HomeMy WebLinkAbout2024/05/28 Post Agenda Packet
Date:Tuesday, May 28, 2024, 5:00 p.m.
Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA
REGULAR CITY COUNCIL MEETING
Watch live in English and Spanish: chulavistaca.gov/councilmeetings or Cox Ch. 24 (English only).
Free Spanish interpretation is available on-site.
_______________________________________________________________________________________
In-Person Public Comments: Submit a request to speak to City Clerk staff before the close of the public
comment period on an item or before the close of the general Public Comment period for non-agenda items.
Electronic Public Comments: At chulavistaca.gov/councilmeetings, locate the meeting and click the comment
bubble icon. Select the item and click "Leave Comment." You may also email cityclerk@chulavistaca.gov.
eComments, emails, and other written comments must be received by noon for a regular City Council
meeting.
Watch Live or Recorded (English and Spanish): Visit chulavistaca.gov/councilmeetings. Click "ES" at the
bottom to switch to Spanish. Closed captioning is available in both languages.
Accessibility: In compliance with the American Disabilities Act, if you need special assistance to participate in
this meeting, please contact the City Clerk’s Office at cityclerk@chulavistaca.gov or (619) 691-5041. Providing
at least 48 hours' notice will help ensure that reasonable arrangements can be made.
Gov. Code § 84308: Parties to any proceeding involving a license, permit, or other entitlement for use pending
before the City Council must disclose any campaign contribution over $250 (aggregated) within the preceding
12 months made by the party, their agent, and those required to be aggregated with their contributions under
Gov. Code § 82015.5. The disclosure must include the amount contributed and the name(s) of the
contributor(s). "G.C. § 84308: Yes" on this agenda indicates that the item is subject to these regulations.
PUBLIC PARTICIPATION
Complete Agenda Packet: The complete agenda packet, including staff reports, draft resolutions and
ordinances, and other backup materials, is available at chulavistaca.gov/councilmeetings or the City Clerk's
Office.
Time Allotted for Speaking (subject to change by the presiding officer)
- Consent Calendar (any or all items): 3 minutes
- Agenda Items (not on Consent): 3 minutes
- General Public Comment (not on agenda): 3 minutes
Individuals who use a translator will be allotted twice the time.
General Public Comments: Twenty-one (21) minutes are scheduled near the beginning of the meeting. The
first seven (7) speakers will be heard during the first Public Comment period. If there are additional speakers
registered, they will be heard during the continued Public Comment period. If all registered speakers present
at the time address the City Council during the first Public Comment period, there will be no continued Public
Comment period.
Submitting Request to Speak: A request to speak must be submitted to the City Clerk before the close of the
public comment period on an item or before the close of the general Public Comment period for non-agenda
items.
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. Before the vote, there is no separate discussion of
these items unless a member of the City Council or staff removes the item from the Consent Calendar.
Public Comment provides an opportunity to address the City Council on any matter not listed on the agenda
that is within the jurisdiction of the City Council. Under the Brown Act, the City Council cannot take action on
matters not listed on the agenda.
Public Hearings are held on matters specifically required by law.
Action Items are items expected to cause discussion and/or action by the City Council but do not legally
require a public hearing.
Closed Session may only be attended by members of the City Council, support staff, legal counsel, and others
as specified on the agenda. Closed session may be held only in very limited circumstances as authorized by
law.
CITY COUNCIL ACTIONS:
Resolutions are formal expressions of opinion or intention of the City Council and are usually effective
immediately.
Ordinances are laws adopted by the City Council. Ordinances usually amend, repeal, or supplement the
Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances
require two hearings and 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.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 2 of 570
Pages
1.CALL TO ORDER
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
4.SPECIAL ORDERS OF THE DAY
4.1 Presentation of a Proclamation to Gerardo Becerra Proclaiming May 2024 as
Lupus Awareness Month in the City of Chula Vista
4.2 Presentation by Emergency Services Manager Marlon King on the Genasys
PROTECT Emergency Notification and Information Tool
11
4.3 Presentation of a Proclamation Proclaiming the Week of May 19 through May 25,
2024, as National Public Works Week in the City of Chula Vista
5.CONSENT CALENDAR (Items 5.1 through 5.8)
Consent calendar items are considered together and acted upon by one motion. There is
no separate discussion of these items unless a member of the City Council or staff
removes the item from the Consent Calendar.
RECOMMENDED ACTION:
City Council approve the recommended action on the below consent calendar items.
5.1 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.
5.2 Housing Policy: Amend Chula Vista Municipal Code Title 19 and Chapter 17 to
Assist in the Creation of Affordable Housing
20
Report Number: 24-0021
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines;
therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 3 of 570
RECOMMENDED ACTION:
Adopt ordinance A) amending various sections and adding sections to Chula
Vista Municipal Code Title 19 related to density bonuses, inclusionary housing,
multi-family and mixed-use objective design standards, residential for-sale
affordable unit requirements, and marketing, application, lottery, and waitlist
requirements for affordable rental housing projects (Second Reading and
Adoption); and ordinance B) amending Chula Vista Municipal Code Chapter
17.10 to exempt 100% affordable projects from such fees. (Second Reading and
Adoption)
5.3 Annual Budget: Amend the Chula Vista Municipal Code to Delete Certain
Unclassified Position Titles, as Related to the Adoption of the Fiscal Year 2024-
25 Budget
105
Report Number: 24-0087
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
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 an ordinance amending Chula Vista Municipal Code Section 2.05.010 to
delete certain unclassified position titles that are specifically delineated in the City
Charter and to delete certain position titles that are no longer active. (Second
Reading and Adoption) (4/5 Vote Required)
5.4 Agreement: Waive Competitive Bidding Requirements and Approve an
Agreement with Springbrook Holding Company, LLC to Provide an Upgrade to
Cloud Service of the Sewer Billing System
115
Report Number: 24-0175
Location: No specific geographic location
Department: Finance
G.C. § 84308: Yes
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 waiving the competitive bidding requirements and approving
an agreement with Springbrook Holding Company, LLC to provide an upgrade to
cloud service of the sewer billing system.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 4 of 570
5.5 Public Arts Grant Award Recommendations: Accept the Performing and Visual
Arts Grant Review Panel’s Award Recommendations for Fiscal Year 2023-24
165
Report Number: 24-0137
Location: No specific geographic location
Department: Library
G.C. § 84308: No
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 the Performing and Visual Arts Grant Review
Panel’s award recommendations for Fiscal Year 2023-24 with a total monetary
grant award totaling $78,300.
5.6 Lease Agreement: Approve an Agreement Extending and Amending the Lease of
Space at the Otay Ranch Town Center for the Otay Ranch Branch Library Hub
172
Report Number: 24-0176
Location: Otay Ranch Town Center 2015 Birch Rd. Suite 407
Department: Library
G.C. § 84308: Yes
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant
to California Environmental Quality Act State Guidelines Section 15301 Class 1
(Existing Facilities).
RECOMMENDED ACTION:
Adopt a resolution approving a lease agreement with GGP-Otay Ranch, L.P. for
the Otay Ranch Branch Library Hub.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 5 of 570
5.7 Community Facilities District Annexation: Initiate Annexation of Otay Ranch
Village 8 East into CFD No. 97-2
178
Report Number: 24-0141
Location: Located generally adjacent to State Route 125, south of Main Street,
and north of the Otay River, as shown more particularly on the annexation map
Department: Development Services
G.C. § 84308: Yes
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
RECOMMENDED ACTION:
Adopt resolutions A) Setting forth the boundaries of the proposed Annexation No.
13 into Community Facility District (“CFD”) No. 97-2, Improvement Area “C” and
B) Declaring the intention of the City Council to authorize the proposed
Annexation No. 13 into Improvement Area “C” of CFD No. 97-2, levy a Special
Tax, and set a time and place for the public hearing.
5.8 Ratification of Appointment: City Manager’s Appointment of Deputy City
Manager/Director of Public Works – Matthew Little
211
Report Number: 24-0162
Location: No specific geographic location
Department: Human Resources
G.C. § 84308: No
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 ratifying the City Manager’s appointment of Matthew Little as
Deputy City Manager/Director of Public Works.
6.PUBLIC COMMENTS 218
Twenty-one minutes are scheduled for the public to address the City Council for three
minutes each on any matter within the jurisdiction of the City Council that is not on the
agenda. The remaining speakers, if any, will be heard during the continued Public
Comment period.
7.PUBLIC HEARINGS
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 6 of 570
7.1 Sewer Service: Assess Delinquent Sewer Service Charges as Recorded Liens
Upon the Respective Parcels of Land and Place Delinquent Charges on the Next
Regular Property Tax Bill for Collection by the County Treasurer-Tax Collector
234
Report Number: 24-0153
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
RECOMMENDED ACTION:
Conduct the public hearing and adopt a resolution assessing certain delinquent
sewer service charges as recorded liens upon the respective parcels of land and
placement of delinquent charges on the next regular tax bill for collection by the
County Treasurer-Tax Collector.
7.2 Solid Waste Service: Assess Delinquent Solid Waste Service Charges as
Recorded Liens Upon Respective Parcels of Land and Place Delinquent Charges
on the Next Regular Property Tax Bill for Collection by the County Treasurer-Tax
Collector
268
Report Number: 24-0154
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
RECOMMENDED ACTION:
Conduct the public hearing and adopt a resolution assessing certain delinquent
solid waste charges as recorded liens upon the respective parcels of land and
placement of delinquent charges on the next regular tax bill for collection by the
County Treasurer-Tax Collector.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 7 of 570
7.3 Grant Application: Community Input for the FY2023 Preservation and
Reinvestment Initiative for Community Enhancement (PRICE) Application
301
Report Number: 24-0170
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
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. 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. 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. 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.
RECOMMENDED ACTION:
Conduct the public hearing to provide the public an opportunity to review the
application.
8.ACTION ITEMS
8.1 Reserve Policy: Consolidate Various Council Policies into a Citywide Reserve
Policy and Repeal Various City Council Policies Related to Reserves
390
Report Number: 24-0089
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
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 repealing various City Council Policies related to reserves,
amending City Council Policy 220-03 to serve as a consolidated citywide reserve
policy, and renaming City Council Policy 220-03 to Citywide Reserve Policy –
Fiscal Health Plan.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 8 of 570
8.2 Agreement: Approve an Agreement with The Centre for Organization
Effectiveness to Complete a New Citywide Five-Year Strategic Plan
481
Report Number: 24-0183
Location: No specific geographic location
Department: City Manager
G.C. § 84308: Yes
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. Notwithstanding the foregoing, the activity qualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State
Guidelines.
RECOMMENDED ACTION:
Adopt a resolution approving an agreement with The Centre for Organization
Effectiveness to complete a new citywide five-year strategic plan.
9.PUBLIC COMMENTS (CONTINUED)
There will be no continued Public Comment period if all speakers present at the first
Public Comment period are heard.
10.CITY MANAGER’S REPORTS
10.1 Legislative update: Assembly Bill 2783 San Diego Unified Port District 566
G.C. § 84308: No
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 update and provide direction.
11.MAYOR’S REPORTS
12.COUNCILMEMBERS’ REPORTS
13.CITY CLERK'S REPORTS
14.CITY ATTORNEY'S REPORTS
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 9 of 570
15.ADJOURNMENT
to the regular City Council meeting on June 11, 2024, 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.
City of Chula Vista - City Council
May 28, 2024 Post Agenda Page 10 of 570
Emergency Notification and Information Tool
GENASYS Emergency Management
AlertSanDiego + Genasys Protect
Page 11 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Suite of Tools
•Alert San Diego (Genasys Alert)
•Location-based alerting
•Multi-channel communication
•Genasys Protect
•Geographic notification zones
•Includes Public Website and Mobile App
•Protect.Genasys.com
Page 12 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Alert San Diego
•Opt-in system
•Register at www.AlertSD.org
•Capable of multi-modal
communication
•Voice
•Text
•Email
•Wireless Emergency Alerts
(WEA)
•Does not require opt-in
Page 13 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Wireless Emergency Alerts
•WEAs are broadcast to cell phones
within a targeted area
•Alert residents about an emergency
•Used by local, state, or federal officials
•Minimal characters, intended to:
•Grab residents' attention
•Advise residents to take action
•Direct residents to seek more
information
Page 14 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Genasys Protect
•Protect is a publicly accessible
website and app that:
•Allows community members to view
the status of zones
•Provides information about temporary
evacuation points, shelters, traffic
control points, etc.
•Alerts app users to a change in a
zone status
Page 15 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Genasys Protect
Zone Status -
displayed on the map with a shaded color
Example
Evacuation
Order
Evacuation
Warning
Page 16 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Genasys Protect
Example
Click on the desired
Zone to view details
about the status
Page 17 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Additional Resources
•AlertSanDiego.org
•Preparedness
•Emergency
•Recovery
•SD Emergency App
•Social Media
•@ChulaVistaFD
•@ChulaVistaPD
•@ThinkChulaVista
Page 18 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 19 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 03 P a g e | 1
May 28, 2024
ITEM TITLE
Housing Policy: Amend Chula Vista Municipal Code Title 19 and Chapter 17 to Assist in the Creation of
Affordable Housing
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
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 ordinance A) amending various sections and adding sections to Chula Vista Municipal Code Title 19
related to density bonuses, inclusionary housing, multi-family and mixed-use objective design standards,
residential for-sale affordable unit requirements, and marketing, application, lottery, and waitlist
requirements for affordable rental housing projects (Second Reading and Adoption); and Ordinance B)
amending Chula Vista Municipal Code Chapter 17.10 to exempt 100% affordable projects from such fees.
(Second Reading and Adoption)
Summary
This ordinance was placed on first reading on May 21, 2024. The original staff report can be accessed at the
following link: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=41858
Please note, the original staff report may include information beyond the scope of the ordinance proposed
for adoption with this action.
For questions, please contact the staff indicated in the original staff report or cityclerk@chulavistaca.gov.
Page 20 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
1
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
CHULA VISTA MUNICIPAL CODE (CVMC) TITLE 19
(PLANNING AND ZONING) CHAPTER 19.90
(AFFORDABLE HOUSING INCENTIVES), SECTION
19.58.460 (OBJECTIVE DESIGN STANDARDS FOR
QUALIFYING MULTIFAMILY RESIDENTIAL AND
MIXED-USE PROJECTS); AND ADDING CHAPTER 19.91
(INCLUSIONARY HOUSING), CHAPTER 19.93
(RESIDENTIAL FOR-SALE AFFORDABLE UNIT
REQUIREMENTS), AND CHAPTER 19.94 (MARKETING,
APPLICATION, LOTTERY, AND WAITLIST
REQUIREMENTS FOR AFFORDABLE RENTAL HOUSING
PROJECTS)
WHEREAS, the City of Chula Vista strives to ensure the City supports varied housing
opportunities for the diverse needs of residents including the establishment of permanent
affordable housing opportunities for low- and moderate- income households and rental affordable
housing opportunities for very low-, low-, and moderate- income households; and
WHEREAS, California Government Code Section 65915 et seq. (“State Density Bonus
Law”) is a state law granting developers the ability to develop housing at greater intensity than
would otherwise be allowed by local land use regulations; and
WHEREAS, State Density Bonus Law is amended frequently by the legislature of the
State of California, and therefore amending Chula Vista’s density bonus law to defer to State
Density Bonus Law wherever possible will reduce the frequency of future amendments to Chula
Vista Municipal Code (“CVMC”) Chapter 19.90; and
WHEREAS, the Balanced Community Policy was adopted in the 1981 Housing Element
as a way to create affordable units through inclusionary housing; and
WHEREAS, in 2005 an in-lieu fee was established as an alternative means of compliance,
and in 2012 guidelines were established to provide better clarity to the policy, establish incentives
for providing lower threshold units, and adopt specific measures to adjust to market conditions;
and
WHEREAS, Policy 3.4 of the 2021-2029 Housing Element identified reviewing the
Balanced Communities Policy for its feasibility in making progress to low- and moderate-income
Regional Housing Needs Allocation for the City; and
WHEREAS, in the spring of 2023 Housing staff contracted with a third-party consultant,
RSG, to conduct a feasibility analysis, hold multiple public stakeholder meetings, and draft an
inclusionary ordinance; and
Page 21 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
2
WHEREAS, due to the proposed amendment of CVMC Chapter 19.90 and addition of
Chapter 19.91, amendments to Section 19.58.460 are necessary to ensure that the section aligns
with said chapters; and
WHEREAS, Housing Policy 3.7 of the 2021-2029 Housing Element aims to “Increase
homeownership rates, particularly in the Northwest and Southwest Planning areas, as a means to
build individual wealth and stabilize existing residential neighborhoods”; and
WHEREAS, in order to provide consistency in the implementation of affordable
homeownership opportunities, Council Policy No. 453-02 via Council Resolution No. 2003-492
was established and has subsequently been amended, most recently on August 21, 2013 via
Council Resolution No. 2013-154, establishing the procedures and guidelines for the development
of affordable for sale housing for first-time low- and moderate- income buyers; and
WHEREAS, proposed CVMC Chapter 19.93 ensures that a for-sale unit shall be affordable
to the buyer while maintaining the market value of the property through a Value Recapture
Agreement and outlines the development guidelines and program requirements, including
underwriting criteria and the buyer selection criteria that shall pertain to any for-sale development
proposed to have affordable units within the City and not otherwise regulated by other funding
sources, inclusive of CVMC Chapter 19.90 and 19.91, that provide for-sale products; and
WHEREAS, in accordance with Title VI of the Civil Rights Act of 1964, the Fair Housing
Act, California’s Fair Employment and Housing Act, and other applicable local, state, and federal
laws, residents or applicants for housing shall not be discriminated against on the basis of race,
color, religion, national origin, disability status, family status, veteran or military status, gender or
sexual orientation, source of income, or any other protected class or arbitrary characteristic; and
WHEREAS, a key means of implementing fair housing policies is through the marketing
and selection of tenants in affordable housing; and
WHEREAS, to mitigate concerns and promote equity in the process, affordable housing
owners shall be required to carry out robust marketing efforts, with special outreach to groups least
likely to apply for such housing and select tenants via randomized lottery; and
WHEREAS, in order to provide consistency in the implementation of affordable rental
opportunities, the following ordinance provides a priority system to ensure those at greatest risk
of displacement and those already living or working within the City are prioritized for affordable
housing developments.
WHEREAS, the Director of Development Services reviewed the proposed legislative
action for compliance with the California Environmental Quality Act (“CEQA”) and determined
that the action qualifies for the “common sense” exemption under State CEQA Guidelines Section
15061(b)(3). The action involves updates, modifications, and organizational changes to the CVMC
relating to section titles, definitions, groups covered under density bonus, percentages, etc.
Furthermore, the action of updating and modifying the CVMC with procedural and clerical
changes will not result in an intensification of uses or a change in development potential within
Page 22 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
3
the City above what already is permitted under the exist ing land use and zoning policies of the
CVMC that are being updated. Based on an analysis of the nature and type of these procedural and
clerical changes to the CVMC, there is a certainty that there is no possibility that the action may
have a significant effect on the environment; and
WHEREAS, the policy updates, including the Housing Authority Bond Policy, were
presented to the Housing and Homeless Advisory Committee in concept at their October 25, 2023,
January 24, 2024, and May 8, 2024 meetings, which recommended adoption; and
WHEREAS, the Planning Commission held an advertised public hearing on the subject
Ordinance and voted 6-0 to adopt Resolution No. 2024-08, and thereby recommends that the City
Council adopt the Ordinance with one modification; and
WHEREAS, the City Council set the time and place for a hearing on the subject CVMC
amendments and notice of said hearing, together with its purpose, was given by its publication in
a newspaper of general circulation in the City, at least ten (10) days prior to the hearing.
NOW THEREFORE the City Council of the City of Chula Vista does hereby find and
ordain as follows:
Section I. Findings
The City Council of the City of Chula Vista finds that the proposed amendments to the CVMC
identified in this Ordinance No. qualifies for the “common sense” exemption under State CEQA
Guidelines Section 15061(b)(3). The action involves updates, modifications, and organizational
changes to the CVMC relating to section titles, definitions, groups covered under density bonus,
percentages, etc. Furthermore, the action of updating and modifying the CVMC with procedural
and clerical changes will not result in an intensification of uses or a change in development
potential within the City above what already is permitted under the existing land use and zoning
policies of the CVMC that are being updated. Based on an analysis of the nature and type of these
procedural and clerical changes to the CVMC, there is a certainty that there is no possibility that
the action may have a significant effect on the environment.
Section II. The Chula Vista Municipal Code Title 19 (Planning and Zoning) is hereby
amended, as follows:
Title 19
PLANNING AND ZONING
[Chapters 19.02 – 19.56 remain unchanged.]
Page 23 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
4
Chapter 19.58
USES
[Sections 19.58.010 - 19.58.450 remain unchanged.]
19.58.460 Objective design standards for qualifying multifamily residential and mixed-use
projects.
A. Intent. To provide the public, professionals, and decision-makers with the City’s objective
criteria for approval of multi-family residential and mixed-use projects containing two or more
residential units that meet the applicable requirements of California Government Code Section
65913.4. Subject to California Government Code Section 65915 as applicable, these objective
design standards, which involve no personal or subjective judgment as further specified in
California Government Code Section 65913.4(a)(5), shall be interpreted as requirements rather
than general guidelines. All multi-family residential and mixed-use projects applying under the
Housing Accountability Act (California Government Code Section 66300) protections and other
ministerial project review under state law, shall comply with the provisions under this section.
Projects must also comply with all applicable objective zoning code requirements within this title
including but not limited to height, setbacks, and floor area ratio, and any applicable California
Building Code requirements.
B. Building Architecture.
1. Through the verification of colors and materials on architectural plans or drawings,
buildings shall be designed with the same approach to form and massing, roof design, wall
and window design, and materials and colors on all elevations. No particular architectural
style is required; however, high quality architecture is encouraged.
2. Buildings at and over three stories tall must have walls that recess a minimum three
feet, at least every 100 feet of wall length, to provide relief along the wall plane.
3. Entirely blank walls are not allowed. A minimum of two architectural details from
the following list shall be provided on all building facades at minimum every 50 feet of
street frontage:
a. Windows;
b. Trellises;
c. Balconies;
d. Differentiation in exterior material;
e. Awnings.
Page 24 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
5
4. All street corners shall be enhanced to provide a tower element or an additional
architectural detail (list above) to make it distinct from the rest of the building.
5. Where buildings are proposed adjacent to a single-family residential zone,
windows, balconies or similar openings shall be oriented so as not to have a direct line-of-
sight into adjacent units or onto private patios or back yards adjoining the property line.
This can be accomplished through one of the following techniques:
a. Upper story stepback;
b. Window placement;
c. Use of glass block or opaque glass;
d. Placement of mature landscaping, or vertical landscaping (such as the use
of columnar-shaped plants) within the rear or side setback areas.
6. Roof design shall be of a single style and slope throughout the project. On a
building with a pitched roof, no portion of the main roof shall be flat.
7. Roof lines shall be vertically articulated, at least every 50 feet along the street
frontage, through the use of one or more of the following architectural elements:
a. Parapets;
b. Varying cornices;
c. Reveals;
d. Clerestory windows;
e. Varying roof height and/or form.
C. Site Design.
1. Where buildings front along a street, residential units shall have a ground-level
primary building entry facing the primary street. Along buildings not located facing a
primary street, front entryways of units shall be oriented to face common open space areas
such as landscaped courtyard, plaza, or paseo.
a. For mixed-use projects, commercial/office unit entrances shall be oriented
to the street, a parking area, or an interior common space. Additionally, community
leasing offices do not count towards the commercial requirements. For the purposes
of this section, commercial uses are also open for unit residents and the general
public.
Page 25 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
6
2. Covered and uncovered parking areas, as well as parking structures, shall be
screened from public street frontages. Screening may be accomplished through building
placement, landscaping, fencing, or some combination thereof. Where landscaping is used
for screening purposes, it shall be no less than four feet tall. Fencing shall comply with
subsection (H) within this section.
3. All pedestrian walkways shall be a minimum of four feet in width.
D. Affordable Housing. Projects with inclusionary units shall comply with the applicable
requirements set forth within CVMC Section 19.91.090. Additionally, projects using density
bonus shall comply with the CVMC Section 19.90.040.
E. Open Space.
1. Common open space are amenities to the surrounding community in addition to
required public parkland, and shall meet following criteria:
a. Developed with recreational uses, including both passive (landscaping) and
active amenities (tot lots, picnic areas, etc.)
b. Consist of large areas that are not fragmented by unrelated uses or
improvements.
c. A minimum of 200 square feet of usable open space per dwelling unit
shall be provided. In addition, it shall have a linear dimension no less than 10 feet.
2. Private open space for residential units can take the form of yard area, porches,
verandas, courtyards, patios, and balconies. The total amount provided shall be in
accordance with the following, based on unit sizes:
a. Multi-family with one bedroom: 60 square feet;
b. Multi-family with two bedrooms: 80 square feet;
c. Multi-family with three or more bedrooms: 100 square feet;
d. Each additional bedroom over three: 20 additional square feet.
F. Parking.
1. The Project shall comply with the off-street parking ratio requirements set forth in
CVMC Sections 19.62.010 through 19.62.130. If the project is using density bonus, the
developer may request the parking ratio set forth in California Government Code
Section 65915.
Page 26 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
7
2. Parking shall not be located between the building frontage and a public sidewalk.
3. Additionally, parking areas for more than five vehicles shall be effectively
screened by a minimum of 10-foot-wide landscaped strip and a masonry wall or fence of
acceptable design between the parking area and the public right-of-way. This strip shall
effectively screen the parking lot from the public right of way to a minimum height of
three-and-a-half feet. Any approved combination of planting mounds, walls, and/or
decorative features, which are visually compatible with the proposed development and the
surrounding neighborhood, may be utilized.
a. Every 10 parking stalls shall include a landscaped area with one (1) tree and
a minimum width of five (5) feet.
4. Any carports adjacent to a single-family residential zone, parking lot areas and
carports shall not be located along the single-family neighborhood street frontages.
Additionally, the design of carports shall match the Project’s overall design theme.
5. Bike Parking. The minimum number of spaces provided shall be 10 percent of the
total residential units. Additionally, an inverted “U” bike rack shall be the type of space
provided, and, shall not be separated from building entrances by a road, parking area, or
structure.
G. Walls and Fences.
1. The following standards apply to walls and fences:
a. Walls shall be architecturally treated on both sides and incorporate
landscaping.
b. Brick, slump stone, tile, textured concrete, stucco on masonry or steel
framing, wrought iron, tubular steel fencing, solid decorative walls, or other
material walls which require little or no maintenance are required.
c. Wall caps are to be incorporated as a horizontal design element at the top
of walls and should not exceed four inches vertical.
d. Plain concrete block walls and chain link fencing are not permitted.
H. Landscaping. All landscaping shall conform to the requirements as specified in the City’s
Landscaping Manual, Design Manual, Shade Tree Policy, and Water Conservation Ordinance, and
as approved by the Director of Development Services, or designee.
I. Lighting.
Page 27 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
8
1. All structures, entries, parking areas, refuse enclosures, active outdoor/landscape
areas, and pedestrian pathways shall include overnight lighting for safety and security.
2. Lighting shall be recessed or hooded, downward directed, and located to illuminate
only the intended area. It shall not spill beyond the intended area and shall not extend across
a property line.
3. Timers and sensors shall be incorporated to avoid unnecessary lighting and avoid
unnecessary energy use.
J. Utilities and Trash Enclosure Areas.
1. Utilities, utility vaults, and all mechanical equipment (ground and roof-mounted)
shall be screened or hidden from view from the public street.
2. Trash enclosure areas shall be provided in accordance with CVMC 19.58.340.
3. Trash enclosures shall be constructed of the same primary wall material and color
as the most adjacent building within the development.
4. Enclosures shall be located in convenient but unobtrusive areas, well screened with
landscaping and positioned so as to protect adjacent uses from noise and odors.
[Chapters 19.60 – 19.89 remain unchanged.]
Chapter 19.90
DENSITY BONUS
Section:
19.90.010 Purpose
19.90.020 Applicability
19.90.030 Density Bonus Allotment
19.90.040 Density Bonus Development Standards
19.90.050 Affordability Restrictions
19.90.060 Application Requirements and Review
19.90.070 Density Bonus Agreement
19.90.080 Agreement Processing and Administrative Fee
19.90.090 Savings Clause
Page 28 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
9
19.90.010 Purpose
The City of Chula Vista declares that the provision of housing in a suitable living environment for
all residents is a priority of the highest order and is consistent with State, regional and national
policies. The purpose of this chapter is to provide incentives for the production of affordable
housing in accordance with those contained in California Government Code Section 65915 (“state
density bonus law”). Terms and provisions not contained in this Chapter shall be defined in state
density bonus law.
This Chapter is intended to materially assist the housing industry in providing adequate and
affordable shelter for all economic segments of the community and to provide a balance of housing
opportunities throughout the City. It is intended that this Chapter facilitate the development of
affordable housing development projects and implement the goals, objectives and policies of the
City of Chula Vista General Plan Housing Element.
Nothing in this Chapter shall be construed to supersede or in any way alter or lessen the effect or
application of the California Coastal Act.
19.90.020 Applicability
The provisions of this Chapter shall apply to a housing development as defined in state density
bonus law.
19.90.030 Density Bonus Allotment
A housing development shall be entitled to receive a density bonus and incentives, concessions,
waivers, or reductions of development standards as set forth in state density bonus law.
19.90.040 Density Bonus Development Standards
A. Concurrent Development. Affordable units shall be constructed concurrently with market-
rate units unless both the City and the developer agree within the density bonus agreement to an
alternative schedule for development.
B. Location and Dispersal of Units. Affordable units and density bonus units shall be built on
site (within the boundary of the proposed development) and dispersed throughout the housing
development subject to the review and approval of the City; notwithstanding the foregoing, the
City may allow affordable units to be provided in a separate structure if it is determined that such
an arrangement is necessary to secure an allocation of Low Income Housing Tax Credits or other
affordable housing financing.
C. Bedroom Unit Mix. The housing development shall include a mix of affordable units (by
number of bedrooms) consistent with the unit mix of market-rate units.
D. Compliance with Development Standards and Codes. Density bonus projects shall comply
with all applicable development standards, except those which may be modified as an
incentive/concession or will have the effect of physically precluding the construction of a
development providing the affordable units at the permitted density.
Page 29 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
10
E. Design Consistency. The design and appearance of the affordable units shall be consistent
or compatible with the design of the market-rate units in terms of appearance, materials, and finish
quality.
F. Amenities. Residents of affordable units shall be permitted the same access to project
amenities and recreational facilities as market rate units.
19.90.050 Affordability Restrictions
The occupancy, rent, and income limitations and time periods of restriction of the same for housing
developments using the density bonus shall be as set forth in state density bonus law.
19.90.060 Application Requirements and Review
A. Preliminary Application. A developer proposing a density bonus project pursuant to state
density bonus law may submit a preliminary application prior to the submittal of any formal
request for approval. Developers are encouraged to schedule a preapplication conference with
designated staff of the Development Services Department and Housing and Homeless Services
Department to discuss and identify potential application issues, including prospective incentives
or concessions.
B. Application. The developer shall submit a density bonus application, which will be treated
as a part of any other required development application, which shall set forth set forth the requested
density bonus, incentives, concessions, waivers and/or reductions of development standards. The
proposed housing development may require other project development applications (e.g., tentative
map, parcel map, design review, conditional use permits). Under such circumstances, the density
bonus application shall be processed concurrently.
C. Approval of an Application. When a project involves a request for a density bonus,
incentives, concessions, waivers or reductions of development standards, the decision-making
body shall make a written finding that the project is consistent with the provisions of this chapter,
as part of the approval of the development applications. The approval shall take place prior to final
map approval, if applicable. If no additional development applications are required, the application
shall be approved prior to the execution of the density bonus agreement. The granting of an
incentive, concession, waiver, or reduction of development standards shall not, in and of itself,
require a General Plan, local coastal plan, or zoning amendment or any other discretionary
approval.
D. Denial of Application. In rejecting such development applications, the decision-making
body shall make written findings in compliance with Government Code Section 65589.5(b) and
based upon substantial evidence in the record.
19.90.070 Density Bonus Agreement
A. Execution of Agreement. Housing developments obtaining a density bonus shall execute a
density bonus agreement with the City.
Page 30 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
11
B. Recordation. Following execution of the density bonus agreement by all parties, the
completed density bonus agreement shall be recorded against the housing development senior to
all monetary liens. Recordation shall occur concurrently with the final map recordation, or where
a map is not being processed, prior to issuance of building permits for such parcels or units. The
density bonus agreement shall be binding in all future owners and successors in interest to the
housing development.
C. Provisions. The following terms are required in the density bonus agreement:
1. Number of Units. The total number of units, the number of density bonus units, and
the number of affordable units approved for the housing development.
2. Term of Affordability. The number of years the occupancy and affordability
restrictions for affordable units remain in place.
3. Phasing Schedule. A schedule of production and occupancy of affordable units, if
applicable.
4. Incentives, Concessions, Waivers, and/or Reductions in Development Standards. A
description of the incentives, concessions, waivers, and/or reduction in development
standards.
5. Operation and Maintenance. The rules and procedures for qualifying tenants,
establishing affordable rent, filling vacancies, operating and maintaining affordable units
for qualified tenants.
6. Ongoing Monitoring. Provisions requiring developers to demonstrate compliance
with this chapter.
7. Initial Sale. Where applicable, terms and conditions governing the initial sale of
for-sale affordable units in compliance with Chapter 19.93 Residential For-Sale Affordable
Housing.
8. Initial Lease. All affordable rental projects shall comply with Chapter 19.94
Marketing, Application, Lottery, and Waitlist Requirements for Affordable Rental Housing
Projects.
9. Remedies. A description of remedies for breach of the agreement by either party.
10. Other Provisions for Compliance. Other provisions as the City may require to
ensure implementation and continued compliance with this chapter and the state density
bonus law.
D. Inclusionary Housing Agreement. Projects that require both an inclusionary housing
agreement and density bonus agreement may be combined into one single housing regulatory
agreement.
Page 31 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
12
19.90.080 Agreement Processing and Administrative Fee
During the term of the density bonus agreement, the City will either directly or via one or more
third parties, review applications for affordable units and monitoring of such units. The City
Council may establish an administrative fee to fully recover the costs associated with such
administration and monitoring, the amount of which shall be established in the Master Fee
Schedule.
19.90.090 Savings Clause
A. If any provision of this chapter or the application thereof to any person or circumstances is
held invalid by a court of competent jurisdiction, the remainder of the chapter and the application
of the provision to other persons not similarly situated or to other circumstances shall not be
affected thereby.
B. Should any conflict exist between this chapter and any other land use ordinance, regulation,
resolution, policy or prior decision of the City, this chapter shall control all applicable land use
applications which do not have final approval on the effective date of this chapter.
Chapter 19.91
INCLUSIONARY HOUSING
Section:
19.91.010 Determinations
19.91.020 Purpose
19.91.030 Definitions
19.91.040 Applicability and Exemptions
19.91.050 Inclusionary Requirements
19.91.060 Relationship to Density Bonus Provisions
19.91.070 Housing In-Lieu Fees
19.91.080 Alternative Compliance
19.91.090 Inclusionary Unit Development Standards
19.91.100 Inclusionary Housing Plan and Affordability Agreement
19.91.110 Petition for Waiver or Reduction
19.91.120 Administration and Enforcement
19.91.010 Determinations
The City of Chula Vista declares that the provision of housing in a suitable living environment for
all residents is a priority of the highest order and is consistent with State, regional and national
policies. The goal of the City is to achieve a balanced community with housing available for
persons of all income levels. There exists within the City a shortage of housing that is affordable
to households of lower and moderate incomes. Federal and State housing finance subsidy programs
are not sufficient by themselves to satisfy these income housing needs. The City finds that the
Page 32 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
13
housing shortage for households of lower and moderate income is detrimental to the public health,
safety, and welfare and, further, that it is a public purpose of the City to seek assistance and
cooperation from the private sector in making available an adequate supply of housing for persons
of all economic segments of the community.
19.91.020 Purpose
The purpose of this Chapter is to enhance the public welfare and assure the compatibility between
future housing development and the Housing Element of the City of Chula Vista General Plan
through increasing the production of housing units affordable to households of lower and moderate
incomes. It is the purpose of this Chapter to meet the City’s General Plan goals to expand the
supply of housing available to lower and Moderate-Income Households.
19.91.030 Definitions
A. “Affordability Agreement,” means a legally binding, written agreement between an
Applicant and the City, in form and substance satisfactory to the City Attorney, ensuring
compliance with the requirements of this Chapter.
B. “Affordable Housing Cost” shall be as currently defined in Section 50052.5 of the
California Health and Safety Code and any subsequent amendments or revisions.
C. “Affordable Rent” shall be as currently defined in Section 50053 of the California Health
and Safety Code and any subsequent amendments or revisions. Notwithstanding the foregoing, the
City or Housing Authority shall retain discretion to restrict units at Affordable Rents consistent
with the maximum rents as published annually by the California Tax Credit Allocation Committee
(“CTCAC”).
D. “Applicant” means one (1) or more person(s) or entity(ies) that applies for a Residential
Development in the City, regardless of whether the person(s) or entity(ies) have an ownership or
leasehold interest in the property on which the development is proposed.
E. “Community Care Facilities” means facilities, places or buildings which are maintained
and operated, subject to licensing by the California Department of Social Services, to provide
nonmedical residential care, which may include home finding and other services, for children
and/or adults, including: the physically handicapped; mentally impaired, mentally disordered, or
incompetent; developmentally disabled; court wards and dependents; neglected or emotionally
disturbed children; the addicted; the aged. Community Care Facilities include continuing care and
retirement communities.
F. “Development Agreement” means an agreement entered into between the City and a
developer pursuant to California Government Code Section 65864 et seq.
G. “For-Sale” means any dwelling unit, including but not limited to a condominium,
townhome, other attached or detached single family dwelling unit, for which a parcel or tentative
and final map is required for the lawful subdivision of the parcel upon which the dwelling unit is
located for the creation of the unit in accordance with the Subdivision Map Act (Calif ornia
Government Code Section 66410 et seq.).
H. “Health Care Facilities” means facilities, places or buildings other than hospitals which are
maintained and operated as a residence for patients and to provide long-term medical care,
Page 33 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
14
including nursing homes, intermediate care facilities, extended care facilities, hospice homes, and
similar facilities which are licensed by the California State Department of Health Services, and
defined in Health and Safety Code, Section 1200, et seq., which may include a lab, radiology,
pharmacy, rehabilitation, and other similar services as accessory uses.
I. “Housing Authority” means the Chula Vista Housing Authority.
J. “Housing In-Lieu Fee” means a fee paid by an Applicant as an alternative to providing an
Inclusionary Unit or a fraction of an Inclusionary Unit.
K. “Inclusionary Unit” means a newly constructed “Rental” or “For-Sale” dwelling unit which
is: (1) provided (or caused to be provided) by an Applicant under the provisions of this Chapter;
(2) made available and occupied by a lower-, Low- or Moderate-Income Household, as required
under the provisions of this Chapter; (3) subject to occupancy and Affordable Rent for a period of
not less than 55 years, or Affordable Housing Cost or sales price controls for a peri od of not less
than 45 years, unless otherwise restricted through a value recapture agreement; (4) compatible with
the design of other units in the residential housing development of which it is part in terms of
exterior appearance, materials and quality finish; and (5) a similar unit type and bedroom mix to
the overall Residential Development.
L. “Low-Income Household” shall have the same definition as “lower income households” in
Section 50079.5 of the California Health and Safety Code and any subsequent amendments or
revisions.
M. “Low-Income Unit” means a unit restricted to a Low-Income Household and rented or sold
at an Affordable Rent or Affordable Housing Cost.
N. “Moderate-Income Household” shall have the same definition as “persons and families of
moderate income” in Section 50093 of the California Health and Safety Code and any subsequent
amendments or revisions.
O. “Moderate-Income Unit” means a unit restricted to a Moderate-Income Household and
rented or sold at an Affordable Rent or Affordable Housing Cost.
P. “Rental” means a dwelling unit that is not a For-Sale dwelling unit.
Q. “Residential Development” means a project containing at least one residential unit,
including mixed use developments. For the purposes of this Chapter, a “Residential Development”
also includes a subdivision or Common Interest Development, as defined in Section 4100 of the
California Civil Code, approved by the City which consists of residential units or unimproved
residential lots and either a project to substantially rehabilitate and convert an existing commercial
building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as
defined in subdivision (d) of California Government Code Section 65863.4, where the result of the
rehabilitation would be a net increase in available residential units.
R. “Review Authority” means the individual or official City body which has the responsibility
and authority to review, and approve or disapprove, applications for land use entitlements.
Page 34 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
15
S. “Single Room Occupancy Unit” is a residential unit with living space with a minimum
floor area of 150 square feet and a maximum of 400 square feet restricted to occupancy by no more
than two persons. Kitchen and bathroom facilities may be wholly or partially included in each
living space or may be fully shared.
T. “Very Low-Income Household” shall be as currently defined in Section 50105 of the
California Health and Safety Code and any subsequent amendments or revisions.
U. “Very Low-Income Unit” means a unit restricted to a Very Low-Income Household and
rented or sold at an Affordable Rent or Affordable Housing Cost.
19.91.040 Applicability and Exemptions
A. The inclusionary requirements of this Chapter apply to all Residential Developments
whose applications for building permits, subdivisions or development permits are deemed
complete on or after July 1, 2024, where the lots or units will be offered for sale or rent, including
the residential component of mixed-use developments.
B. Notwithstanding subsection A, to the following shall be exempt from this Chapter:
1. Projects that are not Residential Developments.
2. Any project for which the city enters into a Development Agreement pursuant to
California Government Code Section 65964 that provides inclusionary housing obligations
comparable to this Chapter and alternative community benefits or for any project that is
otherwise exempt under State law.
3. Units to be constructed pursuant to an agreement with the City or other local
government agency that restricts occupancy to Low- or Moderate-Income Households at
an Affordable Housing Cost for a period of not less than 55 years (or 45 years for ownership
units).
4. Homeless shelters, Community Care Facilities, Health Care Facilities, and Single
Room Occupancy Units.
5. Dwelling units to replace previously existing dwelling units on the same lot, if the
previous dwelling units were demolished or destroyed within the last five years prior to the
date the building permit application for the replacement unit is submitt ed to the
Development Services Department.
6. Construction of accessory dwelling units as defined by California Government
Code Section 65852.2(j).
7. Home remodels and additions.
8. Density bonus units.
9. Mobile homes.
10. A residential project that was approved by the City prior to adoption of this Chapter.
Notwithstanding the foregoing, this Chapter shall apply to any residential project that
Page 35 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
16
applies to modify its project after it has been approved by the City, and the modification
increases the density of the project. In that scenario, this Chapter shall only apply to the
additional units created by the modification.
19.91.050 Inclusionary Requirements.
A. Residential or mixed-use development projects with fewer than ten units shall not be
required to meet the provisions of this Chapter.
B. For residential or mixed-use development projects of ten or more For-Sale units, except
those projects complying with this Chapter in an alternative manner consistent with Section
19.91.080 below, 10% of the units shall be restricted For-Sale at an Affordable Housing Cost, as
follows:
1. The first Inclusionary Unit required by this Chapter shall be restricted For-Sale at
an Affordable Housing Cost to a Moderate-Income Household;
2. The second Inclusionary Unit required by this Chapter shall be restricted For-Sale
at an Affordable Housing Cost to a Low-Income Household;
3. All subsequent Inclusionary Units shall follow a similar order of distribution as
above such that, to the extent possible, 50% of Inclusionary Units will be restricted For-
Sale to Moderate-Income Households, and 50% to Low-Income Households.
C. For residential or mixed-use development projects of ten or more Rental units, except those
projects complying with this Chapter in an alternative manner consistent with Section 19.91.080
below, 10% of the units shall be restricted at an Affordable Rent, as follows:
1. The first Inclusionary Unit required by this Chapter shall be restricted as a
Moderate-Income Unit;
2. The second Inclusionary Unit required by this Chapter shall be restricted as a Low-
Income Unit; and
3. All subsequent Inclusionary Units shall follow a similar order of distribution as
above such that, to the extent possible 50% of Inclusionary Units will be designated as
affordable to Moderate-Income Households, and 50% to Low-Income Households.
D. Fractional Inclusionary Units that may result from the application of these requirements
may be met by rounding up to provide an additional Inclusionary Unit consistent with this Section
19.91.050(C), or by paying a fractional Housing In-Lieu Fee as noted in Section 19.91.070.
E. If a proposed Residential Development project would result in the elimination of existing
deed restricted affordable housing units, the affordable units must be replaced on a one-for-one
basis with equally affordable deed restricted units with a new Affordability Agreement recorded
that results in resetting and making consistent the duration of affordability consistent with the
requirements of this Chapter.
19.91.060 Relationship to Density Bonus Provisions
Page 36 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
17
An Applicant proposing Inclusionary Units, consistent with this Chapter 19.91, which also applies
for a density bonus, consistent with Chapter 19.90 of this code, may count units affordable to lower
or Moderate-Income Households toward both requirements, and shall be eligible to receive one or
more incentives or concessions, pursuant to California Government Code Section 65915.
Additional units allowed by the density bonus shall not be included in the total project units when
determining the proportion of required Inclusionary Units in a Residential Development.
19.91.070 Housing In-Lieu Fees
Developing the required Inclusionary Units within the Residential Development, as required under
Section 19.91.050, is preferred. However, as an alternative to those requirements, or for fractional
units that result from application of Section 19.91.050, the requirement may be satisfied as follows:
A. The Applicant may satisfy the on-site Inclusionary Unit requirements, or fractional unit
requirements, of Section 19.91.050 through payment of a Housing In-Lieu Fee in an amount that
shall be calculated using the fee schedule established by resolution of the City Council.
B. In accordance with this paragraph, the Applicant may satisfy the Inclusionary Unit
requirements of Section 19.91.050 by providing some of the required Inclusionary Units on-site
and paying a Housing In-Lieu Fee for any required Inclusionary Units that are not included in the
project. The amount of the Housing In-Lieu Fee shall be calculated by using the fee schedule
established by resolution of the City Council.
C. The full Housing In-Lieu Fee shall be paid to the City prior to the issuance of the first
building permit for the Residential Development project.
D. Except as otherwise provided in this Chapter 19.91, all Housing In-Lieu Fees paid under
this Chapter shall be paid to the City and deposited into the Housing Inclusionary Fund maintained
by the City for use in producing, protecting, and preserving affordable housing, including site
acquisition, development, rehabilitation, or preservation of affordable housing, homelessness
prevention programs, first time homebuyer programs, or other affordable housing programs, and
for affordable housing program administration, either directly by the City or in partnership with
the Housing Authority or third-party affordable housing developers.
19.91.080 Alternative Compliance
The primary means of compliance with this Chapter shall be on-site Inclusionary Units or payment
of Housing In-Lieu Fees consistent with Sections 19.91.050 and 19.91.070. The City will consider
at its discretion certain alternatives to the provision of on-site Inclusionary Units or payment of the
Housing In-Lieu Fee including the provision of Inclusionary Units off-site, directly by Applicant
or through an agreement with a third party; dedication or conveyance of land; conversion of market
rate units to affordable; credit for naturally occurring affordable housing; preservation of at -risk
housing; or use of inclusionary credits. All alternative compliance measures must produce at least
the same number and affordability of units that would have been provided on-site and are subject
to review and approval by the City.
A. Inclusionary Units Provided Off-Site. An Applicant may provide (or may cause a third
party to provide) Inclusionary Units off-site (“off-site units”).
Page 37 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
18
1. Inclusionary Units provided off-site must be located within one mile of the
development or located in an area within Chula Vista designated as “highest resource,”
“high resource,” or “moderate resource” according to opportunity maps published by the
California Tax Credit Allocation Committee at the time of permit application.
2. As part of the application submittal materials, if the Applicant itself will provide
the Inclusionary Units off-site, the Applicant shall submit evidence that the Applicant
owns, leases (pursuant to an executed a ground lease of at least the 55 years from the date
offsite units would be produced), or has an irrevocable option to purchase, the site where
the off-site Inclusionary Units are proposed to be located; alternatively, if Applicant enters
into an agreement with a third party to provide the Inclusionary Units off-site, then the
Applicant shall cause such third party to submit evidence that the third party owns, or has
an irrevocable option to purchase, the site where the off-site Inclusionary Units are
proposed to be located.
3. The City shall not issue a building permit for the Residential Development project
until the Inclusionary Units off-site, whether they are to be constructed by the Applicant or
third party, are under construction. Any agreement entered into by the Applicant and a third
party to construct Inclusionary Units off-site is subject to review and approval by the City
and must contain a clause that allows the City to enforce the rights in the agreement.
B. Land Dedication or Conveyance Alternative. An Applicant may offer to dedicate or convey
land to the City or Housing Authority, situated on-site or off-site.
1. Land offered under this section must be within the City’s boundaries and must be
designated for a general plan land use which allows multifamily units.
2. The Applicant shall provide a financial analysis which demonstrates that the land
offered is suitable for affordable housing development in terms of size; location; general
plan land use designation; availability of sewer, water and transit services; absence of
toxics; absence of environmental constraints; site characteristics and surroundings. Staff
will recommend to the Review Authority whether the dedication should be accepted.
3. The Applicant shall also submit evidence that the Applicant owns, or has an
irrevocable option to purchase, the site proposed for dedication or conveyance.
4. Land conveyed under this section shall be used for the development of affordable
housing for households of lower income.
5. Land shall be identified and offered for dedication or conveyance at the time of
development application submittal. If the offer is accepted by the Review Authority, the
land must be donated to the City or Housing Authority no later than the date of approval
of the final subdivision map, parcel map or housing development application, and must
have all the permits and approvals, other than building permits, necessary for development
with the required number of Inclusionary Units.
6. Concentration Determination. Each site proposed to be dedicated or conveyed to
the City for construction of Inclusionary Units or proposed for one or more off-site
Inclusionary Units shall be evaluated as to whether the placement of such units will overly
Page 38 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
19
impact an area with lower income units. If the site is within 1,000 feet of one or more
existing or approved developments in which more than 50 percent of the units are, or will
be, restricted to occupancy by households of lower incomes, impaction shall be found. The
Review Authority may override a determination of impaction by making findings that local
schools, services and adjacent uses will not be negatively impacted by the construction of
Inclusionary Units at the proposed site.
C. Conversion of Market Rate Units to Affordable. An Applicant may propose to convert
existing market rate units within the City to affordable units in an amount equal to or greater than
the required on-site inclusionary housing requirement, including any needed rehabilitation to
ensure compliance with building, health and safety standards. In considering such proposals, the
City will evaluate the public benefit to be gained from conversion, including the value of any rent
reductions, scope of building rehabilitation, and resolution of nuisance activities.
D. Preservation of At-Risk Housing. An Applicant may offer to purchase long term
affordability covenants on an existing deed restricted affordable housing project at imminent risk
of contract termination and conversion to market rate housing. The number of units preserved shall
be equal to or greater than the required on-site inclusionary housing requirement and an additional
55 years beyond the expiring covenant(s). For the purposes of this section, “imminent risk” shall
mean expiration of all affordability covenants within two years from the date of Applicant’s
proposal. Applicant must demonstrate that affordability covenants are unlikely to be renewed in
the absence of such action.
E. Credit for Additional Affordable Units. If an Applicant completes construction on a site of
a greater number of affordable units than required by this Chapter, the additional units may be
credited towards meeting the requirements of this Chapter for a future project unless otherwise
regulated by a Sectional Planning Area Affordable Housing Plan. The Applicant may use credits
in a future project or transfer the credits in writing to another developer. Credits will only be
counted toward required affordable units with the same bedroom count, the same type (Rental or
ownership), and required affordability targets. The credits must be used within 10 years of
issuance. Projects which have received a density bonus, or which were constructed with an
allocation of low-income housing tax credits, tax-exempt bonds, or other public subsidy, shall not
be eligible for credits.
F. Incentive Credit. The City has a greater need for housing for Very Low- and Low-Income
Households. To encourage developers to provide for these households, the City can in effect
reduce the required affordable housing obligation when the Developer opts to provide Very Low-
or Low-Income Units rather than Low- or Moderate-Income Units that are required under Section
19.91.050. The incentive credit shall be calculated as follows:
1. A credit of 6.0 units will be applied for every For-Sale unit restricted at an
affordable cost for a Very Low-Income Household in lieu of a For-Sale Moderate-Income
Unit otherwise required, and a credit of 3.5 units will be applied for every Rental unit
restricted at an affordable cost for a Very Low-Income Household in lieu of a Rental
Moderate-Income Unit otherwise required.
2. A credit of 5.0 units will be applied for every For-Sale unit restricted at an
affordable cost for a Low-Income Household in lieu of a For-Sale Moderate-Income Unit
Page 39 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
20
otherwise required, and a credit of 3.0 units will be applied for every Rental unit restricted
at an affordable cost for a Low-Income Household in lieu of a Rental Moderate-Income
Unit otherwise required.
3. A credit of 1.5 units will be applied for every For -Sale or Rental unit restricted at
an affordable cost for a Very Low-Income Household in lieu of a For-Sale Low-Income
Unit or Rental unit otherwise required.
19.91.090 Inclusionary Unit Development Standards
A. Subject to the review and approval of the City, all Inclusionary Units shall be:
1. Dispersed throughout the residential project;
2. Proportional, in number of bedrooms, to the market rate units;
3. Comparable to the market rate units included in the residential project in terms of
size, design, materials, finish quality, and appearance; and
4. Permitted the same access to project amenities and recreational facilities as market
rate units.
B. Notwithstanding the foregoing, the City may allow Inclusionary Units to be provided in a
different manner in a separate structure if it is determined that such an arrangement is necessary
to secure an allocation of Low-Income Housing Tax Credits or other affordable housing financing.
C. Timing of Construction. All Inclusionary Units in a project shall be constructed concurrent
with, or before the construction of the market rate units. If the City approves a phased project, a
proportional share of the required Inclusionary Units shall be provided within each phase of the
residential project.
D. Accessory dwelling units shall not be counted towards meeting a project’s inclusionary
requirements.
E. Units for Sale. All properties offering For-Sale Inclusionary Units shall abide by Chapter
19.93 to offer the units at affordable prices.
F. Rental Units.
1. Time Limit for Inclusionary Restrictions. A Rental Inclusionary Unit shall remain
restricted to the target income level group at the applicable Affordable Rent for fifty-five
(55) years.
2. Certification of Renters. The owner of any Rental Inclusionary Units shall certify
to the City, on a form provided by the City, the income of the tenant at the time of the initial
Rental and annually thereafter.
3. Forfeiture. Any lessor who leases an Inclusionary Unit in violation of this Chapter
shall be required to forfeit to the City all money so obtained. Recovered funds shall be
deposited into the Housing Inclusionary Fund.
Page 40 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
21
4. All properties offering Rental Inclusionary Units shall abide by Chapter 19.94
regarding Affordable Housing Marketing and offer the units at affordable prices.
G. General Prohibitions.
1. No person shall sell or rent an Inclusionary Unit at a price or rent in excess of the
applicable Affordable Housing Cost or Affordable Rent placed on the unit in accordance
with this Chapter.
2. No person shall sell or rent an Inclusionary Unit to a person or persons that do not
meet the income restrictions placed on the unit in accordance with this Chapter.
3. No person shall provide false or materially incomplete information to the City or to
a seller or lessor of an Inclusionary Unit to obtain occupancy of housing for which that
person is not eligible.
H. Principal Residency Requirement.
1. The owner or lessee of an Inclusionary Unit shall reside in the unit as such person’s
principal residence except as may be otherwise required due to active military deployment,
medical reasons, or other hardship, subject to the City’s review and approval
2. No owner or lessee of an Inclusionary Unit shall lease or sublease, as applicable,
an Inclusionary Unit without the prior permission of the City.
19.91.100 Inclusionary Housing Plan and Affordability Agreement
A. The Applicant shall comply with the following requirements at the times and in compliance
with the standards and procedures in the City's regulations for the implementation of this Chapter.
1. Inclusionary Housing Plan. Upon application to the City for discretionary approval
which would alter or vary from the requirements of this Chapter, an Applicant shall submit
an inclusionary housing plan detailing how the provisions of this Chapter will be
implemented for the proposed project. If the inclusionary housing plan includes
alternatives to on-site units, then the inclusionary housing plan shall be subject to the
review and approval of the City Council. All other inclusionary housing plans shall be
subject to the approval of the City, subject to appeal to the Planning Commission. Any
such appeal shall be filed within ten working days of the City’s decision.
2. Affordability Agreement. Prior to building permit issuance, an Applicant shall
execute and cause to be recorded an Affordability Agreement. Once the Residential
Development including Inclusionary Units has received its final discretionary approval, the
Applicant shall file an application, including payment of any processing and monitoring
fees, with the Development Services Department for approval and finalization of the
Affordability Agreement.
B. An Applicant for a project providing Inclusionary Units consistent with this Chapter, as
well as affordable units consistent with the provisions of Chapter 19.90 of this code, shall enter
into a single affordable housing agreement with the City.
Page 41 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
22
C. Discretionary Approvals. No discretionary approval shall be issued for a project subject to
this Chapter until the Applicant has submitted an inclusionary housing plan.
D. Issuance of Building Permit. No building permit shall be issued for a project subject to this
Chapter unless the Department of Housing and Homeless Services has approved the inclusionary
housing plan, if such a plan is required by this Chapter, and any required Affordability Agreement
has been recorded encumbering the project site.
19.91.110 Petition for Waiver or Reduction
An Applicant may request a waiver or reduction in the requirements of this Chapter 19.91,
provided that the Applicant provides evidence of economic hardship, such as inability to achieve
a reasonable commercial profit, which must be verified by an independent third-party, chosen by
the City, at the Applicant's sole cost. Such review would include a comparison of the Applicant's
projected costs and Rental/sale revenue assumptions with current market standards, including a
market rate of return on cost. The waiver or reduction request may be processed ministerially by
the City Manager or designee, with the option of review and approval by the City Council.
19.91.120 Administration and Enforcement.
A. The City Council, by resolution, may from time to time adopt procedures, policies, rules,
guidelines, and requirements, including the adoption of processing and administrative fees, to
implement, administer, and/or enforce the provisions of this Chapter.
B. The City Manager or designee is authorized to determine the number of dwelling units
contained within a particular Residential Development, if a determination is needed to resolve a
disagreement. When a question arises regarding the meaning or interpretation of any provision of
this Chapter to any specific circumstances or situation, the City Manager or designee is authorized
to render a decision thereon in writing.
C. The City shall keep on file and available for public review a copy of the current income
schedules and utility allowances.
D. Any violation of this Chapter constitutes a misdemeanor and may be subject to the penalties
and remedial procedures set forth in this Code.
E. The provisions of this Chapter shall apply to all owners, Applicants, developers, their
agents, successors, and assigns that propose a Residential Development, occupy an Inclusionary
Unit, or both. All Inclusionary Units shall be sold or rented in accordance with this Chapter and
any regulations and administrative guidelines adopted pursuant to this Chapter.
F. Any individual who sells or rents an Inclusionary Unit in violation of the provisions of this
Chapter, the guidelines, or the Affordability Agreement shall be required to forfeit to the City all
monetary amounts obtained in violation of those provisions. Recovered funds shall be deposited
into the Housing Inclusionary Fund.
G. The City Attorney may institute any appropriate legal actions or proceedings necessary to
ensure compliance with this Chapter, including, but not limited to:
1. Actions to revoke, deny, or suspend any permit, including a building permit,
Page 42 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
23
certificate of occupancy, or discretionary approval; and
2. Actions for injunctive relief or damages.
H. In any action to enforce this Chapter or an Affordability Agreement recorded hereunder, the
prevailing party shall be entitled to recover its reasonable attorneys' fees and costs.
[Chapter 19.92 remains unchanged.]
Chapter 19.93
RESIDENTIAL FOR-SALE AFFORDABLE UNIT REQUIREMENTS
Section:
19.93.010 Findings and Purpose
19.93.020 Promulgation of Administrative Regulations
19.93.030 Definitions
19.93.040 Program Requirements
19.93.050 Sale Terms and Value Recapture
19.93.060 Homebuyer Requirements
19.93.010 Findings and Purpose
A. The purpose of this Chapter is to establish the procedures for the Development of
affordable for-sale housing for very low-, low- and moderate- Income buyers under various
programs within the City of Chula Vista, including Density Bonus Chapter 19.90 and Inclusionary
Housing Chapter 19.91.
B. The provisions of this Chapter shall apply to any Development which is satisfying its
affordable housing obligation to the City by providing for-sale Affordable Units, which are not
otherwise regulated by any other funding sources. Any Development satisfying its affordable
housing obligation by providing affordable for-sale Affordable Units within the City must comply
with this Chapter.
19.93.020 Promulgation of Administrative Regulations
A. The City Manager or designee is authorized to establish, consistent with the terms of this
Chapter, Administrative Regulations necessary to carry out the purposes of this Chapter.
