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HomeMy WebLinkAbout2021/11/09 Post-Meeting Agenda Package REGULAR MEETING OF THE CITY COUNCIL **POST AGENDA** Date:November 9, 2021, 5:00 p.m. Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA View the Meeting Live in English & Spanish: chulavistaca.gov/councilmeetings AT&T U-verse ch. 99 (San Diego County) Cox ch. 24 (Chula Vista in English only) Welcome to your City Council Meeting The City Council has transitioned back to holding live, in-person meetings. PUBLIC COMMENTS: Public comments may be submitted to the City Council in the following ways: In-Person comments during the meeting. Join us for the City Council meeting at the time and location specified on this agenda to make your comments. • How To Submit eComments: Visit www.chulavistaca.gov/councilmeetings, locate this meeting and click on the comment bubble icon. Click on the item you wish to comment on, then click on "Leave Comment." eComments can be submitted when the agenda is published and until the conclusion of public comments for the agenda item. eComments may be viewed by the City Council and members of the public as they are submitted. If you have difficulty submitting eComments email your comments to: cityclerk@chulavistaca.gov • HOW TO WATCH: Live stream is available at www.chulavistaca.gov/councilmeetings. To switch the video to Spanish, please click on "ES" in the bottom right hand corner. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels above in English only) and are available on the City's website in English and Spanish. ACCESSIBILITY: Individuals with disabilities or special needs are invited to request modifications or accommodations to access and/or participate in a City meeting by contacting the City Clerk’s Office at cityclerk@chulavistaca.gov or (619) 691-5041 (California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. SPEAKER TIME LIMITS: The time allotted for speakers may be adjusted by the Mayor. - Five minutes* for specific items listed on the agenda - Three minutes* for items NOT on the agenda (called to speak during Public Comments) - A group of individuals may select a spokesperson to speak on their behalf on an agenda item, waiving their option to speak individually on the same item. Generally, five minutes are allotted per person, up to a limit of 30 minutes, although the limits may be adjusted. Members of the group must be present. *Individuals who use a translator will be allotted twice the amount of time. GETTING TO KNOW YOUR AGENDA Agenda Sections: CONSENT CALENDAR items are routine items that are not expected to prompt discussion. All items are considered for approval at the same time with one vote. Councilmembers and staff may request items be removed and members of the public may submit a speaker slip if they wish to comment on an item. Items removed from the Consent Calendar are discussed after the vote on the remaining Consent Calendar items. PUBLIC COMMENT provides the public with an opportunity to address the Council on any matter not listed on the agenda that is within the jurisdiction of the Council. In compliance with the Brown Act, the Council cannot take action on matters not listed on the agenda. PUBLIC HEARINGS are held on matters specifically required by law. The Mayor opens the public hearing and asks for presentations from staff and from the proponent or applicant involved (if applicable) in the matter under discussion. Following questions from the Councilmembers, the Mayor opens the public hearing and asks for public comments. The hearing is closed, and the City Council may discuss and take action. ACTION ITEMS are items that are expected to cause discussion and/or action by the Council but do not legally require a Public Hearing. Staff may make a presentation and Councilmembers may ask questions of staff and the involved parties before the Mayor invites the public to provide input. CLOSED SESSION may only be attended by members of the Council, support staff, and/or legal counsel. The most common purpose of a Closed Session is to avoid revealing confidential information that may prejudice the legal or negotiating position of the City or compromise the privacy interests of employees. Closed sessions may be held only as specifically authorized by law. Council Actions: RESOLUTIONS are formal expressions of opinion or intention of the Council and are usually effective immediately. ORDINANCES are laws adopted by the Council. Ordinances usually amend, repeal or supplement the Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances require two hearings: an introductory hearing, generally followed by a second hearing at the next regular meeting. Most ordinances go into effect 30 days after the final approval. PROCLAMATIONS are issued by the City to honor significant achievements by community members, highlight an event, promote awareness of community issues, and recognize City employees. 2021/11/09 City Council Post Agenda Page 2 of 470 Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE 4.CONSENT CALENDAR (Items 4.1 through 4.8) All items listed under the Consent Calendar are considered and acted upon by one motion. Anyone may request an item be removed for separate consideration. RECOMMENDED ACTION: Council approve the recommended action on the below consent calendar items. 4.1.Waive Reading of Text of Resolutions and Ordinances RECOMMENDED ACTION: Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting. 4.2.Consideration of Requests for Excused Absences RECOMMENDED ACTION: Consider requests for excused absences as appropriate. 4.3.Contract Approval: Agreement between the City and the County of San Diego regarding the Sale of Automotive Fuel by the County to the City 10 Report Number: 21-0165 Location: No specific geographic location Department: Public Works Environmental Notice: 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. RECOMMENDED ACTION: Adopt a resolution approving the agreement between the City and County of San Diego regarding the sale of automotive fuel by the County to the City through December 31, 2026. 4.4.Grant Acceptance and Appropriation: Accept Funding From U.S. Department of Homeland Security for Operation Stonegarden 17 Report Number: 21-0176 Location: No specific geographic location Department: Police Environmental Notice: 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. 2021/11/09 City Council Post Agenda Page 3 of 470 RECOMMENDED ACTION: Adopt a resolution accepting $70,001 from the U.S. Department of Homeland Security and appropriating the funds to the Police Grants Section of the Federal Grant Fund for Operation Stonegarden (4/5 Vote Required). 4.5.Grant Acceptance and Appropriation: Accept Grant From U.S. Department of Justice for Bulletproof Vest Partnership 20 Report Number: 21-0200 Location: No specific geographic location Department: Police Environmental Notice: 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. RECOMMENDED ACTION: Adopt a resolution accepting $13,459 in grant funds and appropriating the funds to the Police Grants Section of the Federal Grants Fund for the Bulletproof Vest Partnership Program (4/5 Vote Required). 4.6.Amendments to City’s Nationwide 401(a) Money Purchase Plan: Approval of Amendments to the Plan to Conform to the Employment Contracts for the City Manager and City Clerk 23 Report Number: 21-0225 Location: No specific geographic location Department: Finance Environmental Notice: 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. RECOMMENDED ACTION: Adopt a resolution to approve amendments to City’s Nationwide 401(a) Money Purchase Plan (“Plan”) to conform its terms to the employment contracts for the City Manager and City Clerk. 2021/11/09 City Council Post Agenda Page 4 of 470 *4.7.Measure A: Amend Measure A Public Safety Expenditure Plan to Add 10 Positions 99 Report Number: 21-0202 Location: No specific geographic location Department: Finance, Fire, Human Resources, Police Environmental Notice: 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. RECOMMENDED ACTION: Adopt resolutions: A) amending the Compensation Schedule and Classification Plan to reflect the addition of Property & Evidence Supervisor; B) approving the revised Fiscal Year 2021-2022 Compensation Schedule effective January 14, 2022, as required by California Code of Regulations, Title 2, Section 570.5; C) approving the amended Measure A Public Safety Expenditure Plan to add one Police Captain, one Equipment Mechanic, one Forensics Specialist, three Property & Evidence Specialists, one Property & Evidence Supervisor and three Senior Police Records Specialists, and amending the Fiscal Year 2022 expenditure budget for the Measure A Sales Tax Fund to fund such positions out of Measure A available fund balance (4/5 Vote Required); and D) approving various amendments to the Fiscal Year 2021/22 Budget to appropriate funds for these purposes (4/5 Vote Required). 4.8.Grant Acceptance and Appropriation: Accept Grant From Department of Alcoholic Beverage Control 185 Report Number: 21-0179 Location: No specific geographic location Department: Police Environmental Notice: 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. RECOMMENDED ACTION: Adopt a resolution approving an agreement with the Department of Alcoholic Beverage Control (ABC), accepting $20,000 in grant funds and appropriating the funds to the Police Grants Section of the Federal Grants Fund for the ABC – Office of Traffic Safety Grant Program (4/5 Vote Required). 5.PUBLIC COMMENTS The public may address the Council on any matter within the jurisdiction of the Council but not on the agenda. 5.1.Public Comments Received for 11/9/2021 199 2021/11/09 City Council Post Agenda Page 5 of 470 6.BOARD AND COMMISSION REPORTS The following item(s) have been brought forward by a City board, commission, or committee. 6.1.Measure A Citizens’ Oversight Committee: Presentation of Annual Report Covering Reporting Period of July 1, 2019 through June 30, 2020 213 Report Number: 21-0177 Location: No specific geographic location Department: Finance, Fire & Police Environmental Notice: 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. RECOMMENDED ACTION: Council hear the presentation and accept the report. *6.2.Sustainability Commission: Consideration of Sending a Public Comment to the California Public Utilities Commission Regarding CPUC Net Energy Metering 3.0 230 Report Number: 21-0222 Location: No specific geographic location Department: Economic Development Environmental Notice: 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. RECOMMENDED ACTION: Consider the request of the Sustainability Commission to send a public comment (via resolution or letter) to the California Public Utilities Commission (CPUC) Regarding CPUC Net Energy Metering (NEM) 3.0 7.PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. 7.1.Grant Acceptance and Appropriation: Accept Grant From U.S. Department of Justice for the Edward Byrne Memorial Justice Assistance Grant 265 Report Number: 21-0201 Location: No specific geographic location Department: Police Environmental Notice: 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. 2021/11/09 City Council Post Agenda Page 6 of 470 RECOMMENDED ACTION: Conduct a public hearing and adopt a resolution accepting $63,798 grant funds and appropriating the funds to the Police Grants Section of the Federal Grants Fund for the Edward Byrne Memorial Justice Assistance Grant (4/5 Vote Required). 8.ACTION ITEMS The following item(s) will be considered individually and are expected to elicit discussion and deliberation. 8.1.Municipal Bonds: Presentation from Stradling Yocca Carlson & Wauth, P.C., Bond and Disclosure Counsel, Regarding Federal Securities Law Matters Related to the Offer of Municipal Bonds 269 Report Number: 21-0170 Location: No specific geographic location Department: Development Services Environmental Notice: The activity is not a “Project” as defined in Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Hear the presentation from Stradling Yocca Carlson & Rauth, P.C., Bond and Disclosure Counsel, regarding federal securities law matters related to the offering of municipal bonds. 8.2.Economic Development Department Work Plan: Presentation on the Fiscal Year 2022 Work Plan 304 Location: No specific geographic location Department: Economic Development Environmental Notice: The activity is not a “Project” as defined in Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Hear the presentation and accept the Economic Development Department's 2022 work plan. 2021/11/09 City Council Post Agenda Page 7 of 470 *8.3.Short-Term Rentals: Consideration of Adopting a Short-Term Rental Ordinance, Adopting Related Permit Fees, and Adding Enforcement Staffing 348 Report Number: 21-0209 Location: No specific geographic location Department: Development Services Environmental Notice: 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. RECOMMENDED ACTION: A) Place an ordinance on first reading adding Chapter 5.68 (Short-Term Rentals) to the Chula Vista Municipal Code, establishing regulations, standards, and a permitting process for Short-Term Rentals (First Reading) and B) Adopt a resolution amending Chapter 4 (Business Fees) of the City’s Master Fee Schedule to add Short-Term Rental permitting fees, adding 1.0 Code Enforcement Officer II to the Development Services Department, and appropriating funds therefor. (4/5 Vote Required). *8.4.Emergency Shelter Units: Approval of a Master Product and Service Agreement with Pallet SPC for Emergency Shelter Units 428 Location: 205 27th Street Department: Development Services Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt a resolution approving a Master Product and Service Agreement with Pallet SPC. 9.CITY MANAGER’S REPORTS 9.1.Information Memorandum on CTH and Homeless Outreach Efforts 466 10.MAYOR’S REPORTS 11.COUNCILMEMBERS’ COMMENTS 12.CITY ATTORNEY'S REPORTS 2021/11/09 City Council Post Agenda Page 8 of 470 13.ADJOURNMENT to the regular City Council meeting on November 16, 2021 at 5:00 p.m. in the Council Chambers. Materials provided to the City Council related to an open session item on this agenda are available for public review, please contact the Office of the City Clerk at cityclerk@chulavistaca.gov or (619) 691-5041. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. 2021/11/09 City Council Post Agenda Page 9 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Contract Approval: Agreement between the City and the County of San Diego regarding the Sale of Automotive Fuel by the County to the City Report Number: 21-0165 Location: No specific geographic location Department: Public Works Environmental Notice: 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. Recommended Action Adopt a resolution approving the agreement between the City and County of San Diego regarding the Sale of Automotive Fuel by the County to the City through December 31, 2026. SUMMARY Since the closing of the former public works center at 707 F Street in 2002, City vehicles assigned to the Police and Fire Departments have acquired fuel on a regular basis from the County fuel site located at the County Courthouse located on 3rd Avenue near “H” Street. The original fuel sales agreement expired on December 31, 2015. A subsequent agreement covering fuel sales from the County for the period of January 1, 2016 through December 31, 2021 was approved by Council on June 21, 2016. In order to continue to allow City staff access to the County’s fuel facilities this agreement will cover fuel sales from the County for the period of January 1, 2022 through December 31, 2026. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. 2021/11/09 City Council Post Agenda Page 10 of 470 P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable DISCUSSION To allow for greater flexibility, City vehicles assigned to the Police and Fire Departments have regularly acquired fuel at the San Diego County Courthouse on 3rd Avenue. This site is very convenient for the Police Department headquarters and for Fire Department vehicles housed at the Civic Center and at Fire Station #1 that operate on gasoline. There are a total of 28 County-operated fuel sites throughout the County that are available as necessary for City vehicles and are particularly useful for Police undercover operations. As had been done for the past nineteen years, the County proposes to charge the City for all fuel used at the County’s current cost per gallon, plus a surcharge to be determined annually by the County’s Cost Commission. City staff has reviewed the pricing mechanism and finds the terms and conditions to be acceptable. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no impact to the current fiscal year Central Garage Operation budget. Sufficient funds have been budgeted in the operating budget this fiscal year for the purchase of motor vehicle fuel from all sources. ONGOING FISCAL IMPACT There is no ongoing additional fiscal impact as a result of this action . The fuel budget is reviewed and amended on an annual basis as needed and is considered as part of the normal budget process. ATTACHMENTS Resolution Automotive Fuel Sales Agreement – County of San Diego Staff Contact: Angelica Aguilar, Assistant Director of Public Works and Alicia Granados, Senior Management Analyst, Public Works 2021/11/09 City Council Post Agenda Page 11 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING REQUIREMENTS AND APPROVING AN AUTOMOTIVE FUEL SALES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO WHEREAS, since the closing of the former Public Works Center at 707 F Street in 2002, City vehicles assigned to the Police and Fire Departments have acquired fuel on a regular basis from the County fuel site located at the County Courthouse located on 3rd Avenue near “H” Street; and WHEREAS, this site provides the Police and Fire Departments with a convenient and efficient means to fuel their vehicles; and WHEREAS, the City’s current fuel sales agreement with the County expires on December 31, 2021; and WHEREAS, Chula Vista Municipal Code section 2.56.070.B.3 allows the City Council to waive competitive bidding requirements if determined by resolution that the City’s interests would be materially better served by applying a different purchasing procedure approved by the Purchasing Agent as being consistent with good purchasing practices; and WHEREAS, entering into the proposed Automotive Fuel Sales Agreement with the County would materially better serve the City’s interests by allowing the Police and Fire Departments to continue to access fuel site locations that are convenient and beneficial to providing safety services; and WHEREAS, the Automotive Fuel Sales Agreement proposes charging the City for all fuel used at the County’s current cost per gallon, plus a surcharge to be determined annually by the County’s Cost Commission; and WHEREAS, City staff has reviewed the pricing and other terms and conditions of the agreement and finds them to be acceptable; and WHEREAS, the Purchasing Agent has approved the proposed procurement as being consistent with good purchasing practices; and WHEREAS, City staff recommends that City Council approve the agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: 2021/11/09 City Council Post Agenda Page 12 of 470 Resolution No. Page 2 1. Waives the competitive bidding requirements for the procurement of the Automotive Fuel Services Agreement on the basis that the City’s interests would be materially better served by applying a different purchasing procedure. 2. Approves the Automotive Fuel Sales Agreement Between the County of San Diego and the City of Chula Vista, in the form presented, with such minor modifications as may be required or approved by the City Attorne y, authorizes and directs the City Manager or designee to execute same, and directs that a copy of the agreement be kept on file in the Office of the City Clerk. Presented by Matt Little Director of Public Works Approved as to form by Glen R. Googins City Attorney 2021/11/09 City Council Post Agenda Page 13 of 470 AUTOMOTIVE FUEL SALES AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO AND CITY OF CHULA VISTA This agreement (“Agreement”) is made and entered into on January 1, 2022, by and between the County of San Diego, a political subdivision of the State of California (“County”), and City of Chula Vista, a city in the State of California (“Agency”), with reference to the following facts: RECITALS A. The County’s Department of General Services, Fleet Management Division, currently maintains 28 fuel sites located throughout the County of San Diego. B. These sites provide fuel for County vehicles that are assigned to various County departments and/or agencies. C. The Count y has the capability to sell fuel to other government agencies including, but not limited to, federal, State, county, and city agencies and special districts. D. The Count y wishes to sell fuel to Agency, and Agency wishes to purchase fuel from County, subject to the terms of this Agreement. NOW THEREFORE, the County and Agency agree as follows: 1. Purchase of Fuel, Use of County’s Fuel Sites: The County shall allow Agency to purchase fuel for Agency’s owned, leased, or operated vehicles and equipment at the County’s fuel sites. Agency’s cost for fuel shall be the County’s current cost per gallon plus the surcharge annually approved by the County’s Cost Commission to cover costs associated with fuel management. Agency shall pay County within thirty (30) days of Agency’s receipt of an invoice. 2. Fuel Access Devices: County fuel sites are controlled by an automated fuel system. The County will provide sufficient fuel access devices as requested by agencies purchasing fuel from the County of San Diego. Additionally, the County will provide sufficient access devices (key fobs, passcodes, etc.) to secured County facilities for the purpose of accessing fuel. Upon termination of this Agreement for any reason, Agency shall return all fuel and facility access devices within thirty (30) days. 3. Duties of Agency: The Agency shall exercise reasonable care in using the County’s fueling equipment and entering County property to obtain fuel. The Agency shall reimburse the County for all loss or damage to fueling equipment, including but not limited to fuel access devises, caused by Agency or its personnel. The Agency agrees to pay any costs incurred by the County for the cleanup and disposal of hazardous waste that may result from negligent operation of equipment by Agency employees. The Agency must immediately report to County any system malfunctions or fuel spills as the fuel site. 2021/11/09 City Council Post Agenda Page 14 of 470 4. Security Requirements: The Agency agrees to take all reasonable measures to maintain site security by securing access gates, reporting suspicious activities at County facilities and any other action deemed necessary to maintain a secure fuel supply. 5. No Warranty or Representations: The County makes no warranty or representation regarding the availability of fuel and reserves the right to restrict access to fuel or fueling facilities. However, the County will make reasonable efforts to supply fuel in emergency situations. 6. Indemnity: County shall not be liable for, and Agency shall defend and indemnify County and the employees and agents of County (collectively "County Parties"), against any and all claims, demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys’ fees and court costs (hereinafter collectively referred to as "Claims"), related to this Agreement and arising either directly or indirectly from any act, error, omission or negligence of Agency or its contractors, licensees, agents, servants or employees, including, without limitation, Claims caused by the sole passive negligent act or the concurrent negligent act, error or omission, whether active or passive, of County Parties. Agency shall have no obligation, however, to defend or indemnify County Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole negligence or willful misconduct of County Parties. 7. Term and Termination: The term of this Agreement shall be from January 1, 2022 through December 31, 2026, unless earlier terminated by either party upon ninety (90) days’ written notice to the other party. 8. Audit: Pursuant to California Government Code Section 8546.7, County and Agency acknowledge that every contract involving the expenditure of public funds in excess of $10,000 shall be subject to audit by the State Auditor. 9. Insurance: Agency must obtain at its own cost and expense, and keep in force and effect during the term of this Agreement, including all extensions, policies of insurance or programs of self-insurance with policy limits in sufficient amounts to cover any and all potential liabilities of Agency hereunder. The applicable minimum limits shall in no way limit each Agency’s indemnification obligations. 10. Amendments: This Agreement may only be amended by written mutual consent of both parties hereto. 11. Cont act Administ rat ors: County. The San Diego County Department of General Services Contract Coordinator James Clark. 2021/11/09 City Council Post Agenda Page 15 of 470 Agency. Maria V. Kachadoorian City Manager, City of Chula Vista Date: County: Nicole J. Alejandre Assistant Director, Department of General Services Date: 2021/11/09 City Council Post Agenda Page 16 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Grant Award: Accept Funding From U.S. Department of Homeland Security for Operation Stonegarden Report Number: 21-0176 Location: No specific geographic location Department: Police Environmental Notice: 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. Recommended Action Adopt a resolution accepting $70,001 from the U.S. Department of Homeland Security and appropriating said funds to the Police Grants Section of the Federal Grant Fund for Operation Stonegarden (4/5 Vote Required). SUMMARY Since the events of September 11, 2001, the interception of terrorists and their weapons attempting entry across the nation’s borders has become the priority mission of the U.S. Department of Homeland Security. Grant funding via “Operation Stonegarden” has been awarded to the San Diego County region to facilitate regional partnerships and enhance border enforcement capabilities. In coordination with the U.S. Customs Border Protection (CBP) and grant administration by the County of San Diego, the Police Department has been allocated an additional $70,001 for Operation Stonegarden funding. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. 2021/11/09 City Council Post Agenda Page 17 of 470 P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The mission of Operation Stonegarden is to deter illegal activity by criminal organizations using transit nodes and corridors that run throughout San Diego County, including the City of Chula Vista, through regional multi- jurisdictional collaboration, intelligence/information sharing and communication. The Chula Vista Police Department is in the unique position of being geographically located in close proximity to the border (5 miles) with three main north/south arteries traversing the city. As a result, Chula Vista is positioned to interdict both north and south bound traffic. The Police Depa rtment will continue to participate in regional efforts of border-related criminal deterrence and intervention on an overtime basis. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of this resolution will result in a one-time appropriation of $70,001 to the personnel category of the fiscal year 2021/2022 budget of the Police Grants Section of the Federal Grant Fund. The funding from the U.S. Department of Homeland Security will completely offset these costs, resulting in no net fiscal impact to the General Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact accepting these grant funds. ATTACHMENTS None. Staff Contact: Jonathan Alegre, Police Department 2021/11/09 City Council Post Agenda Page 18 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING GRANT FUNDS FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE POLICE GRANTS SECTION OF THE FEDERAL GRANT FUND FOR OPERATION STONEGARDEN WHEREAS, since the events of September 11, 2001, the interception of terrorists and their weapons attempting entry across the nation’s borders has become the priority mission of the U.S. Department of Homeland Security; and WHEREAS, grant funding via “Operation Stonegarden” has been awarded by the U.S. Department of Homeland Security to the San Diego County region to facilitate regional partnerships and enhance border enforcement capabilities; and WHEREAS, the Police Department has been allocated an additional $70,001 for Operation Stonegarden to participate in regional enforcement efforts and support the mission of the operation; and WHEREAS, the grant funds provided by U.S. Department of Homeland Security will completely offset the total costs of Operation Stonegarden. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby accepts the $70,001 from the U.S. Department of Homeland Security and appropriates $70,001 to the personnel category of the fiscal year 2021/2022 budget of the Police Grants Section of the Federal Grant Fund for Operation Stonegarden. Presented by Approved as to form by Roxana Kennedy Glen R. Googins Police Chief City Attorney 2021/11/09 City Council Post Agenda Page 19 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Grant Award: Accept Grant From U.S. Department of Justice for Bulletproof Vest Partnership Report Number: 21-0200 Location: No specific geographic location Department: Police Environmental Notice: 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. Recommended Action Adopt a resolution accepting $13,459 grant funds and appropriating said funds to the Police Grants Section of the Federal Grants Fund for the Bulletproof Vest Partnership Program (4/5 Vote Required). SUMMARY The U.S. Department of Justice has awarded $13,459 to the Police Department for the Patrick Leahy Bulletproof Vest Partnership (BVP) grant program. The BVP funding will pay for 50% of the cost of bulletproof vests for police officers. Matching funds are already included in the Police budget. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as d efined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. 2021/11/09 City Council Post Agenda Page 20 of 470 P a g e | 2 DISCUSSION On June 16, 1998, the Bulletproof Vest Partnership Grant Act of 1998 was signed as law. The purpose of the Act is to save the lives of law enforcement officers by helping States and units of local government equip their law enforcement officers with armor vests. The Bulletproof Vest Partnership (BVP) is a program of the U.S. Department of Justice administered by the Bureau of Justice Assistance (BJA). The program is designed to pay up to 50% of the cost of bulletproof vests for law enforcement officers. BJA announces BVP funding opportunities on an annual basis. In April 2021, the Bureau of Justice Assistance (BJA) announced the Bulletproof Vest Program (BVP) funding opportunity for its fiscal year 2021 allocation. The Police Department applied for funding and was recently notified by BJA that the application was approved. The Department has been receiving BVP awards since 2000 and has been awarded $13,459 for the fiscal year 2021 funding period. Fiscal year 2021 BVP funds remain available until August 31, 2023. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of this resolution will result in the appropriation of $13,459 to the supplies and services category of the Police Grants sections of the Federal Grants fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact for accepting these grant funds. ATTACHMENTS None. Staff Contact: Jonathan Alegre, Police Department 2021/11/09 City Council Post Agenda Page 21 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING GRANT FUNDS FROM THE U.S. DEPARTMENT OF JUSTICE AND APPROPRIATING SAID FUNDS TO THE POLICE GRANTS SECTION OF THE FEDERAL GRANTS FUND FOR THE BULLETPROOF VEST PARTNERSHIP WHEREAS, the Bulletproof Vest Partnership is a program of the United States Department of Justice (administered by the Bureau of Justice Assistance) designed to pay up to 50% of the cost of bulletproof vests for law enforcement officers; and WHEREAS, the Police Department requested funding via the Bulletproof Vest Partnership program; and WHEREAS, the Police Department was awarded $13,459 for the purchase of bulletproof vests; and WHEREAS, the grant requires a 50% local match which has been identified in the Police Department budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby accepts $13,459 from the U.S. Department of Justice and appropriates said funds to the supplies and services category of the Police Grants section of the Federal Grants Fund for the Bulletproof Vest Partnership. Presented by Approved as to form by Roxana Kennedy Glen R. Googins Police Chief City Attorney 2021/11/09 City Council Post Agenda Page 22 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Amendments to City’s Nationwide 401(a) Money Purchase Plan: Approval of Amendments to the Plan to Conform to the Employment Contracts for the City Manager and City Clerk Report Number: 21-0225 Location: No specific geographic location Department: Finance Environmental Notice: 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. Recommended Action Adopt a resolution to approve amendments to City’s Nationwide 401(a) Money Purchase Plan (“Plan”) to conform its terms to the employment contracts for the City Manager and City Clerk. SUMMARY The City Manager and City Clerk have in their employment contracts requirements that the City contribute specified amounts to the Plan. However, their contracts do not require mandatory contributions on their part. Nationwide, the City’s 401(a) administrator, informed the City that the Plan has a mandatory contribution for participating employees. In addition, it was discovered by staff that the City’s contributions to the Plan on behalf of the City Manager and City Clerk as documented in the Plan are not consistent with the contribution terms in their respective employment contracts. This item seeks to align the terms of the Plan with the City Manager and City Clerk employment contracts by removing the requirement for mandatory employee contributions and conforming the City contribution amounts to the employment contracts. ENVIRONMENTAL REVIEW The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Gui delines Section 15060(c)(3) no environmental review is required. 2021/11/09 City Council Post Agenda Page 23 of 470 P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The City Manager and City Clerk have in their employment contracts requirements that the City contribute specified amounts to the Plan. However, their contracts do not require them to make mandatory contributions to the Plan. Nationwide, the City’s 401(a) administrator, informed the City that the Plan nonetheless has a mandatory contribution for participating employees. In addition, City contribution amounts to the Plan as specified in their respective employment contracts are not reflected correctly in the Plan documents. This item seeks to align the Plan with the City Manager and City Clerk employment contracts by removing the requirement for mandatory employee contributions and conforming the City contribution terms to the employment contracts. This action is also necessary to ensure compliance with IRS requirements regarding 401(a) Plans, which requires that 401(a) Plan terms be followed precisely. To remove the mandatory employee contribution and correct the employer contribution amounts, the following is a summary of key amendments to the 401(a) Plan that are required:  Item 6.b – the restatement is effective November 19, 2021. This changes contributions on a go forward basis.  Item 11.d – mandatory employee contributions will no longer be required  Item 12.b.5 – Only the incumbents in the City Manager and City Clerk positions are eligible to participate in the Plan.  Item 24.a.4 – Provides for employer contributions consistent with the employment agreements for the City Manager and City Clerk.  Item 31 – mandatory contributions are no longer required. City Council adoption of the resolution will approve amending the Plan so that it is consistent with the City Manager and City Clerk employment contracts. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no fiscal impact from this action as the position is in the City adopted budget. ONGOING FISCAL IMPACT There is no fiscal impact from this action as the position is in the City adopted budget. 2021/11/09 City Council Post Agenda Page 24 of 470 P a g e | 3 ATTACHMENTS 1. Amended 401(a) Plan Staff Contact: Simon Silva, Deputy City Attorney/Hanna Ecijan, Finance Dept. 2021/11/09 City Council Post Agenda Page 25 of 470 RESOLUTION NO. 2021-XXX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO THE CITY’S NATIONWIDE 401(A) MONEY PURCHASE PLAN TO CONFORM TO THE EMPLOYMENT CONTRACTS FOR THE CITY MANAGER AND CITY CLERK WHEREAS, the City Manager and City Clerk have, in their employment contracts, requirements that the City contribute specified amounts into the City’s Nationwide 401(a) Money Purchase Plan (“Plan”), but there is no mandatory requirement that they also contribute into the Plan; and WHEREAS, the Plan includes a mandatory requirement that the City Manager and City Clerk contribute to the Plan and this requirement causes a conflict with their employment contracts; and WHEREAS, it has also been determined that the amounts designated as the City’s contributions to the Plan are not consistent with the employment contracts for the City Manager and City Clerk; WHEREAS, to ensure that the Plan is consistent with the employment contracts for the City Manager and City Clerk, it must be amended to eliminate the mandatory employee contribution requirement and to conform the City’s contribution amounts to the employment contracts. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the amendments, with such minor changes which may be recommended or required by the City Attorney’s Office, to the City’s Nationwide 401(a) Money Purchase Plan set forth in the amended adoption agreement to the Plan on file in the City Clerk’s Office. Presented by Approved as to form by Sarah Schoen Glen R. Googins Director of Finance City Attorney 2021/11/09 City Council Post Agenda Page 26 of 470 Nationwide Financial Services, Inc. Governmental Defined Contribution Volume Submitter Plan 2021/11/09 City Council Post Agenda Page 27 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers i TABLE OF CONTENTS ARTICLE I DEFINITIONS ARTICLE II ADMINISTRATION 2.1 POWERS AND RESPONSIBILITIES OF THE EMP LOYER .................................................................................................. 10 2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY ......................................................................................................... 10 2.3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES ............................................................................................. 11 2.4 POWERS AND DUTIES OF THE ADMINISTRATOR ........................................................................................................... 11 2.5 RECORDS AND REPORTS ...................................................................................................................................................... 11 2.6 APPOINTMENT OF ADVISERS .............................................................................................................................................. 11 2.7 INFORMATION FROM EMPLOYER ...................................................................................................................................... 12 2.8 PAYMENT OF EXPENSES ...................................................................................................................................................... 12 2.9 MAJORITY ACTIONS .............................................................................................................................................................. 12 2.10 CLAIMS PROCEDURES........................................................................................................................................................... 12 ARTICLE III ELIGIBILITY 3.1 CONDITIONS OF ELIGIBILITY .............................................................................................................................................. 12 3.2 EFFECTIVE DATE OF PARTICIPATION ............................................................................................................................... 12 3.3 DETERMINATION OF ELIGIBILITY ..................................................................................................................................... 13 3.4 TERMINATION OF ELIGIBILITY .......................................................................................................................................... 13 3.5 REHIRED EMPLOYEES AND 1-YEAR BREAKS IN SERVICE ........................................................................................... 13 3.6 OMISSION OF ELIGIBLE EMPLOYEE; INCLUSION OF INELIGIBLE EMPLOYEE ........................................................ 14 ARTICLE IV CONTRIBUTION AND ALLOCATION 4.1 FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION .................................................................................... 14 4.2 TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION................................................................................................... 15 4.3 ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS ........................................................................... 15 4.4 MAXIMUM ANNUAL ADDITIONS ........................................................................................................................................ 16 4.5 ADJUSTMENT FOR EXCESS ANNUAL ADDITIONS .......................................................................................................... 19 4.6 ROLLOVERS ............................................................................................................................................................................. 19 4.7 PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS................................................................................................. 19 4.8 MANDATORY EMPLOYEE CONTRIBUTIONS .................................................................................................................... 20 4.9 AFTER-TAX VOLUNTARY EMPLOYEE CONTRIBUTIONS .............................................................................................. 20 4.10 PARTICIPANT DIRECTED INVESTMENTS.......................................................................................................................... 21 4.11 QUALIFIED MILITARY SERVICE ......................................................................................................................................... 21 ARTICLE V VALUATIONS 5.1 VALUATION OF THE TRUST FUND ..................................................................................................................................... 22 5.2 METHOD OF VALUATION ..................................................................................................................................................... 22 ARTICLE VI DETERMINATION AND DISTRIBUTION OF BENEFITS 6.1 DETERMINATION OF BENEFITS UPON RETIREMENT .................................................................................................... 22 2021/11/09 City Council Post Agenda Page 28 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers ii 6.2 DETERMINATION OF BENEFITS UPON DEATH ................................................................................................................ 22 6.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY .......................................................................................... 23 6.4 DETERMINATION OF BENEFITS UPON TERMINATION .................................................................................................. 23 6.5 DISTRIBUTION OF BENEFITS ............................................................................................................................................... 24 6.6 DISTRIBUTION OF BENEFITS UPON DEATH ..................................................................................................................... 25 6.7 TIME OF DISTRIBUTION ........................................................................................................................................................ 25 6.8 REQUIRED MINIMUM DISTRIBUTIONS ............................................................................................................................. 26 6.9 DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL ...................................................................................... 29 6.10 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN ........................................................................................ 29 6.11 IN-SERVICE DISTRIBUTION .................................................................................................................................................. 30 6.12 ADVANCE DISTRIBUTION FOR HARDSHIP ....................................................................................................................... 30 6.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION ........................................................................................ 31 6.14 DIRECT ROLLOVERS .............................................................................................................................................................. 31 6.15 RESTRICTIONS ON DISTRIBUTION OF ASSETS TRANSFERRED FROM A MONEY PURCHASE PLAN .................. 32 6.16 CORRECTIVE DISTRIBUTIONS ............................................................................................................................................ 32 6.17 HEART ACT .............................................................................................................................................................................. 32 6.18 SERVICE CREDIT .................................................................................................................................................................... 33 ARTICLE VII TRUSTEE AND CUSTODIAN 7.1 BASIC RESPONSIBILITIES OF THE TRUSTEE .................................................................................................................... 33 7.2 INVESTMENT POWERS AND DUTIES OF DISCRETIONARY TRUSTEE ........................................................................ 34 7.3 INVESTMENT POWERS AND DUTIES OF NONDISCRETIONARY TRUSTEE ................................................................ 35 7.4 POWERS AND DUTIES OF CUSTODIAN .............................................................................................................................. 37 7.5 LIFE INSURANCE .................................................................................................................................................................... 37 7.6 LOANS TO PARTICIPANTS .................................................................................................................................................... 38 7.7 ALLOCATION AND DELEGATION OF RESPONSIBILITIES ............................................................................................. 38 7.8 TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES ........................................................................................... 38 7.9 ANNUAL REPORT OF THE TRUSTEE .................................................................................................................................. 39 7.10 RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE ......................................................................................... 39 7.11 TRANSFER OF INTEREST ...................................................................................................................................................... 39 7.12 TRUSTEE INDEMNIFICATION .............................................................................................................................................. 40 ARTICLE VIII AMENDMENT, TERMINATION AND MERGERS 8.1 AMENDMENT .......................................................................................................................................................................... 40 8.2 TERMINATION ......................................................................................................................................................................... 40 8.3 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS................................................................................................. 40 ARTICLE IX MISCELLANEOUS 9.1 EMPLOYER ADOPTIONS ....................................................................................................................................................... 41 9.2 PARTICIPANT'S RIGHTS ........................................................................................................................................................ 41 9.3 ALIENATION ............................................................................................................................................................................ 41 9.4 PLAN COMMUNICATIONS, INTERPRETATION AND CONSTRUCTION ........................................................................ 41 9.5 GENDER, NUMBER AND TENSE .......................................................................................................................................... 42 9.6 LEGAL ACTION ....................................................................................................................................................................... 42 2021/11/09 City Council Post Agenda Page 29 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers iii 9.7 PROHIBITION AGAINST DIVERSION OF FUNDS .............................................................................................................. 42 9.8 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE .................................................................................................... 42 9.9 INSURER'S PROTECTIVE CLAUSE ....................................................................................................................................... 42 9.10 RECEIPT AND RELEASE FOR PAYMENTS ......................................................................................................................... 43 9.11 ACTION BY THE EMPLOYER ................................................................................................................................................ 43 9.12 APPROVAL BY INTERNAL REVENUE SERVICE ............................................................................................................... 43 9.13 PAYMENT OF BENEFITS ........................................................................................................................................................ 43 9.14 ELECTRONIC MEDIA .............................................................................................................................................................. 43 9.15 PLAN CORRECTION ................................................................................................................................................................ 43 9.16 NONTRUSTEED PLANS .......................................................................................................................................................... 43 ARTICLE X PARTICIPATING EMPLOYERS 10.1 ELECTION TO BECOME A PARTICIPATING EMPLOYER ................................................................................................ 44 10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS ........................................................................................................ 44 10.3 DESIGNATION OF AGENT ..................................................................................................................................................... 44 10.4 EMPLOYEE TRANSFERS ........................................................................................................................................................ 44 10.5 PARTICIPATING EMPLOYER'S CONTRIBUTION AND FORFEITURES .......................................................................... 44 10.6 AMENDMENT .......................................................................................................................................................................... 44 10.7 DISCONTINUANCE OF PARTICIPATION ............................................................................................................................ 45 10.8 ADMINISTRATOR'S AUTHORITY......................................................................................................................................... 45 ARTICLE XI MULTIPLE EMPLOYER PROVISIONS 11.1 ELECTION AND OVERRIDING EFFECT .............................................................................................................................. 45 11.2 DEFINITIONS............................................................................................................................................................................ 45 11.3 PARTICIPATING EMPLOYER ELECTIONS .......................................................................................................................... 45 11.4 TESTING .................................................................................................................................................................................... 45 11.5 COMPENSATION ..................................................................................................................................................................... 45 11.6 SERVICE .................................................................................................................................................................................... 46 11.7 COOPERATION AND INDEMNIFICATION .......................................................................................................................... 46 11.8 INVOLUNTARY TERMINATION ........................................................................................................................................... 46 11.9 VOLUNTARY TERMINATION ............................................................................................................................................... 47 2021/11/09 City Council Post Agenda Page 30 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 1 ARTICLE I DEFINITIONS As used in this Plan, the following words and phrases shall have the meanings set forth herein unless a different meaning is clearly required by the context: 1.1 "Account" means any separate notational account established and maintained by the Administrator for each Participant under the Plan. To the extent applicable, a Participant may have any (or all) of the following notational Accounts: (a) "Combined Account" means the account representing the Participant's total interest under the Plan resulting from Employer contributions. In addition, Forfeitures are part of the Combined Account to the extent they are reallocated. (b) "Mandatory Contribution Account" means the account established hereunder to which mandatory Employee contributions made pursuant to Section 4.8 are allocated, to the extent such contributions are not p icked-up by the Employer pursuant to Code §414(h). A Participant's Mandatory Contribution Account shall be fully Vested at all times. (c) "Rollover Account" means the account established hereunder to which amounts transferred from a qualified plan or indi vidual retirement account in accordance with Section 4.6 are allocated. (d) "Transfer Account" means the account established hereunder to which amounts transferred to this Plan from a direct plan-to-plan transfer in accordance with Section 4.7 are allocated. (e) "Voluntary Contribution Account" means the account established hereunder to which after -tax voluntary Employee contributions made pursuant to Section 4.9 are allocated. 1.2 "Administrator" means the Employer unless another person or entity has been designated by the Employer pursuant to Section 2.2 to administer the Plan on behalf of the Employer. 1.3 "Adoption Agreement" means the separate agreement which is executed by the Employer and sets forth the elective provisions of this Plan and Trust as specified by the Employer. 1.4 "Affiliated Employer" means any entity required to be aggregated with the Employer pursuant to Code §414. 1.5 "Alternate Payee" means an alternate payee pursuant to a qualified domestic relations order that meets the requirements of Code §414(p). 1.6 "Anniversary Date" means the last day of the Plan Year. 1.7 "Annuity Starting Date" means, with respect to any Participant, the first day of the first period for which an amount is paid as an annuity, or, in the case of a benefit not payable in the form of an annuity, the first day on which all events have occurred which entitles the Participant to such benefit. 1.8 "Beneficiary" means the person (or entity) to whom all or a portion of a deceased Participant's interest in the Plan is payable, subject to the restrictions of Sections 6.2 and 6.6. 1.9 "Code" means the Internal Revenue Code of 1986, as it may be amended from time to time. 1.10 "Compensation" means, with respect to any Participant, the amount determined in accordance with the following provisions, except as otherwise provided in the Adoption Agreement. (a) Base definition. One of the following, as elected in the Adoption Agreement: (1) Information required to be reported under Code §§6041, 6051 and 6052 (Wages, tips and other compensation as reported on Form W-2). Compensation means wages, within the meaning of Code §3401(a), and all other payments of compensation to an Employee by the Employer (in the course of the Employer's trade or business) for which the Employer is required to furnish the Employee a written statement under Code §§6041(d), 6051(a)(3) and 6052. Compensation must be determined without regard to any rules under Code §3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code §3401(a)(2)). (2) Code §3401(a) Wages. Compensation means an Employee's wages within the meaning of Code §3401(a) for the purposes of income tax withholding at the source but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural lab or in Code §3401(a)(2)). 2021/11/09 City Council Post Agenda Page 31 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 2 (3) 415 safe harbor compensation. Compensation means wages, salaries, for Plan Years beginning after December 31, 2008, Military Differential Pay, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespersons, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements, or other expense allowances under a nonaccountable plan (as described in Regulation §1.62-2(c))), and excluding the following: (i) Employer contributions to a plan of deferred compensation which are not includible in the Employee's gross income for the taxable year in which contributed, or Employer contributions under a simplified employee pension plan to the extent such contributions are excludable from the Employee's gross income, or any distributions from a plan of deferred compensation; (ii) Amounts realized from the exercise of a nonqualified stock option, or when restricted stock (or property) held by the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; (iii) Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and (iv) Other amounts which receive special tax benefits, or contributions made by the Employer (whether or not under a salary deferral agreement) towards the purchase of an annuity contract described in Code §403(b) (whether or not the contributions are actually excludable from the gross income of the Employee). (b) Paid during "determination period." Compensation shall include only that Compensation which is actually paid to the Participant during the "determination period". Except as otherwise provided in this Plan, the "determination period" is the period elected by the Employer in the Adoption Agreement. If the Employer makes no election, the "determination period" shall be the Plan Year. (c) Inclusion of deferrals. Notwithstanding the above, unless otherwise elected in the Adoption Agreement, Compensation shall include all of the following types of elective contributions and all of the following types of deferred compensation: (1) Elective contributions that are made by the Employer on behalf of a Participant that are not includib le in gross income under Code §§125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) and 403(b). If specified in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), amounts under Code §125 shall be deemed to include any amounts not available to a Participant in cash in lieu of group health coverage because the Participant is unable to certify that he or she has other health coverage. An amount will be treated as an amount under Code §125 pursuant to the preceding sentence only if the Employer does not request or collect information regarding the Participant's other health coverage as part of the enrollment process for the health plan. (2) Compensation deferred under an eligible deferred compensation plan within the meani ng of Code §457(b). (3) Employee contributions described in Code §414(h)(2) that are picked-up by the employing unit and thus are treated as Employer contributions. (d) Post-severance compensation – Code §415 Regulations. The Administrator shall adjust Compensation, for Plan Years beginning on or after July 1, 2007 (or such other date as the Employer specifies in the Compensation Section of the Adoption Agreement), for amounts that would otherwise be included in the definition of Compensation but are pai d by the later of 2 1/2 months after a Participant's severance from employment with the Employer or the end of the Plan Year that includes the date of the Participant's severance from employment with the Employer , in accordance with the following, as elec ted in the Compensation Section of the Adoption Agreement. The preceding time period, however, does not apply with respect to payments described in Subsections (4) and (5) below. Any other payment of compensation paid after severance of employment that is not described in the following types of compensation is not considered Compensation, even if payment is made within the time peri od specified above. (1) Regular pay. Compensation shall include regular pay after severance of employment (to the extent otherwise included in the definition of Compensation) if: (i) The payment is regular compensation for services during the Participant's regular working hours, or compensation for services outside the Participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (ii) The payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the Employer. 2021/11/09 City Council Post Agenda Page 32 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 3 (2) Leave cash-outs. Compensation shall include leave cash-outs if those amounts would have been included in the definition of Compensation if they were paid prior to the Participant's severance from employment with the Employer, and the amounts are for unused accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment had continued. (3) Deferred compensation. Compensation shall include deferred compensation if those amounts would have been included in the definition of Compensation if they were paid prior to the Participant's severance from employment with the Employer, and the amounts are received pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid if the Participant had continued in employment with the Employer and only to the extent the payment is includible in the Participant's gross income. (4) Military Differential Pay. Compensation shall include payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code §414(u)(1)) to the extent tho se payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military servic e. (5) Disability pay. Compensation shall include compensation paid to a Participant who is permanently and totally disabled, as defined in Code §22(e)(3), provided, as elected by the Employer in the Compensation Section of the Adoption Agreement, salary continuation applies to all Participants who are permanently and totally disabled. (e) Dollar limitation. Compensation in excess of $200,000 shall be disregarded for all. Such amount shall be adjusted by the Commissioner for increases in the cost-of-living in accordance with Code §401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to any "determination period" beginning with or within such calendar year. If a "d etermination period" consists of fewer than twelve (12) months, the $200,000 annual Compensation limit will be multiplied by a fraction, the numer ator of which is the number of months in the "determination period," and the denominator of which is twelve (1 2). In applying any Plan limitation on the amount of matching contributions, where such limits are expressed as a percentage of Compensation, the Administrator may apply the Compensation limit under this Section annually, even if the matching contribution formula is applied on any time interval which is less than the full Plan Year or the Administrator may pro rate the Compensation limit. In the case of an "eligible Participant," the dollar limitation under Code §401(a)(17) shall not apply to the extent th e amount under the Plan would be reduced below the amount which was allowed to be taken into account under the Plan as in effect on Ju ly 1, 1993. For purposes of this provision, an "eligible Participant" is an individual who first became a Participant befo re the first Plan Year beginning after the earlier of (i) the Plan Year in which the Plan was amended to reflect Code §401(a)(17), or (ii) Dece mber 31, 1995. (f) Non-eligible Employee. If, in the Adoption Agreement, the Employer elects to exclude a class of Employees from the Plan, then Compensation for any Employee who becomes eligible or ceases to be eligible to participate during a "determination period" shall only include Compensation while the Employee is an Eligible Employee. (g) Amendment. If, in connection with the adoption of any amendment, the definition of Compensation has been modified, then, except as otherwise provided herein, for Plan Years prior to the Plan Year which includes the adoption date of such amendment , Compensation means compensation determined pursuant to the terms of the Plan then in effect. 1.11 "Contract" or "Policy" means any life insurance policy, retirement income policy, or annuity contract (group or individual) issued by the Insurer. In the event of any conflict between the terms of this Plan and the terms of any contract purchased hereunder, the Plan provisions shall control. 1.12 "Custodian" means a person or entity that has custody of all or any portion of the Plan assets. 1.13 "Directed Trustee" means a Trustee who, with respect to the investment of Plan assets, is subject to the direction of the Administrator, the Employer, a properly appointed Investment Manager, or Plan Participant. To the extent the Trustee is a Dir ected Trustee, the Trustee does not have any discretionary authority with respect to the investment of Plan assets. In addition, the Trustee is not responsible for the propriety of any directed investment made pursuant to this Section and shall not be required to consult o r advise the Employer regarding the investment quality of any directed investment held under the Plan. 1.14 "Discretionary Trustee" means a Trustee who has the authority and discretion to invest, manage or control any portion of the Plan assets. 1.15 "Early Retirement Date" means the date specified in the Adoption Agreement on which a Participant has satisfied the requirements specified in the Adoption Agreement (Early Retirement Age). If elected in the Adoption Agreement, a Participant shall become fully Vested upon satisfying such requirements if the Participant is still employed at the Early Retirement Age. A Participant who severs from employment after satisfying any service requirement but before satisfying the age requirement for Early Retirement Age and who thereafter reaches the age requirement contained herein shall be entitled to receive benefits under this Plan 2021/11/09 City Council Post Agenda Page 33 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 4 (other than any accelerated vesting and allocations of Employer contributions) as though the requirements for Early Retiremen t Age had been satisfied. 1.16 "Effective Date" means the date this Plan, including any restatement or amendment of this Plan, is effective. Where the Plan is restated or amended, a reference to Effective Date is the effective date of the restatement or amendment, except where the co ntext indicates a reference to an earlier Effective Date. If any provision of this Plan is retroactively effective, the provisions of this Pl an generally control. However, if the provision of this Plan is different from the provision of the Employer's prior plan document and, after the retroactive Effective Date of this Plan, the Employer operated in compliance with the provisions of the prior plan, then the provision of such prior plan is incorporated into this Plan for purposes of determining whether the Employer operated the Plan in compliance with its terms, provided operation in compliance with the terms of the prior plan do not violate any qualification requirements under the Code, Regula tions, or other IRS guidance. The Employer may designate special effective dates for individual provisions under the Plan where provided in the Adoption Agreement or under Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections). If one or more qualified retirement plans have been merged into this Plan, the provisions of the merging plan(s) will remain in full force and effect until the effective date of the plan merger(s). 1.17 "Eligible Employee" means any Eligible Employee as elected in the Adoption Agreement and as provided herein. An individual shall not be an Eligible Employee if such individual is not reported on the payroll records of the Employer as a common law e mployee. In particular, it is expressly intended that individuals not treated as common law employees by the Employer on its p ayroll records and out-sourced workers, are not Eligible Employees and are excluded from Plan participation even if a court or administrative agency determines that such individuals are common law employees and not independent contractors. Furthermore, Emp loyees of an Affiliated Employer will not be treated as Eligible Employees prior to the date the Affiliated Employer adopts the Plan as a Participati ng Employer. If, in the Adoption Agreement, the Employer elects to exclude union employees, then Employees whose employment is governed by a collective bargaining agreement between the Employer and "employee representatives" under which retirement benefits were the subject of good faith bargaining, shall not be eligible to participate in this Plan to the exten t of employment covered by such agreement, unless the agreement provides for coverage in the Plan (see Section 4.1(d)). For this purpose, the term "employee representat ives" does not include any organization more than half of whose members are employees wh o are owners, officers, or executives of the Employer. If a Participant performs services both as a collectively bargained Employee and as a non -collectively bargained Employee, then the Participant's Hours of Service in each respective category are treated separately. If, in the Adoption Agreement, the Employer elects to exclude nonresident aliens, then Employees who are nonresident aliens (within the meaning of Code §7701(b)(1)(B)) who received no earned income (within the meaning of Code §911(d)(2)) fro m the Employer which constitutes income from sources within the United States (within the meaning of Code §861(a)(3)) shall not be eligible to participate in this Plan. In addition, this paragraph shall also apply to exclude from participation in the Plan an Employee who is a nonresident alien (within the meaning of Code §7701(b)(1)(B)) but who receives earned income (within the meaning of Code §911(d)(2)) from the E mployer that constitutes income from sources within the United States (within the meaning of Code §861(a)(3)), if all of the Employee's earned income from the Employer from sources within the United States is exempt from United States income tax under an applicable in come tax convention. The preceding sentence will apply only if all Employees described in the preceding sentence are excluded from the Plan. If, in the Adoption Agreement, the Employer elects to exclude Part-Time/Temporary/Seasonal Employees, then notwithstanding any such exclusion, if any such excluded Employee actually completes or completed a Year of Service, then such Employee will cease to be within this particular excluded class. 1.18 "Employee" means any person who is employed by the Employer. The term "Employee" shall also include any person who is an employee of an Affiliated Employer and any Leased Employee deemed to be an Employee as provided in Code §414(n) or (o). 1.19 "Employer" means the governmental entity specified in the Adoption Agreement, any successor which shall maintain this Plan and any predecessor which has maintained this Plan. In addition, unless the context means otherwise, the term "Employer" shall include any Participating Employer which shall adopt this Plan. This plan may only be adopted a state or local governmental entity, or ag ency thereof, including an Indian tribal government, and may not be adopted by any other entity, including a federal government and any agency or instrumentality thereof. 1.20 "Fiscal Year" means the Employer's accounting year. 1.21 "Forfeiture" means that portion of a Participant's Account that is not Vested and is disposed of in accordance with the provisions of the Plan. A Forfeiture will occur on the earlier of: (a) The last day of the Plan Year in which a Participant incurs five (5) consecutive 1-Year Breaks in Service, or (b) The distribution of the entire Vested portion of the Participant's Account of a Participant who has severed employment with t he Employer. For purposes of this provision, if the Participant has a Vested benefit of zero, then such Participant shal l be deemed to 2021/11/09 City Council Post Agenda Page 34 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 5 have received a distribution of such Vested benefit as of the year in which the severance of employment occurs. For this purp ose, a Participant's Vested benefit shall not include: (i) qualified voluntary employee contributions within the meaning of Code §72(o)(5)(B), and (ii) the Participant's Rollover Account. Regardless of the preceding, if a Participant is eligible to share in the allocation of Forfeitures in the year in which the Forfeiture would otherwise occur, then the Forfeiture will not occur until the end of the first Plan Year for which the Participant is not eligible to share in the allocation of Forfeitures. Furthermore, the term "Forfeiture" shall also include amounts deemed to be Forfeitures pursuant to any other provision of this Plan. 1.22 "Former Employee" means an individual who has severed employment with the Employer or an Affiliated Employer. 1.23 "415 Compensation" means, with respect to any Participant, such Participant's (a) Wages, tips and other compensation on Form W-2, (b) Code §3401(a) wages or (c) 415 safe harbor compensation as elected in the Adoption Agreement for purposes of Compensat ion (and as defined in Subsections 1.18(a)(1)-3 respectively). 415 Compensation shall be based on the full Limitation Year regar dless of when participation in the Plan commences. Furthermore, regardless of any election made in the Adoption Agreement, 415 Compensation shall include any elective deferral (as defined in Code §§402(e)(3), 402(k) and 402(h)(1)(B)) and any amount which i s contributed or deferred by the Employer at the election of the Participant and which is not includible in the gross income of the Participant by reas on of Code §§125, 457, and 132(f)(4). In addition, for years beginning after December 31, 2008 Military D ifferential Pay is treated as 415 Compensation. (a) Deemed 125 compensation. If elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), amounts under Code §125 shall be deemed to include any amounts not available to a Participant in cash in lieu of group health coverage because the Participant is unable to certify that he or she has other health coverage. An amount wil l be treated as an amount under Code §125 pursuant to the preceding sentence only if the Employer does not request or collect information regarding the Participant's other health coverage as part of the enrollment process for the health plan. (b) Post-severance compensation. The Administrator shall adjust 415 Compensation, for Limitation Years beginning on or after July 1, 2007, or such earlier date as the Employer specifies in the Compensation Section of the Adoption Agreement, for amoun ts that would otherwise be included in the definition of 415 Compensation but are paid by the later of 2 1/2 months after a Participant's severance from employment with the Employer or the end of the Limitation Year that includes the date of the Participant's severance from employment with the Employer, in accordance with the following, as elected in the Compensa tion Section of the Adoption Agreement. The preceding time period, however, does not apply with respect to payments described in Subsections (4) and (5) below. Any other payment of compensation paid after severance of employment that is not described in th e following types of compensation is not considered 415 Compensation, even if payment is made within the time period specified above. (1) Regular pay. 415 Compensation shall include regular pay after severance of employment (to the extent otherwise included in the definition of 415 Compensation) if: (i) The payment is regular compensation for services during the Participant's regular working hours, or compensation for services outside the Participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (ii) The payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the Employer. (2) Leave cash-outs. 415 Compensation shall include leave cash-outs if those amounts would have been included in the definition of 415 Compensation if they were paid prior to the Participant's severance from employment with the Employer, and the amounts are for unused accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment had continued. (3) Deferred compensation. 415 Compensation shall include deferred compensation if those amounts would have been included in the definition of 415 Compensation if they were paid prior to the Participant's severance from employment with the Employer, and the amounts are received pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid if the Participant had continued in employment with the Employer and only to the extent the payment is includible in the Participant's gross income. (4) Military Differential Pay. 415 Compensation shall include payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code §414(u)(1)) to the extent tho se payments do not exceed the amounts the individual would have received if the individual had continued to perfo rm services for the Employer rather than entering qualified military service. (5) Disability pay. 415 Compensation shall include compensation paid to a Participant who is permanently and totally disabled, as defined in Code §22(e)(3), provided, as elected by the Employer in the Compensation Section of the Adoption Agreement, salary continuation applies to all Participants who are permanently and totally disabled for a fixed or determinab le 2021/11/09 City Council Post Agenda Page 35 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 6 period, or the Participant was not a highly compensated employee (within the meaning of Code §414(q)) immediately before becoming disabled. (c) Inclusion of certain nonqualified deferred compensation amounts. If this is a PPA restatement and prior to the restatement Compensation included all items includible in compensation under Regulation §1.415(c)-2(b) (Regulation §1.415-2(d)(2) under the Regulations in effect for Limitation Years beginning prior to July 1, 2007) then 415 Compensation for Limitation Years prior to the adoption of this restatement shall include amounts that are includible in the gross income of a Participant under the rules of Code §409A or Code §457(f)(1)(A) or because the amounts are constructively received by the Participant. For Plan Years beginning on and after the Plan Year in which this restatement is adopted, the Plan does not provide for a definition of 415 Compensation including all items in Regulation §1.415(c)-2(b). (d) Back pay. Back pay, within the meaning of Regulations §1.415(c)-2(g)(8), shall be treated as Compensation for the Limitation Year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition. (e) Dollar limitation. 415 Compensation will be limited to the same dollar limitations set forth in Section 1.10(e) adjusted in such manner as permitted under Code §415(d). (f) Amendment. Except as otherwise provided herein, if, in connection with the adoption of any amendment, the definition of 415 Compensation has been modified, then for Plan Years prior to the Plan Year which includes the adoption date of such amendment, 415 Compensation means compensation determined pursuant to the terms of the Plan then in effect. 1.24 "Hour of Service" means (a) each hour for which an Employee is directly or indirectly compensated or entitled to Compensation by the Employer for the performance of duties during the applicable computation period (these hours will be credited to the E mployee for the computation period in which the duties are performed); (b) each hour fo r which an Employee is directly or indirectly compensated or entitled to Compensation by the Employer (irrespective of whether the employment relationship has terminated) for reasons oth er than performance of duties (such as vacation, holidays, sickness, incapacity (including disability), jury duty, lay-off, military duty or leave of absence) during the applicable computation period; (c) each hour for which back pay is awarded or agreed to by the Employer w ithout regard to mitigation of damages (these hours will be credited to the Employee for the computation period or periods to which the award or agreement pertains rather than the computation period in which the award, agreement or payment is made). The same Hours of Se rvice shall not be credited both under (a) or (b), as the case may be, and under (c). Notwithstanding (b) above, (1) no more than 501 Hours of Service will be credited to an Employee on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single computation period); (2) an hour for which an Employee is directly or indirectly paid, or entitled to payment, on account of a period during which no duties are performed is not required to be credited to the Employee if such payment is made or due under a plan maintained solely for the purpose of complying with applicable workers' compensation, or unemployment compensation or disability insurance laws; and (3) Hours of Service are not required to be credited for a payment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee. Furthermore, for purposes of (b) above, a payment shall be deemed to be made by or due from the Employer regard less of whether such payment is made by or due from the Employer directly, or indirectly through, among others, a trust fund, or insurer, to which the Employer contributes or pays premiums and regardless of whether contributions made or due to the trust fund, insurer, or other entity are for the benefit of particular Employees or are on behalf of a group of Employees in the aggregate. Hours of Service will be credited for employment with all Affiliated Employers and for any individual considered to be a Leas ed Employee pursuant to Code §414(n) or 414(o) and the Regulations thereunder. Hours of Service will be determined using the actual hours method unless one of the methods below is elected in the Adoption Agreement. If the actual hours method is used to determine Hours of Service, an Employee is credi ted with the actual Hours of Service the Employee completes with the Employer or the number of Hours of Service for which the Employee is paid (or entitled to payment). If the days worked method is elected, an Employee will be credited with ten (10) Hours of Service if under the Plan such Employee would be credited with at least one (1) Hour of Service during the day. If the weeks worked method is elected, an Employee will be credited with forty-five (45) Hours of Service if under the Plan such Employee would be credited with at least one (1) Hour of Service during the week. If the semi-monthly payroll periods worked method is elected, an Employee will be credited with ninety-five (95) Hours of Service if under the Plan such Employee would be credited with at least one (1) Hour of Service during the semi-monthly payroll period. If the months worked method is elected, an Employee will be credited with one hundred ninety (190) Hours of Service if under the Plan such Employee would be credited with at least one (1) Hour of Service during the month. 2021/11/09 City Council Post Agenda Page 36 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 7 If the bi-weekly payroll periods worked method is elected, an Employee will be credited with ninety (90) Hours of Service if under the Plan such Employee would be credited with at least one (1) Hour of Service during the bi-weekly payroll period. 1.25 "Insurer" means any legal reserve insurance company which has issued or shall issue one or more Contracts or Policies under the Plan. 1.26 "Investment Manager" means a person or entity which renders investment advice for a fee or other compensation, direct or indirect, with respect to any monies or property of the Plan and which is appointed in accordance with Section 2.1(b). 1.27 "Late Retirement Date" means the date of, or the first day of the month or the Anniversary Date coinciding with or next following, whichever corresponds to the election in the Adoption Agreement for the Normal Retirement Date, a Participant's ac tual retirement after having reached the Normal Retirement Date. 1.28 "Leased Employee" means any person (other than an Employee of the recipient Employer) who, pursuant to an agreement between the recipient Employer and any other person or entity ("leasing organization"), has performed services for the recipi ent (or for the recipient and related persons determined in accordance with Code §414(n)(6)) on a substantially full time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient Employer. Contributions or benefits provided a Leased Employee by the leasing organization which are attributable to services performed for the recipient Employer shall be tr eated as provided by the recipient Employer. Furthermore, Compensation for a Leased Employee shall only include compensation from t he leasing organization that is attributable to services performed for the recipient Employer. A Leased Employee shall not be considered an employee of the recipient Employer if: (a) such employee is covered by a money purchase pension plan providing: (1) a non-integrated employer contribution rate of at least ten percent (10%) of compensation, as defined in Code §415(c)(3), (2) immediate participation, and (3) full and immediate vesting; and (b) leased employees do not constitute more than twenty percent (20%) of the recipient Employer's nonhighly compensated workforce. 1.29 "Limitation Year" means the "determination period" used to determine Compensation. However, the Employer may elect a different Limitation Year in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections). All qualified plans maintained by the Employer must use the same Limitation Year. Furthermore, unless there is a change to a new Limitation Year, the Limitation Year will be a twelve (12) consecutive month period. In the case of an initial Limitation Year, the Limitation Year will be the twelve (12) consecutive month period ending on the last day of the period specified in the Adoption Agreement. If the Limitation Yea r is amended to a different twelve (12) consecutive month period, the new "Limitation Year" must begin on a date within the "Limitation Year" in which the amendment is made. For Limitation Years beginning on and after July 1, 2007, the Limitation Year may only be cha nged by a Plan amendment. Furthermore, if the Plan is terminated effective as of a date other than the last day of the Plan's Limitation Year, then the Plan is treated as if the Plan had been amended to change its Limitation Year. 1.30 "Military Differential Pay" means, for any Plan or Limitation Year beginning after June 30, 2007, any differential wage payments made to an individual that represents an amount which, when added to the individual's military pay, approximates the amount o f Compensation that was paid to the individual while working for the Employer. Notwithstanding the preceding sentence, for Compensation "determination periods" beginning after December 31, 2008, an individual receiving a differential wage payment, as defined by Code §3401(h)(2), is treated as an Employee of the Employer making the payment. 1.31 "Nonelective Contribution" means the Employer's contributions to the Plan. 1.32 "Normal Retirement Age" means the age elected in the Adoption Agreement at which time a Participant's Account shall be nonforfeitable (if the Participant is employed by the Employer on or after that date). For money purchase pension plans, if the empl oyer enforces a mandatory retirement age, then the Normal Retirement Age is the lesser of that mandatory age or the age specified in the Adoption Agreement. 1.33 "Normal Retirement Date" means the date elected in the Adoption Agreement. 1.34 "1-Year Break in Service" means, if the Hour of Service method is used, the applicable computation period that is used to determine a Year of Service during which an Employee or Former Employee has not completed more than 500 Hours of Service. However, if the Employer selected, in the Service Crediting Method Section of the Adoption Agreement, to define a Year of Service as l ess than 1,000 Hours of Service, then the 500 Hours of Service in this definition of 1-Year Break in Service shall be proportionately reduced. Further, solely for the purpose of determining whether an Employee has incurred a 1 -Year Break in Service, Hours of Service shall be recognized for "authorized leaves of absence" and "maternity and paternity leaves of absence." For this purpose, Hours of Serv ice shall be credited for the computation period in which the absence from work begins, only if credit therefore is necessary to pr event the Employee from incurring a 1-Year Break in Service, or, in any other case, in the immediately following computation period. The Hours of Service credited for a "maternity or paternity leave of absence" shall be those which would normally have been credited but for such absence, or, in any case in which the Administrator is unable to determine such hours normally credited, eight (8) Hours of Service per day. The total Hours of Service required to be credited for a "maternity or paternity leave of absence" shall not exceed the number of Hours of Service needed to prevent the Employee from incurring a 1 -Year Break in Service. 2021/11/09 City Council Post Agenda Page 37 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 8 "Authorized leave of absence" means an unpaid, temporary cessation from active employment with the Employer pursuant to an established policy, whether occasioned by illness, military service, or any other reason. A "maternity or paternity leave of absence" means an absence from work for any period by reason of the Employee's pregnancy, birth of the Employee's child, placement of a child with the Employee in connection with the adoption of such child, or any absence for the purpose of caring for such child for a period immediately following such birth or placement. If the elapsed time method is elected in the Service Crediting Method Section of the Adoption Agreement, then a "1-Year Break in Service" means a twelve (12) consecutive month period beginning on the severance from service date or any anniversary thereof and ending on the next succeeding anniversary of such date; provided, however, that the Employee or Former Employee does not perform an Hour of Service for the Employer during such twelve (12) consecutive month period. 1.35 "Participant" means any Employee or Former Employee who has satisfied the requirements of Sections 3.1 and 3.2 and entered the Plan and is eligible to accrue benefits under the Plan. In addition, the term "Participant" also includes any individual who was a Participant (as defined in the preceding sentence) and who must continue to be taken into accoun t under a particular provision of the Plan (e.g., because the individual has an Account balance in the Plan). 1.36 "Participant Directed Account" means that portion of a Participant's interest in the Plan with respect to which the Participant has directed the investment in accordance with the Participant Direction Procedures. 1.37 "Participant Direction Procedures" means such instructions, guidelines or policies, the terms of which are incorporated herein, as shall be established pursuant to Section 4.10 and observed by the Administrator and applied and provided to Participants who have Participant Directed Accounts. 1.38 "Participating Employer" means an Employer which, with the consent of the "lead Employer" adopts the Plan pursuant to Section 10.1 or Article XI. In addition, unless the context means otherwise, the term "Employer" shall include any Participating Employer whic h shall adopt this Plan. 1.39 "Period of Service" means the aggregate of all periods of service commencing with an Employee's first day of employment or reemployment with the Employer or an Affiliated Employer and ending on the first day of a Period of Severance, or for benefit accrual purposes, ending on the severance from service date. The first day of employment or reemployment is the first day the Employee performs an Hour of Service. An Employee who incurs a Period of Severance of twelve (12) months or less will also receive service -spanning credit by treating any such period as a Period of Service for purposes of eligibility and vesting (but not benefit accrual). For purposes of benefit accrual, a Participant's whole year Periods of Service is equal to the sum of all full and partial periods of service, whethe r or not such service is continuous or contiguous, expressed in the number of whole years represented by such sum. For this purpose, fractional periods of a year will be expressed in terms of days. Periods of Service with any Affiliated Employer shall be recognized. Furthermore, Periods of Service with any predecessor employer that maintained this Plan shall be recognized. Periods of Service with any other predecessor employer shall be recognized as elected in the Adoption Agreement. In determining Periods of Service for purposes of vesting under the Plan, Periods of Service will be excluded as elected in the Adoption Agreement and as specified in Section 3.5. In the event the method of crediting service is amended from the Hour of Service method to the elapsed time method, an Employee will receive credit for a Period of Service consisting of: (a) A number of years equal to the number of Years of Service credited to the Employee before the computation period during which the amendment occurs; and (b) The greater of (1) the Periods of Service that would be credited to the Employee under the elapsed time method for service during the entire computation period in which the transfer occurs or (2) the service taken into account under the Hour of Service method as of the date of the amendment. In addition, the Employee will receive credit for service subsequent to the amendment commencing on the day after the last day of the computation period in which the transfer occurs. 1.40 "Period of Severance" means a continuous period of time during which an Employee is not employed by th e Employer. Such period begins on the date the Employee retires, quits or is discharged, or if earlier, the twelve (12) month anniversary of the date on which the Employee was otherwise first absent from service. In the case of an individual who is absent from work for "maternity or paternity" reasons, the twelve (12) consecutive month period beginning on the first anniversary of the first day of such absence shall not constitute a one year Period of Severance. For purposes of this paragraph, an absence from work for "maternity or paternity" reasons means an absence (a) by reason of the pregnancy of the individual, (b) by reason of the birth of a child of the individual, (c) by reason of the placement of a child with the individual in con nection with the 2021/11/09 City Council Post Agenda Page 38 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 9 adoption of such child by such individual, or (d) for purposes of caring for such child for a period beginning immediately foll owing such birth or placement. 1.41 "Plan" means this instrument (hereinafter referred to as Nationwide Financial Services, Inc. Governmental Defined Contribution Plan Basic Plan Document #09) and the Adoption Agreement as adopted by the Employer, including all amendments thereto and any appendix which is specifically permitted pursuant to the terms of the Plan. 1.42 "Plan Year" means the Plan's accounting year as specified in the Adoption Agreement. Unless there is a Short Plan Year, the Plan Year will be a twelve-consecutive month period. 1.43 "Qualified Convertible Hours" means the amount of sick and vacation pay plan hours eligible to be converted into Employer contributions. 1.44 "Regulation" means the Income Tax Regulations as promulgated by the Secretary of the Treasury or a delegate of the Secretary of the Treasury, and as amended from time to time. 1.45 "Retirement Date" means the date as of which a Participant retires for reasons other than Total and Permanent Disability, regardless of whether such retirement occurs on a Participant's Normal Retirement Date, Early Retirement Date or Late Retirement Date (see Section 6.1). 1.46 "Short Plan Year" means, if specified in the Adoption Agreement or as the result of an amendment, a Plan Year of less than a twelve (12) month period. If there is a Short Plan Year, the following rules shall apply in the administration of this Plan. In determining whether an Employee has completed a Year of Service (or Period of Service if the elapsed time method is used) for benefit acc rual purposes in the Short Plan Year, the number of the Hours of Service (or months of service if the elapsed time method is used) required shall be proportionately reduced based on the number of days (or months) in the Short Plan Year. 1.47 "Spouse" means, a spouse as determined under federal tax law. In addition, with respect to benefits or rights not mandated by la w, Spouse also includes a spouse as elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections). 1.48 "Terminated Participant" means a person who has been a Participant, but whose employment has been terminated with the Employer (including an Affiliated Employer) or applicable Participating Employer, other than by death, Total and Permanent Di sability or retirement. 1.49 "Total and Permanent Disability" means, unless otherwise specified in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. The disability of a Participant shall be determined by a licensed phys ician. However, if the condition constitutes total disability under the federal Social Security Acts, the Administrator may rely upon such determination that the Participant is Totally and Permanently Disabled for the purposes of this Plan. The determination shall be applied uniform ly to all Participants. 1.50 "Trustee" means any person or entity that is named in the Adoption Agreement or has otherwise agreed to serve as Trustee, or any successors thereto. In addition, unless the context means, or the Plan provides, otherwise, the term "Trustee" shall mean the Insurer if the Plan is fully insured. 1.51 "Trust Fund" means, if the Plan is funded with a trust, the assets of the Plan and Trust as the same shall exist from time to time. 1.52 "Valuation Date" means the date or dates specified in the Adoption Agreement. Regardless of any election to th e contrary, for purposes of the determination and allocation of earnings and losses, the Valuation Date shall include the Anniversary Date an d may include any other date or dates deemed necessary or appropriate by the Administrator for the valuation of Participants' Accounts during the Plan Year, which may include any day that the Trustee (or Insurer), any transfer agent appointed by the Trustee (or Insurer) or th e Employer, or any stock exchange used by such agent, are open for business. 1.53 "Vested" means the nonforfeitable portion of any Account maintained on behalf of a Participant. 1.54 "Year of Service" means the computation period of twelve (12) consecutive months, herein set forth, and during which an Employee has completed at least 1,000 Hours of Service (unless a different number of Hours of Service is specified in the Adoption Agreement). For purposes of eligibility for participation, the initial computation period shall begin with the date on which the Employee first performs an Hour of Service (employment commencement date). Unless otherwise elected in the Service Crediting Method Section of the Adoption Agreement, the succeeding computation periods shall begin on the anniversary of the Employee's employment commenceme nt date. However, unless otherwise elected in the Adoption Agreement, if one (1) Year of Service or less is required as a condition of eligibility, then the computation period after the initial computation period shall shift to the current Plan Year which incl udes the 2021/11/09 City Council Post Agenda Page 39 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 10 anniversary of the date on which the Employee first performed an Hour of Service, and subsequent computation periods shall be the Plan Year. If there is a shift to the Plan Year, an Employee who is credited with the number of Hours of Service to be credited wi th a Year of Service in both the initial eligibility computation period and the first Plan Year which commences prior to the first anniver sary of the Employee's initial eligibility computation period will be credited with two (2) Years of Service for purposes of eligibility to participate. If two (2) (or more) Years of Service are required as a condition of eligibility, a Participant will only have completed two (2) (or more) Years of Service for eligibility purposes upon completing two (2) or more consecutive Years of Service without an intervening 1-Year Break in Service. For vesting purposes, and all other purposes not specifically addressed in this Section, the computation period shall be the period elected in the Service Crediting Method Section of the Adoption Agreement. If no election is made in the Service Crediting Method Section of the Adoption Agreement, then the computation period shall be the Plan Year. In determining Years of Service for purposes of vesting under the Plan, Years of Service will be excluded as elected in the Adoption Agreement and as specified in Section 3.5. Years of Service and 1-Year Breaks in Service for eligibility purposes will be measured on the same eligibility computation period. Years of Service and 1-Year Breaks in Service for vesting purposes will be measured on the same vesting computation period. Years of Service with any Affiliated Employer shall be recognized. Furthermore, Years of Service with any predecessor employe r that maintained this Plan shall be recognized. Years of Service with any other employer shall be recognized as elected in the Adoption Agreement. In the event the method of crediting service is amended from the elapsed time method to the Hour of Service method, an Employ ee will receive credit for Years o f Service equal to: (a) The number of Years of Service equal to the number of 1-year Periods of Service credited to the Employee as of the date of the amendment; and (b) In the computation period which includes the date of the amendment, a number of Hours of Service (using the Hours of Service equivalency method, if any, elected in the Adoption Agreement) to any fractional part of a year credited to the Emplo yee under this Section as of the date of the amendment. ARTICLE II ADMINISTRATION 2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER (a) Appointment of Trustee (or Insurer) and Administrator. In addition to the general powers and responsibilities otherwise provided for in this Plan, the Employer shall be empowered to appoint and remove one or more Trustees (or Insurers) and Administrators from time to time as it deems necessary for the proper administration of the Plan to ensure that the Plan is being operated for the exclusive benefit of the Participants and their Beneficiaries in accordance with the terms of the Plan and the Code. The Employer may appoint counsel, specialists, advisers, agents (including any nonfiduciary agent) and other person s as the Employer deems necessary or desirable in connection with the exercise of its fiduciary duties under this Plan. The Employer m ay compensate such agents or advisers from the assets of the Plan as fiduciary expenses (but not including any business (settlor) expenses of the Employer), to the extent not paid by the Employer. (b) Appointment of Investment Manager. The Employer may appoint, at its option, one or more Investment Managers, investment advisers, or other agents to provide investment direction to the Trustee (or Insurer) with respect to any or all of the Plan assets. Such appointment shall be given by the Employer in writing in a form acceptable to the Trustee (or Insurer) and shall specifically identify the Plan assets with respect to which the Investment Manager or other agent shall have the authority to direct the investment. 2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY The Employer may appoint one or more Administrators. If the Employer does not appoint an Administrator, the Employer will be the Administrator. Any person, including, but not limited to, the Employees of the Employer, shall be eligible to serve as an Administrator. Any person so appointed shall signify acceptance by filing written acceptance with the Employer. An Administrator may resign by delivering a written resignation to the Employer or be removed by the Employer by delivery of written notice of removal, to t ake effect at a date specified therein, or upon delivery to the Administrator if no date is specified. Upon the resignation or removal of an Administrator, the Employer may designate in writing a successor to this position. 