I Energy Policy Consulting 2021-02-16 Agenda Packet Page 242 of 395 PolicySUrArAary—BenchrAarking and Conservation Ordinance 2. All applicable rebate, incentive and financing programs 3. Identification ofatleast 2contractors able toperform each ECM 4. ECK4sapp|icab|etotenant-oontroUedspaces,vvheretenantpaysenerQybiUs,mustspedfy annual tenant savings d. Owners must meet and confer with tenants that pay energy costs to discuss energy efficiency investment plan and complete City designated co -investment work sheet 43. Energy Performance Requirement. Asanalternative tothe requirements of 4.2. properties may demonstrate a reduction in EUI during 5 years prior via Energy Star ofat least the amount shown below in column A. By the second 5 -year conservation deadline all properties must achieve the minimum improvement shown in column B provided the ECMs required have a simple payback of 13 years or less. (Meeting column B criteria does not eliminate the need to meet the Audit and Retro - commissioning requirements of 4.2.) a. For Propertiesthat eligible for Most Recent Energy Star (A) Minimum Improvement to (B) Mandatory Minimum Score be Exempt from Audit Improvement by 2 nd Requirement Conservation Deadline 66-79 10% None 80+ None None ir properties NOT eligible Baseline Site Energy Use (A) Minimum Improvement to (B) Mandatory Minimum Intensity (weather be Exempt from Audit Improvement by 2nd normalized) Requirement Conservation Deadline 19-50 10% None 0-18 None None 4'4. Multifamily Conservation Requirement. Multifamily residential properties with separately metered units paid by tenants must perform the minimum number of prescriptive measures specified in 4.4 (a),choosing from the list in4.4(b). Any measures from 4.4(b)already completed may becounted toward the minimum number in4/(a). Multifamily residential properties with master -metered units orasignificant common load must meet the requirements of4.2or43aswell. Year Built Climate Zone 7 Climate Zone 10 Pre -1978 Choose 4 Measures Choose 5 Measures 1978-1991 Choose 3 Measures 1992-2005 Choose 2 Measures Prepared for Chula Vista November 2020 v3,6 Eric Engelman I Energy Policy Consulting 2021-02-16 Agenda Packet Page 243 of 395 Policy Summary —Benchmarking and Conservation Ordinance Page 4 of 5 b. Measure Option List below: Measure Name Description R-38 Attic Add attic insulation in buildings with vented attic spaces to meet R-38. Insulation Air Sealing Apply air sealing practices throughout all accessible areas of the building. All joints, penetrations and other openings in the building envelope that are potential sources of air leakage shall be caulked, Basketed, weather stripped, or otherwise sealed to limit infiltration and exfiltration. Buildings constructed before 1992 should be sealed to 7 Air Changes per Hour (ACH), and buildings constructed from 1992-2005 should be sealed to 5 ACTH, at 50 Pascals pressure difference. Cool Roof For steep slope roofs, install a roofing product rated by the Cool Roof Rating Council (CRRC) with an aged solar reflectance of 0.25 or higher and thermal emittance of 0.75 or higher. Duct Sealing Air seal all ductwork to meet the requirements of the 2016 Title 24 Section 150.2(b)IE. Homes with one or more vented combustion appliances are STRONGLY RECOMMENDED to have a BPI Combustion Appliance Safety Inspection performed after duct sealing. LED Lighting Replace low performing screw based lighting with high performing lighting per the requirements of Title 24 Section 150.0(k)I.A,D,G,H and I. Water Heating Water Heater Blanket Add R-6 insulation to the exterior of existing residential tank Package storage water heaters manufactured before April 2015. Requirement is waived for water heaters with internal tank insulation of at least R-16. Hot Wq1tr Pipe Insulation. Insulate all accessible hot water pipes with R-3 pipe insulation. Low Flow Fittings. Upgrade sink and shower fittings to meet current CALGreen requirements, which require maximum flow rates of 1.8 gallons per minute (gpm) for showerheads and kitchen faucets, and 1.2 gpm for bathroom faucets. Windows Replace existing single pane windows with a dual pane product, which has a U - factor equal to 0.32 or lower and a Solar Heat Gain Coefficient (SHGC) equal to 0.25 or lower. This measure was only evaluated for the pre -1978 vintage, which is assumed to have single -pane, metal -frame windows. Water Heater High Efficiency Heat Pump Water Heater Replace natural gas storage water heater, Replacement or, tankless water heater having an Energy Factor of .81 or less, with Heat Pump (if water heater Water Heater with Uniform Energy Factor (UEF) of at least 3.1 (Northwest Energy serves individual Efficiency Alliance Tier 3). unit) -or- Prepared for Chula Vista November 2020, v3,6 Eric Engelman I Energy Policy Consulting 2021-02-16 Agenda Packet Page 244 of 395 PolicySUrArAary—BenchrAarking and Conservation Ordinance High Efficiency Tankless Water Heater Replace natural gas storage water heater, or, tanNessvvater heater having an Energy Factor of.81 or less, with tanNessvvater heater with aminimum Energy Factor ofO.9G. 4.5 Exemptions. Properties meeting one of the following will be exempt from 4.1-4.4: b. Less than 5 years old C. Scheduled for demolition d. Under financial distress e. Not required to benchmark 5. NONCOMPLIANCE: Failure to comply will result in the following. 51 Notice. Notice of noncompliance will be sent giving the property 60 days to correct.After, the following penalties will apply. 5.2. Public Disclosure of Non-compliance 53. Fines. After January 1,2O23 failure tocorrect anotice ofnoncompliance may result inafine ranging from $75O-$2,5OOdepending onbuilding size. Prepared for Chula Vista November 2020 v3,6 Eric Engelman I Energy Policy Consulting 2021-02-16 Agenda Packet Page 245 of 395 MIN" M, Al"U'l WIN,, BuildinPerformance g Ordinance Action Plan calls for "building performance reporting and public disclosure" policies and directed city staff to "develop a Residential and Commercial Energy Conservation Ordinance for City Council consideration." The plan set a target of Goals retrofitting 20% of multifamily and commercial A Help buildings save energy space to achieve 50% savings by 2035° and reduce utility bills 70 Encourage market Why existing buildings? The City of transparency for building Chula Vista is committed to meeting its GHG energy efficiency targets. And energy consumption from A Reduce carbon emissions buildings is a significant sources of community wide GHG emissions. New buildings tend to have a very low (or even net -zero) carbon footprint due to strict new construction standards. However older buildings that have not yet implemented money -saving energy efficiency upgrades consume relatively large amounts of energy. Why a building performance ordinance? Building performance ordinances (BPOs) start by getting easy -to -digest energy performance information in the hands of building owners and users. This improves market transparency and facilitates management of building energy costs. Buildings that are relatively energy efficient tend to be rewarded when the market can more easily value their lower energy costs. Similarly, for buildings that make steady energy efficiency progress, BPOs strengthen the incentive to improve. On average, buildings that benchmark each year see a steady decline in utility costs and energy consumption of about 2-3% per year. For less energy efficient buildings that do not experience progress after a few years of benchmarking, Chula Vista's BPO creates a pathway for implementing energy efficiency improvements that make financial sense. Lower performing buildings that do not meet performance targets by their fifth benchmarking year will be required to conduct energy audits to identify savings opportunities. Following an audit, those building owners are given another 5 years to make minimum improvements identified by the audit that pay for themselves in a reasonable amount of time. 2021-02-16 Agenda Packet Page 246 of 395 DRAFT - Proposed Chula Vista Building Performance Ordinance About Building Performance Ordinances Buildings are one of the largest sources of a City's emissions Buildings that track and rate their energy performance (a.k.a. benchmarking) typically attain an average annual energy savings of 2-3% Similar ordinances have been adopted in more than 30 U.S. U.S. City, County, and State Policies for Existing Buildings: Benchmarking, Transparency, and Beyond Seattle Portland Berkeley .............. San FranciscoM/1111 -' S an Jose "M 1/11 Los Angeles San Diego 1 '0 TRANS-c—ION 0"'Y""W 2020 M.H,I and nt,,d',/2.20 South Portland Cambridge Boston New York City � Ph,ladelphia 'atg'-'rYCo. MD - Washington, DC Roquirernents of achieving performance targets or completing additional actions Benchmarking policy for public, C-Offlunercial, and ruLIltif,ArnilY L)WIdings adopted Benchi-narking policy for public and corni-nercizil buildings adopted *As proposed 2021-02-16 Ageiida Packet Page 247 of 395 DRAFT - Proposed Chula Vista Building Performance Ordinance Commercial buildings • over 20,000 sqft Multifamily buildings over 20,000 sqft Benchmark Report building energy use annually Disclose Share ENERGY STAR Score with owners and tenants Audit If buildings do not meet performance targets after,' they must conduct an ewer to identify savings opportur Improve After an audit, low performi must show minimum improv 5 adcrifional_years Since 2018 Since 2019 Starting 2023 Starting 2028 Starting 2022 Starting 2022 Starting 2027 Starting 2031 I Under California's Building Energy Benchmarking Program (AB802), buildings larger than 50,000 sqft are already required to benchmark and disclose annually. Commercial buildings began in 2018, and Multifamily in 2019. Starting 2022, buildings will submit their benchmarking report to the City of Chula Vista instead of the state. 2021-02-16 Agenda Packet Page 248 of 395 DRAFT - Proposed Chula Vista Building Performance Ordinance FA Submit energy data All Provide benchmarking report to current and prospective owners and tenants Buildings with ENERGY STAR score below 80 that do not meet Performance Targets after 5 years of benchmarking (10-30%2 energy use reduction) Buildings with ENERGY STAR score below 65 that do not meet Minimum Improvement requirements after 10 years of benchmarking (10-15%4 energy use reduction) Conduct an ASHRAE Level I Audit (including Retro - commissioning where appropriate3) Implement cost- effective measures identified in the audit in order to reduce energy consumption at least 10-15%4 Annually from 2022 Starting 2022 Every 5 years, beginning 2023 through 2026 Every 10 years, 2 Applicable percentage depends on a building's starting score as follows: Score of 0-45, 30%; Score Of 46-65 20%; Score of 66-79, 1 Off® 3 Retro -commissioning is required with an audit for buildings larger than 50,000 square feet that have mechanical building equipment and serviceable digital controls 4 Applicable percentage depends on a building's starting score as follows: Score of 0-45, 15%; Score Of 46-65 10% 2021-02-16 Agenda Packet Page 249 of 395 DRAFT - Proposed Chula Vista Building Performance Ordinance P.m M Buildings constructed before 2006 Buildings with significant common loads and a score below 80 that do not meet Performance Targets after 5 years of benchmarking (10-30%2 energy use reduction) Buildings with significant common loads and a score below 65 that do not meet Minimum Improvement requirements after 10 years of benchmarking (10-15%1 energy use reduction) Submit energy data Provide benchmarking report to current and prospective owners and tenants Implement basic one-time upgrades in rental units Conduct an A5 RAE Level I Audit for commissioning where appropriate') Implement cost- effective measures identified in the audit in order to reduce energy consumption at least 10-15%4 for common areas Annually from 2022 Starting 2022 10=1 Every 5 years, beginning 2024 through 2027 Every 10 years, beginning 2029-2032 I Multifamily buildings with at least 10,000 scift of common floor area or master -metered apartments 2021-02-16 Agenda Packet Page 250 of 395 DRAFT - Proposed Chula Vista Building Performance Ordinance What is the Audit Requirement? If a building does not achieve specific improvement thresholds (a 10-30% reduction in EIU depending on starting score) after 5 years of benchmarking, they must conduct an ASHRAE Level I Energy Audit. Buildings over 50,000 sqft with central equipment and digital controls are also required to conduct retro -commissioning. Buildings with a score below 60 then have another 5 years to make a minimum 10-15% improvement. What if a building is already efficient? Buildings with an ENERGY STAR Score of at least 80 are exempt from the Audit requirement. We estimate that about 40% of Chula Vista buildings already have a score of at least 80. What is the Minimum Improvement Requirement? By the tenth year of benchmarking, buildings that still have a score below 65 need to demonstrate a minimum improvement (a 10-15% reduction in EIU depending on starting score). Owners may implement cost-effective recommendations from their energy audit or choose other measures that reduce their energy consumption by 10-15%. We estimate 75% of Chula Vista buildings already have a score above 65. Why are improvement percentages given in ranges? It is easier for less efficient buildings to improve by a given percentage than for buildings that are already more efficient. In recognition of this, and to incentivize more efficient buildings, the ordinance uses score tiers. See Footnotes 2 through 5 for score tier details. What about Multifamily Buildings? Multifamily rental apartments that have not already been updated with basic energy efficiency updates like LED lighting and low -flow water fixtures will be required to make a few one-time updates, choosing from a menu of options. Multifamily buildings with common spaces larger than 10,000 sqft are also subject to the audit and improvement requirement. What about the split -incentive issue with commercial leases? Building owners are required to share audit findings with their leasees and discuss whether co -investment in energy -efficiency makes sense for both parties. Questions/Feedback? To learn more or provide comments, please contact Barbara Locci at 2021-02-16 Agenda Packet Page 251 of 395 DRAFT - Proposed Chula Vista Building Performance Ordinance How do buildings Benchmark? Starting in 20221, buildings will need to report their whole -building energy usage each year to the City of Chula Vista. This is done through an online process using ENERGY S"I'AR :�'(Drlf(DHO Mana(,.- er, a free online tool administered by the EPA. ...................................................................................................................... ...................... 0 .......... Portfolio Manager rates building energy efficiency, providing an ENERGY STAR Score on a scale of 1-100, The score is computed by comparing a building's Energy Use Intensity (EIU) to similar buildings nationally while adjusting for size and weather. Nearly 25% of U.S. commercial buildings already benchmark in ENERGY STAR Portfolio Manager. You can directly connect ENERGY STAR Portfolio Manager to SDG&E to import a building's energy data. The tool also lets you auto -fill Chula Vista's Benchmarking report template, performs a quality check, and allows you to submit directly to the City electronically. 2021-02-16 Agenda Packet Page 252 of 395 I'll 11 1 11! �,q at March 26, 2020 TO: Cory Downs, Conservation Specialist, City of Chula Vista FROM: Eric Engelman, Principal, Energy Policy Consulting SUBJECT: Cost -Effectiveness of Proposed Building Performance Ordinance This memo assesses the cost effectiveness of the City's draft Multifamily and Commercial Benchmarking and Conservation Ordinance (v1.5). It particular, it examines three requirements in particular: 1. The ASH RAE 0.5 Retro -commissioning requirement 2. The ASHRAE Level 1 Audit requirement 3. The minimum improvement requirement The ordinance's prescriptive multifamily requirements are not discussed in this memo as they are supported by the statewide 2019 Existing Residential Cost-effectiveness Study. Cost-effectiveness for the ordinance's audit and retro -commissioning requirements is supported by commonly cited cost and savings figures from the literature. Both were found to be cost-effective. Calculations and Methodology are described below. 1.0 Cost and Saving a from Retro-c�ommissioning The largest study found to date of retro -commissioning costs and savings found that average costs come to 30 cents per square foot, and simple payback time for existing buildings averages 1.1 year.' This implies that average annual savings are 27.3 cents per square foot per year. Some reports suggest that the savings from retrocommissioning tends to decline over time as buildings revert from optimal to suboptimal tuning. The most comprehensive study on the durability of savings, using a sample of 36 buildings found that savings increased from year one to year two by about 20% and then reverted to roughly half of year 1 savings in year 3.' To project the savings for years 2-4, a savings profile matching 1 Wl1l1s, [liriieirgy (2011) 4: 145, 9116.8 2%�J�JS, [�iriieirgy (2011) 4: 145, 0, 100 7/sl 2053 �01111...11116. 98 El"I(C),=11(gEfl1`,`,',a11 I Energy Policy Consulting 2021-02-16 Agenda Packet Page 253 of 395 Memo: Cost- Effective n ess of Audits and Retro -Commissioning for Existing Buildings this pattern was used (see Figure 1). Evidence indicates some savings persistes long after year 4,' however no savings was assumed beyond year 4 for this analysis. N Cost of an Ashrae Level 11 Audit Average audit costs were found to range from 12 cents to 50 cents per square foot.`` In discussions with local audit provider MleasudDa_C.'ost Fff�ctiv�n A general measure of cost-effectiveness is the lifecycle savings divided by the initial cost. A value over one is considered cost effective. For this analysis, savings were discounted at an annual rate of 7%. FIGURE 1: Cost-effectiveness Calculations Average Retro -commissioning Cost (per square foot) $0.30 Median ASH RAE 11 Audit Cost (per square foot) $0.31 Average Annual Savings (per square foot) $0.27 I WNMQ Savings (per square foot) ...................................................................................................................................................................................................................................................................................................... I Discounted Lifecycle Savings (per square foot) Retro-commisioning Benefit -to -Cost Ratio 2.66 Audit and Retro-commisioning Benefit -to -Cost Ratio 1.31 3 [::ire,idirnairi, l L, (,lairidge,,D,, [::irairflk, W, l IK,, (,',irossirnairi, IK,, (,',rowe,, x.611 a iiiruii Mir M, D, (2010), "Airiiriex 47: c.oM, acrid of saviiri( s," [�irieirgy Ageiric.y, [irieirgy Niru[3uilldiirigs acrid (,',ornirnuiriNy Syste,irns [�Iirogirairnirne,, 289pp, 1,iittp://\At\AAAtJe,a irepoirt'i 4 W,Stirec*eir', SIIiiafer, J, (2011), "A Guide, to [irieirgyAudits," DO[ , [3uilldiirig [�Iirogirairn, 3p1p, 20956,pdf =r�c ager an I Energy Policy Consulting 2021-02-16 Agenda Packet Page 254 of 395 Memo: Cast -Effectiveness of Audits and Retro -Commissioning for Existing Buildings No Retro -commissioning was found to be cost effective with a benefit -to -cost ratio of 2.66. Adding in the cost of an audit, and assuming no further savings as a result, the combination was also found to be cost-effective with a benefit -to -cost ratio of 1.31. I Energy Policy Consulting 2021-02-16 Agenda Packet Page 255 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA File ID: 20-0570 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ATHIRD AMENDED AND RESTATED REVENUE SHARING AGREEMENT BY AND AMONG THE CITY OF CHULA VISTA, THE SAN DIEGO UNIFIED PORT DISTRICT, AND THE CHULA VISTA BAYFRONT FACILITIES FINANCING B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDED AND RESTATED JOINT COMMUNITY FACILITIES AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT FOR THE CHULA VISTA BAYFRONT PROJECT SPECIAL 'FAX FINANCING DISTRICT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF THE BAYFRONT PROJECT SPECIAL 'FAX FINANCING DISTRICT DECLARING ITS INTENTION TO CONSIDER CHANGES TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL 'FAXES AUTHORIZED TO BE LEVIED THEREIN AND EXPAND 'TERRITORY WHEREIN IMPROVEMENTS MAY BE LOCATED AND SERVICES MAY BE PROVIDED AC"FION Council adopt the resolutions. SUMMARY Formation proceedings for the Bayfront Project Special Tax Financing District (the "Bayfront District") were initiated on September 10, 2019. Following a special mail ballot election, an ordinance authorizing the levy of special taxes at rates not to exceed 5% of rent annually charged on hotel property and campsite property within the Bayfront District was adopted, with a maximum term of forty (40) years. 'The City now desires to consider changes to the rate and method of apportionment (the "Existing RMA") for the Bayfront District to increase the maximum special tax levy rate to 5.5% until June 30, 2060, with downward adjustments thereafter, raising an estimated $33,000,000 annually; (b) extend the term of the authorization to levy the special tax until June 30, 2086; (c) expand the territory wherein improvements may be located and services provided; and (d) make minor procedural changes. Tonight's action will declare the intention of the City Council to: (a) Consider the modification of the Existing RMA for the Bayfront District; v 0 0 1 1 2021-02-16 Agenda Packet Page 256 of 395 (b) request the applicable officer of the City prepare an Amended Bayfront Project Special Tax Financing District Report, and (c) set a public hearing related to the modification of the Bayfront District Existing RMA and the levy of special taxes for the Bayfront District for April 13, 2021 at 5:00 p.m. As summarized below, tonight's action also asks the City Council to approve amended and restated versions of the Second Amended and Restated Revenue Sharing Agreement (the "Second Amended and Restated RSA") and the joint Community Facilities Agreement (the "Original JCFA"), each by and between the City and the San Diego Unified Port District (the "Port District"). REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of the creation of a governmental fiscal/funding mechanism which does not result in a physical change in the environment, therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Not applicable. DISCUSSION In 2002, the City of Chula Vista and the Port Districtbegan a collaborative planning process to create a master plan for the approximately 535 -acre Chula Vista Bayfront area. The Chula Vista Bayfront Master Plan (CVBMP) was designed to transform Chula Vista's underutilized industrial Bayfront landscape into a thriving residential and world-class waterfront resort destination. The CVBMP represents the last significant waterfront development opportunity in Southern California and is the result of a decade-long joint planning effort by a broad coalition of stakeholders, the Port District, the City, and Pacifica Companies. On May 8, 2012, the City and the Port District entered into a Bayfront Master Plan Financing Agreement (the "Original Financing Agreement") for the CVBMP. The Original Financing Agreement identified the rights and obligations of each agency, with respect to the financing, development, and construction of public improvements, infrastructure, and a planned convention center in the CVBMP area (the "Convention Center). To this end, the Original Financing Agreement identified revenue sources required to construct and maintain public improvements, infrastructure, and other facilities necessary to implement the CVBMP in accordance with the Final Environmental Impact Report (FEIR) approved by the City and the Port District on May 16, 2010. One of the revenue sources identified in the Original Financing Agreement was the City's Tourism Marketing District (TMD). The TMD functioned in a similar manner to the City's transient occupancy tax (TOT) and included an assessment rate of 5% of hotel room rental revenues. Subsequent to the adoption of the Original Financing Agreement, the TMD was disestablished in 2012. The Original Financing Agreement was subsequently amended and restated by the Amended and Restated Financing Agreement to recognize additional rights and obligations of the respective agencies. One such P ;,,, e 12 2021-02-16 Agenda Packet Page 257 of 395 additional obligation acknowledged by the City in the Amended and Restated Financing Agreement was that the City would pursue creation of a mechanism to generate additional occupancy -based revenues, replacing the previous TMD assessments. The Amended and Restated Financing Agreement contemplated creation of the desired public financing mechanism under the Mello -Roos Act, assessment laws pursuant to the City's Charter authority, other applicable state assessment laws, Port District charges or surcharges, or other Developer -sponsored or imposed charges or surcharges. The establishment of a special tax financing district that functions in a manner similar to the previous TMD was determined to be the preferred revenue generation mechanism. Special tax districts may be established to provide funding for the acquisition and construction of public and private improvements and/or the provision of public services by levying an annual "special tax," which is collected from the property owners within the Bayfront District and by issuing bonds secured by the levy of such special taxes, with ongoing administrative costs of the Bayfront District also payable from such special taxes at no cost to the City. On September 10, 2019, the City Council initiated proceedings to form the Bayfront District with the adoption of City Council Resolution Nos. 2019-167,2019-168, and 2019-169, adopting a boundary map of the Bayfront District, declaring the intention of the City Council to establish the Bayfront District and to authorize the levy of a special tax therein, and declaring the necessity of the Bayfront District to incur a bonded indebtedness, respectively. Resolution No. 2019-169 was subsequently amended by the City Council on November 12, 2019 to increase the maximum bonded indebtedness for the Bayfront District from $125,000,000 to $175,000,000. On November 19, 2019, the City Council held a public hearing and took additional formation actions, approving Resolution Nos. 2019-218, 2019-219, 2019-220, 2019-221 and 2019-222. These resolutions approved an Amended and Restated Revenue Sharing Agreement by and between the City and the Port District, approved the Original JCFA, approved forming and establishing the Bayfront District and submitting the levy of special tax to the qualified electors, deemed it necessary to incur a bonded indebtedness of the Bayfront District, and called a special mail ballot election to submit the following three (3) propositions to the qualified electors: PROPOSITION A Shall the measure to authorize the Bayfront Project Special Tax financing District (the "District') to levy special taxes at rates not to exceed 5% of Rent charged on Hotel Property and Campsite Property (as such terms are defined in Resolution No. 2019-219 accompanying this ballot) within the District, until the end of the term set forth in such resolution, raising an estimated $30,000,000 annually to finance Improvements and Services described in such resolution, be approved? PROPOSITION B Shall the measure to authorize the Bayfront Project Special Tax financing District (the "District') to incur a bonded indebtedness of the District in an amount not to exceed 3 2021-02-16 Agenda Packet Page 258 of 395 $17.5,000,000, to be secured by special taxes subject to the approval of Proposition A above, be approved? PROPOSITION C Shall the measure to establish an Article XHIB appropriations limit equal to $12.5,000,000for the Bayfront Project Special Tax Financing District be approved? The November 19, 2019 public hearing was held pursuant to the provisions of Chula Vista Municipal Code Chapter 3.61 (the "Bayfront Project Special 'Fax Financing District Procedural Ordinance"). At 12:00 pm on February 18, 2020, the City Clerk, acting as the election official, conducted a special election of the qualified electors of the Bayfront District (i.e. the landowners within the district). The City Clerk presided over the proceedings, verified the eligible voters, verified signatures, and presented the election ballots. The City Clerk then prepared and distributed certification of the election results on February 18, 2020. On that same date, the City Council adopted Resolution 2020-042, reciting the fact of the special mail ballot election and declaring the results of the election. With a majority of the electors voting yes on each of the three propositions, the Council then placed an ordinance authorizing the levy of a special tax in the Bayfront District on first reading (Ordinance No. 3481, second reading on February 25, 2020). Negotiations between the City, the Port District, and RIDA Chula Vista, LLC (RIDA) related to the planned resort hotel and Convention Center project (the "RI -ICC Project") have progressed significantly since the February 2020 action levying the Bayfront District special tax. RIDA is now requesting an additional $10 million contribution from the public agencies toward the construction of the Convention Center. In return, RIDA will accept primary responsibility for funding the 1,600 -space parking garage (the "Parking Garage") that will serve the RI -ICC Project. Total costs for the Parking Garage are currently estimated between $35 million and $40 million. Staff recommends modifying the special tax rate and term of the Bayfront District in order to provide the funding requested by RIDA and to address likely future capital and operating costs throughout the Bayfront District Area. Additional changes to expand the area in which the improvements and services funded by the Bayfront District may be provided are also recommended. Related amendments to the Second Amended and Restated RSA and the Original JCFA are also proposed. Bayfront District Amendment The Existing RMA established the procedures for levying special taxes within the Bayfront District. Modifications to the term of the special tax and the special tax rate are proposed, along with minor procedural changes, as summarized below and detailed in the Amended Rate and Method of Apportionment (the "Amended RMA") (Attachment 1). P ;,,, e 14 2021-02-16 Agenda Packet Page 259 of 395 .5pecial Tax Term , Fhe Bayfront District special tax is currently authorized to be levied as long as necessary to pay for authorized expenditures as specified in Section 3.61.080 of Chapter 3.61 of the Chula Vista Municipal Code (CVMC) for a period not to exceed the longer of: (a) forty years (40) from the first day of the month immediately following the effective date of the ordinance enacted by the City Council providing for the levy of the Special Tax; or (b) the date on which all indebtedness of the Chula Vista Bayfront Facilities Financing Authority, with respect to which District Special Tax revenues have been pledged, has been paid in full. A term of no later than June 30, 2086 proposed. The extended term is limited by the 66 year contract authority of the Port District and closely aligns with the expected term of the ground lease to be entered into RM99iffAMMINNEW .Special Tax Rate Property located in the Bayfront District is subject to the levy of a special tax equivalent to 5% of occupancy - based room rate revenues generated from visitor serving accommodations located on such property that are subject to the City's TOT. Property located in the Bayfront District anticipated to be subject to the special tax include hotels and campsites, as well as private residences operating as hotels (i.e. properties offered to the public for short-term rental purposes through Airbnb, Vrbo, etc.). For those properties which do not offer visitor serving accommodations subject to the City's TOT, the Bayfront District has no effect (i.e., private residences not offered to the public for short-term rental purposes, undeveloped land, other commercial uses, or non-operating hotels or campsites). An increase in the initial special tax rate from 5.0% to 5.5% is proposed. This is required to generate the additional $10 million requested of the public agencies by RIDA. For the additional term of the Bayfront District beyond the 40 years currently authorized, significant reductions in the tax rate are proposed, dropping to 2.5% effective July 1, 2060 and to 1.0% effective July 1, 2075. As previously described, the tax would terminate as of June 30, 2086. District Boundaries No changes are proposed to the previously adopted and recorded boundary map of the Bayfront District (Attachment 2). The Port District owns approximately 212 (79%) of the 270 acres of taxable property within the proposed boundaries of the Bayfront District. The City owns approximately 6 acres (2%) of taxable property within such boundaries, and the Municipal Transit System (MTS) owns approximately 4 taxable acres (1.5%). The remaining approximately 48 acres of taxable property are privately owned (17.5%). Authorized Improvements No changes are proposed to the previously adopted list of authorized improvements. Attachment 3 lists the types of improvements to be financed by the Bayfront District. The proposed resolution expands the territory in which the improvements may be located to be consistent with the JCFA priorities detailed above, 15 2021-02-16 Agenda Packet Page 260 of 395 including explicitly authorizing improvements to be located in, or immediately adjacent to, the Bayfront District area. Authorized Services No changes are proposed to the previously adopted list of authorized services. Attachment 4 lists the authorized services eligible for Bayfront District funding. The proposed resolution expands the territory in which the services may be provided to be consistent with the JCFA priorities detailed above, including explicitly authorizing services to be provided in or immediately adjacent to, the Bayfront District area. Revenue Sharing Agreement In conjunction with the pending Bayfront District amendment proceedings, modifications to the Second Amended and Restated RSA have been negotiated by City and Port District staff and are presented for Council consideration and approval (the "Third Amended and Restated RSA"). 'The Port Board approved the Third Amended and Restated RSA on February 11, 2021. A redline comparing the Second Amended and Restated RSA and the Third Amended and Restated RSA is provided as Attachment S to this report. Second Amended and Restated RSA The Amended and Restated Financing Agreement establishes the fiscal foundation for development of the Chula Vista Bayfront by addressing the financing, development, and construction of public improvements, infrastructure, and the Convention Center. 'The capital projects and activities to be funded will promote public access to and engagement with the waterfront, while enhancing the quality and protection of key habitat areas. The Amended and Restated Financing Agreement anticipates the issuance of tax-exempt and/or taxable revenue bonds to finance the public investment toward the cost of constructing the Convention Center (the "RfICC Project Public Investment") and certain CVBMP public improvements (the "Revenue Bonds"). The Revenue Bonds will be secured by, and payable from, certain sources of funds as identified in the Amended and Restated Financing Agreement. On April 24, 2018, the City Council and the Port District Board of Commissioners (the "Port Board") each approved a Disposition and Development Agreement (DDA) for the RHCC Project. 