Administrative Regulations shall be published on the City’s website and maintained and available
to the public in the Office of the City Clerk. Administrative regulations promulgated by the City
Manager or designee shall become effective and enforceable under the terms of this Chapter thirty
(30) days after the date of publication on the City’s website.
19.93.030 Definitions
Any term herein expressed in the plural may also apply to the singular. The following terms shall
have the meanings set forth herein:
Page 43 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
24
A. “Administrative Regulations” means regulations that implement this Chapter authorized
by the City Manager or designee pursuant to Section 19.63.020
B. “Affordable Housing Cost” shall have the meaning set forth in California Health and Safety
Code Section 50052.5 and the attendant Administrative Regulations.
C. “Affordable Unit” means a unit restricted for sale to very low-Income, Low-Income or
Moderate-Income Households and sold at an Affordable Housing Cost.
D. “AMI” shall have the same meaning as “area median income” set forth in California Health
and Safety Code Section 50093.
E. “City” means the City of Chula Vista.
F. “Development” means a Project that contains residential dwelling units.
G. “Developer” means any person obligated to provide Affordable Units as part of a
Development.
H. “Eligible Household” means any person meeting the criteria set forth in any City-imposed
requirements applicable to an Affordable Unit.
I. “Equity” means the difference between, the unrestricted fair market value of the Affordable
Unit on the date of the first resale of the Affordable Unit, as determined by an appraisal approved
by the City, minus the sum of: (i) the original unrestricted fair market value of the Affordable Unit
at the time of its acquisition by the Eligible Household, plus (ii) the actual costs of any City-
approved improvements to the Affordable Unit; and (iii) the down payment. If the foregoing
calculation of Equity results in a negative number, then the Equity shall be deemed to be zero.
J. “First-Time Homebuyer” means no member of the Household has had Ownership
anywhere, other countries included, during the three-year period prior to the date of application.
K. “Homebuyer” means the Eligible Household who has entered into a Value Recapture
Agreement with the City.
L. “Household” means all persons who have resided together for at least one year (expect in
the case of a newborn child) and will continue to reside in the residence being purchased. A
Household includes the related family members and all the unrelated people, if any, such as
lodgers, foster children, wards, or employees who share the housing unit.
M. “HUD” means the United States Department of Housing and Urban Development.
N. “Income” means the gross amount of all Income for all applicants and adult Household
members that is to be received during the coming twelve (12) months, as defined by HUD’s
technical guide for determining Income and allowances, including all Income derived from any
Page 44 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
25
source, including but not limited to wages (gross pay), overtime, pensions, military service
connected disability/veteran’s compensation, bonuses, public assistance, social security Income,
alimony, child support, adoption support, foster care support, dividends and interest.
O. “Initial Benefit” means the difference between the sale price and the unrestricted fair
market value of the Affordable Unit at the time of purchase.
P. “Low-Income Household” or “Lower Income Households” has the same meaning as
“lower income households” set forth in California Health and Safety Code Section 50079.5, as
amended.
Q. “Moderate-Income Household” has the same meaning as “persons or families of low or
moderate income” set forth in California Health and Safety Code Section 50093, as amended.
R. “Ownership” means any of the following interests in residential real property: fee simple
interest, joint tenancy, tenancy in common, interest of a tenant-shareholder in a cooperative, life
estate interest held in trust for the applicant that would constitute a present Ownership interest if
held by the applicant. Ownership does not include a remainder interest, a lease with or without an
option to purchase, or any interest acquired on the execution of the purchase contract.
S. “Principal Residence” means the primary home which all of all the Homebuyers reside in
for not less than ten (10) months out of each calendar year.
T. “Value Recapture Agreement” means an agreement by and between the City and the
Homebuyer recorded against the Affordable Unit in the official records of the County of San
Diego, which satisfies the requirements of this Chapter.
U. “Underwriting” means the process by which a lender determines whether an applicant is
eligible to receive a loan.
19.93.040 Program Requirements
A. Additional Developer Obligations. Each Developer shall satisfy the following
requirements:
1. Developer shall meet the requirements of all other regulations, policies, laws and
programs applicable to the Affordable Units.
2. If the City Manager or designee adopts Administrative Regulations, Developer
shall meet the requirements of the Administrative Regulations.
3. Developer shall follow the priority system for determining eligible buyers set forth
in the Administrative Regulations.
4. The Developer shall provide information and disclosures to each Homebuyer
detailing the responsibilities of all the involved parties, including the lender, City,
Developer and Homebuyer.
Page 45 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
26
B. Lenders. Developer may elect to designate a lender to assist with sales of the Affordable
Units to Homebuyers. Each lender providing funding to Homebuyers shall meet the requirements
of the Administrative Regulations.
1. Prospective Homebuyers must be pre-qualified by a lender, to purchase an
Affordable Unit. A Homebuyer may obtain permanent financing from any licensed
mortgage broker or lender of their choosing. Homebuyers shall notify City staff in writing
of their selected lender at least 30 days before escrow closing.
2. Each lender shall determine each Homebuyer’s eligibility to purchase an
Affordable Unit.
3. The Administrative Regulations shall establish basic Underwriting standards for
private loans in connection with Homebuyer acquisitions of Affordable Units. All loans
are subject to the City’s review and written approval.
4. All documents the lender is required to provide to the City under the Administrative
Regulations shall be provided to the City a minimum of thirty (30) days prior to the escrow
closing date.
19.93.050 Sale Terms and Value Recapture
A. Purchase Price. In accordance with California Health & Safety Code Section 50052.5, the
price for lower Income units shall not exceed 30% of 70% of AMI, and for Moderate-Income
Households shall not exceed 30% of 110% of AMI.
B. Homebuyer Eligibility. All applicants must be First-Time Homebuyers and provide
documentation as proof of no Ownership.
C. Value Recapture and Equity Share. The City and each Homebuyer shall enter into a Value
Recapture Agreement that complies with the requirements of the program requiring the Affordable
Units and with the Administrative Regulations. The Value Recapture Agreement shall set forth the
Initial Benefit and the methodology for Equity sharing between the Homebuyer and the City. The
Equity share due to the City shall be as set forth in the Value Recapture Agreement. The Value
Recapture Agreement shall comply with California Government Code Section 65915(c)(2).
19.93.060 Homebuyer Requirements
A. Primary Residence. The Affordable Unit shall be the Principal Residence of the
Homebuyer
during the entire term of the Value Recapture Agreement. The Homebuyer shall certify to the City
annually under penalty of perjury that the Affordable Unit is the Principal Residence of the
Homebuyer. The Affordable Unit may not be rented on a long-term or short-term basis while
subject to affordability restrictions.
B. Changes in Household Composition. The homeowner shall notify the City of any changes
in Household composition. The addition of any person to title to the Affordable Unit shall be
Page 46 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
27
subject to the City’s advanced written approval. Any such approval shall be subject to confirmation
that the Household will continue to meet the requirements of the Value Recapture Agreement after
the addition of any persons.
C. Conveyances. Any sale, transfer, refinance, conveyance or change in title of the Affordable
Unit shall be subject to the City’s advanced written approval in the manner set forth in the attendant
Administrative Regulations.
Chapter 19.94
MARKETING, APPLICATION, LOTTERY, AND WAITLIST REQUIREMENTS FOR
AFFORDABLE RENTAL HOUSING PROJECTS
Section:
19.94.010 Purpose and Intent
19.94.020 General Applicability
19.94.030 Definitions
19.94.040 Marketing and Management Plan Review and Approval
19.94.050 Marketing to Prospective Tenants
19.94.060 Application Process
19.94.070 Lottery and Waitlist
19.94.080 Priority Policy
19.94.090 Applicant Screening
19.94.100 Fees
19.94.110 Reasonable Accommodations
19.94.120 Record Retention
19.94.130 Right to Modify
19.94.010 Purpose and Intent
The purpose of this Chapter is to create clear and concise requirements for the marketing,
application, selection priorities, Lottery, and Waitlist processes for affordable rental housing
Projects in the City of Chula Vista.
19.94.020 General Applicability
The provisions of this Chapter shall apply to Projects subject to Restrictions.
19.94.030 Definitions
When used in this Chapter, the following words and phrases shall have the meanings ascribed to
them below. Words and phrases not specifically defined below shall have the meanings ascribed
to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of
nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall
be included. Any reference to any law, statute or regulation, is deemed to include any successor or
amended version of the such law, statute or regulation consistent with the terms of this Chapter.
Page 47 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
28
A. “Applicant” means a person applying to lease a Restricted Unit.
B. “Lottery” means a Lottery to randomly select Applicants as set forth in this Chapter using
a methodology approved by the City Manager or designee.
C. “Low-Income Household” shall have the same definition as “lower income households” in
Section 50079.5 of the California Health and Safety Code.
D. “Marketing and Management Plan” means a document or documents approved by the City
Manager or designee, which meet all of the requirements of this Chapter and contain all of the
following, unless otherwise agreed in the discretion of the City Manager or designee:
1. Identification of groups of people in need of special outreach efforts.
2. Identification of marketing outlets which will be utilized for advertising the
Restricted Units.
3. The timeframes and deadlines for advertising the Restricted Units.
4. The methodology for advertising to and communicating with persons who do not
speak English.
5. The procedures for and target date of the Lottery.
6. Tenant eligibility criteria, such as minimum and maximum household sizes,
minimum and maximum income limits, and Applicant’s rental history.
7. The procedure for submitting and reviewing grievances by and appeals of
Applicants.
8. The procedure for submitting and reviewing requests for Reasonable
Accommodations.
9. A list of grounds for denial of applications for Restricted Units.
10. A policy for review and processing of transfers of households between units,
including as a request for Reasonable Accommodations, changes in household
composition, and other circumstances.
11. The Project’s record retention policy.
12. Samples of potential advertisements.
13. A sample lease agreement for the Restricted Unit(s), which sample lease agreement
shall include the requirement that tenants are responsible for submitting documentation to
the City on an annual basis which proves such tenant’s continued eligibility to occupy the
Page 48 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
29
Restricted Unit. Such provisions may be contained in a lease addendum or lease rider.
E. “Moderate-Income Household” shall have the same definition as “persons and families of
moderate income” in Section 50093 of the California Health and Safety Code.
F. “Owner” a person that owns a Project.
G. “Project” means real property subject to Restrictions.
H. “Reasonable Accommodation” has the meaning set forth in the Fair Housing Act (42
U.S.C. §§ 3601 – 3619).
I. “Restricted Unit(s)” means a dwelling unit or dwelling units which are occupancy
restricted pursuant to Restrictions.
J. “Restrictions” means a document or instrument that meets both of the following
requirements: (i) the document or instrument restricts the occupancy of at least one residential
dwelling unit for occupancy by Very Low-Income Households, Low-Income Households, or
Moderate-Income Households; and (ii) and the City, Housing Authority, and/or Successor Agency
is a party to such document or instrument OR the City, Housing Authorit y, and/or Successor
Agency has the right to enforce such document or instrument OR the document or instrument is
made in favor of the City, Housing Authority, and/or Successor Agency.
K. “Very Low-Income Household” shall have the meaning set forth in Section 50105 of the
California Health and Safety Code.
L. “Waitlist” means a list of Applicants who were not selected to lease Restricted Units.
19.94.040 Marketing and Management Plan Review and Approval
A. Every Owner of a Project subject to a regulatory agreement effective on or after the
effective date of this ordinance shall submit a Marketing and Management Plan to the City for the
City’s review and approval or rejection. Each Project that did not obtain a certificate of occupancy
on or before July 1, 2024, shall submit a Marketing and Management Plan to the City not less than
ninety (90) days prior to issuance of a temporary certificate of occupancy for the Project.
B. The City shall accept or provide notice of any objections to each Marketing and
Management Plan. Such acceptance or objection shall be made in the discretion of the City
Manager or designee, provided that any objections shall be solely based upon a failure of the
Marketing and Management Plan to meet the requirements of this Chapter. If the City delivers a
notice of any objections, the Owner shall cause the Marketing and Management Plan to be revised
accordingly and shall resubmit the revised Marketing and Management Plan to the City for review
and approval as set forth in this Section.
C. The approved Marketing and Management Plan shall be binding upon the Owner. The
Owner shall comply with and follow the requirements, policies and procedures set forth in the
Page 49 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
30
approved Marketing and Management Plan. The Marketing and Management Plan ma y be
amended from time to time by the Owner with the approval of the City Manager or designee.
19.94.050 Marketing to Prospective Tenants
A. The Marketing and Management Plan shall include two or more of the following methods
of advertising and marketing the Restricted Units, including at least one web-based method and at
least one offline method:
1. Distribution of City-approved flyers and blank applications to local organizations
in Chula Vista that service a wide range of prospective Applicants, such as social service
providers (e.g., food banks, legal-aid offices, emergency shelters, health clinics),
employers, advocacy organizations, city hall, and community gathering places such as
senior centers, recreation centers, libraries, schools, and places of worship.
2. Creation and maintenance of a website with clear information about the availability
of the Restricted Units, tenant eligibility requirements, a description of the application
process and the deadline for submission of applications.
3. Advertising with local radio stations, newspapers, and newsletters.
4. Advertising in commonly used real estate websites, such as Zillow, Trulia,
Craigslist or Apartments.com.
5. Posting advertisements in public places, such as on buses, trains, and billboards.
6. Providing a leasing office where Applicants may submit applications and ask
questions.
B. The Marketing and Management Plan shall include special outreach efforts to demographic
groups least likely to apply for the Restricted Units without special outreach efforts. “Least likely
to apply” means that there is an identifiable presence of a specific demographic group in Chula
Vista, the members of which are not likely to apply for Restricted Units without targeted outreach.
Reasons groups least likely to apply for the Restricted Units may include, but are not limited to,
insufficient information about housing opportunities, language barriers, or transportation
impediments Owners may utilize Department of Housing and Urban Development (HUD) Form
935.2A to identify demographic groups least likely to apply for Restricted Units. Outreach efforts
to demographic groups least likely to apply may include distributing flyers to organizations serving
people in demographic groups least likely to apply; posting flyers at grocery stores frequented by
people in demographic groups least likely to apply; publishing advertisements in languages spoken
by people in demographic groups least likely to apply; or providing marketing and advertising
materials in alternative formats for persons with disabilities.
C. Marketing efforts shall commence at least thirty (30) days prior to any Restricted Unit
being leased. The information on all marketing materials, including all flyers, websites,
advertisements, and other marketing materials, shall be subject to the review and approval of the
City Manager or designee.
Page 50 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
31
D. Persons that seek additional information from the Owner shall be provided with the income
requirements for the Restricted Units, initial monthly rents for the Restricted Units, eligibility
criteria, Project and Restricted Unit amenities, accessibility features for persons with disabilities,
and a description of the Lottery process. The full Marketing and Management Plan shall be made
available to the public upon request.
19.94.060 Application Process
A. Applications for Restricted Units shall:
1. Be available for in person pick-up and on the internet.
2. Be accepted online and by mail or drop-off at a physical location.
3. Be accessible for pickup and drop-off outside of regular business hours, including
evenings and weekends.
4. Be distributed and accepted for a period of no less than two weeks.
5. Describe the method to request a Reasonable Accommodation.
B. After receiving applications, Owner shall eliminate any duplicate applications,
substantially incomplete applications, and applications which fail to meet the application
requirements or requirements of the Restrictions.
19.94.070 Lottery and Waitlist
A. Selection of tenants of Restricted Units shall be made randomly by Lottery. The Lottery
may be held virtually or in person. The marketing and advertising materials shall include the
projected date and time of the Lottery. The City and members of the public may observe the
Lottery. The Owner shall record the Lottery proceedings and preserve the records confirming that
Applicants were selected randomly in conformance with the priorities set forth in Section
19.94.080.
B. Applicants selected for occupancy of a Restricted Unit shall be contacted by Owner using
the contact method set forth in the Applicant’s application. The Owner may set reasonable
deadlines for selected Applicants to submit income eligibility documentation and meet all
application and screening requirements.
C. Applicants who are not selected through the Lottery shall be placed on the Waitlist
maintained by Owner. Applicants may submit applications and join the Waitlist at any time. After
all Restricted Units are leased, then upon vacancy of each Restricted Unit, a new ten ant of such
Restricted Unit shall be selected in the order set forth on the Waitlist. Waitlist Applicants shall be
contacted at least once every other year using the contact method set forth in the Applicants’
applications to determine whether such Applicants desire to maintain their status as Applicants.
Applicants who are no longer interested or do not respond shall be removed from the Waitlist. If
no persons are on the Waitlist, the Owner shall follow the advertising and marketing requirements
Page 51 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
32
set forth in the Marketing and Management Plan and this Chapter and a new Lottery shall be held,
and a new Waitlist shall be created.
D. Special needs or supportive housing Projects may select Applicants via a referral system
approved by the City Manager or designee, such as a Coordinated Entry System (CES). Special
needs or supportive housing Projects that select Applicants via a referral system approved by the
City Manager or designee shall be exempt from this Chapter.
19.94.080 Priority Policy
A. The following levels of priority shall apply to all Applicants, subject in all circumstances
to applicable limitations imposed by law, including the Fair Housing Act. The following priorities
shall not be enforced where prohibited by law or any funder with respect to the Project.
1. First Priority.
a. Applicants which are referred by the City of Chula Vista and actively
engaged with the Housing and Homeless Services Department; or
b. Applicants which meet at least one of the following criteria: (i) Applicants
displaced from their primary residence of at least two years as a result of an action
of the City or any of its agencies, (ii) Applicants displaced from their primary
residence of at least two years as a result of a condominium conversion, (iii)
Applicants displaced from their primary residence of at least two years as a result
of the expiration of affordable housing covenants, or (iv) Applicants displaced from
their primary residence of at least two years as a result of closure of a mobile home
or trailer park community.
2. Second Priority. Applicants displaced from their primary residence as a result of a
no-fault just cause termination of tenancy from a rental unit subject to Chapter 9.65, if
such termination was noticed within two years of the date of application. Tenants shall
be required to provide proof of such termination in a form acceptable to the City to qualify
for such priority.
3. Third Priority.
a. Applicants with at least one household member whose primary place of
residence is in Chula Vista; or
b. Applicants with at least one household member who works within or has
been hired to work within the Chula Vista, as that person’s place of full-time
employment; or
c. Applicants with at least one household member who has received and
accepted a bona fide offer of employment within Chula Vista.
4. Fourth Priority. Any Applicants who do not meet the criteria for first priority,
Page 52 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
33
second priority or third priority.
19.94.090 Fees
Application fees shall not be charged until the Applicant has been selected from the Lottery or
Waitlist.
19.94.100 Reasonable Accommodations
A. The Owner shall review and respond to all Reasonable Accommodation requests in a
timely manner and provide Reasonable Accommodations to eligible Applicants.
B. Applicants and tenants shall not be required to disclose any disability, except as may be
necessary to process a request for Reasonable Accommodation. Any such disclosures of disability
status shall be kept confidential, except as needed for compliance purposes.
19.94.110 Record Retention
Owner shall preserve records of all marketing efforts, Lottery proceedings, Waitlist data, denials
of applications, grievances and appeals, and other marketing and tenant screening records for a
minimum period of five years.
19.94.120 Right to Modify
The City Manager or designee may waive or permit deviations from any provision of this Chapter
in the discretion of the City Manager or designee.
[Chapter 19.100 remains unchanged.]
Section III. Severability
If any portion of this Ordinance, or its application to any person or circumstance, is for
any reason held to be, invalid, unenforceable or unconstitutional; by a court of competent
jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or
unconstitutionality shall not affect the validity or enforceability of the remaining portions of the
Ordinance, or its application to any other person or circumstance. The City Council of the City
of Chula Vista hereby declares that it would have adopted each section, sentence, clause or
phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences,
clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional.
Section IV. Construction
The City Council of the City of Chula Vista intends this Ordinance to supplement, not
to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed
in light of that intent.
Section V. Effective Date
Page 53 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
34
This Ordinance shall take effect and be in force on the thirtieth (30th) day after its final
passage.
Section VI. Publication.
The City Clerk shall certify to the passage and adoption of this Ordinance and shall
cause the same to be published or posted according to law.
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing & Homeless Services City Attorney
Page 54 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
C:\Program Files\eSCRIBE\TEMP\15212568631\15212568631,,,Ordinance B - PAD in-lieu fees CVMC 17.10.docx
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
CHULA VISTA MUNICIPAL CODE CHAPTER 17.10
(“PARKLANDS AND PUBLIC FACILITIES”) TO EXEMPT
AFFORDABLE UNITS FROM PARKLAND ACQUISITION
AND DEVELOPMENT FEES
WHEREAS, new housing developments are required to provide usable open space,
pursuant to Chula Vista Municipal Code (“CVMC”) Chapter 19.28; and
WHEREAS, as an alternative method of compliance, housing developments may instead
be assessed an in-lieu fee, known as the Parkland Acquisition and Development (“PAD”) fee, to
be used for the offsite acquisition and improvement of parkland in Chula Vista, pursuant to CVMC
Chapter 17.10; and
WHEREAS, CVMC Chapter 17.10 currently allows that City Council may, by resolution,
waive all or any portion of the PAD in-lieu fee in the interests of stimulating the construction of
housing for low- and moderate-income families; and
WHEREAS, the production of housing affordable to low- and moderate-income
households is an area of critical need for Chula Vista residents, as reflected in the City of Chula
Vista’s Regional Housing Needs Allocation (“RHNA”) targets set forth in its 2021-2029 Housing
Element of the General Plan (the “Housing Element”); and
WHEREAS, PAD in-lieu fees are a constraint on the production of housing affordable to
low- and moderate-income families; and
WHEREAS, various affordable housing programs administered by the State of California
treat an exemption or waiver from development fees as a local monetary contribution to a project,
thereby increasing the competitiveness of such projects for state funding; and
WHEREAS, the current discretionary procedures for a waiver of such fees impose
administrative costs on City of Chula Vista staff and may create uncertainty and delays in project
completion, and could be improved through a streamlined process providing a categorical
exemption for 100% affordable housing projects; and
WHEREAS, for the reasons described above, establishing a categorical exemption for 100%
affordable housing projects serves a public purpose;
NOW, THEREFORE the City Council of the City of Chula Vista does ordain as follows:
Section I. Findings
The City Council of the City of Chula Vista finds that the proposed amendments to the
CVMC identified in this ordinance No. _______ qualifies for the “common sense” exemption
under State CEQA Guidelines Section 15061(b)(3). The action involves updates, modifications,
and organizational changes to the CVMC. Furthermore, the action of updating and modifying the
Page 55 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Ordinance
Page 2
CVMC with procedural and clerical changes will not result in an intensification of uses or a change
in development potential within the City above what already is permitted under the existing land
use and zoning policies of the CVMC that are being updated. Based on an analysis of the nature
and type of these procedural and clerical changes to the CVMC, there is a certainty that there is
not possibility that the action may have a significant effect on the environment.
Section II. The Chula Vista Municipal Code Section 17.10.070 is hereby amended to read
as follows:
17.10.070 In-lieu fees for land dedication and/or park development improvements.
A. In-Lieu Fees for Land Dedication. If, in the judgment of the City, suitable land does not
exist within the subdivision or within the development if it is not part of a subdivision, or for
subdivisions containing 50 lots or less, the payment of fees in lieu of land shall be required. In
such cases, the required fee(s) shall be based on the area to be dedicated as set forth in CVMC
17.10.040. However, when a condominium project, stock cooperative or community apartment
project exceeds 50 dwelling units, dedication of land may be required notwithstanding that the
number of parcels may be less than 50.
Where the City deems that a combination of dedication and payment, as provided in this chapter,
would better serve the public and the park and recreation needs of the future residents of a
particular subdivision or residential development, it may require such combination; provided,
however, the City Council may, by resolution, waive all or any portion of said dedication or in-
lieu fee requirements in the interests of stimulating the construction of housing for low- and
moderate-income families.
B. In-Lieu Fees for Park Development Improvements. If, in the judgment of the City, suitable
land does not exist within the subdivision or within the development if it is not part of a
subdivision, or for subdivisions containing 50 lots or less, the payment of fees in lieu of
developing improvements shall be required. In such cases, the amount of the required fee(s) shall
be based on the improvements required in CVMC 17.10.050. However, when a condominium
project, stock cooperative or community apartment project exceeds 50 dwelling units,
improvements may be required notwithstanding that the number of parcels may be less than 50.
Where the City deems that a combination of improvements and payment, as provided in this
chapter, would better serve the public and the park and recreation needs of the future residents of
a particular subdivision or residential development, it may require such combination.; provided,
however, the City Council may, by resolution, waive all or any portion of said improvements or
Page 56 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Ordinance
Page 3
in-lieu fee requirements in the interests of stimulating the construction of housing for low- and
moderate-income families.
In the event the City determines that the improvement of the parkland shall be delayed for a
substantial period of time after the parkland has been dedicated, the subdivider or building
permit applicant shall not be required to install such improvements, but instead shall pay the
required fee(s) for the value of improvements required in CVMC 17.10.050.
C. Land Uses Exempt from In-Lieu Fees. “Accessory Dwelling Units” and “Junior Accessory
Dwelling Units” as defined in CVMC 19.58.022 and 19.58.023, respectively, are exempt from
payment of in-lieu fees for parkland dedication and park development as they offer lower cost
housing supply to low- and moderate-income families. Housing developments in which 100% of
units, except any units reserved exclusively for use by staff, are restricted as affordable to
persons or families of low or moderate income, as defined in California Health and Safety Code
Section 50093, shall also be exempt from payment of in-lieu fees for parkland dedication and
park development, provided that such units are restricted through a regulatory agreement,
recorded in the official records of San Diego County, with the City of Chula Vista, the Chula
Vista Housing Authority, the California Tax Credit Allocation Committee, or the California
Department of Housing and Community Development. (Ord. 3424 § 3, 2018; Ord. 3303 § 1 (Att.
A), 2014; Ord. 2945 § 5, 2004; Ord. 2886 § 1, 2002).
Section III. Severability
If any portion of this Ordinance, or its application to any person or circumstance, is for any
reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction,
that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality
shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its
application to any other person or circumstance. The City Council of the City of Chula Vista
hereby declares that it would have adopted each section, sentence, clause or phrase of this
Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or
phrases of the Ordinance be declared invalid, unenforceable or unconstitutional.
Section IV. Construction
The City Council of the City of Chula Vista intends this Ordinance to supplement, not to
duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in
light of that intent.
Section V. Effective Date
This Ordinance shall take effect and be in force on the thirtieth day after its final passage.
Section VI. Publication
Page 57 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Ordinance
Page 4
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
Stacey Kurz Marco A. Verdugo
Director, Housing and Homeless Services City Attorney
Page 58 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
RESOLUTION NO. 2024-08
RESOLUTION OF THE CITY OF CHULA VISTA PLANNING
COMMISSION RECOMMENDING AMENDMENTS TO
CHULA VISTA MUNICIPAL CODE (CVMC) TITLE 19
(PLANNING AND ZONING) CHAPTER 19.90 (AFFORDABLE
HOUSING INCENTIVES) AND SECTION 19.58.460
(OBJECTIVE DESIGN STANDARDS FOR QUALIFYING
MULTIFAMILY RESIDENTIAL AND MIXED-USE
PROJECTS) AND THE ADOPTION OF CHAPTER 19.91
(INCLUSIONARY HOUSING), CHAPTER 19.93
(RESIDENTIAL FOR-SALE AFFORDABLE UNIT
REQUIREMENTS), AND CHAPTER 19.94 (MARKETING,
APPLICATION, LOTTERY, AND WAITLIST REQUIREMENTS
FOR AFFORDABLE RENTAL HOUSING PROJECTS)
WHEREAS, necessary amendments and additions to the Chula Vista Municipal Code
(CVMC) have been identified to help with the production of affordable housing, clarify
processes/regulations, and comply with State Law; and
WHEREAS, staff presented the draft code amendment concepts to the Housing and
Homeless Advisory Committee, which recommended adoption; and
WHEREAS, the Director of Development Services reviewed the proposed legislative
action for compliance with the California Environmental Quality Act (CEQA) and determined that
the action qualifies for the “common sense” exemption under State CEQA Guidelines Section
15061(b)(3). The action involves updates, modifications, and organizational changes to the CVMC
relating to section titles, definitions, groups covered under density bonus, percentages, etc .
Furthermore, the action of updating and modifying the CVMC with procedural and clerical
changes will not result in an intensification of uses or a change in development potential within
the City above what already is permitted under the existing land use and zoning policies of the
CVMC that are being updated. Based on an analysis of the nature and type of these procedural and
clerical changes to the CVMC, there is a certainty that there is no possibility that the action may
have a significant effect on the environment; and
WHEREAS, a hearing time and place was set by the Planning Commission to consider the
CVMC amendments and notice of said hearing, together with its purpose, was given by its
publication in a newspaper of general circulation in the City, at least ten (10) days prior to
the hearing; and
WHEREAS, the Planning Commission held a duly noticed public hearing to consider said
code amendments at the time and place as advertised in the Council Chambers, 276 Fourth Avenue,
before the Planning Commission and the hearing was thereafter closed.
DocuSign Envelope ID: E857835C-C195-4D77-8D3A-DACAF59B1F27
Page 59 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No. 2024-08
Page No. 2
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission hereby
recommends that the City Council of the City of Chula Vista adopt the proposed amendments, in
substantial form, to CVMC Chapter 19.90 and Section 19.58.460 and adoption of Chapter 19.93
and Chapter 19.94, related to the production of affordable housing for the City.
BE IT FURTHER RESOLVED THAT the Planning Commission hereby recommends that
the City Council of the City of Chula Vista adopt Chapter 19.91 with a modification to the required
threshold of projects subject to provisions of the ordinance from 10 units to 25, such that section
19.91.050.A. is amended to read “Residential or mixed-use development projects with fewer than
twenty five units shall not be required to meet the provisions of this Chapter”.
BE IT FURTHER RESOLVED THAT the Planning Commission hereby recommends that
the City Council of the City of Chula Vista find that the proposed amendments to the Chula Vista
Municipal Code (CVMC) identified in this Resolution qualifies for the “common sense”
exemption under State CEQA Guidelines Section 15061(b)(3). The action involves only updates
and modifications to the CVMC, including section titles, definitions, groups covered under density
bonus, percentages, etc. Furthermore, the action of updating and modifying the CVMC with
procedural and clerical changes will not result in an intensification of uses or a change in
development potential within the City above what already is permitted under the existing land use
and zoning policies of the CVMC that are being updated. Based on an analysis of the nature and
type of these procedural and clerical changes to the CVMC, there is a certainty that there is no
possibility that the action may have a significant effect on the environment.
BE IT FURTHER RESOLVED THAT a copy of this Resolution be transmitted to the
City Council.
[SIGNATURES ON THE FOLLOWING PAGE]
DocuSign Envelope ID: E857835C-C195-4D77-8D3A-DACAF59B1F27
Page 60 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No. 2024-08
Page 3
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing & Homeless Services City Attorney
PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 24th day of April 2024, by the following vote, to-wit:
AYES: Commissioners: Burroughs, Combs, Leal, Torres, Zaker, De La Rosa
NOES: Commissioners: None
ABSENT: Commissioners: Felber
___________________________
Michael De La Rosa, Chair
ATTEST
_______________________
Mariluz Zepeda, Secretary
DocuSign Envelope ID: E857835C-C195-4D77-8D3A-DACAF59B1F27
For
Page 61 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
RSG, INC.
Balanced Communities
(Inclusionary Housing)
Policy Study and
In-Lieu Fee Analysis
CITY OF CHULA VISTA
April 29, 2024
Page 62 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
[This page left intentionally blank.]
Page 63 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
BALANCED COMMUNITIES (INCLUSIONARY HOUSING) POLICY STUDY
AND IN-LIEU FEE ANALYSIS
City of Chula Vista
i
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................... 2
SECTION 1: BACKGROUND ....................................................................................................................... 5
SECTION 2: CHULA VISTA HOUSING MARKET AND PRODUCT TYPES .............................................. 9
SECTION 3: AFFORDABLE HOUSING COSTS ....................................................................................... 10
SECTION 4: POLICY DESIGN OPTIONS AND BEST PRACTICES ........................................................ 15
SECTION 5: ANALYSIS OF BALANCED COMMUNITIES POLICY AFFORDABLE UNIT PRODUCTION
OPTIONS AND IN-LIEU FEE LEVELS FOR THE CITY OF CHULA VISTA ............................................. 19
SECTION 6: CONCLUSION AND POLICY OPTIONS ............................................................................... 27
Page 64 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
EXECUTIVE SUMMARY
RSG, Inc. (“RSG”) prepared this Balanced Communities (Inclusionary Housing) Policy Study and
In-Lieu Fee Analysis (“Analysis”) for the City of Chula Vista (“City”) to support the City’s 2021-
2029 Housing Element (“Housing Element”) commitment to review the existing Balanced
Communities Policy (“Policy”) for feasibility in making progress towards the City’s Low- and
Moderate-income Regional Housing Needs Assessment (“RHNA”) allocation . The Policy was
adopted by the City Council in 1981 as part of the City’s Housing Element for the purpose of
increasing the diversity of housing prices and rents throughout the community and ensur ing that
a range of prices and rents continues over time . The Analysis also evaluates alternatives and
modifications to the Policy that may better address City goals without undermining the feasibility
of residential development.
In broad terms, the existing Policy requires 10% of total units in new residential developments to
be restricted and made affordable to households with Low- and Moderate-incomes1. At least 5%
of the units shall be designated for Low-income households and 5% of the units shall be designed
for Moderate-income households. The Policy applies to all residential developments of 50 units
or more. In addition to on -site unit production, the Policy can also be fulfilled by off -site unit
production, public benefit, alternative housing types, and payment of an in -lieu housing fee. The
in-lieu housing fee is currently set at $12,422 per unit and has not been changed since at least
2008.2
To evaluate the feasibility of the existing Policy and alternatives, RSG conducted a financial
analysis of five different prototypical residential developments in Chula Vista. RSG considered
the financial impact of inclusionary requirements under the Policy, as expressed by a generally
equivalent in-lieu fee that a developer could pay as an alternative to providing affordable units on -
site. RSG’s key recommendations are outlined below:
• On-Site Affordable Unit Production Requirement: RSG recommends no change to the
City’s existing inclusionary requirement that 10% of total units in a project be restricted as
affordable.
• Income-Level Targeting: RSG recommends no change to the existing income-level
targeting of 50% of units for Low-income households and 50% for Moderate-income
households.
• Threshold Project Size Subject to Policy: RSG recommends that all housing
development, or at least those with 10 units or more, contribute to affordable housing
1 California's Department of Housing and Community Development defines household income levels for
affordable housing as “Very Low-”, “Low-”, and “Moderate-income” for households that earn less than 50,
80, or 120% of the area median income for San Diego County, respectively.
2 City staff indicated that the in-lieu housing fee has not changed since 2008. However, City staff and
RSG were unable to locate documentation of the original adoption of the $12,422 per unit in-lieu fee.
Page 65 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
production through either the inclusion of affordable units, payment of a proportionate in-
lieu fee, or some other equivalent alternative means of compliance.
• In-Lieu Fee: RSG recommends fees of $8 per square foot of market-rate for-sale housing,
and $16 per square foot of market-rate rental housing. RSG also recommends revisiting
the in-lieu fee on a periodic basis in response to changing market conditions to ensure it
correlates to the actual projected cost of on-site affordable unit production and does not
make development infeasible .
• Ordinance and Resolution: RSG recommends adopting the Policy by ordinance, and the
in-lieu fee by resolution.
RSG completed the Balanced Communities Policy Study and In -Lieu Fee Analysis during the
second and third quarter of 2023 and it is reflective of then-existing market conditions. At that
time, some product types were marginally feasible due to higher interest rates, supply chain
impacts on building material costs, and other market forces that were expected to subside. RSG’s
recommendations are designed for general Policy feasibility over the long-term. However,
because market conditions will fluctuate, RSG recommends revisiting the Policy on a periodic
basis, such as within five years or with each Housing Element update.
Page 66 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
4
Report Organization
This Report contains six sections, as follows:
• Section 1 – Background: This section includes a summary of the current Policy, Chula
Vista’s housing needs, and the use of inclusionary housing programs to create affordable
housing in California.
• Section 2 – Chula Vista Housing Market and Product Types: This section provides an
overview of the residential market in and around the city, including prototypical types and
sizes of housing units, rental rates and sale prices, development costs, and projected
investment returns to developers.
• Section 3 – Affordable Housing Costs: This section examines the cost to produce
affordable housing units in the City. This is determined by the “affordable funding gap”,
which is the difference between the development cost for different unit types and sizes
and the amount which households of varying sizes and income levels can reasonably
afford to purchase or rent.
• Section 4 – Policy Design Options and Best Practices: This section answers common
questions about inclusionary housing programs and describes the range of program
design options.
• Section 5 – Analysis of Affordable Unit Production Options and In-Lieu Fee Levels: This
section details the calculations involved in determining a feasible production requirement,
as well as appropriate in -lieu amounts.
• Section 6 – Conclusion and Policy Options: This section summarizes RSG’s findings,
alternative options, and recommendations for a revised Policy.
Page 67 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
5
SECTION 1: BACKGROUND
Chula Vista’s Existing Balanced Communities Policy
The following summarizes the requirements of the Policy, based on the “Guidelines to the
Balanced Communities Policy”, as revised September 13, 2022:
On-site Affordable
Unit Production
Requirement
10% of all units must be restricted as affordable .
Affordability Mix At least 5% of units shall be designated for Low-income households,
and 5% of the units shall be designated for Moderate-income
households.
Incentive Credit: At the developer’s option, a developer may meet the
inclusionary requirement by providing Very Low- or excess Low-
income units. This is referred to as an Incentive Credit, and is
calculated as follows:
• 2.0 unit credit for every Very Low-income unit in-lieu of a
Moderate-income unit;
• 1.5 unit credit for every Low-income unit in-lieu of a Moderate-
income unit;
• 0.5 unit credit for every Very Low-income unit in lieu of a Low-
income unit.
Affordability Term For-rent units must be restricted for 55 years.
For-sale units must be restricted for 45 years.
Development Subject
to Policy
All new residential development of 50 units or more.
Exclusions Development projects with less than 50 units.
Alternatives • In-Lieu Housing Fee: Developers may choose to satisfy a portion
of their inclusionary requirement through payment of an in-lieu
fee, included a prorated in-lieu fee for partial units. The fee is
approved by the City Council.
Page 68 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
6
• Off-Site Unit Production: Off-site unit production may include
construction of new affordable units at a different site, acquiring
and rehabilitating existing market rate units and conversion to
affordable units, transfer of affordable housing credits from the
City or other developer, or provision of housing projects or
programs to meet the special needs of certain population groups
within the community.
• Public Benefit: The City may approve alternatives to the
construction of new inclusionary units where the proposed
alternative provides a more effective and feasible means of
satisfying the requirements of greater public benefit.
• Alternative Housing Types: When alternative housing types are
developed and measured in terms of rooms or beds provided,
rather than units, a conversion analysis from rooms or beds to
units will be required to determine the unit credits a developer will
receive.
Meeting Chula Vista’s Regional Housing Needs Assessment (RHNA) Allocation
The City’s affordable housing needs are largely defined by the RHNA allocation determined by
the San Diego County Association of Governments (“SANDAG”). RHNA determines the total
number of new homes that would need to be built in a region to support housing demand by
income category. The Housing Element identifies sites where new housing can be built to support
the City’s RHNA targets.
California's Department of Housing and Community Development ("HCD") defines household
income levels for affordable housing as “Very Low-”, “Low-”, and “Moderate-income” for
households that earn less than 50, 80, or 120% of the area median income (“AMI”) for San Diego
County (“County”), respectively. A corresponding “affordable housing cost” limit is set based on
these qualifying income limits, and generally may not exceed 30 % of household income. For
renters, housing cost includes rent plus utilities. For homeowners, housing cost includes mortgage
principal and interest, plus taxes, insurance, and HOA fees, if applicable .
The City’s RHNA for the 6th Housing Element Cycle period of 2021 through 2029 reflects a target
of 11,105 new residential housing units, of which 25% are for Very Low-income households, 16%
are for Low-Income households, 17% are for Moderate-Income households, and 42% are for
Above Moderate-income households. Table 1 shows this breakdown both exclusive and inclusive
of Above Moderate -income housing, which is not considered affordable housing. Note that the
RHNA allocations below exclude a category for “Extremely Low-income” housing, which is for
households that earn less than 30 % of the AMI, since this income level is not differentiated by
SANDAG but is grouped within the Very Low-income allocation in Table 1.
Page 69 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
7
Table 1: City's RHNA Allocation and Unit Production
As of October 25, 2023, the City’s actual unit production for the 2021-2029 RHNA cycle amounted
to 4,621 units, primarily attributed to the production of 4,172 units in the Above Moderate -income
category. The City has produced about 89% of the Above Moderate -income RHNA requirement
for the 2021-2029 Housing Element Cycle. The City has not produced any Moderate-income
units, but has produced 342 and 107 units, respectively, in the Low- and Very Low-income
categories during the current Housing Element Cycle . These represent about 19% of the Low-
and 4% of the Very Low-income RHNA allocations.
Absent land use regulations, incentives , and subsidies, the real estate development market will
seldom provide affordable housing on its own. Either market rate developers must be required to
provide it, or affordable developers must be subsidized by local, regional, state, or federal
programs or, more often, all of the above. Because cities have limited means to incentivize or
subsidize production of affordable housing, they are increasingly looking to multi -pronged and
integrated strategies to encourage the production of housin g at all income levels. The City’s Policy
causes the production of affordable units within a project or generates funding with an in -lieu fee
option to support a wider range of housing opportunities in the City.
Inclusionary Housing Programs in California
Inclusionary housing programs are enacted by cities and counties typically by an ordinance that
requires residential development applications , as a condition of approval, to include a portion of
the units constructed in a project to be set aside for purchase or rent by lower income households.
Inclusionary policies attempt to capture some of the value generated by new residential
development to provide a community benefit, using local land use controls to ensure that much -
needed affordable housing is produced along with market rate units. It is a flexible tool that can
be tailored to local circumstances. There is no one model policy, but rathe r several best practices
to consider when designing or updating an inclusionary program . An inclusionary housing
ordinance is only one part of an affordable housing strategy and should not be viewed as the sole
means to address the need for affordable housing, which may still require public subsidies and
other policies, programs, and tools.
Affordable housing units are typically restricted by covenants recorded on the property to ensure
that the units remain affordable for a long duration, usually 55 years for rentals and 45 years for
ownership housing. During the covenant term, it is not uncommon for units to be rehabilitated or
Affordability Lev el
RHNA
Alloc ation % of T otal
% of
Affor dable
Ac tual Unit
Pr oduc tion
Abov e Moder ate-Inc ome 4,667 42%4,172
Moder ate-Inc ome 1,911 17%30%0
Low-Inc ome 1,777 16%28%342
Very Low-Inc ome 2,750 25%43%107
Total 11,105 100%4,621
Sourc e: City of Chula Vis ta, SANDAG
Note: Ac tual Unit Produc tion as of 10/25/2023
Page 70 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8
refinanced and the covenants to be extended, often requiring additional public subsidies. In some
cases, such as when a land trust or other public entity retains ownership of the land or units, the
units can remain affordable in perpetuity.
Over 170 communities in California have enacted inclusionary housing ordinances or policies.
The City is one of ten inclusionary housing policies adopted by cities in the County. The County
of San Diego also has its own inclusionary housing policy for unincorporated areas of the County.
Legal Authority for Establishing Inclusionary Requirements and Affordable Housing Fees
In California, cities can regulate the use of buildings, structures, and land pursuant to Government
Code Section 65850. This includes the type of land uses, building heights, parking requirements,
and other improvements to property. In some cases, this can also include inclusionary housing
requirements on residential and mixed -use projects.
Inclusionary housing policies have been in place throughout California since the 1970s. However,
cities temporarily lost their ability to apply inclusionary policies to rental housing in 2009, when an
appellate court determined that inclusionary housing re quirements on new rental housing were in
violation of the Costa Hawkins Act, a state law that limits local rent control implementation. In
2017, Assembly Bill (“AB”) 1505 (Bloom) reinstated cities’ ability to adopt and enforce inclusionary
housing ordinances that apply to both for-rent and for-sale housing projects, thereby restoring a
tool for cities to facilitate affordable housing development in their communities. Under
Government Code Section 65850.01(a), HCD has the authority to review inclusionary housing
ordinances adopted after September 2017 that require more than 15 % of the units to be
affordable. The purpose of this review is to ascertain whether a jurisdiction is impairing the
production of market rate housing by requiring an excessive number of inclusionary units.
In 2015, the California Supreme Court ruled that inclusionary housing requirements are not an
“exaction” that needs to be justified by the impact of a project, like traffic and other development
impact fees. Inclusionary policies may be based on the existing and projected housing needs of
the region and other factors related to the regional welfare, and not based on a demonstrated
additional need for affordable housing generated by new residential development. This means
that a “nexus study” is not required under Government Code Section 66000, commonly known as
the Mitigation Fee Act.
Regardless of the threshold of inclusionary housing required, Government Code Section 65850(g)
requires that inclusionary housing ordinances contain alternative means for compliance,
including, but not limited to, the payment of in -lieu fees, land dedication, off-site construction, and
preservation of existing units. Most ordinances provide several such alternatives.
Although the City’s existing Policy is not an inclusionary housing ordinance subject to Government
Code Section 65850(g), it does offer alternative means for compliance .
Page 71 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
9
SECTION 2: CHULA VISTA HOUSING MARKET AND PRODUCT TYPES
RSG reviewed historical developments, the City’s existing zoning code and Sectional Planning
Area plans, and the residential development pipeline for the City and determined that the most
common development patterns in the City and surrounding market area include single-family
residences, condo or townhomes, and multi-family rental apartments at several different densities.
Accordingly, the product types used in this analysis include single -family residential development,
condo or townhome development, and multi-family rental apartment developments of varying
sizes and densities. Based on the data reviewed, discussions with City staff and some active local
developers, as well as RSG’s knowledge of the residential market, RSG believes that these
product types provide an accurate cross section of the potential residential developments affected
by the Policy.
RSG analyzed sales data for the 12 months beginning in July 2022 and ending in June 2023 to
develop assumptions about for-sale residential product types within the City. RSG utilized
ParcelQuest to obtain a database of all residential properties sold in the City during this time.
ParcelQuest utilizes County Assessor data to provide property information, including sales
information and property characteristics. For multi-family rental residential properties, RSG used
market analytics to develop assumptions. RSG relied on Costar market and submarket analytics
reports, which summarize market rental rates by number of bedrooms.
The five general market rate residential product types are summarized in Table 2 below, including
the typical development density, unit size, and development costs. The estimated development
costs were based on independent construction cost data obtained from CoreLogic Marshall and
Swift Valuation Services, which is a national comprehensive cost-estimating tool and
methodology that is updated monthly and serves the appraisal, development, and insurance
industries. The resulting assumptions represent averages for prototypical development types
seen in the Chula Vista market as shown in Table 2.
Table 2: Summary of Development Prototypes
Development Prot o types
Single
Family
Residential
Condo/
Townhome
Low
Density
Multifamily
Med
Density
Mult if amily
High
Density
Multifamily
Dwelling Units per Ac re 8.7 25.0 25.0 30.0 65.0
Lot Square Feet per Unit 5,000 1,742 1,742 1,452 670
Av er age Unit Squar e Footage 2,250 1,675 1,110 945 910
Dev elopment Cost per Square Foot $345 $322 $437 $433 $561
Dev elopment Cost per Unit $709,927 $512,614 $462,704 $411,557 $527,221
Sour c es : City of Chula Vis ta, Cos tar, Parc elQ ues t, CoreLogic , RSG
Page 72 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
10
SECTION 3: AFFORDABLE HOUSING COSTS
Monthly rents and sale prices for affordable housing units in California are usually established in
accordance with the California Health & Safety Code (“HSC”). Calculations for rental housing are
made pursuant to HSC Section 50053(b); calculations for owner-occupied housing are made
pursuant to HSC Section 50052.5(b). Affordable housing costs are a function of the AMI, adjusted
for family size appropriate to the unit, which is assumed to be one person in a studio unit, two
persons in a one-bedroom unit, three persons in a two -bedroom unit, four persons in a three-
bedroom unit, five persons in a four-bedroom unit, and so on.
The qualifying income limits for Extremely Low-, Very Low-, Low-, and Moderate-income
households adjusted for household size are established annually by HCD for each California
county in accordance with data provided by the United States Department of Housing and Urban
Development (“HUD”). For the County, the 2023 median income for a household of four is
established at $116,800. Table 3 below shows the range of the 2023 County AMIs by household
size and the qualifying income limits by category.
Table 3: San Diego County Income Limits
This Analysis incorporates the data in Table 3 to calculate affordable housing cost, rents, and
prices based on the income category of the household, adjusted for family size.
Affordable Rents and Rental Unit Values
The maximum affordable rental costs are calculated per HSC Section 50053(b) to reflect the
affordable housing cost by income category, adjusted for household size , net of a deduction for
utility allowance. The calculation of annual affordable rental housing cost may not exceed the
following:
• For Very Low-income households, the product of 30% times 50% of the AMI adjusted for
family size appropriate for the unit.
• For Low-income households, the product of 30% times 60% of the AMI adjusted for family
size appropriate for the unit.
• For Moderate-income households, the product of 30% times 110% of the AMI , adjusted
for family size appropriate for the unit.
Income Category AMI 1 2 3 4 5
Ex tremely Low 30%$24,525 $28,035 $31,530 $35,040 $37,845
Ver y Low 50%40,875 46,725 52,550 58,400 63,075
Low 60%49,050 56,070 63,060 70,080 75,690
Median 100%81,750 93,450 105,100 116,800 126,150
Moderate 110%89,925 102,795 115,610 128,480 138,765
Sour c es : Califor nia Depar tment of Hous ing and Community Dev elopment, RSG
Income Limit b y Househ old Siz e (Perso ns)
Page 73 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
11
The County 2023 maximum affordable monthly rents for each income category by unit size is
summarized in Table 4 below. Note that the amounts shown in Table 4 are prior to deducting a
utility allowance , vacancy, operating expenses, reserves, and real estate taxes .
Table 4: San Diego County Affordable Rent Limits
The value of an affordable rental unit is a function of the net income it provides the property owner.
This is determined by calculating the annual gross income generated by the unit reduced by
vacancies and operating expenses to determine th e net operating income (“NOI”). Lenders’
underwriting standards generally incorporate a 5% vacancy factor. Comparable annual operating
expenses (excluding real estate taxes) for affo rdable rental units are about $6 ,000 per unit per
year plus $250 per unit for annual reserve fund deposits. Real estate taxes are assumed at a rate
of 1.25% of unit value. Although most affordable apartments are constructed by non-profit housing
developers and are exempt from property taxes, for the purpose of this Analysis we have included
real estate taxes because the inclusionary units would be within a market rate development
subject to real estate taxes . The NOI for the affordable unit represents the affordable rent by
income category less vacancy, operating expenses, reserves, and real estate taxes.
To establish the value of affordable rental units, RSG followed industry practice of applying a
market capitalization rate, or “cap rate” to the projected NOI per unit. Market cap rates are derived
by real estate industry research firms which track sale prices and NOI for apartment projects. The
cap rate represents the relationship between NOI and sale value, and indicates a rate of return
an investor may expect to achieve from ownership of the property.
RSG assumed a 4.5% cap rate based on current market data . Table 5 below shows the resulting
capitalized value per rental unit for varying unit sizes and income levels based on affordable cost,
NOI, and market cap rates.
Income Cat egory 0 1 2 3 4
Ver y Low $1,022 $1,168 $1,314 $1,460 $1,577
Low 1,226 1,402 1,577 1,752 1,892
Moderate 2,248 2,570 2,890 3,212 3,469
Ren t Limit by Number of Bedrooms
Sour c es : Califor nia Department of Hous ing and Community Dev elopment,
RSG
Page 74 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
12
Table 5: Capitalized Value of Prototype Affordable Rental Units
Affordable Sale Prices
Maximum affordable sale prices are calculated per HSC Section 50052.5(b) to reflect the
affordable housing cost per income category, adjusted for household size, as a percentage of the
gross AMI, allowing for the deduction of related housing expenses .
The calculation of annual affordable for-sale housing cost may not exceed the following:
• For Very Low-income households, the product of 30% times 50% of the AMI, adjusted for
family size appropriate for the unit.
• For Low-income households, the product of 30% times 70% of the AMI , adjusted for family
size appropriate for the unit.
• For Moderate-income households, not less than 28% of the household’s gross income, or
more than the product of 35% times 110% of the AMI, adjusted for family size appropriate
for the unit.
Table 6 below identifies the County 2023 monthly affordable for-sale housing cost limits by income
category and unit size, as calculated in accordance with the above formulas.
Table 6: Monthly Affordable For-Sale Cost Limits
Income Cat egory 0 1 2 3 4
Very Low Annual NO I $3,467 $4,437 $5,340 $6,274 $6,648
Very Low Capitaliz ed Value $77,039 $98,602 $118,656 $139,426 $147,735
Low Annual NO I $5,500 $6,767 $7,954 $9,179 $9,786
Low Capitaliz ed Value 122,223 150,368 176,745 203,981 217,462
Moderate Annual NO I $15,666 $18,414 $21,024 $23,704 $25,474
Moderate Capitaliz ed Value 348,141 409,202 467,193 526,758 566,094
NO I and Capit alized Value by Number o f Bed roo ms
Sourc es : Califor nia Depar tment of Hous ing and Community Dev elopment, Cos tar , Real
Es tate Res earc h Corpor ation, CBRE, RSG
Inco me Categ ory 0 1 2 3 4
Very Low $1,022 $1,168 $1,314 $1,460 $1,577
Low 1,431 1,635 1,839 2,044 2,208
Moderate 2,623 2,998 3,372 3,747 4,047
Cost Limit by Numb er of Bedrooms
Sour c es : California Depar tment of Hous ing and Community
Dev elopment, RSG
Page 75 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
13
For this Analysis, affordable sale prices were calculated for single -family residences by
determining what mortgage payment a qualifying household could afford, after deducting from
affordable cost for estimated homeowner expense categories (i.e., taxes, insurance, maintenance
costs, and utilities). The Analysis assumes a 5% down payment and a 30-year amortized loan at
a 6.0% interest rate. The estimated affordable sale prices by income category and unit size are
summarized in Table 7 below.
Table 7: Affordable Sales Prices
Affordable Housing Development Funding Gap
The affordable housing development funding gap reflects the difference between the estimated
cost to develop the unit, which is based on constructi on costs in the market area, and the value
that a developer can expect to receive from the affordable unit, which is determined by the
affordable rent or sales price as shown above . Therefore, the development funding gap is an
indication of the net cost to create an affordable housing unit, which is funded either by a
developer under an inclusionary program or through a subsidy program or other source.
The cost per unit for affordable housing units is similar to those for market rate units, with an
exception perhaps for somewhat smaller unit sizes, and slightly lower quality materials and
finishes. The methodology herein reflects the assumption of all things being equal for each
prototype, such as unit size, construction costs, and land costs. RSG calculated a weighted
average affordable development funding gap for each of the prototypes by blending the affordable
values of the different bedroom unit sizes within each prototype project. Table 8 below shows the
development funding gaps for affordable units by product type and income level.
Income Category 0 1 2 3 4
Very Low $98,336 $108,276 $117,126 $126,495 $127,324
Low 160,418 179,414 196,941 215,193 223,128
Moder ate 341,490 386,900 429,732 473,897 502,555
Af fordable Price b y Number of Bedrooms
Sourc es : California Department of Hous ing and Community Dev elopment,
RSG
Page 76 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
14
Table 8: Affordable Development Funding Gap
The development funding gaps shown in Table 8 reflect the financial impacts associated with
producing these affordable units without the benefit of tax credits or other funding sources often
used by affordable housing developers, thus reflecting the full amount to produce an affordable
unit for each income category. Developers of affordable housing projects are often awarded
financial assistance from local, state, and federal funding sources , such as 4% or 9% Low-Income
Housing Tax Credits (“LIHTC”), which reduce the funding deficits and make the development
more financially feasible. However, these subsidies are not available to market rate developers
complying with inclusionary programs. Accordingly, this analysis uses the full funding gap
amounts as the initial basis for determining the cost of compliance with the Policy.
Single
Family
Residential
Co ndo/
Tow nhome
Lo w
Density
Multifamily
Med
Density
Mu ltifamily
High
Densit y
Mu ltifamily
Dev elopment Cos t per Unit $709,927 $512,614 $462,704 $411,557 $527,221
Ver y Low Affor dable Housing Value 127,324 126,495 116,865 110,706 110,634
Ver y Low Affor dable Housing Gap (648,893)(439,270)(393,000)(343,268)(476,636)
Low Affordable Hous ing Value 223,128 215,193 174,365 166,280 166,195
Low Affordable Hous ing Gap (553,089)(350,572)(335,500)(287,694)(421,076)
Moderate Affordable Housing Value 502,555 473,897 461,866 444,154 443,997
Moderate Affordable Housing G ap (273,662)(91,868)(47,999)(9,820)(143,274)
Sour c es: Califor nia Department of Hous ing and Community Dev elopment, City of Chula Vis ta, Cos tar ,
Par c elQues t, CoreLogic , Real Es tate Res ear ch Cor poration, CBRE, RSG
Page 77 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
15
SECTION 4: POLICY DESIGN OPTIONS AND BEST PRACTICES
As the City considers amending its Policy, RSG has provided the following design element
questions and a brief discussion of options and best practices based on the experience of other
communities with inclusionary requirements. The goal of the Policy should be to increase the
diversity of housing prices/rents throughout the community and ensure that a range of available
and affordable prices/rents continues over time. The Policy should be backed by data and
research that establishes both the need and feasibility of producing affordable housing in the
regional housing market.
o What percentage of affordable units should be included in a project?
Most inclusionary policies in California are in the range of 5 to 20 %, with 15% the most common
requirement. Four cities in San Diego County have 15% inclusionary requirements, another four
cities in San Diego County and the County (applicable to unincorporated developments) have
10% inclusionary requirements, while two cities in San Diego County have 20% inclusionary
requirements. The inclusionary percentage a community establishes is dependent on its
affordable housing needs, local market conditions, financial incentives available, and the mix of
affordability required. Ultimately, the percentage should not be so high that the cost of providing
the affordable units making the entire project infeasible and thus discourages most housing
development.
o At what income levels should affordable units produced under the Policy be sold or rented?
There is wide variability among communities for the required target distribution of units by income
level within the overall inclusionary percentage. For some jurisdictions, the distribution among
income levels may be set to approximate their RHNA allocation. For many others, the inclusionary
requirement is split only between Low- and Very Low-Income levels (for example, if 15% of the
total units are to be affordable, 10 % may be for Low-income and 5% for Very Low-income
households). Moderate-income units may be included in requirements for some communities,
especially those with very high cost and relatively higher incomes ; in many other markets,
unrestricted market rate housing is being produced that is already naturally affordable to
Moderate-income households. In Chula Vista, for example, the value of a condo or townhome
affordable to Moderate-income households exceeds the cost to build the condo or townhome,
resulting in a feasibility surplus. Some communities include a target for Extremely Low-income
households but, given the high level of subsidy required, housing at this income level is generally
better served by other programs and targeted funding sources. Lastly, many inclusionary
programs have different i ncome level targeting for ownership and rental housing, reflecting the
differences in development economics for each product type.
o Should the Policy’s affordable unit production requirement change over time?
Housing markets are constantly changing, including rents, sale prices, and construction and
financing costs. Developer profitability rises and falls over time based on a variety of market
factors, and required returns can vary from one developer to the next . The cost of compliance
with an inclusionary policy may be only a relatively minor consideration among many factors for
Page 78 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
16
development feasibility. A modest inclusionary requirement that is evaluated to be feasible when
adopted should likely remain feasible over time. It is also possible that , when profitability
increases, a higher inclusionary requirement could be feasibly absorbed by the development
community. Periodic review can determine how feasibility is impacted by market changes. It can
also allow the community to assess whether changes in the target income levels may be
necessary to better meet housing targets. Every three to five years is a reasonable review period.
Coupling the review with the update to the City’s Housing Element is another good option.
o What alternative methods of compliance should be provided?
In California, state law requires that alternative methods of compliance with inclusionary housing
requirements be provided to developers. Common alternatives include in -lieu fees, off-site
construction, land donation, and the acquisition and rehabilitation of existing units.
In-lieu fees are generally paid into a local affordable housing trust fund to finance future
construction of affordable housing at other locations in the community. The greatest advantage
of in-lieu fees is that they provide a local funding source that can be leveraged with state and
federal funds that otherwise would not be available to a developer, allowing an even greater
number of affordable units to be built, often at much deeper affordability levels. By leveraging
local affordable housing trust funds, developers may be able to produce four to six times more
units than would otherwise be developed as inclusionary housing units.
o How should the amount of an in-lieu fee be determined? Should it be set as a per unit fee or
a per square foot fee?