2021/11/09 City Council Post Agenda Page 40 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 11 2.3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES If more than one person is appointed as Administrator, then the responsibilities of each Administrator may be specified by th e Employer and accepted in writing by each Administrator. If no such delegation is made by the Employer, then the Administrators may allocate the responsibilities among themselves, in which event the Administrators shall notify the Employer and the Trustee (or Insurer) in writing of such action and specify the responsibilities of each Administrator. The Trustee (or Insurer) thereafter shall accept and rely upon any documents executed by the appropriate Administrator until such time as the Employer or the Administrators file with the T rustee (or Insurer) a written revocation of such designation. 2.4 POWERS AND DUTIES OF THE ADMINISTRATOR The primary responsibility of the Administrator is to administer the Plan for the exclusive benefit of the Participants and t heir Beneficiaries, subject to the specific terms of the Plan. The Administrator shall administer the Plan in accordance with its terms and shall have the power and discretion to construe the terms of the Plan and determine all questions arising in connection with the ad ministration, interpretation, and application of the Plan. Benefits under this Plan will be paid only if the Administrator decides in its discretion that the applicant is entitled to them. Any such determination by the Administrator shall be conclusive and binding upon all persons. The Administrator may establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manne r and to such extent as shall be deemed necessary or advisable to carry out the purpose of the Plan; provided, however, that any pr ocedure, discretionary act, interpretation or construction shall be done based upon uniform principles consistently applied and shall be consistent with the intent that the Plan continue to be deemed a qualified plan under the terms of Code §401(a). The Ad ministrator shall have all powers necessary or appropriate to accomplish its duties under this Plan. The Administrator shall be charged with the duties of the general administration of the Plan and the powers necessary to carr y out such duties as set forth under the terms of the Plan, including, but not limited to, the following: (a) the discretion to determine all questions relating to the eligibility of an Employee to participate or remain a Participant hereunder and to receive benefits under the Plan; (b) the authority to review and settle all claims against the Plan, including claims where the settlement amount cannot be calculated or is not calculated in accordance with the Plan's benefit formula. This authority specifically permits the Admini strator to settle disputed claims for benefits and any other disputed claims made against the Plan; (c) to compute, certify, and direct agents of the Plan respect to the amount and the kind of benefits to which any Participant sh all be entitled hereunder; (d) to authorize and direct the Trustee (or Insurer) with respect to all discretionary or otherwise directed disbursements from th e Trust Fund; (e) to maintain all necessary records for the administration of the Plan; (f) to interpret the provisions of the Plan and to make and publish such rules for regulation of the Plan that are consistent with the terms hereof; (g) to determine the size and type of any Contract to be purchased from any Insurer, and to designate the Insurer from which such Contract shall be purchased; (h) to compute and certify to the Employer and to the Trustee (or Insurer) from time to time the sums of money necessary or desirable to be contributed to the Plan; (i) to consult with the Employer and agents of the Plan regarding the short and long-term liquidity needs of the Plan; (j) to assist Participants regarding their rights, benefits, or elections available under the Plan; and (k) to determine the validity of, and take appropriate action with respect to, any "qualified domestic relat ions order" received by it. 2.5 RECORDS AND REPORTS The Administrator shall keep a record of all actions taken and shall keep all other books of account, records, and other data that may be necessary for proper administration of the Plan and shall be responsible for supplying all information and reports to the Internal Revenue Service, Participants, Beneficiaries and others as required by applicable law. 2.6 APPOINTMENT OF ADVISERS The Administrator may appoint counsel, specialists, advisers, agents (including nonfiduciary agents such as third party administrative services providers and recordkeepers) and other persons as the Administrator deems necessary or desirable in connection 2021/11/09 City Council Post Agenda Page 41 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 12 with the administration of this Plan, including but not limited to agents and advisers to assist with the administration and management of the Plan, and thereby to provide, among such other duties as the Administrator may appoint, assistance with mainta ining Plan records and the providing of investment information to the Plan's investment fiduciaries and, if applicable, to Plan Participants. 2.7 INFORMATION FROM EMPLOYER The Employer shall supply full and timely information to the Administrator on all pertinent facts as the Administrator may require in order to perform its functions hereunder and the Administrator shall advise appropriate agents of the Plan of such of the foregoing facts as may be pertinent to the agent's duties to the Plan. The Administrator may rely upon such information as is supplied by the Employer and shall have no duty or responsibility to verify such information. 2.8 PAYMENT OF EXPENSES All reasonable expenses of administration may be paid out of the Plan assets unless paid by the Employer. Such expenses shall include any expenses incident to the functioning of the Administrator, or any person or persons retained or appointed by any named fiduciary incident to the exercise of their duties under the Plan, including, but not limited to, fees of accountants, counsel, Investment Managers, agents (including nonfiduciary agents such as third party administrative services providers and recordkeepers) appo inted for the purpose of assisting the Administrator or Trustee (or Insurer) in carrying out the instructions of Participants as to the dir ected investment of their Accounts (if permitted) and other specialists and their agents and other costs of administering the Plan. In addition, unless specifically prohibited under statute, regulation or other guidance of general applicability, the Administrator may charge to the Account of an individual Participant a reasonable charge to offset the cost of making a distribu tion to the Participant, Beneficiary, or Alternate Payee. If liquid assets of the Plan are insufficient to cover the fees of the Trustee (or Insurer) or the Administrator, then Plan asse ts shall be liquidated to the extent necessary for such fees. In the event any part of the Plan assets becomes subject to tax, all taxes incurred will be paid from the Plan assets. Until paid, the expenses shall constitute a liability of the Trust Fund. 2.9 MAJORITY ACTIONS Except where there has been an allocation and delegation of administrative authority pursuant to Section 2.3, if there is more than one Administrator, then they shall act by a majority of their number, but may authorize one or more of them to sign all paper s on their behalf. 2.10 CLAIMS PROCEDURES Any person who believes that he or she is entitled to a benefit under the Plan shall file with the Administrator a written no tice of claim for such benefit within 45 days of such right accruin g or shall forever waive entitlement to such benefit. Within 120 days after its receipt of such written notice of claim, the Administrator shall either grant or deny such claim provided, however, any delay on the part of the Administrator is arriving at a decision shall not adversely affect benefits payable under a granted claim. The Administrator may, however, implement alternative claims procedures in lieu of those provided in this Plan. The implementation of such procedure s shall not be considered a Plan amendment that affects an Employer's reliance on this volume submitter plan. The Administrator and all persons determining or reviewing claims have full discretion to determine benefit claims under the Plan. Any interpretation, determination or other action of such persons shall be subject to review only if it is arbitrary or capricious or otherwise an abuse of discretion. Any review of a final decision or action of the persons reviewing a claim shall be based only on such evidence presented to or considered by such persons at the time they made the decision that is the subject of review. ARTICLE III ELIGIBILITY 3.1 CONDITIONS OF ELIGIBILITY An Eligible Employee shall be eligible to participate hereunder on the date such Employee has satisfied the conditions of eligibility, if any, elected in the Adoption Agreement. 3.2 EFFECTIVE DATE OF PARTICIPATION (a) General rule. An Eligible Employee who has satisfied the conditions of eligibility pursuant to Section 3.1 shall become a Participant effective as of the date elected in the Adoption Agreement. Regardless of any election in the Adoption Agreement to the contrary, an Eligible Employee who has satisfied the maximum age (26) and service requirements (one (1) Year (or Period) of Service (or more than one (1) year if full and immediate vesting)) and who is otherwise entitled to participate, will become a Participant no later than the earlier of (1) six (6) months after such requirements are satisfied, or (2) the first day of the first Plan Year after such requirements are satisfied, unless the Employee separates from service before such participation date. (b) Rehired Employee. If an Eligible Employee is not employed on the date determined pursuant to (a) above, but is reemployed before a 1-Year Break in Service has occurred, then such Eligible Employee shall become a Participant on the date of reemployment or, if later, the date that the Employee would have otherwise entered the Plan had the Employee not terminated 2021/11/09 City Council Post Agenda Page 42 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 13 employment. If such Employee incurs a 1-Year Break in Service, then eligibility will be determined under the 1 -Year Break in Service rules set forth in Section 3.5. (c) Recognition of predecessor service. Unless specifically provided otherwise in the Adoption Agreement, an Eligible Employee who satisfies the Plan's eligibility requirement conditions by reason of recognition of service with a predecessor employer will become a Participant as of the day the Plan credits service with a predecessor employer or, if later, the date the Employee would have otherwise entered the Plan had the service with the predecessor employer been service with the Employer. (d) Noneligible to eligible class. If an Employee, who has satisfied the Plan's eligibility requirements and would otherwise have become a Participant, shall go from a classification of a noneligible Employee to an Eligible Employee, such Employee shall become a Participant on the date such Employee becomes an Eligible Employee or, if later, the date that the Employee would have otherwise entered the Plan had the Employee always been an Eligible Employee. (e) Eligible to noneligible class. If an Employee, who has satisfied the Plan's eligibility requirements and would otherwise become a Participant, shall go from a classification of an Eligible Employee to a noneligible class of Employees, such Employee shall become a Participant in the Plan on the date such Employee again becomes an Eligible Employee, or, if later, the date that the Employee would have otherwise entered the Plan had the Employee always been an Eligible Employee. However, if such Employee incurs a 1-Year Break in Service, eligibility will be determined under the 1-Year Break in Service rules set forth in Section 3.5. 3.3 DETERMINATION OF ELIGIBILITY The Administrator shall determine the eligibility of each Employee for participation in the Plan based upo n information furnished by the Employer. Such determination shall be conclusive and binding upon all persons, as long as the same is made pursuant to the Plan. 3.4 TERMINATION OF ELIGIBILITY In the event a Participant shall go from a classification of an Eligible Employee to an ineligible Employee, such Participant shall continue to vest in the Plan for each Year of Service (or Period of Service, if the elapsed time method is used) completed wh ile an ineligible Employee, until such time as the Participant's Account is forfeited or distributed pursuant to the terms of the Plan. Addition ally, the Participant's interest in the Plan shall continue to share in the earnings of the Trust Fund in the same manner as Partic ipants. 3.5 REHIRED EMPLOYEES AND 1-YEAR BREAKS IN SERVICE (a) Rehired Participant/immediate re-entry. If any Former Employee who had been a Participant is reemployed by the Employer, then the Employee shall become a Participant as of the reemployment date, unless the Employee is not an Eligible Employee, the Employee does not satisfy the eligibility conditions taking into account prior service to the extent such prior service is not disregarded pursuant to Section 3.5(d) below. If such prior service is disregarded, then the rehired Eligible Employee shall be treated as a new hire. (b) Rehired Eligible Employee who satisfied eligibility. If any Eligible Employee had satisfied the Plan's eligibility requirements but, due to a severance of employment, did not become a Participant, then such Eligible Employee shall become a Participant as of the later of (1) the entry date on which he or she would have entered the Plan had there been no severance of employment, or (2) the date of his or her re-employment. Notwithstanding the preceding, if the rehired Eligible Employee's prior service is disregarded pursuant to Section 3.5(d) below, then the rehired Eligible Employee shall be treated as a new hire. (c) Rehired Eligible Employee who had not satisfied eligibility. If any Eligible Employee who had not satisfied the Plan's eligibility requirements is rehired after severance from employment, then such Eligible Employee shall become a Participant i n the Plan in accordance with the eligibility requirements set forth in the Adoption Agreement and the Plan. However, in applying a ny shift in an eligibility computation period, the Eligible Employee is not treated as a new hire unless prior service is disreg arded in accordance with Section 3.5(d) below. (d) Reemployed after five (5) 1-Year Breaks in Service ("rule of parity" provisions). If the Employer elects in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections) to apply the "rule of parity" provisions, then if any Employee is reemployed after five (5) 1-Year Breaks in Service has occurred, Years of Service (or Periods of Service if the elapsed time method is being used) shall include Years of Service (or Periods of Service if the elapsed time method is being used) prior to the 5-Year Break in Service subject to the rules set forth below. The Employer may elect in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections) to make the provisions of this paragraph applicable for purposes of eligibility and/or vesting. (1) In the case of a Former Employee who under the Plan does not have a nonforfeitable right to any interest in the Plan resulting from Employer contributions, Years of Service (or Periods of Service) before a period of 1-Year Breaks in Service will not be taken into account if the number of consecutive 1-Year Breaks in Service equals or exceeds the greater of (i) five (5) or (ii) the aggregate number of pre-break Years of Service (or Periods of Service). Such aggregate number of Years of Service (or Periods of Service) will not include any Years of Service (or Periods of Service) disregarded under the preceding sentence by reason of prior 1-Year Breaks in Service; 2021/11/09 City Council Post Agenda Page 43 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 14 (2) A Former Employee who has not had Years of Service (or Periods of Service) before a 1 -Year Break in Service disregarded pursuant to (1) above, shall participate in the Plan as of the date of reemployment, or if later, as of the date the Former Employee would otherwise enter the Plan pursuant to Sections 3.1 and 3.2 taking into account all service not disregarded. (e) Vesting after five (5) 1-Year Breaks in Service. If a Participant incurs five (5) consecutive 1-Year Breaks in Service, the Vested portion of such Participant's Account attributable to pre-break service shall not be increased as a result of post-break service. In such case, separate accounts will be maintained as follows: (1) one account for nonforfeitable benefits attributable to pre-break service; and (2) one account representing the Participant's Employer-derived Account balance in the Plan attributable to post-break service. (f) Waiver of allocation or contribution conditions. If the Employer elects in the Adoption Agreement to waive allocations or contributions due to retirement (early or normal retirement), then a Participant shall only be entitled to one such waiver. Accordingly, if a Participant retires and allocation or contribution conditions are waived, then the Plan will not waive the allocation or contribution conditions if the Participant is rehired and then retires again. 3.6 OMISSION OF ELIGIBLE EMPLOYEE; INCLUSION OF INELIGIBLE EMPLOYEE If, in any Plan Year, any Employee who should be included as a Participant in the Plan is erroneously omitted and discovery of such omission is not made until after a contribution by the Employer for the year has been made and allocated, or any person who s hould not have been included as a Participant in the Plan is erroneously included, then the Employer may take corrective actions consistent with, the IRS Employee Plans Compliance Resolution System (i.e., Rev. Proc. 2013-12 or any subsequent guidance). ARTICLE IV CONTRIBUTION AND ALLOCATION 4.1 FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION (a) For a Money Purchase Plan. All contributions made by the Employer will be made in cash. For each Plan Year, the Employer will contribute to the Plan the following: (1) The amount of any mandatory Employee contributions and after-tax voluntary Employee contributions made by Participants; plus (2) On behalf of each Participant eligible to share in allocations, for each year of such Participant's participation in this Plan, the Employer will contribute the amount specified in the Adoption Agreement; plus (3) If elected in the Adoption Agreement, a matching contribution equal to the amount specified in the Adoption Agreement of each Participant eligible to share in the allocations of the matching contribution, which amount shall be deemed an Employer matching contribution. (b) For a 401(a) Plan. For each Plan Year, the Employer will (or may with respect to any discretionary contributions) contribute to the Plan: (1) The amount of any mandatory Employee contributions and after-tax voluntary Employee contributions; plus (2) If elected in the Adoption Agreement, a matching contribution equal to the amount specified in the Adoption Agreement of each Participant eligible to share in the allocations of the matching contribution, which amount shall be deemed an Employer matching contribution; plus (3) If elected in the Adoption Agreement, an Employer contribution equal to a specified contribution or a discretionary amount determined each year by the Employer. (c) Frozen Plans. The Employer may designate that the Plan is a frozen Plan at the Contribution Types S ection of the Adoption Agreement. As a frozen Plan, the Employer will not make any Employer contributions with respect to Compensation earned after the date the Plan is frozen. In addition, once a Plan is frozen, no additional Employees shall become Participants. (d) Union Employees. Regardless of any provision in this Plan to the contrary, Employees whose employment is governed by a collective bargaining agreement between the Employer and "employee representatives" under which retirement benefits were the subject of good faith bargaining shall be eligible to participate in this Plan to the extent of employment covered by such ag reement provided the agreement provides for coverage in the Plan. The benefits, including but not limited to, contributions, alloc ations and 2021/11/09 City Council Post Agenda Page 44 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 15 vesting, under this Plan shall be those set forth in the collective bargaining agreement, which is hereby incorporated by ref erence and attached as an addendum to the Adoption Agreement. For this purpose, the term "employee representatives" does not include any organization more than half of whose members are employees who are owners, officers, or executives of the Employer. If a Participant performs services both as a collectively bargained Employee and as a non-collectively bargained Employee, then the Participant's Hours of Service and Compensation in each respective category are treated separately for purposes of the Plan. (e) Social Security Replacement Plan. The Employer may elect under the Adoption Agreement to indicate its intention to qualify this Plan as a Social Security Replacement Plan under Code §3121(b)(7)(F). If the Employer makes the election to qualify the Plan as a Social Security Replacement Plan, the Plan will allocate a minimum contribution amount (Employer and Employee Contributions) of seven and one-half percent (7.5%) of Compensation. The Plan will consider each Participant a member of a retirement system that provides benefits comparable to the benefits he or she would have received under Social Security. In t he case of part-time, seasonal and temporary Employees, the benefit will be nonforfeitable. 4.2 TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION Unless otherwise provided by contract or law, the Employer may make its contribution to the Plan for a particular Plan Year at such time as the Employer, in its sole discretion, determines. If the Employer makes a contribution for a particular Plan Year aft er the close of that Plan Year, the Employer will designate to the Administrator the Plan Year for which the Employer is making its contribution. 4.3 ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS (a) Separate accounting. The Administrator shall establish and maintain an Account in the name of each Participant to which the Administrator shall credit as of each Anniversary Date, or other Valuation Date, all amounts allocated to each such Participant as set forth herein. (b) Allocation of contributions. The Employer shall provide the Administrator with all information required by the Administrator to make a proper allocation of the Employer's contribution, if any, for each Plan Year. Within a reasonable period of time af ter the date of receipt by the Administrator of such information, the Administrator shall allocate any contributions as follows: (1) Money Purchase Pension Plan. For a Money Purchase Plan: (i) The Employer's contribution shall be allocated to each Participant's Account in the manner set forth in Section 4.1 herein and as specified in the Adoption Agreement. (ii) Notwithstanding the preceding provisions, a Participant shall only be eligible to share in the allocations of the Employer's contribution for the year if the Participant is an Eligible Employee at any time during the year and the conditions set forth in the Adoption Agreement are satisfied. (2) 401(a) Plan. For a 401(a) Plan (which is a profit sharing plan within the meaning of Code §401(a)): (i) The Employer's contribution shall be allocated to each Participant's Account in accordance with the allocation method below that corresponds to the elections in the Adoption Agreement. The Employer shall provide the Administrator with all information required by the Administrator to make a proper allocation of the Employer's contribution for each Plan Year. Within a reasonable period of time after the date of receipt by the Administrator of such information, the allocation shall be made in accordance with the provisions below. (ii) Notwithstanding the preceding provision, a Participant shall only be eligible to share in the allocations of the Employer's contribution for the year if the Participant is an Eligible Employee at any time during the year and the conditions set forth in the Adoption Agreement are satisfied. (c) Gains or losses. Except as otherwise elected in the Adoption Agreement or as provided in Section 4.10 with respect to Participant Directed Accounts, as of each Valuation Date, before allocation of any Employer contri butions and Forfeitures, any earnings or losses (net appreciation or net depreciation) of the Trust Fund (exclusive of assets segregated for distribution) shall be allocated in the same proportion that each Participant's nonsegregated accounts bear to the total of all Participants' nonsegregated accounts as of such date. Unless otherwise specified in the Adoption Agreement, the nonsegregated account will be reduced by any distributions made prior to the Valuation Date. (d) Contracts. Participants' Accounts shall be debited for any insurance or annuity premiums paid, if any, and credited with any dividends or interest received on Contracts. (e) Forfeitures. Forfeitures must be disposed of no later than the last day of the Plan Year following the Plan Year in which the Forfeiture occurs. The Employer must direct the Administrator to use Forfeitures to satisfy any contribution that may be required pursuant to Section 6.10 or to pay any Plan expenses. With respect to a Money Purchase Plan, any remaining Forfei tures will be disposed of in accordance with the elections in the Adoption Agreement. With respect to all other plans, the Employer must di rect 2021/11/09 City Council Post Agenda Page 45 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 16 the Administrator to use any remaining Forfeitures in accordance with any combination of the following methods, including a different method based on the source of such Forfeitures. Forfeitures may be: (1) Added to any Employer discretionary contribution and allocated in the same manner (2) Used to reduce any Employer contribution (3) Added to any Employer matching contribution and allocated as an additional matching contribution (4) Allocated to all Participants in the same proportion that each Participant's Compensation for the Plan Year bears to the Compensation of all Participants for such year If Forfeitures are allocated to Participants (rather than used to reduce Employer contributions) then the Employer must also direct the Administrator as to which Participants are eligible to share in such allocation. The maximum allocation conditions the Employer may require are that Participants complete one (1) Year of Service (or Period of Service) and be employed on the last day of the Plan Year in order to share in the allocation of Forfeitures for such Plan Year. (f) Delay in processing transactions. Notwithstanding anything in this Section to the contrary, all information necessary to properly reflect a given transaction may not be available until after the date specified herein for processing such transacti on, in which case the transaction will be reflected when such information is received and processed. Subject to express limits that may be imposed under the Code, the processing of any contribution, distribution or other transaction may be delayed for any legitima te business reason (including, but not limited to, failure of systems or computer programs, failure of the means of the transmission of data, force majeure, the failure of a service provider to timely receive values or prices, and correction for errors or omissions or the errors or omissions of any service provider). The processing date of a transaction will be binding for all purposes of the Plan. 4.4 MAXIMUM ANNUAL ADDITIONS (a) Calculation of "annual additions." (1) If a Participant does not participate in, and has never participated in another qualified plan maintained by the "employer," or a welfare benefit fund (as defined in Code §419(e)) maintained by the "employer," or an individual medical benefit account (as defined in Code §415(l)(2)) maintained by the "employer," or a simplified employee pension (as defined in Code §408(k)) maintained by the "employer" which provides "annual additions," the amount of "annual additions" which may be credited to the Participant's Accounts for any Limitation Year shall not exceed the lesser of the "maximum permissible amount" or any other limitation contained in this Plan. If the "employer" contribution that would otherwise be contributed or allocated to t he Participant's Accounts would cause the "annual additions" for the Limitation Year to exceed the "maximum permissible amount," the amount contributed or allocated will be reduced so that the "annual additions" for the Limitation Year will equa l the "maximum permissible amount," and any amount in excess of the "maximu m permissible amount" which would have been allocated to such Participant may be allocated to other Participants. (2) Prior to determining the Participant's actual 415 Compensation for the Limitation Year, the "employer" may determine the "maximum permissible amount" for a Participant on the basis of a reasonable estimation of the Participant's 415 Compensation for the Limitation Year, uniformly determined for all Participants similarly situated. (3) As soon as is administratively feasible after the end of the Limitation Year the "maximum permissible amount" for such Limitation Year shall be determined on the basis of the Participant's actual 415 Compensation for such Limitation Year. (b) "Annual additions" if a Participant is in more than one plan. (1) Except as provided in Subsection (c) below, this Subsection applies if, in addition to this Plan, a Participant is covered under another "employer" maintained qualified defined contribution plan, welfare benefit fund (as defined in Code §419(e)), individual medical benefit account (as defined in Code §415(l)(2)), or simplified employee pension (as defined in Code §408(k)), which provides "annual additions," during any Limitation Year. The "annual additions" which may be credited to a Participant's Accounts under this Plan for any such Limitation Year shall not exceed the "maximum permissible amount" reduced by the "annual additions" credited to a Participant's Accounts under the other plans and welfare benefit funds, individual medical benefit accounts, and simplified employee pensions for the same Limitation Year. If the "annual additions" with respect to the Participant under other defined contribution plans and welfare benefit funds maintained by the "employer" are less than the "maximum permissible amount" and the "employer" contribution that would otherwise be contributed or allocated to the Participant's Accounts under this Plan would cause the "annual additions" for the Limitation Year to exceed this limitation, the amount contributed or allocated will be reduced so that the "annual additions" under all such plans and welfare benefit funds for the Limitation Year will equal the "maximum permissible amount," and any amount in excess of the "maximum permissible amount" which would have been allocated to such Participant may be allocated to other Participants. If the "annual additions" with respect to the Participant under such other defined contribution plans, welfare benefit funds, individual medical benefit accounts and simplified employee pensions in the aggregate are equal to or greater than the 2021/11/09 City Council Post Agenda Page 46 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 17 "maximum permissible amount," no amount will be contributed or allocated to the Participant's Account under this Plan for the Limitation Year. (2) Prior to determining the Participant's actual 415 Compensation for the Limitation Year, the "employer" may determine the "maximum permissible amount" for a Participant on the basis of a reasonable estimation of the Participant's 415 Compensation for the Limitation Year, uniformly determined for all Participants similarly situated. (3) As soon as is administratively feasible after the end of the Limitation Year, the "maximum permissible amount" for the Limitation Year will be determined on the basis of the Participant's actual 415 Compensation for the Limitation Year. (4) If, pursuant to Section 4.4(b)(2), a Participant's "annual additions" under this Plan and such other plans would result in an "excess amount" for a Limitation Year, the "excess amount" will be deemed to consist of the "annual additions" last allocated , except that "annual additions" attributable to a simplified employee pension will be deemed to have been allocated first, followed by "annual additions" to a welfare benefit fund or individual medical benefit account, and then by "annual additions " to a plan subject to Code §412, regardless of the actual allocation date. (5) If an "excess amount" was allocated to a Participant on an allocation date of this Plan which coincides with an allocation date of another plan, the "excess amount" attributed to this Plan will be the product of: (i) the total "excess amount" allocated as of such date, times (ii) the ratio of (A) the "annual additions" allocated to the Participant for the Limitation Year as of such date under this Plan to (B) the total "annual additions" allocated to the Participant for the Limitation Year as of such date under this and all the other qualified defined contribution plans. (c) Coverage under another plan. If the Participant is covered under another qualified defined contribution plan maintained by the "employer," "annual additions" which may be credited to the Participant's Accounts under this Plan for any Limitation Yea r will be limited in accordance with Section 4.4(b), unless the "employer" provides other limitations in Appendix A t o the Adoption Agreement (Special Effective Dates and Other Permitted Elections). (d) Time when "annual additions" credited. An "annual addition" is credited to the Account of a Participant for a particular Limitation Year if it as allocated to the Participant's Account under the Plan as of any date within that Limitation Year. However, an amount is not deemed allocated as of any date within a Limitation Year if such allocation is dependent upon participation in the Plan as of any date subsequent to such date. For purposes of this subparagraph, "employer" contributions are treated as credited to a Participant's Account for a particular Limitation Year only if the contributions are actually made to the Plan no later than the 15th day of the tenth calendar month following the end of the calendar year or Fiscal Year (as applicable, depending on the basis on which the Employer keeps its books) with or within which the particular Limitation Year ends. (e) Definitions. For purposes of this Section, the following terms shall be defined as follows: (1) "Annual additions" means the sum credited to a Participant's Accounts for any Limitation Year of (a) "employer" contributions, (b) Employee contributions (except as provided below), (c) Forfeitures, (d) amounts allocated to an individual medical benefit account, as defined in Code §415(l)(2), which is part of a pension or annuity plan maintained by the "employer," (e) amounts derived from contributions paid or accrued which are attributable to post -retirement medical benefits allocated to the separate account of a key employee (as defined in Code §419A(d)(3)) under a welfare benefit fund (as defined in Code §419(e)) maintained by the "employer" and (f) allocations under a simplified employee pension. Except, however, the Compensation percentage limitation referred to in paragraph (e)(5)(ii) below shall not apply to: (1) any contribution for medical benefits (within the meaning of Code §419A(f)(2)) after separation from service which is otherwise treated as an "annual addition," or (2) any amount otherwise treated as an "annual addition" under Code §415(l)(1). (i) Restorative payments. "Annual additions" for purposes of Code §415 and this Section shall not include restorative payments. A restorative payment is a payment made to restore losses to a Plan resulting from actions by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under applicable federal or state la w, where Participants who are similarly situated are treated similarly with respect to the payments. Generally, payments are restorative payments only if the payments are made in order to restore some or all of the Plan's losses due to an action (or a failure to act) that creates a reasonable risk of liability for such a breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). Payments made to the Plan to make up for losses due merely to market fluctuations and other payments that are not made on account of a reasonable risk of liability for breach of a fiduciary duty are not restorative payments and generally constitute contributions that are considered "annual additions." (ii) Other amounts. "Annual additions" for purposes of Code §415 and this Section shall not include: (A) The direct transfer of a benefit or employee contributions from a qualified plan to this Plan; (B) Rollover contributions (as described 2021/11/09 City Council Post Agenda Page 47 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 18 in Code §§401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)); (C) Repayments of loans made to a Participant from the Plan; and (D) Repayments of amounts described in Code §411(a)(7)(B) (in accordance with Code §411(a)(7)(C)) and Code §411(a)(3)(D) or repayment of contributions to a governmental plan (as defined in Code §414(d)) as described in Code §415(k)(3), as well as Employer restorations of benefits that are required pursuant to such repayments. (2) "Defined contribution dollar limitation" means $40,000 as adjusted under Code §415(d). (3) "Employer" means, for purposes of this Section, the Employer that adopts this Plan and all Affiliated Employers. (4) "Excess amount" means the excess of the Participant's "annual additions" for the Limitation Year over the "maximum permissible amount." (5) "Maximum permissible amount" means, except to the extent permitted under this Plan and Code §414(v), the maximum "annual addition" that may be contributed or allocated to a Participant's Accounts under the Plan for any Limitation Year, which shall not exceed the lesser of: (i) the "defined contribution dollar limitation," or (ii) one hundred percent (100%) of the Participant's 415 Compensation for the Limitation Year. The 415 Compensation Limitation referred to in (ii) shall not apply to any contribution for medical benefits after separation from service (within the meaning of Code §§401(h) or 419A(f)(2)) which is otherwise treated as an "annual addition." If a short Limitation Year is created because of an amendment changing the Limitation Year to a different twelve (12) consecutive month period, the "maximum permissible amount" will not exceed the "defined contribution dollar limitation" multiplied by a fraction, the numerator of which is the number of months in the short Limitation Year and the denominator of which is twelve (12). (f) Special rules. (1) Aggregation of plans. For purposes of applying the limitations of Code §415, all defined contribution plans (without regard to whether a plan has been terminated) ever maintained by the "employer" (or a "predecessor employer") under which the Participant receives "annual additions" are treated as one defined contribution plan. For purposes of this Section: (i) A former "employer" is a "predecessor employer" with respect to a participant in a plan maintained by an "employer" if the "employer" maintains a plan under which the participant had accrued a benefit while performing services for the former "employer", but only if that benefit is provided under the plan maintained by the "employer". For this purpose, the "formerly affiliated plan" rules in Regulation §1.415(f)-1(b)(2) apply as if the "employer" and "predecessor employer" constituted a single employer under the rules described in Regulation §1.415(a)-1(f)(1) and (2) immediately prior to the "cessation of affiliation" (and as if they constituted two, unrelated employers under the rules described in Regulation §1.415(a)-1(f)(1) and (2) immediately after the "cessation of affiliation") and "cessation of affiliation" was the event that gives rise to the "predecessor employer" relationship, such as a transfer of benefits or plan sponsorship. (ii) With respect to an "employer" of a Participant, a former entity that antedates the "employer" is a "predecessor employer" with respect to the Participant if, under the facts and circumstances, the "employer" constitutes a continuation of all or a portion of the trade or business of the former entity. (2) Break-up of an affiliated employer or an affiliated service group. For purposes of aggregating plans for Code §415, a "formerly affiliated plan" of an "employer" is taken into account for purposes of applying the Code §415 limitations to the "employer," but the "formerly affiliated plan" is treated as if it had terminated immediately prior to the "cessation of affiliation." For purposes of this paragraph, a "formerly affiliated plan" of an "employer" is a plan that, immediately prior to the "cessation of affiliation," was actually maintained by one or more of the entities that constitute the "employer" (as determined under the employer affiliation rules described in Regulation §1.415(a)-1(f)(1) and (2)), and immediately after the "cessation of affiliation," is not actually maintained by any of the entities that constitute the "employer" (as determined u nder the employer affiliation rules described in Regulation §1.415(a)-1(f)(1) and (2)). For purposes of this paragraph, a "cessation of affiliation" means the event that causes an entity to no longer be aggregated with one or more other entities as a single "employer" under the employer affiliation rules described in Regulation §1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or that causes a plan to not actually be maintained by any of the entities that const itute the "employer" under the employer affiliation rules of Regulation §1.415(a)-1(f)(1) and (2) (such as a transfer of plan sponsorship outside of a controlled group). 2021/11/09 City Council Post Agenda Page 48 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 19 (3) Mid-year aggregation. Two or more defined contribution plans that are not required to be aggregated pursuant to Code §415(f) and the Regulations thereunder as of the first day of a Limitation Year do not fail to satisfy the requirements of Code §415 with respect to a Participant for the Limitation Year merely because they are aggregated later in that Limitation Year, provided that no "annual additions" are credited to the Participant's Account after the date on which the plans are required to be aggregated. 4.5 ADJUSTMENT FOR EXCESS ANNUAL ADDITIONS Notwithstanding any provision of the Plan to the contrary, if the "annual additions" (as defined in Section 4.4) are exceeded for any Participant, then the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (E PCRS) as set forth in Revenue Procedure 2013-12 or any superseding guidance. 4.6 ROLLOVERS (a) Acceptance of "rollovers" into the Plan. If elected in the Adoption Agreement and with the consent of the Administrator, the Plan may accept a "rollover," provided the "rollover" will not jeopardize the tax-exempt status of the Plan or create adverse tax consequences for the Employer. The amounts rolled over shall be separately accounted for in a "Participant's Rollover Account ." A Participant's Rollover Account shall be fully Vested at all times and shall not be subject to Forfeiture for any reason. For purposes of this Section, the term Participant shall include any Eligible Employee who is not yet a Participant, if, pursuant to the A doption Agreement, "rollovers" are permitted to be accepted from Eligible Employees. In addition, for purposes of this Section the term Participant shall also include Former Employees if the Employer and Administrator consent to accept "rollovers" of distributions made to Former Employees from any plan of the Employer. (b) Treatment of "rollovers" under the Plan. Amounts in a Participant's Rollover Account shall be held by the Trustee (or Insurer) pursuant to the provisions of this Plan and may not be withdrawn by, or distributed to the Participant, in whole or in part, except as elected in the Adoption Agreement and Subsection (c) below. The Trustee (or Insurer) shall have no duty or responsibility to inquire as to the propriety of the amount, value or type of assets transferred, nor to conduct any due diligence with respect to such assets; provided, however, that such assets are otherwise eligible to be held by the Trustee (or Insurer) under the terms of this Plan. (c) Distribution of "rollovers." At such time as the conditions set forth in the Adoption Agreement have been satisfied, the Administrator, at the election of the Participant, shall direct the distribution of up to the entire amount credited to the R ollover Account maintained on behalf of such Participant. Any distribution of amounts held in a Participant's Rollover Account shall be made in a manner which is consistent with and satisfies the provisions of Sections 6.5 and 6.6. Furthermore, unless otherwise elected in the Adoption Agreement, such amounts shall be considered to be part of a Participant's benefit in determining whether an involuntary cash-out of benefits may be made without Participant consent. (d) "Rollovers" maintained in a separate account. The Administrator may direct that "rollovers" made after a Valuation Date be segregated into a separate account for each Participant until such time as the allocations pursuant to this Plan have been made, at which time they may remain segregated, invested as part of the general Trust Fund or, if elected in the Adoption Agreeme nt, directed by the Participant. (e) Limits on accepting "rollovers." Prior to accepting any "rollovers" to which this Section applies, the Administrator may require the Employee to establish (by providing opinion of counsel or otherwise) that the amounts to be rolled over to this Plan meet the requirements of this Section. The Employer may instruct the Administrator, operationally, to limit the source of "rollove r" contributions that may be accepted by the Plan. (f) Definitions. For purposes of this Section, the following definitions shall apply: (1) A "rollover" means: (i) amounts transferred to this Plan directly from another "eligible retirement plan;" (ii) distributions received by an Employee from other "eligible retirement plans" which are eligible for tax-free rollover to an "eligible retirement plan" and which are transferred by the Employee to this Plan within sixty (60) days following receipt thereof; and (iii) any other amounts which are eligible to be rolled over to this Plan pursuant to the Code or any other federally enacted legislation. (2) An "eligible retirement plan" means an individual retirement account described in Code §408(a), an individual retirement annuity described in Code §408(b) (other than an endowment contract), a qualified trust (an employees' trust described in Code §401(a) which is exempt from tax under Code §501(a)), an annuity plan described in Code §403(a), an eligible deferred compensation plan described in Code §457(b) which is maintained by an eligible employer described in Code §457(e)(1)(A), and an annuity contract described in Code §403(b). 4.7 PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS (a) Transfers into this Plan. With the consent of the Administrator, amounts may be transferred (within the meaning of Code §414(l)) to this Plan from other tax qualified plans under Code §401(a), provided the plan from which such funds are transferred permits the transfer to be made and the transfer will not jeopardize the tax-exempt status of the Plan or Trust or create 2021/11/09 City Council Post Agenda Page 49 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 20 adverse tax consequences for the Employer. Prior to accepting any transfers to which this Section applies, the Administrator may require an opinion of counsel that the amounts to be transferred meet the requirements of this Section. The amounts transferred shall be set up in a separate account herein referred to as a "Participant's Transfer Account." Furthermore, for vesting purposes, the Participant's Transfer Account shall be treated as a separate "Participant's Account." (b) Accounting of transfers. Amounts in a Participant's Transfer Account shall be held by the Trustee (or Insurer) pursuant to the provisions of this Plan and may not be withdrawn by, or distributed to the Participant, in whole or in p art, except as elected in the Adoption Agreement and Subsection (d) below, provided the restrictions of Subsection (c) below and Section 6.16 are satisfied . The Trustee (or Insurer) shall have no duty or responsibility to inquire as to the propriety of the amount, value or type of assets transferred, nor to conduct any due diligence with respect to such assets; provided, however, that such assets are otherwise eligible to be held by the Trustee (or Insurer) under the terms of this Plan. Notwithstanding anyt hing in this Section to the contrary, transferred amounts are not required to be separately accounted for and may be combined with the corresponding Account maintained in this Plan provided all rights, benefits and features and other attributes are identical with respect to each account, or are identical after the combination. (c) Distribution of plan–to-plan transfer amounts. At Normal Retirement Date, or such other date when the Participant or the Participant's Beneficiary shall be entitled to receive benefits, the Participant's Transfer Account shall be used to provide additional benefits to the Participant or the Participant's Beneficiary. Any distribution of amounts held in a Participant's Transfer Account shall be made in a manner which is consistent with and satisfies the provisions of Sections 6.5 and 6.6. Furthermore, such amounts shall be considered to be part of a Participant's benefit in determining whether an involuntary cash-out of benefits may be made without Participant consent. (d) Segregation. The Administrator may direct that Employee transfers made after a Valuation Date be segregated into a separate account for each Participant until such time as the allocations pursuant to this Plan have been made, at which time they may remain segregated, invested as part of the general Trust Fund or, if elected in the Adoption Agreement, directed by the Participant. 4.8 MANDATORY EMPLOYEE CONTRIBUTIONS (a) Mandatory Employee contributions. An Employer may elect in the Adoption Agreement to provide for mandatory Employee contribution. If the Employer elects to provide for such contributions, each Participant, as a condition of employme nt, will make a mandatory Employee contribution in the amount elected in the Adoption Agreement. Alternatively, the Employer may elect to provide a range of mandatory Employee contribution percentages from which the Participant may choose to contribute. Under this option, the Employee, as a condition of employment, must make an irrevocable election to contribute a percentage of his or her Compensation no later than his or her effective date of participation. During the period of the Participant's particip ation in the Plan, the Participant may not revoke the election and receive cash in lieu of the contribution, nor may the Participant change the amount of the mandatory Employee contribution. Amounts attributable to mandatory Employee contributions shall be fully Vested . (b) Employer pick-up contribution. If elected in the Adoption Agreement, the Employer will "pick-up" the mandatory Employee contribution and will pay the mandatory Employee contribution to the Plan as an Employer contribution. This provision is effe ctive only after the Employer provides for the treatment of the Employee contributions as described in this paragraph, through a person authorized to take such action, and evidenced in writing by minutes of a meeting, resolution, ordinance, or other formal acti on by the Employer, which will effectuate the "pick-up" provision. Furthermore, as of the date of the "pick-up," Participants are not permitted to opt-out of the "pick-up" or to receive the mandatory Employee contributions directly instead of having them paid to the Plan. Mandatory Employee contributions that are "picked-up" by the Employer are excludible from the Employee's gross income. 4.9 AFTER-TAX VOLUNTARY EMPLOYEE CONTRIBUTIONS (a) After-tax voluntary Employee contributions. If elected in the Adoption Agreement, each Participant may, in accordance with procedures established by the Administrator, elect to make after-tax voluntary Employee contributions to this Plan. Such contributions must generally be paid to the Trustee (or Insurer) within a reasonable period of time after being received by the Employer. An after-tax voluntary Employee contribution is any contribution made to the Plan by or on behalf of a Participant that is included in the Participant's gross income in the year in which made and that is separately accounted for under the Plan. (b) Full vesting. The balance in each Participant's Voluntary Contribution Account shall be fully Vested at all times and shall not be subject to Forfeiture for any reason. (c) Distribution at any time. A Participant may elect at any time to withdraw after-tax voluntary Employee contributions from such Participant's Voluntary Contribution Account and the actual earnings thereon in a manner which is consistent with and satisfies the provisions of Section 6.5. If the Administrator maintains sub-accounts with respect to after-tax voluntary Employee contributions (and earnings thereon) which were made on or before a specified date, a Participant shall be permitted to designate which sub-account shall be the source for the withdrawal. Forfeitures of Employer contributions shall not occur solely as a result of an Employee's withdrawal of after-tax voluntary Employee contributions. In the event a Participant has received a hardship distribution under the safe harbor hardship provisions of the Code §401(k) Regulations from any plan maintained by the Employer, then the Participant shall be barred from making any after -tax voluntary 2021/11/09 City Council Post Agenda Page 50 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 21 Employee contributions for a period of six (6) months after receipt of the hardship distribution. Any prior elections to make after-tax voluntary Employee contributions will become void upon the receipt of the hardship distribution that triggers the suspension period of this paragraph. (d) Used to provide benefits. At Normal Retirement Date, or such other date when the Participant or the Participant's Beneficiary is entitled to receive benefits, the Participant's Voluntary Contribution Account shall be used to provide additional benefit s to the Participant or the Participant's Beneficiary. 4.10 PARTICIPANT DIRECTED INVESTMENTS (a) Directed investment options allowed. If permitted under Participant Direction Procedures, all Participants may direct the Trustee (or Insurer) as to the investment of all or a portion of their individual Account balances as set forth in such procedures. Participants may direct the Trustee (or Insurer), in writing (or in such other form which is acceptable to the Trustee (or In surer)), to invest their accounts in specific assets, specific funds or other investments permitted under the Plan and the Participant Direction Procedures. That portion of the Account of any Participant that is subject to investment direction of such Participant will b e considered a Participant Directed Account. (b) Establishment of Participant Direction Procedures. The Administrator will establish Participant Direction Procedures, to be applied in a uniform manner, setting forth the permissible investment options under this Section, how often changes between investments may be made, and any other limitations and provisions that the Administrator may impose on a Participant's right to direct investments. (c) Administrative discretion. The Administrator may, in its discretion, include or exclude by amendment or other action from the Participant Direction Procedures such instructions, guidelines or policies as it deems necessary or appropriate to ensure proper administration of the Plan, and may interpret the same accordingly. (d) Allocation of gains or losses. As of each Valuation Date, all Participant Directed Accounts shall be charged or credited with the net earnings, gains, losses and expenses as well as any appreciation or depreciation in the market value using publicly l isted fair market values when available or appropriate as follows: (1) to the extent the assets in a Participant Directed Account are accounted for as pooled assets or investments, the allocation of earnings, gains and losses of each Participant's Account shall be based upon the total amount of funds so invested in a manner proportionate to the Participant's share of such pooled investment; and (2) to the extent the assets in a Participant Directed Account are accounted for as segregated assets, the allocation of earnings , gains on and losses from such assets shall be made on a separate and distinct basis. (e) Plan will follow investment directions. Investment directions will be processed as soon as administratively practicable after proper investment directions are received from the Participant. No guarantee is made by the Plan, Employer, Administrator or Trustee (or Insurer) that investment directions will be processed on a daily basis, and no guarantee is made in any respect r egarding the processing time of an investment direction. Notwithstanding any other provision of the Plan, the Employer, Administrator or Discretionary Trustee (or Insurer) reserves the right to not value an investment option on any given Valuation Date for any r eason deemed appropriate by the Employer, Administrator or Discretionary Trustee (or Insurer). Furthermore, the processing of any investment transaction may be delayed for any legitimate business reason (including, but not limited to, failure of systems o r computer programs, failure of the means of the transmission of data, the failure of a service provider to timely receive values or prices, and correction for errors or omissions or the errors or omissions of any service provider) or force majeure. The proc essing date of a transaction will be binding for all purposes of the Plan and considered the applicable Valuation Date for an investment transaction. (f) Other documents required by directed investments. Any information regarding investments available under the Plan, to the extent not required to be described in the Participant Direction Procedures, may be provided to Participants in one or more documents (or in any other form, including, but not limited to, electronic media) which are separate from the Participant Dir ection Procedures and are not thereby incorporated by reference into this Plan. 4.11 QUALIFIED MILITARY SERVICE (a) USERRA. Notwithstanding any provisions of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Code §414(u). Furthermore, loan repayments may be suspended under this Plan as permitted under Code §414(u)(4). (b) Benefit accrual. If the Employer elects in the Adoption Agreement to apply this Subsection, then effective as of the date specified in the Adoption Agreement but no earlier than the first day of the 2007 Plan Year, for benefit accrual purposes, th e Plan treats an individual who becomes Totally and Permanently disabled while performing "qualified military service" (as defined in Code §414(u)) with respect to the Employer as if the individual had resumed employment in accordance with the individual's reemployment rights under Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (USERRA), on 2021/11/09 City Council Post Agenda Page 51 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 22 the day preceding Total and Permanent Disability and terminated employment on the actual date of death or Total and Permanent Disability. The Plan will determine the amount of after-tax voluntary Employee contributions of an individual treated as reemployed under this Section for purposes of applying paragraph Code §414(u)(8)(C) on the basis of the individual's average actual afte r-tax voluntary Employee contributions for the lesser of: (1) the 12-month period of service with the Employer immediately prior to "qualified military service" (as defined in Code §414(u)); or (2) the actual length of continuous service with the Employer. (c) Death benefits. In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing "qualified military service" (as defined in Code §414(u)), the Participant's Beneficiary is entitled to any additional benefits (other t han benefit accruals relating to the period of "qualified military service" but including vesting credit for such period and any other ancillary life insurance or other survivor benefits) provided under the Plan as if the Participant had resumed employment and then terminate d employment on account of death. Moreover, the Plan will credit the Participant's "qualified military service" as service for vesting purposes, as though the Participant had resumed employment under Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (USERRA) immediately prior to the Participant's death. ARTICLE V VALUATIONS 5.1 VALUATION OF THE TRUST FUND The Administrator shall direct the Trustee (or Insurer), as of each Valuation Date, to determine the net worth of the assets comprising the Trust Fund as it exists on the Valuation Date. In determining such net worth, the Trustee (or Insurer) shall v alue the assets comprising the Trust Fund at their fair market value as of the Valuation Date and may deduct all expenses for which the Trustee (or Insurer) has not yet been paid by the Employer or the Trust Fund. The Trustee (or Insurer), when determining the net worth of the assets, may update the value of any shares held in a Participant Directed Account by reference to the number of shares held on behalf of the Participant, priced at the market value as of the Valuation Date. 5.2 METHOD OF VALUATION In determining the fair market value of securities held in the Trust Fund which are listed on a registered stock exchange, the Administrator shall direct the Trustee (or Insurer) to value the same at the prices they were last traded on such exchange pr eceding the close of business on the Valuation Date. If such securities were not traded on the Valuation Date, or if the exchange on which they are traded was not open for business on the Valuation Date, then the securities shall be valued at the prices at which they were last traded prior to the Valuation Date. Any unlisted security held in the Trust Fund shall be valued at its bid price next preceding the close of business on the Valuation Date, which bid price shall be obtained from a registered broker or an investment banker. In determining the fa ir market value of assets other than securities for which trading or bid prices can be obtained, the Trustee, the Administrator (if the Trustee is a directed Trustee), or Insurer may appraise such assets itself (assuming it has the appropriate expertise), or in its discreti on, employ one or more appraisers for that purpose and rely on the values established by such appraiser or appraisers. ARTICLE VI DETERMINATION AND DISTRIBUTION OF BENEFITS 6.1 DETERMINATION OF BENEFITS UPON RETIREMENT Every Participant may terminate employment with the Employer and retire for purposes hereof on the Participant's Normal Retirement Date or Early Retirement Date. However, a Participant may postpone the severance of employment with the Employer to a later date, in which event the participation of such Participant in the Plan, including the right to receive allocations pursuant t o Section 4.3, shall continue until such Participant's Retirement Date. Upon a Participant's Retirement Date, or if elected in the Adoption Agreement, the attainment of Normal Retirement Date without severance of employment with the Employer (subject to Section 6.11), or as soon thereafter as is practicable, the Administrator shall direct the distribution, at the election of the Participant, of the Participant's entire Vested interest in the Plan in accordance with Section 6.5. 6.2 DETERMINATION OF BENEFITS UPON DEATH (a) 100% vesting on death. Upon the death of a Participant before the Participant's Retirement Date or other severance of employment, all amounts credited to such Participant's Combined Account shall, if elected in the Adoption Agreement, become fully Vested. The Administrator shall direct, in accordance with the provisions of Sections 6.6 and 6.7, the distribution of the deceased Participant's Vested accounts to the Participant's Beneficiary. (b) Distribution upon death. Upon the death of a Participant, the Administrator shall direct, in accordance with the provisions of Sections 6.6 and 6.7, the distribution of any remaining Vested amounts credited to the accounts of such deceased Participant to such Participant's Beneficiary. 2021/11/09 City Council Post Agenda Page 52 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 23 (c) Determination of death benefit by Administrator. The Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of the value of the account of a deceased Participant as the Administr ator may deem desirable. The Administrator's determination of death and of the right of any person to receive payment shall be conclusive. (d) Beneficiary designation. Each Participant must designate a Beneficiary on a form and in such manner as provided by the Administrator. (e) Beneficiary if no Beneficiary elected by Participant. In the event no valid designation of Beneficiary exists, or if the Beneficiary with respect to a portion of a Participant's death benefit is not alive at the time of the Participant's de ath and no contingent Beneficiary has been designated, then such portion of the death benefit will be paid in the following order of priority, unless the Employer specifies a different order of priority in Appendix A to the Adoption Agreement (Special Effe ctive Dates and Other Permitted Elections), to: (1) The Participant's surviving Spouse; (2) The Participant's issue, per stirpes; (3) The Participant's surviving parents, in equal shares; or (4) The Participant's estate. If the Beneficiary does not predecease the Participant, but dies prior to distribution of the death benefit, the death benefit will be paid to the Beneficiary's "designated Beneficiary" (or if there is no "designated Beneficiary," to the Beneficiary's estat e). For purposes of these provisions, and with respect to any Beneficiary designations, adopted children shall be treated as children. (f) Divorce revokes spousal Beneficiary designation. Notwithstanding anything in this Section to the contrary, unless otherwise elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), if a Participant has designated the Spouse as a Beneficiary, then a divorce decree that relates to such Spouse shall revoke the Participant's desi gnation of the Spouse as a Beneficiary unless the decree or a "qualified domestic relations order" (within the meaning of Code §414(p)) provides otherwise or a subsequent Beneficiary designation is made. (g) Simultaneous death of Participant and Beneficiary. If a Participant and his or her Beneficiary should die simultaneously, or under circumstances that render it difficult or impossible to determine who predeceased the other, then unless the Participan t's Beneficiary designation otherwise specifies, the Administrator will presume conclusively that the Beneficiary predeceased the Participant. (h) Slayer statute. The Administrator may apply slayer statutes, or similar rules which prohibit inheritance by a person who murders someone from whom he or she stands to inherit, under applicable state laws. (i) Insured death benefit. If the Plan provides an insured death benefit and a Participant dies before any insurance coverage to which the Participant is entitled under the Plan is effected, the death benefit from such insurance coverag e shall be limited to the premium which was or otherwise would have been used for such purpose. (j) Plan terms control. In the event of any conflict between the terms of this Plan and the terms of any Contract issued hereunder, the Plan provisions shall control. 6.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY In the event of a Participant's Total and Permanent Disability prior to the Participant's Retirement Date or other severance of employment, all amounts credited to such Participant's Combined Account shall, if elected in the Adoption Agreement, become fully Vested. In the event of a Participant's Total and Permanent Disability, the Participant's entire Vested interest in the Plan will be distributable and may be distributed in accordance with the provisions of Sections 6.5 and 6.7. 6.4 DETERMINATION OF BENEFITS UPON TERMINATION (a) Payment on severance of employment. If a Participant's employment with the Employer and any Affiliated Employer is severed for any reason other than death, Total and Permanent Disability, or attainment of the Participant's Retirement Date, then such Participant shall be entitled to such benefits as are provided herein. Distribution of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in t he distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's death, Total and Permanent Disability, Early or Normal Retirement). However, at the election of the Participant, the Administrator shall direc t that the entire Vested portion of the Terminated Participant's Combined Account be payable to such Terminat ed Participant provided the 2021/11/09 City Council Post Agenda Page 53 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 24 conditions, if any, set forth in the Adoption Agreement have been satisfied. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Section 6.5. Regardless of whether distributions in kind are permitted, in the event the amount of the Vested portion of the Terminated Participant's Combined Account equals or exceeds the fair market value of any insurance Contracts, the Trustee (or Insurer), when so directed by the Administrator and agreed to by the Terminated Participant, shall assign, transfer, and set over to such Terminated Participant all Contracts on such Terminated Participant's life in such form or with such endorsements, so that the settlemen t options and forms of payment are consistent with the provisions of Section 6.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to th e Trustee (or Insurer) the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee (or Insurer), pursuant to the Participant's election, may borrow the cash value of the Contracts from the Insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Combined Account and then assign the Contracts t o the Terminated Participant. Notwithstanding the above, unless otherwise elected in the Adoption Agreement, if the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions does not exceed $5,000 (or such lower amount as elected in th e Adoption Agreement), the Administrator shall direct that the entire Vested benefit be paid to such Participant in a single lump-sum as soon as practical without regard to the consent of the Participant, provided the conditions, if any, set forth in the Adop tion Agreement have been satisfied. A Participant's Vested benefit shall not include (1) qualified voluntary employee contributions within the meaning of Code §72(o)(5)(B) and (2) if selected in the Conditions for Distributions Upon Severance of Employment Section of the Adoption Agreement, the Participant's Rollover Account. If a mandatory distri bution is made pursuant to this paragraph and such distribution is greater than $1,000 and the Participant does not elect to have such distribution paid dire ctly to an "eligible retirement plan" specified by the Participant in a "direct rollover" in accord ance with Section 6.14 or to receive the distribution directly, then the Administrator shall transfer such amount to an individual retirement account described in Cod e §408(a) or an individual retirement annuity described in Code §408(b) designated by the Administrator. However, if the Participant elects to receive or make a "direct rollover" of such amount, then the Administrator shall direct the Trustee (or Insurer) to cause the entire Vested benefit to be paid to such Participant in a single lump sum, or make a "direct rollover" pursuant to Section 6.14, provided the conditions, if any, set forth in the Adoption Agreement have been satisfied. The Administrator may establish a procedure as to whether a Participant who fails to make an affirmative election with respect to a mandatory distribution of $1,000 or less is treated as having made or not made a "direct rollover" election. For purposes of determining whether the $1,000 thres hold set forth in this paragraph is met, the mandatory distribution includes amounts in a Participant's Rollover Account. For purposes of determining whether the $5,000 threshold in this paragraph is met, a Participant's Rollover Account is taken into account unl ess otherwise elected in the Adoption Agreement. (b) Vesting schedule. The Vested portion of any Participant's Account shall be a percentage of such Participant's Account determined on the basis of the Participant's number of Years of Service (or Periods of Service if the elapsed time method is elected) according to the vesting schedule specified in the Adoption Agreement. However, a Participant's entire interest in the Plan shall be non-forfeitable upon the Participant's Normal Retirement Age (if the Participant is employed by the Employer on or after such date). In addition, Employee contributions (voluntary and mandatory) and contributions for sick leave/vacation leave conversions shall be fully Vested. 6.5 DISTRIBUTION OF BENEFITS (a) Forms of distributions. The Administrator, pursuant to the election of the Participant, shall direct the distribution to a Participant or Beneficiary any amount to which the Participant or Beneficiary is entitled under the Plan in one or more of th e following methods which are permitted pursuant to the Adoption Agreement. (1) One lump-sum payment in cash or in property, provided that if a distribution of property is permitted, it shall be limited to property that is specifically allocated and identifiable with respect to such Participant. (2) Partial withdrawals. (3) Payments over a period certain in monthly, quarterly, semi-annual, or annual cash installments. The period over which such payment is to be made shall not extend beyond the earlier of the Participant's life expectancy (or the joint life expectancy of the Participant and the Participant's designated Beneficiary). Once payments have begun, a Participant may elect to accelerate the payments (reduce the term and increase payments). (4) Purchase of or providing an annuity. However, such an nuity may not be in any form that will provide for payments over a period extending beyond either the life of the Participant (or the lives of the Participant and the Participant's designated Beneficiary) or the life expectancy of the Participant (or the life expectancy of the Participant and the Participant's designated Beneficiary). (b) Consent to distributions. Benefits may not be paid without a Participant's consent if the value of the Participant's Accounts exceed the dollar threshold specified in the Adoption Agreement. If the value of the Participant's Accounts does not exceed such threshold, then the Administrator will distribute such benefit in a lump -sum. For purposes of this Subsection, the Participant's 2021/11/09 City Council Post Agenda Page 54 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 25 Accounts shall not include, if selected in the Conditions for Distributions Upon Severance of Employment Section of the Adoption Agreement, the Participant's Rollover Account. (c) Required minimum distributions (Code §401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant's benefits, whether under the Plan or through the purchase of an annuity Contract, shall be made in accordance with the requirements of Section 6.8. (d) Annuity Contracts. All annuity Contracts under this Plan shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or Spouse shall comply with all of the requirements of thi s Plan. (e) TEFRA 242(b)(2) election. The provisions of this Section shall not apply to distributions made in accordance with Plan Section 6.8(a)(4). 6.6 DISTRIBUTION OF BENEFITS UPON DEATH (a) Consent. If the value of the death benefit derived from Employer and Employee contribution s does not exceed $5,000, the Administrator shall direct the distribution of such amount to the Participant's Beneficiary in a single lump -sum as soon as practicable. If the value exceeds $5,000, an immediate distribution of the entire amount may be made t o the Beneficiary, provided such Beneficiary consents to the distribution. (b) Forms of distribution. Death benefits may be paid to a Participant's Beneficiary in one of the following optional forms of benefits subject to the rules specified in Section 6.8 and the elections made in the Adoption Agreement. Such optional forms of distributions may be elected by the Participant. However, if no optional form of distribution was elected by the Participant prior to death, then the Participant's Beneficiary may elect the form of distribution. (1) One lump-sum payment in cash or in property that is allocated to the Accounts of the Participant at the time of the distribution. (2) Partial withdrawals. (3) Payment in monthly, quarterly, semi-annual, or annual cash installments over a period to be determined by the Participant or the Participant's Beneficiary. In order to provide such installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings accou nt, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract for a term certain (with no life contingencies) providing for such payment. After periodic installments commence, the Beneficiary shall have the right to reduce the period over which such periodic installments shall be made, and the cash amount of such periodic installments shall be adjusted accordingly. (4) In the form of an annuity over the life expectancy of the Beneficiary. (c) Required minimum distributions (Code §401(a)(9)). Notwithstanding any provision in the Plan to the contrary, distributions upon the death of a Participant shall comply with the requirements of Sectio n 6.8. (d) Payment to a child. For purposes of this Section, any amount paid to a child of the Participant will be treated as if it had been paid to the surviving Spouse if the amount becomes payable to the surviving Spouse when the child reaches the age of majority. (e) Voluntary Contribution Account. In the event that less than one hundred percent (100%) of a Participant's interest in the Plan is distributed to such Participant's Spouse, the portion of the distribution attributable to the Participant's Voluntary Contribution Account shall be in the same proportion that the Participant's Voluntary Contribution Account bears to the Participant's total interest in the Plan. (f) TEFRA 242(b)(2) election. The provisions of this Section shall not apply to distributions made in accordance with Section 6.8(a)(4). 6.7 TIME OF DISTRIBUTION Except as limited by Section 6.8, whenever a distribution is to be made, or a series of payments are to commence, the distribution or series of payments may be made or begun as soon as practicable. Notwithstanding anything in the Plan to the contrary, unless a Participant otherwise elects, payments of benefits under the Plan will be begin not later than the later of the sixtieth (60th) day after the close of the Plan Year in which the latest of the following events occurs: (a) the date on which the Participant attains the earlier of age 65 or the Normal Retirement Age specified herein; (b) the tenth (10th) anniversary of the year in which the Participant commenced participation in the Plan; or (c) the date the Participant terminates service with the Employer. The failure of a Participant to request a distribution shall b e deemed to be an election to defer the commencement of payment of any ben efit until the time otherwise permitted under the Plan. 2021/11/09 City Council Post Agenda Page 55 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 26 6.8 REQUIRED MINIMUM DISTRIBUTIONS (a) General rules (1) Effective Date. Subject to the good faith interpretation standard, the requirements of this Section shall apply to any distribution of a Participant's interest in the Plan and will take precedence over any inconsistent provisions of this Plan. (2) Requirements of Treasury Regulations incorporated. All distributions required under this Section will be determined and made in accordance with the Regulations under Code §401(a)(9) and the minimum distribution incidental benefit requirement of Code §401(a)(9)(G). (3) Limits on distribution periods. As of the first "distribution calendar year," distributions to a Participant may only be made in accordance with the selections made in the Form of Distributions Section of the Adoption Agreement. If such distributions are not made in a single-sum, then they may only be made over one of the following period s: (i) the life of the Participant, (ii) the joint lives of the Participant and a "designated Beneficiary," (iii) a period certain not extending beyond the "life expectancy" of the Participant, or (iv) a period certain not extending beyond the joint life a nd last survivor expectancy of the Participant and a "designated Beneficiary." (4) TEFRA Section 242(b)(2) elections. (i) Notwithstanding the other provisions of this Section, other than the Spouse's right of consent afforded under the Plan, distributions may be made on behalf of any Participant, including a five percent (5%) owner, who has made a designation in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and in accordance with all of the following requirements (regardless of when such distribution commences): (A) The distribution by the Plan is one which would not have disqualified such Plan under Code §401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of 1984. (B) The distribution is in accordance with a method of distribution designated by the Participant whose interest in the Plan is being distributed or, if the Participant is deceased, by a Beneficiary of such Participant. (C) Such designation was in writing, was signed by the Participant or the Beneficiary, and was made before January 1, 1984. (D) The Participant had accrued a benefit under the Plan as of December 31, 1983. (E) The method of distribution designated by the Participant or the Beneficiary specifies the time at which distribution will commence, the period over which distributions will be made, and in the case of any distribution upon the Participant's death, the Beneficiaries of the Participant listed in order of priority. (ii) A distribution upon death will not be covered by the transitional rule of this Subsection unless the information in the designation contains the required information described above with respect to the distributions to be made upon the death of the Participant. (iii) For any distribution which commences before January 1, 1984, but continues after December 31, 1983, the Participant, or the Beneficiary, to whom such distribution is being made, will be presumed to have designated the method of distribution under which the distribution is being made if the method of distribution was specified in writing and the distribution satisfies the requirements in (i)(A) and (i)(E) of this Subsection. (iv) If a designation is revoked, any subsequent distribution must satisfy the requirements of Code §401(a)(9) and the Regulations thereunder. If a designation is revoked subsequent to the date distributions are required to begin, the Plan must distribute by the end of the calendar year following the calendar year in which the revocation occurs the total amount not yet distributed which would have been required to have been distributed to satisfy Code §401(a)(9) and the Regulations thereunder, but for the Section 242(b)(2) election. For calendar years beginning after December 31, 1988, such distributions must meet the minimum distribution incidental benefit requirements. Any changes in the designation will be considered to be a revocation of the designation. However, the mere substitution or addition of another Beneficiary (one not named in the designation) under the designation will not be considered to be a revocation of the designation, so long as such substitution or addition does not alter the period over which distributions are to be made under the designation, directly or indirectly (for example, by altering t he relevant measuring life). (v) In the case in which an amount is transferred or rolled over from one plan to another plan, the rules in Regulation §1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply. (5) Good faith interpretation standard. In applying any provision of this section, the Plan will apply a reasonable good faith interpretation of Code §401(a)(9). 2021/11/09 City Council Post Agenda Page 56 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 27 (b) Time and manner of distribution (1) Required beginning date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's "required beginning date." (2) Death of Participant before distributions begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows as elected in the Distributions Upon Death Section of the Adoption Agreement (or if no election is made, then the Beneficiary may elect either the lifetime method or th e five-year method): (i) Lifetime method (Spouse). If the Participant's surviving Spouse is the Participant's sole "designated Beneficiary," then, except as otherwise provided herein, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, if later. (ii) Lifetime method (non-Spouse). If the Participant's surviving Spouse is not the Participant's sole "designated Beneficiary," then, except as provided in Section 6.8(b)(3) below, distributions to the "designated Beneficiary" will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (iii) Five-year method. If there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death or if otherwise elected pursuant to the Adoption Agreement with respect to a "designated Beneficiary," the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (iv) Death of Spouse. If the Participant's surviving Spouse is the Participant's sole "designated Beneficiary" and the surviving Spouse dies after the Participant but before distributions to the surviving Spouse begin, this Section 6.8(b)(2), other than Section 6.8(b)(2)(i), will apply as if the surviving Spouse were the Participant. For purposes of this Section 6.8(b)(2) and Section 6.8(b)(3), unless Section 6.8(b)(2)(iv) applies, distributions are considered to begin on the Participant's "required beginning date." If Section 6.8(b)(2)(iv) applies, distributions are consi dered to begin on the date distributions are required to begin to the surviving Spouse under Section 6.8(b)(2)(i). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's "required beginning date" (or to the Participant's surviving Spouse before the date distributions are required to begin to the surviving Spouse under Section 6.8(b)(2)(i)), the date distributions are considered to begin is the date distributions actually commence. (3) Forms of distribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the "required beginning date," as of the first "distribution calendar year" distributions will be made in accordance with Sections 6.8(c) and 6.8(d) and only in a form of distribution provided in Section 6.5 or 6.6, as applicable. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirement s of Code §401(a)(9) and the Regulations thereunder. (c) Required minimum distributions during Participant's lifetime (1) Amount of required minimum distribution for each "distribution calendar year." During the Participant's lifetime, the minimum amount that will be distributed for each "distribution calendar year" is the lesser of the following, as elected in the Form of Distributions Section of the Adoption Agreement: (i) the quotient obtained by dividing the "Participant's account balance" by the dis tribution period in the Uniform Lifetime Table set forth in Regulation §1.401(a)(9)-9, using the Participant's age as of the Participant's birthday in the "distribution calendar year"; or (ii) if the Participant's sole "designated Beneficiary" for the "distribution calendar year" is the Participant's Spouse, the quotient obtained by dividing the "Participant's account balance" by the number in the Joint and Last Survivor Table set forth in Regulation §1.401(a)(9)-9, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's birthdays in the "distribution calendar year." (2) Lifetime required minimum distributions continue through year of Participant's death. Required minimum distributions will be determined under this Section 6.8(c) beginning with the first "distribution calendar year" and up to and including the "distribution calendar year" that includes the Participant's date of death. 2021/11/09 City Council Post Agenda Page 57 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 28 (d) Required minimum distributions after Participant's death (1) Death on or after date distributions begin. (i) Participant survived by "designated Beneficiary." If the Participant dies on or after the date distributions begin and there is a "designated Beneficiary," the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the longer of the remaining "life expectancy" of the Participant or the remaining "life expectancy" of the Participant's "designated Beneficiary," determined as follows: (A) The Participant's remaining "life expectancy" is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (B) If the Participant's surviving Spouse is the Participant's sole "designated Beneficiary," the remaining "life expectancy" of the surviving Spouse is calculated for each "distribution calendar year" after the year of the Participant's death using the surviving Spouse's age as of the Spouse's birthday in that year. For "distribution calendar years" after the year of the surviving Spouse's death, the remaining "life expectancy" of the surviving Spouse is calculated using the age of the surviving Spouse as of the Spouse's birthday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year. (C) If the Participant's surviving Spouse is not the Participant's sole "designated Beneficiary," the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (ii) No "designated Beneficiary." If the Participant dies on or after the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the Participant's remaining "life expectancy" calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (2) Death before date distributions begin. (i) Participant survived by "designated Beneficiary." Except as provided in Section 6.8(b)(3), if the Participant dies before the date distributions begin and there is a "designated Beneficiary," the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the remaining "life expectancy" of the Participant's "designated Beneficiary," determined as provided in Section 6.8(d)(1). (ii) No "designated Beneficiary." If the Participant dies before the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (iii) Death of surviving Spouse before distributions to surviving Spouse are required to begin. If the Participant dies before the date distributions begin, the Participant's surviving Spouse is the Participant's sole "designated Beneficiary," and the surviving Spouse dies before distributions are required to begin to the surviving Spouse under Section 6.8(b)(2)(i), this Section 6.8(d)(2) will apply as if the surviving Spouse were the Participant. (e) Definitions. For purposes of this Section, the following definitions apply: (1) "Designated Beneficiary" means the individual who is designated as the Beneficiary under the Plan and is the "designated Beneficiary" under Code §401(a)(9) and Regulation §1.401(a)(9)-4. (2) "Distribution calendar year" means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first "distribution calendar year" is the calendar year immediately preceding the calendar year which contains the Participant's "required beginning date." For distributions beginning after the Participant's death, the first "distribution calendar year" is the calendar year in which distributions are required to begin under Section 6.8(b). The required minimum distribution for the Participant's first "distribution calendar year" will be made on or before the Participant's "required beginning date." The required minimum distribution for other "distri bution calendar years," including the required minimum distribution for the "distribution calendar year" in which the Participant's "required beginning date" occurs, will be made on or before December 31 of that "distribution calendar year." (3) "Life expectancy" means the life expectancy as computed by use of the Single Life Table in Regulation §1.401(a)(9)-9. 2021/11/09 City Council Post Agenda Page 58 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 29 (4) "Participant's account balance" means the Participant's account balance as of the last Valuation Date in the calendar year immediately preceding the "distribution calendar year" (valuation calendar year) increased by the amount of any contributions made and allocated or Forfeitures allocated to the account balance as of the dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date. For this purpose, the Administrator may exclude contributions that are allocated to the account balance as of dates in the valuation calendar year after the Valuation Date, but that are not actually made during the valuation calendar year. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the "distribution calendar year" if distributed or transferred in the valuation calendar year. (5) "Required beginning date" means, except as otherwise elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), with respect to any Participan t, April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70 1/2 or the calendar year in which the Participant retires. (f) Waiver of 2009 required distributions (1) Suspension of RMDs unless otherwise elected by Participant. This paragraph does not apply if the Employer elected options a., b., or c. at the WRERA – RMD Waivers for 2009 Section of the Adoption Agreement. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code §401(a)(9), a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code §401(a)(9)(H) ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are (i) equal to the "2009 RMDs" or (ii) one or more payments in a series of substantially equal distributions (that include the "2009 RMDs") made at least annually and expected to last for the life (or "life expectancy") of the Participant, the joint lives (or joint "life expectancy") of the Participant and the Participant's "designated Beneficiary," or for a period of at least 10 years ("Extend ed 2009 RMDs"), did not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. Participants and Beneficiaries described in the preceding sentence were given the opportunity to elect to rece ive the distributions described in the preceding sentence. (2) Continuation of RMDs unless otherwise elected by Participant. This paragraph applies if the Employer elected option b. at the WRERA – RMD Waivers for 2009 Section of the Adoption Agreement. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code §401(a)(9), a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code §401(a)(9)(H) ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are (i) equal to the "2009 RMDs" or (ii) one or more payments in a series of substantially equal distributions (that include the "2009 RMDs") made at least annually and expected to last for the life (or "life expectancy") of the Participant, the joint lives (or joint "life expectancy") of the Participant and the Participant's "designated Beneficiary," or for a period of at least 10 years ("Extended 2009 RMDs"), did not receive those distributions for 2009 unless the Participant or Beneficiary choose not to receive such distributions. Participants and Beneficiaries described in the preceding sentence were given the opportunity to elect to stop receiving the distributions described in the preceding sentence. (3) Direct rollovers. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code §401(a)(9), and solely for purposes of applying the direct rollover provisions of the Plan, certain additional distributions in 2009, as elected by the Employer in the WRERA – RMD Waivers for 2009 Section of the Adoption Agreement, were treated as eligible rollover distributions. If no election was made by the Employer in the Adoption Agreement, then a direct rollover was offered only for distributions that would have been eligible rollover distribu tions without regard to Code §401(a)(9)(H). 6.9 DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL If, in the opinion of the Administrator, a Participant or Beneficiary entitled to a distribution is not able to care for his her affairs because of a mental condition, a physical condition, or by reason of age, Administrator shall direct the distribution to the Participant's or Beneficiary's guardian, conservator, trustee, custodian (including under a Uniform Transfers or Gifts to Minors Act) or to his or her attorney-in-fact or to other legal representative, upon furnishing evidence of such status satisfactory to the Administrator. The Administrator and the Trustee (or Insurer) do not have any liability with respect to payments so made and neither the Administrator nor the Trustee (or Insurer) has any duty to make inquiry as to the competence of any person entitled to receive payments under the P lan. 6.10 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN In the event that all, or any portion, of the distribution payable to a Participant or Beneficiary hereunder shall, at the la ter of the Participant's attainment of age 62 or Normal Retirement Age, remain unpaid solely by reason of the inability of the Administrator to ascertain the whereabouts of such Participant or Beneficiary, the amount so distributable may, in the sole discretion of the Administrator, either be treated as a Forfeiture or be paid directly to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b). In addition, if the Plan provides for mandatory distributions and the amount to be distributed to a Participant or Beneficiary does not exceed $1,000, then the amount distributable may, in the sole discretion of the Administrator, eit her be treated as a Forfeiture, or be paid directly to an individual retirement account described in Code §408(a) or an individua l retirement annuity described in Code §408(b) at the time it is determined that the whereabouts of the Participant or the Participant's B eneficiary cannot be ascertained. In the event a Participant or Beneficiary is located subsequent to the Forfeiture, suc h benefit shall be restored, first 2021/11/09 City Council Post Agenda Page 59 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 30 from Forfeitures, if any, and then from an additional Employer contribution if necessary. Upon Plan termination, the portion of the distributable amount that is an "eligible rollover distribution" as defined in Section 6.14(b)(1) may be paid directly to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b). However, regardle ss of the preceding, a benefit that is lost by reason of escheat under applicable st ate law is not treated as a Forfeiture for purposes of this Section nor as an impermissible forfeiture under the Code. 6.11 IN-SERVICE DISTRIBUTION If elected in the Adoption Agreement, at such time as the conditions set forth in the Adoption Agreement have been satisfied, then the Administrator, at the election of a Participant who has not severed employment with the Employer, shall direct the distri bution of up to the entire Vested amount then credited to the Accounts as elected in the Adoption Agreement maintained on behalf of such Participant. For purposes of this Section, a Participant shall include an Employee who has an Account balance in the Plan. In the event that t he Administrator makes such a distribution, the Participant shall continue to be eligible to participate in the Plan on the same basis as any other Employee. Any distribution made pursuant to this Section shall be made in a manner consistent with Section 6.5. Furthermore, if an in-service distribution is permitted from more than one account type, the Administrator may determine any ordering of a Participant's in-service distribution from such accounts. 6.12 ADVANCE DISTRIBUTION FOR HARDSHIP (a) Hardship events. For 401(a) Plans, if elected in the Adoption Agreement, the Administrator, at the election of the Participant, shall direct the distribution to any Participant in any one Plan Year up to the lesser of 100% of the Vested interest of the Accounts selected in the Adoption Agreement, valued as of the last Valuation Date or the amount necessary to satisfy the immediate and heavy financial need of the Participant. For purposes of this Section, a Participant shall include an Employee who has an Acc ount balance in the Plan. Any distribution made pursuant to this Section shall be deemed to be made as of the first day of the Pla n Year or, if later, the Valuation Date immediately preceding the date of distribution, and the Account from which the distrib ution is made shall be reduced accordingly. Withdrawal under this Section shall be authorized only if the distribution is for an immediate and heavy financial need. The Administrator will determine whether there is an immediate and heavy financial need based on the facts and circumstances. An immediate and heavy financial need includes, but is not limited to, a distribution for one of the follo wing: (1) Expenses for (or necessary to obtain) medical care (as defined in Code §213(d)); (2) Costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant; (3) Payments for burial or funeral expenses for the Participant's deceased parent, Spouse, children or dependents (as defined in Code §152, and without regard to Code §152(d)(1)(B)); (4) Payment of tuition, related educational fees, and room and board expenses, for up to the next twelve (12) months of post-secondary education for the Participant, the Participant's Spouse, children, or dependents (as defined in Code §152, and without regard to Code §§152(b)(1), (b)(2), and (d)(1)(B)); (5) Payments necessary to prevent the eviction of the Participant from the Participant's principal residence or foreclosure on the mortgage on that residence; or (6) Expenses for the repair of damage to the Participant's principal residence that would qualify for the casualty deduction under Code §165 (determined without regard to whether the loss exceeds 10% of adjusted gross income). (b) Beneficiary-based distribution. If elected in the Adoption Agreement, then effective as of the date specified in the Adoption Agreement, but no earlier than August 17, 2006, a Participant's hardship event includes an immediate and heavy financial need of the Participant's "primary Beneficiary under the Plan," that would constitute a hardship event if it occurred with respect to the Participant's Spouse or dependent as defined under Code §152 (such hardship events being limited to educational expenses, fun eral expenses and certain medical expenses). For purposes of this Section, a Participant's "primary Beneficiary under the Plan" is an individual who is named as a Beneficiary under the Plan (by the Participant or pursuant to Section 6.2(d)) and has an uncondi tional right to all or a portion of the Participant's Account balance under the Plan upon the Participant's death. (c) Other limits and conditions. If elected in the Adoption Agreement, no distribution shall be made pursuant to this Section from the Participant's Account until such Account has become fully Vested. Furthermore, if a hardship distribution is permitted from more than one Account, the Administrator may determine any ordering of a Participant's hardship distribution from such Accounts. (d) Distribution rules apply. Any distribution made pursuant to this Section shall be made in a manner which is consistent with and satisfies the provisions of Section 6.5. 2021/11/09 City Council Post Agenda Page 60 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 31 6.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION All benefits provided to a Participant in this Plan shall be subject to the rights afforded to any Alternate Payee under a "qualified domestic relations order." Furthermore, unless otherwise elected in Appendix A to the Adoption Agreement (Special Effective D ates and Other Permitted Elections) a distribution to an Alternate Payee shall be permitted if such distribution is authorized by a "q ualified domestic relations order," even if the affected Participant has not reached the "earliest retirement age." For the purp oses of this Section, "qualified domestic relations order" and "earliest retirement age" shall have the meanings set forth under Code §414(p). For purposes of this Section, however, a distribution that is made pursuant to a domestic relations order which meets the requirements of Code §414(p)(1)(A)(i) will be treated as being made pursuant to a "qualified domestic relations order." Effective as of April 6, 2007, a domestic relations order that otherwise satisfies the requirements for a "qualified domestic relations order" will not fail to be a "qualified domestic relations order": (i) solely because the order is issued after, or revises, another domestic relations order or "qualified domestic relations order"; or (ii) solely because of the time at which the order is issued, including issuance after the Annuity Starting Date or after the Participant's death. 6.14 DIRECT ROLLOVERS (a) Right to direct rollover. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a "distributee's" election under this Section, a "distributee" may elect, at the time and in the manner prescribed by the Administrator, to have an "eligible rollover distribution" paid directly to an "eligible retirement plan" specified by the "distributee" in a "direct rollover." However, if less than the entire amount of the "eligible rollover distribution" is being paid directly to an "eligible retirement plan," then the Administrator may require that the amount paid directly to such plan be at least $500. (b) Definitions. For purposes of this Section, the following definitions shall apply: (1) Eligible rollover distribution. An "eligible rollover distribution" means any distribution described in Code §402(c)(4) and generally includes any distribution of all or any portion of the balance to the credit of the "distributee," except that an "eligible rollover distribution" does not include: any distribution that is one of a series of substantially equal periodic p ayments (not less frequently than annually) made for the life (or life expectancy) of the "distributee" or the joint lives (or joint life expectancies) of the "distributee" and the "distributee's" "designated Beneficiary," or for a specified period of ten (10) ye ars or more; any distribution to the extent such distribution is required under Code §401(a)(9); any hardship distribution; the portion of any other distribution(s) that is not includible in gross income (determined without regard to the exclusion for net unrea lized appreciation with respect to employer securities); and any other distribution reasonably expected to total less than $200 during a year. For purposes of the $200 rule, a distribution from a designated Roth account and a distribution from other accounts under the Plan may be treated as made under separate plans. In addition, Section 6.8(f)(2) applies with respect to distributions made in 2009. Notwithstanding the above, a portion of a distribution shall not fail to be an "eligible rollover distribution" merely b ecause the portion consists of after-tax voluntary Employee contributions which are not includible in gross income. However, such portion may be transferred only to: (i) a traditional individual retirement account or annuity described in Code §408(a) or (b) (a "traditional IRA") (ii) for taxable years beginning after December 31, 2006, a Roth individual account or annuity described in Code §408A (a "Roth IRA"), or (iii) a qualified defined contribution plan or an annuity contract described in Code §401(a) or Code §403(b), respectively, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. (2) Eligible retirement plan. An "eligible retirement plan" is a "traditional IRA," for distributions made after December 31, 2007, a "Roth IRA," a qualified trust (an employees' trust) described in Code §401(a) which is exempt from tax under Code §501(a), an annuity plan described in Code §403(a), an eligible plan under Code §457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision and wh ich agrees to separately account for amounts transferred into such plan from this Plan, and an annuity contract described in Code §403(b), that accepts the "distributee's" "eligible rollover distribution." The definition of "eligible retirement plan" shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who is an Alternate Payee. If any portion o f an "eligible rollover distribution" is attributable to payments or distributions from a designated Roth account, an "eligible retirement plan" with respect to such portion shall include only another designated Roth account of the individual from whose account the payments or distributions were made, or a Roth IRA of such individual. In the case of a "distributee" who is a non-Spouse designated Beneficiary, (i) the "direct rollover" may be made only to a traditional or Roth individual retirement account or an annuity described in Code §408(b) ("IRA") that is established on behalf of the designated non -Spouse Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Code §402(c)(11), and (ii) the 2021/11/09 City Council Post Agenda Page 61 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 32 determination of any required minimum distribution required under Code §401(a)(9) that is ineligible for rollover shall be made in accordance with IRS Notice 2007-7, Q&A 17 and 18. (3) Distributee. A "distributee" includes an Employee or Former Employee. In addition, the Employee's or Former Employee's surviving Spouse and the Employee's or Former Employee's Spouse or former Spouse who is the Alternat e Payee, are "distributees" with regard to the interest of the Spouse or former Spouse. (4) Direct rollover. A "direct rollover" is a payment by the Plan to the "eligible retirement plan" specified by the "distributee." (c) Participant notice. A Participant entitled to an "eligible rollover distribution" must receive a written explanation of the right to a "direct rollover," the tax consequences of not making a "direct rollover," and, if applicable, any available special income tax elections. The notice must be provided no less than thirty (30) days and no more than one-hundred eighty (180) (ninety (90) for Plan Years beginning before January 1, 2007) days before the Annuity Starting Date. The "direct rollover" notice must be prov ided to all Participants, unless the total amount the Participant will receive as a distribution during the calendar year is expected to be less than $200. (d) Non-Spouse Beneficiary rollover right. For distributions after December 31, 2009, and unless otherwise elected in the Adoption Agreement, for distributions after December 31, 2006, a non-Spouse Beneficiary who is a "designated Beneficiary" under Code §401(a)(9)(E) and the Regulations thereunder, by a direct trustee-to-trustee transfer ("direct rollover"), may roll over all or any portion an "eligible rollover distribution" to an IRA the Beneficiary establishes for purposes of receiving the distribut ion. (1) Certain requirements not applicable. Any distribution made prior to January 1, 2010 is not subject to the "direct rollover" requirements of Code §401(a)(31) (including Code §401(a)(31)(B), the notice requirements of Code §402(f) or the mandatory withholding requirements of Code §3405(c)). (2) Trust Beneficiary. If the Participant's named Beneficiary is a trust, the Plan may make a direct rollover to an IRA on behalf of the trust, provided the trust satisfies the requirements to be a "designated Beneficiary." 6.15 RESTRICTIONS ON DISTRIBUTION OF ASSETS TRANSFERRED FROM A MONEY PURCHASE PLAN Notwithstanding any provision of this Plan to the contrary, to the extent that any optional form of benefit under this Plan p ermits a distribution prior to the Employee's retirement, death, Total and Permanent Disability, or severance from employment, and prior to Plan termination, the optional form of benefit is not available with respect to benefits attributable to assets (including the pos t-transfer earnings thereon) and liabilities that are transferred, within the meaning of Code §414(l), to this Plan from a money purchase pension plan qualified under Code §401(a) (other than any portion of those assets and liabilities attributable to after-tax voluntary Employee contributions or to a direct or indirect rollover contribution). Notwithstanding anything in the Plan to the contrary, effective with respect to Plan Ye ars beginning after June 30, 2008, a Participant may not obtain an in -service distribution with respect to such transferred amounts prior to the earlier of the Participant's Normal Retirement Age or attainment of age 62. 6.16 CORRECTIVE DISTRIBUTIONS Nothing in this Article shall preclude the Administrator from making a distribution to a P articipant, to the extent such distribution is made to correct a qualification defect in accordance with the corrective procedures under the IRS' Employee Plans Compliance Resolution System or any other voluntary compliance programs established by the IRS. 6.17 HEART ACT (a) Death benefits. In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined in Code §414(u)), the Participant's Beneficiary is entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant had resumed empl oyment and then terminated employment on account of death. Moreover, the Plan will credit the Participant's qualified military service as service for vesting purposes, as though the Participant had resumed employment under Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (USERRA) immediately prior to the Participant's death. (b) Military Differential Pay. For years beginning after December 31, 2008: (1) an individual receiving Military Differential Pay is treated as an Employee of the Employer making the payment; (2) the Military Differential Pay is t reated as 415 Compensation (and Compensation unless otherwise elected in the Adoption Agreement); and (3) the Plan is not treated as failing to meet the requirements of any provision described in Code §414(u)(1)(C) (or corresponding Plan provisions) by reason of any contribution or benefit which is based on the Military Differential Pay. The Administrator operationally may determine, for purposes of the provisions described in Code §414(u)(1)(C), whether to take into account any matching contributions, attr ibutable to Military Differential Pay. (c) Deemed Severance. Notwithstanding Subsection (b)(1) above, if elected in the Adoption Agreement, a Participant performs service in the uniformed services (as defined in Code §414(u)(12)(B)) on active duty for a p eriod of more than 30 days, the 2021/11/09 City Council Post Agenda Page 62 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 33 Participant will be deemed to have a severance from employment solely for purposes of eligibility for distribution of amounts not attributable to Employer contributions to a money purchase pension plan. However, the Plan wil l not distribute such a Participant's Account on account of this deemed severance unless the Participant specifically elects to receive a benefit distribution hereunder. 6.18 SERVICE CREDIT The Administrator, upon Participant request, may direct the transfer of all or a portion of the Participant's Account to a governmental defined benefit plan (as defined in Code §414(d)) in which he or she participates for the purchase of permissive service credit (as defined in Code §415(n)(3)(A)). ARTICLE VII TRUSTEE AND CUSTODIAN 7.1 BASIC RESPONSIBILITIES OF THE TRUSTEE (a) Application of Article. The provisions of this Article, other than Section 7.6, shall not apply to this Plan if a separate trust agreement is being used. Furthermore, the provisions of this Article, other than Sections 7.5 and 7.6, shall not apply if the Plan is fully insured. If the Employer has appointed two or more Trustees to hold Plan assets, then each Trustee shall be the Trustee only with respect to those Plan assets specifically deposited by the Employer in the Trust Fund for which such Trustee is the trus tee. References in the Plan to the responsibilities, power or duties of the Trustee and any other provisions in the Plan relating to the Trustee shall be interpreted as applying to each Trustee only with respect to the assets of the Trust Fund for which such Tru stee is the Trustee. Each Trustee shall have no responsibility for, or liability with respect to, any of the Plan assets other than the assets for which it serves as Trustee. (b) No Duty to collect contributions. The Trustee is accountable to the Employer for the funds contributed to the Plan by the Employer, but the Trustee does not have any duty to see that the contributions received comply or are deposited in accordance with the provisions of the Plan. (c) Reliance on Administrator's directions. The Trustee will credit and distribute the Trust Fund as directed by the Administrator. The Trustee is not obligated to inquire as to whether any payee or distributee is entitled to any payment or w hether the distribution is proper or within the terms of the Plan, or whether the manner of making any payment or distribution is proper. The Trustee is accountable only to the Administrator for any payment or distribution made by it in good faith on the order or direction of the Administrator. (d) Directions by others. In the event that the Trustee shall be directed by a Participant (pursuant to the Participant Direction Procedures if the Plan permits Participant directed investments), the Employer, or an Investment Manager or other agent appoi nted by the Employer with respect to the investment of any or all Plan assets, the Trustee shall have no liability with respect to the investment of such assets, but shall be responsible only to execute such investment instructions as so directed. (1) The Trustee shall be entitled to rely fully on the written (or other form acceptable to the Administrator and the Trustee, including but not limited to, voice recorded) instructions of a Participant (pursuant to the Participant Direction Procedures ), the Employer, or any fiduciary or nonfiduciary agent of the Emplo yer, in the discharge of such duties, and shall not be liable for any loss or other liability resulting from such direction (or lack of direction) of the investment of any part of the Plan as sets. (2) The Trustee may delegate the duty of executing such in structions to any nonfiduciary agent, which may be an affiliate of the Trustee or any Plan representative. (3) The Trustee may refuse to comply with any direction from the Participant in the event the Trustee, in its sole and absolute discretion, deems such direction improper by virtue of applicable law. The Trustee shall not be responsible or liable for any loss or expense that may result from the Trustee's refusal or failure to comply with any direction from the Participant. (4) Any costs and expenses related to compliance with the Participant's directions shall be borne by the Participant's Directed Account, unless paid by the Employer. (5) Notwithstanding anything herein above to the contrary, the Trustee shall not invest any portion of a Participant's Directed Account in "collectibles" within the meaning of Code §408(m). (e) Records. The Trustee will maintain records of receipts and disbursements and furnish to the Employer and/or Administrator for each Plan Year a written annual report pursuant to Section 7.9. (f) Employment of bank or trust company. The Trustee may employ a bank or trust company pursuant to the terms of its usual and customary bank agency agreement, under which the duties of such bank or trust company shall be of a custodial, cleri cal and record-keeping nature. 2021/11/09 City Council Post Agenda Page 63 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 34 (g) Payment of expenses. The Trustee may employ and pay from the Trust Fund reasonable compensation to agents, attorneys, accountants and other persons to advise the Trustee as in its opinion may be necessary. The Trustee may delegate to any agent, attorney, accountant or other person selected by it any non -Trustee power or duty vested in it by the Plan, and the Trustee may act or refrain from acting on the advice or opinion of any such person. 7.2 INVESTMENT POWERS AND DUTIES OF DISCRETIONARY TRUSTEE (a) Discretionary authority. This Section applies if the Employer, in the Adoption Agreement or as otherwise agreed upon by the Employer and the Trustee, designates the Trustee to administer all or a portion of the trust as a Discretionary Trustee. If so designated, then the Trustee has the discretion and authority to invest, manage, and control those Plan assets except, howeve r, with respect to those assets which are subject to the investment direction of a Participant (if Participant directed investments are permitted), or an Investment Manager, the Administrator, or other agent appointed by the Employer. The exercise of any invest ment discretion hereunder shall be consistent with the "funding policy and method" determined by the Employer. (b) Duties. The Trustee shall, except as otherwise provided in this Plan, invest and reinvest the Trust Fund to keep the Trust Fund invested without distinction between principal and income and in such securities or property, real or personal, wherever situated, as the Trustee shall deem advisable, including, but not limited to, common or preferred stocks, open -end or closed-end mutual funds, bonds and other evidences of indebtedness or ownership, and real estate or any interest therein. The Trustee shall at all times in making investments of the Trust Fund consider, among other factors, the short and long-term financial needs of the Plan on the basis of information furnished by the Employer. In making such investments, the Trustee shall not be restricted to securities or other property of the character expressly authorized by the applicable law for trust investments; however, the Trustee shall give d ue regard to any limitations imposed by the Code so that at all times this Plan may qualify as a qualified Plan and Trust. The Trustee shall discharge its duties with respect to the Plan solely in the interest of the Participants and Beneficiaries and with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. (c) Powers. The Trustee, in addition to all powers and authorities under common law, statutory authority and other provisions of this Plan, shall have the following powers and authorities to be exercised in the Trustee's sole discretion: (1) To purchase, or subscribe for, any securities or other property and to retain the same. In conjunction with the purchase of securities, margin accounts may be opened and maintained; (2) To sell, exchange, convey, transfer, grant options to purchase, or otherwise dispose of any securities or other propert y held by the Trustee, by private contract or at public auction. No person dealing with the Trustee shall be bound to see to th e application of the purchase money or to inquire into the validity, expediency, or propriety of any such sale or other disposition, with or without advertisement; (3) To vote upon any stocks, bonds, or other securities; to give general or special proxies or powers of attorney with or without power of substitution; to exercise any conversion privileges, subscription rights or other options, and to make any payments incidental thereto; to oppose, or to consent to, or otherwise participate in, corporate reorganizations or other cha nges affecting corporate securities, and to delegate discretionary powers, and to pay any assessments or charges in connection therewith; and generally to exercise any of the powers of an owner with respect to stocks, bonds, securities, or other proper ty; (4) To cause any securities or other property to be registered in the Trustee's own name, or in the name of a nominee or in a street name provided such securities or other property are held on behalf of the Plan by (i) a bank or trust company, (ii) a broker or dealer registered under the Securities Exchange Act of 1934, or a nominee of such broker or dealer, or (iii) a clearing agency as defined in Section 3(a)(23) of the Securities Exchange Act of 1934; (5) To invest in a common, collective, or pooled trust fund (the provisions of which are incorporated herein by reference) maintained by any Trustee (or any affiliate of such Trustee) hereunder pursuant to Revenue Ruling 81-100 (as modified by Rev. Rul. 2011-1 or any subsequent guidance), all or such part of the Trust Fund as the Trustee may deem advisable, and the part of the Trust Fund so transferred shall be subject to all the terms and provisions of the common, collective, or pooled trust fund which contemplate the commingling for investment purposes of such trust assets with trust assets of other trusts. The name of the trust fund may be specified in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections). The Trustee may withdraw from such common, collective, or pooled trust fund all or such part of the Trust Fund as the Trustee may deem advisable; (6) To borrow or raise money for the purposes of the Plan in such amount, and upon such terms and conditions, as the Trustee shall deem advisable; and for any sum so borrowed, to issue a promissory note as Trustee, and to secure the repayment thereof by pledging all, or any part, of the Trust Fund; and no person lending money to the Trustee shall be bound to see to the application of the money lent or to inquire into the validity, expediency, or propriety of any borrowing; (7) To accept and retain for such time as it may dee m advisable any securities or other property received or acquired by it as Trustee hereunder, whether or not such securities or other property would normally be purchased as investments hereunder; 2021/11/09 City Council Post Agenda Page 64 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 35 (8) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted; (9) To settle, compromise, or submit to arbitration (provided such arbitration does not apply to qualifica tion issues nor to Participants or Beneficiaries) any claims, debts, or damages due or owing to or from the Plan, to commence or defend suits or legal or administrative proceedings, and to represent the Plan in all suits and legal and administrative procee dings; (10) To employ suitable agents and counsel and to pay their reasonable expenses and compensation, and such agents or counsel may or may not be an agent or counsel for the Employer; (11) To apply for and procure from the Insurer as an investment of the Trust Fund any annuity or other Contracts (on the life of any Participant, or in the case of a 401(a) Plan, on the life of any person in whom a Participant has an insurable interes t, or on the joint lives of a Participant and any person in whom the Participant has an insurable interest) as the Administrator shall deem proper; to exercise, at any time or from time to time, whatever rights and privileges may be granted under such annuity, or other Contracts; to collect, receive, and settle for the proceeds of all such annuity, or other Contracts as and when entitled to do so under the provisions thereof; (12) To invest funds of the Trust in time deposits or savings accounts bearing a reasonable rate of interest or in cash or cash balances without liability for interest thereon, including the specific authority to invest in any type of deposit of the Trustee (or of a financial institution related to the Trustee); (13) To invest in Treasury Bills and other forms of United States government obligations; (14) To sell, purchase and acquire put or call options if the options are traded on and purchased through a national securities exchange registered under the Securities Exchange Act of 1934, as amended, or, if the options are not traded on a national securities exchange, are guaranteed by a member firm of the New York Stock Exchange regardless of whether such options are covered; (15) To deposit monies in federally insured savings accounts or certificates of deposit in banks or savings and loan associations including the specific authority to make deposit into any savings accounts or certificates of deposit of the Trustee (or a financial institution related to the Trustee); (16) To pool all or any of the Trust Fund, from time to time, with assets belonging t o any other qualified employee pension benefit trust created by the Employer or any Affiliated Employer, and to commingle such assets and make joint or common investments and carry joint accounts on behalf of this Plan and Trust and such other trust or trusts, allocating undivided shares or interests in such investments or accounts or any pooled assets of the two or more trusts in accordance with their respecti ve interests; and (17) To do all such acts and exercise all such rights and privileges, although not specifically mentioned herein, as the Trustee may deem necessary to carry out the purposes of the Plan. (d) Appointment of Investment Manager or others. The Trustee may appoint, at its option, an Investment Manager, investment adviser, or other agent to provide direction to the Trustee with respect to the investment of any or all of the Plan assets. Such appointment shall be in writing and shall specifically identify the Plan assets with respect to which the Investment Manager or other agent shall have the authority to direct the investment. 7.3 INVESTMENT POWERS AND DUTIES OF NONDISCRETIONARY TRUSTEE (a) No discretionary powers. This Section applies if the Employer, in the Adoption Agreement or as otherwise agreed upon by the Employer and the Trustee, designates the Trustee to administer all or a portion of the trust as a nondiscretionary Trustee. If so designated, then the Trustee shall have no discretionary authority to invest, manage, or control those Plan assets, but must act solely as a Directed Trustee of those Plan assets. A nondiscretionary Trustee, as Directed Trustee of the Plan funds it holds, is au thorized and empowered, by way of limitation, with the powers, rights and duties set forth herein, each of which the nondiscretionary Trustee exercises solely as Directed Trustee in accordance with the direction of the party which has the authority to manage and control the investment of the Plan assets. If no directions are p rovided to the Trustee, the Employer will provide necessary direction. Furthermore, the Employer and the nondiscretionary Trustee may, in writing, limit the powers of the nondiscretionary Trustee to any combination of powers listed within this Section. The party which has the authority to manage and control the investment of the Plan assets shall discharge its duties with respect to the Plan solely in the interest of the Participants and Beneficiaries and with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. 2021/11/09 City Council Post Agenda Page 65 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 36 (b) Powers. The Trustee, in addition to all powers and authorities under common law, statutory authority and other provisions of this Plan, shall have the following powers and authorities: (1) To invest the assets, without distinction between principal and income, in securities or property, real or personal, wherever situated, including, but not limited to, common or preferred stocks, open -end or closed-end mutual funds, bonds and other evidences of indebtedness or ownership, and real estate or any interest therein. In making such investments, the Trustee shall not be restricted to securities or other property of the character expressly authorized by the applicable law for trust investments; however, the Trustee shall give due regard to any limitations imposed by the Code so that at all times this Plan may qualify as a qualified Plan and Trust; (2) To purchase, or subscribe for, any securities or other property and to retain the same. In conjunction with the purchase of securities, margin accounts may be opened and maintained; (3) To sell, exchange, convey, transfer, grant options to purchase, or otherwise dispose of any securities or other property held by the Trustee, by private contract or at public auction. No person dealing with the Trustee shall be bound to see to th e application of the purchase money or to inquire into the validity, expediency, or propriety of any such sale or other disposition, with or without advertisement; (4) At the direction of the party which has the authority or discretion, to vote upon any stocks, bonds, or other securities; to give general or special proxies or powers of attorney with or without power of substitution; to exercise any conversion privileges, subscription rights or other options, and to make any payments incidental thereto; to oppose, or to consent to, o r otherwise participate in, corporate reorganizations or other changes affecting corporate securities, and to delegate powers, and pay any assessments or charges in connection therewith; and generally to exercise any of the powers of an owner with respect to stocks, bonds, securities, or other property; (5) To cause any securities or other property to be registered in the Trustee's own name, or in the name of a nominee or in a street name provided such securities or other property are held on behalf of the Plan by (i) a b ank or trust company, (ii) a broker or dealer registered under the Securities Exchange Act of 1934, or a nominee of such broker or dealer, or (iii) a clea ring agency as defined in Section 3(a)(23) of the Securities Exchange Act of 1934; (6) To invest in a common, collective, or pooled trust fund (the provisions of which are incorporated herein by reference) maintained by any Trustee (or any affiliate of such Trustee) hereunder pursuant to Revenue Ruling 81-100 (as modified by Rev. Rul. 2011-1 or any subsequent guidance), all or such part of the Trust Fund as the party which has the authority to manage and control the investment of the assets shall deem advisable, and the part of the Trust Fund so transferred shall be subject to all the terms and provisions of the common, collective, or pooled trust fund which contemplate the commingling for investment purposes of such trust assets with trust assets of other trusts. The name of the trust fund may be specified in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections); (7) To borrow or raise money for the purposes of the Plan in such amount, and upon such terms and conditions, as the Trustee shall deem advisable; and for any sum so borrowed, to issue a promissory note as Tr ustee, and to secure the repayment thereof by pledging all, or any part, of the Trust Fund; and no person lending money to the Trustee shall be bound to see to the application of the money lent or to inquire into the validity, expediency, or propriety of any borrowing; (8) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted; (9) To settle, compromise, or submit to arbitration (provided such arbitration does not apply to qualification issues nor to Participants or Beneficiaries) any claims, debts, or damages due or owing to or from the Plan, to commence or defend suits or legal or administrative proceedings, and to represent the Plan in all suits and legal and administrative proceedings; (10) To employ suitable agents and counsel and to pay their reasonable expenses and compensation, and such agent or counsel may or may not be an agent or counsel for the Employer; (11) To apply for and procure from the Insurer as an investment of the Trust Fund any annuity or other Contracts (on the life of any Participant, or in the case of a 401(a) Plan, on the life of any person in whom a Participant has an insurable intere st, or on the joint lives of a Participant and any person in whom the Participant has an insurable interest) as the Administrator sh all deem proper; to exercise, at the direction of the person with the authority to do so, whatever rights and privileges may be granted under such annuity or other Contracts; to collect, receive, and settle for the proceeds of all such annuity or other Contracts as and when entitled to do so under the provisions thereof; (12) To invest funds of the Trust in time deposits or savings accounts bearing a reasonable rate of interest or in cash or cash balances without liability for interest thereon, including the specific authority to invest in any type of deposit of the Tru stee (or of a financial institution related to the Trustee); (13) To invest in Treasury Bills and other forms of United States government obligations; 2021/11/09 City Council Post Agenda Page 66 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 37 (14) To sell, purchase and acquire put or call options if the options are traded on and purchased through a national securities exchange registered under the Securities Exchange Act of 1934, as amended, or, if the options are not traded on a national securities exchange, are guaranteed by a member firm of the New York Stock Exchange regardless of whether such options are covered; (15) To deposit monies in federally insured savings accounts or certificates of deposit in banks or savings and loan associations including the specific authority to make deposit into any savings accounts or certificates of deposit of the Tru stee (or a financial institution related to the Trustee); and (16) To pool all or any of the Trust Fund, from time to time, with assets belonging to any other qualified employee pension benefit trust created by the Employer or any Affiliated Employer, and to commingle such assets and make joint or common investments and carry joint accounts on behalf of this Plan and such other trust or trusts, allocating undivided shares or interests in such investments or accounts or any pooled assets of the two or more trusts in accordance with their respective interests. (c) The Trustee shall have no responsibility to enforce the collection from the Employer of any contribution to the Plan or determine the correctness of the amount or timing any contribution. The Employer is responsible for transmitting contribution s to the Trustee at such times and in such manner as is mutually agreed upon by the Employer and the Trustee and as required by th e Plan and applicable law. 7.4 POWERS AND DUTIES OF CUSTODIAN The Employer may appoint a Custodian of the Plan assets. A Custodian has the same powers, rights and duties as a nondiscretionary Trustee. Any reference in the Plan to a Trustee also is a reference to a Custodian unless the context of the Plan indicates otherwise. A limitation of the Trustee's liability by Plan provision also acts as a limitation of the Custodian's liability. The Custodian wi ll be protected from any liability with respect to actions taken pursuant to the direction of the Trustee, Administrator, the Employer, an Investment Manager, a fiduciary or other third party with authority to provide direction to the Custodian. The resignation or removal of the Custodian shall be made in accordance with Section 7.11 as though the Custodian were a Trustee. 7.5 LIFE INSURANCE (a) Permitted insurance. The Trustee (or Insurer), in accordance with operational procedures of the Administrator, shall ratably apply for, own, and pay all premiums on Contracts on the lives of the Participants or, in the case of a 401(a) Plan, on the life of a member of the Participant's family or on the joint lives of a Participant and a member of the Participant's family. Furthermo re, if a Contract is purchased on the joint lives of the Participant and another person and such other person predeceases the Participant, then the Contract may not be maintained under this Plan. Any initial or additional Contract purchased on behalf of a Participant s hall have a face amount of not less than $1,000, an amount set forth in the Administrator's procedures, or the limitation of the Insurer, whichever is greater. If a life insurance Contract is to be purchased for a Participant, then the aggregate premium for ordin ary life insurance for each Participant must be less than 50% of the aggregate contributions and Forfeitures allocated to the Participant's Combined Account. For purposes of this limitation, ordinary life insurance Contracts are Contracts with both non -decreasing death benefits and non-increasing premiums. If term insurance or universal life insurance is purchased, then the aggregate premium must be 25% or less of the aggregate contributions and Forfeitures allocated to the Participant's Combined Account. If both term insurance and ordinary life insurance are purchased, then the premium for term insurance plus one-half of the premium for ordinary life insurance may not in the aggregate exceed 25% of the aggregate Employer contributions and Forfeitures allocated to the Participant's Combined Account. Notwithstanding the preceding, the limitations imposed herein with respect to the purchase of life insurance shall not apply, in the case of a 401(a) Plan, to the portion of the Participant's Account that has accumulated for at least two (2) Plan Years or to the entire Participant's Account if the Participant has been a Participant in the Plan for at least five (5) years. In addition, amounts transferred to this Plan in accordance with Section 4.6(f)(1)(ii) or (iii) and a Participant's Vo luntary Contribution Account may be used to purchase Contracts without limitation. Thus, amounts that are not subject to the limitations contained herein may be used to purchase life insurance on any person in whom a Participant has an insurable interest or on the joint lives of a Participant and any person in whom the Participant has an insurable interest, and without regard to the amount of premiums paid to purchase any life insurance hereunder. (b) Contract conversion at retirement. The Trustee (or Insurer) must distribute any Contracts to the Participant or convert the entire value of the Contracts at or before retirement into cash or provide for a periodic income so that no portion of such v alue may be used to continue life insurance protection beyond the date on which benefits commence. (c) Limitations on purchase. No life insurance Contracts shall be required to be obtained on an individual's life if, for any reason (other than the nonpayment of premiums) the Insurer will not issue a Contract on such individual's life. (d) Proceeds payable to plan. The Trustee (or Insurer) will be the owner of any life insurance Contract purchased under the terms of this Plan. The Contract must provide that the proceeds will be payable to the Trustee (or Insurer); however, the Trustee (or Insurer) shall be required to pay over all proceeds of the Contract to the Participant's "designated Beneficiary" in accordance with the distribution provisions of Article VI. A Participant's Spouse will be the "designated Beneficiary" pursuant to Section 6.2, unless 2021/11/09 City Council Post Agenda Page 67 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 38 a qualified election has been made in accordance with Sections 6.5 and 6.6 of the Plan, if applicable. Under no circumstances sh all the Trust retain any part of the proceeds that are in excess of the cash surrender value immediately prior to death. However, the Trustee (or Insurer) shall not pay the proceeds in a method that would violate the requirements of the Retirement Equity Act of 1984, as stated in Article VI of the Plan, or Code §401(a)(9) and the Regulations thereunder. In the event of any conflict be tween the terms of this Plan and the terms of any insurance Contract purchased hereunder, the Plan provisions shall control. (e) No responsibility for act of Insurer. The Employer, the Administrator and the Trustee shall not be responsible for the validit y of the provisions under a Contract issued hereunder or for the failure or refusal by the Insurer to provide benefits under su ch Contract. The Employer, Administrator and the Trustee are also not responsible for any action or failure to act by the Insure r or any other person which results in the delay of a payment under the Contract or which renders the Contract invalid or unenforceabl e in whole or in part. 7.6 LOANS TO PARTICIPANTS (a) Permitted Loans. The Trustee (or the Administrator if the Trustee is a nondiscretionary Trustee or if loans are treated as Participant directed investments) may, in the Trustee's (or, if applicable, the Administrator's) sole discretion, make loans to Participants. If loans are permitted, then the following shall apply: (1) loans shall be made available to all Participants on a reasonably equivalent basis; (2) loans shall bear a reasonable rate of interest; (3) loans shall be adequately secured; and (4) loans shall provide for periodic repayment over a reasonable period of time. Furthermore, no Participant loan shall exceed the Participant's Vested interest in the Plan. For purposes of this Section, the term Participant shall include any Eligible Empl oyee who is not yet a Participant, if, pursuant to the Adoption Agreement, "rollovers" are permitted to be accepted from Eligible Employees. (b) Prohibited assignment or pledge. An assignment or pledge of any portion of a Participant's interest in the Plan and a loan, pledge, or assignment with respect to any insurance Contract purchased under the Plan, shall be treated as a loan under this Section. (c) Loan program. The Administrator shall be authorized to establish a Participant loan program to provide for loans under the Plan. In order for the Administrator to implement such loan program, a separate written document forming a part of this Plan must be adopted, which document shall specifically include, but need not be limited to, the following: (1) the identity of the person or positions authorized to administer the Participant loan program; (2) a procedure for applying for loans; (3) the basis on which loans will be approved or denied; (4) limitations, if any, on the types and amounts of loans offered; (5) the procedure under the program for determining a reasonable rate of interest; (6) the types of collateral which may secure a Participant loan; and (7) the events constituting default and the steps that will be taken to preserve Plan assets in the event such default. (d) Loan default. Notwithstanding anything in this Plan to the contrary, if a Participant or Beneficiary defaults on a loan made pursuant to this Section that is secured by the Participant's interest in the Plan, then a Participant's interest may be offs et by the amount subject to the security to the extent there is a distributable event permitted by the Code or Regulations. (e) Loans subject to Plan terms. Notwithstanding anything in this Section to the contrary, if this is an amendment and restatement of an existing Plan, any loans made prior to the date this amendment and restatement is adopted shall be subject to the terms of the Plan in effect at the time such loan was made. 7.7 ALLOCATION AND DELEGATION OF RESPONSIBILITIES If there is more than one Trustee, then the responsibilities of each Trustee may be specified by the Employer and accepted in writing by each Trustee. If no such delegation is made by the Employer, then the Trustees may allocate the r esponsibilities among themselves, in which event the Trustees shall notify the Employer and the Administrator in writing of such action and specify the responsibilities of each Trustee. Except where there has been an allocation and delegation of powers, if there shall be more than one Trustee, they shall act by a majority of their number, but may authorize one or more of them to sign papers on their behalf. 7.8 TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES The Trustee shall be paid such reasonable compensation as set forth in the Trustee's fee schedule (if the Trustee has such a schedule) or as agreed upon in writing by the Employer and the Trustee. However, an individual serving as Trustee who already receives full-time compensation from the Employer shall not receive compensation from this Plan. In addition, the Trustee shall be reimburs ed for any reasonable expenses, including reasonable counsel fees incurred by it as Trustee. Such compensatio n and expenses shall be paid from 2021/11/09 City Council Post Agenda Page 68 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 39 the Trust Fund unless paid or advanced by the Employer. All taxes of any kind whatsoever that may be levied or assessed under existing or future laws upon, or in respect of, the Trust Fund or the income thereof, shall be p aid from the Trust Fund. 7.9 ANNUAL REPORT OF THE TRUSTEE (a) Annual report. Within a reasonable period of time after the later of the Anniversary Date or receipt of the Employer's contribution for each Plan Year, the Trustee, or its agent, shall furnish to the Employer and Administrator a written statement of account with respect to the Plan Year for which such contribution was made setting forth: (1) the net income, or loss, of the Trust Fund; (2) the gains, or losses, realized by the Trust Fund upon sales or other disposition of the assets; (3) the increase, or decrease, in the value of the Trust Fund; (4) all payments and distributions made from the Trust Fund; and (5) such further information as the Trustee and/or Administrator deems appropriate. (b) Employer approval of report. The Employer, promptly upon its receipt of each such statement of account, shall acknowledge receipt thereof in writing and advise the Trustee and/or Administrator of its appro val or disapproval thereof. Failure by the Employer to disapprove any such statement of account within thirty (30) days after its receipt thereof shall be deemed an app roval thereof. The approval by the Employer of any statement of account shall be binding on the Employer and the Trustee as to all matters contained in the statement to the same extent as if the account of the Trustee had been settled by judgment or decree in an action for a judicial settlement of its account in a court of competent jurisdiction in which the Trustee, the Employer and all persons having or claiming an interest in the Plan were parties. However, nothing contained in this Section shall deprive the Trustee of its right to have its accounts judicially settled if the Trustee so desires. 7.10 RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE (a) Trustee resignation. Unless otherwise agreed to by both the Trustee and the Employer, a Trustee may resign at any time by delivering to the Employer, at least thirty (30) days before its effective date, a written notice of resignation. (b) Trustee removal. Unless otherwise agreed to by both the Trustee and the Employer, the Employer may remove a Trustee at any time by delivering to the Trustee, at least thirty (30) days before its effective date, a written notice of such Trustee's removal. (c) Appointment of successor. Upon the death, resignation, incapacity, or removal of any Trustee, a successor may be appointed by the Employer; and such successor, upon accepting such appointment in writing and delivering same to the Employer, shall, without further act, become vested with all the powers and responsibilities of the predecessor as if such successor had been originally named as a Trustee herein. Until such a successor is appointed, any remaining Trustee or Trustees shall have full authority to act under the terms of the Plan. (d) Appointment of successor prior to removal of predecessor. The Employer may designate one or more successors prior to the death, resignation, incapacity, or removal of a Trustee. In the event a successor is so designated by the Employer and ac cepts such designation, the successor shall, without further act, become vested with all the powers and responsibiliti es of the predecessor as if such successor had been originally named as Trustee herein immediately upon the death, resignation, incapacity, or remo val of the predecessor. (e) Trustee's statement upon cessation of being Trustee. Whenever any Trustee hereunder ceases to serve as such, the Trustee shall furnish to the Employer and Administrator a written statement of account with respect to the portion of the Plan Year d uring which the individual or entity served as Trustee. This statement shall be either (i) included as part of the annual statement of account for the Plan Year required under Section 7.9 or (ii) set forth in a special statement. Any such special statement of account should be rendered to the Employer no later than the due date of the annual st atement of account for the Plan Year. The procedures set forth in Section 7.9 for the approval by the Employer of annual statements of account shall apply to any special statemen t of account rendered hereunder and approval by the Employer of any such special statement in the manner provided in Section 7.9 shall have the same effect upon the statement as the Employer's approval of an annual statement of account. No successor to the Tru stee shall have any duty or responsibility to investigate the acts or tran sactions of any predecessor who has rendered all statements of account required by Section 7.9 and this subparagraph. 7.11 TRANSFER OF INTEREST Notwithstanding any other provision contained in this Plan, the Trustee at the direction of the Administrator shall transfer the interest, if any, of a Participant to another trust forming part of a pension, profit sharing, or stock bonus plan that meets the requirements of Code §401(a), provided that the trust to which such transfers are made permits the transfer to be made and further provided that the terms of the transferee plan properly allocates the funds in each account to a transferee account that preserves all the required features and 2021/11/09 City Council Post Agenda Page 69 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 40 restrictions applicable to such account under this Plan. However, the transfer of amounts from this Plan to a nonqualified foreign trust is treated as a distribution and the transfer of assets and liabilities from this Plan to a plan that satisfies Section 1165 of the Puerto Rico Code is also treated as distribution from the transferor plan. 7.12 TRUSTEE INDEMNIFICATION To the extent permitted by the Code, the Employer agrees to indemnify and hold harmless the Trustee against any and all claim s, losses, damages, expenses and liabilities the Trustee may incur in the exercise and performance of the Trustee's powers and du ties hereunder, unless the same are determined to be due to gross negligence or willful misconduct. ARTICLE VIII AMENDMENT, TERMINATION AND MERGERS 8.1 AMENDMENT (a) General rule on Employer amendment. The Employer shall have the right at any time to amend this Plan subject to the limitations of this Section. However, any amendment that affects the rights, duties or responsibilities of the Trustee (or Insurer) or Administrator may only be made with the Trustee's (or Insurer's) or Administrator's written consent. Any such amendment shall become effective as provided therein upon its execution. The Trustee (or Insurer) shall not be required to execute any such amendment unless the amendment affects the duties of the Trustee (or Insurer) hereunder. (b) Permissible amendments. The Employer may (1) change the choice of options in the Adoption Agreement, (2) add any appendix to the Adoption Agreement that is specifically permitted pursuant to the terms of the Plan (e.g., Appendix A to the Adoption Agreement (Special Effective Dates and Other P ermitted Elections)); (3) amend administrative trust or custodial provisions, (4) add certain sample or model amendments published by the Internal Revenue Service or other required good -faith amendments which specifically provide that their adoption will not cause the Plan to be treated as an individually designed plan, and (5) add or change provisions permitted under the Plan and/or specify or change the effective date of a provision as permi tted under the Plan. (c) Volume submitter practitioner amendments. The Employer (and every Participating Employer) expressly delegates authority to the volume submitter practitioner, the right to amend the Plan by submitting a copy of the amendment to each Emp loyer (and Participating Employer) who has adopted this plan, after first having received a ruling or favorable determination from the Internal Revenue Service that the volume submitter Plan as amended qualifies under Code §401(a) (unless a ruling or determina tion is not required by the IRS). (d) Impermissible amendments. No amendment to the Plan shall be effective if it authorizes or permits any part of the Trust Fund (other than such part as is required to pay taxes and administration expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the Participants or their Beneficiaries or estates; or causes any reduction in the amount credited to the account of any Participant; or causes or permits any portion of the Trust Fund to revert to or become property of the Emp loyer. 8.2 TERMINATION (a) Termination of Plan. The Employer shall have the right at any time to terminate the Plan by delivering to the Trustee (or Insurer) and Administrator written notice of such termination. Upon any full or partial termination or upon the complete discontinuance of the Employer's Contributions to the Plan (in the case of a Profit Sharing Plan), all amounts credited to th e affected Participants' Combined Accounts shall become 100% Vested and shall not thereafter be subject to Forfeiture. (b) Distribution of assets. Upon the full termination of the Plan, the Employer shall direct the distribution of the assets to Participants in a manner that is consistent with and satisfies the provisions of Section 6.5. Distributions to a Participant shall be made in cash (or in property if permitted in the Adoption Agreement) or through the purchase of irrevocable nontransferable deferred commitments from the Insurer. 8.3 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS This Plan may be merged or consolidated with, or its assets and/or liabilities may be transferred to any other plan only if t he benefits which would be received by a Participant of this Plan, in the event of a termination of the plan immediately after such transfer, merger or consolidation, are at least equal to the benefits the Participant would have received if the Plan had terminated im mediately before the transfer, merger or consolidation. 2021/11/09 City Council Post Agenda Page 70 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 41 ARTICLE IX MISCELLANEOUS 9.1 EMPLOYER ADOPTIONS (a) Method of adoption. Any organization may become the Employer hereunder by executing the Adoption Agreement in a form satisfactory to the Trustee (or Insurer), and it shall provide such additional information as the Trustee (or Insurer) may require. The consent of the Trustee (or Insurer) to act as such shall be signified by its execution of the Adoption Agreement or a separat e agreement (including, if elected in the Adoption Agreement, a separate trust agreement). (b) Separate affiliation. Except as otherwise provided in this Plan, the affiliation of the Employer and the participation of its Participants shall be separate and apart from that of any other employer and its participants hereunder. 9.2 PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute a contract between the Employer and any Participant or to be a consideration or an inducement for the employment of any Participant or Employee. Nothing contained in this Plan shall be deemed to give any Participant or Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge any Participant or Employee at any time regardless of the effect which such discharge shall have upon the Employee as a Participant of this P lan. 9.3 ALIENATION (a) General rule. Subject to the exceptions provided below and as otherwise permitted by the Code, no benefit which shall be payable to any person (including a Participant or the Participant's Beneficiary) shall be subject in any manner to anticipati on, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements, or torts of any such person, nor shall it be subject to attachment or legal process for or against such person, and the same shall not be recognized except to such extent as may be required by law. (b) Exception for loans. Subsection (a) shall not apply to the extent a Participant or Beneficiary is indebted to the Plan by reason of a loan made pursuant to Section 7.6. At the time a distribution is to be made to or for a Participant's or Beneficiary's benefit, such portion of the amount to be distributed as shall equal such indebt edness shall be paid to the Plan, to apply against or discharge such indebtedness. Prior to making a payment, however, the Participant or Beneficiary must be given notice by the Administrator th at such indebtedness is to be so paid in whole or part from th e Participant's interest in the Plan. If the Participant or Beneficiary does not agree that the indebtedness is a valid claim against the Participant's interest in the Plan, the Participant or Beneficiary shall be entitled to a review of the validity of the claim in accordance with procedures provided in Section 2.10. (c) Exception for QDRO. Subsection (a) shall not apply to a "qualified domestic relations order" defined in Code §414(p), and those other domestic relations orders permitted to be so treated by the Administrator under the provisions of the Retirement Equity Act of 1984. 9.4 PLAN COMMUNICATIONS, INTERPRETATION AND CONSTRUCTION (a) Applicable law. This Plan and Trust shall be construed and enforced according to the Code, and the laws of the state or commonwealth in which the Employer's (or if there is a corporate Trustee, the Trustee's, or if the Plan is fully insured, the Insurer's) principal office is located (unless otherwise designated in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), other than its laws respecting choice of law, to the extent not pre-empted by federal law. (b) Administrator's discretion. The Administrator has total and complete discretion to interpret and construe the Plan and to determine all questions arising in the administration, interpretation and application of the Plan. Any determination the Admi nistrator makes under the Plan is final and binding upon any affected person. The Administrator must exercise all of its Plan powers and discretion, and perform all of its duties in a uniform manner. (c) Communications. All Participant or Beneficiary notices, designations, elections, consents or waivers must be made in a form the Administrator (or, as applicable, the Trustee or Insurer) specifies or otherwise approves. Any person entitled to notice under the Plan may waive the notice or shorten the notice period unless such actions are contrary to applicable la w. (d) Evidence. Anyone, including the Employer, required to give data, statements or other information relevant under the terms of the Plan ("evidence") may do so by certificate, affidavit, document or other form which the person to act in reliance may consider pertinent, reliable and genuine, and to have been signed, made or presented by the proper party or parties. The Administrator , Trustee and Insurer are protected fully in acting and relying upon any evidence described under the immediately precedin g sentence. (e) Plan terms binding. The Plan is binding upon all parties, including but not limited to, the Employer, Trustee, Insurer, Administrator, Participants and Beneficiaries. 2021/11/09 City Council Post Agenda Page 71 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 42 (f) Parties to litigation. Except as otherwise provided by applicable law, a Participant or a Beneficiary is not a necessary party or required to receive notice of process in any court proceeding involving the Plan, the Trust or any fiduciary. Any final judgment (not subject to further appeal) entered in any such proceeding will be binding upon all parties, including the Employer, the Administrator, Trustee, Insurer, Participants and Beneficiaries. (g) Fiduciaries not insurers. The Trustee, Administrator and the Employer in no way guarantee the Plan assets from loss or depreciation. The Employer does not guarantee the payment of any money which may be or becomes due to any person from the Plan. The liability of the Employer, the Administrator and the Trustee to make any distribution from the Trust at any time an d all times is limited to the then available assets of the Trust. (h) Construction/severability. The Plan, the Adoption Agreement, the Trust and all other documents to which they refer, will be interpreted consistent with and to preserve tax qualification of the Plan under Code §401(a) and tax exemption of the Trust under Code §501(a) and also consistent with other applicable law. To the extent permissible under applicable law, any provision whi ch a court (or other entity with binding authority to interpret the Plan) d etermines to be inconsistent with such construction and interpretation, is deemed severed and is of no force or effect, and the remaining Plan terms will remain in full force and ef fect. (i) Uniformity. All provisions of this Plan shall be interpreted and applied in a uniform manner. (j) Headings. The headings and subheadings of this Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof. 9.5 GENDER, NUMBER AND TENSE Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were a lso used in another gender in all cases where they would so apply; whenever any words are used herein in the sin gular or plural form, they shall be construed as though they were also used in the other form in all cases where they would so apply; and whenever any words are used herein in the past or present tense, they shall be construed as though they were also used in the other form in all cases where they would so apply. 9.6 LEGAL ACTION In the event any claim, suit, or proceeding is brought regarding the Trust and/or Plan established hereunder to which the Tru stee (or Insurer), the Employer or the Administrator may be a party, and such claim, suit, or proceeding is resolved in favor of the Trustee (or Insurer), the Employer or the Administrator, they shall be entitled to be reimbursed from the Trust Fund for any and all cost s, attorney's fees, and other expenses pertaining thereto incurred by them for which they shall have become liable. 9.7 PROHIBITION AGAINST DIVERSION OF FUNDS (a) General rule. Except as provided below and otherwise specifically permitted by law, it shall be impossible by operation of the Plan or of the Trust, by termination of either, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by any other means, for any part of the corpus or income of any Trust Fund maintained pursuant to the Plan or any funds contributed thereto to be used for, or diverted to, purposes other than the exclusive benefit of Participan ts or their Beneficiaries. (b) Mistake of fact. In the event the Employer shall make a contribution under a mistake of fact, the Employer may demand repayment of such contribution at any time within one (1) year following the time of payment and the Trustee (or Insurer) shall return such amount to the Employer within the one (1) year period. Earnings of the Plan attributable to the contributions may not be returned to the Employer but any losses attributable thereto must reduce the amount so returned. 9.8 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE The Employer, Administrator and Trustee, and their successors, shall not be responsible for the validity of any Contract issu ed hereunder or for the failure on the part of the Insurer to make payments provided by any such Contract, or for the action of any person which may delay payment or render a Contract null and void or unenforceable in whole or in part. 9.9 INSURER'S PROTECTIVE CLAUSE Except as otherwise agreed upon in writing between the Employer and the Insurer, an Insurer which issues any Contracts hereunder shall not have any responsibility for the validity of this Plan or for the tax or legal aspects of this Plan. The Insurer sha ll be protected and held harmless in acting in accordance with any written direction of the Administrator or Trustee, and shall have no duty to see to the application of any funds paid to the Trustee, nor be required to question any actions directed by the Administrator or Truste e. Regardless of any provision of this Plan, the Insurer shall not be required to take or permit any action or allow any benefit or privilege contrary to the terms of any Contract which it issues hereunder, or the rules of the Insurer. 2021/11/09 City Council Post Agenda Page 72 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 43 9.10 RECEIPT AND RELEASE FOR PAYMENTS Any payment to any Participant, the Participant's legal representative, Beneficiary, or to any guardian or committee appointe d for such Participant or Beneficiary in accordance with the provisions of this Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Trustee (or Insurer) and the Employer. 9.11 ACTION BY THE EMPLOYER Whenever the Employer under the terms of the Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by a person duly authorized by its legally constituted authority. 9.12 APPROVAL BY INTERNAL REVENUE SERVICE Notwithstanding anything herein to the contrary, if, pursuant to an application for qualification is made by the time prescri bed by law or such later date as the Secretary of Treasury may prescribe, the Commissioner of the Intern al Revenue Service or the Commissioner's delegate should determine that the Plan does not initially qualify as a tax-exempt plan under Code §§401 and 501, and such determination is not contested, or if contested, is finally upheld, then if the Plan is a new plan, it shall be void ab initio and all amounts contributed to the Plan, by the Employer, less expenses paid, shall be returned within one (1) year and the Plan shall terminate, and the Trustee (or Insurer) shall be discharged from all further obligations. If the disqualification relates to a Plan amendment, then the Plan shall operate as if it had not been amended. If the Employer's Plan fails to attain or retain qualification, such Plan will no longer participate in thi s volume submitter plan and will be considered an individually designed plan. 9.13 PAYMENT OF BENEFITS Except as otherwise provided in the Plan, benefits under this Plan shall be paid, subject to Sections 6.11 and 6.12, only upon death, Total and Permanent Disability, normal or early retirement, severance of employment, or termination of the Plan. 9.14 ELECTRONIC MEDIA The Administrator may use any electronic medium to give or receive any Plan notice, communicate a ny Plan policy, conduct any written Plan communication, satisfy any Plan filing or other compliance requirement and conduct any other Plan transaction to the extent permissible under applicable law. A Participant or a Participant's Spouse, to the extent authorized by the Administrator, may use any electronic medium to make or provide any Beneficiary designation, election, notice, consent or waiver under the Plan, to the extent permissible under applicable law. Any reference in this Plan to a "form," a "noti ce," an "election," a "consent," a "waiver," a "designation," a "policy" or to any other Plan-related communication includes an electronic version thereof as permitted under applicable law. Notwithstanding the foregoing, any Participant or Beneficiary noti ces and consent that are required pursuant to the Code must satisfy Regulation §1.401(a)-21. 9.15 PLAN CORRECTION The Administrator in conjunction with the Employer may undertake such correction of Plan errors as the Administrator deems necessary, including correction to preserve tax qualification of the Plan under Code §401(a) or to correct a fiduciary breach under state or local law. Without limiting the Administrator's authority under the prior sentence, the Administrator, as it determines to be reasonable and appropriate, may undertake correction of Plan document, operational, demographic and Employer eligibility failures under a me thod described in the Plan or under the IRS Employee Plans Compliance Resolution System ("EPCRS") or any successor program to EPCRS. Furthermore, the Employer may make corrective contributions pursuant to this Section regardless of whether the Plan otherwise permits such contribution source. In addition, the Plan is authorized to recover benefits from Participants or Beneficiaries that have been improperly distributed. 9.16 NONTRUSTEED PLANS If the Plan is funded solely with Contracts, then notwithstanding Sections 9.7 and 9.12, no Contract will be purchased under the Plan unless such Contract or a separate definite written agreement between the Employer and the Insurer provides that no valu e under Contracts providing benefits under the Plan or credits determined by the Insurer (on account of dividends, earni ngs, or other experience rating credits, or surrender or cancellation credits) with respect to such Contracts may be paid or returned to the Employer or diverted to or used for other than the exclusive benefit of the Participants or their Beneficiaries. Ho wever, any contribution made by the Employer because of a mistake of fact must be returned to the Employer within one year of the contribution. If this Plan is funded by individual Contracts that provide a Participant's benefit under the Plan, such individual Contracts shall constitute the Participant's Account balance. If this Plan is funded by group Contracts, under the group annuity or group ins urance Contract, premiums or other consideration received by the Insurer must be allocated to Participants' Ac counts under the Plan. 2021/11/09 City Council Post Agenda Page 73 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 44 ARTICLE X PARTICIPATING EMPLOYERS 10.1 ELECTION TO BECOME A PARTICIPATING EMPLOYER Notwithstanding anything herein to the contrary, with the consent of the Employer and Trustee (or Insurer), any Employer may adopt the Employer's Plan and all of the provisions hereof, and participate herein and be known as a Participating Employer, by a properly executed document evidencing said intent and will of such Participating Employer (a participation agreement). In the event a Participating Employer is not an Affiliated Employer, then the provisions of Article XII shall apply rather than the provision of this Arti cle XI. 10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS (a) Permissible variations of participation agreement. The participation agreement must identify the Participating Employer and the covered Employees and provide for the Participating Employer's signature. In addition, in the participation agreement, the Employer shall specify which elections, if any, the Participating Employer can modify, and any restrictions on the modificati ons. Any such modification shall apply only to the Employees of that Participating Employer. The Participating Employer shall make any such modification by selecting the appropriate option on its participation agreement to the Employer's Adoption Agreement . To the extent that the participation agreement does not permit modification of an election, any attempt by a Participating Employer to modify the election shall have no effect on the Plan and the Participating Employer is bound by the Plan terms as selected by the Employer. If a Participating Employer does not make any permissible participation agreement election modifications, then with regard to any election, the Participating Employer is bound by the Adoption Agreement terms as completed by the "lead Employe r." (b) Holding and investing assets. The Trustee (or Insurer) may, but shall not be required to, commingle, hold and invest as one Trust Fund all contributions made by Participating Employers, as well as all increments thereof. However, the assets of the P lan shall, on an ongoing basis, be available to pay benefits to all Participants and Beneficiaries under the Plan without regard to the Employer or Participating Employer who contributed such assets. (c) Payment of expenses. Unless the Employer otherwise directs, any expenses of the Plan which are to be paid by the Employer or borne by the Trust Fund shall be paid by each Participating Employer in the same proportion that the total amount standing to the credit of all Participants employed by such Employer bears to the total stan ding to the credit of all Participants. 10.3 DESIGNATION OF AGENT Each Participating Employer shall be deemed to be a part of this Plan; provided, however, that with respect to all of its rel ations with the Trustee (or Insurer) and Administrator for purposes of this Plan, each Participating Employer shall be deemed to have designated irrevocably the Employer as its agent. Unless the context of the Plan clearly indicates otherwise, the word "Employer" shall be deemed to include each Participating Employer as related to its adoption of the Plan. 10.4 EMPLOYEE TRANSFERS In the event an Employee is transferred between Participating Employers, accumulated service and eligibility shall b e carried with the Employee involved. No such transfer shall effect a severance of employment hereunder, and the Participating Employer to which the Employee is transferred shall thereupon become obligated hereunder with respect to such Employee in the same manner as was the Participating Employer from whom the Employee was transferred. 10.5 PARTICIPATING EMPLOYER'S CONTRIBUTION AND FORFEITURES Any contribution and/or Forfeiture subject to allocation during each Plan Year shall be determined and allocated separately by each Participating Employer, and shall be allocated only among the Participants eligible to share in the contribution and Forfeitu re allocation of the Employer or Participating Employer making the contribution or by which the forfeiting Participant was employed. On the basis of the information furnished by the Administrator, the Trustee (or Insurer) shall keep separate books and record s concerning the affairs of each Participating Employer hereunder and as to the accounts and credits of the Employees of each Participating Employer. The Trustee (or Insurer) may, but need not, register Contracts so as to evidence that a particular Participating Employer is the interested Employer hereunder, but in the event of an Employee transfer from one Participating Employer to another, the employing Employer shall immediately notify the Trustee (or Insurer) thereof. 10.6 AMENDMENT Any Participating Employer hereby authorizes the Employer to make amendments on its behalf, unless otherwise agreed among all affected parties. If a Participating Employer is not an Affiliated Employer, then amendment of this Plan by the Employer at a ny time when there shall be a Participating Employer shall, unless otherwise agreed to by the affected parties, only be by the written action of each and every Participating Employer and with the consent of the Trustee (or Insurer) where such consent is necessary in accordance w ith the terms of this Plan. 2021/11/09 City Council Post Agenda Page 74 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 45 10.7 DISCONTINUANCE OF PARTICIPATION Any Participating Employer that is an Affiliated Employer shall be permitted to discontinue or revoke its participation in th e Plan at any time. At the time of any such discontinuance or revocation, satisfactory evidence thereof and of any applicable conditions imposed shall be delivered to the Trustee (or Insurer). The Trustee (or Insurer) shall thereafter transfer, deliver and assign Contra cts and other Trust Fund assets allocable to the Participants of such Participating Employer to such new trustee (or insurer) or custodian as sha ll have been designated by such Participating Employer, in the event that it has established a separate qualified retirement plan for its employees. If no successor is designated, the Trustee (or Insurer) shall retain such assets for the Employees of said Participating Employer p ursuant to the provisions of Article VII hereof. In no such event shall any part of the corpus or income of the Trust Fund as it relates to such Participating Employer be used for or diverted to purposes other than for the exclusive benefit of the Employees of such Participating Empl oyer. 10.8 ADMINISTRATOR'S AUTHORITY The Administrator shall have authority to make any and all necessary rules or regulations, binding upon all Participating Emp loyers and all Participants, to effectuate the purpose of this Article. ARTICLE XI MULTIPLE EMPLOYER PROVISIONS 11.1 ELECTION AND OVERRIDING EFFECT If a Participating Employer that is not an Affiliated Employer adopts this Plan, then the provisions of this Art icle XI shall apply to each Participating Employer as of the Effective Date specified in its participation agreement and supersede any contrary prov isions in the basic Plan document or the Adoption Agreement. If this Article XI applies, then the Plan shall be a multiple employer plan as described in Code §413(c). In this case, the Employer and each Participating Employer acknowledge that the Plan is a multiple employer pla n subject to the rules of Code §413(c) and the Regulations thereunder, which are hereb y incorporated by reference, and specific annual reporting requirements. 11.2 DEFINITIONS The following definitions shall apply to this Article XI and shall supersede any conflicting definitions in the Plan: (a) Employee. "Employee" means any common law employee, Leased Employee or other person the Code treats as an employee of a Participating Employer for purposes of the Participating Employer's qualified plan. Either the Adoption Agreement or a participation agreement to the Adoption Agreement may designate any Employee, or class of Employees, as not eligible to participate in the Plan. (b) Lead Employer. "Lead Employer" means the signatory Employer to the Adoption Agreement execution page, and does not include any Affiliated Employer or Participating Employer. The "lead Employer" has the same meaning as the Employer for purposes of making Plan amendments and other purposes regardless of whether the "lead Employer" is also a Participating Employer under this Article XI. 11.3 PARTICIPATING EMPLOYER ELECTIONS The participation agreement must identify the Participating Employer and the covered Employees and provide for the Participat ing Employer's signature. In addition, in the participation agreement, the "lead Employer" shall specify which elections, if any, the Participating Employer can modify, and any restrictions on the modifications. Any such modification shall apply only to the e mployees of that Participating Employer. The Participating Employer shall make any such modification by selecting the appropriate option on its participation agreement to the "lead Employer's" Adoption Agreement. To the extent that the Adoption Agreement does not permi t modification of an election, any attempt by a Participating Employer to modify the election shall have no effect on the Plan and the Participating Employer is bound by the Plan terms as selected by the "lead Employer." If a Participating Employer does not ma ke any permissible participation agreement election modifications, then with regard to any election, the Participating Employer is bound by the Adoption Agreement terms as completed by the "lead Employer." 11.4 TESTING The Administrator shall apply the Code §415 limitation in Section 4.4 for the Plan as a whole. 11.5 COMPENSATION (a) Separate determination. A Participant's Compensation shall be determined separately for each Participating Employer for purposes of allocations under Article IV. (b) Joint status. For all Plan purposes, including but not limited to determining the Code §415 limits in Section 4.4, Compensation includes all Compensation paid by or for any Participating Employer. 2021/11/09 City Council Post Agenda Page 75 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 46 11.6 SERVICE An Employee's service includes all Hours of Service and Years of Service with any and all Participating Employers. An Employee who terminates employment with one Participating Employer and immediately commences employment with another Participating Employer has not separated from service or had a severance from employment. 11.7 COOPERATION AND INDEMNIFICATION (a) Cooperation. Each Participating Employer agrees to timely provide all information the Administrator deems necessary to insure the Plan is operated in accordance with the requirements of the Code and will cooperate fully with the "lead Employer," the Plan, the Plan fiduciaries and other proper representatives in maintaining the qualified status of the Plan. Such cooperation will include payment of such amounts into the Plan, to be allocated to employees of the Participating Employer, which are reasonab ly required to maintain the tax-qualified status of the Plan. (b) Indemnity. Each Participating Employer will indemnify and hold harmless the Administrator, the "lead Employer" and its subsidiaries; officers, directors, shareholders, employees, and agents of the "lead Employer"; the Plan; the Trustees, Partic ipants and Beneficiaries of the Plan, as well as their respective successors and assigns, against any cause of action, loss, liability, damage, cost, or expense of any nature whatsoever (including, but not limited to, attorney's fees and costs, whether or not suit is brought , as well as IRS plan disqualifications, other sanctions or compliance fees and penalties) arising out of or relating to the Participating Employer's noncompliance with any of the Plan's terms or requirements; any intentional or negligent act or omission the Participating Employer commits with regard to the Plan; and any omission or provision of incorrect information with regard to the Plan which causes the Plan to fail to satisfy the requirements of a tax-qualified plan. 11.8 INVOLUNTARY TERMINATION Unless the "lead Employer" provides otherwise in an addendum hereto, the "lead Employer" shall have the power to terminate th e participation of any Participating Employer (hereafter "Terminated Employer") in this Plan. If and when the "lead Employer" wishes to exercise this power, the following shall occur: (a) Notice. The "lead Employer" shall give the "Terminated Employer" a notice of the "lead Employer's" intent to terminate the "Terminated Employer's" status as a Participating Employer of the Plan. The "lead Employer" will provide such notice not less than thirty (30) days prior to the date of termination unless the "lead Employer" determines that the interest of Plan Participant s requires earlier termination. (b) Spin-off. The "lead Employer" shall establish a new defined contribution plan, using the provisions of this Plan with any modifications contained in the "Terminated Employer's" participation agreement, as a guide to establish a new defined contrib ution plan (the "spin-off plan"). The "lead Employer" will direct the Trustee to transfer (in accordance with the rules of Code §414(l) and the provisions of Section 8.3) the Accounts of the Employees of the "Terminated Employer" to the "spin -off plan." The "Terminated Employer" shall be the Employer, Administrator, and sponsor of the "spin-off plan." The Trustee of the "spin-off plan" shall be the person or entity designated by the "Terminated Employer." However, the "lead Employer" shall have the option to designate an appropriate financial institution as Trustee instead if necessary to protect the interest of the Participants. The "lead Employer" shall have the authority to charge the "Terminated Employer" or the Accounts of the Employees of the "Terminated Employer" a reasonable fee to pay the expenses of establishing the "spin-off plan." (c) Alternatives. The "Terminated Employer," in lieu of creation of the "spin-off plan" under (b) above, has the option to elect a transfer alternative in accordance with this Subsection (c). (1) Election. To exercise the option described in this Subsection, the "Terminated Employer" must inform the "lead Employer" of its choice, and must supply any reasonably required documentation as soon as practical. If the "lead Employer" has not received notice of a "Terminated Employer's" exercise of this option within ten (10) days prior to the stated date of termination, the "lead Employer" can choose to disregard the exercise and proceed with the Spin-off. (2) Transfer. If the "Terminated Employer" selects this option, the Administrator shall transfer (in accordance with the rules of Code §414(l) and the provisions of Section 8.3) the Accounts of the Employees of the "Terminated Employer" to a qualified plan the "Terminated Employer" maintains. To exercise this option, the "Terminated Employer" must deliver to the "lead Employer" or Administrator in writing the name and other relevant information of the transferee plan and must provide such assurances that the Administrator shall reasonably require to demonstrate that the transferee plan is a qualified plan. 2021/11/09 City Council Post Agenda Page 76 of 470 Governmental Defined Contribution Volume Submitter Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 47 (d) Participants. The Employees of the "Terminated Employer" shall cease to be eligible to accrue additional benefits under the Plan with respect to Compensation paid by the "Terminated Employer," effective as of the date of termination. To the extent that these Employees have accrued but unpaid contributions as of the date of termination, the "Terminated Employer" shall pay such amounts to the Plan or the "spin-off plan" no later than thirty (30) days after the date of termination, unless the "Terminated Employer" effectively selects the Transfer option under Subsection (c)(2) above. (e) Consent. By its signature on the participation agreement, the "Terminated Employer" specifically consents to the provisions of this Article and agrees to perform its responsibilities with regard to the "spin-off plan," if necessary. 11.9 VOLUNTARY TERMINATION A Participating Employer (hereafter "withdrawing employer") may voluntarily withdraw from participation in this Plan at any time. If and when a "withdrawing employer" wishes to withdraw, the following shall occur: (a) Notice. The "withdrawing employer" shall inform the "lead Employer" and the Administrator of its intent ion to withdraw from the Plan. The "withdrawing employer" must give the notice not less than thirty (30) days prior to the effective date of its withdrawal. (b) Procedure. The "withdrawing employer" and the "lead Employer" shall agree upon procedures for the orderly withdrawal of the "withdrawing employer" from the plan. Such procedures may include any of the optional spin -off or transfer options described in Section 11.8. (c) Costs. The "withdrawing employer" shall bear all reasonable costs associated with withdrawal and transfer under this Section. (d) Participants. The Employees of the "withdrawing employer" shall cease to be eligible to accrue additional benefits under the Plan as to Compensation paid by the "withdrawing employer," effective as of the effective date of withdrawal. To the extent that such Employees have accrued but unpaid contributions as of the effective date of withdrawal, the "withdrawing employer" shall contribute such amounts to the Plan or the "spin-off plan" promptly after the effective date of withdrawal, unless the accounts are transferred to a qualified plan the "withdrawing employer" maintains. 2021/11/09 City Council Post Agenda Page 77 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 1 ADOPTION AGREEMENT FOR NATIONWIDE FINANCIAL SERVICES, INC. GOVERNMENTAL VOLUME SUBMITTER MONEY PURCHASE PLAN CAUTION: Failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. EMPLOYER INFORMATION (An amendment to the Adoption Agreement is not needed solely to reflect a change in this Employer Information Section.) 1. EMPLOYER'S NAME, ADDRESS, TELEPHONE NUMBER, TIN AND FISCAL YEAR Name: City of Chula Vista Address: 276 4th Avenue Street Chula Vista California 91910 City State Zip Telephone: 619-691-5050, ext. 4040 Taxpayer Identification Number (TIN): 95-6000690 Employer's Fiscal Year ends: June 30 2. TYPE OF GOVERNMENTAL ENTITY. This Plan may only be adopted a state or local governmental entity, or agency thereof, including an Indian tribal government and may not be adopted by any other entity, including a federal government and any agency or instrumentality thereof. a. [ ] State government or state agency b. [ ] County or county agency c. [X] Municipality or municipal agency d. [ ] Indian tribal government (see Note below) e. [ ] Other: NOTE: An Indian tribal government may only adopt this Plan if such entity is defined under Code §7701(a)(40), is a subdivisi on of an Indian tribal government as determined in accordance with Code §7871(d), or is an agency or instrumentality of either, and all of the Participants under this Plan employed by such entity substantially perform services as an Employee in essential governmental functions and not in the performance of commercial activities (whether or not an essential government function). 3. PARTICIPATING EMPLOYERS (Plan Section 1.38). Will any other Employers adopt this Plan as Participating Employers? a. [X] No b. [ ] Yes PLAN INFORMATION (An amendment to the Adoption Agreement is not needed solely to reflect a change in the information in Questions 9. through 1 0.) 4. PLAN NAME: City of Chula Vista Money Purchase Retirement Plan 5. PLAN STATUS a. [ ] New Plan b. [X] Amendment and restatement of existing Plan PPA RESTATEMENT (leave blank if not applicable) 1. [ ] This is an amendment and restatement to bring a plan into compliance with the Pension Protection Act of 2006 ("PPA") and other legislative and regulatory changes (i.e., the 6-year pre-approved plan restatement). 6. EFFECTIVE DATE (Plan Section 1.16) (complete a. if new plan; complete a. AND b. if an amendment and restatement) Initial Effective Date of Plan a. January 1, 2002 (enter month day, year) (hereinafter called the "Effective Date" unless 6.b. is entered below) Restatement Effective Date. If this is an amendment and restatement, the effective date of the restatement (hereinafter called the "Effective Date") is: b. November 19, 2021 (enter month day, year; may enter a restatement date that is the first day of the current Plan Year. Plan contains appropriate retroactive effective dates with respect to provisions for appropriate laws.) 2021/11/09 City Council Post Agenda Page 78 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 2 7. PLAN YEAR (Plan Section 1.42) means, except as otherwise provided in d. below: a. [X] the calendar year b. [ ] the twelve-month period ending on (e.g., June 30th) SHORT PLAN YEAR (Plan Section 1.46). This is a Short Plan Year (if the effective date of participation is based on a Plan Year, then coordinate with Question 14): c. [X] N/A d. [ ] beginning on (enter month day, year; e.g., July 1, 2013) and ending on (enter month day, year). 8. VALUATION DATE (Plan Section 1.52) means: a. [X] every day that the Trustee (or Insurer), any transfer agent appointed by the Trustee (or Insurer) or the Employer, and any stock exchange used by such agent are open for business (daily valuation) b. [ ] the last day of each Plan Year c. [ ] the last day of each Plan Year quarter d. [ ] other (specify day or days): (must be at least once each Plan Year) NOTE: The Plan always permits interim valuations. 9. TRUSTEE(S) OR INSURER(S) (Plan Sections 1.25 and 1.50): a. [ ] Insurer. This Plan is funded exclusively with Contracts and the name of the Insurer(s) is: (1) (2) (if more than 2, add names to signature page). b. [X] Individual Trustee(s). Individual Trustee(s) who serve as Trustee(s) over assets not subject to control by a corporate Trustee. (add additional Trustees as necessary) Name(s) Title(s) Sarah Schoen Director of Finance Address and telephone number 1. [X] Use Employer address and telephone number 2. [ ] Use address and telephone number below: Address: Street City State Zip Telephone: c. [ ] Corporate Trustee(s) (add additional Trustees as necessary) Name: Address: Street City State Zip Telephone: Directed/Discretionary Trustee. Unless otherwise specified below, if there is a corporate Trustee, it will serve as a Directed (nondiscretionary) Trustee (Plan Section 1.21) and if there is an individual Trustee, he or she will serve as a Discretionary Trustee (Plan Section 1.22) over all Plan assets (select all that apply; leave blank if defaults apply) d. [ ] Directed Trustee exceptions (leave blank if no exceptions): Directed Trustee over specified Plan assets (select all that apply; leave blank if none apply) 1. [ ] The corporate Trustee will serve as Directed Trustee over the following assets: 2021/11/09 City Council Post Agenda Page 79 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 3 2. [ ] The individual Trustee(s) will serve as Directed Trustee over the following assets: Individual Trustee will serve as Directed Trustee (may not be selected with d.1. or d.2.) 3. [ ] over all Plan assets e. [ ] Discretionary Trustee exceptions (leave blank if no exceptions): Discretionary Trustee over specified Plan assets (select all that apply; leave blank if none apply) 1. [ ] The individual Trustee(s) will serve as Discretionary Trustee over the following assets: 2. [ ] The corporate Trustee will serve as Discretionary Trustee over the following assets: Corporate Trustee will serve as Discretionary Trustee (may not be selected with e.1. or e.2.) 3. [ ] over all Plan assets Separate trust. Will a separate trust agreement that is approved by the IRS for use with this Plan be used? f. [X] No g. [ ] Yes NOTE: If Yes is selected, an executed copy of the trust agreement between the Trustee and the Employer must be attached to this Plan. The Plan and trust agreement will be read and construed together. The responsibilities, rights and powers of the Trustee will be those specified in the trust agreement. 10. ADMINISTRATOR'S NAME, ADDRESS AND TELEPHONE NUMBER (If none is named, the Employer will be the Administrator (Plan Section 1.2).) a. [X] Employer (use Employer address and telephone number) b. [ ] Other: Name: Address: Street City State Zip Telephone: 11. CONTRIBUTION TYPES The selections made below must correspond with the selections made under the Contributions and Allocations Section of this Adoption Agreement. FROZEN PLAN OR CONTRIBUTIONS HAVE BEEN SUSPENDED (Plan Section 4.1(c)) (optional) a. [ ] This is a frozen Plan (i.e., all contributions cease) (if this is a temporary suspension, select a.2): 1. [ ] All contributions ceased as of, or prior to, the effective date of this amendment and restatement and the prior Plan provisions are not reflected in this Adoption Agreement (may enter effective date at 3. below and/or select contributions at b. - f. (optional), skip questions 12-18 and 22-29) 2. [ ] All contributions ceased or were suspended and the prior Plan provisions are reflected in this Adoption Agreement (must enter effective date at 3. below and select contributions at b. - f.) Effective date 3. [ ] as of (effective date is optional unless a.2. has been selected above or this is the amendment or restatement to freeze the Plan). CONTRIBUTIONS The Plan permits the following contributions (select one or more): b. [X] Employer contributions other than matching (Questions 24-25) 1. [ ] This Plan qualifies as a Social Security Replacement Plan (Question 24.c. must be selected) c. [ ] Employer matching contributions (Questions 26-28) d. [ ] Mandatory Employee contributions (Question 31) e. [ ] After-tax voluntary Employee contributions (Question 32) f. [X] Rollover contributions (Question 39) ELIGIBILITY REQUIREMENTS 12. ELIGIBLE EMPLOYEES (Plan Section 1.17) means all Employees (including Leased Employees) EXCEPT those Employees who are excluded below or elsewhere in the Plan: a. [ ] No excluded Employees. There are no additional excluded Employees under the Plan (skip to Question 13). b. [X] Exclusions. The following Employees are not Eligible Employees for Plan purposes (select one or more): 1. [ ] Union Employees (as defined in Plan Section 1.17) 2. [ ] Nonresident aliens (as defined in Plan Section 1.17) 3. [ ] Leased Employees (Plan Section 1.28) 2021/11/09 City Council Post Agenda Page 80 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 4 4. [ ] Part-time/temporary/seasonal Employees. A part-time, temporary or seasonal Employee is an Employee whose regularly scheduled service is less than Hours of Service in the relevant eligibility computation period (as defined in Plan Section 1.54). However, if any such excluded Employee actually completes a Year of Service, then such Employee will no longer be part of this excluded class. 5. [X] Other: All Employees except incumbents in the positions of City Manager and City Clerk (must be definitely determinable under Regulations §1.401-1(b). Exclusions may be employment title specific but may not be by individual name nor result in only a finite group of individuals (e.g., excluding anyone hired after 12/31/12.) 13. CONDITIONS OF ELIGIBILITY (Plan Section 3.1) a. [X] No age or service required. No age or service required for all Contribution Types (skip to Question 14). b. [ ] Eligibility. An Eligible Employee will be eligible to participate in the Plan upon satisfaction of the following (complete c. and d., select e. and f. if applicable): Eligibility Requirements c. [ ] Age Requirement 1. [ ] No age requirement 2. [ ] Age 20 1/2 3. [ ] Age 21 4. [ ] Age (may not exceed 26) d. [ ] Service Requirement 1. [ ] No service requirement 2. [ ] (not to exceed 60) months of service (elapsed time) 3. [ ] 1 Year of Service 4. [ ] (not to exceed 5) Years of Service 5. [ ] consecutive month period from the Eligible Employee's employment commencement date and during which at least Hours of Service are completed. 6. [ ] consecutive months of employment from the Eligible Employee's employment commencement date. 7. [ ] Other: (e.g., date on which 1,000 Hours of Service is completed within the computation period) (must satisfy the Notes below) NOTE: If c.4. or d.7. is selected, the condition must be an age or service requirement that is definitely determinable and may not exceed age 26 and may not exceed 5 Years of Service. NOTE: Year of Service means Period of Service if elapsed time method is chosen. Waiver of conditions. The service and/or age requirements specified above will be waived in accordance with the following (leave blank if there are no waivers of conditions): e. [ ] If employed on the following requirements, and the entry date requirement, will be waived. The waiver applies to any Eligible Employee unless 3. selected below. Such Employees will enter the Plan as of such date (select 1. and/or 2. AND 3. if applicable): 1. [ ] service requirement (may let part-time Eligible Employees into the Plan) 2. [ ] age requirement 3. [ ] waiver is for: Amendment or restatement to change eligibility requirements f. [ ] This amendment or restatement (or a prior amendment and restatement) modified the eligibility requirements and the prior eligibility conditions continue to apply to the Eligible Employees specified below. If this option is NOT selected, then all Eligible Employees must satisfy the eligibility conditions set forth above. 1. [ ] The eligibility conditions above only apply to Eligible Employees who were not Participants as of the effective date of the modification. 2. [ ] The eligibility conditions above only apply to individuals who were hired on or after the effective date of the modification. 14. EFFECTIVE DATE OF PARTICIPATION (ENTRY DATE) (Plan Section 3.2) An Eligible Employee who has satisfied the eligibility requirements will become a Participant in the Plan as of the: a. [X] date such requirements are met b. [ ] first day of the month coinciding with or next following the date on which such requirements are met c. [ ] first day of the Plan Year quarter coinciding with or next following the date on which such requirements are met d. [ ] earlier of the first day of the Plan Year or the first day of the seventh month of the Plan Year coinciding with or next following the date on which such requirements are met e. [ ] first day of the Plan Year coinciding with or next following the date on which such requirements are met (Eligibility must be six months of service (or 1 1/2 Years (or Periods) of Service if 100% immediate vesti ng is selected) or less and age must be 20 1/2 or less.) f. [ ] first day of the Plan Year in which such requirements are met 2021/11/09 City Council Post Agenda Page 81 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 5 g. [ ] first day of the Plan Year in which such requirements are met, if such requirements are met in the first 6 months of th e Plan Year, or as of the first day of the next succeeding Plan Year if such requirements are met in the last 6 months of the Plan Year. h. [ ] other: (must be definitely determinable) SERVICE 15. RECOGNITION OF SERVICE WITH OTHER EMPLOYERS (Plan Sections 1.39 and 1.54) a. [X] No service with other employers is recognized except as otherwise required by law (e.g., the Plan already provides for the recognition of service with Employers who have adopted this Plan as well as service with Affiliated Employers and predecessor Employers who maintained this Plan; skip to Question 16). b. [ ] Prior service with the designated employers is recognized as follows (answer c. and select one or more of c.1. - 3.; select d. - f. as applicable) (if more than 3 employers, attach an addendum to the Adoption Agreement or complete option h. under Section B of Appendix A): Contribution Other Employer Eligibility Vesting Allocation c. [ ] Employer name: 1. [ ] 2. [ ] 3. [ ] d. [ ] Employer name: 1. [ ] 2. [ ] 3. [ ] e. [ ] Employer name: 1. [ ] 2. [ ] 3. [ ] Limitations f. [ ] The following provisions or limitations apply with respect to the 1. [ ] 2. [ ] 3. [ ] recognition of prior service: (e.g., credit service with X only on/following 1/1/13) NOTE: If the other Employer(s) maintained this qualified Plan, then Years (and /or Periods) of Service with such Employer(s) must be recognized pursuant to Plan Sections 1.39 and 1.54 regardless of any selections above. 16. SERVICE CREDITING METHOD (Plan Sections 1.39 and 1.54) NOTE: If no selections are made in this Section, then the provisions set forth in the definition of Year of Service in Plan Section 1.54 will apply, including the following defaults: 1. A Year of Service means completion of at least 1,000 Hours of Service during the applicable computation period. 2. Hours of Service (Plan Section 1.24) will be based on actual Hours of Service. 3. For eligibility purposes, the computation period will be as defined in Plan Section 1.54 (i.e., shift to the Plan Year if the eligibility condition is one (1) Year of Service or less). 4. For vesting and allocation purposes, the computation period will be the Plan Year. a. [ ] Elapsed time method. (Period of Service applies instead of Year of Service) Instead of Hours of Service, elapsed time will be used for: 1. [ ] all purposes (skip to Question 17) 2. [ ] the following purposes (select one or more): a. [ ] eligibility to participate b. [ ] vesting c. [ ] sharing in allocations or contributions b. [X] Alternative definitions for the Hours of Service method. Instead of the defaults, the following alternatives will apply for the Hours of Service method (select one or more): 1. [ ] Eligibility computation period. Instead of shifting to the Plan Year, the eligibility computation period after the initial eligibility computation period will be based on each anniversary of the date the Employee first completes an Hour of Service 2. [ ] Vesting computation period. Instead of the Plan Year, the vesting computation period will be the date an Employee first performs an Hour of Service and each anniversary thereof. 3. [X] Equivalency method. Instead of using actual Hours of Service, an equivalency method will be used to determine Hours of Service for: a. [X] all purposes b. [ ] the following purposes (select one or more): 1. [ ] eligibility to participate 2. [ ] vesting 3. [ ] sharing in allocations or contributions 2021/11/09 City Council Post Agenda Page 82 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 6 Such method will apply to: c. [ ] all Employees d. [X] Employees for whom records of actual Hours of Service are not maintained or available (e.g., salaried Employees) e. [ ] other: (e.g., per-diem Employees only) Hours of Service will be determined on the basis of: f. [ ] days worked (10 hours per day) g. [ ] weeks worked (45 hours per week) h. [ ] semi-monthly payroll periods worked (95 hours per semi-monthly pay period) i. [X] months worked (190 hours per month) j. [ ] bi-weekly payroll periods worked (90 hours per bi-weekly pay period) k. [ ] other: (e.g., option f. is used for per-diem Employees and option g. is used for on-call Employees). 4. [ ] Number of Hours of Service required. Instead of 1,000 Hours of Service, Year of Service means the applicable computation period during which an Employee has completed at least (not to exceed 1,000) Hours of Service for: a. [ ] all purposes b. [ ] the following purposes (select one or more): 1. [ ] eligibility to participate 2. [ ] vesting 3. [ ] sharing in allocations or contributions VESTING 17. VESTING OF PARTICIPANT'S INTEREST – EMPLOYER CONTRIBUTIONS (Plan Section 6.4(b)) a. [ ] N/A (no Employer contributions; skip to Question 19) b. [X] The vesting provisions selected below apply. Section B of Appendix A can be used to specify any exceptions to the provisions below. NOTE: The Plan provides that contributions for converted sick leave and/or vacation leave are fully Vested. Vesting for Employer contributions other than matching contributions c. [ ] N/A (no Employer contributions (other than matching contributions); skip to f.) d. [X] 100% vesting. Participants are 100% Vested in Employer contributions (other than matching contributions) upon entering Plan. e. [ ] The following vesting schedule, based on a Participant's Years of Service (or Periods of Service if the elapsed time method is selected), applies to Employer contributions (other than matching contributions): 1. [ ] 6 Year Graded: 0-1 year-0%; 2 years-20%; 3 years-40%; 4 years-60%; 5 years-80%; 6 years-100% 2. [ ] 4 Year Graded: 1 year-25%; 2 years-50%; 3 years-75%; 4 years-100% 3. [ ] 5 Year Graded: 1 year-20%; 2 years-40%; 3 years-60%; 4 years-80%; 5 years-100% 4. [ ] Cliff: 100% vesting after (not to exceed 15) years 5. [ ] Other graded vesting schedule (must provide for full vesting no later than 15 years of service; add additional lines as necessary) Years (or Periods) of Service Percentage % % % % % % Vesting for Employer matching contributions f. [X] N/A (no Employer matching contributions) g. [ ] The schedule above will also apply to Employer matching contributions. h. [ ] 100% vesting. Participants are 100% Vested in Employer matching contributions upon entering Plan. i. [ ] The following vesting schedule, based on a Participant's Years of Service (or Periods of Service if the elapsed time method is selected), applies to Employer matching contributions: 1. [ ] 6 Year Graded: 0-1 year-0%; 2 years-20%; 3 years-40%; 4 years-60%; 5 years-80%; 6 years-100% 2. [ ] 4 Year Graded: 1 year-25%; 2 years-50%; 3 years-75%; 4 years-100% 3. [ ] 5 Year Graded: 1 year-20%; 2 years-40%; 3 years-60%; 4 years-80%; 5 years-100% 4. [ ] Cliff: 100% vesting after (not to exceed 15) years 5. [ ] Other graded vesting schedule (must provide for full vesting no later than 15 years of service; add additional lines as necessary) 2021/11/09 City Council Post Agenda Page 83 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 7 Years (or Periods) of Service Percentage % % % % % % 18. VESTING OPTIONS Excluded vesting service. The following Years of Service will be disregarded for vesting purposes (select all that apply; leave blank if none apply): a. [ ] Service prior to the initial Effective Date of the Plan or a predecessor plan (as defined in Regulations §1.411(a)-5(b)(3)) b. [ ] Service prior to the computation period in which an Employee has attained age . c. [ ] Service during a period for which an Employee did not make mandatory Employee contributions. Vesting for death, Total And Permanent Disability and Early Retirement Date. Regardless of the vesting schedule, a Participant will become fully Vested upon (select all that apply; leave blank if none apply): d. [ ] Death e. [ ] Total and Permanent Disability f. [ ] Early Retirement Date RETIREMENT AGES 19. NORMAL RETIREMENT AGE ("NRA") (Plan Section 1.32) means: a. [X] Specific age. The date a Participant attains age 65 (may not exceed 65) b. [ ] Age/participation. The later of the date a Participant attains age (may not exceed 65) or the (may not exceed 10th) anniversary of the first day of the Plan Year in which participation in the Plan commenced NOTE: Effective for Plan Years beginning on or after the later of (1) January 1, 2015, o r (2) the close of the first regular legislative session of the legislative body with the authority to amend the plan that begins on or after the date that is three months after the final regulations are published in the Federal Register, Normal Retirement Age of less than age 62 must meet Regulation §1.401(a)-1(b)(2). Qualified police or firefighters. Normal Retirement Age for qualified public safety employees (as defined in Code §72(t)(1)) (leave blank if not applicable) c. [ ] Age (may not be less than 50) 20. NORMAL RETIREMENT DATE (Plan Section 1.33) means, with respect to any Participant, the: a. [X] date on which the Participant attains "NRA" b. [ ] first day of the month coinciding with or next following the Participant's "NRA" c. [ ] first day of the month nearest the Participant's "NRA" d. [ ] Anniversary Date coinciding with or next following the Participant's "NRA" e. [ ] Anniversary Date nearest the Participant's "NRA" f. [ ] Other: (e.g., first day of the month following the Participant's "NRA"). 