'The DDA addressed business terms and commitments by all parties through the close of escrow for the RHCC Project, including the construction of certain public infrastructure necessary to support the RHCC Project (the "Phase 1A Infrastructure"). 'The DDA established a maximum RHCC Project Public Investment of $240 million and acknowledged estimated Phase 1A Infrastructure construction costs of $60.6 million. The DDA included the Conceptual Outline of the joint Exercise of Powers Agreement Plan of Finance (the "Conceptual Plan of Finance"), which documented the expected method of financing the RHCC Project Public Investment of $240 million and Phase 1A Infrastructure construction costs totaling $56 million. The remaining $4.6 million in Phase 1A Infrastructure costs were assumed to be funded using cash on hand. At the April 24, 2018 meeting, the City Council and Port Board also each approved a Revenue Sharing Agreement by and between the City and the Port District (the "Original RSA"). The Original RSA addressed funding commitments of each agency; the application of residual revenues after payment of RHCC Project Public Investment and Phase 1A Infrastructure Revenue Bond debt including reimbursements to each agency (the "Residual Revenues"); operating and maintenance responsibility for the Phase 1A Infrastructure; and P ;,,, e 16 2021-02-16 Agenda Packet Page 261 of 395 allocation of Net Operating Income above an eleven percent (11%) return on investment, to be paid by RIDA to the Port District at a rate of twenty percent (20%) for Lease Year I through Lease Year 37 (the "Additional Rent"). The Original RSA was subsequently modified through the approval of an Amended and Restated Revenue Sharing Agreement (the "Amended and Restated RSA"), effective November 19, 2019 and a Second Amended and Restated RSA, effective September 15, 2020. Proposed modifications to the terms of the Second Amended and Restated RSA are as follows: 1. Eliminates current priority number three (#3) use of the Residual Revenues to reimburse the City an amount equivalent to the actual funds expended by the Bayfront District for the construction of the 1,600 -space Parking Garage principally intended to serve the Convention Center, not otherwise reimbursed to the City by the Port District. 2. Eliminates current Section 3.8 related to financing of the Parking Garage using Bayfront District funds. 3. Adds a new Section 3.8 committing the Port District to remit fifty percent (50%) of all payments received from RIDA related to the Parking Garage to the City, throughout the term of the RSA (the "Parking Payments"). These funds will be remitted directly to the City and will not be allocated through the waterfall with the Residual Revenues and the RIDA Lease Payments (as defined below). With the approval of the Third Amended and Restated RSA, the revenues to be contributed by each agency toward the payment of the Revenue Bond debt service are as follows: Port District Contributions 1. Ground lease revenues derived from: a. Other Ground Leases (as set forth in Exhibit I to the Third Amended and Restated RSA); b. less a credit equal to the actual amount of the existing RV Park lease buyout, in an amount not to exceed $3,283,970, to be amortized over a period of 8 years, commencing July 1, 2018, pursuant to the following schedule (as may be amended by mutual consent of the parties): Fiscal Year (FY) RV Park Buyout Credit Cumulative Credit FY 19 $410,500 $410,500 FY 20 $410,500 $821,000 FY 21 $410,500 $1,231,S00 FY 22 $410,500 $1,642,000 FY 23 $410,500 $2,0S2,S00 FY 24 $410,SOO $2,463,000 FY 2S $410,500 $2,873,500 FY 26 $410,470 $3,283,970 P ;,,, e 17 2021-02-16 Agenda Packet Page 262 of 395 2. Port District Support Payments, in an amount not to exceed the following schedule: Lease Years I - 4 $0 Lease Years 5 - 14 $5.0 million Lease Years 15 - 19 $6.0 million Lease Years 20 - 24 $3.0 million Lease Years 25 - 38 $3.5 million Cit, Contributions ,- 1. TOT generated by the RHCC Project, the RV Park TUOP, and the Replacement RV Park. 2. Sales tax generated by the RHCC Project, the RV Park TUOP, and the Replacement RV Park. This commitment excludes any locally approved sales and use taxes, such as Measure P or Measure A. 3. Incremental property tax (including property tax in -lieu of motor vehicle license fees) generated by the RI ICC Project. 4. An amount equal to the funds received from the Port District in fiscal year 2016 ($986,625), pursuant to the Municipal Services Agreement (MSA) in place at that time. Starting on July 1, 2017, the contribution amount will increase 3% annually. This amount will not change based on future MSAs that may be negotiated by the City and Port District. S. Special tax proceeds of the Bayfront District, limited to the amount used to pay debt service on the Revenue Bonds. The Third Amended and Restated RSA reflects the following prioritization for use of the Residual Revenues, together with all revenues received by the District from RIDA pursuant to the Ground Lease expected to be executed at Close of Escrow (except the Parking Payments) (the "RIDA Lease Payments"): 1. To reimburse the Port District for the cumulative amount of District Support Payments actually contributed by the Port District and not previously reimbursed to the District by the Authority; then 2. To reimburse the City and the Port District pari passu for any amounts either Party actually paid or contributed to the County pursuant to the County Funding Agreement, then 3. To reimburse the City for 73.6% of the cumulative actual, direct costs incurred by the City to provide fire service within the CVB, which 73.6% reflects amounts for which the City is entitled to reimbursement in addition to any payments the City receives pursuant to any municipal services agreement between the City and the District in effect at the time such reimbursement is being made and which is the proportionate share of costs attributable to the Convention Center and the Hotel and not previously reimbursed to the City or paid through Special Taff Revenues; then 4. To reimburse the City and the Port District on a proportionate, pro -rata basis, for each Party's contribution of the Existing Revenues, as of the Closing Date; then S. To reimburse the City and the Port District on a proportionate, pro -rata basis, for each Party's contribution of Existing Revenues after the Closing Date, continuing to the Agreement Termination fflmm� P ;,,, e 18 2021-02-16 Agenda Packet Page 263 of 395 6. To fund an additional reserve fund or reserve fund insurance policy in the amount of one year's debt service for the Revenue Bonds; and finally I. Any Revenues remaining after the payments described in Items (1) through (6) above will be equally distributed between the City and the District. joint Community Facilities Agreement Bayfront District eligible improvements may be owned by either the City or the Port District and both agencies will provide a portion of the eligible services. Pursuant to California Government Code Section 53316.2, a joint community facilities agreement or joint exercise of powers agreement must be entered into in order for a community facilities district to finance facilities to be owned or operated by a public agency other than the agency that created the district, or to finance services to be provided by a public agency other than the agency that created the district (or any combination thereof). In conjunction with the pending Bayfront District amendment proceedings, modifications to the Original JCFA have been negotiated by City and Port District staff and are presented for Council consideration and approval (the "Amended and Restated JCFA"). The Port Board approved the Amended and Restated JCFA on February 11, 2021. A redline comparing the Original JCFA and the proposed Amended and Restated JCFA is provided as Attachment 6 to this report. 0LWaQLM The Original JCFA was entered into by the City and Port District, effective February 24, 2020, and sets forth essential terms for the development, operation, maintenance, and servicing of various improvements (a) within the CVBMP, or (b) outside the CVBMP if required by mitigation measures specified within the CVBMP FIR and required to be performed by the City or Port District. The Original JCFA establishes the following priorities for allocation of special tax revenues generated by the Bayfront District: 1. Financing the construction of the Convention Center portion of the RI -ICC Project, 2. Financing the construction of the Phase 1A Infrastructure; 3. Funding the construction of the Parking Garage; 4. Funding the operation, maintenance, servicing and replacement of the Phase 1A Infrastructure; S. Funding the construction of other public improvements, either (a) within the CVBMP, or (b) outside the CVBMP if required by mitigation measures specified in the CVBMP FIR, to be performed by the City or Port District (the "Other Improvements"); and 6. Funding the operation, maintenance, servicing, and replacement of the Other Improvements. pmp�� The Proposed Amended and Restated JCFA modifies the priorities for allocation of special tax revenues generated by the Bayfront District in order to provide greater flexibility in the future. In addition, the territory in which the improvements may be located, or services may be provided, is expanded. The new prioritization, including expanded territory, is as follows: 1. Financing the construction of the Convention Center and certain public infrastructure improvements, to be financed through the Revenue Bonds (the "Priority Improvements"); then P ;," e 19 2021-02-16 Agenda Packet Page 264 of 395 2. Construction or financing of public improvements if required as mitigation measures, project design features, or otherwise required in the Project Approvals (as defined in the Amended and Restated JCFA) (the "Other Improvements); then 3. Funding the operation, maintenance, servicing and replacement costs of the Priority Improvements and the Other Improvements, except the Convention Center; and finally 4. Construction or financing of other public improvements that are located in or immediately adjacent to the Bayfront District area and that are not Priority Improvements or Other Improvements (the "Additional Improvements") (see Attachment 5) and the operation, maintenance, servicing and replacement costs of any Additional Improvements and other Authorized Services (see Attachment 6). Resolutions There are three (3) resolutions on today's agenda that, if adopted, will accomplish the following: Resolution A: The RESOLUTION APPROVING A THIRD AMENDED AND RESTATED REVENUE SHARING AGREEMENT approves modifications to the existing Second Amended and Restated Revenue Sharing Agreement between the City and the Port District and adds the Chula Vista Bayfront Facilities Financing Authority as a party to the agreement. Resolution B: The RESOLUTION APPROVING AN AMENDED AND RESTATED JOINT COMMUNITY FACILITIES AGREEMENT approves modifications to the existing joint Community Facilities Agreement between the City and the Port District. Resolution C: The RESOLUTION OF INTENTION TO CONSIDER Cf IAN GESTO Tf IE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES AND EXPAND THE TERRITORY WHEREIN IMPROVEMENTS MAY BE LOCATED AND SERVICES MAY BE PROVIDED is the jurisdictional resolution declaring the intention of the City Council to modify the Existing RMA relating to the term and rate of the special tax, expanding the territory in which the improvements may be located and the services may be provided, and setting the time and place for the public hearing for April 13, 2021. Future Actions Adoption of tonight's resolutions will set a public hearing on modifying the Existing RMA for April 13, 2021. There will be an election following the public hearings for the landowners to vote on the proposed modifications to the Existing RMA. Once the votes are cast, Council will be requested to certify the results of the election. The San Diego County Registrar of Voters has certified that there are no voters registered to vote within the proposed boundaries of the Bayfront District. As a result, the qualified electors will be landowners, i.e., the owners of land within the Bayfront District with each such owner receiving one (1) vote for each acre or a portion of an acre located within the boundaries of the Bayfront District. The Bayfront District will be authorized to levy such special taxes if 2/3rds of the votes actually cast in the election approve the authorization to levy such special tax. P ,," e 11 2021-02-16 Agenda Packet Page 265 of 395 Additional future actions include approval of an Project Implementation Agreement with the Port District and RIDA to establish the terms and conditions pursuant to which the Bayfront District will finance the acquisition of public improvements required by the Amended and Restated Finance Agreement and the DDA to be constructed by RIDA Chula Vista, the levy of special taxes, and actions associated with the issuance of the Revenue Bonds. CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financing 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, etseq.). 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. 171SCA1. JMI�IACT All expenses incurred by the City in undertaking the proceedings to consider the formation of the Bayfront District and subsequently any borrowings by the Bayfront District to finance the acquisition and construction of eligible public or private facilities will be reimbursed from future Bayfront District financing proceeds or special tax revenues, resulting in no net impact to the General Fund or the Development Services Fund. ONGOING 171SCA1. JMI�IACT The cost to administer the Bayfront District and any borrowings by the Bayfront District shall be paid from the proceeds of special taxes to be levied within the Bayfront District or the proceeds of such borrowings. There is, therefore, no ongoing fiscal impact to the City's General Fund or Development Services Fund as a mmumnalmnm ATTACHMENTS 1. Proposed Rate and Method of Apportionment (redline) 2. Boundary Map 3. Authorized Improvements 4. Authorized Services S. Third Amended and Restated RSA (redline) 6. Amended and Restated JCFA (redline) Staff Contact. Tiffany Alien, Development Services Department 1 s ;," e 1 11 2021-02-16 Agenda Packet Page 266 of 395 RESOLU,rION NO, RESOLU,rION OF THE ary COUNCIL OF 'FH E ary OF (HIAA vis,FA APPROVINGi AN AMENDED AND RI s,rA,rED JOINT COMMUNi,rY FACIu,rIES AGREEMEN'r BY AND BE,rWEEN,rHE ary OF CHULA vis,FA SND ,FH SAN DIEGiO UNIFIED POR,r Dismicr FOR 'FH E CHULA vis,FA BAYFRON'r PROJEC,r SPECIAL 'FAX FINANCINGi Dismicr WHEREAS, the City of Chula Vista, California (the "City") is a municipal corporation and charter city duty organized and existing under a charter pursuant to which the City has the right and power to make and enforce all laws and regulations with respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5, and 7 of Article XI of the Constitution of the State of California and the Charter of the City; and WHEREAS, Chapter 3.6I of the Chula Vista Municipal Code (Chapter 3.6I) was enacted for the purpose of establishing a procedure for Financing certain public and private improvements and maintenance and services to serve the Chula Vista Bayfront Project through the establishment of the Bayfront Project Special Fax Financing District (the "Bayfront District"), the levy and collection of special taxes within the District and the issuance of bonds of the District secured by such special taxes for the purpose of Financing a Convention Center Facility (as defined in Chapter 3.6I) and certain other public and/or private improvements; and WHEREAS, pursuant to (lovernment Code Section 533 l 6.2, in order for the District to Finance facilities to be owned or operated by the San Diego Unified Port District (the "Port District"), a joint community facilities agreement or joint exercise of powers agreement must be adopted prior to the adoption of the resolution of fon-nation creating the District; and WHEREAS, the City and Port District therefore entered into a Joint Community Facilities Agreement (the "JCFA") dated February 24, 2020; and WHEREAS, the City undertook and completed proceedings to form the Bayfront District, including adopting Ordinance No. 348I, authorizing the levy of a special tax in the Bayfront District; and WHEREAS, the City and Port District have negotiated an Amended and Restated Joint Community Facilities Agreement (the "Amended and Restated JCFA"), in the form presented in Exhibit I to this resolution; and WHEREAS, the Board of Commissioners of the Port District did approve the Amended and Restated JCFA at its February l I, 202I Board meeting, NOW, 'FH RI BE i,r RESOLVED by the City Council of the City of Chula Vista, that it hereby declares that the Amended and Restated JCFA would be beneficial to the 2021-02-16 Agenda Packet Page 267 of 395 Resolution No. Page 2 residents and tenants of, and visitors to, the territory within the boundaries of the Bayfront District, BE i'r FUR'FIJER RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the Amended and Restated Joint Community Facilities Agreement by and Between the City of Chula Vista and the San Diego Unified Port District for the Chula Vista Bayfront Project Special 'Fax Financing District, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be Dept on File in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same, 'Tiffany Allen Director of Development Services Approved as to form by: Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 268 of 395 This AMENDED AND RESTATED JOINT COMMUNITY FACILITIES AGREEMENT ("Agreement") is entered into as of February , 2021 by and between the City of Chula Vista, a California chartered municipal corporation ("City") and the San Diego Unified Fort District, a public corporation ("District"). The City and District may be individually referred to heroin as, a "Party" and collectively as, the "Parties". WHEREAS, the City and District are parties to that certain Joint Community Facilities Agreement dated February 24, 2020 filed in the office of the District Clerk as Document No. 72175 (the "Original JCF "); and WHEREAS, the City has formed the Bayfront Project Special Tax Financing District ("Financing District") pursuant to Chapter 3.61 of the City Municipal Code to levy special taxes ("Special Taxes") to generate special tax revenue ("Special Tax Revenues") from the Financing District Area (defined below) to pay for the financing or construction of certain public infrastructure improvements and the financing of the construction of a convention center to be located on parcel H-3 of the CVS F Area (defined below) ("Convention Center"); and WHEREAS, RIDA Chula Vista, LLC ("RIDA") will construct and finance a resort hotel on parcel H-3 of the CVS F Area ("Hotel"); and WHEREAS, a map showing the boundaries of the Chula Vista Bayfront Master Flan ("CVS F") is attached hereto as Exhibit A ("CVBMP Area"); and WHEREAS, a map showing the boundaries of the Financing District is attached hereto as Exhibit B ("Financing District Area"); and WHEREAS, the Financing District Area includes areas outside the CVS F Area; and WHEREAS, collection of Special Tax Revenues commenced on July 1, 2020 ("Collection Date"); and WHEREAS, the Parties desire to amend and restate in its totality the Original JCFA as set forth herein; and WHEREAS, the legislative body of each Party has determined that this Agreement will be beneficial to the residents and tenants of and visitors to the Financing District Area. 2021-02-16 Agenda Packet Page 269 of 395 NOW THEREFORE, in consideration of the mutual promises set forth herein, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Parties- The Parties to the Agreement are the District and the City. . Term: The term of the Agreement commenced on February 24, 2020, the effective date of the Original JCF, and terminates concurrent with the termination of the Financing District. AhL 3. F�urpose: The purpose of this Agreement i t Orth the essential terms for the allocation and payment of Special Tax Flo the financing, development, operation, maintenance, and servicing iou ovements, in accordance with agreed upon priorities, all as mo icularly .,In herein. M hcil of a° d rsement of Special Tax Revenues: .1 Priorities for To the extent available, Special Tax Revenues shall be used in the following priority: (1) to pay for the financing of the construction of the Convention Center and certain public infrastructure improvements financed through Authority Bonds (defined below) (collectively, the "Priority Improvements"); I 2021-02-16 Agenda Packet Page 270 of 395 (2) to pay for the construction or the financing of public improvements that are either located within the CVS F Area or outside the CVS F Area, but located within the City of Chula Vista, if required as mitigation measures, project design features, or otherwise required in the Project Approvals (defined below) to be performed by the City or the District as required (including obtaining permits and certificate of occupancy) to allow for the Hotel and Convention Center to operate ("Other Improvements"); (3) to pay for the operation, maintenance, servicing and replacement costs of the public infrastructure described in Ite Nos. 1 and 2 above, except for the Convention Center ("Priority " rovement. special Tax Revenues dedicated to pay for g of the construction of the Priority Improvements shall d pursuant to agreements between one or more of the e City, the Financing District, the Chula Vista Bayfront Financing Authority ("Authority") and RIDA. b. Other Improvements and Priority O&M. If the City or District expend their respective funds on the construction of any portion of the Other Improvements or in providing the Priority O&M, such Party shall be entitled to reimbursement out of available Special Tax Revenues upon providing the City's designated Financing District administrator with reasonable evidence that such Party has completed, or has cawed the completion of such Other Improvements or Priority O&M. Such Party may elect to perform the 2021-02-16 Agenda Packet Page 271 of 395 0 work itself or contract with any third party at its election to perform the work. If Special Tax Revenues are not immediately available for reimbursement, as and to the extent that Special Tax Revenues become available in accordance with the priorities set forth in Section 5.1, the City shall cause the payment of Special Tax Revenues to such Party in installment payments until such amounts are reimbursed in full pursuant to a separate agreement between the Parties. Each Party shall be reimbursed pro rata based on the total annual amounts expended by each Party for the Other Improvements and Priority O&M, w . h shall include any amounts accrued and not reimbursed in pri rs. OM If the City expends its %. Discretionary cion . The Priority Improvements, Other Improvements, and Priority O&M (collectively "Special Tax Revenue Projects") have been analyzed 2021-02-16 Agenda Packet Page 272 of 395 . Entire gr rpt. T gr��m r� titute§ e satire understanding and agreement cf arti� ir�t�grat� cf the terms and conditions mentioned her , ciden „rtup�r the Original JCF. 9. ern:herjetn ie in. the I ThNindance h all of the rights and obligations of the ams and conditions hereof shall be construed, with and governed by and enforced under to R 2021-02-16 Agenda Packet Page 273 of 395 IM-Mmumanam MAIIN, 41, IN, 11,111, IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above. APPROVED AS TO FORM AND LEGALITY: GENERAL COUNSEL Assistant/Deputy CITY OF CHULA VIS' Glen R. Googi City Attorney I SAN DIEGO UNIFIED PORT DISTRICT, a public cof&,oration 2021-02-16 Agenda Packet Page 274 of 395 (to be attached prior to execution.) 2021-02-16 Agenda Packet Page 275 of 395 L- A Depiction of Financing District Area (to be attached prior to execution.) 2021-02-16 Agenda Packet Page 277 of 395 \ \ IO)SOOOL-blot/ � 0 K i� �o LLz 00 wJ KLL kk mLU LU� 0w 9L� LL.0 oIL aI- z 0 It \ ■ §0k )§§ //§ 00. r!� P relev� _ 2 ( a® k( o§ : (� &� �- � k§ � §k| k\ §k b�� k .� �%2§( . - §§ I §k 0 § 'LU 961 �|•;m @ r =•. 00 0| .§§■§ ;|■§. §§■■ i §§( ||\B, �2o[k© • �- ■§ !■ ■2 || ||22|f - °° ® 77§ ■ §| 05. |2■§§!� - §. m�, . �k§a - & EsM»e§| . 2 t J- ®■. !e §§ k�&2 k[ ` ■�� !®� M||� § §|■s[•; °| § , E§§| § �k- B)B�!§ ||§!2§■ 0§ &ae; as&� |§; r!� P relev� MOOOL-bice bF W Qih -A8 o z� w Q2 J c 3 OL r, a LU �a N Yd 0 � YI _� cjZ �_ oZ �a U.� LL 0x oa WZ �� zo D W o LL zw z CL 0 (/j ° . U D W W C 0a O�- a0 U.w oLL. � a� o e 0 �o m r - O rd cr rn rn 0 w N �o �Z oZ Z V {L OX 0 y� WJ �a V LU = N O� m U pW W 'O Ow CLs a0 LL. W. OLL. as am 0 wZ sig z Q J OLLO w O w O~ ON L-blor o 1 cr PD2WOL-blop lh'9,d %h -A4 8 0 0 '116 li, lw000L-blor -et, !Dla %A All rd :r SIN y16 U g� U.U. Z OZ �a U3 U. Ox W ~ �a GaV z Do0 m V W lu w0 OM IL a ao U.w O 'L � a- m 0 W Z o-0 0 Z LL �a If Ow w � UN N N N N mM M m M M M ct I� ti' to G1 C L L -0N y E .-I N M cr In tD l- 00 01 O rj N M zr Ln lD 1� 00 CC a Z m T MN L 0 0 0 0 0 0 0 0 0 0 O M O O O 0 0 0 � � O O O O 00 010 O O O O O O O O O O i E 1 O 1 M 1 N M 1 In O 1 0) N 1 00 M 11 r- M LD M w N 1 r� N 1 .4. N I O O I In O 1 e-1 M I Ln M 11 M M N M I .24 O a Z O O 1 O�� 1 1 rl 1 r-4 1 .-i .1 1 .-i 1 W 1 00 1 00 1 O 1 1n 1 O 1 O O O1 rl " i-1 .-i C4'" N (V m M ct d cP fM m M m ;T � N O M i M 0 0 0 0 O O O O O O M N M M N In Q V L 1 In 1 Ln 1 to 1 1- 1 n n 1' n I r- 1 N I n I O 1 O 1 O. 1 1 1 O 1 .-1 I IM LD W tD lD w lD lD lD lD l0 lD tD �o I� lD n I� n CL In Injln In In ui In In In In n In Ln In G1 C L L -0N y E .-I N M cr In tD l- 00 01 O rj N M zr Ln lD 1� 00 CC a Z m T MN Revised (to be attached prior to execution.) 2021-02-16 Agenda Packet Page 284 of 395 RESOui,riON NO. RESOui,riON OF 'rum, crry COUNCIL OF 'rum, crry OF CI= ULA vis-rA, AC,rING AS 'rum, LEGISLA,riVE BODY OF 'rl-IE BAYFRON'r PROJEC,r SPECIAL LAX FINANCING Dls,rRlc,r DECLARING as IN'ri-,".N'riON 'ro CONSIDER CHANGF,".S 'ro 'rl-IE RA,rE AND mi-,".,rHOD OF APPOR,riONMI-,".N,r OF SPECIAL'TAXES AurHORIZED rO BE LEVIED 'ruiF,RE,IN AND EXPAND rI,ERRrrORY WHEREIN IMP ROvJ-,-mJ-,".N,r s MAY BE LOCA,rED AND SERVICES MAY BEP OVID D WHEREAS, the City Council (the "City Council") of the City of Chula Vista (the "City"), has previously initiated proceedings, held a public hearing, formed the Bayfront Project Special 'rax Financing District (the "District") by the adoption of Resolution No. 2019-220 on November 19, 2019 ("Resolution No. 2019-220"), conducted an election and received a favorable vote from the qualified electors of the District, authorizing the levy of special taxes in the District, all as authorized pursuant to Chapter 3.61 of the Chula Vista Municipal Code (Chapter 3.61); and WHEREAS, City and the San Diego Unified Port District (the "Port District") entered into that certain Joint Community Facilities Agreement (Chula Vista Bayfront Project Special 'rax Financing District), which is proposed to be amended and restated by the Amended and Restated Joint Community Facilities Agreement on file with the City Clerk and to be approved concurrently with the adoption of this Resolution (the "JCFA") to set forth the essential terms for the allocation and payment of special tax revenues generated from the District; and WHEREAS, the qualified electors of the District, voting in a special mail ballot election held on February 18, 2020, approved Proposition A which authorized the District to levy special taxes at rates not to exceed 5% of Rent annually charged on Hotel Property and Campsite Property (as such terms are defined Resolution No. 2019-220) within the District pursuant to a rate and method of apportionment of such special taxes (the rate and method of apportionment of special taxes approved shall be referred to as the "Existing RMA"); and WHEREAS, in order to generate additional funds for public improvements and services to be financed by the District, the City Council, acting as the legislative body of the District, has determined that the public convenience and necessity require the City Council to initiate proceedings to consider modifications to the Existing RMA to: (1) increase the maximum rate at which to levy the special tax to 5.5% of Rent annually charged on Hotel Property and Campsite Property and (2) extend the term of the special tax; and WHEREAS, Resolution No. 2019-220 set forth a limitation on territory wherein the Improvements (as defined in Resolution No. 2019-220) could be located and wherein the Services (as defined in Resolution No. 2019-220) could be provided; and WHEREAS, an expansion of the territory wherein the Improvements may be located and the Services may be provided would be beneficial to the residents and tenants of, and visitors to, the District and WHEREAS, the City Council, acting as the legislative body of the District, has 2021-02-16 Agenda Packet Page 285 of 395 Resolution No. Page 2 determined that the public convenience and necessity require the City Council to initiate proceedings to consider an expansion of the territory wherein the Improvements may be located and the Services may be provided; and WHEREAS, the City Council desires to initiate such proceedings and to set the time and place for a public hearing on this Resolution. NOW, -rHERE FORE, BE rr RESOLVED BY -rum, crry COUNCIL OF -ri-IF, crry OF CHULA vis,rA, AC,rING AS 'rum, LEGISLA,riVE BODY OF 'rHE BAYFRON'r PROJEC,r SPECIAL,rAX FINANCING Dlsmlur, AS FOLLOWS: SEC,riON 1. Recitals. 'rhe above recitals are all true and correct. SEC,rION 2. 'Determinations. It is hereby determined by this City Council that public convenience and necessity require modification of the Existing RMA and changes to the territory where the Improvements may be located and the Services may be provided. SEC,rION 3. Declaration of Intention to Consider the Modifications of !he_1_,".xisting RMA. 'rhis City Council hereby declares its intention to consider modification of the Existing RMA so that the rate and method of apportionment of special taxes authorized to be levied within the District reads as set forth in Exhibit A attached hereto and incorporated herein by this reference (the "Amended RMA"). SEC,rION 4. Declaration of Intention to Consi&r�,"x 1q5J_onto�Territ�o Wherein Improvements May be Located and Services Mav be Prodded. 'rhis City Council hereby declares its intention consider an expansion to the territory where Improvements may be located and Services may be provided. 'rhe Improvements shall be located, and the Services shall be provided, within or outside the CVBMP (as defined in the JCFA) territory, subject to the priorities established in the JCFA. SEC,rION 5. Notice of Public 1--leari-ng. NuriCE IS GIVI-,".N,rHA,r on April 13, 2021, at the hour of 5:00 o'clock p.m., in the regular meeting place of the City Council being the Council Chambers, City Hall, located at 276 Fourth Avenue, Chula Vista, California, a public hearing will be held where this City Council will consider this Resolution and to consider the approval of the modification of the Existing RMA and the expansion of territory wherein the Improvements shall be located and the Services shall be provided, all as described herein. At the above-mentioned time and place for public hearing any persons interested, including taxpayers and property owners, may appear and be heard, in accordance with the current format of City Council meetings pursuant to the Governor of the State of California's Executive Order N-29-20, should it still be in effect. 'rhe testimony of all interested persons for or against the modification of the Existing RMA or the expansion of territory wherein the Improvements shall be located and the Services shall be provided will be heard and considered. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. Any written protest not personally presented by the author of such protest at the public hearing shall be filed with the City Clerk of the City (the "City Clerk") at or before the time fixed for the public hearing. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing. 2021-02-16 Agenda Packet Page 286 of 395 If a written majority protest as determined pursuant to Chapter 3.61 is filed against the proposed modification of the Existing RMA, the proposed modification shall be eliminated from the resolution and the proceedings with respect to the modification of the Existing RMA shall be abandoned. If a written majority protest as determined pursuant to Chapter 3.61 is filed against the expansion of territory wherein the Improvements shall be located and the Services shall be provided, the expansion of territory shall be eliminated from the resolution and the proceedings with respect to the expansion of territory wherein the Improvements shall be located and the Services shall be provided shall be abandoned. Notwithstanding the abandonment of the proceedings with respect to the modification of the Existing RMA or the expansion of territory wherein the Improvements shall be located and the Services shall be provided, new proceedings to modify the Existing RMA and expand the territory wherein the Improvements shall be located and the Services shall be provided may be initiated at any time thereafter. 'rhe public hearing may be continued from time to time without further notice, but shall be completed within two years of the original hearing date. SEC,rION 6. &Wort. A report (the "Report") was submitted by Willdan Financial Services ("Willdan"), as special tax consultant, at the Establishment Public Hearing (as defined in Resolution No. 2019-220) which contained a brief description of the Improvements and Services by type which would adequately meet the needs of the District and their estimate of the cost of providing those Improvements and Services and, with regard to those Improvements proposed to be acquired upon the completion thereof and those Incidental Expenses (as such term is defined in Resolution 2019-220) proposed to be paid for, an estimate of the fair and reasonable cost of such Improvements and such Incidental Expenses. This City Council hereby directs Willdan to amend the Report to reflect the proposed modification of the Existing RMA and the expansion of territory where the Improvements shall be located and the Services shall be provided. Such report shall be made a part of the record of the public hearing to be held pursuant to Section 5 hereof. SEC,rION 7. Election. If, following the public hearing described in Section 5, the City Council determines to approve the Amended RMA and the expansion of territory wherein the Improvements shall be located and the Services shall be provided, the City Council shall then submit question of levying the special taxes pursuant to the Amended RMA and expanding the territory in which the Improvements shall be located and the Services shall be provided to the Landowners (as such term is defined in Chapter 3.61) as the qualified electors of the District pursuant to Chapter 3.61 and the applicable provisions of the California Elections Code. Each Landowner, or the authorized representative thereof, shall have one (1) vote for each acre or portion of an acre of land owned within the District. SEC,rION 8. 'Publication of Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a notice of public hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. 