As a starting point, the in-lieu fee should reflect the true cost of producing on-site units. If the fee
is lower than the actual cost of production, developers are very likely to pay it rather than
designate any units in the project as affordable. Even at an equivalent or comparable cost,
developers are still more likely to pay the fee rather than assume long -term management of
affordability covenants associated with a small fraction of units.
The cost of providing an inclusionary unit will vary by which income levels are required and the
size and type of unit. A range of such costs can be projected using current market economics and
prototypical development. A standardized in-lieu fee can only approximate these costs based on
the range of policy options being included.
The in-lieu fee should be reviewed and revised over time to reflect changes in construction costs,
inflation, and other market factors. While an inclusionary policy is usually adopted by an
ordinance, the in-lieu fee is best adopted by resolution since ame nding the ordinance on a regular
basis can be more costly and time -consuming.
In-lieu fees are often denoted as the amount a developer would need to pay per market rate unit
in a project to meet its obligation, rather than the net cost of each inclusionary unit that otherwise
would be required to be built on-site. In other words, if there was an inclusionary requirement of
10%, the in-lieu fee per market rate unit multiplied by ten should approximate the average net
cost of providing one inclusionary unit. Establishing the in -lieu fee on a per-market-rate-unit basis
is quite common because developers typically evaluate development projects in terms of cost per
Page 79 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
17
unit. However, the drawback with establishing a fee on a per-market-rate-unit basis is that it does
not adjust for the size of units in a project and can lead to inequities in implementation . For
example, a developer creating large multi-bedroom homes would pay the same in-lieu fee per
unit as a developer of small one-bedroom or studio units, even though the construction costs and
affordable funding gaps are widely different. RSG typically recommends establishing the in-lieu
fee on a per square foot basis that can then be multiplied by the total residential square footage
in a project to calculate the inclusionary obligation. Conversely, establishing the in-lieu fee on a
per unit basis can simplify program administration.
o What is the process or standard for requesting a waiver or reduction of the requirement?
The Policy should provide a clear and specific process for a developer to request a waiver or
reduction, and the standards by which the request will be evaluated. The process should only be
used in rare cases, and the developer should be required to demonstrate economic hardship (the
inability to achieve a profit), which can be verified by an independent third -party review.
o What other communities in the region have inclusionary housing requirements?
When setting an affordable unit production requirement, it can be helpful to look at surrounding
communities with similar policies so the City does not price itself out of new development. RSG
researched communities in the County and determined that Chula Vista is one of ten cities in the
County that has inclusionary housing requirements. The County of San Diego also has
inclusionary housing requirements for unincorporated areas within the County.
Table 9 provides examples of inclusionary housing policies in ten San Diego County cities and
the County for reference purposes. Several of these communities are in different housing markets,
and thus the comparability of cities in closer proximity to Chula Vista should be weighted
accordingly. The jurisdictions are listed in order of in-lieu fee per rental unit, which may or may
not approximate the true cost of on-site compliance. For jurisdictions that have set a per market
rate unit fee, RSG has estimated that same fee on a per square foot basis for comparison
purposes using Chula Vista prototypes. Similarly, for jurisdictions with a per square foot fee, RSG
estimated that fee on a per market rate unit basis.
Page 80 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
18
Table 9: Inclusionary Requirements in Other Jurisdictions
Last
Update Rent Sale Rent Sale Rent Sale Rent Sale Rent Sale
Poway 2018 15%15% or 20%1 unit 1 unit VL Low, Mod Per Unit $0.53*$0.22*
Coronado 1993 2 units 2 units Low, VL Moderate Per Unit $7*$3*
San Marcos In Progress 1 unit 1 unit Per Unit $10*$4*
Chula Vista (Existing)1983 50 units 50 units Per Unit $13*$6*
Carlsbad 2022 7 units 7 units Varies $14,175*$8,515 $15 $4*
Chula Vista (Recommended )In Progress 1 unit 1 unit Per SF $15,120*$18,000*$16 $8
Encinitas 2021 7+ units 7+ units Per SF $18,900*$45,000*
Oceanside 2022 3+ units 3+ units Low Low, Mod Per SF $18,900*$45,000*
San Diego 2023 10%10% or 15%5 to 10 units (2)2+ units Low, VL Med, Mod Per SF $23,625*$56,250*
San Diego County 2023 10 units 10 units Low, VL Med, Mod Per SF $23,625*$56,250*
Solana Beac h 2023 4+ units 4+ units Per SF $25,099*$59,760*
Del Mar 2018 2 units 2 units Varies $33,075*$26,250 (4)$35 $12*
(*) Asterisk indicates a c alc ulated value using medium dens ity multifamily prototy pe s quare footage (945 sf) and s ingle family residential prototype s quare footage (2,250 sf)
(1) Figure shows mos t c ommon in-lieu fee after negotiations
(2) Minimum units v aries by Zoning designation
(3) Required number of units for each AMI category v aries by project size
(4) Figure shows in-lieu fee per lot created
Note: List is s orted by in-lieu fee per unit for rental products.
$27
$25
$25
$20
$20
In-Lieu Fee per SFIn-Lieu Fee per UnitAMI RequirementsMinimum Unit s
10%
15%Determined by City
Low (5%), Mod (5%)
$9,300 (1)
$500
$12,422
$7,000
City Fee Type
20%
20%
15%
Inclusionary Req
10%
10%
10%
10%
15% or 20%
Low or VL
Low or VL
Low, VL, EL (3)
Low
Low (5%), Mod (5%)
Page 81 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
19
SECTION 5: ANALYSIS OF BALANCED COMMUNITIES POLICY AFFORDABLE UNIT
PRODUCTION OPTIONS AND IN-LIEU FEE LEVELS FOR THE CITY OF CHULA VISTA
This section discusses the potential cost of compliance under a range of program design options
and concludes with RSG’s recommendation s for an amended City Policy, ordinance, and in-lieu
fee amounts.
RSG evaluated both the existing Policy and several permutations of program design options that
the City might consider, as summarized in Table 10 below.
Table 10: Range of Program Policy Options Evaluated
On-Site Affordable Unit
Production Percentage
10%
(Existing Policy)
15%
Income Level Targeting 50% Low and 50%
Moderate (Existing Policy) RHNA allocation based
Fee Basis Per market rate unit
(Existing Policy) Per square foot
Variable or Fixed Fee Fixed fee for all types and
tenure (Existing Policy)
Variable by tenure
(for-sale vs. for-rent)
Using the program policy options listed in Table 10, RSG evaluated the feasibility of 4 different
alternative design combinations in this Report, as outlined in Table 11.
Page 82 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
20
Table 11: Program Design Options
Design Option
On-Site
Affordable Unit
Production
Percentage
Income Level
Targeting Fee Basis
Variable or
Fixed Fee
Existing Balanced
Communities Policy 10% 50% Low and
50% Moderate Per unit Fixed fee for all
types and tenure
Design Option 1 10% 50% Low and
50% Moderate Per square foot
Variable by
tenure (for-sale
vs. for-rent)
Design Option 2 15% 50% Low and
50% Moderate Per square foot
Variable by
tenure (for-sale
vs. for-rent)
Design Option 3 10% RHNA allocation
based Per square foot
Variable by
tenure (for-sale
vs. for-rent)
Design Option 4 15% RHNA allocation
based Per square foot
Variable by
tenure (for-sale
vs. for-rent)
RSG used the affordable development funding gap amounts by prototype from Table 8 to
calculate equivalent in-lieu fees for the different program design options noted in Table 10 and
11. First, RSG applied the income level targeting design options (RHNA, or 50% Low and 50%
Moderate) across the affordable housing gaps calculated in Table 8, resulting in a weighted
affordable housing gap for the different options. The calculation of weighted affordable housing
gap for different income targeting and prototype combinations is presented in Table 12.
Page 83 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
21
Table 12 : Income Level Targeting Weighted Affordable Housing Gap
The weighted affordable housing gaps presented in Table 12 are further adjusted for the varying
design option levels of on-site affordable unit production percentage (10% or 15%). The product
resulting from multiplying the weighted affordable housing gaps by the affordable unit production
percentage represents the weighted average per-market-rate-unit in-lieu fee that a project might
be charged, as presented in Table 13.
Table 13: Calculated In-Lieu Fee per Unit
Single
Family
Residential
Cond o/
Tow nho me
Low
Density
Multifamily
Med
Density
Multif amily
High
Densit y
Mult ifamily
Very Low Affor dable Hous ing Gap ($648,893)($439,270)($393,000)($343,268)($476,636)
Low Affordable Hous ing G ap (553,089)(350,572)(335,500)(287,694)(421,076)
Moderate Affor dable Hous ing G ap (273,662)(91,868)(47,999)(9,820)(143,274)
Polic y Inc ome Lev el Targeting
Des ign O ptions 1 and 2: 50% low/50% mod
Ver y Low Inc ome 0%0%0%0%0%
Low Inc ome 50%50%50%50%50%
Moder ate Inc ome 50%50%50%50%50%
Weighted Affor dable Hous ing G ap ($413,376)($221,220)($191,749)($148,757)($282,175)
Des ign O ptions 3 and 4: RHNA
Ver y Low Inc ome 43%43%43%43%43%
Low Inc ome 28%28%28%28%28%
Moder ate Inc ome 30%30%30%30%30%
Weighted Affor dable Hous ing G ap ($511,069)($311,668)($274,722)($228,951)($362,348)
Sourc es : RSG
Single
Family
Residential
Condo /
Townhom e
Low
Density
Mult ifamily
Med
Density
Multif amily
High
Density
Multifamily
Weighted Affordable Hous ing Gap
Design O ptions 1 and 2: 50% low/50% mod ($413,376)($221,220)($191,749)($148,757)($282,175)
Design O ptions 3 and 4: RHNA ($511,069)($311,668)($274,722)($228,951)($362,348)
Calculated In-Lieu Fee per Unit
Affordable Unit Produc tion Percentage: 10%X 10%X 10%X 10%X 10%X 10%
Design O ption 1: 10%, 50% low/50% mod ($41,338)($22,122)($19,175)($14,876)($28,217)
Design O ption 3: 10%, RHNA target ($51,107)($31,167)($27,472)($22,895)($36,235)
Affordable Unit Produc tion Percentage: 15%X 15%X 15%X 15%X 15%X 15%
Design O ption 2: 15%, 50% low/50% mod ($62,006)($33,183)($28,762)($22,314)($42,326)
Design O ption 4: 15%, RHNA target ($76,660)($46,750)($41,208)($34,343)($54,352)
Sourc es: RSG
Page 84 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
22
RSG then translated these per unit in-lieu fees to a per-square-foot basis for each of the
prototypical housing development types. The in-lieu fee per unit is divided by the prototype unit
square footage, taken from Table 2. The quotient represents the in-lieu fee per square foot, as
illustrated in Table 14.
Table 14: Calculated In-Lieu Fee per Unit and per Square Foot
RSG calculated prospective in-lieu fees that are roughly equivalent to the cost of on -site
compliance based on the on-site affordable unit production percentage of units, the income level
targeting mix, and the projected funding gap. These costs will be different for each prototype due
to their differing development economics. This approach to calculating potential in-lieu fees is an
important departure from the existing Balanced Communities Policy which had a set a per unit in-
lieu fee that had not been adjusted for many years and was not calibrated to the actual cost of
compliance for different development types or with regard to changing market conditions. In fact,
our analysis indicates that the existing Policy in-lieu fee is well below the actual projected cost of
on-site compliance with the inclusionary requirement. RSG recommends setting the in-lieu fee to
be more closely aligned with the actual projected cost of on -site compliance so that it is truly an
equivalent alternative.
Developers are typically motivated to seek the least costly path of compliance. When the adopted
in-lieu fee is less than the actual projected cost to include affordable units on-site, developers are
more likely to pay the in-lieu fee than provide units on site. Conversely, when the adopted in-lieu
fee is greater than the actual projected cost to include units on-site, developers are more likely to
include affordable units in their projects. With an in-lieu fee that is more closely aligned with the
actual projected cost of including units on-site, developers will consider project-specific
economics and other factors (such as community support and goodwill) to determine how they
Single
Family
Resident ial
Condo/
Townhome
Lo w
Density
Mu ltifamily
Med
Density
Multifamily
High
Densit y
Mult ifamily
Prototy pe Unit Square Feet 2,250 1,675 1,110 945 910
Des ign O ption 1: 10%, 50% low/50% mod
Calc ulated In-Lieu Fee per Unit ($41,338)($22,122)($19,175)($14,876)($28,217)
Calc ulated In-Lieu Fee per Square Foot ($18)($13)($17)($16)($31)
Des ign O ption 2: 15%, 50% low/50% mod
Calc ulated In-Lieu Fee per Unit ($62,006)($33,183)($28,762)($22,314)($42,326)
Calc ulated In-Lieu Fee per Square Foot ($28)($20)($26)($24)($47)
Des ign O ption 3: 10%, RHNA target
Calc ulated In-Lieu Fee per Unit ($51,107)($31,167)($27,472)($22,895)($36,235)
Calc ulated In-Lieu Fee per Square Foot ($23)($19)($25)($24)($40)
Des ign O ption 4: 15%, RHNA target
Calc ulated In-Lieu Fee per Unit ($76,660)($46,750)($41,208)($34,343)($54,352)
Calc ulated In-Lieu Fee per Square Foot ($34)($28)($37)($36)($60)
Sourc es : RSG
Page 85 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
23
choose to comply. Some cities may intentionally set an in-lieu fee amount that is lower than the
actual projected cost of on-site compliance with the expectation that most developers will pay the
fees rather than include affordable units on-site. Those cities will aggregate and contribute those
funds towards projects that leverage regional, state, and federal funding sources to produce a
greater number of affordable units at deeper affordability levels.
Feasibility of Prototypes, Existing Policy, and Alternative Policy Design Options
In the next phase of this Analysis, RSG evaluated the impact of the range of design options on
the feasibility of development. This is an essential step before setting an inclusionary percentage
requirement and associated in -lieu fee because setting them too high may deter residential
development altogether, thereby increasing housing costs and negating the purpose of the Policy.
To avoid this unintended consequence, the City can modulate program requirements or reduce
the in-lieu fee to mitigate the cost impacts on development.
As a measure of feasibility, RSG evaluated two common benchmarks used in real estate
development investment decisions: projected “profit margin” and “yield on cost”. For evaluating
ownership housing product type feasibility, “profit margin” is defined as development project value
divided by development costs. As a rule of thumb, projected profit margin should exceed market
cap rates by 1.5 to 2.5%. For multifamily rental product types, “yield on cost” is defined as
stabilized net operating income as a percent of development costs . As a rule of thumb, the
projected yield on cost should exceed market cap rates by 1.0%.
For the purpose of this Analysis, RSG evaluated the feasibility of each for-sale housing prototype
using a 7% minimum profit margin. With current cap rates for multifamily residential projects
ranging from 4.25 to 5.5%, projected profit margins should range from 5.75 to 8% for ownership
prototypes to be deemed feasible after applying the in-lieu fee.
For the purpose of this Analysis, RSG evaluated the feasibility of the rental housing prototypes
using a 5.5% minimum yield on cost. Based on current cap rates for multi -family residential
projects, projected yield on cost should range from 5.25 to 6.5%.
Using the metrics described above, RSG evaluated the feasibility of each of the residential
prototypes (a) without any inclusionary requirement, (b) under the existing Policy, and (c) using
the weighted costs of compliance under each of the potential design options illustrated in Tables
10-14. RSG’s analysis resulted in the following findings, as further illustrated in Table 15 below:
• All residential prototypes are currently feasible without an y inclusionary requirement.
• A 15% on-site affordable unit production percentage is infeasible for all prototypes.
• A 10% on-site affordable unit production percentage is feasible for multifamily prototypes,
but infeasble for ownership prototypes. This also indicates that on-site compliance with
the existing Balanced Communities Policy is currently infeasible for ownership residential
types.
Page 86 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
24
• The existing Policy in-lieu fee is feasible currently for all residential prototypes. However,
as described earlier, the existing fee is outdated and does not match the actual projected
cost of on-site compliance.
• The maximum in-lieu fee that is projected to allow for feasible development under current
market conditions would be $8 per square foot and $16 per square foot, respectively, for
ownership and rental prototypes . With the exception of the medium density multifamily
prototype, all of the recommended in -lieu fee amounts would be less than the average
cost of on-site compliance. The City may wish to consider phasing in increases to these
fee levels after the real estate development market improves so that they more closely
approximate the projected cost of compliance with the on-site 10% inclusionary
requirement.
Page 87 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
25
Table 15: Feasibility of Protypes, Existing Policy, and Recommended Policy
Single
Family
Residential
Condo/
Tow nhome
Low
Density
Multifamily
Med
Density
Multifamily
High
Density
Multifamily
Prototype Feasibility
Pr ototype Unit Square Feet 2,250 1,675 1,110 945 910
Unit Mark et Value $786,683 $564,094 $654,000 $580,000 $765,333
Dev eloper Cos t per Unit $709,927 $512,614 $462,704 $411,557 $527,221
Dev eloper Retur n per Unit $76,756 $51,479 $191,296 $168,443 $238,113
Pr ofit Margin (For-Sale)10.81%10.04%
Yield on Cos t (For-Rent)6.36%6.34%6.53%
Minimum Profit Margin/Yield on Cos t 7.00%7.00%5.50%5.50%5.50%
Feasibility Test Yes Yes Yes Yes Yes
Existing Balanced Communities Policy
On-Site Compliance Cost per Mark et Rate Unit*$41,300 $22,100 $19,200 $14,900 $28,200
On-Site Compliance Cost per Square Foot*$18 $13 $17 $16 $31
Pr ofit Margin with O n-Site Complianc e 4.7%5.5%
Yield on Cos t with On-Site Complianc e 5.8%5.8%5.8%
Feasibility Test No No Yes Yes Yes
Ex is ting In-Lieu Fee per Mark et Rate Unit $12,440 $12,440 $12,440 $12,440 $12,440
Ex is ting In-Lieu Fee per Square Foot*$6.00 $7.00 $11.00 $13.00 $14.00
Pr ofit Margin with Existing Fee (For -Sale)8.90%7.44%
Yield on Cos t with Ex is ting Fee (For-Rent)6.19%6.16%6.38%
Minimum Feasibility Threshold 7.00%7.00%5.50%5.50%5.50%
Feasibility Test Yes Yes Yes Yes Yes
Recommended Balanced Communities Policy
10% of all units , 50% low/50% mod
Rec ommended In-Lieu Fee Per Square Foot $8.00 $8.00 $16.00 $16.00 $16.00
Rec ommended In-Lieu Fee per Mark et Rate Unit*$18,000 $13,400 $17,760 $15,120 $14,560
Total Av erage Unit Cost with Recommended Fee $727,927 $526,014 $480,464 $426,677 $541,781
Dev eloper Retur n per Unit with Rec ommended Fee $58,756 $38,079
Pr ofit Margin (For-Sale)8.07%7.24%
Yield on Cos t (For-Rent)5.77%5.81%5.83%
Minimum Feasibility Threshold 7.00%7.00%5.50%5.50%5.50%
Feasibility Test Yes Yes Yes Yes Yes
* Thes e are estimates c alc ulated based on prototy pes and av erages .
Sources : City of Chula Vista, California Department of Hous ing and Community Dev elopment, Cos tar, Parc elQ uest, CoreLogic ,
Real Estate Researc h Corporation, CBRE, RSG
Page 88 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
26
Based on the foregoing Analysis, RSG recommends an inclusionary housing policy with:
• A 10% on-site production requirement;
• Targeting 50% of affordable units for Low-income households and 50% for
Moderate-income households;
• An in-lieu fee of $8 per square foot for ownership product types; and
• An in-lieu fee of $16 per square foot for rental product types.
Page 89 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
27
SECTION 6: CONCLUSION AND POLICY OPTIONS
The following presents a summary of RSG’s policy recommendations:
Policy Recommendations
On-site affordable
unit production
requirement
RSG recommends maintaining the on-site affordable unit
production requirement of 10% at this time for all residential types.
Although feasibility may be challenging under current market conditions
for ownership prototypes to provide on-site units at this level, such
conditions should improve over time. By setting an in-lieu fee that is
relatively lower than the cost of on-site compliance, new development
can remain feasible.
Income-Level
Targeting
RSG recommends an affordability mix of 50% moderate and 50%
low for for-sale and rental product types.
The existing Policy also allows developers of all housing types, when
opting for on-site affordable unit production, to provide 50% moderate
and 50% low income units on site.
Project Threshold
Size Subject to
Policy
RSG recommends that all housing development, or at least
developments with 10 units or more, contribute to affordable
housing production through either the inclusion of affordable units
or payment of a proportionate in-lieu fee.
The existing Policy exempts residential developments with less than 50
residential units. Based on research of other inclusionary housing
policies in the County, and RSG’s experience with inclusionary housing
throughout the State of California, it is uncommon to exempt
developments of less than 50 residential units. Some cities exempt
developments of 10 units or less from the on-site affordable unit
production requirement, while still requiring the proportional payment of
an in-lieu fee for partial units.
Exemptions RSG recommends the following exemptions:
• Non-residential development
• Projects for which the City enters into a Development Agreement
that includes inclusionary housing obligations and alternative
community benefits
Page 90 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
28
• Affordable housing developments, and residential development
undertaken by a public entity other than the City (ie Housing
Authority)
• Homeless shelters, community care facilities, health care facilities,
and single room occupancy units
• Replacement dwelling units for units that were demolished or
destroyed within the five years prior to the construction of the new
unit
• Accessory dwelling units
• Home remodels and additions
• Density bonus units
• Mobile homes
• Any development project otherwise exempt under State law
Alternatives to On-
Site Affordable Unit
Production
The existing Policy outlines several alternatives to on-site affordable unit
production, including payment of the in-lieu fee, off-site unit production
(by construction of new units, acquisition and rehabilitation of existing
units, transfer of credits from the City or another developer, or provision
of housing projects or programs to meet the special needs of certain
population groups within the community) and public benefits that provide
a more effective and feasible means of satisfying the requirement. R SG
recommends considering the following additional alternatives to on -site
production:
• Land dedication within the development project area to an
affordable housing non-profit developer or the City
• Other means subject to City Council approval
In-Lieu Fee Single Family/Condo $8 per square foot; and Multi-Family $16 per
square foot.
Presently, the in-lieu fee is $124,000 per required affordable unit (or
$12,400 per market rate unit). RSG recommends several changes to
the in-lieu fee, as follows:
Page 91 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
29
• Set the fee per square foot of residential space. Per square foot
in-lieu fees encourage smaller and more efficient units, while
increasing density.
• RSG recommends revisiting the in -lieu fee on a periodic basis,
such as every 3 to 5 years or as market conditions change
significantly. Alternatively, the fee may be reviewed and adjusted
in accordance with Housing Element cycles.
• The Policy should be adopted by the City Council as an
Ordinance, while the in-lieu fee should be adopted as a
Resolution. This helps to streamline and separate amendments
to the fee alone without reconsidering the full program and
policies.
Phased In Fee
Increases
The recommended in-lieu fee of $8 for single family and condo
prototypes is below the current projected cost of providing 10% of
affordable units on-site. The fee is set to allow such projects with a
feasible option in-lieu of on-site compliance. RSG recommends
considering a phase-in of fee increase(s) over time, and as market
conditions improve, so that the in-lieu fee for ownership residential
products better approximates the actual projected cost of on -site
compliance (currently estimated at $13-18 per square foot). Phase in of
increases also allows the residential development market to adjust the
changes over time.
On-Site Unit
Production
Development
Standards
The City may consider the following requirements for on-site unit
production:
• Affordable units should be reasonably dispersed throughout the
residential development.
• Affordable units should be proportional, in number of bedrooms,
square footage, and location, to the market rate units.
• Affordable units should be comparable to the market rate units in
size, design, materials, finish quality, and appearance.
• Affordable units should be permitted the same access to project
amenities and recreational facilities as the market rate units.
• Affordable units should be constructed concurrent with, or before
the construction of the market rate units.
Page 92 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
30
• For phased projects, a proportional share of the required
inclusionary units shall be provided within each phase of the
residential project.
Waivers or
Reductions in
Requirements
At the discretion of the City Council or City Administrator, when it is
determined that it is infeasible for a residential development to meet the
on-site production requirement due to costs, or other factors such as
health and safety issues, the City should require the developer to show
economic hardship, as verified by an independent third -party review, at
the developer’s cost.
Incentive Credit
Amendment
The Incentive Credit formula or unit credit under the existing Policy
requires revision.
The incentive credit encourages developers to provide households with
deeper affordability levels while reducing the overall required affordable
housing obligation for the developer. Under the existing incentive credit
option, the following unit credit is provided:
• 2.0 unit credit for every Very Low-income unit in-lieu of a
Moderate-income unit
• 1.5 unit credit for every Low -income unit in-lieu of a Moderate-
income unit
• 0.5 unit credit for every Very Low-income unit in-lieu of a Low-
income unit. As illustrated below, the 0.5 unit credit for Very Low -
income units in-lieu of Low-income units results in a unit
obligation that is double the original obligation.
The developer’s reduced obligation is reduced by dividing the unit
obligation by the unit credit. For example, a developer with a 300-unit
residential project has an inclusionary unit obligation of 30 units (10%),
including 15 Moderate-income units and 15 Low-income units:
• If the developer proposes to build all Low -income units, the unit
obligation would be calculated as follows:
15 Moderate-income units divided by 1.5 unit credit equals 10
Low-income units.
The total unit obligation after accounting for the Incentive Credit
is 25 Low-income units
Page 93 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
31
• If the developer proposes to build all Very Low -income units, the
unit obligation would be calculated as follows:
15 Moderate-income units divided by 2.0 unit credit equals 7.5
Very Low-income units, and 15 Low-income units divided by 0.5
unit credit equals 30 Very Low-income units.
Because the unit credit for Very Low -income units in-lieu of Low-
income units is less than 1.0, it results in a n increase in Very
Low-income units, which is not the intent of the Incentive Credit
option.
If the Incentive Credit were revised to align with affordability gaps, the
Incentive Credit would provide the following unit credits to developers:
• 6.0 unit credit unit credit for every Very Low -income for-sale unit
in-lieu of a Moderate-income for-sale unit, and 3.5 unit credit unit
credit for every Very Low-income for-rent unit in-lieu of a
Moderate-income for-rent unit
• 5.0 unit credit for every Low-income for-sale unit in-lieu of a
Moderate-income for-sale unit, and 3.0 unit credit for every Low-
income for-rent unit in-lieu of a Moderate -income for-rent unit
• 1.5 unit credit for every Very Low-income for-sale or for-rent unit
in-lieu of a Low-income for-sale or for-rent unit.
Page 94 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Presented By: RSG
RECOMMENDATIONS
Existing Policy Initial Policy
Recommendations
(Oct 2023)
Revised Policy
Recommendations
(Mar 2024)
Inclusionary Unit
Requirement 10% 10% 10%
Project Size
Threshold *
All new residential
development with
50 or more units
All new residential
development, with pro
rata in lieu fee for
fractional units
All new residential
development with
10 or more units
Ownership Housing
Affordability Mix
50% moderate- and
50% low-income
50% moderate- and
50% low-income
50% moderate- and
50% low-income
Rental Housing
Affordability Mix
50% moderate- and
50% low-income
30% moderate-, 30%
low-, and 40% very
low-income
50% moderate- and
50% low-income
ATTACHMENT 3
Page 95 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
BUILDING INDUSTRY ASSOCIATION
-----Of SAN DIEGO COUNTY
AFFILIATES
California Building
Industry Association
National Association
of Home Builders
March 22, 2024
Brian Warwick
Housing Manager
City of Chula Vista
276 Fourth Av enue
Chula Vista, CA 91910
Re: Revised Inclusionary Housing Ordinance Comments
Dear Brian ,
On behalf of the Building Industry Association of San Diego County (BIA), I'd like to
thank you for the opportunity to provide comments to the City of Chula Vista's (City)
revised draft amendments to the Inclusionary Housing Ordinance (Ordinance). We
appreciate the willingness by City staff to meet with the BIA and consider the initial
comments we provided last month. We also appreciate staff dedicating the time to host
another briefing to review the revised language and answer questions from our
members.
After review, we are generally supportive of the revised amendments to the Ordinance
but would like to provide the following two comments.
First, we ask the City heed caution in lowering the threshold for application of the
Ordinance from 50 units to 10 units. As mentioned previously, we believe this will
reduce opportunities for infill development projects, particularly in the western portions
of the City. Inclusionary requirements for small developments, and/or fractional in-lieu
fees, will increase the barrier to entry for families redeveloping their own properties to
build family wealth and significantly discourage infill development/redevelopment in
Chula Vista.
Second, in the future we believe the City may need to consider a cap on the application
of the in-lieu fee. Since the fee will now be on a square foot basis, if the City is not
seeing the development of family-sized homes, the in-lieu fee could be discouraging
construction of those homes. As you know, it's important the City have varying housing
options for its residents, and we want to ensure the City is not going to experience an
overdevelopment of one particular housing type.
We thank you for your willingness to work with the BIA in the development of this
Ordinance, and appreciate the amount of time staff has dedicated.
Sincerely,
Lori Holt Pfeiler
President & CEO
BUILDINC INDUSTRY ASSOCIATION OF SAN DIECO COUNTY
9207 Spectrum Center Blvd., Suite 770, San Diego, CA 92723-7407
P: (858) 450-7227 / www.biasandiego.org
Page 96 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOME FED
C O R P O R A T I O N
Developing
Classic
New Communities
1903 WRIGHT PLACE, SUITE 220
CARLSBAD, CALIFORNIA 92008
www.homefedcorporation.com
(760) 918-8200 main
(760) 918-8210 fax
1
March 22, 2024
Brian Warwick
Housing Manager
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Re: Comments on the Revised Draft Inclusionary Housing Ordinance
Dear Brian,
HomeFed thanks the City for the opportunity to participate in the robust stakeholder engagement process
undertaken between July 2023 and March 2024 related to the updating the Inclusionary Housing Ordinance.
Staff’s iterative review of draft methodology, the ordinance, and the in-lieu fee structure with building industry
stakeholders, and the incorporation of revisions responding to stakeholder input is appreciated.
HomeFed invests significant time and resources in stakeholder participation with the City and crafting of
comments. As such, we especially appreciate the thoughtful ordinance updates staff integrated into the March
5, 2024 version that directly responded to key concerns from the development community.
Please accept this letter as supporting and reinforcing all comments in the letter from the Building Industry
Association submitted on March 22, 2024.
HomeFed supports City adoption of the March 5, 2024 version of the Inclusionary Housing Ordinance. We look
forward to continuing this important stakeholder relationship with the City to support a financially feasible and
sustainable development climate in Chula Vista.
We thank you for the opportunity to provide input and appreciate the time and effort staff has dedicated.
Sincerely,
Nicholle N. Wright, AICP
Community Development Project Manager
Page 97 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1
Chris Stanley
From:Brian Warwick
Sent:Tuesday, April 16, 2024 10:05 AM
To:Chris Stanley
Subject:FW: Affordable Housing Changes
From: mkocci@att.net <mkocci@att.net>
Sent: Monday, March 18, 2024 11:55 AM
To: Stacey Kurz <SKurz@chulavistaca.gov>; Brian Warwick <bwarwick@chulavistaca.gov>
Cc: Maria Kachadoorian <mkachadoorian@chulavistaca.gov>; Tiffany Allen <TAllen@chulavistaca.gov>
Subject: Affordable Housing Changes
WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open
attachments unless you can confirm the sender.
PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to
reportphishing@chulavistaca.gov
Stacey, I want to recognize the hard work you and the staff put in on the updates to the ordinance.
Brian did a great job shepherding us through the process.
Most notably we stake holders feel our concerns were understood, which is not always the case in other jurisdic Ɵons.
I have reservaƟons with lowering the exempt status to 10 as I think it will have a nega Ɵve effect on infill projects, but
Ɵme will tell.
Good job, and this in part, is why CV enjoys a responsible and responsive relaƟonship with the development community.
We recognize that we are partners with the City in shaping the future of Chula Vista.
Kevin O’Neill
Page 98 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Date:
To:
From:
Subject:
May 10, 2024
Stacey Kurz, Director, Housing & Homeless Services
Brian Warwick, Housing Manager
Chris Stanley, Senior Planner
City of Chula Vista
Mark Sawicki, Director
Brandon Fender, Senior Associate
RSG, Inc.
Inclusionary Housing Ordinance Unit Threshold for Exemption
RSG prepared a Policy Study and In-Lieu Fee Analysis dated April 29, 2024, in support of a
proposed draft ordinance that will codify and amend the City’s existing Balanced Communities
Policy, also known as the Inclusionary Housing Ordinance (or “IHO”). Staff has recommended that
all projects of less than 10 units be exempt from the inclusionary housing requirement. The
Planning Commission has recommended increasing that exemption to projects of less than 25
units. RSG had indicated at the time that we did not see significant differences in feasibility among
projects below 25 units to warrant setting an exemption at that or any other particular threshold.
This memo provides further discussion on our research, analysis, and recommendations with
regard to a unit threshold exemption.
Housing Development Cost and Valuation Research
RSG examined several data sources that are commonly used to evaluate development costs and
valuation in order to isolate and determine measurable impacts on feasibility for projects of varying
number of units. Development costs for our analyses were generated using Marshall Valuation
Service (“MVS”), a standard industry source which has been used by appraisers to estimate
building replacement costs since 1932. In addition to the analyses of construction costs using MVS,
RSG analyzed the published total development costs of 24 recent California Tax Credit Allocation
Committee (“CTCAC”) applications for new construction. Residential building valuation, rents,
vacancy rates, and operating cost data were generated from Costar, which is the leading source of
commercial real estate data in the US and includes data for over 28,000 units in Chula Vista alone.
Intuitively, we would expect developers to see economies of scale for some development costs
such as legal and accounting fees, appraisals, marketing, and special studies, which may be less
dependent on project size. We would also expect some efficiencies with hard costs for larger and
taller structures, such as those for fire sprinklers, and mechanical and electrical systems. The MVS
model uses base building costs per square foot for different types of structures, and has various
multipliers used to account for some differences that arise with scalability. However, we found that
most development costs are scaling in direct proportion with the square footage of the building.
Materials, labor, financing fees, and architecture and engineering fees, which collectively make up
a majority of the development costs, will generally increase proportional to the development cost or
size of the structure. The few costs with multipliers that show some economies of scale did not
significantly impact the otherwise linear growth in total development cost in the range from zero to
fifty units.
RSG filtered 2024 CTCAC 9% tax credit applications to include only new construction of multifamily
housing for large families, excluding senior, single room occupancy, rehabilitation, and adaptive
reuse applications. Only one application meeting these criteria had 25 units or less and that project
indicated costs of about $673 per square foot. For the 8 projects with 26 to 49 units, the weighted
average cost per square foot was $665, slightly less than the cost per square foot for the 25-unit
Page 99 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
City of Chula Vista
Inclusionary Threshold
5/10/24
Page 2
project. The weighted average cost per square foot for the 15 tax credit applications with 50 or
more units was $522. This information suggests a cost savings as the number of units in a
development increase, most significant for those over 50 units (about 22% less). However, this
analysis is limited because it includes only a small sample of projects, includes projects across
California in both rural and urban areas, and evaluates only 9% tax credit applications and there
are variations in the costs of affordable multifamily and market rate multifamily developments.
We also looked at the components of building valuation: rental income, operating expenses, cap
rates, and sales prices. Again, we did not see any significant differences in valuation metrics for
smaller (<10 unit) projects compared to projects with 25 or more units. The average gross income,
operating expenses, and net operating income were all comparable. From the transaction side,
sales prices and cap rates on an average per unit basis did not vary significantly based on the size
of the development. This implies that either the development costs per unit are similar, or if the
costs are actually higher per unit, then investors in smaller projects are accepting less than market
rate returns on costs.
While intuitively one might expect buildings with more units to experience economies of scale in
costs, and a resultant edge in profitability, we have not found data sources aside from the limited
tax credit application analysis that would directly support this finding.
Considerations in Adopting a Unit Threshold for Exemption
RSG typically recommends that when cities adopt inclusionary housing policies, that all new
market-rate residential development participate on a proportionate basis, either by providing
affordable units or paying a partial in-lieu fee. RSG also recommends that the in-lieu fee be set on
a per square foot basis rather than a per unit basis. Under this framework, all residential developers
are absorbing the same per square foot cost of compliance, regardless of the number of units or
their sizes. Developments with larger unit sizes, however, will contribute more per unit than projects
with smaller units and higher densities. This treats all development types the same and does not
create an incentive to build fewer units for projects at or near the threshold in an effort to avoid the
inclusionary unit or fee requirements.
With a 10% inclusionary requirement and no unit threshold exemption, projects with less than 10
units would not be expected to provide an affordable unit. Instead, they would pay a partial in-lieu
fee, relative to the amount of residential square feet being built. By establishing an exemption for
projects with less than 10 units, there will be a resultant jump in costs for the 10th unit, ranging from
$10,000 to $270,000 to include one moderate-income unit, depending on housing prototype, or
payment of an in-lieu fee averaging $134,000 to $180,000 (at recommended per square foot
levels). By establishing an exemption for projects with less than 25 units, there will be a jump in
costs for the 25th unit that may range from $435,000 to $917,000 for including one moderate-
income and one low-income unit, depending on housing prototype, or payment of an in-lieu fee
averaging $335,000 to $450,000 (at recommended per square foot levels).
Based on a review of potential residential development projects currently in the pipeline in Chula
Vista, at least 5% are below 10 units (representing 0.1% of pipeline units) and 11% are below 25
units (representing 0.7% of pipeline units). We project that a unit threshold exemption below 10
units may result in foregoing at least 5 inclusionary affordable units, while a threshold below 25
units may result in foregoing at least 25 inclusionary units. If developers were electing to pay the in-
lieu fee on these projects (at recommended levels), adopting either threshold may reduce the
potential collection of in-lieu fees by about $1.2 million at 10 units, or about $5.7 million at 25 units.
Wherever the threshold is set, there will be an incentive to build below the threshold. However, the
higher the threshold, the greater the incentive becomes to avoid the jump in costs for compliance.
A higher threshold will also reduce the number of affordable units and/or housing funds the City
may receive.
Page 100 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Attachment 5
C:\Program Files\eSCRIBE\TEMP\13262762799\13262762799,,,Attachment 5 - CVMC 17.10.070 (Redline).docx
Proposed Redlines to CVMC section 17.10.070
17.10.070 In-lieu fees for land dedication and/or park development improvements.
A. In-Lieu Fees for Land Dedication. If, in the judgment of the City, suitable land does not
exist within the subdivision or within the development if it is not part of a subdivision, or for
subdivisions containing 50 lots or less, the payment of fees in lieu of land shall be required. In
such cases, the required fee(s) shall be based on the area to be dedicated as set forth in CVMC
17.10.040. However, when a condominium project, stock cooperative or community apartment
project exceeds 50 dwelling units, dedication of land may be required notwithstanding that the
number of parcels may be less than 50.
Where the City deems that a combination of dedication and payment, as provided in this chapter,
would better serve the public and the park and recreation needs of the future residents of a
particular subdivision or residential development, it may require such combination; provided,
however, the City Council may, by resolution, waive all or any portion of said dedication or in-
lieu fee requirements in the interests of stimulating the construction of housing for low- and
moderate-income families.
B. In-Lieu Fees for Park Development Improvements. If, in the judgment of the City, suitable
land does not exist within the subdivision or within the development if it is not part of a
subdivision, or for subdivisions containing 50 lots or less, the payment of fees in lieu of
developing improvements shall be required. In such cases, the amount of the required fee(s) shall
be based on the improvements required in CVMC 17.10.050. However, when a condominium
project, stock cooperative or community apartment project exceeds 50 dwelling units,
improvements may be required notwithstanding that the number of parcels may be less than 50.
Where the City deems that a combination of improvements and payment, as provided in this
chapter, would better serve the public and the park and recreation needs of the future residents of
a particular subdivision or residential development, it may require such combination.; provided,
however, the City Council may, by resolution, waive all or any portion of said improvements or
in-lieu fee requirements in the interests of stimulating the construction of housing for low- and
moderate-income families.
In the event the City determines that the improvement of the parkland shall be delayed for a
substantial period of time after the parkland has been dedicated, the subdivider or building
Page 101 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 2
permit applicant shall not be required to install such improvements, but instead shall pay the
required fee(s) for the value of improvements required in CVMC 17.10.050.
C. Land Uses Exempt from In-Lieu Fees. “Accessory Dwelling Units” and “Junior Accessory
Dwelling Units” as defined in CVMC 19.58.022 and 19.58.023, respectively, are exempt from
payment of in-lieu fees for parkland dedication and park development as they offer lower cost
housing supply to low- and moderate-income families. Housing developments in which 100% of
units, except any units reserved exclusively for use by staff, are restricted as affordable to
persons or families of low or moderate income, as defined in California Health and Safety Code
Section 50093, shall also be exempt from payment of in-lieu fees for parkland dedication and
park development, provided that such units are restricted through a regulatory agreement,
recorded in the official records of San Diego County, with the City of Chula Vista, the Chula
Vista Housing Authority, the California Tax Credit Allocation Committee, or the California
Department of Housing and Community Development. (Ord. 3424 § 3, 2018; Ord. 3303 § 1 (Att.
A), 2014; Ord. 2945 § 5, 2004; Ord. 2886 § 1, 2002).
Page 102 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Written Communications
Item 8.1 – Cate
Received 5/21/2024
From: Chris Cate <
Sent: Tuesday, May 21, 2024 10:02 AM
To: Council District 4 <District4@chulavistaca.gov>; CityClerk <CityClerk@chulavistaca.gov>; Council
District 1 <District1@chulavistaca.gov>; Maria Kachadoorian <mkachadoorian@chulavistaca.gov>; Jose
Preciado <jpreciado@chulavistaca.gov>; Alonso Gonzalez <agonzalez@chulavistaca.gov>; John McCann
jmccann@chulavistaca.gov>; Laura Black <lblack@chulavistaca.gov>
Subject: BIA Comment Letter Regarding Item 8.1
WARNING - This email originated from outside the City of Chula Vista. Do not click any
links and do not open attachments unless you can confirm the sender.
PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or
to reportphishing@chulavistaca.gov
Please find the attached comment letter regarding Item 8.1 on tonight's agenda.
Thank you,
Chris Cate | Founder
You don't often get email from chris@3mcstrategies.com. Learn why this is important
Page 103 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
May 21, 2024
The Honorable John McCann
Mayor
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Re: Comments for Item 8.1 – Housing Policy
Dear Mayor McCann,
On behalf of the Building Industry Association of San Diego County (BIA), I’d like to express our general support for
the various housing related policies included in Item 8.1 of your agenda. I’d first like to thank staff for the ample
opportunities to provide comments to the City of Chula Vista (City) and the various policies being considered.
Most notably, the BIA conducted review and provided comments related to the City’s proposed amendments to the
Inclusionary Housing Ordinance. We appreciate the willingness by City staff to meet with the BIA and consider the
initial comments we provided in February, and the subsequent briefing to review the revised language and answer
questions from our members.
After review, we are generally supportive of the revised amendments to the Ordinance but would like to provide the
following two comments.
First, we support the Planning Commission’s recommendation to increase the minimum number of units subject to the
inclusionary requirements from 10 unites to 25 units. In previous comments, the BIA asked the City heed caution in
lowering the threshold for application of the Ordinance from 50 units to 10 units as we believe the lowering of the
threshold will reduce opportunities for infill development projects, particularly in the western portions of the City.
Inclusionary requirements for small developments, and/or fractional in-lieu fees, will increase the barrier to entry for
families redeveloping their own properties to build family wealth and significantly discourage infill
development/redevelopment in Chula Vista.
Second, in the future we believe the City may need to consider a cap on the application of the in-lieu fee. Since the
fee will now be on a square foot basis, if the City is not seeing the development of family-sized homes, the in-lieu fee
could be discouraging construction of those homes. As you know, it’s important the City have varying housing options
for its residents, and we want to ensure the City is not going to experience an overdevelopment of one particular
housing type.
Overall, we generally support the remaining package of items presented before you and thank the City for your
willingness to work with the BIA in the development and adoption of policies that address the lack of housing in our
region. We appreciate the amount of time staff has dedicated in furthering our partnership and look forward to
continued collaboration in the future.
Sincerely,
Lori Holt Pfeiler
President & CEO
cc: Honorable Councilmembers
Maria Kachadoorian, City Manager Page 104 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 03 P a g e | 1
May 28, 2024
ITEM TITLE
Annual Budget: Amend the Chula Vista Municipal Code to Delete Certain Unclassified Position Titles, as
Related to the Adoption of the Fiscal Year 2024-25 Budget
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
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 an ordinance (Second Reading and Adoption)
Summary
This ordinance was placed on first reading on May 21, 2024. The original staff report can be accessed at the
following link: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=41911
Please note, the original staff report may include information beyond the scope of the ordinance proposed
for adoption with this action.
For questions, please contact the staff indicated in the original staff report or cityclerk@chulavistaca.gov.
Page 105 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SECOND READING AND ADOPTION
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
CHULA VISTA MUNICIPAL CODE SECTION 2.05.010 TO
DELETE CERTAIN UNCLASSIFIED POSITION TITLES THAT
ARE SPECIFICALLY DELINEATED IN CITY CHARTER
SECTIONS 500(A), (B) AND (C) AND TO DELETE CERTAIN
POSITION TITLES THAT ARE NO LONGER ACTIVE (FIRST
READING) (4/5 VOTE REQUIRED)
WHEREAS, Chula Vista City Charter Sections 500(A), (B) and (C) specifically delineates
several positions that are a part of the Unclassified Service, including: the City Manager; City
Clerk; executive secretaries for each of the City Manager, the City Attorney and Mayor and
Council; Assistant and Deputy City Managers and Department Heads; and
WHEREAS, Chula Vista City Charter Section 500(D) allows for other management level
positions to be added to the Unclassified Service by ordinance approved with a four-fifths vote of
the City Council; and
WHEREAS, staff is recommending deleting various position titles that are specifically
delineated in City Charter Section 500 and those that are no longer active.
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
Section I. That Section 2.05.010 of the Chula Vista Municipal Code is hereby amended
to read as follows:
2.05.10 Unclassified positions established.
In addition to those unclassified positions specifically delineated in Section 500 of the Charter of
the City, there are established the unclassified positions entitled: Administrative Secretary (Mayor,
At Will), Administrative Services Manager, Animal Care Facility Administrator, Animal Care
Facility Manager, Assistant Chief of Police, Assistant Director of Development Services, Assistant
Director of Engineering, Assistant Director of Human Resources, Assistant Director of Finance,
Assistant Director of Parks and Recreation, Assistant Director of Public Works, Assistant Director
of Recreation, Budget and Analysis Manager, Building Official, Building Official/Code
Enforcement Manager, Chief Information Security Officer, Chief of Staff, Chief Sustainability
Officer, City Engineer, Code Enforcement Manager, Communications Manager, Constituent
Services Manager, Deputy City Manager, Deputy Fire Chief, Deputy Director of Animal Services,
Deputy Director of Community Services, Deputy Director of Development Services, Development
Project Manager, Development Services Department Director, Director of Animal Services,
Director of Community Services, Director of Conservation and Environmental Services, Director
of Economic Development, Economic Development Manager, Emergency Services Manager, Fire
Division Chief, FA Accounting Technician, FA Administrative Analyst I, FA Administrative
Analyst II, FA Analyst, FA Cyber Security Program Manager, FA Deputy Director LECC, FA
Deputy Executive Director, FA Executive Director, FA Public Private Partnership and Exercise
Program Manager, FA Director of San Diego Law Enforcement Coordination Center, FA
Page 106 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Ordinance No.
Page No. 2
Executive Assistant, FA Financial Manager, FA Geospatial Intelligence Analyst, FA IVDC-LECC
Executive Director, FA Law Enforcement Coordination Center Information Technology Manager,
FA Intelligence Analyst, FA Management Assistant, FA Microcomputer Specialist, FA Netw ork
Administrator I, FA Network Administrator II, FA Network Administrator III, FA Program
Analyst, FA Program Assistant Supervisor, FA Program Manager, FA Network Engineer, FA
Senior Financial Analyst, FA Senior Intelligence Analyst, FA Senior Program Assistant, FA
Senior Secretary, FA Supervisory Intelligence Analyst, Facilities Financing Manager, Finance
Manager, Housing Manager, Human Resources Manager, Information Technology Manager, Law
Office Manager, Office Specialist (Mayor’s Office), Planning Manager, Police Administrative
Services Administrator, Police Captain, Policy Aide, Public Works Superintendent, Purchasing
Agent, Redevelopment and Housing Manager, Revenue Manager, Risk Manager, Senior Council
Assistant, and Special Projects Manager and Traffic Engineer.
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
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
___________________________________ ________________________________
Tanya Tomlinson Marco A. Verdugo
Director of Human Resources/Risk Management City Attorney
Page 107 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
RN
Pw
MEMO cH Rist
Finance Department
Ny
DATE: May 9, 2024
TO: Honorable Mayor and Council
VIA: Maria Kachadoorian, City Managerfo_
FROM: Sarah Schoen, Director of Finance/Treasurer
SUBJECT: | Amendment to the City Manager’s Proposed Budget for Fiscal Year 2024-25
Staff submitted the Fiscal Year 2024-25 Proposed Budget document to the City Council on May 2, 2024. As required by
the City Charter, the City Manager’s proposed budget was submitted to the City Council at least thirty-five days before
the beginning of the fiscal year.
This report summarizes the Amended City Manager’s proposed budget for fiscal year 2024-25 to reflect changes that
were requested by the City Council at the May 7, 2024 meeting, and were not reflected in the original document
submitted to the City Council.
This memo serves as an addendum to the City Manager's Fiscal Year 2024-25 Proposed Budget document. Together
with the document submitted to City Council on May 2, 2024 these documents represent the Amended City Manager’s
Fiscal Year 2024-25 Proposed Budget.
The proposed budget for fiscal year 2024-25 has been updated to reflect the following changes:
Summary of General Fund Changes
Description FundName Department Name Budget Category Revenues Expenditures Net Impact
Increase Non-Departmental budget for
Charter Review Ballot item General Fund 09-Non-Departmental Supplies and Services $ - $ 400,000 $ 400,000
Increase Salary Savings target General Fund 09-Non-Departmental Personnel - (400,000) (400,000)
Updated General Fund S -__$ -_§ :
General Fund: The preceding table summarizes the updates to the General Fund. As noted on the table, these changes
increase total appropriations by SO and the General Fund remains balanced. The salary savings will be allocated to
Non-Departmental.
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 691-5051 | fax (619) 585-5685Page 108 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Amendment to the City Manager’s Proposed Budget for Fiscal Year 2024-25
Page 2 of 2
The following table summarizes the total impact of these modifications on the All Funds budget.
Summary of the Amended City Manager’s Fiscal Year 2024-25 Proposed Budget
Description Revenues Expenditures Net Impact
General Fund as Proposed in the May 7, 2024 Budget Document $ 274,124,020 $274,124,020 $ -
General Fund Adjustments - Non-Departmental (Supplies and Services) - 400,000 400,000
General Fund Adjustments - Various Departments (Personnel) . (400,000) (400,000)
Updated General Fund $ 274,124,020 $274,124,020 $ -
Other Funds as Proposed in the May 7, 2024 Budget Document §$ 334,401,141 $321,174,660 $(13,226,481}
Adjustments to Other Funds - - -
Updated Other Funds $ 334,401,141 $321,174,660 $(13,226,481)
$ 595,298,680 $(13,226,481) Updated All Funds - Appropriations for FY2024-25 § 608,525,161
Next Steps
This document reflects the amendments to the budget as shown in the tables above when the City Council accepted
the City Manager’s Proposed Operating and Capital Improvements Budgets as their Proposed Budgets for Fiscal Year
2024-25 at the meeting on May 7*". Per the City Charter, the City Council Proposed Budget will be made available for
public review at least 10 days in advance of the adoption of the budget.
Council will consider the adoption of the fiscal year 2024-25 budget at the meeting on May 21, 2024. Prior to the
adoption of the budget, the City Council will hold a public hearing in order to give the public an additional opportunity
to participate in the budget process. In compliance with the City Charter, a notice of this meeting will be published in
the local newspaper at least ten days prior to the public hearing. The City Council may propose additional budget
modifications after considering testimony at the public hearing.
The above changes to the fiscal year 2024-25 proposed budget are detailed in the following attachments:
Attachment A: Fund Appropriations by Department Expenditure Category
cc: Tiffany Allen, Assistant City Manager
Courtney Chase, Deputy City Manager
Matt Little, Interim Deputy City Manager/Public Works Director
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 691-5051 | fax (619) 585-5685
Page 109 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
FUND APPROPRIATIONS
BY DEPARTMENT
AND EXPENDITURE
CATEGORY
Attachment A
Page 110 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
→ FUND APPROPRIATIONS BY DEPARTMENT AND EXPENDITURE CATEGORY
City of Chula Vista
Proposed Budget FY 2025 3
EXPENDITURES BY DEPARTMENT/CATEGORY
Dept / Fund
Personnel
Services
Supplies &
Services Utilities
Other
Expenses
Other
Capital
Internal
Service
Charges
Transfers
Out
CIP
Projects
Non-CIP
Projects
Total
FY 2025
100 General Fund
01 City Council 1,592,124 105,880 534 -3,190 - -- - 1,701,728
02 Boards & Commissions -2,088 - - - - -- - 2,088
03 City Clerk 1,361,799 201,435 461 - - - -- - 1,563,695
04 City Attorney 3,392,496 367,374 1,086 -4,948 - -- - 3,765,904
05 Administration 2,936,671 265,739 675 - - - -- - 3,203,085
06 Information Technology 3,110,275 1,538,461 4,270 -87,890 - -- - 4,740,896
07 Human Resources 3,159,497 849,286 1,871 -2,500 - -- - 4,013,154
08 Finance 4,695,646 391,052 1,789 -3,573 - -- - 5,092,060
09 Non-Departmental (10,300) 9,530,309 19,074 1,757,735 - - 87,537,519 - - 98,834,337
10 Animal Care Facility 3,130,991 351,950 64,541 4,500 6,282 77,384 -- - 3,635,648
11 Economic Development 1,117,101 195,154 1,776 - - - -- - 1,314,031
12 Development Services 3,045,505 173,003 1,533 46,610 -34,610 -- - 3,301,261
13 Engineering/Capital Projects 9,779,171 353,517 1,353,083 95,000 5,000 271,204 100,440 - - 11,957,415
14 Police 54,670,434 2,405,280 828,875 100,930 25,000 1,462,589 -- - 59,493,108
15 Fire 32,792,575 2,319,351 311,536 -25,000 1,647,473 62,048 - - 37,157,983
16 Public Works 14,198,759 5,366,070 3,566,229 11,400 3,000 1,122,510 -- - 24,267,968
17 Parks and Recreation 4,463,344 828,686 407,421 170,000 26,423 29,011 -- - 5,924,885
18 Library 3,461,684 433,427 254,384 400 -4,879 -- - 4,154,774
19 Housing & Homeless Services -- - - - - -- - -
100 General Fund Total 146,897,772 25,678,062 6,819,138 2,186,575 192,806 4,649,660 87,700,007 - - 274,124,020
105 Bayfront Lease Revenue -- - 2,136,322 - - -- -2,136,322
220 2016 Measure P Sales Tax -1,025,256 -1,295,502 1,116,750 -7,514,795 7,755,146 100,000 18,807,449
221 Transportation Grants-Gas Tax 240,203 - - - - 7,107 5,092,897 9,256,285 -14,596,492
222 2018 Measure A Sales Tax 20,625,834 3,397,891 61,800 1,070,116 69,936 251,979 2,789,991 15,200,000 -43,467,547
223 Utility Tax Settlement -- - - - - -- - -
224 OR V2 Pub Benefit Contribution -- - - - - -- - -
225 CPF Benefit Funds -- - - - - -- - -
227 Transportation Sales Tax -- - - - - - 9,225,500 -9,225,500
230 Developer Deposit -- - - - - -- - -
234 Advanced Life Support Program 974,899 250,729 - - - 21,589 1,335,255 - - 2,582,472
235 Legislative Counsel Fund -- - - - - -- - -
241 Parking Meter -415,700 97,183 254,500 - - 1,227 - - 768,610
243 Town Center I Parking District -- - - - - -- - -
245 Traffic Safety -38,500 - - - - 399,140 - - 437,640
250 National Opioid Settlement -- - - - - -- - -
263
Econ Dev Developer
Contribution -- - - - - -- - -
264 Donations -- - 25,995 - - -- -25,995
Attachment A
Page 111 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
→ FUND APPROPRIATIONS BY DEPARTMENT AND EXPENDITURE CATEGORY
City of Chula Vista
Proposed Budget FY 2025 4
EXPENDITURES BY DEPARTMENT/CATEGORY
Dept / Fund
Personnel
Services
Supplies &
Services Utilities
Other
Expenses
Other
Capital
Internal
Service
Charges
Transfers
Out
CIP
Projects
Non-CIP
Projects
Total
FY 2025
266 Special Revenue Endowments -- - - - - -- - -
268
American Rescue Plan Act of
2021 -- - - - - -- - -
269 Other Grants 75,000 - - - - - -- - 75,000
270 Mobile Park Fee -28,000 -37,000 - - -- -65,000
271 Local Grants 23,564 135,000 - - 100,000 - -- - 258,564
272 Federal Grants 5,671,508 1,705,424 -1,113,268 320,000 -1,154,684 - - 9,964,884
273 State Grants 1,334,918 301,186 -45,153 -3,371 68,235 - - 1,752,863
282 Environmental Services 1,013,835 1,402,262 18,558 110,351 4,600 10,766 457,189 - - 3,017,561
301 Storm Drain -348,100 - - - - 318,284 - - 666,384
311 CDBG Housing Program -- - 25,000 - - -- 75,000 100,000
313 Chula Vista Housing Authority 1,579,933 310,000 -42,500 - - 363,234 - - 2,295,667
316 Public Educational & Govt Fee -319,500 - - 168,500 - -- - 488,000
318 RDA Successor Agency Fund -11,500 -369,730 - - 2,796,211 - - 3,177,441
319 Housing Successor Agency -57,900 -2,008,500 6,000 -9,858 - - 2,082,258
340 Section 115 Trust -- - - - - -- - -
341 Public Liability Trust -384,908 -899,170 - - -- -1,284,078
342 CFD 11-M Rolling Hills McM -172,588 32,915 45,000 - - -- -250,503
343 CFD 12-M Otay Ranch Village 7 -467,992 126,431 85,393 - - -- -679,816
344 CFD 13-M Otay Ranch Village 2 -1,604,979 627,573 215,648 - - -- -2,448,200
345 CFD 12M Village 7 Otay Ranch -501,114 176,980 99,641 - - -- -777,735
346 CFD 14M-A-EUC Millenia -86,353 4,635 27,985 - - 148,886 - - 267,859
347 CFD 14M-B-EUC Millenia -64,413 151,634 426,817 -3,519 -- - 646,383
348 CFD 18M Village 3 Otay Ranch -849,646 286,591 95,335 - - -- -1,231,572
349
CFD 19M Freeway Commercial
2 -234,902 58,455 22,073 - - -- -315,430
350 Bayfront Special Tax District -6,545 -601,000 - - -- -607,545
352 Bay Blvd Landscape District -278 8,476 4,176 - - -- -12,930
353 Eastlake Maintenance Dist I -294,948 110,021 65,961 - - -- -470,930
354 Open Space District #01 -49,652 40,452 11,313 - - -- -101,417
355 Open Space District #02 -8,327 5,560 3,918 - - -- -17,805
356 Open Space District #03 -33,924 17,517 11,000 - - -- -62,441
357 Open Space District #04 -92,011 19,444 12,998 - - -- -124,453
358 Open Space District #05 -32,923 19,164 10,322 - - -- -62,409
359 Open Space District #06 -25,808 11,604 6,317 - - -- -43,729
361 Open Space District #07 -16,373 9,519 4,665 - - -- -30,557
362 Open Space District #08 -58,119 15,891 14,623 - - -- -88,633
363 Open Space District #09 -43,865 29,126 14,049 - - -- -87,040
364 Open Space District #10 -57,057 28,782 15,568 - - -- -101,407
365 Open Space District #11 -96,188 71,728 29,622 - - -- -197,538
367 Open Space District #14 -252,148 107,321 54,690 - - -- -414,159
Attachment A
Page 112 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
→ FUND APPROPRIATIONS BY DEPARTMENT AND EXPENDITURE CATEGORY
City of Chula Vista
Proposed Budget FY 2025 5
EXPENDITURES BY DEPARTMENT/CATEGORY
Dept / Fund
Personnel
Services
Supplies &
Services Utilities
Other
Expenses
Other
Capital
Internal
Service
Charges
Transfers
Out
CIP
Projects
Non-CIP
Projects
Total
FY 2025
368 Open Space District #15 -10,288 8,320 4,954 - - -- -23,562
369 Open Space District #17 -7,546 -3,289 - - -- -10,835
371 Open Space District #18 -123,766 73,624 35,442 - - -- -232,832
372 Open Space District #20 -1,252,203 396,229 236,298 - - -- -1,884,730
373 Open Space District #23 -57,844 7,364 9,611 - - -- -74,819
374 Open Space District #24 -20,972 10,226 5,993 - - -- -37,191
375 Open Space District #26 -7,258 2,668 3,859 - - -- -13,785
376 Open Space District #31 -176,749 48,894 28,092 - - -- -253,735
378
CFD 07M Eastlake Woods &
Vista -609,538 139,454 184,450 - - -- -933,442
379 CFD 08M Vlg 6 McMillin & OR -1,398,710 309,686 247,644 - - -- -1,956,040
380
CFD 09M ORV II Brookfield-
Shea -1,056,904 210,324 179,919 - - -- -1,447,147
381 CFD 14M-2-EUC Millenia -101,356 5,442 32,852 - - 174,779 - - 314,429
382
CFD 99-2 Otay Ranch Vlg 1
West -834,978 212,095 136,866 - - -- -1,183,939
386 Otay Ranch Preserve -710,481 -93,906 - - -- -804,387
387 CFD 98-3 Sunbow 2 -992,660 206,867 134,455 - - -- -1,333,982
388 CFD 97-1 Otay Ranch -2,929,114 532,704 456,055 - - -- -3,917,873
391 Central Garage Fund 1,580,941 4,186,389 111,059 92,450 -33,639 126,567 - - 6,131,045
394 Vehicle Replacement Fund -- - - - - -- - -
398 Workers Compensation Fund -1,478,145 -3,776,771 - - -- -5,254,916
405 City Jail -- - - - - -- - -
406 Chula Vista Muni Golf Course 1,444,467 - - 1,805,049 - - -- -3,249,516
407 Living Coast Discovery Center -4,713 167,691 - - 8,166 -- - 180,570
408 Development Services Fund 8,799,023 1,021,852 3,073 1,192,082 85,500 68,173 2,824,695 - - 13,994,398
409 CV Elite Athlete Training Ctr -160,800 -39,500 - - 54,226 - - 254,526
410 Transport Enterprise 7,251,117 6,085,393 -953,635 -320,787 3,103,877 - - 17,714,809
411 Sewer Income -- - - - - 1,809 50,000 -51,809
413 Trunk Sewer Capital Reserve -- - 150,000 - - 53,895 - - 203,895
414 Sewer Service Revenue 5,278,868 34,689,858 155 575,610 1,393,473 542,970 4,144,357 250,000 64,600 46,939,891
428 Sewer Facility Replacement -- - - - - 160,644 4,015,000 -4,175,644
430 Sewer DIFs -120,000 -695,490 - - -- -815,490
442 CDBG Section 108 Loan -- - 682,451 - - -- -682,451
451 Long Term Debt - City of CV -6,413 -15,443,990 - - -- -15,450,403
452 Equipment Lease Fund -- - 101,741 - - -- -101,741
453 Energy Conservation Loans -- - 309,186 - - -- -309,186
475 2014 COP Refunding -5,000 -3,613,082 - - -- -3,618,082
476 2015 Refunding COP -7,001 -2,922,691 - - -- -2,929,692
477 2016 Ref COP Civic Ctr/Nature -5,000 -282,552 - - -- -287,552
478 2016 LRRB PFDIF/COP -5,000 -2,145,077 - - -- -2,150,077
Attachment A
Page 113 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
→ FUND APPROPRIATIONS BY DEPARTMENT AND EXPENDITURE CATEGORY
City of Chula Vista
Proposed Budget FY 2025 6
EXPENDITURES BY DEPARTMENT/CATEGORY
Dept / Fund
Personnel
Services
Supplies &
Services Utilities
Other
Expenses
Other
Capital
Internal
Service
Charges
Transfers
Out
CIP
Projects
Non-CIP
Projects
Total
FY 2025
479 2017 CREBs LRBs -7,200 -714,553 - - -- -721,753
480 2017 Measure P LRBs -7,545 -7,507,250 - - -- -7,514,795
542 Drainage DIF -- - 10,000 - - 3,291 - - 13,291
560 Public Facilities DIF -57,000 -2,174,391 - - 5,221,492 - - 7,452,883
580 Pedestrian Bridge DIFs -- - 95,500 - - 4,779 - - 100,279
590 Transportation DIFs -- - 529,000 - - 23,443 20,000 15,000 587,443
666 2016 TARBs -5,000 -2,788,700 - - -- -2,793,700
713 Capital Improvement Projects -- - - - - 1,434 -200,000 201,434
715 Parkland Acquisition & DevFees -50,000 -35,000 - - 29,975 - - 114,975
716 Western-Park Acquisition & Dev -- - 302,000 - - 1,768 500,000 -803,768
717 Residential Construction Tax -- - - - - 667,933 - - 667,933
736 Other Transportation Program -- - - - - - 34,967,767 -34,967,767
Grand Total, All Funds 202,791,882 99,052,747 11,402,373 64,229,232 3,457,565 5,921,726 126,748,857 81,239,698 454,600 595,298,680
Attachment A
Page 114 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Agreement: Waive Competitive Bidding Requirements and Approve an Agreement with Springbrook Holding
Company, LLC to Provide an Upgrade to Cloud Service of the Sewer Billing System
Report Number: 24-0175
Location: No specific geographic location
Department: Finance
G.C. § 84308: Yes
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 waiving the competitive bidding requirements and approving an agreement with
Springbrook Holding Company, LLC to provide an upgrade to cloud service of the sewer billing system.