21. EARLY RETIREMENT DATE (Plan Section 1.15) a. [X] N/A (no early retirement provision provided) b. [ ] Early Retirement Date means the: 1. [ ] date on which a Participant satisfies the early retirement requirements 2. [ ] first day of the month coinciding with or next following the date on which a Participant satisfies the early retirement requirements 3. [ ] Anniversary Date coinciding with or next following the date on which a Participant satisfies the early retirement requirements Early retirement requirements 4. [ ] Participant attains age AND, completes.... (leave blank if not applicable) a. [ ] at least Years (or Periods) of Service for vesting purposes b. [ ] at least Years (or Periods) of Service for eligibility purposes c. [ ] Early Retirement Date means: (must be definitely determinable) 2021/11/09 City Council Post Agenda Page 84 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 8 COMPENSATION 22. COMPENSATION with respect to any Participant is defined as follows (Plan Sections 1.10 an d 1.23). Base definition a. [X] Wages, tips and other compensation on Form W-2 b. [ ] Code §3401(a) wages (wages for withholding purposes) c. [ ] 415 safe harbor compensation NOTE: Plan Section 1.23(c) provides that the base definition of Compensation includes deferrals that are not included in income due to Code §§401(k), 125, 132(f)(4), 403(b), 402(h)(1)(B)(SEP), 414(h)(2), & 457 (b). Determination period. Compensation will be based on the following "determination period" (this will also be the Limitation Year unless otherwise elected at option f. under Section B of Appendix A): d. [X] the Plan Year e. [ ] the Fiscal Year coinciding with or ending within the Plan Year f. [ ] the calendar year coinciding with or ending within the Plan Year Adjustments to Compensation (for Plan Section 1.10). Compensation will be adjusted by: g. [ ] No adjustments (skip to i. below) h. [X] Adjustments. Compensation will be adjusted by (select all that apply): 1. [ ] excluding salary reductions (401(k), 125, 132(f)(4), 403(b), SEP, 414(h)(2) pickup, & 457 (b)) 2. [ ] excluding reimbursements or other expense allowances, fringe benefits (cash or non-cash), moving expenses, deferred compensation (other than deferrals specified in 1. above) and welfare benefits. 3. [X] excluding Compensation paid during the "determination period" while not a Participant in the Plan. 4. [ ] excluding Military Differential Pay 5. [ ] excluding overtime 6. [ ] excluding bonuses 7. [ ] other: (e.g., describe Compensation from the elections available above or a combination thereof as to a Participant group (e.g., no exclusions as to Division A Employees and exclude bonuses as to Division B Employees); and/or describe another exclusion (e.g., exclude shift differential pay)). Military Differential Pay Special Effective Date (leave blank if not applicable) i. [ ] If this is a PPA restatement and the provisions above regarding Military Differential Pay (included unless h.4. is selected) have a later effective date than Plan Years beginning after December 31, 2008, then enter the date such provisions were first effective: (may not be earlier than January 1, 2009; for Plan Years beginning prior to January 1, 2009, Military Differential Pay is treated in accordance with the post -severance Compensation provisions in the following Question). 23. POST-SEVERANCE COMPENSATION (415 REGULATIONS) The following optional provision of the 415 Regulations will apply to Limitation Years beginning on or after July 1, 2007 unl ess otherwise elected below: 415 Compensation (post-severance compensation adjustments) (select all that apply at a.; leave blank if none apply) NOTE: Unless otherwise elected under a. below, the following defaults apply: 415 Compensation will include (to the extent provided in Plan Section 1.23), post-severance regular pay, leave cash-outs and payments from nonqualified unfunded deferred compensation plans. a. [ ] The defaults listed above apply except for the following (select one or more): 1. [ ] Leave cash-outs will be excluded 2. [ ] Nonqualified unfunded deferred compensation will be excluded 3. [ ] Military Differential Pay will be included (Plan automatically includes for Limitation Years beginning after December 31, 2008) 4. [ ] Disability continuation payments will be included Plan Compensation (post-severance compensation adjustments) b. [X] Defaults apply. Compensation will include (to the extent provided in Plan Section 1.10 and to the extent such amounts would be included in Compensation if paid prior to severance of employment) post-severance regular pay, leave cash-outs, and payments from nonqualified unfunded deferred compensation plans. c. [ ] Exclude all post-severance compensation. Exclude all post-severance compensation for allocation purposes. d. [ ] Post-severance adjustments. The defaults listed at b. apply except for the following (select one or more): 1. [ ] Exclude all post-severance compensation 2. [ ] Regular pay will be excluded 3. [ ] Leave cash-outs will be excluded 4. [ ] Nonqualified unfunded deferred compensation will be excluded 5. [ ] Military Differential Pay will be included 6. [ ] Disability continuation payments will be included 2021/11/09 City Council Post Agenda Page 85 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 9 NOTE: The above treatment of Military Differential Pay only applies to Plan Years beginning prior to January 1, 2009. For Plan Years beginning after such date, Military Differential Pay is not considered post-severance compensation and the provisions of Question 22 apply. Post-severance compensation special effective date (leave blank if not applicable) e. [ ] If this is a PPA restatement and the post-severance compensation adjustments above for 415 Compensation or Plan Compensation applied other than the first day of the Plan Year beginning on or after July 1, 2007, then enter the date such provisions were first effective: CONTRIBUTIONS AND ALLOCATIONS 24. EMPLOYER CONTRIBUTIONS (OTHER THAN MATCHING CONTRIBUTIONS) (Plan Section 4.1(a)(2)) (skip to Question 26 if Employer contributions are NOT selected at Question 11.b.) CONTRIBUTION FORMULA (select one or more of the following contribution formulas:) a. [X] Fixed contribution equal to (only select one): 1. [ ] % of each Participant's Compensation for each: a. [ ] Plan Year b. [ ] calendar quarter c. [ ] month d. [ ] pay period e. [ ] week 2. [ ] $ per Participant. 3. [ ] $ per Hour of Service worked while an Eligible Employee a. [ ] up to hours (leave blank if no limit) 4. [X] other: An annual contribution of $35,000 for the incumbent in the position of City Manager; and an annual contribution equal 5% of base salary for the incumbent in the position of City Clerk. The aforementioned contributions shall be made on a pay period basis and shall be prorated for the remainder of the current plan year (the formula described must satisfy the definitely determinable requirement under Regulations §1.401-1(b)). b. [ ] Sick leave/vacation leave conversion. The Employer will contribute an amount equal to an Employee's current hourly rate of pay multiplied by the Participant's number of unused accumulated sick leave and/or vacation days (as selected below). Only unpaid sick and vacation leave for which the Employee has no right to receive in cash may be included. In no event will the Employer's contribution for the Plan Year exceed the maximum contribution permitted under Code §415(c). The following may be converted under the Plan: (select one or both): 1. [ ] Sick leave 2. [ ] Vacation leave Eligible Employees. Only the following Participants shall receive the Employer contribution for sick leave and/or vacation leave (select 3. and/or 4; leave blank if no limitations provided, however, that this Plan may not be used to only provide benefits for terminated Employees) 3. [ ] Former Employees. All Employees terminating service with the Employer during the Plan Year and who have satisfied the eligibility requirements based on the terms of the Employer's accumulated benefits plans checked below (select all that apply; leave blank if no exclusions): a. [ ] The Former Employee must be at least age (e.g., 55) b. [ ] The value of the sick and/or vacation leave must be at least $ (e.g., $2,000) c. [ ] A contribution will only be made if the total hours is over (e.g., 10) hours d. [ ] A contribution will not be made for hours in excess of (e.g., 40) hours 4. [ ] Active Employees. Active Employees who have not terminated service during the Plan Year and who meet the following requirements (select all that apply; leave blank if no exclusions): a. [ ] The Employee must be at least age (e.g., 55) b. [ ] The value of the sick and/or vacation leave must be at least $ (e.g., $2,000) c. [ ] A contribution will only be made if the total hours is over (e.g., 10) hours d. [ ] A contribution will not be made for hours in excess of (e.g., 40) hours c. [ ] Social Security Replacement Plan. An amount equal to 7.5% of the Participant's Compensation for the entire Plan Year, reduced by Employee and Employer contributions to this Plan actually contributed to the Participant's Account during such Plan Year. (may only be selected if Question 11.b.1. has also been selected) Include only part-time, seasonal and temporary Employees (leave blank if not applicable) 1. [ ] Regardless of any other provision in this to the contrary, the contribution above will only be made for part - time, seasonal, or temporary Employees who are not otherwise covered by another qualifying public retirement system as defined for purposes of Regulation §31.3121(b)(7)-2. 2021/11/09 City Council Post Agenda Page 86 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 10 25. ALLOCATION CONDITIONS (Plan Section 4.3). If 24.a. is selected above, indicate requirements to share in allocations of Employer contributions (select a. OR b. and all that apply at c. - e.) a. [X] No conditions. All Participants share in the allocations regardless of service co mpleted during the Plan Year or employment status on the last day of the Plan Year (skip to Question 26). b. [ ] Allocation conditions apply (select one of 1. - 5. AND one of 6. - 9. below) Conditions for Participants NOT employed on the last day of the Plan Year 1. [ ] A Participant must complete at least (not to exceed 1,000) Hours of Service (or (not to exceed 12) months of service if the elapsed time method is selected). 2. [ ] A Participant must complete a Year of Service (or Period of Service if the elapsed time method is selected). 3. [ ] Participants will NOT share in the allocations, regardless of service. 4. [ ] Participants will share in the allocations, regardless of service. 5. [ ] Other: (must be definitely determinable, not subject to Employer discretion and may not require more than one Year of Service (or Period of Service if the elapsed time method is selected)). Conditions for Participants employed on the last day of the Plan Year 6. [ ] No service requirement. 7. [ ] A Participant must complete a Year of Service (or Period of Service if the elapsed time method is selected). 8. [ ] A Participant must complete at least (not to exceed 1,000) Hours of Service during the Plan Year. 9. [ ] Other: (must be definitely determinable, not subject to Employer discretion and may not require more than one Year of Service (or Period of Service if the elapsed time method is selected)). Waiver of conditions for Participants NOT employed on the last day of the Plan Year. If b.1., 2., 3., or 5. is selected, Participants who are not employed on the last day of the Plan Year in which one o f the following events occur will be eligible to share in the allocations regardless of the above conditions (select all that apply; leave blank if none apply): c. [ ] Death d. [ ] Total and Permanent Disability e. [ ] Termination of employment on or after Normal Retirement Age 1. [ ] or Early Retirement Date 26. EMPLOYER MATCHING CONTRIBUTIONS (Plan Section 4.1(a)(3)). (skip to Question 29 if matching contributions are NOT selected at Question 11.c.) The Employer will make the following matching contributions: A. Elective deferrals taken into account. For purposes of applying the matching contribution provisions below, elective deferrals include elective deferral (pre-tax and Roth) contributions to the following Employer plan(s) (insert name of Plan(s) to which the elective deferral contributions being matched will be made): a. [ ] 457 plan(s). Enter Plan name: b. [ ] 403(b) plan(s). Enter Plan name: NOTE: If selected at Question 32, after-tax voluntary Employee contributions are also considered elective deferrals for purposes of matching contributions. B. Matching Formula. (select one) c. [ ] Fixed - uniform rate/amount. The Employer will make matching contributions equal to % (e.g., 50) of the Participant's elective deferrals 1. [ ] that do not exceed % of a Participant's Compensation (leave blank if no limit) d. [ ] Fixed - tiered. The Employer will make matching contributions equal to a uniform percentage of each tier of each Participant's elective deferrals, determined as follows: NOTE: Fill in only percentages or dollar amounts, but not both. If percentages are used, each tier represents the amount of the Participant's applicable contributions that equals the specified percentage of the Participant's Compensation (add additional tiers if necessary): Tiers of Contributions Matching Percentage (indicate $ or %) First % Next % Next % Next % 2021/11/09 City Council Post Agenda Page 87 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 11 e. [ ] Fixed - Years of Service. The Employer will make matching contributions equal to a uniform percentage of each Participant's elective deferrals based on the Participant's Years of Service (or Periods of Service if the elapsed time method is selected), determined as follows (add additional tiers if necessary): Years (or Periods) of Service Matching Percentage % % % For purposes of the above matching contribution formula, a Year (or Period) of Service means a Year (or Period) of Service for: 1. [ ] vesting purposes 2. [ ] eligibility purposes f. [ ] Other: (the formula described must satisfy the definitely determinable requirement under Regulations §1.401-1(b)) 27. MATCHING CONTRIBUTION PROVISIONS A. Maximum matching contribution. The total matching contribution made on behalf of any Participant for any Plan Year will not exceed: a. [ ] N/A (no Plan specific limit on the amount of matching contribution) b. [ ] $ . c. [ ] % of Compensation. B. Period of determination. The matching contribution formula will be applied on the following basis (and elective deferrals and any Compensation or dollar limitation used in determining the matching contribution will be based on the applicable period): d. [ ] the Plan Year e. [ ] each payroll period f. [ ] each month g. [ ] each Plan Year quarter h. [ ] each payroll unit (e.g., hour) 28. ALLOCATION CONDITIONS FOR MATCHING CONTRIBUTIONS (Plan Section 4.3). Select a. OR b. and all that apply of c. - h. a. [ ] No conditions. All Participants share in the allocations regardless of service completed during the Plan Year or employment status on the last day of the Plan Year (skip to Question 29). b. [ ] Allocation conditions apply (select one of 1. -5. AND one of 6. - 9. below) Conditions for Participants NOT employed on the last day of the Plan Year. 1. [ ] A Participant must complete at least (not to exceed 1,000) Hours of Service (or (not to exceed 12) months of service if the elapsed time method is selected). 2. [ ] A Participant must complete a Year of Service (or Period of Service if the elapsed time method is selected). 3. [ ] Participants will NOT share in the allocations, regardless of service. 4. [ ] Participants will share in the allocations, regardless of service. 5. [ ] Other: (must be definitely determinable, not subject to Employer discretion and may not require more than one Year of Service (or Period of Service if the elapsed time method is selected)). Conditions for Participants employed on the last day of the Plan Year 6. [ ] No service requirement. 7. [ ] A Participant must complete a Year of Service (or Period of Service if the elapsed time method is selected). 8. [ ] A Participant must complete at least (not to exceed 1,000) Hours of Service during the Plan Year. 9. [ ] Other: (must be definitely determinable, not subject to Employer discretion and may not require more than one Year of Service (or Period of Service if the elapsed time method is selected)). Waiver of conditions for Participants NOT employed on the last day of the Plan Year. If b.1., 2., 3., or 5. is selected, Participants who are not employed on the last day of the Plan Year in which one of the following events occur will be eligible to share in the allocations regardless of the above conditions (select all that apply; leave blank if none apply): c. [ ] Death d. [ ] Total and Permanent Disability e. [ ] Termination of employment on or after Normal Retirement Age 1. [ ] or Early Retirement Date 2021/11/09 City Council Post Agenda Page 88 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 12 Conditions based on period other than Plan Year. The allocation conditions above will be applied based on the Plan Year unless otherwise selected below. If selected, the above provisions will be applied by substituting the term Plan Year with the specified period (e.g., if Plan Year quarter is selected below and the allocation condition is 250 Hours of Service per quart er, enter 250 hours (not 1000) at b.8. above). f. [ ] The Plan Year quarter. g. [ ] Payroll period. h. [ ] Other: (must be definitely determinable and not subject to Employer discretion and may not be longer than a twelve month period). 29. FORFEITURES (Plan Sections 1.21 and 4.3(e)) Forfeitures of Employer contributions other than matching contributions will be: a. [ ] added to the Employer contribution and allocated in the same manner b. [X] used to reduce any Employer contribution c. [ ] allocated to all Participants eligible to share in the allocations of Employer contributions or Forfeitures in the same proportion that each Participant's Compensation for the Plan Year bears to the Compensation of all Participants for such year d. [ ] other: (describe the treatment of Forfeitures in a manner that is definitely determinable and not subject to Employer discretion; e.g., Forfeitures attributable to transferred balances from Plan X are allocated as additional discretionary contributions only to former Plan X Participants) Forfeitures of Employer matching contributions will be: e. [X] N/A. Same as above or no Employer matching contributions. f. [ ] used to reduce the Employer matching contribution. g. [ ] used to reduce any Employer contribution. h. [ ] other: (describe the treatment of Forfeitures in a manner that is definitely determinable and not subject to Employer discretion; e.g., Forfeitures attributabl e to transferred balances from Plan X are allocated as additional discretionary contributions only to former Plan X Participants) 30. ALLOCATION OF EARNINGS (Plan Section 4.3(c)) Allocation of earnings with respect to amounts which are not subject to Part icipant investment direction and which are contributed to the Plan after the previous Valuation Date will be determined: a. [X] N/A. (all assets in the Plan are subject to Participant investment direction) b. [ ] by using a weighted average based on the amount of time that has passed between the date a contribution or distribution is made and the prior Valuation Date c. [ ] by treating one-half of all such contributions as being a part of the Participant's nonsegregated Account balance as of the previous Valuation Date d. [ ] by using the method specified in Plan Section 4.3(c) (balance forward method) e. [ ] other: (must be a definite predetermined formula) 31. MANDATORY EMPLOYEE CONTRIBUTIONS (Plan Section 4.8) (skip if mandatory Employee contributions NOT selected at Question 11.d.) a. [ ] An Eligible Employee must contribute to the Plan % (not to exceed 25%) of Compensation. b. [ ] An Eligible Employee must, prior to his or her first Entry Date, make a one-time irrevocable election to contribute to the Plan from % (not less than 1%) to % (not to exceed 25%) of Compensation. c. [ ] Other: (must be definitely determinable) Employer pick-up contribution. The mandatory Employee contribution is "picked up" by the Employer under Code §414(h)(2) unless elected below. d. [ ] The mandatory Employee contribution is not "picked-up" by the Employer. 32. AFTER-TAX VOLUNTARY EMPLOYEE CONTRIBUTIONS (Plan Section 4.9) (skip if after-tax voluntary Employee contributions NOT selected at Question 11.e.) Matching after-tax voluntary Employee contributions. There are no Employer matching contributions on after-tax voluntary Employee contributions unless elected below. a. [ ] After-tax voluntary Employee contributions are considered elective deferrals for purposes o f applying any matching contributions under the Plan. DISTRIBUTIONS 33. FORM OF DISTRIBUTIONS (Plan Sections 6.5 and 6.6) Distributions under the Plan may be made in (select all that apply; must select at least one): a. [X] lump-sums b. [X] substantially equal installments c. [X] partial withdrawals, provided the minimum withdrawal is $ (leave blank if no minimum) 2021/11/09 City Council Post Agenda Page 89 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 13 d. [X] partial withdrawals or installments are only permitted for Participants or Beneficiaries who must receive required minimum distributions under Code §401(a)(9) except for the following (e.g., partial is not permitted for death benefits; leave blank if no exceptions): 1. [ ] e. [X] annuity: Annuity Purchase (describe the form of annuity or annuities) f. [ ] other: (must be definitely determinable and not subject to Employer discretion) NOTE: Regardless of the above, a Participant is not required to request a withdrawal of his or her total Account for an in-service distribution, a hardship distribution, or a distribution from the Participant 's Rollover Account. Cash or property. Distributions may be made in: g. [X] cash only, except for (select all that apply; leave blank if none apply): 1. [ ] insurance Contracts 2. [ ] annuity Contracts 3. [ ] Participant loans h. [ ] cash or property, except that the following limitation(s) apply: (leave blank if there are no limitations on property distributions): 1. [ ] (must be definitely determinable and not subject to Employer discretion) 34. CONDITIONS FOR DISTRIBUTIONS UPON SEVERANCE OF EMPLOYMENT. Distributions upon severance of employment pursuant to Plan Section 6.4(a) will not be made unless the following conditions have been satisfied: A. Accounts in excess of $5,000 a. [X] Distributions may be made as soon as administratively feasible following severance of employment. b. [ ] Distributions may be made as soon as administratively feasible after the last day of the Plan Year coincident with or next following severance of employment. c. [ ] Distributions may be made as soon as administratively feasible after the last day of the Plan Year quarter coincident with or next following severance of employment. d. [ ] Distributions may be made as soon as administratively feasible after the Valuation Date coincident with or next following severance of employment. e. [ ] Distributions may be made as soon as administratively feasible after months have elapsed following severance of employment. f. [ ] No distributions may be made until a Participant has reached Early or Normal Retirement Date. g. [ ] Other: (must be objective conditions which are ascertainable and may not exceed the limits of Code §401(a)(14) as set forth in Plan Section 6.7) B. Accounts of $5,000 or less h. [X] Same as above i. [ ] Distributions may be made as soon as administratively feasible following severance of employment. j. [ ] Distributions may be made as soon as administratively feasible after the last day of the Plan Year coincident with or next following severance of employment. k. [ ] Other: (must be objective conditions which are ascertainable and may not exceed the limits of Code §401(a)(14) as set forth in Plan Section 6.7) C. Timing after initial distributable event. If a distribution is not made in accordance with the above provisions upon the occurrence of the distributable event, then a Participant may elect a subsequent distribution at any time after the time the amount was first distributable (assuming the amount is still distributable), unless otherwise selected below (may not be selected with 34.f. and 34.h.): l. [ ] Other: (e.g., a subsequent distribution request may only be made in accordance with l. above (i.e., the last day of another Plan Year); must be objective conditions which are ascertainable and may not exceed the limits of Code §401(a)(14) as set forth in Plan Section 6.7) D. Participant consent (i.e., involuntary cash-outs). Should Vested Account balances less than a certain dollar threshold be automatically distributed without Participant consent (mandatory distributions)? NOTE: The Plan provides that distributions of amounts of $5,000 or less are only paid as lump-sums. m. [X] No, Participant consent is required for all distributions. n. [ ] Yes, Participant consent is required only if the distribution is over: 1. [ ] $5,000 2. [ ] $1,000 3. [ ] $ (less than $1,000) NOTE: If 2. or 3. is selected, rollovers will be included in determining the threshold for Participant consent. 2021/11/09 City Council Post Agenda Page 90 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 14 Automatic IRA rollover. With respect to mandatory distributions of amounts that are $1,000 or less, if a Participant makes no election, the amount will be distributed as a lump-sum unless selected below. 4. [ ] If a Participant makes no election, then the amount will be automatically rolled over to an IRA provided the amount is at least $ (e.g., $200). E. Rollovers in determination of $5,000 threshold. Unless otherwise elected below, amounts attributable to rollover contributions (if any) will be included in determining the $5,000 threshold for timing of distributions, form of distributions, or consent rules. o. [ ] Exclude rollovers (rollover contributions will be excluded in determining the $5,000 threshold) NOTE: Regardless of the above election, if the Participant consent threshold is $1,000 or less, then the Administrator must include amounts attributable to rollovers for such purpose. In such case, an election to exclude rollovers above will apply for purposes of the timing and form of distributions. 35. DISTRIBUTIONS UPON DEATH (Plan Section 6.8(b)(2)) Distributions upon the death of a Participant prior to the "required beginning date" will: a. [X] be made pursuant to the election of the Participant or "designated Beneficiary" b. [ ] begin within 1 year of death for a "designated Beneficiary" and be payable over the life (or over a period not exceeding the "life expectancy") of such Beneficiary, except that if the "designated Beneficiary" is the Participant's Spouse, begin prior to December 31st of the year in which the Participant would have attained age 70 1/2 c. [ ] be made within 5 (or if lesser ) years of death for all Beneficiaries d. [ ] be made within 5 (or if lesser ) years of death for all Beneficiaries, except that if the "designated Beneficiary" is the Participant's Spouse, begin prior to December 31st of the year in which the Participant would have attained age 70 1/2 and be payable over the life (or over a period not exceeding the "life expectancy") of such "surviving Spouse" NOTE: The elections above must be coordinated with the Form of distributions (e.g., if the Plan only permits lump -sum distributions, then options a., b. and d. would not be applicable). 36. OTHER PERMITTED DISTRIBUTIONS (select all that apply; leave blank if none apply) A. IN-SERVICE DISTRIBUTIONS (Plan Section 6.11) In-service distributions will NOT be allowed (except as otherwise permitted under the Plan without regard to this provision) unless selected below (if applicable, answer a. - e.; leave blank if not applicable): a. [X] In-service distributions may be made to a Participant who has not separated from service provided the following has been satisfied: 1. [X] Age. The Participant has reached: a. [ ] Normal Retirement Age b. [ ] age 62 c. [X] age 70 1/2 (may not be earlier than age 62) Special effective date (may be left blank if same as Plan or Restatement Effective Date) d. [ ] (if this is a PPA restatement and the provisions were effective prior to the Restatement Effective Date, then enter the date such provisions were first effective; may not be earlier than the first day of the Plan Year beginning in 2007) Account restrictions. In-service distributions are permitted from the following Participant Accounts: b. [X] all Accounts c. [ ] only from the following Accounts (select one or more): 1. [ ] Account attributable to Employer matching contributions 2. [ ] Account attributable to Employer contributions other than matching contributions 3. [ ] Rollover Account 4. [ ] Transfer Account 5. [ ] Other: (specify Account(s) and conditions in a manner that satisfies the definitely determinable requirement under Regulations §1.401-1(b) and is not subject to Employer discretion) Limitations. The following limitations apply to in-service distributions: d. [ ] N/A (no additional limitations) e. [X] Additional limitations (select one or more): 1. [ ] The minimum amount of a distribution is $ . 2. [ ] No more than distribution(s) may be made to a Participant during a Plan Year. 3. [X] Distributions may only be made from Accounts which are fully Vested. 4. [ ] In-service distributions may be made subject to the following provisions: (must satisfy the definitely determinable requirement under Regulations §1.401-1(b) and not be subject to Employer discretion). 37. HEART ACT PROVISIONS (Plan Section 6.17) Continued benefit accruals. a. [X] Continued benefit accruals will NOT apply b. [ ] Continued benefit accruals will apply 2021/11/09 City Council Post Agenda Page 91 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 15 Special effective date. If this is a PPA restatement and the provision applied other than as of the first day of the 2007 Plan Year, then enter the date such provision was first effective: (leave blank if not applicable) c. [ ] (may not be earlier than the first day of the 2007 Plan Year) Distributions for deemed severance of employment d. [X] The Plan does NOT permit distributions for deemed severance of employment e. [ ] The Plan permits distributions for deemed severance of employment Special effective date (may be left blank if same as Plan or Restatement Effective Date) 1. [ ] (if this is a PPA restatement and the provisions were effective prior to the Restatement Effective Date, then enter the date such provisions were first effective; may not be earlier than January 1, 2007) MISCELLANEOUS 38. LOANS TO PARTICIPANTS (Plan Section 7.6) a. [ ] New loans are NOT permitted. b. [X] New loans are permitted. NOTE: Regardless of whether new loans are permitted, if the Plan permits rollovers, then the Administrator may, in a uniform manner, accept rollovers of loans into this Plan. 39. ROLLOVERS (Plan Section 4.6) (skip if rollover contributions are NOT selected at 11.f.) Eligibility. Rollovers may be accepted from all Participants who are Employees as well as the following (select all that apply; leave blank if not applicable): a. [X] Any Eligible Employee, even prior to meeting eligibility conditions t o be a Participant b. [ ] Participants who are Former Employees Distributions. When may distributions be made from a Participant's Rollover Account? c. [X] At any time d. [ ] Only when the Participant is otherwise entitled to a distribution under the Plan PPA TRANSITION RULES The following questions only apply if this is a PPA restatement (i.e., Question 5.b.1. is selected). If this is not a PPA res tatement, then this Plan will not be considered an individually designed plan merely because the followi ng questions are deleted from the Adoption Agreement. NOTE: The following provisions are designed to be left unanswered if the selections do not apply to the Plan. 40. WRERA - RMD WAIVERS FOR 2009 (Plan Section 6.8(f)) Suspension/continuation of RMDs. Unless otherwise elected below, required minimum distributions (RMDs) for 2009 were suspended unless a Participant or Beneficiary elected to receive such distributions: a. [ ] RMDs for 2009 were suspended for any Participant or Beneficiary who was scheduled to receive his/her first RMD for 2009 or who did not make a continuing election prior to 2009 to receive his/her RMD (unless the Participant or Beneficiary made an election to receive such distribution). RMDs for 2009 were continued for any Participant o r Beneficiary who had made a continuing election to receive an RMD prior to 2009 (unless the Participant or Beneficiary made an election to suspend such distribution). b. [ ] RMDs continued unless otherwise elected by a Participant or Beneficiary. c. [ ] RMDs continued in accordance with the terms of the Plan (i.e., no election available to Participants or Beneficiaries). d. [ ] Other: Direct rollovers. The Plan also treated the following as "eligible rollover distributions" in 2009 (If no election is made, then a "direct rollover" was only offered for "2009 RMDs"): e. [ ] "2009 RMDs" and "Extended 2009 RMDs." f. [ ] "2009 RMDs" but only if paid with an additional amount that is an "eligible rollover distribution" without regard to Code §401(a)(9)(H). 41. NON-SPOUSAL ROLLOVERS (Plan Section 6.14(d)). Non-spousal rollovers are permitted effective for distributions after December 31, 2006 unless an alternative effective date is selected at a. below: a. [ ] Non-spousal rollovers are allowed effective (may not be earlier than January 1, 2007 and not later than January 1, 2010; the Plan already provides for non-spousal rollovers effective as of January 1, 2010) 2021/11/09 City Council Post Agenda Page 92 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 16 The adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that the Plan is qualified under Code §401 only to the extent provided in Rev. Proc. 2011 -49 or subsequent guidance. The Employer may not rely on the advisory letter in certain other circumstances or with respect to certain qualification requirements, which are specified in the advisory letter issued with respect to the Plan and in Rev. Proc. 2011-49 or subsequent guidance. In order to have reliance in such circumstances or with respect to such qualification requirements, application for a determination letter must be made to Employee Plans Determinations of the Internal Revenue Service. This Adoption Agreement may be used only in conjunction with the Volume Submitter basic Plan document #09. This Adoption Agreement and the basic Plan document will together be known as Nationwide Financial Services, Inc. Governmental Volume Submitter Money Purchase Plan #09-002. The adoption of this Plan, its qualification by the IRS, and the related tax consequences are the responsibility of the Employer and its independent tax and legal advisors. Nationwide Financial Services, Inc. will notify the Employer of any amendments made to the Plan or of the discontinuance or abandonment of the Plan. Furthermore, in order to be eligible to receive such notification, the Employer agrees to notify Nationwide Financial Services, Inc. of any change in address. In addition, this Plan is provided to the Employer either in connection with invest ment in a product or pursuant to a contract or other arrangement for products and/or services. Upon cessation of such investment in a product or cessation of such contract or arrangement, as applicable, the Employer is no longer considered to be an adopter of this Plan and Nationwide Financial Services, Inc. no longer has any obligations to the Employer that relate to the adoption of this Plan. With regard to any questions regarding the provisions of the Plan, adoption of the Plan, or the effect of an advisory letter from the IRS, call or write (this information must be completed by the sponsor of this Plan or its designated representative): Name: Nationwide Retirement Solutions Address: P.O. Box 182797 Columbus Ohio 43218 Telephone: (877) 496-1630 The Employer and Trustee (or Insurer) hereby cause this Plan to be executed on the date(s) specified below: EMPLOYER: City of Chula Vista By: DATE SIGNED TRUSTEE (OR INSURER): [ ] The signature of the Trustee or Insurer appears on a separate agreement or Contract, OR (add additional Trustee signature lines as necessary) Sarah Schoen TRUSTEE OR INSURER DATE SIGNED 2021/11/09 City Council Post Agenda Page 93 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 1 APPENDIX A SPECIAL EFFECTIVE DATES AND OTHER PERMITTED ELECTIONS A. Special effective dates (leave blank if not applicable): a. [ ] Special effective date(s): . For periods prior to the specified special effective date(s), the Plan terms in effect prior to its restatement under this Adoption Agreement will control for purposes of the designated provisions. A special effective date may not result in the delay of a Plan provision beyond the permissible effective date under any applicable law. B. Other permitted elections (the following elections are optional): a. [ ] No other permitted elections The following elections apply (select one or more): b. [ ] Deemed 125 compensation (Plan Section 1.23). Deemed 125 compensation will be included in Compensation and 415 Compensation. c. [X] Reemployed after five (5) 1-Year Breaks in Service ("rule of parity" provisions) (Plan Section 3.5(d)). The "rule of parity" provisions in Plan Section 3.5(d) will apply for (select one or both): 1. [ ] eligibility purposes 2. [ ] vesting purposes d. [ ] Beneficiary if no beneficiary elected by Participant (Plan Section 6.2(e)). In the event no valid designation of Beneficiary exists, then in lieu of the order set forth in Plan Section 6.2(e), the following order of priority will be used: (specify an order of beneficiaries; e.g., children per stirpes, parents, and then step-children). e. [ ] Common, collective or pooled trust funds (Plan Sections 7.2(c)(5) and/or 7.3(b)(6)). The name(s) of the common, collective or pooled trust funds available under the Plan is (are): . f. [ ] Limitation Year (Plan Section 1.29). The Limitation Year for Code §415 purposes will be (must be a consecutive twelve month period) instead of the "determination period" for Compensation. g. [ ] 415 Limits when 2 defined contribution plans are maintained (Plan Section 4.4). If any Participant is covered under another qualified defined contribution plan maintained by the Employer or an Affiliated Employer, or if the Employer or an Affiliated Employer maintains a welfare benefit fund, as defined in Code §419(e), or an individual medical account, as defined in Code §415(l)(2), under which amounts are treated as "annual additions" with respect to any Participant in this Plan, then the provisions of Plan Section 4.4(b) will apply unless otherwise specified below: 1. [ ] Specify, in a manner that precludes Employer discretion, the method under which the plans will limit total "annual additions" to the "maximum permissible amount" and will properly reduce any "excess amounts": . h. [ ] Recognition of Service with other employers (Plan Sections 1.39 and 1.54). Service with the following employers (in addition to those specified at Question 15) will be recognized as follows (select one or more): Contribution Eligibility Vesting Allocation 1. [ ] Employer name: a. [ ] b. [ ] c. [ ] 2. [ ] Employer name: a. [ ] b. [ ] c. [ ] 3. [ ] Employer name: a. [ ] b. [ ] c. [ ] 4. [ ] Employer name: a. [ ] b. [ ] c. [ ] 5. [ ] Employer name: a. [ ] b. [ ] c. [ ] 6. [ ] Employer name: a. [ ] b. [ ] c. [ ] Limitations 7. [ ] The following provisions or limitations apply with respect to the a. [ ] b. [ ] c. [ ] recognition of prior service: (e.g., credit service with X only on/following 1/1/13) 2021/11/09 City Council Post Agenda Page 94 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 2 i. [ ] Other vesting provisions. The following vesting provisions apply to the Plan (select one or more): 1. [ ] Special vesting provisions. The following special provisions apply to the vesting provisions of the Plan: (must be definitely determinable and satisfy the parameters set forth at Question 17) 2. [ ] Pre-amendment vesting schedule. (Plan Section 6.4(b)). If the vesting schedule has been amended and a different vesting schedule other than the schedule at Question 17 applies to any Participants, then the following provisions apply (must select one of a. – d. AND complete e.): Applicable Participants. The vesting schedules in Question 17 only apply to: a. [ ] Participants who are Employees as of (enter date). b. [ ] Participants in the Plan who have an Hour of Service on or after (enter date). c. [ ] Participants (even if not an Employee) in the Plan on or after (enter date). d. [ ] Other: (e.g., Participants in division A) Vesting schedule e. The schedule that applies to Participants not subject to the vesting schedule in Question 17 is: Years (or Periods) of Service Percentage % % % % % % j. [ ] Minimum distribution transitional rules (Plan Section 6.8(e)(5)) NOTE: This Section does not apply to (1) a new Plan, (2) an amendment or restatement of an existing Plan that never contained the provisions of Code §401(a)(9) as in effect prior to the amendments made by the Small Business Job Protection Act of 1996 (SBJPA), or (3) a Plan where the transition rules below do not affect any current Participants. The "required beginning date" for a Participant is: 1. [ ] April 1st of the calendar year following the year in which the Participant attains age 70 1/2. (pre-SBJPA rules continue to apply) 2. [ ] April 1st of the calendar year following the later of the year in which the Participant attains age 70 1/2 or retires (the post-SBJPA rules), with the following exceptions (select one or both; leave blank if both applied effective as of January 1, 1996): a. [ ] A Participant who was already receiving required minimum distributions under the pre-SBJPA rules as of (may not be earlier than January 1, 1996) was allowed to stop receiving distributions and have them recommence in accordance with the post-SBJPA rules. Upon the recommencement of distributions, if the Plan permits annuities as a form of distribution then the following apply: 1. [ ] N/A (annuity distributions are not permitted) 2. [ ] Upon the recommencement of distributions, the original Annuity Starting Date will be retained. 3. [ ] Upon the recommencement of distributions, a new Annuity Starting Date is created. b. [ ] A Participant who had not begun receiving required minimum distributions as of (may not be earlier than January 1, 1996) may elect to defer commencement of distributions until retirement. The option to defer the commencement of distributions (i.e., to elect to receive in-service distributions upon attainment of age 70 1/2) applies to all such Participants unless selected below: 1. [ ] The in-service distribution option was eliminated with respect to Participants who attained age 70 1/2 in or after the calendar year that began after the later of (1) December 31, 1998, or (2) the adoption date of the restatement to bring the Plan into compliance with the SBJPA. k. [ ] Other spousal provisions (select one or more) 1. [ ] Definition of Spouse. The term Spouse includes a spouse under federal law as well as the following: . 2. [ ] Automatic revocation of spousal designation (Plan Section 6.2(f)). The automatic revocation of a spousal Beneficiary designation in the case of divorce does not apply. 3. [ ] Timing of QDRO payment. A distribution to an Alternate Payee shall not be permitted prior to the time a Participant would be entitled to a distribution. l. [X] Applicable law. Instead of using the applicable laws set forth in Plan Section 9.4(a), the Plan will be governed by the laws of: California m. [ ] Total and Permanent Disability. Instead of the definition at Plan Section 1.49, Total and Permanent Disability means: (must be definitely determinable). 2021/11/09 City Council Post Agenda Page 95 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 3 n. [ ] Permissible Trust (or Custodian) modifications. The Employer makes the following modifications to the Trust (or Custodial) provisions as permitted under Rev. Proc. 2011-49 (or subsequent IRS guidance) (select one or more of 1. - 3. below): NOTE: Any elections below must not: (i) conflict with any Plan provision unrelated to the Trust or Trustee; or (ii) cause the Plan to violate Code §401(a). In addition, this may not be used to substitute all of the Trust provisions in the Plan. 1. [ ] Investments. The Employer amends the Trust provisions relating to Trust investments as follows: 2. [ ] Duties. The Employer amends the Trust provisions relating to Trustee (or Custodian) duties as follows: 3. [ ] Other administrative provisions. The Employer amends the other administrative provisions of the Trust as follows: 2021/11/09 City Council Post Agenda Page 96 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 1 ADMINISTRATIVE PROCEDURES The following are optional administrative provisions. The Administrator may implement procedures that override any elections in this Section without a formal Plan amendment. In addition, modifications to these procedures will not affect an Employe r's reliance on the Plan. A. Loan Limitations. (complete only if loans to Participants are permitted; leave blank if none apply) a. [X] Limitations (select one or more): 1. [X] Loans will be treated as Participant directed investments. 2. [ ] Loans will only be made for hardship or financial necessity as specified below (select i. or ii.) a. [ ] hardship reasons specified in Plan Section 6.12 b. [ ] financial necessity (as defined in the loan program). 3. [X] The minimum loan will be $ 1,000 . 4. [X] A Participant may only have one (1) (e.g., one (1)) loan(s) outstanding at any time. 5. [ ] All outstanding loan balances will become due and payable in their entirety upon the occurrence of a distributable event (other than satisfaction of the conditions for an in-service distribution (including a hardship distribution), if applicable). 6. [X] Account restrictions. Loans will only be permitted from the following Participant Accounts (select all that apply or leave blank if no limitations apply): a. [ ] Account(s) attributable to Employer matching contributions b. [ ] Account attributable to Employer contributions other than matching contributions c. [X] Rollover Account d. [ ] Transfer Account e. [X] Other: before tax account AND, if loans are restricted to certain accounts, the limitations of Code §72(p) will be applied: f. [X] by determining the limits by only considering the restricted accounts. g. [ ] by determining the limits taking into account a Participant's entire interest in the Plan. Additional Loan Provisions (select all that apply; leave blank if none apply) b. [X] Loan payments. Loans are repaid by (if left blank, then payroll deduction applies unless Participant is not subject to payroll (e.g., partner who only has a draw)): 1. [ ] payroll deduction 2. [X] ACH (Automated Clearing House) 3. [ ] check a. [ ] Only for prepayment c. [X] Interest rate. Loans will be granted at the following interest rate (if left blank, then 3. below applies): 1. [X] 2 percentage points over the prime interest rate 2. [ ] % 3. [ ] the Administrator establishes the rate at the time the loan is made d. [ ] Refinancing. Loan refinancing is allowed. B. Life Insurance. (Plan Section 7.5) a. [X] Life insurance may not be purchased. b. [ ] Life insurance may be purchased... 1. [ ] at the option of the Administrator 2. [ ] at the option of the Participant Limitations 3. [ ] N/A (no limitations) 4. [ ] The purchase of initial or additional life insurance will be subject to the following limitations (select one or more): a. [ ] Each initial Contract will have a minimum face amount of $ . b. [ ] Each additional Contract will have a minimum face amount of $ . c. [ ] The Participant has completed Years (or Periods) of Service. d. [ ] The Participant has completed Years (or Periods) of Service while a Participant in the Plan. e. [ ] The Participant is under age on the Contract issue date. f. [ ] The maximum amount of all Contracts on behalf of a Participant may not exceed $ . g. [ ] The maximum face amount of any life insurance Contract will be $ . C. Plan Expenses. Will the Plan assess against an individual Participant's Account certain Plan expenses that are incurred by, or are attributable to, a particular Participant based on use of a particular Plan service? a. [ ] No b. [X] Yes 2021/11/09 City Council Post Agenda Page 97 of 470 Governmental Money Purchase Plan © 2014 Nationwide Financial Services, Inc. or its suppliers 2 D. Directed investments a. [ ] Participant directed investments are NOT permitted. b. [X] Participant directed investments are permitted from the following Participant Accounts: 1. [X] all Accounts 2. [ ] only from the following Accounts (select one or more): a. [ ] Account attributable to Employer contributions b. [ ] Rollover Account c. [ ] Transfer Account d. [ ] Other: (specify Account(s) and conditions in a manner that is definitely determinable and not subject to Employer discretion) E. Rollover Limitations. Will the Plan accept rollover contributions and/or direct rollovers from the sources specified below? a. [ ] No, Administrator determines in operation which sources will be accepted. b. [X] Yes Rollover sources. Indicate the sources of rollovers that will be accepted (select one or more) 1. [X] Direct Rollovers. The Plan will accept a direct rollover of an eligible rollover distribution from (select one or more): a. [X] a qualified plan described in Code §401(a) (including a 401(k) plan, profi t sharing plan, defined benefit plan, stock bonus plan and money purchase plan), excluding after-tax employee contributions b. [ ] a qualified plan described in Code §401(a) (including a 401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan and money purchase plan), including after-tax employee contributions c. [X] a plan described in Code §403(a) (an annuity plan), excluding after -tax employee contributions d. [ ] a plan described in Code §403(a) (an annuity plan), including after-tax employee contributions e. [X] a plan described in Code §403(b) (a tax-sheltered annuity), excluding after-tax employee contributions f. [ ] a plan described in Code §403(b) (a tax-sheltered annuity), including after-tax employee contributions g. [X] a plan described in Code §457(b) (eligible deferred compensation plan) Direct Rollovers of Participant Loan. The Plan will NOT accept a direct rollover of a Participant loan from another plan unless selected below (leave blank if default applies) h. [ ] The Plan will accept a direct rollover of a Participant loan i. [ ] The Plan will only accept a direct rollover of a Participant loan only in the following situation(s): (e.g., only from Participants who were employees of an acquired organization). 2. [X] Participant Rollover Contributions from Other Plans (i.e., not via a direct plan-to-plan transfer). The Plan will accept a contribution of an eligible rollover distribution (select one or more): a. [X] a qualified plan described in Code §401(a) (including a 401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan and money purchase plan) b. [X] a plan described in Code §403(a) (an annuity plan) c. [X] a plan described in Code §403(b) (a tax-sheltered annuity) d. [X] a governmental plan described in Code §457(b) (eligible deferred compensation plan) 3. [X] Participant Rollover Contributions from IRAs: The Plan will accept a rollover contribution of the portion of a distribution from a traditional IRA that is eligible to be rolled over and would otherwise be includible in gross income. Rollovers from Roth IRAs or a Coverdell Education Savings Account (formerly known as an Education IRA) are not permitted because they are not traditional IRAs. A rollover from a SIMPLE IRA is allowed if the amounts are rolled over after the individual has been in the SIMPLE IRA for at least two years. 2021/11/09 City Council Post Agenda Page 98 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Proposed Staffing: Amend Measure A Public Safety Expenditure Plan to add 10 positions Report Number: 21-0202 Location: No specific geographic location Department: Finance, Fire, Human Resources, Police Environmental Notice: 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. Recommended Action Adopt resolutions: A) amending the Compensation Schedule and Classification Plan to reflect the addition of Property & Evidence Supervisor; B) approving the revised Fiscal Year 2021-2022 Compensation Schedule effective January 14, 2022, as required by California Code of Regulations, Title 2, Section 570.5; C) approving the amended Measure A Public Safety Expenditure Plan to add one Police Captain, one Equipment Mechanic, one Forensics Specialist, 3 Property & Evidence Specialists, one Property & Evidence Supervisor and 3 Senior Police Records Specialists, and amending the Fiscal Year 2022 expenditure budget for the Measure A Sales Tax Fund to fund such positions out of Measure A available fund balance (4/5 Vote Required); and D) approving various amendments to the Fiscal Year 2021/22 Budget for appropriating funds therefor (4/5 Vote Required). SUMMARY To meet ongoing operational needs, the Police and Fire Departments are proposing to amend the Measure A Public Safety Expenditure Plan to add the following 10 positions in FY2021-22: • 1.0 Police Captain • 1.0 Equipment Mechanic • 1.0 Forensics Specialist • 3.0 Property & Evidence Specialists 2021/11/09 City Council Post Agenda Page 99 of 470 P a g e | 2 • 1.0 Property & Evidence Supervisor • 3.0 Senior Police Records Specialists ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION During its regular meeting held on October 14, 2021, the Measure A Citizens’ Oversight Committee (COC) recommended City Council approval of adding one Police Captain, one Equipment Mechanic, one Forensics Specialist, 3 Property & Evidence Specialists, one Property & Evidence Supervisor and 3 Senior Police Records Specialists in fiscal year 2021/2022, based on available fund balance in the Measure A Sales Tax Fund. The COC voted unanimously in favor of Measure A funding for the ten positions. DISCUSSION The charts below outline the current Measure A staffing plan for the Police and Fire Departments, as approved by City Council on May 25, 2021 during the Fiscal Year 2021-22 budget adoption and supported by the Measure A Citizens’ Oversight Committee on April 8, 2021. Position FY19 FY20 FY21 FY22 Total POLICE LIEUTENANT 1.0 1.0 POLICE SERGEANT 3.0 3.0 1.0 7.0 POLICE AGENT 1.0 2.0 3.0 2.0 8.0 PEACE OFFICER 4.0 6.0 14.0 24.0 SWORN FTE TOTAL 5.0 11.0 21.0 3.0 40.0 CIVILIAN BACKGROUND INVESTIGATOR 1.0 1.0 COMMUNITY SERVICE OFFICER 2.0 2.0 DIGITAL FORENSICS TECHNICIAN II 2.0 2.0 INFORMATION TECHNOLOGY TECHNICIAN 1.0 1.0 COMMUNICATIONS CENTER MANAGER 1.0 1.0 POLICE DISPATCHER 2.0 5.0 7.0 PUBLIC INFORMATION SPECIALIST 1.0 1.0 SR. POLICE TECHNOLOGY SPECIALIST 1.0 1.0 CIVILIAN FTE TOTAL 4.0 10.0 2.0 0.0 16.0 POLICE DEPARTMENT TOTAL 9.0 21.0 23.0 3.0 56.0 Figure 1. Police Department Public Safety Expenditure Plan as of 7/1/2021 2021/11/09 City Council Post Agenda Page 100 of 470 P a g e | 3 With the successful passage of the Measure A Sales Tax, staff is continuing to implement the Public Safety Expenditure Plan (PSEP). As outlined in the current spending plan, the Police Department was able to add 56 positions (40 sworn and 16 civilian) and the Fire Department was able to add 30 sworn positions (as of 7/1/2021) through Measure A funding. From its available fund balance, the Police Department is requesting to add 9.5 FTE positions to its PSEP. These proposed positions align with the Department’s 5-year strategic plan developed in 2019 and currently being finalized. The Police Department’s Strategic Plan reaffirms the vision, mission, values and strategic priorities as a progressive and community-focused organization. Also, the Fire Department is requesting to add 0.5 FTE Equipment Mechanic to its PSEP, funded by its available Measure A fund balance that will be budgeted in the Central Garage Fund. Currently, there is a healthy reserve balance of $29.5M in the Measure A fund as of 6/30/2021 ($17.8M for Police and $11.6M for Fire). Because additional staffing is needed to meet the operational needs of the Police & Fire Departments, staff is requesting to fund the following positions based on anticipated sales tax revenues. Police Captain As the Police Department has grown in size and complexity, the current configuration of a Chief of Police and four division managers (3 Captains & 1 Admin Services Manager) is increasingly unwieldy. The Department has become a national leader in police innovation and 21st Century Policing, which is a significant advantage for the agency as it meets the challenges of the future. At the same time, CVPD’s innovations draw management and executive staff time and energy in a number of directions external to the management of the organization. This includes participation in state organizations, speaking engagements at conferences, media interviews, and responding to elected officials at various levels interested to know more about the leading edge of police practice. A 4th Police Captain will provide the adequate span of control for the Department, given that 56 positions have been added to the Department through Measure A funding. Adding a 5th division (under a Captain) will allow the department to consolidate management and oversight of some crucial operational areas that are currently handled as collateral duties. Equipment Mechanic With the approval of Measure A, the Police and Fire departments have added staff and associated vehicles and equipment. This in turn has resulted in increased workload for the City’s Fleet Maintenance staff. The addition of an Equipment Mechanic will allow for improved service delivery for public safety vehicles as Position FY19 FY20 FY21 FY22 FY23 FY24 Total FIRE CAPTAIN 2.0 2.0 (4.0)1.0 1.0 FIREFIGHTER PARAMEDIC 2.0 2.0 (4.0)1.0 1.0 FIREFIGHTER/EMT 12.0 3.0 9.0 3.0 3.0 30.0 FIRE CAPTAIN/PIO 1.0 1.0 FIRE CAPTAIN - OPERATIONS SUPPORT 1.0 1.0 DEPUTY CHIEF 2.0 (1.0)1.0 SWORN FTE TOTAL 19.0 7.0 1.0 3.0 0.0 5.0 35.0 FIRE DEPARTMENT TOTAL 19.0 7.0 1.0 3.0 0.0 5.0 35.0 Figure 2. Fire Department Public Safety Expenditure Plan as of 7/1/2021 2021/11/09 City Council Post Agenda Page 101 of 470 P a g e | 4 preventative maintenance and repairs will be addressed in a timelier manner. Half (0.5 FTE) of a full-time position will be funded by the Police Department, and the other half will be funded by the Fire Department. The position will be budgeted in the Central Garage Fund. Forensic Specialist Due to a recent assessment of crime lab operations, police staff have identified an area that requires significant improvement, particularly in firearms evidence processing. The average time it takes to get a crime gun into the firearms database (IBIS) is approximately 6 months. The ATF released Minimum Required Operating Standards (MROS) that identify 72 hours as the appropriate time frame to enter crime guns and cartridge casings into the system, to provide real-time information to investigators. The Crime Lab at the Police Department has been unable to meet these MROS’s, due to the structural issues inherent in using a contract laboratory. This issue should be resolved by assuming the responsibility of directly entering firearms evidence into IBIS rather than relying on external laboratory organizations. This can be achieved by providing additional training of current forensic personnel, adding required instrumentation, and adding 1.0 Forensic Specialist. The addition of a Forensic Specialist would also provide operational continuity for the existing 2.0 Forensic Specialists when responding to crime scene investigations, add structural integrity to the laboratory program, and provide the Police Department with new capabilities necessary to help reduce gun violence in our City. Property & Evidence Supervisor (1) and Property Evidence Specialists (3) The Police Department’s Evidence Control Unit (ECU) is responsible for more than 40,000 evidence transactions each year, and manages a number of time consuming programs to meet the requirements of state and federal regulations. The ECU is staffed by 2 full-time and 3 part-time hourly Property and Evidence Specialists. (ECU staffing was significantly reduced beginning in 2007, and remains below pre-2007 levels.) Estimates suggest that the ECU falls behind in its mandatory tasks at a rate of 1½ days per week, resulting in a net loss of 3-4 months per year. This continues to put the ECU several years behind what would otherwise be a mandatory task load. Meanwhile, lower priority projects are at least a decade behind. When measured against seven other similar agencies in the County of San Diego (Escondido, El Cajon, National City, Coronado, La Mesa, Oceanside, and Carlsbad), all agencies staff their equivalent units an average of 2.3 times the number of staff in comparison with Chula Vista’s ECU. Adding one Property & Evidence Supervisor and 3 Property & Evidence Specialists will address the workload issues in the ECU. Because the Property & Evidence Supervisor does not exist in the City’s current classification list, a new classification will be created as summarized below. Compensation Schedule Requirement California Code of Regulations, Title 2, Section 570.5 requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets certain requirements and be approved by the governing body in accordance with the requirements of the applicable public meeting laws. The Fiscal Year 2021-2022 Compensation Schedule ("Compensation Figure 3. Summary of New Classification Position Title Bargaining Group Bi-Weekly E Step Property and Evidence Supervisor ACE $2,804.99 2021/11/09 City Council Post Agenda Page 102 of 470 P a g e | 5 Schedule") was approved by the City Council at their meeting of October 26, 2021. This item ensures continued compliance with California Code of Regulations, Title 2, Section 570.5, by ensuring the City has an up-to-date, publicly approved Compensation Schedule. Senior Police Records Specialists (3) The administrative support needs for the Police Support Services (PSS) unit have grown significantly in the last 24 months, while staffing in the unit has remained the same since it lost positions in 2007 due to the recession. The PSS unit reviews and validates over 16,000 reports from the department’s record management system, over 1,500 supplemental officer reports, and over 500 vehicle impound reports each year. The services provided by PSS staff to Police Department colleagues, other City Departments, City residents and government entities have greatly reduced due to limited staff resources, coupled with new local, state and federal mandates for police records. For example, Senate Bill (SB) 16, which builds on the landmark SB 1421, significantly expands the types of police records that must be disclosed, adding four categories to the four existing disclosure mandates. Also, Assembly Bill (AB) 2425 requires the arresting law enforcement agency to seal juvenile arrest records no later than 60 days from the notification by the probation department. The addition of 3 Sr Police Records Specialists to the PSS unit will address the increased workload, complexity of technical systems/processes and legislative mandates. Summary of Proposed Changes: To address the evolving needs of the community, staff recommends the addition of 10 positions to enhance service levels to our community. These include: • 1.0 Police Captain, to provide adequate span of control for a growing organization • 1.0 Equipment Mechanic, for improved service delivery of public safety vehicles funded by Measure A and budgeted in the Central Garage Fund. • 1.0 Forensics Specialist, to assist with firearms evidence processing • 3.0 Property & Evidence Specialists, to keep up with mandated evidence tasks • 1.0 Property & Evidence Supervisor, to oversee the Evidence Control Unit • 3.0 Senior Police Records Specialists, to provide adequate support due to constant-changing legislative mandates The chart below outlines proposed changes (highlighted in yellow) to the Police Department’s PSEP. 2021/11/09 City Council Post Agenda Page 103 of 470 P a g e | 6 The Police and Fire Departments recognize that current community demands, safety strategies, and staffing needs will likely change in the future. Both departments also recognize that revenues and expenses used to calculate current allocation plans may change in the future. PSEP recommendations for future years will continue to be reevaluated, balanced against changes in revenue or expenditure projections, and considered along with changing public safety trends and community needs. As a result, this Public Safety Expenditure Plan is intended to be a “living document”. Future recommendations may change and will be evaluated as part of the annual budget process. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council me mber, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Position FY19 FY20 FY21 FY22 Total POLICE CAPTAIN 1.0 1.0 POLICE LIEUTENANT 1.0 1.0 POLICE SERGEANT 3.0 3.0 1.0 7.0 POLICE AGENT 1.0 2.0 3.0 2.0 8.0 PEACE OFFICER 4.0 6.0 14.0 24.0 SWORN FTE TOTAL 5.0 11.0 21.0 4.0 41.0 CIVILIAN BACKGROUND INVESTIGATOR 1.0 1.0 COMMUNITY SERVICE OFFICER 2.0 2.0 DIGITAL FORENSICS TECHNICIAN II 2.0 2.0 FORENSICS SPECIALIST 1.0 1.0 INFORMATION TECHNOLOGY TECHNICIAN 1.0 1.0 COMMUNICATIONS CENTER MANAGER 1.0 1.0 POLICE DISPATCHER 2.0 5.0 7.0 PROPERTY & EVIDENCE SPECIALIST 3.0 3.0 PROPERTY & EVIDENCE SUPERVISOR 1.0 1.0 PUBLIC INFORMATION SPECIALIST 1.0 1.0 SR. POLICE RECORDS SPECIALIST 3.0 3.0 SR. POLICE TECHNOLOGY SPECIALIST 1.0 1.0 CIVILIAN FTE TOTAL 4.0 10.0 2.0 8.0 24.0 POLICE DEPARTMENT TOTAL 9.0 21.0 23.0 12.0 65.0 Figure 4. Proposed Police Department Public Safety Expenditure Plan 2021/11/09 City Council Post Agenda Page 104 of 470 P a g e | 7 The charts below show the net impact for Measure A in fiscal year 2021/2022 for the proposed positions. The current year fiscal impact assumes a January 1, 2022 hire date for these proposed positions. The City support staff line item includes one full-time Equipment Mechanic (shared funding by both Police & Fire Departments) funded by Measure A and budgeted in the Central Garage Fund. ONGOING FISCAL IMPACT Category Current FY22 PSEP Amendments Updated FY22 PSEP Beginning Police Department Funds Available $17,838,009 Sales Tax Revenue $11,521,000 $11,521,000 COPS Grant Funding $250,000 $250,000 REVENUE TOTAL $11,771,000 $0 $11,771,000 Personnel Expenses $9,469,869 $492,578 $9,962,447 Supplies & Services $739,956 $739,956 Police Vehicles & Maintenance $196,094 $196,094 City Support Staff $432,038 $25,047 $457,085 EXPENSE TOTAL $10,837,957 $517,625 $11,355,582 NET FISCAL IMPACT $933,043 ($517,625)$415,418 Ending Police Department Available Funds $18,253,427 Category Current FY22 PSEP Amendments Updated FY22 PSEP Beginning Fire Department Funds Available $11,662,623 Sales Tax Revenue $11,388,509 $11,388,509 FEMA SAFER Grant Reimbursement $306,857 $306,857 REVENUE TOTAL $11,695,366 $0 $11,695,366 Personnel Expenses $7,256,676 $7,256,676 Supplies & Services $163,625 $163,625 Fire Vehicles & Maintenance $309,742 $309,742 City Support Staff $427,069 $25,047 $452,116 EXPENSE TOTAL $8,157,112 $25,047 $8,182,159 NET FISCAL IMPACT $3,538,253 ($25,047)$3,513,206 Ending Fire Department Available Funds $15,175,829 2021/11/09 City Council Post Agenda Page 105 of 470 P a g e | 8 City staff believe that the projected sales tax revenues are conservative and the overall reserves in the Measure A fund would be sufficient to fund all positions. It is important to note that Measure A projected sales tax revenues fluctuate with the economy. The City will actively monitor the trends to determine if Measure A positions need to be held vacant in order to avoid long-term structural deficits and avoid layoffs or service level impacts. If at any point in time there exists budgetary challenge s due to unforeseen cost increases or sales tax revenue losses, City staff will reassess the PSEP to determine if positions need to be frozen or removed from the plan, to avoid any fiscal impact to General Fund services. Attachment 1 (Public Safety Expenditure Plan as of 10-11-2021) shows the amended Measure A PSEP, which includes the proposed positions and amendments highlighted in yellow. The ongoing costs associated with these proposed changes are estimated at approximately $757,195 to the Measure A Fund and approximately $98,617 in the Central Garage Fund annually. The overall cost will increase along with future cost of living adjustments and benefit changes. The costs will be incorporated into the baseline salary budgets of the respective departments in future fiscal years. In order to ensure that adequate reserves are maintained in the Measure A fund, staff will be drafting a City Council Measure A reserve policy for consideration in the Spring 2022. This will provide an opportunity to draft policies that will protect the services funded out of Measure A and also ensure that no funding issues flow back to the General Fund impacting other public services. Adequate reserve levels will be determined based on modeling a recession during the 10-year forecast, which is not currently assumed in the Measure A spending plan. This analysis and recommendation for reserve levels will be discussed as part of the development of the reserve policy. ATTACHMENTS Attachment 1: Public Safety Expenditure Plan as of 10-11-2021 Attachment 2: Revised Fiscal Year 2021-2022 Compensation Schedule effective January 14, 2022 Staff Contact: Jonathan Alegre, Police Department 2021/11/09 City Council Post Agenda Page 106 of 470 Intended Public Safety Spending PlanUpdated October 11, 2021Est. One-half cent Sales Tax RevenuesPhase I - Critical NeedsFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearTotal2022202320242025202620272028202920302031EstimatePolice Department Spending PlanEst. Beginning Police Department Funds Available17,838,009$ 18,253,820$ 19,042,202$ 19,563,571$ 19,919,379$ 20,292,757$ 21,156,651$ 21,865,235$ 22,398,857$ 22,735,863$ Estimated 1/2 cent Sales Tax Revenues11,521,000$ 13,053,981$ 13,315,061$ 13,581,362$ 13,852,989$ 14,130,049$ 14,412,650$ 14,700,903$ 14,994,921$ 15,294,819$ 138,857,735$ Other Revenue-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ COPS Grant Funding250,000$ 250,000$ 72,917$ -$ -$ -$ -$ -$ -$ -$ 572,917$ Estimated Funds Available - Police Department 29,609,009$ 31,557,801$ 32,430,180$ 33,144,933$ 33,772,368$ 34,422,806$ 35,569,301$ 36,566,138$ 37,393,778$ 38,030,682$ 139,430,652$ Proposed ExpendituresPeace Officers 3,722,876$ 4,228,872$ 4,381,850$ 4,504,519$ 4,634,303$ 4,771,547$ 4,928,573$ 5,094,875$ 5,271,507$ 5,459,222$ 46,998,144$ Police Agents1,527,280 1,566,635 1,621,219 1,664,455 1,710,093 1,758,335 1,813,898 1,872,727 1,935,015 2,001,110 17,470,767 Police Sergeants1,486,866 1,500,852 1,552,788 1,593,386 1,636,107 1,681,128 1,733,101 1,787,953 1,845,921 1,907,315 16,725,417 Police Lieutenant245,979 247,799 256,335 262,859 269,704 276,893 285,194 293,931 303,135 312,842 2,754,671 Police Captain142,360 297,542 318,868 338,818 360,240 383,246 408,697 436,013 465,334 496,812 3,647,930 Sworn - non-personnel costs53,397 19,890 - - - - - - - - 73,287 Civilian Background Investigator89,099 95,270 98,356 101,567 105,057 108,777 112,971 117,448 122,234 127,357 1,078,136 Community Services Officer157,222 163,353 169,042 174,997 181,478 188,411 196,204 204,552 213,505 223,119 1,871,883 Digital Forensics Technician II193,450 201,971 209,960 216,605 223,824 231,508 240,179 249,423 259,290 269,837 2,296,047 Equipment Mechanic24,654 50,972 52,983 54,651 56,462 58,390 60,566 62,887 65,363 68,009 554,937 Forensics Specialist55,045 113,662 118,001 121,534 125,368 129,440 134,046 138,945 144,161 149,721 1,229,923 Information Technology Technician99,092 100,780 104,770 108,088 111,694 115,531 119,862 124,479 129,408 134,676 1,148,380 Police Comm Systems Manager130,203 138,429 142,412 146,512 150,958 155,667 161,001 166,661 172,674 179,072 1,543,589 Police Dispatcher592,074 670,566 692,665 715,188 739,628 765,684 794,920 826,135 859,510 895,239 7,551,609 Property & Evidence Specialist120,611 250,047 260,583 269,655 279,519 290,061 301,917 314,607 328,209 342,810 2,758,019 Property & Evidence Supervisor50,239 103,846 107,918 111,285 114,942 118,833 123,228 127,910 132,904 138,241 1,129,346 Public Information Specialist107,514 111,014 115,253 118,735 122,516 126,531 131,068 135,895 141,037 146,525 1,256,088 Police Technology Specialist142,928 147,893 152,045 156,307 160,927 165,813 171,354 177,225 183,454 190,071 1,648,017 Sr Police Records Specialist124,323 257,634 268,377 277,575 287,574 298,257 310,275 323,133 336,906 351,678 2,835,732 Civilian Non-Personnel Costs- - - - - - - - - - - 2% personnel cost savings(182,879) (204,943) (212,469) (218,735) (225,408) (232,481) (240,541) (249,096) (258,191) (267,873) (2,292,616) Computers and other equipment128,109 100,000 100,000 100,000 - - - - - - 428,109 Police Vehicles, Outfitting, Maint., Fuel, etc.196,094 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 646,094 Drone Pilot In Command contractual costs558,450 569,619 581,011 592,631 604,484 - - - - - 2,906,195 Transfer Out: Pension Obligations1,158,165 1,244,371 1,225,327 1,255,621 1,260,654 1,294,707 1,327,079 1,360,294 1,394,230 1,409,920 12,930,368 Reimbursement for Support Staff (IT, Fin, HR, City Attorney)432,038 489,524 499,315 509,301 519,487 529,877 540,474 551,284 562,310 573,556 5,207,166 Total Police Department Proposed Expenditures11,355,189$ 12,515,598$ 12,866,609$ 13,225,554$ 13,479,611$ 13,266,155$ 13,704,066$ 14,167,281$ 14,657,916$ 15,159,259$ 134,397,238$ Est. Ending Police Department Available Funds 18,253,820$ 19,042,202$ 19,563,571$ 19,919,379$ 20,292,757$ 21,156,651$ 21,865,235$ 22,398,857$ 22,735,863$ 22,871,423$ Assumptions:FY 2022 Sales Tax Revenue projection from HdL; 2% escalator per year starting in Fiscal year 2024.Phase I - Critical Needs FundingAmounts budgeted in the Intended Public Safety Spending Plan may differ from the City's Annual Budget due to personnel costing estimates in the Annual Budget is based on individual employees projected salaries and benefits, and the Intended Public Safety Spending Plan are estimates that are based on positions. 2021/11/09 City Council Post Agenda Page 107 of 470 Intended Public Safety Spending PlanUpdated October 11, 2021Est. One-half cent Sales Tax RevenuesPhase I - Critical NeedsFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearTotal2022202320242025202620272028202920302031EstimateFY 2022 proposed positions (1 Captain, 0.5 Equip Mechanic, 1 Forensics Spec, 3 P&E Spec, 1 P&E Supv, 3 Sr Records Spec) assume 1/1/22 hire date.Salary projections reflect the most recent MOU agreements and assume 2% annual increase for every year there after.Police Captain salary assumes qualification of 5% longevity payFlex benefit projections assume 10% annual increase.PERS projections based on most recent CalPERS Valuation Report.Workers Comp projections assume 5% annual increase for sworn positions and 3% annual increase for civilian positions.Personnel cost projections assume 2% vacancy savings due to attrition.Reimbursement for Support Staff is based on 3.75% of Measure A Sales Tax revenues..2021/11/09 City Council Post Agenda Page 108 of 470 Intended Public Safety Spending PlanUpdated October 11, 2021Est. One-half cent Sales Tax RevenuesPhase I - Critical NeedsFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearTotal2022202320242025202620272028202920302031EstimateFire Department Spending Plan Est. Beginning Fire Department Funds Available 11,662,623$ 15,175,437$ 18,299,880$ 21,486,019$ 24,031,955$ 26,590,907$ 29,129,034$ 31,625,485$ 34,069,603$ 36,536,229$ Estimated 1/2 cent Sales Tax Revenues 11,388,509$ 13,053,981$ 13,315,061$ 13,581,362$ 13,852,989$ 14,130,049$ 14,412,650$ 14,700,903$ 14,994,921$ 15,294,819$ 143,554,832$ FEMA SAFER Grant Reimbursement306,857$ 143,200$ -$ -$ -$ -$ -$ -$ -$ -$ 756,915$ Estimated Funds Available for Fire Department Spending Plan23,357,988$ 28,372,618$ 31,614,941$ 35,067,381$ 37,884,944$ 40,720,956$ 43,541,684$ 46,326,388$ 49,064,524$ 51,831,048$ 144,311,747$ Proposed ExpendituresDeputy Chief*243,439$ 247,646$ 252,694$ 257,679$ 262,789$ 268,027$ 274,203$ 280,548$ 287,067$ 293,767$ 3,224,176$ Fire Captain590,266 627,763 933,423 1,250,573 1,274,900 1,299,729 1,325,193 1,351,186 1,377,720 1,404,806 11,989,769 Firefighter**5,118,093 5,257,305 6,016,413 6,198,478 6,391,306 6,595,827 6,825,438 7,069,361 7,292,792 7,532,417 68,686,114 Firefighter/Paramedic564,827 575,657 880,054 1,195,940 1,218,925 1,242,370 1,266,283 1,290,675 1,315,554 1,340,932 11,356,949 Equipment Mechanic25,439 52,106 53,369 54,633 55,975 57,360 58,910 60,511 62,165 63,875 544,343 Academy Costs119,608 530,532 - - - - - - - - 650,140 PPE Maintenance131,868 124,080 159,152 167,580 163,328 166,144 168,960 171,776 174,592 177,408 1,738,792 Computers and other equipment/furniture 31,757 32,346 33,438 34,240 34,841 35,441 36,042 36,643 37,243 37,844 380,718 Fire Vehicles, Outfitting, Maint., Fuel, etc.309,742 1,469,151 535,236 537,396 539,556 541,716 543,876 546,036 497,666 499,826 6,315,547 Transfer Out: Pension Obligations620,443 666,627 765,829 829,607 832,932 855,431 876,820 898,766 921,187 931,555 8,199,197 Reimbursement for Support Staff (IT, Fin, HR, City Attorney) 427,069 489,524 499,315 509,301 519,487 529,877 540,474 551,284 562,310 573,556 5,577,572 Total Fire Department Proposed Expenditures8,182,552$ 10,072,737$ 10,128,922$ 11,035,426$ 11,294,037$ 11,591,922$ 11,916,199$ 12,256,784$ 12,528,296$ 12,855,986$ 118,663,317$ Ending Fire Department Available Funds15,175,437$ 18,299,880$ 21,486,019$ 24,031,955$ 26,590,907$ 29,129,034$ 31,625,485$ 34,069,603$ 36,536,229$ 38,975,062$ Combined Police and Fire Fiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearFiscal YearTotal2022202320242025202620272028202920302031Estimate Est. Beginning Available Funds29,500,631$ 33,429,256$ 37,342,083$ 41,049,591$ 43,951,335$ 46,883,664$ 50,285,686$ 53,490,720$ 56,468,461$ 59,272,091$ 21,532,795$ Total Combined Revenues23,466,366$ 26,501,162$ 26,703,038$ 27,162,724$ 27,705,978$ 28,260,098$ 28,825,300$ 29,401,806$ 29,989,842$ 30,589,638$ 298,975,404 Total Combined Expenditures19,537,741$ 22,588,336$ 22,995,531$ 24,260,980$ 24,773,648$ 24,858,077$ 25,620,266$ 26,424,065$ 27,186,211$ 28,015,245$ 261,983,532 Ending Available Funds33,429,256$ 37,342,083$ 41,049,591$ 43,951,335$ 46,883,664$ 50,285,686$ 53,490,720$ 56,468,461$ 59,272,091$ 61,846,485$ 58,524,668$ * 1.0 Deputy Chief Position added in Fiscal Year 2019 will be funded by another funding source in FY 2022, and will result in a decrease of 1.0 FTE.Notes: FTE - Full Time Equivalent Position Actual expenditures per year will vary based on actual activity and revenues.Reimbursement for Support Staff is based on 3.75% of Measure A Sales Tax revenues.Fire Vehicles includes portion of Bayfront Fire Station not paid by new development.FY 2022 Sales Tax Revenue projection from HdL; 2% escalator per year starting in Fiscal year 2024.FY 2022 proposed position (0.5 Equip Mechanic) assumes 1/1/22 hire date.Amounts budgeted in the Intended Public Safety Spending Plan may differ from the City's Annual Budget due to personnel costing estimates in the Annual Budget is based on individual employees projected salaries and benefits, and the Intended Public Safety Spending Plan are estimates that are based on positions. Total Phase I - Critical Needs FundingPhase I - Critical Needs Funding** 3.0 Firefighters in the Measure P Spending Plan added in FY2020 as a result of receiving the FEMA SAFER Grant for Millenia Fire Station, and adding 9.0 Firefighters to expand 4.0 staffing at three Fire Stations.2021/11/09 City Council Post Agenda Page 109 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 1 of 69 Approved and Adopted: Resolution No. 3633 CONF ACCOUNTANT 0 29.70 2,376.11 1 31.19 2,494.92 2 32.75 2,619.66 3 34.38 2,750.65 4 36.10 2,888.18 3641 ACE ACCOUNTING ASSISTANT 0 21.99 1,759.04 1 23.09 1,846.99 2 24.24 1,939.36 3 25.45 2,036.30 4 26.73 2,138.12 3643 CONF ACCOUNTING TECHNICIAN 0 25.53 2,042.72 1 26.81 2,144.85 2 28.15 2,252.09 3 29.56 2,364.70 4 31.04 2,482.93 3675 ACE ACCOUNTING TECHNICIAN 0 25.53 2,042.72 1 26.81 2,144.85 2 28.15 2,252.09 3 29.56 2,364.70 4 31.04 2,482.93 3677 ACE ACCOUNTING TECHNICIAN II 0 27.81 2,225.19 1 29.21 2,336.44 2 30.67 2,453.26 3 32.20 2,575.93 4 33.81 2,704.73 3645 ACE ACCOUNTS PAYABLE SUPERVISOR 0 31.99 2,558.95 1 33.59 2,686.91 2 35.27 2,821.25 3 37.03 2,962.31 4 38.88 3,110.41 0181 ACE ADMINISTRATIVE TECHNICIAN 0 27.17 2,173.77 1 28.53 2,282.47 2 29.96 2,396.58 3 31.46 2,516.41 4 33.03 2,642.24 2021/11/09 City Council Post Agenda Page 110 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 2 of 69 Approved and Adopted: Resolution No. 0149 CONF ADMINISTRATIVE SECRETARY 0 27.17 2,173.77 1 28.53 2,282.47 2 29.96 2,396.58 3 31.46 2,516.41 4 33.03 2,642.24 0179 ACE ADMINISTRATIVE SECRETARY 0 27.17 2,173.77 1 28.53 2,282.47 2 29.96 2,396.58 3 31.46 2,516.41 4 33.03 2,642.24 0180 UCHR ADMINISTRATIVE SECRETARY 0 27.17 -- 1 28.53 -- 2 29.96 -- 3 31.46 -- 4 33.03 -- 0154 CONF ADMINISTRATIVE SECRETARY-MAYOR 0 27.17 2,173.77 1 28.53 2,282.47 2 29.96 2,396.58 3 31.46 2,516.41 4 33.03 2,642.24 0215 SM ADMINISTRATIVE SERVICES MGR 0 48.27 3,861.56 1 -- -- 2 -- -- 3 -- -- 4 58.67 4,693.75 5316 UCHR ANIMAL CARE AIDE 0 -- -- 1 -- -- 2 14.61 -- 3 15.34 -- 4 16.10 -- 5343 ACE ANIMAL CARE SPECIALIST 0 19.72 1,577.27 1 20.70 1,656.13 2 21.74 1,738.93 3 22.82 1,825.89 4 23.96 1,917.18 2021/11/09 City Council Post Agenda Page 111 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 3 of 69 Approved and Adopted: Resolution No. 5344 UCHR ANIMAL CARE SPECIALIST 0 19.72 -- 1 20.70 -- 2 21.74 -- 3 22.82 -- 4 23.96 -- 5319 ACE ANIMAL CARE SUPERVISOR 0 27.38 2,190.21 1 28.75 2,299.72 2 30.18 2,414.71 3 31.69 2,535.45 4 33.28 2,662.21 5303 ACE ANIMAL CONTROL OFFICER 0 23.66 1,892.71 1 24.84 1,987.34 2 26.08 2,086.72 3 27.39 2,191.06 4 28.76 2,300.62 5305 UCHR ANIMAL CONTROL OFFICER 0 23.66 -- 1 24.84 -- 2 26.08 -- 3 27.39 -- 4 28.76 -- 5304 ACE ANIMAL CONTROL OFFICER SUPVR 0 27.21 2,176.63 1 28.57 2,285.45 2 30.00 2,399.72 3 31.50 2,519.71 4 33.07 2,645.71 5309 ACE ANIMAL SERVICES SPECIALIST 0 21.51 1,720.66 1 22.58 1,806.69 2 23.71 1,897.02 3 24.90 1,991.88 4 26.14 2,091.46 3083 MM APPLICATIONS SUPPORT MANAGER 0 44.33 3,546.37 1 46.55 3,723.68 2 48.87 3,909.87 3 51.32 4,105.37 4 53.88 4,310.63 2021/11/09 City Council Post Agenda Page 112 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 4 of 69 Approved and Adopted: Resolution No. 3088 PROF APPLICATIONS SUPPORT SPEC 0 38.62 3,089.39 1 40.55 3,243.86 2 42.58 3,406.05 3 44.70 3,576.35 4 46.94 3,755.17 7741 ACE AQUARIST 0 24.49 1,959.25 1 25.71 2,057.18 2 27.00 2,160.04 3 28.35 2,268.06 4 29.77 2,381.46 7579 ACE AQUATIC SUPERVISOR I 0 25.38 2,030.17 1 26.65 2,131.67 2 27.98 2,238.26 3 29.38 2,350.17 4 30.85 2,467.68 7577 ACE AQUATIC SUPERVISOR II 0 27.91 2,233.18 1 29.31 2,344.84 2 30.78 2,462.08 3 32.31 2,585.19 4 33.93 2,714.45 7575 ACE AQUATIC SUPERVISOR III 0 32.10 2,568.16 1 33.71 2,696.57 2 35.39 2,831.40 3 37.16 2,972.96 4 39.02 3,121.61 5011 SM ASSISTANT CHIEF OF POLICE 0 68.40 5,472.03 1 -- -- 2 -- -- 3 -- -- 4 83.14 6,651.29 2405 SM ASSISTANT CITY ATTORNEY 0 74.49 5,959.37 1 78.22 6,257.36 2 82.13 6,570.22 3 86.19 6,895.07 4 90.55 7,243.66 2021/11/09 City Council Post Agenda Page 113 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 5 of 69 Approved and Adopted: Resolution No. 2210 SM ASSISTANT CITY CLERK 0 43.24 3,458.90 1 45.40 3,631.86 2 47.67 3,813.45 3 50.05 4,004.10 4 52.56 4,204.42 2707 EXEC ASSISTANT CITY MANAGER 0 96.38 7,710.38 1 -- -- 2 -- -- 3 -- -- 4 116.42 9,313.75 4040 SM ASSISTANT DIR OF DEVLPMNT SVCS 0 74.61 5,968.72 1 -- -- 2 82.65 6,611.87 3 86.78 6,942.47 4 90.69 7,255.03 6008 SM ASSISTANT DIR OF ENGINEERING 0 66.94 5,355.14 1 -- -- 2 -- -- 3 -- -- 4 80.82 6,465.21 3604 SM ASSISTANT DIR OF FINANCE 0 72.72 5,817.36 1 -- -- 2 -- -- 3 -- -- 4 87.79 7,023.26 3304 SM ASSISTANT DIR OF HR 0 63.62 5,089.32 1 -- -- 2 -- -- 3 -- -- 4 76.34 6,107.18 6322 SM ASSISTANT DIR OF PUBLIC WORKS 0 68.28 5,462.24 1 -- -- 2 -- -- 3 80.61 6,448.52 4 82.43 6,594.51 2021/11/09 City Council Post Agenda Page 114 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 6 of 69 Approved and Adopted: Resolution No. 6015 WCE ASSISTANT ENGINEER 0 36.55 2,924.00 1 38.38 3,070.20 2 40.30 3,223.72 3 42.31 3,384.90 4 44.43 3,554.14 6289 WCE ASSISTANT LAND SURVEYOR 0 36.55 2,924.00 1 38.38 3,070.20 2 40.30 3,223.72 3 42.31 3,384.90 4 44.43 3,554.14 4749 WCE ASSISTANT PLAN CHECK ENGINEER 0 36.55 2,924.00 1 38.38 3,070.20 2 40.30 3,223.72 3 42.31 3,384.90 4 44.43 3,554.14 4439 ACE ASSISTANT PLANNER 0 32.66 2,612.90 1 34.29 2,743.55 2 36.01 2,880.73 3 37.81 3,024.76 4 39.70 3,176.00 3635 CONF ASSOCIATE ACCOUNTANT 0 32.67 2,613.72 1 34.31 2,744.41 2 36.02 2,881.63 3 37.82 3,025.71 4 39.71 3,177.00 6017 WCE ASSOCIATE ENGINEER 0 42.03 3,362.59 1 44.13 3,530.72 2 46.34 3,707.27 3 48.66 3,892.63 4 51.09 4,087.25 6287 WCE ASSOCIATE LAND SURVEYOR 0 42.03 3,362.59 1 44.13 3,530.72 2 46.34 3,707.27 3 48.66 3,892.63 4 51.09 4,087.25 2021/11/09 City Council Post Agenda Page 115 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 7 of 69 Approved and Adopted: Resolution No. 4747 WCE ASSOCIATE PLAN CHECK ENGINEER 0 42.03 3,362.59 1 44.13 3,530.72 2 46.34 3,707.27 3 48.66 3,892.63 4 51.09 4,087.25 4437 ACE ASSOCIATE PLANNER 0 35.93 2,874.19 1 37.72 3,017.90 2 39.61 3,168.80 3 41.59 3,327.24 4 43.67 3,493.60 5123 ACE AUTOMATED FINGERPRINT TECH 0 21.81 1,744.93 1 22.90 1,832.18 2 24.05 1,923.79 3 25.25 2,019.98 4 26.51 2,120.98 3404 MMCF BENEFITS MANAGER 0 48.98 3,918.28 1 51.43 4,114.21 2 54.00 4,319.92 3 56.70 4,535.91 4 59.53 4,762.70 3406 UCHR BENEFITS MANAGER 0 48.98 -- 1 51.43 -- 2 54.00 -- 3 56.70 -- 4 59.53 -- 2222 SM BUDGET AND ANALYSIS MANAGER 0 56.00 4,479.84 1 58.80 4,703.83 2 62.16 4,972.62 3 65.27 5,221.26 4 68.07 5,445.27 4769 MM BUILDING INSPECTION MANAGER 0 44.31 3,544.56 1 46.52 3,721.79 2 48.85 3,907.88 3 51.29 4,103.28 4 53.86 4,308.44 2021/11/09 City Council Post Agenda Page 116 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 8 of 69 Approved and Adopted: Resolution No. 4771 ACE BUILDING INSPECTOR I 0 31.38 2,510.12 1 32.95 2,635.63 2 34.59 2,767.41 3 36.32 2,905.78 4 38.14 3,051.07 4773 ACE BUILDING INSPECTOR II 0 34.51 2,761.14 1 36.24 2,899.20 2 38.05 3,044.15 3 39.95 3,196.38 4 41.95 3,356.19 4775 ACE BUILDING INSPECTOR III 0 37.97 3,037.25 1 39.86 3,189.12 2 41.86 3,348.58 3 43.95 3,516.00 4 46.15 3,691.80 4780 SM BUILDING OFFICIAL/CODE ENF MGR 0 67.74 5,418.86 1 -- -- 2 -- -- 3 -- -- 4 82.33 6,586.68 6412 PROF BUILDING PROJECT MANAGER 0 43.11 3,448.57 1 45.26 3,620.99 2 47.53 3,802.04 3 49.90 3,992.15 4 52.40 4,191.75 6402 MM BUILDING SERVICES MANAGER 0 51.78 4,142.50 1 54.37 4,349.62 2 57.09 4,567.10 3 59.94 4,795.46 4 62.94 5,035.23 6669 ACE BUILDING SERVICES SUPERVISOR 0 30.34 2,426.91 1 31.85 2,548.25 2 33.45 2,675.67 3 35.12 2,809.45 4 36.87 2,949.93 2021/11/09 City Council Post Agenda Page 117 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 9 of 69 Approved and Adopted: Resolution No. 4505 ACE BUSINESS LICENSE REPRESENTATIV 0 21.99 1,759.04 1 23.09 1,846.99 2 24.24 1,939.36 3 25.45 2,036.30 4 26.73 2,138.12 6444 ACE CARPENTER 0 27.38 2,190.39 1 28.75 2,299.90 2 30.19 2,414.90 3 31.70 2,535.65 4 33.28 2,662.44 3669 ACE CASHIER 0 18.56 1,484.90 1 19.49 1,559.15 2 20.46 1,637.11 3 21.49 1,718.96 4 22.56 1,804.91 3053 SM CHIEF INFO SEC OFFICER 0 55.48 4,438.00 1 -- -- 2 -- -- 3 -- -- 4 67.43 5,394.42 5001 EXEC CHIEF OF POLICE 0 93.84 7,507.33 1 -- -- 2 108.48 8,678.44 3 -- -- 4 114.07 9,125.24 2011 MMUC CHIEF OF STAFF 0 37.48 2,998.65 1 39.36 3,148.59 2 41.33 3,306.00 3 43.39 3,471.30 4 45.56 3,644.88 2729 SM CHIEF SUSTAINABILITY OFFICER 0 64.50 5,159.75 1 -- -- 2 -- -- 3 76.14 6,091.40 4 77.87 6,229.32 2021/11/09 City Council Post Agenda Page 118 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 10 of 69 Approved and Adopted: Resolution No. 2400 CATY CITY ATTORNEY (ELECTED) 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 107.61 8,608.81 2435 CONF CITY ATTY INVESTIGATOR 0 32.33 2,586.46 1 33.95 2,715.78 2 35.64 2,851.57 3 37.43 2,994.15 4 39.30 3,143.86 2201 CCLK CITY CLERK 0 77.36 6,189.09 1 -- -- 2 -- -- 3 -- -- 4 93.99 7,519.24 2221 PROF CITY CLERK ANALYST 0 37.67 3,013.37 1 39.55 3,164.04 2 41.53 3,322.24 3 43.60 3,488.35 4 45.78 3,662.77 2224 UCHR CITY CLERK ANALYST (HOURLY) 0 37.67 -- 1 39.55 -- 2 41.53 -- 3 43.60 -- 4 45.78 -- 6010 SM CITY ENGINEER 0 63.68 5,094.69 1 -- -- 2 -- -- 3 -- -- 4 77.41 6,192.61 7007 SM CITY LIBRARIAN 0 59.85 4,788.20 1 62.85 5,027.60 2 65.99 5,278.99 3 69.29 5,542.93 4 72.75 5,820.08 2021/11/09 City Council Post Agenda Page 119 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 11 of 69 Approved and Adopted: Resolution No. 2710 CMGR CITY MANAGER 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 139.76 11,180.77 5429 ACE CIVILIAN BCKGRND INVESTIGATOR 0 27.49 2,199.23 1 28.86 2,309.19 2 30.31 2,424.65 3 31.82 2,545.89 4 33.41 2,673.18 5430 UCHR CIVILIAN BCKGRND INVESTIGATOR 0 27.49 -- 1 28.86 -- 2 30.31 -- 3 31.82 -- 4 33.41 -- 5431 UCHR CIVILIAN POLICE INVESTIGATOR 0 25.79 -- 1 27.08 -- 2 28.43 -- 3 29.85 -- 4 31.35 -- 0241 UCHR CLERICAL AIDE 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 14.00 -- 4777 ACE CODE ENFORCEMENT OFFICER I 0 27.25 2,180.31 1 28.62 2,289.34 2 30.05 2,403.79 3 31.55 2,523.99 4 33.13 2,650.19 4778 UCHR CODE ENFORCEMENT OFFICER II 0 29.98 -- 1 31.48 -- 2 33.05 -- 3 34.70 -- 4 36.44 -- 2021/11/09 City Council Post Agenda Page 120 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 12 of 69 Approved and Adopted: Resolution No. 4779 ACE CODE ENFORCEMENT OFFICER II 0 29.98 2,398.34 1 31.48 2,518.27 2 33.05 2,644.19 3 34.70 2,776.39 4 36.44 2,915.22 4789 ACE CODE ENFORCEMENT TECHNICIAN 0 23.70 1,895.92 1 24.88 1,990.73 2 26.13 2,090.26 3 27.43 2,194.78 4 28.81 2,304.51 3683 MM COLLECTIONS SUPERVISOR 0 36.78 2,942.72 1 38.62 3,089.86 2 40.55 3,244.34 3 42.58 3,406.57 4 44.71 3,576.90 5141 ACE COMMUNITY SERVICES OFFICER 0 22.91 1,832.70 1 24.05 1,924.33 2 25.26 2,020.55 3 26.52 2,121.57 4 27.85 2,227.65 5142 UCHR COMMUNITY SERVICES OFFICER 0 22.91 -- 1 24.05 -- 2 25.26 -- 3 26.52 -- 4 27.85 -- 6200 ACE CONSERVATION SPECIALIST I 0 24.78 1,982.10 1 26.02 2,081.22 2 27.32 2,185.29 3 28.68 2,294.53 4 30.12 2,409.26 6202 ACE CONSERVATION SPECIALIST II 0 27.25 2,180.31 1 28.62 2,289.34 2 30.05 2,403.79 3 31.55 2,523.99 4 33.13 2,650.19 2021/11/09 City Council Post Agenda Page 121 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 13 of 69 Approved and Adopted: Resolution No. 6427 ACE CONSTRUCTION & REPAIR SUPV 0 38.02 3,041.63 1 39.92 3,193.73 2 41.92 3,353.41 3 44.01 3,521.08 4 46.21 3,697.13 2023 UCHR COUNCIL ASSISTANT 0 22.91 -- 1 24.06 -- 2 25.26 -- 3 26.52 -- 4 27.85 -- 2003 CL COUNCILPERSON 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 28.41 2,272.73 5757 UCHR COVID SITE ASST 0 14.00 -- 1 14.70 -- 2 15.44 -- 3 16.21 -- 4 17.02 -- 5101 MM CRIME LABORATORY MANAGER 0 47.63 3,810.62 1 50.01 4,001.15 2 52.52 4,201.21 3 55.14 4,411.27 4 57.90 4,631.83 6667 ACE CUSTODIAL SUPERVISOR 0 25.16 2,012.40 1 26.41 2,113.03 2 27.73 2,218.69 3 29.12 2,329.62 4 30.58 2,446.11 6661 ACE CUSTODIAN 0 19.89 1,590.82 1 20.88 1,670.36 2 21.92 1,753.88 3 23.02 1,841.59 4 24.17 1,933.66 2021/11/09 City Council Post Agenda Page 122 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 14 of 69 Approved and Adopted: Resolution No. 6662 UCHR CUSTODIAN 0 19.89 -- 1 20.88 -- 2 21.92 -- 3 23.02 -- 4 24.17 -- 7191 ACE DELIVERY DRIVER 0 18.86 1,509.10 1 19.81 1,584.56 2 20.80 1,663.79 3 21.84 1,746.98 4 22.93 1,834.33 2410 PRUC DEPUTY CITY ATTORNEY I 0 44.96 3,596.82 1 47.21 3,776.65 2 49.57 3,965.48 3 52.05 4,163.76 4 54.65 4,371.94 2408 PRUC DEPUTY CITY ATTORNEY II 0 53.95 4,316.16 1 56.65 4,531.97 2 59.48 4,758.58 3 62.46 4,996.50 4 65.58 5,246.32 2411 SM DEPUTY CITY ATTORNEY III 0 67.06 5,364.53 1 70.41 5,632.77 2 73.93 5,914.40 3 77.63 6,210.12 4 81.51 6,520.59 2245 PRUC DEPUTY CITY CLERK I 0 27.80 2,224.17 1 29.19 2,335.37 2 30.65 2,452.15 3 32.18 2,574.77 4 33.79 2,703.49 2243 PRUC DEPUTY CITY CLERK II 0 30.58 2,446.59 1 32.11 2,568.92 2 33.72 2,697.37 3 35.40 2,832.24 4 37.17 2,973.85 2021/11/09 City Council Post Agenda Page 123 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 15 of 69 Approved and Adopted: Resolution No. 2705 EXEC DEPUTY CITY MANAGER 0 100.50 8,040.17 1 -- -- 2 -- -- 3 -- -- 4 111.32 8,905.33 5505 SM DEPUTY FIRE CHIEF 0 71.40 5,712.26 1 -- -- 2 -- -- 3 -- -- 4 86.79 6,943.31 5130 MM DETENTION FACILITY MANAGER 0 47.63 3,810.62 1 50.01 4,001.15 2 52.52 4,201.21 3 55.14 4,411.27 4 57.90 4,631.83 5137 ACE DETENTIONS OFFICER 0 27.49 2,199.23 1 28.86 2,309.19 2 30.31 2,424.65 3 31.82 2,545.89 4 33.41 2,673.18 5135 ACE DETENTIONS SUPERVISOR 0 31.61 2,529.12 1 33.19 2,655.57 2 34.85 2,788.35 3 36.60 2,927.77 4 38.43 3,074.16 4718 PROF DEVELOPMENT AUTOMATION SPEC 0 38.08 3,046.34 1 39.98 3,198.66 2 41.98 3,358.59 3 44.08 3,526.52 4 46.29 3,702.85 4547 MM DEVELOPMENT SERVICES COUNTER M 0 45.95 3,675.95 1 48.25 3,859.74 2 50.66 4,052.74 3 53.19 4,255.37 4 55.85 4,468.14 2021/11/09 City Council Post Agenda Page 124 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 16 of 69 Approved and Adopted: Resolution No. 4540 UCHR DEVELOPMENT SERVICES TECH I 0 23.41 -- 1 24.58 -- 2 25.81 -- 3 27.10 -- 4 28.45 -- 4542 ACE DEVELOPMENT SERVICES TECH I 0 23.41 1,872.77 1 24.58 1,966.40 2 25.81 2,064.72 3 27.10 2,167.96 4 28.45 2,276.36 4541 ACE DEVELOPMENT SERVICES TECH II 0 25.75 2,060.04 1 27.04 2,163.04 2 28.39 2,271.20 3 29.81 2,384.76 4 31.30 2,503.99 4544 UCHR DEVELOPMENT SERVICES TECH II 0 25.75 -- 1 27.04 -- 2 28.39 -- 3 29.81 -- 4 31.30 -- 4543 ACE DEVELOPMENT SERVICES TECH III 0 29.61 2,369.05 1 31.09 2,487.50 2 32.65 2,611.88 3 34.28 2,742.47 4 35.99 2,879.59 5245 ACE DGTL FOR TECH I 0 25.47 2,037.22 1 26.74 2,139.08 2 28.08 2,246.04 3 29.48 2,358.34 4 30.95 2,476.25 5243 ACE DGTL FOR TECH II 0 29.29 2,342.81 1 30.75 2,459.95 2 32.29 2,582.94 3 33.90 2,712.09 4 35.60 2,847.69 2021/11/09 City Council Post Agenda Page 125 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 17 of 69 Approved and Adopted: Resolution No. 5351 UCHR DIR OF ANIMAL SERVICES (HRLY) 0 64.50 -- 1 70.00 -- 2 -- -- 3 -- -- 4 78.40 -- 2734 EXEC DIR OF ECONOMIC DEVELOPMENT 0 83.24 6,659.46 1 -- -- 2 -- -- 3 -- -- 4 101.18 8,094.61 4039 EXEC DIR. OF DEVELOPMENT SERVICES 0 83.23 6,658.57 1 -- -- 2 -- -- 3 -- -- 4 101.18 8,094.61 6006 EXEC DIR. OF ENGINEERING/CITY ENG 0 83.24 6,659.46 1 -- -- 2 -- -- 3 -- -- 4 101.18 8,094.61 5350 EXEC DIRECTOR OF ANIMAL SERVICES 0 64.50 5,159.77 1 -- -- 2 -- -- 3 -- -- 4 78.40 6,271.73 7004 EXEC DIRECTOR OF COMMUNITY SERVICES 0 78.41 6,272.52 1 82.33 6,586.14 2 86.44 6,915.45 3 90.77 7,261.22 4 95.31 7,624.56 3600 UCHR DIRECTOR OF FINANCE 0 83.83 -- 1 -- -- 2 93.93 -- 3 -- -- 4 101.17 -- 2021/11/09 City Council Post Agenda Page 126 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 18 of 69 Approved and Adopted: Resolution No. 3601 EXEC DIRECTOR OF FINANCE 0 83.24 6,659.46 1 -- -- 2 -- -- 3 98.56 7,884.62 4 101.18 8,094.61 3300 EXEC DIRECTOR OF HUMAN RESOURCES/RM 0 83.24 6,659.46 1 -- -- 2 -- -- 3 -- -- 4 101.18 8,094.61 3001 EXEC DIRECTOR OF INFO TECH SERVICES 0 78.41 6,272.52 1 -- -- 2 86.44 6,915.45 3 -- -- 4 95.31 7,624.56 6320 EXEC DIRECTOR OF PUBLIC WORKS 0 83.24 6,659.46 1 -- -- 2 -- -- 3 93.93 7,514.05 4 101.18 8,094.61 2747 ACE ECONOMIC DEVELOPMENT SPEC I 0 29.94 2,395.16 1 31.44 2,514.92 2 33.01 2,640.67 3 34.66 2,772.70 4 36.39 2,911.33 2749 ACE ECONOMIC DEVELOPMENT SPEC II 0 35.93 2,874.19 1 37.72 3,017.90 2 39.61 3,168.80 3 41.59 3,327.24 4 43.67 3,493.60 6438 ACE ELECTRICIAN 0 29.31 2,344.50 1 30.77 2,461.73 2 32.31 2,584.81 3 33.93 2,714.05 4 35.62 2,849.76 2021/11/09 City Council Post Agenda Page 127 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 19 of 69 Approved and Adopted: Resolution No. 6492 ACE ELECTRONIC/EQUIPMENT INSTALLER 0 26.64 2,131.37 1 27.97 2,237.93 2 29.37 2,349.83 3 30.84 2,467.32 4 32.38 2,590.69 6475 ACE ELECTRONICS TECHNICIAN 0 32.24 2,578.95 1 33.85 2,707.90 2 35.54 2,843.30 3 37.32 2,985.46 4 39.18 3,134.73 6472 ACE ELECTRONICS TECHNICIAN SUPV 0 37.07 2,965.80 1 38.93 3,114.09 2 40.87 3,269.79 3 42.92 3,433.28 4 45.06 3,604.94 5560 SM EMERGENCY SERVICES MGR 0 48.27 3,861.57 1 -- -- 2 -- -- 3 -- -- 4 58.67 4,693.75 5557 PROF EMS EDUCATOR 0 41.84 3,347.11 1 43.93 3,514.46 2 46.13 3,690.19 3 48.43 3,874.70 4 50.86 4,068.43 5559 ACE EMS INVENTORY SPECIALIST 0 26.88 2,150.63 1 28.23 2,258.16 2 29.64 2,371.06 3 31.12 2,489.60 4 32.68 2,614.10 5567 PROF EMS NURSE COORDINATOR 0 50.21 4,016.53 1 52.72 4,217.34 2 55.35 4,428.22 3 58.12 4,649.63 4 61.03 4,882.11 2021/11/09 City Council Post Agenda Page 128 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 20 of 69 Approved and Adopted: Resolution No. 5657 NIAF EMT (NON-SAFETY) 0 14.00 1 14.70 2 15.44 3 16.21 4 17.02 5658 UCHR EMT (NON-SAFETY) 0 14.00 -- 1 14.70 -- 2 15.44 -- 3 16.21 -- 4 17.02 -- 6081 ACE ENGINEERING TECHNICIAN I 0 27.28 2,182.72 1 28.65 2,291.85 2 30.08 2,406.44 3 31.58 2,526.77 4 33.16 2,653.12 6071 ACE ENGINEERING TECHNICIAN II 0 30.01 2,400.99 1 31.51 2,521.04 2 33.09 2,647.09 3 34.74 2,779.44 4 36.48 2,918.42 6129 ACE ENVIRONMENTAL HEALTH SPEC 0 36.08 2,886.67 1 37.89 3,031.00 2 39.78 3,182.55 3 41.77 3,341.66 4 43.86 3,508.76 6205 MM ENVIRONMENTAL SERVICES MANAGER 0 49.90 3,992.38 1 52.40 4,192.00 2 55.02 4,401.60 3 57.77 4,621.68 4 60.66 4,852.76 6207 MM ENVIRONMENTAL SUSTNBILITY MGR 0 49.90 3,992.38 1 52.40 4,192.00 2 55.02 4,401.60 3 57.77 4,621.68 4 60.66 4,852.76 2021/11/09 City Council Post Agenda Page 129 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 21 of 69 Approved and Adopted: Resolution No. 6505 MM EQUIPMENT MAINTENANCE MANAGER 0 39.31 3,145.11 1 41.28 3,302.36 2 43.34 3,467.49 3 45.51 3,640.86 4 47.79 3,822.90 6542 ACE EQUIPMENT MECHANIC 0 28.19 2,255.47 1 29.60 2,368.25 2 31.08 2,486.66 3 32.64 2,610.99 4 34.27 2,741.54 6544 UCHR EQUIPMENT MECHANIC 0 28.19 -- 1 29.60 -- 2 31.08 -- 3 32.64 -- 4 34.27 -- 6361 ACE EQUIPMENT OPERATOR 0 28.87 2,309.89 1 30.32 2,425.38 2 31.83 2,546.65 3 33.42 2,673.98 4 35.10 2,807.68 0187 CONF EXECUTIVE SECRETARY 0 32.88 2,630.28 1 34.52 2,761.79 2 36.25 2,899.87 3 38.06 3,044.87 4 39.96 3,197.11 5270 CONF FA ACCOUNTING TECHNICIAN 0 27.81 2,225.19 1 29.21 2,336.44 2 30.67 2,453.26 3 32.20 2,575.93 4 33.81 2,704.73 5297 CONF FA ADMINSTRATIVE ANALYST I 0 30.55 2,444.05 1 32.08 2,566.27 2 33.68 2,694.56 3 35.37 2,829.29 4 37.13 2,970.75 2021/11/09 City Council Post Agenda Page 130 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 22 of 69 Approved and Adopted: Resolution No. 5296 CONF FA ADMINSTRATIVE ANALYST II 0 33.61 2,688.45 1 35.29 2,822.87 2 37.05 2,964.02 3 38.90 3,112.24 4 40.85 3,267.83 5277 CONF FA ANALYST 0 23.35 1,867.66 1 24.51 1,961.04 2 25.74 2,059.10 3 27.03 2,162.05 4 28.38 2,270.16 5455 MMUC FA CYBER SECURITY PROG MGR 0 45.19 3,614.84 1 47.44 3,795.57 2 49.82 3,985.35 3 52.31 4,184.62 4 54.92 4,393.85 5465 SM FA DEPUTY DIRECTOR OF LECC 0 49.78 3,982.35 1 52.27 4,181.47 2 54.88 4,390.54 3 57.63 4,610.06 4 60.51 4,840.58 5463 SM FA DEPUTY EXECUTIVE DIRECTOR 0 54.63 4,370.13 1 -- -- 2 -- -- 3 -- -- 4 66.40 5,311.92 5274 SM FA DIRECTOR OF SD LECC 0 64.26 5,140.50 1 -- -- 2 -- -- 3 -- -- 4 78.10 6,248.31 5286 CONF FA EXECUTIVE ASSISTANT 0 29.91 2,392.81 1 31.41 2,512.46 2 32.98 2,638.09 3 34.62 2,769.98 4 36.36 2,908.49 2021/11/09 City Council Post Agenda Page 131 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 23 of 69 Approved and Adopted: Resolution No. 5461 EXEC FA EXECUTIVE DIRECTOR 0 60.19 4,815.34 1 -- -- 2 -- -- 3 -- -- 4 73.16 5,853.08 5493 MMUC FA FINANCE MANAGER 0 49.65 3,971.63 1 52.13 4,170.20 2 54.73 4,378.71 3 57.47 4,597.64 4 60.34 4,827.53 5439 PRUC FA GEOSPATIAL INTEL ANALYST 0 43.09 3,447.05 1 45.24 3,619.41 2 47.50 3,800.39 3 49.88 3,990.40 4 52.37 4,189.92 5289 CONF FA GRAPHIC DESIGNER/WEBMASTER 0 34.76 2,780.99 1 36.50 2,920.05 2 38.33 3,066.06 3 40.24 3,219.35 4 42.25 3,380.33 5453 MMUC FA INFO SYSTEMS PROGRAM MGR 0 50.26 4,021.01 1 52.78 4,222.06 2 55.41 4,433.15 3 58.19 4,654.81 4 61.09 4,887.56 5485 CONF FA INTEL ANLYT 0 31.60 2,528.18 1 33.18 2,654.59 2 34.84 2,787.32 3 36.58 2,926.68 4 38.41 3,073.03 5491 SM FA IVDC-LECC EXEC DIRECTOR 0 54.14 4,331.09 1 56.85 4,547.63 2 59.69 4,775.01 3 62.67 5,013.75 4 65.81 5,264.44 2021/11/09 City Council Post Agenda Page 132 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 24 of 69 Approved and Adopted: Resolution No. 5440 MMUC FA LECC INFO TECH MANAGER 0 45.96 3,676.86 1 48.26 3,860.70 2 50.67 4,053.74 3 53.21 4,256.42 4 55.87 4,469.24 5278 CONF FA MANAGEMENT ASSISTANT 0 28.49 2,278.88 1 29.91 2,392.81 2 31.41 2,512.47 3 32.98 2,638.10 4 34.62 2,769.99 5443 PRUC FA MICROCOMPUTER SPECIALIST 0 37.37 2,989.52 1 39.24 3,138.99 2 41.20 3,295.94 3 43.26 3,460.74 4 45.42 3,633.77 5292 PRUC FA NETWORK ADMINISTRATOR I 0 37.61 3,008.60 1 39.49 3,159.03 2 41.46 3,316.98 3 43.54 3,482.83 4 45.71 3,656.98 5294 PRUC FA NETWORK ADMINISTRATOR II 0 41.37 3,309.47 1 43.44 3,474.95 2 45.61 3,648.69 3 47.89 3,831.13 4 50.28 4,022.69 5457 PRUC FA NETWORK ADMINISTRATOR III 0 43.57 3,485.73 1 45.75 3,660.02 2 48.04 3,843.01 3 50.44 4,035.17 4 52.96 4,236.93 5444 PRUC FA PROGRAM ANALYST 0 44.58 3,566.58 1 46.81 3,744.91 2 49.15 3,932.16 3 51.61 4,128.77 4 54.19 4,335.21 2021/11/09 City Council Post Agenda Page 133 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 25 of 69 Approved and Adopted: Resolution No. 5451 CONF FA PROGRAM ASSISTANT 0 22.76 1,820.40 1 23.89 1,911.41 2 25.09 2,007.00 3 26.34 2,107.35 4 27.66 2,212.71 5452 PRUC FA PROGRAM ASSISTANT SUPV 0 32.43 2,594.00 1 34.05 2,723.70 2 35.75 2,859.88 3 37.54 3,002.88 4 39.41 3,153.01 5445 SM FA PROGRAM MANAGER 0 49.78 3,982.35 1 52.34 4,186.90 2 54.88 4,390.54 3 57.63 4,610.06 4 60.51 4,840.58 5497 MMUC FA PUBLIC-PRVT PART EXER MGR 0 46.74 3,739.50 1 49.08 3,926.47 2 51.53 4,122.79 3 54.11 4,328.94 4 56.82 4,545.39 5284 CONF FA RCFL NETWORK ENGINEER 0 36.67 2,933.88 1 38.51 3,080.57 2 40.43 3,234.61 3 42.45 3,396.33 4 44.58 3,566.15 5495 PRUC FA SENIOR FINANCIAL ANALYST 0 34.94 2,794.93 1 36.68 2,934.67 2 38.52 3,081.42 3 40.44 3,235.48 4 42.47 3,397.26 5483 PRUC FA SENIOR INTELLIGENCE ANALYST 0 36.79 2,943.35 1 38.63 3,090.52 2 40.56 3,245.05 3 42.59 3,407.30 4 44.72 3,577.66 2021/11/09 City Council Post Agenda Page 134 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 26 of 69 Approved and Adopted: Resolution No. 5454 CONF FA SENIOR PROGRAM ASSISTANT 0 27.07 2,165.81 1 28.43 2,274.10 2 29.85 2,387.81 3 31.34 2,507.21 4 32.91 2,632.57 5477 CONF FA SENIOR SECRETARY 0 23.41 1,872.67 1 24.58 1,966.30 2 25.81 2,064.61 3 27.10 2,167.85 4 28.45 2,276.24 5481 PRUC FA SUPERVISORY INTEL ANALYST 0 40.47 3,237.69 1 42.49 3,399.57 2 44.62 3,569.55 3 46.85 3,748.03 4 49.19 3,935.43 4051 SM FAC FINANCE MANAGER 0 48.27 3,861.56 1 -- -- 2 -- -- 3 -- -- 4 58.67 4,693.75 6425 MM FACILITIES MANAGER 0 44.78 3,582.24 1 47.02 3,761.35 2 49.37 3,949.42 3 51.84 4,146.89 4 54.43 4,354.24 7471 ACE FIELD MAINTENANCE SPECIALIST 0 22.02 1,761.60 1 23.12 1,849.68 2 24.28 1,942.16 3 25.49 2,039.27 4 26.77 2,141.24 3623 SM FINANCE MGR 0 54.92 4,393.69 1 -- -- 2 -- -- 3 -- -- 4 66.76 5,340.56 2021/11/09 City Council Post Agenda Page 135 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 27 of 69 Approved and Adopted: Resolution No. 3624 SM FINANCE MGR (CPA) 0 60.41 4,833.06 1 -- -- 2 -- -- 3 -- -- 4 73.43 5,874.62 6521 ACE FIRE APPARATUS MECHANIC 0 33.72 2,697.55 1 35.41 2,832.42 2 37.18 2,974.05 3 39.03 3,122.75 4 40.99 3,278.89 5511 IAFF FIRE BATTALION CHIEF - A 0 37.76 4,229.36 1 39.65 4,440.83 2 41.63 4,662.87 3 43.71 4,896.01 4 45.90 5,140.81 5513 IAFF FIRE BATTALION CHIEF - C 0 52.87 4,229.36 1 55.51 4,440.83 2 58.29 4,662.87 3 61.20 4,896.01 4 64.26 5,140.81 5583 IAFF FIRE CAPTAIN - A 0 30.31 3,394.98 1 31.83 3,564.72 2 33.42 3,742.96 3 35.09 3,930.11 4 36.84 4,126.61 5582 IAFF FIRE CAPTAIN - B 0 40.42 3,394.98 1 42.44 3,564.72 2 44.56 3,742.96 3 46.79 3,930.11 4 49.13 4,126.61 5581 IAFF FIRE CAPTAIN - C 0 42.44 3,394.98 1 44.56 3,564.72 2 46.79 3,742.96 3 49.13 3,930.11 4 51.58 4,126.61 2021/11/09 City Council Post Agenda Page 136 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 28 of 69 Approved and Adopted: Resolution No. 5501 EXEC FIRE CHIEF 0 85.68 6,854.73 1 -- -- 2 101.56 8,125.15 3 -- -- 4 104.14 8,331.59 5507 MMUC FIRE DIVISION CHIEF 0 65.45 5,235.91 1 68.72 5,497.70 2 72.16 5,772.59 3 75.77 6,061.21 4 79.55 6,364.27 5603 IAFF FIRE ENGINEER - A 0 25.84 2,894.63 1 27.14 3,039.36 2 28.49 3,191.33 3 29.92 3,350.89 4 31.41 3,518.44 5601 IAFF FIRE ENGINEER - C 0 36.18 2,894.63 1 37.99 3,039.36 2 39.89 3,191.33 3 41.89 3,350.89 4 43.98 3,518.44 5530 IAFF FIRE INSPECTOR/INVESTIGATOR I 0 30.60 2,448.07 1 32.13 2,570.47 2 33.74 2,699.00 3 35.42 2,833.95 4 37.20 2,975.65 5534 UCHR FIRE INSPECTOR/INVESTIGATOR I 0 30.60 -- 1 32.13 -- 2 33.74 -- 3 35.42 -- 4 37.20 -- 5531 IAFF FIRE INSPECTOR/INVESTIGATOR II 0 33.66 2,692.87 1 35.34 2,827.51 2 37.11 2,968.89 3 38.97 3,117.33 4 40.92 3,273.20 2021/11/09 City Council Post Agenda Page 137 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 29 of 69 Approved and Adopted: Resolution No. 5532 UCHR FIRE INSPECTOR/INVESTIGATOR II 0 33.66 -- 1 35.34 -- 2 37.11 -- 3 38.97 -- 4 40.92 -- 5533 UCHR FIRE PREVENTION AIDE 0 14.82 -- 1 15.57 -- 2 16.34 -- 3 17.16 -- 4 18.02 -- 5528 IAFF FIRE PREVENTION ENG/INVSTGTR 0 40.60 3,247.92 1 42.63 3,410.32 2 44.76 3,580.83 3 47.00 3,759.88 4 49.35 3,947.87 5537 ACE FIRE PREVENTION SPECIALIST 0 25.75 2,060.04 1 27.04 2,163.04 2 28.39 2,271.20 3 29.81 2,384.76 4 31.37 2,509.99 5625 ACE FIRE RECRUIT 0 24.50 1,959.62 1 25.72 2,057.60 5623 IAFF FIREFIGHTER - A 0 21.97 2,460.12 1 23.06 2,583.13 2 24.22 2,712.28 3 25.43 2,847.90 4 26.70 2,990.29 5621 IAFF FIREFIGHTER - C 0 30.75 2,460.12 1 32.29 2,583.13 2 33.90 2,712.28 3 35.60 2,847.90 4 37.38 2,990.29 2021/11/09 City Council Post Agenda Page 138 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 30 of 69 Approved and Adopted: Resolution No. 5613 IAFF FIREFIGHTER/PARAMEDIC - A 0 25.26 2,829.14 1 26.52 2,970.60 2 27.85 3,119.13 3 29.24 3,275.08 4 30.70 3,438.84 5612 IAFF FIREFIGHTER/PARAMEDIC - B 0 33.68 2,829.14 1 35.36 2,970.60 2 37.13 3,119.13 3 38.99 3,275.08 4 40.94 3,438.84 5611 IAFF FIREFIGHTER/PARAMEDIC - C 0 35.36 2,829.14 1 37.13 2,970.60 2 38.99 3,119.13 3 40.94 3,275.08 4 42.99 3,438.84 0216 PRCF FISCAL AND MANAGEMENT ANALYST 0 46.04 3,683.33 1 48.34 3,867.50 2 50.76 4,060.86 3 53.30 4,263.92 4 55.96 4,477.12 3627 MMCF FISCAL DEBT MGMT ANALYST 0 46.04 3,683.33 1 48.34 3,867.50 2 50.76 4,060.86 3 53.30 4,263.92 4 55.96 4,477.12 0169 ACE FISCAL OFFICE SPECIALIST 0 20.31 1,625.05 1 21.33 1,706.31 2 22.40 1,791.62 3 