'rhe City Clerk shall also cause notice to be given by first-class mail to each Landowner of property within the District. Such notice shall be mailed at least 15 days before the public 2021-02-16 Agenda Packet Page 287 of 395 Resolution No. Page 4 hearing and shall contain the same information as is required to be contained in the notice published pursuant to the preceding paragraph. 'riffany Alen Director of Development Services Approved as to form by: Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 288 of 395 AME".NDED RA,rE AND ME,rHOD OF APPOR,riONmi-,".N,r 2021-02-16 Agenda Packet Page 289 of 395 �IIATE NNID �IE`T�!��i3OD G�"" S EC AL TAX �....... ��ON �AX �U�A "41 CU"I'�� I �U��U�� The Special Tax authorized by the Bayfront Project Special Tax Financing District (the "District")shaUbe levied on all Taxable Property and collected within the District as provided herein commencing in Fiscal Year 2020-2021, in an amount determined by the City Council of the City of Chula Vista, acting as the legislative body of the District, through the application of the amended nate and method of apportionment of the Special Tax set forth below (the "Amended RMA"). All of the real property within the District unless exempted by law or by the provisions hereof, shall betaxed for the purposes, to the extent, and inthe manner herein provided. The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 ofTitle 5ofthe Government Code ofthe State ofCalifornia. "Assessor's Parcel° means lot orparcel designated on an Assessor's Parcel Map with an assigned Assessor's Parcel number within the boundaries ofthe District. "Assessor's Parcel Map= means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Bond Documents" means any indenture of trust, bond indenture, fiscal agent agreement, trust agreement, loan agreement, resolution or other instrument setting forth the terms of any Bonds, as modified, amended and/or supplemented from time totime, and any instrument replacing or supplementing the same. "Bonds" means any binding obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax has been pledged. "Boundary Map" means the "Map of Proposed Boundaries of the Bayfront Project Special Tax Financing District, City of Chula Vista, County of San Diego, State of California," filed September 12, 2019 in Book 48 of Maps of Assessments and Community Facilities Districts in the office of the County Recorder. "Calendar Year= means the period commencing January 1 of any year and ending the following December 31. °Cammpsite=shall have the meaning given such term inChapter 3.G1. "Campsite Property" means an Assessor's Parcel of Taxable Property which consists of any Campsite or Campsites. "Chap -ter 3.61=means Chapter 3.G1ofthe Chula Vista Municipal Code. 2021-02-16 Agenda Packet Page 290 of 395 °City=means the City ofChula Vista. "City Council" means the City Council of the City, acting as the legislative body of the District, or its designee. "City Manager" means the City Manager ofthe City. °County=means the County ofSan Diego. "Director of Finance" means the Director ofFinance ofthe City. "District" means the Bayfront Project Special Tax Financing District established by the City pursuant toChapter 3.G1. "Effective Date= means the first day of the month immediately following the effective date of the ordinance enacted by the City Council providing for the levy of the Special Tax pursuant to the Amended RMA. "Exempt Property= means all Assessor's Parcels within the District which are exempt from the Special Tax pursuant tolaw orSection Fherein. "Fiscal Year" means the period commencing onJuly 1ofany year and ending the following June 3O. °HoteU=shall have the meaning given such term inChapter 3.G1. "Hotel Property" means an Assessor's Parcel of Taxable Property which consists of any Hotel or Hotels. °Landovmner=shall have the meaning given such term inChapter 3.G1. "Maximum Special Tax Rate= means the maximum rate of the Special Tax determined in accordance with Section Cbelow, which may belevied for the privilege ofOccupancy byTransients of the Campsite(s) or Hotel(s), as applicable, located on each Assessor's Parcel of Campsite Property orHotel Property. "Occupancy" shall have the meaning given such term in Chapter 3.61. "Operator" shall have the meaning given such term in Chapter 3.61. "Public Property" means any property within the boundaries of the District that is owned or held in trust by or irrevocably dedicated to the City, the federal government, the State of California, the County, the Port District, orany other public agency. °Rent"shall have the meaning given such term inChapter 3.G1. "Resolution of Formation" means the resolution adopted by the City Council pursuant to Chapter 3.61 establishing the District. "Special Tax" means the special tax authorized by the District to be levied by the City Council pursuant toChapter 3.G1. =Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant tolaw orthis Rate and Method ofApportionment ofSpecial Tax. =Tnansient~shall have the meaning given such term inChapter 3.G1. C I��U�U��U�� Beginning with Fiscal Year 2020-2021, each Assessor's Parcel shall be classified as Taxable Property or 2021-02-16 Agenda Packet Page 291 of 395 Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall befurther classified as Campsite Property or Hotel Property. Commencing with Fiscal Year 2020-2021, all Campsite Property and Hotel Property shall be subject to the levy of the Special Tax pursuant to Section C below. The Maximum Special Tax Rate of the Special Tax authorized to be levied on each Assessor's Parcel classified as Campsite Property or Hotel Property shall be determined pursuant toTable 1 below. The City Council may, by resolution, levy the Special Tax at a nate less than the Maximum Special Tax Rate, such rate to become effective no sooner than the first day of the first month at least sixty (GO) days following the effective date of such resolution. Should the City Council adopt a resolution levying the Special Tax ata rate less than the Maximum Special Tax Rate, such rate shall remain in effect until the City Council adopts a different Special Tax rate by resolution, subject always to the limitations of the Maximum Special Tax Rate. Period Beginning 0n"Aw One day prior toEffective Date June 3O,2OGO June 3O,2O75 June 3O,2O8G Maximum Special Tax Rate 5.O96ofRent 5.59&ofRent 2.59&ofRent 1.O96ofRent The Special Tax associated with Rent that is charged for Occupancy by Transients shall be considered levied at the same time the Transient ceases such Occupancy. If a Public Property is classified as Campsite Property or Hotel Property due to the grant of lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon, the Special Tax shall only be levied during such time that such grant of lease or possessory interest is effective and shall cease upon the termination or expiration of such grant of lease or possessory interest. The Special Tax shall be due and remitted pursuant to the provisions of Section 3.61.120 of Chapter 3.61. TAK�S The Special Tax may not beprepaid. �~ �X M 10 M S Assessor's Parcels not classified as Campsite Property or Hotel Property shall beexempt from the levy of the Special Tax. G~�AUU��TO ��NAUT TAX If the Operator of any Campsite or Hotel located on an Assessor's Parcel of Campsite Property or Hotel Property, or the Landowner of an Assessor's Parcel of Campsite Property or Hotel Property that is not Public Property, fails or refuses to pay the Special Tax levied on such Assessor's Parcel when due, the Director of Finance shall proceed in such manner as deemed best toobtain facts and information on 2021-02-16 Agenda Packet Page 292 of 395 which tobase his/her estimate ofsuch Special Tax. As soon as the Director of Finance has acquired such facts and information upon which to base such Special Tax for such Campsite Property or Hotel Property, the Director of Finance shall proceed to determine the amount of such Special Tax due plus any penalties thereon, as described below ("Determination of Special Tax Due"). In the case that such determination is made, the Director of Finance shall give a Determination of Special Tax Due by serving itpersonally orbydepositing it in the United States mail, postage prepaid, addressed tosuch Operator or such Landowner, as applicable, at its last known address. Such Operator or such Landowner, as applicable, may file an appeal as provided in Section | herein. The Special Tax on any Campsite Property or Hotel Property which is not paid within the time required shall be subject tothe same penalties applicable tothe transient occupancy tax in subsections A and B of Section 3.40.080 of the Chula Vista Municipal Code. For any Special Taxes and penalties that remain outstanding as of July 1 of each Fiscal Year, the City Council may direct the Director of Finance to cause the submission of any of the delinquent Special Taxes and penalties to the County for inclusion on the property tax bill for such Assessor's Parcel(s) in accordance with Section 3.61.130 of Chapter 3.61; provided, however, that any delinquent Special Taxes and penalties with respect to any Assessor's Parcel of Public Property that is classified as Campsite Property or Hotel Property due to the grant of lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon shall only be levied on and constitute a lien against the Operator's leasehold or possessory interest in such Assessor's Parcel of Public Property, all as contemplated by Section 5334O.1ofthe Act, asmodified by Chapter 3.G1,and shall not beanobligation for which the Landowner ofsuch Assessor's Parcel ofPublic Property isbilled orresponsible. TAX AU UIT It shall be the duty of the Operator of any Campsite or Hotel located on any Assessor's Parcel classified as Campsite Property or Hotel Property that is subject to the Special Tax to keep and preserve fora period of three years, all records as may be deemed necessary by the Director of Finance (and that will, at a minimum, include a record of all Rents collected) to determine the Special Taxes levied upon such Campsite Property or Hotel Property by the City Council. The Director of Finance shall have the right to inspect such records atall reasonable times. Any Operator of a Campsite or Hotel located on any Campsite Property or Hotel Property or any Landowner of any Campsite Property or Hotel Property claiming that the amount or application of the Special Tax reflected in any Determination of Special Tax Due on such Campsite Property or Hotel Property is not correct may appeal such Determination of Special Tax Due by filing a notice of appeal with the City Clerk within fifteen (15) calendar days of the serving or mailing of such Determination of Special Tax Due. If such appeal is made by an Operator that is not also the Landowner of such property, then the Operator shall also provide a copy of such notice of appeal to the Landowner at the same time the Operator files the notice of appeal with the City Clerk. Upon receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the District a special three-member Appeal Committee. The Appeal Committee may establish such procedures as it deems necessary to undertake the review ofany such appeal. The Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals by Landowners, or Operators, as herein specified. The decision of the Appeal Committee shall be final, conclusive, binding as to all persons and shall be served upon the Operator or Landowner in writing at the last known address of such Operator orLandowner. Any amount found due shall beimmediately due and payable upon service 2021-02-16 Agenda Packet Page 293 of 395 ofthe Appeal Committee findings. Ifthe Appeal Committee decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the Operator or Landowner, a cash refund shall not be made, but a credit shall be given against the future Special Taxes on that Assessor's Parcel. J. T ��l NA 0 T S CUAU TAX S The Special Tax shall be levied as long as necessary to pay for authorized expenditures as specified in Section 3.G1.O8OofChapter 3.G1but tonolater than June 3O,2O8G. 2021-02-16 Agenda Packet Page 294 of 395 i 21,11 1, (to be attached prior to execution.) im 2021-02-16 Agenda Packet Page 295 of 395 r 1. Convention Center Facility (as defined in Chula Vista Municipal Cade Chapter 3.61); 2. Street improvements, including grading, paving, curbs, gutters, sidewalks, street signalization, signage, street lights, furnishings, and parkway and median landscaping related thereto; 3. Gateway signage; 4. Pedestrian and bicycle paths; 5. Storm drains and ether water quality devices to ensure regional permit compliance; 6. Public utilities (including but not limited to water, reclaimed water, sewer, electric, gas, and telephone); 7. Public parks, open space and recreation facilities; 3. Fire protection and emergency response facilities; 9. Parking improvements; 10. Museums and cultural facilities; 11. Ecological and sustainability educational improvements; 12. Energy efficiency, water conservation, and renewable energy improvements; 13. Land, rights -cif -unsay and easements necessary for any facilities to be financed by the District; and 14. Equipment, apparatus, facilities or fixtures with an expected useful life of 5 years or longer necessary for any of the foregoing or necessary to provide any of the services described in Exhibit E. 2021-02-16 Agenda Packet Page 296 of 395 (to be attached prior to execution.) 2021-02-16 Agenda Packet Page 297 of 395 Authorized Services shall include the operation, maintenance, servicing, and replacement of the authorized Improvements (see Exhibit ®), together with the following additional Services: 1. Landscaping, including, but not limited to trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; 2. Facilities that are directly related to storm water conveyance, including, but not limited to pipe and drainage inlets, detention basins, linear bioretention, and parks; 3. Walls and fencing; 4. Parks, including landscaping, facilities, walls, fencing, lighting, and trails; 5. Streetscape improvements, including lighting, furnishings and appurtenances; 6. Parking improvements; 7. Transportation services; 3. Promotion of public events and tourism; 9. Security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the City or other service provider; and 10. Repair of the authorized Improvements. For purposes of this description of the Services to be funded by the levy of Special Taxes within the District, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, management and servicing of any of the authorized Improvements, including: 1. Repair, removal, or replacement of the authorized Improvements; 2. Providing for the life, growth, health, and beauty of habi'ta't, including the cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; 3. The removal of trimmings, rubbish, debris, silt, and other solid waste; 4. The cleaning, sandblasting, and painting of walls and other facilities to remove or cover graffiti; 5. The elimination, control, and removal of rodents and vermin; 6. The operation and management of open space and natural habi'ta't, including biological monitoring and evaluation of collected data; 7. The conduct of biological activities necessary to sustain the species being protected; 3. The operation and maintenance of pedestrian bridge and community gardens within or appurtenant to such open space or habitat area(s); and 9. The maintenance and cleaning of drainage and other storm water control facilities required to provide storm water quality control. "Service" or "servicing" means the furnishing of: 10. Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or other operation of any other Improvements; and 11. Water for the irrigation of any landscaping or the operation or maintenance of any other Improvements. 2021-02-16 Agenda Packet Page 298 of 395 RESOLUI-ION NO, RESOLUI-ION OF ,FH ary COUNCIL OF ,FH ary OF CHULA vis,FA, AcrING AS FHE LEDISI A,rIVE BODY OF FHE BAYFRON'r PROJEcr SPECIAL 'FAX FINANCING Dismicr DECLARING i,rs IN,rEN,rION 'ro CONSIDER CHANGES 'ro FHE RA,rE AND ME,FHOD OF APPOR,rIONMEN'r OF SPECIAL 'FAXES AUFHORIZED rO BE LEVIED ,FH RI AND EXPAND rERRrrORY WHEREIN IMPROVEMEN'rs MAY BE LOCA,rED AND SERVICES MAY BE PROVIDED WHEREAS, the City Council (the "City Council") of the City of Chula Vista (the "City"), has previously initiated proceedings, held a public hearing, formed the Bayfront Project Special Fax Financing District (the "District") by the adoption of Resolution No. 2019-220 on November 19, 2019 ("Resolution No. 200-220"), conducted an election and received a favorable vote from the qualified electors of the District, authorizing the levy of special taxes in the District, all as authorized pursuant to Chapter 3.6l of the Chula Vista Municipal Code (Chapter 3.6I); and WHEREAS, City and the San Diego Unified Port District (the "Port District") entered into that certain Joint Community Facilities Agreement (Chula Vista Bayfront Project Special 'rax Financing District), which is proposed to be amended and restated by the Amended and Restated Joint Community Facilities Agreement on file with the City Clerk and to be approved concurrently with the adoption of this Resolution (the "JCI A") to set forth the essential terms for the allocation and payment of special tax revenues generated from the District; and WHEREAS, the qualified electors of the District, voting in a special mail ballot election held on February I8, 2020, approved Proposition A which authorized the District to levy special taxes at rates not to exceed 5% of Rent annually charged on Hotel Property and Campsite Property (as such terms are defined Resolution No. 20I9-220) within the District pursuant to a rate and method of apportionment of such special taxes (the rate and method of apportionment of special taxes approved shall be referred to as the "Existing RNIA"); and WHEREAS, in order to generate additional funds for public improvements and services to be Financed by the District, the City Council, acting as the legislative body of the District, has determined that the public convenience and necessity require the City Council to initiate proceedings to consider modifications to the Existing RMA to: ( l ) increase the maximum rate at which to levy the special tax to 5.5% of Rent annually charged on Hotel Property and Campsite Property and (2) extend the term of the special tax; and WHEREAS, Resolution No. 200-220 set forth a limitation on territory wherein the Improvements (as defined in Resolution No. 200-220) could be located and wherein the Services (as defined in Resolution No. 20I9-220) could be provided; and WHEREAS, an expansion of the territory wherein the Improvements may be located and the Services may be provided would be beneficial to the residents and tenants of, and visitors to, the District; and WHEREAS, the City Council, acting as the legislative body of the District, has 2021-02-16 Agenda Packet Page 299 of 395 Resolution No. Page 2 determined that the public convenience and necessity require the City Council to initiate proceedings to consider an expansion of the territory wherein the Improvements may be located and the Services may be provided; and WHEREAS, the City Council desires to initiate such proceedings and to set the time and place for a public hearing on this Resolution, NOW, ,FHEISI FOR E, BE i,r RESOLVED BY,FHE ary COUNCIL OF ,FH ary OF CHULA vis,FA, ACTING AS 'FHE LEGISLA,rIVE BODY OF THE BAYFRON'r PROJEC,r SPECIAL,TAX FINANCING Dismicr, AS FOLLOWS: SEC,rION I. Recitals, 'rhe above recitals are all true and correct. SEC,rION 2. Determinations. It is hereby determined by this City Council that public convenience and necessity require modification of the Existing RMA and changes to the territory where the Improvements may be located and the Services may be provided. SEC,rION 3. Declaration of Intention to Consider the Modifications of the Exis"tin , RMA, 'This City Council hereby declares its intention to consider modification of the Existing RMA so that the rate and method of apportionment of special taxes authorized to be levied within the District reads as set forth in Exhibit I attached hereto and incorporated herein by this reference (the "Amended RMA"). SEC,rION 4. Declaration of Intention to Consider Elxpansion to 'Territory Wherein Provided.. 'This City Council hereby declares its intention consider an expansion to the territory where Improvements may be located and Services may be provided, 'rhe Improvements shall be located, and the Services shall be provided, within or outside the CVBMP (as defined in the JCFA) territory, subject to the priorities established in the JCFA. SEC,rION 5. Notice of Public Hearin),L, No,rICE IS GIVEN rHA,r on April I3, 2021, at the hour of 5:00 o'clock p.m., in the regular meeting place of the City Council being the Council Chambers, City Hall, located at 276 Fourth Avenue, Chula Vista, California, a public hearing will be held where this City Council will consider this Resolution and to consider the approval of the modification of the Existing RMA and the expansion of territory wherein the Improvements shall be located and the Services shall be provided, all as described herein. At the above-mentioned time and place for public hearing any persons interested, including taxpayers and property owners, may appear and be heard, in accordance with the current format of City Council meetings pursuant to the Governor of the State of California's Executive Order N-29-20, should it still be in effect, 'rhe testimony of all interested persons for or against the modification of the Existing RMA or the expansion of territory wherein the Improvements shall be located and the Services shall be provided will be heard and considered. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. Any written protest not personally presented by the author of such protest at the public hearing shall be Cited with the City Clerk of the City (the "City Clerk") at or before the time fixed for the public hearing. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing, 2021-02-16 Agenda Packet Page 300 of 395 If a written majority protest as determined pursuant to Chapter 3.6l is Filed against the proposed modification of the Existing RMA, the proposed modification shall be eliminated from the resolution and the proceedings with respect to the modification of the Existing RMA shall be abandoned. If a written majority protest as determined pursuant to Chapter 3.6I is Filed against the expansion of territory wherein the Improvements shall be located and the Services shall be provided, the expansion of territory shall be eliminated from the resolution and the proceedings with respect to the expansion of territory wherein the Improvements shall be located and the Services shall be provided shall be abandoned. Notwithstanding the abandonment of the proceedings with respect to the modification of the Existing RMA or the expansion of territory wherein the Improvements shall be located and the Services shall be provided, new proceedings to modify the Existing RMA and expand the territory wherein the Improvements shall be located and the Services shall be provided may be initiated at any time thereafter, 'The public hearing may be continued from time to time without further notice, but shall be completed within two years of the original hearing date. SEC'rION 6. E®rt. A report (the "Report") was submitted by Willdan Financial Services ("Willdan"), as special tax consultant, at the Establishment Public Hearing (as defined in Resolution No. 20I9-220) which contained a brief description of the Improvements and Services by type which would adequately meet the needs of the District and their estimate of the cost of providing those Improvements and Services and, with regard to those Improvements proposed to be acquired upon the completion thereof and those Incidental Expenses (as such term is defined in Resolution 2019-220) proposed to be paid for, an estimate of the fair and reasonable cost of such Improvements and such Incidental Expenses, 'This City Council hereby directs Willdan to amend the Report to reflect the proposed modification of the Existing RMA and the expansion of territory where the Improvements shall be located and the Services shall be provided. Such report shall be made a part of the record of the public hearing to be held pursuant to Section 5 hereof, SEC'rION 7. Election, If, following the public hearing described in Section 5, the City Council determines to approve the Amended RMA and the expansion of territory wherein the Improvements shall be located and the Services shall be provided, the City Council shall then submit question of levying the special taxes pursuant to the Amended RMA and expanding the territory in which the Improvements shall be located and the Services shall be provided to the Landowners (as such term is defined in Chapter 3.6I) as the qualified electors of the District pursuant to Chapter 3.6l and the applicable provisions of the California Elections Code, Each Landowner, or the authorized representative thereof, shall have one (I) vote for each acre or portion of an acre of land owned within the District. SECTION 8. Publication of Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a notice of public hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 606I of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing, 'The City Clerk shall also cause notice to be given by first-class mail to each Landowner of property within the District. Such notice shall be mailed at least I5 days before the public 2021-02-16 Agenda Packet Page 301 of 395 Resolution No. Page 4 hearing and shall contain tae same ifon-nation as is required to be contained in the notice published pursuant to the preceding paragraph, 'riffany Allen Director of Development Services Approved as to form by: Glen \,Q00 gins City Attorney 2021-02-16 Agenda Packet Page 302 of 395 AMENDED RA,rE AND ME,rHOD OF APPOR,rIONMEN'r 2021-02-16 Agenda Packet Page 303 of 395 �IIATE NNID �IVIE`TN�OD G�"" S EC AL TAX �....... ��ON �AX �U�A "41 CU"I'�� I �U��U�� The Special Tax authorized by the Bayfront Project Special Tax Financing District (the "District")shaUbe levied on all Taxable Property and collected within the District as provided herein commencing in Fiscal Year 2020-2021, in an amount determined by the City Council of the City of Chula Vista, acting as the legislative body of the District, through the application of the z)i,nein�je�j_rate and method of apportionment ofthe Special Tax set forth be|o All ofthe real property within the District unless exempted by law or by the provisions hereof, shall betaxed for the purposes, to the extent, and inthe manner herein provided. The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 ofTitle 5ofthe Government Code ofthe State ofCalifornia. "Assessor's Parcel° means lot orparcel designated on an Assessor's Parcel Map with an assigned Assessor's Parcel number within the boundaries ofthe District. "Assessor's Parcel Map= means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Bond Documents" means any indenture of trust, bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument setting forth the terms of any Bonds, as modified, amended and/or supplemented from time totime, and any instrument replacing or supplementing the same. "Bonds" means any binding obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax has been pledged. "Boundary Map= means the "Map of Proposed Boundaries of the Bayfront Project Special Tax Financing District, City of Chula Vista, County of San Diego, State of California," filed September 12, 2019 in Book 48 of Maps of Assessments and Community Facilities Districts in the office of the County Recorder. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "Cammpsite=shall have the meaning given such term inChapter 3.G1. "Campsite Property= means an Assessor's Parcel of Taxable Property which consists of any Campsite or Campsites. "Chap -ter 3.61=means Chapter 3.G1ofthe Chula Vista Municipal Code. 2021-02-16 Agenda Packet Page 304 of 395 °City=means the City ofChula Vista. "City Council" means the City Council of the City, acting as the legislative body of the District, or its designee. "City Manager" means the City Manager ofthe City. °County=means the County ofSan Diego. "Director of Finance" means the Director ofFinance ofthe City. "District" means the Bayfront Project Special Tax Financing District established by the City pursuant toChapter 3.G1. "Effective "Exempt Property= means all Assessor's Parcels within the District which are exempt from the Special Tax pursuant tolaw orSection Fherein. "Fiscal Year" means the period commencing onJuly 1ofany year and ending the following June 3O. °HoteU=shall have the meaning given such term inChapter 3.G1. "Hotel Property= means an Assessor's Parcel of Taxable Property which consists of any Hotel or Hotels. °Landovmner=shall have the meaning given such term inChapter 3.G1. "Maximum An ii;ua ............ Special Tax Rate" of for the privilege of Occupancy by Transients of the Campsite(s) or Hotel(s), as applicable, located on each Assessor's Parcel ofCampsite Property orHotel Property. "Occupancy" shall have the meaning given such term in Chapter 3.61. "Operator" shall have the meaning given such term in Chapter 3.61. "Public Property" means any property within the boundaries of the District that is owned or held in trust by or irrevocably dedicated to the City, the federal government, the State of California, the County, the Port District, orany other public agency. °Rent"shall have the meaning given such term inChapter 3.G1. "Resolution of Formation" means the resolution adopted by the City Council pursuant to Chapter 3.G1establishing the District. "Special Tax" means the special tax authorized by the District to be levied by the City Council pursuant toChapter 3.G1. "Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant tolaw orthis Rate and Method ofApportionment ofSpecial Tax. =Tnansient~shall have the meaning given such term inChapter 3.G1. MI 2021-02-16 Agenda Packet Page 305 of 395 C I��U�U��U�� with Fiscal Year 2020-2021, each Assessor's Parcel shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall befurther classified as Campsite Property or Hotel Property. Commencing with Fiscal Year 2020-2021, all Campsite Property and Hotel Property shall be subject to the levy of the Special Tax pursuant toSection Cbelow. TAX The Special Tax associated with Rent that is charged for Occupancy by Transients shall be considered levied at the same time the Transient ceases such Occupancy. If a Public Property is classified as Campsite Property or Hotel Property due to the grant of lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon, the Special Tax shall only be levied during such time that such grant of lease or possessory interest is effective and shall cease upon the termination or expiration of such grant of lease or possessory interest. The Special Tax shall be due and remitted pursuant to the provisions of Section 3.61.120 of Chapter 3.61. TAK�S 2021-02-16 Agenda Packet Page 306 of 395 Assessor's Parcels not classified as Campsite Property or Hotel Property shall beexempt from the levy of the Special Tax. G~�AUU��TO ��NAUT TAX If the Operator of any Campsite or Hotel located on an Assessor's Parcel of Campsite Property or Hotel Property, or the Landowner of an Assessor's Parcel of Campsite Property or Hotel Property that is not Public Property, fails or refuses to pay the Special Tax levied on such Assessor's Parcel when due, the Director of Finance shall proceed in such manner as deemed best toobtain facts and information on which to base his/her estimate of such Special Tax. As soon as the Director of Finance has acquired such facts and information upon which to base such Special Tax for such Campsite Property or Hotel Property, the Director of Finance shall proceed to determine the amount of such Special Tax due plus any penalties thereon, as described below ("Determination of Special Tax Due"). In the case that such determination is made, the Director of Finance shall give a Determination of Special Tax Due by serving itpersonally orbydepositing it in the United States mail, postage prepaid, addressed tosuch Operator or such Landowner, as applicable, at its last known address. Such Operator or such Landowner, as applicable, may file an appeal as provided in Section J1 herein. The Special Tax on any Campsite Property or Hotel Property which is not paid within the time required shall be subject tothe same penalties applicable tothe transient occupancy tax in subsections A and B of Section 3.40.080 of the Chula Vista Municipal Code. For any Special Taxes and penalties that remain outstanding as of July 1 of each Fiscal Year, the City Council may direct the Director of Finance to cause the submission of any of the delinquent Special Taxes and penalties to the County for inclusion on the property tax bill for such Assessor's Parcel(s) in accordance with Section 3.61.130 of Chapter 3.61; provided, however, that any delinquent Special Taxes and penalties with respect to any Assessor's Parcel of Public Property that is classified as Campsite Property or Hotel Property due to the grant of lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite orHotel thereon shall only be levied on and constitute lien against the Operator's leasehold or possessory interest in such Assessor's Parcel of Public Property, all as contemplated by Section 53340.1 of the Act as modified by Chapter 3.61, and shall not be an obligation for which the Landowner ofsuch Assessor's Parcel ofPublic Property isbilled orresponsible. TAX AU UIT It shall be the duty of the Operator of any Campsite or Hotel located on any Assessor's Parcel classified as Campsite Property or Hotel Property that is subject to the Special Tax to keep and preserve fora period of three years, all records as may be deemed necessary by the Director of Finance (and that will, at a minimum, include a record of all Rents collected) to determine the Special Taxes levied upon such Campsite Property or Hotel Property by the City Council. The Director of Finance shall have the right to inspect such records atall reasonable times. Any Operator of a Campsite or Hotel located on any Campsite Property or Hotel Property or any Landowner of any Campsite Property or Hotel Property claiming that the amount or application of the Special Tax reflected in any Determination of Special Tax Due on such Campsite Property or Hotel Property is not correct may appeal such Determination of Special Tax Due by filing a notice of appeal with the City Clerk within fifteen (15) calendar days of the serving or mailing of such Determination of 202k-02-k6Agenda Packet Page 307of395 Special Tax Due. If such appeal is made by an Operator that is not also the Landowner of such property, then the Operator shall also provide a copy of such notice of appeal to the Landowner at the same time the Operator files the notice of appeal with the City Clerk. Upon receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the District a special three-member Appeal Committee. The Appeal Committee may establish such procedures as it deems necessary to undertake the review ofany such appeal. The Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals by Landowners, or Operators, as herein specified. The decision of the Appeal Committee shall be final, conclusive, binding as to all persons and shall be served upon the Operator or Landowner in writing at the last known address of such Operator orLandowner. Any amount found due shall beimmediately due and payable upon service ofthe Appeal Committee findings. |fthe Appeal Committee decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the Operator or Landowner, a cash refund shall not be made, but a credit shall be given against the future Special Taxes on that Assessor's Parcel. J. T ��l NA 0 T S CUAU TAX S The Special Tax shall be levied as long as necessary to pay for authorized expenditures as specified in Section 3.61.080 of Chapter 3.61 W. 2021-02-16 Agenda Packet Page 308 of 395 �IIATE NNID �IE`T�!