SUMMARY
The City of Chula Vista’s Finance Department, Sewer Billing Section, requires an upgrade to its sewer billing
and account management software. An effective account management and billing system should automate
processes, reduce manual input, provide the most up to date information to the customer and streamline the
billing and payment application processes. Springbrook’s cloud-based system is an upgrade to the outdated
version the Sewer Billing Section currently uses.
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 the proposed activity consists of a governmental
fiscal/administrative activity which does not result in a physical change in the environment. Therefore,
pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Page 115 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City of Chula Vista’s Finance Department, Sewer Billing Section, is responsible for the account
management, noticing, billing and collection of residential and commercial wastewater services o f certain
parcels within city limits. Specifically, Sweetwater Authority water utility customers are billed for
wastewater services directly by the City of Chula Vista. Currently, the Sewer Billing Section manages
approximately 15,100 active accounts.
The Sewer Billing Section issues sewer service bills to 7 different cycles, on a bi-monthly basis. In addition to
being an account management and billing resource, Springbrook’s software is used by staff to query data and
produce reports that assist with the processing of special noticing, automatic payments, paperless solutions
and providing valuable data for our Reduced Sewer Service and other low-income assistance programs,
which are vital to the City’s customers.
Springbrook is the Sewer Billing Section’s current and long-standing software provider for sewer service
billing and account management. Upgrading to a cloud-based version of the software will provide staff
comparable processes to the current system and lessen the impact on staff with training and implementation.
This software has unique performance capabilities which are substantially woven into staff’s business
processes and compatible with other technologies and service providers, as well as the City’s financial system
of record. The City currently uses an outdated, on-premises version of Springbrook, which no longer receives
version updates and technical support. The Springbrook cloud service is able to automate processes, reduces
manual input and will streamline the City’s billing and notification processes, giving customers more concise
data. Accordingly, it would be impractical to utilize another vendor for the transition to a cloud sewer service
and billing account management system, and the Purchasing Agent has determined that the City’s interests
would be materially better served by contracting with City’s existing vendor for an upgrade to the existing
system. Staff, with the approval and concurrence of the Purchasing Agent, recommend that City Council
waive the competitive bidding requirements pursuant to Chula Vista Municipal Code Section 2.56.070(B)(3)
for procurement of this cloud service upgrade to its existing sewer billing software.
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
The agreement is funded by the Sewer Service Revenue Fund. The cost for the one-time migration fee
($28,600) and the cost from year one of ($88,148.60) for a total of $116,748.60, were included in the fiscal
year 2023-2024 budget of the Sewer Service Revenue Fund. There is no additional current-year fiscal impact
anticipated as a result of this action.
Page 116 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
ONGOING FISCAL IMPACT
The ongoing fiscal impact is estimated at $487,077 through year 5 of the agreement (fiscal year 2028-2029),
as outlined in the following summary table. Annual expenses for the sewer billing software will be included
in the annual budget development process in future years.
Agreement Fiscal Year (FY) Totals
FY 2024-25 $88,149
FY 2025-26 $92,556
FY 2026-27 $97,184
FY 2027-28 (Optional) $102,043
FY 2028-29 (Optional) $107,145
Agreement Total $487,077
ATTACHMENTS
1. Springbrook Holding Company, LLC Cloud Service Agreement
Staff Contact: Jimmy Vasquez, Revenue Manager, Finance Department
Sarah Schoen, Director of Finance/ Treasurer
Page 117 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING THE COMPETITIVE BIDDING
PROCESS AND APPROVING A CLOUD SERVICE
AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND
SPRINGBROOK HOLDING COMPANY, LLC TO PROVIDE AN
UPGRADE TO THE SEWER BILLING SYSTEM
WHEREAS, the City and Springbrook Software, Inc. entered into the Springbrook
Software Version Seven Migration Agreement on December 9, 2013, for its sewer billing software;
and
WHEREAS, to date, the City continues to use upgraded versions of this software, and the
City’s standard operating procedures for sewer billing and accounts receivable functionalities are
substantially integrated with this software’s features; and
WHEREAS, Springbrook has developed an Enterprise Resource Planning (ERP) solution
for local government agencies that is offered as a Software as a Service (SaaS)-based cloud service;
and
WHEREAS, the City is interested in obtaining the functionality provided by a SaaS-based
cloud ERP solution; and
WHEREAS, it would be impractical to utilize another vendor for the transition to a cloud
sewer service and billing account management system, and the Purchasing Agent has determined
that the City’s best interests would be materially better served by contracting with the City’s
existing vendor for an upgrade to the existing system; and
WHEREAS, staff, with approval and concurrence of the Purchasing Agent, recommend
that City Council waive the competitive bidding requirements for procurement of this cloud service
upgrade to the existing sewer billing software pursuant to Chula Vista Municipal Code section
2.56.070(B)(3).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it finds that the competitive bidding requirements as applied to this contract are impractical
and 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.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of
Chula Vista that it: (1) waives the competitive bidding requirements pursuant to Chula Vista
Municipal Code section 2.56.070(B)(3); and (2) approves the Cloud Service Agreement between
the City and Springbrook Holding Company, LLC, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be kept
on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same.
Page 118 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No.
Page 2
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/Treasurer City Attorney
Page 119 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Order Form: Q-19518-1
Date: 9/6/2023, 2:54 PM
Expires On: 12/5/2023
Phone: (866) 777-0069
Email: info@sprbrk.com
Ship To:
Jimmy Vasquez
City of Chula Vista, CA
276 4th Ave.
Chula Vista, California 91910
jvasquez@chulavistaca.gov
Bill To:
City of Chula Vista, CA
City of Chula Vista, CA
276 4th Ave.
Chula Vista, California 91910
accountspayable@chulavistaca.gov
Annual Product Pricing
PRODUCT RATE QTY DISC (%) NET PRICE
Finance Suite Subscription USD 26,500.00 1 88.760 USD 2,978.60
Utility Billing Subscription USD 102,000.00 1 16.500 USD 85,170.00
Annual Product Pricing Total: USD 88,148.60
Fixed Fee Professional Services
PRODUCT DESCRIPTION RATE QTY DISC % NET PRICE
Fixed Fee Professional
Services Migration w/
Custom
Fixed Fee Professional Services
Migration w/ Custom
USD 28,600.00 1 0.000 USD 28,600.00
Fixed Fee Professional Services Total: USD 28,600.00
Grand Total: USD 116,748.60
* excludes applicable sales tax
Page 1 of 4
Account Manager E-mail Phone Number Payment Terms
Bea Williams bea.williams@sprbrk.com (213) 583-5285 Net 30
Page 120 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Order Details
Customer Name: City of Chula Vista, CA
Customer Contact: Jimmy Vasquez
Governing Agreement(s): This Order Form is governed by the applicable terms found in the Springbrook Cloud
Service Master Agreement Terms and Conditions, (the “MSA”), and the Springbrook
Professional Services Agreement Terms and Conditions, (the “PSA”), each as entered
into by and between Springbrook and Customer on May ____, 2024.
Term(s): 3 Years
Order Terms
In the event of an inconsistency between this Order Form, any governing agreement, purchase order, or invoice, the
Order Form shall govern as it pertains to this transaction.
• This Order Form shall become effective as of the last date of signature (the "Effective Date").
• Order Start Date: Software Licenses, Subscriptions, Maintenance, and Hosting commence upon the earlier of
a) date of delivery* or log -in to hosted software to Customer; or b) 60 days after Order Form Effective Date.
• Subscriptions, Maintenance, Hosting, and Support (“Services”) continue from the Order Start Date until the
expiration of the three-year term listed in this Order Form.
• Services shall terminate at the end of the 3 -year term listed in this Order Form unless the Customer
provides a written notice of renewal at least sixty (60) days before the end of the Order Term (or renewal
term, where applicable).
• Fees for Services will be subject to an automatic annual increase by not more than five percent (5%) of
the prior year’s fees ("Standard Annual Price Increase").
• Any Software Licenses or Hardware are one -time non-refundable purchases.
• CivicPay Online Subscription fee and CivicPay IVR Subscription fee are subject to increase at per account
rate, based on actual accounts.
• CivicPay IVR Message Block Subscriptions expire upon the earlier exhaustion of the Message Block or
twelve (12) months from the Order Start Date.
* The date of delivery of software to the Customer is the date the software is made available to the Customer, either by
delivery of software or delivery of first log -in to a hosted environment, which may be either a test or production
environment. This date of delivery is frequently earlier than the dates professional services are completed, the Customer
completes user acceptance testing, the Customer distributes additional logins to end-users, and the Customer go -live in a
production environment.
Page 2 of 4
Page 121 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Invoice Timing and Delivery
Invoices are delivered electronically via e -mail to the billing contact on file for the Customer. Customer invoices are issued for the full
amount of software and services purchased as follows:
Products Ordered Invoice Timing
Estimated Professional Services, Monthly, in arrears for services in the prior month unless specified in Special Terms.
On-Site Professional Services, and
Travel Expenses*:
Fixed Fee Professional Services: The Effective Date of this Order Form unless specified in Special Terms.
Print Services and Transaction Fees: Monthly, in arrears for transactions in the prior month.
Hardware and One-Time Licenses: Upon the Effective Date of this Order Form.
Software Licenses, Subscriptions,
Maintenance,
and Hosting (New):
Annually in advance upon Order Start Date.
Software Licenses, Subscriptions,
Maintenance, and Hosting
(Renewal):
Forty-five (45) days in advance of the Order Start Date.
Software Subscriptions, Maintenance,
and Hosting (Add-Ons):
Upon delivery of the product, order will be pro -rated to sync with the existing
anniversary billing date and will renew at Customer’s option in accordance
with Section 13 of the MSA.
Software Subscriptions (Migrations): Upon delivery of the product, order will be synced with the existing anniversary
billing date and will renew in accordance with Section 13 of the MSA. This order
replaces and supersedes any previously executed order as it relates
to the products listed within this order. Upon delivery of new product, customer will
receive a prorated credit for any prepaid, unused maintenance fees that will be applied
to the customer’s first invoice.
* Professional Services pricing is based on expected hours using Springbrook’s standard implementation methodology. Actual ho urs
and billings may vary from this estimate. Please note that only when project costs exceed $5,000 of this estimate, a signed change
order will be required to continue work. Changes under $5,000 will continue to be delivered and billed accordingly. On -site
Professional Servi ces will be subject to a daily minimum rate irrespective of hours on -site. All travel costs associated with on-site
travel will be billed as incurred.
Special Order Terms
Special Order Terms (if any):
Page 3 of 4
Page 122 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
By signing, both parties agree to the terms and conditions set forth in this agreement.
* If the Customer requires a PO number on invoices, the Customer must provide Springbrook with the PO number and a
copy of the PO prior to invoice issuance. If a PO number is not provided prior to the invoice issuance date, invoices issued
on this Order Form will be valid without a PO reference.
Springbrook Holding Company, LLC Chula Vista, CA - City of
Signature: Signature:
Name (Print): Name (Print):
Title: Title:
Date: Date:
Purchase Order # (if required):
Page 4 of 4
Approved as to Form
By:_______________________________
Marco A. Verdugo
City Attorney
Page 123 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 1
SPRINGBROOK CLOUD SERVICE
MASTER AGREEMENT
TERMS AND CONDITIONS
These Terms and Conditions, together with each Order Form entered into by the Parties that references
such Terms and Conditions, constitute a binding agreement (“Agreement”) by and between Springbrook
Holding Company, LLC, a Delaware corporation and its Affiliates (“Springbrook”) and the City of Chula
Vista, a chartered municipal corporation(“Customer”). These Terms and Conditions become effective as
of the Effective Date, as defined below. Each of Springbrook and Customer is referred to herein
individually as a “Party” and collectively as the “Parties.”
Use of the Cloud Service, as defined below, is subject to the Agreement. If Customer is entering into the
Agreement on behalf of a company, organization, or another legal entity (an “Entity”), Customer is
agreeing to this Agreement for that Entity and representing to Springbrook that it has the authority to
bind such Entity to the Agreement.
Recitals
WHEREAS, pursuant to that certain Springbrook Software Version Seven Migration Agreement,
dated 12/9/2013, by and between Customer and Springbrook Software, Inc. (as amended,
supplemented, or otherwise modified from time to time, the “Software Agreement”), Customer
previously implemented a software migration to install version 7 of Springbrook’s on-premises
software (the “Software”) for its sewer account billing;
WHEREAS, to date Customer continues to use upgraded versions of this Software and Customer’s
standard operating procedures for sewer billing and accounts receivable functionalities are
substantially integrated with this Software’s features;
WHEREAS, Springbrook has developed an ERP solution for local government agencies that is
offered as a SaaS-based cloud service (the “Cloud Service”);
WHEREAS, Customer is interested in obtaining the functionality provided by a SaaS-based cloud
ERP solution; and
WHEREAS, the Cloud Service was chosen based on its unique performance capabilities and
compatibility with Customer’s existing software systems, and in the discretion of Customer’s
purchasing agent, Springbrook was awarded this contract in accordance with Municipal Code
Section 2.56.070.B.4 as a single source and shall not be subject to the competitive process.
NOW THEREFORE, in consideration of the mutual promises set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereby agree as follows:
Agreement
1.Definitions. Certain capitalized terms used in the Agreement shall have the definitions set forth
below.
Page 124 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 2
(a)Affiliate: means an entity that controls, is controlled by or is under common control with
a Party to the Agreement, where control means the legal or beneficial ownership of more
than fifty percent (50%) of the voting shares of an entity or the ability to direct or cause
the direction of management and policies of such entity.
(b)Authorized User: means natural persons, authorized by Customer to use the Cloud
Service. Authorized Users may include but are not limited to Customer’s employees,
contractors and agents. Each Authorized User will be associated with a single unique
email address and password for purposes of accessing (and being identified within) the
Cloud Service.
(c)Channel Partner: means an authorized reseller, distributor, or other channel partner of
Springbrook from which Customer is able to procure some or all of the Springbrook
Services.
(d)Cloud Software: means the Springbrook proprietary software, in object code format,
including Documentation, updates, patch releases, and upgrades with respect thereto,
that Springbrook makes available for download or otherwise provides for use in
connection with the Cloud Service. Cloud Software excludes any OSS and other third-
party’s software. If and as designated in the Cloud Specifications, the Cloud Software may
be inclusive of application programming interfaces (“APIs”) developed by Springbrook to
enable interaction and integration with the Cloud Service.
(e)Cloud Specifications: means the online specifications for the Cloud Service, as made
available by Springbrook at https://sprbrk.box.com/v/sprbrk-software-specs (which URL
location and content may be updated from time to time by Springbrook).
(f)Confidential Information: means nonpublic, confidential, or proprietary information
regarding either Party’s business, or any aspect of this Agreement not subject to public
records laws, including, without limitation, technology, proprietary data compilations,
Customer Data, computer source codes, compiled or object codes, scripted programming
statements, byte codes or data codes, entity-relation or workflow diagrams, product
plans, customer information and other technical, financial, marketing and business
information. Information that is marked or identified as confidential or proprietary or that
would reasonably be considered to be confidential based on the nature of such
information and the circumstances under which it is disclosed shall be deemed to
constitute Confidential Information. Confidential Information may include confidential or
proprietary information of third parties that the Disclosing Party is permitted to disclose,
and does disclose, to the Recipient hereunder. Confidential Information may be
presented to Recipient in oral, written, graphic, and/or machine-readable formats.
Regardless of presentation format, such information will be deemed and treated as
Confidential Information. Notwithstanding the above, Confidential Information shall not
include information that: (i) the Recipient can demonstrate was in its possession at the
time of disclosure and was not acquired by the Recipient directly or indirectly from the
Disclosing Party on a confidential basis; (ii) becomes available to the Recipient on a non-
confidential basis from a source other than Disclosing Party (whether directly or
indirectly) and which source to the best of Recipient’s knowledge did not acquire the
information on a confidential basis; (iii) is approved for release or use without restriction
Page 125 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 3
by written authorization of an officer of the Party owning the Confidential Information;
(iv) is independently developed by or for the Recipient without use of the Disclosing
Party’s Confidential Information; (v) subject to mandatory disclosure pursuant to a state’s
public records laws, or (vi) has become generally available to the public without breach
of this Agreement by the Recipient or an affiliate of the Recipient.
(g)Customer: means the entity that purchases a Subscription to the Cloud Service directly
from Springbrook or through a Channel Partner.
(h)Customer Data: means any and all content, documents, materials, data and information
that Customer or its Authorized Users, or others who input data into the Cloud Service,
such as citizens of the jurisdiction to which Customer provides services, enter into the
Cloud Service including but not limited to, personal information, information exchanged
between Customer and an Authorized User or an Authorized User and a third party using
the Cloud Service, information used to identify account names or numbers, routing
information, usernames, passwords, access codes and prompts.
(i)Disclosing Party: means a Party that discloses Confidential Information to a Recipient.
(j)Documentation: means information describing the features, functionality, operating
instructions and other aspects of the Cloud Service or Cloud Software. Information
contained on Springbrook’s publicly facing website does not constitute Documentation.
(k)Effective Date: means the date of the first Order Form that is governed by these Terms
and Conditions or the date of first use of the Cloud Service or Cloud Software.
(l)Fees: means amounts payable by Customer to Springbrook as consideration for the
Springbrook Services.
(m)Intellectual Property Rights: means any and all rights existing now or in the future under
laws relating to patents, copyright, industrial design, moral rights, trade secrets,
trademarks, publicity rights, and any and all similar proprietary rights, and any and all
applications for registration, letters patent, renewals, extensions, divisions,
continuations, reissues, and restorations thereof, now or hereafter in force and effect
anywhere in the world.
(n)Maintenance and Support Services or Support: means Springbrook’s obligations related
to availability, error resolution, response to support requests, bug fixes, and the provision
of updates and upgrades to the Cloud Software or Cloud Service as further described in
Exhibit A hereto.
(o)Online Payments Schedule: means service-specific terms and conditions applicable to the
Springbrook Online Payments software, attached hereto as Exhibit B.
(p)Open Source Software or OSS: means software components that are licensed under a
license approved by the Open Source Initiative or similar open source or freeware license
and may be embedded in the delivered Cloud Software.
Page 126 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 4
(q)Optional Cloud Services: mean the optional add-ons to the Cloud Service that may be
available for purchase either directly from Springbrook or through Channel Partner, as
more particularly described or identified in the applicable Order Form.
(r)Order Form: means a purchase document executed by Customer and Springbrook in
which Customer orders Springbrook Services.
(s)Order Terms: means the ordering information (such as order date, products, quantity and
similar information) and terms and conditions specified on an Order Form.
(t)Personal Information: means any data that can identify or locate an individual.
(u)Professional Services: means services relating to the Cloud Service, such as
implementation, customization, and training.
(v)Recipient: means a Party that receives Confidential Information from a Disclosing Party.
(w)Springbrook Services: means the Cloud Service, Cloud Software, Maintenance and
Support Services, and Professional Services.
(x)Subscription: means a paid for right to access and use the Cloud Service.
(y)Subscription Period(s): means the duration of a Customer’s and its Authorized Users’
active, paid Subscription to the Cloud Service, as designated in the Order Form(s).
(z)Supported Modification: means a configuration of or modification to the Cloud Service
requested by Customer that can be consistently supported by Springbrook via APIs, does
not require direct database changes and is capable of being tested and maintained by
Springbrook.
(aa)Term: shall be the period of time for which this Agreement is in effect, as further set forth
in Section 13 of this Agreement. Term is different from a Subscription Period.
(bb)Third Party Services: means products, services, technology, and methods other than
proprietary Springbrook Services that Customer may choose to obtain that are provided
or supported by third parties.
2.Cloud Service Terms and Conditions.
(a)Subject to compliance with the terms and conditions of the Agreement, including advance
receipt of applicable Fees, Springbrook will make the Cloud Service available to
Authorized Users during the Subscription Period for use in connection with the internal
business purposes of Customer.
(b)Springbrook hereby grants to Customer a limited, non-exclusive, non-transferrable right
to access, implement, and configure the Cloud Software during the Subscription Period,
solely for its internal business purposes in connection with use of the Cloud Service and
in accordance with the Cloud Specifications.
Page 127 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 5
(c)Customer will instruct its Authorized Users using the Cloud Services under its account to
comply, as applicable, with all of Customer’s obligations under this Agreement. Customer
is responsible for all activity (whether or not authorized by Customer) occurring under
Customer’s account, including acts and omissions of its Authorized Users and individuals
using credentials of Authorized Users obtained through the negligence or willful
misconduct of Customer or any Authorized User, as though they were those of Customer.
Customer will notify Springbrook promptly of any known unauthorized access or use of
the Springbrook Services.
(d)Customer will be responsible for meeting minimum system requirements for use of the
Cloud Service accessible at https://sprbrk.box.com/v/sprbrk-minimum-requirements
(which URL location and content may be updated from time to time by Springbrook) for
use of the Cloud Service;
(e)Customer will use the Springbrook Services only in accordance with the Agreement, the
applicable Documentation, laws and government regulations, and any written
instructions provided by Springbrook to Customer.
(f)The Cloud Service is provided with a limit of five hundred gigabytes (500GB) of data
storage for all cloud environments. Additional storage can be purchased from
Springbrook by Customer in blocks of five hundred megabytes (500MB), with a price of
one thousand dollars ($1,000) per year. If a Subscription Period for the Cloud Service is
nearing its expiration date or is otherwise terminated, Springbrook will initiate its data
retention processes, including the deletion of Customer Data from systems directly
controlled by Springbrook in the timeframe described in Springbrook’s Data Storage
Policy.. Springbrook’s Data Storage Policy can be accessed at
https://sprbrk.box.com/v/sprbrk-data-storage-policy (which URL location and content
may be updated from time to time by Springbrook).
(g)Customer Data shall be hosted, processed, stored and maintained in the United States at
all times and may not be transferred to other countries.
3.Restrictions on Use of the Cloud Service and Cloud Software. Except as otherwise expressly
provided in the Agreement (including any Exhibits), Customer shall not (and shall not permit any
Authorized User or third party to):
(a)make the Cloud Service available to anyone other than Authorized Users;
(b)use the Cloud Service, or allow access to it, in a manner that circumvents contractual
usage restrictions or that exceeds Customer’s authorized use or usage metrics as set forth
in the Agreement, including the applicable Order Form(s);
(c)sublicense, sell, resell, transfer, assign, distribute, share, lease, make any external
commercial use of, outsource, use on a timeshare or service bureau basis, or use in an
application service provider or managed service provider environment, or otherwise
generate income from, the Springbrook Services;
(d)modify, obscure, alter, or remove any confidentiality or proprietary rights notices
contained in the Springbrook Services;
Page 128 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 6
(e)decompile, disassemble, or reverse engineer any portion of the Cloud Software or Cloud
Service, or attempt to discover any source code or other operational mechanisms of the
Cloud Software or Cloud Service (except where such restriction is expressly prohibited by
law without the possibility of waiver, and then only upon prior written notice to
Springbrook);
(f)use any third-party software provided with the Cloud Software or Cloud Service other
than in connection with the Cloud Software or Cloud Service;
(g)use the Springbrook Services in violation of any applicable laws and regulations;
(h)use the Springbrook Services to (1) store, download or transmit infringing, libelous, or
otherwise unlawful or tortious material, or malicious code or malware, or (2) engage in
phishing, spamming, denial-of-service attacks, spreading viruses or other harmful code,
or other fraudulent or criminal activity, (3) intentionally interfere with or disrupt the
integrity or performance of third party systems, the Cloud Software, Cloud Service or data
contained therein, (4) violate or infringe upon the rights of a third party, including those
pertaining to contract, intellectual property, privacy, or publicity, or (5) attempt to gain
unauthorized access to the Cloud Software or Cloud Service;
(i)access or use the Springbrook Services (inclusive of any APIs) for the purpose of
developing or operating products or services intended to be offered to third parties in
competition with the Cloud Service or allow access by a direct competitor of Cloud
Service;
(j)access the Springbrook Services for purposes of monitoring availability, penetration, or
security testing, or any benchmarking;
(k)obtain or attempt to obtain intellectual property rights to any component of the
Springbrook Services (inclusive of APIs) other than those expressly provided herein;
(l)create derivative works based on the Springbrook Services;
(m)use or allow the use of, the Springbrook Services by anyone located in, under the control
of, or that is a national or resident of a U.S. embargoed country or territory or by a
prohibited end user under export control laws of the United States or any other applicable
jurisdiction.
4.Customer Cooperation. Customer is responsible for selecting Authorized Users and represents
and warrants it shall select Authorized Users who are qualified to operate the Cloud Service and
are familiar with the information, calculations, and reports that serve as input and output. Any
data entry errors are the responsibility of Customer and Springbrook does not assume the cost of
any necessary servicing, repair or correction arising from such errors. Customer acknowledges
that successful installation, implementation and use of the Springbrook Services cannot be
accomplished by Springbrook’s efforts alone and requires substantial effort and cooperation by
Customer. Both Springbrook and Customer shall at all times use their best efforts to actively
participate and cooperate in data conversion, system installation, implementation, training and
use, shall provide each other accurate and timely information, and shall afford each other
reasonable access to information and facilities as reasonably necessary to perform their
Page 129 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 7
obligations under this Agreement. Springbrook’s access to Customer’s system and facilities shall
be subject to compliance with Customer’s reasonable security protocols for remote access. All
substantive communication between Springbrook and Customer will take place between
Springbrook and a project manager designated by Customer.
5.Third Party Services. Customer may choose to obtain products and services that are provided or
supported by third parties for use in conjunction with the Springbrook Services either directly
from the third party providing the Third Party Services or indirectly through Springbrook where
Springbrook acts as a reseller of the Third Party Services. Third Party Services may require
Customer to enter into a license or other agreement with such third party for use of the Third
Party Services. Customer is solely responsible for obtaining any such license or other agreement
for the Third Party Services. CUSTOMER EXPRESSLY ACKNOWLEDGES AND AGREES THAT THIRD
PARTY SERVICES ARE PROVIDED PURSUANT TO THE TERMS OF THE APPLICABLE THIRD PARTY
LICENSE OR SEPARATE AGREEMENT (IF ANY) BETWEEN THE PROVIDER OF THE THIRD PARTY
SERVICES AND CUSTOMER, CUSTOMER MAY SEEK REDRESS FOR USE OF THE THIRD PARTY
SERVICES SOLELY FROM THE THIRD PARTY PROVIDING THE THIRD-PARTY SERVICES.
SPRINGBROOK ASSUMES NO RESPONSIBILITY FOR, AND SPECIFICALLY DISCLAIMS ANY LIABILITY
OR OBLIGATION WITH RESPECT TO, ANY THIRD PARTY SERVICE.
6.Maintenance and Support Terms.
(a)Support. Maintenance and Support Services, as described in Exhibit A of this Agreement,
are included in the Cloud Service Subscription for no additional fees, except as provided
otherwise in Exhibit A.
(b)Partner Support. Notwithstanding anything herein to the contrary, if Customer receives
Maintenance and Support Services from an authorized Channel Partner, then the terms
for such services agreed upon by Customer and such Channel Partner shall govern in lieu
of those set forth in the Exhibit A attached hereto, and Springbrook shall have no support
obligations related to such Maintenance and Support Services received from the
authorized Channel Partner to Customer.
7.Ordering Process.
Order Forms. Customer may purchase the Springbrook Services (Cloud Service Subscriptions, Cloud
Software licenses or Professional Services) by executing and submitting an Order Form. Execution of an
Order Form referencing these Terms and Conditions makes them binding upon Customer, as does any
access or use of the Springbrook Services. Upon execution of an Order Form by both Parties and subject
to Customer’s payment of the corresponding Fees, Springbrook will make the Cloud Service or Cloud
Software, as applicable, available to Customer. Any terms and conditions contained in any quote, invoice,
or purchase order that are inconsistent with or are in addition to the terms and conditions of the
Agreement will be deemed stricken, unless expressly agreed to in writing by Springbrook with explicit
reference to the accepted terms and conditions. Upon acceptance of an Order Form, it will become part
of the Agreement and will supersede any conflicting terms herein.
8.Payment Terms.
(a)Pricing. Customer will be invoiced for those amounts and at those prices set forth in an
Order Form. Fees do not include any customization of the Cloud Software or Cloud Service
Page 130 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 8
(nor support for any such customizations, unless otherwise agreed in writing). If
Customer’s usage of the Cloud Software or Cloud Service is in excess of those amounts
set forth in the Order Form, Customer may be billed for those overages at the then current
rate. Customer acknowledges that purchases under the Agreement are neither
contingent on the delivery of any future functionality or features nor dependent on any
oral or written public comments made by Springbrook regarding future functionality or
features of the Springbrook Services. Except as otherwise specified herein or in an Order
Form, (i) fees are based on the specified Springbrook Services purchased, (ii) payment
obligations are noncancelable and fees paid are non-refundable, except for amounts paid
in error that are not actually due under the Agreement, or as otherwise expressly
provided herein, and (iii) quantities purchased cannot be decreased during the relevant
Subscription Period. For the avoidance of doubt, notwithstanding anything stated herein
(or in any Order Form) to the contrary, Customer is under no payment obligations, nor
may any fees be assessed for the renewal term of any products or services unless
Customer exercises its option to renew at least sixty (60) days prior to the expiration of
the expiring term as set forth in the Order Form.
(b)Payments. Springbrook will invoice Customer in advance for the Cloud Service. Customer
shall pay Invoices within thirty (30) days of the invoice date. If Customer orders additional
Subscription quantities or services part-way through an existing Subscription Period the
initial Subscription Period for the additional quantity or services will be made coterminous
with the existing Subscription Period and the Cloud Service Fee for such additional
quantity will be prorated accordingly. Fees for Optional Cloud Service will be due at the
same time as payment for the corresponding Cloud Service, or (if applicable) as otherwise
specified in the applicable Order Form or governing terms. Customer is responsible for
keeping Springbrook accurately and fully informed of Customer’s billing and contact
information, including providing any purchase order numbers in advance of invoice
issuance. Springbrook shall have no responsibility for any invoices that are not received
due to inaccurate or missing information provided by Customer. Customer shall pay
interest on all payments not received by the invoice due date set forth above at a rate of
one half percent (0.5%) per month or the maximum amount allowed by law, whichever is
lower. All amounts due under this Agreement shall be paid by Customer in full without
any set-off, counterclaim, deduction or withholding, except as otherwise provided herein.
Subscription Fees will be subject to an automatic annual increase of five percent (5%) over
the prior year’s Fees (“Standard Annual Price Increase”). Notwithstanding anything
stated herein to the contrary, Customer may withhold payment for the portion of any
invoice reasonably disputed by it provided that it brings the dispute to the attention of
Springbrook within ten (10) days of receipt of invoice. The parties will promptly confer in
good faith to resolve any disputed invoices. If the parties’ mutual resolution of a dispute
results in a determination that additional monies are owed to Springbrook, Customer will
promptly pay such amount.
(c)Taxes. Fees for Springbrook Services do not include any taxes, levies, duties or similar
governmental assessments of any nature, including but not limited to value-added, sales,
use or withholding taxes, assessable by any local, state, provincial, federal or foreign
jurisdiction (collectively, “Taxes”). Customer is responsible for paying all Taxes. If
Springbrook has the legal obligation to pay or collect Taxes for which Customer is
responsible under this paragraph, the appropriate amount will be invoiced to and paid by
Page 131 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 9
Customer, unless Customer provides Springbrook with a valid tax exemption certificate
authorized by the appropriate taxing authority prior to invoice issuance. For clarity,
Springbrook is solely responsible for taxes assessable against it based on Springbrook’s
income, property and employees.
(d)Suspension of Service. If any amount owing by the Customer for the Cloud Service is
ninety (90) or more days delinquent, Springbrook may, in its sole discretion and
cumulative to its other remedies under this Section, temporarily cease providing to
Customer the Cloud Service upon written notice to the Customer.
9.Ownership.
(a)Ownership of Springbrook Services. As between Springbrook and Customer all right, title
and interest to the Cloud Software, the Cloud Service, all technology underlying the
foregoing, the Documentation, any improvements, design contributions, updates, or
derivative works thereto, any knowledge or processes related thereto and/or provided
hereunder, and all associated Intellectual Property Rights, belong solely to Springbrook,
and is protected under the laws of the United States and the individual states and by
international treaty provisions. Springbrook reserves all rights not granted herein.
(b)Limited Rights. Customer shall only receive those rights in the Springbrook Services that
are expressly granted to it hereunder. Customer acknowledges that the rights granted
under this Agreement, as they pertain to Maintenance and Support and to the Cloud
Software and Cloud Service, do not provide Customer with title to or ownership of the
Cloud Software or Cloud Service.
10.Feedback. Customer grants Springbrook a royalty-free, fully-paid, worldwide, transferable, sub-
licensable, irrevocable, perpetual license to use or incorporate into the Springbrook Services (or
Springbrook’s other software or services) any suggestions, enhancement requests,
recommendations, or other feedback provided by Customer or Authorized Users relating to the
operation or features of the Springbrook Services.
11.Security.
(a)Customer Responsibilities. Cloud Software or data generated by the Cloud Service and
stored in an electronic or paper format in Customer environment or premises, is the sole
responsibility of the Customer and its related entities and affiliates. Springbrook or its
assignees shall not be held responsible for the theft, misappropriation, loss, or misuse of
personal or entity related financial information, utility billing records, or any other
financial information stored in Customer controlled electronic media or physical storage
locations. Customer acknowledges that Customer is solely responsible for the Customer’s
security procedures, including but not limited to password security, encryption of
sensitive information, proper handling of payroll ACH files, physical custody of cash,
internal audit procedures and processes, annual reporting, and proper training in security
and backup procedures.
(b)Security Breaches. Customer acknowledges that, notwithstanding security features of the
Cloud Service, no product, hardware, software or service can provide a completely secure
mechanism of electronic transmission or communication and that there are persons and
Page 132 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 10
entities, including enterprises, governments and quasi-governmental actors, as well as
technologies, that may attempt to breach any electronic security measure. Subject only
to its limited warranty obligations set forth in Section 14, Springbrook will have no liability
for any security breach caused by any such persons, entities, or technologies provided
that Springbrook takes reasonable measures to prevent security breaches. Customer
further acknowledges that the Cloud Service is not guaranteed to operate without
interruptions, failures, or errors.
(c)Customer Data. Customer shall be responsible for Customer Data as entered into, applied
or used in the Cloud Service. Customer is responsible for ensuring the accuracy, quality,
integrity and legality of Customer Data. In addition, Customer acknowledges that
Springbrook generally does not have access to and may not be able to retrieve Customer
Data that is deleted or modified by Customer, its Authorized Users or any third parties
utilizing the Cloud Service. If Customer loses Customer Data, Customer may no longer
have access to such lost Customer Data on the Cloud Service. Customer grants to
Springbrook the non-exclusive right to process Customer Data (including personal data)
for the sole purpose of and only to the extent necessary for Springbrook: (i) to provide
the Springbrook Services; (ii) to verify Customer’s compliance with the restrictions set
forth in Section 3 (Restrictions on Use of the Cloud Service and Cloud Software) if
Springbrook has a reasonable belief of Customer’s non-compliance therewith; and (iii) as
otherwise set forth in this Agreement. Springbrook may utilize the information
concerning Customer’s use of the Cloud Service (excluding any use of Customer’s personal
data or Customer’s Confidential Information) solely to improve the Cloud Service, to
provide Customer with reports on its use of the Cloud Services, and to compile aggregate
statistics and usage patterns by customers using the Cloud Services. Customer represents
and warrants that it has the right to enter, apply or use the Customer Data on the Cloud
Service.
(d) Use of Aggregate Data. Customer agrees that Springbrook may collect, use, and disclose
quantitative data derived from the use of the Cloud Service for industry analysis,
benchmarking, analytics, marketing, and other business purposes. All disclosed data will
be in aggregate form only and will not identify Customer, its Authorized Users, or any
third parties utilizing the Cloud Service.
12.Confidentiality.
(a)Confidentiality Term. The obligations described in this Section commence on the Effective
Date and shall survive indefinitely for Personal Information and ten (10) years for other
information following any termination or expiration of this Agreement (“Confidentiality
Term”).
(b)Confidentiality Obligations. During the Confidentiality Term and subject to the other
terms of this Agreement (including Springbrook’s Privacy Policy, accessible at
https://sprbrk.box.com/v/sprbrk-privacy-policy, which URL and its content may be
updated from time to time by Springbrook), Recipient will protect the confidentiality of
Confidential Information using the same degree of care that it uses to protect its own
information of similar importance, but will in any case use no less than a reasonable
degree of care to protect Confidential Information. Recipient will not directly or indirectly
Page 133 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 11
disclose or disseminate Confidential Information or any part thereof to any third party
without Disclosing Party’s advance express written authorization to do so. Recipient may
disclose Confidential Information only to its employees, contractors or advisors on a
need-to-know basis and who are bound by confidentiality and non-use restrictions at
least as stringent as those contained herein. In responding to a request for Confidential
Information, Recipient will cooperate with Disclosing Party, in a timely fashion and in a
manner consistent with applicable laws, to protect the Confidential Information to the
fullest extent possible.
(c)Notwithstanding anything to the contrary in the Privacy Policy, Springbrook may not sell
Customer Data or Personal Information, and may only use Customer Data or Personal
Information collected during its performance under this Agreement for the purposes set
forth below (“Permitted Purpose”). All Customer Data shall be encrypted and reside in
the United States.
Permitted Purpose:
Deliver the products and services that Customer has requested, including
software updates.
Manage the Customer relationship and provide Customer with customer
support.
Perform research and analysis about Customer’s use of, or interest in,
Springbrook’s products, services or content.
Operate and improve Springbrook’s internal operations, systems, products and
services including benchmarking system performance.
Understand Customer preferences to enhance Customer’s experience.
Respond to Customer’s comments and questions, and provide customer service.
Send Customer service-related information, including confirmations, invoices,
technical notices, updates, security alerts, and support and administrative
messages.
Enforce Springbrook’s terms and conditions.
Recruit, onboard, and distribute payroll and benefits.
To investigate data security issues.
Communicate with Customer, if the customer has opted-in to such notifications,
about products or services that may be of interest to Customer, provided that
Springbrook may communicate with Customer through its Salesforce application
without an opt-in unless Customer expressly opts out.
Notwithstanding anything to the contrary in the Privacy Policy, Springbrook may only
share Personal Information with third parties in the following ways:
When Springbrook has the informed consent of Customer, or in the case of the
Springbrook Community chat or Springbrook blogs, when a user has voluntarily
shared Personal Information.
To Springbrook’s contractors, service providers or other agents (who perform
functions on Springbrook’s behalf) for a Permitted Purpose.
To Springbrook’s parent company or wholly-owned subsidiaries of Springbrook
or its parent company to the extent necessary for a Permitted Purpose.
Page 134 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 12
To comply with laws or respond to, or in connection with, a legal process,
investigation or proceeding, including, without limitation, in response to a law
enforcement agency’s request, responding to a court order, lawful judicial
hearing, subpoena or other compelled disclosure or process.
To transfer such data or information to an acquirer or permitted transferee or
assignee, where applicable (in connection with a merger, acquisition,
divestiture, corporate reorganization, bankruptcy or dissolution, or other
transfer or assignment of Springbrook’s business or assets).
Springbrook may also share aggregated, anonymized or statistical information
about Customer for a Permitted Purpose.
(d)Legally Compelled Information. In the event the Recipient becomes legally compelled (by
deposition, interrogatory, public records requests for documents, subpoena, civil
investigative demand or similar process) to disclose any of the Confidential Information,
or the Recipient determines that it is obligated by law, rule, statute or governmental
regulation, including the California Public Records Act, to disclose any of the Confidential
Information, the Recipient shall provide the Disclosing Party with prompt written notice
of such requirement so that the Disclosing Party, if possible, may seek a protective order
or other appropriate remedy and/or waive compliance with the terms of this Agreement.
In the event that such protective order or other remedy is not obtained, the Recipient
agrees to furnish only that portion of the Confidential Information that it is legally
required to furnish and to exercise reasonable efforts to obtain assurance that
confidential treatment will be accorded such Confidential Information. A Party’s
obligations hereunder with respect to legally compelled information shall continue to be
applicable for all other purposes.
(e)Publicity. During the term of this Agreement, including the term of any amendment
hereto, Springbrook may publicly disclose its ongoing business relationship with
Customer. Such disclosures may indicate Customer’s identity and the Springbrook
Services provided or contracted to be provided to Customer. These disclosures may
include press releases or other communications to media, display on Springbrook web
sites, or use in other marketing activities but only upon written consent from Customer. .
13.Term and Termination.
(a)Term. Unless terminated earlier in accordance with the terms hereof, the term of this
Agreement begins on the Effective Date and will remain in effect until all Cloud Service
Subscriptions expire or three years from the Effective Date, whichever occurs later (the
“Term”). Unless specified otherwise in an Order Form, All Cloud Service Subscriptions will
have an initial three (3) year term and then continue, at Customer’s election (to be
exercised by providing written notice at least sixty (60) days prior to the end of the initial
or applicable renewal term), for up to two (2) one (1) year renewal terms (the initial and
all renewal terms constitute the “Term”). Springbrook may terminate this Agreement
effective upon the expiration of the Subscription Period, by notifying Customer in writing
at least one hundred and twenty (120) days prior to the expiration of the Subscription
Period. Customer’s election notices should be sent to operations@sprbrk.com. This
Agreement may be renewed at any time by execution of an Order Form referencing this
Agreement, and any such renewal will be deemed part of the “Term” hereunder. Subject
Page 135 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 13
to Section 8(b) (Payments), pricing increases will be effective upon renewal of the
Subscription Period and annually thereafter.
(b)Termination. Springbrook or Customer may terminate the Agreement if the other party
materially breaches a material provision thereof, including associated Order Form(s), and,
after receiving a written notice describing the circumstances of the default, fails to correct
the breach within thirty (30) calendar days. Springbrook may immediately terminate or
suspend this Agreement and/or Customer’s Cloud Service Subscription or license to the
Cloud Software upon Customer’s breach of subsections a, c, e, g, h, I, k, l, and m of Section
3 (Restrictions on Use of the Cloud Service and Cloud Software). Notwithstanding the
foregoing, if such breach does not cause immediate harm to the Cloud Service or
Springbrook, Springbrook shall provide notice of the breach to Customer and an
opportunity to correct the breach within seven (7) business days before it terminates or
suspends the Agreement. Either Party may also terminate the Agreement upon written
notice if the other party suspends payment of its debts or experiences any other
insolvency or bankruptcy-type event. Springbrook will refund prepaid amounts on a
prorated basis based on the effective date of termination if the Agreement is terminated
by Customer as the result of a material uncured breach by Springbrook.
(c)Effect of Termination. Upon expiration or termination of this Agreement for any reason,
(i) Customer shall promptly pay any amounts then owing to Springbrook; (ii) the right to
access the Cloud Service or Cloud Software will end; and (iv) each Recipient will return or
destroy, at the Disclosing Party’s option, the Disclosing Party’s Confidential Information
in the Recipient’s possession or control.
(d)Other Termination. Springbrook may terminate this Agreement in the event the Cloud
Software or Cloud Service, as applicable, is phased out across Springbrook’s customer
base. In such event, Springbrook will provide Customer sufficient advance notice, but no
less than 90 days, and the parties will mutually agree to a migration plan for converting
Customer to another Springbrook generally-available offering with comparable
functionality.
(e)Survival. All fees that have accrued as of such expiration or termination, and Sections 1,
5, 8, 9-12, 13(c), 14(d), 15, 16 and 17 will survive any expiration or termination hereof.
14.Warranties.
(a)Mutual Warranties. Each Party represents and warrants that: (a) this Agreement has been
duly executed and delivered and constitutes a valid and binding agreement enforceable
against it in accordance with the terms of the Agreement; (b) the Agreement does not
conflict with any other agreement or arrangement to which a Party is bound, and (c) no
authorization or approval from any third party is required in connection with its
execution, delivery, or performance of this Agreement.
(b)Limited Warranty. Subject to the limitations set forth below, Springbrook warrants that
during the Subscription Period, the Cloud Service will, in all material respects, operate in
conformity with the then-current Cloud Specifications for the applicable Cloud Service
version. Except as otherwise expressly provided in this Agreement, Springbrook’s sole and
exclusive obligation, and Customer’s sole and exclusive remedy, for a breach of this
Page 136 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 14
warranty shall be that Springbrook shall be required to use commercially reasonable
efforts to modify the Cloud Service to conform in all material respects to the Cloud
Specifications. Springbrook will not be responsible to the extent failure of the Cloud
Service to operate as warranted is caused by or results from: (i) any modification to the
Cloud Service other than a Supported Modification unless expressly authorized by
Springbrook; (ii) combination, operation or use of the Cloud Service with Customer’s or
Third Party Services, software or systems; (iii) abuse, willful misconduct, or negligence by
anyone other than Springbrook or Springbrook’s designee (iv) installation, configuration
and use of the Cloud Service other than in accordance with the terms of this Agreement
and/or the applicable Cloud Specifications and Documentation unless expressly
authorized by Springbrook or (v) any of the Exclusions (as defined in the Cloud Service
Level Commitment). If Springbrook agrees to non-standard operations requested by
Customer, it may decline to extend the warranty to such operations. This warranty is not
applicable to the previously installed Software pursuant to the Software Agreement.
Springbrook has no other obligations hereunder with respect to such Software.
(c)Subscription Service Level Commitment. During the Subscription Period, Springbrook
warrants that the Subscription Service will meet the performance level specified in Exhibit
A, which sets forth Customer’s sole and exclusive remedy for Springbrook’s failure to
achieve the stated Cloud Service performance level.
(d)Warranty Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 14, ALL
SPRINGBROOK SERVICES ARE PROVIDED “AS IS” AND SPRINGBROOK AND ITS SUPPLIERS
EXPRESSLY DISCLAIM ANY AND ALL OTHER REPRESENTATIONS AND WARRANTIES, EITHER
EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE WITH RESPECT THERETO, INCLUDING
ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT, OR THE CONTINUOUS, UNINTERRUPTED, ERROR-FREE, VIRUS-
FREE, OR SECURE ACCESS TO OR OPERATION OF THE SPRINGBROOK SERVICES.
SPRINGBROOK EXPRESSLY DISCLAIMS ANY WARRANTY AS TO THE ACCURACY OR
COMPLETENESS OF ANY INFORMATION OR DATA ACCESSED OR USED IN CONNECTION
WITH THE SPRINGBROOK SERVICES OR MAINTENANCE AND SUPPORT OR THAT THE
SPRINGBROOK SERVICES WILL BE COMPATIBLE OR WORK WITH ANY CUSTOMER OR
THIRD-PARTY SOFTWARE OR HARDWARE.
15.Mutual Indemnification.
(a)Indemnification by Customer. Customer will defend (or settle), indemnify and hold
harmless Springbrook, its officers, directors, employees and subcontractors, from and
against any liabilities, losses, damages and expenses, including court costs and reasonable
attorneys’ fees, arising out of or in connection with any third-party claim: (i) alleging that
such third party has suffered injury, damage or loss resulting from Customer’s or any
Authorized User’s use of the Software or Cloud Service in violation of this Agreement or
applicable law, or (ii) related to security breaches or data privacy violations arising from
inadequate or defective security measures on the part of the Customer, or (iii) arising
from the nature and content of Customer Data processed by the Software or Cloud
Service, except where the claim arises out of Springbrook’s negligent processing of
Customer Data, or processing of Customer’s Data in violation of Customer’s directions.
Page 137 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 15
Customer’s obligations under this subsection (a) shall be reduced to the extent that such
third-party claim arises from acts or omissions of Springbrook.
(b)Indemnification by Springbrook.
(i)Intellectual Property Indemnification. Subject to the terms and conditions of this
Section 15, Springbrook will (a) defend, hold harmless and indemnify Customer
at its expense from and against any filed lawsuit (a “Claim”) brought against
Customer by a third party (the “Claimant”) to the extent such Claim alleges (A)
that the Cloud Service or Cloud Software provided by Springbrook to Customer
hereunder violates or infringes the Claimant’s patents, trademarks or copyrights
or misappropriates the Claimant’s trade secrets (collectively, “IP Rights”) or (B)
damages due to Springbrook’s negligence, breach of this Agreement or violation
of applicable laws, in the performance of this Agreement, or personal injury or
property damage caused by Springbrook’s employees, agents or subcontractors
in the performance of this Agreement, and (b) either (i) indemnify Customer with
respect to any final, non-appealable judgments, costs, fines or penalties awarded,
entered or assessed against Customer by a court of competent jurisdiction that
directly result from a Claim, or (ii) pay the value of any settlement with the
Claimant agreed to by Springbrook. Springbrook’s obligations under this
subsection (b)(i) shall be reduced to the extent that the Claim arises from acts or
omissions of the Customer.
(ii)Springbrook Options. If a temporary or permanent injunction is obtained against
the use of any part of the Cloud Service or Cloud Software for the reason that
they infringe or misappropriate any third party’s IP Rights or there is a reasonable
likelihood of such an injunction, Springbrook may at its option (a) modify the
Cloud Service or Cloud Software to avoid the allegation of infringement, (b) obtain
for Customer the right to continue using the Cloud Service or Cloud Software, or
(c) replace the allegedly infringing Cloud Service or Cloud Software with non-
infringing and functionally equivalent technology. In the event of a temporary or
permanent injunction is obtained against the use of any part of the Cloud Service
or Cloud Software, Customer may terminate this Agreement without further
liability to Springbrook. In the event that none of the foregoing is commercially
reasonable, Springbrook may terminate Customer’s right to use the allegedly
infringing portion of the Cloud Service or Cloud Software. Customer shall be
entitled to a prorated refund of any prepaid fees in the event of termination of
the Agreement pursuant to this Section.
(iii)Exclusions. Springbrook will not be liable or have any obligations hereunder for
any infringement of IP Rights to the extent resulting from (a) the combination,
utilization or integration of the Cloud Service or Cloud Software with Customer’s
or any third party’s products or technology, (b) compliance with Customer’s
designs, specifications or instructions; (c) unauthorized modification of the Cloud
Service or Cloud Software by any entity other than Springbrook, (d) use of the
Cloud Service or Cloud Software other than as specified in Springbrook’s
published specifications and documentation, (e) Customer’s failure to
incorporate updates or upgrades that would have avoided the alleged
Page 138 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 16
infringement, provided Springbrook provided written notice of such updates and
upgrades; or (f) Customer’s breach of the Agreement.
(iv)THIS SECTION 15 STATES THE ENTIRE OBLIGATION OF SPRINGBROOK, ITS
AFFILIATES AND ITS LICENSORS WITH RESPECT TO ANY ALLEGED OR ACTUAL
INFRINGEMENT OR MISAPPROPRIATION OF IP RIGHTS BY THE CLOUD SOFTWARE,
CLOUD SERVICE OR ANY OTHER SPRINGBROOK SERVICES.
(c)Indemnification Requirements. In connection with any claim for indemnification under
this Section 15, the indemnified party must: (i) provide the indemnifying party prompt
written notice of such claim; (ii) reasonably cooperate with the indemnifying party, at
indemnified party’s expense, in defense and settlement of such claim; (iii) give sole
authority to the indemnifying party to defend or settle such claim, except no settlement
shall be entered into without the written consent for the indemnified party; and (iv) make
no admission of liability with respect to the claim. The indemnified party may, at its sole
expense, actively participate in any suit or proceeding, through its own counsel.
16.Limitation of Liability.
(a)Waiver of Consequential Damages. Neither Springbrook nor any other person or entity
involved in creating, producing, or delivering the Springbrook Services will be liable for
any indirect, incidental, special, punitive, exemplary or consequential damages, including
lost profits, loss of data, or loss of goodwill, loss of revenue, service interruption,
computer damage or system failure or the cost of substitute products or services, or other
commercial or economic loss of any kind whatsoever, or any liability of Customer to a
third party, arising out of or in connection with this Agreement or from the use of or
inability to use the Springbrook Services, whether based on warranty, contract, tort
(including negligence), product liability or any other legal theory, even if Springbrook was
advised of the possibility of such damages. Some jurisdictions do not allow the exclusion
or limitation of incidental, consequential or special damages, so the above limitations may
not apply to Customer. In no event shall the Customer, its employees, agents and
subcontractors will be liable for any indirect, incidental, special, punitive, exemplary or
consequential damages, including lost profits, or loss of goodwill, loss of revenue, service
interruption, computer damage or system failure, or other commercial or economic loss
of any kind whatsoever, or any liability of Springbrook to a third party, arising out of or in
connection with this Agreement.
(b)In no event will either party’s aggregate liability hereunder to the other party or any third
party arising out of or in connection with this Agreement or from the use of or inability to
use the Springbrook Services, whether in contract, tort or under any other theory of
liability, exceed an amount equal to three (3) multiplied by the Fees paid by Customer to
Springbrook under this Agreement. These limitations shall apply notwithstanding any
failure of essential purpose of any remedy.
17.Other Terms and Conditions.
(a)Dispute Resolution. This Agreement is governed by the laws of the State of California
without regard for its conflict of laws principles. Any controversy or claim arising out of
or relating to this Agreement, or the breach thereof, shall be filed in the courts of
Page 139 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 17
competent jurisdiction in the County of San Diego, California. Each party will initially bear
its own expenses and an equal share of the costs of the arbitration, but the prevailing
party may be awarded its expenses, reasonable attorneys’ fees, and costs.
(b)Equitable Relief. The Recipient acknowledges that unauthorized disclosure of the
Disclosing Party’s Confidential Information or misappropriation or infringement of a
Party’s Intellectual Property Rights could cause substantial harm to the Disclosing Party
or owner of such Intellectual Property Rights for which damages alone might not be a
sufficient remedy and, therefore, that upon any such disclosure, misappropriation or
infringement, the injured Party will be entitled to seek appropriate equitable relief in
addition to whatever other remedies it might have at law or equity.
(c)Assignment. Upon thirty-days’ prior written notice to Customer (unless Springbrook is
contractually or legally precluded from providing such notice), Springbrook may assign its
rights and obligations hereunder in connection with a merger, acquisition, or the sale of
all or substantially all of its stock or assets. Springbrook’s assignment of its rights and
obligations hereunder for any other reason requires Customer’s prior written consent,
which shall not be unreasonably withheld. Assignment by a Customer of its rights and
obligations hereunder requires the advance written consent of Springbrook. Any
attempted assignment or transfer, without such consent, will be void. Subject to the
foregoing, this Agreement will bind and inure to the benefit of the parties, their respective
successors and permitted assigns.
(d)Entire Agreement. This Agreement sets forth the entire agreement between the Parties
and supersedes any and all prior agreements of the Parties with respect to the
transactions set forth herein.
(e)Severability and Amendment. If any particular provision of this Agreement is determined
to be invalid or unenforceable, that determination will not affect the other provisions of
this Agreement, which will be construed in all respects as if the invalid or unenforceable
provision were omitted. No extension, modification, or amendment of this Agreement
will be effective unless it is described in writing and signed by all Parties.
(f)Notice. Except as otherwise specified in this Agreement, all notices, permissions and
approvals hereunder will be in writing and will be deemed to have been given upon: (i)
personal delivery, (ii) the third business day after mailing by first class mail, or (iii) sending
by confirmed email if sent during the recipient’s normal business hours (or, if not, then
on the next business day). Notices will be sent to the address specified by the recipient in
writing when entering into this Agreement or establishing Customer’s account for the
Springbrook Services (or such other address as the recipient may thereafter specify by
notice given in accordance with this Section 17). Customer’s email address for
communication and notice purposes relating to this Agreement will be set forth on the
Order Form (or subsequent email addresses as advised by Customer). Customer agrees
to accept emails from Springbrook at the mail or e-mail address specified in the Order
Form.