23.51 1,881.19 4 24.69 1,975.25 0170 UCHR FISCAL OFFICE SPECIALIST 0 20.31 -- 1 21.33 -- 2 22.40 -- 3 23.51 -- 4 24.69 -- 2021/11/09 City Council Post Agenda Page 139 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 31 of 69 Approved and Adopted: Resolution No. 6513 ACE FLEET INVENTORY CONTROL SPEC 0 26.88 2,150.63 1 28.23 2,258.16 2 29.64 2,371.06 3 31.12 2,489.60 4 32.68 2,614.10 6501 MM FLEET MANAGER 0 43.67 3,493.88 1 45.86 3,668.57 2 48.15 3,852.00 3 50.56 4,044.60 4 53.09 4,246.83 5114 ACE FORENSICS SPECIALIST 0 32.21 2,577.08 1 33.82 2,705.93 2 35.52 2,841.26 3 37.29 2,983.30 4 39.16 3,132.47 6629 UCHR GARDENER (SEASONAL) 0 18.19 -- 1 19.10 -- 2 20.06 -- 3 21.06 -- 4 22.11 -- 3079 MM GIS MANAGER 0 44.77 3,581.51 1 47.01 3,760.58 2 49.36 3,948.60 3 51.83 4,146.03 4 54.42 4,353.34 3081 ACE GIS SPECIALIST 0 32.77 2,621.35 1 34.41 2,752.42 2 36.13 2,890.04 3 37.93 3,034.54 4 39.83 3,186.27 2775 ACE GRAPHIC DESIGNER 0 28.74 2,299.00 1 30.17 2,413.94 2 31.68 2,534.64 3 33.27 2,661.38 4 34.93 2,794.43 2021/11/09 City Council Post Agenda Page 140 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 32 of 69 Approved and Adopted: Resolution No. 4093 SM HOUSING MANAGER 0 56.77 4,541.20 1 -- -- 2 -- -- 3 -- -- 4 68.46 5,476.66 3310 PRCF HUMAN RESOURCES ANALYST 0 35.54 2,843.12 1 37.32 2,985.27 2 39.18 3,134.54 3 41.14 3,291.26 4 43.20 3,455.83 3312 UCHR HUMAN RESOURCES ANALYST 0 35.54 -- 1 37.32 -- 2 39.18 -- 3 41.14 -- 4 43.20 -- 3331 SM HUMAN RESOURCES MANAGER 0 58.46 4,676.87 1 -- -- 2 -- -- 3 -- -- 4 71.06 5,684.54 3332 UCHR HUMAN RESOURCES MANAGER 0 58.46 -- 1 -- -- 2 -- -- 3 -- -- 4 71.06 -- 3314 UCHR HUMAN RESOURCES TECHNICIAN 0 26.16 -- 1 27.47 -- 2 28.85 -- 3 30.29 -- 4 31.80 -- 3315 CONF HUMAN RESOURCES TECHNICIAN 0 26.16 2,093.17 1 27.47 2,197.83 2 28.85 2,307.72 3 30.29 2,423.10 4 31.80 2,544.26 2021/11/09 City Council Post Agenda Page 141 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 33 of 69 Approved and Adopted: Resolution No. 6430 ACE HVAC TECHNICIAN 0 29.31 2,344.50 1 30.77 2,461.73 2 32.31 2,584.81 3 33.93 2,714.05 4 35.62 2,849.76 5104 SM INFO TECHNOLOGY MANAGER 0 56.19 4,495.17 1 -- -- 2 -- -- 3 -- -- 4 67.43 5,394.42 3014 PROF INFO TECHNOLOGY SPECIALIST 0 36.64 2,930.90 1 38.47 3,077.44 2 40.39 3,231.31 3 42.41 3,392.88 4 44.53 3,562.52 3017 ACE INFO TECHNOLOGY TECHNICIAN 0 28.19 2,255.47 1 29.60 2,368.25 2 31.08 2,486.66 3 32.64 2,610.99 4 34.27 2,741.54 3018 UCHR INFO TECHNOLOGY TECHNICIAN 0 28.19 -- 1 29.60 -- 2 31.08 -- 3 32.64 -- 4 34.27 -- 0269 UCHR INTERN - GRADUATE 0 -- -- 1 14.03 -- 2 14.70 -- 3 15.43 -- 4 16.20 -- 0267 UCHR INTERN - UNDERGRADUATE 0 -- -- 1 -- -- 2 -- -- 3 14.03 -- 4 14.73 -- 2021/11/09 City Council Post Agenda Page 142 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 34 of 69 Approved and Adopted: Resolution No. 4480 PROF LANDSCAPE ARCHITECT 0 39.92 3,193.61 1 41.92 3,353.29 2 44.01 3,520.96 3 46.21 3,697.00 4 48.52 3,881.85 6291 ACE LANDSCAPE INSPECTOR 0 34.51 2,761.15 1 36.24 2,899.21 2 38.05 3,044.17 3 39.95 3,196.38 4 41.95 3,356.20 4482 ACE LANDSCAPE PLANNER I 0 32.66 2,612.90 1 34.29 2,743.55 2 36.01 2,880.73 3 37.81 3,024.76 4 39.70 3,176.00 4483 ACE LANDSCAPE PLANNER II 0 35.93 2,874.19 1 37.72 3,017.90 2 39.61 3,168.80 3 41.59 3,327.24 4 43.67 3,493.60 5111 ACE LATENT PRINT EXAMINER 0 37.05 2,963.66 1 38.90 3,111.85 2 40.84 3,267.43 3 42.89 3,430.81 4 45.03 3,602.33 5112 UCHR LATENT PRINT EXAMINER 0 37.05 -- 1 38.90 -- 2 40.84 -- 3 42.89 -- 4 45.03 -- 2465 MMUC LAW OFFICE MANAGER 0 37.44 2,995.30 1 39.31 3,145.07 2 41.28 3,302.32 3 43.34 3,467.45 4 45.51 3,640.82 2021/11/09 City Council Post Agenda Page 143 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 35 of 69 Approved and Adopted: Resolution No. 6663 ACE LEAD CUSTODIAN 0 21.87 1,749.92 1 22.97 1,837.41 2 24.12 1,929.29 3 25.32 2,025.75 4 26.59 2,127.04 0183 CONF LEGAL ASSISTANT 0 27.44 2,195.31 1 28.81 2,305.08 2 30.25 2,420.34 3 31.77 2,541.34 4 33.36 2,668.41 7075 ACE LIBRARIAN I 0 27.66 2,212.44 1 29.04 2,323.06 2 30.49 2,439.22 3 32.01 2,561.18 4 33.62 2,689.24 7076 UCHR LIBRARIAN I 0 27.66 -- 1 29.04 -- 2 30.49 -- 3 32.01 -- 4 33.62 -- 7073 ACE LIBRARIAN II 0 30.42 2,433.68 1 31.94 2,555.37 2 33.54 2,683.14 3 35.22 2,817.29 4 36.98 2,958.16 7074 UCHR LIBRARIAN II 0 30.42 -- 1 31.94 -- 2 33.54 -- 3 35.22 -- 4 36.98 -- 7071 ACE LIBRARIAN III 0 33.46 2,677.05 1 35.14 2,810.91 2 36.89 2,951.45 3 38.74 3,099.02 4 40.67 3,253.98 2021/11/09 City Council Post Agenda Page 144 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 36 of 69 Approved and Adopted: Resolution No. 7181 UCHR LIBRARY AIDE 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 14.00 -- 7157 ACE LIBRARY ASSISTANT 0 18.74 1,499.29 1 19.68 1,574.27 2 20.66 1,652.97 3 21.70 1,735.62 4 22.78 1,822.41 7091 ACE LIBRARY ASSOCIATE 0 23.69 1,894.94 1 24.87 1,989.69 2 26.11 2,089.18 3 27.42 2,193.64 4 28.79 2,303.33 7092 UCHR LIBRARY ASSOCIATE 0 23.69 -- 1 24.87 -- 2 26.11 -- 3 27.42 -- 4 28.79 -- 7025 MM LIBRARY DIGITAL SERVICES MGR 0 43.40 3,471.90 1 45.57 3,645.49 2 47.85 3,827.76 3 50.24 4,019.16 4 52.75 4,220.12 7029 MM LIBRARY OPERATIONS MANAGER 0 49.93 3,994.48 1 52.43 4,194.21 2 55.05 4,403.91 3 57.80 4,624.11 4 60.69 4,855.31 7121 ACE LIBRARY TECHNICIAN 0 21.55 1,724.20 1 22.63 1,810.41 2 23.76 1,900.94 3 24.95 1,995.98 4 26.20 2,095.77 2021/11/09 City Council Post Agenda Page 145 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 37 of 69 Approved and Adopted: Resolution No. 7587 UCHR LIFEGUARD I 0 -- -- 1 14.52 -- 2 15.24 -- 3 16.00 -- 4 16.80 -- 7585 UCHR LIFEGUARD II 0 15.21 -- 1 15.97 -- 2 16.77 -- 3 17.60 -- 4 18.48 -- 6443 ACE LOCKSMITH 0 27.38 2,190.39 1 28.75 2,299.90 2 30.19 2,414.90 3 31.70 2,535.65 4 33.28 2,662.44 6377 ACE MAINTENANCE WORKER I 0 20.58 1,646.29 1 21.61 1,728.61 2 22.69 1,815.04 3 23.82 1,905.79 4 25.01 2,001.08 6379 UCHR MAINTENANCE WORKER I 0 20.58 -- 1 21.61 -- 2 22.69 -- 3 23.82 -- 4 25.01 -- 6373 ACE MAINTENANCE WORKER II 0 22.64 1,810.92 1 23.77 1,901.47 2 24.96 1,996.54 3 26.20 2,096.37 4 27.51 2,201.19 0228 CONF MANAGEMENT ANALYST I 0 31.13 2,490.30 1 32.69 2,614.81 2 34.32 2,745.56 3 36.04 2,882.84 4 37.84 3,026.97 2021/11/09 City Council Post Agenda Page 146 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 38 of 69 Approved and Adopted: Resolution No. 0229 ACE MANAGEMENT ANALYST I 0 31.13 2,490.30 1 32.69 2,614.81 2 34.32 2,745.56 3 36.04 2,882.84 4 37.84 3,026.97 0224 CONF MANAGEMENT ANALYST II 0 34.24 2,739.33 1 35.95 2,876.30 2 37.75 3,020.10 3 39.64 3,171.11 4 41.62 3,329.66 0227 ACE MANAGEMENT ANALYST II 0 34.24 2,739.33 1 35.95 2,876.30 2 37.75 3,020.10 3 39.64 3,171.11 4 41.62 3,329.66 2781 SM MARKETING & COMMUNICATIONS MGR 0 58.65 4,692.00 1 -- -- 2 60.30 4,824.35 3 -- -- 4 71.29 5,703.16 2001 MY MAYOR 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 71.02 5,681.82 6550 ACE MECHANIC ASSISTANT 0 22.09 1,766.93 1 23.19 1,855.27 2 24.35 1,948.04 3 25.57 2,045.44 4 26.85 2,147.71 0238 CONF MGMT ANALYST I (CM'S OFFICE) 0 31.13 2,490.30 1 32.69 2,614.81 2 34.32 2,745.56 3 36.04 2,882.84 4 37.84 3,026.97 2021/11/09 City Council Post Agenda Page 147 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 39 of 69 Approved and Adopted: Resolution No. 5569 ACE MULTIMEDIA PRODUCTON SPCLST 0 27.66 2,212.98 1 29.05 2,323.63 2 30.50 2,439.81 3 32.02 2,561.80 4 33.62 2,689.89 0160 UCHR OFFICE SPECIALIST 0 19.35 -- 1 20.31 -- 2 21.33 -- 3 22.39 -- 4 23.51 -- 0161 ACE OFFICE SPECIALIST 0 19.35 1,547.64 1 20.31 1,625.02 2 21.33 1,706.28 3 22.39 1,791.59 4 23.51 1,881.16 0162 ACE OFFICE SPECIALIST-MAYOR 0 19.35 1,547.64 1 20.31 1,625.02 2 21.33 1,706.28 3 22.39 1,791.59 4 23.51 1,881.16 6311 ACE OPEN SPACE INSPECTOR 0 34.51 2,761.15 1 36.24 2,899.21 2 38.05 3,044.17 3 39.95 3,196.38 4 41.95 3,356.20 6302 MM OPEN SPACE MANAGER 0 42.33 3,386.62 1 44.45 3,555.95 2 46.67 3,733.75 3 49.01 3,920.44 4 51.46 4,116.47 3025 MM OPERATIONS AND TELECOMM MGR 0 44.77 3,581.50 1 47.01 3,760.57 2 49.36 3,948.59 3 51.83 4,146.02 4 54.42 4,353.33 2021/11/09 City Council Post Agenda Page 148 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 40 of 69 Approved and Adopted: Resolution No. 6434 ACE PAINTER 0 26.14 2,090.84 1 27.44 2,195.37 2 28.81 2,305.14 3 30.26 2,420.41 4 31.77 2,541.42 2475 CONF PARALEGAL 0 29.45 2,355.90 1 30.92 2,473.69 2 32.47 2,597.38 3 34.09 2,727.25 4 35.80 2,863.61 2476 UCHR PARALEGAL 0 29.45 -- 1 30.92 -- 2 32.47 -- 3 34.09 -- 4 35.80 -- 5655 NIAF PARAMEDIC (NON-SAFETY) 0 16.80 1 17.64 2 18.52 3 19.45 4 20.42 5656 UCHR PARAMEDIC (NS/HRLY) 0 16.80 -- 1 17.64 -- 2 18.52 -- 3 19.45 -- 4 20.42 -- 7434 UCHR PARK RANGER 0 -- -- 1 -- -- 2 14.61 -- 3 15.34 -- 4 16.10 -- 7431 PROF PARK RANGER PROGRAM MANAGER 0 39.92 3,193.60 1 41.92 3,353.28 2 44.01 3,520.94 3 46.21 3,696.99 4 48.52 3,881.84 2021/11/09 City Council Post Agenda Page 149 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 41 of 69 Approved and Adopted: Resolution No. 7441 ACE PARK RANGER SUPERVISOR 0 33.34 2,667.23 1 35.01 2,800.58 2 36.76 2,940.62 3 38.60 3,087.65 4 40.53 3,242.03 5152 UCHR PARKING ENFORCEMENT OFFICER 0 20.83 -- 1 21.87 -- 2 22.96 -- 3 24.11 -- 4 25.31 -- 5154 ACE PARKING ENFORCEMENT OFFICER 0 20.83 1,666.09 1 21.87 1,749.39 2 22.96 1,836.86 3 24.11 1,928.70 4 25.31 2,025.14 3693 ACE PARKING METER TECHNICIAN 0 22.91 1,832.70 1 24.05 1,924.33 2 25.26 2,020.55 3 26.52 2,121.57 4 27.85 2,227.65 7407 SM PARKS & RECREATION ADM 0 58.70 4,696.12 1 61.64 4,930.91 2 64.72 5,177.47 3 67.95 5,436.33 4 71.35 5,708.15 6619 ACE PARKS MAINT WORKER I 0 20.61 1,648.55 1 21.64 1,730.97 2 22.72 1,817.52 3 23.86 1,908.40 4 25.05 2,003.82 6617 ACE PARKS MAINT WORKER II 0 22.67 1,813.40 1 23.80 1,904.07 2 24.99 1,999.28 3 26.24 2,099.24 4 27.55 2,204.20 2021/11/09 City Council Post Agenda Page 150 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 42 of 69 Approved and Adopted: Resolution No. 6604 MM PARKS MANAGER 0 42.34 3,386.86 1 44.45 3,556.20 2 46.68 3,734.01 3 49.01 3,920.71 4 51.46 4,116.74 6605 ACE PARKS SUPERVISOR 0 33.34 2,667.23 1 35.01 2,800.58 2 36.76 2,940.62 3 38.60 3,087.65 4 40.53 3,242.03 5061 POA PEACE OFFICER 0 40.55 3,243.89 1 42.58 3,406.08 2 44.70 3,576.38 3 46.94 3,755.20 4 49.29 3,942.96 4731 MM PLAN CHECK SUPERVISOR 0 48.89 3,911.50 1 51.34 4,107.07 2 53.91 4,312.43 3 56.60 4,528.05 4 59.43 4,754.44 4753 ACE PLAN CHECK TECHNICIAN 0 30.01 2,401.00 1 31.51 2,521.05 2 33.09 2,647.10 3 34.74 2,779.46 4 36.48 2,918.43 4727 SM PLANNING MANAGER 0 62.06 4,964.69 1 -- -- 2 -- -- 3 66.96 5,356.97 4 74.87 5,989.33 4527 ACE PLANNING TECHNICIAN 0 24.66 1,972.78 1 25.89 2,071.40 2 27.19 2,174.97 3 28.55 2,283.73 4 29.97 2,397.91 2021/11/09 City Council Post Agenda Page 151 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 43 of 69 Approved and Adopted: Resolution No. 6432 ACE PLUMBER 0 29.31 2,344.50 1 30.77 2,461.73 2 32.31 2,584.81 3 33.93 2,714.05 4 35.62 2,849.76 5025 SM POLICE ADMIN SRVCS ADMNSTRTR 0 57.00 4,560.10 1 -- -- 2 -- -- 3 -- -- 4 69.28 5,542.64 5051 POA POLICE AGENT 0 44.65 3,572.04 1 46.88 3,750.64 2 49.23 3,938.17 3 51.69 4,135.07 4 54.27 4,341.82 5022 SM POLICE CAPTAIN 0 77.79 6,223.17 1 -- -- 2 -- -- 3 -- -- 4 94.55 7,564.00 5258 ACE POLICE COMM RELATIONS SPEC 0 26.35 2,107.60 1 27.66 2,212.98 2 29.05 2,323.63 3 30.50 2,439.81 4 32.02 2,561.80 5185 MM POLICE COMMUNICATIONS SYS MGR 0 44.77 3,581.90 1 47.01 3,761.00 2 49.36 3,949.04 3 51.83 4,146.49 4 54.42 4,353.82 5187 UCHR POLICE DISPATCH CALLTAKER 0 20.66 -- 1 21.69 -- 2 22.78 -- 3 23.92 -- 4 25.11 -- 2021/11/09 City Council Post Agenda Page 152 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 44 of 69 Approved and Adopted: Resolution No. 5180 UCHR POLICE DISPATCHER 0 29.14 -- 1 30.60 -- 2 32.13 -- 3 33.73 -- 4 35.42 -- 5181 ACE POLICE DISPATCHER 0 29.14 2,331.32 1 30.60 2,447.89 2 32.13 2,570.28 3 33.73 2,698.79 4 35.42 2,833.73 5183 ACE POLICE DISPATCHER SUPERVISOR 0 33.91 2,712.98 1 35.61 2,848.63 2 37.39 2,991.06 3 39.26 3,140.62 4 41.22 3,297.65 5179 ACE POLICE DISPATCHER TRAINEE 0 26.49 2,119.38 1 27.82 2,225.35 2 29.21 2,336.62 3 30.67 2,453.45 4 32.20 2,576.12 5191 ACE POLICE FACILITY & SUPPLY COORD 0 26.88 2,150.63 1 28.23 2,258.16 2 29.64 2,371.06 3 31.12 2,489.60 4 32.68 2,614.10 5031 POA POLICE LIEUTENANT 0 61.64 4,931.07 1 64.72 5,177.62 2 67.96 5,436.50 3 71.35 5,708.34 4 74.92 5,993.75 5203 ACE POLICE RECORDS & SUPPORT SUPV 0 26.08 2,086.23 1 27.38 2,190.54 2 28.75 2,300.07 3 30.19 2,415.07 4 31.70 2,535.82 2021/11/09 City Council Post Agenda Page 153 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 45 of 69 Approved and Adopted: Resolution No. 0165 ACE POLICE RECORDS SPECIALIST 0 19.72 1,577.49 1 20.70 1,656.36 2 21.74 1,739.18 3 22.83 1,826.14 4 23.97 1,917.45 0166 UCHR POLICE RECORDS SPECIALIST 0 19.72 -- 1 20.70 -- 2 21.74 -- 3 22.83 -- 4 23.97 -- 5071 ACE POLICE RECRUIT 0 31.31 2,504.46 1 32.87 2,629.67 2 -- -- 3 -- -- 4 -- -- 5041 POA POLICE SERGEANT 0 51.36 4,108.91 1 53.93 4,314.37 2 56.63 4,530.09 3 59.46 4,756.58 4 62.43 4,994.41 5131 ACE POLICE SERVICES OFFICER 0 27.49 2,199.23 1 28.86 2,309.19 2 30.31 2,424.65 3 31.82 2,545.89 4 33.41 2,673.18 5133 UCHR POLICE SERVICES OFFICER 0 27.49 -- 1 28.86 -- 2 30.31 -- 3 31.82 -- 4 33.41 -- 5132 ACE POLICE SERVICES OFFICER SUPV 0 31.61 2,529.12 1 33.19 2,655.57 2 34.85 2,788.35 3 36.60 2,927.77 4 38.43 3,074.16 2021/11/09 City Council Post Agenda Page 154 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 46 of 69 Approved and Adopted: Resolution No. 5415 ACE POLICE SERVICES TECHNICIAN 0 24.83 1,986.28 1 26.07 2,085.60 2 27.37 2,189.89 3 28.74 2,299.37 4 30.18 2,414.35 5207 UCHR POLICE SUPPORT SERVICES AIDE 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 14.00 -- 5205 MM POLICE SUPPORT SERVICES MGR 0 43.34 3,466.91 1 45.50 3,640.26 2 47.78 3,822.27 3 50.17 4,013.38 4 52.68 4,214.05 5209 MM POLICE TECHNOLOGY MANAGER 0 44.77 3,581.51 1 47.01 3,760.58 2 49.36 3,948.60 3 51.83 4,146.03 4 54.42 4,353.34 5107 ACE POLICE TECHNOLOGY SPECIALIST 0 39.25 3,140.18 1 41.21 3,297.19 2 43.28 3,462.05 3 45.44 3,635.14 4 47.71 3,816.90 2013 PRUC POLICY AIDE 0 29.94 2,394.82 1 31.43 2,514.57 2 33.00 2,640.29 3 34.65 2,772.30 4 36.39 2,910.92 6021 MM PRINCIPAL CIVIL ENGINEER 0 53.67 4,293.61 1 56.35 4,508.29 2 59.17 4,733.71 3 62.13 4,970.39 4 65.24 5,218.91 2021/11/09 City Council Post Agenda Page 155 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 47 of 69 Approved and Adopted: Resolution No. 3305 MMCF PRINCIPAL HR ANALYST 0 47.21 3,776.41 1 49.57 3,965.23 2 52.04 4,163.49 3 54.65 4,371.66 4 57.38 4,590.23 4486 MM PRINCIPAL LANDSCAPE ARCHITECT 0 49.90 3,992.38 1 52.40 4,192.00 2 55.02 4,401.60 3 57.77 4,621.68 4 60.66 4,852.76 7051 MM PRINCIPAL LIBRARIAN 0 43.40 3,471.90 1 45.57 3,645.49 2 47.85 3,827.76 3 50.24 4,019.16 4 52.75 4,220.12 0208 PROF PRINCIPAL MANAGEMENT ANALYST 0 41.89 3,350.99 1 43.98 3,518.54 2 46.18 3,694.46 3 48.49 3,879.19 4 50.91 4,073.15 0214 PRCF PRINCIPAL MANAGEMENT ANALYST 0 41.89 3,350.99 1 43.98 3,518.54 2 46.18 3,694.46 3 48.49 3,879.19 4 50.91 4,073.15 4431 MM PRINCIPAL PLANNER 0 49.90 3,992.38 1 52.40 4,192.00 2 55.02 4,401.60 3 57.77 4,621.68 4 60.66 4,852.76 4212 PROF PRINCIPAL PROJECT COORDINATOR 0 49.90 3,992.38 1 52.40 4,192.00 2 55.02 4,401.60 3 57.77 4,621.68 4 60.66 4,852.76 2021/11/09 City Council Post Agenda Page 156 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 48 of 69 Approved and Adopted: Resolution No. 7410 MM PRINCIPAL RECREATION MANAGER 0 42.34 3,386.84 1 44.45 3,556.18 2 46.67 3,733.99 3 49.01 3,920.69 4 51.46 4,116.72 6020 MM PRINCIPAL TRAFFIC ENGINEER 0 53.67 4,293.61 1 56.35 4,508.29 2 59.17 4,733.71 3 62.13 4,970.39 4 65.24 5,218.91 3717 MM PROCUREMENT SERVICES ANALYST 0 40.34 3,226.94 1 42.35 3,388.30 2 44.47 3,557.71 3 46.70 3,735.60 4 49.03 3,922.37 3721 ACE PROCUREMENT SPECIALIST 0 30.51 2,440.59 1 32.03 2,562.60 2 33.63 2,690.72 3 35.32 2,825.27 4 37.08 2,966.53 3090 PROF PROGRAMMER ANALYST 0 38.70 3,095.67 1 40.63 3,250.45 2 42.66 3,412.98 3 44.80 3,583.63 4 47.04 3,762.81 4217 ACE PROJECT COORDINATOR I 0 32.66 2,612.90 1 34.29 2,743.55 2 36.01 2,880.73 3 37.81 3,024.76 4 39.70 3,176.00 4218 UCHR PROJECT COORDINATOR I 0 32.66 -- 1 34.29 -- 2 36.01 -- 3 37.81 -- 4 39.70 -- 2021/11/09 City Council Post Agenda Page 157 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 49 of 69 Approved and Adopted: Resolution No. 4215 ACE PROJECT COORDINATOR II 0 35.93 2,874.19 1 37.72 3,017.90 2 39.61 3,168.80 3 41.59 3,327.24 4 43.67 3,493.60 5127 ACE PROPERTY AND EVIDENCE SPEC 0 21.81 1,744.93 1 22.90 1,832.18 2 24.05 1,923.79 3 25.25 2,019.98 4 26.51 2,120.98 5128 UCHR PROPERTY AND EVIDENCE SPEC 0 21.81 -- 1 22.90 -- 2 24.05 -- 3 25.25 -- 4 26.51 -- 5121 ACE PROPERTY AND EVIDENCE SUPVSOR 0 28.85 2,307.67 1 30.29 2,423.06 2 31.80 2,544.21 3 33.39 2,671.42 4 35.06 2,804.99 2782 CONF PUBLIC INFORMATION SPECIALIST 0 30.71 2,456.82 1 32.25 2,579.69 2 33.86 2,708.65 3 35.55 2,844.09 4 37.33 2,986.29 2783 ACE PUBLIC INFORMATION SPECIALIST 0 30.71 2,456.82 1 32.25 2,579.69 2 33.86 2,708.65 3 35.55 2,844.09 4 37.33 2,986.29 5254 ACE PUBLIC SAFETY ANALYST 0 33.61 2,688.45 1 35.29 2,822.87 2 37.05 2,964.02 3 38.90 3,112.24 4 40.85 3,267.83 2021/11/09 City Council Post Agenda Page 158 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 50 of 69 Approved and Adopted: Resolution No. 5256 UCHR PUBLIC SAFETY ANALYST 0 33.61 -- 1 35.29 -- 2 37.05 -- 3 38.90 -- 4 40.85 -- 6123 ACE PUBLIC WORKS INSPECTOR I 0 31.38 2,510.15 1 32.95 2,635.64 2 34.59 2,767.43 3 36.32 2,905.79 4 38.14 3,051.09 6121 ACE PUBLIC WORKS INSPECTOR II 0 34.51 2,761.14 1 36.24 2,899.20 2 38.05 3,044.15 3 39.95 3,196.38 4 41.95 3,356.19 6336 MM PUBLIC WORKS MANAGER 0 42.33 3,386.62 1 44.45 3,555.95 2 46.67 3,733.75 3 49.01 3,920.44 4 51.46 4,116.47 6712 ACE PUBLIC WORKS SPECIALIST 0 25.01 2,000.83 1 26.26 2,100.86 2 27.57 2,205.90 3 28.95 2,316.20 4 30.40 2,432.03 6327 SM PUBLIC WORKS SUPERINTENDENT 0 57.07 4,565.39 1 59.92 4,793.65 2 62.92 5,033.34 3 66.06 5,285.00 4 69.37 5,549.26 6337 ACE PUBLIC WORKS SUPERVISOR 0 33.34 2,667.23 1 35.01 2,800.58 2 36.76 2,940.62 3 38.60 3,087.65 4 40.53 3,242.03 2021/11/09 City Council Post Agenda Page 159 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 51 of 69 Approved and Adopted: Resolution No. 6392 ACE PUMP MAINTENANCE SUPERVISOR 0 33.38 2,670.32 1 35.05 2,803.84 2 36.80 2,944.03 3 38.64 3,091.22 4 40.57 3,245.79 6396 ACE PUMP MAINTENANCE TECHNICIAN 0 29.48 2,358.00 1 30.95 2,475.90 2 32.50 2,599.69 3 34.12 2,729.67 4 35.83 2,866.16 3711 SM PURCHASING AGENT 0 50.21 4,016.92 1 -- -- 2 -- -- 3 -- -- 4 61.03 4,882.59 5417 ACE RANGE MASTER 0 25.20 2,015.96 1 26.46 2,116.76 2 27.78 2,222.60 3 29.17 2,333.73 4 30.63 2,450.42 5418 UCHR RANGE MASTER 0 25.20 -- 1 26.46 -- 2 27.78 -- 3 29.17 -- 4 30.63 -- 6037 MMUC REAL PROPERTY MANAGER 0 47.42 3,793.59 1 49.79 3,983.27 2 52.28 4,182.44 3 54.89 4,391.56 4 57.64 4,611.13 2211 MM RECORDS MANAGER 0 34.51 2,760.80 1 36.24 2,898.84 2 38.05 3,043.78 3 39.95 3,195.98 4 41.95 3,355.77 2021/11/09 City Council Post Agenda Page 160 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 52 of 69 Approved and Adopted: Resolution No. 2217 ACE RECORDS SPECIALIST 0 21.28 1,702.43 1 22.34 1,787.55 2 23.46 1,876.93 3 24 63 1 970 78 4 25.87 2,069.30 7605 UCHR RECREATION AIDE 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 14.00 -- 7603 UCHR RECREATION LEADER 0 -- -- 1 -- -- 2 14.52 -- 3 15.25 -- 4 16.01 -- 7601 UCHR RECREATION SPECIALIST 0 15.80 -- 1 16.59 -- 2 17.42 -- 3 18.30 -- 4 19.21 -- 7425 ACE RECREATION SUPERVISOR I 0 25.38 2,030.17 1 26.65 2,131.67 2 27.98 2,238.26 3 29.38 2,350.17 4 30.85 2,467.68 7426 UCHR RECREATION SUPERVISOR I 0 25.38 -- 1 26.65 -- 2 27.98 -- 3 29.38 -- 4 30.85 -- 7423 ACE RECREATION SUPERVISOR II 0 27.91 2,233.18 1 29.31 2,344.84 2 30.78 2,462.08 3 32.31 2,585.19 4 33.93 2,714.45 2021/11/09 City Council Post Agenda Page 161 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 53 of 69 Approved and Adopted: Resolution No. 7422 ACE RECREATION SUPERVISOR III 0 32.10 2,568.16 1 33.71 2,696.57 2 35.39 2,831.40 3 37.16 2,972.96 4 39.02 3,121.61 2742 ACE RECYCLING SPECIALIST I 0 24.78 1,982.10 1 26.02 2,081.21 2 27.32 2,185.27 3 28.68 2,294.52 4 30.12 2,409.25 2744 ACE RECYCLING SPECIALIST II 0 27.25 2,180.31 1 28.62 2,289.34 2 30.05 2,403.79 3 31.55 2,523.99 4 33.13 2,650.19 5307 ACE REGISTERED VETERINARY TECH 0 23.66 1,892.71 1 24.84 1,987.34 2 26.08 2,086.72 3 27.39 2,191.06 4 28.76 2,300.62 5312 UCHR REGISTERED VETERINARY TECH 0 23.66 -- 1 24.84 -- 2 26.08 -- 3 27.39 -- 4 28.76 -- 5081 UCHR RESERVE OFFICER 0 14.24 -- 1 14.95 -- 2 15.69 -- 3 -- -- 4 -- -- 3689 SM REVENUE MANAGER 0 54.92 4,393.69 1 57.67 4,613.37 2 60.55 4,844.04 3 63.58 5,086.24 4 66.76 5,340.56 2021/11/09 City Council Post Agenda Page 162 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 54 of 69 Approved and Adopted: Resolution No. 3367 PRCF RISK MANAGEMENT SPECIALIST 0 35.54 2,843.00 1 37.31 2,985.14 2 39.18 3,134.40 3 41.14 3,291.13 4 43.20 3,455.68 3361 SM RISK MANAGER 0 52.29 4,183.58 1 -- -- 2 -- -- 3 -- -- 4 63.57 5,085.23 0231 UCHR SEASONAL ASSISTANT 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 14.00 -- 0171 ACE SECRETARY 0 21.28 1,702.43 1 22.34 1,787.55 2 23.46 1,876.93 3 24.63 1,970.78 4 25.87 2,069.30 3630 MMCF SENIOR ACCOUNTANT 0 37.85 3,027.75 1 39.74 3,179.14 2 41.73 3,338.09 3 43.81 3,505.00 4 46.00 3,680.25 3632 UCHR SENIOR ACCOUNTANT 0 37.85 -- 1 39.74 -- 2 41.73 -- 3 43.81 -- 4 46.00 -- 3651 ACE SENIOR ACCOUTING ASSISTANT 0 25.29 2,022.88 1 26.55 2,124.02 2 27.88 2,230.24 3 29.27 2,341.76 4 30.74 2,458.84 2021/11/09 City Council Post Agenda Page 163 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 55 of 69 Approved and Adopted: Resolution No. 0185 ACE SENIOR ADMIN SECRETARY 0 29.89 2,391.17 1 31.38 2,510.72 2 32.95 2,636.26 3 34.60 2,768.05 4 36.33 2,906.46 5345 ACE SENIOR ANIMAL CARE SPECIALIST 0 22.67 1,813.84 1 23.81 1,904.54 2 25.00 1,999.76 3 26.25 2,099.75 4 27.56 2,204.74 3089 PROF SENIOR APPLICATION SUPP SPEC 0 42.87 3,429.31 1 45.01 3,600.78 2 47.26 3,780.82 3 49.62 3,969.86 4 52.10 4,168.35 2403 EXEC SENIOR ASSISTANT CITY ATTORNEY 0 80.45 6,436.12 1 -- -- 2 -- -- 3 -- -- 4 97.79 7,823.15 4781 ACE SENIOR BUILDING INSPECTOR 0 39.69 3,175.30 1 41.68 3,334.08 2 43.76 3,500.78 3 45.95 3,675.82 4 48.25 3,859.60 4507 ACE SENIOR BUSINESS LICENSE REP 0 25.29 2,022.88 1 26.55 2,124.02 2 27.88 2,230.24 3 29.27 2,341.76 4 30.74 2,458.84 6019 WCE SENIOR CIVIL ENGINEER 0 48.34 3,866.99 1 50.75 4,060.32 2 53.29 4,263.37 3 55.96 4,476.53 4 58.75 4,700.34 2021/11/09 City Council Post Agenda Page 164 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 56 of 69 Approved and Adopted: Resolution No. 4763 ACE SENIOR CODE ENFORCEMNT OFFICER 0 37.92 3,033.91 1 39.82 3,185.60 2 41.81 3,344.89 3 43.90 3,512.12 4 46.10 3,687.74 6204 ACE SENIOR CONSERVATION SPECIALIST 0 31.34 2,507.38 1 32.91 2,632.75 2 34.55 2,764.38 3 36.28 2,902.60 4 38.10 3,047.74 2025 UCHR SENIOR COUNCIL ASSISTANT 0 28.10 -- 1 29.51 -- 2 30.98 -- 3 32.53 -- 4 34.16 -- 2027 CONF SENIOR COUNCIL ASSISTANT 0 23.33 1,866.51 1 24.50 1,959.83 2 25.72 2,057.82 3 27.01 2,160.71 4 28.36 2,268.75 2725 PROF SENIOR ECON DEVELOPMENT SPEC 0 39.92 3,193.61 1 41.92 3,353.29 2 44.01 3,520.96 3 46.21 3,697.00 4 48.52 3,881.85 6442 ACE SENIOR ELECTRICIAN 0 33.70 2,696.18 1 35.39 2,830.99 2 37.16 2,972.54 3 39.01 3,121.16 4 40.97 3,277.22 6471 ACE SENIOR ELECTRONICS TECHNICIAN 0 37.07 2,965.80 1 38.93 3,114.09 2 40.87 3,269.79 3 42.92 3,433.28 4 45.06 3,604.94 2021/11/09 City Council Post Agenda Page 165 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 57 of 69 Approved and Adopted: Resolution No. 6059 ACE SENIOR ENGINEERING TECHNICIAN 0 34.51 2,761.14 1 36.24 2,899.20 2 38.05 3,044.15 3 39.95 3,196.38 4 41.95 3,356.19 6512 ACE SENIOR EQUIPMENT MECHANIC 0 32.42 2,593.80 1 34.04 2,723.49 2 35.75 2,859.66 3 37.53 3,002.64 4 39.41 3,152.77 5529 IAFF SENIOR FIRE INSPECTOR/INVESTIG 0 39.10 3,128.09 1 41.06 3,284.49 2 43.11 3,448.72 3 45.26 3,621.16 4 47.53 3,802.21 0175 ACE SENIOR FISCAL OFFICE SPECIALST 0 22.34 1,787.54 1 23.46 1,876.92 2 24.63 1,970.77 3 25.87 2,069.30 4 27.16 2,172.77 0176 UCHR SENIOR FISCAL OFFICE SPECIALST 0 22.34 -- 1 23.46 -- 2 24.63 -- 3 25.87 -- 4 27.16 -- 3080 ACE SENIOR GIS SPECIALIST 0 36.04 2,883.48 1 37.85 3,027.66 2 39.74 3,179.04 3 41.72 3,337.99 4 43.81 3,504.89 2764 PROF SENIOR GRAPHIC DESIGNER 0 36.08 2,886.40 1 37.88 3,030.72 2 39.78 3,182.26 3 41.77 3,341.37 4 43.86 3,508.43 2021/11/09 City Council Post Agenda Page 166 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 58 of 69 Approved and Adopted: Resolution No. 3308 PRCF SENIOR HR ANALYST 0 40.87 3,269.59 1 42.91 3,433.08 2 45.06 3,604.73 3 47.31 3,784.97 4 49.68 3,974.22 3316 CONF SENIOR HR TECHNICIAN 0 30.09 2,407.14 1 31.59 2,527.50 2 33.17 2,653.88 3 34.83 2,786.57 4 36.57 2,925.90 6441 ACE SENIOR HVAC TECHNICIAN 0 33.70 2,696.18 1 35.39 2,830.99 2 37.16 2,972.54 3 39.01 3,121.16 4 40.97 3,277.22 3012 PROF SENIOR INFO TECH SUPPORT SPEC 0 37.87 3,029.52 1 39.76 3,181.00 2 41.75 3,340.05 3 43.84 3,507.05 4 46.03 3,682.40 6285 WCE SENIOR LAND SURVEYOR 0 48.34 3,866.99 1 50.75 4,060.32 2 53.29 4,263.37 3 55.96 4,476.53 4 58.75 4,700.34 6295 ACE SENIOR LANDSCAPE INSPECTOR 0 39.69 3,175.32 1 41.68 3,334.09 2 43.76 3,500.79 3 45.95 3,675.83 4 48.25 3,859.62 5110 ACE SENIOR LATENT PRINT EXAMINER 0 42.60 3,408.20 1 44.73 3,578.62 2 46.97 3,757.54 3 49.32 3,945.43 4 51.78 4,142.69 2021/11/09 City Council Post Agenda Page 167 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 59 of 69 Approved and Adopted: Resolution No. 2463 CONF SENIOR LEGAL ASSISTANT 0 30.19 2,414.84 1 31.69 2,535.57 2 33.28 2,662.35 3 34.94 2,795.47 4 36.69 2,935.25 7053 MM SENIOR LIBRARIAN 0 34.46 2,756.75 1 36.18 2,894.60 2 37.99 3,039.32 3 39.89 3,191.29 4 41.89 3,350.85 7589 UCHR SENIOR LIFEGUARD 0 16.72 -- 1 17.55 -- 2 18.43 -- 3 19.35 -- 4 20.32 -- 6371 ACE SENIOR MAINTENANCE WORKER 0 27.16 2,173.11 1 28.52 2,281.76 2 29.95 2,395.85 3 31.45 2,515.65 4 33.02 2,641.43 0206 PROF SENIOR MANAGEMENT ANALYST 0 38.08 3,046.34 1 39.98 3,198.66 2 41.98 3,358.59 3 44.08 3,526.52 4 46.29 3,702.84 0226 PRCF SENIOR MANAGEMENT ANALYST 0 38.08 3,046.34 1 39.98 3,198.66 2 41.98 3,358.59 3 44.08 3,526.52 4 46.29 3,702.84 0173 ACE SENIOR OFFICE SPECIALIST 0 21.28 1,702.43 1 22.34 1,787.55 2 23.46 1,876.93 3 24.63 1,970.78 4 25.87 2,069.30 2021/11/09 City Council Post Agenda Page 168 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 60 of 69 Approved and Adopted: Resolution No. 0174 UCHR SENIOR OFFICE SPECIALIST 0 21.28 -- 1 22.34 -- 2 23.46 -- 3 24.63 -- 4 25.87 -- 6309 ACE SENIOR OPEN SPACE INSPECTOR 0 39.69 3,175.32 1 41.68 3,334.09 2 43.76 3,500.79 3 45.95 3,675.83 4 48.25 3,859.62 7439 ACE SENIOR PARK RANGER 0 27.16 2,173.11 1 28.52 2,281.76 2 29.95 2,395.85 3 31.45 2,515.65 4 33.02 2,641.43 5157 ACE SENIOR PARKING ENFORCEMENT OFF 0 22.91 1,832.70 1 24.05 1,924.33 2 25.26 2,020.55 3 26.52 2,121.57 4 27.85 2,227.65 6615 ACE SENIOR PARKS MAINT WORKER 0 27.20 2,176.08 1 28.56 2,284.89 2 29.99 2,399.13 3 31.49 2,519.09 4 33.06 2,645.04 4746 WCE SENIOR PLAN CHECK ENGINEER 0 46.24 3,698.86 1 48.55 3,883.82 2 50.98 4,078.00 3 53.52 4,281.90 4 56.20 4,496.00 4751 ACE SENIOR PLAN CHECK TECHNICIAN 0 34.51 2,761.14 1 36.24 2,899.20 2 38.05 3,044.15 3 39.95 3,196.38 4 41.95 3,356.19 2021/11/09 City Council Post Agenda Page 169 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 61 of 69 Approved and Adopted: Resolution No. 4432 PROF SENIOR PLANNER 0 39.92 3,193.61 1 41.92 3,353.29 2 44.01 3,520.96 3 46.21 3,697.00 4 48.52 3,881.85 4434 UCHR SENIOR PLANNER 0 39.92 -- 1 41.92 -- 2 44.01 -- 3 46.21 -- 4 48.52 -- 4529 ACE SENIOR PLANNING TECHNICIAN 0 28.36 2,268.68 1 29.78 2,382.12 2 31.27 2,501.23 3 32.83 2,626.28 4 34.47 2,757.61 0135 ACE SENIOR POLICE RECORDS SPEC 0 22.68 1,814.11 1 23.81 1,904.82 2 25.00 2,000.06 3 26.25 2,100.06 4 27.56 2,205.06 3728 PROF SENIOR PROCUREMENT SPECIALIST 0 32.75 2,619.60 1 34.38 2,750.58 2 36.10 2,888.12 3 37.91 3,032.52 4 39.80 3,184.14 3091 PROF SENIOR PROGRAMMER ANALYST 0 44.11 3,529.14 1 46.32 3,705.60 2 48.64 3,890.88 3 51.07 4,085.43 4 53.62 4,289.69 4214 PROF SENIOR PROJECT COORDINATOR 0 39.92 3,193.61 1 41.92 3,353.29 2 44.01 3,520.96 3 46.21 3,697.00 4 48.52 3,881.85 2021/11/09 City Council Post Agenda Page 170 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 62 of 69 Approved and Adopted: Resolution No. 5125 ACE SENIOR PROPRTY & EVIDENCE SPEC 0 25.08 2,006.67 1 26.34 2,107.01 2 27.65 2,212.36 3 29.04 2,322.97 4 30.49 2,439.12 5248 UCHR SENIOR PUBLIC SAFETY ANALYST 0 36.07 -- 1 37.87 -- 2 39.77 -- 3 41.76 -- 4 43.84 -- 5260 PROF SENIOR PUBLIC SAFETY ANALYST 0 36.07 2,885.66 1 37.87 3,029.95 2 39.77 3,181.44 3 41.76 3,340.52 4 43.84 3,507.55 6101 ACE SENIOR PUBLIC WORKS INSPECTOR 0 39.69 3,175.31 1 41.68 3,334.09 2 43.76 3,500.79 3 45.95 3,675.83 4 48.25 3,859.61 6702 ACE SENIOR PUBLIC WORKS SPECIALIST 0 30.01 2,400.99 1 31.51 2,521.04 2 33.09 2,647.09 3 34.74 2,779.44 4 36.48 2,918.42 2215 ACE SENIOR RECORDS SPECIALIST 0 24.47 1,957.79 1 25.70 2,055.68 2 26.98 2,158.46 3 28.33 2,266.39 4 29.75 2,379.71 2746 ACE SENIOR RECYCLING SPECIALIST 0 31.34 2,507.38 1 32.91 2,632.75 2 34.55 2,764.38 3 36.28 2,902.60 4 38.10 3,047.74 2021/11/09 City Council Post Agenda Page 171 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 63 of 69 Approved and Adopted: Resolution No. 3365 PRCF SENIOR RISK MANAGEMENT SPEC 0 40.87 3,269.59 1 42.91 3,433.08 2 45.06 3,604.73 3 47.31 3,784.97 4 49.68 3,974.22 0177 ACE SENIOR SECRETARY 0 23.41 1,872.67 1 24.58 1,966.31 2 25.81 2,064.62 3 27.10 2,167.86 4 28.45 2,276.25 6573 ACE SENIOR TREE TRIMMER 0 29.92 2,393.69 1 31.42 2,513.38 2 32.99 2,639.04 3 34.64 2,771.00 4 36.37 2,909.55 2779 PROF SENIOR WEBMASTER 0 36.21 2,896.98 1 38.02 3,041.82 2 39.92 3,193.92 3 41.92 3,353.62 4 44.02 3,521.30 6169 ACE SIGNAL SYSTEMS ENGINEER I 0 36.07 2,885.78 1 37.88 3,030.06 2 39.77 3,181.57 3 41.76 3,340.66 4 43.85 3,507.68 6170 ACE SIGNAL SYSTEMS ENGINEER II 0 39.68 3,174.35 1 41.66 3,333.08 2 43.75 3,499.72 3 45.93 3,674.71 4 48.23 3,858.44 6355 ACE SIGNING AND STRIPING SUPV 0 33.34 2,667.23 1 35.01 2,800.58 2 36.76 2,940.62 3 38.60 3,087.65 4 40.53 3,242.03 2021/11/09 City Council Post Agenda Page 172 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 64 of 69 Approved and Adopted: Resolution No. 2799 PRUC SPECIAL EVENTS COORDINATOR 0 40.62 3,249.25 1 42.65 3,411.72 2 44.78 3,582.30 3 47.02 3,761.42 4 49.37 3,949.49 2751 SM SPECIAL PROJECTS MGR 0 48.27 3,861.57 1 49.49 3,959.49 2 -- -- 3 -- -- 4 58.67 4,693.75 3313 UCHR SR HR ANALYST 0 40.87 -- 1 42.91 -- 2 45.06 -- 3 47.31 -- 4 49.68 -- 3031 PROF SR ITS/POL SPEC II (T) 0 41.73 3,338.43 1 43.82 3,505.35 2 46.01 3,680.62 3 48.31 3,864.65 4 50.72 4,057.88 3051 PROF SR NETWORK ENGINEER 0 50.91 4,072.44 1 53.45 4,276.07 2 56.12 4,489.87 3 58.93 4,714.36 4 61.88 4,950.08 3734 ACE STOREKEEPER 0 22.64 1,810.92 1 23.77 1,901.47 2 24.96 1,996.54 3 26.20 2,096.37 4 27.51 2,201.19 3732 ACE STOREKEEPER SUPERVISOR 0 27.16 2,173.11 1 28.52 2,281.76 2 29.95 2,395.85 3 31.45 2,515.65 4 33.02 2,641.43 2021/11/09 City Council Post Agenda Page 173 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 65 of 69 Approved and Adopted: Resolution No. 6127 ACE STORMWATER COMPLNCE INSP I 0 29.28 2,342.51 1 30.75 2,459.64 2 32.28 2,582.62 3 33.90 2,711.75 4 35.59 2,847.34 6125 ACE STORMWATER COMPLNCE INSP II 0 32.21 2,576.76 1 33.82 2,705.60 2 35.51 2,840.88 3 37.29 2,982.93 4 39.15 3,132.07 6137 ACE STORMWATER ENV SPECIALIST I 0 32.80 2,624.23 1 34.44 2,755.45 2 36.17 2,893.22 3 37.97 3,037.88 4 39.87 3,189.78 6135 ACE STORMWATER ENV SPECIALIST II 0 36.08 2,886.67 1 37.89 3,031.00 2 39.78 3,182.55 3 41.77 3,341.66 4 43.86 3,508.76 6131 MM STORMWATER PROGRAM MANAGER 0 44.57 3,565.34 1 46.80 3,743.60 2 49.13 3,930.78 3 51.59 4,127.33 4 54.17 4,333.69 5241 MM SUPRVSNG PUBLIC SAFETY ANALYST 0 41.48 3,318.51 1 43.56 3,484.44 2 45.73 3,658.66 3 48.02 3,841.60 4 50.42 4,033.67 6151 ACE SURVEY TECHNICIAN I 0 27.28 2,182.72 1 28.65 2,291.85 2 30.08 2,406.44 3 31.58 2,526.77 4 33.16 2,653.12 2021/11/09 City Council Post Agenda Page 174 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 66 of 69 Approved and Adopted: Resolution No. 6141 ACE SURVEY TECHNICIAN II 0 30.01 2,400.99 1 31.51 2,521.04 2 33.09 2,647.09 3 34.74 2,779.44 4 36.48 2,918.42 3015 PROF SYSTEMS/DATABASE ADMINISTRATOR 0 40.30 3,223.71 1 42.31 3,384.90 2 44.43 3,554.14 3 46.65 3,731.85 4 48.98 3,918.44 3027 ACE TELECOMMUNICATIONS SPECIALIST 0 25.25 2,020.05 1 26.51 2,121.05 2 27.84 2,227.10 3 29.23 2,338.45 4 30.69 2,455.38 7503 UCHR TINY TOT AIDE 0 -- -- 1 -- -- 2 14.52 -- 3 15.25 -- 4 16.01 -- 7505 UCHR TINY TOT SPECIALIST 0 15.80 -- 1 16.59 -- 2 17.42 -- 3 18.30 -- 4 19.21 -- 5155 UCHR TRAFFIC CONTROL ASSISTANT 0 -- -- 1 -- -- 2 -- -- 3 -- -- 4 15.69 -- 5293 UCHR TRAFFIC OFFICER 0 14.24 -- 1 14.95 -- 2 15.69 -- 3 -- -- 4 -- -- 2021/11/09 City Council Post Agenda Page 175 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 67 of 69 Approved and Adopted: Resolution No. 6187 ACE TRAFFIC SIGNAL & LIGHT TECH I 0 28.75 2,299.97 1 30.19 2,414.97 2 31.70 2,535.72 3 33.28 2,662.50 4 34.95 2,795.63 6185 ACE TRAFFIC SIGNAL & LIGHT TECH II 0 31.62 2,529.97 1 33.21 2,656.46 2 34.87 2,789.29 3 36.61 2,928.74 4 38.44 3,075.19 6181 ACE TRAFFIC SIGNAL & LIGHTING SUPV 0 36.37 2,909.46 1 38.19 3,054.94 2 40.10 3,207.68 3 42.10 3,368.07 4 44.21 3,536.45 5262 ACE TRAINING PROGRAM SPECIALIST 0 26.35 2,107.60 1 27.66 2,212.98 2 29.05 2,323.63 3 30.50 2,439.81 4 32.02 2,561.80 6031 WCE TRANSPORTATION ENGR W CERT 0 48.34 3,866.99 1 50.75 4,060.32 2 53.29 4,263.37 3 55.96 4,476.53 4 58.75 4,700.34 6033 WCE TRANSPORTATION ENGR W/O CERT 0 46.04 3,682.85 1 48.34 3,866.99 2 50.75 4,060.33 3 53.29 4,263.37 4 55.96 4,476.53 6575 ACE TREE TRIMMER 0 24.93 1,994.74 1 26.18 2,094.48 2 27.49 2,199.20 3 28.86 2,309.16 4 30.31 2,424.62 2021/11/09 City Council Post Agenda Page 176 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 68 of 69 Approved and Adopted: Resolution No. 6572 ACE TREE TRIMMER SUPERVISOR 0 34.41 2,752.74 1 36.13 2,890.38 2 37.94 3,034.90 3 39.83 3,186.65 4 41.82 3,345.98 5334 UCHR VET II (HOURLY) 0 47.04 -- 1 49.39 -- 2 51.86 -- 3 54.45 -- 4 57.17 -- 5308 UCHR VETERINARIAN 0 46.77 -- 1 49.11 -- 2 51.57 -- 3 54.15 -- 4 56.85 -- 5322 UCHR VETERINARIAN (PERMITTED) 0 66.13 -- 1 69.44 -- 2 72.91 -- 3 76.56 -- 4 80.39 -- 5331 PROF VETERINARIAN (PERMITTED) 0 57.59 4,607.14 1 60.47 4,837.49 2 63.49 5,079.37 3 66.67 5,333.34 4 70.00 5,600.00 5335 PROF VETERINARIAN I 0 40.90 3,272.11 1 42.95 3,435.72 2 45.09 3,607.50 3 47.35 3,787.87 4 49.72 3,977.27 5333 PROF VETERINARIAN II 0 47.04 3,762.92 1 49.39 3,951.06 2 51.86 4,148.62 3 54.45 4,356.05 4 57.17 4,573.85 2021/11/09 City Council Post Agenda Page 177 of 470 Fiscal Year 2021-2022 Compensation Schedule Effective November 19, 2021 Job BU Description Step Hourly Period Step 0 = Step A, Step 1 = Step B, Step 2 = Step C, Step 3 = Step D, Step 4 = Step E Period rate shown is based on an 80‐hour per pay period, with exception of sworn Fire positions with an A or B designation. Page 69 of 69 Approved and Adopted: Resolution No. 5323 UCHR VETERINARY ASSISTANT 0 19.72 -- 1 20.70 -- 2 21.74 -- 3 22.82 -- 4 23.96 -- 5325 ACE VETERINARY ASSISTANT 0 19.72 1,577.27 1 20.70 1,656.13 2 21.74 1,738.93 3 22.82 1,825.89 4 23.96 1,917.18 7131 ACE VOLUNTEER COORDINATOR 0 21.55 1,724.20 1 22.63 1,810.41 2 23.76 1,900.94 3 24.95 1,995.98 4 26.20 2,095.77 2777 ACE WEBMASTER 0 32.44 2,595.20 1 34.06 2,724.95 2 35.77 2,861.21 3 37.55 3,004.25 4 39.43 3,154.47 Revised August 10, 2021 (Effective July 2, 2021) August 10, 2021 (Effective August 13, 2021) September 14, 2021 (Effective September 10, 2021) October 26, 2021 (Effective November 5, 2021) November 9, 2021 (Effective November 19, 2021) 2021/11/09 City Council Post Agenda Page 178 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE COMPENSATION SCHEDULE AND CLASSIFICATION PLAN TO REFLECT THE ADDITION OF PROPERTY AND EVIDENCE SUPERVISOR WHEREAS, Civil Service Rule 1.02(A), which applies to the City’s classified positions, provides for necessary reviews and changes so that the City’s classification plan is kept current, and that changes in existing classes, the establishment of new classes or the abolition of classes are properly reflected in the classification plan; and WHEREAS, in an effort to address the needs of the Police Department and the City's workforce, the Human Resources Department, in conjunction with the Police Department, is proposing the addition of the following to the City’s Compensation Schedule and Classification Plan: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the addition of the Property and Evidence Supervisor to the City’s Compensation Schedule and Classification Plan. Presented by Approved as to form by Courtney Chase Glen R. Googins Director of Human Resources /Risk Management City Attorney Figure 3. Summary of New Classification Position Title Bargaining Group Bi-Weekly E Step Property and Evidence Supervisor ACE $2,804.99 2021/11/09 City Council Post Agenda Page 179 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2021/22 COMPENSATION SCHEDULE EFFECTIVE NOVEMBER 19, 2021, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5 WHEREAS, California Code of Regulations, Title 2, Section 570.5 requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets certain requirements and be approved by the governing body in accordance with the requirements of the applicable public meeting laws; and WHEREAS, the Fiscal Year 2021-2022 Compensation Schedule ("Compensation Schedule") was approved by the City Council at their meeting of October 26, 2021; and WHEREAS, any changes including but not limited to, across-the-board increases, classification changes and salary adjustments approved subsequent to this date, will be reflected on a revised Compensation Schedule and submitted to Council approval; and WHEREAS, the revised Fiscal Year 2021-2022 Compensation Schedule effective November 19, 2021, will reflect the addition of the Property and Evidence Specialist. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby does adopt, as required by California Code of Regulations Title 2, Section 570.5, the revised Fiscal Year 2021-2022 Compensation Schedule effective November 19, 2021, a copy of which is available in the City Clerk’s Office, to reflect the addition of the Property and Evidence Specialist. Presented by Approved as to form by Courtney Chase Glen R. Googins Director of Human Resources /Risk Management City Attorney 2021/11/09 City Council Post Agenda Page 180 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED MEASURE A PUBLIC SAFETY EXPENDITURE PLAN TO ADD ONE POLICE CAPTAIN, ONE EQUIPMENT MECHANIC, ONE FORENSICS SPECIALIST, THREE PROPERTY & EVIDENCE SPECIALISTS, ONE PROPERTY & EVIDENCE SUPERVISOR AND THREE SENIOR POLICE RECORDS SPECIALISTS AND AMENDING THE FISCAL YEAR 2022 EXPENDITURE BUDGET FOR THE MEASURE A SALES TAX FUND TO FUND SUCH POSITIONS OUT OF MEASURE A AVAILABLE FUND BALANCE WHEREAS, on February 27, 2018 the City Council approved Ordinance 3415 (“Ordinance”) proposing to add Chapter 3.34 to Title 3 of the Chula Vista Municipal Code establishing a one-half cent General Transactions and use Tax to be administered by the California Department of Tax and Fee administration; and WHEREAS, concurrently the City Council adopted a spending plan expressing its intention to expend any new sales tax revenues generated un the Ordinance on public safety (the “Intended Public Safety Expenditure Plan”); and WHEREAS, the Ordinance was placed on the ballot for the June 2018 election as “Measure A,” subject to approval by an affirmative, simple majority vote of the people as required by law; and WHEREAS, on June 5, 2018, the voters of the City of Chula Vista approved Measure A authorizing a one-half cent sales tax on retail sales within the City; and WHEREAS, on October 14, 2021, City staff presented to the Measure A Citizens Oversight Committee (COC) a proposed amendment to the Intended Expenditure Plan to add one (1) Police Captain, one (1) Forensics Specialist, three (3) Property & Evidence Specialists, one (1) Property & Evidence Supervisor and three (3) Senior Police Records Specialists to the authorized staffing of the Police Department, and one (1) Equipment Mechanic to the authorized staffing of the Public Works Department; and WHEREAS, the Measure A COC voted unanimously to recommend City Council approval of the ten positions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it (1) approves the amended Measure A Public Safety Expenditure Plan, in the form presented, to add one Police Captain, one Equipment Mechanic, one Forensics Specialist, three Property & Evidence Specialists, one Property & Evidence Supervisor and three Senior Police 2021/11/09 City Council Post Agenda Page 181 of 470 Resolution No. __________ Page 2 Records Specialists, and (2) amends the Fiscal Year 2022 Expenditure Budget for the Measure A Sales Tax Fund to fund such positions from the Measure A available fund balance. Presented by Approved as to form by Chief Roxana Kennedy Glen R. Googins Police Department City Attorney 2021/11/09 City Council Post Agenda Page 182 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2021/22 BUDGET TO IMPLEMENT APPROVED AMENDMENTS TO THE MEASURE A INTENDED EXPENDITURE PLAN AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) WHEREAS, the City Charter states that at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by the affirmative votes of at least four members; and WHEREAS, staff is recommending $50,094 in expense appropriations to the Public Works Department in the Central Garage Fund and increasing appropriations by $50,094 resulting in no net fiscal impact to the Central Garage Fund; and WHEREAS, staff is recommending $542,672 in expense appropriations to the Measure A Fund that will be funded from available fund balance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby amend the fiscal year 2021/22 budget and approves the following appropriations: Presented by Approved as to form by Chief Roxana Kennedy Glen R. Googins Police Department City Attorney Other Fund Budget Adjustments Summary PERSONNEL OTHER TOTAL TOTAL SERVICES EXPENSES EXPENSE REVENUE NET COST OTHER FUNDS 2018 Measure A Sales Tax (Police Dept.)492,578 25,047 517,625 - 517,625 2018 Measure A Sales Tax (Fire Dept.)- 25,047 25,047 - 25,047 Central Garage Fund (Public Works Dept.)50,094 - 50,094 (50,094) - TOTAL OTHER FUNDS 542,672$ 50,094$ 592,766$ (50,094)$ 542,672$ 2021/11/09 City Council Post Agenda Page 183 of 470 M E M O R A N D U M DATE: November 5, 2021 FROM: Jonathan Alegre, Administrative Services Manager SUBJECT: Correction to Compensation Schedule Effective Date (Item 21-0202) It has come to staff’s attention that the effective date of the compensation schedule in the item’s recommended action and reference to attachments incorrectly reflects January 14, 2022. The date in the resolution and compensation schedule correctly indicate the effective date of November 19, 2021. Council’s action on this item would include approval of the revised Fiscal Year 2021-2022 Compensation Schedule effective November 19, 2021. 2021/11/09 City Council Post Agenda Page 184 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Grant Award: Accept grant from Department of Alcoholic Beverage Control Report Number: 21-0179 Location: No specific geographic location Department: Police Environmental Notice: 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. Recommended Action Adopt a resolution approving agreement with Department of Alcoholic Beverage Control (ABC), accepting $20,000 grant funds and appropriating said funds to the Police Grants Section of the Federal Grants Fund for the ABC – Office of Traffic Safety Grant Program (4/5 Vote Required). SUMMARY The California Department of Alcoholic Beverage Control (ABC) has awarded $20,000 to the Police Department for the ABC – Office of Traffic Safety Grant Program. Funding for this project is provided by the Office of Traffic Safety through the National Highway Traffic Safety Administration. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. 2021/11/09 City Council Post Agenda Page 185 of 470 P a g e | 2 DISCUSSION The Police Department has been awarded $20,000 from the Department of Alcoholic Beverage Control (ABC) to conduct overtime operations, education and outreach to reduce ABC-related violence and disorder in the community. This 11-month project will include undercover ABC violations, concert minor in possession, Minor Decoy, Shoulder Tap, and IMPACT operations. The goal of the Minor Decoy Program is to reduce the number of licensees who sell alcoholic beverages to minors. The Shoulder Tap Program targets adults who furnish alcoholic beverages to minors. IMPACT (Informed Merchants Preventing Alcohol-Related Crime Tendencies) inspections focus on licensee education. As part of the grant acceptance process, the Department of Alcoholic Beverage Control provided its Standard Agreement to be signed by Police Chief Roxana Kennedy upon Council approval. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of this resolution will authorize the Chief of Police to execute the ABC grant agreement and will result in a one-time appropriation of $20,000 to the personnel services category of the Police Grants Section of the Federal Grants Fund. Funding from the National Highway Traffic Safety Administration will completely offset these costs, resulting in no net fiscal impact to the General Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact for accepting these grant funds. ATTACHMENTS Attachment 1: State of California – Department of General Services Standard Agreement # 22-OTS03 between the Department of Alcoholic Beverage Control and Chula Vista Police Department. Staff Contact: Jonathan Alegre, Police Department 2021/11/09 City Council Post Agenda Page 186 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL, ACCEPTING GRANT FUNDS AND APPROPRIATING FUNDS THEREFOR WHEREAS, the Police Department received notice of grant award in the amount of $20,000 from the Department of Alcoholic Beverage Control (ABC); and WHEREAS, grant funds will be used to conduct overtime operations, education and outreach to reduce ABC-related violence and disorder in the community; and WHEREAS, the grant funds administered the Department of Alcoholic Beverage Control, and provided by the Office of Traffic Safety through the National Highway Traffic Safety Administration, will completely offset the total costs of this program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the State of California Standard Agreement # 22-OTS-03, between the City and Department of Alcoholic Beverage Control, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Chief of Police to execute same. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it accepts $20,000 from the Department of Alcoholic Beverage Control and appropriates $20,000 to personnel services category of the Police Grants Section of the Federal Grants Fund. Presented by Roxana Kennedy Chief of Police Approved as to form by Glen R. Googins City Attorney 2021/11/09 City Council Post Agenda Page 187 of 470 SCO ID: 2100-220TSO3 ST ATE OF CALIFORNIA- DEPARTMENT OF GENERAL SERVICES ST ANDARD AGREEMENT STD 213 (Rev. 04/2020) L This Agreement is entered into between the Contracting Agency and the Contractor named below: AGREEMENT NUMBER 22-OTSO3 PURCHASING AUTHORITY NUMBER (If Applicable) ABC-2100 CONTRACTING AGENCY NAME Department of Alcoholic Beverage Control CONTRACTOR NAME City of Chula Vista through the Chula Vista Police Department 2. The term of this Agreement is: ST ART DATE nr:tnhp.rl 2n')1 THROUGH END [)ATE Aiiniist 31 )n')9 3. The maximum amount of this Agreement is: $2n nnn nn Twpnfv thniisand dnllars anri no r:pn+s 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement. Exhibits Title Pages Exhibit A Scope of Work 3 Exhibit B Budget Detail and Payment Provisions 1 I Exhibit C " I General Terms and Conditions (GTC 04/2017)4 + Exhibit D Special Terms and Conditions 1 Item:; shown with an asterisk ("), are hereby incorporated by reference and made part of this agreement as if attached hereto. Thesedocumentscan beviewed at https://www.dgs.ca.gov/OLS/Resources Page 1 of 22021/11/09 City Council Post Agenda Page 188 of 470 SCO ID: 2100-220TSO3 ST ATE OF CALIFORNIA- DEPARTMENT OF GENERAL SERVICES AGREEMENT NUMBER 22-OTSO3 PURCHASING AUTHORITY NUMBER (If Applicable) ABC-2100 STANDARD AGREEMENT STD 213 (Rev. 04/2020) IN WITNESSWHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BYTHE PARTIES HERETO. CONTRACTOR CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.) (:itv of ('.hi il;q l/istq thrni inh fhp ('.hi ilq l/isfq Pnlirpi r)pnqrtmpnt CONTRACTOR BUSINESS ADDRESS 315 Fourth Ave., MS P-200 CITY Chula Vista STATE CA ZIP gigio PRINTED NAME OF PERSON SIGNING Roxana Kennedy TITLE Chief of Police CONTRACTOR AUTHORIZED SIGNATURE DATE SIGNED ST ATE OF CALIFORNIA CONTRACTING AGENCY NAME npnartmpin+ nf Alr:nhnlir. Rpvpranp (:nntrnl CONTRACTING AGENCY ADDRESS 3927 Lennane Drive, Suite 100 CITY Sacramento STATE CA ZIP 95834 PRINTED NAME OF PERSON SIGNING Pattye Nelson TITLE Chief, Business Management Branch CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL EXEMPTION (If Applicabie) Page 1 of 22021/11/09 City Council Post Agenda Page 189 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 1 of 3 EXHIBIT A SCOPE OF WORK Purpose and Description of Services Contractor agrees to implement the Department of Alcoholic Beverage Control programs as listed: o Minor Decoy operations - designed to educate and deter licensed locations from selling/furnishing alcohol to minors and shall be conducted at both "On-Sale" and "Off-Sale" licensed establishments within the operation period of the grant. o Shoulder Tap operations - used to detect and deter adult furnishers outside of a licensed business and shall be performed at "Off-Sale" licensed locations to apprehend adults that are unaffiliated with the licensed businesses who are purchasing alcohol for minors outside of the stores within the operation period of the grant. o Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) Inspections - primary goal is to educate licensees on alcohol related laws to help reduce alcohol-related crime in and around licensed premises. Contractor agrees to conduct visits and inspections of licensed premises identifying areas of non-compliance at "On-Sale" and "Off-Sale" licensed locations within the operation period of the grant. The project is targeted to reduce underage drinking and the resultant DUI driving injuries and fatalities, and/or property damages, reduce youth access to alcoholic beverages through the education of licensee, enforcement intervention and the impressions of omnipresence of law enforcement. In addition, contractor agrees to the following goals: o Raise public awareness that selling, serving and/or furnishing alcoholic beverages to individuals under twenty-one years old is a criminal violation that will be prosecuted by local city and district attorneys. o Establish and implement a coordinated effort between contractor and ABC, and acknowledges no operations will be conducted until after the contractor's representative has completed training conducted by ABC. o Issue press releases as follows: 1. To announce the start of the program; 2. At the conclusion of each Minor Decoy Operation held (to announce the number of licensed premises who sold to the minor decoy) 3. At the conclusion of each Shoulder Tap Operation held (to announce the number of adults arrested for purchasing alcoholic beverages for the decoy). 4. At the conclusion of each IMPACT operation held o Fax(916)419-2599oremaileachpressreleasetotheDepartment'sPubliclnformationOfficer (pio(,abc.ca.gov) as soon as it is released. 2021/11/09 City Council Post Agenda Page 190 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 2 of 3 o In all press releases, in addition to any credits the agency wishes to give, will include the following statement: "This project is part of the Department of Alcoholic Beverage Control's Minor Decoy/Shoulder Tap Grant Project, funded by the California Office of Traffic Safety through the National Highway Traffic Safety Administration." o Complete and submit bi-monthly reports, in a format designed by the Department of Alcoholic Beverage Control due no later than 15 days after operations conducted: On or before January 17, 2022 (with results of operations October, November & December 2021 ) On or before March 15, 2022 (with results of operations January & February 2022) On or before May 16, 2022 (with results of operations March & April 2022) On or before July 15, 2022 (with results of operations May & June 2022) On or before September 15, 2022 (with results of operations July & August 2022) o Submit an Executive Summary as part of the final report due on or before September 15, 2022. The summary shall contain the following: 1. An evaluation statement concerning the end product and cost benefits; and a listing of recommended and/or adopted policy or procedure changes, if any, occurring as a result of the project 2. Project personnel identifying the key personnel who worked on the project, together with their job classification, and a brief description of their contribution 3. Problems - describe any operational or cost problems that were encountered in project implementation. If known, state alternative methods that would have avoided the problem and increased the effectiveness of the project. 4. Results - describe the results of the project in terms of meeting the original objectives as stated in the project agreement. Also, describe the results in terms of how they will be specifically applied for future improvement of the agency's continuing activities relating to alcohol problem prevention and enforcement. Where possible, describe estimated savings resulting from implementing project results. 5. Disclaimer - The final report shall include the following: "The opinions, findinqs, and conclusions expressed in this publication are those of the authors and not necessarily those of the State of California, Business, Consumer Services and Housinq Aqency, or the Department ofAlcoholic Beverage Control." 6. Documentation - Attach any relevant documents developed. Examples are new or revised forms, diagrams, management reports, photos, coding manuals, instructional manuals, etc. Contract Term The operation period of the grant is October 1, 2021 through August 31, 2022. Project Representatives The project representatives during the term of this agreement will be: 2021/11/09 City Council Post Agenda Page 191 of 470 Chula Vista Police Department Ginger Van Houten 315 Fourth Ave., MS P-200 Chula Vista, CA 9'l910 (619) 409-5852 qvanhouten@chulavistapd.orq Direct all fiscal inquiries to: Chula Vista Police Department Bryant Shimizu 315 Fourth Ave., MS P-200 Chula Vista, CA 91910 (619) 409-5467 bshimizu@chulavistapd.orq Agreement Number: 22-OTSO3 Chula Vista Police Department Page 3 of 3 Department of Alcoholic Beverage Control Diana Fouts-Guter, Grant Coordinator 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 (916) 928-9807 Diana.fouts-quter(Qabc.ca.qov Department of Alcoholic Beverage Control Kristine Okino, Fiscal Grant Analyst 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 (916) 419-2572 Kristine.okino@abc.ca.qov 2021/11/09 City Council Post Agenda Page 192 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 1 of 1 EXHIBIT B BUDGET DET AIL AND PAYMENT PROVISIONS Invoicing and Payment * For services satisfactorily rendered and upon receipt and approval of the invoice, the Department of Alcoholic Beverage Control agrees to pay bi-monthly for approved reimbursable costs per the Budget Detail of personnel overtime and benefits (actual cost). @ Invoices shall clearly reference this contract number (22-OTSO3) and must not exceed the contract total authorized amount of $20,000.00. Invoices are to be submitted on a bi-monthly basis, on the prescribed form designed by the Department of Alcoholic Beverage Control. Submit to:Department of Alcoholic Beverage Control Attn: Kristine Okino, Grants Fiscal Analyst 3927 Lennane Drive, Suite 100 Sacramento, California 95834 * This agreement is for overtime compensation only. * Payment shall be made in arrears within 45 days from the receipt of an undisputed invoice. * Contractor understands in order to be eligible for reimbursement; cost must be incurred on or after the effective date of the project, October 1, 2021 and on or before the project termination date, August 31, 2022. * Contractor understands any other costs incurred by contractor, other than attendance at initial training and/or personnel overtime and benefits as authorized above, in the peformance of this agreement are the sole responsibility of contractor. Budget Contingency Clause * It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this agreement does not appropriate sufficient funds for the program, this agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to contractor or to furnish any other considerations under this agreement and contractor shall not be obligated to perform any provisions of this agreement. * If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this agreement with no liability occurring to the State, or offer an agreement amendment to contractor to reflect the reduced amount. Prompt Payment Clause * Payment will be made in accordance with, and within the time specified in, Government Code Chapter 4.5, commencing with Section 927. 2021/11/09 City Council Post Agenda Page 193 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 1 of 4 EXHIBIT C GENERAL TERMS AND CONDITIONS 1. APPROVAL: This agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has beenobtained. 2. AMENDMENT: No amendment or variation of the terms of this agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in the agreement is binding on any of the parties. 3. ASSIGNMENT:Thisagreementisnotassignablebythecontractor,eitherinwholeorin part, without the consent of the State in the form of a formal written amendment. 4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this agreement. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896). 5. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by contractor in the performance of this agreement. 6. DISPUTES: Contractor shall continue with the responsibilities under this agreement during any dispute. 7. TERMINATION FOR CAUSE: The State may terminate this agreement and be relieved of any payments should the contractor fail to perform the requirements of this agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the contractor under this agreement and the balance, if any, shall be paid to the contractor upon demand. 8. INDEPENDENT CONTRACTOR; Contractor, and the agents and employees of contractor, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of theState. 9. RECYCLING CERTIFICATION: The contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. 2021/11/09 City Council Post Agenda Page 194 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 2 of 4 With respect to printer or duplication cartridges that comply with the requirements of Section 121 56(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code §12205). 10. NON-DISCRIMINATION CLAUSE: During the performance of this agreement, contractor and its subcontractors shall not deny the contract's benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Contractor shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §1 1000 et seq.), the provisions of Article 9.5, Chapter 1, Part 'l, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the awarding state agency to implement such article. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours' notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2,§11105.) Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the agreement. 'I 1. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this agreement by this reference as if attached hereto. 12. TIMELINESS: Time is of the essence in this agreement. 13. COMPENSATION: The consideration to be paid contractor, as provided herein, shall be in compensation for all of contractor's expenses incurred in the performance hereof, includinq travel, per diem, and taxes, unless otherwise expressly so provided. 14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California. 15. ANTITRUST CLAIMS: The contractor by siqninq this aqreement hereby certifies that if these services or qoods are obtained by means of a competitive bid, the contractor shall comply with the requirements of the Government Codes Sections set out below. a. The Government Code Chapter on Antitrust claims contains thefollowing definitions: 1 ) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code. 2021/11/09 City Council Post Agenda Page 195 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 3 of 4 2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 u.s.c. Sec. 4 5) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. C. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554. 16. CHILD SUPPORT COMPLIANCE ACT: For any agreement in excess of $1 oo,ooo, the contractor acknowledges in accordance with Public Contract Code 7110, that: a. The contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family suppof enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b. Thecontractor,tothebestofitsknowledgeisfullycomplyingwiththeearningsassignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 17. UNENFORCEABLE PROVISION: In the event that any provision of this agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this agreement have force and effect and shall not be affected thereby. 18. PRIORITY HIRING CONSIDERATIONS: If this contract includes services in excess of $200,000, the contractor shall give priority consideration in filling vacancies in positions funded by the contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353. 19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS: 2021/11/09 City Council Post Agenda Page 196 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 4 of 4 a. If for this contract contractor made a commitment to achieve small business participation, then contractor must within 60 days of receiving final payment under this contract (or within such other time period as may be specified elsewhere in this contract) report to the awarding department the actual percentage of small business participation that was achieved. (Govt. Code §14841.) b. If for this contract contractor made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then contractor must within 60 days of receiving final payment under this contract (or within such other time period as may be specified elsewhere in this contract) certify in a report to the awarding department: (1 ) the total amount the prime contractor received under the contract; (2) the name and address of the DVBE(s) that participated in the performance of the contract; (3) the amount each DVBE received from the prime contractor; (4) that all payments under the contract have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.) 20. LOSS LEADER: If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a "loss leader" as defined in Section 17030 of the Business and Professions Code. (PCC 1 0344(e).) 2021/11/09 City Council Post Agenda Page 197 of 470 Agreement Number: 22-OTSO3 Chula Vista Police Department Page 1 of 1 EXHIBIT D SPECIAL TERMS AND CONDITIONS Disputes: Any disputes concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision in writing and mail or otherwise furnish a copy thereof to the contractor. The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the contractor mails or otherwise furnishes to the State a written appeal addressed to the Director of the Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. Cancellation/Termination: This agreement may be cancelled or terminated without cause by either party by giving thirty (30) calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation and include any final performance and/or payment/invoicing instructions/requirements. No penalty shall accrue to either party because of contract termination. Contractor Certifications: By signing this agreement, contractor certifies compliance with the provisions of CCC 04/2017, Standard Contractor Certification Clauses. This document may be viewed at: https://www.dqs.ca.qov/OLS/Resources/Paqe-Content/Office-of-Leqal-Services-Resources-List Folder/Standard-Contract-Lanquaqe If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity. 2021/11/09 City Council Post Agenda Page 198 of 470 Chula Vista Solaris Villam “"The greatness of a community is most accurately measured by the compassionate actions of its members." – Coretta Scott King” Joint Venture: ●St. James Global Ministries ●Green Seed Investments. ●Ivanka Design & Construction ●Sustainable Green Tech Design Co. Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 199 of 470 Team St.James Global Ministry Community Foundation. (Financing) Green Seed Investments. (Oversight/Development/ Consulting) Ivanka Design Co. Sustainable Green Tech Design Inc. (Logistics/Management/Legal Guid.) "There is no power for change greater than a community discovering what it cares about." – Margaret J. Wheatley GSI Jamie Griffin PHD,Founder Edgar F. Garcia, Founder Arthur Fabello, Lead Electrical Engineer Georgio Brambila, President & Lead Architect Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 200 of 470 Problems to solve 1 Reducing carbon footprint -Integrating technological innovations to become a net-positive community. 2 -Reducing Electrical costs to locals (SDGE) -Less rolling blackouts (infrastructure stress/economic costs) -Job Training to improve local/national economic growth via Certification courses into various growing industries(i.e.Solar) 3 - Local job creation through reintegration - Reducing poverty through employment opportunities. 4 Environmental Local+National Economic Growth Job Training Educating -Partnering with local educational Institutions(SWCC) to cross integrate student training & education-advancement for future career growth. FSD Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 201 of 470 Goals To develop a mixed-use communal asset, that offers Job training as well as carbon footprint relief for constituents offering a business asset that offers a tool to grow local constituents that need job resources & training as well as electrical grid costs to reduce grid stress during summers and winter in Chula Vista.. This community center will be a beacon of communal reintegration as well as economic growth through communal collaboration. FSD Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 202 of 470 Phase Planning: Continuing Communal & Economic Growth ➔Phase 1: At least 160 acres will be constructed into a 34 MW solar farm for the local community to reduce close to 5K homes off grid. ➔Phase 2: Partnership with local Education Institution to create a job training & education platform program for locals as well as boot-strap startups. ➔Phase 3: Office Building/Amenities building will offer a mixed used area for parks and communal areas. Basic Structure of a hydroponics type solar sharing system Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 203 of 470 Site Location Chula Vista Municipality. Otay Water District (Owner) *Continuation contingent on OTWD property assessment* <160 Acres (⩰320 Acres)APN: 5851402100 240.0 acres APN: 5950400100 40.0 acres APN: 5950400800 40.0 acres Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 204 of 470 Architecture & Project Element’s Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 205 of 470 Mixed Use Facilities For Communal Growth & Social Collaboration Local examples include: Living Coast Center (J St. Marina) Fault Line Park (East Village San Diego) Cuyamaca College Garden Local Business Incubator Providing Mentorship Local Natural Exhibit’s Fish Hatchery for local lake fishing and species Local Aquaponic into produce Total combined.Video time ≊8 min. Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 206 of 470 Understanding the market Environmental - Land surplus will be adopted for farming as well as mixed-use areas to keep environmental impact as minimal as possible educating the public of local natural plant species. Local Economic Growth -Urban farming as well as solar farming to incentivize local job growth reintegration. Infrastructure & Communal Growth -Less Grid stress means less blackouts and residual local growth. Local poverty rate reduction via reintegration training. Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 207 of 470 Target audience Community Growth & Economic Surplus The scope of this project is to develop an asset for locals, by offering a location that offers job creation through modern technological advances and local educational programs for local & national constituents to local reintegration programs. Creation of this training program and communal areas will assist local development as well as personal growth skills to become a fully productive member of society via public access events & facilities. Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 208 of 470 Process 0 1 Planning/Collaboration 0 2 Logistics 0 3 Execution Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 209 of 470 Deliverables *Otay Water Land Parcels :150 acres equates to 34 Megawatts or enough to power 1000 homes with 34,000 Kwh. = 225K Annual ROI@ 2 cents/ Kwh(Revenue) *Potential alternate source of income can be added due to potential urban farming with surplus land via aquaponics methods. Consectetur nec laborePlanting Growth & Value Population/Households 78K Target Grid relief <5K “Alone, we can do so little; together, we can do so much” – Helen Keller Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 210 of 470 Vision 2014 Project Inception Soft research established due diligence factors to situate the feasibility of a solar farm and communal centers DUE to CLOSURE & ABANDONMENT of a local golf course seeking to be repurposed. 2019 Logistical Framework/ Planning Due diligence to establish value and technicalities 2019 Local Government Reach out & Contingencies Public and local government outreach to establish public reception and support. 2020 Official Groundbreaking Financing secured and financial plans have been set up to quarterly execution plans to establish a streamlined installation process. 2021 Project Completion Solar farm is activated and public areas open to assist in Chula Vista’s net-positive goal. Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 211 of 470 Thank you. “One of the marvelous things about community is that it enables us to welcome and help people in a way we couldn't as individuals.” – Jean Vanier Public Comments - Garcia 2021/11/09 City Council Post Agenda Page 212 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Measure A Citizens’ Oversight Committee: Presentation of Annual Report Covering Reporting Period of July 1, 2019 through June 30, 2020 Report Number: 21-0177 Location: No specific geographic location Department: Finance, Fire & Police Environmental Notice: 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. Recommended Action Council hear the presentation and accept the report. SUMMARY Presentation of the Measure A Annual Report covering the audited revenues and expenditures for the period of July 1, 2019 through June 30, 2020. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Council hear and accept the annual Measure A report presented by Citizens’ Oversight Committee Chair Stucky. DISCUSSION 2021/11/09 City Council Post Agenda Page 213 of 470 P a g e | 2 The Measure A Citizens’ Oversight Committee has reviewed and accepted the FY20 Measure A Audit findings. The findings comply with the terms of the Measure A ordinance and funds were spent in accordance with the Measure A Spending Plan. The Committee also approved the FY20 Annual Report. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current-year fiscal impact. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS Attachment 1: FY20 Measure A Annual Report Staff Contact: Edward Prendell, Finance Department Jonathan Alegre, Police Department 2021/11/09 City Council Post Agenda Page 214 of 470 Page 1 Annual Report of the Measure A Citizens Oversight Committee Fiscal Year 2019‐20 Measure A Background On June 5, 2018, Chula Vista voters passed Measure A, the half-cent sales tax measure to fund public safety staffing and services. The new tax allows the Chula Vista Fire and Police Departments to provide faster responses to 9-1-1 emergency calls, increase neighborhood police patrols, reduce gang and drug-related crimes, address homelessness, and improve firefighter, paramedic and emergency medical response times. The tax took effect on October 1, 2018, and brought Chula Vista’s tax rate to 8.75 percent. Citizens Oversight Committee As stipulated by the City of Chula Vista Municipal Code Chapter 2.63, the Measure A Citizens' Oversight Committee ("COC") was created for the purpose of providing citizens’ oversight in connection with expenditures of tax revenues generated by Measure A. The function of the COC is to review and report on City compliance with the provisions of Measure A, particularly with respect to the City’s accounting and expenditure of Measure A revenues. The Measure A COC held its first meeting on September 26, 2018, and now meets quarterly on the second Thursday of January, April, July and October. The Measure A COC is composed of twelve members appointed to four-year terms. All terms expire June 30th on the year listed below. The COC members as of 6/30/2020 are: Member Appointment Criteria Term Expiring David Stucky (Vice Chair) District 1 Rep. 2022 Pedro Anaya District 2 Rep. 2021 Heather Rubio District 3 Rep. 2021 John Volland District 4 Rep. 2022 Francisco Escobedo Chula Vista Chamber of Commerce Rep. 2023 David Martinez (Chair) Chula Vista Police Officers Association Rep. 2024 Darrell Roberts Chula Vista International Association of Fire Fighters Rep. 2021 Nicole Hobson Association of Chula Vista Employees Rep. 2024 Raymundo Alatorre Growth Management Oversight Commission Rep. 2023 Manolo Guillen Chula Vista Fire Chief Rep. 2022 Gary Ficacci Chula Vista Police Chief Rep. 2023 Lynnette Tessitore Chula Vista Mid/Managers/Professional Association Rep. 2024 The specific duties of the COC are as follows: 1. Review and comment on each year's: (1) Finance Department Report (as defined in CVMC section 3.34.160.A); (2) Measure A Spending Plan (as defined in CVMC section 3.34.160.B); and (3) Annual Independent Auditor’s Report (as defined in CVMC section 3.34.160.C). 2021/11/09 City Council Post Agenda Page 215 of 470 Page 2 2. Make determinations as necessary and appropriate regarding City compliance with Measure A requirements. 3. Work with City staff to identify and apply "best practices" for tracking and reporting on Measure A revenues and expenditures relative to other Public Safety Department revenues and expenditures. 4. Prepare an annual report regarding the Finance Department Report for presentation to the City Council at a public meeting. Highlights of Measure A Activities during Fiscal Year 2019/2020: • Measure A COC held five meetings between July 2019 and June 2020. The meeting held in May 2020 and June 2020 were via teleconference per Emergency Order 002-B-2020. • Fire Captain Ewert presented an update on the development of a new Measure A website. This new website will streamline and have more relevant information of what Measure A COC is doing now. • Commission approved the proposed amendments to the Measure A intended Expenditure Plan to add two Digital Forensic Technician positions in Fiscal Year 2019/2020. • Commission approved the proposed Ten-Year Spending plan for Fiscal Year 2019/2020. • Police Captain Sallee proposed moving up three civilian positions that are in the original Measure A COC Expenditure Plan from Fiscal Year 2020/2021 to Fiscal Year 2019/2020. Re- classify one Police Agent to Police Sergeant and amend the revenue and expenditure budget in Fiscal Year 2019/2020. Commission moved to approve proposed amendments and forward to council. • Fire Chief Geering proposed amendments to the Measure A public safety expenditure plan to add three firefighters for the Millenia Fire Station, accept reimbursements from the FEMA Safer Grant, plan for the restructuring of the squad staffing model to allow for the expansion on 4.0 staffing and amend the Revenue and Expenditure budget in Fiscal Year 2019/2020. Commission approved the proposed amendments. • Police Department proposed amendments to the Measure A Public Safety Plan to add one Police Agent and three Peace Officers and amend the revenue and expenditure budget in fiscal Year 2019/2020 to combat illegal cannabis operations. Commission approved the staff report and recommend to council for approval. • City Attorney’s office proposed amendments to the Measure A Public Safety Expenditure Plan to move the Criminal Prosecutor position out the overhead and into the Neighborhood Protection Unit component of the plan, adding the positions of paralegal and investigator. The Committee voted 4-2 to approve the City Attorney’s proposal, however 6 affirmative votes are required for official Committee action; therefore, no official action was taken. • Commission approved the proposed Measure A Ten-Year Spending Plan and Spending Plan for Fiscal Year 2020/2021 and determined their compliance with Measure A requirements. Board/Commission comments or recommendations to Council: • Chief Geering and Deputy Fire Chief Muns proposed a recommendation to city council for a one-time loan of Measure A funds for startup costs for Fire Department Ambulance Based Transport. Commission approved the proposed recommendation. 2021/11/09 City Council Post Agenda Page 216 of 470 Page 3 POLICE DEPARTMENT STAFFING PLAN AS OF 7/1/2019 Position FY 2018‐ 19 FY 2019‐ 20 FY 2020‐ 21 FY 2021‐ 22 FY 2022‐ 23 TOTAL FTE Police Sergeant 2.0 2.0 1.0 5.0 Police Agent 1.0 2.0 3.0 2.0 8.0 Peace Officer 4.0 3.0 5.0 5.0 1.0 18.0 TOTAL SWORN 5.0 7.0 10.0 8.0 1.0 31.0 Civilian Background Investigator 1.0 1.0 Community Services Officer 2.0 2.0 Police Comm Systems Manager 1.0 1.0 Police Dispatcher 2.0 3.0 2.0 7.0 Sr. Police Technology Specialist 1.0 1.0 TOTAL CIVILIAN 4.0 5.0 3.0 0.0 0.0 12.0 TOTAL POLICE POSITIONS 9.0 12.0 13.0 8.0 1.0 43.0 POLICE DEPARTMENT STAFFING PLAN AS OF 6/30/2020 Staff changes highlighted in yellow Position FY 2018‐ 19 FY 2019‐ 20 FY 2020‐ 21 FY 2021‐ 22 FY 2022‐ 23 TOTAL FTE Police Sergeant 3.0 2.0 1.0 6.0 Police Agent 1.0 2.0 3.0 2.0 8.0 Peace Officer 4.0 6.0 5.0 5.0 1.0 21.0 TOTAL SWORN 5.0 11.0 10.0 8.0 1.0 35.0 Civilian Background Investigator 1.0 1.0 Community Services Officer 2.0 2.0 Digital Forensics Technician 2.0 2.0 Police Comm Systems Manager 1.0 1.0 Police Dispatcher 2.0 5.0 7.0 Sr. Police Technology Specialist 1.0 1.0 TOTAL CIVILIAN 4.0 10.0 0.0 0.0 0.0 14.0 TOTAL POLICE POSITIONS 9.0 21.0 10.0 8.0 1.0 49.0 2021/11/09 City Council Post Agenda Page 217 of 470 Page 4 FIRE DEPARTMENT STAFFING PLAN AS OF 7/1/2019 FIRE DEPARTMENT STAFFING PLAN AS OF 6/30/2020 Staff changes highlighted in yellow 2021/11/09 City Council Post Agenda Page 218 of 470 Page 5 Audited Statement of Revenues, Expenditures and Changes in Fund Balance June 30, 2020 Police Department Fund Balance Police Fund Balance as of 7/1/2019 $6,492,354 1/2 cent Sales Tax Revenue $10,005,247 CARES Act/FEMA Funding $4,510 Police Revenue Total $10,009,757 Personnel Expenses $2,593,434 Supplies & Services $110,572 Police Vehicles, Outfitting, Maint., Fuel, etc. $118,739 City Support Staff (IT, Finance, HR, City Attorney, etc) $375,197 Police Expenditure Total $3,197,943 Police Fund Balance as of 6/30/2020 $13,304,169 Fire Department Fund Balance Fire Fund Balance as of 7/1/2019 $4,810,856 1/2 cent Sales Tax Revenue $10,114,409 FEMA SAFER Grant Reimbursement $82,405 Fire Revenue Total $10,196,813 Personnel Expenses $4,439,998 Supplies & Services $389,407 Fire Vehicles, Outfitting, Maint., Fuel, etc. $921,964 Transfers Out (Vehicle Replacement Fund) $218,942 City Support Staff (IT, Finance, HR, City Attorney, etc) $375,197 Fire Expenditure Total $6,345,508 Fire Fund Balance as of 6/30/2020 $8,662,162 Combined Police and Fire Combined Measure A Fund Balance as of 7/1/2019 $11,303,210 Total Combined Revenues $20,206,571 Total Combined Expenditures $9,543,450 Combined Measure A Fund Balance as of 6/30/2020 $21,966,331 2021/11/09 City Council Post Agenda Page 219 of 470 Page 6 Conclusion The Citizens Oversight Committee notes that this Annual Report refers only to the period from July 1, 2019 to June 30, 2020. This report presents the first full year of collections and expenditures for the Measure A funds. The Citizens Oversight Committee has reviewed the Independent Auditor’s Report on Compliance with Applicable Requirement prepared by the audit firm of Lance, Soll and Lunghard (LSL), the Measure A Spending Plan, and various expenditure and revenue reports prepared by the City staff. In its report dated June 30, 2020, the auditor “did not identify any deficiencies in internal control over compliance…”. Further, it was the auditor’s opinion that “the City complied, in all material respects, with the requirements…” of the 2018 Measure A Sales Tax Fund. We would like to acknowledge City staff for their dedication and support to the COC. They have been responsive as we work to ensure transparency in the reporting of Measure A Funds. Attachment A – Fiscal Year 2019/20 Auditor’s Measure A Report on Compliance Attachment B – Fiscal Year 2019/20 Measure A Financial Report (For Informational Purposes Only) 2021/11/09 City Council Post Agenda Page 220 of 470 CITY OF CHULA VISTA, CALIFORNIA 2018 MEASURE A SALES TAX FUND FOR THE YEAR ENDED JUNE 30, 2020 REPORT ON COMPLIANCE WITH THE PUBLIC SAFETY EXPENDITURE PLAN Attachment A 2021/11/09 City Council Post Agenda Page 221 of 470  &,7<2)&+8/$9,67$&$/,)251,$ 0($685($6$/(67$;)81'  5(325721&203/,$1&(:,7+7+( 38%/,&6$)(7<(;3(1',785(3/$1  )257+(<($5(1'('-81( 2021/11/09 City Council Post Agenda Page 222 of 470  &,7<2)&+8/$9,67$&$/,)251,$  0($685($6$/(67$;)81'  -81(  7$%/(2)&217(176  3DJH 1XPEHU  ,QGHSHQGHQW$XGLWRUV¶5HSRUWRQ&RPSOLDQFHZLWK$SSOLFDEOH5HTXLUHPHQWV DQGRQ,QWHUQDO&RQWURO2YHU&RPSOLDQFH  6FKHGXOHVRI0HDVXUH$6DOHV7D[)XQG  %DODQFH6KHHW  6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFH   2021/11/09 City Council Post Agenda Page 223 of 470 ,1'(3(1'(17$8',7256¶5(325721&203/,$1&(:,7+$33/,&$%/( 5(48,5(0(176$1'21,17(51$/&21752/29(5&203/,$1&(  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI&KXOD9LVWD&DOLIRUQLD  5HSRUWRQ&RPSOLDQFH  :HKDYHDXGLWHGWKHFRPSOLDQFHRIWKH0HDVXUH$6DOHV7D[)XQGRIWKH&LW\RI&KXOD9LVWD &DOLIRUQLD WKH ³&LW\´  ZLWK WKH W\SHV RI FRPSOLDQFH UHTXLUHPHQWV GHVFULEHG LQOrdinance No. 3415 (the Ordinance) DQG WKH Public Safety Expenditure Plan (the Spending Plan) IRU WKH \HDU HQGLQJ -XQH  Management’s Responsibility 0DQDJHPHQWLVUHVSRQVLEOHIRUFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIWKH2UGLQDQFHDQGWKH6SHQGLQJ 3ODQ Auditor’s Responsibility 2XU UHVSRQVLELOLW\ LV WR H[SUHVV DQ RSLQLRQ RQ FRPSOLDQFH ZLWKWKH UHTXLUHPHQWV GHVFULEHG LQ WKH 2UGLQDQFH DQG WKH 6SHQGLQJ 3ODQ EDVHG RQ RXU DXGLW :H FRQGXFWHG RXU DXGLW RI FRPSOLDQFH LQ DFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDWKHVWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ WKHGovernment Auditing Standards LVVXHG E\ WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV7KRVHVWDQGDUGVUHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLWWR REWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUQRQFRPSOLDQFHZLWKWKHW\SHVRIFRPSOLDQFHUHTXLUHPHQWV UHIHUUHGDERYHWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQWKH0HDVXUH$6DOHV7D[)XQGRIWKH &LW\ $Q DXGLW LQFOXGHV H[DPLQLQJ RQ D WHVW EDVLV HYLGHQFH DERXW WKH &LW\¶V FRPSOLDQFH ZLWK WKRVH UHTXLUHPHQWVDQGSHUIRUPLQJVXFKRWKHUSURFHGXUHVDVZHFRQVLGHUHGQHFHVVDU\LQWKHFLUFXPVWDQFHV  :H EHOLHYH WKDW RXU DXGLW SURYLGHV D UHDVRQDEOH EDVLV IRU RXU RSLQLRQ RQ FRPSOLDQFH IRU WKH RIWKH&LW\+RZHYHURXUDXGLWGRHVQRWSURYLGHDOHJDOGHWHUPLQDWLRQRIWKH&LW\¶VFRPSOLDQFHZLWKWKRVH UHTXLUHPHQWV  Opinion ,QRXURSLQLRQWKH&LW\FRPSOLHGLQDOOPDWHULDOUHVSHFWVZLWKWKHUHTXLUHPHQWVUHIHUUHGWRDERYHWKDWDUH DSSOLFDEOHWRWKH0HDVXUH$6DOHV7D[IRUWKH\HDUHQGLQJ-XQH  5HSRUWRQ,QWHUQDO&RQWURORYHU&RPSOLDQFH  0DQDJHPHQWRIWKH&LW\LVUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJHIIHFWLYHLQWHUQDOFRQWURORYHU FRPSOLDQFHZLWKWKHW\SHRIFRPSOLDQFHUHTXLUHPHQWVUHIHUUHGWRDERYH,QSODQQLQJDQGSHUIRUPLQJRXU DXGLW RI FRPSOLDQFH ZH FRQVLGHUHG WKH &LW\¶V LQWHUQDO FRQWURORYHU FRPSOLDQFH ZLWK WKH W\SHV RI UHTXLUHPHQWVWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQWKH&LW\WRGHWHUPLQHWKHDXGLWLQJSURFHGXUHV WKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQFRPSOLDQFHDQGWR WHVWDQGUHSRUWRQLQWHUQDOFRQWUROVRYHUFRPSOLDQFHEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQ WKHHIIHFWLYHQHVVRILQWHUQDOFRQWURORYHUFRPSOLDQFH 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 2021/11/09 City Council Post Agenda Page 224 of 470  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI&KXOD9LVWD&DOLIRUQLD  $FFRUGLQJO\ ZH GR QRW H[SUHVV DQ RSLQLRQ RQ WKH HIIHFWLYHQHVVRI WKH &LW\¶V LQWHUQDO FRQWURO RYHU FRPSOLDQFH  $deficiency in internal control over complianceH[LVWVZKHQWKHGHVLJQRURSHUDWLRQRIDFRQWURORYHU FRPSOLDQFHGRHVQRWDOORZPDQDJHPHQWRUHPSOR\HHVLQWKHQRUPDOFRXUVHRISHUIRUPLQJWKHLUDVVLJQHG IXQFWLRQVWRSUHYHQWRUGHWHFWDQGFRUUHFWQRQFRPSOLDQFHZLWKDW\SHRIFRPSOLDQFHRIWKH2UGLQDQFH DQGWKH6SHQGLQJ3ODQRQDWLPHO\EDVLV$material weakness in internal control over complianceLVD GHILFLHQF\ RU D FRPELQDWLRQ RI GHILFLHQFLHV LQ LQWHUQDOFRQWURO RYHU FRPSOLDQFH VXFK WKDW WKHUH LVD UHDVRQDEOH SRVVLELOLW\ WKDW D PDWHULDO QRQFRPSOLDQFH ZLWK D W\SH RI FRPSOLDQFH UHTXLUHPHQW RI WKH 2UGLQDQFHDQGWKH6SHQGLQJ3ODQZLOOQRWEHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQDWLPHO\EDVLV$ significant deficiency in internal control over compliance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ity Council Post Agenda Page 225 of 470 CITY OF CHULA VISTA, CALIFORNIA Pooled cash and investments 22,401,307$ Total Assets 22,401,307$ Liabilities and Fund Balance: Liabilities: Accounts Payable 46,120$ Accrued Liabilities 388,857 Total Liabilities 434,977 Assigned for Measure A Sales Tax 21,966,330 Total Fund Balance 21,966,330 Total Liabilities and Fund Balance 22,401,307$ Fund Balance: Assets: JUNE 30, 2020 BALANCE SHEET SCHEDULES OF 2018 MEASURE A SALES TAX FUND 32021/11/09 City Council Post Agenda Page 226 of 470 CITY OF CHULA VISTA, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2020 Revenues: Local sales and use tax 20,206,572$ Total Revenues 20,206,572 Expenditures: Public safety 8,292,507 Capital outlay 1,032,001 Other Financing Uses 218,942 Total Expenditures 9,543,450 Net Change in Fund Balance 10,663,122 Fund Balance - Beginning 11,303,208 Fund Balance - Ending 21,966,330$ SCHEDULES OF 2018 MEASURE A SALES TAX FUND 42021/11/09 City Council Post Agenda Page 227 of 470 CITY OF CHULA VISTA 2018 MEASURE A SALES TAX BUDGET OVERVIEW BY DEPARTMENT AND BUDGET CATEGORY FOR THE YEAR ENDED JUNE 30, 2020 Dept/Budget Category Original Budget Transfers/ Adjustments Revised Budget Actual Available Revenue 222 2018 Measure A Sales Tax 14-Police Federal Revenue 0 (4,511)(4,511)(4,510)(1) Transfers In (9,133,000)(872,247)(10,005,247)(10,005,247)(0) 14-Police Total (9,133,000)(876,758)(10,009,758)(10,009,757)(1) 15-Fire Federal Revenue 0 (82,405)(82,405)(82,405)(0) Transfers In (9,133,000)(1,308,326)(10,441,326)(10,114,409)(326,917) 15-Fire Total (9,133,000)(1,390,731)(10,523,731)(10,196,813)(326,918) 222 2018 Measure A Sales Tax Total (18,266,000)(2,267,489)(20,533,489)(20,206,571)(326,918) Revenue Total (18,266,000)(2,267,489)(20,533,489)(20,206,571)(326,918) Expense 222 2018 Measure A Sales Tax 14-Police Personnel Services 3,579,846 633,446 4,213,292 2,593,434 1,619,858 Supplies & Services 315,849 43,730 359,579 110,572 249,006 Other Expenses 342,488 13,762 356,250 375,197 (18,947) Other Capital 165,000 163,029 328,029 118,739 209,290 14-Police Total 4,403,183 853,967 5,257,150 3,197,943 2,059,207 15-Fire Personnel Services 5,761,653 142,721 5,904,374 4,439,998 1,464,376 Supplies & Services 356,360 147,095 503,455 389,407 114,048 Other Expenses 342,488 13,762 356,250 375,197 (18,947) Other Capital 0 779,776 779,776 913,262 (133,486) Internal Service 0 0 0 8,702 (8,702) Transfers Out 218,942 0 218,942 218,942 0 15-Fire Total 6,679,443 1,083,354 7,762,797 6,345,508 1,417,289 222 2018 Measure A Sales Tax Total 11,082,626 1,937,321 13,019,947 9,543,450 3,476,496 Expense Total 11,082,626 1,937,321 13,019,947 9,543,450 3,476,496 Grand Total (7,183,374)(330,168)(7,513,542)(10,663,121)3,149,578 1 of 1 FY20 Measure A_Bgt Category8/11/2021 Attachment B 2021/11/09 City Council Post Agenda Page 228 of 470 2021/11/09 City Council Post Agenda Page 229 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Sustainability Commission: Consideration of Sending a Public Comment to the California Public Utilities Commission Regarding CPUC Net Energy Metering 3.0 Report Number: 21-0222 Location: No specific geographic location Department: Economic Development Environmental Notice: 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. Recommended Action Consider the request of the Sustainability Commission to send a public comment (via resolution or letter) to the California Public Utilities Commission (CPUC) Regarding CPUC Net Energy Metering (NEM) 3.0 SUMMARY Net Energy Metering (NEM) 2.0 details the California Public Utilities Commission (CPUC) tariff rules for solar energy. NEM 2.0 is being updated via NEM 3.0, with a decision date of December 10, 2021. Proposed changes may reduce the viability of and increase the cost of Solar Energy to the public. The Sustainability Commission recommends that the City provide to the CPUC either a resolution or letter supporting policies that keep the use of solar energy viable and affordable to the public. ENVIRONMENTAL REVIEW 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. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The Chula Vista Sustainability Commission supports sending to the CPUC a public comment via resolution as attached to this Staff report. 2021/11/09 City Council Post Agenda Page 230 of 470 P a g e | 2 DISCUSSION Net Energy Metering (NEM) 2.0 is a California Public Utilities Commission (CPUC) regulation that addresses tariffs for solar energy. It impacts the cost and viability of solar energy for the public. NEM 2.0 is being changed via NEM 3.0. (See https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand- side-management/net-energy-metering.). It has been asserted that proposals submitted by utilities (IOU proposal) would reduce the viability of solar energy and increase the cost of solar energy to the public. (See for e.g., https://www.utilitydive.com/news/as-californias-solar-net-metering-battle-goes-to-regulators-a- focus-on-re/606816/ and https://www.hammondclimatesolutions.com/resources/toolkit-net-energy- metering-nem-3-0.) The Chula Vista Sustainability Commission asks that the City Council of Chula Vista adopt/support either a resolution or letter to be sent to the CPUC as a public comment so that the CPUC, it in its rule making capacity regarding NEM 3.0, adopt rules that continue to make solar energy viable and affordable for the public including strengthening NEM to expand access to all households, particularly of low-and-moderate income; expand access to other clean energy technologies that pair with solar, such as batteries; ensure that the solar installations continue to grow in order to meet State and City climate goals; and exclude provisions set forth in the IOU Proposal such has high monthly fixed fees and reducing or eliminating credits for sharing electricity with the power grid. (See for e.g., Attachments 1-5.) The Sustainability Commission has attached to this staff report a draft resolution and draft letter in support of said request for Council’s consideration and adoption. The CPUC is expected to rule on NEM 3.0 on December 10, 2021. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no fiscal impact from this action. ONGOING FISCAL IMPACT There is no fiscal impact from this action. ATTACHMENTS 1. Sustainability Commission memo to Mayor and Council 2. Draft letter 3. Local Government Sustainable Energy Coalition (LGSEC) Public Comment to CPUC re NEM 3.0 4. San Diego Community Power comments Staff Contact: Eric Crockett, Deputy City Manager and Coleen Wisniewski, Environmental Sustainability Manager 2021/11/09 City Council Post Agenda Page 231 of 470 RESOLUTION 2021-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING NET ENERGY METERING 3.0 PROCEEDING BEFORE THE CALIFORNIA PUBLIC UTILITIES COMMISSION WHEREAS, Net Energy Metering (NEM) is designed to support the installation of customer-sited renewable energy generation; and WHEREAS, NEM allows customers to receive bill credits for power generated by their solar system and shared with the power grid and ultimately save money on their utility bills; and WHEREAS, NEM is what has allowed solar to become increasingly accessible to low- and moderate-income households; and WHEREAS, the California Public Utilities Commission (CPUC) has launched a formal proceeding to update the current NEM structure to be introduced in 2022 as NEM 3.0 and a number of parties have submitted their proposal for what they believe NEM 3.0 should look like; and WHEREAS, the California Investor-Owned Utilities (IOUs), Pacific Gas and Electric, San Diego Gas & Electric and Southern California Edison, have submitted a joint proposal (the “IOU Proposal”) that calls for drastic changes to NEM that would make customer-sited renewable energy more expensive, increase the amount of time it takes for customers to pay off their systems, and ground to a halt the installation of distributed solar in California; and WHEREAS, The IOU Proposal would make it impossible for customer-sited renewables to continue to grow sustainably as mandated by law as a result of high monthly fixed fees for all solar installations, and slashing credits customers receive for sharing their excess electricity with the power grid; and WHEREAS, proposals submitted to CPUC by Protect Our Communities Foundation, California Solar & Storage Association, Vote Solar, GRID Alternatives, Solar Energy Industries Association, and others not only would encourage new solar adoption but also include additional subsidies for low-income customers; and WHEREAS, California cannot meet its clean energy targets in time with utility scale solar alone and needs to triple the amount of rooftop solar, as reported by the California Energy Commission 2021 SB 100 Joint Agency Report Summary; and WHEREAS, the clean tech industry provides over $8.2 billion in economic benefits, as reported by Cleantech San Diego; and WHEREAS, the San Diego County rooftop solar industry provides over 9,000 jobs to the region, as reported by the Solar Foundation Solar Jobs Census; and 2021/11/09 City Council Post Agenda Page 232 of 470 WHEREAS, protecting rooftop solar and expanding access to rooftop solar in communities of concern will help California move toward 100 percent clean energy, lessen the impacts of the climate crisis, and reduce climate injustices from dirty energy; and WHEREAS, we are in a climate crisis and need to make the transition to clean energy more accessible. NOW, THEREFORE, the City Council of the City of Chula Vista, California, does resolve as follows: 1. That the City Council supports protecting and expanding rooftop solar via a strong succeeding NEM tariff and expanding clean energy access by making it easier, not harder, for people to adopt rooftop solar and energy storage in order to meet California's ambitious clean energy targets and deploy solar in all communities and households, particularly those struggling to pay for electricity; and 2. That the City Council: (a) expresses its support for the items as stated in numbered paragraph 1 immediately above; and (b) urges the CPUC to: (i) strengthen NEM to expand access to all households, particularly of low-and-moderate income; (ii) expand access to other clean energy technologies that pair with solar, such as batteries; (iii) ensure that the solar installations continue to grow in order to meet State and City climate goals; and (iv) exclude provisions set forth in the IOU Proposal such has high monthly fixed fees and reducing or eliminating credits for sharing electricity with the power grid. Presented by Approved as to form by Tina Mathias, Chair Glen R. Googins Chula Vista Sustainability Commission City Attorney 2021/11/09 City Council Post Agenda Page 233 of 470 November 9, 2021 TO: Honorable Mayor and Council FROM: Sustainability Commission RE: Recommendation to Support a Solar Friendly Net Energy Metering 3.0 Policy Dear Honorable Mayor and Council: Net Energy Metering (NEM) 3.0 is currently under review by the California Public Utilities Commission and will impact the future of solar in California. The City of Chula Vista’s Sustainability Commission recommends that the City Council issue a resolution in support of a strong solar-positive NEM 3.0 policy to reflect the City of Chula Vista’s sustainable energy goals stated in its Climate Action Plan and reflected in memberships in the Local Government Sustainable Energy Coalition and San Diego Community Power. The current policy, NEM 2.0, encourages the installation of local rooftop solar by sufficiently reimbursing customers for energy generated and returned to the grid. NEM 2.0 encouraged significant investment in local solar and, more recently, energy storage. Residents and businesses in Chula Vista have installed 84,468 kW of rooftop solar. Various proposed NEM 3.0 policies would add high upfront fees, reduce the export compensation fees, and ultimately increase the amount of time required for customers to pay off their systems. Consequently, this will lead to a decline in new solar installations and reduction in valuable, local, energy efficiency while increasing fossil fuel consumption. Said results will catalyze climate social injustice and accelerate the climate crisis. What is more, some proposed NEM 3.0 versions change the rate structure for existing solar customers to yield lower investment returns for residents and businesses. Therefore, the Sustainability Commission believes that the tenets presented in the attached letters from the Local Government Sustainable Energy Coalition and San Diego Community Power provide a strong foundation for continued solar growth for Chula Vista. With significant and expanding amounts of solar, access to clean energy programs can be made available to all customer groups to ameliorate climate social injustice. A solar-friendly NEM 3.0 policy should be supported by the City of Chula Vista, via resolution or letter of support. NEM 3.0 should protect existing solar customers, encourage local development of energy sources, reduce construction of expensive and inefficient distribution systems, promote battery backup and associated clean technologies, and provide solar access to low-income communities currently excluded from participation. Finally, installation of local rooftop solar promises a positive economic impact for Chula Vista by providing local jobs. Sincerely, Tina Mathias, Chair Sustainability Commission, City of Chula Vista CC: Maria Kachadoorian, City Manager Eric Crockett, Assistant City Manager Att. 2021/11/09 City Council Post Agenda Page 234 of 470 California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 To whom it may concern, On behalf of the City of Chula Vista via its City Council and its Sustainability Commission, we hereby submit this letter as public comment to the California Public Utilities Commission (CPUC) with regard to proposed changes to Net Energy Metering 2.0 (NEM 2.0) via NEM 3.0. The City of Chula Vista is a City of approximately 275,000 residents. The City is very supportive of affordable residential solar energy use. Solar energy provides jobs to our community, reduces expenses for our residents, and protects the environment. As part of the NEM update process, several competing proposals have been made. The City and its Sustainability Commission would ask that the CPUC adopt principles that keep solar energy viable and affordable for the public. The Local Government Sustainable Energy Coalition (LGSEC), which represents 14 cities and 23 counties and which the City of Chula Vista is a member, has submitted a public comment with specific proposals on how to keep solar energy affordable for the public and we are supportive. In addition, San Diego Community Power, of which Chula Vista is also a member, has submitted comments that we also support. To further assist in the discussion on revising NEM and provide overall NEM policy goals we recommend the following:  NEM should be strengthened to expand access to all households, particularly of low-and- moderate income;  NEM should expand access to other clean energy technologies that pair with solar, such as batteries;  NEM should ensure that the solar installations continue to grow in order to meet State and City climate goals; and;  NEM should exclude provisions set forth in the IOU Proposal such as high monthly fixed fees and reducing or eliminating credits for sharing electricity with the power grid. The above recommendations will keep solar energy viable and affordable for the public. Thank you for your consideration. Respectfully submitted, NAME TITLE 2021/11/09 City Council Post Agenda Page 235 of 470 To whom it concerns, The Local Government Sustainable Energy Coalition (LGSEC) is submitting public comments for the Order Instituting Rulemaking to Revisit Net Energy Metering Tariffs Pursuant to Decision 16-01-044 and to Address Other Issues Related to Net Energy Metering, R.20-08-020. LGSEC is submitting comments via email because the comments exceeded the 3900 character limit to publish through the online form. We are comfortable with these comments being publicly posted to the proceeding website. If there are any follow up questions please email regfilings@lgsec.org. Submitted by: Steven Moss Consultant on behalf of Local Government Sustainable Energy Coalition 296 Liberty Street San Francisco, CA 94114 (415) 643-9578 steven@moss.net Local Government Sustainable Energy Coalition Public Comment The Local Government Sustainable Energy Coalition (LGSEC) represents 14 cities and 23 counties, jurisdictions that govern nearly three-quarters of the state’s population and constitute two-thirds of California’s electricity demands. Deeply connected to their agency’s and community’s energy portfolio and resiliency initiatives, LGSEC members serve as administrators, designers and lead implementers of a host of energy efficiency, demand response, building decarbonization, transportation electrification (TE) and other energy management programs. In consultation with members, LGSEC respectfully submits these comments for consideration by the California Public Utilities Commission (CPUC) in regard to the Net Energy Metering Tariff proceeding. Local Governments’ (LGs’) interest in this proceeding originates from their life, safety, environmental, and economic responsibilities to, for, and within their communities. LGs are the principal governmental entities charged with ensuring resiliency through policies 2021/11/09 City Council Post Agenda Page 236 of 470 and actions that allow their community to adapt and respond to a changing climate and energy landscape. More than 90 LGs in California have adopted climate action plans with greenhouse gas (GHG) emission reduction targets. These targets will be achieved through a myriad of conservation, efficiency, renewable and distributed energy, transportation, and policy strategies. Two of the state’s major focus areas, TE and decarbonization, are principally implemented at the local level, prompting the need for larger and greater numbers of solar generating systems, optimally with accompanying storage due to increasingly challenging environmental and grid instability conditions . LGs need state policy and funding support to advance their goals, the achievement of which are essential if the state is to meet its climate action aspirations. Net Energy Metering (NEM) tariffs have been an important tool to engage community members in the necessary shift to renewables; without it or similar policies many LGs’ climate action plans would be rendered aspirational rather than implementable. There is a particularly pressing need for financial support for storage as integrated into renewable systems. Demand flexibility and grid-interactive efficient buildings, as well as a decarbonized building stock, require batteries that are optimized with controls to help address a plethora of societal and environmental needs, including associated with resiliency, reliability, and affordability, particularly for low- and moderate-income Californians. Nevertheless, the storage market has not yet reached the inflection point at which costs begin to dramatically fall and storage systems become financially accessible, as is happening with solar, in large part because of NEM. California’s initiative to advance adoption of solar photovoltaics (PV) at a range of sizes, despite initial capital cost, ha s been wildly successful; solar now outcompetes fossil fuel generation. The state’s NEM policy has coincided with dramatic suppression of the state’s peak loads over the last 15 years. Peak load last August was 3,000 megawatts less than the 2006 peak despi te record weather conditions. The storage market will likely require a similar push to that of the solar market to achieve high adoption rates. There is a continuing need to enable residential and non -residential energy users to contribute to creating an energy system that is more resilient, dispersed, community- based, climate-sound, and affordable. In this context LGSEC recommends the CPUC adopt the following findings in this proceeding:  Retain the NEM Aggregation (NEM-A) Program as a separate tariff, thereby enabling LG and college campuses to leverage costs savings associated with larger scale PV projects. Economies of scale allow these project configurations to realize greater savings than other forms of distributed generation and often make implementing solar more streamlined and thus, feasible.. NEM-A participants contribute to other utility costs through demand and customer charges. In any event, this program is protected in state law in its current form. 2021/11/09 City Council Post Agenda Page 237 of 470  Retain the Virtual NEM (VNEM) tariff. VNEM is one of the state’s most effective tools in enabling low-income customers to benefit from solar, particularly in multifamily housing. VNEM delivers rate stability to lower income customers in multi-family housing that is otherwise unavailable, while higher-income, single family customers can gain those assurances with their behind-the-meter NEM arrays.The VNEM tariff should be maintained as a means to continue to facilitate community members’ participation in the state’s energy transition. Likewise, the distinction between VNEM and NEMA should be retained.  Offer geographic adders to NEM compensation that reflect the value the CPUC places on fostering equity and that serves to avoid transmission and distribution costs. To address equity issues, additional energy payments could be made in disadvantaged communities or other underserved regions with low solar penetration, Enhanced compensation should be provided to solar plus storage installations located in high fire threat or grid-constrained zones as a cost-effective alternative to undergrounding the existing distribution system.  