��i3OD G�"" S EC AL TAX �....... ��ON �AX �U�A "41 CU"I'�� I �U��U�� The Special Tax authorized by the Bayfront Project Special Tax Financing District (the "District")shaUbe levied on all Taxable Property and collected within the District as provided herein commencing in Fiscal Year 2020-2021, in an amount determined by the City Council of the City of Chula Vista, acting as the legislative body of the District, through the application of the amended nate and method of apportionment of the Special Tax set forth below (the "Amended RMA"). All of the real property within the District unless exempted by law or by the provisions hereof, shall betaxed for the purposes, to the extent, and inthe manner herein provided. The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 ofTitle 5ofthe Government Code ofthe State ofCalifornia. "Assessor's Parcel° means lot orparcel designated on an Assessor's Parcel Map with an assigned Assessor's Parcel number within the boundaries ofthe District. "Assessor's Parcel Map= means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Bond Documents" means any indenture of trust, bond indenture, fiscal agent agreement, trust agreement, loan agreement, resolution or other instrument setting forth the terms of any Bonds, as modified, amended and/or supplemented from time totime, and any instrument replacing or supplementing the same. "Bonds" means any binding obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax has been pledged. "Boundary Map" means the "Map of Proposed Boundaries of the Bayfront Project Special Tax Financing District, City of Chula Vista, County of San Diego, State of California," filed September 12, 2019 in Book 48 of Maps of Assessments and Community Facilities Districts in the office of the County Recorder. "Calendar Year= means the period commencing January 1 of any year and ending the following December 31. °Cammpsite=shall have the meaning given such term inChapter 3.G1. "Campsite Property" means an Assessor's Parcel of Taxable Property which consists of any Campsite or Campsites. "Chap -ter 3.61=means Chapter 3.G1ofthe Chula Vista Municipal Code. gal 2021-02-16 Agenda Packet Page 309 of 395 °City=means the City ofChula Vista. "City Council" means the City Council of the City, acting as the legislative body of the District, or its designee. "City Manager" means the City Manager ofthe City. °County=means the County ofSan Diego. "Director of Finance" means the Director ofFinance ofthe City. "District" means the Bayfront Project Special Tax Financing District established by the City pursuant toChapter 3.G1. "Effective Date= means the first day of the month immediately following the effective date of the ordinance enacted by the City Council providing for the levy of the Special Tax pursuant to the Amended RMA. "Exempt Property= means all Assessor's Parcels within the District which are exempt from the Special Tax pursuant tolaw orSection Fherein. "Fiscal Year" means the period commencing onJuly 1ofany year and ending the following June 3O. °HoteU=shall have the meaning given such term inChapter 3.G1. "Hotel Property" means an Assessor's Parcel of Taxable Property which consists of any Hotel or Hotels. °Landovmner=shall have the meaning given such term inChapter 3.G1. "Maximum Special Tax Rate= means the maximum rate of the Special Tax determined in accordance with Section Cbelow, which may belevied for the privilege ofOccupancy byTransients of the Campsite(s) or Hotel(s), as applicable, located on each Assessor's Parcel of Campsite Property orHotel Property. "Occupancy" shall have the meaning given such term in Chapter 3.61. "Operator" shall have the meaning given such term in Chapter 3.61. "Public Property" means any property within the boundaries of the District that is owned or held in trust by or irrevocably dedicated to the City, the federal government, the State of California, the County, the Port District, orany other public agency. °Rent"shall have the meaning given such term inChapter 3.G1. "Resolution of Formation" means the resolution adopted by the City Council pursuant to Chapter 3.61 establishing the District. "Special Tax" means the special tax authorized by the District to be levied by the City Council pursuant toChapter 3.G1. =Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant tolaw orthis Rate and Method ofApportionment ofSpecial Tax. =Tnansient~shall have the meaning given such term inChapter 3.G1. NMI 2021-02-16 Agenda Packet Page 3 10 of 395 C I S Beginning with Fiscal Year 2020-2021, each Assessor's Parcel shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall befurther classified as Campsite Property or Hotel Property. Commencing with Fiscal Year 2020-2021, all Campsite Property and Hotel Property shall be subject to the levy of the Special Tax pursuant to Section C below. C. TAX The Maximum Special Tax Rate of the Special Tax authorized to be levied on each Assessor's Parcel classified as Campsite Property or Hotel Property shall be determined pursuant toTable 1 below. The City Council may, by resolution, levy the Special Tax at a rate less than the Maximum Special Tax Rate, such rate to become effective no sooner than the first day of the first month at least sixty (GO) days following the effective date of such resolution. Should the City Council adopt a resolution levying the Special Tax ata rate less than the Maximum Special Tax Rate, such rate shall remain in effect until the City Council adopts a different Special Tax rate by resolution, subject always to the limitations of the Maximum Special Tax Rate. 09MM Period Beginning Period Ending Maximum Special Tax Rate July 1, 2020 One day prior to Effective Date 5.0% of Rent Effective Date June 30, 2060 5.5% of Rent July 1, 2060 June 30, 2075 2.5% of Rent July 1, 2075 June 30, 2086 1 1.0% of Rent The Special Tax associated with Rent that is charged for Occupancy by Transients shall be considered levied at the same time the Transient ceases such Occupancy. If a Public Property is classified as Campsite Property or Hotel Property due to the grant of lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon, the Special Tax shall only be levied during such time that such grant of lease or possessory interest is effective and shall cease upon the termination or expiration of such grant of lease or possessory interest. �~ NA A M M ��l 0 COU U CT 0' The Special Tax shall be due and remitted pursuant to the provisions of Section 3.61.120 of Chapter 3.61. TAK�S The Special Tax may not beprepaid. �~ �X M 10 M S Assessor's Parcels not classified as Campsite Property or Hotel Property shall beexempt from the levy of the Special Tax. G~�AUU��TO ��NAUT TAX If the Operator of any Campsite or Hotel located on an Assessor's Parcel of Campsite Property or Hotel C-3 202k-02-k6Agenda Packet Page 3kkof395 Property, or the Landowner of an Assessor's Parcel of Campsite Property or Hotel Property that is not Public Property, fails or refuses to pay the Special Tax levied on such Assessor's Parcel when due, the Director of Finance shall proceed in such manner as deemed best toobtain facts and information on which to base his/her estimate of such Special Tax. As soon as the Director of Finance has acquired such facts and information upon which to base such Special Tax for such Campsite Property or Hotel Property, the Director of Finance shall proceed to determine the amount of such Special Tax due plus any penalties thereon, as described below ("Determination of Special Tax Due"). In the case that such determination is made, the Director of Finance shall give a Determination of Special Tax Due by serving itpersonally orbydepositing it in the United States mail, postage prepaid, addressed tosuch Operator or such Landowner, as applicable, at its last known address. Such Operator or such Landowner, as applicable, may file an appeal as provided in Section | herein. The Special Tax on any Campsite Property or Hotel Property which is not paid within the time required shall be subject tothe same penalties applicable tothe transient occupancy tax in subsections A and B of Section 3.40.080 of the Chula Vista Municipal Code. For any Special Taxes and penalties that remain outstanding as of July 1 of each Fiscal Year, the City Council may direct the Director of Finance to cause the submission of any of the delinquent Special Taxes and penalties to the County for inclusion on the property tax bill for such Assessor's Parcel(s) in accordance with Section 3.61.130 of Chapter 3.61; provided, however, that any delinquent Special Taxes and penalties with respect to any Assessor's Parcel of Public Property that is classified as Campsite Property or Hotel Property due to the grant of lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon shall only be levied on and constitute a lien against the Operator's leasehold or possessory interest in such Assessor's Parcel of Public Property, all as contemplated by Section 5334O.1ofthe Act, asmodified by Chapter 3.G1,and shall not beanobligation for which the Landowner ofsuch Assessor's Parcel ofPublic Property isbilled orresponsible. TAX AU UIT It shall be the duty of the Operator of any Campsite or Hotel located on any Assessor's Parcel classified as Campsite Property or Hotel Property that is subject to the Special Tax to keep and preserve fora period of three years, all records as may be deemed necessary by the Director of Finance (and that will, at a minimum, include a record of all Rents collected) to determine the Special Taxes levied upon such Campsite Property or Hotel Property by the City Council. The Director of Finance shall have the right to inspect such records atall reasonable times. Any Operator of a Campsite or Hotel located on any Campsite Property or Hotel Property or any Landowner of any Campsite Property or Hotel Property claiming that the amount or application of the Special Tax reflected in any Determination of Special Tax Due on such Campsite Property or Hotel Property is not correct may appeal such Determination of Special Tax Due by filing a notice of appeal with the City Clerk within fifteen (15) calendar days of the serving or mailing of such Determination of Special Tax Due. If such appeal is made by an Operator that is not also the Landowner of such property, then the Operator shall also provide a copy of such notice of appeal to the Landowner at the same time the Operator files the notice of appeal with the City Clerk. Upon receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the District a special three-member Appeal Committee. The Appeal Committee may establish such procedures as it deems necessary to undertake the review ofany such appeal. The Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals by Landowners, or Operators, as NM 2021-02-16 Agenda Packet Page 3 12 of 395 herein specified. The decision of the Appeal Committee shall be final, conclusive, binding as to all persons and shall be served upon the Operator or Landowner in writing at the last known address of such Operator orLandowner. Any amount found due shall beimmediately due and payable upon service ofthe Appeal Committee findings. |fthe Appeal Committee decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the Operator or Landowner, a cash refund shall not be made, but a credit shall be given against the future Special Taxes on that Assessor's Parcel. J. T ��l NA 0 T S CUAU TAX S The Special Tax shall be levied as long as necessary to pay for authorized expenditures as specified in Section 3.G1.O8OofChapter 3.G1but tonolater than June 3O,2O8G. W. 2021-02-16 Agenda Packet Page 3 13 of 395 NNAENDED RIIII IIII\AE7lh °IOD OF APPOR`I0N[I: \AEINIT OF SPECIAL TAX BAY 0 �. .. . . . . J1111111 I ��" OJEC IIIIII S I�, I E C A L III AX II II I . . .. . . . . J A� . . .. . . ..Jell I. . .. . . .. J G D ll S111111 " l� C1111 The Special Tax authorized by the Bayfront Project Special Tax Financing District (the "District") shall be levied on all Taxable Property and collected within the District as provided herein commencing in Fiscal Year 2020-2021, in an amount determined by the City Council of the City of Chula Vista, acting as the legislative body of the District, through the application of the airriended rate and method of apportionment of the Special Tax set forth below ,r (the "Ainended 1f:�NAA")� All of the real property within the District, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Assessor's Parcel" means a lot or parcel designated on an Assessor's Parcel Map with an assigned Assessor's Parcel number within the boundaries of the District. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Bond Documents" means any indenture of trust, bond indenture, fiscal agent agreement, trust 29L99E)9]L l22n agreement, resolution or other instrument setting forth the terms of any Bonds, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Bonds" means any binding obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax has been pledged. "Boundary Map" means the "Map of Proposed Boundaries of the Bayfront Project Special Tax Financing District, City of Chula Vista, County of San Diego, State of California," filed September 12, 2019 in Book 48 of Maps of Assessments and Community Facilities Districts in the office of the County Recorder. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "Campsite" shall have the meaning given such term in Chapter 3.61. "Campsite Property" means an Assessor's Parcel of Taxable Property which consists of any Campsite or Campsites. "Chapter 3.61" means Chapter 3.61 of the Chula Vista Municipal Code. W1 2021-02-16 Agenda Packet Page 314 of 395 "City" means the City of Chula Vista. "City Council" means the City Council of the City, acting as the legislative body of the District, or its designee. "City Manager" means the City Manager of the City. "County" means the County of San Diego. "Director of Finance" means the Director of Finance of the City. "District" means the Bayfront Project Special Tax Financing District established by the City pursuant to Chapter 3.61. '1ective IIIptvM" 'neans flhe fli-st day gf flhe ii-nonflI irnrnediat(fly fgflgy�ing dhe effective date of dhe oirdinance enacied [)y 1�2g City [,A-Oviding fg- tt] Ilevy C)[ flIe Sr)e(Jill IU I2u [SLMIIt to flhe Arn e III d e d�1 M A "Exempt Property" means all Assessor's Parcels within the District which are exempt from the Special Tax pursuant to law or Section F herein. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Hotel" shall have the meaning given such term in Chapter 3.61. "Hotel Property" means an Assessor's Parcel of Taxable Property which consists of any Hotel or Hotels. "Landowner" shall have the meaning given such term in Chapter 3.61. "Maximum Tax Rate" �ih a [7111114o 1: ............. a iny ............. pi �iea .............. ��ea F,7 .............. H et ............. ex6eed .............. P*e ............. pe cee ii;;,t, (9 41 )��11(�MIS flh(� 11TWIXI11TWITI 11'ilt(� of a ............... 4@H't ............. el:)a ed. .............. d W 4 Rg ............. su 61:) ............... sea ............. 4ea ci[ie Sr,)e(Jifl Iax deteiri-nined in accc) -da In ce WWI section C [l)(flow, W[Iic[l 'Tlay l�� evied for the privilege of Occupancy by Transients of the Campsite(s) or Hotel(s), as applicable, located on each Assessor's Parcel of Campsite Property or Hotel Property. "Occupancy" shall have the meaning given such term in Chapter 3.61. "Operator" shall have the meaning given such term in Chapter 3.61. "Public Property" means any property within the boundaries of the District that is owned or held in trust by or irrevocably dedicated to the City, the federal government, the State of California, the County, the Port District, or any other public agency. "Rent" shall have the meaning given such term in Chapter 3.61. "Resolution of Formation" means the resolution adopted by the City Council pursuant to Chapter 3.61 establishing the District. "Special Tax" means the special tax authorized by the District to be levied by the City Council pursuant to Chapter 3.61. "Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant to law or this Rate and Method of Apportionment of Special Tax. "Transient" shall have the meaning given such term in Chapter 3.61. W, 2021-02-16 Agenda Packet Page 315 of 395 13CLASS I I CA"I" 10 14 01�� ASSESSORPS !�)ARCELS an�� II u7Xea� Yeai=7 with Fiscal Year 2020-2021, each Assessor's Parcel shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Campsite Property or Hotel Property. Commencing with Fiscal Year 2020-2021, all Campsite Property and Hotel Property shall be subject to the levy of the Special Tax pursuant to Section C below. C. SPECIAL AX e ........... ty .......... H G"�� ........... sh al 1711111by ........... ceso w,tH,, 1: .......... ea ............. �76@ .......... 4,ea F. ee,m m e in Rg ............ �76@ ........... ��ea F. 2,040 2Q.2 1� ,aa8epteed.......... o in ........... o 1: b4o iic,e ........... M ay 9 1 4 .......... pllce,eeed Ing si,o (;.�:) ............II u77na ..........1Cea F,� ........... evy 41:),e S pee,lh e M a x i irn U rn �pgciifl �ax �1ate of 0he Spg(jifl �U ilUdhoirized to [)e evied on each Assessor's Parcel classified as Campsite Property or Hotel Property s[iiflll [)e detei,irniiied [AH'SUMIt U) � il[fl(I [l)(flCM Ihe City mgy, Il�y II �H!+Iign, Ile vy U'le Sp�Jill I ax at a rate in,o,t tee exee@41ess 0han the Maximum Ain H i,o a Special Tax RateT-4-�.".." ...," ., � ��, E�te to [)ecorTle effective inc) sooneir flhan the S peeia [ 11l111a* .......... 7ih a "dee ........... [evied ........... at fli-st day gf the sa ii-ne ........... cate .......... a 9fil'st aTIC)II10h a IIS ast sixty (92) x ayn fgIjg2�ing the Fa,t@ ............ ev,l ed .............IIH ............ t„h e ............ ip,Feeed Rg ............ Pisea ........... year ”""w H @7i7ieffective date Of SUC11 a-(SCflUtiC)11. S[IC)Uld the City Council 7ih a [7 adopt il -(.SC)kJiC)11 eVy�Eg ttl� �ax at a rate ess flhan 0he Maxiirrwrn Spg(Jifl Iax SUC11 11 -ate s[iifl1 reirnain in eff(Kl U1116l fl h(ity adopts a diffeirent Spg(Jifl �ax rate by resolution @4o pted .......... by .......... M ay 9 14 o""thee .......... pFeced H ff Pisea 4'ea ii:[evy th e S pee,� a :p @* at a n�u dee"peen":t, Fa,t@ .......... t,h a in .......... t,h e .......... Fa,te ........... ev,l ed ........... in,, SL�[)�:l illWily� to dhe irnitatigns of the ,p ceeed ing ........... 776@ .......... ��,ea F .......... H o,,:t t,o,, ex6eed th e Maximum AR H w,@ Special Tax Rate. �II a b l e 1, The Special Tax associated with Rent that is charged for Occupancy by Transients shall be considered levied at the same time the Transient ceases such Occupancy. If a Public Property is classified as Campsite Property or Hotel Property due to the grant of a lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon, the Special Tax shall only be levied during such time that such grant of lease or possessory interest is effective and shall cease upon the termination or expiration of such grant of lease or possessory interest. D. MANNER OF'COLLECTION The Special Tax shall be due and remitted pursuant to the provisions of Section 3.61.120 of Chapter 3.61. E. PREPAYMENT OF . .....1'°'° FIE SPECIAL AXES The Special Tax may not be prepaid. W, 2021-02-16 Agenda Packet Page 316 of 395 F. EXEMP IONS Assessor's Parcels not classified as Campsite Property or Hotel Property shall be exempt from the levy of the Special Tax. G. FAILURE 0 SUBMIT SPECIAL AX If the Operator of any Campsite or Hotel located on an Assessor's Parcel of Campsite Property or Hotel Property, or the Landowner of an Assessor's Parcel of Campsite Property or Hotel Property that is not Public Property, fails or refuses to pay the Special Tax levied on such Assessor's Parcel when due, the Director of Finance shall proceed in such manner as deemed best to obtain facts and information on which to base his/her estimate of such Special Tax. As soon as the Director of Finance has acquired such facts and information upon which to base such Special Tax for such Campsite Property or Hotel Property, the Director of Finance shall proceed to determine the amount of such Special Tax due plus any penalties thereon, as described below ("Determination of Special Tax Due"). In the case that such determination is made, the Director of Finance shall give a Determination of Special Tax Due by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to such Operator or such Landowner, as applicable, at its last known address. Such Operator or such Landowner, as applicable, may file an appeal as provided in Section P herein. The Special Tax on any Campsite Property or Hotel Property which is not paid within the time required shall be subject to the same penalties applicable to the transient occupancy tax in subsections A and B of Section 3.40.080 of the Chula Vista Municipal Code. For any Special Taxes and penalties that remain outstanding as of July 1 of each Fiscal Year, the City Council may direct the Director of Finance to cause the submission of any of the delinquent Special Taxes and penalties to the County for inclusion on the property tax bill for such Assessor's Parcel(s) in accordance with Section 3.61.130 of Chapter 3.61; provided, however, that any delinquent Special Taxes and penalties with respect to any Assessor's Parcel of Public Property that is classified as Campsite Property or Hotel Property due to the grant of a lease or other possessory interest in such Assessor's Parcel of Public Property to the Operator of a Campsite or Hotel thereon shall only be levied on and constitute a lien against the Operator's leasehold or possessory interest in such Assessor's Parcel of Public Property, all as contemplated by Section 53340.1 of the Act, as modified by Chapter 3.61, and shall not be an obligation for which the Landowner of such Assessor's Parcel of Public Property is billed or responsible. 1-1. MAINTENANCE OFRECORDS; SPECIAL AX AUDIT It shall be the duty of the Operator of any Campsite or Hotel located on any Assessor's Parcel classified as Campsite Property or Hotel Property that is subject to the Special Tax to keep and preserve, for a period of three years, all records as may be deemed necessary by the Director of Finance (and that will, at a minimum, include a record of all Rents collected) to determine the Special Taxes levied upon such Campsite Property or Hotel Property by the City Council. The Director of Finance shall have the right to inspect such records at all reasonable times. LAPPSAL Any Operator of a Campsite or Hotel located on any Campsite Property or Hotel Property or any Landowner of any Campsite Property or Hotel Property claiming that the amount or application of the Special Tax reflected in any Determination of Special Tax Due on such Campsite Property or Hotel Property is not correct, may appeal such Determination of Special Tax Due by filing a notice of appeal with the City Clerk within fifteen (15) calendar days of the serving or mailing of such Determination of C 4 2021-02-16 Agenda Packet Page 31% of 395 Special Tax Due. If such appeal is made by an Operator that is not also the Landowner of such property, then the Operator shall also provide a copy of such notice of appeal to the Landowner at the same time the Operator files the notice of appeal with the City Clerk. Upon receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the District a special three-member Appeal Committee. The Appeal Committee may establish such procedures as it deems necessary to undertake the review of any such appeal. The Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any appeals by Landowners, or Operators, as herein specified. The decision of the Appeal Committee shall be final, conclusive, binding as to all persons and shall be served upon the Operator or Landowner in writing at the last known address of such Operator or Landowner. Any amount found due shall be immediately due and payable upon service of the Appeal Committee findings. If the Appeal Committee decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the Operator or Landowner, a cash refund shall not be made, but a credit shall be given against the future Special Taxes on that Assessor's Parcel. J . .. . .. ERM OF . .. . .. FIE SPECIAL AXES The Special Tax shall be levied as long as necessary to pay for authorized expenditures as specified in Section 3.61.080 of Chapter 3.61 4) 11: a pe :,� ed. H et t,o e*Geed ti; e range' (a) :t,() 4y yea :7 4o m ti; e, 11:7A da o4 ti; e -no 11-n -n.ed ate [y :,o [1 e,w,,� ing the @4@6t,u*e date o4 the aur, In a H Ge e in,acted by th e,, 91u14Y'1114;'e'u in'e� .......... P co'vid Ing :�,o ii: ti; e .......... [evy e4 th e gpee� a a.)( .......... 11: b) ti; e d a,t,e e,H W4 ieh .......... a .......... H 4@bted H ess 94111141:)"e l) W [a IlGta .......... gay:'Fo in't pac itie,r PH a H IIIn...tw,41:)o W'ith .......... Fe',ipe,Gt to w,,h 61;. et Speea 1� ax ceveinues l:;ave beeR ip�edged7 ha�i beein paW �11R 41WI)L4U) 111C) ilt&- dhilll Afline 30, 2086. W 2021-02-16 Agenda Packet Page 318 of 395 \ \ IO)SOOOL-blot/ � 0 K i� �o LLz 00 wJ KLL kk mLU LU� 0w 9L� LL.0 oIL aI- z 0 It \ ■ §0k )§§ //§ 00. r!� P relev� _ 2 ( a® k( o§ : (� &� �- � k§ � §k| k\ §k b�� k .� �%2§( . - §§ I §k 0 § 'LU 961 �|•;m @ r =•. 00 0| .§§■§ ;|■§. §§■■ i §§( ||\B, �2o[k© • �- ■§ !■ ■2 || ||22|f - °° ® 77§ ■ §| 05. |2■§§!� - §. m�, . �k§a - & EsM»e§| . 2 t J- ®■. !e §§ k�&2 k[ ` ■�� !®� M||� § §|■s[•; °| § , E§§| § �k- B)B�!§ ||§!2§■ 0§ &ae; as&� |§; r!� P relev� MOOOL-bice bF W Qih -A8 o z� w Q2 J c 3 OL r, a LU �a N Yd 0 � YI _� cjZ �_ oZ �a U.� LL 0x oa WZ �� zo D W o LL zw z CL 0 (/j ° . U 190 9 cW W C 0a O�- a0 U.w oLL. � a� o e 0 �o m r - O rd cr rn 0 w N �o �Z oZ Z V {L OX 0 y� WJ �a V LU = N O� m U pW W 'O Ow CLs a0 LL. W. OLL. as am 0 wZ sig z Q J O w Oo w O~ UN L-blor o 1 cr PD2WOL-blop lh'9,d %h -A4 8 0 0 '116 li, lw000L-blor -et, !Dla %A All rd :r SIN y16 U g� U.U. Z OZ �a U3 U. Ox W ~ �a GaV z Do0 m V W lu w0 OM IL a ao U.w O 'L � a- m 0 W Z o-0 0 Z LL �a If Ow w � UN N N N N mM M m M M M ct I� ti' to G1 C L L -0N y E .-I N M cr In tD l- 00 01 O rj N M zr Ln lD 1� 00 CC a Z m T MN h L 0 0 0 0 0 0 0 0 0 0 O M O O O 0 0 0 � � O O O O 00 010 O O O O O O O O O O i E 1 O 1 M 1 N M 1 In O 1 0) N 1 00 M 11 r- M LD M w N 1 r� N 1 .4. N I O O I In O 1 e-1 M I Ln M 11 M M N M I .24 O a Z O O 1 O�� 1 1 rl 1 r-4 1 .-i .1 1 .-i 1 W 1 00 1 00 1 O 1 1n 1 O 1 O O O1 rl " i-1 .-i C4'" N (V m M ct d cP fM m M m ;T � N O M i M 0 0 0 0 O O O O O O M N M M N In Q V L 1 In 1 Ln 1 to 1 1- 1 n n 1' n I r- 1 N I n I O 1 O 1 O. 1 1 1 O 1 .-1 I IM LD W tD lD w lD lD lD lD l0 lD tD �o I� lD n I� n CL In Injln In In ui In In In In n In Ln In G1 C L L -0N y E .-I N M cr In tD l- 00 01 O rj N M zr Ln lD 1� 00 CC a Z m T MN h ATTACHMENT 3 DESCRIPTION OF THE AUTHORIZED IMPROVEMENTS 1. Convention Center Facility (as defined in Chula Vista Municipal Code Chapter 3.61); 2. Street improvements, including grading, paving, curbs, gutters, sidewalks, street signalization, signage, street lights, furnishings, and parkway and median landscaping related thereto; 3. Gateway signage; 4. Pedestrian and bicycle paths; S. Storm drains and other water quality devices to ensure regional permit compliance; 6. Public utilities (including but not limited to water, reclaimed water, sewer, electric, gas, and telephone); 7. Public parks, open space and recreation facilities; 8. Fire protection and emergency response facilities; 9. Parking improvements; 10. Museums and cultural facilities; 11. Ecological and sustainability educational improvements; 12. Energy efficiency, water conservation, and renewable energy improvements; 13. Land, rights-of-way and easements necessary for any facilities to be financed by the District, and 14. Equipment, apparatus, facilities or fixtures with an expected useful life of S years or longer necessary for any of the foregoing or necessary to provide any of the services described in Attachment 3. INITIAL AUTHORIZED IMPROVEMENT COST ESTIMATES Improvement Description Cost Estimate' Convention Center Facilities $ 240,000,000 Parking Garage $ 40,000,000 Street Improvements, Pedestrian and Bicycle Paths, and Storm Drains 1 E Street (G Street to 1-1 Street) $ 7,248,039 2 G Street Connection $ 822,313 3 1-1 Street (Bay Blvd to Street A) $ 416,759 4 1-1 Street (Marina Pkwy to E Street) $ 5,587,531 S E Street (Bay Blvd to F Street) $ 4,086,S10 6 E Street (Lagoon Drive to G Street) $ S8,414 7 F Street (Bay Blvd to E Street) $ 1,308,727 8 F Street (E Street to Gunpowder Pt Dr) $ 913,038 9 Gunpowder Point Drive Relocation $ 1,216,IS3 Subtotal $ 21,657,483 2021-02-16 Agenda Packet Page 325 of 395 ATTACHMENT 3 Parks, Open Space and Recreation Facilities 10 Harbor Park (initial) $ 19,504,029 11 SP -1 Sweetwater Buffer (for S-1) $ 2,907,645 12 SP -1 Sweetwater Buffer (for S-2) $ 1,302,092 13 SP -2 Seasonal Wetlands $ 1,012,920 14 SP -4 SDG&E $ 62,253 15 S-2 Sweetwater Signature Park $ 7,602,067 Subtotal $ 32,391,006 Public Utilities 16 G Street Sewer Pump Station $ 2,785,833 17 1-1-3 Utility Corridor $ 1,911,266 Subtotal $ 4,697,099 Grand Total $ 338,745,588 2021-02-16 Agenda Packet Page 326 of 395 ATTACHMENT 4 DESCRIPTION OF THE AUTHORIZED SERVICES Authorized Services shall include the operation, maintenance, servicing, and replacement of the authorized Improvements (see Attachment 2), together with the following additional Services: 1. Landscaping, including, but not limited to trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; 2. Facilities that are directly related to storm water conveyance, including, but not limited to pipes and drainage inlets, detention basins, linear bioretention, and parks; 3. Walls and fencing; 4. Parks, including landscaping, facilities, walls, fencing, lighting, and trails; S. Streetscape improvements, including lighting, furnishings and appurtenances; 6. Parking improvements; I. Transportation services; 8. Promotion of public events and tourism; 9. Security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the City or other service provider; and 10. Repair of the authorized Improvements. For purposes of this description of the Services to be funded by the levy of Special Taves within the District, "maintenance" includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, management and servicing of any of the authorized Improvements, including: 1. Repair, removal, or replacement of the authorized Improvements; 2. Providing for the life, growth, health, and beauty of habitat, including the cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; 3. The removal of trimmings, rubbish, debris, silt, and other solid waste; 4. The cleaning, sandblasting, and painting of walls and other facilities to remove or cover graffiti; S. The elimination, control, and removal of rodents and vermin; 6. The operation and management of open space and natural habitat, including biological monitoring and evaluation of collected data; I. The conduct of biological activities necessary to sustain the species being protected; 8. The operation and maintenance of pedestrian bridges and community gardens within or appurtenant to such open space or habitat area(s); and 9. The maintenance and cleaning of drainage and other storm water control facilities required to provide storm water quality control. "Service" or "servicing" means the furnishing of: 10. Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or other operation of any other Improvements; and 2021-02-16 Agenda Packet Page 327 of 395 ATTACHMENT 4 11. Water for the irrigation of any landscaping or the operation or maintenance of any other Improvements. Service Description Cost Estimate' Streetscape & Landscaping Maintenance2 10 Seasonal Wetlands $ 1 E Street $ 75,000 2 F Street $ 11,000 3 G Street $ 4,000 4 1-1 Street $ 70,000 S j Street $ 31,000 6 Marina Way $ 14,000 7 Associated Utilities $ 40,000 8 Annual Capital Repair $ 216,000 Subtotal $ 461,000 Parks, Open Space and Recreation FacilitieS2 9 Sweetwater Signature Park & Buffer $ 523,000 10 Seasonal Wetlands $ 16,000 11 Harbor Park $ 466,000 12 Associated Utilities $ 190,000 13 Annual Capital Repair $ 73,000 Subtotal $ 1,268,000 Transportation Services 13 Circulator Shuttle $ 400,000 Subtotal $ 400,000 Grand Total Services Budget $ 2,129,000 12015 dollars. 2 Includes storm water conveyance facility operations and maintenance. 2021-02-16 Agenda Packet Page 328 of 395 AMENDED AND RESTATED REVENUE SHARING AGREEMENT By and CITY OF CHULA. VISTA. AND, SAN DIEGO UNIFIED PORT DISTRICT, (Z.] I I I J L A ...........V I S . . ... . . . . . I.......... A ............ FIA Y F I Z N . . . ... . . . . . I ................ F A I I ....... ....... I . . . . ... . . . . . I .......... I I S ............ F IN A N I N G ............ A I J ........... I ..... ...... I I R I ........... I ..... ...... Y (Chula Vista Bi�yl:Foot Resort Hotel wid�, Convention Center and Relked Public Infrastructure This ��eeoiidThrd Amended and Restated Revenue Sharing Agreement ("Agreement"), dated. 2020 Pxa��'+202 1. is entered into by and helween,�,,unong the City of Chula Vista, a irtered municipal corporation ("City") afld")n the San Diego Unified Port District, a public corporation ("District")�"),,and, the Cjwji Vusta I Aithojtyng The City, and Districtmay be individually referred to herein as, a "Party", and collectively as, the "Parties". RECITALS WIIEREA.S, Die afid 144w:uei R:@ PRHues to 0iat�&y212 certain Amefided afid ke+iwited pa2r-Jons o'the Chula Vista Bayfront Masi@Plan (,Wed heiWeeR the ( 4y and 0le Wsi:�iBei and PW in flee W 4 -we k401@ 144H:uei as NHa 6;061� "Fginan6ng xafld HM 4iit4flly a«al : « fl hiive the meanifles set 6'4111 in the P'4ifine4ig find WIIEREA.S, it is o4'die 0os4ig 4the wlde�� the DPA o0'1k("Hy flfld 4ia:� 0)Fetigh the the Ailthojty �yM i)iinds�iich costs tiM2will �SSUIIWICO ani the Chula Vista Bayfront Facilities Financing Authority \vifl issZ:4;:Rcvcnuc Bonds io su��aPpwzl ill@ G-44aw:44g Vustr,l Convention Centel-) `,`ejes 2021 A (jb�:�, "2021 A Bonds') and 01@ 144(4 W14 PA.:;,A, @Npeeied �thai tile ijtlCj j�lje \yifl k4 as PHawe-p4j-�, ppoA 04@(1jwjr,1 Vustr,l lJn,,qua; ng Revenue Bonds 2021-02-16 Agenda Packet Page 329 of 395 WHEREAS, the (�'nty has iigFeedAufl1(2Jt.y L21 !