(g)Compliance with Laws. Each party will comply with all applicable laws and regulations
with respect to its activities under this Agreement including, but not limited to, export
Page 140 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 18
laws and regulations of the United States and other applicable jurisdictions. Without
limiting the foregoing, Customer will not permit Authorized Users to access or use the
Cloud Service or Cloud Software in violation of any U.S. export embargo, prohibition or
restriction. Further, in connection with the services performed under this Agreement and
Customer’s use of the Cloud Services or Cloud Software, the Parties agree to comply with
all applicable anti- corruption and anti-bribery laws, statutes, and regulations.
(h)Relationship of the Parties. This Agreement does not create a partnership, franchise, joint
venture, agency, fiduciary or similar relationship between the parties.
(i)Waiver and Cumulative Remedies. No failure or delay by either party in exercising any
right under this Agreement will constitute a waiver of that right. Other than as expressly
stated herein, the remedies provided herein are in addition to, and not exclusive of, any
other remedies of a party at law or in equity.
(j)Force Majeure. Neither Party will be liable for any delay or failure to perform under this
Agreement to the extent such delay or failure results from circumstances or causes
beyond the reasonable control of the Party.
(k)Insurance: During the term of this Agreement, Springbrook shall procure and maintain
the policies of insurance described on the attached Exhibit C, incorporated into the
Agreement by this reference (the “Required Insurance”).
Exhibits Follow
Page 141 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 19
EXHIBIT A
MAINTENANCE AND SUPPORT
AVAILABILITY
This Exhibit A is part of the Springbrook Cloud Service Master Agreement Terms and Conditions. Upon
prior written notice to Customer, it may be updated from time to time by Springbrook in its sole discretion.
If Springbrook modifies this Exhibit A in a manner that is materially disadvantageous to Customer,
Customer may terminate the Agreement upon ninety (90) days’ written notice unless Springbrook
restores this Exhibit A to its original form.
I.SUPPORT POLICY
Updates
Updates may address security fixes, critical patches, general maintenance functionality, and
documentation and shall be made available at Springbrook’s discretion. Springbrook is under no
obligation to develop any future functionality or enhancements unless otherwise specified in the
Agreement. If an update for the Cloud Service is made available to Customer pursuant to this Support
Policy, it will automatically replace the previous version of the applicable Cloud Service.
Support Commitment
In support of the Cloud Service, Springbrook will provide Customer with the following first line support:
Telephone Support. Springbrook’s Customer Resource Center (“CRC”), a live technical support facility, will
be available to Customer from 5:00 a.m. until 5:00 p.m. Pacific time Monday through Friday, excluding
Springbrook’s observed holidays.
Email Support. Springbrook provides an electronic mail address (help@sprbrk.com) to which Customer
may submit routine or non-critical support requests (“Support Requests”). Email Support Requests will
be addressed by Springbrook during its regular business hours of 5:00 a.m. until 5:00 p.m. Pacific time
Monday through Friday.
Online Support Materials. Springbrook will make available to Customer certain archived client-side
software updates and other technical information in Springbrook’s online support databases. This Online
Support will be continuously available to Customers.
Upgrade/Downgrade of Severity Level
If, during the Support Request process, the issue either warrants assignment of a higher severity level
than currently assigned or no longer warrants the severity level currently assigned based on its current
impact on the production database, then the severity level will be upgraded or downgraded accordingly
to the severity level that most appropriately reflects its current impact upon mutual consent of the parties
acting reasonably and in good faith.
Third Party Product Support
If any third-party software is supplied by Springbrook, Springbrook disclaims all support obligations for
such third-party software, unless expressly specified by Springbrook in Customer’s Agreement.
Exclusions
Page 142 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 20
The following Support Exclusions (as defined under the Service Availability provision) are not covered by
this Support Policy: (a) Support required due to Customer’s or any end user’s or third party’s misuse of
the Services; (b) Support during times outside of Springbrook’s regular business hours stated above; and
(c) Support necessitated by external factors outside of Springbrook’s reasonable control, including any
force majeure event or Internet access or related problems.
Response and Resolution Goals
Springbrook will respond to Customer’s Support Requests in a manner appropriate for the severity of the
reported issue and will achieve the goals listed below.
A.Critical Severity Level
Definition. System or application is non-functional or seriously affected and there is no reasonable
workaround available (e.g., business is halted).
Response goal. Confirmation of receipt within one (1) business hour. Update as information arrives or at
the interval agreed with the Customer.
Resolution goal. Upon confirmation of receipt, Springbrook begins continuous work on the case.
Springbrook will put forth the effort to provide a workaround, fix, or estimated completion date within 72
hours after the problem has been diagnosed and/or replicated, provided there is an agency representative
available to assist with issue diagnosis and testing during the resolution process.
B.High Severity Level
Definition. System or application is affected and there is no workaround available, or the workaround is
impractical (e.g., system response is very slow, day to day operations continue but are impacted by the
work around).
Response goal. Confirmation of receipt within four (4) business hours.
Resolution goal. Springbrook will put forth the effort to provide a workaround or fix or estimated
completion date within 14 business days after the problem has been diagnosed and/or replicated.
C.Medium Severity Level
Definition. System or application feature is non-functional, and a convenient workaround exists (e.g., non-
critical feature is unavailable or requires additional user intervention).
Response goal. Confirmation of receipt within eight (8) business hours.
Resolution goal. Springbrook will put forth the effort to provide a workaround or fix or estimated
completion date within 21 business days after the problem has been diagnosed and/or replicated.
D.Low Severity Level
Definition. System or application feature works, but there is a minor problem (e.g., incorrect label, or
cosmetic defect).
Page 143 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 21
Response goal. Confirmation of receipt within 24 business hours
Resolution goal. Resolution for the issue may be released as a patch set or be incorporated into a future
release of the product.
II.AVAILABILITY
Service Availability:
Springbrook will (a) provide bandwidth sufficient for Customer’s use of the Cloud Service provided
hereunder and in an applicable Order Form and (b) operate and manage the Cloud Service with a ninety-
nine and one-half percent (99.5%) uptime goal (the “Availability SLA”), excluding situations identified as
“Exclusions” below.
“Exclusions” means any outage that results from any of the following:
(a)Any maintenance performed by Springbrook during Springbrook’s standard maintenance
windows. Springbrook will notify Customer within forty-eight (48) hours of any standard
maintenance and within twenty-four (24) hours for other non-standard emergency
maintenance (collectively referred to herein as “Scheduled Maintenance”). Springbrook
will use commercially reasonable efforts to not conduct Scheduled Maintenance during
Customer’s regular business hours.
(b)Customer’s information content or application programming, or the acts or omissions of
Customer or its agents, including, without limitation, the following:
1.Customer’s failure to provide Springbrook with reasonable advance prior notice
of any pending unusual large deployments of new nodes (e.g., adding over ten
(10) percent total nodes in less than twenty-four (24) hours);
2.Customer’s implementation of any significant configuration changes, including
changes that lead to a greater than thirty percent (30%) change in a one week
period or greater than fifty percent (50%) change in a one month period in the
number of key objects in the system including but not limited to metrics,
snapshots, nodes, events and business transactions;
3.Any misconfiguration by Customer , including, without limitation, configuration
errors and bad or unintended usage of the Cloud Service; and
4.Force majeure or other circumstances beyond Springbrook’s reasonable control
that could not be avoided by its exercise of due care.
(c)Failures of the Internet backbone, telecommunications systems, ISP failures, or the
network by which Customer connects to the Internet backbone or any other network
unavailability.
(d)Any window of time when Customer agrees in writing that Cloud Service
availability/unavailability will not be monitored or counted.
Page 144 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 22
(e)Any problems resulting from Customer combining or merging the Cloud Service with any
hardware or software not supplied by Springbrook or not identified by Springbrook in the
Cloud Specifications as being compatible with the Cloud Service.
(f)Interruptions or delays in providing the Cloud Service resulting from telecommunication
or Internet service provider failures. Customer’s or any third party’s use of the Cloud
Service in an unauthorized or unlawful manner.
Remedies for Excessive Downtime:
In the event the Availability of the Cloud Service falls below the Availability SLA in a given calendar month,
Springbrook will pay Customer a service credit (“Service Credit”) equal to the percentage of the fees set
forth in the table below corresponding to the actual Availability of the Cloud Service during the applicable
calendar month. Springbrook will automatically apply any Service Credits only against future Cloud Service
payments otherwise due from Customer, and Springbrook will provide a refund of such credits to
Customer within 30 days of the termination or expiration of the Agreement. Service Credits may not be
transferred or applied to any other account. Unless otherwise provided in this Agreement, Customer’s
sole and exclusive remedy for any unavailability, non-performance, or other failure by Springbrook to
provide the Cloud Service is the receipt of a Service Credit (if eligible) in accordance with the terms of this
Exhibit A.
System availability is measured by the following formula: x = (n - y) *100 / n
Notes:
(1) “x” is the uptime percentage; “n” is the total number of hours in the given calendar month minus
Exclusions; and “y” is the total number of downtime hours in the given calendar month not caused by an
Exclusion.
Service Availability Percentage of Monthly Service Fees Credited
≥99.5%0%
95.0% ‐ < 99.5%5% (max of $280)
90.0% ‐ < 95.0%10% (max of $560)
80.0% ‐ < 90.0%20% (max $840)
70.0% ‐ < 80.0%30% (max of $1,120)
60.0% ‐ < 70.0%40% (max of $1,400)
< 50%50% (max of $2,800)
Customer Account Login:
For Springbrook user interface access, Springbrook uses TLS 1.2 with AES 256 bit or similar encryption for
protection of data in transit, which is supported by most modern browsers. Springbrook will also restrict
applicable administrative user interface access to Customer corporate networks for additional security on
written request by Customer.
Hosting:
Page 145 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 23
Springbrook’s SaaS platform (servers, infrastructure, and storage) for the Cloud Service is and will remain
hosted in one of the largest data centers in the United States, specifically designed and constructed to
deliver world- class physical security, power availability, infrastructure flexibility and growth capacity.
Springbrook’s data center provider is and will remain SSAE 18 SOC2 compliant, meaning it has been fully
independently audited to verify the validity and functionality of its control activities and processes. Every
Server for the Services is and will remain operated in a fully redundant fail-over pair to ensure high
availability. Data is and will remain backed up nightly, stored redundantly and will be restored rapidly in
case of failure.
Security Patching and updates are actively evaluated by engineers and will be deployed based upon the
impact and risk and stability benefits they offer to Springbrook’s SaaS platform and Customers.
Springbrook will attempt to provide customers reasonable prior notice to security changes, updates, and
patches, unless the delay will lead to a significant risk of impact to customer data.
Fees:
Maintenance and Support Services, as described herein, are included in the Cloud Service Subscription for
no additional fees, except as follows:
Springbrook will bill Customer on an hourly basis for the following services that are beyond the scope of
standard Maintenance and Support Services;
(a)Maintenance or Support in cases where repeated operator-produced error by the same
user continues to occur despite notification to Customer;
(b)Maintenance and Support associated with applications not purchased by Customer from
Springbrook, as documented in an appropriate Order Form or Statement of Work;
(c)Maintenance and Support outside the scope of this Agreement;
(d)Maintenance and Support necessitated by Customer’s failure to provide adequate
internal controls to ensure the accuracy and appropriate use of the Cloud Software or
Cloud Service and compliance with local, state and federal regulations and auditors
requirements;
(e)Costs associated with Customer’s creation or modification of data in Springbrook’s
database except through the appropriate use of the Cloud Software or Cloud Service;
(f)Costs associated with Customer’s own actions to integrate the Cloud Software or Cloud
Service with applications or services not purchased from Springbrook;
(g)Costs associated with Customer’s failure to meet the terms and conditions of this
Agreement;
(h)Costs associated with additional labor or out of pocket expenses incurred while providing
support to Customer in cases where Springbrook has requested but Customer has denied
remote access into a user workstation or the server housing the Cloud Software; and
Page 146 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 24
(i)Labor and travel costs associated with providing on-site for services covered by this
Agreement, subject to Customer’s travel and reimbursement policy.
Springbrook shall notify Customer in writing before performing services that are beyond the scope of
standard Maintenance and Support Services.
Page 147 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 25
EXHIBIT B
ONLINE PAYMENTS SCHEDULE
1.Definitions.
“Citizen” means the person who uses Online Payments (as defined below) to complete a payment
processing that results in the debiting or charging of an amount to such person’s payment
instrument and the crediting of funds to Customer.
“Online Payments” means an optional third-party add-on to the Cloud Software that Springbrook
facilitates designed to collect payment information for the purpose of payment processing.
“Payment Application(s)” refers broadly to all third-party payment applications, gateway,
processors, payment terminals, and service providers that store, process, or transmit cardholder
data as part of authorization or settlement, where these payment applications are sold,
distributed or licensed to Customer.
2.Online Payments.
(a)During the Term, and subject to compliance with the terms and conditions of this Exhibit,
Springbrook will provide the right to access to, and use of, Online Payments to Customer’s
Citizens with an Online Payments enabled Account. For the avoidance of doubt,
Springbrook is only facilitating access to and use of Online Payments and is not a provider
of Online Payments.
(b)To facilitate payments, Customer will be required to provide Springbrook with certain
Customer Data, including specifically, information that allows Springbrook to: (a) transmit
Customer’s identifying information to a Payment Application; (b) if applicable, receive
appropriate payment authorization from a Payment Application; and (c) collect any other
information that Customer or Payment Application requires of Springbrook in order to
facilitate payment processing. Customer authorizes Springbrook to store, process, and
transmit Customer Data as necessary for a Payment Application to facilitate payment
processing between Customer and a third party designated by Customer. Unless
otherwise provided, Online Payments will temporarily store information received from
Customer, such as account information for a Payment Application only for the purpose of
facilitating the payment processing.
(c)The payment processing facilitated through Online Payments is processing activities
between Customer and a third-party and/or Customer and a Payment Application, and
not with Springbrook. Payment Applications are independent contractors and not agents,
employees or subcontractors of Springbrook. Springbrook does not control and is not
responsible for the payment methods made available by the Payment Applications
through Cloud Software nor the Third-Party Services that are sold or purchased by
Customer. Customer acknowledges and agrees that Springbrook cannot ensure that
Citizen or third party will complete a payment processing or that it is authorized to do so.
Page 148 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 26
3.Additional Customer Responsibilities.
Springbrook’s provision of Online Payments is conditioned on Customer’s acknowledgement and
agreement of the following:
(a)Customer is solely responsible for registering and maintaining an account with Online
Payments in order to facilitate the payment processing via Online Payments;
(b)Customer is solely responsible for complying with: (i) all laws applicable to the payment
processing conducted by customer via Online Payments; (ii) all terms of use or other
terms and conditions between Customer and Payment Applications.
(c)Customer is solely responsible for the acts and omissions of its Authorized Users in
relation to their use of Online Payments and for ensuring that such use complies with the
terms of the Agreement;
(d)Customer has exclusive control over and responsibility for the content, quality, and
format of any payments processing it submits to be processed via Online Payments.
Nothing in this Exhibit may be construed to make Springbrook a party to any payment
processed by Online Payments, and Springbrook makes no representation or warranty
regarding the payment processing sought to be affected by Customer’s use of Online
Payments; and
(e)Customer is solely responsible for any and all disputes with any Payment Applications or
Citizens related to or in connection with a payment processing sought to be facilitated via
Online Payments, including, but not limited to: (i) chargebacks; (ii) products or services
not received; (iii) return of, delayed delivery of, or cancelled products or services; (iv)
cancelled transactions; (v) duplicate transactions or charges; (vi) electronic debits and
credits involving bank accounts, debit cards, credit cards, and check issuances; and (vii)
amount of time to complete payment processing.
4.Payment Warranties; Disclaimers’ Limitation of Liability.
(a)Springbrook Payments Warranty. The parties acknowledge and agree that,
notwithstanding any of the provisions of the Agreement, Springbrook’s sole and exclusive
warranties with respect to Online Payments are set forth in the following sentence.
Springbrook warrants that Online Payments as delivered to Customer and used in
accordance with the Agreement and its applicable specifications will perform
substantially in accordance with the specifications associated with the Software.
(b)Disclaimer. Except for the express warranties for the Cloud Software set forth above,
Springbrook: (a) makes no additional representation or warrant of any kind-whether
express, implied in fact or by operation of law, or statutory-with respect to Online
Payments; (b) disclaims all implied warranties, including, but not limited to,
merchantability, fitness for a particular purpose, non- infringement and title; and (c) does
not warrant that Online Payments will be error-free or meet Customer’s requirements.
Customer has no right to make or pass on any representation or warranty on behalf of
Springbrook to any third party.
Page 149 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 27
(c)Limitation of Liability. Springbrook shall not be responsible or liable for any claims,
demands and damages (actual and consequential) arising out of or in any way connected
with a dispute that may arise between Customer and a Citizen, and /or Customer and a
Payment Application regarding the payment processing (“Payment Processing Disputes”),
and Customer hereby agrees that it will not bring or assert any action, claim or cause of
action in jurisdiction or forum against Springbrook arising from or relating to a Payment
Processing Dispute.
5.Third Party Claims.
In addition to the third party claims obligations and subject to the indemnification procedures
under the Agreement, Customer will indemnify and defend Springbrook against, any Claim to the
extent arising from or related to: (a) improper use of Online Payments by Customer or its
Authorized Users; (b) any breach by Customer of its obligations hereunder; (c) the nature and
content of all cardholder data or any related data thereto provided by customer, its Authorized
Users or Citizens through use of Online Payments; (D) violation of any law or the rights of a third
party by Customer through its use of Online Payments and/or the actions or inactions of any third
party to whom Customer grants permissions to use Customer’s Account or access Online
Payments on Customer’s behalf; and (e) the terms of an agreement between Customer and a
Citizen, or Customer and a Payment Application. This indemnification provision shall not apply to
the extent that any claims arise out of or related to Springbrook’s negligence or willful misconduct.
Page 150 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256649.1
August 2023. Cloud Service Master Agreement Terms and Page | 28
Exhibit C
INSURANCE REQUIREMENTS
Page 151 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1
INSURANCE REQUIREMENTS FOR
CONTRACT PROVIDERS INCLUDING IT
SERVICES
Contractor 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 work hereunder and the results of that
work by the Contractor, its agents, representatives, employees or subcontractor.
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 Contractor 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, Cyber Liability, or Errors and Omissions: Insurance
appropriate to the Contractor’s profession, with limit no less than $1,000,000 per
occurrence or claim, $2,000,000 aggregate. (See “claims made policies” below)
If the Contractor maintains higher limits than the minimums shown above, the Entity
requires and shall be entitled to coverage for the higher limits maintained by the
Contractor.
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 the Contractor 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 the Contractor’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.
Page 152 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
Primary Coverage
For any claims related to this contract, the Contractor’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 the Contractor’s insurance and shall not
contribute with it.
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
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer
of said Contractor may acquire against the Entity by virtue of the payment of any loss
under such insurance. Contractor agrees to obtain any endorsement that may be
necessary to affect 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 the Contractor 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,
the Contractor must purchase “extended reporting” coverage for a minimum of
five (5) years after completion of work.
Verification of Coverage
Contractor 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
Page 153 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
to the work beginning shall not waive the Contractor’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.
Page 154 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 1
SPRINGBROOK PROFESSIONAL SERVICES
AGREEMENT
TERMS AND CONDITIONS
These Terms and Conditions, together with each Order Form entered into by the Parties that references
such Terms and Conditions, constitute a binding agreement (“Agreement”) by and between Springbrook
Holding Company, LLC, a Delaware corporation and its Affiliates (“Springbrook”) and the Customer
identified on the Order Form (“Customer”). These Terms and Conditions become effective as of the date
of the related Order Form. Each of Springbrook and Customer is referred to herein individually as a “Party”
and collectively as the “Parties.”
The Agreement governs the provision by Springbrook, and the receipt by Customer, of the Professional
Services (defined below) that Springbrook provides to Customer.
1. SCOPE OF SERVICES.
(a) Subject to compliance with the terms and conditions of the Agreement, Springbrook will
provide Customer with certain skilled services, such as software implementation,
configuration, conversion, customization, upgrade, data extraction, diagnostic, training
and/or other services (collectively “Professional Services”) as specified in the applicable
order form executed by Springbrook and Customer (each an “Order Form”). Any such
Order Form must reference these Terms and Conditions.
(b) Each Order Form, or will include, at a minimum: (i) a description of the Professional
Services and any deliverables and/or materials to be provided to Customer (each, a
“Deliverable”); (ii) applicable fees and payment terms for such Professional Services, if
not elsewhere specified, and (iii) other details regarding the Professional Services. All
Order Forms will be subject to these Terms and Conditions.
(c) For certain types of Professional Services, Springbrook will prepare and make available to
Customer a scope of work or cloud migration project packet before commencing such
services.
(d) Customer acknowledges that data conversion services are limited to three (3) years of
data for new Customers of the Cloud Service. For migrations from an on-premises
solution to the Cloud Service, Springbrook will migrate all the data that exists in the on-
premises solution.
2. CHANGE ORDERS.
If the Customer or Springbrook requests a change in any of the specifications, requirements, Deliverables,
or scope (including drawings and designs) of the Professional Services described in any Order Form, the
Party seeking the change will propose the applicable changes by written notice.
Within a reasonable amount of time (not to exceed four (4) business days in the case of implementation
services) after receipt of written notice, each Party’s designated personnel will meet, either in person or
via telephone conference, to discuss and agree upon any proposed changes. Thereafter, Springbrook will
Page 155 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 2
prepare a change order describing the proposed changes and any associated changes in the Deliverables,
Deliverable schedule, fees and/or expenses, or other aspects of the change (each, a “Change Order”).
Change Orders will not be binding until they are executed by both parties. Executed Change Orders will
be deemed part of, and subject to, the Agreement. If the parties disagree about the proposed changes,
they will promptly escalate the change request to their respective senior management for resolution.
Springbrook is not obligated to agree to a Change Order proposed by Customer.
3. ACCEPTANCE.
Unless provided to the contrary in the Order Form, the following process will be used for accepting
Professional Services and Deliverables. The parties will establish acceptance criteria for each Deliverable.
Customer shall have a ten (10) business day period to review and accept or reject each Deliverable after
delivery, it being understood that the complexity or size of a Deliverable will impact the review and
acceptance process. Customer will provide acceptance or rejection of Deliverables within ten (10)
business days after delivery, but, if mutually agreed by the Parties, that period may be extended by ten
(10) business days based on the complexity and importance of the Deliverable (“Review Period”). If
Customer does not agree that a particular Deliverable meets the acceptance criteria, then Customer
shall notify Springbrook during the Review Period, in writing, with sufficient reasoning for Springbrook
to understand the alleged deficiency. Springbrook shall promptly address any deficiencies and redeliver
any non-conforming Deliverable. Upon Springbrook’s submission of the corrected deficiency of non-
conforming Deliverable, Customer shall then have another Review Period that extends from receipt of
the corrected Deliverable to accept or again reject such Deliverable and submit written notification of
reasons for rejecting the Deliverable. This process continues until Customer accepts the Deliverable, or
provides conditional acceptance subject to a written plan of resolution by Springbrook. Failure to reject
a Deliverable within the Review Period will be deemed acceptance.
4. OWNERSHIP RIGHTS AND LICENSES.
(a) License for Deliverables. Subject to these Terms and Conditions and upon payment of fees
due under an applicable Order Form, Springbrook grants Customer a limited, non-
exclusive, worldwide, nontransferable, terminable license to use the Deliverables solely
for Customer’s internal operations in connection with authorized use of the applicable
Springbrook services. Notwithstanding any other provision of these terms and conditions,
nothing herein is intended to assign or transfer any intellectual property rights in the
proprietary tools, libraries, know-how, techniques, and expertise (“Tools”) used by
Springbrook to develop the Deliverables and/or provide the Professional Services.
(b) Proprietary Rights. As between the parties, Springbrook shall solely and exclusively own
all right, title, and interest in the Professional Services, Deliverables, and any software
provided by Springbrook, including all modifications, enhancements, and derivative
works thereof and any other of Springbrook’s products or services, whether created by
Springbrook or Customer, together with all intellectual property and other proprietary
rights therein. Customer hereby makes all assignments necessary to accomplish the
foregoing ownership. None of the Professional Services or Deliverables will be deemed
to constitute work product or work-for-hire inuring to the benefit of Customer.
Page 156 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 3
(c) No Reverse Engineering. Deliverables constitute Springbrook Confidential Information
and Customer may not reverse engineer, decompile, disassemble, translate, copy,
reproduce, display, publish, create derivative works of, assign, sell, lease, rent, license or
grant any interest in the Deliverables to any party except as expressly permitted by
Springbrook.
(d) Conflicting Language. In the event any language conflicting with this Section 4 is added to
any Order Form or Change Order, the parties expressly agree that such statement will
have no effect on Springbrook’s rights as set out herein.
5. COOPERATION.
(a) Customer Cooperation. Springbrook’s ability to successfully perform the Professional
Services is dependent upon Customer’s reasonable and good faith cooperation by,
without limitation: (i) allocating sufficient resources and timely performing any tasks
reasonably necessary to enable Springbrook to perform its obligations under each Order
Form; (ii) timely delivering any materials and other obligations required under each Order
Form; (iii) providing Springbrook with access to Customer’s sites and facilities during
Customer’s normal business hours and as otherwise reasonably required by Springbrook
to perform the Professional Services, subject to reasonable security policies of the
Customer; (iv) timely responding to Springbrook’s inquiries related to the Professional
Services; (v) assigning a project manager as a primary point of contact for Springbrook;
(vi) actively participating in scheduled project meetings; and (vii) providing, in a timely
manner and at no charge to Springbrook, office workspace, telephone and other facilities,
suitably configured computer equipment, access to Customer’s appropriate and
knowledgeable employees and continuous administrative access to Customer’s accounts,
and coordination of onsite and telephonic meetings all as reasonably required by
Springbrook.
(b) Customer Delays. In the event of delays by Customer, Customer acknowledges that
schedules for the Professional Services may be delayed by the number of days delayed by
Customer, or longer if mutually agreed between the parties acting reasonably. Customer
agrees that if additional time is required to complete the Professional Services as the
result of Customer delays, such time will be charged to Customer at Springbrook’s then-
current time-and-materials rates.
6. PAYMENT TERMS.
(a) Invoicing and Payment. Customer will be invoiced for the amounts and at the times set
forth in the Order Form. Professional Services fees are due and payable within thirty (30)
days of the invoice date.
(b) Billing Info & Overdue Charges. Customer is responsible for keeping Springbrook
accurately and fully informed of Customer’s billing and contact information, including
providing any purchase order numbers in advance of invoice issuance. If any Professional
Service fees are not received from Customer by the due date, they will accrue interest at
the rate of one half percent (0.5%) of the outstanding balance per month, or the
maximum rate permitted by law, whichever is lower.
Page 157 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 4
(c) Overdue Payments. If any amount owing by Customer hereunder for any of the
Professional Services is sixty (60) or more days overdue, Springbrook may, without
limiting its other rights and remedies, suspend the Professional Services and/or stop
performance of the Professional Services until such amounts are paid in full.
(d) Taxes. Professional Services fees do not include any taxes, levies, duties, or similar
governmental assessments of any nature, including but not limited to value-added, sales,
use or withholding taxes, assessable by any local, state, provincial, federal, or foreign
jurisdiction (collectively, “Taxes”). Customer is responsible for paying all Taxes. If
Springbrook has the legal obligation to pay or collect Taxes for which Customer is
responsible under this paragraph, the appropriate amount will be invoiced to and paid by
Customer, unless Customer provides Springbrook with a valid tax exemption certificate
authorized by the appropriate taxing authority prior to invoice issuance. For clarity,
Springbrook is solely responsible for taxes assessable against it based on Springbrook’s
income, property, and employees.
7. WARRANTY.
Springbrook warrants that the Professional Services will be performed for and delivered to Customer in a
good, diligent, workmanlike manner, consistent with the practices and standards of care generally
accepted within and expected of Springbrook’s industry. For any breach of this warranty in Section 7,
Customer’s sole remedy will be the re-performance of the applicable Professional Services by
Springbrook. This warranty will be in effect for a period of ninety (90) days from acceptance of any
Professional Services.
8. DISCLAIMER.
Section 7 sets forth the sole and exclusive warranties and remedies related to the Professional Services,
Deliverables and Tools performed or provided hereunder. TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, EXCEPT AS EXPRESSLY PROVIDED HEREIN, SPRINGBROOK DOES NOT MAKE ANY
WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AND
SPRINGBROOK SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ANY WARRANTIES OF
MERCHANTABILITY, NON-INFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY
WARRANTIES ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE. EXCEPT AS PROVIDED HEREIN,
THE PROFESSIONAL SERVICES AND DELIVERABLES PROVIDED TO CUSTOMER ARE ON AN “AS IS” AND “AS
AVAILABLE” BASIS.
9. TERM AND TERMINATION.
(a) Term. The Agreement commences on the date of last signature on the first Order Form
issued hereunder (“Effective Date”) and will terminate three years from the Effective
Date, subject to the Customer’s right to renew the agreement for two one-year terms,
unless terminated earlier in accordance with this section (the “Term”). Each Order Form
will commence on the date it is last signed and will expire upon completion of the project
set forth in the applicable Order Form.
(b) Cancellation. Once signed by both parties, an Order Form will be non-cancellable, except
as otherwise explicitly stated in such Order Form.
Page 158 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 5
(c) Termination. This Agreement will terminate automatically when any agreement for Cloud
Services to which this Agreement is related and/or all Order Forms referencing this
Agreement are terminated or expired. Either Party may terminate this Agreement for
cause: (i) upon thirty (30) days’ written notice to the other Party of a material breach if
such breach remains uncured at the expiration of such period, or (ii) if the other Party
becomes the subject of a petition in bankruptcy or any other proceeding relating to
insolvency, receivership, liquidation or assignment for the benefit of creditors.
(d) Effect of Termination. For the avoidance of doubt, termination under any of the foregoing
subsections will not affect Customer’s outstanding payment obligations to Springbrook in
respect of Professional Services and Deliverables provided prior to such termination.
Upon any termination of this Agreement, Customer will have no rights to continue receipt
of any ongoing or additional Professional Services, whether or not such Professional
Services are completed prior to such termination. Springbrook will refund prepaid
amounts on a prorated basis based on the effective date of termination if the Agreement
is terminated due to material uncured breach by Springbrook.
(e) Survival. All fees that have accrued as of such expiration or termination, and Sections 1,
5, 8, 912, 13(c), 14(d), 15, 16 and 17 will survive any expiration or termination hereof.
10. CONFIDENTIALITY.
(a) Confidentiality Term. The obligations described in this Section commence on the Effective
Date and will continue indefinitely for any data that can identify or locate an individual
(“Personal Information”) and ten (10) years for other information following any
termination or expiration of this Agreement (“Confidentiality Term”).
(b) Definitions. “Disclosing Party” and “Recipient” refer respectively to the party which
discloses information and the party to which information is disclosed in a given exchange.
“Confidential Information” means all disclosed information including, personally
identifiable information, non-public data, proprietary data compilations, computer
source codes, compiled or object codes, scripted programming statements, byte codes or
data codes, entity-relation or workflow diagrams, financial records or information, client
records or information, organizational or personnel information, business plans, or
works-in-progress, even where such works, when completed, would not necessarily
comprise Confidential Information. The foregoing listing is not intended by the Parties to
be comprehensive, and any information which Disclosing Party marks or otherwise
designates as “Confidential” or “Proprietary” will be deemed and treated as Confidential
Information, as will information that would reasonably be considered to be confidential
given its nature and the circumstances under which it is disclosed. Information which
qualifies as Confidential Information may be presented to Recipient in oral, written,
graphic, and/or machine-readable formats. Regardless of presentation format, such
information will be deemed and treated as Confidential Information.
(c) Confidentiality Obligations. During the Confidentiality Term (as defined below) and
subject to the other terms of this Agreement (including Springbrook’s Privacy Policy,
accessible at https://sprbrk.box.com/v/sprbrk-privacy-policy, which URL and its content
may be updated from time to time by Springbrook), Recipient will protect the
Page 159 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 6
confidentiality of Confidential Information using the same degree of care that it uses to
protect its own information of similar importance, but will in any case use no less than a
reasonable degree of care to protect Confidential Information. Recipient will not directly
or indirectly disclose, or disseminate Confidential Information or any part thereof to any
third party without Disclosing Party’s advance express written authorization to do so.
Recipient may disclose Confidential Information only to its employees, contractors, or
advisors on a need-to-know basis and who are bound by confidentiality and non-use
restrictions at least as stringent as those contained herein. In responding to a request for
Confidential Information, Recipient will cooperate with Disclosing Party, in a timely
fashion and in a manner consistent with applicable laws, to protect the Confidential
Information.
(d) Legally Compelled Information. In the event the Recipient becomes legally compelled (by
deposition, interrogatory, public records requests for documents, subpoena, civil
investigative demand or similar process) to disclose any Confidential Information, or the
Recipient determines that it is obligated by law, rule, statute or governmental regulation,
including the California Public Records Act, to disclose any of the Confidential
Information, the Recipient shall provide the Disclosing Party with prompt written notice
of such requirement so that the Disclosing Party, if possible, may seek a protective order
or other appropriate remedy and/or waive compliance with the terms of this Agreement.
In the event that such protective order or other remedy is not obtained, the Recipient
agrees to furnish only that portion of the Confidential Information that it is legally
required to furnish and to exercise reasonable efforts to obtain assurance that
confidential treatment will be accorded such Confidential Information. A Party’s
obligations hereunder with respect to legally compelled information shall continue to be
applicable for all other purposes.
(e) Publicity. During the Term of this Agreement, including the term of any amendment
hereto, Springbrook may publicly disclose its ongoing business relationship with
Customer. Such disclosures may indicate Customer’s identity and the Springbrook
Services provided or contracted to be provided to Customer. These disclosures may
include press releases or other communications to media, display on Springbrook web
sites, or use in other marketing activities, only upon Customer’s written consent.
(f) Customer’s Confidential Information. Springbrook will have the right to use any Customer
Confidential Information solely for providing the Professional Services to Customer
hereunder. Notwithstanding the foregoing, Springbrook may use aggregate Customer
Confidential Information in anonymous form for Springbrook development, internal
training, and other reasonable business purposes not specific to Customer or its End
Users. Springbrook shall not assign or otherwise disclose any Customer Confidential
Information to third parties except for contractors for the purpose of performing this
Agreement. Springbrook shall not sell any Customer data, including Customer
Confidential Information, for any purposes. Springbrook and its related entities and
affiliates shall not use Confidential Information for any other purpose than to the extent
necessary to perform its duties under this Agreement. Springbrook will disclose
Confidential Information only to Springbrook employees and contractors and Channel
Partners with a need to access such information as a necessary part of the performance
of the Agreement. Springbrook shall require all Springbrook personnel, contractors and
Page 160 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 7
Channel Partner personnel to comply with all applicable laws relating to the access, use
and disclosure of Confidential Information, and shall contractually require its contractors
to comply with the provisions of this Section 10.
For greater clarity and notwithstanding anything to the contrary herein, the following
constitute permitted uses of Personal Information (“Permitted Purpose”):
Deliver the products and services that Customer has requested, including
software updates.
Manage the Customer relationship and provide Customer with customer
support.
Perform research and analysis about Customer’s use of, or interest in,
Springbrook’s products, services or content.
Operate and improve Springbrook’s internal operations, systems, products and
services including benchmarking system performance.
Understand Customer preferences to enhance Customer’s experience.
Respond to Customer’s comments and questions, and provide customer service.
Send Customer service-related information, including confirmations, invoices,
technical notices, updates, security alerts, and support and administrative
messages.
Enforce Springbrook’s terms and conditions.
Recruit, onboard, and distribute payroll and benefits.
To investigate data security issues.
Communicate with Customer, if the customer has opted-in to such notifications,
about products or services that may be of interest to Customer, provided that
Springbrook may communicate with Customer through its Salesforce application
without an opt-in unless Customer expressly opts out.
Notwithstanding anything to the contrary herein, Springbrook may only share Personal
Information with third parties in the following ways:
When Springbrook has the informed consent of Customer, or in the case of the
Springbrook Community chat or Springbrook blogs, when a user has voluntarily
shared Personal Information.
To Springbrook’s contractors, service providers or other agents (who perform
functions on Springbrook’s behalf) for a Permitted Purpose.
To Springbrook’s parent company or wholly-owned subsidiaries of Springbrook
or its parent company to the extent necessary for a Permitted Purpose.
To comply with laws or respond to, or in connection with, a legal process,
investigation or proceeding, including, without limitation, in response to a law
enforcement agency’s request, responding to a court order, lawful judicial
hearing, subpoena or other compelled disclosure or process.
To transfer such data or information to an acquirer or permitted transferee or
assignee, where applicable (in connection with a merger, acquisition,
divestiture, corporate reorganization, bankruptcy or dissolution, or other
transfer or assignment of Springbrook’s business or assets).
Springbrook may also share aggregated, anonymized or statistical information
about Customer for a Permitted Purpose.
Page 161 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 8
11. INDEMNIFICATION.
Subject to the terms and conditions of this Section 11, Springbrook will (a) defend, hold harmless and
indemnify Customer at its expense from any claims, demands, complaints, or lawsuits (a “Claim”) brought
against Customer by a third party (the “Claimant”) to the extent such Claim alleges that the Professional
Service provided by Springbrook to Customer hereunder (A) violates or infringes the Claimant’s patents,
trademarks or copyrights or misappropriates the Claimant’s trade secrets (collectively, “IP Rights”) or (B)
have caused damages to the Claimant as the result of Springbrook’s negligence or breach of this
Agreement, and (b) either (i) indemnify Customer with respect to any final, non-appealable judgments,
costs, fines or penalties awarded, entered or assessed against Customer by a court of competent
jurisdiction that directly result from a Claim, or (ii) pay the value of any settlement with the Claimant
agreed to by Springbrook. No settlement may be entered into without the written consent of the
Customer where there is an admission of liability.
12. LIMITATION OF LIABILITY.
(a) Waiver of Consequential Damages. Neither Springbrook nor any other person or entity
involved in creating, producing, or delivering the Professional Services, including any
Deliverables, will be liable for any indirect, incidental, special, punitive, exemplary or
consequential damages, including lost profits, loss of data or loss of goodwill, loss of
revenue, service interruption, computer damage or system failure or the cost of
substitute products or services, or other commercial or economic loss of any kind
whatsoever, or any liability of Customer to a third party, arising out of or in connection
with this Agreement or from the use of or inability to use the Professional Services,
whether based on warranty, contract, tort (including negligence), product liability or any
other legal theory, even if Springbrook was advised of the possibility of such damages,.
Some jurisdictions do not allow the exclusion or limitation of incidental, consequential or
special damages, so the above limitations may not apply to Customer. In no event shall
Customer be liable for any indirect, incidental, special, punitive, exemplary or
consequential damages, including lost profits, loss of data or loss of goodwill, loss of
revenue, service interruption, computer damage or system failure, or other commercial
or economic loss of any kind whatsoever, or any liability of Springbrook or to a third party,
arising out of or in connection with this Agreement.
(b) In no event will Springbrook’s aggregate liability hereunder to Customer or any third party
arising out of or in connection with this Agreement or from the use of or inability to use
the Professional Services, whether in contract, tort or under any other theory of liability,
exceed an amount equal to three (3) multiplied by the Fees paid by Customer to
Springbrook under this Agreement. These limitations shall apply notwithstanding any
failure of essential purpose of any remedy.
13. GENERAL.
(a) Notice. Except as otherwise specified in this Agreement, all notices, permissions and
approvals hereunder must be in writing and will be deemed to have been given upon: (i)
personal delivery, (ii) the third business day after mailing by first class mail, or (iii) sending
by confirmed email if sent during the recipient’s normal business hours (or, if not, then
on the next business day). Notices will be sent to the address specified by the recipient in
Page 162 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 9
writing when entering into this Agreement or establishing Customer’s account for the
Professional Services (or such other address as the recipient may thereafter specify by
notice given in accordance with this Section 12(a)). Customer’s email address for
communication and notice purposes relating to this Agreement will be set forth on the
Order Form (or subsequent email addresses as advised by Customer). Customer agrees
to accept emails from Springbrook at the e-mail address specified in the Order Form.
(b) Compliance with Laws. Each party will comply with all applicable laws and regulations
with respect to its activities under this Agreement including, but not limited to, the export
laws and regulations of the United States and other applicable jurisdictions.
(c) Relationship of Parties. Springbrook’s relationship with Customer pursuant to this
Agreement will be that of an independent contractor. Neither party will have any
authority to bind the other, to assume or create any obligation, to enter into any
agreements, or to make any warranties or representations on behalf of the other. Nothing
in this Agreement will be deemed to create any agency, partnership, or joint venture
relationship between the parties.
(d) Use of Contractors. Springbrook shall provide advance written notice to Customer prior
to using any third parties to assist with the Professional Services, including, without
limitation, any data migration, configuration, implementation, and custom code
development processes. If Customer objects to use of a particular third party,
Springbrook shall use commercially reasonable efforts to utilize a different third party.
Customer acknowledges that identification and utilization of another third party may
delay the performance of the Professional Services.
(e) Waiver and Cumulative Remedies. No failure or delay by either party in exercising any
right under this Agreement will constitute a waiver of that right. Other than as expressly
stated herein, the remedies provided herein are in addition to, and not exclusive of, any
other remedies of a party at law or in equity.
(f) Severability. If any provision of this Agreement is held by a court of competent jurisdiction
to be contrary to law, the provision will be modified by the court and interpreted so as
best to accomplish the objectives of the original provision to the fullest extent permitted
by law, and the remaining provisions of this Agreement will remain in effect.
(g) Assignment. Upon thirty-days’ prior written notice to Customer (unless Springbrook is
contractually or legally precluded from providing such notice), Springbrook may assign its
rights and obligations hereunder in connection with a merger, acquisition, or the sale of
all or substantially all of its stock or assets. Springbrook’s assignment of its rights and
obligations hereunder for any other reason requires Customer’s prior written consent,
which shall not be unreasonably withheld. Assignment by a Customer of its rights and
obligations hereunder requires the advance written consent of Springbrook. Any
attempted assignment or transfer, without such consent, will be void. Subject to the
foregoing, this Agreement will bind and inure to the benefit of the parties, their respective
successors and permitted assigns.
Page 163 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00068\42256605.1
August 2023. Springbrook Professional Services Terms and Conditions Page | 10
(h) Force Majeure. Neither Party will be liable for any delay or failure to perform under this
Agreement to the extent such delay or failure results from circumstances or causes
beyond the reasonable control of the Party.
(i) Dispute Resolution. This Agreement is governed by the laws of the State of California
without regard for its conflict of laws principles. Any controversy or claim arising out of
or relating to this Agreement, or the breach thereof, will be filed in the courts of
competent jurisdiction in the County of San Diego, California. Each party will initially bear
its own expenses and an equal share of the costs of the arbitration, but the prevailing
party may be awarded its expenses, reasonable attorneys’ fees, and costs.
(j) Entire Agreement. This Agreement constitutes the entire agreement between the Parties
concerning its subject matter and supersedes all prior communications, agreements,
proposals, or representations, written or oral, concerning its subject matter.
Notwithstanding any language to the contrary therein, no additional or conflicting terms
or conditions stated in any master agreement to which this Agreement is incorporated,
any Customer Order Form or other order documentation, will be incorporated into or
form any part of this Agreement unless expressly agreed to by both parties in a mutually
signed writing, and all such terms or conditions will be null. Under no circumstances will
the terms, conditions or provisions of any RFP, purchase order, invoice or administrative
document issued by Customer in connection with this Agreement be deemed to modify,
alter, or expand this Agreement, regardless of any failure of Springbrook to object to such
terms, provisions, or conditions. No other act, document, usage, custom or waiver will be
deemed to amend or modify this Agreement unless agreed to in writing signed by a duly
authorized representative of both parties.
Page 164 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Public Arts Grant Award Recommendations: Accept the Performing and Visual Arts Grant Review Panel’s
Award Recommendations for Fiscal Year 2023-24
Report Number: 24-0137
Location: No specific geographic location
Department: Library
G.C. § 84308: No
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 the Performing and Visual Arts Grant Review Panel’s award recommendations
for Fiscal Year 2023-24 with a total monetary grant award totaling $78,300.
SUMMARY
The Performing and Visual Arts Grant (PVAG) Program is funded through a sublease agreement with Live
Nation whereby a portion of annual ticket sales from the Amphitheater are allocated to Chula Vista cultural
arts. The PVAG funds projects in a variety of artistic fields, including dance, design arts, media arts, music,
photography, theatre, traditional/folk arts, visual arts, and interdisciplinary expressions with the purpose of
creating a robust and sustainable cultural arts scene in Chula Vista. This year’s PVAG Review Panel has
recommended grant funding in the amount of $78,300.
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.
Page 165 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Cultural Arts Commission accepted these recommendations at its May 2024 meeting.
DISCUSSION
Funded through a portion of ticket sales from the Amphitheater, the PVAG has granted upwards of $1 million
since its inception and is a primary City funding source of cultural arts in Chula Vista. It is the objective of the
PVAG Program to support projects that nurture and cultivate innovation and creativity, strengthen Chula
Vista’s competitive edge, and create a better quality of life for all residents. Projects funded through the PVAG
must have a community benefit and be accessible to the public.
The Review Panel has recommended funding for 12 of the 41 grant requests received for a total PVAG grant
recommendation of $78,300 dollars (Attachment 1).
2024 Grant Review Panel Members:
Kate Bishop – Cultural Arts Commissioner
Hans Chamberlain – Program Manager of Performing and Visual Arts, Sweetwater Union High School
District
Marc Keehmer - Visual and Performing Arts Coordinator, Chula Vista Elementary School District
Karla Mendez – Community Engagement Specialist, City of Chula Vista
Deborah Nevin – Arts Facilitator, School for the Creative and Performing Arts
Taylor Ytuarte – Librarian III, City of Chula Vista
Beatrice Zamora – Community Member At Large
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 Council Members, of any other fact that
may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact as a result of this action. Funding is included in the fiscal year 2023-2024
appropriations. The recommended grant awards are fully funded from available PVAG funding.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact.
ATTACHMENTS
1. 2024 PVAG Award Recommendations
Staff Contact: Joy Whatley, Library Director and Erwin Magbanua, Principal Librarian and Cultural Arts
Manager
Page 166 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING THE PERFORMING AND
VISUAL ARTS GRANT REVIEW PANEL’S AWARD
RECOMMENDATIONS FOR FISCAL YEAR 2023/24
WHEREAS, in 1997, the City Council approved a Sublease with Live Nation, Inc. that
established a process whereby ticket sale proceeds from the Amphitheater would be paid to the
City and utilized for a Performing and Visual Arts Fund (PVAG Fund); and
WHEREAS, the PVAG Fund was established to stimulate and grow Cultural Arts in the
City of Chula Vista; and
WHEREAS, all grant money awarded will fund cultural arts in the City of Chula Vista,
including artists, artistic collaborations, materials such as supplies and costumes for
programs/performances, and to assist in strengthening and growing the cultural arts scene in Chula
Vista; and
WHEREAS, there were 41 applications received for Fiscal Year 2023/24, which included
applications from individual artists, City departments, and a variety of arts organizations and non-
profits; and
WHEREAS, the Performing and Visual Arts Grant Review Panel (Review Panel) reviewed
and scored assigned applications; and
WHEREAS, the Review Panel recommended funding 12 of the 41 grant applications in
the amount of $78,300 dollars; and
WHEREAS, at a regularly scheduled meeting on May 1st, 2024, the Cultural Arts
Commission accepted the Review Panel’s Fiscal Year 2023/24 grant recommendations; and
WHEREAS, the Library Director has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
“Project” as defined under Section 15378 of the State of California CEQA Guidelines because the
activity consists of a governmental administrative/fiscal activity that will not result in direct or
indirect physical changes in the environment. Therefore, pursuant to Section 15060(c)(3) of the
State of California CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental
review is required.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it hereby accepts the PVAG Review Panel’s Fiscal Year 2023/24 grant award
recommendations, in the form presented.
Page 167 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No.
Page 2
Presented by Approved as to form by
Joy Whatley Marco A. Verdugo
Library Director City Attorney
Page 168 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1
FY24 PERFORMING AND VISUAL ARTS GRANT RECOMMENDATIONS
ARTS on Campus @ Bayfront Charter High School
A Reason to Survive (ARTS) will work with youth ages
14-18 at Bayfront Charter High School through the
ARTS on Campus program, working collaboratively with
youth to co-create a mural legacy project.
Award: $6,200
Artists and Supplies
Cine Libre - Free Public Film Screenings
San Diego Filipino Cinema will curate, license and
screen award-winning short films from filmmakers of
Filipino heritage to the diverse community in Chula Vista
for free, in partnership with the Chula Vista Library and
the Southwestern College. SDFC will also invite
participating filmmakers to have dialogs with the
community after the film screenings.
Award: $7,000
Filmmakers and Designers
Classics4Kids Musical Connections
Concert series for all audiences will showcase talented
musicians from the award-winning Classics
Philharmonic Orchestra, accompanied by educators
from C4K. Featuring interactive programs designed in
alignment with CA Arts Standards, aiming to enrich
artistic experiences and contribute to improved
academic achievement and social-emotional well-being
among audiences.
Award: $6,600
Musicians
Harborside Elementary Mural
A comprehensive arts-education and legacy style mural
program with 6th grade students at Harborside
Elementary. Featuring a student-painted mural
beautification project on Harborside’s campus that both
students and the public can enjoy.
Award: $7,000
Artists and Supplies
Music in the Park
The City of Chula Vista Recreation Department will host
its summer Music in the Park concert series at the
Memorial Park Bowl. The concerts hope to bring
families in the community together through fun and
engaging activities for all ages, while enjoying a variety
of entertaining and talented musical acts.
Award: $7,000
Musicians and Sound Equipment
Page 169 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
FY24 PERFORMING AND VISUAL ARTS GRANT RECOMMENDATIONS
Native American and Indigenous Artist Residency
with Gabriel Ayala: Promoting Healing and
Wellness Through Culture and Music
Seven-day residency featuring Gabriel Ayala, a member
of the Yaqui Nation widely known for his acclaimed
guitar composition and performance. Performances and
lectures offering Chula Vista a powerful opportunity to
center and celebrate Native American art, perspectives,
and ways of being.
Award: $7,000
Artist
Rice Elementary Mural
Featuring a student-painted mural project on the Lilian
J. Rice Elementary School campus that aims to
stimulate growth, creativity and imagination for students
and help them take ownership of their spaces through
mural making.
Award: $7,000
Artists and Supplies
Rosebank Elementary: Art with Heart to the Beat of
Our Drums
A drumming circle program where Rosebank
Elementary students will be taught about the care and
technique of playing in drum circles at the school.
Students will also have opportunities to share in
performances at school and in the community.
Award: $6,500
Drum Kit
The Rosin Box Project: Out of the Box at Chula
Vista Public Libraries
TRBP will present performance excerpts from its
Empower program, a performance series of all-female
choreographers, to Chula Vista Public Libraries for
audiences of all ages, along with creative movement
workshops with attendees after each performance.
Award: $7,000
Dancers and Choreographers
San Diego Youth Symphony Opus Project
On-site music education programs in the Chula Vista
Elementary School District, student concerts for the
community, and spring and summer music camps for
students.
Award: $7,000
Instruments and Supplies
Page 170 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
FY24 PERFORMING AND VISUAL ARTS GRANT RECOMMENDATIONS
Southwestern College Art Gallery: Tom Driscoll
Exhibition
Art exhibition featuring a career retrospective on the
work of local artist Tom Driscoll, who grew up and was
educated in Chula Vista, including studying at
Southwestern College in the early years of its Main
campus. His life and art are strongly influenced by his
own and his family’s involvement in the aerospace
industry and its local facilities.
Award: $3,000
Artist and Supplies
Storytellers of San Diego: Local Folklore,
Storytelling, and Cultural Heritage Project
Will celebrate, promote, record, and preserve the rich
local oral folklore of Chula Vista, through a series of live
storytelling performances, focused on the legends of
Proctor Valley Road. In addition to these
performances—culminating in a wilderness hike and
outdoor storytelling evening in Proctor Valley itself—the
project will also include the publication of a book
containing these local stories, a social media campaign,
and video and audio recordings of the stories.
Award: $7,000
Storytellers
Page 171 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Lease Agreement: Approve an Agreement Extending and Amending the Lease of Space at the Otay Ranch
Town Center for the Otay Ranch Branch Library Hub
Report Number: 24-0176
Location: Otay Ranch Town Center 2015 Birch Rd. Suite 407
Department: Library
G.C. § 84308: Yes
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to California
Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities).
Recommended Action
Adopt a resolution approving a lease agreement with GGP-Otay Ranch, L.P. for the Otay Ranch Branch Library
Hub.
SUMMARY
Since 2012 the City has served eastern Chula Vista at the Otay Ranch Branch Library and Hub located at the
Otay Ranch Town Center Mall. The lease for this space, provided by General Growth Properties-Otay Ranch,
L.P, is one dollar per year. The City negotiated the renewal of the lease for the Hub space with GG P- OTAY
RANCH, L.P which will be used as a community room for classes and meetings through December 31, 2025.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California
Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption
pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), because the proposed project
would not result in a significant effect on the environment, create a cumulative impact, damage a scenic
highway, or cause a substantial adverse change in the significance of a historical resource. Thus, no further
environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Page 172 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
The Board of Library Trustees was made aware of the extension of the lease.
DISCUSSION
Since 2012 the City has served eastern Chula Vista at the Otay Ranch Branch Library and Hub located at the
Otay Ranch Town Center Mall to mitigate the absence of a full-service public library branch in eastern Chula
Vista. The lease for this space, provided by General Growth Properties-Otay Ranch, L.P, (GGP) is one dollar
per year.
The City has negotiated the renewal of the lease for the Hub space with GGP which was previously used as
passport office and community room for classes and meetings. Passport services have been consolidated into
the Otay Ranch Branch Library. This space will continue to be used as a community room for classes and
meetings through December 31, 2025. During the term of this lease, this space will also be used as the Life
Science Station for the Chula Vista Elementary School District.
GGP is aware that the City plans to operate the branch at this location until the opening of Millenia library
which is anticipated in 2025.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Councilmembers 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 as a result of this action as it is included in the adopted FY 2023-24 budget.
ONGOING FISCAL IMPACT
The cost associated with this action has been incorporated into the FY 2024-25 budget.
ATTACHMENTS
Lease Agreement
Staff Contact: Joy Whatley, Director of Library Services
Page 173 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE EXTENSION AND THIRD
AMENDMENT OF THE LEASE OF ONE TENANT SPACE
WITH GGP-OTAY RANCH, L.P. AT THE OTAY RANCH
TOWN CENTER FOR THE OTAY RANCH BRANCH LIBRARY
HUB
WHEREAS, the Otay Ranch Library Branch (“Branch”) has been leasing a space at the
Otay Ranch Town Center at 2015 Birch Road Suite 407 since 2012; and
WHEREAS, the location is used as a passport office and community room; and
WHEREAS, the City is waiting on the completion of the construction of the new Library
in the Millenia community; and
WHEREAS, the City negotiated the renewal of the lease for the Hub space with GGP-
OTAY RANCH, L.P; and
WHEREAS, GGP-OTAY RANCH, L.P., a Delaware limited partnership is extending the
lease for the Hub space.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the Extension and Third Amendment of Lease of the tenant space located at 2015
Birch Road Suite 407 Otay Ranch Town Center for the Hub, between the City and GGP- Otay
Ranch L.P., 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 City Manager to execute same.
Presented by Approved as to form by
Joy Whatley Marco A. Verdugo
Library Director City Attorney
Page 174 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1
Chula Vista Public Library_Otay Ranch Town Center_0407_Extension and Third Amendment
4/24/2024; JD:la
EXTENSION AND THIRD AMENDMENT OF LEASE
THIS EXTENSION AND THIRD AMENDMENT OF LEASE ("Amendment") is made and dated
____________________, 2024, between GGP-OTAY RANCH, L.P., a Delaware limited partnership ("Landlord")
and The City Of Chula Vista, a California municipal corporation ("Tenant"). Landlord and Tenant may be
collectively referred to as the “Parties.”
Under the lease dated November 19, 2013 (which with any and all amendments is the "Lease"), Landlord
leased to Tenant premises numbered 0407 containing a total area of approximately 2,000 square feet in the Otay
Ranch Town Center Shopping Center located in Chula Vista, California (the "Leased Premises"). Under the
Extension and First Amendment of Lease dated November 15, 2016, the Lease was modified. Under the Extension
and Second Amendment of Lease dated March 17, 2020, the Lease was further modified.
In consideration of the mutual benefits and covenants contained in this Amendment, the sum of $10.00 paid
by each party to the other, the consideration Landlord may be entitled to under the Lease payable to Landlord upon
demand and for other good and valuable consideration (the receipt and sufficiency of which is acknowledged), the
Parties agree that effective retroactive to May 1, 2023 (the "Effective Date"):
1. The Term of the Lease as set forth in Reference Provision 1.02 and ARTICLE 1 of the Lease shall be and is
hereby extended for a period of two (2) years and eight (8) months, beginning on May 1, 2023, and ending on
December 31, 2025 (the “Extension Period”).
2. During the Extension Period, the Minimum Annual Rental pursuant to Reference Provision 1.07 and Article
4(a) of the Lease shall be $1.00 per year. The sum outlined herein shall include an unallocated share of Taxes under
ARTICLE 7 and the Operating Expenses Payment under Reference Provision 1.22 and ARTICLE 17 of the Lease.
Landlord shall allocate such rental in its sole discretion. Such allocation shall in no way increase the sum outlined
above.
3. During the Extension Period, Tenant shall continue to pay separately for utilities or consumables such as
electricity, water, sewer, trash, HVAC or the like that are attributable to the Leased Premises under ARTICLE 16 of
the Lease, and any other charges and costs imposed on Tenant under the Lease, except as otherwise specifically
provided for in this Amendment.
4. Reference Provision 1.27 of the Lease (as amended by paragraph 4 in the Extension and Second Amendment)
is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:
“1.27 Termination Right:
A. Landlord Termination Right. Landlord shall have the right to terminate this Lease upon
30 days advance written notice to Tenant.
B. Tenant Termination Right. Tenant shall have the right to terminate this Lease upon 90
days advance written notice to Landlord.”
5. The Lease is not otherwise modified and remains ratified and confirmed.
6. This Amendment and the Lease shall be considered, for all intents and purposes, one instrument. In the event
of any conflict between the terms and provisions of this Amendment and the terms and provisions of the Lease, the
terms and provisions of this Amendment shall, in all instances, prevail. If any provision of this Amendment or the
application thereof to any person or circumstance is or becomes illegal, invalid or unenforceable, the remaining
provisions hereof shall remain in full force and effect and this Amendment shall be interpreted as if such illegal,
invalid or unenforceable provision did not exist herein.
7. Each provision of the Lease and this Amendment shall extend to and shall bind and inure to the benefit of
Landlord and Tenant, their respective heirs, legal representatives, successors and assigns. Tenant hereby warrants and
certifies to Landlord that: (i) Tenant is a municipal corporation duly organized and in good standing under the laws
Page 175 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
Chula Vista Public Library_Otay Ranch Town Center_0407_Extension and Third Amendment
4/24/2024; JD:la
of the State of California; (ii) Tenant is authorized to do business in the State of California and to execute and deliver
this Amendment; and (iii) the person executing this Amendment is authorized and empowered to bind the corporation
to the terms of this Amendment by his or her signature hereto.
8. Landlord and Tenant intend to have the option for either party or both parties, to enter into this Amendment
with electronic signatures or with signatures signed, scanned to Portable Document Format (“PDF”) and delivered via
email or DocuSign (or similar electronic format) and, if so, each party hereby consents to the other party entering into
this Amendment with electronic signatures or with signatures signed, scanned to PDF and delivered via email, and
such electronic signature shall be as valid as an original handwritten signature of such party to this Amendment and
shall be effective to bind such party to this Amendment.
[Signatures appear on the following page]
Page 176 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
Chula Vista Public Library_Otay Ranch Town Center_0407_Extension and Third Amendment
4/24/2024; JD:la
This Amendment is dated as of the date first above written.
TENANT:
THE CITY OF CHULA VISTA, a California municipal corporation
d/b/a “Chula Vista Public Library”
By:_____________________________
Authorized Signatory
LANDLORD:
GGP-Otay Ranch, L.P., a Delaware limited partnership
By: GGP-Otay Ranch L.L.C., a Delaware limited liability company, its general partner
By: GGP/Homart II L.L.C., a Delaware limited liability company, its sole member
By: ______________________________
Authorized Signatory
If Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing.
