HomeMy WebLinkAboutReso 2021-183RESOLUTION NO. 2021-183
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN ACQUISITION/FINANCING
AGREEMENT RELATING TO CALIFORNIA MUNICIPAL
FINANCE AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 2021-11 (CITY OF CHULA VISTA – OTAY
RANCH VILLAGE 8 WEST) AND AUTHORIZING RELATED
ACTIONS
WHEREAS, the City of Chula Vista (the “City”) is a municipal corporation and charter
city duly organized and existing under and pursuant to the Constitution and the laws of the State
of California (the “State”) and has previously authorized the use of the California Municipal
Finance Authority’s (CMFA) Bond Opportunities for Land Development Program (the “BOLD
Program”) to allow the owners of property to be developed within the City to participate in the
BOLD Program subject to the approval of the City Council of the City (the “City Council”); and
WHEREAS, at the request of HomeFed Village 8, LLC (HomeFed), the master developer
of the Otay Ranch Village 8 West development project (the “Project”), the City Council has
authorized the formation of the California Municipal Finance Authority Community Facilities
District No. 2021-11 (City of Chula Vista – Otay Ranch Village 8 West) (the “Village 8 West
CFD”) through the BOLD Program and the terms and provisions of the Mello-Roos Community
Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, the Village 8 West CFD is authorized to finance City capital facilities and
related costs (the “City Infrastructure”) in satisfaction of certain City development impact fees (the
“City Fees”) authorized to be financed under the Act and certain City capital facilities to be
constructed by or on behalf of HomeFed (the “Acquisition Improvements” and with the City
Infrastructure and the City Fees, the “Facilities”); and
WHEREAS, Chula Vista Municipal Code (“CVMC”) Section 2.56.160(H) (Developer-
Performed Public Works) regulates the procurement of developer-performed public works within
the City; and
WHEREAS, HomeFed has previously awarded contracts for certain of the Acquisition
Improvements in accordance with CVMC Section 2.56.160(H) and has entered into change orders
for such Acquisition Improvements prior to September 28, 2021 that have been approved by the
City’s field inspector, but not approved by the City Council in accordance with CVMC Section
2.56.160(H)(3)(b) (the “Post-Award Change Orders”) and HomeFed requests a waiver for the
Post-Award Change Orders; and
WHEREAS, CVMC Section 2.56.160(H)(6) provides that post-award waiver requests
shall be considered by and subject to approval of the City Council where “the waiver is in the best
interest of the public after consideration of factors including, without limitation, project costs, time
for completion, and other relevant criteria, and (ii) appropriate safeguards are in place to protect
the public interest;” and
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WHEREAS, the Post-Award Change Orders resulted in time and cost efficiencies and have
been approved by the City’s field inspector, which provides a safeguard to protect the public
interest; and
WHEREAS, CVMC Section 2.56.160(H)(5) provides the City may enter into an agreement
with a developer to clarify, establish, or modify the procedures to be undertaken by developer and
the City in connection with CVMC Section 2.56.160(H) and City Council’s approval of an
agreement that clarifies and establishes such procedures constitutes the City C ouncil’s
determination and finding that such procedures satisfy all applicable requirements of CVMC
Section 2.56.160(H); and
WHEREAS, there has been presented to the City Council, the form of an
Acquisition/Financing Agreement by and among the City, CMFA and HomeFed (the “Acquisition
Agreement”) to establish the terms and conditions pursuant to which the City Fees may be
reimbursed or prepaid and the Acquisition Improvements may, upon the completion of the
construction thereof, be acquired by the City through financing provided by the Village 8 West
CFD at prices determined pursuant to and in accordance with such agreement; and
WHEREAS, the Acquisition Agreement clarifies and modifies the requirements of CVMC
Section 2.56.160(H) relating to change orders for the Acquisition Improvements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that:
SECTION 1. Each of the above recitals are true and correct and are hereby incorporated
into this Resolution as though fully set forth herein. After consideration of the factors in CVMC
Section 2.56.160(H)(6) and the recitals above, the City Council finds that the waiver for the Post-
Award Change Orders is in the best interest of the public and appropriate safeguards are in place
to protect the public interest.
SECTION 2. The form of Acquisition Agreement as presented to the City Council and on
file with the City Clerk is hereby approved. The City Manager and such other official or officials
of the City as may be designated in writing by this City Council (each, an “Authorized Officer”
and together, the “Authorized Officers”) are each authorized to execute the Acquisition Agreement
for and on behalf of the City with such changes thereto as such Authorized Officer, following
consultation with the City Attorney, and Best Best & Krieger LLP should the City Attorney so
request Best Best & Krieger LLP’s assistance, deem to be in the best interests of the City.
SECTION 3. The Authorized Officers and other officers, employees and agents of the
City, are hereby authorized and directed, jointly and severally, to do any and all things which they
may deem necessary or advisable in order to consummate the transactions herein authorized and
otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. All
actions heretofore taken by the Authorized Officers and other officers, employees and agents of
the City with respect to CMFA, the BOLD Program and the Village 8 West CFD and the matters
described herein are hereby approved, confirmed and ratified.
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SECTION 4. This Resolution shall take effect immediately upon its adoption.
Presented by Approved as to form by
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 28th day of September 2021 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2021-183 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 28th day of September 2021.
Executed this 28th day of September 2021.
Kerry K. Bigelow, MMC, City Clerk
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