�t2!]ds wM be ksucd p��rsu,�,.mt to ii meehiinkm to the 14e (�]ose Wesign ��ef:v�ees�dcrn,is 4an 4, n -list and \A/14PRP/Obetween the('it a y has negii4a4iMAufliojty and iinli6�y4e, 144HWI 'the WWACOI-1201-,�,,fle truister" , a iid ses P)�:Ih ill@ io r:@gTnWiwse-44444A-4,�� pesitn stnFNH' etTMs Q" pFtTM Jose Wes� fi raeSzv4 ees R ei G44 WHEREAS, it cxp�:,,cJed chaRU)A CInfla Vism, 1,1,( �ydu �Inancc, O,ic, consiruc,6NI 4a resort limed Cllmd") far be, poca�cd on O'le, CV11, and Cle,d,, as Doctun e,u'b� ll,�O' -111 41255....4 ll e'cm�d A�'ne,�'�ded RS:A",) 0'ia� wne,b'd and resUed Hl'fls e'u'fl:Jrety the Amended B",�A- ,,md W11FRLA"�ft the (Ijty �,)nd the D�str�ct desire to amend and restate in its li44i4t e!]Jiety the r` and Amended RSA_ as set forth herein to �,,idd the Aithojty g� a 11"Irty t� tijus �,,md to descrube the i)iinds to be contr�Niited �,.md dstruNiited r)uiirsui:,.mt to thus Aireement. NOW THEREFORE, in consideration of One DoHar and the mutuaV promises set forth herein, and other va�uaMe consideration, the recelpt and sufficiency of which is hereby acknoMedged, the Parties agree as foHows: 1. Recitals. The Recitals are incorporated herein by reference. Agi vements. This Agreement amends, restates, and supersedes in its entirety the ", second � Amended RSA.. 4'he 14:tiesAs thr.jr unterests tJtyl tijr° Dustr�ct ,.md the Aiith(2jty hereby agree as follows: 3.1 kE4`eHHE�4"MAJS and Existing kE4`eHlk�� ds" means, CoHectivdy' moneys in an amount equlvaVent to each of the foHowing sources of iinds actually received by the City or the District on a yearly basis commencing My 1, 2018: (1) a Viinds dejved fi-om the 66flow�'nu utgu!Is ('2) "Ground Lease Revenues-4&4�- (a) the those re,�,.d est,�,.fle set 6orth un Fxh�Ht I 4�"M uvejy, flh« "Other Ground Leases -l"), provided, however, if one or more of the Other Ground Leases are renewed, repaced, or amended in such a way as to change the size 01' configuration of the orlglna� premises to include premises outside of the orlglna� premises boundaries of A the Other 2021-02-16 Agenda Packet Page 331 of 395 Ground Leases (each a "Modified Boundary Lease"), then, for purposes of this s`,bcctlon, the Ground Lease Revenues derived trom each Modified Boundary Lease shall be calculated by multiplying the total amount of Ground Lease Revenues generated by such Modified Boundary Lease by a traction, the numerator of which shall be an amount equal to the Modified Boundary Lease premises still within the original premises boundary, and the denominator of which shall be the total premises area of the Modified Boundary Lease as modified. The (.::Pty atid the Port DPstjct ,.icImowWjil,,md ModHied 13oiltldtry L.is sig ffl tiot �tichildc the modHic,,.ituwi othc 1W ll c,,.isc (Jstcd mi and is dcijticd uti o�'thc 1W 11,�,,uj4 TU011 (Jqstcd mi r.md ,.is jticd gti FXhqHt 1) where MDA �s the For example, if the original premises of an Other Ground Lease encompasses 5.0 acres, and the Modified Boundary Lease includes 4.0 acres of the original premises, and adds 6.0 acres of premises outside the original premises, then forty percent (40%) of the paid to the District under the Modified Boundary Lease shall be included as Other Ground Leases 2i2ynletlts under this s`,�cctlon (collectively, the "Other Ground Leases Revenues"),- to the extent District enters into any revenue generating agreement other than a Ground Lease with respect to operations on all or any portion of the Other Ground Leases premises, such revenue, net any related out. -of. -pocket operating costs paid by District to third parties, shall also be included as Other Ground Leases Revenues under this s"�cction; (h) the Tidekinds Use fitid Wee111114fl-e' �1, tile eurf+efll 1W ((J)()_fess $3,283,970, which is the actual amount of the em' �,, Pa4( buyout payment paid solely by the District to Chula Vista Marina,44V Pa4�7 1_4 (n L11.1 dK,,i (Jwj,�,.i Vu tri M,,.ujtia ( 1W Lcssc�") t�2 the betweethe 1W 11,11j� Lcssccr.md the'�4 Dstjct ("Net RV Park Buyout Credit"), such, amount to be amortized over a period of eight years commencing on July 1, 2018 pursuant to the schedule of credits provided in Exhibit 12, attached hereto and incorporated herein by reference ("Net RV Park Buyout Credit Schedule"), as such Net RV Park Buyout Credit Schedule and its contents may be administratively modified from time to time with the mutual consent of the City Manager of the City "tJty and the Executive Director of the District; (tij� F ;,x cc u i: t � v e 1) � rec t o r" i ), without further approval of the Board of M 2021-02-16 Agenda Packet Page 332 of 395 Port Commissioners of the District ("District Board') or City Council of the City ("City Council"),- ;:.md (10 the annual payments to be made by the District (the "District Support Payments")44�:(4p:rsUi:,,,mt to the R&vemw Rofids ReewAifig W) the seh@C4�@ se� 44. ;eeiioH 4 oi4h@ (44ReePH14 kNezeise k4l2()W@p4 Pjafi k4 1"44aHee a4aehed ion ill@ 14144 HS No.4 4'ofletTiiial Aafl 4, 1:MftR6t�"),'5Ul2M2Lt and B. City 2 1 2 i I Iwj,�, V�su the TOTtr,�"Ips wnt owipwcy twxes h,-V�ed to ( I �,I (i �) the THXI OD tip 1212�-Jon o�'�iise,�,.md s,�,fles tlll.uxes �ev�ed to the Milnis Un66rm Locfl Usmd `, s 'afi6onib i Red Lode rye cjon 7000, to the (IjtY 12uiL,u,iNnit t�2 gppLi"e p iw to the RV the ConvenJon Center,,,md the lloteL exdiisuve oi',.mv so L-vd �,.md iflocated to the " i to V( tol by iiia �t�2Lr �Jty, �yli�ch �ty m rs� 1: pqI° mus cw]-01bljya xaWe, h -an sac, hmbs (jb�:�, "Sal es (Iii) incremental �pd v,,,florem property tax (including property taxin.-lieu of motor vehicle license fees) generated by the 144(4` 14ote4�,'onvenjon (�'enter and 11!�M 122�-Ms, wh�ch �s �n excess �,)d vid(EOM 12LWLLty t,,,2,x levned un fllr ijsc,,2l yr gyp-. un wh�ch the Aifli!Euty 2021 l3onds �ssed; 2021-02-16 Agenda Packet Page 333 of 395 (iv) 1IMS4 kevenwire �.-, 4-1ung ally ifli:Fefise in 12NISA 12,eveflows fibove the e aInwrurnIs d e sef:ubie-d1*44+e- �14` e nego4,+ti�,y the 14w1i&i in fii;Hwe mwlwq)Hj sef:v�ee �IintO the Affeement (v) special tax proceeds ("Special Tax Revenues") of the 13ay t0ofl444+),fei,4 Special Tax Pinaneim� District ("Spel:3'Hil I'EiX D�'�SHF'H:3:C+ �311FSHEHH k) 11 Seel uoff-4�4' the P'4ianeing equal to the annual amount used to repay the RevemwAuith(2'JtY yii&LtbyU29!! w2r g!jy undebtedness oC the rpy ygrgp Tr.ux Dstjct reputed to the Aiith(2jty 2021 Bonds; and C. As used herein, "Existing I�evenuwsl'uilnds" means, collectively, moneys in an amount equivalent to each of the following sources of I�evetwie�)iinds actually received bye, �-t�je D�Stjct orthe (Jtyj 2�,appLi]We, tram and afterMy 1, 2018: (1) app he Ground Lease Revenues def:uved (a) Ole WOI@�: (-iezowid I -eases R&Vemws�l (b) Ole 14L l4) 4r 4'�4)jh, iitl(j (e) Ole j2ijr:J�� (d) je+is fi:on ill@ W)W'l....( (a)01zmwgh (e) abk+yez ihe , 4L Pa�4( 14tW44-4e44- �H I 2021-02-16 Agenda Packet Page 334 of 395 (I the TOT attributaWe to the RV Park TUOP and the 12,eptaeemenl RV Park Le,,.ise; and (iuu) the 12,%4S/k Isevefwies� OD Nny,,�mouilnts descjbed un `,�ecjon 3,1(1l)(uv), jb(Jty �ind tho DWrkj sh°ffl romi�: °iny Existing nor: ihleajy 11eHiiHed lo AW110FkY HIIHII b(:° FeRIWEAl'Unds nesu 6nn� g A' "I �1� y �['�nd mfflod by 1;� �S: , � US11 Soo Warn 3,2 to the Authority by no later than the date the Preliminary Official Statement for the Vev(:°nu(ALid ho6ay 2g2� Bonds is posted on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access website (the "Contribution Date"). No interest will accrue with respect to the Existing Unds contributed by the City or the District prior to the Contribution Date, Thu:,Fx�sd� shffl no �MjUdo nworos(irnod by:.!hu 3J�y a2!, tho DWijc� MI SUch I'Lmds j,'Hjor m tho 3`ow6bUdMl Q°fl(, Should either Riilly�jbu° (Jy arr tho DWrkj elect to retain Wie Existing I�EhVeHLWHI'Unds for the period from and after July 1, 2W8 to the Contribution Date, such Existing IZevefifi&71-Unds shall be reported as restricted in the audited Financial statements included in eff�Lich Party's Comprehensive Annual Financial Report ("CAFR"), commencing with eHSUch Party's CAFR for the fiscal year ended June 30, 2020. I'Unds rocovod by �ho Afflhoijy a2!j !b�::, ConnjbUdMl D�i�(, sh�ffl bo �ninsf'(mo b I �� 4;� i , d y �W:, AL �hoi ��y 1�� jb� �j ��r j,'Hjor m �ho C1011IM0 D�it(, °is rnrov�dod nn Socdon :3.:3. 3.2 Use qfE.Yisting Rove�,- FuncJs Prior to Contriblition lhjlc�. Existing 14@vefinir@,+I'uiinds may be expended by the 14ies(Jty uMd the Dstjct pniol, to the Contribution Date pursuant to the following telcos: A. The City may deduct ihe 14ze (44se Pes�gfi pand by the �-can &iirsed to RIDA_ pursuant to certndn Pre-00se Design Reimbursement AgreemenV�I dune r` 15, 2020.1 entered unto between the Cjty g!]d 1�1!)A, B. The City may deduct plan review, permitting, and inspection fees in the amount that would have been incurred by RIDA to process the work for the Devadopa�n2s Phase ]A Infrastructure lI,npl-ovements--(,+s- based on current schedules of fees adopted by the City for such plan review, permitting, and inspection,...and Pl@ 12Hn@sjjie (Jty u,Md the Dustdct &du t ptgg r-eview.l N 2021-02-16 Agenda Packet Page 335 of 395 The (Jty ggo tiro 12ustjct may deduct such amounts necessary for the payment of existing or future obligations of the Authority, including without hmitation, administrative fees, consultant and attorneys' fees, and other staff reimbursements and fees (collectively, the "Pre. -Close Authority Expenses"), as such Pre -Gose Authority Expenses are memorialized in one 01' more operating memoranda of the 12af:Ii&i(Jty �,,Ind the hurt.... Manager executed by the City Manager (4the (iiy and the Executive Director k4the Wistiret, without further approval of the or the District Board o(�'iiy F, 11jor to the de&:cJon ,,Atnouiints by flip tIjty �2L by tij12stn'ct to ��J(2n 3.2(A) `,�ecjon 3,2(,L,), t�j� 11,°,,irty to de&ct suich mor int sh,�,.ffl s� lit to the other the !�ther shIfl revuew thr ,IccouI:InJnj 1, urs i'idth md 12L LCJrLt SuIich Iccouilnjng TYuth' n fllrrty dgy�,. I i the Iccou I:! tit PS x1212 wed, si�ilch ,,2moilnt shffl be de &icted firotil the FAuSJt1F�inds to be M�Vered by ��j] 11111,u 1,1111, i ty Ujor to the (�'ontjNiijon llr ted i6h Autbi2dty L21 Ur2!ids not occur \r�uOi4i the �,.is provided in the 11 )14,NSecjon 2, and such Noone G�kiunes us not extended +�H�- � to4d by mutual agreement of the Parties un �,wcor&,.mce w�th `,pecjon 2 oi'thus A�,I,r�etiient, the ggd tiny 1?ustrtct shall each prepare all accounting of amounts deducted ,.md by rui:oi] 11111.irty from the Existing pursuant tri Sections 3.2(A.) through ((,,�ecjon:3,2(1) above to the eytefll dial �,,ensei have heen appRwie",'y Wth fir ,H-4yam; ,Tf:oeedu +es (the "Pre. -Close Expenses"). Should the Pre -Gose Expenses of one 12ac�tytj]g 1Ijty exceed the Pre.-Oose Expenses of the olheF PaFly!2ustrtct., or un the the Pre (Jose LXIL!L„t r 12DIie Dustjct exceed the llre:1'10sc FXIL2�rL ryi tirr 1Jty, then the Party with the lower Pre -Gose Expenses shall make a reimbursement sufficient to equalize the Pre -Gose Expenses between the 14:ties(Jty g2d tijrr 12ustjct (e.g., if the City has expended $2.0 million and the District has expended $1.0 million, then the combined Pre. -Ouse Expenses total $3.0 million, with a taff.- share expense of $1.5 million per Party, and a reimbursement due from the District to the City in the amount of $0.5 million, the "Pre.-Oose Expense Reimbursement"). The Pre.-Oose Expense Reimbursement shall be made within thirty (3 0) days of the Pat4ies'D'ki�jtj and (Jly'1 mutual agreement as to the amount of such payment�:-�,.md 7; ke)"e.mle4 HOoS:e Any 1�.' YJsl4ig I" evefwies thal fire flol 2021-02-16 Agenda Packet Page 336 of 395 1,�N&G, Th�s `,�ect�on 3,2 sh,.ffl siirvnve the oi'ths Ag-eement, 33 1 e o�' is lin 1"ImcJs 'a'Ilhs to lhcContribiahm 1h I At y 1,xusjnu Fuinds coflected by t�!tJty Md the Dstjct suibsequ nt ta2 tljtosk,,r oi'6:nds on the LontruNiituon Date shrfl be pa d by ru Ii 11r.ujes to the Al iithojtyj i'or tr,,.Msk,-r by flay Al iith(2jty ta2 tljy Tni�tgg a2!2 yr pt-mr to thr, 4)sung 12gty i'or r.11212lug,.ijon un lccordlmce wth the pt-ovsons o'the Jndennilry� 3.4 I)ivribution Post 14 kea: Ole (, L()S@ (4 k"SeR)YO; the Nr4tt Ole kevemwes W) the AuaOim:iiyK , lhjlc�. On a,md Baiter the L �t until the Agreement Terrnination Date, pm:s�ianl to the Wan 41" 12� I I I I � � RH fiee� I 4jf4,-',j4,-I�()fj (,I ef) f: () G't lje 9lrerenurre 11 on d s t11e A I hil444a ,prey a I or 'the 1levrnurres to the payment 4&W- aaei p,ayab4ifl the I~ eveme Bonds and any Ileveme Roff&–,-A444e �,—een a) urine d by:..tj]r Tniistee to the Al ifl N2 flee pt-ovmons ani` the Jndenniry (the "Residual Revenues"), together with the RIDA. Lease Payments (as miich term us defined below) received by the Authority, shall be applied in the following order of priority: I To reltriburse the District for the curnWative amount of District Support Payments actually contributed by the District and not previously reimbursed to the District by the A.uthonty; then 2,.. To reltriburse the City and the District puri passu for any amounts either Party actually paid or contributed to the County of San Diego ("County") pursuant to the Chula Vista Baytront Pr 'ect Funding Agreement by 01 4 -1 and among the County, the City, the District and the (Iwila Vista llay'rofil 1'iHaniAHg A.uthority 44) SZeignWwie ihe (�,4y an aHiWmi eqy14� by ihe �;Pee4d 'I'HN Wis�f�e� 44�: Ole k4 Ole (as cj@Pfied �H y@ei44H 3r,9; Hot then 4-3, To reltriburse the City for 73.6% of the cumulative actual, direct costs incurred by the City to provide fire service within the ('VBMP Irma pfopo4i-onate share i+Ple to the IlH(4;` Pf:oJeet imd flol pfe,r f:eim4Hred to44& �,',f:ovided lhiit whuch 73.6% reflects amounts for which the City is entitled to reimbursement in addition to any 44F payments the City receives mider !,I I to ny u wmcup,�,fl : Oie Pm��A t t Services .--,.+,,, between the Oty ggd the Pm'r�A mi,)Y he i,)unefided hyNstrgct qn elI'ect the SIich reimbursement io Ole (4t�y Vafj(jer pra�raaap reap la shafl fioi he us b6ng jjgde tLid whch ts flle 12MMp EtMtliflc shyare o ' costs to the ammiff�-�, �, �11 hy("onvenjon Center,�,,md the HoM �,,md not uidy L�JmNiirsed to the Clty)�, aya U,,,2W thn �Igb T,�,.ux I�evemiles- then 4'A, To reltriburse the City and the District on a proportionate, pro -rata basis, for each Party's contribution of the Existing Ilevemiiesl'uinds, as oft 'Jose 4kseFowthe Uosura,,111, then 9 2021-02-16 Agenda Packet Page 337 of 395 6-,5, To reimburse the City and the District on a proportionate, pro -rata basis, for each Party's contribution of Existing I�evetwiesl'�iinds after the P�sef:o\V(Josun,111 continuing to the Agreement Termination Date; then 7-6, To fund an additional reserve fund or reserve fund insurance policy in the amount of one year's debt service for the keeeeu�@Al ithojty 2021 Bonds; and finally &T Any Revem�esl'�iinds remaining after the payments described in Jiems�!Iu iJnbered items (1) through (76) above will be equally distributed between the City and the District. No interest will accrue with respect to unreirribursed ILevetwiesl'uiinds contributed by the City or the District. 3.5 RHM Lease Pqyments. Pursuant to th&,2 ground lease between the District and RIDA. for the IlH(441oM (tbr "HoM Grouilnd Le,�,.isel] g!!e 2 between the (Jty �,)nd bIDA 6or the Conventuon Lenter (tlh� "(,'onvenjon (,'enter g2ch to be executed at the bIDA wflt be oH�,1111,�,,ited to tt2 tiro 12istjct �,.md to the ( " . i �11 : W JtYI L�M�t�Y�� Yn lair wWcb 129YMLItS Lxchls�vr,- Of PSHO 1110 bIDA (as s�iich term is defined in ihe 141 414) ohe "GF01,H)d 1east� rS @Npee�ted w) Pay 3,8 o'ths Ag- eujjej]t) a.Ind any aiid 4 Hnowiis payaWe by 1411),A, jk4 ill@ J)istfuei aim tile Gf:owld Lease, 4i0wjifig Jimuled Hi—.A4J+4o"Advmce Rent (as suiich term rs defined in the (4owid Lease) and (,'onvenjon (�'enter rek,-rred to here�n,�,.is the Assgnnienl J ha 4 exOaIding any amofff+ts 4ig ( .... RIDA. Lease Payments" 4,&- F,,�,wh the District,, t d Ot i i I I A I � y shaH remit iflho the A�ithojty RIDA. Lease Payments s�ich 11111.irty actually recelve4s from RIDA. within thirty (30) days following the District's or (Jty'.r receipt of such RIDA. Lease Payments. The District's afld 0y'r obligation to remit the RIDA. Lease Payments to the Authority shall cease on the Agreement Termination Date. I'or isuirisy e o'th�s Ag)I,reement, the ll IDA Lea.ise rI]gfl not be considered 1'uiinds, 3.6 ParkS. Seeiii The District and the City r ed t eir respective best efforts 0 o cooperate in good faith and use them to negotiate an agreement ("Park Agreement") which grants the City a nonexclusive, joint -use right or other interest in the areas designated for public park use within the (A41,%412 Pf:oJeel Area(,'VB (the "Park Areas"). The Park Agreement is anticipated to provide firs tau 66flowsas and when the City collects Parkland. Acquisition and Development ('414P or other such park related impact fees as may be adopted in the future, from developments in the (AZII,1\412 12�:k�@ej A,�:@ij( 'V 1) (collectively, the "PAD Fees"), the City will pay the acquisition component of such PAD Fees to the District, or an amount equivalent to the acquisition component of the PAD Fees, as rent under the Park Agreement (Su Iich r u ter u i rrt b6ng u-ek,-rrea. to is the "Park Rent"). To the extent that the City pays 11,;,.uj� I~ pt to the District 12H 4< I~ ent, the District shall contribute the Park Rent actually received to the Authority and the Authority shall use the Park Rent to reimburse the 12af:Ii&i(Jt.y g!]d tj]g !)uStjct for O&M Costs actually paid by each of the 2!2tL !)uStr�ct, subject to the Planterms Ulm 2021-02-16 Agenda Packet Page 338 of 395 of 2g�%,ements entered anto by tijr. tL !I tyi Stl Ct ,md/or fl L It!12dty. 3,7 01)erafions &Maintenance Cost�.and I ruas it I'lan. A, The City and District agree to generally split the operation and maintenance costs ("O&M Costs") for the R14(4�, 124�Wie not wherwuse Iai tied Cay as tijurd paarty. The District will be responsible for the O&M Costs of the parks and all related public infrastructure located within the parks. The City will be responsible for the O&M Costs of the streets and sanitary sewers. 13, The City and District will split the O&M Costs payable pursuant to that certain Chula Vista Bayfront Master Plan Natural Resources Management Plan filed June 6, 2016 in the Office of the District Uerk as Document No. 65065 that are not the responsibility of a third party ("NRMP Costs"). The NRMP Costs shall be shared equally by the District and the City and shall flol exeeed S300;000 a 'YeaF Plf-e, shafl Ho� lia444 ihe 0le (.,4y air: �he 144w4i as ..aa pmzly. 4,11e (iiy Wafl he a:@spow4W@ 4a: 0le,14zaedrat 121ae and eosis Ole 1, 444,)He� Hg rtPg^ zeeffleH4H aeekaAanee N�401 ihe 121HR ot, In no event shall either Party be reirribursed for any O&M Costs that have been previously reimbursed to such Party through Special Tax Revenues or Park Rent. 14iiH 4iitkf ( I' i Pa�:eej R I If C h e " Pa A a�It a Fate'+ 4 e F'13:�: May ea&,t,..40 pay �a F Iq e Pa Fpj Jt (wa Fate H It tile 14il�4el eleels to l�Iffld the Pm4<ifig Gaf:age wiifl�,Z Dstr4et shall wie sV"eh spe6aj Tax Revemws 41 to be hy the Paf:Ioes. The 14ilf:uel shafl deieflate any G,mlds gefief:ated b,,Y the iwpose I)fLP+,Y+fl-4,"+ the 2021-02-16 Agenda Packet Page 339 of 395 the PaFlr� Rg (4rf,-q�e or �i:h expense the "Pad"'Hit GaFflge 0peFa:kH1g 4. (j.)eratJn.&), Memoranda. To the extent the Pat4i&i(Jty �,Md the D�stjct enter into any operating memoranda pursuant to the terms of this Agreement that requires any action(s) be taken by the Authority, the tiro ll; ustjct shall (1) specify in the operating memoranda any instructions that the Authority shall follow upon receipt of the operating memoranda; and (10 promptly deliver the operating memoranda to the Treasurer of the Authority after the execution of the operating memoranda by the City Manager of the City and the Executive Director of the District. If the Authority is unable to comply with the instructions set forth in the operating memoranda for any reason \�Oiow the adoj4400-44. tj]g un6orm the Dstjct md ' r u1ures thIdopjon rpt`010 LlY VL2Dpjy Md to the emeltco�WL`Mcc w�fll thO �Dstll:ctmns 1 administrative rules or procedures or all amendment to the Amended and Restated Joint Exercise of Powers Agreement filed oil August 7, 2019 un the OIjce othe Dstjct (,Jed� as Document No. 70245 ("Authority Incorporation Agreement') or the Bylaws of the Authority (" Iuitirr�ruY7 Bylaws"), the Paies(Jty ggo tij� 12ustjct, as the sole members of the Authority, shall use good faith efforts to promptly adopt such administrative voles or procedures ,,Wmunustr jve�y or present any modifications to the Authority Bylaws or Authority Incorporation Agreement to the Authority Board of Directors for their consideration, as necessary. Bindii2y, Agreement. The Parties agree that this Agreement is a binding agreement helween,,2pD(2ng the Parties. Notwithstanding the binding nature of this Agreement, the Parties contemplate that future implementing agreements between the (�Jty Ind the ll ostjct or the Aiith(2jtyl b2trygn t1le DStjct md the Auiithojty and/oramonllill the (Jtyj tjig !)ustjct md the Aiith(2jty may be needed to implement or clarify the terms of this Agreement. To that end, rgch ofthe Parties agree to meet and confer in good faith in response to a request by other Party regarding the implementation or clarification of this Agreement. 6. Event of Default. An "Event of Default" Will occur under this Agreement when: (a) there is a material breach of any material condition, covenant or promise set forth herein; (7) written notice thereof has been given to the Party in breach; and (c) such breach has not been cured within tell (10) business days after such notice was given to the Party in breach. In the event the breach cannot reasonably be cured within such tell (10) business day period, the Party in breach must commence cure of the breach within such tell (10) business day period and thereafter diligently proceed to cure such breach. A. waiver by Party of any such breach shall not be construed as a waiver of any succeeding breach of the same or other. coiiditioii,coveiiaiitoi-pi-otnise. Intheovert ll vent oNV'(,M1h,thr,-non 0 2021-02-16 Agenda Packet Page 340 of 395 MI'Ilyi nn fllenr S(flr crud �,.ibsohiite &creJon .l Op rt to Onfller- tL Jne bey�22tj° UrJod set 6orth (n the s `,aecjon 6 6or the t!2 the )1212�ng,.iWe oH)Jon(�) lir reuiitlder k2 2 pgjod oJmIccept2tC tr2 tjinon or (,b) U�-oceed wth I �t L �i MJJC Md'W-M,`MCO, ,I C t o t o r P ] I S� - 7. Remedies. The occurrence of an Event of DelfaWt shaH give the non-defati4ing Partyues the right to proceed with an action or proceeding for specific performance. H. Notices. The notice addresses shaH be the same as those set forth in the 1'44aHeifi� gALthojty Incort2or9jot] Agreement and shaH be sent by certified U.S. MaH (return recelpt requested) and shall be deemed dchvered three days after deposit in the U.S. MaIL 9. Entir . This Agi �, �ire A �),reement i -cerrient constitutes the entire understanding and agreement of the Parties with regard Iii44e-e,,oAeetiofl and pf:iI)f4y--04'lhe Ieveme shaf:4ig be4vi the Wistr et, integrates all of the terms and conditions mentioned herein or in7clden7tad hereto, and supersedes A negotiations or previous agreements between the 12mties iif-4hi,-*- P�:@(Jeeessm:s 44 ifiier:&A \�401 �r:espee� k4 Ole P�:nwzi�y k4 ihe e4eet ()H afid shar:ifig he�weeH ill@ (�'4y and �he WA sh4 fioi iHaneiHg AgeemeRi w: the 141)4.9Dd flhr 12stdct wWl r sMt t�2 flh� ruillkt Mgtt L I e r e o [ 10. Drafting, Presumpti_on: Review Standard. The Parties acknowWge that this Agreement has been agreed to by WIhIllifl the Parties, that Wth (`ily and Wistriel havew P;,,irty I]gr consti4ed with attorneys with respect to the terns of this Agreement and that no presumption shaH be created against the drafting Party. Any deletion of anguage trom this Agreement prior to its execution byCity and, Dlstrlct,�,.md A�ilthojty shaH not be construed to raise any presumption, can of construction or unphcation, McMing, without Hn-utation, any unphcation that the Parties intended thereby to state the converse of the Meted Vanguage. IL Governing), Law. This Agreement and all of the rights ann d obHgatios of the Parties hereto and _ A of the tems and conditions hereof shaH be construed, interpreted and apphed in accordance with and governed by and enforced under the Vaws of the State of CaHorma. 12. LCounterparts. This Agreement may be executed in any number of counterparts, each of which shaH be the original and A of which shaH constitute one and the same document. 13. LEL�ectronjc 'Signatures. The words "execution", "execute", "signed", "signature", and words of hke import in or related to any document signed or to be signed in connection with this Agreement and the transaction contemplated hereby shall be deemed to McMe electronic signatures, contract formations on electronlc pWforrris approved by the Parties, or the keeping of such eVectronlc signatures and eVectronlc contracts in eVectronlc form, each of which shaH be of the same �ega� effect, validity or enforceaNity as a manuAy executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any apphcaMe law, McMing the Federal Bectronic Signatures in CdoM and Natlonal Commerce Act, the Cahforma Unifortri Bectronic Transaction Act, or any other sunHar state caws based on the Uniform Dectronic Transactions Act. appeaf: on 1'Wjowiflg page� � a 2021-02-16 Agenda Packet Page 341 of 395 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and the year first set forth above. mum Kerry K. Bigelow, City Uerk APPROVED AS 'T'O FORM: Cden R. Googins, City Attorney APPROVED AS 'T'O FORM AND LEGALITY GENERAL COUNSEL m T'homas A.. Russe� � El C'IT'Y OF CHULA VISTA m Mary CaslHas Sagas, Mayor SAN DIEGO UNIFIED PORT' DISTRICT', a pub 1c corporat 1 Oil m ml 2021-02-16 Agenda Packet Page 342 of 395 'HULA VI",VI'A A111IRMFI)LF,GALITY� FJNAN(JNG AUTHORITY, BY:.: 13Y ....................................................................................................................................................................................................... (flora IL �Jty V�st,,l (Jty By Thom,,.is A, Ruissefl !h , -111''o Unq Jed Port Nstjct Gener,d Gener,,,d CouinsrJ ul lts� 2021-02-16 Agenda Packet Page 343 of 395 Exhibit I Ground Leases ; ............. IAmended. Rest,�,.ited,�,.md ComNned Le,�,.ise between the D�ego UnHied Port D�stjct "12ustjct"),,Md The M,,,,J le muln LLL '( 1 t2mmty gt the North ",Jde oCG ",�treet aat the term�nus Qu�gy Avenules �,Md �n (Jmj,�,.i V�st,�.I. wh�ch �s on Cd �n the ()�Iice oCthe Nstr�ct (Jed� �,,Is Docuiment No, 5d509.1 �,.is �,.unended and nl,�,,iy b!� gmended from jme to jme, 2, Le,,.ise between the DgstiJct �,.md (Jmd,�,.i Vusta.i L11. dK,,i Chuda.i Vusta,i 6or prU-ty 550 un Vusta,l whch us on iJ�O un fllO()C&OoCfllO Nstract LledIs Docuiment No, 1424d., �,.is aendemd a ay tr-....panended Crom jme to tam...... 3, Lea.ise between the Dustruct a,.md Y', ht Chuda.i Vusta.i.'LL( ", 6or prU -ty �t22ted 640 an (�Jluj,;,,l Vustl whi ch on n C& �s �i�e �thO()OoCthO ll stet LledIs Docuiment No, 23924.1 �,.is �,.unended md t�Unended Crom jme to tame..". 4, Le,�,.ise between the D�str�ct �,.md Chud,�,,i V�st,�,,l RV LLC 6or Ur-U�Lty ��2pgtead ,it 825 F 'Yreet �n Chud,�,,i V�st,�,,l V�st,�,,l RV �Y�I�Cll �s on �J�O �n the OC&O oCtIle D�Stjct Cleda a.is Docuiment No, m,�,w be ,amended Crom Jme to tame ("RV Pad,, ( ,ease,"), 5, TWA�,.md Use,,.md Occupggy llermt between the Dstruct a,.md Chud,,.i Vust,,,i ll,�,,uj� RV LLC 6or p��U�Lty ��2��gt�d 460 �&,ay �n Chuj,�,.i V�st,�,,i whach Jdc u.md uise u.md u2��WIMU UMIat as on ie an the OC&O o,. the Nstract (Jed� �s Docuiment No, 69412.1 u.is u.unended gDj a,ngy ainended �'rmn 6n,le, baa 6nlle, ("RV Pad,, TUOP"'), um 2021-02-16 Agenda Packet Page 344 of 395 Net R.V Park Buyout Credit Schedule Fiscal Year (FY) R.V Park Buyout Credit Cumulative Credit FY 19 $410,500 $410,500 FY 20 $410,500 $821,000 FY 21 $410,500 $1,231,500 FY 22 $410,500 $1,642,000 FY 23 $410,500 $2,052,500 FY 24 $410,500 $2,463,000 FY 25 $410,500 $2,873,500 FY 26 $410,470 $3,283,970 Note: The too rent credit was reduced fi-om $4,329,614 to $3,283,970 based on a permitted rent credit app led to the ChWa Vista Manna Vease as paruaV payment of the RV Park Buyout. This therefore wiH reduce the ChWa Vista Manna rent actuaHy received by the District fi-ofn the tenant by $1,045,644 until November 130, 2021. M 2021-02-16 Agenda Packet Page 345 of 395 VIII II " 111 111 "III 1111 111 ""I A I JOINT COMMUNITY FACILITIES T [Chula Vista Bayfront Project Special Tax Financing District] This II II: II II::: II: II::: IIVILII: S...IL.. ...IL..II: II::: JOINT COMMUNITY (FACILITIES AGREEMENT ................................................................................................................................................................................. ("Agreement") is entered into eff9Gtuvo ......as of Stovormr ber :::: 2019 ("I II Ie(:314vo ........................................2021.....:by and between the City of Chula Vise, a California chartered imunicipal corporation ("City") and the San Diego Unified Fort District, a public corporation ("District"). The City and District imay be individually referred to herein as, a "Party" and collectively as, the "Parties". WHEREAS, S, the City and District are parties to that certain Ameiided aiid........II .s„.s.ts.ted. yI n : lls Vista Il sy a ou �I Ily oslou "Rsr n II wn n u ncliu n� Vpuu n oumrr umrr I u nu y II scHl to ies greeiment s ......:....::.: ..................: A( .................:........ Gt � 4 dated �I�.�u'�no y�, �� , by sr'�d IIolpoor'�n �Il�ro �.�uly su'�d �I�no I...r,�Iu uo� su'�dII.:II:.II...I�.d.ll...y...........�...,........0...0. filed in the Gyffice of the District clerk as Document No 670687 2175 (the ” II ruRa1RG11Rg y�gr ooumsou nlOu 111-1211,111l...JI,Q—:.IL.;;. "), and p,,,I.11 I I. y, the Qty aiid D. shoot ....are ..Il ar bos to ....flliat ....Gents ii . uspesit1oun ....sued. . vk.:.) .p .r n . .aq I mm.Fu . .a I (the .....:. ..II:.:.:.... ......) dated May 7, ... .0 .: ..8 . u .d II u R eI h) ) I.hi e .. I N..m 9 I.IIq q I lis hGt Qei k as Il... ocUMor~"nI No.69398 w4h....I RD)A Gh4ls Vrsls L.L.G, s Deo avvsr e Ilwnm 4ed .Wa.....4.ty......::::..r:...r:..Wa.�.:..........................................� .......:::..........::::..q mmr.:....r:...W tmmr.ar............mm......:a vmm.:..r:..:nmm.r:........:.::......Wa......rmm 2, ::..:............:): mmr.......W.r:..:a. IIr�.,iRuRul.y �..m�..�ur,�ul��.�r�y II �MIII... � R"�ru�..�R"�r �..m�..�u��l.�.,w�wl�ll�.�1.�.„.� I.II"�� I�.,ol�..�I�w�wu��l. �..�II �.� w�.„.��..�ut II"��..�I.�.,II �.�u��9 (:3e1gVer Ik:)r morqe (the "RH(;(; PwGIeGt'( a1gd F9hited N:AIL G w114llw� �lw:°�n ml niio rFnPF(:)sou rsr;t6 (.G f:::) iso.o.11:y.,....aa ,�e H):Jo.4'.:.:....a uR �, yyI NII.....( �I.....y, Info II rr'�su')ouu'lg guoor�ror'�I sr'�d I...I... oor�nlor�rl.�lolo s II.��.�IIRuo �uu'lsu')ouu'lg I�ss ss... I b .. Io rm�rool q .m�oll�r as Il�o...:four�rolror�n of o ��orm�rrm�r.�:�r�nul�a ..II .... �, d, the �.�ul. gr:.. or'�ou slno s Il�o ., ., usI II ss eve .uq.t,re.a,;.....(......r:r..o.rs.......t.IL.o.....Qh UIle A us.IWs......Ik, Maste Phir; aFea ("CV&Im1: '( Ie..Ipay_!!IY' )r IIhq debt...sousrGe Gu„...:the Gf::)1gserm:1�Ik)r1 � ........ �� rol�.�NIlws... lslod Ns......vl�.�ro rr�rll.�uosor�roRl o9rflPo1'1o1'#s of the N ro.Ilool (Spos114 VVI N.II I I. , s..ii:nsp..shos iig the ....Il 0�:A Rdsres...of the GVOMP us...sllsoll od herolo....as N sll rll u( ...sad p Irqq . ��... � N;� #uGt.u.�.r��o....p r:m�s..Ih .r o v.o�r:ms..o.r .: s..r....�s u�R d o � r odls:�.od.... s.u:�.p.l4.i.� WHEREAS, the City has ... ,. � o„.s s....:t.o....to.ii rs...s.....s.ls.o„o ,a4;4 ui.g.....d..iis#i Gt Ino .be kIRGWR ss„(p p„ pmn p„ ' the Bayfront Project Special Tax (Financing District ("(Financing District") pursuant to Chapter 3.61 of the City Municipal Code. and (p Il.ddy....p.V .d.g.l.d..l....:(.d.dd.s 2021-02-16 Agenda Packet Page 346 of 395 (','5pggJa�l I axes") 12 gg0g�,g!g s22s all tax urevenge II ax Il;11,eveint::nes:') frorn flie uOaO22g IlIstijct Area (d2Nned Ilrsllsw) to Il2gy for flie Ninancing gu- Collis tru ct sin.... of certaun ,2g ecnfruct astr,n i re ........... ii.. Irn neots god !I,ie [uiiaiiciiig of tIl,ie coiisti,gctuoii of a coiiveiituoii ............... ...................................................................................................................... ..... .... ............... .................... Center to be (located on 2gEg2ll Lj3 of flie All (dgftned below) VVh N� ��, ChUa Vsla 11 ) 1 11 .. . ............ .................... "I'll'I'll""Ill,"'ll""I'll""I'll",11,111,1111",,� ........... (11,11"[2 ........... a i d ............. i a i e ............. a ............. i,i e s ii t ............ "ii e ........... ( ii i Darc6l 3 of flie CM��)HW:' Area (11 k)l6), aind WHEREAS, a imap showing the pFepesed boundaijes of flie QIhUa Mists :Imyfi,ont NA a s l e ii, a 1, 1 �I s I � lt \A Airea" .. .. ........ .......... ��s attac�hed heireto a A ("QVB�� and W .. . ............ a .......... rn,a,p .......... sllrsrvliu2. .......... flie boundaries of the Financing District lis attaclhed Ilrsursts as ("Financing District re".:(:'.s attelGhed herete as and WHEREAS, the Financing DistrictArea includes areas outside the CV MF te geiierate W .. . ................. co�Hect�on of .......Special Tax Revenues !tc) be used fer 4nprGvemeRts and 6911:VwGeG GtheF thaiii the PFej9G`t fGF tI!4e beRefit C)f tI;e (3vl�lWl and theII wI:IaIIRGuI'Ig Area geiierafly, aiiidcornirnenced ol"i ..... . ......... oHec()in .......... Date",) aind VVW:::::REA,S, fliu; Agreeil�nei,# sets foi4l; seilne D' the esSeR:14 termsfor:flie develqqilmnei,#, Fa�2�&ed69112Gf Um�MW4VNAepetei,i� 1naRtRa7FVRg OVapOVF4,i theGBP� and the aflGGatuoii sand 116e Of Spe64 II ax PZeveRues for Sam�111� VVW:::::REAS, thh; AgI29eFI!19R`t rsb6iig eiitered rate Il9112li0112 tG the QIY:8 adGPtk)Iq Gf fl:19 FesOkjt�oi,) fc*�:n�Rg flhe ��44aRG44@ ��l ) �&tr�G`t as a ju)�I# GOii:ni:nUR�ty ::fao4l4,t4e,6---,-tgfee444A94�4 pursuaii,it to Gakfbmua GGV911iRMeRt Gede SeGth�.�� 9aGh W, ........... t[ie Parfies des�re to arnend and restate in ��ts to,tal ��t flhe ................................ ........... Y ............................................ Oirlalnall M'A as set forfli her6n, aurid W t�,Ie legislative body of gggl,I :��)arty has determined that this Agreement will be beneficial to the residents tenants o -,!-,,,,,and visitors ofl-2-, the Financing District Are& aiid 2021-02-16 Agenda Packet Page 347 of 395 NOW THEREFORE, in consideration of the mutual promises set forth herein, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows, 1. Parties, The Parties to the Agreement are the District and the City. 2, Term, The term of the Agreement .s.lrs.l.l........ 4vs„......Il s.ts„..... u d toruvuu'"ns.tUl:rou'"n .... fir.... M..U44 .... oa.s.... .. ,. ,. ,. . iii eeiii:ms.s.ii,it.cow.rnii, neiiiccd on Il::cll)ruar 24 2020 fllrc cffcctlivc date of fllrc Qrli . linall and Isrr nlinatcs concurrent lifllr Illic Isrr nlinati�on of flhe Il::linauncliun . II::: lisle lisl. g .............................................. 3. PurposeI The purpose of this Agreement is to set forth the essential terms for the allocation and payment of Special Tax Revenues for the �.ll.ln..d.n.:!.n..g..,.....development, operation, maintenance, and servicing of various improvements (a) ...vru llrnn'"n.....the (;II..4IIII , OF (Ila) onAtsudo flhe GV6MP 4 wogn.nuusd by urwningaM.uou'"n moaGn41196 6Il99cufi9d vr:ii. Ilrnnn fllro Puols... . us w we ow i n accord � cs all as more particularly :....::.............�,y.l.�.. accordance �Ihr a recd n.n aou'"n :�u�.ou�i .... -. Marl y.�......!L.........................................................................................!L.....................g.....................................IL......................M IL.................IL............. p y set forth herein, 4. IFinanci district IFormation Documents- The... Qty drafted and.... umvet....and ... � Foga4uRg tlrs t9uwn6 ou'"nd cou'"nd4u911'16 ..........111............gdg:....n..'..g:.l.........,. 