The Amendment must be executed by the President or Vice-President and the Secretary or Assistant Secretary, unless the bylaws or a resolution of
the board of directors shall provide otherwise, in which case, the bylaws or a certified copy of the resolution must be attached to this Amendment.
The appropriate corporate seal must also be affixed.
__________________
APPROVALS
Approved as to Form
By:_____________________________
Marco A. Verdugo
City Attorney
Page 177 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Community Facilities District Annexation: Initiate Annexation of Otay Ranch Village 8 East into CFD No. 97 -
2
Report Number: 24-0141
Location: Located generally adjacent to State Route 125, south of Main Street, and north of the Otay River,
as shown more particularly on the annexation map.
Department: Development Services
G.C. § 84308: Yes
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3) no environmental review is required.
Recommended Action
Adopt resolution A) Setting forth the boundaries of the proposed Annexation No. 13 into Community Facility
District (“CFD”) No. 97-2, Improvement Area “C” and; B) Declaring the intention of the City Council to
authorize the proposed Annexation No. 13 into Improvement Area “C” of CFD No. 97-2, levy a Special Tax,
and set a time and place for the public hearing.
SUMMARY
On May 14, 2024, the Chula Vista City Council approved amendments to the Otay Ranch Village 8 East
(“Village 8 East”) Sectional Planning Area Plan, including associated regulatory documents and a Tentative
Map. Tentative Map Condition No. 61 specifies that the applicant shall annex the project into CFD No. 97-2,
Improvement Area “C”. HomeFed Otay Land II, LLC (the “Applicant”) formally requested that the City
commence annexation proceedings in a letter addressed to the Director of Development Services dated June
6, 2023. This action initiates the process of annexing Village 8 East into CFD No. 97-2.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has
determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines
because the proposed activity consists of a governmental fiscal/administrative activity which does not result
Page 178 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
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
Background
The City Council formed CFD No. 97-2 in July of 1998 to establish a long-term financing mechanism to
monitor and maintain open space within the Otay Ranch Preserve (“Preserve”). CFD No. 97-2 was initially
divided into two improvement areas, designated as Improvement Area “A” and Improvement Area “B”. Both
improvement areas were established to fund the costs of the Resource Monitoring Program. Improvement
Area “B” also funds costs associated with Preserve Operations and Maintenance. Improvement Area “C” was
subsequently formed in 2003 in connection with the annexation of Otay Ranch Village 11 (Annexation No. 3)
into CFD No. 97-2. Improvement Area “C” was established to include lands not originally contemplated to be
contained within the territory of CFD No. 97-2, and it funds both the Resource Monitoring Program and
Preserve Operations and Maintenance activities.
There have been 12 previous annexations into CFD No. 97-2 to date, as listed below:
1. Otay Ranch Village 1 West (2000)
2. Otay Ranch Village 6 (2002)
3. Otay Ranch Village 11 (2003)
4. Otay Ranch Village 12 (2005)
5. Otay Ranch Village 7 (2005)
6. Otay Ranch Village 2 (2006)
7. Otay Ranch Planning Area 12 (2013)
8. Otay Ranch Millenia (2013)
9. Otay Ranch Village 8 West (2014)
10. Otay Ranch Village 3 (2016)
11. Bonita Glen (2020)
12. Otay Ranch Village 3, Neighborhood R-20 (2022)
Property to be Annexed
Village 8 East (Tentative Map No. TM22-0005), consisting of 3,276 residential units on 572.9 acres, is owned
by the Applicant and is proposed as Annexation No. 13 into CFD No. 97-2. City staff has reviewed the
proposed annexation boundary map and has found it acceptable and ready for consideration by City Council.
The boundary map is provided as Attachment 1 to this report.
Maximum Special Taxes
The approved maximum special tax rates for fiscal year 2023-24 for Improvement Area “C” of CFD No. 97-2
are as follows:
Page 179 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
Table 1 – Maximum Special Tax for Resource Monitoring
Special Tax Category Maximum Special Tax (Resource
Monitoring)
Category I – Residential (per square foot) $0.0090
Category I – Non-Residential (per acre) $145.77
Category II – Final Mapped Property (per acre) $145.77
Category III – Undeveloped Property (per acre) $94.0856
Table 2 – Maximum Special Tax for Operations & Maintenance
Special Tax Category Maximum Special Tax (Operation &
Maintenance)
Category I – Residential (per square foot) $0.0143
Category I – Non-Residential (per acre) $231.42
Category II – Final Mapped Property (per acre) $231.42
Category III – Undeveloped Property (per acre) $149.3685
The total maximum special tax that can be levied on a parcel is the sum of the maximum special tax for
resource monitoring, and the maximum special tax for operation and maintenance, as set forth in Table 3
below:
Table 3 – Combined Maximum Special Tax
Special Tax Category Combined Maximum Special Tax
(Resource Monitoring and Operation &
Maintenance)
Category I – Residential (per square foot) $0.0232
Category I – Non-Residential (per acre) $377.19
Category II – Final Mapped Property (per acre) $377.19
Category III – Undeveloped Property (per acre) $243.45
The rates for special taxes shown above are proposed to be increased each fiscal year , beginning fiscal year
2024-25, by a factor equal to the annual percentage change in the San Diego Metropolitan Area Consumer
Price Index for All Urban Consumers (CPI-U, All Items) or zero percent (0%), whichever is greater. The
special taxes are proposed to be collected in the same manner and at the sam e time as ordinary ad valorem
property taxes; provided, however, that the administrator of CFD No. 97-2 may directly bill the special tax
and may collect special taxes at a different time or in a different manner if necessary.
Proposed Resolutions
If approved, the proposed resolutions would accomplish the following:
A) The resolution adopting the boundary map for CFD No. 97-2 is the formal action adopting the map
and setting forth the boundaries of proposed Annexation No. 13 to CFD No. 97-2, Improvement Area
“C”.
B) The resolution of intention to annex territory to CFD No. 97-2 is the jurisdictional resolution
declaring the intention of the City Council to authorize proposed Annexation No. 13 to Improvement
Area “C” of CFD No. 97-2, and setting the time and place for a subsequent public hearing to declare
the results of a special election and formally authorize the levy of a special tax. The public hearing is
planned to take place at the July 16, 2024 City Council meeting.
Page 180 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 4
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
All costs of this annexation to the district are borne by the developer and the ongoing administration will be
funded entirely by the district, resulting in no net fiscal impact to the General Fund or Development Services
Fund.
ONGOING FISCAL IMPACT
The ongoing administration of CFD 97-2 will be funded entirely by the district.
ATTACHMENTS
1. Boundary Map for CFD No. 97-2, Improvement Area C, Annexation No. 13
2. Rate of Method of Apportionment (“RMA”) for CFD No. 97-2, Improvement Area C, Annexation No.
13
Staff Contact: Scott Barker, Transportation Engineer, Development Services
Kimberly Elliott, Facilities Financing Manager, Development Services
Laura C. Black, AICP, Director of Development Services
Page 181 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990942.3
1
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, ADOPTING AN
ANNEXATION MAP SHOWING TERRITORY PROPOSED
TO BE ANNEXED TO IMPROVEMENT AREA “C” OF
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT)
(ANNEXATION NO. 13)
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA,
(“City Council”), formed a Community Facilities District and certain improvement areas therein
pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being
Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the
“Act”), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to
the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the
Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be
referred to collectively as the “Community Facilities District Law”). The Community Facilities
District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) (the “District”) and the Improvement Areas were designated as
IMPROVEMENT AREA “A,” IMPROVEMENT AREA “B” and IMPROVEMENT AREA “C”
of such District; and
WHEREAS, the City Council desires to initiate proceedings to annex certain territory to
Improvement Area “C” thereof; and
WHEREAS, there has been submitted a map entitled “Annexation Map No. 13 Community
Facilities District No. 97-2 (Preserve Maintenance District), City Of Chula Vista, County Of San
Diego, State Of California” (the “Annexation Map”) showing the territory proposed to be annexed
to the District and Improvement Area “C” thereof (the “Territory”).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
California, that the Annexation Map showing the Territory proposed to be annexed to the District
and Improvement Area “C” thereof and to be subject to the levy of a special tax is hereby approved
and adopted.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
above recitals are all true and correct and are incorporated herein by this reference.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista , that a
certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map,
evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption
of the Resolution fixing the time and place of the hearing on the intention to annex or extent of the
annexation to the District and Improvement Area “C” thereof, a copy of such map shall be filed
with the correct and proper endorsements thereon with the County Recorder, all in the manner and
form provided for in Section 3111 of the Streets and Highways Code of the State of California.
Page 182 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990942.3
2
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that this
Resolution shall become effective immediately upon its adoption.
PRESENTED BY: APPROVED AS TO FORM BY:
____________________________ ________________________________
Laura C. Black, AICP Marco A. Verdugo
Director of Development Services City Attorney
Page 183 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990903.4
1
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION
TO AUTHORIZE THE ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) AND IMPROVEMENT AREA “C”
THERETO
(ANNEXATION NO. 13)
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA,
(“City Council”), formed a Community Facilities District and designated certain improvement
areas therein pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act
of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of
California (the “Act”), and the City of Chula Vista Community Facilities District Ordinance
enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of
Article XI of the Constitution of the State of California (the “Ordinance”) (the Act and the
Ordinance may be referred to collectively as the “Community Facilities District Law”). The
Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT
NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the “District”) and the Improvement
Areas were designated as IMPROVEMENT AREA “A,” IMPROVEMENT AREA “B” and
IMPROVEMENT AREA “C” of such District; and
WHEREAS, the District was formed for the purpose of financing the monitoring,
maintenance, operation and management of public property required to be maintained as open
space or habitat preservation or both; and
WHEREAS, Improvement Area “C” was established to finance Preserve Operations and
Maintenance and Resource Monitoring, plus a pro-rata share of Administrative Expenses of the
District as such terms are defined in the rate and method of apportionment of special taxes (the
“Improvement Area “C” Rate and Method”) attached as Exhibit A hereto and incorporated herein
by this reference; and
WHEREAS, certain territory identified as a part of Otay Ranch Village 8 East is proposed
to be annexed to the District and Improvement Area “C” thereto and such territory shall be known
and designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT), IMPROVEMENT AREA “C,” ANNEXATION NO. 13 (the
“Territory”); and
WHEREAS, this legislative body now desires to proceed to adopt its Resolution of
Intention to annex the Territory to Improvement Area “C,” to describe the territory included within
Improvement Area “C” and the Territory proposed to be annexed thereto, to specify the services
to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify
the special taxes that would be levied within the Territory to finance such services, and to set a
time and place for a public hearing relating to the annexation of the Territory to the Improvement
Area “C,” and
Page 184 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990903.4
2
WHEREAS, a map showing the Territory proposed to be annexed has been submitted,
which map has been previously approved, and a copy of the map shall be kept on file with the
transcript of these proceedings.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it declares its intention to authorize the annexation of territory to Community Facilities District
No. 97-2 (Preserve Maintenance District) and Improvement Area “C” thereto.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
above recitals are all true and correct and are incorporated herein by this reference.
BE IT FURTHER RESOLVED by the City Council of the Cit y of Chula Vista, that these
proceedings for annexation are initiated by this City Council pursuant to the authorization of the
Community Facilities District Law.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
hereby determines that the public convenience and necessity requires that the Territory be added
to the District and Improvement Area “C” thereto and this City Council declares its intention to
annex the Territory to the District and Improvement Area “C” thereto.
A description of the boundaries and Territory proposed to be annexed is as follows:
All that Territory proposed to be annexed to the District and
Improvement Area “C” thereto, as such property is shown on a map
as previously approved by this legislative body, such map entitled
“Annexation Map No. 13 to Community Facilities District No. 97-
2 (Preserve Maintenance District), City Of Chula Vista, County Of
San Diego, State Of California” (the “Annexation Map”), a copy of
which is on file in the Office of the City Clerk and shall remain open
for public inspection.
A general description of the territory included in the District is hereinafter described as
follows:
All that property and territory as originally included within and
previously annexed to the District and Improvement Area “C”
thereto, as such property is shown on maps of the original District
and territory previously annexed as approved by this City Council
and designated by the name of the original District and Annexation
Nos. 1 through 12. A copy of such maps are on file in the Office of
the City Clerk and have also been filed in the Office of the County
Recorder.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
proposed annexation shall be known and designated as COMMUNITY FACILITIES DISTRICT
NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), IMPROVEMENT AREA “C,”
ANNEXATION NO. 13.
Page 185 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990903.4
3
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
services that are authorized to be financed by the District from the proceeds of special taxes levied
within Improvement Area “C” are certain services which are in addition to those provided in or
required for the territory within Improvement Area “C” and will not be replacing services already
available. A general description of such services to be financed by the District is as follows:
The monitoring, maintenance, operation, and management of the
public property within boundaries of the Otay Ranch Preserve, as
such boundaries may be modified from time to time, required by the
Resource Management Plan to be maintained as open space or
habitat preservation land or both. Such property may be located
outside the boundaries of the District and outside the jurisdictional
boundaries of the City of Chula Vista. Such services shall not
include the maintenance, operation and/or management of any
property owned, maintained, operated and/or managed by the
federal and/or state government as open space, habitat maintenance
and/or for any other purpose.
A more complete description of such services may be found in Attachments A and B to the
Improvement Area “C” Rate and Method (defined in Section 6 below).
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
District shall finance all direct, administrative and incidental annual costs and expenses necessary
to provide such monitoring, maintenance, operation and management of such public property. The
same types of services which are authorized to be financed by the District from the proceeds of
special taxes levied within Improvement Area “C” are the types of services to be provided in the
Territory. If and to the extent possible, such services shall be provided in common within the
District and the Territory.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it is
the further intention of this City Council that, except where funds are otherwise available, a special
tax sufficient to pay for such services and related incidental expenses authorized by the
Community Facilities District Law, secured by recordation of a continuing lien against all non -
exempt real property in the Territory, will be levied annually within the boundaries of such
Territory. For further particulars as to the rate and method of apportionment of the proposed
special tax, reference is made to the attached and incorporated Exhibit A (the “Improvement Area
‘C’ Rate and Method”), which sets forth in sufficient detail the method of apportionment to allow
each landowner or resident within the proposed Territory to clearly estimate the maximum amount
that such person will have to pay. The special tax proposed to be levied within the Territory shall
be equal to the special tax levied to pay for the same services in Improvement Area “C,” except
that a higher or lower special tax may be levied within the Territory to the extent that the actual
cost of providing the services in the Territory is higher or lower than the cost of providing those
services in Improvement Area “C.” Notwithstanding the foregoing, the special tax may not be
levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to
the Improvement Area “C” Rate and Method.
Page 186 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990903.4
4
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
special taxes herein authorized, to the extent possible or unless otherwise determined by the CFD
Administrator, shall be collected in the same manner as ad valorem property taxes and shall be
subject to the same penalties, procedure, sale and lien priority in any case of delinquency as
applicable for ad valorem taxes. Any special taxes that may not be collected on the County
property tax roll shall be collected through a direct billing procedure by the CFD Administrator.
The maximum special tax rate in Improvement Area “C” shall not be increased as a result of the
annexation of the Territory to Improvement Area “C.”
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it will
hold a Public Hearing and give notice as follows:
Public Hearing. NOTICE IS GIVEN THAT ON TUESDAY, JULY 16, 2024, AT
THE HOUR OF 5:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF
THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH
AVENUE, CHULA VISTA, CALIFORNIA, OR VIA VIDEO CONFERENCE OR
TELECONFERENCE AS DIRECTED BY THE CITY DUE TO PUBLIC HEALTH
CONCERNS, A PUBLIC HEARING WILL BE HELD WHERE THIS
LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR THE
ANNEXATION OF THE TERRITORY TO THE DISTRICT AND
IMPROVEMENT AREA “C” THERETO, THE PROPOSED RATE AND METHOD
OF APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE
TERRITORY AND ALL OTHER MATTERS AS SET FORTH IN THIS
RESOLUTION OF INTENTION.
AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED
PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR
THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE
HEARD.
AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED
ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES
WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN
THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED
PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR
SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL
CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH
OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH
THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING.
WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE
CONCLUSION OF THE PUBLIC HEARING.
Page 187 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990903.4
5
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it will
provide notice of the time and place of the public hearing which shall be given by the City Clerk
by publication in the legally designated newspaper of general circulation, said publication pursuant
to Section 6061 of the Government Code, with said publication to be completed at least seven (7)
days prior to the date set for the public hearing.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that if (a)
50% or more of the registered voters, or six (6) registered voters, whichever is more, residing
within Improvement Area “C” of the District, (b) 50% or more of the registered voters, or six (6)
registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more
of the area of land in the territory included in Improvement Area “C” of the District, or (d) owners
of one-half or more of the area of land included in the Territory, file written protests against the
proposed annexation of the Territory to the District in the future and such protests are not
withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be
undertaken for a period of one year from the date of the decision b y the City Council on the issue
discussed at the public hearing.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it will
conduct an election if upon the conclusion of the public hearing, if the legislative body determines
to proceed with the annexation of the Territory, a proposition shall be submitted to the qualified
electors of the Territory. The vote shall be by registered voters within the Territory; provided,
however, if there are less than 12 registered voters, the vote shall be by landowners, with each
landowner having one vote per acre or portion thereof within the Territory.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that this
Resolution shall become effective immediately upon its adoption.
PRESENTED BY: APPROVED AS TO FORM BY:
____________________________ ________________________________
Laura C. Black, AICP Marco A. Verdugo
Director of Development Services City Attorney
Page 188 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
EXHIBIT A
Rate and Method of
Apportionment of Special Tax
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 97-2
(PRESERVE MAINTENANCE DISTRICT)
Improvement Area C
Annexation No. 13
[commencing on next page]
Page 189 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Rate and Method of
Apportionment of Special Tax
City of Chula Vista
Community Facilities District No. 97-2
(PRESERVE MAINTENANCE DISTRICT)
Improvement Area C
Annexation No. 13
A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City
of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Annexation No. 13 of
Improvement Area C of the CFD and collected each Fiscal Year commencing with Fiscal Year 2024-
2025 in an amount determined through the application of the rate and method of apportionment
of the Special Tax set forth below. All of the real property within Annexation No. 13 of
Improvement Area C of the CFD, unless exempted by law or by the provisions hereof, shall be
taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown
on the applicable Final Subdivision Map, other final map, other parcel map, other
condominium plan, or functionally equivalent map or instrument recorded in the Office of the
County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied
by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the actual or estimated costs incurred by the City, acting
for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the
Special Taxes, including salaries of City employees and a proportionate amount of the City’s
general administrative overhead related thereto, and the fees of consultants and legal counsel
providing services related to the administration of the CFD; the costs of collectin g installments
of the Special Taxes; and any other costs required to administer Area C of the CFD as
determined by the City.
Page 190 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
"Assessor's Parcel" or “Parcel” means a lot or parcel shown in an Assessor's Parcel Map with
an assigned assessor's parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by assessor's parcel number.
"Building Square Foot or Square Footage" means the square footage as shown on an
Assessor’s Parcel’s building permit of Residential Property excluding garages or other
structures not used as living space.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD" means Community Facilities District No. 97-2 (Preserve Maintenance District) of the City
of Chula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee.
"City Manager" means the City Manager for the City of Chula Vista or his or her designee.
"Community Purpose Facility Property" or "CPF Property" means all Assessor’s Parcels which
are classified as community purpose facilities and meet the requirements of City of Chula Vista
Ordinance No. 2883. In the event that Chula Vista Ordinance No. 2883 is repealed, CPF
Property means all Assessor’s Parcels which are classified as community purpose facilities as
defined in the Chula Vista Municipal Code Section 19.48.025.C (as amended from time to
time).
"Council" means the City Council of the City of Chula Vista, acting as the legislative body of the
CFD.
"County" means the County of San Diego, California.
"Developed Property" means all Taxable Property for which a building permit was issued prior
to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Final Map Property" means any residential lot or non-residential lot created by a Final
Subdivision Map, but which is not classified as Developed Property.
"Final Subdivision Map" means a subdivision of property creating residential or non-
residential buildable lots by recordation of a final subdivision map or parcel map pursuant to
the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation
of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for
which building permits may be issued without further subdivision and is recorded prior to
March 1 preceding the Fiscal Year in which the Special Tax is being levied.
Page 191 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on
the boundary map for the CFD as amended from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C below that may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable
Property.
"Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a
building permit(s) has been issued for a structure or structures for non-residential use.
"Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Year
to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities a nd
Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of
the preceding Fiscal Year.
"Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource
Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund
Requirement for the current Fiscal Year in which Special Taxes are levied.
"Preserve Operations and Maintenance" means those activities described in Attachment A
hereto which is incorporated herein by this reference.
"Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an
amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro-rata
share of the budgeted Administrative Expenses of the District for the current Fiscal Year in
which Special Taxes are levied.
"Property Owner Association Property" means any property within the boundaries of Area C
of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded
with the County Recorder to, a property owner association, including any master or sub-
association.
"Public Property" means any property within the boundaries of Area C of the CFD that is, at
the time of the CFD formation, expected to be used for any public purpose and is owned by or
dedicated to the federal government, the State, the County, the City or any other public
agency.
"Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide
necessary cash flow for the first six months of each Fiscal Year, working capital to cover
monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special
Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies.
"Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
Page 192 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
"Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund
Requirement for any Fiscal Year.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building
permit(s) has been issued for purposes of constructing one or more residential dwelling unit.
"Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan
also referred to as “The Otay Ranch Resource Management Plan” dated October 28, 1993, and
the Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such plans
may be amended from time to time.
"Resource Monitoring Program" means those described in Attachment B hereto which is
incorporated herein by this reference.
"Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each
Improvement Area equal to the Improvement Area’s fair share of the budgeted costs of the
Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses
of the CFD for the current Fiscal Year in which Special Taxes are levied. Improvement Area C’s
“fair share” shall be based on Improvement Area C’s percentage of the total acreage within
the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring
Program funding mechanism has been established.
"Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D
below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped
Property in Area C to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i)
pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance
Fund Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to
establish or replenish the Reserve Fund to the Reserve Fund Requirement; (iii) pay for
reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special
Taxes levied in the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of the
CFD that are not exempt from the Special Tax pursuant to law or as defined below.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified
as Developed Property.
B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX
Each Fiscal Year using the definitions above, all Taxable Property within Annexation No. 13 of
Improvement Area C of the CFD shall be classified as Category I, Category II, Category III or
Exempt as defined in Section C. The Taxable Property shall further be classified as Developed
Property, Final Map Property or Undeveloped Property and shall be subject to Special Taxes
pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use
Class as specified in Table 1.
Page 193 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
C. MAXIMUM SPECIAL TAX RATE
CATEGORY I
Category I includes Developed Property within the District (“Category I”).
The Maximum Special Tax for the Resource Monitoring Program and Preserve Operations and
Maintenance for Fiscal Year 2023-2024 on Developed Property are the rates set forth in Table 1
below. For Residential Property, the Special Tax shall be levied based upon Building Square
Footage and for Non-Residential Property shall be levied based on Acreage.
TABLE 1
Maximum Special Tax for Category I
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Description Resource
Monitoring
Operation &
Maintenance
Total
Residential $0.0090/sq ft $0.0143/sq ft $0.0232/sq ft
Non-Residential $145.77/acre $231.42/acre $377.19/acre
CATEGORY II
Category II includes each Assessor’s Parcel of Taxable Property within the District for which a
Final Map has been recorded, but which is not classified as a Developed Parcel (“Category II”).
The Maximum Special Tax for the Resource Monitoring Program, and Preserve Operations and
Maintenance approved for Fiscal Year 2023-2024 on each Assessor’s Parcel in Category II is the
rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre).
TABLE 2
Maximum Special Tax for Category II
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$145.77/acre $231.42/acre $377.19/acre
Page 194 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
CATEGORY III
Category III includes each Assessor’s Parcel of Taxable Property within the District not subject to
Special Tax under any other category (“Category III”).
The Maximum Special Tax approved for Fiscal Year 2023-2024 on Taxable Property within
Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any portion
of an Acre).
TABLE 3
Maximum Special Tax for Category III
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$94.0856/acre $149.3685/acre $243.45/acre
EXEMPT CATEGORY
The Exempt Category includes each property owned, conveyed or irrevocably offered for
dedication to a public agency, or land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots (“Exempt Category”).
SPECIAL CASES
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land
Use Class and be considered “Special Case”. The Maximum Special Tax that may be levied on an
Assessor’s Parcel identified as Special Case shall be the sum of the Maximum Special Tax lev ies
that may be levied on all Land Use Classes located on that Assessor’s Parcel. The CFD
Administrator shall determine the allocation to each Land Use Class.
ANNUAL ESCALATION OF MAXIMUM SPECIAL TAX
The Maximum Special Tax as shown in the tables above that may be levied on each Assessor’s
Parcel in Improvement Area C, Annexation No. 13, shall be increased each Fiscal Year beginning
in Fiscal Year 2024-2025 and thereafter by a factor equal to the annual percentage change in the
San Diego Metropolitan Area Consumer Price Index for All Urban Consumers (CPI-U, All Items) or
zero percent (0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025, and for each following Fiscal Year, the Council shall levy
the Improvement Area C, Annexation No. 13, Special Tax at the rates established pursuant to
steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax
Requirement. The Special Tax shall be levied each Fiscal Year as follows:
Page 195 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by
multiplying the Building Square Footage for Parcels classified as Residential Parcels by the
Maximum Special Tax per Building Square Foot for the Resource Monitoring Program, and
Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue
which could be generated by multiplying the total acres for Parcels classified as Non-Residential
Parcels by the Maximum Special Tax per Acre for the Resource Monitoring Program and Preserve
Operations and Maintenance.
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax
Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that
the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C,
classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated as
the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City, less
the total revenue generated for all Parcels under Step 1 above, divided by the
total Acres for all Parcels within Improvement Area C assigned to Category II,
OR
The Maximum Special Tax rate for Parcels assigned to Category II.
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C
classified as Category III. The Special Tax for Parcels assigned the Category III shall be calculated
as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 and 3 above,
divided by the total Acres for all Parcels within Improvement Area C assigned
to Category III,
OR
The Maximum Special Tax rate for Parcels assigned to Category III and within
Improvement Area C.
However, in the event it is determined that the Special Tax Liability for Improvement Area C
includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the City
shall determine the amount of delinquent taxes that arose from such Parcels and identify the
owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s)
shall first be divided by the total Category III Acres owned by such owner(s) and collected from
the applicable owner(s) with the remaining portion of the Special Tax Liability not related to
delinquent Special Taxes to be collected from all Parcels in Category III according to the proce dure
set forth in the preceding paragraph.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Residential Property or Multi-Family Property for which an occupancy permit
Page 196 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
for private residential use has been issued be increased by more than ten percent (10%) annually
up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any
other Assessor's Parcel within Area C of the CFD.
E. APPEALS
Any landowner or resident who pays the Special Tax and believes that the amount of the Special
Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator
regarding such error. If following such consultation, the CFD Administrator determines that an
error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on
such Assessor’s Parcel. If following such consultation and action, if any, by the CFD Administrator,
the landowner or resident believes such error still exists; such person may file a written notice
with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor’s
Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to
the City Manager who shall establish as part of the proceedings and administration of the CFD, a
special three-member Review/Appeal Committee. The Review/Appeal Committee may establish
such procedures, as it deems necessary to undertake the review of any such appeal. The
Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make
determinations relative to the annual administration of the Special Tax and any landowner or
resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final
and binding as to all persons.
F. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at
the same time as ordinary ad valorem property taxes; provided, however, that the CFD
Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in
a different manner if necessary to meet the financial obligations of Area C of the CFD or as
otherwise determined appropriate by the CFD Administrator.
G. TERM OF SPECIAL TAX
Taxable Property in Improvement Area C of the CFD shall remain subject to the Special Tax in
perpetuity.
Page 197 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Attachment A
Description of Preserve Operations and Maintenance
Preserve Operations and Maintenance includes the maintenance, operation, and management
of the public or private property within boundaries of the Otay Ranch Preserve, as such
boundaries may be modified from time to time, required by the Resource Management Plan to
be maintained as open space or habitat preservation land or both. Such maintenance, operations
and management shall include, but not be limited to, the following:
(i) Preserve Maintenance. Development, implementation and ongoing
provision of programs to maintain, operate and manage preserve habitat
values through: cultivation, irrigation, trimming, spraying, fertilizing,
and/or treatment of disease or injury; removal of trimmings, rubbish,
debris and other solid waste; maintenance of trails; removal and control of
exotic plant species (weeds); and control of cowbirds through trapping.
(ii) Security, Development, implementation and ongoing provision of security
programs to: enforce "no trespassing" rules; curtail activities that degrade
resources, such as grazing, shooting, and illegal dumping; remove trash,
litter, and other debris; control access; prohibit off-road traffic; and
maintain fences and trails.
(iii) Preserve improvements: Acquire equipment and/or install improvements
necessary to maintain, operate and manage the open space and habitat
preservation land described above.
The above description of the Preserve Operations and Maintenance is general in nature. The
actual maintenance, operations and management of the open space and habitat preservation
land within the Otay Ranch Preserve may be modified from time to time as necessary in order to
effectively provide such services in compliance with the requirements of the Resource
Management Plan.
Page 198 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
60297.00077\41990903.4
Attachment B
Description of Resource Monitoring
Implement the annual biota monitoring and reporting program consistent with the Resource
Management Plan to identify changes in the quality and quantity of preserve resources
including wildlife species, sensitive plants and sensitive habitat types.
The above description of the Resource Monitoring is general in nature. The actual monitoring
and reporting program may be modified from time to time as necessary in order to effectively
provide such services consistent with the requirements of the Resource Management Plan.
Page 199 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
T1
T1T1
T2T2
T3
T3
T3
ÄÆ125
Bronze St
O
r
i
o
n
A
v
e
Santa Luna St
Mi
l
l
e
n
i
a
A
v
e
Rock Mo
u
n
t
a
i
n
R
d
Wolf Canyon
L
o
o
p
la
M
e
d
i
a
R
d
ANNEXATION MAP NO. 13COMMUNITY FACILITIES DISTRICT NO. 97-2(PRESERVE MAINTENANCE DISTRICT)
CITY OF CHULA VISTACOUNTY OF SAN DIEGO, STATE OF CALIFORNIA
.
HARRIS & ASSOCIATES101 PROGRESS, SUITE 250IRVINE, CALIFORNIA 92618800-827-4901
Palm Ave
Telegraph Canyon Rd
Otay Mesa Rd
Ota
y
L
a
k
e
s
R
d
Olympic
P
k
w
y
ÄÆ905
ÄÆ125
§¨¦5
§¨¦805 SITE
VICINITY MAP SHEET 1 OF 1
Legend
ANNEXATION BOUNDARY
MAP REFERENCE NUMBER
PARCELS
MAP REFERENCE NUMBER ASSESSOR'S PARCEL NUMBER1 64601008002 64407020003 6440702100
Page 200 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1
Rate and Method of
Apportionment of Special Tax
City of Chula Vista
Community Facilities District No. 97-2
(PRESERVE MAINTENANCE DISTRICT)
Improvement Area C
Annexation No. 13
A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City
of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Annexation No. 13 of
Improvement Area C of the CFD and collected each Fiscal Year commencing with Fiscal Year 2024-
2025 in an amount determined through the application of the rate and method of apportionment
of the Special Tax set forth below. All of the real property within Annexation No. 13 of
Improvement Area C of the CFD, unless exempted by law or by the provisions hereof, shall be
taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the
applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or
functionally equivalent map or instrument recorded in the Office of the County Recorder. The
square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the actual or estimated costs incurred by the City, acting for
and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special
Taxes, including salaries of City employees and a proportionate amount of the City’s general
administrative overhead related thereto, and the fees of consultants and legal counsel providing
services related to the administration of the CFD; the costs of collecting installments
Page 201 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
of the Special Taxes; and any other costs required to administer Area C of the CFD as determined
by the City.
"Assessor's Parcel" or “Parcel” means a lot or parcel shown in an Assessor's Parcel Map with an
assigned assessor's parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels
by assessor's parcel number.
"Building Square Foot or Square Footage" means the square footage as shown on an Assessor’s
Parcel’s building permit of Residential Property excluding garages or other structures not used as
living space.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the Special
Taxes.
"CFD" means Community Facilities District No. 97-2 (Preserve Maintenance District) of the City
of Chula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee.
"City Manager" means the City Manager for the City of Chula Vista or his or her designee.
"Community Purpose Facility Property" or "CPF Property" means all Assessor’s Parcels which
are classified as community purpose facilities and meet the requirements of City of Chula Vista
Ordinance No. 2883. In the event that Chula Vista Ordinance No. 2883 is repealed, CPF Property
means all Assessor’s Parcels which are classified as community purpose facilities as defined in the
Chula Vista Municipal Code Section 19.48.025.C (as amended from time to time).
"Council" means the City Council of the City of Chula Vista, acting as the legislative body of the
CFD.
"County" means the County of San Diego, California.
"Developed Property" means all Taxable Property for which a building permit was issued prior
to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Final Map Property" means any residential lot or non-residential lot created by a Final
Subdivision Map, but which is not classified as Developed Property.
"Final Subdivision Map" means a subdivision of property creating residential or non-residential
buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision
Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium
plan pursuant to California Civil Code 1352, that creates individual lots for which
Page 202 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
building permits may be issued without further subdivision and is recorded prior to March 1
preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on the
boundary map for the CFD as amended from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C below that may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
"Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a
building permit(s) has been issued for a structure or structures for non-residential use.
"Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to
pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and
Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
"Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource
Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement
for the current Fiscal Year in which Special Taxes are levied.
"Preserve Operations and Maintenance" means those activities described in Attachment A
hereto which is incorporated herein by this reference.
"Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an
amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro-rata
share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which
Special Taxes are levied.
"Property Owner Association Property" means any property within the boundaries of Area C of
the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with
the County Recorder to, a property owner association, including any master or sub-association.
"Public Property" means any property within the boundaries of Area C of the CFD that is, at the
time of the CFD formation, expected to be used for any public purpose and is owned by or
dedicated to the federal government, the State, the County, the City or any other public agency.
"Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide
necessary cash flow for the first six months of each Fiscal Year, working capital to cover
monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special
Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies.
"Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
Page 203 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
4
"Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund
Requirement for any Fiscal Year.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building
permit(s) has been issued for purposes of constructing one or more residential dwelling unit.
"Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also
referred to as “The Otay Ranch Resource Management Plan” dated October 28, 1993, and the
Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such plans may be
amended from time to time.
"Resource Monitoring Program" means those described in Attachment B hereto which is
incorporated herein by this reference.
"Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each
Improvement Area equal to the Improvement Area’s fair share of the budgeted costs of the
Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of
the CFD for the current Fiscal Year in which Special Taxes are levied. Improvement Area C’s “fair
share” shall be based on Improvement Area C’s percentage of the total acreage within the Otay
Ranch General Development Plan Planning Area for which a Resource Monitoring Program
funding mechanism has been established.
"Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below
in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property
in Area C to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i) pay
the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund
Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to establish or
replenish the Reserve Fund to the Reserve Fund Requirement; (iii) pay for reasonably anticipated
delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous
Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of the
CFD that are not exempt from the Special Tax pursuant to law or as defined below.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property.
B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX
Each Fiscal Year using the definitions above, all Taxable Property within Annexation No. 13 of
Improvement Area C of the CFD shall be classified as Category I, Category II, Category III or
Exempt as defined in Section C. The Taxable Property shall further be classified as Developed
Property, Final Map Property or Undeveloped Property and shall be subject to Special Taxes
pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use
Class as specified in Table 1.
Page 204 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
5
C. MAXIMUM SPECIAL TAX RATE
CATEGORY I
Category I includes Developed Property within the District (“Category I”).
The Maximum Special Tax for the Resource Monitoring Program and Preserve Operations and
Maintenance for Fiscal Year 2023-2024 on Developed Property are the rates set forth in Table 1
below. For Residential Property, the Special Tax shall be levied based upon Building Square
Footage and for Non-Residential Property shall be levied based on Acreage.
TABLE 1
Maximum Special Tax for Category I
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Description Resource
Monitoring
Operation &
Maintenance
Total
Residential $0.0090/sq ft $0.0143/sq ft $0.0232/sq ft
Non-Residential $145.77/acre $231.42/acre $377.19/acre
CATEGORY II
Category II includes each Assessor’s Parcel of Taxable Property within the District for which a
Final Map has been recorded, but which is not classified as a Developed Parcel (“Category II”).
The Maximum Special Tax for the Resource Monitoring Program, and Preserve Operations and
Maintenance approved for Fiscal Year 2023-2024 on each Assessor’s Parcel in Category II is the
rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre).
TABLE 2
Maximum Special Tax for Category II
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$145.77/acre $231.42/acre $377.19/acre
Page 205 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
6
CATEGORY III
Category III includes each Assessor’s Parcel of Taxable Property within the District not subject to
Special Tax under any other category (“Category III”).
The Maximum Special Tax approved for Fiscal Year 2023-2024 on Taxable Property within
Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any portion
of an Acre).
TABLE 3
Maximum Special Tax for Category III
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$94.0856/acre $149.3685/acre $243.45/acre
EXEMPT CATEGORY
The Exempt Category includes each property owned, conveyed or irrevocably offered for
dedication to a public agency, or land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots (“Exempt Category”).
SPECIAL CASES
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land
Use Class and be considered “Special Case”. The Maximum Special Tax that may be levied on an
Assessor’s Parcel identified as Special Case shall be the sum of the Maximum Special Tax levies
that may be levied on all Land Use Classes located on that Assessor’s Parcel. The CFD
Administrator shall determine the allocation to each Land Use Class.
ANNUAL ESCALATION OF MAXIMUM SPECIAL TAX
The Maximum Special Tax as shown in the tables above that may be levied on each Assessor’s
Parcel in Improvement Area C, Annexation No. 13, shall be increased each Fiscal Year beginning
in Fiscal Year 2024-2025 and thereafter by a factor equal to the annual percentage change in the
San Diego Metropolitan Area Consumer Price Index for All Urban Consumers (CPI-U, All Items) or
zero percent (0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025, and for each following Fiscal Year, the Council shall levy
the Improvement Area C, Annexation No. 13, Special Tax at the rates established pursuant to
steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax
Requirement. The Special Tax shall be levied each Fiscal Year as follows:
Page 206 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
7
Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by
multiplying the Building Square Footage for Parcels classified as Residential Parcels by the
Maximum Special Tax per Building Square Foot for the Resource Monitoring Program, and
Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue
which could be generated by multiplying the total acres for Parcels classified as Non-Residential
Parcels by the Maximum Special Tax per Acre for the Resource Monitoring Program and Preserve
Operations and Maintenance.
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax
Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that
the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C,
classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated as
the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City, less
the total revenue generated for all Parcels under Step 1 above, divided by the
total Acres for all Parcels within Improvement Area C assigned to Category II,
OR
The Maximum Special Tax rate for Parcels assigned to Category II.
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C
classified as Category III. The Special Tax for Parcels assigned the Category III shall be calculated
as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 and 3 above,
divided by the total Acres for all Parcels within Improvement Area C assigned
to Category III,
OR
The Maximum Special Tax rate for Parcels assigned to Category III and within
Improvement Area C.
However, in the event it is determined that the Special Tax Liability for Improvement Area C
includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the City
shall determine the amount of delinquent taxes that arose from such Parcels and identify the
owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s)
shall first be divided by the total Category III Acres owned by such owner(s) and collected from
the applicable owner(s) with the remaining portion of the Special Tax Liability not related to
delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure
set forth in the preceding paragraph.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Residential Property or Multi-Family Property for which an occupancy permit
Page 207 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8
for private residential use has been issued be increased by more than ten percent (10%) annually
up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any
other Assessor's Parcel within Area C of the CFD.
E. APPEALS
Any landowner or resident who pays the Special Tax and believes that the amount of the Special
Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator
regarding such error. If following such consultation, the CFD Administrator determines that an
error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on
such Assessor’s Parcel. If following such consultation and action, if any, by the CFD Administrator,
the landowner or resident believes such error still exists; such person may file a written notice
with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor’s
Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to
the City Manager who shall establish as part of the proceedings and administration of the CFD, a
special three-member Review/Appeal Committee. The Review/Appeal Committee may establish
such procedures, as it deems necessary to undertake the review of any such appeal. The
Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make
determinations relative to the annual administration of the Special Tax and any landowner or
resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final
and binding as to all persons.
F. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at
the same time as ordinary ad valorem property taxes; provided, however, that the CFD
Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in
a different manner if necessary to meet the financial obligations of Area C of the CFD or as
otherwise determined appropriate by the CFD Administrator.
G. TERM OF SPECIAL TAX
Taxable Property in Improvement Area C of the CFD shall remain subject to the Special Tax in
perpetuity.
Page 208 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
9
Attachment A
Description of Preserve Operations and Maintenance
Preserve Operations and Maintenance includes the maintenance, operation, and management
of the public or private property within boundaries of the Otay Ranch Preserve, as such
boundaries may be modified from time to time, required by the Resource Management Plan to
be maintained as open space or habitat preservation land or both. Such maintenance, operations
and management shall include, but not be limited to, the following:
(i) Preserve Maintenance. Development, implementation and ongoing
provision of programs to maintain, operate and manage preserve habitat
values through: cultivation, irrigation, trimming, spraying, fertilizing,
and/or treatment of disease or injury; removal of trimmings, rubbish,
debris and other solid waste; maintenance of trails; removal and control of
exotic plant species (weeds); and control of cowbirds through trapping.
(ii) Security, Development, implementation and ongoing provision of security
programs to: enforce "no trespassing" rules; curtail activities that degrade
resources, such as grazing, shooting, and illegal dumping; remove trash,
litter, and other debris; control access; prohibit off-road traffic; and
maintain fences and trails.
(iii) Preserve improvements: Acquire equipment and/or install improvements
necessary to maintain, operate and manage the open space and habitat
preservation land described above.
The above description of the Preserve Operations and Maintenance is general in nature. The
actual maintenance, operations and management of the open space and habitat preservation
land within the Otay Ranch Preserve may be modified from time to time as necessary in order to
effectively provide such services in compliance with the requirements of the Resource
Management Plan.
Page 209 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
10
Attachment B
Description of Resource Monitoring
Implement the annual biota monitoring and reporting program consistent with the Resource
Management Plan to identify changes in the quality and quantity of preserve resources including
wildlife species, sensitive plants and sensitive habitat types.
The above description of the Resource Monitoring is general in nature. The actual monitoring
and reporting program may be modified from time to time as necessary in order to effectively
provide such services consistent with the requirements of the Resource Management Plan.
Page 210 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Ratification of Appointment: City Manager’s Appointment of Deputy City Manager/Director of Public Works
– Matthew Little
Report Number: 24-0162
Location: No specific geographic location
Department: Human Resources
G.C. § 84308: No
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 ratifying the City Manager’s appointment of Matthew Little as Deputy City
Manager/Director of Public Works.
SUMMARY
The City Manager has selected current Director of Public Works Matthew Little to fill a vacant Deputy City
Manager/Director of Public Works position. This item seeks to approve the appointment of Matthew Little
to the position of Deputy City Manager/Director of Public Works effective July 12, 2024.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental
fiscal/administrative activity which does not result in a physical change in the environment; therefore,
pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
Page 211 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
DISCUSSION
The City of Chula Vista’s Charter Section 500(C) grants the City Manager the authority to appoint Assistant
City Managers, Deputy City Managers and department heads, subject to ratification by the City Council. The
City Manager has selected the current Director of Public Works Matthew Little to fill the vacant Deputy City
Manager/Director of Public Works position.
Mr. Little has over 29 years of private and public sector experience in San Diego County as a Civil
Engineering/Public Works professional, 16 years of which have been with the City of Chula Vista and three
years with the City of San Marcos as Deputy City Manager. He brings a wide breadth and depth of leadership
experience that will complement the current City management team and continue to move many City
projects forward.
His accomplishments, duties and responsibilities are extensive and can be reviewed in the attached resume.
City Council adoption of the resolution will ratify the City Manager’s appointment.
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 as a result of this action. Funding for the position is available based on current- year
budget appropriations.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action. This position will be included as part of the annual
budget development process in future years.
ATTACHMENTS
1. Resume
Staff Contact: Tanya Tomlinson, Director of Human Resources/Risk Management
Page 212 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA RATIFYING THE CITY MANAGER’S
APPOINTMENT OF MATTHEW LITTLE AS DEPUTY CITY
MANAGER/DIRECTOR OF PUBLIC WORKS
WHEREAS, the City of Chula Vista Charter Section 500 (C) grants the City Manager
the authority to appoint Assistant City Managers, Deputy City Managers and department heads,
subject to ratification by the City Council; and
WHEREAS, the City Manager has selected current Director of Public Works Matthew
Little to fill the position of Deputy City Manager/Director of Public Works effective July 12,
2024.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it ratifies the City Manager’s appointment of Matthew Little to Deputy City Manager/Director
of Public Works effective July 12, 2024.
Presented by Approved as to form by
Tanya Tomlinson Marco A. Verdugo
Director of Human Resources /Risk Management City Attorney
Page 213 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Matthew T. Little
Professional Civil Engineer
California - PE C60569
Public Works Director - Public Works Department, City of Chula Vista
EDUCATION:
B.S., San Diego State University
Major: Civil Engineering
Graduated: May 1994
EXPERIENCE:
I have over 25 years of broad, varied, and progressively challenging assignments in public works, civil engineering and
engineering management in the private and public sectors. As a resident of California for 50 years, I have gained an
appreciation for the diverse culture, limited resources, and dynamic political landscape of this vibrant and growing state.
Over the years, I have supervised and managed engineers, surveyors, maintenance workers, technicians, landscape
architects, inspectors and administrative staff as well as oversight of consultants. I have extensive knowledge in land
development, public works and in the delivery of capital improvements. This includes; project initiation, asset
management, securing funding, obtaining environmental clearances, acquiring rights of way, preparing and maintaining
budgets/schedules, reviewing and producing contract documents, reviewing and producing construction documents,
reviewing tentative maps, preparing development agreements and administrating construction and landscaping contracts.
My work at the Cities of San Marcos, Coronado and Chula Vista, have required me to plan and direct the effort of others,
estimate and manage program budgets, use sound judgment in engineering applications as well as careful and deliberate
assessment of risks, communicate effectively both orally and in writing, maintain motivated, well trained and productive
teams, establish strong and cooperative relationships with internal and external stakeholders and partners, and assist the
organizations to realize their visions in the following assignments:
City of Chula Vista:
Director, Public Works Department (December 2020 to Present)
· Member of the highly successful Executive Management Team at the City of Chula Vista.
· Current Divisions under my supervision: Open Space Districts, Street Maintenance, Facilities Maintenance,
Storm Drain Maintenance, Wastewater Collection System and the City’s Fleet
· 130 employees under my supervision.
· Gained trust from internal and external partners as a responsive, honest, and ethical decision maker.
· Part of the dynamic team that developed the current work management system.
· Daily involvement with citizens to help resolve issues and answer questions.
· Actively participates in conflict resolution between contractors, developers, inspectors and project managers.
· Administered Consultant Contracts to augment our in-house resources.
· Overall responsibility and management of Departments budget
· Developed strong working relationships with City’s labor groups to resolve personnel and budget issues.
Page 214 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
City of San Marcos:
Director, Public Works Department/Deputy City Manager/City Engineer (March 2017 to December
2020)
· Member of the highly successful Executive Management Team at the City of San Marcos.
· Current Divisions under my supervision: Park and Open Space Maintenance, Street Maintenance, Facilities
Maintenance, Signal and Streetlight Maintenance, NPDES, Public Works Inspections, Traffic Engineering and the
City’s Capital Improvement Program.
· 82 employees under my supervision.
· Gained trust from internal and external partners as a responsive, honest, and ethical decision maker.
· Part of the dynamic team that developed the current work management system.
· Responsible for the management of capital improvement projects worth more than 200 million dollars. This is by
far the largest capital improvement program in the City’s history.
· Daily involvement with citizens to help resolve issues and answer questions.
· Actively participates in conflict resolution between contractors, developers, inspectors and project managers.
· Administered Consultant Contracts to augment our in-house resources.
· Overall responsibility and management of Departments $12 million general fund budget.
· Developed strong working relationships with City’s labor groups to resolve personnel and budget issues.
Director, Development Services Department (April 2015 to March 2017)
· Established the Development Services Department for the City of San Marcos. Department included Planning,
Building, Code Enforcement, NPDES Program and Land Development Engineering.
· Participated in development negations and conflict resolution between developers, contractors, inspectors and
project managers.
· Worked closely with the all the City departments to ensure thoughtful and sustainable development.
· Created high performance teams to deliver quality development projects that met the City’s and client’s needs.
· Gained trust from internal and external partners as a responsive, honest, and ethical decision maker.
· Administered Consultant Contracts to augment our in-house resources.
City Engineer, Public Works Department (April 2014 to April 2015)
· Responsible for the Capital Improvement Program, Traffic Engineering, Construction Inspections, NPDES
Program and Land Development Engineering.
· Participated in development negations and conflict resolution between developers, contractors, inspectors and
project managers.
· Worked closely with the all the City departments to ensure thoughtful and sustainable development.
· Created high performance teams to deliver quality development projects that met the City’s and client’s needs.
· Administered Consultant Contracts to augment our in-house resources.
City of Coronado:
Director, Public Services Department (June 2012 to April 2014)
· Member of the highly successful Executive Management Team.
· Development of Department Workplan and Asset Management Plan
· Current Divisions under my supervision: Park/Urban Forestry Maintenance, Street Maintenance, Fleet
Operations, Facility Maintenance, NPDES Program, Storm and Wastewater Maintenance.
· 42 employees under my supervision.
· Daily involvement with citizens to help resolve issues and answer questions.
· Administered Consultant Contracts to augment our in-house resources.
· Overall responsibility and management of Departments $9 million budget.
· Developed strong working relationships with City’s labor groups to resolve personnel and budget issues. Page 215 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
City of Chula Vista:
Assistant Director, Public Works Department (August 2007 to June 2012)
· Member of the highly successful Senior Management Team at the City of Chula Vista.
· Current Divisions under my supervision: Park and Open Space Maintenance, Street Maintenance, Transit
Operations, Signal and Streetlight Maintenance, NPDES, Public Works Inspections and Storm and Wastewater
Maintenance.
· 198 employees under my supervision.
· Part of the dynamic team that developed the current work management system.
· Daily involvement with citizens to help resolve issues and answer questions.
· Actively participates in conflict resolution between contractors, inspectors and project managers.
· Administered Consultant Contracts to augment our in-house resources.
· Overall responsibility and management of Departments $35 million budget.
· Developed strong working relationships with City’s labor groups to resolve personnel and budget issues.
Deputy Director, General Services Department (January 2004 to August 2007)
· Effectively manage all aspects of the Project Design and Management Division, when combined are comprised of
civil engineers, surveyors, landscape architects, building project managers, landscape inspectors and engineering
technicians.
· Participates in conflict resolution between contractors, inspectors and project managers.
· Work closely with the Public Works Department and Engineering Department to develop the Capital
Improvement Program. The General Services Department creates the Capital Improvement Program for the City
of Chula Vistas Budget.
· Responsible for successful delivery of capital improvement projects worth more than 130 million dollars. This is
by far the largest capital improvement program in the City’s history.
· Created high performance teams to deliver quality projects on time and on budget that met the client’s needs.
· Executive project manager for a variety of high profile capital projects. These include; the new civic center, 3
new fire stations, 3 community parks, a library and multiple roadway and storm drain projects.
· Gained trust from internal and external partners as a responsive, honest, and ethical decision maker.
· Administered Consultant Contracts to augment our in-house resources.
· Worked on the team who developed the City’s pavement management system.
Acting City Engineer, General Services (February 2006 to December 2006)
· The City Engineer duties were on top of my duties as the Deputy Director of General Services.
· Responsible for the review and approval of all grading plans, improvement plans, parcel maps, traffic studies,
technical studies and final maps.
· Work with developers and the general public to resolves issues on land development projects.
· Provide technical services to the Engineering Department.
Senior Civil Engineer, General Services Department (September 2002 thru January 2004)
· Created the Building and Park Construction Division, which manages the design and construction of the City’s
new buildings and parks.
· Increased the quality and productivity of the Landscape Division by developing work plans, project schedules and
Division procedures.
· Implemented and refined the design-build project delivery system for capital projects.
· Developed and implemented key goals and procedures for the Design Division which increased quality,
productivity and timeliness for capital projects.
· Reviewed plans and specifications for accuracy and completeness.
· Revised the City standard contract language and created a specification “boiler plate” for capital projects.
· Prepared engineering designs, cost estimates, schedules, workplans and specification for many capital projects.
Page 216 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Civil Engineer/Assistant Engineer, Engineering Department (January 2000 thru September 2002)
· Supervised design teams that produced drainage, sewer and roadway projects.
· Wrote and reviewed technical studies for capital projects.
· Reviewed tentative maps, grading plans, improvement plans and final maps for accuracy, design and compliance
with City of Chula Vista standards.
· Worked with developers and private engineers to solve complicated project related issues.
· Prepared subdivision improvement agreements.
Kimley-Horn and Associates:
Project Manager/Civil Designer (August 1994 thru January 2000)
· Designed major drainage facilities, including rip rap lined channels, natural channels, detention and desilting
basins.
· Designed major, collector and residential roadways.
· Prepared traffic impact reports.
· Subdivision planning and design.
· Developed project proposals, scopes and contracts.
Page 217 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1
To:CityClerk
Subject:RE: SANDAG VOTE PERMANENT MANAGED TOLL 125 / USE NOV TAX TO CHANGE 805
TO MANAGED LANES TOLL ROAD
Subject: Re: SANDAG VOTE PERMANENT MANAGED TOLL 125 / USE NOV TAX TO CHANGE 805 TO MANAGED LANES
TOLL ROAD
WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not
open attachments unless you can confirm the sender.
PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to
reportphishing@chulavistaca.gov
COPY TO
NEWS
MAYORS
SANDAG
CITY COUNCILS
SAN DIEGO SUPERVISORS
CA STATE REPRESENTATIVES
@CLERKS - Please enter into public record under Non Agenda Comment
Good Morning,
SANDAG INTERIM CEO RESIGNS
KNEW MANAGED LANES NOT FOR CLIMATE
2 YEARS AGO ADMITS MANAGED LANES TO FUND SANDAG
"Road Tolls Will Be Similiar What You See On Interstate 15 Today"
https://www.youtube.com/watch?v=Q70E2MaKFZo&t=100s
Please See Previous Email, TODAY 9AM SANDAG MEETING
https://docs.google.com/gview?url=https%3A%2F%2Fgranicus_production_attachments.s3.amaz
onaws.com%2Fsandag%2Fa931f7056aa7e557795542618c974f220.pdf&embedded=true
https://d3n9y02raazwpg.cloudfront.net/sandag/2dba9e65-84b1-11ee-852f-0050569183fa-7f44a2c2-
2334-459d-8147-30947a15d18b-1716496567.pdf
Coleen Clementson, the interim CEO at the San Diego Association of Governments, submitted her
resignation and will depart the agency before its new CEO takes over in June. Orso takes over an agency
SANDAG facing a federal investigation following the revelation that it improperly charged drivers on
a South Bay toll road. After Ikhrata – and Clementson — spent five years selling San Diego on a less
highway-focused transportation plan, SANDAG is now in the hands of Orso, who spent three decades
Item #6/PC - Written Communications - Curry - Rcvd. 5/24/2024
Page 218 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
with Caltrans, the state's highway department. Ikhrata's predecessor, Gary Gallegos, also came to
SANDAG from Caltrans.
https://www.axios.com/local/san-diego/2024/05/23/sandag-interim-chief-cleo-clementson-
resignation
San Diego Association of Governments, the regional planning agency that controls a $1.3 billion budget,
received approval Friday to spend $500,000 to respond to a federal investigation into the organization’s
business practices.
https://www.sandiegouniontribune.com/news/watchdog/story/2024-05-10/sandag-approves-
500k-to-pay-for-outside-lawyers-to-respond-to-federal-investigators
SANDAG LIED MILEAGE TAX PUSHED THRU STATE
CHAIR VARGAS SITS ON SAN DIEGO AIR RESOUCE BOARD
https://www.latimes.com/california/story/2024-05-14/california-offers-to-pay-drivers-
to-test-mileage-fee
NOV 2023 CBS 8 Thousands of drivers mischarged on SR-125 South Bay toll road
https://www.youtube.com/watch?v=PvmsgwIMEbA&t=0s
125 ALREADY PAID BY TRANSNET TAX
PROMISED VOTERS FREEWAYS
NOT MANAGED LANES NOT TOLL ROADS
COUNTY SALES TAX SINCE 1987 EXPIRES 2048
WHERE ARE OUR TAX FUNDS ROADS PROMISED?
TRANSNET TAX FREEWAY EXPANSION LIE SINCE 1987
https://www.keepsandiegomoving.com/transnet-about.aspx
SCREENSHOT VOTER BALLOT EXPAND FREEWAYS
Page 219 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
MAY 2024 PROPOSAL CONVERT 125 TO PERMANENT MANAGED LANES TOLL ROAD
SANDAG planning to change toll road to PERMANENT Managed Lanes Toll Road USING OUR TAX TO
DOUBLE TAX COMMUTERS. "Convert all existing lanes to managed lanes: Converting the toll road to a
fully managed facility is believed to be a lower cost to implement and with less environmental impacts.
It also would be consistent with SANDAG Resolution No. 2023- 11. A fully managed facility could be
operated in a variety of ways to address specific goals related to traffic and equity."
https://www.google.com/url?sa=D&q=https://legistarweb-
production.s3.amazonaws.com/uploads/attachment/pdf/2600257/Item_8_-
_Process_for_Removing_Tolls_on_SR_125.pdf&ust=1716050280000000&usg=AOvVaw0mpTECRZe
QSD0dJbzPkOK7&hl=en
COMMUTERS TAKE NEIGHBORHOOD STREETS TO AVOID MANAGED LANE TOLLS
"Somebody's going to get killed," said resident Judy Tieber. Drivers trying to avoid paying tolls on state
Route 125 are using neighborhood streets to get to and from state Route 54 "With the toll road, 125,
traffic on this road has jumped to 7,000-8,000 cars a day. It’s all for one reason, it’s called toll road
avoidance." The problem is especially dangerous near Sunnyside Elementary School , where the
marquee out front tells drivers to slow down. The committee says that's one of their primary concerns.
"In the afternoon or the morning when school's getting out, this whole roadway's full of cars with
Page 220 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
4
people crossing the street going to school," said Mike Clowers. "Drivers need to know; this is a
neighborhood, not a freeway."
https://www.10news.com/news/drivers-dodging-tolls-on-sr-125-cause-problems-in-south-bay-
neighborhood
TAX INCREASE TO FUND TOLL ROAD
NO ON SANDAG SALES TAX NOV BALLOT
THAT WILL CONVERT 805 LANES INTO TOLL ROAD
SANDAG $2.7 BILLION PLAN CONVERT FOUR LANES 805 INTO MANAGED TOLL LANES
https://apasandiego.org/download/I-805_Managed_Lanes.pdf
SANDAG IN ORDER TO BYPASS 2/3 VOTE OF THE PEOPLE
USES TAX PAID UNION FUNDS TAX INCREASE NOVEMBER BALLOT
" Let’s Go! San Diego pursued the ballot initiative to pay for a slate of transit and road projects sought by
the San Diego Association of Governments (SANDAG). One key difference between the current measure
and the one from eight years ago – as it is an initiative, it would only require a simple majority to pass,
unlike Measure A, which needed a two-thirds vote.."
https://timesofsandiego.com/politics/2024/01/05/voters-to-decide-fate-of-half-cent-sales-tax-
increase-which-makes-november-ballot/
LESSON FROM NORTH COUNTY MANAGED LANES 15 TAXING COMMUTERS:
Page 221 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
5
CHULA VISTA HAS WEIGHTED VOTE
https://www.kpbs.org/news/politics/2023/01/05/10-cities-demand-sandag-scrap-weighted-vote-
to-get-representation
SANDAG REP CAROLINA CHAVEZ cchavez@chulavistaca.gov STOP MANAGED LANE 125 AND 805
CHULA VISTA TUESDAY MEETINGS
Page 222 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
6
https://www.chulavistaca.gov/departments/mayor-council/council-meeting-agenda
SANDAG FRIDAY MEETINGS EVERY CITY REP ATTENDING
https://www.sandag.org/calendar
--
Alan Curry
Page 223 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Joseph A Raso
CHULA VISTA, CA 91910
Telephone
Honorable Mayor and City Council, May 28, 2024
I recently returned to Chula Vista after being away for a
couple of weeks. Before leaving, I wrote to the mayor and each
council member multiple times, seeking urgent advice on
mitigating the financial devastation caused by the flawed
Tenant Protection Ordinance" (TPO) on our city's homeless and
renters. To my dismay, I found no responses upon my return.
It has been a year since City staff provided data revealing
the severe financial hardship inflicted on our most vulnerable
residents due to the TPO. Despite this compelling evidence, the
City Council has failed to take any corrective action. This
inaction is profoundly concerning.