NEM 3.0 compensation should reflect a 15- to 20-year term, particularly associated with storage investments. Customers should have reasonable surety that they will recover the costs of investments made at the behest of state policies to decrease GHG emissions and increase resiliency and reliability by distributing resources through the grid.A long-term commitment to the underlying policies that support these investments is required if the CPUC wants to encourage investment in technologies intended to achieve the state’s environmental goals. For this reason, a 15- to 20-year term should be associated with the NEM 3.0 tariff.  A glidepath is needed to support a transition to a time where solar installations are generally paired with energy storage. Presently, the solar market relies principally on the sale and installation of solar-only projects to sustain itself. Energy storage costs remain high, and its technology and market advancement are in its infancy. The CPUC should consider the ramp-up time that will be needed for energy storage to become widely adopted and recognize that drastic changes to the NEM tariff structure during this time will have a chilling effect on the solar market. An appropriate glidepath will allow residents and businesses investing in solar and energy storage technologies to count on an expected return on their investment (ROI) from their systems that is not dramatically different from the ROI for a current system. Moreover, a glidepath is critical to support the state’s requirement for new construction to include solar and/or storage. This preferred approach will provide the necessary t ransparency and predictability for participants to be confident in making these investments.  Align NEM modifications with the July 30th Governor’s Emergency Proclamation for long term grid stability. The ability to charge a storage system from the grid should be allowed for critical facilities. D.20-06-017 set this precedent by authorizing energy storage systems to charge from ( export to) the grid in advance of a Public Safety Power Shutoff event. This would allow for the reduction or elimination of stranded capacity in physical assets that could otherwise be made available during peak hours. At a minimum, energy storage systems should be authorized to charge from the grid for a specified period of 2021/11/09 City Council Post Agenda Page 238 of 470 time after receiving a California Independent System Operator notification of potential capacity shortfall in order for the grid reliability value of these assets to be fully utilized. Ideally, energy storage systems should also have the ability to export to the grid, which would enhance grid reliability.  Maintain existing solar agreements without modifications. Residential and especially non-residential customers who entered the NEM 1.0 or 2.0 program should be exempt from NEM 3.0 program modifications. LGs entered into solar agreements with the expectation that tariff parameters would remain stable. They would have to divert funds away from other public services to absorb increased fees imposed by a modified NEM 3.0. This in turn would erode trust between LGs and the state and discourage future investments in d istributed energy. LGSEC acknowledges that recent studies have characterized NEM tariffs as suboptimal from a systems perspective. They served their purpose at the time they were adopted, reflecting a reasonable risk-reward balance. Circumstances have changed more dramatically than envisioned, both in terms of reducing renewable power costs and catastrophic events, such as wildfires. Even so, evidence presented in the proceeding demonstrates that medium and large commercial customers impose quite modest cos t shifts, if any, to other ratepayers. Sincerely, Gabriela Yamhure | she/her(s) Project Coordinator, LGSEC gyamhure@lgc.org (916) 448-1198 ext 352 2021/11/09 City Council Post Agenda Page 239 of 470 From: Alcantar, Roberto C <RAlcanta@sdge.com> Sent: Tuesday, November 09, 2021 12:08 PM To: Mary Salas <MSalas@chulavistaca.gov>; John McCann <jmccann@chulavistaca.gov>; Jill Galvez <jmgalvez@chulavistaca.gov>; Steve C. Padilla <spadilla@chulavistaca.gov>; Andrea Cardenas <acardenas@chulavistaca.gov> Subject: Agenda Item 6.2 NEM - SDG&E Comments Importance: High Dear Councilmembers and Mayor, I write in regards to tonight’s item 6.2 “Sustainability Commission: Consideration of Sending a Public Comment to the California Public Utilities Commission Regarding CPUC Net Energy Metering 3.0” and ask that the City Council consider this additional information. In conjunction with the proceeding, the CPUC commissioned a study to review the current NEM program which determined: • Current rooftop solar subsidies increase electricity bills for non-solar customers • Areas with higher incomes show higher percentages of solar installations relative to California’s population • Rooftop solar subsidies created by the current program are disproportionately paid by younger, less wealthy, and more disadvantaged electricity customers Attached you will find a presentation that outlines these issues and ask that the Council consider this information and additional perspectives before submitting a comment in the form of a letter or resolution. ▪ This is about equity, not profits. SDG&E and the other utilities don’t profit off reform measures, we are legally not allowed to profit from the sale of energy. This is about spreading costs fairly across all customers that use and depend the grid. ▪ More than 80% of customers in SDG&E’s service territory are paying more on their electric bill because of the outdated NEM structure. A recent CPUC white paper concluded: ▪ CARE customers are currently seeing bills that are 13% higher as a result of the current NEM program ▪ This is not a solar vs utility issue. Other credible environmental groups, consumer advocate groups and community groups are also pushing to update the outdated NEM program ▪ Californians simply should not be expected to pay more for energy from rooftop solar if the same renewable energy and environmental benefits can be achieved at a lower cost At SDG&E we would like to work with the City of Chula Vista to develop a comment to the CPUC that takes into consideration all the available information, and focuses on the root issue at hand, equity and stopping the cost shift. We would recommend language such as: The Chula Vista City Council urges the CPUC to adopt a NEM 3.0 that ensures equitable and robust solar rooftop and battery adoption and does not burden non-solar and low-income customers. There are currently 11 different proposals submitted to the CPUC, so we would recommend not calling out one proposal in particular (The IOU Proposal) but rather urge the action on any of the proposals so that your recommendations are included in all proposals. This is a huge opportunity for the City of Chula Vista to lead the way and focus on what it would like to see in any of the NEM proposals brought forward by the CPUC. Warning: External Email Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 251 of 470 Here is a list of organizations throughout the State that have joined efforts to focus on equity and stop the cost shift: https://fixthecostshift.com/supporters/ Here you will find an article by the UC Berkeley Energy Institute titled “Rooftop Solar: Net Energy Metering hurts the poor. It’s that simple.” https://fixthecostshift.com/uc-berkeley-energy-expert-sums-up-whats-wrong-with-californias-rooftop- solar-program/ We hope that we can work together on this issue. Please let me know if you have any questions. Thank you, Roberto Alcantar Public Affairs Manager | M 619.316.9997 E Ralcanta@sdge.com Follow Us: For more information about privacy at SDG&E visit sdge.com/privacy. Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 252 of 470 1 Net Energy Metering Reform Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 253 of 470 2 Growth of Residential Rooftop Solar 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 0 200 400 600 800 1,000 1,200 1,400 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % CustomersMW SDG&E Cumulative Residential NEM Approvals NEM 1.0 (MWs) NEM 2.0 (MWs) % of customers FastTrack Interconnection Renewable Meter Adapter SDG&E continues support rooftop solar and is proud to have one of the highest levels of residential rooftop solar penetration in the U.S. Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 254 of 470 3 Why is California considering updates to NEM now? ▪California legislation signed in 2013 (AB 327) provided the California Public Utilities Commission (CPUC) the ability to periodically review NEM ▪In 2020, the CPUC opened a new proceeding to revisit how rooftop solar customers are compensated and SDG&E was required to submit a proposal to help address the growing cost shift ▪In conjunction with the proceeding, the CPUC commissioned a study to review the current NEM program which determined: •Current rooftop solar subsidies increase electricity bills for non-solar customers •Areas with higher incomes show higher percentages of solar installations relative to California’s population •Rooftop solar subsidies created by the current program are disproportionately paid by younger, less wealthy, and more disadvantaged electricity customers Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 255 of 470 4 Current and Projected NEM Cost Shift If no changes are made, costs shifted from NEM customers to Non-NEM customers could reach $$1.5B annually for SDG&E customers Based on current estimates. $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Cost Shift ($ MM)NEM 1.0 NEM 2.0 If NEM 2.0 Continues Unchanged SDG&E Residential & Non-Residential NEM Cost Shift Forecast Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 256 of 470 5 NEM Cost Burden On Customers Without Solar Customers without rooftop solar will continue to see unnecessarily higher bills if changes are not made to the NEM program Estimated Current and Future Avg. Annual NEM Cost Burden Per Non-NEM Residential Customer Estimated SDG&E Avg. Annual NEM Cost Burden Per Non-NEM, Non-CARE Residential Customer $0 $50 $100 $150 $200 $250 $300 2015 Current ~$60 ~$245 Based on current estimates. Assumes current customer profile for estimates. $246 $557 $152 $344 $- $500 $1,000 $1,500 $2,000 Current 2030 Current 2030Annual Bill ($/year)Bill without NEM NEM Subsidy Non-CARE CARE Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 257 of 470 6 Customer Bill Before & After Solar Customer bill before solar Customer bill after solar (NEM 2.0) Customer went solar in April 2021 and is enrolled on an EV pricing plan (EVTOU5) Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 258 of 470 7 Joint Utility NEM Proposal 1.Proposal excludes any changes to existing NEM 1.0 and NEM 2.0 customers 2.Stops bill increases related to NEM and helps ensure all customers pay for the electric grid 3.Provides transitional subsidy for lower-income customers helping provide access to clean energy 4.Encourages adoption of solar + storage for new customers to help support resiliency and reliability 5.Provides reasonable payback horizon in-line with other states SDG&E, with PG&E and SoCal Edison, submitted a joint NEM reform proposal to the CPUC that will help benefit customers across all of California while continuing to encourage clean energy 1 2 3 4 5 Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 259 of 470 8 2.9x 3.4x 4.9x 5.7x 6.7x 7.3x 8.2x 6.1x 6.6x 7.2x 7.6x 8.3x $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2010 2011 2012 2013 2014 2015 2016 2016 2017 2018 2019 2020 Installation Year SDG&E Lifetime Return of Rooftop Solar (20 year life) Average Install Cost (after incentives)Value after Break Even NEM 1.0 NEM 2.0 SDG&E Lifetime Return of Rooftop Solar * Residential Solar Customers Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 260 of 470 9 IOU NEM Reform Proposal –Payback Periods 0 2 4 6 8 10 12 14 16 Current - SDGE Solar Only Other Jurisdiction Avg.Proposal Low Income - SDGE Solar Only Proposal - SDGE Solar + Storage Proposal - SDGE Solar OnlyYears Current - SDGE Solar Only Other Jurisdiction Avg.Proposal Low Income - SDGE Solar Only Proposal - SDGE Solar + Storage Proposal - SDGE Solar Only SDG&E Proposals Note: Other jurisdiction average represents solar only customers; estimates derived from a report prepared by the North Carol ina Clean Energy Technology Center at North Carolina State University. Report can be found in the appendix of the Joint IOU opening testimony. Proposal provides paybacks in-line with other jurisdictions; designed to incentivize low-income and solar + storage adoption Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 261 of 470 10 Making NEM Sustainable is an Issue of Equity “…the successor tariff should encourage the adoption of customer-sited renewable generation without burdening non- NEM customers with additional costs.” –Natural Resources Defense Council “The inequitable cost shifts resulting from NEM 1.0 and 2.0, particularly for low-income customers who disproportionately bear the impact of rate increases, must be addressed.” –The Utility Reform Network “NDC strongly supports the goal of this proceeding to reform the NEM tariff and appropriately balance costs and benefits for all ratepayers...” -National Diversity Coalition “…reform of the existing NEM tariff is needed immediately.” –Public Advocates Office “…it is not sustainable for NEM tariffs to take from the poor to pay the rich for their rooftop solar… [or] to make ratepayers pay for renewable power that they could obtain more cheaply elsewhere.” –Coalition of California Utility Employees Comments from opening comments on NEM reform guiding principles, filed December 4, 2020. R. 20-08-020. Emphasis added. “…because of SMUD’s NEM rate, our non- solar customers, including our low-income customers, are paying more than their fair share of SMUD’s fixed costs.” –Sacramento Municipal Utility District Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 262 of 470 11 Key Takeaways ▪This is about equity, not profits. SDG&E and the other utilities don’t profit off reform measures, we are legally not allowed to profit from the sale of energy. This is about spreading costs fairly across all customers that use and depend the grid. ▪More than 80% of customers in SDG&E’s service territory are paying more on their electric bill because of the outdated NEM structure. A recent CPUC white paper concluded: ▪CARE customers are currently seeing bills that are 13% higher as a result of the current NEM program ▪This is not a solar vs utility issue. Other credible environmental groups, consumer advocate groups and community groups are also pushing to update the outdated NEM program ▪Californians simply should not be expected to pay more for energy from rooftop solar if the same renewable energy and environmental benefits can be achieved at a lower cost Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 263 of 470 12 Questions? •“Net Energy Metering hurts the poor. It’s that simple.” •“It has been well documented –and surprises no one –that households with solar are disproportionately wealthy (as well as disproportionately white). So, when a customer installs solar, their share of the fixed costs are shifted to other ratepayers who are poorer on average.” --UC Berkeley, Energy Institute at Haas, Severin Borenstein Additional Information Item 6.2 - Alcantar 2021/11/09 City Council Post Agenda Page 264 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Grant Award: Accept grant from U.S. Department of Justice for the Edward Byrne Memorial Justice Assistance Grant Report Number: 21-0201 Location: No specific geographic location Department: Police Environmental Notice: 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. Recommended Action Conduct a public hearing and adopt a resolution accepting $63,798 grant funds and appropriating said funds to the Police Grants Section of the Federal Grants Fund for the Edward Byrne Memorial Justice Assistance Grant (4/5 Vote Required). SUMMARY The Police Department has received notice of the 2021 Edward Byrne Memorial Justice Assistance Grant award in the amount of $63,798 from the U.S. Department of Justice. These funds were allocated to the Police Department based on city population and Part 1 violent crime statistics. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION 2021/11/09 City Council Post Agenda Page 265 of 470 P a g e | 2 Not applicable. DISCUSSION Proposed to streamline justice funding and grant administration, the Edward Byrne Memorial Justice Assistance Grant (JAG) Program allows states, tribes, and local governments to support a broad range of activities to prevent and control crime based on their local needs and conditions. Federal funds from the Edward Byrne Memorial JAG Program must be used to supplement existing funds for program activities and cannot replace, or supplant, nonfederal funds that have been appropriated for the same purpose. The unit of local government must provide assurance that the application or any future amendment was made and an opportunity to comment was provided to citizens and the neighborhood or community organizations of applicable law. Local match is not required with the JAG Program. The Police Department received notice on October 8, 2021 of an Edward Byrne Memorial JAG award in the amount of $63,798 from the U.S. Department of Justice. These funds were allocated to the Police Department based on city population and Part 1 violent crime statistics. Part 1 violent crimes include murder and non - negligent manslaughters, forcible rape, robbery, and aggravated assaults as reported by the FBI. Acceptance and appropriation of these funds requires a public hearing per stipulations of the Justice Assistance Grant. The Police Department recommends using the JAG funds for the personnel costs of a Police Community Relations Specialist. The Community Relations Unit was disbanded in the Police Department during previous budget cuts. The Police Community Relations Specialist was reinstated through 2009 American Reinvestment and Recovery Act (ARRA) funds, covering a two-year period of July 2009 to June 2011. When ARRA funds were depleted, JAG funds were used to retain this position. The Police Department is recommending continuation of using JAG funds for Police Community Relations Specialist personnel costs during fiscal year 2021/2022. The Police Community Relations Specialist provides a vital link between the community and the Police Department by attending community meetings, coordinating events which involve the community, providing Crime Prevention through Environmental Design assessments for homeowners and businesses, coordinating the annual Citizens Police Academy and the Teen Police Academy, and responds to general inquiries and questions to the Police Department. This position plays an invaluable role serving as the Department’s community liaison. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of this resolution will result in the acceptance of $63,798 for the 2021 Edward Byrne Memorial Justice Assistance Grant from the U.S. Department of Justice. 2021/11/09 City Council Post Agenda Page 266 of 470 P a g e | 3 The annual personnel cost of the Police Community Relations Specialist is approximately $79,715. Funds received by JAG will partially offset the annual personnel costs. The remaining costs will be covered by the General Fund, which is approximately $15,917. ONGOING FISCAL IMPACT Since Justice Assistance Grant funds are awarded on an annual basis, the Police Department plans to continue using these grant funds to partially fund the Police Community Relations Specialist position. The difference between the full costs of the position and the grant award amount will be paid by the General Fund. ATTACHMENTS None. Staff Contact: Jonathan Alegre, Police Department 2021/11/09 City Council Post Agenda Page 267 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING GRANT FUNDS FROM THE U.S. DEPARTMENT OF JUSTICE FOR THE 2021 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT WHEREAS, the Police Department received notice from the Bureau of Justice Assistance of the 2021 Edward Byrne Memorial Justice Assistance Grant award in the amount of $63,798; and WHEREAS, the grant funding from the U.S. Department of Justice for the 2021 Edward Byrne Memorial Justice Assistance Grant will be used for the personnel costs of one Police Community Relations Specialist; and WHEREAS, the Police Community Relations Specialist provides a vital link between the community and the Police Department; and WHEREAS, a public hearing was conducted to seek input regarding the grant appropriations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby accepts $63,798 from the U.S. Department of Justice and appropriates said funds to the personnel category of the Police Grants Section of the Federal Grants Fund for the 2021 Edward Byrne Memorial Justice Assistance Grant. Presented by Approved as to form by Roxana Kennedy Glen R. Googins Police Chief City Attorney 2021/11/09 City Council Post Agenda Page 268 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Presentation: Presentation from Stradling Yocca Carlson & Wauth, P.C., Bond and Disclosure Counsel, Regarding Federal Securities Law Matters Related to the Offer of Municipal Bonds Report Number: 21-0170 Location: No specific geographic location Department: Development Services Environmental Notice: The activity is not a “Project” as defined in Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Receive a presentation from Stradling Yocca Carlson & Rauth, P.C., Bond and Disclosure Counsel, regarding federal securities law matters related to the offering of municipal bonds. SUMMARY On May 8, 2012, the City and the San Diego Unified Port District (the “Port District”) approved and entered into a Financing Agreement for the Chula Vista Bayfront Master Plan (the “CVBMP”), which identified the rights and obligations of each agency, with respect to the financing, development, and construction of CVBMP public improvements, infrastructure, and a convention center to be constructed on the Chula Vista Bayfront (the “Convention Center”). The Financing Agreement established that the City and the Port District would form a Joint Exercise of Powers Authority to provide for or facilitate the financing of certain CVBMP public infrastructure improvements and the Convention Center. On May 13, 2014, the City of Chula Vista adopted Resolution 2014-070 approving a Joint Exercise of Powers Agreement (the “JEPA Agreement”) forming the Chula Vista Bayfront Facilities Financing Authority (the “Authority”) to implement common objectives of the parties related to the development of the CVBMP. As the Authority moves toward issuing debt to finance certain CVBMP infrastructure improvements and a public investment in the Convention Center, a training regarding federal securities law matters related to the offer of municipal bonds is recommended. 2021/11/09 City Council Post Agenda Page 269 of 470 P a g e | 2 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The Authority has retained the services of J.P. Morgan to act as underwriter in connection with the proposed sale of two series of bonds related to the construction and development of the Convention Center and certain CVBMP public infrastructure improvements (the “Bayfront Financing”). The Authority’s bonds will be offered to investors through a Preliminary Official Statement which is similar to a prospectus in the corporate market. It will contain all of the information necessary for investors to make an informed decision regarding a purchase of the Authority’s bonds. When municipal bonds are sold to investors in a public sale, certain provisions of federal securities laws apply to the offering. Specifically, the offering is governed by Securities and Exchange Commission Rule 10b- (5) which makes it unlawful for an issuer of bonds to make a misstatement of a material fact or to omit to state a material fact in connection with the bond offering. The Securities and Exchange Commission has made clear through various releases and enforcement actions that the members of the governing board of an issuer of municipal bonds have a duty to review the key elements of the preliminary official statement before bonds are sold. The Securities and Exchange Commission has also emphasized the importance of governing board members and key staff members receive securities law training so that they are familiar with the federal securities law standards that are applicable to a sale before bonds are offered. The purpose of this agenda item is to provide the City Councilmembers with federal securities law training and the opportunity to ask questions regarding the process for preparing the Preliminary Official Statement for the Authority’s proposed sale of bonds. While the City will not directly issue bonds for the Bayfront Financing, training for all JEPA member agency councilmembers and board members is recommended. The same training was presented to the Port District Board of Commissioners earlier today. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. 2021/11/09 City Council Post Agenda Page 270 of 470 P a g e | 3 CURRENT-YEAR FISCAL IMPACT There is no current year fiscal impact as a result of receiving this presentation. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as a result of receiving this presentation. ATTACHMENTS None. Staff Contact: Tiffany Allen, Director of Development Services 2021/11/09 City Council Post Agenda Page 271 of 470 Chula Vista Bayfront Bond Financing Presentation Disclosure Responsibilities Under the Federal Securities Laws Presented by: Stradling Yocca Carlson & Rauth a Professional Corporation, Bond and Disclosure Counsel November 9, 2021 2021/11/09 City Council Post Agenda Page 272 of 470 Why Is Disclosure Necessary? •The Chula Vista Bayfront Facilities Financing Authority plans to issue bonds (the “Bonds”) in the public capital markets •The disclosure document for the Bonds will contain information regarding the finances and operations of the Authority, the City of Chula Vista, the San Diego Unified Port District, the Bayfront Project Special Tax Financing District and RIDA Chula Vista, LLC (“RIDA”) •Investors in municipal securities have rights under federal securities laws •All “material” information must be disclosed 2 2021/11/09 City Council Post Agenda Page 273 of 470 The Securities Act Of 1933 •1933 Act has two substantive rules: -Registration requirement -Antifraud rule •Municipal securities are exempt from the registration requirement, but are subject to the antifraud rule •Section 17(a)(2) prohibits any person from, directly or indirectly, obtaining money or property by means of any untrue statement of a material fact or by a misleading omission. 3 2021/11/09 City Council Post Agenda Page 274 of 470 Securities Exchange Act Of 1934 Rule 10b-5 •Also contains antifraud provisions •1975 amendments to 1934 Act made it clear that antifraud provisions apply to government issuers 4 2021/11/09 City Council Post Agenda Page 275 of 470 Rule 10b5 “It shall be unlawful for any person . . . a)To employ any device, scheme or artifice to defraud, b)To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading . . . .” 5 2021/11/09 City Council Post Agenda Page 276 of 470 The “Materiality” Standard •“[w]hether or not there is a substantial likelihood that a reasonable investor or prospective investor would consider the information important in deciding whether or not to invest.” •Materiality is determined in context of all the facts and circumstances, typically being judged in hindsight •Guidance comes primarily from court decisions and SEC enforcement cases •SEC has declined to provide advance guidance on materiality 6 2021/11/09 City Council Post Agenda Page 277 of 470 Levels Of Culpability •Negligence –Failed to meet Prudent Person Test •Recklessness –Ignored “red flags” •Intent to defraud –Scienter 7 2021/11/09 City Council Post Agenda Page 278 of 470 When Do Disclosure Rules Apply? •New primary offerings •Continuing Disclosure Reporting--Annual Report and filings for listed event notices and voluntary filings •Any other circumstance where an issuer is “speaking to the market.” (See next slide). •At this time, securities law does not impose a requirement to update or correct any statement previously made, if there is no other reason to be making a statement to the market 8 2021/11/09 City Council Post Agenda Page 279 of 470 Recent SEC Staff Legal Bulletin ●All statements of a municipal issuer reasonably expected to reach investors are subject to antifraud provisions ●Fact that the information was not published for the purpose of informing the markets is not relevant ●Types of statements which are subject to anti-fraud rules: —Websites —Public Reports Delivered to Governmental and Institutional Bodies —Public statements made by municipal issuer officials —Social media 9 2021/11/09 City Council Post Agenda Page 280 of 470 Primary Offerings •A sale of bonds to the public •Official Statement is offering document to investors – equivalent to prospectus •Must contain all material information for the particular bond sale •Official Statement is the Authority’s document -Port District and City are responsible for their information including Appendices •Underwriters, municipal advisors and lawyers can help develop the Official Statement but the Authority, City, Port District and RIDA and are ultimately responsible for content 10 2021/11/09 City Council Post Agenda Page 281 of 470 Annual Reports •The Authority, the City, the Port District and the Financing District will be required to provide Annual Reports as long as bonds are outstanding •Includes Audited Financial Statements •Includes Financial Information identified in the respective Continuing Disclosure Certificate (i.e. updates to specific information in the Official Statement) •Consider Rule 10b5 implications –is there more you should be saying? •When filing Annual Report ask if anything happened since the date of the audited financial reports that has materially impacted the Authority’s, the City’s, the Port District’s or the Financing District’s financial condition? 11 2021/11/09 City Council Post Agenda Page 282 of 470 Disclosure Process •Important to review any disclosure procedures at outset •Assign appropriate staff to oversee and coordinate process •Seek input from all key officials with relevant information •Disclosure Counsel helps pull information together and produces a draft Preliminary Official Statement (“POS”) •Draft POS reviewed by working group and revised prior to submission to the Authority Board, Board of Port Commissioners and City Council •Important to maintain attorney-client privilege for sensitive issues 12 2021/11/09 City Council Post Agenda Page 283 of 470 Disclosure Process (cont.) •Board Members, City Council Members and Port Commissioners -SEC has stated that Board members and elected officials have a duty to review the POS prior to release -Review key sections of POS related to the Authority, the City, the Financing District, the Port District and the Project -Notify appropriate staff of any questions, concerns, or need for changes to make POS accurate prior to release •“Due diligence” meeting/call with staff, underwriter, Disclosure Counsel and Municipal Advisors before release of POS •Appropriate officials of the Authority, Port District, City and RIDA deem POS final as of its date before release to investors 13 2021/11/09 City Council Post Agenda Page 284 of 470 Timing Considerations For Bond Sale •Progression of a bond offering —POS —Bond Sale —Final OS —Closing •Be mindful of timing of public actions or releases —State and local budgets, audited financial statements —Assessed valuation and delinquency data —Events related to pending litigation —Events related to the Bayfront Project, RIDA, the Hotel Operator, etc. 14 2021/11/09 City Council Post Agenda Page 285 of 470 What Should Be Disclosed? •Unlike corporate securities, there is no “line item” set of rules for what goes into an Official Statement •Starting in 1975, leaders in municipal market created a set of Guidelines for Official Statement content •Other groups have suggested disclosure for particular market segments •Look at practices in the industry; recent SEC enforcement actions •In the end, issuer must use its own good judgment 15 2021/11/09 City Council Post Agenda Page 286 of 470 Disclosure Considerations •Disclosure must reflect specific circumstances of the financing •Disclosure must use current information whenever possible •Read the disclosure with “fresh eyes” •If you think something may be a concern, raise the issue with colleagues and the working group •There are no “stupid questions” •Political sensitivity and business and confidentiality considerations are not exceptions to disclosure 16 2021/11/09 City Council Post Agenda Page 287 of 470 Disclosure Topics for the Bayfront Project •Description of the Bayfront Project and Financing Plan •Description of RIDA’s debt and equity financing •Construction risks related to the Bayfront Project •Description of revenues committed to pay the bonds •Consultants’ revenue projections and assumptions •Limited nature of revenues available to pay debt service •Bonds may be unrated •Possible impact of next economic downturn; impacts of COVID- 19 Pandemic •Risks related to Hospitality Industry •Past continuing disclosure compliance of Port and City •Litigation and investigations; challenges to the project •Validation action17 2021/11/09 City Council Post Agenda Page 288 of 470 Topics of Recent SEC Enforcement Actions •Misleading or Incomplete Financial Disclosures •Failed Economic Development Projects •Inadequate Pension Disclosures •Failure to disclose missed Continuing Disclosure Filings 18 2021/11/09 City Council Post Agenda Page 289 of 470 SEC Enforcement •SEC enforcement actions are the primary vehicle to ensure compliance •SEC has power to bring civil actions or refer to Justice Department for criminal action •SEC has brought actions against municipal issuers, including individual officers, as well as other participants in the market, such as underwriters, lawyers, advisers, etc. •SEC brings actions even when there was no default, no rating downgrade, or any evident market impact on the bonds 19 2021/11/09 City Council Post Agenda Page 290 of 470 Consequences of Bad Disclosure •SEC Investigation –fees for lawyers and consultants •Adverse publicity •Potential for reduced market access •May have to impose new procedures and oversight to settle SEC actions •Monetary fines imposed on the issuer •Individual fines imposed on public officials, including individuals who did not participate in the financing •Criminal charges against issuer officials 20 2021/11/09 City Council Post Agenda Page 291 of 470 What Can Go Wrong? •Orange County –(Board approved Official Statement without review.) -Board that authorizes securities is responsible for disclosure -Reliance on professionals must be reasonable “A public official who approves the issuance of securities and related disclosure documents may not authorize disclosure that the public official knows to be materially false or misleading; nor may the public official authorize disclosure while recklessly disregarding facts that indicate that there is a risk that the disclosure may be misleading. When, for example, a public official has knowledge of facts bringing into question the issuer’s ability to repay the securities, it is reckless for that official to approve disclosure to investors without taking steps appropriate under the circumstances to prevent the dissemination of materially false or misleading information regarding those facts.” 21 2021/11/09 City Council Post Agenda Page 292 of 470 What Can Go Wrong? (cont) •San Diego (Inaccurate disclosure on pension and retiree healthcare liability and errors in financial statements.) -City commissions a review of its disclosure practices -Conclusions from review: “the City’s procedures, policies and practices for disclosure and financial reporting are inadequate in major respects. Undermining the reliability of its public disclosure have been, among other factors, the (1) the City’s excessive reliance on outside professionals to generate its disclosure documents, (2) its lack of procedures to verify the accuracy of those documents and (3) the absence of high-level oversight to judge the clarity and completeness of information provided to the investment markets.” 22 2021/11/09 City Council Post Agenda Page 293 of 470 What Can Go Wrong? (cont) •State of New Jersey (State fails to disclose material information on two pension plans and specifically underfunding.) -Failure left investors unable to evaluate State’s financial condition -State Treasurer did not read Official Statement -State Treasurer had no written policies or procedures relating to review or update -State Treasurer did not provide training concerning disclosure obligations 23 2021/11/09 City Council Post Agenda Page 294 of 470 What Can Go Wrong? (cont) •State of New Jersey(cont.) “Treasury had no written policies or procedures relating to the review or update of the bond offering documents. In addition, Treasury did not provide training to its employees concerning the State’s disclosure obligations under the accounting standards or the federal securities laws. Accordingly, the State’s procedures were inadequate for ensuring that material information concerning [the pension plans] or the State’s financing of [the pension plans] was disclosed and accurate in bond offering documents.” 24 2021/11/09 City Council Post Agenda Page 295 of 470 What Can Go Wrong? (cont) •West Clark Community Schools District (Indiana) – (fraudulent misstatement in a 2007 Official Statement that it was in compliance with its disclosure obligations related to prior bond offerings.) •The district had not submitted any of the required annual reports or notices for a previous 2005 bond offering, and the underwriter did not conduct adequate due diligence with respect to continuing disclosure compliance. 25 2021/11/09 City Council Post Agenda Page 296 of 470 What Can Go Wrong? (cont) •Port Authority of New York and New Jersey –SEC alleged that Port Authority official statements failed to disclose the risk that certain proposed uses of bond proceeds to fund highway and bridge improvements in New Jersey were not authorized by its statutes and bond resolution. Issuer settled, conceding correctness of SEC’s statements of fact (first case where issuer was not allowed to neither admit or deny the allegations), agreed to outside monitor of disclosure procedures, and paid $400,000 fine. 26 2021/11/09 City Council Post Agenda Page 297 of 470 What Can Go Wrong? (cont) •State of Illinois –(Omission of material information relating to the unfunded liabilities of its pension system.) •City of South Miami (Florida) –(Material misstatements related to the City’s compliance with various tax requirements for the bonds.) 27 2021/11/09 City Council Post Agenda Page 298 of 470 What Can Go Wrong? (cont) •City of Allen Park (Michigan) –The SEC found that City bond offering documents related to an economic development project used outdated information with respect to the project and used outdated City budget information •Allen Park -Settlement with the City: −The City agreed to cease and desist from future securities law violations and the City agreed to adopt written policies and procedures, to disclose the cease and desist order in any offering in the next two years and to undertake disclosure training. 28 2021/11/09 City Council Post Agenda Page 299 of 470 What Can Go Wrong? (cont) Allen Park -Settlement with the City Administrator and Mayor: •The City Administrator entered into settlement agreement, which included an order not to violate the federal securities laws in the future and not to participate in an offering of municipal securities in the future, but no payment of a fine. •The Mayor entered into a settlement agreement, which included an order not to violate the federal securities laws in the future, not to participate in an offering of municipal securities and payment of a $10,000 fine. 29 2021/11/09 City Council Post Agenda Page 300 of 470 What Can Go Wrong? (cont) •Westlands Water District –The SEC found that the Water District bond official statement contained misleading debt service coverage ratio information due to failure to disclose (1) extraordinary accounting transactions and (2) a later adjustment to prior year expenses. •Westlands Water District –Settlement: -SEC’s cease and desist order found violation of Section 17(a)(2) of the Securities Act. -District ordered to pay $125,000. -General Manager ordered to pay $50,000 from personal funds. -Assistant General Manager ordered to pay $20,000 from personal funds. 30 2021/11/09 City Council Post Agenda Page 301 of 470 What Can Go Wrong? (cont) •Sweetwater Union High School District –SEC alleged that misleading budget information was included in an Official Statement contradicted by known actual amounts. •Sweetwater Union High School District –Settlement: −Chief Financial Officer agreed to pay $28,000 penalty and to be enjoined from participating in future municipal securities offerings. −District consented to an SEC order finding violations of the 17(a)(2)and 17(a)(3)of the Securities Act and to engage an independent consultant to evaluate disclosure policies and procedures. 31 2021/11/09 City Council Post Agenda Page 302 of 470 Summary of Recommended Actions •Schedule periodic disclosure training •Review policies and procedures from time to time •Make sure that responsible officials are familiar with disclosure •Review the entire POS prior to release •Seek information and ask questions of the officials, employees and professionals who supplied information to be included in the POS •Ask follow up questions to determine the reasonableness of any assumptions or estimates that were used in the POS 32 2021/11/09 City Council Post Agenda Page 303 of 470 2021/11/09 City Council Post Agenda Page 304 of 470 T A B L E O F C O N T E N T S E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 03 05 06 08 20 D e p u t y C i t y M a n a g e r 's M e s s a g e A b o u t o u r T e a m D e p a r t m e n t O r g a n i z a t i o n C h a r t S e n i o r M a n a g e m e n t T e a m T h e P a t h F o r w a r d : F Y 2 0 2 2 W o r k P r o g r a m 07 S t r a t e g i c F o c u s A r e a s C O V I D -1 9 R e s p o n s e b y t h e N u m b e r s 21 C o n t a c t I n f o r m a t i o n25 2021/11/09 City Council Post Agenda Page 305 of 470 financial assistance, technical assistance, marketing and promotion, business friendly city policies and continuing economic development catalyst projects. Dear Reader, I am pleased to present the Economic Development Department’s Work Plan for Fiscal Year 2022. In reflecting on the events and accomplishments of the prior year, it is abundantly clear that 2020 was a year like no other. It was a year that presented all of us with unprecedented challenges. In 2020, as a collective, we grappled with health, economic and environmental challenges and social and racial injustices were magnified. In working together across the city, our Department is poised to continue responding to, and addressing, these challenges. As a community, we saw tremendous endurance and resilience, particularly among our small business owners. We commend your efforts, celebrate your triumphs and will be here to help your recovery continue. As a city, we were able to rise to meet the challenges of our time and we will continue to do so. Despite the challenges presented by 2020, I am proud of my hardworking staff for their dedication to providing services, assistance and value to Chula Vista residents and businesses. Under the guiding document of our previous work plan, 62% of the 43 goals we set have been accomplished. 14 of these efforts continue into FY2022 and 2 of those efforts (FREBE evaluations and Clean Business Check-ups) changed due to the way our work and response shifted during the COVID-19 pandemic. In response to the COVID-19 pandemic, my department authored a COVID-19 Economic Response and Recovery Plan unanimously approved by the City Council in May 2020. This plan contains 25 actions to provide the following services to aid in pandemic response and recovery: This plan has helped Chula Vista lead the way in COVID response and recovery as the first plan of its kind in San Diego County. As my department’s work has been focused on COVID support and response, this plan served as our guiding document and program of work over the past 18 months in lieu of a 2020-21 department work plan. Of the 25 actions outlined in the Recovery Plan, our team achieved 100% completion as we quickly provided critical support services during the pandemic. We Built THIS In November 2020, Economic Development launched a small business support and recovery campaign called “We built THIS” to encourage local residents to “think small” as they shop, dine, stay and play in Chula Vista. The “We built THIS” initiative was created to shine a light on unique Chula Vista makers, restaurants, hotels and shops across the city, and educate the community about the businesses that create Chula Vista’s vibrancy. The initiative earned over 2 million impressions to promote Chula Vista businesses and educate on the importance of supporting local businesses to reignite community pride and support pandemic recovery. Although the true reward of this campaign was the assistance provided to small businesses, our department also earned several national and international awards for this work. MESSAGE FROM THE DEPUTY CITY MANAGER November 9, 2021 E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 32021/11/09 City Council Post Agenda Page 306 of 470 The City developed a set of videos and messages around the theme: We built THIS. Business by business. Family by family. Neighborhood by neighborhood. By frequenting our local businesses, we will rebuild our community stronger than ever. In light of the campaign’s success and the continuing relevancy of the message, our FY2022 Economic Development Work Plan is themed We built THIS. We are ready to build back our community stronger than ever with a focus on equity and inclusion and this plan contains the building blocks, policies and programs to do so. Join us as we continue to build. Sincerely, Eric C. Crockett Deputy City Manager MESSAGE FROM THE DEPUTY CITY MANAGER E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 42021/11/09 City Council Post Agenda Page 307 of 470 E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 5 Economic Development The Office of Sustainability The Economic Development Department is organized into two divisions: Together these divisions make up an Economic Development Department that strives to create quality employment, a clean and sustainable environment, shopping, dining and entertainment opportunities for our residents while championing smart city practices and increasing City revenues for vital public infrastructure and community services. This work translates into an enhanced quality of life for Chula Vista residents and businesses to enjoy. To focus on facilitating real estate development and transactions in retail, commercial and industrial markets for today’s businesses, supporting innovation and sustainability, assisting new development projects, developing partnerships and opportunities and continuing the promotion of Chula Vista as an economic catalyst in the South Bay. Economic development efforts strive to create quality work options for residents and increase revenues for vital public infrastructure and services. To create a sustainable economy by providing the essential resources to businesses and the development community to promote, attract, retain and expand; employment opportunities, stimulate the local economy, expand the local sales and property tax bases; all while maintaining a positive balance between the economy, the environment and the community. Maintain and enhance a high quality of life for the City’s residents by developing and sustaining a healthy, strong and diverse economic base while promoting a healthy and sustainable community for everyone. Vision: Mission: Goal: ABOVE: A very 2020 team picture day as a representation of 365+ days of virtual meetings and team calls. During FY2021, staff quickly pivoted to online/virtual operations and services. A B O U T O U R T E A M P r i o r i t i z i n g p e o p l e , p l a n e t a n d p r o s p e r i t y 2021/11/09 City Council Post Agenda Page 308 of 470 E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 6 C O V I D -1 9 R E S P O N S E B Y T H E N U M B E R S FY2021 Actions to Address the Pandemic Critical Business & Workforce Assistance Sustainable & Steady Service 14 free Sustainability Series webinars hosted 626 energy saving actions taken in the Energy Goals Campaign 548,189 Pounds of Household Hazardous Waste Collected 74,539 Tons of Recyclables Diverted from the Landfill 25/25 Actions Completed from COVID Economic Recovery Plan $1.3M in grants to 280 small businesses 1,000+ 80,000 emails sent to businesses with resources 2M campaign impressions to support small businesses 3 national and international awards Chula Vista residents provided pathways to Tech careers 34 8 small businesses provided with professional marketing assets 18 Zero Waste Plan outreach events (virtual and in-person) 160 commercial waste reduction program assistance meetings direct assists to businesses 16 EV charging ports funded and installed at Landis Ave. and Davidson St. 2021/11/09 City Council Post Agenda Page 309 of 470 E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 7 Provide exceptional concierge and customer service to all businesses by tracking all commercial, industrial and office projects to ensure on-time delivery of service. Provide services, programs and policies to help businesses recover from the economic impacts of the COVID-19 Pandemic. Expanding Business Support Promote an environment for residents and businesses to prosper 1 Create a culture of stewardship, innovation and regional action that can lead to community prosperity and future economic gains Collaborate with regional economic development ecosystem partners Improving Collaboration & Outreach Collaborate with regional and bi-national partners to strengthen the region and promote sustainable economic development Champion catalytic development projects such as the Chula Vista Bayfront, Millennia and the University and Innovation District as they drive job growth, expand workforce development, strengthen public revenues and improve the quality of life and vitality for residents and businesses. Strengthening Economic Vitality Foster the economic development efforts of existing assets and key development projects Implement strategies to provide a sustainable environment that supports people, prosperity and the planet. Lead the international smart city movement with state-of-the-art technology and data analytics tools that improve quality of life and contribute to economic growth. Driving Innovation & Sustainability Provide high quality infrastructure, services and programs that balance social, economic and environmental needs of current and future generations Implement policies that promote and support small, minority, women, disabled, Veteran-owned businesses to foster a more inclusive local economy. Champion equity and inclusion across City policies and programs. Meet the moment of recovery from the COVID-19 pandemic and work to ensure the community’s recovery is equitable. Advancing Equity & Inclusion Rebuild the local economy while prioritizing equity and inclusion 2 3 4 5 S T R A T E G I C F O C U S A R E A S E c o n o m i c D e v e l o p m e n t 's g u i d i n g p r i o r i t i e s 2021/11/09 City Council Post Agenda Page 310 of 470 Through the passage of the COVID-19 Economic Recovery Plan, the first of its kind in the region, the City enacted a number of provisions that allow businesses to expand their operations outdoors, including on public sidewalks, in public parking spaces; and in city parks. The City also relaxed temporary signage requirements, as well as halted parking enforcement in commercial districts.100% of the actions outlined in the plan were completed. The City partnered with The San Diego Workforce Partnership to launch a TechHire Program for Chula Vista residents. During the first six months, 34 individual participants received case management services. These 34 include: 11 participants that were placed in subsidized internships which include positions such as Graphic Designers, Mobile Engineers, Salesforce Administrators, and Software Developers; 4 individuals placed in full-time employment as Software Support Technicians, Software Analysts, UI/UX Designer, and IT Support Assistant. 4 individuals placed in technical training with National University’s Information Technology field to study cyber security. The City partnered with South County EDC to provide technical assistance and resources to Chula Vista businesses so they can access federal, state or other programs; such as Paycheck Protection Program, the California Competes Tax Credit and others. Through the Chula Vista CARES Small Business Grant Program, the city created and administered the program and awarded approximately $1.3 million in grant funding to 280 businesses. The City waived late fees for new and renewed business licenses. Launched We Built THIS small business multi-media marketing support campaign with over 2 million impressions on social media encouraging people to shop, dine and stay local to support Chula Vista businesses. As part of the campaign, the audience is invited to take a visual journey into Chula Vista businesses at explorechulavista.com where they can watch a series of videos showcasing local businesses and why they choose to build not only their businesses, but often their families, friendships and lives in Chula Vista. From exploring the craftsmanship of transforming local trees into works of art at San Diego Urban Timber, watching the shear handiwork at Barbershop Heaven and considering a staycation at El Primero Hotel or the Ayres Hotel, to sampling unique delights at Boochcraft, Agave Coffee and Café and TJ Oyster Bar and discovering how wearable art is made at D’Via, viewers are treated to an inside peek at some of the many businesses that make Chula Vista shine. Communicator Award of Excellence for an Integrated Campaign in Economic Development Honorable Mention in Hermes Creative Awards for Pandemic Response International Economic Development Council Excellence in Economic Development Silver Award recipient for a Multimedia/Video Promotion About Economic Development Economic Development staff work directly with businesses, trade and business organizations, stakeholders and internal City departments to facilitate new investment opportunities and create a business-friendly ecosystem within City Hall and the community that supports a stable and thriving economy. To accomplish this, staff is involved in efforts to move the City’s key projects and economic engines forward. These projects include The Chula Vista Bayfront, the redevelopment of the 50-acre Rohr/Goodrich site, Millennia in the Eastern Urban Center, The University and Innovation District, the 53-acre Otay River Business Park, and other revenue and job generating uses. Economic Development staff play a critical role in supporting and furthering the Department’s strategic focus areas of expanding business support, improving collaboration and outreach, strengthening economic vitality, driving innovation and sustainability and advancing equity and inclusion. FY2021 Economic Development Key Accomplishments Throughout FY2021, staff’s efforts were focused on assisting businesses through the many impacts from the pandemic. E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 8 T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n 2021/11/09 City Council Post Agenda Page 311 of 470 FY2021 Business Expansion & Retention E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 9 T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n Previous Work Plan Completion 66% of 27 actions complete 33% of 27 actions in progress 11,553 Registered Businesses 4,875 Brick & Mortar Businesses (excludes businesses located outside of Chula Vista such as contractors, home-based businesses, apartment complexes, mobile-home parks, hotels/motels) 4,179 Small Businesses (10 or fewer employees) 86% of businesses are small...but mighty (10 or fewer employees) FY2021 State of the Market MBE VBEWBE DBE 617 1,052 135 60 Women-Owned Businesses Enterprises Minority-Owned Businesses Enterprises Veteran-Owned Businesses Enterprises Disabled-Owned Businesses Enterprises * *Data is self reported through the business license application and renewal process and does not represent the entire universe of licensed business owners. Data represents ownership reported of brick and mortar businesses only. Industrial Space Office Space Retail Space 99.3% leased of 7.8M s.f. of inventory 0.7% Vacancy Rate - 1.0% from prior period (1.7%) 94.7% leased of 3.4M s.f. of inventory 95.5% leased of 10.6M s.f. of inventory FY2021 Work Plan Performance $91 M of value added to Chula Vista from new non-residential buildings $1.20 market rent/s.f. +7.4% from prior period ($1.11) 5.3% Vacancy Rate $2.65 market rent/s.f. - 0.6% from prior period (5.9%) +2.7% from prior period ($2.58) 4.8% Vacancy Rate +1.4% from prior period (3.4%) $2.45 market rent/s.f. +1.0% from prior period ($2.42) 2021/11/09 City Council Post Agenda Page 312 of 470 The City of Chula Vista was awarded a $997,833 grant award from Clean Mobility Options (CALSTART) to fund a community electric shuttle pilot program for seniors in the northwest portion of Chula Vista. The Chula Vista City Council voted unanimously on May 26, 2020 to adopt a Digital Equity and Inclusion Plan (DEIP), which lays out a series of actions the City will take to ensure every Chula Vista resident has affordable access to high- speed internet, as well as the skills and devices needed to use it. Chula Vista was the first city in San Diego County to adopt such a plan. The City partnered with the cities of Encinitas, La Mesa, Imperial Beach and San Diego for the launch of the San Diego Community Power (SDCP) on March 1, 2021 and committed all municipal accounts to the 100% renewable energy option which is a significant step towards our future goal for 100% renewable electricity for the region. Opting up to the 100% renewable electricity product from SDCP would help reduce the City’s municipal GHG emissions by an estimated 3,000 metric tons of C02 equivalent or 30% of total emissions. Staff presented 14 free webinars for community members as part of the new Sustainability Series with topics including biking, composting, water conservation, green buildings, electric vehicles, recycling and sustainable holidays. About The Office of Sustainability In a sustainable economy, people live and conduct business in ways that are good for the prosperity of businesses, the community, and the environment. The Office of Sustainability is committed to providing a sustainable economy to enhance quality infrastructure, services and programs in a manner that balances the social, economic and environmental needs of current and future generations. This promotes people, the planet and future prosperity. The Office of Sustainability strives to uphold these priorities through the work of the Conservation Division, the Environmental Services Division and in implementing the Climate Action Plan and the Smart City Strategic Action Plan. The Office supports the Department’s strategic focus areas of strengthening economic vitality, driving innovation and sustainability, improving collaboration and outreach and advancing equity and inclusion. The Conservation Division leads the City’s energy and water conservation efforts, provides alternative transportation and climate action planning and actively collaborates with civic groups, business organizations, environmental and health advocates, academic institutions, internal City departments and other public agencies. The Environmental Services Division provides comprehensive solid waste management services by: building partnerships and implementing best management practices; increasing public awareness through educational and informational programming; and pursuing cutting edge and emerging waste management technologies. The Environmental Services Division supports the Department’s strategic focus areas of strengthening economic vitality, driving innovation and sustainability and advancing equity and inclusion. The Office of Sustainability is responsible for leading the implementation of the Chula Vista's Climate Action Plan and the Smart City Strategic Action Plan, including regional efforts, that aim to leverage innovative technology and data tools to better serve and engage Chula Vista residents, enhance sustainability, improve public safety, promote local economic development and maximize tax payer dollars through increased efficiency of operations, and optimization of resources. The goals of the Smart City Strategic Action Plan are for the City to become more connected, responsive, transparent and innovative. FY2021 Office of Sustainability Key Accomplishments The goals of the pilot program will be to improve mobility options for the senior communities, provide connections to public transit and key community services, improve social determinants of health related to transportation accessibility, reduce greenhouse gas emissions, improve air quality, and reduce congestion. E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 0 T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n 2021/11/09 City Council Post Agenda Page 313 of 470 The City Council approved the Climate Equity Index in June 2021 as an important tool to promote equity through climate planning. The Climate Equity Index (CEI) provides a way to better understand equity in Chula Vista and to determine how climate planning can impact residents and track the impacts of actions over time. Chula Vista is the second city in the County to adopt a CEI. The City Council approved two new ordinances to support Climate Action Plan goals, reduce greenhouse gas emissions and improve building stock in Chula Vista by focusing on single and multi-family homes and commercial buildings over 20,000 s.f. The City of Chula Vista partnered with San Diego State University (SDSU) to install a second-life battery system at Veteran’s Park and Recreation Center. The battery storage will be used to store energy from a roof solar PV system which a peak power can supply 56kW, nearly 70% of the electric power needed for the Recreation Center. The City demonstrated its stewardship and environmental responsibility by motivating Partnered with the California Lighting Technology Center at UC DAVIS on a California Energy Commission grant for Renewable Energy & Advanced Lighting Systems for Exterior Applications to retrofit existing light fixtures and provide resiliency during power outages at SDG&E Park and will partner with South Bay Community Services. City Council approved seven climate action recommendations from the Climate Change Working Group in April 2021, which will be the basis for the upcoming Climate Action Plan update in 2022. Staff held 12 in-person and 6 virtual presentations to community organizations featuring the draft Zero Waste Plan to educate a total of 204 total attendees. Groups include: CLEAN Sustainability Series webinar, First Friday, Commission on Aging, Healthy Chula Vista Commission, Parks and Rec Commission, Chula Vista Kiwanis, Bonita Kiwanis, Chula Vista Rotary, Chula Vista Women’s Club, Chula Vista Chamber of Commerce’s Public Policy Committee, Board of Directors and a presentation to Chambers members in City Hall Council Chambers. Staff performed 160 face to face commercial waste reduction program assistance meetings. 12 Sustainable Home Toolkits were deployed at Chula Vista library locations for checkout, providing library patrons with tools and equipment to improve the sustainability of their home or small business helping save money, cut energy and water use, and reduce waste and carbon footprint. The City’s household hazardous waste program collected 548,189 lbs. (274 tons) of household hazardous waste(HHW) from 5,675 residents. The recycling program diverted 74,539 tons of recyclables from landfill disposal. FY2021 Office of Sustainability Key Accomplishments its employees to learn and take initiative to reduce energy use at work and at home during the month-long Energy Goals campaign, with participants taking 626 energy saving actions in the month of October. E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 1 T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n Actions Completed 56.6% Actions In Progress 31.3% Not Completed Due to COVID 12.1% Previous Work Plan Completion FY2021 Work Plan Performance (and LGP partnership ended) 2021/11/09 City Council Post Agenda Page 314 of 470 Support businesses in their economic recovery from the COVID-19 Pandemic S T R A T E G I C F O C U S A R E A #1 : E X P A N D I N G B U S I N E S S S U P P O R T G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Create and administer parklet and sidewalk café grant program and cover sewer capacity fees for businesses Provide funding to small businesses in a second grant program Choose Chula smart phone app Pilot Program Economic Development Ongoing Provide exceptional customer service to all businesses by tracking all commercial, industrial and office projects to ensure on- time delivery of service and permit issuance Ensure 90% of Tenant Improvement Permits are processed on time. Ongoing Provide additional information to businesses to support their operational success and recovery to operate in Chula Vista Continue providing newsletters to businesses (must have an email address on file with business license). Update the Economic Development Department webpages to improve accessibility and promote ease of use. Create a business resources guide to assist prospective and new businesses with navigating the process of opening, funding and expanding their businesses Q2 2022 Economic Development T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 2 Q4 2021-Q1 2022 Q3 2021 - Q4 2021 Economic Development Ongoing Q1 2022 Economic Development Economic Development Economic Development Economic Development 2021/11/09 City Council Post Agenda Page 315 of 470 Provide support and foster relationships with larger employers in the community S T R A T E G I C F O C U S A R E A #2 : I M P R O V I N G C O L L A B O R A T I O N & O U T R E A C H G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Hold CEO and industry meetings with larger employers (25+ employees) Economic Development Q2 2022 Strengthen economic development ecosystem relationships within the region Build and strengthen relationships with ecosystem partners: Chula Vista Chamber of Commerce, Asian Business Association, Hispanic Chamber of Commerce, Black Chamber of Commerce, Third Avenue Village Association, South County EDC, San Diego Regional EDC, Small Business Development Center, small business funding institutions (e.g. My Neighborhood National Bank) Convene working group meetings to educate/share on resources/services from ecosystem partners and to advance impactful initiatives and partnerships Collaborate regionally in the update to the Comprehensive Economic Development Strategy (CEDS) to ensure Chula Vista’s representation Q4 2021 – Q1 2022 T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 3 Economic Development Ongoing Q1 2022Economic Development Economic Development 2021/11/09 City Council Post Agenda Page 316 of 470 Continue the City’s efforts on the University-Innovation District to create a bi-national, multi- institutional center for higher education in Chula Vista S T R A T E G I C F O C U S A R E A #3 : S T R E N G T H E N I N G E C O N O M I C V I T A L I T Y G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Economic DevelopmentContinue conversations and explore next steps with ASU Local and Purdue Global Continue work on the Overlay Zone effort with HomeFed Discuss formation and timing with University Subcommittee to establish a proposed university nonprofit Complete marketing campaign and go-to-market strategy for university and industry audiences Participate strategically in legislative advocacy as needed (e.g. AB 1097) Continue supporting the development of Millenia Smart Park to spur office development T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 4 Ongoing Pursue disposition and development agreement for City owned property 707 F Street Champion a legislative fix to AB 1486, Surplus Lands Act (SB 51, Durazo) Secure a disposition and development agreement by 2024 Q3 2021Economic Development Q4 2023 Assist with timely TI processing for new businesses Support the addition of new events and marketing efforts Provide business grants for curb and sidewalk cafes Participate with Third Avenue Village Association Business/Property Improvement District to ensure continued revitalization, success and investment in the City’s downtown core Economic Development Q3 2021 Ongoing OngoingEconomic Development Economic Development Economic Development Economic Development Economic Development Economic Development Economic Development Economic Development Ongoing Ongoing Ongoing Ongoing Ongoing 2021/11/09 City Council Post Agenda Page 317 of 470 Prioritize and monitor Asset Management to maximize use of city's real property assets S T R A T E G I C F O C U S A R E A #3 : S T R E N G T H E N I N G E C O N O M I C V I T A L I T Y G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Economic DevelopmentNegotiate the rental or lease of city-owned properties that enhance revenues to the General Fund for public services Negotiate and assist in implementing master licensing agreements for micro and macro cell sites throughout the city T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 5 Ongoing Assist in the implementation of the Bayfront Redevelopment Participate and assist with securing the CLRRA Agreement Participation on implementation of the Gaylord of the Pacific Resort and Convention Center Provide opportunities for local procurement of food, materials and labor during the active construction period Create a policy to provide licensed Chula Vista food trucks exclusive access to provide food to construction and trade workers during the construction and building process Analyze a local restaurant delivery program to provide food from Chula Vista restaurants to construction and trade workers during the construction and building process Q4 2021Economic Development Ongoing with ground breaking Q1 2022 Q1 2022 Q1 2022 Ongoing Ongoing with ground breaking Q1 2022 Economic Development Economic Development Economic Development Economic Development Economic Development 2021/11/09 City Council Post Agenda Page 318 of 470 Assist in the development of the SPA for the Collins Aerospace / United Technology Campus 50 Acre SPA S T R A T E G I C F O C U S A R E A #3 : S T R E N G T H E N I N G E C O N O M I C V I T A L I T Y G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Economic Development T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 6 Continue the TechHire Program for Chula Vista residents to access internships, full-time tech jobs and training opportunities Partner with Development Services on planning and review of a regional technology park SPA that supports high-paying jobs on the Bayfront and is consistent with land uses desired for the Bayfront development Work with the SDRWQC Board on implementing the Clean Up and Abatement Order so that the land can be brought back to a vibrant land use Q3 and Q4 2021 Ongoing Partner with San Diego Workforce Partnership to continue the successful TechHire Program and provide access to 40 Chula Vista residents for the program Economic Development Ongoing Economic Development 2021/11/09 City Council Post Agenda Page 319 of 470 Update the 2017 Climate Action Plan Update S T R A T E G I C F O C U S A R E A #4 : D R I V I N G I N N O V A T I O N & S U S T A I N A B I L I T Y G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Office of Sustainability T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 7 Update and create Smart City policies that address areas of community concern while continuing to advance the smart city platform Update the City’s 2017 Climate Action Plan Implement Climate Equity Index Q1 2022 Q3 2021 and ongoing Engage with the community through outreach and education events such as workshops Create a data protection policy for Council consideration Q4 2021 and Q1 2022 Office of Sustainability Q4 2021 Organic Waste Education and Implementation (SB 1389) Implement an organic waste diversion program for residential and commercial generators and in compliance with State of California regulations Office of Sustainability Q4 2021 Develop a single-use plastics ban Develop a policy for City Council consideration Office of Sustainability Q1 2022 Adopt the City's first Zero Waste Plan Create a pathway to reduce the production of waste Office of Sustainability Q1 2022 Create policies to support a rescued urban wood/reclamation hub Create City policies and a “playbook” to encourage the use of rescued urban timber by creating a closed loop system, driving economic development through job creation and education opportunities and implementing components of the CAP Update City’s Tree Replacement policy to include urban tree rescue Office of Sustainability Q1 2022 Q1 2022Office of Sustainability Office of Sustainability Office of Sustainability 2021/11/09 City Council Post Agenda Page 320 of 470 Implement awarded Mobility Grant from CCDC and CMO for total of $2M S T R A T E G I C F O C U S A R E A #4 : D R I V I N G I N N O V A T I O N & S U S T A I N A B I L I T Y G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Office of Sustainability T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 8 Implement the Digital Equity and Inclusion Plan Implement senior shuttle services in western Chula Vista Q1 2022 and ongoing Establish public broadband services at publicly owned properties for equitable community use to address the digital divide Complete fiber exchange agreement with Media 3 OngoingOffice of Sustainability Q4 2021 Benchmarking Ordinance Implementation Continue implementation of the approved Benchmarking Ordinance Coordinate with SDG&E Codes and Standards team for support of marketing or program as it ramps up Office of Sustainability Ongoing Office of Sustainability Office of Sustainability Q3 2021 and ongoing Update the City Operations Sustainability Plan Work with inter-departmental Green Team to update the current plan Office of Sustainability Q2 2022 Guide installation of the CALeVIP electric vehicle chargers at a City parking lot near Third Avenue Collaborate with partner and various City departments and funding agency to ensure deadlines and milestones are being met Office of Sustainability Q4 2021 Implement partnership with UC Davis Lighting Technology Center on a California Energy Commission EPIC Grant Continue to improve and lead collaboration and outreach to the community to advance Smart City initiatives Collaborate with essential departmental and regional partnerships: City of San Diego, City of Carlsbad, Port of San Diego, San Diego Airport Authority, SANDAG, San Diego Regional Climate Collaborative, Cleantech and others Coordinate with UC Davis and South Bay Community Services on implementation of multi-year EPIC grant Office of Sustainability Q3 2021 Office of Sustainability Ongoing 2021/11/09 City Council Post Agenda Page 321 of 470 Champion the pursuit of city-wide policies and practices to advance equity and inclusion S T R A T E G I C F O C U S A R E A #5 : A D V A N C I N G E Q U I T Y & I N C L U S I O N G o a l S u p p o r t i n g A c t i o n s D i v i s i o n L e a d T i m e f r a m e Economic Development T H E P A T H F O R W A R D F Y 2 0 2 2 D e p a r t m e n t W o r k P l a n E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 1 9 Complete an equity and inclusion audit of internal and external practices and solicit RFPs for qualified firms to create an Equity and Inclusion Action Plan Lead a working group of internal departments including Finance and the City Attorney’s Office to develop an inclusive procurement policy for City Council consideration to prioritize doing business with local Chula Vista businesses and WBEs, DBEs, MBEs and VBEs Provide opportunities for tailored services and equitable access to capital and financial literacy for WBEs, DBEs, MBEs and VBEs based on city-obtained data in the business license process Identify local engineering and trade contractors that the City needs and create a list of small, local contractors eligible to provide services to the City and work with Finance and Engineering to develop a policy Continue participation with San Diego Regional EDC’s Inclusive Growth Initiative Q4 2021 Q1 2022Economic Development Economic Development Economic Development Economic Development Q1 2022 Q1 2022 Ongoing 2021/11/09 City Council Post Agenda Page 322 of 470 Economic Development Economic Development Administration E C O N O M I C D E V E L O P M E N T D E P A R T M E N T O R G A N I Z A T I O N A L C H A R T Successor Agency to RDA Eric Crockett Deputy City Manager Animal Care Department Information & Technology Services E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 0 Miranda Evans Special Projects Manager Kevin Pointer Senior Economic Development Specialist Rick Ryals Real Property Manager Michael Terlep Undergraduate Intern Monica Rodriguez Administrative Technician Office of Sustainability Manuel Medrano Environmental Services Manager Coleen Wisniewski Environmental Sustainability Manager Dennis Gakunga Chief Sustainability Officer Cory Downs Conservation Specialist II Barbara Locci Conservation Specialist II Robert Coleman Conservation Specialist I Yasemin Corrales Conservation Specialist II Alex Ruiz-Velasco Conservation Specialist II Dave DiDonato Recycling Specialist II Mike Hice Recycling Specialist II Martie Solomon Recycling Specialist II Joe Coppola Recycling Specialist II Victor Sanchez Recycling Specialist II Gabriel Castillo Graduate Intern Oil Payment Program Grants VACANT Recycling Specialist I VACANT Senior Recycling Specialist 2021/11/09 City Council Post Agenda Page 323 of 470 He currently focuses his efforts on the redevelopment of the Chula Vista Bayfront, the revitalization of Western Chula Vista and the attraction of a new four-year university or universities to Eastern Chula Vista. He holds a master’s degree in Public Administration from San Diego State University, is a certified planner and is an active member of the Urban Land Institute. Favorite aspect of working in Chula Vista: "Helping community members and applicants navigate the bureaucracy is something I take pride in and have fun doing. I have the privilege of working directly with true entrepreneurs in our community to provide them with the tools they need to be successful. I get to come to work every day and collaborate across all departments in City Hall on projects like nowhere else." E C O N O M I C D E V E L O P M E N T T h e S e n i o r M a n a g e m e n t T e a m E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 1 Eric Crockett, Deputy City Manager Eric Crockett is the Deputy City Manager for the City of Chula Vista and plays a catalytic role in guiding the community’s sustainable economic development. As Deputy City Manager, Eric manages 45.25 full-time equivalent (FTE) positions in Economic Development, The Animal Care Department and Information and Technology Services. Eric also oversees the Successor Agency to the Redevelopment Agency. Eric contributes a wealth of knowledge to the City accumulated from over two decades of experience working in local government, specifically in economic development, redevelopment, brownfield property transactions, affordable housing, planning and engineering. Miranda Evans, Special Projects Manager Miranda Evans is a self-described civic dreamer and doer. She has served the City of Chula Vista for over three years using her background in development services and administration to provide assistance and concierge services to Chula Vista businesses and to support city leadership in managing and advancing a variety of special projects in Economic Development and the City Manager’s Office. One of the special projects under her purview is the University-Innovation District and bringing the City’s long-time vision of a multi-institutional, bi-national university to fruition. Miranda holds a master’s degree in Public Administration from San Diego State University, a graduate certificate in City Management from Villanova University, a professional certificate in Leading Smart Communities from Pepperdine University and is currently studying to earn a master’s degree in Political Psychology from Arizona State University as part of the university’s second cohort. She is a proud member of the ICMA where she was accepted into the nationwide Emerging Leaders Development Program. She also participates with the Council of Development Finance Agencies and the International Economic Development Council. Favorite aspect of working in Chula Vista: "I love what I do and enjoy the people I get to do it with. City leadership provides me with the opportunity to use my superpowers of curiosity, creativity and problem solving to provide exceptional work products to benefit businesses and the community. Having the privilege of working on the most exciting projects in the region keeps me energized." 2021/11/09 City Council Post Agenda Page 324 of 470 Proudest Achievement working for the City of Chula Vista: "My contributions to several key environmental health, safety and quality of life protection programs for my very own city make me proud. These programs continue to help our residents and businesses and are recognized as sample programs for other communities." E C O N O M I C D E V E L O P M E N T T h e S e n i o r M a n a g e m e n t T e a m E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 2 Manuel Medrano, Environmental Services Manager Manuel Medrano began his career with the City of Chula Vista in January of 2000 as an intern while attending San Diego State University. Manuel’s experience has been developed by working on all of the City’s waste reduction and recycling programs under the tutelage of excellent former environmental program developers. Manuel’s interest in sustainability was cultivated while growing up in Tijuana, Mexico as he saw a strong need for environmental stewardship and the importance to protect natural resources. In his youth he often visited family in Chula Vista and finally moved as a teen to western Chula Vista where he still resides and is raising his family. Manuel sits on the boards of the California Resource Recovery Association, the California Product Stewardship Council, was selected as a commissioner in the California Statewide Commission of Recycling Markets and Curbside Recycling and is President of the California Association of Recycling Market Development Zones. Dennis Gakunga, Chief Sustainability Officer Dennis Gakunga leads and directs the City of Chula Vista’s Office of Sustainability team and the Smart City program. His responsibilities include managing the implementation of Citywide sustainability programs, policies and smart city initiatives. Dennis is on the Board of Directors for Cleantech San Diego and the leadership team of the San Diego Regional Smart Cities Collaborative, a multi- agency initiative involving the City of San Diego, Carlsbad, Port of San Diego, San Diego International Airport and SANDAG. His previous experience includes serving as a Department Director and Assistant Director for multiple municipalities and public agencies in Texas and California. Dennis has also worked as a management consultant for Deloitte Consulting, IBM Business Consulting and PWC Consulting. He holds a master’s degree in Public Administration from Syracuse University and a B.S. in Information Systems and Management Sciences from the University of Texas, Arlington. Favorite aspect of working in Chula Vista: "I enjoy working closely with city leadership, department heads, staff, as well as City residents, businesses and regional agencies on various programs, policies and initiatives to help the City realize its vision to become a world-class smart and sustainable city." 2021/11/09 City Council Post Agenda Page 325 of 470 E C O N O M I C D E V E L O P M E N T T h e S e n i o r M a n a g e m e n t T e a m E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 3 Coleen Wisniewski, Environmental Sustainability Manager Coleen Wisniewski joined the City in 2016 and has over 19 years of program management experience in the conservation field. Coleen manages a team involved in coordinating community-focused programs related to energy efficiency, renewable energy, green buildings, alternative fuels, greenhouse gas emissions, climate change, water conservation, watershed protection and general sustainability. She previously managed the City’s Local Government Partnership with SDG&E and focuses on sustainable city operations. Coleen is an Advisory Board Member at the San Diego Regional Climate Collaborative. Prior to joining the City, Coleen worked with various NGOs where she managed environmental programs that tracked California’s ocean health and associated water quality and climate change issues, taught educational curricula for adults and children and worked with fishing cooperatives in Baja California, Mexico Mexico to monitor Marine Protected Areas. Coleen has a B.S. in Biological Sciences from Rutgers University. Favorite aspect of working in Chula Vista: "I get to work with most of the departments in the City, promoting sustainability across all sectors and helping to ensure there is always a sustainability focus wherever possible in the work the City does." Kevin Pointer, Senior Economic Development Specialist Kevin Pointer supports the department’s key Economic Development strategic focus areas by providing advanced level technical and analytical work with the goal of generating economic prosperity in the community. In his role he develops and implements programs that provide direct business support to the thousands of Chula Vista businesses seeking to locate, thrive and grow in Chula Vista. In his 18- plus years of working in local government, he has gained extensive experience in areas including economic development, real estate and land use planning. Some of Kevin’s key responsibilities include the development of City-owned 707 F Street, supporting the economic vitality of the City’s historic Downtown District, and helping businesses recover from the economic impacts of the pandemic. Kevin holds a master’s degree in Public Administration from San Diego State University, a bachelor’s in Urban Studies and Planning from UC San Diego and a Certificate in Public Participation from the International Association of Public Participation. He is currently pursuing a Real Estate Finance, Investments and Development certificate from University of San Diego. Favorite aspect of working in Chula Vista: "I love driving real and positive change that has a direct impact on the lives of business owners, employees and residents in our community. One of the most rewarding experiences I have had is developing and administering a grant program that directed $1.3 million in CARES Act funding to 270 businesses to sustain them through the pandemic.” 2021/11/09 City Council Post Agenda Page 326 of 470 Proudest Achievement working for the City of Chula Vista: "I am proud of my work rearranging the management of our assets to increase utilization and generate income to make them more sustainable. In reflecting back on my tenure with the City, I am most proud of creating from the ground up, and implementing, a Real Property Services discipline within the city." E C O N O M I C D E V E L O P M E N T T h e S e n i o r M a n a g e m e n t T e a m E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 4 Rick Ryals, Real Property Manager Rick Ryals brings 40 years of municipal real estate management experience to his role as Real Property Manager. In this capacity he is responsible for all aspects of municipal real estate including appraisals and valuations, right-of-way acquisition and relocation services, as well as the disposition, management, control and disposal of the City’s real estate assets. Rick is well respected in his field and has a proven track record of integrating private sector business principles into agency practices to increase efficiency and minimize staff cost. After a four-decade career in municipal government, Rick will be celebrating his retirement in December 2021. His sense of humor, quick wit, institutional knowledge and can-do attitude will be sincerely missed by his friends and colleagues. 2021/11/09 City Council Post Agenda Page 327 of 470 C O N T A C T U S W e 'l l G e t B a c k t o Y o u E C O N O M I C D E V E L O P M E N T W O R K P L A N F Y 2 0 2 2 P A G E 2 5 Coleen Wisniewski, Environmental Sustainability Manager Dennis Gakunga, Chief Sustainability Officer Manuel Medrano, Environmental Services Manager Miranda Evans, Special Projects Manager Eric Crockett, Deputy City Manager ecrockett@chulavistaca.gov mevans@chulavistaca.gov Business Assistance & Concierge Service business@chulavistaca.gov dgakunga@chulavistaca.gov mmedrano@chulavistaca.gov cwisniewski@chulavistaca.gov Kevin Pointer, Senior Economic Development Specialist kpointer@chulavistaca.gov 2021/11/09 City Council Post Agenda Page 328 of 470 City of Chula Vista City Hall 276 Fourth Avenue Chula Vista, CA 91945 www.chulavistaca.gov Produced by Miranda Evans, Economic Development / City Manager's Office ECONOMIC DEVELOPMENT DEPARTMENT WORK PLAN F Y 2 0 2 2 @ThinkChulaVista Here to serve you: business@chulavistaca.gov 2021/11/09 City Council Post Agenda Page 329 of 470 Economic Development Department Work Plan Reporting on our progress, actions and the path forward Presented by: Eric Crockett, Deputy City Manager & Miranda Evans, Special Projects Manager 2021/11/09 City Council Post Agenda Page 330 of 470 Presentation Outline Economic Development Work Plan November 9, 2021 A b o u t U s F Y 2 0 W o r k P l a n R e p o r t i n g S t r a t e g i c F o c u s A r e a s C O V I D E c o n o m i c R e c o v e r y P l a n I n d i c a t o r s R e p o r t i n g L o o k i n g A h e a d 2021/11/09 City Council Post Agenda Page 331 of 470 6 6 % o f 2 7 a c t i o n s w e r e c o m p l e t e d (1 8 ) 3 3 % r e m a i n i n g a r e s t i l l i n p r o g r e s s (9 ) 5 6 .5 % o f 1 6 a c t i o n s c o m p l e t e d (9 ) 3 1 % a c t i o n s i n p r o g r e s s (5 ) 1 2 .1 % n o t c o m p l e t e d d u e t o C O V I D a n d L G P p a r t n e r s h i p e n d e d (2 ) Economic Development Department Work Plan 11.09.21 F Y 2 0 W o r k P l a n R e p o r t i n g E c o n o m i c D e v e l o p m e n t A d m i n i s t r a t i o n O f f i c e o f S u s t a i n a b i l i t y Completed 56.6% In Progress 31.3% Not Completed 12.1% Completed 66.7% In Progress 33.3% 2021/11/09 City Council Post Agenda Page 332 of 470 100% C O V I D -1 9 E C O N O M I C R E C O V E R Y P L A N F I N A N C I A L A S S I S T A N C E (5 /5 ) Economic Development Department Work Plan 11.09.21 T E C H N I C A L A S S I S T A N C E (5 /5 ) M A R K E T I N G & P R O M O T I O N (2 /2 ) B U S I N E S S F R I E N D L Y C I T Y P O L I C I E S (9 /9 ) C O N T I N U I N G E C O N O M I C D E V E L O P M E N T P R O J E C T S (4 /4 ) 2021/11/09 City Council Post Agenda Page 333 of 470 11,553 Registered Businesses 4,875 Brick & Mortar Businesses (excludes businesses located outside of Chula Vista such as contractors, home-based businesses, apartment complexes, mobile-home parks, hotels/motels) 4,179 Small Businesses (10 or fewer employees) 86% of businesses are small...but mighty (10 or fewer employees) MBE VBEWBE DBE 617 1,052 135 60 Women-Owned Businesses Enterprises Minority-Owned Businesses Enterprises Veteran-Owned Businesses Enterprises Disabled-Owned Businesses Enterprises * *Data is self reported through the business license application and renewal process and does not represent the entire universe of licensed business owners. Data represents ownership reported of brick and mortar businesses only. Industrial Space Office Space Retail Space 99.3% leased of 7.8M s.f. of inventory 0.7% Vacancy Rate - 1.0% from prior period (1.7%) 94.7% leased of 3.4M s.f. of inventory 95.5% leased of 10.6M s.f. of inventory $91 M of value added to Chula Vista from new non-residential buildings $1.20 market rent/s.f. +7.4% from prior period ($1.11) 5.3% Vacancy Rate $2.65 market rent/s.f. - 0.6% from prior period (5.9%) +2.7% from prior period ($2.58) 4.8% Vacancy Rate +1.4% from prior period (3.4%) $2.45 market rent/s.f. +1.0% from prior period ($2.42) Indicators Businesses State of the Market 2021/11/09 City Council Post Agenda Page 334 of 470 MarCom Platinum Award N o v e m b e r 2 0 2 1 IEDC Silver Award in Economic Development Excellence O c t o b e r 2 0 2 1 a n a w a r d -w i n n i n g s m a l l b u s i n e s s m u l t i -m e d i a m a r k e t i n g s u p p o r t c a m p a i g n w i t h o v e r 2 m i l l i o n i m p r e s s i o n s o n s o c i a l m e d i a e n c o u r a g i n g p e o p l e t o s h o p , d i n e a n d s t a y l o c a l t o s u p p o r t C h u l a V i s t a b u s i n e s s e s . A s p a r t o f t h e c a m p a i g n , t h e a u d i e n c e i s i n v i t e d t o t a k e a v i s u a l j o u r n e y i n t o C h u l a V i s t a b u s i n e s s e s a t e x p l o r e c h u l a v i s t a .c o m w h e r e t h e y c a n w a t c h a s e r i e s o f v i d e o s s h o w c a s i n g l o c a l b u s i n e s s e s a n d w h y t h e y c h o o s e t o b u i l d n o t o n l y t h e i r b u s i n e s s e s , b u t o f t e n t h e i r f a m i l i e s , f r i e n d s h i p s a n d l i v e s i n C h u l a V i s t a . Economic Development Work Plan I November 9, 2021 Communicator Award of Excellence Honorable Mention Hermes Creative Awards for Pandemic Response D e c e m b e r 2 0 2 0March 2 0 2 1 We built THIS is 2021/11/09 City Council Post Agenda Page 335 of 470 Strategic Focus Areas E c o n o m i c D e v e l o p m e n t 's G u i d i n g P r i o r i t i e s 1 2 3 4 5 EXPANDING BUSINESS SUPPORT IMPROVING COLLABORATION & OUTREACH STRENGTHENING ECONOMIC VITALITY DRIVING INNOVATION & SUSTAINABILITY ADVANCING EQUITY & INCLUSION Economic Development Department Work Plan 11.09.21 2021/11/09 City Council Post Agenda Page 336 of 470 Economic Development Department Work Plan | 11.09.21 Expanding Business Support STRATEGIC FOCUS AREA 1: Promote an environment for residents and businesses to prosper 2021/11/09 City Council Post Agenda Page 337 of 470 0 3 /0 3 T H E P A T H F O R W A R D Expanding Business Support Goals STRATEGIC FOCUS AREA 1: Promote an environment for residents and businesses to prosper Support businesses in their economic recovery from COVID-19 Pandemic Provide exceptional customer service to all businesses by tracking TI's Provide additional support to businesses to support their operational success and recovery Economic Development Department Work Plan 11.09.21 2021/11/09 City Council Post Agenda Page 338 of 470 Economic Development Department Work Plan | 11.09.21 Improving Collaboration & Outreach STRATEGIC FOCUS AREA 2: Collaborate with regional and bi-national partners to strengthen the region and promote sustainable economic development 2021/11/09 City Council Post Agenda Page 339 of 470 0 3 /0 3 T H E P A T H F O R W A R D Improving Collaboration & Outreach STRATEGIC FOCUS AREA 2: Collaborate with regional and bi-national partners to strengthen the region and promote sustainable economic development Provide support and foster relationships with larger employers in the community Strengthen economic development ecosystem relationships within the region Economic Development Department Work Plan 11.09.21 2021/11/09 City Council Post Agenda Page 340 of 470 Economic Development Department Work Plan | 11.09.21 Strengthening Economic Vitality STRATEGIC FOCUS AREA 3: Foster the economic development efforts of existing assets and key development projects 2021/11/09 City Council Post Agenda Page 341 of 470 0 3 /0 3 T H E P A T H F O R W A R D Strengthening Economic Vitality STRATEGIC FOCUS AREA 3: Foster the economic development efforts of existing assets and key development projects Continue the City's efforts on the UID Pursue disposition and development agreement for 707 F Street Participate with TAVA Real Property Management - city assets Assist in the implementation of the Bayfront Redevelopment Assist in the development of the SPA for Collins Aerospace/UTC Campus Continue the TechHire Program Economic Development Department Work Plan 11.09.21 2021/11/09 City Council Post Agenda Page 342 of 470 Economic Development Department Work Plan | 11.09.21 Driving Innovation & Sustainability STRATEGIC FOCUS AREA 4: Provide high quality services and programs that balance social, economic and environmental needs of current and future generations 2021/11/09 City Council Post Agenda Page 343 of 470 0 3 /0 3 T H E P A T H F O R W A R D Driving Innovation & Sustainability STRATEGIC FOCUS AREA 4: Provide high quality services and programs that balance social, economic and environmental needs of current and future generations Update the 2017 Climate Action Plan Advance the Smart City platform and initiatives SB 1389 Organic Waste implementation Bring forth a single use plastics ban for Council consideration Zero Waste Plan Create policies to support an Urban Wood Hub Implement the mobility grant senior shuttle Implement Digital Equity and Inclusion Plan Benchmarking Ordinance Implementation Operations Sustainability Plan Economic Development Department Work Plan 11.09.21 2021/11/09 City Council Post Agenda Page 344 of 470 Economic Development Department Work Plan | 11.09.21 Advancing Equity & Inclusion STRATEGIC FOCUS AREA 5: Rebuild the local economy while prioritizing equity and inclusion 2021/11/09 City Council Post Agenda Page 345 of 470 0 3 /0 3 T H E P A T H F O R W A R D Advancing Equity & Inclusion STRATEGIC FOCUS AREA 5: Rebuild the local economy while prioritizing equity and inclusion Champion the pursuit of policies and programs to advance equity and inclusion Equity and Inclusion RFP Inclusive procurement policy More equitable and inclusive business support Contracting policy SDREDC Inclusive Growth Iniatiative Economic Development Department Work Plan 11.09.21 2021/11/09 City Council Post Agenda Page 346 of 470 Thank you for your time! Questions? w w w .c h u l a v i s t a c a .g o v /b u s i n e s s e s2021/11/09 City Council Post Agenda Page 347 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Short-Term Rentals: Consideration of Adopting a Short-Term Rental Ordinance, Adopting Related Permit Fees, and Adding Enforcement Staffing Report Number: 21-0209 Location: No specific geographic location Department: Development Services Environmental Notice: 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. Recommended Action A) Place an ordinance on first reading adding Chapter 5.68 (Short-Term Rentals) to the Chula Vista Municipal Code, establishing regulations, standards, and a permitting process for Short-Term Rentals (First Reading) and B) Adopt a resolution amending Chapter 4 (Business Fees) of the City’s Master Fee Schedule to add Short- Term Rental permitting fees, adding 1.0 Code Enforcement Officer II to the Development Services Department, and appropriating funds therefor. (4/5 Vote Required). SUMMARY The popularity of the short-term rental (less than thirty (30) days) of residential dwelling units (“Short-Term Rentals”) in the City of Chula Vista has grown rapidly in recent years. This has led to an increase in complaints from neighbors regarding nuisance activities and the loss of neighborhood character. On August 25, 2020, the City Council made a referral to staff to bring forward an overview of Short-Term Rentals. The requested overview was presented to the City Council on March 16, 2021. At that time, staff recommended, and the City Council supported, conducting stakeholder outreach and returning with a comprehensive ordinance to regulate the operation of Short-Term Rentals. Stakeholder outreach has been conducted and an ordinance adding Chapter 5.68 (Short-Term Rentals) to the Chula Vista Municipal Code, establishing regulations, standards, and a permitting process for Short-Term Rentals is recommended for adoption (the “Short-Term Rental Ordinance” or the “Proposed Ordinance”). 2021/11/09 City Council Post Agenda Page 348 of 470 P a g e | 2 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Short-Term Rentals, in which hosts can make a spare room or an entire dwelling unit available to potential renters for a period of less than thirty (30) days are becoming increasingly popular. These transactions are usually made through a residential hosting platform website such as Airbnb, VRBO, Homeaway, Flipkey, and others. This type of vacation rental lodging has, to a certain extent, supplanted traditional lodging options such as hotels and bed-and-breakfasts. This increase in popularity has coincided with a larger rise in the “sharing economy” in which people rent cars, homes, beds, or other goods directly from other individuals, generally through internet hosting sites. These activities can generate significant financial benefits and enrich the lives of the hosts. At the same time, the City has received a significant number of complaints regarding operation of certain Short-Term Rentals in the City, generally relating to noise, parking, and trash impacts. On August 25, 2020, the City Council made a referral to staff to bring forward an overview of Short-Term Rentals. On March 16, 2021, a presentation regarding Short-Term Rentals and potential regulatory approaches was made to the City Council. The City Council directed staff to conduct additional stakeholder outreach and to return with a regulatory ordinance that establishes 1) a simple and low-cost permitting process for Short-Term Rentals; 2) reasonable “good neighbor” rules of conduct for Short-Term Rental operators and their guests; and 3) significant penalties for “bad actors” that do not comply with the ordinance. Since the discussion with City Council in March, staff has conducted stakeholder outreach and continued to research best practices in this rapidly evolving regulatory space. Stakeholder Outreach The Development Services Department held two listening sessions in August 2021 to solicit community input on the contents of the draft ordinance. Events were held on August 25th at the Friendship Deck at the Civic Library and on August 26th at Salt Creek Recreation Center. In addition, an online survey was conducted. Both the in-person event and the online survey were promoted via the City’s website and social media. The online survey was available from August 11th through October 26th, and a total of 110 online survey submissions were received. In person attendees of the listening sessions were generally evenly distributed between operators and proponents of Short-Term Rentals and opponents. Respondents to the online survey skewed toward non-operators and opponents. Results of the online survey are summarized in Attachment 1. Airbnb also reviewed the draft ordinance and provided feedback. 