2019 rc li yo. unclip of tY� til: of yulln lisl.a `° lil: :"mn n.nu anlill adoa cd ccuMaliun d ................................................... y..............................................................................................................d...............................................................................L............................................................... Torr natlion docurnernts for flrc Financing District.............ry....s.n„AbGta4iaM.11.......:kRa.11 a.91126k)R o aacllrcd as M lwulul:o the �u a uurall OF "}u id uir null Financia District ..................................................................................................................................................................... g........................................................................�..................................................... g do by lllro....Gby .. on�wnc�ll ou.!I'sa�uol� Il (X;ui, udmm ants'). in cornrnycfuouM raulllr fllrus ar ncrn 'p„rneint and urgstaterncrnt....of lllrg 0unguunall.. II Ilry„ Qty uintends to w E2p2sc ccrMmaii n urcvu,;iorns to lllrc Qijg. i nail iinan6ng Il iistriict g.pusoingao.gnnumrnones tot,h,e....l u y Q o�:j uaul at its regularly held Council meeting on .... Stovonr beF d .... 2049 ur 111:ollru . au 6 2g2 sn:jgr a cvliscd docn. r ncrnts to Ilrc in n.ulss aun liallll flhe form attached hereto as Exhibit � "Il cvliscd IFinancin district d ..................................................... i .................................................. g Formation Documents"), GRGeff gppu,ovcd 2Y fllrc Qity Qon.nnclHI and fllrc ggglllfled g cuing., c yclow v uu the Financing District ws ossa a ns r.s,. r.s.... rg cyusc uu nae n,,.. :listric! Ill orr natlionIl::: ocurne nts MHH uresn.nllt in a anllrau,i g in l.11ie I aclimn. rn Anim4l Saccliall TaniII?al.d�:' set toudllr in fllrc Il::liunauncliun. II:::listurlict Il::ormatlion Iocurnents from -Ig............"I'l..........................................................................................I'll""........................................................................................ dG to 5%, yrllrucllr cllraulgc sllryllll Ilry cffcctuvc Vlllovring gu] gdolp!r orn by lllrc Quty gnnncull g a Iyvuvcl ow dupauncy mIry Ircgalyvcs yIrc �ccysedyc pLovuded lllrat....such iin ncu case sll allll not be urytu oagtuvc to flrc Qollllcgtuou'"n Il,atc II Ilry District shall have the right to vote oiii aiiywn tIlry s122giiall electuorn to be callHed. by tIlrc alit �y,ggu'"nclill wjfllr uresacct to flhe : cvlised ::linancliun . I:: listinct I :orr natlion ocn.nrne nts and on ally future material changes to the Financing District Formation Documents in accordance with applicable provisions of Chapter 3.61 or the Mello -Boos Community Facilities Act of 1962. . Allocation and Reiimbursement of Special fax f evenues: .1 Priorities for Allocation of Spec Special Tax Revenues small be I I Tax Revenues, To the extent available, used in the following priority, 2021-02-16 Agenda Packet Page 348 of 395 (1) to �I2gy for fl ie financing of the construction of the GGIRVe4OR G8+14494 " Convention Center(2) fiRaIRGuIrg the Ge46#++G4GR-Gr- and certain public infrastructure improv ementsrehited �te the IlJll p.Project-., �,�4arRy ......................................................................................................... heFqt(:) ..I.ri. 'PhaaZe 1A (3) fiF;GF;(NF:1g the efthe 7 ) , °I.. �600-sIlDaG9 Park,lirg StrAG :ire wRtelrd9d Ilg.urw G+P��GGRVeRtk)lr n eii::mn9C)11'19Rtfiiiiiaiiiced flhrogg'l A:jfllo�jt [�3�onds (dgNned below) Y ti 1 rii u° dmm,urudmm,u Is" (g2 .......... to .......... 2.9y for flie constructlon or.flhe Nnain6ng 2,1 r..9..2.i,c-,,,,,i,i'n 112 -overnents fliat ...... . ........................................................................................................................................................................................................................................... .......................................................................................................................................... 11'', "1 ................. .. ............................................................................................................................................................... are e�flher �located Mflhln flie CV[3IW:°' Area or outs�de flie CV:�)Hmf:� � Area, Ilbut csrrtcd w�l,lo flie ��t of 2,ig�a VJs,ta .. . ............ �� f re t "I'lI'llI'll'll""I'll""I'll",'ll""I'll""I'll",'ll",'ll""'llI'llI'll",'ll'I ............. Y .............................................................................. ............... "I'l""I'll""I'll'llI'llI'll",'llI'll"I 1111111111g g Eolk!2 dgsl22 !gg!gEg�, 2L 2!b2DMse urcggEgd liar flie :°"rojec! App�,ovals (d,2,Nned beIo ,cod........n ............. !2 .............. 22 ............. 2.2.!f.L ............ 2 .............. l.i,,ty ............. 2,E ............ !,ll,ie Distinct as reg .:j red n6u6ino�2tg�n�n2g,rn�ts and cerficate of oc upgogy!2 a�Howfothe q q PFGt Garage"), II Note and (4)Cllllllo""Inl"Illyelllliillil"'ll't'll"�,�oilillill"Ill""I'll""I",Cllll,le'll,lilillitgii","",,,'ll""I'l'll'It""IollI 2RgEg!2 (12bg[ E2[oY2M20!s" h (112 29Y fg, the operation, maintenance, servicing and replacement costs of the [IIhase 1A �1llr 1 and 2 a[)oveexcept for Hie Corrventlon Center ("Priority OW:+ 8�99(4�4 TaX R9VeMAes rernauiruing atter the fWR41Rg Gf tIhe strew -deSGrrbed pr4cuty Hses,iif aFly7 may 99 �:jsed'], or (4) to flRaRCapay for the construction or Nnan6ng of other public improvements I I I I �:n4ogat�eir mea6u�es ��R as deschbed in D fliat are ��ocated in or ................ .................. :�DIJOIJty hrnprovernents Or Otlher rnpu,overnents "Addkk ::A, 4 ri t nd 2 � I rna�ntenance seyiiciiisurd ..g..................... � gpllgggrnent costs of any t ddltlonall rnpu-overnents and otlher Aflhgir�zed Servuces:' as descri[)ed iiri ExJh bj t I �l he .......... ?�Q,Q,[�Was:' shaHH irriegin the Project EIFR (defined below) . ............................................................................................. .. .... ............... ...................... ...... te be pei-kt�med by the Qty ell: flhe D�Gtl:�Gt (G()ke(344V9�:.......................:°.::....1e arld u;:4r!1te1qa1qGe SeFVk::,9S our the Other MPFqv9i:neF:1tS (14 1 gheF Q&NA:+ 91:9vk1ed Qflier OUA a1:9 udsurtufied wR the FuRaRG-igq DIT.._t II orinat4ir )ecw+ne;rts- T�he GoIrVe4OR GqirteF� Rhase 4A RfFaStIFUGtUF9� aird .arkhrg Garage Shafl GGke(::1ArV9RY RDe F9!I:eFii:ed te as,the 'P1:*:)F4Y . ............ flhe oiq Master :)Ian, any Qggs!gll EgEg]lit, and any gqEgg[Dgints r6ated to flie CM:�)HW:" Area Upon completion of any of the Priority Improvements, any expansions, replacements, or other capital enhancements fliereofto this rio,ir,i,ty n shall be treated as ................................... .................................... ............... ........... ............. ........ .. ...... "Other Improvements" under the terms of this Agreement. Rhe n n o Add�looa�� in o °"u lieu litY. :�Ill""I'll""I"Ql!l�1,21,��'I'll""I'll""I'll� 11"111111 ��2 "111111111Y21D 2.012 :�'ll""I'll""I'll",'ll""I'll""I'll",'ll""I'll""I'll'll""I'll"'ll""I'll""I'll",'ll""I'll""I'll",'ll""I'll""I'll"ll,"'I 111�1111111 ��2 2.21t,121A...... 2021-02-16 Agenda Packet Page 349 of 395 QdMand Ad6tlonall Odll urna l2g (inanced, asu uurusd L ggosO'gg!gd Ilay !bg Q��tyIstijctoil, a flhlrd2gu,ty go!lity:: SJet4tlhsta.Rd dRg fl;9 fOF9g()dRg. prril�nary uur#eiided 4ii,4iig so�ill:Ge f011: flIe GGRStIRAGt01IR ef flie Par[r,uiig Garage �s the i Gar ��fees appFeved ��gy the DrGtl:uGt q�:jrsuai,# te ZesoW4oi,i No, 20:18 065 Reveliques L49MR)IR 118 (:PUFII!iqtly PeF411qg 4) va��dalq thmm.....:........::....:.::....::.... Il�:e )�G#�Gtt(:) (:'�E49(4t EA :e : :4, AGh:�: eG, (11�� IeF:114 GaF 99 agFeeG t(44ug9lqthl PUFSH9 the Rer!14lGar F99 L�t�gat�()R I'l geed fa�th� �I'IG44444g e��9GtG �R 46 reasoi,49We (JrSGretk)R !tO N:irsue car that are q�:irsued Ird the Il9l4RtW #, :)VGthGt G GGke I Iai*rRg GarageUllDGR fiR41 resoWtk)R Of [�ZeR4 Gar II ee and the avaflabk4y ef Rell GaF R9VeRHeG.6UGh PeVeR�AeG GIhafl I�ge used te offset the Gf alRy SpeG4 II ax Rev0FRIes GGA#A4te Gen#9,4+4te4,-44444e—kR-auii,ig (# tIqe PaF[r,uijlg Ga�age G9R&tR:JGtk)R:: The teril�ns for su 4evei')�Ae lsha4iig AgFeemel'It betweel') flre Partb�sTo the eXteRt the [�ZeR4lGar are uR eXG96�� u 11ax I:Reveii:ies paid or 44NAIFsed to the DGtFrGt f011: the sir !16tFUGturn Of flqe j*41g GaFagflhe )usthGt 6l:Iafl C4Y Ilae F6qk4ed te Ilqayk)t4;q Qty!flle ::ZeR4lGar equaW te flhe 8{geGu4 t f9F th e 2 :::)�str�Gt aI']�' gjt" M, [49s�2oiisfla�kt�es !folic RIRGruty G&M, Ameilg o!flier tWiilgs, ........ ..... the W4P�GfmneRtatb)FI AgF9eM9F!It 6�:Jafl set folpth I'l greater detafl what p9F:t9ii ef flie PhoFity G&M wflk be aeFfermed Dy flie gqReFaW, the rGtIfGt 6haW PeFfqFm aRy F41cuty Q&AA fu flhIlqsr [rs and afl i3l PLAl4G uFI#astrLAGtL4e WGGat9d 4!tWiii the par[rs, flie Qty sIhafl perferiln aRy II ack Oty G&M fallc fl;9 GaF!14au y Sewers all GtFeets, all the all'Id the Qty sslhaWW slhaice equaky,....Iiia aR ail�nOURt RC) t !tO exGeed $300,000 per yeallc� �the G96t C)f flqq �4�C)hty G&M 4ated �to that Geic4ii Gh4a Vrsta :ayfIc9Rt IIMaster P4,iNaturaWZeseur%S Maiiageil�neRt P4,i ffled JL:iile 6, 2 (:) 4 63 r R th e Qffi% Gf th 9 9 r StIc �� Gt G Il 9 1p[r, as 9 9 GU M e R t 6 5 0 6 5 th at a Ilce RW the F66PGR64ky ef a fl*d party, II Ihe Gity slhafl be reqqeurs bl e fer flie epeFatnoR ef 6hutfle 6911PVrGeG leu C the (;Vgh�P:: 4 flheice are RCA &IRGLAgh Sl99Guad Tax ReveiiiL::ies t Wref the :::Nsth ake 535 2 Mechanisms for Proj'ects/Services, _ ...........................................V911,4911') Gel'Iter all Qfl;9F �44�4G Werks. b:: a :)Irlolrlt Jmn s dedicated to .............................. 11 .......... i .................. i i y .................. i ............. ..... ��2 0 v e i n e i ' i " i t s .......................... Special Tax Revenue 122Y f2 the GGIRVe4................911#911: 90114k)Rf1nan6ng of the RHGG PI:C)�eGI7IqP4-k4 th969 of the Phase 4A Wi#rastl:LAG4111:e tO Ila9 2021-02-16 Agenda Packet Page 350 of 395 u s .Il.:. s o r t ......L.M.V .[gyg.!I:n eiin is shall be disbursed pursuant to agreements betweenone........!I".....Imn....0".......:f....the un ung ung........ ! IL...Ld..11"I.d:.� the Chula Vista District, the pity.... �n�nd�u..� �.Ila..d.........IL...,.IL.......d...............l........m. . Bayfront (Facilities (Financing Authority s.iii......:flp.......s.R........hal'ld..; arid Il1Z.11l , II:::211!4: poGt Il91qden8 pllrIo GIalr,ou!!: prs.nd..:......'a.g..!".:.d..'......god .......EDL . t.....g.e Ro.us..IL....tn:u.R ds.....GR the ..ns �ton of the Parlk,niig Gall:ago, !the p i�stu:uGt sllrvpll 14g�e oRt!fllo�d te n.n::n..piu.ns..ii:mn..u,#.........�,+t........a.....s.a.w.14a.b.ls„.......S.ps„...., ., ,. provndliu,ng fllre Qly:.s vI!u,.uN:ugiq aloud p unman nvunng II.. us n nol vdr n ui,4.trator...vru llr FevsoRvllrpo....ovudonRoo (hatthe ...p Jnr Iu uG has . the oournllgk)tuoR Of sn.u... � eF :....:m.......::. r.....: ................ �.....::..... .....:. �........�:... t .::.....::.�w........ ...:::......... pion ion u n (pro nupou Ila, u�soll� ou oon�ntn ooI urpntpr �u�y �Ilrnn d Il�nsu �y sI nl,� ollool uon�n to IlgeFforum n .: the vrorlla. Ili.... p ec.uvp II am Ilyovonnnnos.. au o Rol ni:rnumrnedliololly ..... :......... ..... F6 1444 ....::.........::. :..........................�w.......:...........�:......:n 9l..::.........: aysnllsll�npo ion uonnn��nn.un.�ourren�nl, (pro �.�u�y sllrsllp osn.u,�o �Ilro Il.usyunou�nl � Sllnocusp DnStIPuol RovoRn:uos 1s) fIlro....D. StIPiGt hl nRst l4r nonnl ..Iluvyum neRts n:u4u4 4 sh44 have nulla. te Irnso years mnIrsum.o.Iry smlag Garage nv_ _ _ v request nrr..n.u. �sqi:n.o�l �o.un .r.e Qu.ty... As Mere n.s.0 t:.o.414 y provndod hn.... pre h:np4irneu,#rntoi; ..Agreeu=non t ....and/ons.. fllre ....Ai:m nouldod sRd Ilao&tslod Ilevonn.ue Sprsu uulg AqFGeMeRt.....b.s„t.vr.s„.iii.....p.ll.......p......s.n..t.n.s„s..,.....p.s the ..ovtonnl ....11aoRtall G.s.n Fees ou.... 4lteMaluve... (Roni gou�nervll fn:uRd) :nun ndnn ng rnnsnn.n� .. M �. n:uu ndsr.... his pyo.. t ` �, � iiuup fav pasvoMuos sprvllp I9.9...offs.o.t I�gy d bn "Ilrvsu to pu::n#ovVwc4w a Other lim roveiments - and II°"rporiily Q&\J. If the duly gr District or fIlro....Quty...s lluon.d.sovllaoun. their respective d:m, &. funds on the construction of any portion of the II n.IlrWs.s.s„......:°pA y hall II d ... or ons fIlro....... ...n� n o nI u�n.0 Vis,.. ., . � .. n Ila..!(".g.d..!L '.11.iia..g......!� ,I..d:......Il::: �.IC. oii". ty...... . &M , such Party Other Irnprovernents...g...........!Lr i ............. shall be entitled to reimbursement out of available Special Tax Revenues upon providing the City's designated Financing District administrator with reasonable evidence that such Party has completed, or has caused the completion of such ` Q,t,ror Ilu,.nu overnonls or M Such Party may elect to perform the work itself or contract with any third party at its election to perform the work, If Special Tax Revenues aro not immediately available for reimbursement, as and .......:tg.....:�.11a.p extella:t.....:�.11'a..at SII'-nssudll I sy IReve nnues Ibeco ins y„ysullsllalls urn yssorda nce ulll�n Ill�ny„ :uriioriiliios set forfli in Soclliorn d. t the City small cause the payment of Special its riG ll d„y„ Revenues to such Party in installmentpayments,until such amounts are reimbursed in full I he P: Gtr ci and Qty shas4 have null: to flhree years froumn Ipro....thn e....eu:flheiP punuu sn�vu n .t.g......a Phase 4A Rfu sstu n.uoln.uu o oounll.uou'noRl 0112 Qlpron Ilunll.uu ovonnoRl ws. .. d.d:.11.:...r..11.... rM 2021-02-16 Agenda Packet Page 351 of 395 the .... pr.... u eeu:mneurt ...retvrd:.eur ��.. .... Parties .... euy shall settort 09.11ait.........Il11,1...vr.pr..GNrdhne urelirn[)ursed rro rete Ibased our the .Il 1.hass„.......:1 wrtwvs.t.rn. ct r ., , totell eururn.nell ewnon.nunts eereurded lr )d..0".d..........:fd.l"..........the Other lirr�proveirrnen , i by .II .ILaI...,,..........s.��,.d...........dd.p..:.................. 4 _,. and II:°"Ijorlit ��II Ilrliollr sllrellll uroll . de eur eu,.s . urts .................................d.......................................1,11.....d........................................2,11........ accrued and not reimbursed sn: rs�,jsu,#...........ts...........t.pr............torilms.s.........sf..........:flh Fflpll9FHewrtetwowr green=n9FIt...u0.......... lr2 uou ..Y,221s... td6t( ornell..lumnlrrodeumneints t tddutuo nrtll O&M or QNllyd:n G& If tine .p t.i.s.t.ii.ii.... pity expends flheNF Fesp9EAive its funds on the I. erfc rumrnsn n... "snt scnurstu n.notliour of any tddlitior,Wolf If rn ru,overnernts oil- In 2u,ovlidlo . tllr tddltloura 0&,IIM .p Q jtd shall be entitled to reimbursement out of available Special Tax Revenues .upon providing the City's designated f=inancing District administrator with reasonable evidence that Gn AG.pr......p:::no.Ft.q]g Qlitty has s.s„r:N4bFrHo„dcorn pIlotod or has caused the p of such sou woos. &AGor nWs.u2.ty8ddlitliourell u,.s urr rroveewrts or td6tlrn ioell dt llM ...Il...11re Qty may elect to perform the work itself or contract with any third party at its election to perform the work. If Special Tax Revenues are not immediately available for reimbursement uur tllre twseell year uur 3M:Ir C# the II rnow wty G&IttN e12 OtherG&AA seu vuees are Ilqeu-fou w rued;, tllre ooSt ton S�AG r ...sou vw... e s. and the ....eePeurdwwrg II ew ty sNreNll Ilse eolleNy w espourswlvlle f9F the eeSt of Gn.noNr 6e114uoeG. II Ilre I pow ties shaNl set :forth the Isrnou wtd uri GIlt eewvuees eNreIIR Ilse wowwnbn4116ed to eeoNr of the II eu4wes uur tllre rnpk9FHewrtatuOR green=ner#: t... ttNrew: nueN toed N'. r 0 eGt6 nrw Ser v!I e&...... Atter the ...4111rd�wrg of.... the rd. Y 1evewr.Ue.s ..,e :d.�t ....�se:lrnne weur„uvtww'rn. IIwI.�uevdwneur-( ...wr g.ere2ated to.n mn.p.ovenerts o.o.r.Gt.n.o4d ur e.r.o..e o.0 part VVitllrCiit sllrellll oen.nse tllre 22 wmneurt of Special Tax Revenues sll�wvllll (e.) y............................................................................................ll.............y.......................................... .......:...............�w........: ..................................�:..�:........................::..........:::.. GtF: ...::....::.........:.... . uur tllre oe,�e of the II eu knwrg d,.Wew ego, Ilse eII.�N.�llwed Ilry tllre N...tw,�tu not to Noy ...... w � ....F w. ............::n. ,.....:. �,. d IisNnnw sed to tllre N...° vw�tuee w.w'r.........s.... ,o.w�d.s.wr.... ilmneurded ....surd Restated l ev9RUe SNrernurg... Agreermnewrt ewrdtor IIwn..:.Il. wn..erte.tw..r .g.reelmn rt retveer :the n.e.u4.we.s....:.(.c...........(.t..d:..........�:.l.l .(.y.l.0. rnstellllrneurt re u,nernts a ntlill sucllr arnou nts are urelirnllrn.nrsed in tn.nI1 ................................................................I L............y.......................................................................................................................................................................................................................................................................... 2021-02-16 Agenda Packet Page 352 of 395 6. Eindin : The Parties agree that this Agreement is a binding agreement between the Parties Re.dotnete fllre....remae 11Rnnrq..te1111mns...of tyre.... IlMll9k).M91Rttw R....AgreemeRt...durwRg the !t ru=rn o:f....:this .......g.0 e9l::mn. nr,.t.... Moreover, each Party agrees that, to the extent it expends funds or devotes resources to discussions relative to this Agreement, it shall do so at its sole cost and expense, without expectation of reimbursement, upon its own initiative and not in reliance on this Agreement or any representations of the other Parties. If either Party to this Agreement shall fail to perform or fulfill any obligation required of it under this Agreement and shall not have cured or commenced to cure such failure within thirty (0) days following written notice thereof from the non -defaulting party (or has commenced to cure such failure, but is not diligently proceeding to cure such failure), then the Party shall be in default under this Agreement (each such event or occurrence, a "Event of Default"). In the event of an Event of Default, the non -defaulting Party may, in its sole and absolute discretion, elect to either: (a) extend the time for the defaulting Party to perform the applicable obligation(s) hereunder for a period of time acceptable to the non -defaulting Party beyond the cure period set forth in this Section 6, or (b) proceed with an action or proceeding for specific performance. 7. Discretionary lotions: The Parties swr.:�. G proveiments n.Ihae::e.......a.r.e.:t........t:.r.o....... Priority m rnp l„qyq„pm qp (p and Priority O (collectively "Special Tax Revenue .II.1.d:!I".........IL.::........ Projects") have been analyzed in the Final Environmental Impact Report for the Chula Vista Bayfront Master Plan and Port Master Plan Amendment (UPD #33356-EIFR-656, SCH #2005061077), dated June 16, 2010, on file in the Office of the District Clerk bearing Document No, 56562 ("Project EIR") in accordance with the California Environmental Quality Act ("CEQ "). However, to the extent that any future improvements, including without limitation thether"Add!.(.I.2.II�..d im lrovements surd .. Improvements ...P.�..!I.d.l:.i.2.11 :.Ilfl, have not been identified as of the date of this Agreement, such improvements may require further environmental review in accordance with CEQA. This Agreement shall not bind the District and/or City, as applicable, to approving any Special Tax Revenue Projects, or puny nr.e„ce.s.s.aFygddlitliornanl CEQA analysis:, it any, uneeesssupgpq for the same, including feasible mitigation measures, project alternatives (without limitation the a "no project alternative") or a statements of overriding considerations, if required. The Parties understand, acknowledge and agree that, notwithstanding the terms and conditions of this Agreement, the Special Tax Revenue Projects may require discretionary approvals, including without limitation, agreements related to real property or operation, maintenance, servicing or replacement of improvements, California Coastal Act approvals, conditional project approvals and other discretionary permits and entitlements (collectively, "Discretionary Actions"). Nothing in this Agreement shall commit the respective Party to a definite course of action or in any way diminish the respective Party's exercise of its discretion for any Discretionary Action. Any and all Discretionary Actions may be exercised in the sole and absolute discretion of the respective Party exercising such direction. The Parties assume the risk that a Discretionary Action may not be taken or approved. N 2021-02-16 Agenda Packet Page 353 of 395 EEnjtir car im , This Agreement constitutes the entire understanding and agreement of the Parties, integrates all of the t rims and conditions im ntion d herein or incidental hereto, and supersedes afl ....uR g ta!t nuns or .... prev ceus n.. ..�w............::.......... �:.. F sgwwnu�n�s ��u�n �I�n II �suw� a �Il�nww Iwd sll.l... r aRY " . hie 0rq. uunsll J SII . �u....� �p�.s„ �.��: s� a n��u� Ihu ��I. 9. Governing Law, This Agreement and all of the rights and obligations of the Parties hereto and all of the t rims and conditions hereof sh ll be construed, interpreted,„ and applied in accordance with and governed by and enforced under the leas of the State of California, A 2021-02-16 Agenda Packet Page 354 of 395 19, 2021-02-16 Agenda Packet Page 355 of 395 [SIGNATURE PAGE TO X'14III � JOINT COMM UNITY .............. FACILITIES AGREEMENT] II N WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the #9G4ve44R4adate Mist wrotten a[)ove, ............... "I'll", APPROVED AS TO 1FC7RM AND LEGALITY, GENERAL COUNSEL ma Assistant/Deputy CITY OF CHULA VISTA, a chartered imunicipal corporation 0 APPROVED AS TO FORM: mm Glen FR, Googins, City Attorney 1B SAN DIEGO UNIFIED PORT DISTRICT, a public corporation mm 2021-02-16 Agenda Packet Page 356 of 395 RESOLU,rION NO, RESOLU,rION OF THE ary COUNCIL OF FHE ary OF CHULA vis,FA APPROVINGi A 'rHIRD AMENDED AND REs,rA,rED REVENUE SHARING AGREEMEN'r BY AND AMONG FHE ary OF CHULA vis,FA, FHE SAN DIEGO UNIFIED POR,r Dismicr, AND FHE CHULA vis,FA BAYFRON'r FACII ILII S FINANCING AUFHORrry WHEREAS, the City of Chula Vista (the "City") and the San Diego Unified Port District (the "District") began a collaborative planning process with the community to develop a comprehensive Chula Vista Bayfront Master Plan (CVBMP) in 2002; and WHEREAS, on May I8, 20I0, the District and the City unanimously approved the Final Environmental Impact Report (LJPD#83356.-EIR.-658; SCH No. 200508 l 077) for the CVBMP; and WHEREAS, the City and District are parties to that certain Amended and Restated Chula Vista Bayfront Master Plan Financing Agreement dated June 20, 20I7, by and between the City and the District (the "Financing Agreement"); and WHEREAS, the City and District are parties to that certain Disposition and Development Agreement (the "DDA") dated May 7, 20I8, with RIDA Chula Vista, LLC (RIDA), which contemplates the development of a resort hotel and convention center (the "RFICC Project") and related public infrastructure improvements; and WHEREAS, it is expected that as part of the closing of the obligations contemplated under the DDA (the "Close of Escrow"), the City and the District, through a joint exercise of powers authority will issue revenue bonds to support the financing of the Convention Center and the FICC Public Improvements (each as defined in the Financing Agreement); and WHEREAS, the City and District are parties to that certain Revenue Sharing Agreement dated April 24, 20 l 8 (the "Original RSA"); and WHEREAS, the City and District are parties to that certain Amended and Restated Revenue Sharing Agreement dated November 19, 2019 (the "Amended and Restated RSA"); and WHEREAS, the City and District are parties to that certain Second Amended and Restated Revenue Sharing Agreement dated September 15, 2020 (the "Second Amended and Restated RSA"); and WHEREAS, the City and District mutually desire to amend and restate the Second Amended and Restated RSA, in the form presented in Exhibit l to this resolution, NOW, THEREFOR E, BE i,r RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the 'Third Amended and Restated Revenue Sharing Agreement By 2021-02-16 Agenda Packet Page 357 of 395 Resolution No. Page 2 and Among the City of Chula Vista, the San Diego Unified Port District, and the Chula Vista Bayfront Facilities Financing Authority, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on Cite in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same, 'Tiffany Allen Director of Development Services Approved as to form by: Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 358 of 395 Draft. Dated 02/04/21 THIRD AMENDED AND RESTATED REVENUE SHARING AGREEMENT By and Among CITY OF CHULA. VISTA., SAN DIEGO UNIFIED PORT DISTRICT, and CHULA. VISTA. BAYFRONT FACILITIES FINANCING AUTHORITY (Chula Vista Resort Hotel, Convention Center and Public Infrastructure Improvements) This Third Amended and Restated Revenue Sharing Agreement ("Agreement"), dated- -, 2021, is entered into by and among the City of Chula Vista, a chartered municipal corporation ("City"), the San Diego Unified Port District, a public corporation ("District"), and the Chula Vista Bayfront Facilities Financing Authority, a California joint exercise of powers authority ("Authority"). The City, Authority, and District may be individually referred to herein as, a "Party", and collectively as, the "Parties". RECITALS WHEMEAS, to develop certain portions of the Chula Vista Bayfront ("CVB") for the benefit of the residents, tenants, and visitors of the CV13, the City and the District formed the Authority to fund a portion of the costs of a convention center ("Convention Center") to be located on the CV13 and a portion of the costs of certain public infrastructure improvements in the CVIS to be constructed during the initial phase of development of the CVIS (such public infrastructure improvements being herein referred to as the "Phase IA Infrastructure Improvements"); and WIIEREA.S, the Authority will fund such costs through issuance of the Chula Vista Bayfront Facilities Financing Authority Revenue Bonds (Chula Vista Bayfront Convention Center) Series 2021A (Federally Taxable) (the "2021A Bonds") and Chula Vista Bayfront Facilities Financing Authority Revenue Bonds (Chula Vista Bayfront Convention Center) Series 202113 (Tax -Exempt) (the "202 1 B Bonds" and, together with the 202 1 A Bonds, the "Authority 2021 Bonds"); and WIIEREA.S, the Authority 2021 Bonds will be issued pursuant to the terms of all indenture of trust ("Indenture") by and between the Authority and the corporate trustee identified therein (the "Trustee")-, and WHEMEAS, it expected that RIDA Chula Vista, LLC ("RIDA") will finance the construction of a resort hotel ("Hotel") to be located on the CV13; and WIIEREA.S, it is expected that RIDA. will make payments to the District with respect to the I IoM; and WIIEREA.S, it is expected that RIDA. will make payments to the City, or its assignee, with respect to the Convention Center; and WIIEREA.S, the District will contribute funds to the repayment of the Authority 2021 Bonds pursuant to a Support Agreement between the Authority and the District (the "Support Agreement") and the City will contribute funds to repayment of the Authority 2021 Bonds pursuant to a Facility Lease between the Authority and the City; and 4123-6602-0395.6 2021-02-16 Agenda Packet Page 359 of 395 WHEREAS, the Bayfront Project Special Tax Financing District ("Special Tax District") will 'bute f I contri funds to the repayment of the Authority 2021 Bonds pursuant to a loan agreement between the Special Tax District and the Authority (the "Loan Agreement"); and WHEREAS, the City and the District entered into that certain Revenue Sharing Agreement dated April 24, 2018 and filed in the Office of the District Clerk as Document No. 68392 (the "Original RSA"); and WHEREAS, the City and District entered into that certain Amended and Restated Revenue Sharing Agreement dated November 19, 2019 and filed in the Office of the District Clerk as Document No. 70911 (the "Amended RSA") that amended and restated in its entirety the Original RSA.; and WHEREAS, the City and District entered into that certain Second Amended and Restated Revenue Sharing Agreement dated September 15, 2020 and filed in the Office of the District Clerk as Document No. 71855 (the "Second Amended RSA") that amended and restated in its entirety the Amended RSA.; and WHEREAS, the City and the District desire to amend and restate in its entirety the Second Amended RSA. as set forth herein to add the Authority as a Party to this Agreement and to describe the funds to be contributed and distributed pursuant to this Agreement. NOW THEREFORE, in consideration of One DoHar and the mutual promises set forth herein, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: I. &cjUk The Recitals are incorporated herein by reference. 2. Term. The term of this Agreement commenced on the effective date of the Original RSA., May 7, 2018. Amendment and restatement of the Second Amended RSA_ as set forth herein shall take effect on the date first set forth above. If the Authority 2021 Bonds are issued, this Agreement shall terminate on the dater to occur of the following two dates, which shall be referred to herein as the "Agree mentTer mination Date": (i) the first date on which no Authority 2021 Bonds remain Outstanding (as such term is defined in the Indenture); or (10 thirty-eight (38) years trom the date the Authority 2021 Bonds are issued (the "Closing Date"), provided however that in no event shall the term of this Agreement exceed sixty-six (66) years. Prior tri the Closing Date, the Parties may, byrnutual agreement, terminate this Agreement at anytime. If the Authority 2021 Bonds are not issued on or prior to June 30, 2025, then this Agreement shall terminate on July 1, 2025 unless extended or terminated by mutual agreement of the Parties prior thereto. 3. Agreements. This Agreement amends, restates, and supersedes in its entirety the Second Amended RSA.. As their interests may appear, the City, the District and the Authority hereby agree as follows: 3.1 Tunds and Existing lunds. "Funds" means, collectively, moneys in an amount equivalent to each of the following sources of funds actually received by the City 01' the District on a yearly basis commencing July 1, 2018: N 4123-6602-0395.6 2021-02-16 Agenda Packet Page 360 of 395 O all funds derived from the following items (a) --- (b) (collectively, "Ground Lease Revenues"): (a) those real estate agreements set forth in Exhibit I (collectively, the "Other Ground Leases"); provided, however, if one or more of the Other Ground Leases are renewed, replaced, or amended In such a way as to change the size or configuration of the original premises to include premises outside of the original premises boundaries of all the Other Ground Leases (each a "Modified Boundary Lease"), then, for purposes of this Section, the Ground Lease Revenues derived from each Modified Boundary Lease shall be calculated by multiplying the total amount of Ground Lease Revenues generated by such Modified Boundary Lease by a traction, the numerator of which shall be an amount equal to the Modified Boundary Lease premises still within the original premises boundary, and the denominator of which shall be the total premises area of the Modified Boundary Lease as modified. The City and the Port District acknowledge and agree that a Modified Boundary Lease shall not include the modification of the RV Park Lease (listed on and as defined In Exhibit 1) to include some or all of parcel S-3 or a replacement of the RV Park TUOP (listed on and as defined in Exhibit 1) where RIDA. is the tenant. For example, if the original premises of an Other Ground Lease encompasses 5.0 acres, and the Modified Boundary Lease includes 4.0 acres of the original premises, and adds 6.0 acres of premises outside the original premises, then forty percent (40%) of the lease payments paid to the District under the Modified Boundary Lease shall be included as Other Ground Leases lease payments under this Section (collectively, the "Other Ground Leases Revenues"), - to the extent District enters into any revenue generating agreement other than a Ground Lease with respect to operations on all or any portion of the Other Ground Leases premises, such revenue, net any related out. -of -pocket operating costs paid by District to third parties, shall also be included as Other Ground Leases Revenues under this Section; (b) less $3,283,970, which is the actual amount of the buyout payment paid solely by the District to Chula Vista Manna, LP, dba Chula Vista Manna ( "RV Park Lessee") to terminate the lease between the RV Park Lessee and the District ("Net RV Park Buyout Credit"), such amount to be amortized over a period of eight years commencing on July 1, 2018 pursuant to the schedule of credits provided in Exhibit 2, attached hereto and incorporated herein by reference ("Net RV Park Buyout Credit Schedule"), as such Net RV Park Buyout Credit Schedule and its contents may be administratively modified from time to time with the mutual consent of the City Manager 3 4123.-6602.-0395.6 2021-02-16 Agenda Packet Page 361 of 395 of the City (the "City Manager") and the Executive Director of the District (the "Executive Director"), without further approval of the Board of Port Commissioners of the District ("District Board") or City Council of the City ("City Council"), - and (I the annual payments to be made by the District (the "District Support Payments") pursuant to the Support A.greement; and (iii) any funds in addition to those specified in (1) and (III) above committed by the District to the Convention Center or the Phase IA. Infrastructure Improvements (together, the "CV13 Public finprovements") to be applied as Funds in accordance with the terms of this Agreement with the approval of the City Manager and the Executive Director, without further approval of the District Board or the City Council. B. City (1) the transient occupancy taxes levied pursuant to Chula Vista Municipal Code Chapter 3.40, attributable to the Convention Center, the HoM, the RV Park TUOP (listed on and as defined in Exhibit 1), and the RV Park Lease (listed on and as defined in Exhibit 1) (such transient occupancy taxes, the "TOT"); (I that portion refuse and sales taxes levied pursuant to the Bradley. -Burns Uniform Local Use and Sales Tax Law (Cahfornla Revenue and Taxation Code Section 7000, elseq.) and allocated to the City pursuant to applicable law attributable to the RV Park Lease, the Convention Center and the HoM, exclusive of any amount so levied and allocated to the City pursuant to voter approval by the electors of the City, which portion is currently one percent (1%) of taxable transactions (the "Sales Tax"); (iii) incremental ad valorem property tax (including property tax in. -lieu of motor vehicle license fees) generated by the Convention Center and Hotel parcels, which is that amount in excess of any ad valorem property tax levied in the fiscal year in which the Authority 2021 Bonds are issued; (1v) an amount equal to $986,625.00, increasing 3% on July I of each year, commencing July 1, 2017, which amount is based on the payment made by the District to the City in fiscal year 2016 pursuant to that certain Municipal Services Agreement No. 88-2012 between the District and the City for the provision of Police, Fire and Emergency Medical Services; (v) special tax proceeds ("Special Tax Revenues") of the Special Tax District, equal to the annual amount used to repay the Authority under M 4123-6602-0395.6 2021-02-16 Agenda Packet Page 362 of 395 the Loan Agreement or any other indebtedness of the Special Tax District related to the Authority 2021 Bonds; and (vi) any funds in addition to those specified in (1) through (v) above committed by the City to the CVIS Public li,riprovements to be applied as Funds in accordance with the terms of this Agreement, with the approval of the City Manager and the Executive Director, without further approval of the City Council or the District Board. C. As used herein, "Existing Funds" means, collectively, moneys in an amount equivalent to each of the following sources of funds actually received by the District or the City, as applicable, from and after July 1, 2018: (1) the Ground Lease Revenues; (10 the TOTattributaWe to the RV Park TUOP and the RV Park Lease; and (nl) amounts described in Section 3. 