Below are two of the clauses within the TPO which causes
the most financial harm to Chula Vista Renters.
9.65.060E: Reporting Requirements. Owners and Tenants shall
provide City with information regarding termination of Tenancies at
such time(s) and with such details as shall be required by City in the
attendant Administrative Regulations.
Clause 9.65.080C2: “Civil penalties for violations of this chapter may
be assessed at a rate not to exceed $5,000 per violation per day.
Translation: Make a mistake, $5,000.00 daily fine. In my
75 years, I have never seen a City Council so neglectful of the
Page of1 4
Written Communications
Public Comments - Raso
Received 5/28/2024
Page 224 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
community it claims to represent. The data unequivocally shows
that the TPO has placed an immense burden on renters and the
homeless, yet there has been no effort to address this dire issue.
The imposition of steep fines on landlords and tenants for minor
infractions is not only unjust but also counterproductive, leading
to increased rents and further destabilizing our community.
A practical solution exists to align the TPO with state
mandates without harming renters. By implementing a simple
notification process before issuing penalties, we can encourage
compliance and focus on actual offenders. This approach
complies with California's requirements and protects tenants
from unnecessary financial strain.
Moreover, it is crucial to address the City Staff's unilateral
authority to modify TPO regulations without Council oversight.
This unchecked power has led to landlords raising rents
preemptively to avoid potential fines, exacerbating the problem.
We must close this loophole to prevent further harm to our
residents.
I urge you to recognize the gravity of this situation and take
immediate action. Your attention to this matter is not just
necessary—it is imperative for the well-being of our community.
I pray this information rekindles your commitment to serving
the people of Chula Vista.
Sincerely,
Joseph A. Raso
Page of2 4
Written Communications
Public Comments - Raso
Received 5/28/2024
Page 225 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
PS:
City Staff Supplied Data and Supporting Conclusions:
1)Chula Vista Population: 283,972 (Chula Vista - U.S. Census Bureau
QuickFacts)
2) Average number of individuals in each household: 3.31. (Chula Vista
U.S. Census Bureau QuickFacts)
3) Percentage Chula Vista housing which are rentals. 42% (Data
compiled by City Staff )
4) Number of Chula Vista Rental Units: 36,033
Population of Chula Vista (283,072) divided by the average number of
people residing in each Residence (3.31) equals 85,792 multiplied the
percentage of residences which are rentals (42%) equals the
approximate number of Chula Vista rental units. (36,033)
5) Approximate number of Chula Vista renters: 119,268 (CV Population
283,972 x .42% = 119,268)
6) Approximate Average Monthly Chula Vista Rent: $3,047.00 (See
attached CV Staff provided “Relocation Assistance” Pic - Average of
Line 2nd from bottom)
7) With no right to cure, amount of daily fine levied if Landlord or
Tenant inadvertently makes a paperwork error when Tenant terminates
lease and moves: $5,000.00 (Clauses 9.65.060 E and 9.65.080 C2 of
Residential Landlord and Tenant Ordinance” )
8) Maxim average monthly rent increase allowed . . $304.70 ($3047.00 x
10%. California AB-1482 5% plus ination Max 10%)
9) Average number of months required for Landlord to impound a 1 day
fine: 16.41 ($5000.00 divided by $304.70)
Page of3 4
Written Communications
Public Comments - Raso
Received 5/28/2024
Page 226 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Conclusions Drawn From Staff Supplied Data:
A simple analysis of the data reveals:
1) $10,979,255.00: The approximate total monthly maximum rent
increase levied on Chula Vista Renters if Landlords are forced to
impound funds to the pay daily fines: (36,033 Rental Units multiplied
by the 10% max allowed rent adjustment $304.70 = $10,979,255.00 )
2) 596 New Homeless: Approximate number of Homeless created if
only one half of one percent of Chula Vista renters are forced out of their
homes by the rent increases caused by the Tenant Protection Ordinance:
CV Population 283,972 x 42% = 119,268 x .5% = 596)
City Staff Supplied Chart:
Page of4 4
Written Communications
Public Comments - Raso
Received 5/28/2024
Page 227 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
-
interconnected web
LETICIA CANDIDATE FOR DISTRICT 3
CESAR CANDIDATE FOR DISTRIC 4
Page 228 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 229 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
MICHILADAS
Now Available at CHULA VISTA MARINA
Page 230 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
SENIORS IN CHULA VISTA
BE DIG INTO YOUR MEDICAL SAVINGS
SOON CHULA VISTA COUNCIL
WILL BE ASKING TO
INCLEAREASE THE CHULA VISTA TAX
TO PA Y FOR THEIR SELF
APROVED PAY RAISES
Page 231 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Chula Vista council members approve raises for
themselves.
The salary increases will cost the city’s general fund
$18,500 in fiscal year 2024 -25
By Tammy MurgaReporter
Jan. 15, 2024 4:15 PM PT
The Chula Vista City Council last week authorized salary
raises for itself.
The four part -time council members got a nearly 3
percent raise, with their annual pay to $62,954.
The raises, which are retroactive to July 2023, will cost the
city’s general fund a total of $18,506 in fiscal year 2024 -
25,
which will be fully offset by property tax
revenues, according to city staff.
Chula Vista officials approved in October 2022 extending
Maria Kachadoorian’s contract through 2025 with
salary increases of 5 percent per year.
Her salary jumped to $315,000 in June and it is
expected to hike to $330,700 this year.
Page 232 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Former deputy city manager sues city of Chula Vista over $199K in unpaid severance.
Eric Crockett claims the city withheld the money when he refused to sign a separation
agreement.
BY TAMMY MURGAREPORTER MARCH 29, 2024 11:31 AM PT
CHULA VISTA —Eric Crockett, a former deputy city manager and director of economic development
for Chula Vista, is suing the city, alleging the municipality owes him thousands of dollars in unpaid
severance after he was fired in December.
According to the 26-page complaint filed last week in San Diego Superior Court, Crockett’s employment
with the city ended on Dec. 5 during a meeting with City Manager Maria Kachadoorian and Assistant
City Attorney Megan McClurg.
Kachadoorian allegedly told him that he was being fired because “he was
not a good ‘fit’
(without cause and for the convenience of the City)” and that he would be paid $198,762 in
severance pay, the complaint said.
Crockett’s attorney, Michael Campbell, declined to comment. The city also declined.
Crockett said the severance pay was required by his contract, so he refused to sign the agreement and
told the city any attempt to link the two was “illegal and unethical.”
Additionally, Crockett says he was discriminated against based on his
gender.
Page 233 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Sewer Service: Assess Delinquent Sewer Service Charges as Recorded Liens Upon the Respective Parcels of
Land and Place Delinquent Charges on the Next Regular Property Tax Bill for Collection by the County
Treasurer-Tax Collector
Report Number: 24-0153
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3) no environmental review is required.
Recommended Action
Conduct the public hearing and adopt a resolution assessing certain delinquent sewer service charges as
recorded liens upon the respective parcels of land and placement of delinquent charges on the next regular
tax bill for collection by the County Treasurer-Tax Collector.
SUMMARY
To enhance collection efforts and safeguard the City’s interest in sewer service charges and related
delinquent fees and ensure that collection efforts are directed toward the responsible property owner, the
Finance Department is recommending the approval of placing property liens against affected parcels as a
preliminary action to placing the delinquencies on county property tax rolls if they remain unpaid. Adopting
this resolution will reduce uncollectible losses, ensure payments are received on a timelier basis, and ensure
responsible parties meet their sewer service payment obligations.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has
determined that the activity is not a project as defined under Section 15378 of the State CEQA Guidelines
because the proposed activity consists of a governmental fiscal/administrative activity which does not result
Page 234 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
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.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
City residences and places of business benefit from the use of the City’s wastewater system. The City ensures
an equitable distribution of costs of complying with wastewater discharge requirements placed upon the
City through interagency agreements and by state and federal regulatory bodies.
Chula Vista Municipal Code (CVMC) Section 13.14.150 allows delinquent sewer service charges to be
assessed as recorded liens upon the affected properties and ultimately placed upon the county property tax
bills on those parcels for collection by the County Treasurer-Tax Collector.
Staff submits accounts to the City Council on a biannual basis. The most recent public hearing on property
liens was held in December 2023. A property lien resolution for delinquent sewer service charges, containing
214 accounts valued at $67,000, was submitted and approved by the City Council.
Since the recent re-establishment of the property lien process, the City has been able to collect about
$246,000 of the $271,000 delinquent sewer service charge fees placed on the County tax rolls. In accordance
with the execution of the collection process described below, City staff is recommending the assessment of
recorded liens upon the affected properties as allowed by the Municipal Code.
Collection Process
In the months leading up to this public hearing, City staff put into effect an informative process, in-line with
the Municipal Code and collections best practices, to impose the recording of property liens upon affected
parcels. Property owners have been notified of their delinquencies through a series of past-due notices sent
by the Finance Department.
City staff notified property owners of the public hearing via public hearing notice letters, requesting them to
pay the delinquent charges prior to transmittal of their delinquent account to the County Treasurer-Tax
Collector to avoid a lien being placed on their property. Staff also published a public hearing notice in a locally
circulated newspaper.
At the public hearing, a lien list is submitted by staff to the City Council, containing a list of accounts for
related parcels and the most up to date delinquent amounts due for consideration, together with any
objections or protests by interested parties, of approving the placement of property liens. Staff is
recommending the City Council adopt a resolution assessing the lien of delinquent sewer accounts as
submitted, and these charges be forwarded to the County Treasurer-Tax Collector and assessed as recorded
liens on the respective parcels of land and ultimately placed on the next regular tax bill for collection.
Staff is submitting 245 delinquent accounts valued at $98,000 for approval of collection through the lien
process. Account status and property ownership have been verified by City staff through a third-party
consultant, Spicer Consulting Services. City staff will continue to create payment arrangements as needed
Page 235 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
and work with customers leading up to the lien recording submission date, to avoid submitting accounts
resolved following the public hearing.
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 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 to the Sewer Service Fund as a result of this action.
ONGOING FISCAL IMPACT
Approval of this resolution supports the collection of delinquent sewer service charges through the County
tax roll collection process. Collection of delinquent charges in the amount of $98, 000 should occur within
the 2024-25 fiscal year and will be incorporated into the annual budget process. All expenses associated with
this action are funded by the City’s sewer fund and all sewer service charges collected as a result of this action
will be deposited into the City’s sewer fund.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Revenue Manager
Sarah Schoen, Director of Finance/ Treasurer
Page 236 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ASSESSING CERTAIN DELINQUENT SEWER
SERVICE CHARGES AS RECORDED LIENS UPON THE
RESPECTIVE PARCELS OF LAND AND PLACEMENT OF
DELINQUENT CHARGES ON THE NEXT REGULAR
PROPERTY TAX BILL FOR COLLECTION BY THE COUNTY
TREASURER-TAX COLLECTOR
WHEREAS, Chula Vista Municipal Code (“CVMC”) Section 13.14.150 allows delinquent
sewer service charges to be assessed as recorded liens upon the affected properties and ultimately
placed on the property tax bill for collection; and
WHEREAS, CVMC Section 13.14.150 requires the City to hold a public hearing, no
sooner than seven days after the sixty-day delinquency period has passed, with advance notice to
be mailed to the affected property owners, notifying them that failure to pay the delinquent account
will result in a lien upon the affected parcel and the amount owed will be charged to the property
owner on the next regular tax bill; and
WHEREAS, City staff has identified certain properties for which the sewer service charges
are over sixty days delinquent and property owners have been notified of their delinquencies and
notified of the time and place of the public hearing within the last ten days, and were again asked
to pay the delinquent sewer service charges to avoid a lien being placed on their property; and
WHEREAS, City staff is recommending that the City Council approve the final list of
delinquent sewer service accounts as submitted and that these charges be submitted to the County
for assessment as recorded liens on the respective parcels of land and ultimately placed on the next
regular property tax bill for collection; and
WHEREAS, the City Council has held the requisite public hearing and considered the
delinquent accounts together with any objections or protests by interested parties; and
WHEREAS, at the conclusion of the hearing, the City Council approved the delinquency
and amount owed on the accounts as submitted.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it (1) has considered assessing certain delinquent sewer service charges, as detailed in the final
list of delinquent sewer service accounts presented to the City Council for this matter, as recorded
liens on the affected parcels; (2) has heard and overruled any and all protests or objections
presented at the public hearing on this matter; and (3) approves, with respect to the delinquent
account list submitted to the City Council and on file in the City Finance Department, assessing
delinquent sewer service charges as recorded liens upon the respective parcels of land and the
placement of such delinquent sewer service charges as special assessments on the next
Page 237 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No.
Page 2
corresponding regular property tax bills, unless cleared prior to transmittal of the delinquent
account list to the County Treasurer-Tax Collector.
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/ Treasurer City Attorney
Page 238 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item 7.1: Assessment of Delinquent
Sewer Service Charges as
Liens on Parcels and Placement on
Property Tax Bills
CITY COUNCIL PUBLIC HEARING
MAY 28, 2024
JIMMY VASQUEZ, REVENUE MANAGER, FINANCE DEPARTMENT
ADRIAN DEL RIO, ASSISTANT DIRECTOR, FINANCE DEPARTMENT
Page 239 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Sewer Service Background
Per CVMC Section 13.14.110, the owner or occupant of any parcel which is connected to the
City’s sewer system shall pay the required fees for sewer services.
Page 240 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Collections & Lien Process
CVMC Section 13.14.150 outlines payment obligations, billing cycles, proper noticing, penalties
for delinquency and the lien process.
Our comprehensive approach is highlighted by:
◦Several touchpoints and thorough noticing to customers
◦Dedicated customer support
◦Third-party validation of parcel and account data
◦Legal review of noticing and communication
◦Translated notices
◦Payment plan options and grant programs
◦Collection timeline spanning over 90 days in delinquency
Page 241 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Lien Process Timeline
SERVICE
PERIODS
FIRST PAST-
DUE NOTICE
SECOND
PAST-DUE
NOTICE
FINAL PAST-
DUE NOTICE
PUBLIC
HEARING
NOTICE
MAILED
PUBLIC
HEARING
NOTICE
PUBLISHED
PUBLIC
HEARING
(Last day to
accept
payment)
LIEN
RECORDING
PLACEMENT
ON
PROPERTY
TAX ROLL
Service periods are split into three cycles to
correlate with Sweetwater Authority’s billing.
A.Jul -Aug ‘23
B.Sep -Oct ’23
C.Nov -Dec ’23
A.Oct 18 ‘23
B.Dec 20 ‘23
C.Feb 14
A.Nov 15 ‘23
B.Jan 17
C.Mar 13
A.Dec 18 ‘23
B.Feb 19
C.Apr 15
May 9 May 17 May 28 May 29 Aug 9
Page 242 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Customer Service and Program Impact
Successful resolution of lien-eligible accounts in this cycle:
o 4,649 accounts received a First Past Due Notice for service periods from Jul 2023 –Dec 2023
o 3,787 of those accounts got current on their bills subject to lien
o 183 accounts were placed on payment plans
o $1.38M in A/R has been paid since First Past Due Notices were mailed
o $555K in previously applied debt-relief, grant money for lien-eligible accounts
o $509K in previously written-off receivables for lien-eligible accounts
The County Treasurer-Tax Collector has successfully collected $246,000 out of $271,000 in
delinquent charges placed on property tax rolls from in August 2023.
Page 243 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Recommended
Action
Staff is submitting 153 delinquent sewer accounts valued at
$62,487 on the lien list to City Council.
Staff recommends City Council
conduct the public hearing and
adopt a resolution assessing certain
delinquent sewer service charges as
recorded liens upon the respective
parcels of land and placement of
those charges on the next regular
property tax bill for collection by the
County Treasurer-Tax Collector.
Page 244 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612 Page | 1
MEMO
Finance Department
DATE: May 28, 2024
TO: Honorable Mayor & Council
FROM: Sarah Schoen, Finance Director
SUBJECT: May 28, 2024 Public Hearings to Consider Assessing Delinquent Sewer
and Solid Waste Service Charges as Recorded Liens and Placement of
Delinquent Charges on the Next Regular Property Tax Bill for Collection
by the County Treasurer-Tax Collector
Attached for your information are updated lists of delinquent sewer and solid waste accounts, to
be considered at the May 28, 2024 public hearing (Council agenda items number 7.1 and 7.2,
respectively).
The attached reports reflect delinquent sewer and solid waste accounts through yesterday, May 27,
2024. Accounts may be cleared only if paid in full. Staff will continue to work with delinquent
account holders to resolve these outstanding balances prior to forwarding the charges to the County
Treasurer-Tax Collector, to be assessed as recorded liens on the respective parcels of land and
ultimately placed on the next regular property tax bill for collection.
Should you have any additional questions, I can be reached at (619) 409-3818.
Attachments:
1.Delinquent Sewer Accounts (reflects activity through May 27, 2024)
2.Delinquent Solid Waste Accounts (reflects activity through May 27, 2024)
Additional Information - Items 7.1 and 7.2
Page 245 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 2
FINANCE DEPARTMENT
COLLECTIONS UNIT
Delinquent Sewer Accounts
SEWER ACCOUNT APN AMOUNT
126663-000 5932720900 $ 415.44
133714-000 5931902400 $ 400.56
001497-000 5710721900 $ 369.14
001630-000 5711010200 $ 272.16
002672-000 5712921600 $ 192.01
006159-000 5661030800 $ 281.38
024217-000 5680142500 $ 1,038.75
045046-000 5651610500 $ 223.43
045965-000 5680142200 $ 282.10
046135-000 5660800800 $ 400.56
062561-000 5670711200 $ 326.05
072563-000 5712620900 $ 283.40
090777-000 5711121900 $ 281.38
099520-000 5661100500 $ 683.52
101536-000 5711030500 $ 413.83
102176-000 5712621300 $ 370.76
104978-000 5680741300 $ 475.01
111059-000 5703801600 $ 221.80
121193-000 5703110400 $ 365.98
121617-000 5711231500 $ 518.38
122219-000 5651921100 $ 177.13
123699-000 5660902303 $ 337.52
126573-000 5660601400 $ 213.31
133779-000 5662911600 $ 796.82
134695-000 5661321800 $ 238.93
135012-000 5651101500 $ 352.30
135624-000 5711020100 $ 326.05
135784-000 5712230400 $ 182.82
137219-000 5711210600 $ 689.73
137267-000 5663007200 $ 409.92
024274-000 5680441600 $ 232.49
080708-000 5712502200 $ 1,646.55
125134-000 5652611300 $ 876.76
Page 246 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 3
SEWER ACCOUNT APN AMOUNT
135149-000 5670730700 $ 252.23
006678-000 6200230200 $ 329.19
007014-000 6203020400 $ 192.01
007045-000 6202100500 $ 193.97
007328-000 6200220500 $ 291.50
007425-000 6203030400 $ 460.10
007766-000 6202513500 $ 206.92
008366-000 6396601600 $ 343.64
009528-000 5753301000 $ 594.17
011208-000 6390430100 $ 220.79
011991-000 6395502300 $ 385.66
012293-000 6394021000 $ 281.38
012405-000 6393830200 $ 189.79
061968-000 6396600200 $ 324.51
062300-000 6202730200 $ 385.63
063515-000 5751510500 $ 329.14
069848-000 6204501100 $ 281.38
069872-000 6203801300 $ 355.83
071361-000 6201940100 $ 236.74
073481-000 6202620700 $ 311.19
075658-000 5754810200 $ 296.28
077507-000 6202512600 $ 360.09
077771-000 5753220800 $ 296.28
080770-000 6200312300 $ 475.01
081831-000 6205700700 $ 326.05
082923-000 6391031400 $ 251.59
085257-000 5755000500 $ 326.05
100998-000 6393820500 $ 400.56
101666-000 5752711400 $ 206.92
101952-000 6201810600 $ 311.19
110112-000 6201220900 $ 415.44
110919-000 6203304800 $ 162.24
116127-000 6203400300 $ 251.59
116129-000 6393920400 $ 266.50
116627-000 6202740300 $ 192.01
120172-000 5752711300 $ 442.05
121764-000 5743002000 $ 326.05
122601-000 6200222100 $ 284.04
122689-000 6396200900 $ 267.33
123159-000 6394111500 $ 251.59
126051-000 5752310100 $ 340.98
Page 247 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 4
SEWER ACCOUNT APN AMOUNT
126597-000 6202940700 $ 572.60
126603-000 6395700700 $ 281.38
127098-000 6393530100 $ 425.56
127193-000 6392510300 $ 296.28
127725-000 6203020200 $ 182.82
129294-000 6394702200 $ 166.42
129646-000 6203900900 $ 314.97
129974-000 6204502400 $ 419.33
131099-000 5755111700 $ 306.38
131167-000 5754110300 $ 236.74
131181-000 5753510300 $ 334.71
131386-000 6391040400 $ 182.82
131853-000 5751810400 $ 221.80
132544-000 6201820900 $ 242.36
134058-000 6204601600 $ 125.23
134169-000 5751910200 $ 489.89
134170-000 5751920200 $ 549.47
134391-000 6393140800 $ 653.72
134528-000 6392510200 $ 266.50
136146-000 5752720800 $ 172.86
137172-000 5752410600 $ 428.30
137255-000 6395800400 $ 326.05
137289-000 6396100400 $ 500.84
013611-000 5721500300 $ 153.54
013853-000 5721630800 $ 221.80
013997-000 5722010100 $ 177.13
014341-000 5722602300 $ 355.83
017785-000 5691710800 $ 326.05
061225-000 5691706300 $ 891.80
078203-000 5691330700 $ 142.24
081048-000 5692512400 $ 296.28
085762-000 5721222800 $ 280.80
093231-000 5734900800 $ 326.05
093515-000 5742711500 $ 579.26
097189-000 5741502000 $ 500.52
103446-000 5732702500 $ 326.05
104304-000 5684201900 $ 713.31
104320-000 5732800300 $ 177.13
110268-000 5741711300 $ 147.34
116861-000 5742400200 $ 236.74
125245-000 5732900300 $ 669.32
Page 248 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 5
SEWER ACCOUNT APN AMOUNT
125400-000 5741204300 $ 277.71
125580-000 5720630200 $ 451.39
125786-000 5741711900 $ 355.83
126251-000 5722521100 $ 1,737.34
126358-000 5744101400 $ 374.63
127794-000 5732701000 $ 137.99
128673-000 5693200100 $ 131.38
129959-000 5722401000 $ 173.92
130010-000 5742120600 $ 170.24
130105-000 5693121000 $ 129.42
131012-000 5740910500 $ 236.74
131410-000 5733030500 $ 276.59
131620-000 5702800500 $ 370.76
131649-000 5733104200 $ 440.14
131866-000 5733511400 $ 311.19
132955-000 5735112100 $ 296.28
133874-000 5742710800 $ 206.92
135160-000 5692421800 $ 311.19
136389-000 5722321600 $ 296.28
024281-000 5733104000 $ 383.80
090755-000 5683312000 $ 787.08
116827-000 5730210500 $ 7,250.40
125160-000 5730210300 $ 496.23
137447-000 5734200500 $ 470.99
020153-000 6190812500 $ 311.19
020430-000 6193702300 $ 202.66
021048-000 6233426800 $ 311.19
025939-000 5735340400 $ 306.38
068883-000 5752220900 $ 306.38
082443-000 6233000700 $ 260.73
085183-000 6193505000 $ 281.38
110711-000 5754321600 $ 370.76
120447-000 5752921400 $ 698.43
125624-000 6193423300 $ 335.19
126166-000 5752931400 $ 221.80
127946-000 6233151000 $ 939.69
135766-000 6233110700 $ 291.50
137161-000 6233151500 $ 445.22
TOTAL 153 $ 62,486.74
Page 249 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 6
FINANCE DEPARTMENT
COLLECTIONS UNIT
Delinquent Solid Waste Accounts
SOLID WASTE ACCOUNT APN AMOUNT
509-0006407 5952024900 $ 331.71
509-0006443 6396902800 $ 85.04
509-0007084 5952414000 $ 136.84
509-0010935 6422521000 $ 249.94
509-0011706 5703110400 $ 327.04
509-0013858 5742401400 $ 185.08
509-0014374 5751820800 $ 589.61
509-0014382 5751920600 $ 167.26
509-0014897 6397022600 $ 321.67
509-0014998 6421302700 $ 1,094.19
509-0015622 6232804100 $ 554.82
509-0015743 5710721900 $ 237.36
509-0015841 5712921600 $ 374.08
509-0016581 6203202800 $ 485.03
509-0016706 6202100500 $ 78.19
509-0018148 6393830200 $ 126.84
509-0018402 6201940100 $ 499.84
509-0019111 6204501600 $ 505.25
509-0019271 6401961400 $ 315.50
509-0019458 5732800300 $ 163.92
509-0019844 6242901700 $ 151.02
509-0020548 6205000100 $ 213.50
509-0020622 6401711800 $ 95.04
509-0020935 6422001300 $ 163.92
509-0021030 6241502200 $ 518.58
509-0021090 6422001400 $ 332.39
509-0021091 6396902600 $ 595.03
509-0021877 6193202700 $ 95.50
509-0022307 6183800900 $ 320.86
Page 250 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 7
SOLID WASTE ACCOUNT APN AMOUNT
509-0023029 6231911400 $ 263.20
509-0023301 6291520200 $ 804.25
509-0024021 6243851300 $ 1,973.08
509-0024258 6421501200 $ 95.44
509-0025209 5721310800 $ 230.54
509-0026271 6422611600 $ 302.24
509-0026622 6241102700 $ 274.84
509-0027012 6205106800 $ 421.25
509-0027132 5942100400 $ 85.47
509-0028068 6401204400 $ 116.84
509-0029074 6205801300 $ 342.48
509-0029378 6241601700 $ 84.46
509-0029835 5733422900 $ 703.10
509-0030244 5711520700 $ 345.94
509-0030329 6410921000 $ 293.70
509-0031280 5943410800 $ 241.26
509-0033192 6193204800 $ 589.00
509-0034201 6203801300 $ 645.58
509-0034266 5650900100 $ 136.84
509-0034279 5720630800 $ 101.50
509-0034331 6242700700 $ 329.08
509-0034454 6390109600 $ 175.08
509-0035211 5741711300 $ 302.23
509-0036791 6200230200 $ 810.34
509-0037014 6242103400 $ 666.91
509-0037197 6222120700 $ 117.59
509-0037715 5651510300 $ 504.72
509-0048385 5922302100 $ 263.16
509-0051177 5703801600 $ 277.66
509-0054053 6423204200 $ 272.78
509-0054571 6393820500 $ 208.63
509-0057376 6201620300 $ 220.78
509-0057934 6202730200 $ 1,721.15
509-0058949 6220715700 $ 403.11
509-0059034 6233000700 $ 402.67
509-0059572 6423140600 $ 310.84
509-0062844 5651921100 $ 409.16
509-0065041 5941215600 $ 1,771.38
509-0066873 6191411300 $ 76.49
509-0067441 6220723500 $ 433.82
509-0067775 5954505800 $ 371.11
Page 251 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 8
SOLID WASTE ACCOUNT APN AMOUNT
509-0068748 5684201900 $ 241.50
509-0070906 6400312000 $ 652.32
509-0073151 6183330900 $ 530.58
509-0073337 5711531200 $ 129.18
509-0073650 5722010100 $ 210.54
509-0073880 6193505900 $ 84.46
509-0075807 5712631000 $ 1,506.08
509-0077380 5953215302 $ 240.78
509-0077655 6203030400 $ 402.20
509-0078269 6233426800 $ 304.72
509-0079112 6395502300 $ 343.76
509-0079579 5943922500 $ 179.15
509-0080270 6403403800 $ 115.14
509-0082840 5953503300 $ 319.59
509-0084929 6183010200 $ 85.76
509-0085455 6394021000 $ 305.78
509-0086626 6206520600 $ 297.60
509-0087238 6191310800 $ 168.08
509-0087321 5953611500 $ 84.46
509-0088129 5734100700 $ 425.00
509-0088930 6203020400 $ 370.77
509-0091190 6243003100 $ 320.48
509-0091336 6190812500 $ 275.00
509-0092436 5752311800 $ 2,460.48
509-0093094 6310110900 $ 565.88
509-0093323 6183600100 $ 568.88
509-0094390 5711821400 $ 368.66
509-0094844 5933822800 $ 507.10
509-0094869 6192610500 $ 105.04
509-0094969 6394110600 $ 719.74
509-0095119 6241001900 $ 202.30
509-0095193 5752930800 $ 84.46
509-0095404 6240414400 $ 218.70
509-0095717 6192501100 $ 320.98
509-0096129 6191223500 $ 157.10
509-0096323 5944328700 $ 126.84
509-0096330 6181310900 $ 409.08
509-0096522 5933800400 $ 576.30
509-0097097 5932711400 $ 373.68
509-0097881 5735003100 $ 105.04
509-0098369 5743621200 $ 366.71
Page 252 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 9
SOLID WASTE ACCOUNT APN AMOUNT
509-0099097 5953302100 $ 296.36
509-0099385 5955904100 $ 329.20
509-0099491 5944305000 $ 286.54
509-0101272 6396601600 $ 295.58
509-0102287 5661810600 $ 1,208.47
509-0102409 6192020900 $ 2,147.00
509-0102700 5680142500 $ 804.24
509-0102773 5932920700 $ 345.09
509-0104007 5720620300 $ 218.16
509-0104581 5751001700 $ 293.92
509-0104947 5693805900 $ 115.04
509-0106229 5670711200 $ 332.54
509-0107337 6426102900 $ 315.44
509-0107406 6426013100 $ 383.28
509-0107888 5752520500 $ 292.22
509-0108447 5651002100 $ 570.76
509-0108576 6192313300 $ 742.70
509-0108580 6432510900 $ 236.70
509-0108699 5943511800 $ 589.61
509-0109527 6205700700 $ 587.48
509-0109708 5742810300 $ 342.48
509-0110767 5751001500 $ 364.61
509-0112877 5680142200 $ 80.09
509-0112973 6392221200 $ 320.76
509-0113352 6230903200 $ 185.40
509-0113377 6202731500 $ 340.54
509-0114526 6432300100 $ 329.08
509-0114646 5684502700 $ 335.59
509-0116884 5703124300 $ 422.66
509-0117145 6205411600 $ 331.44
509-0118678 6232903100 $ 1,155.88
509-0118713 5955100208 $ 171.72
509-0118929 6192611000 $ 512.16
509-0119043 6433202500 $ 95.04
509-0119661 6396600200 $ 326.79
509-0119839 6205302100 $ 587.71
509-0119982 5954406000 $ 256.10
509-0120193 5941212700 $ 193.14
509-0120714 6426331100 $ 423.25
509-0123901 6434004600 $ 99.04
509-0124621 6192021200 $ 307.09
Page 253 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 10
SOLID WASTE ACCOUNT APN AMOUNT
509-0127721 6411706100 $ 97.32
509-0129225 6420802708 $ 509.36
509-0130145 6396840100 $ 299.27
509-0130189 6425904800 $ 306.16
509-0130267 5933610900 $ 283.49
509-0131419 6426904700 $ 300.04
509-0131962 6433123300 $ 1,314.66
509-0133508 6203303000 $ 364.80
509-0133872 5752220900 $ 75.55
509-0133913 5957401700 $ 490.60
509-0134466 5730820600 $ 339.94
509-0137571 5711221100 $ 163.92
509-0140270 6412301500 $ 579.86
509-0141592 6180613200 $ 163.92
509-0142227 6423707900 $ 147.64
509-0142834 6393811300 $ 630.62
509-0143623 6411601200 $ 286.20
509-0143676 5957510600 $ 199.03
509-0143742 5957641300 $ 111.45
509-0143916 6435144200 $ 185.08
509-0144417 5957404100 $ 298.93
509-0144457 5957261700 $ 343.68
509-0145377 5690804000 $ 241.35
509-0146257 6435147400 $ 282.20
509-0146379 6435164300 $ 653.65
509-0147728 6435902900 $ 643.02
509-0147847 5691705700 $ 85.37
509-0150115 5955100503 $ 457.74
509-0150659 6202620700 $ 121.58
509-0150752 6412204400 $ 163.92
509-0151972 6412821000 $ 338.78
509-0152409 5953215717 $ 392.75
509-0152964 5957202700 $ 291.70
509-0153801 5751831500 $ 163.56
509-0153990 6205700800 $ 661.99
509-0154300 6411802000 $ 4,785.76
509-0156991 6403401100 $ 331.66
509-0158421 6431305500 $ 330.72
509-0158586 6425301700 $ 105.04
509-0158814 6436621500 $ 328.20
509-0160727 6403803100 $ 373.81
Page 254 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 11
SOLID WASTE ACCOUNT APN AMOUNT
509-0161613 5958614500 $ 183.92
509-0161620 5958604600 $ 758.79
509-0163701 5753220800 $ 331.66
509-0163727 6233311500 $ 284.93
509-0163961 5952610700 $ 495.86
509-0164559 6411410600 $ 259.97
509-0165066 6390710300 $ 542.22
509-0165127 6434865363 $ 96.18
509-0165814 6202621200 $ 1,113.83
509-0167145 6394700900 $ 343.32
509-0167584 6411111200 $ 122.26
509-0167681 6394120400 $ 163.92
509-0167773 5711430200 $ 539.18
509-0168880 6401613700 $ 241.84
509-0171449 5954703300 $ 163.92
509-0172791 6426322400 $ 127.98
509-0174242 6425402600 $ 1,786.66
509-0174330 5742120600 $ 113.10
509-0174601 6193423300 $ 337.50
509-0175664 6437401900 $ 483.88
509-0175698 6437411900 $ 329.30
509-0181340 6434841600 $ 331.66
509-0182374 6431002205 $ 297.98
509-0182702 6204204000 $ 1,435.75
509-0182807 5933821900 $ 301.38
509-0182817 6193505000 $ 222.05
509-0183696 5711420500 $ 305.81
509-0184235 5721222800 $ 302.93
509-0184474 5931601800 $ 224.06
509-0184508 6434004800 $ 124.72
509-0184701 6424800800 $ 577.78
509-0185443 6436103005 $ 371.17
509-0185463 6233322100 $ 123.02
509-0185641 6396501200 $ 283.49
509-0187290 5933718200 $ 372.89
509-0187497 6403301908 $ 92.26
509-0189278 6410915100 $ 296.12
509-0189417 6434825800 $ 84.46
509-0189903 6193421600 $ 84.46
509-0191880 5932001000 $ 189.47
509-0192171 6435026900 $ 332.19
Page 255 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 12
SOLID WASTE ACCOUNT APN AMOUNT
509-0192329 6390411400 $ 368.94
509-0194474 6241700900 $ 80.16
509-0194616 6205306900 $ 689.54
509-0196177 6191610300 $ 359.99
509-0198287 5661810400 $ 104.61
509-0198378 5921912006 $ 183.92
509-0199146 6202512900 $ 182.86
509-0199610 5742711500 $ 577.02
509-0200030 5956603300 $ 263.16
509-0200787 6242901900 $ 582.06
509-0202198 6202621700 $ 366.05
509-0202845 6206105500 $ 373.81
509-0203688 5958440400 $ 387.63
509-0204026 5954505200 $ 401.63
509-0204975 5741502000 $ 414.38
509-0205409 5754811400 $ 96.07
509-0205678 6183720900 $ 95.04
509-0206337 5633100400 $ 1,264.36
509-0206497 5950314309 $ 349.12
509-0206602 6242503200 $ 374.20
509-0208222 6233131000 $ 273.21
509-0210026 5950314614 $ 495.46
509-0210470 5954300408 $ 285.80
509-0211132 6434865334 $ 1,145.24
509-0211268 6436723300 $ 316.88
509-0211614 5671010600 $ 402.40
509-0212135 6426503400 $ 186.63
509-0212568 5733030100 $ 373.43
509-0213660 6202811300 $ 416.37
509-0213832 6201810600 $ 308.68
509-0214345 6402720100 $ 302.26
509-0214585 6183600600 $ 124.01
509-0215672 6436621200 $ 115.04
509-0215775 6403505800 $ 342.95
509-0216162 6396000900 $ 658.71
509-0217312 5732702500 $ 408.24
509-0218718 6394320600 $ 570.12
509-0219805 6436510804 $ 133.58
509-0220019 6430515331 $ 410.32
509-0220564 6435913500 $ 101.58
509-0221064 6231712000 $ 445.12
Page 256 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 13
SOLID WASTE ACCOUNT APN AMOUNT
509-0221275 6436510607 $ 318.82
509-0221281 6433401100 $ 483.32
509-0221522 5954200807 $ 256.22
509-0221582 6403100700 $ 332.30
509-0221979 5712321100 $ 199.95
509-0223075 5931430500 $ 589.95
509-0224312 5650321300 $ 248.43
509-0225904 5753011600 $ 545.38
509-0226758 5754110400 $ 104.04
509-0227373 5693200600 $ 95.04
509-0227554 6191720500 $ 370.06
509-0228959 5954505600 $ 365.09
509-0229687 6401010800 $ 104.46
509-0230101 6426811600 $ 212.92
509-0230244 6201220900 $ 341.32
509-0230323 6435305500 $ 1,205.75
509-0230778 6403406700 $ 342.18
509-0230847 6411705300 $ 95.04
509-0230894 5950315270 $ 1,202.01
509-0231100 6222120900 $ 129.43
509-0231209 5754321600 $ 299.82
509-0231291 6412712100 $ 587.02
509-0232509 5954405700 $ 225.00
509-0233092 6393920400 $ 307.09
509-0233189 6430515327 $ 224.40
509-0233560 6411930200 $ 185.08
509-0233736 6200750200 $ 501.94
509-0234936 6436602200 $ 381.21
509-0235935 6423621900 $ 223.78
509-0235966 5680741300 $ 262.69
509-0237100 5755200400 $ 581.51
509-0237368 6436902100 $ 94.46
509-0237680 5952924900 $ 185.08
509-0238420 6401801800 $ 133.92
509-0239012 6401803100 $ 532.09
509-0240804 6202101200 $ 187.51
509-0241091 5721910600 $ 331.58
509-0241127 5752921400 $ 405.45
509-0241767 6206031400 $ 276.08
509-0241961 5954201012 $ 200.75
509-0242319 6404101200 $ 197.90
Page 257 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 14
SOLID WASTE ACCOUNT APN AMOUNT
509-0243323 5690100500 $ 658.71
509-0243368 6435151200 $ 2,766.22
509-0243967 6411134800 $ 110.98
509-0244354 5954200716 $ 328.88
509-0244807 6200222100 $ 350.45
509-0245249 6435611700 $ 492.07
509-0245642 6396200900 $ 332.99
509-0246486 5957331600 $ 420.41
509-0246493 6436720900 $ 272.05
509-0247410 5754700100 $ 370.93
509-0248247 5958111100 $ 185.08
509-0248834 6433400500 $ 176.40
509-0248978 5957811000 $ 563.22
509-0248992 5953215208 $ 308.50
509-0249218 5735120800 $ 301.48
509-0249332 6432510500 $ 331.66
509-0249596 6435158200 $ 247.70
509-0250022 6200311700 $ 451.08
509-0251399 6205800300 $ 296.86
509-0251490 6432811200 $ 329.08
509-0251495 6205420500 $ 271.75
509-0251508 6433203900 $ 85.08
509-0251730 6434102500 $ 666.48
509-0251865 5933300500 $ 701.76
509-0252188 6442401822 $ 256.20
509-0252360 6401010700 $ 170.12
509-0252516 5741711900 $ 1,518.80
509-0252957 5958441100 $ 661.26
509-0253090 6430515320 $ 86.56
509-0253321 6411114000 $ 106.18
509-0253530 5720800900 $ 340.52
509-0253852 5752310100 $ 301.50
509-0253910 6426214100 $ 856.94
509-0254394 5722521100 $ 97.32
509-0254866 5744101400 $ 135.08
509-0255462 6232215700 $ 148.20
509-0255587 6432201600 $ 520.90
509-0255607 6434200400 $ 94.46
509-0255711 6395700700 $ 364.96
509-0255910 5663005101 $ 101.94
509-0256169 6442714600 $ 233.72
Page 258 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 15
SOLID WASTE ACCOUNT APN AMOUNT
509-0256264 6220723500 $ 437.26
509-0256373 5691901800 $ 2,395.77
509-0256961 6200820300 $ 1,069.26
509-0258374 6430514932 $ 94.46
509-0258764 6202940700 $ 291.78
509-0258778 6201610400 $ 312.66
509-0258884 6291510200 $ 382.22
509-0259048 6432711800 $ 502.14
509-0259162 6435805300 $ 305.72
509-0259239 5693631900 $ 252.52
509-0259641 5755300200 $ 1,126.73
509-0260266 6392510300 $ 332.62
509-0260359 5943843600 $ 570.44
509-0260583 6411601000 $ 340.33
509-0260674 5742610200 $ 333.76
509-0261136 6432331900 $ 84.46
509-0261287 5711821800 $ 181.69
509-0261331 5750500300 $ 177.21
509-0261355 6394111600 $ 2,766.22
509-0261357 6436510910 $ 495.96
509-0261850 6437701518 $ 115.04
509-0262080 6403921000 $ 185.08
509-0262704 6435012700 $ 122.89
509-0262745 6434860500 $ 285.02
509-0262800 6240212700 $ 147.77
509-0262867 5954102415 $ 166.98
509-0263272 6183501100 $ 257.80
509-0263660 6201001500 $ 322.64
509-0263674 6402340800 $ 329.56
509-0263707 6443102051 $ 364.33
509-0264374 6182401500 $ 131.77
509-0264419 6396412800 $ 87.59
509-0264569 6184101500 $ 387.61
509-0264584 5693200100 $ 422.41
509-0264878 7762310205 $ 557.96
509-0265387 5741710700 $ 365.60
509-0265427 5953212928 $ 314.76
509-0265455 6233141300 $ 204.18
509-0265879 6394110500 $ 661.28
509-0265939 6180902000 $ 341.38
509-0266151 5954405200 $ 404.13
Page 259 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 16
SOLID WASTE ACCOUNT APN AMOUNT
509-0266206 5753510300 $ 342.48
509-0266481 6395933100 $ 319.82
509-0266531 6443146000 $ 1,996.56
509-0266901 5955100606 $ 240.64
509-0267363 6401520500 $ 332.90
509-0267523 6442703700 $ 149.00
509-0267669 5662911000 $ 642.80
509-0267847 5954200911 $ 289.21
509-0268153 5711520800 $ 548.58
509-0268208 6192010700 $ 564.68
509-0268292 5693111400 $ 373.35
509-0268409 6434902000 $ 196.08
509-0268423 6411123400 $ 3,301.69
509-0268516 6435204209 $ 403.04
509-0268584 6434865369 $ 95.04
509-0268902 5651702200 $ 1,211.44
509-0269550 6395401200 $ 185.08
509-0269883 6192313500 $ 721.92
509-0269917 6291302600 $ 666.90
509-0269930 6432701300 $ 351.95
509-0270446 6203304700 $ 1,787.00
509-0270479 6193426200 $ 87.97
509-0270520 5957630800 $ 298.46
509-0270621 5730100700 $ 587.77
509-0271333 6404102800 $ 304.50
509-0271418 6435204204 $ 405.58
509-0271732 6403117500 $ 517.46
509-0271921 6435700200 $ 195.23
509-0272017 6220716900 $ 1,586.76
509-0272062 5954102314 $ 348.58
509-0272440 5921613300 $ 340.80
509-0272582 6424800400 $ 414.96
509-0272862 5933901900 $ 344.26
509-0272906 6443830200 $ 573.24
509-0273253 5731201900 $ 262.84
509-0273395 6441110500 $ 241.40
509-0273550 6432620700 $ 322.04
509-0273572 6203304800 $ 131.02
509-0273720 6182401200 $ 305.02
509-0273723 5685120400 $ 274.64
509-0274726 6443152000 $ 185.08
Page 260 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 17
SOLID WASTE ACCOUNT APN AMOUNT
509-0274810 5950315357 $ 1,063.44
509-0275231 6403230500 $ 105.04
509-0275400 6203103200 $ 453.72
509-0275860 5740910500 $ 305.93
509-0276037 6440612803 $ 84.46
509-0276193 5755202700 $ 667.35
509-0276197 6443826300 $ 271.00
509-0276312 6442710100 $ 312.74
509-0276315 5951401200 $ 208.94
509-0276330 6180720200 $ 583.84
509-0276791 5732000400 $ 95.45
509-0276900 6441114500 $ 527.94
509-0277002 6412512700 $ 431.49
509-0277414 5958802800 $ 361.70
509-0277433 6181521000 $ 1,202.14
509-0277539 6422000900 $ 834.08
509-0277593 6182303400 $ 110.11
509-0278116 5702800500 $ 235.46
509-0278255 6424912500 $ 307.07
509-0278590 5952220129 $ 364.27
509-0278665 6432323200 $ 573.15
509-0278694 6425901700 $ 103.73
509-0279274 6403300106 $ 81.60
509-0279326 6433800901 $ 398.04
509-0279345 5751810400 $ 195.32
509-0279364 5931701300 $ 319.29
509-0279374 6393512000 $ 136.08
509-0279494 6181620600 $ 500.26
509-0279637 6431501300 $ 1,734.48
509-0279662 6430650653 $ 322.90
509-0279686 6435616700 $ 341.68
509-0280340 5943821200 $ 492.66
509-0280682 5952140600 $ 244.18
509-0281079 5750331400 $ 174.00
509-0281148 6433121300 $ 289.16
509-0281370 6243853500 $ 523.60
509-0281493 6443311100 $ 933.44
509-0281577 6435205614 $ 139.34
509-0281618 6430640127 $ 587.03
509-0281761 6426912700 $ 517.72
509-0282076 6436102715 $ 180.48
Page 261 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 18
SOLID WASTE ACCOUNT APN AMOUNT
509-0282101 6443138068 $ 147.40
509-0282249 6403817500 $ 621.27
509-0282330 6436103107 $ 517.66
509-0282768 6430210909 $ 326.82
509-0282846 5954102603 $ 235.00
509-0282881 6436102818 $ 140.21
509-0283117 5957500500 $ 80.54
509-0283280 6443503904 $ 561.22
509-0283591 6436103116 $ 185.08
509-0283634 5957462100 $ 303.77
509-0283798 6432112300 $ 476.90
509-0284275 5742813500 $ 113.10
509-0284307 6431404600 $ 318.60
509-0284580 5957910500 $ 1,199.82
509-0284749 6183721300 $ 466.06
509-0285164 5921712600 $ 567.54
509-0285506 6436122818 $ 1,041.49
509-0285545 6443711500 $ 98.59
509-0285692 5951801900 $ 138.90
509-0285710 6396200800 $ 590.71
509-0286067 6183421600 $ 90.27
509-0286233 6442012400 $ 480.72
509-0286625 6431902300 $ 430.08
509-0286687 5742021200 $ 580.90
509-0287360 6393530200 $ 100.99
509-0287366 5933600700 $ 84.46
509-0287500 6443861000 $ 327.36
509-0287622 6412710600 $ 1,728.72
509-0287682 5943921600 $ 1,014.86
509-0287733 5953601200 $ 311.99
509-0287974 6413003200 $ 1,078.40
509-0288260 5722602400 $ 823.67
509-0288303 6435513600 $ 122.28
509-0288456 5751710600 $ 498.62
509-0288931 6243202000 $ 153.89
509-0289166 6443503823 $ 408.64
509-0289431 6432113500 $ 494.84
509-0289470 6394320700 $ 830.40
509-0289505 5730630700 $ 304.46
509-0289647 6202940200 $ 222.51
509-0289653 6203702500 $ 381.76
Page 262 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 19
SOLID WASTE ACCOUNT APN AMOUNT
509-0289740 6434816400 $ 132.86
509-0289776 5712610800 $ 86.48
509-0289806 6423522600 $ 97.59
509-0289819 6443110614 $ 1,730.03
509-0289928 5722010300 $ 161.06
509-0290020 6191321700 $ 447.98
509-0290075 6420803504 $ 138.16
509-0290118 6443212300 $ 147.08
509-0290217 6436102718 $ 287.61
509-0290370 5952932200 $ 168.60
509-0290481 6433801827 $ 935.94
509-0290509 5754500600 $ 169.40
509-0291028 6435307300 $ 96.82
509-0291123 5650510300 $ 337.58
509-0291165 5633100500 $ 122.52
509-0291208 6425700500 $ 426.15
509-0291418 6435710100 $ 130.44
509-0291577 6393140800 $ 318.10
509-0292091 6412113200 $ 266.68
509-0292138 6205306500 $ 125.34
509-0292161 6402800876 $ 240.78
509-0292269 6403911900 $ 85.04
509-0292383 5954102316 $ 530.02
509-0292531 6425902400 $ 732.60
509-0292536 6190710400 $ 104.06
509-0292646 6425902400 $ 84.98
509-0292651 6394130600 $ 199.44
509-0292766 5712820400 $ 878.08
509-0292891 5952530800 $ 306.69
509-0293243 6436604600 $ 200.35
509-0293619 5957251900 $ 543.77
509-0293655 6423140500 $ 1,078.40
509-0293902 5650521600 $ 185.08
509-0293998 6443138042 $ 139.24
509-0294392 6435614800 $ 581.54
509-0294517 6432331600 $ 548.58
509-0294765 5958304300 $ 141.40
509-0294828 6430515033 $ 1,347.69
509-0294862 5681630400 $ 97.67
509-0295201 6423610200 $ 156.43
509-0295488 6205800100 $ 279.70
Page 263 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 20
SOLID WASTE ACCOUNT APN AMOUNT
509-0295593 6425313200 $ 331.16
509-0295762 6402722100 $ 281.31
509-0295846 5670730700 $ 84.46
509-0295873 5721620400 $ 203.63
509-0295901 5754501100 $ 217.60
509-0295975 6442922000 $ 378.53
509-0296142 6442704600 $ 272.05
509-0296476 5958461800 $ 323.58
509-0296673 6242100300 $ 298.78
509-0296802 5682632400 $ 1,067.56
509-0296828 5933022100 $ 456.52
509-0296904 5951641700 $ 314.70
509-0296936 6310121700 $ 444.90
509-0297043 6430651990 $ 546.36
509-0297367 6430652116 $ 375.43
509-0297752 6403107000 $ 232.76
509-0297787 5958214300 $ 185.08
509-0297813 6440612904 $ 185.08
509-0297863 5953802200 $ 1,147.80
509-0297865 6437510900 $ 328.06
509-0298061 6435423300 $ 613.44
509-0298150 6404110500 $ 328.00
509-0298271 5670321700 $ 1,020.11
509-0298273 6432601200 $ 91.97
509-0298353 6430652153 $ 757.42
509-0298390 6233110700 $ 362.59
509-0298436 6412115400 $ 286.87
509-0298447 5950314319 $ 656.65
509-0298570 5943910600 $ 226.63
509-0298637 5711020100 $ 221.20
509-0298754 5957602600 $ 175.08
509-0298765 5852200500 $ 136.87
509-0298977 6435707100 $ 465.76
509-0299086 6433123800 $ 128.00
509-0299282 6240514700 $ 183.54
509-0299284 6392120900 $ 493.04
509-0299332 6443313209 $ 535.70
509-0299361 6436500422 $ 163.92
509-0299378 5957351100 $ 329.64
509-0299452 6392121200 $ 403.88
509-0299740 5752720800 $ 230.63
Page 264 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 21
SOLID WASTE ACCOUNT APN AMOUNT
509-0299983 5712621700 $ 1,055.80
509-0300082 6443503916 $ 322.65
509-0300249 6411930400 $ 213.96
509-0300345 6433700122 $ 408.58
509-0300453 5958434100 $ 304.60
509-0300671 6444044500 $ 156.30
509-0300808 5685111200 $ 1,147.79
509-0301022 6232717238 $ 79.84
509-0301255 6443441200 $ 394.50
509-0301356 6443502600 $ 874.07
509-0301409 6435402200 $ 395.74
509-0301424 5670902700 $ 276.17
509-0301502 6440723022 $ 521.26
509-0301612 5751830400 $ 673.43
509-0301768 6436500426 $ 241.66
509-0301900 5711121300 $ 542.19
509-0301982 6402723200 $ 518.57
509-0302153 6442401725 $ 285.40
509-0302244 6436102734 $ 255.96
509-0302523 5852200200 $ 316.84
509-0302637 6404012400 $ 173.23
509-0302786 5722321600 $ 460.74
509-0302923 6443210400 $ 85.66
509-0302969 5720520900 $ 376.07
509-0303382 5952932200 $ 77.12
509-0303422 5693730800 $ 262.50
509-0303425 6436103325 $ 574.93
509-0303516 6443102245 $ 738.45
509-0303807 5730730800 $ 213.38
509-0303832 5732220600 $ 589.65
509-0303888 6430651824 $ 83.01
509-0304061 6231614600 $ 281.04
509-0304150 6411501600 $ 128.24
509-0304155 6440720118 $ 499.84
509-0304324 5652905109 $ 604.52
509-0304372 5955100408 $ 175.30
509-0304506 5913100800 $ 97.88
509-0304704 6425703600 $ 130.51
509-0304815 5734901600 $ 237.85
509-0305002 6435143900 $ 609.16
509-0305059 5722521400 $ 683.24
Page 265 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 22
SOLID WASTE ACCOUNT APN AMOUNT
509-0305312 6443884700 $ 321.04
509-0305336 6437002300 $ 107.96
509-0305351 5944326600 $ 584.30
509-0305360 6432112300 $ 283.72
509-0305436 6425500503 $ 96.68
509-0305476 5956004600 $ 132.72
509-0305521 6220727300 $ 244.84
509-0305625 6423525100 $ 409.98
509-0305746 6443311100 $ 230.05
509-0305827 6201610500 $ 217.22
509-0305875 5953215406 $ 417.41
509-0306078 5952220356 $ 372.29
509-0306100 6232800900 $ 221.70
509-0306116 6434503200 $ 514.97
509-0306249 6430653043 $ 508.15
509-0306251 6436122301 $ 272.05
509-0306293 6433410400 $ 434.47
509-0306303 5953804500 $ 142.42
509-0306369 6443811100 $ 414.47
509-0306547 6396902600 $ 776.21
509-0306582 5750102500 $ 310.46
509-0306868 6241001900 $ 273.75
509-0306898 6430212219 $ 368.19
509-0306984 6432112300 $ 440.08
509-0307003 6411912100 $ 105.04
509-0307074 6430212247 $ 262.79
509-0307213 5730622500 $ 922.06
509-0307572 5751720600 $ 669.34
509-0307588 5954508600 $ 78.83
509-0307664 6430515805 $ 118.65
509-0307799 6435204818 $ 480.29
509-0307907 5943910600 $ 343.89
509-0307953 5944327900 $ 359.85
509-0308001 5702901400 $ 131.59
509-0308156 5954301706 $ 244.14
509-0308264 6394220600 $ 206.09
509-0308380 5690302900 $ 302.08
509-0308409 6430651846 $ 266.28
509-0308431 6434606400 $ 341.00
509-0308610 5693110300 $ 113.15
509-0308923 5733822300 $ 285.12
Page 266 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 23
SOLID WASTE ACCOUNT APN AMOUNT
509-0309060 6443700900 $ 239.76
509-0309079 6441211000 $ 249.79
509-0309476 5752410600 $ 676.05
509-0309566 6205200700 $ 373.02
509-0309774 5953505300 $ 344.43
509-0309786 6435050500 $ 324.91
509-0309941 5652905005 $ 183.52
509-0310032 6182704500 $ 116.84
509-0310051 5952012100 $ 569.08
509-0310090 6443603700 $ 124.66
509-0310183 6443102029 $ 527.97
509-0310305 6422721800 $ 127.28
509-0310343 5957421600 $ 129.58
TOTAL: 698 $ 281,090.53
Page 267 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Solid Waste Service: Assess Delinquent Solid Waste Service Charges as Recorded Liens Upon Respective
Parcels of Land and Place Delinquent Charges on the Next Regular Property Tax Bill for Collection by the
County Treasurer-Tax Collector
Report Number: 24-0154
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3) no environmental review is required.
Recommended Action
Conduct the public hearing and adopt a resolution assessing certain delinquent solid waste charges as
recorded liens upon the respective parcels of land and placement of delinquent charges on the next regular
tax bill for collection by the County Treasurer-Tax Collector.
SUMMARY
To enhance the collection efforts and safeguard the City’s interest in solid waste service charges and related
delinquent fees and ensure that collection efforts are directed toward the responsible property owner, the
Finance Department is recommending the approval of placing property liens against affected parcels as a
preliminary action to placing the delinquencies on county property tax rolls if they remain unpaid. Adopting
this resolution will reduce uncollectible losses, ensure payments are received on a timelier basis, and ensure
responsible parties meet their solid waste service payment obligations.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has
determined that the activity is not a project as defined under Section 15378 of the State CEQA Guidelines
because the proposed activity consists of a governmental fiscal/administrative activity which does not result
Page 268 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
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.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
City residences and places of business benefit from the weekly collection of solid waste. Accordingly, per
Chula Vista Municipal Code (CVMC) Chapter 8.24, the collection of solid waste is a mandatory service and
shall not be discontinued or suspended. Through a franchise agreement with the City, Republic Services,
effectively manages the collection, transport, processing, reuse, and disposal or conversion of solid waste,
recyclables, and organic waste in a safe, sanitary, and aesthetically acceptable and economical manner.
To assist in the collection efforts and ensure all residents and business owners meet their obligations, CVMC
Section 8.24.180 allows delinquent solid waste service charges and associated fees to be assessed as
recorded liens upon the affected properties and ultimately placed on the county property tax bills for
collection by the County Treasurer-Tax Collector.
Staff submit accounts to the City Council on a biannual basis. The most recent public hearing on property
liens was held in December 2023. A property lien resolution for delinquent s olid waste service charges,
containing 322 accounts valued at $95,000, was submitted and approved by the City Council.
Since the recent re-establishment of the property lien process, the City has been able to collect about
$368,000 of the $424,000 delinquent solid waste service charge fees placed on the County tax rolls. In
accordance with the execution of the collection process described below, City staff is recommending the
assessment of recorded liens upon the affected properties as allowed by the Municipal Code.
Collection Process
In the months leading up to this public hearing, City staff and Republic Services staff put into effect an
informative process, in-line with Municipal Code requirements and collections best practices, to impose the
recording of property liens upon affected parcels. Property owners have been notified of their delinquencies
through a series of past-due notices sent by Republic Services.
City staff notified property owners of the public hearing via public hearing notice letters, requesting them to
pay the delinquent charges prior to transmittal of their delinquent account to the County Treasurer-Tax
Collector to avoid a lien being placed on their property. Staff also published a public hearing notice in a locally
circulated newspaper.
At the public hearing, a lien list is submitted by staff to the City Council, containing a list of accounts for
related parcels and the most up to date delinquent amounts due for consideration, together with any
objections or protests by interested parties, approving the placement of property liens. Staff is
recommending the City Council adopt a resolution assessing the lien of delinquent s olid waste accounts as
submitted, and these charges be forwarded to the County Treasurer-Tax Collector and assessed as recorded
liens on the respective parcels of land and ultimately placed on the next regular tax bill for collection.
Page 269 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
Staff is submitting 952 delinquent accounts valued at $340,000 for approval of collection through the lien
process. Account status and property ownership have been verified by Republic Services staff and City staff
through a third-party consultant, Spicer Consulting Services. Republic Services will continue to create
payment arrangements as needed and work with customers leading up to the lien recording submission date,
to avoid submitting accounts resolved following the public hearing.
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 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 as a result of this action.
ONGOING FISCAL IMPACT
Approval of this resolution supports the collection of delinquent s olid waste service charges through the
County tax roll collection process. Collection of delinquent charges in the amount of $340,000 should occur
within the 2024-25 fiscal year and will be incorporated into the annual budget process. A portion of this
amount will be realized by the City as Franchise Fees, AB939 fees and related delinquent fee revenues.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Revenue Manager
Sarah Schoen, Director of Finance/Treasurer
Page 270 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ASSESSING CERTAIN DELINQUENT SOLID
WASTE SERVICE CHARGES AS RECORDED LIENS UPON
THE RESPECTIVE PARCELS OF LAND AND PLACEMENT
OF DELINQUENT CHARGES ON THE NEXT REGULAR
PROPERTY TAX BILL FOR COLLECTION BY THE COUNTY
TREASURER-TAX COLLECTOR
WHEREAS, Chula Vista Municipal Code (“CVMC”) Section 8.24.010 states that the
collection of solid waste is a mandatory service and shall not be discontinued; and
WHEREAS, CVMC Section 8.24.180 allows delinquent solid waste service charges to be
assessed as recorded liens upon the affected properties and ultimately placed on the next regular
property tax bill for collection by the County Treasurer-Tax Collector; and
WHEREAS, CVMC Section 8.24.180 requires that, once solid waste fees become more
than 10 days delinquent, the City’s authorized collector shall issue late notice to the responsible
owners and occupants; and
WHEREAS, the Municipal Code further requires that, if an owner or occupant is
delinquent on payment of a solid waste service bill for more than 90 days, the account shall be
assigned to the City staff for collection, which must send a final notice of delinquency, including
the amount owed, penalty schedule, lien procedure and associated costs and administrative fees,
prior to setting the matter for hearing to consider a lien; and
WHEREAS, the Municipal Code provides that, if a solid waste service bill is not paid
within 15 days after the final notice of delinquency, the matter ma y be set for a public hearing, at
least 7 days after the 15-day period, following notification to the property owner; and
WHEREAS, City staff has identified certain properties for which solid waste service bills
meet the criteria for delinquency and submission for placement of property liens; and
WHEREAS, the account status and property ownership of these accounts have been
verified by both Republic Services and City staff; and
WHEREAS, property owners have been notified of their delinquencies through a series of
past due notices sent by Republic Services, until they were ultimately submitted to the City for
collection; and
WHEREAS, City staff has notified the property owners of the public hearing and these
owners were asked to pay their delinquent solid waste service charges prior to transmittal of the
delinquent account to the County to avoid a lien being placed their property; and
Page 271 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No.