2021/11/09 City Council Post Agenda Page 349 of 470 P a g e | 3 Community Benefits Short-Term Rentals bring benefits to those who operate them and their guests. The activity makes efficient use of space by allowing residents to host guests in a room or unit when it might otherwise go unused. The City has heard testimony from individuals who use Short-Term Rentals as a way to afford staying in their own homes as well as to have meaningful, culturally enriching interactions with visitors from around the world. Given the significant housing affordability challenges in the region, Short -Term Rentals provide an option to reduce the housing cost burden for some families. For visitors, Short-Term Rentals often offer a more affordable and flexible option than a traditional hotel. Many types of travelers benefit from a more residential environment, including families with children, travelers with pets, and large groups. Kitchens are often available as part of Short-Term Rentals, which is an added benefit to many travelers. Many visitors also enjoy the experience of being a local neighborhood, as opposed to a typical commercial hotel district. As such, Short-Term Rentals have the potential to bring tourists to neighborhoods that may be underserved by hotels and therefore ordinarily do not receive tourist dollars. Community Concerns There are two key areas of concern relating to Short-Term Rentals: nuisance activity and impact on the City’s housing stock. Nuisance Activity Short-Term Rental nuisance activities that have been reported include instances of loud noise, parties, trash, inconsiderate guests, excessive coming and going, and impacts to on-street parking availability. More broadly, some neighbors of Short-Term Rentals feel that these activities change the very character of their residential neighborhoods, as long-term residents are replaced with short-term guests. Impacts to Housing Stock Many have expressed concern regarding the potential impact of Short-Term Rentals on an already strained housing market. To the extent that rental housing units are removed from the long-term housing market to be used solely for short-term purposes, overall residential housing supply is reduced, and the lack of housing is exacerbated. When units intended for long-term rental are lost to short-term rental, the City’s housing production goals are undercut. For every unit that is converted to short-term use, another unit must be created to make up for the loss. Any decrease in the supply of residential units available for the City ’s permanent residents may put upward pressure on prices. Recent research published in the Harvard Business Review found “…that a 1% increase in Airbnb listings is causally associated with a 0.018% increase in rental rates and a 0.026% increase in house prices. While these effects may seem very small, consider that Airbnb’s year-over-year average growth is about 44%. This means that, in aggregate, the growth in home-sharing through Airbnb contributes to about one-fifth of the average annual increase in U.S. rents and about one- seventh of the average annual increase in U.S. housing prices.”1 1 Harvard Business Review. Research: When Airbnb Listings in a City Increase, So Do Rent Prices. https://hbr.org/2019/04/research-when-airbnb-listings-in-a-city-increase-so-do-rent-prices 2021/11/09 City Council Post Agenda Page 350 of 470 P a g e | 4 Proposed Ordinance Eligible Dwelling Units The Proposed Ordinance employs a “primary-residence only” framework in order to limit the previously described community concerns, while still providing an avenue for the many positive benefits of Short-Term Rentals. As proposed, Chula Vista residents would be allowed to rent out the entirety of their primary residences for up to ninety (90) days per year (“Whole-Home Rental”). They would also be allowed to rent out any portion of their primary residence, without any time limit (“Partial-Home Rental”). Applicants will be able to document their primary residence by providing at least 2 of the following: 1. Motor vehicle registration; 2. Driver’s license; 3. Voter registration; 4. Tax documents showing the residential unit as their residence; or 5. Utility bill. Under the Proposed Ordinance, long-term tenants (renters or lessees) would also be allowed to operate Short-Term Rentals, with the approval of the landowner. This approval must be in writing, on a form to be provided by the City. This allows tenants of multifamily projects, duplexes, and tenants of certain Accessory Dwelling Units (“ADUs”), Junior Accessory Dwelling Units (“JADUs”) to participate in this aspect of the sharing economy. In these circumstances, each individual unit that can be demonstrated to be someone’s primary residence would be treated as an individual dwelling unit for purposes of implementing th e Short- Term Rental Ordinance. Pursuant to Assembly Bill 68 (and as implemented by Chula Vista Municipal Code Chapter 19.58), ADUs and JADUs for which permits were applied for on January 1, 2020 or later cannot be rented for periods of less than thirty (30) days. As a result, these units may not be permitted as Short-Term Rentals. ADUs and JADUs for which permits were applied for prior to January 1, 2020 and other similar habitable accessory units (casitas, guest houses, etc., regardless of permitting date) are eligible to be permitted. To the extent that these units house a long-term tenant or the property owner, they would be treated like any other Short-Term Rental unit (Whole-Home Rental for up to 90 days per year, unlimited Partial-Home Rental). To the extent that these units are not a primary residence, they are combined with the associated single-family residence and treated as a single dwelling unit for purposes of this ordinance. This means that the entirety of the property (both the single-family dwelling and the accessory dwelling) could be rented out for up 90 days per year as a Whole-Home Rental, or one of the units could be rented out at any time, without any limit, so long as the remaining unit on the property were to be occupied (functioning then as a Partial-Home Rental). Limiting Nuisance Behavior & Protecting Guest Safety The Proposed Ordinance includes extensive requirements for operators of Short-Term Rentals (the “Permittees”), designed to encourage “Good Neighbor” behaviors and to protect the safety of the rental’s guests. These include requiring the identification of a local contact person (if other than the Permittee) that will be available by telephone twenty-four (24) hours per day, seven (7) days per week to respond to complaints regarding the use, condition, operation or conduct of occupants of the Short-Term Rental Unit 2021/11/09 City Council Post Agenda Page 351 of 470 P a g e | 5 (the “Local Contact Person”). The Local Contact Person must be on the premises within one (1) hour of contact, if requested by an Enforcement Officer (as defined in the ordinance) or the City’s Police Department. Each Short-Term Rental Unit will be required to post a Good Neighbor Handout inside the permitted residence that includes emergency contact information for the Permittee and the Local Contact Person (if different). The Good Neighbor Handout will provide information pertinent to the neighborhood where the Short-Term Rental is located, including, but not limited to, occupancy limits, parking restrictions, restrictions on noise and amplified sound, trash collection schedule, and fire evacuation routes. In addition, the Permittee will be required to complete and deliver a Good Neighbor Letter to their neighbors . The letter will be in a form provided by the City and will provide notice of their intent to operate a Short-Term Rental and include fields for them to provide their emergency contact information. Examples of a Good Neighbor Handout and Good Neighbor Letter are provided as Attachment 2. The maximum occupancy for Short-Term Rentals will be limited to two (2) persons per bedroom, plus two (2), up to a maximum of ten (10) persons (excluding children under the age of twelve (12)). For events exceeding the maximum authorized occupancy, the Permittee may apply for a Short-Term Rental Event Permit (an “STR Event Permit”). Up to twelve (12) STR Event Permits may be issued per year for each Short- Term Rental Unit. Each STR Event Permit will have a maximum term of twelve (12) hours. Events exceeding this period would require an additional STR Event Permit. The Proposed Ordinance allows for inspection of the rental property but does not impose a regular inspection requirement. Should the City respond to a complaint, or proactively conduct an inspection, and find that the unit is not being operated in conformance with the requirements of the ordinance, significant penalties may be assessed. The minimum stay authorized by the Proposed Ordinance is one (1) night. Permitting Framework Short-Term Rental Permits (applications and renewals) will be issued by the Development Services Department, as will the previously described STR Event Permits. The Proposed Ordinance describes considerations in approving or denying permit applications and establishes an appeal procedure for same. The City Manager is authorized to establish additional administrative rules, regulations, and standards governing the issuance, denial, or renewal of Short-Term Rental Permits and Short-Term Rental Event Permits, which will be published to the City’s website and maintained and available to the public in the Office of the City Clerk. Hosting Platform The Proposed Ordinance establishes certain responsibilities for the hosting platforms that advertise and facilitate Short-Term Rentals (the “Hosting Platforms”). Under the Proposed Ordinance, Hosting Platforms are required to discontinue and remove any listing of an unpermitted rental upon written or electronic notification from the City. The Hosting Platforms are also required to provide certain information to any Person listing a Short-Term Rental on their site, including the requirements of the Short-Term Rental Ordinance and the City’s TOT requirements. 2021/11/09 City Council Post Agenda Page 352 of 470 P a g e | 6 The Proposed Ordinance requires the Hosting Platform to collect TOT at the same time they facilitate the rental transaction, and to remit TOT to the City on a monthly basis. It also requires monthly reporting of certain rental transaction information to the City. Lastly, certain records must be maintained by the Hosting Platform for a period of four (4) years from the date of the transaction, which must be delivered to the City upon request for auditing purposes. Violations and Penalties Citations for violation of the Short-Term Rental Ordinance may be issued by the City’s Police Department or any Enforcement Officer. When a violation occurs, it is not necessary to first issue a warning before a citation may be issued. Potential violations are classified as either major or minor. Major violations include: 1) operating a Short-Term Rental without a permit; 2) exceeding the maximum occupancy of the Short-Term Rental Unit without securing a Short-Term Rental Event Permit; 3) occupants engaging in loud or disorderly conduct outside between the hours of 10:00 p.m. and 9:00 a.m.; 4) failure of the Permittee, their Agent, and/or the Local Contact Person to respond within one (1) hour and reasonably cooperate; 5) unpermitted use of a garage as a game room or for sleeping purposes; 6) criminal activities by the Permittee, their Agent, the Local Contact Person, or any Occupant on the premises; 7) any other violation of the Short-Term Rental Ordinance determined by the City Manager to constitute a serious threat to the public health or safety of the community; and 8) four (4) minor violations of any type in connection with the same Short-Term Rental Unit or Short- Term Rental Property during any continuous twelve (12) month period. Minor violations include: 1) failure to obtain the signature of the Responsible Person acknowledging the rules; 2) failure to pay transient occupancy tax (“TOT”) for the Short-Term Rental; and 3) all other violations of law, ordinance, resolution or permit condition that does not constitute a “major violation”. Penalty amounts are summarized in the table below. Subsequent penalty amounts assume additional violations within a twelve (12) month period. 2021/11/09 City Council Post Agenda Page 353 of 470 P a g e | 7 Table 1 – Ordinance Violation Penalties (Not-to-Exceed) Applies To Minor/Major Violation 1st 2nd 3rd & 4th 5th and + Owner, Long-Term Tenant, Permittee, Permittee’s Agent, Local Contact Person, Responsible Person, Occupant(s) Minor $100 $500 $1,000 $1,500 Major $1,000 $2,000 $4,000 + Possible Revocation $5,000 + Possible Revocation Hosting Platform Any $500 $1,000 $2,000 $2,000 In addition to the penalties described above, any person violating the provision of the Short-Term Rental Ordinance would be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for a period of not more than six months, or by both a fine and imprisonment. At the sole option of the City Prosecutor, any violation of the Proposed Ordinance may be cited and prosecuted as an infraction, and each day that a violation continues, it is deemed to be a new and separate offense. No proof of knowledge, intent, or other mental state is required to establish a violation. Provisions for public nuisance abatement are also included. Effective Date Assuming its ultimate adoption, the Proposed Ordinance would be effective on January 1, 2022, with the exception of Sections 5.68.040 (Permit Required), 5.68.080 (Renewals), 5.68.120 (Short-Term Rental Event Permit), and 5.68.150 (Responsibilities of Hosting Platforms). The remaining sections would take effect and be in force as of July 1, 2022. This approach provides time for current operators to come into permitting compliance, while providing immediate enforcement tools to address nuisance behaviors. Violations of the effective sections of the Short-Term Rental Ordinance in the interim may be cause for denial of a future Short- Term Rental Permit application. Current Short-Term Rental Inventory The City currently contracts with Host Compliance for Short-Term Rental compliance monitoring. At this time, their primary focus is on registration of Short-Term Rental Units (for purposes of the City Transient Occupancy Tax (“TOT”) Ordinance) and collection of TOT. For the following discussion, please note that each Short-Term Rental may be reflected multiple times in the Host Compliance data, as each unit may have multiple options and may be listed on multiple platforms (e.g., a single-family residence may be offered on VRBO as a Whole-Home Rental, and also offered on Airbnb as a one-bedroom Partial-Home Rental and as a two-bedroom Partial-Home Rental; this property would then be included 3 times in the Host Compliance report). There are currently 125 active, registered Short-Term Rental listings in Chula Vista (104 Whole-Home Rentals and 21 Partial-Home Rentals). An additional 128 active Short-Term Rental listings are currently operating without registering or remitting TOT to the City (80 Whole-Home Rentals and 48 Partial-Home Rentals). Efforts are underway to bring these units into compliance, which would bring the City to a total of 253 active Short-Term Rental Units. Host Compliance has identified an additional 1,258 Short-Term Rental listings that are no longer offered (676 Whole-Home Rentals and 582 Partial-Home Rentals). An additional 98 listings have been identified but not yet conclusively determined to be operating as Short-Term Rentals. 2021/11/09 City Council Post Agenda Page 354 of 470 P a g e | 8 The actual number of Short-Term Rental Units in the City of Chula Vista is most likely somewhere between 300 and 500, when you include certain units which may only be offered seasonally (e.g., during Comic-Con, Spring Break, etc.). Table 2 – Short-Term Rental Unit Listing Inventory Description Whole-Home Partial-Home Total Active, Registered 104 21 125 Active, Unregistered 80 48 128 Subtotal Active 184 69 253 No Longer Advertised 676 582 1,258 Undetermined 63 35 98 Subtotal Inactive 739 617 1,356 Grand Total Identified 923 686 1,609 Proposed Fees The following fees are recommended in order to offset the reasonably anticipated cost of providing Short- Term Rental permitting services. Table 3 – Proposed Fees Description Hours Amount Short-Term Rental Permit, Application 1.5 $250 Short-Term Rental Permit, Renewal 1.0 $175 Short-Term Rental Permit, Event 0.25 $40 Because this is an entirely new program, close monitoring of actual time spent providing Short-Term Rental Permit services will be necessary and adjustments to these fees to more closely reflect actual staff effort will be brought to the City Council for consideration in the future, as appropriate. Enforcement Staffing The proposed ordinance establishes a new regulatory structure that will be enforced jointly by the Chula Vista Police Department and the Code Enforcement section of the Development Services Department. In order to efficiently and appropriately enforce the new ordinance, the addition of 1.0 Code Enforcement Officer II in the Development Services Department is requested. Staff anticipates sufficient penalty revenues in the early years of the program to fully offset the cost of this position. As with the permit fees, close monitoring of actual time spent enforcing the Short-Term Rental Ordinance will be necessary and additional staffing adjustments will be brought to the City Council for consideration in the future, as appropriate. DECISION-MAKER CONFLICT Councilmember McCann owns multiple residential rental properties and, as a result of that financial interest, it is recommended that he recuse himself. Councilmember Galvez has also indicated that she will recuse herself because she owns and operates a short-term rental property. 2021/11/09 City Council Post Agenda Page 355 of 470 P a g e | 9 CURRENT-YEAR FISCAL IMPACT Adopting the Short-Term Rental Ordinance is expected to increase TOT revenues to the City, as additional operators come into compliance with the City’s TOT ordinance. Because the permit related provisions of the ordinance are not effective until July 1, 2022, this is not anticipated to have an impact in the current fiscal year. Adopting the resolution adds 1.0 Code Enforcement Officer II to the Development Services Department (General Fund) at a cost of $43,100 (assumes 6 months in current fiscal year). This amount is anticipated to be offset by penalties generated through enforcement of the Short-Term Rental Ordinance. Adopting the resolution also amends the Master Fee Schedule to establish full cost recovery fees for Short- Term Rental Permit applications, renewals, and STR Event Permits. This action supports optimal cost recovery for the City, per the guidelines of the City’s Cost Recovery Policy (City Council Policy No. 159-03). Impacts to revenues in the current fiscal year will vary based upon actual requests for Short-Term Rental permitting services. No current year appropriation of these revenues is proposed. ONGOING FISCAL IMPACT Adopting the Short-Term Rental Ordinance is expected to increase TOT revenues to the City, as additional operators come into compliance with the City’s TOT ordinance. In fiscal year 2021, the City collected approximately $140,000 from Short-Term Rental Units. Certain existing Short-Term Rental Units will no longer be allowed to operate in the City because they are not Primary Residences, which will reduce TOT paid to the City. It is expected that this will be more than offset by increased compliance and payment of TOT by currently unregistered Short-Term Rental Units. Adopting the resolution adds 1.0 Code Enforcement Officer II to the Development Services Department (General Fund) at an annual cost of $86,200. This amount is anticipated to be offset by penalties generated through enforcement of the Short-Term Rental Ordinance. Adopting the resolution also amends the Master Fee Schedule to establish full cost recovery fees for Short- Term Rental Permit applications, renewals, and STR Event Permits. This action supports optimal cost recovery for the City, per the guidelines of the City’s Cost Recovery Policy (City Council Policy No. 159-03). Impacts to revenues in future years will vary based upon actual requests for Short-Term Rental permitting services. If the resolution is approved, future budgets will reflect actual revenues generated by the new fees. ATTACHMENTS 1. Online Survey Results 2. Good Neighbor Document Examples 3. Cost of Service Analysis 4. Redline Master Fee Schedule Chapter 4 Staff Contact: Tiffany Allen, Director of Development Services Megan McClurg, Deputy City Attorney 2021/11/09 City Council Post Agenda Page 356 of 470 - 1 - Short-Term Rental Online Survey Results 1. Please select the option that best describes you 2. Please select the zip code where you live (or own a Chula Vista Tourism-Related Business). 104 2 1 3 0 20 40 60 80 100 120 Chula Vista Homeowner Chula Vista Renter Nonresident, Chula Vista Tourism-Related Business Owner Nonresident, Non-Business Owner 73 14 10 1 7 3 0 10 20 30 40 50 60 70 80 91910 91911 91913 91914 91915 Nonresident, Non-Business Owner 2021/11/09 City Council Post Agenda Page 357 of 470 - 2 - 3. Do you operate a Short-Term Rental in the home you live in? If yes, please answer question #4. If no, please skip to question #5. 4. If you are a Chula Vista resident, what type of home do you live in? 5 103 Yes No 0 20 40 60 80 100 120 7 60 1 3 3 1 0 10 20 30 40 50 60 70 Single Family Attached Single Family Detached Multifamily, Apartment Multifamily, Condominium Townhouse or Rowhouse Nonresident 2021/11/09 City Council Post Agenda Page 358 of 470 - 3 - 5. Do you operate a Short-Term Rental in a home you don't live in? This could include a guest house or Accessory Dwelling Unit (ADU) on the same property as the home you live in. 6. Do you operate any of the following as a Short-Term Rental in Chula Vista? Select all that apply. 3 106 Yes No 0 20 40 60 80 100 120 1 4 1 100 0 20 40 60 80 100 120 Accessory Dwelling Unit Single Family Detached Townhouse or Rowhouse Don't operate a Short-Term Rental 2021/11/09 City Council Post Agenda Page 359 of 470 - 4 - 7. Are you aware of Short-Term Rentals operating in your neighborhood? 8. In general, do you favor or oppose the City allowing Short-Term Rentals in your neighborhood? 56 34 20 0 10 20 30 40 50 60 Yes No I don't know 57 18 3 12 20 0 10 20 30 40 50 60 Strongly Oppose Somewhat Oppose No Opinion Somewhat Favor Strongly Favor 2021/11/09 City Council Post Agenda Page 360 of 470 - 5 - 9. In general, do you favor or oppose the City allowing homeowners to rent out their primary residence as Short-Term Rentals? 10. In general, do you favor or oppose the City allowing homeowners to rent out homes other than their primary residence as Short-Term Rentals? 52 20 5 16 17 0 10 20 30 40 50 60 Strongly Oppose Somewhat Oppose No Opinion Somewhat Favor Strongly Favor 54 17 3 14 21 0 10 20 30 40 50 60 Strongly Oppose Somewhat Oppose No Opinion Somewhat Favor Strongly Favor 2021/11/09 City Council Post Agenda Page 361 of 470 - 6 - 11. In general, do you favor or oppose the City requiring that Short-Term Rental operators be present in the rental while it is being used (also known as a Hosted Short-Term Rental). 12. In general, do you support allowing Short Term Rental operators to rent out their entire home (also known as a Whole-Home Rental)? 26 10 16 21 35 0 5 10 15 20 25 30 35 40 Strongly Oppose Somewhat Oppose No Opinion Somewhat Favor Strongly Favor 51 19 7 9 23 0 10 20 30 40 50 60 Strongly Oppose Somewhat Oppose No Opinion Somewhat Favor Strongly Favor 2021/11/09 City Council Post Agenda Page 362 of 470 - 7 - 13. In general, do you support limiting Short-Term Rentals to only a portion of the home (also known as a Partial-Home Rental)? 14. Should Chula Vista require a minimum rental period for Short Term Rentals? 37 14 27 19 12 0 5 10 15 20 25 30 35 40 Strongly Oppose Somewhat Oppose No Opinion Somewhat Favor Strongly Favor 31 6 14 52 0 10 20 30 40 50 60 No Minimum 1 Day Minimum 2 Day Minimum 3 Day Minimum 2021/11/09 City Council Post Agenda Page 363 of 470 - 8 - 15. Should Chula Vista put a limit on the total number of days per year that a Whole-Home Short- Term Rental can be rented out? 16. Should Chula Vista put a limit on the total number of days per year that a Partial-Home Short- Term Rental can be rented out? 52 7 9 35 0 10 20 30 40 50 60 30 Day Maximum 60 Day Maximum 90 Day Maximum No Maximum 46 6 7 44 0 5 10 15 20 25 30 35 40 45 50 30 Day Maximum 60 Day Maximum 90 Day Maximum No Maximum 2021/11/09 City Council Post Agenda Page 364 of 470 - 9 - 17. Should Chula Vista limit the total number of overnight guests allowed in a Short-Term Rental? 18. Should Chula Vista limit the number of overnight guests per bedroom in a Short-Term Rental? 85 14 8 0 10 20 30 40 50 60 70 80 90 Yes No No Opinion 81 13 13 0 10 20 30 40 50 60 70 80 90 Yes No No Opinion 2021/11/09 City Council Post Agenda Page 365 of 470 - 10 - 19. Are you concerned about any of the following potential Short-Term Rental issues? Parking Noise 17 2 23 68 0 10 20 30 40 50 60 70 80 Not Concerned No Opinion Somewhat Concerned Very Concerned 9 1 19 80 0 10 20 30 40 50 60 70 80 90 Not Concerned No Opinion Somewhat Concerned Very Concerned 2021/11/09 City Council Post Agenda Page 366 of 470 - 11 - Trash “Party Houses” 16 1 21 69 0 10 20 30 40 50 60 70 80 Not Concerned No Opinion Somewhat Concerned Very Concerned 8 1 12 89 0 10 20 30 40 50 60 70 80 90 100 Not Concerned No Opinion Somewhat Concerned Very Concerned 2021/11/09 City Council Post Agenda Page 367 of 470 - 12 - Personal Safety Housing Availability 27 2 24 56 0 10 20 30 40 50 60 Not Concerned No Opinion Somewhat Concerned Very Concerned 30 15 17 44 0 5 10 15 20 25 30 35 40 45 50 Not Concerned No Opinion Somewhat Concerned Very Concerned 2021/11/09 City Council Post Agenda Page 368 of 470 - 13 - 20. Should Chula Vista allow Short-Term Rentals to be used for special events (e.g., weddings, baby showers, birthday parties, etc.)? If yes, should a separate permit be required for each special event? 21. If Short-Term Rental special events are allowed, should there be a limit on the number of events? 41 25 43 0 5 10 15 20 25 30 35 40 45 50 Yes, but with a permit Yes, no permit No Special Events 34 45 2 4 5 11 0 5 10 15 20 25 30 35 40 45 50 Less than 12 Events per Year 1 Event per Month 12 Events per Year 2 Event per Month 24 Events per Year More Than 24 Events per Year 2021/11/09 City Council Post Agenda Page 369 of 470 - 14 - 22. Should there be consequences if Short-Term Rental operators violate City regulations? 23. Please provide any additional thoughts you may have on Short-Term Rentals in Chula Vista. Are there any other issues that you believe should be addressed in the City's ordinance? 1. “Short term rentals should not be allowed in HOA communities where cc&Rs do not allow them other than 3 day lease allowed by state law. These are detrimental to small family areas. Trash, noise, and belligerent drunks have been consistent problems with Airbnb ant owners do not control the tenants. If the city wants to allow this you are putting out families at risk. Any allowance for short term rentals should exempt HOA governed communities. There in no way to control bad renters snd fines don’t secure us from their bad behavior.” 2. “Short term rentals give incentive to buy and renovate properties, provide income to keep people in their homes, and in a non tourist area are unlikely to be wild party houses. And we already have ordinances regarding noise from parties, occupancy per bedroom, and trash. Enforce them with rental owners. As a military town where there is very little in the way of family friendly rentals for people who are here for short durations or awaiting housing - or where people move away with the I rent t to return - don’t make this harder than it already is.” 3. “We have an AirbnB behind us and it’s rented every day..screaming kids in the pools, loud parties and music all day…. I think they should have some type of noise control devices to regulate the decibel’s that are being heard…we have to close our windows all the time.” 4. “Short term rentals should be required to pay occupancy tax to the city.” 5. “I know the historic home, The Starky House on F street is used strictly as a short term rental property. The owners live in Ohio and someone lives in the guest house and pays the owner a monthly lease and rents the house strictly as a short term rental. On at least one occasion 3 6 25 68 8 0 10 20 30 40 50 60 70 80 No Penalties No Opinion Yes, Pay a Fine Yes, Pay a Fine & Potentially Lose Permit Yes, Lose Their Permit 2021/11/09 City Council Post Agenda Page 370 of 470 - 15 - the police and ambulance were called due to an event that was being held at the house. At the very least the homeowners should lose their historic designation and the tax benefits they receive because of the Mills Act.” 6. “I have been a home owner in Chula Vista for over 22 years. The city had and still has some of the highest taxes for ADU builds. Making the process very long, and more difficult than what it needs to be. Now you want to regulate short term rentals for additional revenue?! Focus on being adequate in all other services before taking something else on. If passed would regulating short term rentals be added to a, existing departments responsibility? Or would you have to hire new employees to manage this new task?” 7. “Home owners should be able to use their property for short term rentals but there should be noise violations and parking rules. Maybe guests need to buy a parking pass to help the city make $$ and encourage guests to ride-share.” 8. “STR provides income for the city, since CV isn't a high turist destination at this point the number of SRT will be limited by market demand thus low likelyhood of loss of residential neighborhood dwellers.” 9. “None at this time” 10. “If the police are called to the property they should have to pay an extra fee to them for there service.” 11. “Affordable housing issue, if you allow it you should put TOT towards affordable housing; They don’t belong in residential neighborhoods; Parking” 12. “If homeowners need to register their property as a short term vacation rental, there should be a platform to be able to track previous reports similar to the neighborhood crime map. That way there is a sense of transparency and homeowners can take accountability for the way they manage oversee their short term rentals.” 13. "Owners of the short term rentals should be fully accountable for those they rent out to. Should the renters cause a problem, not only is the renter liable for fines/restitution but the homeowner as well. This puts responsibility on the owner to be accessible to those in the immediate neighborhood who would first lodge a complaint or explanation of a problem with them, AS IT IS HAPPENING. The owner then has the responsibility of checking on the property immediately. If there is a problem the owner and renter cannot solve, then the owner can contact police. If the owner does not live close by to check on the rental, then that is their problem...they should be within close proximity.” 14. “This is no different than having children or animals causing a problem in the neighborhood...parents/animal owner would be immediately contacted and held accountable for damages/control...at least I would hope!!!!!!!!!!!!!!!!!!!" 2021/11/09 City Council Post Agenda Page 371 of 470 - 16 - 15. “SURE are another threat to affordable housing to not just the City of Chula Vista but the County of San Diego. I oppose to STRs overall. If they are going to be allowed, definitely have some type of ordinance and be mindful of residents. Parking, noise control, crime rates, trash, vandalism, etc. are all legitimate concerns for residents and our communities. If we can get an email update of final outcome, that would be great.” 16. “Party houses, trash, marijuana, alcohol related issues from my neighbor would be my worst nightmare. I work full-time and need my sleep. I will soon be retired and hope to enjoy my peaceful freedom at home one day. Let the Bayfront Project host the future wild parties!” 17. “there SHOULD BE ADEQUATE PARKING ALSO PROVIDED. NO LOUD PARTIES ALLOWED. Neighbors should be made aware of any permits being obtained in their neighborhood so they can comment and be vigilant.” 18. “There are pros and cons to short-term rentals. I have personally seen the pros in my neighborhood, such as tourists visiting local businesses to eat and shop; contributing to our local economy. Definitely, the impact as aforementioned brings spending to areas of Chula Vista, rather than the typical tourist areas of San Diego. However, there are also negative impacts on the macro level, such as reducing the availability of housing, increasing rents and home prices with limited inventories for buyers or long-term renters of homes, and homes that are targeted by party goers. As with any decision, when making policy, I believe it is best to find a middle path. Not everyone will be pleased, such as the hardline yes or no stakeholders, but a compromise will appease most. Look at the metrics and determine the impact short-term rentals have to our local economy, as this helps businesses and the city's tax revenues. Then look at to what costs short-term rentals cause for the city and target the problems. I am sure our city Government can devise a healthy strategy.” 19. “Short-term vacations rentals in addition to ADUs effectively re-zones R-1 property and affects value.” 20. “they degrade the neighborhoods in many ways. If we don't have the resources for our own citizens, why are we offering those benefits to tourists? NO is my answer.” 21. “Short term rentals basically change the R-1 zoning property which affects the value.” 22. “There should be a limit on the number of short term rentals owned by an individual (or company they are a member of), and they should live within a certain distance of the rental.” 23. “Very concerned with the prospect of party venues in short term rentals in 9191 area of Chula Vista. Traffic issues, noise and safety are a prime worry. There is currently a former historical home that is in the process of transforming in to a venue or party house. Numerous illegal fireworks were set off during the summer which was a tremendous fire and safety hazard. Thank you for your effort to minimize and regulate such rentals.” 2021/11/09 City Council Post Agenda Page 372 of 470 - 17 - 24. "Give the police department ability to fine Airbnb renters, and fine home owners or operators for not being good host. There is also swimply and few other apps allowing to rent pools. That causes distress to neighbors." 25. "There are enough places to legally house people looking to make a living at their legal business, be it hotel, motel, B&B, etc in Chula Vista without burdening random neighborhoods with noisy, irresponsible, short term rentals. Chula Vista needs to support legal businesses!" 26. “The short term rentals in my neighborhood have caused a noise and parking issue as well as a concern for the safety of our family. Please consider creating stronger regulations or banning short-term rentals altogether in Chula Vista for the safety and peace of our families.” 27. "In theory, an apartment could be sublet as a short term rental. Condominium units have been purchased to be used as vacation rentals. This changes the nature of the apartment or condominium. 28. Unfortunately the activity and impact of a family or group on vacation is much more frenetic than that of a normal resident and as such they are incompatible." 29. “Good afternoon, we are tired of 813 calle lagasca short term rental host. Shes careless, and we as a neighborhood tried to speak our issues and shes not caring about it.” 30. “As homeowners with whole home short term rental next door, our peace of mind has gone out the door, it has been a nightmare and hope for some change and regulations be but in place.” 31. "I own a rental, but that is for years at a time. I do NOT approve of any kind of 'short-term' rentals. There is no advantage to Chula Vista residents of having short-time rentals in their midst, and plenty of disadvantages. San Diego has demonstrated these disadvantages with no corresponding advantage to the neighborhood. Peter Watry" 32. “Short term rentals....isn't that what hotels are for?” 33. “We have a granny flat. We do not rent it out. We use it for personal storage and as a guest house.” 34. "Yes I believe there should be occupancy standards. Yes I believe there should be noise standards I would be extremely reluctant to create another bureaucracy Permits should only be required for those units being rented in excess of 3 total days or 1 sets of guests per year" 35. “I am concerned of strangers coming in and out of our family friendly neighborhood. People who we do not recognize are the ones who drive fast down our cu de sac, and I worry for my 2021/11/09 City Council Post Agenda Page 373 of 470 - 18 - children’s safety. People coming and going don’t have empathy with our neighbors complains or concerns. They feel that it’s THEIR right since they paid money to be allowed there. I do not agree with our neighbor having an air BNB.” 36. “My neighbor's father has one on his block. It is a nice neighborhood. The renters are always having loud parties and the owner is never there. They leave trash everywhere and are very rude. Something like this needs to be controlled so the neighborhood can remain peaceful. I can understand doing this if someone really needs the income. But it is a slippery slope. Other neighbors have the right to a peaceful and safe place for families to live. I've lived here all my 7yrs. and am so heartbroken over what the city has become!!!” 37. “downgrades the quality of life for residents. Just say "NO".” 38. “Party houses should be required to shut down at a desinated time-like 2: am for sure or much earlier.” 39. "I live in Chula Vista, but my address is Bonita 9192. Not given this option in survey. Unable to answer some questions because of limiting responses. Nobody wants to live next to a party house ! However, if my neighbor has a has a home in Spokane, Wash. , living 6 months in each place. No problem when he rents out for 6 months. Housing is expensive. So you rent a room out.....but I do not want to live next door to someone who rents that same room to 3 others. Might end up with 4 bedroom house being rented by 6, 8, 1 people, looking for short term, hour, day, sleeping , kitchen space. So, if anyone is reading this, IT IS COMPLICATED Bob" 40. “The whole purpose of an ordinance about short term rentals is wasted if there is no established, transparent permit process. Proper notification of the whole neighborhood that a for profit business is going to be located in the middle of your residential neighborhood. Without the establishment of an ordinance enforcement process and some form of an enforcement team any STR ordinance would be a complete waste of time. The City of Chula Vista has looked the other way on this issue for several years now and now is the time to do something more than a survey. As a West Side Chula Vistan I am glad to see some progress now that it appears the East Side is being impacted. We are now having our 32nd NEW "Next Door Neighbor" this year. D. R. Renk” 41. “Too much traffic on our culdsac street!” 42. "I own & live in a house on a cul-de-sac, a very short street near Rosebank elementary school & the issues with this airbnb on my street has endangered all the residents when van fulls of 2021/11/09 City Council Post Agenda Page 374 of 470 - 19 - people are dropped off in the middle of the street to go to the airbnb. Violence towards neighborhood people by these airbnb renters, parties, loud noise & the poliece won't even come when they find out it's an airbnb. It's outrageous. We should not have to deal with this on our quiet street. I pay taxes & Chula Vista should NOT allow these kind of short term rentals. Vicki Finch” 66 Corte Maria Ave. CV 9191" 43. "I found out that there was a short term rental a few houses from me. I suspected this because of all the different people that would be seen at the residence. Other than a few parking issues, it hasn't been bad but I can see how this can affect a neighborhood. If there is a housing crisis, then why are people allowed to rent short term to people that are not looking to live in the area? IF the property is not a primary resident (just an investment vehicle) and the investor is just looking to make money on the property, then they probably don't care about the negative impacts part time rentals have on neighborhoods. IF the property is not protected by Prop 13 and the home is NOT a primary resident (just an investment vehicle), then the owner will either have to increase the rental price to a point where it can't be rented or sell it to someone that would rather buy a property than rent it. If there is a HOUSING CRISIS, then why allow for investors that have no stake in the neighborhood/community to potentially diminish the quality of live of others that LIVE in these neighborhoods by not providing any governance to the property they are renting. What could be problematic is that people will look to invest in homes and turn them into short term rentals to cover costs. What the local governments should be doing is researching how many properties are under Prop 13 protection that are NOT the primary residences for people and remove that protection because prop 13 was probably meant to protect the taxes for homes that are the primary residence. Also, don't allow these part time rentals unless the owner either lives at the property or the non-tenant property owner provides notification to ALL neighbors in a 2' radius (or what ever is reasonable) that the property is a part-time renal. This will at least notify the other property owners, that actually live in the direct vicinity, to know what is going on in case there are issues wi th the part-time rental." 44. “Neighbors within two block should have emergency number of owners of the short term rental. Last year one block from my family home, the Airbnb renters were firing huge rocket 2021/11/09 City Council Post Agenda Page 375 of 470 - 20 - fireworks in the neighborhood surrounded by very dry grass. If we had the owners cell we could called them to call and stop the very hazardous fireworks.” 45. “Housing supply and congestion is already an issue in this area. People that want to vacation should support our hotels.” 46. “The guests should be the ones penalized if they are causing noise disturbance on the neighborhood. Same for home owners that cause noise disturbances for partying very late at night even if they are not using the property for a rental. Who does not respect a neighbor should be penalized. Whoever is causing the problem guest or the owner.” 47. “Our house sits at the corner of two cul-de-sac. We have many families with young kids running around, playing outside, as they should be. We bought our house 3 years ago because it was a quiet street with not a lot of traffic and lots of children to have our family grow up on. Unfortunately, shortly after there was an Airbnb short term rental started at the very end of the street. It is the perfect party house with lots of bedrooms, overlooking the Coronado bridge, with an entertaining backyard. People that have stayed there have sped down our street, ignoring the children playing signs to remind them to slow down. They have been loud way past curfew hours and have been rude about when asked to please turn it down. When confronting owner, they don’t care and nothing changes. When calling Airbnb it is sadly the same thing. There is no accountability being held! We are a family neighborhood two streets away from a school and should not have to deal with the disrespect of people coming and staying here to party.” 48. "I live next to an Airbnb located on Church Avenue, near downtown CV. We have a senior community that is adjacent to that property and as well as mine. The actual owner of the house doesn’t respond to any complaints or concerns. I’ve had to call CVPD on many occasions AFTER I have either asked the occupants to please be respectful, Not block my driveway or keep the noise level down after midnight. This house is basically advertised as a “party house,” and the owner just disregards anything that the neighbors have to say. 415 Church Avenue is the location and the owner is Frank 619-494-1" 49. “Our family owns our home and lives in what used to be a quiet residential neighborhood. However, for over one year, there has been noisy, loud, rude, drunk, pot smoking “guests” that rotate in and out of whole house AirBnB rental near our home. Every month, we lodge complaints with AirBnB because we are woken up repeatedly at night by each new set of rental guests who only want to party all night, with rental homeowner who refuses to enforce nighttime quiet rules/laws. This is not acceptable. There must be enforceable rules & regs to put limits on how many days a house can be rented out per month or year, how many “guests” can be on-site at the rental property, and stop “party houses” from being 2021/11/09 City Council Post Agenda Page 376 of 470 - 21 - allowed in our residential neighborhoods. A rental property is a business that should be subject to rules/ regs/ laws plus pay additional taxes on all money earned from said rental.” 50. “I do not think there should be permits for short rentals because what is the city going to use that money for?” 51. "We operate an Air B&B short-term rental in our home. We offer 3 bedrooms (total of 6 beds/8 people), a family room, and a large backyard. We are rated as ""Super Hosts"" by AirBnB and have rave reviews. The key to our success and being a good neighbor is that WE LIVE IN THE HOUSE, and we only rent to families. We are not interested in the ""party"" groups. We have an excellent relationship with our neighbors (some of whom have referred guests to us) and are courteous, respectful and considerate. As are our guests. Being able to have an AirBnB short-term rental in our home makes it possible for us to continue living here and provides a needed stream of secondary income. Many of our guests are 3 generations traveling together, or families with 4-6 children. Staying in a hotel would require multiple rooms and does not provide a comfortable space for family togetherness. This is one reason we do not think it is fair to set a restrictive number of guests such as 4. That limit would really hurt our target market! It is not fair to ""tar and feather"" respectful hosts and guests such as ourselves with the same brush as the neglectful party-group with an absentee host. Our guests come to enjoy all that San Diego has to offer. They also shop, eat and play right here in Chula Vista, often seeking our recommendations. We've sent plenty of our guests to restaurants and shops on Third Avenue, to Eastlake and to Otay Ranch! By having a place like ours to stay in, these families can have an affordable vacation and enjoy being in a comfortable and hospitable space. They have use of not only the 3 bedrooms and 2 bathrooms but a family room and our backyard, which features a swimming pool, spa, sauna, BBQ area, fire ring and fireplace, pool table, pink pong, a large grassy area and many fruit trees and flowering plants. It is an oasis for them! You can check it out at: airbnb.com/h/Casa-de-Walker As resident hosts, we like to say that we are available but unobtrusive. We have house rules which guests must acknowledge before they arrive, covering such things as quiet hours, daytime extra guests (limited and only with advance permission), no smoking, no pets, etc. Since our market is families, 99% of our guests are happy to cooperate. They prefer a family atmosphere in a neighborhood, and appreciate our being on-site! We believe that it is possible to cooperate with any City of Chula Vista regulations and be a good neighbor while also being allowed to have a safe and attractive business in our home such as a short term rental. We would welcome any questions from the City of Chula Vista staff or City Council, and appreciate the opportunity to share about our STR! 2021/11/09 City Council Post Agenda Page 377 of 470 - 22 - SIncerely, Ruth Ann Walker Casa de Walker" 52. “I agree that short term rental owners in Chula Vista should be required to obtain a permit from the City in order to operate their STR. Multiple violations of the City's rules for STRs could then be grounds for the permit to be revoked and the platforms (AirBnb, et al) that list non-permitted STRs in Chula could be penalized.” 53. "Question # 21. Did not provide an option to answer 'No Limit' as other questions had provided. Is that a typo?” 54. "Living in San Diego is really expensive and this could be a source of supplemental income for some. This could ease up or benefit our public school system as well. We have owners who are paying property + STR taxes without using the local resources such as public school, and those who are using them gets the benefit of the extra funds gathered from these short term rental businesses. These people who also stay in these STR houses will be spending their money on local small businesses thus creating more jobs and more sources of income. Another issue is that we shouldn't make it too hard or too burdensome to start these kind of businesses since these homeowners don't have access expensive lawyers or tax professionals." 55. “Please ensure that short-term rentals are not confused with long term renters. ADUs that are built for use as a long term rentsl unit should not be grouped with vacation rentals.” 56. “Short term rental down the street should be shut down.always a lot noise and fighting.” 57. "There is a STR on our street in the Rancho del Rey neighborhood. Our experience has been a negative one with all of the common issues of: excessive noise, street parking, trash, late hours, sketchy characters and increased traffic. The owner has no physical presence and there is a lack of control over the behavior of irresponsible renters who. all too often, ignore and fail to follow the acceptable norms of a family residential community and treat their STR like a college spring break destination. I believe that an STR significantly impacts the character of our neighborhood. Residential neighborhoods are devalued when the influx of commercial uses like short term rentals infringe on the right of other homeowners to the undisturbed use and enjoyment of their homes. The ordinance should include measures that reduce the impact of STRs by limiting the percentage of STR licenses to 1% of single family residences and somehow prevent multiple licenses being granted on a given street. The number of days per year that STRs can be rented should be limited strictly and minimum 2021/11/09 City Council Post Agenda Page 378 of 470 - 23 - stays of 3 days should be required.. Penalties for violation of the ordinance should include both fines and loss of license.” 58. "STR should not be allowed within a city block of any schools. We do not support any STRs at all. There are hotels, motels etc for those who need a short term stay.” 59. “Research in San Diego showed that $86.4 million was spent on activities by visitors staying in short-term vacation rentals. The total economic impact in San Diego has been estimated at $285 million. Additionally it can help local residents make ends meet or enable young families to go on a holiday while retirees stay in their home.” 60. “These party houses disrupt the integrity and stability of a neighborhood. As a neighborhood with a short term rental we are putting up with noise, drinking, and trash. These short term renters don't care to be a good neighbor, they are on vacation and whopping it up! It takes away from the property values that we have worked hard to maintain. Please don't let these people put their profits above being a good neighbor.” 61. “These are personal homes. I don't believe the city has any right to control an indiv idual home. I paid for it. I have a right to do with it what I want. Why discourage small businesses when it's so expensive to live in CA?” 62. "While some guidance and permits should be in place to protect the safety and peace of the neighborhood, which should be examined on a case by case basis My opinion as to how long and for why purposes, the City of Chula Vista should stay out of the homeowner's personal business regarding the specifics. Homeowners should do with their property is no one's business unless it infringes upon another peace and security," 63. “I view short term rentals as generally party houses....people who don't live in our neighborhood that don't have any concept of our serene nature. Our neighborhood is generally very quiet...we like to keep it that way. We also have a large number of vehicles already parked on the street (that's another issue since everyone has a 3 car garage...but apparently too much "stuff"), so large crowds merging at a short term rental would deeply exacerbate that problem.” 64. "I think revenue sharing is a great way for Chula Vista to raise money, while at the same time make sure with reasonable regulations that there are no ""party houses"". Many concerns are addressed in the first layer of short-term rentals, ie. Airbnb screening that is automatically built into their system. There is no shortage of NIMBY's that simply don't like change, they need to realize their taxes will stay lower if the city raises additional money from short-term rentals. Reasonable regulation will handle any problems, the biggest of which is party houses. 2021/11/09 City Council Post Agenda Page 379 of 470 - 24 - I sincerely hope the City doesn't kill the goose that lays the golden eggs because of a few vocal naysayers. Another thought-- The City stands to benefit as vacationers see Chula Vista as a gateway to fun areas along with the proposed development of the bayfront. It can truly put Chula Vista on the map as a destination city; which raises the standards of living for everyone.” 65. "The main one in my area is lack of parking. I cannot ever park in front of my own house. People bring their work trucks home and every space on the street is filled. When i have company there is never a place for my visitors to park. The same is true for my mother’s hiuse in Oaklawn. People leave their cars and trucks for days in front of her house and just walk away till Monday morning. We dont need any more cars around” 66. "Hours of troublesome activity occur after 9pm.: Loud noise that can be heard a block away, Risk behaviors such as gunfire, helium balloon releases, Fireworks, revving car motors, motorcycle rallies, puke in the street, discussions fueled by excessive alcohol, Imaginative landlords who make RVs available to rent by the hour. Solicitation by guests of minor/s to join the party. Disturbance of the peace that should be the right of property owners and legitimate renters by those who bring unwanted activity to neighborhoods other than their own." 67. "Normally trash, recycle, garden waste bins are brought out to the streets the night before the pickup day. The short term rental house put out the bins the day the renters leave. And the bins are more than the usual number: one for each waste type. Worst, the bins are left on the street . Usually, the bins are brought in out once the trash are pick up. Often times, the bins are unsightly as the trash are not properly put in the bins. Noise is a significant consideration. The police comes, but the irritation has already happened. Enforcement of rental rules should be considered carefully." 68. "it is hard for people to find where to live if too many home are turning into short terms rentals. I dont want mini hotels in my street." 69. "I am the adjacent neighbor of 21 F street, which became a short term rental in the summer of 221. Since then it has attracted vacationers who host parties/ large gatherings with loud music, drinking, strangers in the Neighborhood, traffic, trash, and physical altercations. Cops have frequented the property to help regulate the party house, however it’s is still being promoted as a short term rental and it has disrupted my peace with sleepless nights and uneasiness of safety. Currently my home address is being provided by the neighbor to vendors as a location point to the back gate of the property. I have had numerous occasions when I am being disrupted by their actions, aside of just late night parties. In addition to the short term rentals, I believe that this property is also being rented to RV vacationers. As there has been an increase of RV’s being parked adjacent to my property, from 27’ to 45’ buses which have increased the traffic on my cul-de-sac street. " 2021/11/09 City Council Post Agenda Page 380 of 470 - 25 - 70. “If short term rental special events are allowed then you should at least include time limits of operations. My next door neighbor rents out his house for parties that start out early in the day and continue all the way past midnight. ( disturbs my peace 3 days a week)” 2021/11/09 City Council Post Agenda Page 381 of 470 GOOD NEIGHBOR OWNER HANDOUT SHARE WITH NEIGHBORS SHORT-TERM RENTAL Dear Neighbor, I wanted to let you know that I’ve been approved by the City of Littleton to utilize my home as a short-term rental, at: _________________________________________________________________________________________ FULL STREET ADDRESS ZIP CODE I am looking forward to the opportunity of sharing our wonderful city with guests, but also want to make sure that my neighbors are provided information. At the bottom of this page is the contact information available 24 hours a day, 7 days a week when our home is rented in the case of a non life threatening emergency. Additionally, the Good Neighbor - Guest Guidelines provided with this letter will be posted in the home in a prominent location, informing renters of some of the rules and regulations in our city. This will be posted adjacent to and in addition to other house rules that may be mandated by their short-term rental leasing contractor. If you have questions please contact me directly. Sincerely, your neighbor: _________________________________________________________________________________________ PROPERTY OWNER NAME 10-DIGIT PHONE EMAIL______________________________________ PRIMARY LOCAL EMERGENCY CONTACT: _________________________________________________________________________________________ NAME EMAIL _________________________________________________________________________________________ PHONE 1 PHONE 2______________________________________ SECONDARY EMERGENCY CONTACT: _________________________________________________________________________________________ NAME EMAIL _________________________________________________________________________________________ PHONE 1 PHONE 2______________________________________ SHORT-TERM RENTAL BUSINESS LICENSE NUMBER: City of Littleton • Code Enforcement 303-795-3831 code_enforcement@littletongov.org • Police non-emergency dispatch number 303-794-1551 Littleton, CO COD 10-12-2020 ATTACHMENT 2 2021/11/09 City Council Post Agenda Page 382 of 470 POST FOR GUESTS Welcome TO THE NEIGHBORHOOD! Read and follow these, as well as any other rules posted by host. Feeding wildlife is illegal and dangerous, don’t. Commercial and large- scale events cannot be hosted here. Ensure all guests know and follow guidelines and rules. Park in the driveway not in the yard.LOcAL INFO: littletongov.org non-emergency police: 303-794-1551 enjoy a safe stay! thank you!For concerns and questions, 24/7 your local contact is: •Minimize music and noise •Minimize outdoor lighting and make sure it stays on the rental property •Contain all trash for emergency responses, dial 911 directly COD 11-02-2020 PM GOOD NEIGHBOR GUEST GUIDELINES SHORT-TERM RENTAL Mutual respect among neighbors helps keep everyone safe. ATTACHMENT 2 2021/11/09 City Council Post Agenda Page 383 of 470 Proactive communication helps create a good relationship with guests and with neighbors. The Good Neighbor - Owner Handout must be distributed, and Good Neighbor - Guest Guidelines posted. •Apply for a Short-term Rental Business License from finance dept, through the City of Littleton. •Complete and distribute the Good Neighbor - Owner Handout to adjacent properties, and whomever else relevant. Submit address distribution list* to city by attaching to license application in eTRAKiT, or emailing to STR@littletongov.org. •Ask neighbors if you may personally communicate directly with them and keep their contact information handy, including: name, phone number, property address, date, and method of contact. •Post the Good Neighbor- Guest Guidelines handout at eye level inside the house next to the main entrance. PROPERTY OWNER AND MANAGERS COD 11-02-2020 PM GOOD NEIGHBOR OWNER INSTRUCTIONS SHORT-TERM RENTAL *Distribution List: The ordinance requires the Good Neighbor - Owner Handout be given to each property owner and/or resident of address with an adjoining property line or directly across the street or alley. Please list the addresses included in your distribution; mark row as N/A if not applicable. Address #1: ___________________________________________________ Address #2: ___________________________________________________ Address #3: ___________________________________________________ Address #4: ___________________________________________________ Address #5: ___________________________________________________ Address #6: ___________________________________________________ Address #7: ___________________________________________________ Address #8: ___________________________________________________ Address #9: ___________________________________________________ ATTACHMENT 2 2021/11/09 City Council Post Agenda Page 384 of 470 Short Term Rental Permit Fees Cost of Service Analysis Description Staff FBHR Rate* Hours Service Cost Proposed Fee Application Development Services Counter Staff (Blended Rate)177.68$ 1.50 266.52$ 250.00$ Annual Renewal Development Services Counter Staff (Blended Rate)177.68$ 1.00 177.68$ 175.00$ Event Development Services Counter Staff (Blended Rate)177.68$ 0.25 44.42$ 40.00$ *Fully Burdened Hourly Rate, effective October 1, 2021. ATTACHMENT 3 2021/11/09 City Council Post Agenda Page 385 of 470 MASTER FEE SCHEDULE FEE BULLETIN Chapter 4 – Business Fees 4-100 General Business Fees City of Chula Vista Finance Department 276 Fourth Avenue, Chula Vista, CA 91910 September November 2021 City of Chula Vista www.chulavistaca.gov 619.691.5250 GENERAL BUSINESS 1. Business License Fees, General Duplicate license ............................................ $5.00 Change of location ............................................ $12 Home Occupation Permit ................................. $25 Business resource and energy evaluation Non-compliance fine, greater of ....................... $15 or ............................... 5% of business license fee 2. Sales, Special Closing out sale, first 60 days ............................ $30 Closing out sale, one 30-day extension ............ $15 Special sales event ............................................ $45 Temporary outside sales event ......................... $45 SPECIFIC BUSINESS (REGULATORY) 1. Bath House Application, annual ...................................... $1,400 2. Bingo Application ...................................................... $265 Annual renewal ............................................... $265 3. Commercial Cannabis Application & First Year License Fees Application Phase 1 – New Application ....... $7,493 Application Phase 1 – Resubmittal ............. $2,800 Application/Initial Compliance Inspection Phase 2 (due at license application) .................... $16,570 First Year Compliance Inspection Phase 2 (due at conditional license issuance) ..... $31,275 First Year Compliance Inspection Phase 2 includes 4 City inspections per commercial cannabis business. Additional inspections will be subject to the Commercial Cannabis License Reinspection fee. Renewal Fees Annual Renewal/Compliance Inspection, each (City) ....................................................... $28,210 Annual Compliance Inspection, each (HDL) . $6,000 Additional Fees Zoning Verification Letter ............................... $183 New Background Review ............................. $1,155 Resubmittal Background Review .................... $663 Appeal .......................................................... $3,276 Reinspection, each .......................................... $330 Employee Background Review ........................ $320 Employee Background Renewal ..................... $222 4. Card Room Work permit, application ............................... $175 Work permit, annual renewal ......................... $100 5. Casino Parties Application ...................................................... $265 6. Firearms Dealer Application ...................................................... $365 Annual renewal ............................................... $310 7. Fraternal Society Gameroom Application ...................................................... $265 8. Holistic Health Establishment Application ...................................................... $195 Annual renewal ................................................. $25 9. Holistic Health Practitioner Application ...................................................... $175 Annual renewal ............................................... $100 10. Junk Dealer Application ...................................................... $315 Renewal, every 2 years ................................... $100 ATTACHMENT 4 2021/11/09 City Council Post Agenda Page 386 of 470 September November 2021 MASTER FEE SCHEDULE ◼ FEE BULLETIN 4-100 Page 2 of 2 City of Chula Vista www.chulavistaca.gov 619.691.5250 11. Massage Establishment Application ................................................... $1,400 Annual renewal ............................................ $1,250 Sale, transfer or change of location requires a new application, including payment of application fee. 12. Massage Technician Application ...................................................... $175 Annual renewal ............................................... $100 13. Mobile Home Park Annual Operating Fee The annual safety and health fee for operation of a mobile home park shall be as established by the State. 14. Pawnbroker Application ...................................................... $315 Renewal, every 2 years ................................... $100 Pawnshop employee ID card Application ...................................................... $165 Annual renewal ................................................. $70 Change of address/replacement....................... $10 15. Peddler Application ...................................................... $165 16. Public Dance Application ...................................................... $175 17. Second Hand Dealer Application ...................................................... $315 Renewal, every 2 years ................................... $100 18. Short-Term Rental Application ...................................................... $250 Annual Renewal .............................................. $175 Event Permit...................................................... $40 18.19. Solicitor Application, includes ID card........................... $165 ID card, annual renewal .................................... $70 19.20. Transient Merchant Application ...................................................... $165 20.21. Alcoholic Beverage Control (ABC) Determination of Public Convenience or Necessity (PCN) Hearing Filing Hearing fee ........................ Full cost recovery Initial deposit ............................................... $1,500 21.22. Tobacco Retailer Permit fee ....................................................... $322 APPEALS 1. ABC PCN Determination Processing fee ............................. Full cost recovery Initial deposit ............................................... $1,000 2. Police Regulated Business License Processing fee ............................. Full cost recovery Initial deposit .................................................. $250 FULL COST RECOVERY For all full cost recovery fee items, an initial deposit shall be collected to cover the City’s full cost, including overhead, incurred in conjunction with review and processing as requested by applicant. Additional funds may be collected, as required, to cover City costs. Should the application be withdrawn at any time, the deposit shall be adjusted to cover the City’s actual costs, including overhead, up to that time. Any funds remaining on deposit at the time of the completion or withdrawal of the application shall be returned to the depositor, after accounting for expenses incurred to date. See Master Fee Schedule Fee Bulletins 1-100 and 1-200 for additional discussion of full cost recovery and current hourly rates. ATTACHMENT 4 2021/11/09 City Council Post Agenda Page 387 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 4 (BUSINESS FEES) TO ADD FEES RELATING TO SHORT-TERM RENTALS, AMENDING THE AUTHORIZED POSITION COUNT FOR THE GENERAL FUND TO REFLECT THE ADDITION OF 1.0 CODE ENFORCEMENT OFFICER II POSITION, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) WHEREAS, in recent years, technology and innovation have expanded the renting of residential dwelling units for transient stays of less than thirty (30) days (“Short-Term Rentals”) as a form of lodging in which visitors are able to stay in and experience a local community; and WHEREAS, Short-Term Rentals provide an opportunity for residents to generate supplemental income by participating in the sharing economy, generate Transient Occupancy Taxes to the City, support economic activity, and provide an alternative form of lodging to visitors to Chula Vista; and WHEREAS, Short-Term Rentals represent a commercial use in a residential neighborhood and can result in negative impacts to the surrounding residents; and WHEREAS, the City has experienced a significant increase in the number of complaints received relating to the operation of Short-Term Rentals, including complaints regarding behavior of occupants, noise, availability of on-street parking, and increased trash; and WHEREAS, on this same date, the City Council did place an ordinance adding Chapter 5.68, “Short-Term Rentals” to Title 5 of the Chula Vista Municipal Code to establish regulations, standards, and a permitting process for Short-Term Rentals (the “Short-Term Rental Ordinance”) on first reading; and WHEREAS, in order to achieve full and equitable cost recovery for services provided in the permitting of Short-Term Rentals, the Council wishes to amend Chapter 4 of the City’s Master Fee Schedule, as set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, the proposed fees do not exceed the estimated reasonable cost of providing the associated services; and WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate to increase any levy, charge, or exaction imposed by a local government, unless specifically exempted; and WHEREAS, the proposed fees are exempt from the vote requirement pursuant to Sections 1(e)(2) and 1(e)(3); and 2021/11/09 City Council Post Agenda Page 388 of 470 Resolution No. __________ Page 2 WHEREAS, the proposed amendments to the Master Fee Schedule shall become effective upon adoption of this Resolution by the City Council; and WHEREAS, in order to effectively enforce the provisions of the Short-Term Rental Ordinance, it is necessary to add 1.0 Code Enforcement Officer to the Development Services Department (General Fund); and WHEREAS, enforcement of the Short-Term Rental Ordinance is anticipated to generate penalty revenues which will accrue to the General Fund and may be used to offset the cost of this additional position. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend Chapter 4 (Business Fees) of the City’s Master Fee Schedule to add fees relating to Short-Term Rentals, as set forth in Exhibit 1 to this Resolution. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve the addition of 1.0 Code Enforcement Officer II position to the Development Services Department and appropriate funds therefor. Presented by Approved as to form by Tiffany Allen Glen R. Googins Director of Development Services City Attorney 2021/11/09 City Council Post Agenda Page 389 of 470 C:\Program Files\eSCRIBE\TEMP\2064922583\2064922583,,,Ordinance.docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 5.68, “SHORT-TERM RENTALS” TO TITLE 5 OF THE CHULA VISTA MUNICIPAL CODE TO ESTABLISH REGULATIONS, STANDARDS, AND A PERMITTING PROCESS FOR SHORT-TERM RENTALS WHEREAS, in recent years, technology and innovation have expanded the renting of residential dwelling units for transient stays of less than thirty (30) days (“Short-Term Rentals”) as a form of lodging in which visitors are able to stay in and experience a local community; and WHEREAS, Short-Term Rentals provide an opportunity for residents to generate supplemental income by participating in the sharing economy, generate Transient Occupancy Taxes (“TOT”) to the City, support economic activity, and provide an alternative form of lodging to visitors to Chula Vista; and WHEREAS, Short-Term Rentals represent a commercial use in a residential neighborhood and can result in negative impacts to the surrounding residents; and WHEREAS, the City has experienced a significant increase in the number of complaints received relating to the operation of Short-Term Rentals, including complaints regarding behavior of occupants, noise, availability of on-street parking, and increased trash; and WHEREAS, Short-Term Rentals in property other than a primary residence are more likely to create unfavorable consequences, including negative impacts on the residential character of surrounding neighborhoods and increasing nuisance activity; WHEREAS, the City has a legitimate governmental interest in preserving the residential character of neighborhoods that enhance the quality of life for its residents and visitors by minimizing the adverse impacts of Short-Term Rentals through regulation; and WHEREAS, the conversion of long-term housing units to Short-Term Rentals reduces housing stock, increasing rents and decreasing availability of affordable housing; and WHEREAS, the housing shortage in California is well documented and the conversion of long-term housing stock to short-term rentals is detrimental to the City’s economic vitality and quality of life of our residents; and WHEREAS, this ordinance will protect the City’s long-term rental housing stock by allowing only the rental of primary residences; and WHEREAS, existing law requires Short-Term Rentals to register with the City’s Finance Department and to collect and remit TOT to the City; and 2021/11/09 City Council Post Agenda Page 390 of 470 Ordinance Page 2 WHEREAS, approximately 350 properties in Chula Vista are offered as Short-Term Rentals, but as of October 2021, only 125 properties have registered with the City’s Finance Department and are remitting TOT; and WHEREAS, the City has a legitimate interest in ensuring the collection and payment of TOT; and WHEREAS, the Chula Vista Municipal Code does not adequately address the issue of regulating the permitting and operation of Short-Term Rentals and on March 16, 2021, the City Council received a report and directed staff to conduct public outreach and draft such regulations; and WHEREAS, staff held two community outreach events and conducted an online survey to collect stakeholder input; and WHEREAS, in an effort to mitigate the negative impacts brought by unregulated Short- Term Rental activity, the City now desires to establish regulations, standards, and a permitting process for Short-Term Rental activity in the City. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Chapter 5.68 is added to the Chula Vista Municipal Code to read as follows: Chapter 5.68 SHORT-TERM RENTALS Sections: 5.68.010 Title. 5.68.020 Purpose and Intent. 5.68.030 Definitions. 5.68.040 Permit Required. 5.68.050 Eligibility Requirements. 5.68.060 Agents. 5.68.070 Permit Application Requirements. 5.68.080 Renewals. 5.68.090 Transfers. 5.68.100 Term of Permit. 2021/11/09 City Council Post Agenda Page 391 of 470 Ordinance Page 3 5.68.110 Operational Requirements. 5.68.120 Short-Term Rental Event Permit. 5.68.130 Limitations on City’s Liability. 5.68.140 Audit Inspection. 5.68.150 Responsibilities of Hosting Platforms. 5.68.160 Violations/Penalties. 5.68.170 Procedure for Imposition of Modification, Suspension and/or Revocation of Short- Term Rental Permit. 5.68.180 Appeal Procedures. 5.68.190 Effect of Short-Term Rentals Ordinance on Other Provisions of Code. 5.68.200 Promulgation of Regulations, Standards, and Other Legal Duties. 5.68.210 No Vested Rights. 5.68.220 Effective Date. 5.68.010 TITLE. Chapter 5.68 is known as the "Short-Term Rentals Ordinance," may be cited as such, and will be referred to herein as "this chapter." 5.68.020 PURPOSE AND INTENT. The purpose of this chapter is to establish rules governing the Short-Term Rental (defined below) of Dwellings (defined below) within the City. With such rules, with respect to Short-Term Rental activities, the City desires to ensure the collection and payment of Transient Occupancy Taxes; reduce the burden on City services; minimize the negative secondary effects of such use on residential neighborhoods; and ensure that such Short-Term Rental activities do not become a nuisance, or threaten the health, safety or welfare of persons residing in residential neighborhoods and patronizing Short-Term Rentals. 5.68.030 DEFINITIONS. The definitions contained in this section shall govern the construction, meaning and application of words and phrases used in this chapter. 2021/11/09 City Council Post Agenda Page 392 of 470 Ordinance Page 4 A. "Agent" means a Person engaged or appointed by an Applicant or Permittee to represent and act on behalf of an Applicant or Permittee (as defined in these definitions) and to act as an operator, manager and/or Local Contact Person of a Dwelling used or to be used as a Short-Term Rental Unit or Short-Term Rental Property and designated as such by the Applicant or Permittee in accordance with Section 5.68.060. B. “Applicant” means a Person that has applied for a Short-Term Rental Permit. Applicants may be Owners or Long-Term Tenants. C. “Bedroom” means a room designated primarily for sleeping that meets the definition of the California Building Codes currently adopted by the City. Lofts that meet California Building Code egress requirements are considered a bedroom for the purposes of this definition. D. “City Manager” means the City Manager of the City, or designee. E. "Director of Development Services" means the Director of Development Services of the City, or designee. F. "Dwelling" has the meaning provided in Section 19.04.074 of this code. "Dwelling" also means a dwelling unit on the same parcel as a legally established single-family dwelling that is allowed in the zone in which located, having its own complete independent living accommodations and facilities for one or more Persons, including permanent provisions for living, sleeping, eating, cooking and sanitation and may sometimes be referred to interchangeably in this chapter as a "Dwelling Unit". G. "Enforcement Officer" means the Director of Development Services, the Code Enforcement Manager, any Code Enforcement Officer, the Building Official, any sworn Officer of the Police Department, the Fire Chief, the Fire Marshal, or any other City department head (to the extent responsible for enforcing provisions of this code), their respective designees, or any other City employee designated by the Director of Development Services or City Manager to enforce this chapter. H. “Expiration Date” means the last day of the month occurring twelve (12) months from the date of permit issuance (e.g., if the permit is issued on March 15th, the Expiration Date shall be March 30th of the following year). I. "Hosting Platform" means a Person or entity that facilitates a Short-Term Rental for an Owner or an Agent, and derives revenues therefrom, including without limitation booking fees, subscription charges or advertising revenues, from such facilitation. "Facilitate" shall mean without limitation the act of allowing the Owner or an Agent to offer to list or advertise the Short- Term Rental on the Internet web site provided or maintained by the Hosting Platform. A Hosting Platform does not include any Person licensed to practice real estate as defined in the California Business and Professions Code. 2021/11/09 City Council Post Agenda Page 393 of 470 Ordinance Page 5 J. "Local Contact Person" means a Person designated by an Owner or an Agent, who, if designated to act as such, shall be available twenty-four (24) hours per day, seven (7) days per week for the purpose of: (i) being able to physically respond within one (1) hour of notification of a complaint regarding the condition, operation or conduct of Occupants of the Dwelling, and (ii) taking remedial action necessary to resolve any such complaints. A Local Contact Person may be the Owner or an Agent. K. “Long-Term Tenant” means the long-term (greater than thirty (30) days) renter or lessee of a Dwelling. L. “Non-primary Residence” means a Dwelling that is not a Primary Residence. M. "Occupant" means any Person who is on or in a Short-Term Rental Property other than service providers, the Owner, or the Long-Term Tenant, whether or not the Person stays overnight. N. "Owner" means the Person(s) or entity(ies) that holds legal or equitable title to a property containing a Dwelling. " O. “Partial-Home Short-Term Rental” means the rental of any portion of a Dwelling while the Owner or Long-Term Tenant is physically present and residing in the Dwelling Unit. Rental of an Accessory Dwelling Unit or Junior Accessory Dwelling Unit for which a construction permit was applied for prior to January 1, 2020, or any other accessory habitable structure that is not a Primary Residence shall be considered a Partial-Home Short-Term Rental if the Owner or Long-Term Tenant is physically present and residing in at least one Dwelling Unit on the Short-Term Rental Property during the rental period. P. “Permittee” means a Person that holds a duly issued and valid Short-Term Rental Permit. Q. "Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. R. “Primary Residence” means a Person’s permanent residence or usual place of return for housing as documented by at least two (2) of the following: motor vehicle registration; driver’s license; voter registration; tax documents showing the residential unit as the Person’s residence; or a utility bill. A Person may have only one (1) Primary Residence and must reside there for a minimum of two hundred seventy-five (275) days during the calendar year. For properties with two (2) or more existing legally permitted Dwelling Units (e.g., a duplex), the term “Primary Residence” shall apply individually, to each unit that meets the criteria previously described. Accessory Dwelling Units or Junior Accessory Dwelling Units for which a construction permit was applied for prior to January 1, 2020, and any other accessory habitable structures that are located on a Short-Term Rental Property and do not meet the criteria previously described shall be considered part of the primary single-family residence for purposes of this chapter. 2021/11/09 City Council Post Agenda Page 394 of 470 Ordinance Page 6 S. “Primary Residence Short-Term Rental” means a Primary Residence being operated as a Short-Term Rental. T. "Rent" means the consideration charged for the occupancy of space in a hotel, campsite, or Dwelling valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. U. "Responsible Person" means each Person that is a party to an agreement for the rental, use and occupancy of a Short-Term Rental Unit. V. "Short-Term Rental" means the rental of a Dwelling or a portion thereof, by the Owner or a Long-Term Tenant to another Person or group of Persons for occupancy, dwelling, lodging, or sleeping purposes for a period of less than thirty (30) consecutive calendar days, but for no less than one (1) night in exchange for Rent. The rental of units within City-approved hotels, motels, bed and breakfasts, and time-share projects shall not be considered to be a Short-Term Rental. W. “Short-Term Rental Event Permit” means a permit issued pursuant to the provisions of this chapter that allow the use of a Short-Term Rental Unit for the hosting of any event that exceeds the maximum occupancy of the Short-Term Rental Unit. X. "Short-Term Rental Permit" means a permit issued pursuant to the provisions of this chapter that allows the use of a Dwelling as a Short-Term Rental. Y. "Short-Term Rental Property" means a parcel of real property, as shown on the latest equalized tax assessment roll as maintained by the assessor of the County of San Diego, upon which a Short-Term Rental Unit is maintained. "Short-Term Rental Property" includes the premises upon which a Short-Term Rental Unit is located, including parking areas, driveways, landscaping, accessory structures, fences, walls, swimming pools, hot tubs, spas, tennis and other sports courts, and other similar and related improvements. Z. "Short-Term Rental Unit" means a Dwelling, or any portion thereof, which is being rented, or is intended to be rented, as a Short-Term Rental to a Person or group of Persons. AA. “Whole-home Short-Term Rental” means the rental of the entirety of a Dwelling while the Owner or Long-Term Tenant is not physically present and residing in the Dwelling Unit. 5.68.040 PERMIT REQUIRED. A. No Person shall undertake, maintain, facilitate, advertise for Rent, list, or Rent a Dwelling Unit as a Short-Term Rental within the City that does not comply with the requirements of this chapter. This prohibition includes Dwelling Units advertised for Rent, listed, or Rented for events, parties, weddings, or similar activities of a commercial nature. 2021/11/09 City Council Post Agenda Page 395 of 470 Ordinance Page 7 B. The Short-Term Rental of a Dwelling is subject to the City's business license requirements (Chapter 5.02 of this code) and the City’s transient occupancy tax requirements (Chapter 3.40 of this code). For purposes of the City’s transient occupancy tax requirements, the Permittee of a Short-Term Rental shall be considered an Operator and the Responsible Person shall be considered a Transient. In the event that a Short-Term Rental is being operated without a valid Short-Term Rental Permit, the Owner or Long-Term Tenant, as applicable, shall be considered an Operator for purposes of the transient occupancy tax requirements. The payment of a tax imposed under this chapter shall not be construed to authorize the conduct or continuance of any illegal Short -Term Rental or of a legal Short-Term Rental in an illegal manner. Nothing in this chapter authorizes or implies the lawfulness of any activity connected with Short-Term Rentals unless otherwise authorized and allowed in strict and full conformance with this code. C. It is a violation of this chapter for an Owner or Long-Term Tenant of a Dwelling to establish or operate a Short-Term Rental without first obtaining and maintaining both a valid business license pursuant to Chapter 5.02 of this code and a Short-Term Rental Permit for each property to be used as a Short-Term Rental. D. It is a violation of this chapter for any Person to establish or operate a Short -Term Rental in the City unless the Owner or Long-Term Tenant has a valid, unexpired Short-Term Rental Permit for such Short-Term Rental pursuant to this chapter. 5.68.050 ELIGIBILITY REQUIREMENTS. The following requirements must be met at the time of submitting an application for a permit to operate a Short-Term Rental: A. The Dwelling Unit shall be the Primary Residence of the Applicant. B. The Dwelling Unit shall not be an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling Unit (JADU) for which a construction permit was applied for on January 1, 2020, or later. C. The Dwelling Unit shall not be a deed restricted affordable housing unit, in a special group residence, or a single room occupancy. D. A Long-Term Tenant shall not operate a Short-Term Rental without prior written approval of the Owner, such written approval to be provided to the City at the time of application for a Short-Term Rental Permit. An Owner may proactivel y prohibit Short-Term Rental subletting by tenants at any or all of their owned properties by submitting a notification in writing to the Development Services Department. E. The Applicant shall not have been subject to a Short-Term Rental Permit revocation during the previous twenty-four (24) month period. 2021/11/09 City Council Post Agenda Page 396 of 470 Ordinance Page 8 F. The Dwelling Unit shall not have been subject to a Short-Term Rental Permit revocation during the previous twenty-four (24) month period, provided that the Director of Development Services may consider 100% transfers in Ownership of the Dwelling Unit in implementing this provision. 5.68.060 AGENTS. A. An Applicant or Permittee may retain an Agent to comply with the requirements of this chapter, including, without limitation, (a) filing of supplemental information or documentation for a pending application on behalf of an Applicant or Permittee in accordance with this chapter, (b) filing of a complete application for renewal of a Short-Term Rental Permit that has been signed and notarized by the Permittee, (c) management of a Short-Term Rental Property or Short-Term Rental Unit, (d) filing of all reports and remittance of transient occupancy taxes, and (e) compliance with the conditions of the Short-Term Rental Permit and the requirements of this chapter. B. The Short-Term Rental Permit shall be issued only to and in the name of the Permittee of a Short-Term Rental Unit, who shall be responsible for all requirements of this chapter. Notwithstanding subsection 5.68.060(A), the Owner or Long-Term Tenant of a Short-Term Rental Unit shall not be relieved of any personal responsibility or personal liability for non-compliance with any applicable law, rule or regulation pertaining to the use and occupancy of the subject Short-Term Rental Unit, regardless of whether such non-compliance was committed by an Agent, a Local Contact Person, Responsible Persons, or the Occupants of the Owner's Short-Term Rental Unit. 5.68.070 PERMIT APPLICATION REQUIREMENTS. A. The Director of Development Services is authorized to issue Short-Term Rental Permits pursuant to this chapter. B. A permit application shall be submitted to the Director of Development Services upon forms provided by the City and signed by the Applicant under penalty of perjury and shall be accompanied by the permit application fee, as presently designated, or as may be in the future amended, in the master fee schedule of the City. If the property is held in trust or is part of a limited liability company (“LLC”), the trustee or the general member of the LLC must sign the Short- Term Rental Permit application. If the property is held in a corporation’s name, the corporation’s duly authorized agent shall sign the Short-Term Rental Permit application. 2021/11/09 City Council Post Agenda Page 397 of 470 Ordinance Page 9 C. The Applicant or the Applicant's Agent, as the case may be, shall within five (5) business days, upon a change of any of the information contained in or accompanying such application, notify the City of such change. D. An application may be denied if a Short-Term Rental Permit for the same Dwelling or issued to the same Applicant has previously been revoked or suspended. E. The Director of Development Services shall review each application for completeness and accuracy before it is accepted as being complete and officially filed. F. In the event that the Director of Development Services determines that an application is incomplete or fails to provide the information and documentation required by this chapter, the Director of Development Services shall notify the applicant in writing, and the Applicant shall have thirty (30) calendar days (or longer as authorized by the Director of Development Services) in which to submit the needed supplemental information or documentation as specified by the Director of Development Services. after the date of notice. The City reserves the right to request additional information and documentation from an Applicant regarding an application for renewal of a Short-Term Rental Permit and to accept responses to requests for supplemental information or documentation. Failure to submit the required information within the thirty (30) day period may be cause for denial of the application. G. The Director of Development Services may require an on-site inspection of the property to be performed by an Enforcement Officer during daytime business hours before confirming that the application complies with all the applicable criteria and provisions of this chapter. H. As a part of the approval of a permit application, the Director of Development Services may impose such conditions in connection with the permit as he or she deems reasonably necessary in order to fulfill the purposes of this chapter and may require reasonable guarantees and evidence that such conditions will be satisfied. I. The Director of Development shall approve an application for a Short-Term Rental Permit provided that: 1. At the time of submission of the application, or at any time during the processing of the application, the Dwelling Unit and the Applicant meet the eligibility requirements of Section 5.68.050, and the application meets the conditions of permit issuance pursuant to this section, including payment of the required fees. 2. Such approval shall be conditioned upon and subject to compliance with the conditions identified by the Director of Development Services in the renewal, the operational requirements of Section 5.68.110, and with all other terms, conditions, and requirements of this chapter and the code. 2021/11/09 City Council Post Agenda Page 398 of 470 Ordinance Page 10 J. If a permit application is denied, the Director of Development Services shall notify the Applicant in writing. The notice will set forth the reasons for denial and the procedures for an appeal of the Director of Development Services’ determination. K. The Director of Development Services’ determination on the issuance or denial of a Short- Term Rental Permit in response to a pending application or a renewal of a duly issued Short-Term Rental Permit may be appealed in accordance with the appeal procedures of Section 5.68.180 of this chapter. L. Upon issuance of a Short-Term Rental Permit in response to a permit application, the Permittee shall comply with all requirements of the business license provisions and transient occupancy tax provisions of this code for the Short-Term Rental Unit. 5.68.080 RENEWALS. A. If a Permittee desires to renew a Short-Term Rental Permit, the Permittee must apply for and renew a Short-Term Rental Permit annually. Permittee’s request for renewal shall indicate any changes to the information or requirements set forth in Section 5.68.070, above. B. The application for renewal must be filed not later than 30 days prior to the Expiration Date set forth on the permit. C. The application for renewal shall be submitted to the Director of Development Services upon forms provided by the City and signed by the Permittee under penalty of perjury and shall be accompanied by the permit renewal fee as presently designated, or as may be in the future amended, in the master fee schedule of the City. If the property is held in trust or is part of a limited liability company (“LLC”), the trustee or the general member of the LLC must sign the Short- Term Rental Permit application. If the property is held in a corporation’s name, the corporation’s duly authorized agent shall sign the Short-Term Rental Permit application. D. The Permittee or the Permittee's Agent, as the case may be, shall within five (5) business days, upon a change of any of the information contained in or accompanying such renewal application, notify the City of such change. E. The Director of Development Services shall review each application for renewal of a duly issued permit for completeness and accuracy before it is accepted as being complete and officially filed. F. In the event that the Director of Development Services determines that an application for renewal is incomplete or fails to provide the information and documentation required by this chapter, the Director of Development Services shall notify the Permittee in writing, and the Permittee shall have thirty (30) calendar days (or longer as authorized by the Director of Development Services) in which to submit needed supplemental information or documentation as 2021/11/09 City Council Post Agenda Page 399 of 470 Ordinance Page 11 specified by the Director of Development Services. The City reserves the right to request additional information and documentation from a Permittee regarding an application for renewal of a Short- Term Rental Permit and to accept responses to requests for supplemental information or documentation. Failure to submit the required information within the thirty (30) day period may be cause for denial of the renewal. G. The Director of Development Services may require an on-site inspection of the property to be performed by an Enforcement Officer during daytime business hours before confirming that the application complies with all the applicable criteria and provisions of this chapter. H. As a part of the approval of a renewal application, the Director of Development Services may impose such conditions in connection with the permit as he or she deems reasonably necessary in order to fulfill the purposes of this chapter and may require reasonable guarantees and evidence that such conditions will be satisfied. I. If a timely and complete application for renewal of a Short-Term Rental Permit is submitted, the Short-Term Rental Permit previously and duly issued, valid and in effect prior to its Expiration Date, the permit shall be automatically extended until the date a determination is made by the Director of Development Services to approve or deny such application for renewal. J. The Director of Development Services shall approve the renewal of a Short-Term Rental Permit provided that: 1. At the time of submission of the application for renewal, or at any time during the processing of the application for renewal, the Dwelling Unit and the Permittee meet the eligibility requirements of Section 5.68.050, and the application meets the conditions of permit issuance pursuant to Section 5.68.070, including payment of the required fees. 2. The Director of Development Services finds that no circumstances existed during the term of the permit which would cause a violation to continue to exist. 3. There are no building, electrical, plumbing, mechanical, fire, health, police, or other code enforcement violations that involve a risk to public or private health or safety (in such event issuance of the permit or the permit renewal may be delayed until the risk to public or private health or safety is resolved). 4. A previous suspension or revocation proceeding may be a basis for denial. 5. Such approval shall be conditioned upon and subject to compliance with the conditions identified by the Director of Development Services in the renewal, the operational requirements of Section 5.68.110, and with all other terms, conditions, and requirements of this chapter and the code. K. If an application for renewal of a duly issued Short-Term Rental Permit is denied, the Director of Development Services shall notify the Permittee in writing. The notice will set forth 2021/11/09 City Council Post Agenda Page 400 of 470 Ordinance Page 12 the reasons for denial and the procedures for an appeal of the Director of Development Services’ determination. L. The Director of Development Services’ determination on the issuance or denial of a Short- Term Rental Permit in response to a renewal of a duly issued Short-Term Rental Permit may be appealed in accordance with the appeal procedures of Section 5.68.180 of this chapter. M. Upon issuance of a Short-Term Rental Permit in response to an application for renewal of a duly issued Short-Term Rental Permit, the Permittee shall comply with all requirements of the business license provisions and transient occupancy tax provisions of this code for the Short-Term Rental Unit. 2021/11/09 City Council Post Agenda Page 401 of 470 Ordinance Page 13 5.68.090 TRANSFERS. A. Within fourteen (14) calendar days of a change of ownership or long-term tenancy of a Short-Term Rental Property, the new Owner or Long-Term Tenant or their Agent shall submit to the Director of Development Services an application for a transfer of a Short-Term Rental Permit, if they wish to continue to operate the Short-Term Rental Unit. The application shall be accompanied by the payment of such fee or fees as presently designated, or as may be in the future amended, in the master fee schedule of the City. Such application shall contain all the information set forth in Section 5.68.070 of this chapter. B. If such a timely and complete transfer application is submitted, the Short-Term Rental Permit duly issued, valid and in effect prior to its Expiration Date, shall be extended until the date a determination is made by the Director of Development Services to approve or deny such application. C. No purchaser of the real property upon which the permitted Short-Term Rental is located shall operate a Short-Term Rental under a previous Permittee's Short-Term Rental Permit if a completed transfer application is not submitted within the fourteen (14) day period specified in paragraph A of this section. Failure to timely submit the required complete application within the fourteen (14) day period may be cause for denial. D. Any building, electrical, plumbing, mechanical, fire, health, police or code enforcement matter involving a risk to public or private health or safety, including any notices of violation, notices to cure, orders of abatement, cease and desist orders, or correction notices, may be cause for denial of an application for a transfer of a Short-Term Rental Permit if not cured within a reasonable period of time, not to exceed thirty (30) calendar days, after the date on a notice from the Director of Development Services to the Owner or Long-Term Tenant to do so, unless a further extension is granted in writing by the Director of Development Services. E. No Person shall transfer or attempt to transfer a Short-Term Rental Permit to any other Person, except as authorized by this section. Any attempt to transfer a Short-Term Rental Permit in violation of this subsection shall be void and shall constitute a violation of this chapter. Likewise, any attempt to operate a Short-Term Rental use under a Short-Term Rental Permit transferred in violation of this subsection shall constitute a violation of this chapter. F. No Person shall convey or attempt to convey a Short-Term Rental Permit from one property to another property. Any attempt to convey a Short-Term Rental Permit from one property to another property shall be void and shall constitute a violation of this chapter. 5.68.100 TERM OF PERMIT. 2021/11/09 City Council Post Agenda Page 402 of 470 Ordinance Page 14 A. A Short-Term Rental Permit or renewal thereof issued under the authority of this chapter shall be valid from the date of its issuance until the first to occur of the Expiration Date set forth on the permit or the revocation or suspension date. A Short-Term Rental Permit shall be of no further force, validity, or effect, and use of a Dwelling for Short-Term Rental purposes shall cease, upon the first to occur of the Expiration Date or revocation or suspension date of the Short-Term Rental Permit. Upon the lapse of a Short-Term Rental Permit because of expiration, a failure to renew, or because revocation has occurred, the Permittee or his/her heirs, successors or assigns shall have no further right to undertake, maintain, facilitate, advertise for Rent, list, Rent, or use said Dwelling and/or the property as a Short-Term Rental unless subsequently renewed or reinstated under the terms of this chapter. B. Prior to expiration of a Short-Term Rental Permit, the Permittee may voluntarily cancel the permit by notifying the Director of Development Services in writing of the intent to cancel the permit. The permit shall become void upon the earlier to occur of the date specified by the Permittee or the expiration of the permit. C. A Short-Term Rental Permit shall not run with the land. The permission to operate a Short- Term Rental under this chapter shall be personal and limited to the Permittee, including a Person who acquires a Short-Term Rental Permit by application for a transfer in accordance with Section 5.68.090 of this chapter. 5.68.110 OPERATIONAL REQUIREMENTS. All Short-Term Rentals are subject to the following operational requirements: A. Compliance with Laws. All Owners, Long-Term Tenants, and Permittees shall cause their Short-Term Rental Property and Short-Term Rental Unit(s), prior to permit issuance or renewal, and at all times during the term of a Short-Term Rental Permit, to be in compliance with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws, regulations, and ordinances applicable to residential uses and the underlying zone and obtain all permits required and pay all applicable fees. B. Limit on Days Per Year. The Whole-Home Short-Term Rental of a Primary Residence shall be limited to a maximum of ninety (90) days per calendar year. For purposes of interpreting this section, exclusion of minor common spaces shall not be considered in determining Whole- Home Short-Term Rental status. There shall be no limit on the number of days per calendar year that a Partial-Home Short-Term Rental may operate. C. Insurance. The Permittee shall maintain and provide proof to City of liability insurance appropriate to cover the Short-Term Rental use in the aggregate of not less than one million dollars 2021/11/09 City Council Post Agenda Page 403 of 470 Ordinance Page 15 ($1,000,000); or conduct each Short-Term Rental transaction through a Hosting Platform that provides equal or greater insurance coverage. D. Update Changed Information. At any time during the pendency of a Short-Term Rental Permit application or renewal, if a change occurs in any facts set forth in the application or renewal request, the Permittee shall notify the City of such change immediately, but no later than withi n fourteen (14) calendar days after the occurrence of such change. E. Safety Requirements. Each Dwelling must satisfy the following requirements to the satisfaction of the City: 1. The property address shall be visible from the street and in contrasting colors for quick identification by emergency responders, day or night. 2. Smoke alarms shall be installed in all habitable areas except the kitchen in accordance with the Chula Vista Building Code. The Permittee shall be responsible for testing and maintaining the smoke alarms. 3. At least one 2A: 10BC-rated portable fire extinguisher (State Fire Marshal approved design) shall be installed in plain sight and within easy reach on each floor of the Dwelling. The Permittee shall be responsible for replacement or recharge after each use. The fire extinguisher shall be fully charged at all times. 4. One or more carbon monoxide devices meeting the standards of Section 13262 of the California Health and Safety Code shall be installed in common stairways and hallways. The Permittee shall be responsible for testing and maintaining the carbon monoxide devices. 5. Exterior gates leading to and from the front, side and/or back yards shall not be padlocked. 6. Hallway doors and exit doors shall not be obstructed or otherwise prohibited from fully opening. 7. No double-keyed dead bolt locks may be installed on exit doors. 