1 (13)(Iv). 'rhe City and the District shall remit any Existing Funds remaining after any expenditure permitted by Section 3.2 to the Authority by no later than the date the Preliminary Official Statement for the Authority 2021 Bonds is posted on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access website (the "Contribution Date"). No interest will accrue with respect to the Existing Funds contributed by the City or the District prior to the Contribution Date, 'The Existing Funds to be contributed by the City and by the District shall not include interest earned by the City or the District on such funds prior to the Contribution Date, Should either the City or the District elect to retain Existing Funds for the period from and after July 1, 20 l 8 to the Contribution Date, such Existing Funds shall be reported as restricted in the audited Financial statements included in such Party's Comprehensive Annual Financial Report ("CAFR"), commencing with such Party's CAFR for the Fiscal year ended June 30, 2020. Funds received by the Authority on the Contribution Date shall be transferred by the Authority to the 'Trustee on or prior to the Closing Date as provided in Section 11 3.2 Use of Existing Tends Prior to the Contribution Date. Existing Funds may be expended by the City and the District prior to the Contribution Date pursuant to the to l l ow'I 11 g terms: A. The City may deduct amounts reimbursed to RIDA. pursuant to that certain Pre - Close Design Reimbursement Agreement, dated September IS, 2020, entered into between the City and RIDA.. B. The City may deduct plan review, permitting, and inspection fees in the amount that would have been incurred by RIDA. to process the work for the Phase IA Infrastructure fi,riprovements based on current schedules of fees adopted by the City for such plan review, permitting, and inspection; 5 4123-6602-0395.6 2021-02-16 Agenda Packet Page 363 of 395 C. The City and the District may deduct design, plan review, permitting, project/construction management, and inspection costs incurred by the City and the District, respectively, for Phase ]A. Infrastructure fi,riprovements, memorialized in one or more operating memoranda of the City and the District executed by the City Manager and the Executive Director, without further approval of the City Council or the District Board; D. The District or the City may deduct the cost of any Phase ]A. Infrastructure Improvements constructed by or at the direction of RIDA_ pursuant to that certain Chula Vista Bayfront Project Phase IA. Early Work fi,ripVementatloll and Right of Entry License Agreement, to be entered into among the City, the District, the Authority and RIDA., including without hmitation, any cost increases and delay damages, up to the amount of the budget approved by such parties; E. The City and the District may deduct such amounts necessary for the payment of existing or future obligations of the Authority, including without hmitation, administrative fees, consultant and attorneys' fees, and other staff reimbursements and fees (collectively, the "Pre. -Close Authority )Expenses"), as such Pre -Gose Authority Expenses are memorialized in one 01' more operating memoranda of the City and the District executed by the City Manager and the Executive Director, without further approval of the City Council or the District Board; F. Prior to the deduction of any amounts by the City or by the District pursuant to Section 3.2(A.) through Section 3.2(E), the Party desiring to deduct such amount shall submit all accounting of such amounts to the other Parties and the other Parties shall review the accounting in good faith and approve or reject such accounting within thirty (30) days. If the accounting is approved, such amount shall be deducted from the Existing Funds to be delivered by such Party prior to the Contribution Date. Should the Closing Date for the Authority 2021 Bonds not occur as provided in Section 2, and such date is not extended by mutual agreement of the Parties in accordance with Section 2 of this Agreement, the City and the District shall each prepare all accounting of amounts deducted and approved by such Party from the Existing Funds pursuant to Section 3.2(A.) through Section 3.2(E) above (the "Pre.-Oose Expenses"). Should the Pre -Close Expenses of the City exceed the Pre.-Oose Expenses of the District, or in the alternative, the Pre.-Oose Expenses of the District exceed the Pre -Gose Expenses of the City, then the Party with the lower Pre.-Oose Expenses shall make a reimbursement sufficient to equalize the Pre -Gose Expenses between the City and the District (e.g., if the City has expended $2.0 million and the District has expended $1.0 million, then the combined Pre.-Oose Expenses total $3.0 million, with a fair -share expense of $1.5 million per Party, and a reimbursement due trom the District to the City in the amount of $0.5 million, the "Pre. -Close Expense Reimbursement"). The Pre.-Oose Expense Reimbursement shall be made within thirty (30) days of the District and City's mutual agreement as to the amount of such payment; and G. This Section 3.2 shall survive the termination of this Agreement. M 4123-6602-0395.6 2021-02-16 Agenda Packet Page 364 of 395 3.3 Use qfl,,xisting lunds Yubsequent to the Contribution Daae. Any Existing Funds collected by the City and the District subsequent to the transfer of funds on the Contribution Date shall be paid by such Parties to the Authority, for transfer by the Authority to the Trustee on or prior to the Closing Date for application in accordance with the provisions of the Indenture. 3.4 Distribution qfTunds Post Closing Daae. On and after the Closing Date until the Agreement Tertnination Date, amounts disbursed by the Trustee to the Authority pursuant to the provisions of the Indenture (the "Residual Revenues"), together with the RIDA. Lease Payments (as such term is defined below) received by the Authority, shall be applied in the following order of priority: To reimburse the District for the cumulative amount of District Support Payments actually contributed by the District and not previously reimbursed to the District by the Authority; then 2. To reimburse the City and the District pari passu for any amounts either Party actually paid or contributed to the County of San Diego ("County") pursuant to the Chula Vista Bayfront Project Funding Agreement ("Funding Agreement") by and among the County, the City, the District and the Authority; then To reimburse the City for 73.6% of the cumulative actual, direct costs incurred by the City to provide fire service within the CVB, which 73.6% reflects amounts for which the City is entitled to reimbursement in addition to any payments the City receives pursuant to any municipal services agreement between the City and the District in effect at the time such reimbursement is being made and which is the proportionate share of costs attributable to the Convention Centel- and the Hotel and not previously reimbursed to the City or paid through Special Tax Revenues; then 4. To reimburse the City and the District on a proportionate, pro -rata basis, for each Party's contribution of the Existing Funds, as of the Closing Date; then To reimburse the City and the District on a proportionate, pro -rata basis, for each Party's contribution of Existing Funds after the Closing Date, continuing to the Agreement Tertnination Date; then 6. To fund an additional reserve fund or reserve fund insurance policy in the amount of one year's debt service for the Authority 2021 Bonds; and finally 7. Any Funds remaining after the payments described in numbered items (1) through (6) above will be equally distributed between the City and the District. No interest will accrue with respect to unreuribursed Funds contributed by the City or the District. 3.5 RHM Lease Payments. Pursuant to a ground lease between the District and RIMA. for the Hotel (the "Hotel Ground Lease") and a sublease between the City and RIDA. for the Convention Center (the "Convention Center Sublease"), each to be executed at the Closing Date, RIDA_ will be obligated to pay to the District and to the City, 7 4123-6602-0395.6 2021-02-16 Agenda Packet Page 365 of 395 respectively, certain payments, which payments, exclusive of the RIDA. Parking Payments (as such term is defined in Section 3.8 of this Agreement) and ally Advance Rent (as such term is defined in the Convention Center Sublease) are collectively referred to herein as the "RIDA Lease Payments." Each of the District and City shall remit to the Authority any RIDA. Lease Payments such Party actually receives from RIDA_ within thirty (30) days following the District's or City's receipt of such RIDA Lease Payments. The District's and City's obligation to remit the RIDA. Lease Payments to the Authority shall cease oil the Agreement Termination Date. For purposes of this Agreement, the RIDA. Lease Payments shall not be considered Funds. 3.6 Parks. The District and the City have agreed to cooperate in good faith and use their respective best efforts to negotiate an agreement ("Park Agreement") which grants the City a nonexclusive, joint -use right or other interest in the areas designated for public park use within the C (the "Park Areas"). The Park Agreement is anticipated to provide as follows: as and when the City collects Parkland. Acquisition and Development fees, or other such park related impact fees as may be adopted in the future, from developments in the CV13 (collectively, the "PAD Fees"), the City will pay the acquisition component of such PAD Fees to the District, or all amount equivalent to the acquisition component of the PAD Fees, as rent under the Park Agreement (such amount being referred to as the "Park Rent"). To the extent that the City pays Park Rent to the District, the District shall contribute the Park Rent actually received to the Authority and the Authority shall use the Park Rent to reimburse the City and the District for O&M Costs actually paid by each of the City and the District, subject to terms of any future implementing agreements entered into by the City, the District and/or the Authority. 3.7 01)erations & Maintenance Costand ]/Mnsit Plan. A. The City and District agree to generally split the operation and maintenance costs ("O&M Costs") for the CVB not otherwise maintained by a third party. The District will be responsible for the O&M Costs ofthe parks and all related public infrastructure located within the parks. The City will be responsible for the O&M Costs of the streets and sanitary sewers. B. The City and District will split the O&M Costs payable pursuant to that certain Chula Vista Bayfront Master Plan Natural Resources Management Plan filed June 6, 2016 in the Off -ice of the District Clerk as Document No. 65065 that are not the responsibility of a third party ("NRMP Costs"). The NRMP Costs shall be shared equally by the District and the City. C. The City will be responsible for funding a transit plan for the Chula Vista Bayfront Shuttle as defined in the Chula Vista Bayfront Master Plan Public Access Program, filed in the Office of the District Clerk as Document No. 59408, as such document may be amended from time to time (the "Shuttle Transit Plan"). The City will cooperate with the District in good faith to coordinate implementation of the Shuttle Transit Plan with any other transit plan needed for the CVB. The City will also be responsible for funding the implementation of the Shuttle Transit Plan, including capital costs and operational costs of the Chula Vista Bayfront Shuttle, until such time as such I 4123-6602-0395.6 2021-02-16 Agenda Packet Page 366 of 395 operational costs are borne by other appl lcaWe transportation providers or the City and District mutually agree that the Chula Vista Bayfront Shuttle is no Ionger required. In no event shall either Party be reimbursed for any O&M Costs that have been previously reimbursed to such Party through Special Tax Revenues or Park Rent. 3.8 Parking Lease Payments. RIDA. is expected to pay to the District a percentage of the gross revenues it receives for the use of parking spaces oil the Hotel site and in the parking garage (collectively, the "RIDA Parking Payments"). The District shall deliver to the City fifty percent (50%) of all RIDA. Parking Payments the District actually receives from RIDA. under the Hotel Ground Lease within thirty (30) days following the District's receipt of such RIDA Parking Payments. The District's obligation to remit the RIDA. Parking Payments to the City shall cease oil the Agreement Termination Date. For purposes of this Agreement, the RIDA. Parking Payments shall not be considered Revenues as such term is defined in the Indenture and shall not be considered Funds for purposes of this Agreement. 4.1 ) �eratjn �),Met�norandq. To the extent the City and the District enter , into any operating memoranda pursuant to the terms of this Agreement that requires any action(s) be taken by the Authority, the City and the District shall (1) specify in the operating memoranda any instructions that the Authority shall follow upon receipt of the operating memoranda; and (10 promptly deliver the operating memoranda to the Treasurer of the Authority after the execution of the operating memoranda by the City Manager of the City and the Executive Director of the District. If the Authority is unable to comply with the instructions set forth in the operating memoranda for any reason, the Authority shall inform the District and the City promptly and to the extent compliance with the instructions requires the adoption of certain administrative rules or procedures or all amendment to the Amended and Restated Joint Exercise of Powers Agreement filed oil August 7, 2019 in the Off -ice of the District Clerk as Document No. 70245 ("Authority Incorporation Agreement') or the Bylaws of the Authority ("Authority Bylaws"), the City and the District, as the sole members of the Authority, shall use good faith efforts to promptly adopt such administrative rules or procedures administratively or present any modifications to the Authority Bylaws or Authority Incorporation Agreement to the Authority Board of Directors for their consideration, as necessary. 5. Binding Agreement. The Parties agree that this Agreement is a binding agreement among the _ Parties. Notwithstanding the binding nature of this Agreement, the Parties contemplate that future implementing agreements between the City and the District or the Authority, between the District and the Authority and/or among the City, the District and the Authority may be needed to implement or clarify the terms of this Agreement. To that end, each of the Parties agree to meet and confer in good faith in response to a request by any other Party regarding the implementation or clarification of this Agreement. 6. Event of Default. An "Event of Default" will occur under this Agreement when: (a) there is a material breach of any material condition, covenant or promise set forth herein; (b) written notice thereof has been given to the Party in breach; and (c) such breach has not been cured within tell (10) business days after such notice was given to the Party in breach. In the event the breach cannot reasonably be cured within such tell (10) business day period, the Party in breach must commence cure of the breach within such tell (10) business day period and thereafter diligently proceed to cure such breach. A. waiver by any Party of any such breach a 4123-6602-0395.6 2021-02-16 Agenda Packet Page 367 of 395 shall not be construed as a waiver of any succeeding breach of the same of- other condition, covenant of, promise. In the event of all Event of DetaWt, the non-detaWfing Parties may, in their sone and absoute discretion, effect to either: (a) extend the tune beyond the cure period set forth in this Section 6 for the defauhAng Party to perform the apphcaMe oNigation(s) hereunder for a period of tune acceptaMe to the non-defauhAng Parties, of- (b) proceed with all action of- proceeding for specific performance. 7. Remedies. The occurrence of all Event of DefaWt shaH give the non-detaWung Parties the right to proceed with all action of- proceeding for specific performance. 8. Notices. The notice addresses shall be the same as those set forth in the Authority Incorporation Agreement and shall be sent by certified U.S. MA (return receipt requested) and shall be deemed dchvered three days after deposit in the U.S. MaIL 9. Enfir I I I j,i re Agreement. Thl s Agreement constitutes the entire understanding annd agreement of the Parties, integrates A of the terms and conditions mentioned herein of- incidental hereto, and supersedes aH negotiations of, previous agreements between the City and the District with respect to the subject matter hereof. 10. Draffing Presui, f,)tionReview Standard. The Parties acknowWge that this Agreement has been agreed to by A the Parties, that each Party has consWted with attorneys with respect to the terms of this Agreement and thatno presumption shall be created againstthe drafting Party. Any deletion of language trom this Agreement prior to its execution by City, District and Authority shall not be construed to raise anypresumption, canon of construction of- unpHcation, including, without hnutation, any unpHcafion that the Parties inntennded thereby to state the converse of the Meted Vanguage. IL Governin),LLaw. This Agreement and all of the rights ann d oNigatios of the Parties hereto and _ all of the tertris and conditions hereof shall be construed, interpreted and apphed in accordance with and governed by and enforced under the Vaws of the State of Cahforma. 12. LCounterparts. This Agreement may be executed in any number of counterparts, each of which shall be the original and A of which shall constitute one and the same document. 13. LEL�ectronjc Sj matures. The words "execution", "execute", "signed", "signature", and words of life unport in of- related to any document signed of- to be signed in connection with this Agreement and the transaction contemplated hereby shall be deemed to McMe electrofnc signatures, contract formations oil electrofnc Platforms approved by the Parties, of- the keeping of such eVectrofnc signatures and eVectrofnc contracts in eVectrofnc form, each of which shall be of the same �ega� effect, validity of- enforceaNity as a manually executed signature of, the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any apphcaMe law, including the Federal Bectronic Signatures in CdoM and National Commerce Act, the Cahforma Uniform Bectronic Transaction Act, of, any other similar state laws based oil the Uniform Dectronic Transactions Act. ffm 4123-6602-0395.6 2021-02-16 Agenda Packet Page 368 of 395 IN WI'T'NESS WHEREOF, the Parties hereto have executed this Agreement as of the day and the year first set forth above. mum Kerry K. Bigelow, City Uerk APPROVED AS 'T'O FORM: Cden R. Googins, City Attorney APPROVED AS 'T'O FORM AND LEGALIT'Y GENERAL COUNSEL 0 T'homas A.. Russe� � 4123-6602-0395.6 C'IT'Y OF CHULA VISTA m Mary CaslHas Sagas, Mayor SAN DIEGO UNIFIED PORT' DISTRICT', a pub 1c corporat 1 Oil m m 2021-02-16 Agenda Packet Page 369 of 395 AUTHORITY: APPROVED AS TO FORM AND LEGALITY CO -COUNSEL m 0 Cden R. Googills City of ChWa Vista City Attorney Thomas A.. Russd � San Dlego Unified Port District Genera General Counsd In 4123-6602-0395.6 CHULA VISTA BAYFRONTFACILITIES FINANCING AUTHORITY, a Cahfornla Joint exerciser (powers authority m mm 2021-02-16 Agenda Packet Page 370 of 395 Exhibit I Listing of Other Ground Leases I . Amended, Restated and Combined Lease between the San Diego Unified Port District (the "District") and The Marine Ciroup L,L,C for property at the North Side of Ci Street at the teimillus of both Quay Avenues and Sandpiper Way in Chua Vista, which lease is oil Me in the Office of the District Clerk as Document No. 54509, as amended and may be amended fi-om time to time. 2. L,ease between the District and Chua Vista Manna, L,P, dba Chua Vista Mai -ilia, for property located at 550 Manna Parkway in Chua Vista which lease is oil file in the Office of the District Clerk as Document No. 14244, as amended and may be amended fi-om time to time. 3. L,ease between the District and Cahfornla Yacht ]Marina.-Chua Vista, L,L,C, for property located at 640 Manna Parkway in Chua Vista which lease is oil Me in the Office of the District Clerk as Document No. 23924, as amended and may be amended fi-om time to time. 4. L,ease between the District and Sun Chua Vista Bayfi-ont RV L,L,C for property Vacated. at 825 E Street in Chua Vista (Costa Vista RV Park) which lease is oil file in the Off -ice of the District Clerk as Document No. 70407, as amended and may be amended fi-om time to time ("RV Park [.ease"). 5. Tideland Use and Occupancy Permit between the District and Sun Chu�a Vista Existing Park RV L,L,C for property Vacated at 460 Sandpiper Way in Chua Vista which fideVand use and occupancy permit is oil file in the Off -ice of the District Uerk as Document No. 69412, as amended and may be amended from time to time ("RV ParkTUOP"). a 4123-6602-0395.6 2021-02-16 Agenda Packet Page 371 of 395 Exhibit 2 Net R.V Park Buyout Credit Schedule Fiscal Year (FY) R.V Park Buyout Credit Cumulative Credit FY 19 $410,500 $410,500 FY 20 $410,500 $821,000 FY 21 $410,500 $1,231,500 FY 22 $410,500 $1,642,000 FY 23 $410,500 $2,052,500 FY 24 $410,500 $2,463,000 FY 25 $410,500 $2,873,500 FY 26 $410,470 $3,283,970 Note: The too rent credit was reduced fi-om $4,329,614 to $3,283,970 based on a permitted rent credit app ped to the ChWa Vista Manna Vease as paruaV payment of the RV Park Buyout. This therefore wiH reduce the ChWa Vista Manna rent actuaHy received by the District fi-om the tenant by $1,045,644 until November 30, 2021. Elm 4123-6602-0395.6 2021-02-16 Agenda Packet Page 372 of 395 ITY COUNCIL STATEMENT CITY OF tM U LA V1 STA February 16, 2021 File ID: 20-0010 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ACCEPTANCE OF A CONSOLIDATED APPROPRIATIONS ACT OF 2021 ALLOCATION FROM THE UNITED STATES DEPARTMENT OF 'TREASURY FOR AN EMERGENCY RENTAL ASSISTANCE PROGRAM AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY TO PURSUE AND ACCEPT A BLOCK GRANT FROM STATE OF CALIFORNIA DEPARTMENT OF BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY (BCSII) FOR AN EMERGENCY RENTAL ASSISTANCE PROGRAM, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A STANDARD AGREEMENT WITH BCSI-I FOR THE IMPLEMENTATION OF A STATE EMERGENCY RENTAL ASSISTANCE PROGRAM PURSUANT TO SENATE BILL 91, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING REQUIREMENTS PURSUANT TO CHULA VISTA MUNICIPAL CODE SECTION 2.56.070(13)(3) AND APPROVING A CONTRACTOR/SERVICE PROVIDER AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES (SBCS)TO PROVIDE AN EMERGENCY RENTAL AND UTILITY ASSISTANCE PROGRAM FUNDED BY STATE AND FEDERAL CONSOLIDATED APPROPRIATIONS ACT OF 2021 ALLOCATIONS 11 17CO M M 1.N 1) A, ("I'll 0 N Council adopt the resolutions. SUMMARY The Consolidated Appropriations Act of 2021 provides $25 billion nationally from the United States Department of reasury (the "Treasury") to help low-income renters financially impacted by the COVID-19 pandemic. Known as the Emergency Rental Assistance (E P) program, funds are available to eligible low- income households (those earning less than 80 percent of the area median income (AMI)), with priority given to very low-income households (those earning less than 50 percent or those experiencing unemployment for the last ninety days). Funds can be applied to rent and utility payments, including arrears, up to a maximum of 12 months of total assistance. The City of Chula Vista has received a direct allocation in the amount of $8,161,124 from Treasury. With the passage of State Senate Bill 91, the City is also eligible to V 0 0 1 1 2021-02-16 Agenda Packet Page 373 of 395 apply for an additional $8,719,349 from the State of California Department of Business, Consumer Services and Housing Agency (BCSII) for the implementation of a State of California Emergency Rental Assistance Program (SE P). Leveraging the City's direct allocation from Treasury, along with State funds, the available assistance increases to approximately $16.9 million for those low-income households in Chula Vista to avoid further economic hardship, including risk of becoming homeless. This item also seeks to waive competitive bidding requirements pursuant to Chula Vista Municipal Code section 2.56.070(B)(3) and approval of City's standard two-party agreement template to contract with an outside service provider, SECS, formerly known as South Bay Community Services, using State and City E funds. I UE �v �� JIEW The Director of Development Services has reviewed the proposed activities for compliance with the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The proposed activities are not considered "Projects" as defined under Section 15378 of the State CEQA Guidelines because the action consist of a governmental funding mechanism or other government fiscal activity, is not site specific, and will not result in a direct or indirect physical change in the environment. Under National Environmental Policy Act (NEPA), tenant based rental assistance, is categorically excluded from any further review. Therefore, pursuant to Section15060(c)(3) of the State CEQA Guidelines, and NEPA Code of Federal Regulations at 50.19(b) (3), (11), and (12) these activities are not subject to CEQA or NEPA. On January 13, 2021, the Housing Advisory Commission was provided with a brief overview of the E based on preliminary information that was available at that time. DISCUSSION On December 27, 2020, the Consolidated Appropriations Act of 2021 was signed into law authorizing the Treasury to make payments directly to all states and certain eligible local governments to provide emergency rental assistance to eligible households. Local governments with a population that exceeds 200,000, inclusive of the City of Chula Vista, are entitled to a direct allocation. The City has received a direct federal allocation of $8,161,124. Within San Diego County, other local governments receiving direct allocations include the County of San Diego on behalf of the urban county and the 15 smaller cities ($48 million) and the City of San Diego ($46 million). The State of California (State) received a direct allocation of $1.5 billion from the Treasury. With the passage of State Senate Bill (SB) 91 on January 29, 2021, the State provided three (3) options for those cities and counties who received a direct allocation from the Treasury to also receive funding from the State, as discussed in greater detail below. Emgr Zency Rental _Assist�ance P�roram �ERA�P The following provides a summary of the federal E guidelines, applicable to both the City and State: Eligible Households must meet the following criteria: 1. Low-income renters, households earning less than 80 percent of the Area Median Income (AMI), with priority for the following: P ;,,, e 12 2021-02-16 Agenda Packet Page 374 of 395 a. Very Low -Income Households earning less than 50 percent of the AMI; or b. Households whereat least one household member is receiving unemployment insurance and has been unemployed for at least 90 -days. San Diego County Income Limits Tective April 1, 2020 Household Size 1 2 3 4 5 6 Low-income $64,700 $73,950 $83,200 $92,400 $99,800 $107,200 (80'Yo AMI) Very Low -Income (50% AMI) $'f0,450 $46,200 $52,000 $67,000 $71,650 $76,250 Income determination is based on the household's total income in 2020 or the monthly income the household is receiving at the time of application. If the income determination is made based on the applicant's monthly income, a redetermination of eligibility is required after 3 months. 2. Experiencing a COVID-19 financial hardship (one or more individuals in the household c. Qualified for unemployment benefits or can attest in writing that he or she has experienced a reduction in household income; or d. Incurred significant costs, or experienced other financial hardship due, directly or indirectly, to the pandemic. 3. Demonstrated risk of experiencing homelessness or housing instability. Funding Assistance can be made available for the following based on guidance from the Treasury: • Assistance will be limited to rental units, including apartments, mobile homes and single-family homes, within the City of Chula Vista. • Rental arrears from April 2020 to the present. • Future rent payments, up to three months at a time. • A maximum of 12 months of total rental assistance (arrears and future payments). • Assistance to paid directly to the landlord or utility company, benefitting the tenant and the landlord. To receive federal E funding, staff submitted the required application and E certification form to the Treasury on January 7, 2021 (Attachment 1). On January 20, 2021, the City of Chula Vista was notified of its successful application to the Treasury and its award of $8,161,124. State of Cali In accordance with SB 91, there are three (3) SERAP options (A -C) for those cities and counties with populations in excess of 200,000 and therefore, receiving direct federal E allocations. All three options provide additional funding to assist low-income households (see Attachment 1). Options A and B reserve State funding specifically for the jurisdiction, if it agrees to implement additional State priorities and requirements aimed at maximizing the number of beneficiaries statewide under the SE P, known as a State Conforming program. Under Option C, jurisdictions would opt out of the State Conforming Program and operate their own ERAP, utilizing their federal E allocation. However, a State E would still be P ;,,' e 13 2021-02-16 Agenda Packet Page 375 of 395 available to Chula Vista residents. Under Option C, a City F and State F would be operating simultaneously within the community with two differing program requirements. State Conforming Program requirements mirror the federal F requirements above with key differences outlined below: To implement the federal priorities for very low-income households and unemployed persons, the State requires three funding rounds in the following order of priority: Round I Households with income below 50% AMI or with atleast one household member who has been unemployed for at least 90 days Round 2 Below 80% AMI and in a community (census tracts) disproportionately impacted by COVID- 19 Round 3 Households earning less than 80% of the Area Median Income and not address by rounds 1&2 Funding Assistance prioritizes payment of arrears to maintain persons in housing with limited funding available for future rent payment. • Arrears from April 2020 through March 2021 (covered period) to be paid at 80% of unpaid rent with the landlord/property owner forgiving the remaining 20% of rental debt; • Residents may receive 25% of unpaid rent for the covered period if landlords/property owners are unwilling to participate (80% paid/25% forgiven); and, • Future rental assistance is limited to 25% of rent for all qualified renters in order maintain housing consistent with the eviction protection requirements under SB 91. Staff recommends that Council adopt Resolution B, authorizing the City Manager, or designee, to enter into the State's Standard Agreement with BCSH for the implementation of the SERAP - Option B pursuant to SB 91. This allows the City to leverage the additional $8.7 million available through a State SERAP block grant, maximizing the households assisted, while maintaining direct oversight of the program. A more detailed analysis of Options A, B and C is included as Attachment 3. With both the County of San Diego and City of San Diego also participating in Option B, the San Diego region will be implementing a consistent F and provides opportunities for effective coordination amongst the jurisdictions. Commitment and Expenditure Deadlines Beginning on September 30, 2021, the Treasury Secretary shall recapture excess funds, as determined by the Secretary, not obligated for the eligible purposes, with all F funds to be expended by December 31, 2021, unless extended by Congress. In accordance with the F regulations, the City must obligate at least 65 percentof its federal F or $5,304,731 by September 30, 2021. Under the SF P, the obligation deadline is earlier, June 1, 2021, to allow any unspent funds to be reallocated by the State to other California jurisdictions with a high demand for funding before Treasury seeks to recapture the SERAP funds on September 301h. Any unspent funds at program end will be reverted back to the Treasury. The following table summarizes the expenditure deadlines by program. P ;,,, e 14 2021-02-16 Agenda Packet Page 376 of 395 FUNDING TIMELINES PMZEqmAdmwiaration Given the significant allocation received, expenditure deadlines, and limited City staffing, the City will partner with qualified subrecipients to implement the Program. With their own respective Housing Authorities currently administering federal rental assistance programs (e.g. Section 8 rental assistance), the City of San Diego and County of San Diego will be administering their own ERAP. Given the first funding deadline for obligating $5.7 million by June 1, 2021, staff is recommending that the City provide a direct grant to SBCS, as a current City subrecipient administering the City's Rental Assistance Program, of a minimum of $5.7 million for both rent and utility assistance. This will provide assistance to Chula Vista low income renters, as quickly as possible, and represents the most efficient path to meeting the required timelines. The balance of the available F funds are anticipated to be allocated as follows: 1 MS3 1 11 1 1 1 11 Jill 11 1 1 1 1 1 1 111 1 1 01JA1151I11 I1 11 I I 1 2 M1 I 212M L Ef I I ------------------------------------------------------------------- SBCS ERAP 77 5,700,000 Request For Proposals (RFPs) for Qualified Subrecipients (max of entities) 10,927,400 City contract administration, compliance and outreach and marketing 122,284 State contract administration and compliance 130,790 TOTAL 16,880,474 Subrecipient Selection Process Administration of an F requires specialized knowledge of providing case management that leads to successful applications and calculation of payments to landlords for eligible clients. Federal funding, with its complex and various regulations, also requires a level of experience, knowledge, and capacity to ensure compliance. With the quick funding obligation and expenditure deadlines and anticipated sizable awards to each subrecipient, subrecipients must have significant financial and management capacity to deploy the resources while maintaining compliance with Federal and State regulations. SBCS, the proposed administrator for the initial phase of the ERAP, has a regional presence with vast and long-standing experience in case management services, rental assistance programs, including emergency assistance, and compliance with Federal and State governmental regulations. They have direct experience I Obligate 651YO of funds or subject to recapture for reallocation to other jurisdictions I Unspent funds revert to State/US Treasury P , (:, 1 5 2021-02-16 Agenda Packet Page 377 of 395 in managing rental assistance programs in Chula Vista and other south bay communities utilizing federal, State, and local funding. SBCS has managed several housing programs on behalf of the City since 2007. The City's current Subrecipient Agreement for the rental assistance program, allows SBCS to act as the City's administrator through June 30, 2021. Under this agreement, SBCS currently operates aTenant Based Rental Assistance Program targeting victims of domestic violence and families at risk of homelessness using City HOME funding. Staff is recommending that SBCS administer a minimum of $S.7 million in F funds, and up to $8 million. Based on the above, the use of the competitive bidding process set forth in Chula Vista Municipal Code (CVMC) section 2,56,070 is impractical and that the City's best interests would be better served by waiving said bidding requirements and to contract with SBCS, particularly given the strict time lines required by the state and federal governments to encumber and expend said funds and the urgent need for said funds by the citizens of Chula Vista, Staff recommends that Council adopt Resolution C, (1) waiving the competitive bid requirements pursuant to Chula Vista Municipal Code section 2,56,070(1)(3) and (2) authorizing the City Manager to enter into City of Chula Vista Contractor/Service Provider Services Agreement with SBCS, funded by State and City F allocations. An additional $10,927,400 will be made available through an RFP process in order to have multiple agencies implementing the City's F to support the efficient expenditure of program funds. Staff, recommends limiting the number of contracted subrecipients due to the complexities overseeing federal regulations, specifically ensuring that there is no duplication of benefits/beneficiaries between providers. All respondents will need to demonstrate experience in implementing similar programs and experience and capacity to adhere to the Treasury regulations for the ERAP. It is anticipated that the RFP will be released in late February 2021, with a shortened time frame to respond so thatthe F may be implemented as quickly as possible for the benefit of the community, as well as to meet the September 2021 obligation deadline and the December 31, 2021 expenditure deadline. Conclusion With many residents facing layoffs and reduced work hours due to COVID-19, the deployment of emergency rental assistance funds will have a direct impact in assisting affected residents with basic living expenses like housing and utilities, increasing housing stability during a public health crisis. Staff recommends that the City Council accept Option B from the State of California, appropriate the administrative funds in the current fiscal year, and approve the Standard Agreement with the State of California. CON171LIK"T 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.). However, Councilmember McCann may have a conflict of interest given his ownership interest in rental property and property management business. Otherwise, Staff is not independently aware and has not been informed by any other City Council member, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter. P 16 2021-02-16 Agenda Packet Page 378 of 395 171SCAIL IM13ACT There is no fiscal impact to the City's General Fund as project costs and administrative costs are covered by the federal F and SERAP allocations provided under the Consolidated Appropriations Act of 2021. ONGOING 171SCAIL IMI�IACT There is no ongoing fiscal impact related to this allocation as no matching funds are required and the deadline for expenditure of all funds is December 31, 2021. The costs associated with the administration of the F program is covered by the respective allocation. ATTACHMENTS Attachment I: F Grant Conditions Attachment 2: Summary of Options A -C Attachment 3: Analysis of Options A -C Staff Contacts: Leilani Hines, Housing Manger Jose Dorado, Senior Management Analyst Chula Vista Housing Authority P ;,,, (:, 17 2021-02-16 Agenda Packet Page 379 of 395 RESOL[YrION NO, RESOL[YrION OF 'FHE ary COUNCIL OF 'FHE ary OF CHULA vis,FA AUFHORIZING FHE ACCEP'FANCE OF CONSOLJDA,rED APPROPRIA,rIONS Acr OF 2021 AL OC FROM ,FH UNi,rED s,rA,rES DEPAR,rMEN'r OF 'FREASURY FOR AN EMERGiENCY ISI N'FAL ASsis,FANCE PROGiRAM AND APPROPRIA,rING FUNDS ,FH ISI (4/5 Von REQUIRED) WHEREAS, in January 2020, as a result of the COVID-0 virus, the World Health Organization ("WHO") declared a Public Health Emergency of International Concern and the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS, various states of emergency were declared by the United States (March I3, 2020), the State of California (March 4, 2020), the County of San Diego (February I9, 2020), and the City of Chula Vista (March I7, 2020 pursuant to City Council Resolution No. 2020 .-065) because of the threat to public safety (to persons and property including both physical and economic harm) as result of the COVID.- l 9 virus; and WHEREAS, the Centers for Disease Control and Prevention, the California Department of Public Health, and the San Diego County Department of Public Health have all issued recommendations and orders, including, but not limited to, social distancing, staying home if sick, canceling or postponing large group events, working from home, and other precautions to protect public health and prevent transmission of this communicable virus that continues to the present; and WHEREAS, the economic impact and Financial hardship faced by low-income households as a result of CO VID.- 19 has affected their ability to pay for housing and basic needs, placing them at risk of homelessness during this period where it is critical to self -quarantine, self -isolate, or otherwise remain in their homes to reduce the transmission of COVID.- l 9; and WHEREAS, on December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2021 (the "Act"), more commonly known as the HR- 133, which authorizes $25 billion in emergency rental relief, and WHEREAS, on January 5, 2021, the U.S. Department of the 'Treasury (-Freasury") launched the $25 billion Emergency Rental Assistance Program (E P) established by the Consolidated Appropriations Act, 2021; and WHEREAS, the ERAP assists low-income households that are unable to pay rent and utilities due to the COVID.- l 9 pandemic; and 2021-02-16 Agenda Packet Page 380 of 395 WHEREAS, the City of Chula Vista submitted an application to 'Treasury and the application was successful, resulting in a direct allocation from 'Treasury in the amount of 8,161,123.90. NOW,,FHEISI FOR E, BE i,r RESOLVED by the City Council of the City of Chula Vista that it (l) authorizes the acceptance of the Consolidated Appropriations Act, 2021 funding for an Emergency Rental Assistance Program from the U.S. Department of'Freasury; (2) acknowledges and ratifies the submission of the terms and use of funds by the City Manager; and (3) authorizes the appropriation of such funds in the City's Housing Authority Fund in Fiscal year 2020/2021 with expenditures made in accordance with the U.S. Treasury Department's funding requirements (presented as Attachment l to the staff report for this item), subject to modifications that may be necessary or appropriate to assure expenditure of all available funds in a qualified and timely 'Tiffany Allen Director of Development Services Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 381 of 395 RESOL[YrION NO, RESOL[YrION OF THE ary COUNCIL OF FHE ary OF CHULA vis,FA A[YrHORIZINGi,rHE ary'ro PURSUE AND ACCEPT A BLOCK GRAN'r FROM s,rA,rE OF CALIFORNIA DEPAR'TMEN'T OF BUSINESS, CONSUMER SERVICES AND HOUSING AGiENCY (BCSH) FOR AN EMERGENCY ISI N,FAL ASsis,FANCE PROGRAM, AuFHORIZING FHE ary MANAGER OR DESIGNEE rO EX Curr A s,FANDARD AGREEMEN'r wi,rH BCSH FO ,FH IMPLEMEN,rA,rION OF A s,rA,rE EMERGiENCY ISI N,FAL ASSis,FANCE PROGRAM PURSUAN'r 'ro SENA,rE BILL 9I, AND APPROPRIXI-ING, FUNDS,FHEREFOR WHEREAS, in January 2020, as a result of the COVID-0 virus, the World Health Organization ("WHO") declared a Public Health Emergency of International Concern and the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS, various states of emergency were declared by the United States (March I3, 2020), the State of California (March 4, 2020), the County of San Diego (February I9, 2020), and the City of Chula Vista (March I7, 2020 pursuant to City Council Resolution No. 2020-065) because of the threat to public safety (to persons and property including both physical and economic harm) as result of the COVID.- I9 virus; and WHEREAS, the Centers for Disease Control and Prevention, the California Department of Public Health, and the San Diego County Department of Public Health have all issued recommendations and orders, including, but not limited to, social distancing, staying home if sick, canceling or postponing large group events, working from home, and other precautions to protect public health and prevent transmission of this communicable virus that continues to the present; and WHEREAS, the economic impact and Financial hardship faced by low-income households as a result of CO VID.- 19 has affected their ability to pay for housing and basic needs, placing them at risk of homelessness during this period where it is critical to self -quarantine, self -isolate, or otherwise remain in their homes to reduce the transmission of COVID.- l 9; and WHEREAS, on December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2021 (the "Act"), more commonly known as the HR --I33, which authorizes $25 billion in emergency rental relief, and WHEREAS, On January 5, 202I, the U.S. Department of the 'Treasury (-Freasury") launched the $25 billion Emergency Rental Assistance Program (E P) established by the Consolidated Appropriations Act, 2021; and WHEREAS, the ERAP assists low-income households that are unable to pay rent and utilities due to the COVID.- l 9 pandemic; and 2021-02-16 Agenda Packet Page 382 of 395 WHEREAS, the Act provided $2.6 billion to the State of California and those local municipalities with populations greater than 200,000 with the formula allocation based on the number of Chula Vista residents; and WHEREAS, the City of Chula Vista received a direct allocation from 'Treasury Department in the amount of $8, l 6 I, I24 and authorized the City Manager to complete all documents required to obtain the Emergency Rental Assistance Program Allocation; and authorized the appropriations in Fiscal year 20/2I; and WHEREAS, on January 29, 202the State of California passed Senate Bill 9 l (SB -91 j that established the State's Emergency Rental Assistance Program (SEMI AP) to allow Cities and Counties with populations over 200,000 to opt into one of three program models using the State's allocation of ERAP funds from the 'Treasury; and WHEREAS, by accepting SERAP as a block grant (Option B) in the amount of $8,719,349,60, the City shall take on the responsibilities set forth in SB -9 I, including I lealth and Saf'ety (.,ode 50897,1 (b)(1-3), and as fining its (firect aflocation Mth the State of Cafifbrnia.'s program requ�rements known a"Confirm�ng Ienta] Ass�stance Progra.m;" and NOW,,FHEISI FOR E, BE i,r RESOLVED by the City Council of the City of Chula Vista that it ( l ) authorizes the acceptance of the Consolidated Appropriations Act, 2021 funding for an Emergency Rental Assistance Program from the State of California Department of Business, Consumer Services and Housing Agency using its direct allocation from the U.S. Department of 'Treasury; (2) authorizes the City Manager or designee to execute in the name of the City of Chula Vista the application, the Standard Agreement, and all other documents required by BCSH for participation in the SERAP, and amendments thereto; and (3) acknowledges and ratifies the submission of the ten -ns and use of funds by the City Manager; and (4) authorizes the appropriation of such funds in the City's Housing Authority Fund in fiscal year 2020/2021 with expenditures made in accordance with the State of California's funding requirements and U.S. 'Treasury Department's funding requirements, using the most restrictive (presented as Attachment l to the staff report for this item), subject to modifications that may be necessary or appropriate to assure expenditure of all available funds in a qualified and timely manner, 'Tiffany Allen Director of Development Services Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 383 of 395 RESOLUI-ION NO, ISE SOLUI-ION OF FHE ary COUNCIL OF 'FHE ary OF CSI ULA vis,FA WAIVING COMPE'ri,rIVE BIDDING ISI QUMEMEN,rs PURSUAN'r 'ro CHULA vis,FA MUNICIPAL CODE SEC,rION 156.070(13)(3) AND APPROVING A CON,rRAC,rORSSE R VICE PROVIDER AGREEMEN'r wi,rH soum BAY COMMUNi,rY SERVICES (SBCS) 'ro PROVIDE AN EMERGENCY ISE N'FAL AND uriErrY ASsis,FANCE PROGRAM FUNDED BY s,rA,rE AND FEDERAL CONSOLIDA,rED APPROPRIXI-IONS AC,r OF 2021 AL OC WHEREAS, in January 2020, as a result of the COVID-0 virus, the World Health Organization ("WHO") declared a Public Health Emergency of International Concern and the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS, various states of emergency were declared by the United States (March 13, 2020), the State of California (March 4, 2020), the County of San Diego (February 19, 2020),and the City of Chula Vista (March 17, 2020 pursuant to City Council Resolution No. 2020 .-065) because of the threat to public safety (to persons and property including both physical and economic han-n) as result of the COVID.- 1 9 virus; and WHEREAS, the Centers for Disease Control and Prevention, the Cali fornia Department of Public Health, and the San Diego County Department of Public Health have all issued recommendations and orders, including, but not limited to, social distancing, staying home if sick, canceling or postponing large group events, working from home, and other precautions to protect public health and prevent transmission of this communicable virus that continues to the present; and WHEREAS, the economic impact and Financial hardship faced by low-income households as a result of COVID.- 19 has affected their ability to pay for housing and basic needs, placing them at risk of homelessness during this period where it is critical to self -quarantine, self -isolate, or otherwise remain in their homes to reduce the transmission of COVID.- 1 9; and WHEREAS, on December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2021 (the "Act"), more commonly known as the HR --133, which authorizes $2511 in emergency rental relief-, and WHEREAS, on January 5, 2021, the U.S. Department of the 'treasury launched the $25 billion Emergency Rental Assistance Program (ERAP) established by the Consolidated Appropriations Act, 2021; and WHEREAS, the ERAP assists low-income households that are unable to pay rent and utilities due to the COVID.- 1 9 pandemic; and 2021-02-16 Agenda Packet Page 384 of 395 WHEREAS, the Act provided $2.6 billion to the State of California and those local municipalities with populations greater than 200,000 based on a population; and WHEREAS, the City of Chula Vista received a direct allocation from the u.s. 'Freasury Department in the arnount of $8,161,124 and authorized the City Manager to complete all documents required to obtain the Emergency Rental Assistance Program Allocation; and authorized the appropriations in fiscal year 20/21; and WHEREAS, on January 29, 202the State of California passed Senate Bill 9 1 (SB -9 I) that set the State's Emergency Rental Assistance Program (SE AP) to allow Cities and County's with populations over 200,000 to opt into one of three programs models; and WHEREAS, by accepting SE AP as a block grant (Option B) in the amount of $8,719,349.60, the City shall take on the responsibilities included in SB -91 and Health and Safety ( I "ode 50897, 1 (b)(1-3); and WHEREAS, the City will contract with a Subrecipient to assist with the expenditure of a portion of the U.S. 'Freasury Department Emergency Rental Assistance Funding and State of California Emergency Rental Assistance Program funds will be allocated to assist low-income residents affected by CO VIII. -19, as follows: Agency Program Funding Initial Not to Source Allocation Exceed South Bay Community Emergency Rental State SERAP $5,700,000 $8,000,000 Services Assistance Program US Treasury FRAP WHEREAS, in order for an outside agency to receive and operate a grant funded activity, they must formally enter into a Subrecipient agreement with the City of Chula Vista in order to formalize and specify the requirements and conditions under which the U.S. 'Freasury Direct Allocation and State Block Grant Allocation funds are being provided to the outside agency; and WHEREAS, staff intends to utilize City's standard ternplate, the City of Chula Vista Contractor/Service Provider Services Agreement, to contract with the outside service providers, South Bay Community Services (SBCS); and WHEREAS, City Council Finds: (I) that the use of the competitive bidding process set forth in Chula Vista Municipal Code (CVMC) section 2,56,070 is impractical and that the City's best interests would be better served by waiving said bidding requirements, particularly given the strict tirne lines required by the state and federal governments to encurnber and expend said funds and the urgent need for said funds by the citizens of Chula Vista (2) and that SBCS is uniquely qualified to meet the state and federal grant obligations, including, but not limited to, that SBCS has a long history of partnering with the City to administer rental assistance programs and complying with attendant state and federal regulations, 2021-02-16 Agenda Packet Page 385 of 395 NOW,,FHEREFORE, BE i,r RESOLVED by the City Council of the City of Chula Vista that it, based upon the above Findings, that it hereby waives the competitive bid requirements set forth in Chula Vista Municipal Code section 2,56,070 and SBCS is awarded the contract on a "sole source" basis under the authority of Chula Vista Municipal Code section 2,56,070(1)(3) and (2) that it authorizes the City Manager to enter into a City of Chula Vista Contractor/Service Provider Services Agreement between City and South Bay Community Services (SBCS) in accordance with the general ten -ns and conditions as outlined in the agenda statement and attendant State and Federal Requirements, in a not to exceed aggregate amount of $8,000,000, on a forte approved by the City Attorney, a copy of which shall be kept on Cite in the Office of the City Clerk, 'Tiffany Allen Director of Development Services Approved as to form by Glen R. Googins City Attorney 2021-02-16 Agenda Packet Page 386 of 395 Expiration Date: 7/31/21 Recipient name and address: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910-2631 U.S. DEPARTMENT OF THE TREASURY EMERGENCY RENTAL ASSISTANCE DUNS Number: 07-872-6551 Taxpayer Identification Number: 95-6000690 Section 501(a) of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020) authorizes the Department of the Treasury ("Treasury") to make payments to certain recipients to be used to provide emergency rental assistance. Recipient hereby agrees, as a condition to receiving such payment from Treasury, to the terms attached hereto. Authorized Representative Name: Maria Kachadoorian Title: City Manager Date signed: 01/06/2021 2021-02-16 Agenda Packet Page 387 of 395 U.S. DEPARTMENT OF THE TREASURY EMERGENCY RENTAL ASSISTANCE 1. Use of Funds.. Recipient understands and agrees that the funds disbursed under this award may only be used for the purposes set forth in Section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub, L. No. 116-260 (Dec. 27, 2020) (referred to herein as "Section 501") 2. Repayment and reallocation of funds. a. Recipient agrees to repay excess funds to Treasury in the amount as may be determined by Treasury pursuant to Section 501(d). Such repayment shall be made in the manner and by the date, which shall be no sooner than September 30, 2021, as may be set by Treasury. b. The reallocation of funds provided by Section 501(d) shall be determined by Treasury and shall be subject to the availability of funds at such time. 3. Availability of funds. a. Recipient acknowledges that, pursuant to Section 501(e), funds provided under this award shall remain available only through December 31, 2021, unless, in the case of a reallocation made by Treasury pursuant to section 501(d), Recipient requests and receives from Treasury an extension of up to 90 days. b. Any such requests for extension shall be provided in the form and shall include such information as Treasury may require. c. Amounts not expended by Recipient in accordance with Section 501 shall be repaid to Treasury in the manner specified by Treasury. 4. Administrative costs. a. Administrative expenses of Recipient may be treated as direct costs, but Recipient may not cover indirect costs using the funds provided in this award, and Recipient may not apply its negotiated indirect cost rate to this award. b. The sum of the amount of the award expended on housing stability services described in Section 501(c)(3) and the amount of the award expended on administrative expenses described in Section 5 01 (c)(5) may not exceed 10 percent of the total award. 5. Reporting. a. Recipient agrees to comply with any reporting obligations established by Treasury, including the Treasury Office of Inspector General, as relates to this award, including but not limited to: (i) reporting of information to be used by Treasury to comply with its public reporting obligations under section 501(g) and (ii) any reporting to Treasury and the :Pandemic Response Accountability Committee that may be required pursuant to section 15011(b)(2) of Division B of the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136), as amended by Section 801 of Division 0 of the Consolidated Appropriations Act, 2021 (Pub. L. No. 116-260). Recipient acknowledges that any such information required to be reported pursuant to this section may be publicly disclosed. b. Recipient agrees to establish data privacy and security requirements as required by Section 501(g)(4). 6. Maintenance of and Access to Records W 2021-02-16 Agenda Packet Page 388 of 395 a. Recipient shall maintain records and financial documents sufficient to support compliance with Section 501(c) regarding the eligible uses of funds. b. The Treasury Office of Inspector General and the Government Accountability Office, or their authorized representatives, shall have the right of access to records (electronic and otherwise) of Recipient in order to conduct audits or other investigations. c. Records shall be maintained by Recipient for a period of five (5) years after all funds have been expended or returned to Treasury. 7. Cost Sharing. Cost sharing or matching funds are not required to be provided by Recipient. 8. Compliance with Applicable Law and Regulations. a. Recipient agrees to comply with the requirements of Section 501 and Treasury interpretive guidance regarding such requirements. Recipient also agrees to comply with all other applicable federal statutes, regulations, and executive orders, and Recipient shall provide for such compliance in any agreements it enters into with other parties relating to this award. b. Federal regulations applicable to this award include, without limitation, the following: i. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200, other than such provisions as Treasury may determine are inapplicable to this Award and subject to such exceptions as may be otherwise provided by Treasury. Subpart F — Audit Requirements of the Uniform Guidance, implementing the Single Audit Act, shall apply to this award. ii. Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25 and pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 25 is hereby incorporated by reference. iii. Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 170 is hereby incorporated by reference. iv, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180 (including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury's implementing regulation at 31 C.F.R. Part 19. v. Recipient Integrity and Performance Matters, pursuant to which the award term set forth in 2 C.F.R. Part 200, Appendix XII to Part 200 is hereby incorporated by reference. vi. Governmentwide Requirements for Drug -Free Workplace, 31 C.F.R. Part 20. vii. New Restrictions on Lobbying, 31 C.F.R. Part 21. Statutes and regulations prohibiting discrimination applicable to this award, include, without limitation, the following: i. Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and Treasury's implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the grounds of race, color, or national origin under programs or activities receiving federal financial assistance; 2021-02-16 Agenda Packet Page 389 of 395 ii. The Fair Housing Act, Title VIII -IX of the Civil Rights Act of 1.968 (42 U.S.C. § 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, national origin, sex, familial status, or disability; iii. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of handicap under any program or activity receiving or benefitting from federal assistance; iv. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.) and Treasury's implementing regulations at 31 C.F.R. Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and v. The Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto. 9. False Statements. Recipient understands that false statements or claims made in connection with this award may result in fines, imprisonment, debarment from participating in federal awards or contracts, and/or any other remedy available by law. 10. Publications. Any publications produced with funds from this award must display the following language: "This project [is being] [was] supported, in whole or in part, by federal award number [enter project FAIN] awarded to [name of Recipient] by the U.S. Department of the Treasury." 11. Debts Owed the Federal Government. a. Any funds paid to Recipient (1) in excess of the amount to which Recipient is finally determined to be authorized to retain under the terms of this award; (2) that are determined by the Treasury Office of Inspector General to have been misused; or (3) that are not repaid by Recipient as may be required by Treasury pursuant to Section 501(d) shall constitute a debt to the federal government. b. Any debts determined to be owed the federal govenurient must be paid promptly by Recipient. A debt is delinquent if it has not been paid by the date specified in Treasury's initial written demand for payment, unless other satisfactory arrangements have been made. Interest, penalties, and administrative charges shall be charged on delinquent debts in accordance with 31 U.S.C. § 3717 and 31 C.F.R. § 901.9. Treasury will refer any debt that is more than 180 days delinquent to Treasury's Bureau of the Fiscal Service for debt collection services. c. Penalties on any debts shall accrue at a rate of not more than 6 percent per year or such other higher rate as authorized by law. Administrative charges, that is, the costs of processing and handling a delinquent debt, shall be determined by Treasury. d. Funds for payment of a debt must not come from other federally sponsored programs. 12. Disclaimer. a. The United States expressly disclaims any and all responsibility or liability to Recipient or third persons for the actions of Recipient or third persons resulting in death, bodily injury, property damages, or any other losses resulting in any way from the performance of this award or any other losses resulting in any way from the performance of this award or any contract, or subcontract under this award. b. The acceptance of this award by Recipient does not in any way constitute an agency relationship between the United States and Recipient. 4 2021-02-16 Agenda Packet Page 390 of 395 13. Protections for Whistleblowers. a. In accordance with 41 U.S.C. § 4712, Recipient may not discharge, demote, or otherwise discriminate against an employee as a reprisal for disclosing information to any of the list of persons or entities provided below that the employee reasonably believes is evidence of gross mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation of a contract) or grant. b. The list of persons and entities referenced in the paragraph above includes the following: i. A member of Congress or a representative of a committee of Congress; ii. An Inspector General; iii. The Government Accountability Office; iv. A Treasury employee responsible for contract or grant oversight or management; v. An authorized official of the Department of Justice or other law enforcement agency; vi. A court or grand jury; and/or vii. A management official or other employee of Recipient, contractor, or subcontractor who has the responsibility to investigate, discover, or address misconduct. c. Recipient shall inform its employees in writing of the rights and remedies provided under this section, in the predominant native language of the workforce. 14. Increasing Seat Belt Use in the United States. Pursuant to Executive Order 13043, 62 FR 19217 (April 8, 1997), Recipient should and should encourage its contractors to adopt and enforce on-the-job seat belt policies and programs for their employees when operating company-owned, rented or personally owned vehicles. 15. Reducing Text Messaging While Driving. Pursuant to Executive Order 13513, Recipient should encourage its employees, subrecipients, and contractors to adopt and enforce policies that ban text messaging while driving, and Recipient should establish workplace safety policies to decrease accidents caused by distracted drivers. 2021-02-16 Agenda Packet Page 391 of 395 STATE OF: CALIFORNIA _- B S ESS CONSUMER SERVICES AND HOUSING AGENCY GAVIN WSO A -racir U HN _NE N_CimLe IDEPAIRIMEIN'TOIF HOUSING AND COMMUINI'TY IDEVEILOPMEIN'T ADMIINIISTRATIION AND MANAGEMENT DIIVIISIION 2020 W. El Camino Avenue, Suite 330, 95833 P. 0. Box 952050, Sacramento, CA 94252-2050 (916) 263-6928 / FAX (916) 263-6917 wWW.hcd C-0 (L)v The following document will serve as the basis for the Department of Housing and Community Development's (Department) evaluation of a conforming local rental assistance program pursuant to Health and Safety Code Section 50897.2(a)(5). All other applicable requirements provided in SB 91. and the federal Assstainc.r.-., Prol. 11-1 (ERAP) continue to apply to grantees that receive state rental assistance resources. A conforming local rental assistance program must align prioritization of resources as provided in Health and Safety Code Section 50897.1 (b), principally prioritizing households at or below 50% AMl and up to 80% AMl, or unemployed for 90 or more days; but in doing so, may provide equal or stronger prioritization to include the following: • Prioritization by deeper income targeting (i.e. 30% AMl and below) • Prioritization by rent -burden • Prioritization by qualified census tracts • Prioritization by property size (i.e. small landlords) • Other related factors that the Department deems to be consistent with prioritizing populations with demonstrated need Eligible uses For the purpose of stabilizing households and preventing evictions, a conforming local rental assistance program must prioritize rental arrears pursuant to Health and Safety Code Section 50897.1 (c)(2). Compensation A conforming local rental assistance program must follow the exact compensation parameters as described in the bullets below for rental arrears as provided in SB 91, both for landlord participating and non -participating processes, respectively. For assistance provided through the participating landlord process, as defined in Health and Safety Code Section 50897.1(d), compensation shall be exactly 80% of an eligible household's unpaid rental debt from April 1, 2020 to March 31, 2021. "The remaining unpaid rental debt must be forgiven in accordance with that subdivision. For assistance provided through the non -participatory landlord process pursuant to Health and Safety Code Section 50897.1(e), compensation shall be exactly 25% of an eligible household's unpaid rental debt from April 1, 2020 to March 31, 2021, 2021-02-16 Agenda Packet Page 392 of 395 Conforming Local Rental Assistance Program REV 2.3.21 A conforming local rental assistance program may provide compensation for prospective rent. Prospective rent payments shall be exactly 25% of an eligible household's monthly rent pursuant to Health and Safety Code Section 50897.1(f) and in accordance with the federal ERAP program. Documentation A conforming local rental assistance program may not institute additional programmatic requirements that may inhibit participation in the program, as provided in Health and Safety Code Section 50897.2 (a)(6). This prohibition shall include the following: • Documentation requirements that intentionally or unintentionally result in discrimination against protected classes, including documentation formats that are inaccessible to persons with a disability • Requirements that de facto require legal resident status • Documentation standards that disadvantage vulnerable populations, such as requiring driver's licenses, formal leases, or documentation of citizenship • Application or documentation requirements that collect unnecessary information, such as personally identifying information from the tenant household in excess of the minimum information required to validate the application and prevent fraud • Participation requirements that demand households open bank accounts with a specific financial institution to be eligible for receipt of funds • Other related documentation requirements that the Department deems could inhibit landlord or household participation in the program 2021-02-16 Agenda Packet Page 393 of 395 I .......................................................................................................................................................................................................................................... ii 0 C� 0 C� ca L.L o Ln rq 41 >- 41 CC NO .1 a- 0 ro 41 c CL 0 Lr) >- 4, V) rq ca F� 41 L.L > E 0) 4' cu CL 0u = M E 0 0 0 0 V) 0 0 c V) CL CL rq CL 41 u > U 41 0as "' V) " uo E ro pl� 2� V) >1 0 0 0 0 E 0 0 V) -ai2 u V) QJ E CL to V) u V� LJ 41 C c C:) rj 4, u 0 4- C 0 CL +o'0 41 co m Ln U a- 3) " 41 < 0) V) V) ro E r14 CL V) 0 -- 0) V CL 4' c 0 u _0 0 0) CL :L- — 41 0 41 " m 41 m 00 a- 41 V) V -s a Cdio 0 I Z� 0 C� 0) ca L.L o Ln rq 41 >- u CC 41 a- 0 0 c CL 0 -0 CL ca F� 41 L.L > E 0) 7a 0u = M E 0 0 V) 0 0 V) 0) k Q1 1C CL rq CL 41 u 41 E U 41 0as "' V) " 41 41 41 o 2� V) >1 0 0 � >- 0 u 0 0 0 0 V) Z� 0 C� 0) L.L o Ln rq 41 >- u CC 41 a- 0 0 c CL 0 CO CL F� 41 > E 0) m cyj0 41 V)• 0u = M E 0 0 V) 0 0 V) 0) k Q1 1C rq CL 41 u m 4, U V) " 0) 41 o 2� V) >- CL 0 V) -ai2 QJ E CL to V) u Fo 0 0- L t� 0 41 0 Co 11 41 41 co m 00 a- V- V') o 0 QD CD 00, A` La.l o �J X. al Lal QD La..l 71 Lal ra ON z 0 u E (ju (JUam (JU 0 qu (JU (JU 'C 11-1 W 0 (D (JU Wl 1 1 a C:� j 73 P a 101-1 L (D (JU s.- qu 0 0 (JU ap A2 > 7=:: am art (JU ap ap R$ z "73 0 auu (JU (JU 73 : ap In .. .... .... .. 0 qu 73 J �> aPD Ni o E. 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