8. Dwellings with swimming pools, as defined in Chapter 2 of the California Building Code, shall employ gates and other safety devices that conform to the specifications and requirements of the California Building Code. F. Local Contact Person Available. While a Short-Term Rental Unit is rented, the Permittee, the Permittee's Agent and/or a Local Contact Person shall be available by telephone twenty-four (24) hours per day, seven (7) days per week to respond to complaints from the renter and/or public regarding the use, condition, operation or conduct of occupants of a Short-Term Rental Unit. The Permittee, the Permittee's Agent, and/or a Local Contact Person must be on the premises of th e 2021/11/09 City Council Post Agenda Page 404 of 470 Ordinance Page 16 Short-Term Rental at the request of an Enforcement Officer or the City's Police Department within one (1) hour of contact to satisfactorily correct or take remedial action necessary to resolve any complaint, alleged nuisance, or violation of this chapter by occupants occurring at the Short-Term Rental Property. In order to facilitate communication, the Permittee shall provide contact information for themselves, the Local Contact and/or Permittee’s Agent to the City and the Responsible Person. Failure of the Permittee, the Permittee's Agent, and/or a Local Contact Person to respond to calls or complaints in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this chapter. G. Good Neighbor Handout. Each Short-Term Rental shall post a Good Neighbor Handout inside the permitted premises in close proximity to an entry point that includes emergency contact information for the Permittee and the Local Contact Person (if different). The Good Neighbor Handout shall also provide information about parking restrictions, restrictions on noise and amplified sound, trash collection schedule, relevant water restrictions, fire evacuation routes, and any other information, as required by the Director of Development Services, applicable to the Short-Term Rental and the surrounding neighborhood. H. Good Neighbor Letter. Within ten (10) calendar days following (i) the issuance of a Short- Term Rental Permit, (ii) the issuance of a renewal permit, and/or (iii) the approval of a transfer application, the Permittee shall mail or personally deliver in writing a Good Neighbor Letter, in a form authorized by the Director of Development Services to the owners and occupants of properties located on all sides of and directly across the street (or alley or other right-of-way) from the Short-Term Rental Property. Thereafter, within thirty (30) days of occurrence of any of the events described in (i), (ii) or (iii), the Permittee shall sign under penalty of perjury, and submit to the Director of Development Services, a certification that the required mailing or delivery was completed. If at any time during the term of a Short-Term Rental Permit, the Good Neighbor Letter information for the Permittee or Local Contact Person changes, the Permittee shall promptly mail or personally deliver in writing an updated Good Neighbor Letter to the owners and occupants of properties located on all sides of and directly across the street (or alley or other right-of-way) from the Short-Term Rental Property to maintain accuracy and shall also promptly submit to the Director of Development Services a signed under penalty of perjury certification that the required mailing or delivery of the updated information was completed. I. Off-Street Parking. All Short-Term Rental Property off-street parking shall conform to the provisions of Chapter 19.62 (Off-Street Parking and Loading) of this code; provided, however, that off-street parking spaces may be in tandem to other off-street parking spaces, or in some other on-site location and/or configuration, subject to the approval of the Director of Development Services in their sole and absolute discretion. The Permittee shall provide access to the garage of the Dwelling if that area has been included in the determination of the number of available off- street parking spaces pursuant to this chapter. In no event shall off-street parking include the use 2021/11/09 City Council Post Agenda Page 405 of 470 Ordinance Page 17 of landscaped areas, any private or public sidewalk, parkway, walkway, or alley (or any portion thereof) located on, at or adjacent to the Short-Term Rental Property or block the driveway or street in front of said property. The term "sidewalk" shall include the portion of the public right - of-way that is delineated for pedestrian travel including where it crosses a driveway. J. On-Street Parking. The maximum number of on-street parking spaces that may be used by a Short-Term Rental Property shall be limited to one (1). For those streets of the City governed by permit parking districts, the Permittee of a Short-Term Rental Property may purchase one (1) parking permit or placard from the City that can be used by guests, and must be visibly displayed inside the vehicle of the Short-Term Rental Occupant, allowing no more than one (1) Occupant vehicle to park on a public street in that particular permit district. K. No Recreational Vehicles. During periods that the Short-Term Rental Property is being used as a Short-Term Rental by Occupants, no recreational vehicle or other vehicle used or designed for use as lodging or sleeping accommodations, bus, boat, trailer, camper, cargo container, or personal water craft may be parked at or on the Short-Term Rental Property or on the street, unless it belongs to the Permittee, the Permittee is also physically occupying the Short-Term Rental Property during that period, the vehicle is not being used by Short-Term Rental Occupants, and in the case of an RV, a valid RV parking permit has been secured for the vehicle. L. Maximum Occupancies. The maximum number of Persons who may occupy the Short- Term Rental at any given time shall be limited to two (2) individual persons per Bedroom, plus two (2) additional individual persons. In no event may the maximum occupancy exceed ten (10) persons in any Short-Term Rental. For purposes of this section, Persons under the age of twelve (12) shall not count toward the occupancy limitation. If the Short-Term Rental Permit limits occupancy to a number less than that calculated pursuant to this section, the limit in the permit shall govern. M. No Large Events. At no time shall a Short-Term Rental Unit or Short-Term Rental Property be used for large-scale events exceeding the maximum allowed occupancy pursuant to this section, unless a Short-Term Rental Event Permit has been issued for such event pursuant to this chapter and only in accordance with the terms for such Permit. N. Advertising. All advertising appearing in any written publication or on any website that promotes the availability or existence of a Short-Term Rental shall include the City-issued Short- Term Rental Permit number as part of the rental offering. O. Signage. Short-Term Rental Properties shall comply with all signage restrictions and requirements applicable to the zone they are located in. P. Display of Business License. The business license or copy thereof shall be prominently displayed in a visible interior location at the Short-Term Rental Property during any periods of occupancy thereof by any Person other than the Owner(s) or Long-Term Tenant(s) of the Dwelling. 2021/11/09 City Council Post Agenda Page 406 of 470 Ordinance Page 18 Q. Duty to Minimize Noise, Disturbance, and Disorderly Conduct. The Permittee, the Permittee's Agent and the Local Contact Person shall use reasonably prudent business practices to ensure that the Occupants of a Short-Term Rental Unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the subject Short-Term Rental Unit, including, without limitation, violation of Section 17.24.040 or Chapter 19.68 of this code. R. Quiet Time From 10:00pm to 9:00am. The hours between 10:00 p.m. and 9:00 a.m. are considered to be "quiet time," so that no outdoor activity will disturb the peace and quiet of the neighborhood adjacent to a Short-Term Rental Property or cause discomfort or annoyance to any reasonable person of normal sensitivity residing in the area. It shall constitute a major violation if any Occupants engage in outdoor activities on a Short-Term Rental Property between the hours of 10:00 p.m. and 9:00 a.m. that involve the use of fire pits, barbecues, swimming pools, hot tubs, spas, tennis or paddleboard courts, or other similar and related improvements or play equipment, or if any Occupants engage in outdoor parties, outdoor singing, shouting, clapping or other activities generally associated with partying or if Occupants engage in any outdoor drunk or disorderly conduct during those hours. Any other outdoor conduct between the hours between 10:00 p.m. and 9:00 a.m. that disturbs the peace and quiet of the neighborhood adjacent to a Short- Term Rental Property or causes discomfort or annoyance to any reasonable person of normal sensitivity residing in the area, shall constitute a minor violation. It is not a violation for an Occupant to merely be out of doors during quiet time hours, so long as there is no conduct that disturbs the peace and quiet of the neighborhood adjacent to a Short-Term Rental Property or causes discomfort or annoyance to any reasonable person of normal sensitivity residing in the area. The Permittee shall post signs of a size, type and at a location (or locatio ns) acceptable to the Director of Development Services near all doors leading to the exterior of a Short-Term Rental Unit, advising Occupants of "quiet time." S. Trash and Debris. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the responsible trash hauler and between the hours of 5:00 p.m. the day before and 12:00 midnight the day of the scheduled trash collection. The Permittee of a Short-Term Rental Property shall provide sufficient trash collection containers and service to meet the demand of the Occupants. The Short-Term Rental Property shall be free of debris both on-site and in the adjacent portion of the street. T. Written Contract Requirements. Prior to occupancy pursuant to each separate occasion of rental of a Short-Term Rental Unit, the Permittee or the Permittee's Agent shall enter into a written rental agreement with a Responsible Person for each separate rental occasion. The Responsible Person (i) shall be at least twenty-one (21) years of age; (ii) shall be an Occupant of the subject Short-Term Rental Unit during the term of said agreement; (iii) shall be legally responsible for ensuring that all Occupants of the Short-Term Rental Unit comply with all 2021/11/09 City Council Post Agenda Page 407 of 470 Ordinance Page 19 applicable laws, rules and regulations pertaining to the use and occupancy of the subject Short- Term Rental Unit; and (iv) may be held liable for any violation of all applicable laws, rules and regulations set forth in this chapter. The written rental agreement shall establish and set out the terms and conditions of the rental and require the Responsible Person to (1) provide his or her name, age, address, driver's license number or passport number; (2) provide the vehicle license number(s) for any cars to be parked on-street ; (3) agree to be accessible to the Permittee, the Permittee's Agent and the Local Contact Person (if any) by telephone at all times; (4) acknowledge his or her understanding of all City of Chula Vista Short-Term Rental rules; and (5) agree that they are liable for any fines incurred by Occupants and legally responsible for compliance by all Occupants of the Short-Term Rental Unit with all provisions of this chapter and this code. Said written rental agreement shall also include the following terms, notifications, and disclosures: 1. The maximum number of Occupants that are permitted and notification that failure to conform to the maximum occupancy is a violation of this chapter. 2. The number of off-street parking spaces provided on the Short-Term Rental Property and the maximum number of vehicles that are permitted, along with the number of available permits for parking on the public street (if any), with the requirement to visibly display such permits in the vehicles, and a summary of all applicable parking rules. 3. The trash pick-up day(s) and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the Short-Term Rental Property. 4. Notification that Occupants may be cited or fined by the City and/or that the Permittee or the Permittee's Agent has the right to immediately terminate the rental agreement and immediately evict the Responsible Person and all Occupants upon any violation of this chapter or the code by any Occupant. 5. The name of the Permittee's Agent and the name of the Local Contact Person (if any) and a telephone number at which those Persons may be reached at all times and 9 -1- 1 Emergency information. 6. A clear and conspicuous statement that Occupants must obey the requirements set forth in this chapter even if these requirements are stricter than the applicable covenants, conditions and restrictions or other rules or regulations of the governing body of any homeowners' association or maintenance organization having jurisdiction over the Short- Term Rental Property. 7. A summary of any applicable covenants, conditions and restrictions and rules and regulations, including pool location and hours, of the governing body of any homeowners' or maintenance association having jurisdiction over the Short-Term Rental Property. 8. A copy of this chapter of the code, as the same may be amended from time to time. 2021/11/09 City Council Post Agenda Page 408 of 470 Ordinance Page 20 9. A copy of the rental agreement shall be given to each Occupant and shall be readily available for review upon inspections conducted by any Enforcement Officer or the City's Police Department pursuant to this chapter U. Garages. Unless the garage of the Dwelling has been included in the calculation of the number of available off-street parking spaces pursuant to this chapter, a garage may be used by the Permittee and Occupants of a Short-Term Rental as a game room in accordance with the City's requirements therefor; provided, however, that (a) no couches or other furniture designed for use as, or conducive to, sleeping accommodations shall be located inside a garage; (b) no independent living accommodations and facilities (including provisions for living, sleeping, eating, cooking and sanitation) shall be located inside a garage; (c) the garage door must be kept closed and the Director of Development Services may require soundproofing of the garage as a condition of permit issuance on the basis of substantiated complaints of noise emanating from the garage; (d) a garage may not be used at any time for sleeping purposes; and (e) a garage may not be permanently modified to preclude its future use for the parking of vehicles. V. Covenants, Conditions, and Restrictions. It is the responsibility of the Permittee and not the City to investigate, verify with the relevant homeowners' association or maintenance organization, and determine that the use of a Dwelling as a Short-Term Rental does not violate any applicable covenants, conditions, and restrictions or any of the regulations or rules of the homeowners' association or maintenance organization having jurisdiction in connection with the Short-Term Rental Property. Notwithstanding the City's issuance of a Short-Term Rental Permit, the City shall not have any obligation or be responsible for making a determination regarding whether or not the issuance of a Short-Term Rental Permit or the use of a Dwelling as a Short- Term Rental is permitted under any covenants, conditions and restrictions or any of the regulations or rules of the homeowners' association or maintenance organization having jurisdiction in connection with the Short-Term Rental Property, and the City shall have no enforcement obligations in connection with such covenants, conditions and restrictions or such regulations or rules. W. Transient Occupancy Tax. All Short-Term Rentals shall be subject to the City's transient occupancy tax, as required by Chapter 3.40 (Transient Occupancy Tax) of this code. X. Receipts to be Maintained. The Permittee shall maintain the amount of gross receipts, including but not limited to Rent and transient occupancy tax paid for each stay in a format required by the City. Y. City Inspections. Consistent with applicable law, the City shall have the authority to conduct random inspections of Short-Term Rental properties and Short-Term Rental Units as the Director of Development Services deems necessary or prudent to ensure compliance with the 2021/11/09 City Council Post Agenda Page 409 of 470 Ordinance Page 21 provisions of this chapter, including without limitation, based upon any complaints or violations that occur or prior to a renewal of a permit. Z. Additional Conditions. The Director of Development Services shall have the authority at any time to impose additional conditions on the use of any Short-Term Rental Unit and/or property to ensure that any potential secondary effects unique to the subject Short-Term Rental Unit or property are avoided or adequately mitigated. AA. Hardships. The Director of Development Services is authorized to modify the standard conditions upon request of an Applicant, Permittee, or their Agent, based on site-specific circumstances for the purpose of allowing accommodation of a Short-Term Rental Unit. All requests must be in writing and shall identify how the strict application of one or more of the standard conditions create an actual and unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a Short-Term Rental would not be allowed. Any hardships identified must relate to physical constraints to the Short-Term Rental Property and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem. An Applicant or Permittee may be required to provide such other supplemental information as may be requested by the Director of Development Services. The Director of Development Services shall only allow modifications which are consistent with the purpose and intent of this chapter. 5.68.120 SHORT-TERM RENTAL EVENT PERMIT A. At no time shall a Short-Term Rental Unit or Short-Term Rental Property be used for large- scale events exceeding the maximum allowed occupancy pursuant to Section 5.68.110 in exchange for Rent unless a Short-Term Rental Event Permit has been issued. For purposes of this section “large scale events” shall include without limitation commercial parties, weddings, fundraisers, conferences, or other similar assemblies that are separate from the purpose of lodging. B. The maximum number of Short-Term Rental Event Permits that can be issued per Short- Term Rental Permit unit each term shall be limited to twelve (12). Any application for a Short - Term Rental Event Permit thereafter and within the same permit term shall automatically be deemed null and void by the City. C. Each Short-Term Rental Event Permit shall have a maximum term of twelve (12) hours. D. A duly issued, valid and in effect, Short-Term Rental Permit shall be required in order to apply for a Short-Term Rental Event Permit. E. Short-Term Rental Event Permits may be issued in the following residential zones: R-E – Residential Estates Zone; R-1 – Single-Family Residence Zone; R-2 – One- and Two- Family Residence Zone; MHP – Exclusive Mobilehome Park Zone; R-3 - Apartment Residential Zone; 2021/11/09 City Council Post Agenda Page 410 of 470 Ordinance Page 22 and equivalent residential zones in specific plans or sectional planning area plans that allow residential uses. F. The application for a Short-Term Rental Event Permit shall be upon a form provided by the Director of Development Services and accompanied by payment of a Short-Term Rental Event Permit fee set by resolution of the City Council as presently designated, or as may be in the future amended, in the master fee schedule of the City. G. The issuance of a Short-Term Rental Event Permit shall not be construed to authorize the conduct or continuance of any illegal Short-Term Rental or of a legal Short-Term Rental in an illegal manner. All Owners, Long-Term Tenants, and Permittees shall cause their Short-Term Rental Property and Short-Term Rental Units, prior to permit issuance and at all times during the term of a Short-Term Rental Event Permit, to be in compliance with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws, regulations, and ordinances applicable to residential uses and the underlying zone and obtain all permits required and pay all applicable fees. 5.68.130 LIMITATIONS ON CITY’S LIABILITY To the maximum extent allowed by law, the City shall not incur or assume any direct or indirect liability as a result of having issued a Short-Term Rental Permit or Short-Term Rental Event Permit pursuant to this chapter. As a condition of permit issuance, the Applicant shall provide written acknowledgement and agreement that, in the event a permit is approved and issued, it agrees to assume all risk and defend, indemnify and hold harmless the City concerning the City's approval and issuance of the permit, the operation and maintenance of the Short-Term Rental Unit and Short-Term Rental Property, and any other matter relating to the Short-Term Rental Unit and Short-Term Rental Property, including without limitation any claim or demand made by the governing body of a homeowners' or maintenance association having jurisdiction over the subject Dwelling in any action or proceeding in which the City is named or made a party arising out of or connected with the subject matter of any applicable covenants, conditions and restrictions and/or rules and regulations, except that the Applicant shall not be required to indemnify, defend or hold harmless the City for the City's sole negligence or intentional misconduct. If the Applicant is a Long-Term Tenant where such tenant is offering a Dwelling, or any portion thereof, as a Short - Term Rental, the Owner of the Dwelling that is the subject of the Short-Term Rental Permit shall provide the same written acknowledgement and agreement. 2021/11/09 City Council Post Agenda Page 411 of 470 Ordinance Page 23 5.68.140 AUDIT INSPECTION. Each Permittee, Agent, or representative of any Owner (i) shall provide to the Director of Development Services such records relating to the use and occupancy of the Short-Term Rental Unit, and (ii) shall cooperate in the conduct of inspections of the Short-Term Rental Unit, as may be reasonably requested by the Director of Development Services, to determine that the objectives and conditions of this chapter are met. 5.68.150 RESPONSIBILITIES OF HOSTING PLATFORMS. A. Take Down Notice. Upon written or electronic notification from the City that the City has not issued a permit for a Short-Term Rental which is listed or advertised on the Internet web site provided or maintained by a Hosting Platform, the Hosting Platform shall discontinue and remove the listing or advertisement within ten (10) calendar days from the transmittal date of the notification. The Hosting Platform thereafter shall not list or advertise the Short-Term Rental without written certification from the City that the required permit has been issued. B. Information to be Provided to Responsible Person. A Hosting Platform operating in the City shall provide the following information to any Person listing a Dwelling Unit through the Hosting Platform’s service: 1. Notice of the requirements listed in this chapter, including the requirement to obtain a license prior to any listing; 2. Notice of the transient occupancy tax requirements (Chapter 5.02 of this code) Upon request by the City, a Hosting Platform shall provide documentation to the City demonstrating that the Hosting Platform provided the required notification. Hosting Platform’s failure to provide written notification shall not excuse any Person from complying with any local regulations. C. TOT Collection Responsibilities. The Hosting Platform shall collect all required transient occupancy taxes on accommodation transactions facilitated by the Hosting Platform and shall remit the taxes on a monthly basis to the City with the completion of a form approved by the City. A Hosting Platform collecting and remitting transient occupancy taxes under this section shall issue a receipt to each Responsible Person. The Hosting Platform shall separately state o n the receipt the amount of the transient occupancy tax charged and maintain a duplicate of such receipt. A Hosting Platform shall maintain all documentation necessary to demonstrate that the proper amount of taxes have been remitted to the City for a period of four (4) years after the date of remittance. D. Information to be Collected and Provided to City. Subject to applicable law, a Hosting Platform with listings located in the City shall provide to the City on a monthly basis, in a format 2021/11/09 City Council Post Agenda Page 412 of 470 Ordinance Page 24 specified by the City, the Short-Term Rental Permit number of each listing, the name of the Person responsible for each listing, the address of each such listing, and, for each booking that occurs within the reporting period, the number of days booked, whether the booking was for a Whole- Home Short-Term Rental or a Partial-Home Short-Term Rental, and the total price paid for each rental. A Hosting Platform shall maintain, to the extent received from the Person responsible for the listing, the following information for each Dwelling Unit in the City for which the Hosting Platform provided a booking service for a period of four (4) years from the date of the transaction: 1. The first and last name of the Person who offered the Short-Term Rental; 2. The exact street address of the Dwelling Unit, including any unit numbers; 3. The dates for which a Responsible Person procured occupancy of the Dwelling Unit using the booking service provided by the Hosting Platform, and the total number of room nights by reporting period by owner; 4. The amount of gross receipts, including but not limited to Rent and transient occupancy tax, paid for each stay in a format required by the City; and 5. The City Short-Term Rental Permit number and the City Transient Occupancy Tax Certificate number associated with the Short-Term Rental. A Hosting Platform shall deliver information set forth in this section to the City upon request. The City may apply auditing procedures necessary to determine the amount of taxes due to the City and to ensure compliance with this chapter. E. Conformance to Law. The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the City to be in violation of any such law(s). 5.68.160 VIOLATIONS/PENALTIES. A. It shall be unlawful for any Person to violate any provision or fail to comply with the requirements of this chapter or any regulation adopted hereunder. Each day that a violation continues is deemed to be a new and separate offense. B. Any Person violating any of the provisions or failing to comply with any of the requirements of this chapter or any regulation adopted hereunder shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for a period of not more than six months, or by both a fine and imprisonment. No proof of knowledge, intent, or other mental state 2021/11/09 City Council Post Agenda Page 413 of 470 Ordinance Page 25 is required to establish a violation. At the sole discretion of the City Prosecutor, any violation of this chapter may in the alternative be cited and prosecuted as an infraction. C. Any condition caused or allowed to exist in violation of any of the provisions of this chapter or any regulation adopted hereunder is a public nuisance. Such violation may be abated by the City, or by the City Attorney on behalf the people of the state of California, as a nuisance in any manner provided for in this code, including summary abatement, or otherwise provided by law or equity, including a restraining order, injunction, or any other order or judgment in law or equity issued by a court of competent jurisdiction. The City, or the City Attorney on behalf of the people of the state of California, may seek injunctive relief to enjoin violations of, or to compel compliance with, this chapter or seek any other relief or remedy available at law or equity, including the imposition of monetary civil penalties. All expenses incurred by the City in connection with any action to abate a public nuisance will be chargeable as authorized by law to the Persons creating, causing, committing, or maintaining the public nuisance. D. An Enforcement Officer may issue administrative citations or civil penalties in accordance with chapter 1.41 for violation of any of the provisions of this chapter or any regulation adopted hereunder. When a violation occurs, it is not required that a warning or notice to cure must first be given before an administrative citation or civil penalty may be issued. Any report where the City's Police Department has concluded that a violation of this chapter has occurred may be submitted to the Director of Development Services for review, processing and issuance of an administrative citation or civil penalty by an Enforcement Officer. E. Each criminal citation, administrative citation, and civil penalty issued for a violation of any provision of his chapter may be issued, levied, or assessed against one or more of: the Owner, the Permittee, the Permittee’s Agent, a Hosting Platform, the Responsible Party, the Occupant, and any other Person who caused, created, committed, or maintained the violation. F. A violation of any provision of this chapter by any Permittee, Permittee's Agent, Local Contact Person, Responsible Person or Occupant of a Short-Term Rental shall constitute grounds for modification of the Short-Term Rental Permit. G. The Director of Development Services may suspend or revoke a Short-Term Rental Permit if any three (3) major violations are issued in connection with the same Short-Term Rental Property within a continuous period of twelve (12) months, including major violations that result from aggregating minor violations into a major violation as described in section 5.68.160(I)(1)(h) below. A change of ownership shall have no effect on the accumulation of violations against the Short- Term Rental Property. H. When a violation occurs, it is not required that a warning or notice to cure must first be given in order to impose the sanction of modification, suspension, or revocation of the Short-Term Rental Permit. 2021/11/09 City Council Post Agenda Page 414 of 470 Ordinance Page 26 I. For purposes of this section, 1. A "major violation" consists of any of the following: a. Operating a Short-Term Rental without a securing a Short-Term Rental Permit pursuant to this chapter; b. Exceeding Short-Term Rental Unit occupancy limitations without securing a Short-Term Rental Event Permit pursuant to this chapter; c. Any Occupants engaging in outdoor activities on a Short-Term Rental Property between the hours of 10:00 p.m. and 9:00 a.m. that involve the use of fire pits, barbecues, swimming pools, hot tubs, spas, tennis or paddleboard courts, or other similar and related improvements or play equipment, or if any Occupants engage in outdoor parties, outdoor singing, shouting, clapping or other activities generally associated with partying or if Occupants engage in any outdoor drunk or disorderly conduct during those hours; d. The Permittee, the Permittee's Agent and/or the Local Contact Person, failing to respond to an Enforcement Officer's request, respond within one (1) hour, or to reasonably cooperate in facilitating an investigation and the correction of a suspected violation of this chapter; e. The unpermitted use of a garage as a game room or for sleeping purposes at a Short-Term Rental Unit or on a Short-Term Rental Property; f. Criminal activities by the Permittee, Permittee’s Agent, the Local Contact Person, or any Occupant on the premises; however, a minor violation shall not be deemed a criminal activity for purposes of constituting a major violation merely because any violation of this chapter may constitute a misdemeanor or a public nuisance; g. Any other violation of this chapter determined by the City Manager to constitute a serious threat to the public health or safety of the community; or h. Four (4) minor violations of any type in connection with the same Short - Term Rental Unit or Short-Term Rental Property during any continuous period of twelve (12) months. 2. A "minor violation" consists of any of the following: a. A failure of the Permittee to obtain the signature of the Responsible Person acknowledging the rules; b. A failure to pay the Transient Occupancy Tax (TOT) required for the Short- Term Rental; or 2021/11/09 City Council Post Agenda Page 415 of 470 Ordinance Page 27 c. Any violation of any law, ordinance, resolution, or permit condition regulating Short-Term Rental Units or Short-Term Rental Properties or any other provisions of federal, state, or local law that does not constitute a "major violation" as set forth above. J. The City may issue an administrative citation or civil penalty for any violation of this chapter as follows: 1. First offense — not to exceed one hundred dollars ($100.00) for a minor offense and one thousand dollars ($1,000.00) for a major offense; 2. Second offense within any continuous period of twelve (12) consecutive months — not to exceed five hundred dollars ($500.00) if the offense is a minor offense and two thousand dollars ($2,000.00) if the offense is a major offense; 3. Third and fourth offenses within any continuous period of twelve (12) consecutive months — not to exceed one thousand dollars ($1,000.00) if the offense is a minor offense and four thousand dollars ($4,000.00) if the offense is a major offense. 4. Fifth and subsequent offenses within any continuous period of twelve (12) consecutive months — not to exceed one thousand five hundred dollars ($1,500.00) if the offense is a minor offense and not to exceed five thousand dollars ($5,000.00) if the offense is a major offense. K. Unless prohibited by any state or federal law, the City may issue a Hosting Platform an administrative citation or civil penalty for any violation of this chapter or the code by the Hosting Platform as follows: 1. First offense — not to exceed five hundred dollars ($500.00); 2. Second offense within any continuous period of twelve (12) consecutive months — not to exceed one thousand dollars ($1,000.00); 3. Third and subsequent offenses within any continuous period of twelve (12) consecutive months — not to exceed two thousand dollars ($2,000.00). L. Whenever in this chapter any act or omission is made unlawful, it shall include causing, aiding, abetting, suffering, or concealing the fact of such act or omission. M. The remedies specified in this section are cumulative and in addition to any other remedies available under state or local law for violation of this code. N. Nothing in this section shall be construed as requiring the City to allow, permit, license, authorize or otherwise regulate Short Term Rental or Event activity, or as abridging the City’s police power with respect to enforcement regarding Short Term Rental or Event activity. 2021/11/09 City Council Post Agenda Page 416 of 470 Ordinance Page 28 5.68.170 PROCEDURE FOR IMPOSITION OF MODIFICATION, SUSPENSION AND/OR REVOCATION OF SHORT-TERM RENTAL PERMIT. A. In addition to any other penalty authorized by law, a Short-Term Rental Permit may be modified, suspended, or revoked for any violation of this chapter or federal, state, or local law in accordance with the provisions of this section. B. The Director of Development Services shall have the authority to modify a Short-Term Rental Permit to impose additional conditions or amend existing terms or conditions in the event of any violation of any condition of the permit or any violation of this chapter or federal, state, or local law. C. Any modification of conditions or suspension or revocation of a Short-Term Rental Permit shall be in accordance with the following procedures. 1. The Director of Development Services shall conduct an investigation whenever they have reason to believe that an Owner, Permittee, Permittee’s Agent, or Local Contact Person is in violation of, or has failed to comply with, any condition of the Short -Term Rental Permit, any requirements of this chapter or federal, state, or local law. 2. Should the investigation reveal substantial evidence to support a finding that a violation occurred, the Director of Development Services shall issue a written notice of intention to modify, suspend and/or revoke the permit. The written notice shall be served on the responsible Person, shall specify the facts which, in the opinion of the Director of Development Services, constitute substantial evidence to establish grounds for modification, suspension and/or revocation, and state that the permit will be modified, suspended or revoked within thirty (30) calendar days from the date the notice is given unless the Owner or Person aggrieved by the Director of Development Services' decision files with the City Clerk, before the modification, suspension or revocation becomes effective, a request for an administrative hearing to appeal the decision pursuant to Section 5.68.180. 5.68.180 APPEAL PROCEDURES. A. Any affected Person may appeal a decision of the Development Services Director modifying, denying, suspending, or revoking a Short-Term Rental Permit to the City Manager within thirty (30) calendar days from the date the notice is given. Said appeal shall be in writing and filed with the City Clerk upon forms provided by the Development Services Department and shall specify therein that the decision of the Development Services Director was in error and identify the facts and circumstances on which the claim of error is based. If an appeal is filed within 2021/11/09 City Council Post Agenda Page 417 of 470 Ordinance Page 29 the time limit specified, it shall automatically stay proceedings in the matter until a determination is made by the City Manager. The City Manager shall set the matter for hearing before a hearing examiner and notify the parties in writing of the date and location of the hearing at least ten (10) business days prior to said date. B. The fee to request an appeal pursuant to this chapter shall be in the form of a deposit, the amount to be determined by the City Manager in accordance with any applicable law based on the anticipated staff cost to conduct the hearing. If the cost of the hearing or appeal exceeds the deposited amount, the requesting party shall be responsible for payment of the additional costs incurred. If the hearing officer determines that the violation is not supported by the evidence, the entire deposited amount will be returned to the party that requested the appeal. The appeal hearing shall be conducted pursuant to Sections 1.30.090 and 1.30.100 of this code. 5.68.190 EFFECT OF SHORT-TERM RENTALS ORDINANCE ON OTHER PROVISIONS OF CODE. The issuance of any Short-Term Rental Permit pursuant to this chapter shall not relieve the Owner of the obligation to comply with all other provisions of this code pertaining to the use and occupancy of the Short-Term Rental or the Short-Term Rental Property on which it is located. 5.68.200 PROMULGATION OF REGULATIONS, STANDARDS, AND OTHER LEGAL DUTIES. A. In addition to any regulations adopted by the City Council, the City Manager is authorized to establish, consistent with the terms of this chapter, any additional administrative rules, regulations and standards governing the issuance, denial or renewal of Short-Term Rental Permits or Short-Term Rental Event Permits and any other subject determined to be necessary to carry out the purposes of this chapter. B. Regulations shall be published on the City’s website and maintained and available to the public in the Office of the City Clerk. C. Regulations promulgated by the City Council or the City Manager shall become effective and enforceable upon date of publication on the City’s website or, with respect to existing Short- Term Rental Permits, upon the date specified in a written notice to Permittees by the City. 5.68.210 NO VESTED RIGHTS. Except in instances where constitutional principles or binding state or federal law otherwise provide, neither the provisions of the code nor any ordinances or other measures concerning Short- 2021/11/09 City Council Post Agenda Page 418 of 470 Ordinance Page 30 Term Rentals are a grant of vested rights to continue as a Short-Term Rental indefinitely, and any Short-Term Rental use and/or permits for a Short-Term Rental use are subject to provisions of other ordinances, resolutions, or other City measures concerning Short-Term Rentals that may be enacted or adopted, though such ordinances, resolutions, or other City measures may change the terms, conditions and/or duration for a Short-Term Rental use, including but not limited to those that may terminate some or all Short-Term Rental uses, with or without some period of amortization. While this recitation concerning vested rights is implicit in any uses permitted by the City, this explicit recitation is set forth to avoid any uncertainty or confusion. 5.68.220 EFFECTIVE DATE. This chapter shall take effect and be in force on January 1, 2022, with the exception of Sections 5.68.040 (Permit Required), 5.68.080 (Renewals), 5.68.120 (Short-Term Rental Event Permit), and 5.68.150 (Responsibilities of Hosting Platforms). Sections 5.68.040, 5.68.080, 5.68.120, and 5.68.150 shall take effect and be in force as of July 1, 2022. Violations of the effective sections of this chapter prior to July 1, 2022 may be cause for denial of a Short-Term Rental Permit application. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication 2021/11/09 City Council Post Agenda Page 419 of 470 Ordinance Page 31 The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Tiffany Allen Glen R. Googins Director of Development Services City Attorney 2021/11/09 City Council Post Agenda Page 420 of 470 Warning: External Email From: webmaster@chulavistaca.gov on behalf of City of Chula Vista | 276 Fourth Avenue Chula Vista, CA 91910 <webmaster@chulavistaca.gov> Sent: Sunday, October 17, 2021 7:17 PM To: Tiffany Allen Subject: Email contacshort term rental Message submied from the <City of Chula Vista> website. Site Visitor Name: Gary Baker Site Visitor Email: Please ask quickly to save our neighborhoods! City of San Diego voted to restrict short term rentals(STR), guess where they will go next...Chula Vista! The STR in our neighborhood is a disaster! Trash is always in the front yard, furniture and cans. Lots of cars and vans. Noisy and inconsiderate parers do not care about our neighborhood, or our children, they only want to party. 17 people are allowed in this home! You want to destroy the integrity of Chula Vista neighborhoods, turn them into short term rentals. Help us maintain our family oriented neighborhoods. Thank you. 2021/11/09 City Council Post Agenda Page 421 of 470 Terry L. Manges Tiffany Allen City of Chula Vista Director, Development Services Department 276 Fourth Avenue Chula Vista, CA 91910 RE: Short Term Rental Ordinance Dear Ms. Allen, Thank you for leading the Developmental Services Department’s work in drafting a City Ordinance that regulates the operation of Short Term (Vacation) Rentals (STRs) in our city. Following are my first- hand observations and comments regarding STRs in my neighborhood and my suggestions for issues to address in the STR Ordinance. I am a homeowner and resident of the Rancho del Rey neighborhood of Chula Vista. Following are some of the negative impacts I have observed during the past 1 ½ years (approximately) when one of the homes on my street was converted from a long-term rental and made available as a full time STR. The home in my example is a 2 story, 3,100+ sq. ft. 5 BR house (with a pool) currently valued at around $1.25 M. My First-Hand Observations  During the busy months of the year (Jun – Sep) there is a steady stream of renters in groups of varying composition and purposes. It is not unusual for there to be at least two, sometimes three groups each week.  Just the ambient noise and the commotion of the vehicles and people arriving/leaving frequently at all hours of the day and night is distracting (often disturbing) to say the least. In addition to the renters themselves there are frequently other visitors, presumably local friends and family along with their cars that come and go.  Rental groups frequently host gatherings (barbeques, pool parties, event celebrations, etc.). The noise (music, loud voices, children shrieking) often disturbs neighbors’ quiet enjoyment of their homes. The Chula Vista Police Department has been called upon in many instances to address complaints of excessive noise or other public nuisance and are well acquainted with our neighborhood STR.  Renters’ vehicles and those of their invited visitors occupy the limited available street parking. It is not unusual for there to be 4-6 STR-related vehicles parked on the street (not counting those in the garage and driveway). 2021/11/09 City Council Post Agenda Page 422 of 470  Neither the owner or property manager is readily available to deal with problems as they arise and renters often fail to follow acceptable norms of acceptable behavior and common courtesy and treat their STR like a college spring break destination.  In the aftermath of each rental group there is a scramble of activity to clean and repair the STR and prepare for the arrival of the next group. The trash alone requires up to 5 large containers; sometimes with extra plastic bags that are opened by scavengers and end up all over the street.  This cycle repeats at least on a weekly basis. Nationwide, the number of homes listed for short term rental has grown rapidly over the past few years. With this rapid growth, many communities across the country are experiencing the many negative consequences of an increased volume of ‘strangers’ in residential communities. In Chula Vista, like San Diego City, the City Council and Mayor have been deluged with complaints arising out of the unrestricted operation of STRs. It is commendable that our city government leaders are considering adopting regulations in the form of a city ordinance to mitigate these negative side effects. It is my hope that our City Council, with your guidance and counsel, will adopt sensible and enforceable local policies that balance the rights of homeowners with the interests of neighbors and other community members who experience the negative side-effects associated with people renting out their homes on a short-term basis. While it may be lucrative for private citizens to become part-time innkeepers, most of the negative impacts are borne by the neighbors and surrounding community who don’t get anything in return. I believe that STRs change the character of a neighborhood. As desirable it might be for certain individuals and the temporary occupants of the properties, the unrestricted operation of STRs is associated overall with the commercialization of family neighborhoods and a decline in the quality of life within them. Residential neighborhoods are not planned to include pseudo hotels. In addition, tourists and others renting STRs mainly located in residential areas are reducing the availability of space that otherwise might be used for long-term housing that is currently in short supply. In my opinion the Council should adopt a formal permit (or license) requirement in order to operate an STR. Furthermore, STR permits should be restricted to principal residences and those homes used only occasionally as short-term rentals; not continuously rented out to random people on a short-term basis. Adopting a permanent residency requirement for STR permit holders would impose a practical upper limit to how often most properties are rented out each year. Further, most homeowners would not choose to rent out their primary residence to people who may trash it or be a nuisance to the neighbors. The permanent residency requirement would therefore also help minimize noise, parking and trash related issues. Sincerely, Terry Manges 2021/11/09 City Council Post Agenda Page 423 of 470 From: Terry Manges <tlmanges@cox.net> Sent: Monday, November 08, 2021 1:41 PM To: Mary Salas <MSalas@chulavistaca.gov> Subject: Short-Term Rental Ordinance Dear Mayor Salas Casillas, Thank you so much for your leadership in addressing the issue(s) associated with Short-Term Rentals (STRs) in Chula Vista .It is commendable that our city government leaders are considering adopting regulations in the form of a city ordinance that will mitigate many of the negative side effects of STRs. It is my hope that our City Council will adopt sensible and enforceable local policies that balance the rights of property owners with the interests of neighbors and other community members who experience the negative side-effects associated with people renting out their homes on a short-term basis. The proposed ordinance on tomorrow's Council agenda is certainly a step in the right direction. I believe that our city cannot continue to allow the operation Short-Term Rentals without providing a regulatory framework. With the growing popularity of STRs many property owners are converting their homes and long-term rental property(ies) to STRs. With the increase in the number of STRs in the City's residential neighborhoods the negative impacts of STRs, e.g., nuisance activity, noise, parking and trash issues, have become abundantly clear.. In my opinion, it is absolutely necessary to respect neighborhood residents' rights to the safe and quiet enjoyment of their homes. This is best accomplished with an ordinance such as is being presented for a first reading tomorrow. 68% of respondents to the Chula Vista Development Services Department's online survey on Short-Terms Rental issues opposed allowing Short-Term Rentals in their neighborhoods. Please support strong action to address the STR problem.We are counting on you! Sincerely, Terry Manges Warning: External Email Written Communications Item 8.3 - Manges mailto:tlmanges @cox.net mailto:MSalas@chula vistaca.gov 2021/11/09 City Council Post Agenda Page 424 of 470 From: Friedly, David <dfriedly@noresco.com> Sent: Monday, November 08, 2021 11:35 PM To: Mary Salas <MSalas@chulavistaca.gov> Subject: Chula Vista vacation rentals Dear Chula Vista Official, Please do not allow the creation of more government control over what the People can and can’t do with and on their property. Creating regulations on the people you serve, to further control the freedoms that we enjoy is an over reach. Regardless , wether it’s to try and control a few bad apples or weather it’s to favor big buisness it’s inappropriate and just wrong. I don’t rent my house nor do I Abnb it but I’m absolutely in the camp of allowing the people to manage their own situations, should some laws be broken during the rental of a property short or long term allow these violations to be handled on a case by case basis through existing ordinance s and laws. I ask that you strongly consider my input and do not move forward with creating more regulations on your constituents. Allow the people of this city to rent thier properties long and short term regardless of the property being owner occupied or not. David Friedly 659 Mission Ct. Chula Vista Warning: External Email Written Communications Item 8.3 - Friedly mailto:dfriedly@nor esco.com mailto:MSalas@chula vistaca.gov 2021/11/09 City Council Post Agenda Page 425 of 470 From: Frank Walker <fdwalkerlaw@gmail.com> Sent: Tuesday, November 9, 2021 2:22 PM To: tallen@chulavista.gov; Tiffany Allen <TAllen@chulavistaca.gov> Subject: STR ordinance Hi Tiffany, My wife and I are long-time Chula Vista residents. We operate an STR in a portion of our primary residence. We spoke with you some months ago at a community meeting opportunity on the deck of the F Street library. We recently became aware of the STR ordinance which is on the agenda of the city council meeting tonight. We received an email several days ago from another Airbnb host claiming that the city was preparing to ban Airbnbs / STRs from operating in Chula Vista. I then read the staff report on the proposed ordinance. I believe it is a well-crafted and well thought out proposal which strikes a reasonable balance between the rights of property owners to operate STRs and the welfare of the community as a whole, including the many neighboring residents who are impacted by the presence of an STR. The penalty for first time major violations do seem high at 1,000. I would prefer to see a $500 first time maximum penalty increasing to $1,000 for second time vio;ations. Perhaps $1,000 is appropriate for failing to obtain a permit . But maybe these are maximums and lower pena;lties could be assessed in the discretion of the enforcing officer? Or is there any discretion. Warning: External Email Written Communications Item 8.3 - Walker mailto:fdwalkerlaw@ gmail.com mailto:tallen@chul avista.gov mailto:TAllen@chula vistaca.gov 2021/11/09 City Council Post Agenda Page 426 of 470 However, in general, I commend Development Services for a sound proposal. Clearly, a lot of work and thought went into the staff report and supporting attachments. Regards, Frank Walker Frank D. Walker Law Office of Frank D. Walker Tel. (619) 861-4350 fdwalkerlaw@gmail.com Written Communications Item 8.3 - Walker mailto:fdwalkerlaw@ gmail.com 2021/11/09 City Council Post Agenda Page 427 of 470 v . 0 03 P a g e | 1 November 9, 2021 ITEM TITLE Emergency Shelter Units: Approval of a Master Product and Services Agreement with Pallet SPC for Emergency Shelter Units Report Number: 21-0182 Location: 205 27th Street Department: Development Services Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution approving a Master Product and Services Agreement with Pallet SPC. SUMMARY In response to the homeless crisis faced by the City and the region, the City is pursuing development of a temporary bridge shelter, to be located at 205 27th Street. This item presents the option to purchase sixty- six (66) individual housing units and two (2) multi-purpose rooms, for a total of sixty-eight (68) units to be installed on the site. Development of the site for this use also includes the installation of restrooms, showers, a laundry facility and security, as well as basic site improvements (i.e., grading, electrical infrastructure, lighting). ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Under NEPA, the activity is exempt pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines. Thus, no further environmental review is necessary at this time. Although environmental review is not necessary at this time, once a project(s) has been defined, environmental review will be required and a CEQA/NEPA determination completed prior to initiation of any related project activity. 2021/11/09 City Council Post Agenda Page 428 of 470 P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION State of Homelessness in Chula Vista The homelessness crisis is affecting nearly every community in the nation. The potential causes of homelessness are varied and further complicated by the wide range of affected people including single adults, families, single mothers with children, transitional age youth, seniors, and veterans. The complexity and diversity of its population creates significant challenges for the City of Chula Vista as it seeks ways to assist the homeless. This problem is further exacerbated for communities that lack safe sheltering options (beds) as clients navigate and attempt their transition into a more stable living situation. To properly assess the severity of the challenges, the U.S. Department of Housing and Urban Development (“HUD”) requires communities across the Nation to conduct a Point-in-Time Count (“PIT”). The PIT consists of an annual survey and enumeration of homeless individuals within each jurisdiction. This data is used to evaluate the effectiveness of the City’s efforts as well as make policy decisions and determine resources needed. The annual count is typically carried out on the third Friday of January; however, due to the COVID- 19 pandemic (“COVID”) no official count was conducted in 2020. Understanding the importance of an accurate profile in Chula Vista, the Homeless Outreach Team (“HOT”) conducted its own PIT in August 2021 (“CVCounts2021”). With accuracy as the primary goal, the operation was carefully planned and approached in sectors, with teams comprised of law enforcement, city staff and contracted outreach workers. As referenced below, the Count revealed an astonishing increase over the 2019 Point in Time Count. CVCounts2021 PIT 2019 2021 Sheltered (Emergency, Safe Haven or Transitional) 101 120 Unsheltered 212 672* Total 313 792 * This number included 350 housed in hotels/motels. Individuals with a place to sleep for the night paid for by a charitable organization or governmental agency are considered to be unsheltered, as without the assistance they likely would be on the street. Homelessness is not a crime and the law does not prevent individuals from sitting, laying or sleeping in public if no existing shelter bed is available. In Martin v. City of Boise (9th Cir. 2019) 920 F.3d 584, 603, the Ninth Circuit Court of Appeals held that the Cruel and Unusual Punishments Clause of the Eighth Amendment precludes the enforcement of a statute or ordinance prohibiting sleeping outside on public property against homeless individuals with no access to other shelter. Unfortunately, unsheltered persons frequently occupy public spaces and other places not meant for human habitation, which poses a significant threat to the health and safety of these individuals who are already vulnerable to illness, crime, malnutrition, and harmful weather exposures (such as excessive heat, excessive cold, rain, and flooding). Thus, the establishment of emergency housing is of urgent necessity for the preservation of life, health, and property. 2021/11/09 City Council Post Agenda Page 429 of 470 P a g e | 3 Sheltering Options Identifying shelter options to address the homelessness crisis has been a priority for the City for several years, including:  “Chula Vista Seven” - a project consisting of seven scattered housing units designated for extremely low- income households [0 – 30% of area median income (“AMI”)], which are now occupied by previously homeless families, whom are finding their way back to self-sufficiency.  Hotel/Motel Voucher Program - Understanding the critical need of emergency shelter beds, an alternative was created with voucher program funding, providing up to twenty-eight (28) days of a safe space for our HOT Team and clients to work together towards stabilization.  Tenant-Based Rental Assistance Program - For those requiring longer term housing assistance, HOME funds were earmarked to provide up to twenty-four (24) months of rental assistance. Not only have these programs positioned Chula Vista in the right direction but created a clear path of the future goals to develop a more permanent solution in the form of a Bridge Shelter and/or Permanent Supportive Housing. As staff explored further housing options, identifying a site became priority. Fortunately, a City-owned, vacant site located in District Four (205 27th Street) was identified as an option to accommodate a new shelter in early 2020. In March of 2020, the City of San Diego approached the City to offer a Sprung Structure, previously utilized by the Veterans Village of San Diego. At the time, the Sprung Structure was occupying a site owned by the Navy which requested to regain site-control for another use. The City of Chula Vista gladly accepted the Sprung Structure from the City of San Diego. As the acquisition of a homeless shelter was unanticipated, the City began its development efforts immediately. Being the first bridge shelter in the South Bay, the City of Chula Vista was diligent in its planning of the site development, ensuring adherence to all health and safety protocols. In conducting due diligence, external factors contributed to delays in development, including securing environmental clearance from HUD and the State of California. Furthermore, due to the site’s proximity to the Otay Valley Regional Park (“OVRP”), there were additional site use restrictions that needed to be addressed prior to initiating development. Figure 1 - Site Location Map 2021/11/09 City Council Post Agenda Page 430 of 470 P a g e | 4 During the due diligence phase, the City of Chula Vista received notification from the City of San Diego that they did not in fact own the structure and that the structure was owned by the non-profit organization, Lucky Duck Foundation. The City promptly began negotiations directly with Lucky Duck, as the rightful owner of the Sprung Structure. During those negotiations, the Lucky Duck Foundation sought to impose certain expectations and requirements that did not align with the City’s goals and current public health guidance, as follows:  Congregate Housing Capacity - While the structure capacity is for up to 250 people, the City believed that opening the doors to the maximum capacity, as the non-profit insisted, ignored the Center for Disease Control’s (CDC) guidance on social distancing, particularly as it related to congregate housing. This was of particular concern as the South Bay accounted for one of the highest rates of COVID outbreaks in the region. The City of Chula Vista considers the health and safety of its residents its first and foremost priority.  Operational Sustainability - In addition to concerns related to social distancing, the City has limited funds available for the ongoing operation of this temporary shelter. At the time that we were negotiating with Lucky Duck, staff projected our annual funding to be sufficient to support approximately 100 occupants. While this number may shift over time, it is critical that the City have discretion to adjust occupancy based upon funding availability in the future.  Punitive Monetary Damages - Lastly, the Lucky Duck Foundation insisted on including and imposing punitive monetary damages in a Construction Agreement if the structure was not operational by a certain date, regardless of unforeseen development obstacles previously discussed. Given the previously described funding limitations, any damages paid would divert funds from providing critical services to our unsheltered population. Ultimately, the Lucky Duck Foundation and the City of Chula Vista mutually agreed that the Sprung Structure would be better utilized elsewhere with fewer limitations, allowing the City to explore options that would be better suited for our community and its needs. As a result of COVID, the guidance and standards issued surrounding shelters by the CDC included moving towards a non-congregate model to prevent, prepare and respond to COVID or any other unforeseen communicable disease. In March of 2020, HUD also released a series of waivers through the CARES Act Emergency Solutions Grant and Community Development Block Grant (“CDBG”) allocations to provide flexibility in competitive procurement requirements including the acquisition of goods and services, that directly relate to providing emergency housing for individuals experiencing homelessness. This allowed the City to select the housing alternatives in the most expeditious and efficient manner. Alternative Housing Model With the shift away from a congregate housing model, the City began investigating the use of individual housing units to provide bridge shelter accommodations. In addition to the health considerations previously described, staff also found that the individual units provide a greater level of dignity than is typically found in congregate housing, as well as greater flexibility in terms of site utilization. One vendor (Pallet) immediately stood out in the terms of both cost and speed of deployment. Housing staff visited an existing shelter in Riverside County, consisting of 30 Pallet units. Interviews with Riverside County staff indicated that they were very pleased with the model, as were their clients. 2021/11/09 City Council Post Agenda Page 431 of 470 P a g e | 5 Pallet shelter villages were built at speed and scale to serve an immediate need. Each 64 sq. ft. Pallet shelter has one or two beds, locking doors, personal climate control, and storage for possessions. Figure 2 – Pallet Shelters Site Preparation and Construction Grading and leveling the current site to accommodate the new development will be the first step towards building the emergency shelter. A new driveway and gates will be installed for Fire and Emergency vehicles to allow access to enter and maneuver onsite. Complete hook-ups for electrical, water and sewer service will be installed to connect to the hygiene trailers. Initial Startup Upon completion of site preparation and with approval of this item, sixty-six (66) sleeping cabins and two (2) multi-purpose rooms will be delivered and setup to serve up to 134 individuals, allowing the City to expand to serve other populations not feasible in a congregate setting, including families and couples. Services will include sleeping quarters, accompanied by case management services and hygiene facilities, including a mobile trailer for restrooms, shower and laundry services (including Americans with Disabilities Act (ADA) compliant facilities). The hygiene facilities were previously purchased with prior year Homeless Emergency Assistance Program Funds granted through the Regional Task Force on the Homeless and are ready to be deployed. Future Operations and Services The Emergency Bridge Shelter is envisioned to serve chronic unsheltered in our community and will allow access through our HOT referral process only. A Request for Qualifications and selection for the shelter operator and property manager was released on October 25, 2021. While only one operator will be selected, the City will continue to leverage and foster existing partnerships with necessary providers. Operator responsibilities will include, but will not be limited to security, meals, laundry, hygiene, sanitation, and community engagement services. Individualized case management will also be provided in coordination with social service agencies and other community-based organizations to include assistance for employment, transportation, health and wellness care and behavioral health care. Re-housing efforts will begin upon entry into the program with the goal to successfully transition individuals into permanent supportive housing within six to twelve months. In 2020, through a series of Council Action Items, the City appropriated a combination of CDBG and Emergency Solutions Grant (“ESG”) funding received through regular grant entitlement and the CARES Act for the shelter. 2021/11/09 City Council Post Agenda Page 432 of 470 P a g e | 6 Funds Previously Appropriated Grant Amount ESG-CV1 $533,668 ESG-CV2 $3,382,534 CDBG-CV1 $730,675 CDBG-CV3 $2,047,962 CDBG-Entitlement $721,363 Total $7,416,202 By identifying and leveraging the available grant funds, the City is ensuring that it will have sufficient funding for development, including the purchase of the units, and ongoing operational costs of the shelter. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no fiscal impact to the City's General Fund as a result of this action. All costs associated with purchase of the units are covered by a previously appropriated Emergency Solutions Grant (272534). Total costs for the purchase, delivery, and installation of the units shall not exceed $740,955.15. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as a result of this action. ATTACHMENTS 1. Master Product and Services Agreement Staff Contact: Tiffany Allen, Director of Development Services Angélica Davis, Development Services Department Senior Management Analyst 2021/11/09 City Council Post Agenda Page 433 of 470 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING REQUIREMENTS AND APPROVING A MASTER PRODUCT AND SERVICES AGREEMENT WITH PALLET SPC WHEREAS, on August 18, 2021, the Chula Vista Homeless Outreach Team conducted a point in time count, CVCounts2021, which identified a total of 792 homeless persons within the City; WHEREAS, the City finds that the number of homeless is significant, and these persons are without the ability to obtain shelter and at risk of injury and harm due to exposure to the elements and other health, safety, and welfare-related circumstances and consequences associated with living outside; WHEREAS, such homeless overnight lodging in public spaces also has an adverse effect on the health and safety of the people in the City, including the homeless population; WHEREAS, the City Council affirms the City of Chula Vista’s commitment to combatting homelessness and creating or augmenting a continuum of shelter and service options for those living without shelter in our communities; WHEREAS, unauthorized homelessness encampments are increasing across the City o f Chula Vista within the public right-of-way, which are exposing homeless individuals to traffic hazards, crime, risk of death and injury, exposure to weather, lack of adequate sanitation and debris services, and other conditions that are detrimental to their health and safety; WHEREAS, analysis and evidence have demonstrated that providing decent, safe, and stable housing combined with crucial support services are two primary components of successful transition from homelessness to a safer and healthier way of living; WHEREAS, as provided by the CARES Act, recipients of CARES Act funding may deviate from the applicable procurement standards (e.g., 24 CFR 576.407(c) and (f) and 2 CFR 200.317-200.326) when procuring goods and services to prevent, prepare for, and respond to coronavirus; WHEREAS, Chula Vista Municipal code section 2.56.070.B.3 provides for an exception to the City’s competitive bidding requirements for contracts for supplies and services over $100,000 where the City’s interests would be materially better served by applying a different purchasing procedure approved by the Purchasing Agent as being consistent with good purchasing practices; 2021/11/09 City Council Post Agenda Page 434 of 470 Resolution No. 2021- Page 2 WHEREAS, due to the emergency shelter crisis and the immediate threat to public health, safety, and welfare of Chula Vista residents, City staff recommends waiving the competitive bidding requirements, as supported and authorized by Resolution 2018-199 as extended by Resolution 2021-165 establishing an Emergency Shelter Crisis Declaration, to ensure staff can implement expeditious efforts to develop shelter solutions that are safe and meet basic habitability standards and increased capacity; and WHEREAS, the Purchasing Agent has the reviewed proposed purchasing procedure and the terms and conditions of the agreement and finds them to be consistent with market rates and good purchasing practices. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the 2021 Master Product and Services Agreement, between the City and Pallet SPC, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor or the City Manager to execute same. Presented by Approved as to form by Tiffany Allen Glen R. Googins Director of Development Services City Attorney 2021/11/09 City Council Post Agenda Page 435 of 470 Pallet SPC – Master Product and Services Agreement 1 of 8 2021 MASTER PRODUCT AND SERVICES AGREEMENT STATEMENT OF WORK PROJECT Chula Vista, CA EFFECTIVE DATE: 10/26/21 CUSTOMER: City of Chula Vista (“Customer” or “Entity”) PALLET SPC (“PALLET”) Contact Name Angelica Davis Benjamin Simons Mailing Address 276 4th Ave, Chula Vista, CA 91910 PO BOX 77570 SEATTLE, WA 98177 Email Address adavis@chulavistaca.gov benjamin@palletshelter.com Telephone (619) 787-6738 (425) 595-4544 UBI/Business License No. 603 622 031 Federal Tax I.D. 8 2 - 1 5 1 6 7 2 2 PALLET BANKING INFORMATION Bank Name: Columbia Bank Account Beneficiary Name: Pallet SPC Routing No.: Account Beneficiary Address: PO Box 77570, Seattle, WA 98177 Account No.: Account Type (check one): Business Checking Personal Checking Business Savings Personal Savings Pallet hereby authorizes Customer to make direct deposits into Pallet’s bank account for the Purchase Price, Fees and Prepaid Expenses associated with these Terms. 2021/11/09 City Council Post Agenda Page 436 of 470 Pallet SPC – Master Product and Services Agreement 2 of 8 Product Purchase and Sale: Quantity and Type of Products Purchased: Purchase Price for Products: $605,476 Description of Services: Pallet shall perform the following Services for the Project identified herein: Shipping and onsite assembly of shelters and accessories in Customer’s desired location are included in the Services. Pallet assembly excludes site grading, leveling of shelters, electrical or plumbing connections, and staking of units to ground. Customer shall provide 6,000 lbs. forklift with 8 foot forks for delivery and duration of the build. Payment for Services (Fees): Assembly - $57,500 Shipping - $25,000 Tax $52,979.15 Payment Terms: 50% upon signing of this Statement of Work, and the remaining 50% upon assembly of units Total Purchase Price: $740,955.15 Deposit Due Upon Signing: $370.477.58 Subcontractors: None Terms and Conditions: This Statement of Work is subject to the Terms and Conditions attached hereto, which are incorporated herein by reference. Any and all documents, notes, memoranda or attachments made pursuant hereto are incorporated herein and made a part of this Statement of Work. PALLET PALLET SPC a Washington social purpose corporation By: Amy King, President CUSTOMER CITY OF CHULA VISTA A chartered municipal corporation By: Maria V. Kachadoorian, City Manager 2021/11/09 City Council Post Agenda Page 437 of 470 Pallet SPC – Master Product and Services Agreement 3 of 8 MASTER GOODS AND SERVICES AGREEMENT TERMS AND CONDITIONS 1. Terms and Conditions. As of the Effective Date set forth in the Statement of Work (the “SOW”), of which these Terms and Conditions are attached and incorporated into by reference (these “Terms”), Pallet hereby agrees to: (i) manufacture and sell to Customer temporary emergency shelters commonly known as “Pallet Shelters™” (the “Products”) and (ii) provide certain specialized installation services of the Products through its representatives or Subcontractors to and for the benefit of Customer (the “Services”), each as set forth in the SOW for the project site described in the SOW, and Customer shall purchase the Products and Services in accordance with these Terms. As consideration for Products delivered and Services to be rendered by Pallet under these Terms, Customer shall pay to Pallet the “Purchase Price” for the Products and all “Fees” Services. 2. Purchase Price; Fees. Payment of the purchase price for the Products (the “Purchase Price”), and the fees, costs and expenses for the purchase of the Services (collectively, the “Fees”) will be made in accordance with the applicable SOW. Pallet shall invoice the Customer for its Products delivered and Services performed on a periodic basis as set forth in the SOW. Unless otherwise stated in the SOW, all approved and agreed upon amounts invoiced to Customer shall be paid within thirty (30) days of the Customer’s receipt of the invoice. Customer shall promptly pay to Pallet any and all Fees and prepaid expenses reasonably incurred by Pallet in connection with the performance of the Services. 3. Term; Termination. The term of these Terms shall extend from the Effective Date through Customer’s approval that Pallet has completed all Services as set forth in the SOW (the “Term”), subject to the following termination provisions. Pallet or Customer may terminate the SOW and these Terms, in whole or in part, for “Cause” upon ten (10) days prior written notice to the other party. For purposes of these Terms, “Cause” includes, but is not limited to, any of the following: (a) a material breach of these Terms or SOW, including, without limitation, any non-payment of the Purchase Price, or any Fees or Prepaid Expenses when due; provided that Pallet has first provided written notice to Customer of said non-payment and provided Customer a reasonable opportunity to cure said non-payment; (b) violation by Pallet or Customer of any applicable federal, state and local laws, rules, order and regulations (collectively, “Laws”); or (c) if Pallet or Customer is voluntarily or involuntarily dissolved, or is adjudged to be Bankrupt or is subject to a general assignment for the benefit of its creditors, or if a receiver should be appointed on account of Pallet’s or Customer’s insolvency. For the purpose of this Section, “Bankrupt” shall mean the filing of a voluntary or involuntary petition of bankruptcy or similar relief from creditors, insolvency, the appointment of a trustee or receiver, or any similar occurrence reasonably indicating an imminent inability to perform substantially all of the Pallet’s or Customer’s duties under these Terms. Upon any early termination of these Terms or otherwise, the parties shall meet-and-confer to determine the Purchase Price remaining unpaid (if any), and all Fees incurred to date (if any), and any amounts still owed to Pallet or amounts needed to be refunded to Customer. Any further amounts owed or to be refunded shall be paid within thirty (30) days after such amounts have been determined by the parties. 4. Products; Shipment of Products. (a) Purchase of Products. As consideration for the sale of the Products and performance of the Services, the Customer shall pay to Pallet the total Purchase Price as set forth on the SOW. The Purchase Price is exclusive of any sales, use or privilege tax, personal property taxes, excise tax based on gross revenue or any similar tax or charge that might be levied as a result of the production, sale or shipment of any Products or the use of the Products by Customer (the “Taxes”). Customer agrees to pay and otherwise be fully responsible for any and all such Taxes (except any taxes based on the net income of Pallet). (b) Shipment of Products. The Products shall be delivered to the Customer at the location as set forth in the SOW by not later than December 31, 2021 (“Delivery Date”). Notwithstanding the foregoing, Pallet will notify the Customer of any delays that may affect the expected delivery date of the Products. If Pallet notifies Customer in accordance with these Terms, Pallet shall be afforded at least ten (10) additional days to deliver the Products. Unless otherwise set forth in the SOW, Pallet shall be responsible for arrangin g for and coordinating the shipment of the Products to the Customer. If Pallet fails to deliver Products in full by the Delivery Date, Customer may terminate this Agreement in accordance with Section 3 of these Terms. (c) Delivery; Risk of Loss. All Products will be prefabricated at Pallet’s factory headquarters and shipped flat-packed in individual panels to the designated Project site. Pallet will not “drop ship” to any other location other than Project site. Unless otherwise instructed in writing by Customer, Pallet will have the sole and exclusive right to select the carrier for the shipment and delivery of the Products. Pallet may deliver the Products in installments. If any shipment of Products is delayed at Customer's request, Pallet may invoice the Customer for such Products, and risk of loss to such products shall pass to Customer on the date Pallet is prepared to make shipment to the Customer. (d) Inspection; No Refunds. Pallet agrees to notify Customer in writing upon delivery of the Products to the Project site. Upon receipt of the Products, Customer shall inspect all Products promptly upon receipt thereof at the Project site and may reject any Products in accordance with this Section 4(d) which fail in any significant, material respect to meet Pallet’s current acceptance specifications. Unless a written claim (a “Rejection Notice”) that a Product is defective or the delivery is incomplete is made and delivered to the Pallet within thirty (30) days from the date of delivery of the Products, the Customer agrees that it shall have accepted the Products as-delivered, as-is and with all faults and defects. Such Rejection Notice must provide adequate notice of the basis for the rejection which may, but not need, to include: (i) the total amount of Products that are alleged to be defective or undelivered; or (ii) the specific details of the alleged defects, 2021/11/09 City Council Post Agenda Page 438 of 470 Pallet SPC – Master Product and Services Agreement 4 of 8 including specific defective parts or parts undelivered. As promptly as possible, but not later than ten (10) days after receipt by Pallet of Customer’s Rejection Notice, Pallet shall, at its option and expense, notify Customer whether it agrees with or disputes Customer’s Rejection Notice and if it agrees with Customer’s Rejection Notice how it intends to remedy the defective or incomplete delivery. 5. Limited Warranty of Pallet. In addition to all other warranties provided herein, Pallet agrees to warrant all Products in accordance with the terms of its standard limited warranty (the “Limited Warranty”) for each Product, as modified by Pallet from time-to-time in Pallet's sole and exclusive discretion. Pallet’s current form of Limited Warranty can be found here: www.palletshelter.com/warranty. In the event the Products fail to comply with Pallet’s Limited Warranty and Customer timely reports such failure in accordance with these Terms. 6. Customer’s Duties. Customer shall cooperate in good faith with Pallet in its delivery of the Products and performance of the Services, and provide to Pallet true, complete and correct copies of all reasonably requested documentation or information re asonably necessary, desirable or required by Pallet in connection with the delivery of the Products and performance of the Services. Additionally, the Customer shall cooperate in good faith with Pallet to provide Pallet with reasonable access to any Customer facilities, offic ers, directors, employees, contractors, partners, joint venturers or affiliates as reasonably necessary, desirable or required by Pallet in connection wit h the performance of the Services. Customer represents and warrants that the individual executing the SOW on its behalf has all necessary, legal and requisite power and authority to execute, deliver the SOW and perform these Terms on behalf of the Customer, and all other agreements and instruments to be executed and delivered in connection with these Terms. While Pallet will provide the Products and Services set forth herein, Customer shall be responsible and liable for: (i) ensuring that all transactions, documents and operations in connection with these Terms, including, without limitation, all operations at the Project site, are in compliance with all applicable Laws; (ii) procuring all applicable permits, certifications, licenses and approvals necessary under all applicable Laws for the delivery of all Products and performance of all Services; and (iii) maintaining the Products and the safety of the Product’s users and the Project site after the completion of the Services, except to the extent such maintenance is required under Pallet’s Limited Warranty. 7. Subcontractors. Subject to the terms and conditions of these Terms and obtaining the prior written consent of Customer, Pallet may assign its rights, duties or obligations under these Terms to its partners, joint venturers, contractors, agents and subcontractors (collectively, “Subcontractors”) with respect to the performance of Services only, on a per Project basis, subject to the limitation set forth in these Terms and any SOW. Pallet shall deliver to Customer written notice of the terms of any proposed subcontractor agreement with any Subcontractors, including the proposed Subcontractor’s identity. In the event of the termination or expiration of these Terms, all subcontract rights will terminate effective as of the termination or expiration of these Terms. 8. Relationship of the Parties; Independent Contractor. These Terms are intended to create an independent contractor relationship between the Parties. Nothing contained herein shall be construed to: (i) give either Party the power to direct or control th e day-to-day activities of the other; (ii) constitute the Parties as partners, joint venturers, co-owners or otherwise as participants in a joint or common undertaking; or (iii) allow either Party to create or assume any obligation on behalf of the other Party for any purpose whatsoever, including, without limitation, representations, contractual obligations, or obligations based on warranties or guarantees. Pallet shall have and retain sole and exclusive control over the time, place and manner in which it performs the Services. 9. Indemnification; Indemnification Procedure; Insurance. (a) Indemnification. Pallet shall indemnify, defend, and hold Customer, and its officers, directors, owners, employees, affiliates, subsidiaries, subcontractors, successors and assigns (collectively, the “Customer Parties”) harmless from and against all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder (collectively, “Losses”) arising out of or resulting from any third party claim, suit, investigation, action, or other proceeding (each, an “Action”) related to or arising out of or resulting from: (i) Pallet’s breach of any representation, warranty, covenant, or obligation under these Terms or any SOW; (ii) any negligence, willful misconduct, violation of Law or any acts, errors or omissions of Pallet or any of Pallet’s employees, officials, officers, agents or contractors (collectively, “Pallet Parties”), including, without limitation any errors, acts or omissions in violation of these Terms, or any applicable Law; (iii) the manufacture or delivery of the Products; or (iv) the performance of the Services, the results of such performance, or this Agreement; provided, that the above indemnification obligations shall not require Pallet to indemnify any Customer Party for Customer’s sole negligence or willful misconduct. (b) Indemnification Procedure. The Party seeking indemnification (the “Indemnified Party”) shall promptly notify the other Party (the “Indemnifying Party”) in writing of any Action and cooperate with the Indemnified Party at the Indemnifying Party’s sole cost and expense. The Indemnifying Party shall immediately take control of the defense and investigation of the Action and shall employ counsel reasonably acceptable to the Indemnified Party to handle and defend the Action, at the Indemnifying Party’s sole cost and expense. The Indemnifying Party shall not settle any Action in a manner that adversely affects the rights of the Indemnified Party without the Indemnified Party’s prior written consent, which consent may not be unreasonably withheld or delayed. The Indemnified Party’s failure to perform any obligations under this Section 9(b) will not relieve the Indemnifying Party of its obligation under this Section except to the extent the Indemnifying Party can demonstrate that it has been materially prejudiced as a result of the failure. The Indemnified Party may participate in and observe the proceedings at its own cost and expense with counsel of its own choosing. 2021/11/09 City Council Post Agenda Page 439 of 470 Pallet SPC – Master Product and Services Agreement 5 of 8 (c) Obligations Not Limited or Modified. Pallet’s obligations under this Section 9 shall not be limited to insurance proceeds, if any, received by any Indemnified Party, or by any prior or subsequent declaration by the Pallet. Furthermore, Pallet’s obligations under this Section 9 shall in no way limit, modify, or excuse any of Pallet’s other obligations or duties under the SOW or these Terms. (d) Insurance. Pallet must procure and maintain, for the Term, and for twelve months after the Term, the policies of insurance described on the attached Exhibit A, which is incorporated into the Agreement by this reference (the “Required Insurance”). 10. Limitation of Liability. Intentionally Omitted. 11. Miscellaneous. (a) Entire Agreement; Conflicts. These Terms and the SOW attached hereto, collectively represent the full, final and comprehensive agreement and understanding of the Parties and any modification thereof shall not be effective unless contained in writing and signed by both Parties (the “Agreement”). Any prior or contemporaneous agreements, whether oral or written, relating to the subject matter discussed herein have been merged into these Terms. In the event of any conflict between the terms and provisions of these Terms and those of any SOW or other document, the following order of precedence will govern: (a) first, these Terms, excluding the SOW; (b) the SOW; and (c) third, any other documents incorporated herein or in the SOW by reference. (b) Severability. Each provision of these Terms shall be considered severable such that if any one provision or clause conflicts with existing or future applicable law, or may not be given full effect because of such law, this shall not affect any other provision of these Terms that can be given effect without the conflicting provision of clause; provided however, that such provision shall be modified, to the minimum extent possible and necessary, to be enforceable to the fullest extent and in compliance with any such applicable laws, prior to it being severed from these Terms in its entirety. (c) No Right to Assign; Third-Party Beneficiaries. Customer may not assign these Terms without the prior written consent of Pallet. These Terms are for the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit, or remedy of any natur e whatsoever, under or by reason of these Terms. (d) Governing Law; Venue; Arbitration; Equitable Relief. (i) Governing Law; Venue. These Terms shall be governed by and construed in accordance with the domestic laws of the state of California without giving effect to any choice of law or conflict of laws provision or rule (of any other jurisdiction. In the event of any litigation between the Parties hereto arising out of these Terms, the prevailing Party shall be allowed all reasonable attorneys’ fees, court costs and expenses incurred in such litigation, including all such expenses incurred on appeal, together with all reasonable costs and disbursements necessary to enforce these Terms. (iii) Equitable Relief. Each Party acknowledges that a material breach by the other Party of these Terms may cause the non-breaching Party irreparable harm, for which an award of damages would not be adequate compensation and, in the event of such a material breach or threatened breach, the non-breaching Party will be entitled to seek equitable relief, including in the form of a restraining order, orders for preliminary or permanent injunction, specific performance, and any other relief that may be available from any court, and the Parties hereby waive any requirement for the securing or posting of any bond or the showing of actual monetary damages in connection with such relief. These remedies are not exclusive but are in addition to all other remedies available under these Terms at law or in equity, subject to any express exclusions or limitations in these Terms to the contrary. (e) Survival. The provisions of Sections 2, 3, 6, 8, and 9-11 shall survive the termination or expiration of these Terms. (f) Notices. Any notice required or permitted by these Terms shall be in writing and delivered in person, sent by documented overnight delivery service, mailed by certified or registered mail, postage prepaid, or sent via email to the appropriate des ignated address of the intended recipient, transmission verification required, to the appropriate Party or Parties at the addresses referenced in the applicable SOW, or to such other address as the Parties may hereafter designate to the other in writing. (g) Force Majeure. A Party (referred to in this Section as a “Force Majeure Party”) shall be excused from the performance of its applicable obligation(s) under these Terms to the extent that such performance is made commercially impracticable, illegal, or impossible by an event of Force Majeure that is beyond the Force Majeure Party’s reasonable control, and the Force Majeure Party provides written notice of the prevention within ten (10) business days of the occurrence of the Force Majeure event to the other Part y (including details of the Force Majeure event, its anticipated duration and any action being taken to avoid or minimize its effect) and uses commercially reasonable efforts to avoid the effects of such Force Majeure and to perform the affected obligation(s) to the extent reasonably possible. Such excuse of performance shall be continued for so long as the condition constituting Force Majeure continues and the Force Majeure Party takes reasonable efforts to remove the condition or otherwise perform the affected obligation(s). For purposes of these Terms, “Force Majeure” shall mean only acts of God, strikes, civil disturbances, fires, earthquakes, governmental order or proclamation, outbreak or pandemic, supply chain interruption (to the extent such interruption is not caused by the negligence of such Party), acts of terrorism, floods, 2021/11/09 City Council Post Agenda Page 440 of 470 Pallet SPC – Master Product and Services Agreement 6 of 8 explosions, riots, war, rebellion, sabotage or failure or default of public utilities or common carriers. For clarity, notwithstanding the existence of a Force Majeure impacting a Party’s performance hereunder, such Force Majeure Party shall continue performing all of its other obligations hereunder, and the other Party shall be excused from performing such of its obligations under these Terms that it cannot reasonably perform due to the non-performance by the Force Majeure Party due to such Force Majeure, until such Force Majeure Party completes performance of such obligations that are prevented by such Force Majeure. (h) Construction. The Parties hereby reaffirm that each has read the foregoing Terms, that each Party has had the opportunity to review, negotiate and participate in the creation of these Terms through independent counsel. The provisions contained herein shall not be construed or interpreted for or against any Party hereto because that Party drafted or caused that Party’s legal representati ve to draft any of its provisions. (i) Business License. Prior to commencement of work, Pallet shall obtain a business license from City. (j) Compliance with Laws. In its manufacture and delivery of the Products, and in its performance of the Services, Pallet shall use its commercially reasonable, good faith efforts to comply with any and all applicable federal, state and local laws, including all prevailing wage laws, as applicable. (k) Administrative Claims 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 be amended, the provisions of which, in cluding such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Pallet shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 2021/11/09 City Council Post Agenda Page 441 of 470 Pallet SPC – Master Product and Services Agreement 7 of 8 EXHIBIT A REQUIRED INSURANCE Pallet shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Products and Services hereunder and the results of that work by Pallet, its agents, representatives, employees or subcontractors. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Pallet has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. 4. Professional Liability (Errors and Omissions): Insurance appropriates to Pallet’s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate. (If applicable – see footnote next page) If Pallet maintains higher limits than the minimums shown above, the Entity requires and shall be entitled to coverage for the higher limits maintained by Pallet. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions: Additional Insured Status The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Pallet including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to Pallet’s insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10 and CG 20 37 if a later edition is used). Specifically, endorsement must not exclude Products / Completed Operations. Primary Coverage For any claims related to this contract, Pallet’s insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of Pallet’s insurance and shall not contribute with it. 2021/11/09 City Council Post Agenda Page 442 of 470 Pallet SPC – Master Product and Services Agreement 8 of 8 Notice of Cancellation Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Entity. Waiver of Subrogation Pallet hereby grants to Entity a waiver of any right to subrogation which any insurer of said Pallet may acquire against the Entity by virtue of the payment of any loss under such insurance. Pallet agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the Entity. The Entity may require Pallet to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity. Claims Made Policies If any of the required policies provide claims-made coverage: 1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. 2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, Pallet must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work. Verification of Coverage Pallet shall furnish the Entity with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Entity before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive Pallet’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 2021/11/09 City Council Post Agenda Page 443 of 470 CHULA VISTA CITY COUNCIL PRESENTATION November 9, 2019 ITEM 9.4 –HOMELESS BRIDGE SHELTER 2021/11/09 City Council Post Agenda Page 444 of 470 •State of the Unsheltered •City Efforts ITEM TOPICS 2021/11/09 City Council Post Agenda Page 445 of 470 STATE OF THE UNSHELTERED 2021/11/09 City Council Post Agenda Page 446 of 470 Point-in-Time Count –CVCounts21 2021/11/09 City Council Post Agenda Page 447 of 470 Sheltered Unsheltered Total 120 672 792 50% Women 23% Children 8% Veterans 55% 1st Time Homeless Unsheltered in our Community: BY THE NUMBERS 2020 Total = 313 2021/11/09 City Council Post Agenda Page 448 of 470 Family-Related Issues Cost of LivingMental Health Job Loss Medical Problem Substance Abuse Unsheltered in our Community: CAUSES 2021/11/09 City Council Post Agenda Page 449 of 470 RESOURCES AND EFFORTS TO ADDRESS HOMELESSNESS 2021/11/09 City Council Post Agenda Page 450 of 470 Interfaith Shelter Network Resources: PARTNERS Police Department Code Enforcement |Housing Public Works |Parks & Rec. 2021/11/09 City Council Post Agenda Page 451 of 470 Outreach Case Management Transitional Housing Permanent Housing Resources: PROGRAMS AND SERVICES 2021/11/09 City Council Post Agenda Page 452 of 470 Resources: PROGRAMS Take Back the Streets &Work for Hope Programs Over 1Million Lbs. Of Trash Collected 76 restrooms 69 gazebos 39 picnic areas2021/11/09 City Council Post Agenda Page 453 of 470 “I went from the Work for Hope program to now working my dream job!! I am a Certified SUD Peer Support Specialist. “I am an addict, I am a mother, I am a sister, I am a peer, but I also am a human” I just needed hope to feel alive again.” Nanieces’ Story Move-In day for Naniece2021/11/09 City Council Post Agenda Page 454 of 470 Resources: SERVICES Vaccines Reunification Client-Centered ApproachOutreach2021/11/09 City Council Post Agenda Page 455 of 470 Grant Amount ESG-CV1 $533,668 ESG-CV2 $3,382,534 CDBG-CV1 $730,675 CDBG-CV3 $2,047,962 CDBG-Entitlement $721,363 Total $7,416,202 Resources: FUNDING (FY21) 2021/11/09 City Council Post Agenda Page 456 of 470 HOMELESS BRIDGE SHELTER 2021/11/09 City Council Post Agenda Page 457 of 470 PROJECT SITE: 205 27th Street 2021/11/09 City Council Post Agenda Page 458 of 470 PROJECT SITE PLAN FAIVRE STREET 27THSTREET2021/11/09 City Council Post Agenda Page 459 of 470 63 Units 3 Units Housing Type: PALLET SHELTER 2021/11/09 City Council Post Agenda Page 460 of 470 Housing Type: PALLET SHELTER 2021/11/09 City Council Post Agenda Page 461 of 470 Housing Type: PALLET SHELTER 2021/11/09 City Council Post Agenda Page 462 of 470 Operator: REQUEST FOR PROPOSALS RFP Released Oct 25, 2021 RFPs Due Nov 19, 2021 Panel Review Dec 2021 Interviews Dec 2021 Housing Advisory Commission Jan 2022 Contract Award Jan/Feb 2022 2021/11/09 City Council Post Agenda Page 463 of 470 TIMELINE -- OPERATOR RFQ CONTRACT SHELTER DEVELOPMEN T COMMUNITY ENGAGEMEN T SHELTER OPENING JANUARY DEC –MARCH ONGOING SPRING 2022 2021/11/09 City Council Post Agenda Page 464 of 470 QUESTIONS and COMMENTS ITEM 9.4 –HOMELESS BRIDGE SHELTER 2021/11/09 City Council Post Agenda Page 465 of 470 Council Information Items November 4, 2021 2021/11/09 City Council Post Agenda Page 466 of 470 Date: November 4, 2021 To: Honorable Mayor and City Council From: Maria V. Kachadoorian, City Manager Subject: City of Chula Vista’s Support of Community Through Hope In the last few years, the City of Chula Vista has seen a dramatic increase in the number of unsheltered individuals and families in our community. The City’s Five-Year Consolidated Plan identified addressing homelessness as a top funding priority. By leveraging resources and partnering with local social service agencies, the City has worked to address the challenges facing unsheltered individuals. In 2016, the City established a Homeless Outreach Team (HOT team) to promote a positive and healthy quality of life in the City by balancing the needs of residents, businesses, and the unsheltered. In support of the outreach efforts of the HOT team, the City has funded and partnered with several agencies including the County of San Diego’s Health and Human Services Department, San Diego District Attorney’s Office, and several local social service organizations whose mission and services align with the City’s approach to meeting the needs of our unsheltered population. By partnering with agencies including SBCS, Interfaith Shelter Network, Chula Vista Community Collaborative and Community Through Hope, the City has been able to offer a variety of services including shelter, food, and emergency related items (i.e., clothes, hygiene kits). Funding to support these local organizations, such as Community Through Hope, was made possible utilizing a combination of funds including General Funds, Federal and State grant funds (e.g., Community Development Block Grants). The amount of funding each year is determined by availability, program need and eligibility of the agency and activity. Unfortunately, over the past several months there have been a number of inaccurate public statements made by leaders of the Community Through Hope organization regarding City support for these programs. This information item is to provide a summary of facts for the public record and to discuss steps the City is taking to move forward in our efforts to support the mission of serving those in our community in need of shelter and food. The following is an outline of funding and support the City has provided to Community Through Hope from 2018 to 2021. • In 2018, the City of Chula Vista provided Community Through Hope (CTH) with start-up funding and in-kind services to launch their homeless outreach and food pantry program. The City assisted CTH with its move to the 465 C Street location (former Entenmann's building) in Chula Vista. 2021/11/09 City Council Post Agenda Page 467 of 470 • The City agreed to provide start-up funding to CTH of $30,000/year and entered into a one-year agreement with options for two, one-year extensions (for a total of three years). The scope of services for the $30,000 annual payment included CTH staff working collaboratively with the HOT team, providing office and storage space for the HOT team, and providing case management and outreach services for unsheltered individuals. • By the end of the first year, CTH collaboration with the HOT team had ended. CTH asked the HOT team to return their access key and changed the access code to the facility. The HOT team no longer had access to the building/storage and CTH staff were not providing case management or homeless outreach services. The City was informed the focus of CTH was shifting to food distribution and away from homeless outreach services. • In 2019, CTH applied for and received $15,000 in CDBG (Community Development Block Grant) funds from the City of Chula Vista. The City receives an annual allotment of CDBG funds from the U.S. Department of Housing and Urban Development (HUD). The CTH application was submitted under the Homeless Services category. Shortly after the grant award, City staff were informed that CTH was not providing homeless services but rather food distribution to the general population. This changed the services scope of the agreement and required specific additional reporting to the City and HUD. Without proper data collection and reporting, the program implemented by CTH was no longer eligible for CDBG funding. Payments in the amount of $3,750 were awarded for the first two quarters. CTH submitted the required reporting data for that time period and then chose to end the agreement related to the CDBG grant award due to the data collection and reporting requirements. • During the COVID-19 pandemic shut down, the Chula Vista Police Department (CVPD) assisted with traffic control for food distribution events (occurring up to three times a week). In total during FY 2021 (July 2020 – June 2021), the City spent approximately $279,143 in supporting food distribution traffic control efforts. Of this amount, $135,843 was for the support provided to CTH alone. The distribution event operated by CTH was creating significant traffic issues during COVID. The Police Department was able to provide traffic support during those challenging times by reallocating School Resource Officers that were no longer needed at closed school campuses to the food distribution sites. • In August of 2020, City Council adopted State and County Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund (CRF) allocations. These allocations included $30,000 to CTH to provide food distribution. This allocation was intended to serve as the City’s final payment under its 3-year contract with CTH. The initial recommendation was to use the CARES funding in lieu of the General Fund for the final payment but this was causing some confusion for CTH. Therefore, in order to avoid confusion, the final payment to CTH was funded out of the General Fund. The $30,000 allocation of CARES funds plus an additional $105,843 for a total of $135,843 was used to offset the cost of providing traffic control services to CTH as discussed in the previous bullet point. • In April of 2021, the Chula Vista Fire Department (CVFD) provided resources to distribute COVID-19 vaccinations to the homeless community during Community Through Hope event dubbed Project ReFresh. CVFD donated CTH 10 cases (10,000) gloves to support various PPE needs as well as 720 bottles of hand 2021/11/09 City Council Post Agenda Page 468 of 470 sanitizer. Additionally, in 2020, the City of Chula Vista coordinated with the County of San Diego to locate a portable restroom and hand washing station at CTH headquarters during the California Stay-at-Home Order. Through these various funding mechanisms and arrangements, the City has paid CTH the full amount agreed to in its three-year contract with CTH. In fact, the City has gone above and beyond this original commitment with additional support as described in the table below. To be clear, no outstanding payments are due to CTH. The City informed CTH on several occasions that the $30,000 in funding for three years was seed money for CTH to provide services to the Chula Vista and South Bay community with the goal to assist CTH in establishing itself as a self-supporting operation. The City has a fiduciary responsibility to ensure that all Federal, State and Local funds granted are utilized for their intended purposes and are administered in a manner that adheres to all applicable regulations and conditions of the grant. These requirements are passed on to all organizations that receive funding to provide services on behalf of the City. Failure to comply with programmatic or fiscal requirements, jeopardizes the City’s ability to continue receiving funds from granting agencies. Community organizations play a vital role in every community and offer critical services to some of our most vulnerable populations. The City will continue to work with CTH and other non-profits to collaborate and provide in-kind services, such as vaccinations, and support for food distribution efforts when possible. The City continues to notify CTH and other non-profits of grant application opportunities. It is the responsibility of the individual agencies to seek the grants and if awarded, comply with the reporting and contractual requirements. Fiscal Year Funding Source Description Total Amount 2021 General Fund - Admin Contract Pmt 2,500.00$ 2021 General Fund - Dev Svcs Contract Pmt 27,500.00$ 2020 General Fund - Dev Svcs Contract Pmt 30,000.00$ 2020 General Fund - Police Contract Pmt 7,500.00$ 2019 General Fund - Police Contract Pmt 22,500.00$ Total Contract Pmts 90,000.00$ 2020 General Fund - Admin Assist with Shower Transport Cost 2,841.00$ 2019 General Fund - Police Outreach Activities 2,000.00$ 2019 General Fund - Police Outreach Activities 5,000.00$ Total Additional Support Pmts 9,841.00$ 2020 Federal - CDBG *Homeless Support Svcs 3,750.00$ 2021 CARES Funds Police Traffic Control Svcs.135,843.00$ 2021 In-Kind - Face Value Concert Tickets for Raffle 780.00$ Total City Support to Community Through Hope 240,214.00$ * CDBG Funds granted for $15,000. CTH chose not to continue with grant. City of Chula Vista - Support to Community Through Hope 2021/11/09 City Council Post Agenda Page 469 of 470 I would like to thank our various Departments who continue to work supporting the various agencies in our community. I would particularly like to thank our Housing staff, a small but mighty group, in managing the various programs that make a difference in people’s lives every day. There is more work to be done and we are looking forward to taking the next step with the opening of the long-awaited bridge shelter. Staff is also preparing to return to the City Council on November 16 with an item allocating American Rescue Plan Act (ARPA) funds to the San Diego Food Bank. On October 12, the Food Bank presented the significant need that exists in our community regarding food insecurities. The Food Bank works with over 35 non-profits in the City of Chula Vista. By working through the Food Bank, all the local non-profits who perform food distribution services in our community will be able to benefit from the allocation. We are looking forward to returning with this request in time for the Holiday season. If you have any questions, please contact me at CityManager@chulavistaca.gov. 2021/11/09 City Council Post Agenda Page 470 of 470