Page 2
WHEREAS, City staff is recommending that the City Council approve the final list of
delinquent solid waste service accounts as submitted, and that these charges be submitted to the
County for assessment as recorded liens on the respective parcels of land and ultimately placed on
the next regular property tax bill for collection; and
WHEREAS, the City Council has held the requisite public hearing and considered the
delinquent accounts together with any objections or protests by interested parties; and
WHEREAS, at the conclusion of the hearing, the City Council approved the delinquency
and amount owed on the accounts as submitted.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it (1) has considered assessing certain delinquent solid waste service charges, as detailed in
the final list of delinquent solid waste service accounts presented to the City Council for this
matter, as recorded liens on the affected parcels; (2) has heard and overruled any and all protests
or objections presented at the public hearing on this matter; and (3) approves, with respect to the
delinquent account list submitted to the City Council and on file in the City Finance Department,
assessing delinquent solid waste service charges as recorded liens upon the respective parcels of
land and the placement of such delinquent solid waste service charges as special assessments on
the next corresponding regular property tax bills, unless cleared prior to transmittal of the
delinquent account list to the County Treasurer-Tax Collector.
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/ Treasurer City Attorney
Page 272 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item 7.2: Assessment of Delinquent
Solid Waste Service Charges as
Liens on Parcels and Placement on
Property Tax Bills
CITY COUNCIL PUBLIC HEARING
MAY 28, 2024
JIMMY VASQUEZ, REVENUE MANAGER, FINANCE DEPARTMENT
ADRIAN DEL RIO, ASSISTANT DIRECTOR, FINANCE DEPARTMENT
Page 273 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Solid Waste Service Background
oPer CVMC Section 8.24.010, the collection of
solid waste is a mandatory service which shall
not be discontinued or suspended.
oCVMC Section 8.24.180 outlines payment
obligations, billing cycles, service rates,
penalties for delinquency and the lien process.
oAdditional information on Sustainability/
Trash & Recycling:
o www.chulavistaca.gov/departments/clean
Page 274 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Process Overview and Program Impact
City and Republic Services staff follow the lien process per CVMC 13.14.180 leading up to the Public
Hearing.
Our comprehensive approach is highlighted by the following:
◦Several touchpoints and informative, translated noticing
◦Dedicated customer support phone line and payment support
◦Third-party parcel and account validation
◦Legal review of noticing and communication
◦Payment plan options
Staff is submitting a lien list containing 698 accounts valued at $281,000
53 lien-eligible accounts valued at $9K were placed on the payment plans
$561K in A/R has been paid since late notices were mailed
County property tax rolls have successfully collected $368K out of $423K in delinquent fees
Page 275 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Lien Timeline –May 2024 Lien Event
Chula Vista Lien Timeline
Service
period
Courtesy
Notification
Letter (bill
due 12/31)
Late
Notice
Final Late
Notice
Final Notice
of
Delinquency
Public
Hearing
Notice
Public
Hearing
Published
Public
Hearing
Lien
Recording
Parcels
Added to
Tax Roll
Jul 1 –Dec 31 Dec 21 Jan 10 Mar 30 May 9 May 28May 17 Aug 9Apr 14 May 29
Page 276 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Recommended Action
Staff recommends City Council conduct the public hearing and adopt a resolution assessing
certain delinquent solid waste service charges as recorded liens upon the respective parcels of
land and placement of those charges on the next regular property tax bill for collection by the
County Treasurer-Tax Collector.
Page 277 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612 Page | 1
MEMO
Finance Department
DATE: May 28, 2024
TO: Honorable Mayor & Council
FROM: Sarah Schoen, Finance Director
SUBJECT: May 28, 2024 Public Hearings to Consider Assessing Delinquent Sewer
and Solid Waste Service Charges as Recorded Liens and Placement of
Delinquent Charges on the Next Regular Property Tax Bill for Collection
by the County Treasurer-Tax Collector
Attached for your information are updated lists of delinquent sewer and solid waste accounts, to
be considered at the May 28, 2024 public hearing (Council agenda items number 7.1 and 7.2,
respectively).
The attached reports reflect delinquent sewer and solid waste accounts through yesterday, May 27,
2024. Accounts may be cleared only if paid in full. Staff will continue to work with delinquent
account holders to resolve these outstanding balances prior to forwarding the charges to the County
Treasurer-Tax Collector, to be assessed as recorded liens on the respective parcels of land and
ultimately placed on the next regular property tax bill for collection.
Should you have any additional questions, I can be reached at (619) 409-3818.
Attachments:
1.Delinquent Sewer Accounts (reflects activity through May 27, 2024)
2.Delinquent Solid Waste Accounts (reflects activity through May 27, 2024)
Additional Information - Items 7.1 and 7.2
Page 278 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 2
FINANCE DEPARTMENT
COLLECTIONS UNIT
Delinquent Sewer Accounts
SEWER ACCOUNT APN AMOUNT
126663-000 5932720900 $ 415.44
133714-000 5931902400 $ 400.56
001497-000 5710721900 $ 369.14
001630-000 5711010200 $ 272.16
002672-000 5712921600 $ 192.01
006159-000 5661030800 $ 281.38
024217-000 5680142500 $ 1,038.75
045046-000 5651610500 $ 223.43
045965-000 5680142200 $ 282.10
046135-000 5660800800 $ 400.56
062561-000 5670711200 $ 326.05
072563-000 5712620900 $ 283.40
090777-000 5711121900 $ 281.38
099520-000 5661100500 $ 683.52
101536-000 5711030500 $ 413.83
102176-000 5712621300 $ 370.76
104978-000 5680741300 $ 475.01
111059-000 5703801600 $ 221.80
121193-000 5703110400 $ 365.98
121617-000 5711231500 $ 518.38
122219-000 5651921100 $ 177.13
123699-000 5660902303 $ 337.52
126573-000 5660601400 $ 213.31
133779-000 5662911600 $ 796.82
134695-000 5661321800 $ 238.93
135012-000 5651101500 $ 352.30
135624-000 5711020100 $ 326.05
135784-000 5712230400 $ 182.82
137219-000 5711210600 $ 689.73
137267-000 5663007200 $ 409.92
024274-000 5680441600 $ 232.49
080708-000 5712502200 $ 1,646.55
125134-000 5652611300 $ 876.76
Page 279 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 3
SEWER ACCOUNT APN AMOUNT
135149-000 5670730700 $ 252.23
006678-000 6200230200 $ 329.19
007014-000 6203020400 $ 192.01
007045-000 6202100500 $ 193.97
007328-000 6200220500 $ 291.50
007425-000 6203030400 $ 460.10
007766-000 6202513500 $ 206.92
008366-000 6396601600 $ 343.64
009528-000 5753301000 $ 594.17
011208-000 6390430100 $ 220.79
011991-000 6395502300 $ 385.66
012293-000 6394021000 $ 281.38
012405-000 6393830200 $ 189.79
061968-000 6396600200 $ 324.51
062300-000 6202730200 $ 385.63
063515-000 5751510500 $ 329.14
069848-000 6204501100 $ 281.38
069872-000 6203801300 $ 355.83
071361-000 6201940100 $ 236.74
073481-000 6202620700 $ 311.19
075658-000 5754810200 $ 296.28
077507-000 6202512600 $ 360.09
077771-000 5753220800 $ 296.28
080770-000 6200312300 $ 475.01
081831-000 6205700700 $ 326.05
082923-000 6391031400 $ 251.59
085257-000 5755000500 $ 326.05
100998-000 6393820500 $ 400.56
101666-000 5752711400 $ 206.92
101952-000 6201810600 $ 311.19
110112-000 6201220900 $ 415.44
110919-000 6203304800 $ 162.24
116127-000 6203400300 $ 251.59
116129-000 6393920400 $ 266.50
116627-000 6202740300 $ 192.01
120172-000 5752711300 $ 442.05
121764-000 5743002000 $ 326.05
122601-000 6200222100 $ 284.04
122689-000 6396200900 $ 267.33
123159-000 6394111500 $ 251.59
126051-000 5752310100 $ 340.98
Page 280 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 4
SEWER ACCOUNT APN AMOUNT
126597-000 6202940700 $ 572.60
126603-000 6395700700 $ 281.38
127098-000 6393530100 $ 425.56
127193-000 6392510300 $ 296.28
127725-000 6203020200 $ 182.82
129294-000 6394702200 $ 166.42
129646-000 6203900900 $ 314.97
129974-000 6204502400 $ 419.33
131099-000 5755111700 $ 306.38
131167-000 5754110300 $ 236.74
131181-000 5753510300 $ 334.71
131386-000 6391040400 $ 182.82
131853-000 5751810400 $ 221.80
132544-000 6201820900 $ 242.36
134058-000 6204601600 $ 125.23
134169-000 5751910200 $ 489.89
134170-000 5751920200 $ 549.47
134391-000 6393140800 $ 653.72
134528-000 6392510200 $ 266.50
136146-000 5752720800 $ 172.86
137172-000 5752410600 $ 428.30
137255-000 6395800400 $ 326.05
137289-000 6396100400 $ 500.84
013611-000 5721500300 $ 153.54
013853-000 5721630800 $ 221.80
013997-000 5722010100 $ 177.13
014341-000 5722602300 $ 355.83
017785-000 5691710800 $ 326.05
061225-000 5691706300 $ 891.80
078203-000 5691330700 $ 142.24
081048-000 5692512400 $ 296.28
085762-000 5721222800 $ 280.80
093231-000 5734900800 $ 326.05
093515-000 5742711500 $ 579.26
097189-000 5741502000 $ 500.52
103446-000 5732702500 $ 326.05
104304-000 5684201900 $ 713.31
104320-000 5732800300 $ 177.13
110268-000 5741711300 $ 147.34
116861-000 5742400200 $ 236.74
125245-000 5732900300 $ 669.32
Page 281 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 5
SEWER ACCOUNT APN AMOUNT
125400-000 5741204300 $ 277.71
125580-000 5720630200 $ 451.39
125786-000 5741711900 $ 355.83
126251-000 5722521100 $ 1,737.34
126358-000 5744101400 $ 374.63
127794-000 5732701000 $ 137.99
128673-000 5693200100 $ 131.38
129959-000 5722401000 $ 173.92
130010-000 5742120600 $ 170.24
130105-000 5693121000 $ 129.42
131012-000 5740910500 $ 236.74
131410-000 5733030500 $ 276.59
131620-000 5702800500 $ 370.76
131649-000 5733104200 $ 440.14
131866-000 5733511400 $ 311.19
132955-000 5735112100 $ 296.28
133874-000 5742710800 $ 206.92
135160-000 5692421800 $ 311.19
136389-000 5722321600 $ 296.28
024281-000 5733104000 $ 383.80
090755-000 5683312000 $ 787.08
116827-000 5730210500 $ 7,250.40
125160-000 5730210300 $ 496.23
137447-000 5734200500 $ 470.99
020153-000 6190812500 $ 311.19
020430-000 6193702300 $ 202.66
021048-000 6233426800 $ 311.19
025939-000 5735340400 $ 306.38
068883-000 5752220900 $ 306.38
082443-000 6233000700 $ 260.73
085183-000 6193505000 $ 281.38
110711-000 5754321600 $ 370.76
120447-000 5752921400 $ 698.43
125624-000 6193423300 $ 335.19
126166-000 5752931400 $ 221.80
127946-000 6233151000 $ 939.69
135766-000 6233110700 $ 291.50
137161-000 6233151500 $ 445.22
TOTAL 153 $ 62,486.74
Page 282 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 6
FINANCE DEPARTMENT
COLLECTIONS UNIT
Delinquent Solid Waste Accounts
SOLID WASTE ACCOUNT APN AMOUNT
509-0006407 5952024900 $ 331.71
509-0006443 6396902800 $ 85.04
509-0007084 5952414000 $ 136.84
509-0010935 6422521000 $ 249.94
509-0011706 5703110400 $ 327.04
509-0013858 5742401400 $ 185.08
509-0014374 5751820800 $ 589.61
509-0014382 5751920600 $ 167.26
509-0014897 6397022600 $ 321.67
509-0014998 6421302700 $ 1,094.19
509-0015622 6232804100 $ 554.82
509-0015743 5710721900 $ 237.36
509-0015841 5712921600 $ 374.08
509-0016581 6203202800 $ 485.03
509-0016706 6202100500 $ 78.19
509-0018148 6393830200 $ 126.84
509-0018402 6201940100 $ 499.84
509-0019111 6204501600 $ 505.25
509-0019271 6401961400 $ 315.50
509-0019458 5732800300 $ 163.92
509-0019844 6242901700 $ 151.02
509-0020548 6205000100 $ 213.50
509-0020622 6401711800 $ 95.04
509-0020935 6422001300 $ 163.92
509-0021030 6241502200 $ 518.58
509-0021090 6422001400 $ 332.39
509-0021091 6396902600 $ 595.03
509-0021877 6193202700 $ 95.50
509-0022307 6183800900 $ 320.86
Page 283 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 7
SOLID WASTE ACCOUNT APN AMOUNT
509-0023029 6231911400 $ 263.20
509-0023301 6291520200 $ 804.25
509-0024021 6243851300 $ 1,973.08
509-0024258 6421501200 $ 95.44
509-0025209 5721310800 $ 230.54
509-0026271 6422611600 $ 302.24
509-0026622 6241102700 $ 274.84
509-0027012 6205106800 $ 421.25
509-0027132 5942100400 $ 85.47
509-0028068 6401204400 $ 116.84
509-0029074 6205801300 $ 342.48
509-0029378 6241601700 $ 84.46
509-0029835 5733422900 $ 703.10
509-0030244 5711520700 $ 345.94
509-0030329 6410921000 $ 293.70
509-0031280 5943410800 $ 241.26
509-0033192 6193204800 $ 589.00
509-0034201 6203801300 $ 645.58
509-0034266 5650900100 $ 136.84
509-0034279 5720630800 $ 101.50
509-0034331 6242700700 $ 329.08
509-0034454 6390109600 $ 175.08
509-0035211 5741711300 $ 302.23
509-0036791 6200230200 $ 810.34
509-0037014 6242103400 $ 666.91
509-0037197 6222120700 $ 117.59
509-0037715 5651510300 $ 504.72
509-0048385 5922302100 $ 263.16
509-0051177 5703801600 $ 277.66
509-0054053 6423204200 $ 272.78
509-0054571 6393820500 $ 208.63
509-0057376 6201620300 $ 220.78
509-0057934 6202730200 $ 1,721.15
509-0058949 6220715700 $ 403.11
509-0059034 6233000700 $ 402.67
509-0059572 6423140600 $ 310.84
509-0062844 5651921100 $ 409.16
509-0065041 5941215600 $ 1,771.38
509-0066873 6191411300 $ 76.49
509-0067441 6220723500 $ 433.82
509-0067775 5954505800 $ 371.11
Page 284 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 8
SOLID WASTE ACCOUNT APN AMOUNT
509-0068748 5684201900 $ 241.50
509-0070906 6400312000 $ 652.32
509-0073151 6183330900 $ 530.58
509-0073337 5711531200 $ 129.18
509-0073650 5722010100 $ 210.54
509-0073880 6193505900 $ 84.46
509-0075807 5712631000 $ 1,506.08
509-0077380 5953215302 $ 240.78
509-0077655 6203030400 $ 402.20
509-0078269 6233426800 $ 304.72
509-0079112 6395502300 $ 343.76
509-0079579 5943922500 $ 179.15
509-0080270 6403403800 $ 115.14
509-0082840 5953503300 $ 319.59
509-0084929 6183010200 $ 85.76
509-0085455 6394021000 $ 305.78
509-0086626 6206520600 $ 297.60
509-0087238 6191310800 $ 168.08
509-0087321 5953611500 $ 84.46
509-0088129 5734100700 $ 425.00
509-0088930 6203020400 $ 370.77
509-0091190 6243003100 $ 320.48
509-0091336 6190812500 $ 275.00
509-0092436 5752311800 $ 2,460.48
509-0093094 6310110900 $ 565.88
509-0093323 6183600100 $ 568.88
509-0094390 5711821400 $ 368.66
509-0094844 5933822800 $ 507.10
509-0094869 6192610500 $ 105.04
509-0094969 6394110600 $ 719.74
509-0095119 6241001900 $ 202.30
509-0095193 5752930800 $ 84.46
509-0095404 6240414400 $ 218.70
509-0095717 6192501100 $ 320.98
509-0096129 6191223500 $ 157.10
509-0096323 5944328700 $ 126.84
509-0096330 6181310900 $ 409.08
509-0096522 5933800400 $ 576.30
509-0097097 5932711400 $ 373.68
509-0097881 5735003100 $ 105.04
509-0098369 5743621200 $ 366.71
Page 285 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 9
SOLID WASTE ACCOUNT APN AMOUNT
509-0099097 5953302100 $ 296.36
509-0099385 5955904100 $ 329.20
509-0099491 5944305000 $ 286.54
509-0101272 6396601600 $ 295.58
509-0102287 5661810600 $ 1,208.47
509-0102409 6192020900 $ 2,147.00
509-0102700 5680142500 $ 804.24
509-0102773 5932920700 $ 345.09
509-0104007 5720620300 $ 218.16
509-0104581 5751001700 $ 293.92
509-0104947 5693805900 $ 115.04
509-0106229 5670711200 $ 332.54
509-0107337 6426102900 $ 315.44
509-0107406 6426013100 $ 383.28
509-0107888 5752520500 $ 292.22
509-0108447 5651002100 $ 570.76
509-0108576 6192313300 $ 742.70
509-0108580 6432510900 $ 236.70
509-0108699 5943511800 $ 589.61
509-0109527 6205700700 $ 587.48
509-0109708 5742810300 $ 342.48
509-0110767 5751001500 $ 364.61
509-0112877 5680142200 $ 80.09
509-0112973 6392221200 $ 320.76
509-0113352 6230903200 $ 185.40
509-0113377 6202731500 $ 340.54
509-0114526 6432300100 $ 329.08
509-0114646 5684502700 $ 335.59
509-0116884 5703124300 $ 422.66
509-0117145 6205411600 $ 331.44
509-0118678 6232903100 $ 1,155.88
509-0118713 5955100208 $ 171.72
509-0118929 6192611000 $ 512.16
509-0119043 6433202500 $ 95.04
509-0119661 6396600200 $ 326.79
509-0119839 6205302100 $ 587.71
509-0119982 5954406000 $ 256.10
509-0120193 5941212700 $ 193.14
509-0120714 6426331100 $ 423.25
509-0123901 6434004600 $ 99.04
509-0124621 6192021200 $ 307.09
Page 286 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 10
SOLID WASTE ACCOUNT APN AMOUNT
509-0127721 6411706100 $ 97.32
509-0129225 6420802708 $ 509.36
509-0130145 6396840100 $ 299.27
509-0130189 6425904800 $ 306.16
509-0130267 5933610900 $ 283.49
509-0131419 6426904700 $ 300.04
509-0131962 6433123300 $ 1,314.66
509-0133508 6203303000 $ 364.80
509-0133872 5752220900 $ 75.55
509-0133913 5957401700 $ 490.60
509-0134466 5730820600 $ 339.94
509-0137571 5711221100 $ 163.92
509-0140270 6412301500 $ 579.86
509-0141592 6180613200 $ 163.92
509-0142227 6423707900 $ 147.64
509-0142834 6393811300 $ 630.62
509-0143623 6411601200 $ 286.20
509-0143676 5957510600 $ 199.03
509-0143742 5957641300 $ 111.45
509-0143916 6435144200 $ 185.08
509-0144417 5957404100 $ 298.93
509-0144457 5957261700 $ 343.68
509-0145377 5690804000 $ 241.35
509-0146257 6435147400 $ 282.20
509-0146379 6435164300 $ 653.65
509-0147728 6435902900 $ 643.02
509-0147847 5691705700 $ 85.37
509-0150115 5955100503 $ 457.74
509-0150659 6202620700 $ 121.58
509-0150752 6412204400 $ 163.92
509-0151972 6412821000 $ 338.78
509-0152409 5953215717 $ 392.75
509-0152964 5957202700 $ 291.70
509-0153801 5751831500 $ 163.56
509-0153990 6205700800 $ 661.99
509-0154300 6411802000 $ 4,785.76
509-0156991 6403401100 $ 331.66
509-0158421 6431305500 $ 330.72
509-0158586 6425301700 $ 105.04
509-0158814 6436621500 $ 328.20
509-0160727 6403803100 $ 373.81
Page 287 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 11
SOLID WASTE ACCOUNT APN AMOUNT
509-0161613 5958614500 $ 183.92
509-0161620 5958604600 $ 758.79
509-0163701 5753220800 $ 331.66
509-0163727 6233311500 $ 284.93
509-0163961 5952610700 $ 495.86
509-0164559 6411410600 $ 259.97
509-0165066 6390710300 $ 542.22
509-0165127 6434865363 $ 96.18
509-0165814 6202621200 $ 1,113.83
509-0167145 6394700900 $ 343.32
509-0167584 6411111200 $ 122.26
509-0167681 6394120400 $ 163.92
509-0167773 5711430200 $ 539.18
509-0168880 6401613700 $ 241.84
509-0171449 5954703300 $ 163.92
509-0172791 6426322400 $ 127.98
509-0174242 6425402600 $ 1,786.66
509-0174330 5742120600 $ 113.10
509-0174601 6193423300 $ 337.50
509-0175664 6437401900 $ 483.88
509-0175698 6437411900 $ 329.30
509-0181340 6434841600 $ 331.66
509-0182374 6431002205 $ 297.98
509-0182702 6204204000 $ 1,435.75
509-0182807 5933821900 $ 301.38
509-0182817 6193505000 $ 222.05
509-0183696 5711420500 $ 305.81
509-0184235 5721222800 $ 302.93
509-0184474 5931601800 $ 224.06
509-0184508 6434004800 $ 124.72
509-0184701 6424800800 $ 577.78
509-0185443 6436103005 $ 371.17
509-0185463 6233322100 $ 123.02
509-0185641 6396501200 $ 283.49
509-0187290 5933718200 $ 372.89
509-0187497 6403301908 $ 92.26
509-0189278 6410915100 $ 296.12
509-0189417 6434825800 $ 84.46
509-0189903 6193421600 $ 84.46
509-0191880 5932001000 $ 189.47
509-0192171 6435026900 $ 332.19
Page 288 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 12
SOLID WASTE ACCOUNT APN AMOUNT
509-0192329 6390411400 $ 368.94
509-0194474 6241700900 $ 80.16
509-0194616 6205306900 $ 689.54
509-0196177 6191610300 $ 359.99
509-0198287 5661810400 $ 104.61
509-0198378 5921912006 $ 183.92
509-0199146 6202512900 $ 182.86
509-0199610 5742711500 $ 577.02
509-0200030 5956603300 $ 263.16
509-0200787 6242901900 $ 582.06
509-0202198 6202621700 $ 366.05
509-0202845 6206105500 $ 373.81
509-0203688 5958440400 $ 387.63
509-0204026 5954505200 $ 401.63
509-0204975 5741502000 $ 414.38
509-0205409 5754811400 $ 96.07
509-0205678 6183720900 $ 95.04
509-0206337 5633100400 $ 1,264.36
509-0206497 5950314309 $ 349.12
509-0206602 6242503200 $ 374.20
509-0208222 6233131000 $ 273.21
509-0210026 5950314614 $ 495.46
509-0210470 5954300408 $ 285.80
509-0211132 6434865334 $ 1,145.24
509-0211268 6436723300 $ 316.88
509-0211614 5671010600 $ 402.40
509-0212135 6426503400 $ 186.63
509-0212568 5733030100 $ 373.43
509-0213660 6202811300 $ 416.37
509-0213832 6201810600 $ 308.68
509-0214345 6402720100 $ 302.26
509-0214585 6183600600 $ 124.01
509-0215672 6436621200 $ 115.04
509-0215775 6403505800 $ 342.95
509-0216162 6396000900 $ 658.71
509-0217312 5732702500 $ 408.24
509-0218718 6394320600 $ 570.12
509-0219805 6436510804 $ 133.58
509-0220019 6430515331 $ 410.32
509-0220564 6435913500 $ 101.58
509-0221064 6231712000 $ 445.12
Page 289 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 13
SOLID WASTE ACCOUNT APN AMOUNT
509-0221275 6436510607 $ 318.82
509-0221281 6433401100 $ 483.32
509-0221522 5954200807 $ 256.22
509-0221582 6403100700 $ 332.30
509-0221979 5712321100 $ 199.95
509-0223075 5931430500 $ 589.95
509-0224312 5650321300 $ 248.43
509-0225904 5753011600 $ 545.38
509-0226758 5754110400 $ 104.04
509-0227373 5693200600 $ 95.04
509-0227554 6191720500 $ 370.06
509-0228959 5954505600 $ 365.09
509-0229687 6401010800 $ 104.46
509-0230101 6426811600 $ 212.92
509-0230244 6201220900 $ 341.32
509-0230323 6435305500 $ 1,205.75
509-0230778 6403406700 $ 342.18
509-0230847 6411705300 $ 95.04
509-0230894 5950315270 $ 1,202.01
509-0231100 6222120900 $ 129.43
509-0231209 5754321600 $ 299.82
509-0231291 6412712100 $ 587.02
509-0232509 5954405700 $ 225.00
509-0233092 6393920400 $ 307.09
509-0233189 6430515327 $ 224.40
509-0233560 6411930200 $ 185.08
509-0233736 6200750200 $ 501.94
509-0234936 6436602200 $ 381.21
509-0235935 6423621900 $ 223.78
509-0235966 5680741300 $ 262.69
509-0237100 5755200400 $ 581.51
509-0237368 6436902100 $ 94.46
509-0237680 5952924900 $ 185.08
509-0238420 6401801800 $ 133.92
509-0239012 6401803100 $ 532.09
509-0240804 6202101200 $ 187.51
509-0241091 5721910600 $ 331.58
509-0241127 5752921400 $ 405.45
509-0241767 6206031400 $ 276.08
509-0241961 5954201012 $ 200.75
509-0242319 6404101200 $ 197.90
Page 290 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 14
SOLID WASTE ACCOUNT APN AMOUNT
509-0243323 5690100500 $ 658.71
509-0243368 6435151200 $ 2,766.22
509-0243967 6411134800 $ 110.98
509-0244354 5954200716 $ 328.88
509-0244807 6200222100 $ 350.45
509-0245249 6435611700 $ 492.07
509-0245642 6396200900 $ 332.99
509-0246486 5957331600 $ 420.41
509-0246493 6436720900 $ 272.05
509-0247410 5754700100 $ 370.93
509-0248247 5958111100 $ 185.08
509-0248834 6433400500 $ 176.40
509-0248978 5957811000 $ 563.22
509-0248992 5953215208 $ 308.50
509-0249218 5735120800 $ 301.48
509-0249332 6432510500 $ 331.66
509-0249596 6435158200 $ 247.70
509-0250022 6200311700 $ 451.08
509-0251399 6205800300 $ 296.86
509-0251490 6432811200 $ 329.08
509-0251495 6205420500 $ 271.75
509-0251508 6433203900 $ 85.08
509-0251730 6434102500 $ 666.48
509-0251865 5933300500 $ 701.76
509-0252188 6442401822 $ 256.20
509-0252360 6401010700 $ 170.12
509-0252516 5741711900 $ 1,518.80
509-0252957 5958441100 $ 661.26
509-0253090 6430515320 $ 86.56
509-0253321 6411114000 $ 106.18
509-0253530 5720800900 $ 340.52
509-0253852 5752310100 $ 301.50
509-0253910 6426214100 $ 856.94
509-0254394 5722521100 $ 97.32
509-0254866 5744101400 $ 135.08
509-0255462 6232215700 $ 148.20
509-0255587 6432201600 $ 520.90
509-0255607 6434200400 $ 94.46
509-0255711 6395700700 $ 364.96
509-0255910 5663005101 $ 101.94
509-0256169 6442714600 $ 233.72
Page 291 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 15
SOLID WASTE ACCOUNT APN AMOUNT
509-0256264 6220723500 $ 437.26
509-0256373 5691901800 $ 2,395.77
509-0256961 6200820300 $ 1,069.26
509-0258374 6430514932 $ 94.46
509-0258764 6202940700 $ 291.78
509-0258778 6201610400 $ 312.66
509-0258884 6291510200 $ 382.22
509-0259048 6432711800 $ 502.14
509-0259162 6435805300 $ 305.72
509-0259239 5693631900 $ 252.52
509-0259641 5755300200 $ 1,126.73
509-0260266 6392510300 $ 332.62
509-0260359 5943843600 $ 570.44
509-0260583 6411601000 $ 340.33
509-0260674 5742610200 $ 333.76
509-0261136 6432331900 $ 84.46
509-0261287 5711821800 $ 181.69
509-0261331 5750500300 $ 177.21
509-0261355 6394111600 $ 2,766.22
509-0261357 6436510910 $ 495.96
509-0261850 6437701518 $ 115.04
509-0262080 6403921000 $ 185.08
509-0262704 6435012700 $ 122.89
509-0262745 6434860500 $ 285.02
509-0262800 6240212700 $ 147.77
509-0262867 5954102415 $ 166.98
509-0263272 6183501100 $ 257.80
509-0263660 6201001500 $ 322.64
509-0263674 6402340800 $ 329.56
509-0263707 6443102051 $ 364.33
509-0264374 6182401500 $ 131.77
509-0264419 6396412800 $ 87.59
509-0264569 6184101500 $ 387.61
509-0264584 5693200100 $ 422.41
509-0264878 7762310205 $ 557.96
509-0265387 5741710700 $ 365.60
509-0265427 5953212928 $ 314.76
509-0265455 6233141300 $ 204.18
509-0265879 6394110500 $ 661.28
509-0265939 6180902000 $ 341.38
509-0266151 5954405200 $ 404.13
Page 292 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 16
SOLID WASTE ACCOUNT APN AMOUNT
509-0266206 5753510300 $ 342.48
509-0266481 6395933100 $ 319.82
509-0266531 6443146000 $ 1,996.56
509-0266901 5955100606 $ 240.64
509-0267363 6401520500 $ 332.90
509-0267523 6442703700 $ 149.00
509-0267669 5662911000 $ 642.80
509-0267847 5954200911 $ 289.21
509-0268153 5711520800 $ 548.58
509-0268208 6192010700 $ 564.68
509-0268292 5693111400 $ 373.35
509-0268409 6434902000 $ 196.08
509-0268423 6411123400 $ 3,301.69
509-0268516 6435204209 $ 403.04
509-0268584 6434865369 $ 95.04
509-0268902 5651702200 $ 1,211.44
509-0269550 6395401200 $ 185.08
509-0269883 6192313500 $ 721.92
509-0269917 6291302600 $ 666.90
509-0269930 6432701300 $ 351.95
509-0270446 6203304700 $ 1,787.00
509-0270479 6193426200 $ 87.97
509-0270520 5957630800 $ 298.46
509-0270621 5730100700 $ 587.77
509-0271333 6404102800 $ 304.50
509-0271418 6435204204 $ 405.58
509-0271732 6403117500 $ 517.46
509-0271921 6435700200 $ 195.23
509-0272017 6220716900 $ 1,586.76
509-0272062 5954102314 $ 348.58
509-0272440 5921613300 $ 340.80
509-0272582 6424800400 $ 414.96
509-0272862 5933901900 $ 344.26
509-0272906 6443830200 $ 573.24
509-0273253 5731201900 $ 262.84
509-0273395 6441110500 $ 241.40
509-0273550 6432620700 $ 322.04
509-0273572 6203304800 $ 131.02
509-0273720 6182401200 $ 305.02
509-0273723 5685120400 $ 274.64
509-0274726 6443152000 $ 185.08
Page 293 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 17
SOLID WASTE ACCOUNT APN AMOUNT
509-0274810 5950315357 $ 1,063.44
509-0275231 6403230500 $ 105.04
509-0275400 6203103200 $ 453.72
509-0275860 5740910500 $ 305.93
509-0276037 6440612803 $ 84.46
509-0276193 5755202700 $ 667.35
509-0276197 6443826300 $ 271.00
509-0276312 6442710100 $ 312.74
509-0276315 5951401200 $ 208.94
509-0276330 6180720200 $ 583.84
509-0276791 5732000400 $ 95.45
509-0276900 6441114500 $ 527.94
509-0277002 6412512700 $ 431.49
509-0277414 5958802800 $ 361.70
509-0277433 6181521000 $ 1,202.14
509-0277539 6422000900 $ 834.08
509-0277593 6182303400 $ 110.11
509-0278116 5702800500 $ 235.46
509-0278255 6424912500 $ 307.07
509-0278590 5952220129 $ 364.27
509-0278665 6432323200 $ 573.15
509-0278694 6425901700 $ 103.73
509-0279274 6403300106 $ 81.60
509-0279326 6433800901 $ 398.04
509-0279345 5751810400 $ 195.32
509-0279364 5931701300 $ 319.29
509-0279374 6393512000 $ 136.08
509-0279494 6181620600 $ 500.26
509-0279637 6431501300 $ 1,734.48
509-0279662 6430650653 $ 322.90
509-0279686 6435616700 $ 341.68
509-0280340 5943821200 $ 492.66
509-0280682 5952140600 $ 244.18
509-0281079 5750331400 $ 174.00
509-0281148 6433121300 $ 289.16
509-0281370 6243853500 $ 523.60
509-0281493 6443311100 $ 933.44
509-0281577 6435205614 $ 139.34
509-0281618 6430640127 $ 587.03
509-0281761 6426912700 $ 517.72
509-0282076 6436102715 $ 180.48
Page 294 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 18
SOLID WASTE ACCOUNT APN AMOUNT
509-0282101 6443138068 $ 147.40
509-0282249 6403817500 $ 621.27
509-0282330 6436103107 $ 517.66
509-0282768 6430210909 $ 326.82
509-0282846 5954102603 $ 235.00
509-0282881 6436102818 $ 140.21
509-0283117 5957500500 $ 80.54
509-0283280 6443503904 $ 561.22
509-0283591 6436103116 $ 185.08
509-0283634 5957462100 $ 303.77
509-0283798 6432112300 $ 476.90
509-0284275 5742813500 $ 113.10
509-0284307 6431404600 $ 318.60
509-0284580 5957910500 $ 1,199.82
509-0284749 6183721300 $ 466.06
509-0285164 5921712600 $ 567.54
509-0285506 6436122818 $ 1,041.49
509-0285545 6443711500 $ 98.59
509-0285692 5951801900 $ 138.90
509-0285710 6396200800 $ 590.71
509-0286067 6183421600 $ 90.27
509-0286233 6442012400 $ 480.72
509-0286625 6431902300 $ 430.08
509-0286687 5742021200 $ 580.90
509-0287360 6393530200 $ 100.99
509-0287366 5933600700 $ 84.46
509-0287500 6443861000 $ 327.36
509-0287622 6412710600 $ 1,728.72
509-0287682 5943921600 $ 1,014.86
509-0287733 5953601200 $ 311.99
509-0287974 6413003200 $ 1,078.40
509-0288260 5722602400 $ 823.67
509-0288303 6435513600 $ 122.28
509-0288456 5751710600 $ 498.62
509-0288931 6243202000 $ 153.89
509-0289166 6443503823 $ 408.64
509-0289431 6432113500 $ 494.84
509-0289470 6394320700 $ 830.40
509-0289505 5730630700 $ 304.46
509-0289647 6202940200 $ 222.51
509-0289653 6203702500 $ 381.76
Page 295 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 19
SOLID WASTE ACCOUNT APN AMOUNT
509-0289740 6434816400 $ 132.86
509-0289776 5712610800 $ 86.48
509-0289806 6423522600 $ 97.59
509-0289819 6443110614 $ 1,730.03
509-0289928 5722010300 $ 161.06
509-0290020 6191321700 $ 447.98
509-0290075 6420803504 $ 138.16
509-0290118 6443212300 $ 147.08
509-0290217 6436102718 $ 287.61
509-0290370 5952932200 $ 168.60
509-0290481 6433801827 $ 935.94
509-0290509 5754500600 $ 169.40
509-0291028 6435307300 $ 96.82
509-0291123 5650510300 $ 337.58
509-0291165 5633100500 $ 122.52
509-0291208 6425700500 $ 426.15
509-0291418 6435710100 $ 130.44
509-0291577 6393140800 $ 318.10
509-0292091 6412113200 $ 266.68
509-0292138 6205306500 $ 125.34
509-0292161 6402800876 $ 240.78
509-0292269 6403911900 $ 85.04
509-0292383 5954102316 $ 530.02
509-0292531 6425902400 $ 732.60
509-0292536 6190710400 $ 104.06
509-0292646 6425902400 $ 84.98
509-0292651 6394130600 $ 199.44
509-0292766 5712820400 $ 878.08
509-0292891 5952530800 $ 306.69
509-0293243 6436604600 $ 200.35
509-0293619 5957251900 $ 543.77
509-0293655 6423140500 $ 1,078.40
509-0293902 5650521600 $ 185.08
509-0293998 6443138042 $ 139.24
509-0294392 6435614800 $ 581.54
509-0294517 6432331600 $ 548.58
509-0294765 5958304300 $ 141.40
509-0294828 6430515033 $ 1,347.69
509-0294862 5681630400 $ 97.67
509-0295201 6423610200 $ 156.43
509-0295488 6205800100 $ 279.70
Page 296 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 20
SOLID WASTE ACCOUNT APN AMOUNT
509-0295593 6425313200 $ 331.16
509-0295762 6402722100 $ 281.31
509-0295846 5670730700 $ 84.46
509-0295873 5721620400 $ 203.63
509-0295901 5754501100 $ 217.60
509-0295975 6442922000 $ 378.53
509-0296142 6442704600 $ 272.05
509-0296476 5958461800 $ 323.58
509-0296673 6242100300 $ 298.78
509-0296802 5682632400 $ 1,067.56
509-0296828 5933022100 $ 456.52
509-0296904 5951641700 $ 314.70
509-0296936 6310121700 $ 444.90
509-0297043 6430651990 $ 546.36
509-0297367 6430652116 $ 375.43
509-0297752 6403107000 $ 232.76
509-0297787 5958214300 $ 185.08
509-0297813 6440612904 $ 185.08
509-0297863 5953802200 $ 1,147.80
509-0297865 6437510900 $ 328.06
509-0298061 6435423300 $ 613.44
509-0298150 6404110500 $ 328.00
509-0298271 5670321700 $ 1,020.11
509-0298273 6432601200 $ 91.97
509-0298353 6430652153 $ 757.42
509-0298390 6233110700 $ 362.59
509-0298436 6412115400 $ 286.87
509-0298447 5950314319 $ 656.65
509-0298570 5943910600 $ 226.63
509-0298637 5711020100 $ 221.20
509-0298754 5957602600 $ 175.08
509-0298765 5852200500 $ 136.87
509-0298977 6435707100 $ 465.76
509-0299086 6433123800 $ 128.00
509-0299282 6240514700 $ 183.54
509-0299284 6392120900 $ 493.04
509-0299332 6443313209 $ 535.70
509-0299361 6436500422 $ 163.92
509-0299378 5957351100 $ 329.64
509-0299452 6392121200 $ 403.88
509-0299740 5752720800 $ 230.63
Page 297 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 21
SOLID WASTE ACCOUNT APN AMOUNT
509-0299983 5712621700 $ 1,055.80
509-0300082 6443503916 $ 322.65
509-0300249 6411930400 $ 213.96
509-0300345 6433700122 $ 408.58
509-0300453 5958434100 $ 304.60
509-0300671 6444044500 $ 156.30
509-0300808 5685111200 $ 1,147.79
509-0301022 6232717238 $ 79.84
509-0301255 6443441200 $ 394.50
509-0301356 6443502600 $ 874.07
509-0301409 6435402200 $ 395.74
509-0301424 5670902700 $ 276.17
509-0301502 6440723022 $ 521.26
509-0301612 5751830400 $ 673.43
509-0301768 6436500426 $ 241.66
509-0301900 5711121300 $ 542.19
509-0301982 6402723200 $ 518.57
509-0302153 6442401725 $ 285.40
509-0302244 6436102734 $ 255.96
509-0302523 5852200200 $ 316.84
509-0302637 6404012400 $ 173.23
509-0302786 5722321600 $ 460.74
509-0302923 6443210400 $ 85.66
509-0302969 5720520900 $ 376.07
509-0303382 5952932200 $ 77.12
509-0303422 5693730800 $ 262.50
509-0303425 6436103325 $ 574.93
509-0303516 6443102245 $ 738.45
509-0303807 5730730800 $ 213.38
509-0303832 5732220600 $ 589.65
509-0303888 6430651824 $ 83.01
509-0304061 6231614600 $ 281.04
509-0304150 6411501600 $ 128.24
509-0304155 6440720118 $ 499.84
509-0304324 5652905109 $ 604.52
509-0304372 5955100408 $ 175.30
509-0304506 5913100800 $ 97.88
509-0304704 6425703600 $ 130.51
509-0304815 5734901600 $ 237.85
509-0305002 6435143900 $ 609.16
509-0305059 5722521400 $ 683.24
Page 298 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 22
SOLID WASTE ACCOUNT APN AMOUNT
509-0305312 6443884700 $ 321.04
509-0305336 6437002300 $ 107.96
509-0305351 5944326600 $ 584.30
509-0305360 6432112300 $ 283.72
509-0305436 6425500503 $ 96.68
509-0305476 5956004600 $ 132.72
509-0305521 6220727300 $ 244.84
509-0305625 6423525100 $ 409.98
509-0305746 6443311100 $ 230.05
509-0305827 6201610500 $ 217.22
509-0305875 5953215406 $ 417.41
509-0306078 5952220356 $ 372.29
509-0306100 6232800900 $ 221.70
509-0306116 6434503200 $ 514.97
509-0306249 6430653043 $ 508.15
509-0306251 6436122301 $ 272.05
509-0306293 6433410400 $ 434.47
509-0306303 5953804500 $ 142.42
509-0306369 6443811100 $ 414.47
509-0306547 6396902600 $ 776.21
509-0306582 5750102500 $ 310.46
509-0306868 6241001900 $ 273.75
509-0306898 6430212219 $ 368.19
509-0306984 6432112300 $ 440.08
509-0307003 6411912100 $ 105.04
509-0307074 6430212247 $ 262.79
509-0307213 5730622500 $ 922.06
509-0307572 5751720600 $ 669.34
509-0307588 5954508600 $ 78.83
509-0307664 6430515805 $ 118.65
509-0307799 6435204818 $ 480.29
509-0307907 5943910600 $ 343.89
509-0307953 5944327900 $ 359.85
509-0308001 5702901400 $ 131.59
509-0308156 5954301706 $ 244.14
509-0308264 6394220600 $ 206.09
509-0308380 5690302900 $ 302.08
509-0308409 6430651846 $ 266.28
509-0308431 6434606400 $ 341.00
509-0308610 5693110300 $ 113.15
509-0308923 5733822300 $ 285.12
Page 299 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Finance Department - Memo
276 Fourth Avenue, Chula Vista, CA 91910 | www.chulavistaca.gov | (619) 409-3597 | fax (619) 585-5612
Page | 23
SOLID WASTE ACCOUNT APN AMOUNT
509-0309060 6443700900 $ 239.76
509-0309079 6441211000 $ 249.79
509-0309476 5752410600 $ 676.05
509-0309566 6205200700 $ 373.02
509-0309774 5953505300 $ 344.43
509-0309786 6435050500 $ 324.91
509-0309941 5652905005 $ 183.52
509-0310032 6182704500 $ 116.84
509-0310051 5952012100 $ 569.08
509-0310090 6443603700 $ 124.66
509-0310183 6443102029 $ 527.97
509-0310305 6422721800 $ 127.28
509-0310343 5957421600 $ 129.58
TOTAL: 698 $ 281,090.53
Page 300 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Grant Application: Community Input for the FY2023 Preservation and Reinvestment Initiative for
Community Enhancement (PRICE) Application
Report Number: 24-0170
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
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. 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. 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. 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.
Recommended Action
Conduct the public hearing to provide the public an opportunity to review the application.
SUMMARY
The United States Department of Housing and Urban Development has issued a first-of-its-kind grant
opportunity through the dedication of $235 million in funding for the preservation and revitalization of
manufactured housing and eligible manufactured housing communities, called the FY2023 Preservation and
Reinvestment Initiative for Community Enhancement (“PRICE”) application. PRICE requires any jurisdiction
applying for the program to publish their application for a fifteen-day public review period and hold a public
hearing to receive community input.
Page 301 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and
NEPA. The activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because
the proposal consists of reviewing a grant application, is not for a site -specific project(s) and will not result
in a direct or indirect 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.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
Manufactured housing is a critical piece of the nation’s affordable housing stock that provides a home to over
22 million Americans. Manufactured housing and manufactured housing communities (MHCs) face
significant challenges to affordability, resilience, infrastructure, and maintenance that are exacerbated by
state titling and local zoning laws, financial pressures from landowners or investors, and extreme weather,
natural hazards, and disaster events.
Chula Vista contains 31 mobilehome parks comprising of more than 3,400 manufactured homes and trailers.
All but one of these mobilehome parks are located on the City’s older west side, where the parks initially
were built in the 1940s as temporary affordable housing for employees of war-time industry companies like
Rohr Enterprises. Since the 1940s the parks have been maintained as a vital supply of affordable housing for
an aging and diverse Chula Vista population, further recognized in the early 1980’s through City actions such
as the adoption of Chula Vista Municipal Code Chapters 9.50 “Mobilehome Park Space Rent Review”, which
established a form of rent control, and 9.60 “Housing Assistance”, to address park closures. As decades have
passed, western Chula Vista’s poverty levels have increased and older buildings and structures have fallen
into states of disrepair, including many of the mobilehome and trailer parks.
In addition to the needed revitalization of certain mobilehome parks within the City, the City committed to
furthering fair housing and displacement of areas in the City identified by the U.S. Department of Housing
and Urban Development (“HUD”) as racially/ethnically concentrated areas of poverty (“R/ECAP”).
Specifically, census tract (“CT”) 125.01, located in western Chula Vista between F Street on the north, H Street
on the south, Interstate 5 on the west, and Broadway on the east is identified as the sole R/ECAP in the 2021-
2029 Housing Element (Appendix E, section 3), contains six mobilehome/trailer parks and over 600 spaces
representing 39% of the housing units within the CT. Several mobilehome parks within this area have
outdated units that are no longer cost-effectively repairable, posing additional health and safety related risks
to residents.
Since the 1970’s, the City has provided a rehabilitation program for both single-family residences and
mobilehomes to address health and safety improvements, providing over $8 million in low interest loans and
forgivable grants to over 1,200 households. Funding specific to mobilehomes has typically been provided in
Page 302 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
forgivable loans of $10,000 or less to households with an area median income below 50% for improvements
such as roof repairs, window replacement, ADA improvements (e.g. ramps, bathroom handles), and stairs .
While the program has had great success over the years, funding has often been limited to a few hundred
thousand dollars per year. As the aging housing stock within mobilehome parks has grown and units reach
or exceed their useful life, additional opportunities have been contemplated such as a replacement program
and/or more concerted effort related to revitalization.
PRICE Application
In winter 2024, HUD issued the PRICE Notice of Funding Opportunity (“NOFO”) which appropriates $235
million in competitive grant funding for the preservation and revitalization of manufactured housing and
eligible manufactured housing communities. Congress has directed HUD to undertake a competition using
the Community Development Block Grant (“CDBG”) statutory and regulatory framework for this first-of-its-
kind initiative. PRICE supports communities in their efforts to maintain, protect, and stabilize manufactured
housing and MHCs, under two programs, the Main and Replacement Pilot.
Staff have evaluated the PRICE guidelines and have determined that the City is eligible to apply and would
be most competitive for the Main program. HUD applicants must publish their PRICE application (see
Attachment 1) in its entirety for public comment for at least 15 days and conduct at least one public
hearing. The public comment period must end no less than three calendar days before application submittal
to allow the applicant time to consider and incorporate public comments. The current application deadline
is June 10, 2024.
Although the City has existing programs to keep rent affordable and help mobilehome residents make health
and safety repairs, many residents are unable to afford to preserve units on their own and it is clear that
more resources are needed from the City to maintain the supply of affordable housing with manufactured
homes and replace those units that have exceeded their useful life and cannot be rehabilitated. For this
reason, if successful with its application, the City is proposing to use $10,301,323 in PRICE funding for a three
part program:
1. Expanding the City’s existing Mobilehome Community Housing Improvement Program (CHIP) by
$1,562,500;
2. Using $5,738,773 to replace manufactured housing units built before 1976; and
3. Offering $3,000,050 in forgivable loans to owners of mobilehome parks for infrastructure and
facilities improvements.
This program would be administered by the City’s Department of Housing and Homeless Services in
coordination with the City’s Development Services Code Enforcement division. The funding would be
essential to the City’s efforts to preserve these mobilehome parks and allow their residents to continue to
live healthy and affordable lives in a vibrant community.
Chula Vista’s PRICE application was published on Friday, May 17 for a fifteen-day public comment period
ending on May 31. Any comments received at tonight’s public hearing or during the public comment period
will be incorporated into the application.
Page 303 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 4
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 any mobilehome or trailer parks 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 Po litical
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
None. Costs associated with the preparation of this grant application are covered in the Department of
Housing and Homeless Services budget.
ONGOING FISCAL IMPACT
Should the City be successful in this application, staff will return to appropriate funds once awarded.
ATTACHMENTS
1. Draft PRICE Application for Public Review 5/17/24
Staff Contact: Stacey Kurz, Director of Housing & Homeless Services
Mark Barnard, Management Analyst II
Carlos Rodriguez, Management Analyst II
Page 304 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
DEPARTMENT OF HOUSING & HOMELESS SERVICES
DRAFT APPLICATION
U.S. Department of Housing and Urban Development
Preservation and Reinvestment Initiative for
Community Enhancement (PRICE)
Competition FR-6700-N-99
Draft for public comment May 17, 2024
Page 305 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Table of Contents
Exhibit A Executive Summary
Exhibit B Threshold Requirements and Other Submission Requirements
Exhibit C Need
Exhibit D Soundness of Approach
Exhibit E Capacity
Exhibit F Match or Leverage
Exhibit G Long-term Effect
Attachment A Advancing Racial Equity
Attachment B Affirmative Marketing
Attachment C Affirmatively Furthering Fair Housing
Attachment D Eligible Applicants Documentation
Attachment E Evidence of Partnership Letters
Attachment F Match or Leverage Documentation
Attachment G Application Certifications and Standard Forms
Attachment H Summary of Comments Received on Published Application
Page 306 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
City of Chula Vista
FY2023 PRICE Application
1 | P a g e
EXHIBIT A
Executive Summary
The City of Chula Vista is proposing the enclosed application to the FY2023 Preservation and
Reinvestment Initiative for Community Enhancement (PRICE) program available through the
U.S. Department of Housing and Urban Development (HUD). PRICE program funding will
enhance the City’s capacity to maintain affordability of housing through manufactured homes.
Home to more than 270,000 residents and situated just three miles north of the U.S./Mexico
border, Chula Vista is the second largest city in San Diego County. The City contains 31
mobilehome parks comprising more than 3,400 manufactured homes and trailers, with 52%
designated as senior parks, housing some of the City’s most valued and vulnerable residents. All
but one of these mobilehome parks are located on the City’s older west side, where the parks
were initially created in the 1940s as temporary affordable housing for employees of war-time
industry companies like Rohr Enterprises.
Since the 1940s the parks have been maintained as a vital supply of affordable housing for an
aging and diverse Chula Vista population. As the decades passed however, western Chula Vista’s
poverty levels increased and older buildings and structures fell into states of disrepair, including
many of the mobilehome parks. Recent weather events have further shown the imminent danger
posed by deteriorating manufactured home units as nearby neighborhoods suffered from flooding
in January 2024 and heavy storm winds caused flying debris from carports and roof flashing to
pierce manufactured home siding in 2017 within many Chula Vista parks. Today, several of the
parks are located within HUD identified racially/ethnically concentrated areas of poverty and
parks in these areas have outdated or blighted units that pose health and safety risks to residents.
Although the City has existing programs to keep rent affordable and help mobilehome residents
make health and safety repairs, many residents are unable to afford to preserve units on their own
and it is clear that more resources are needed from the City to maintain the supply of affordable
housing with manufactured homes. For this reason, the City is proposing to use $10,301,323 in
PRICE funding for a three part program:
1. Expanding the City’s existing Mobilehome Community Housing Improvement Program
(CHIP) by $1,562,500.
2. Using $5,738,773 to replace manufactured housing units built before 1976; and
3. Offering forgivable loans to owners of mobilehome parks for infrastructure and facilities
improvements with $3,000,050.
This three-part program would be administered by the City’s Department of Housing and
Homeless Services in coordination with the City’s Code Enforcement division would align with
strategic goals in the City’s HUD 2020-2024 Consolidated Plan, 2021-2029 Housing Element,
Age-Friendly Community Action Plan, Healthy Chula Vista Action Plan, Digital Equity and
Inclusion Plan, and regulatory framework for mobilehome living. The funding would be essential
to the City’s efforts to preserve these mobilehome parks and allow their residents to continue to
live healthy and affordable lives in a vibrant community.
Page 307 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2 | P a g e
EXHIBIT B
Threshold Eligibility Requirements
1. Resolution of Civil Rights Matters: The City is not subject to any outstanding civil
rights matters. There are no charges, cause determinations, lawsuits, or letter of findings
as referenced in Sec III.D(1)-(5) of the NOFO.
2. Timely Submission of Applications: The City’s application meets the requirements of
the grace period policy and all other applications deadline dates and times. The 15-day
public review period and public hearing will both be completed at least three days prior
to the application submission.
3. Eligible Applicant: The City is a Unit of Local Government and therefore eligible
according to Section III.A of the NOFO.
4. Number of Applications: The City will be submitting one application.
Other Submission Requirements
1. Standard Application, Assurances, Certifications and Disclosures
a. Standard Form 424 (SF-424) Application for Federal Assistance: Signed form
attached.
b. Assurances (HUD 424-B): Signed form attached.
c. Federal Assistance Representations and Certifications: the City is a registered
entity with sam.gov and has completed FAR and Certifications.
d. Budget Form (424-CBW): Completed form attached.
e. Assurances for Construction Programs (SF-424D): Completed form attached.
f. Assurances for Non-Construction Programs SF-424B): Not applicable.
g. Applicant Disclosure Report Form 2880 (HUD 2880): Completed form
attached.
h. Disclosure of Lobbying Activities (SF-LLL): Not applicable. Form Attached
i. Certification of Lobbying Activities: Completed form attached.
j. Code of Conduct: The City acknowledges and will comply with the requirements
included in the “Conducting Business in Accordance with Ethical Standards”
section of the Administrative, National and Department Policy Requirements and
Terms for HUD Financial Assistance Awards, as well as any program-specific
requirements. These requirements include ethical standards related to conflicts of
interest for procurements in 2 CFR 200.318(c) and 2 CFR 200.317, as well as
HUD-specific conflict of interest standards. The policies are detailed in the City’s
Administrative Manual for City of Chula Vista Grant Programs.
k. Affirmatively Furthering Fair Housing: The City of Chula Vista affirmatively
furthers fair housing by contracting for the provision of fair housing services and
conducting fair housing testing to detect any fair housing violations. The services
include education and outreach to residents and housing providers, assistance with
submitting fair housing complaints to HUD, legal services, and tenant/landlord
mediation.
Page 308 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3 | P a g e
The 2020-2024 Dan Diego Analysis of Impediments to Fair Housing indicated
linguistic isolation and segregation in Racially/Ethnically Concentrated Areas od
Poverty (RECAPS) as impediments to fair housing. The proposed program will
focus its efforts in the 125.01 census tract, which is a HUD identified RECAP. The
City will also focus outreach in both English and Spanish to ameliorate linguistic
isolation.
2. Other Program Specific Requirements
a. Fair Housing and Nondiscrimination: The City’s proposed program complies
with HUD’s non-discrimination requirements and equal opportunity requirements
found at 24 CFR 5.105(a), Title VI regulation, at 24 CFR 1.4(b)(3), and Title VI
regulation at 24 CFR 1.4(b)(2)(i).
b. Limited English Proficiency: The City will take reasonable steps to provide
meaningful language access to persons with LEP regarding any program, activity,
or service funded under this program pursuant to Title VI of the Civil Rights Act
of 1964. The City has an adopted Limited English Proficiency Plan.
c. Physical Accessibility: All public meetings for the City are held in facilities that
comply with Section 504 of the Rehabilitation Act of 1973. The City, in
complying with the Americans With Disabilities Act, requests individuals who
require special accommodation to access, attend and/or participate in a City
meeting, activity or service request such accommodation at least 48 hours in
advance for meetings, and 5 days for scheduled services and activities.
Any newly acquired or constructed housing units under this program will comply
with the Uniform Federal Accessibility Standards and the 2010 ADA Standards
for Accessible Design.
d. Environmental Review: All activities funded through the proposed program will
have a complete environmental review in accordance with 24 CFR Part 58. The
City’s existing CHIP Program uses a tiered environmental review completed on
an individual project basis.
e. Affordability: All housing units assisted or acquired through the proposed
program will be maintained as affordable according to the minimal affordability
standards found at 24 CFR 92.252(a),(e), and (f)(Rental Housing) and 24 CFR
92.254(s)(1)-(4)(homeownership). Renters will pay no more than 30 percent of
the household gross income for all housing costs including site rental, fees, and
utilities.
Page 309 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
4 | P a g e
EXHIBIT C
Need
Background and Target Project Area: Chula Vista is the second largest City in San Diego
County. Home to more than 270,000 residents and situated just three miles north of the
U.S./Mexico border. The City encompasses approximately 52 square miles of land area from the
San Diego Bay eastward to the Otay Mountains. Because of the City’s proximity to Mexico,
Chula Vista is a diverse community, predominately Hispanic at 60%, but also home to many
differing cultures and income levels.
Over time, the City has evolved into varying and distinct neighborhoods and communities.
Initially incorporated in 1911, much of the City’s historical growth and development centered
around the historic City centered on the western side. Therefore, the City’s older and more
established neighborhoods are generally located west of Interstate 805 (I-805). Over the next
several decades, California’s continued rate of population growth and housing production,
coupled with Chula Vista’s regional and waterfront location between the Mexican border and
downtown San Diego, spurred the City’s outward expansion and newer development to the east
(east of I-805).
The City contains 31 mobilehome parks comprising more than 3,400 manufactured homes and
trailers. All but one of these mobilehome parks are located on the City’s older west side, where
the parks were initially created in the 1940s as temporary affordable housing for employees of
war-time industry companies like Rohr Enterprises. Over the years, other immigrant groups
(Korean, Mexican, etc.) have settled in mobilehome parks creating unique and vibrant cultural
communities.
Since the 1940s the parks have also been maintained as a vital supply of affordable housing for
an aging and diverse Chula Vista population, with 52% of parks currently dedicated for seniors.
This has been possible due to actions at both the state and local level to regulate and preserve
mobilehome living. Specifically, California Mobilehome Residency Law (MRL) was codified
under Chapter 2.5 of the California Civil Code in 1978, acting as the “landlord-tenant law”.
These regulations authorized and led to local Chula Vista actions in 1982 to create an arbitration
system to settle rent disputes due to high inflation, through the adoption of Chula Vista
Municipal Code (CVMC) 9.50 “Mobilehome Park Space Rent Review” and CVMC 9.40
“Housing Assistance”, dictating the process should a park close or cease to operate. Over the
years, CVMC 9.50 has been strengthened into a more traditional form of “rent control”. In
addition, California instituted Title 25, Division I, Chapter 2 of the California Code of
Regulations to ensure safe conditions that assure health, safety, security, and quality of life.
Chula Vista has elected to regulate Title 25 locally instead of allowing the state to conduct
inspections due to the high value placed in our community on mobilehome parks.
As the decades passed however, western Chula Vista’s poverty levels increased and older
buildings and structures fell into states of disrepair, including many of the mobilehome parks.
Today, several of the parks are located within HUD identified racially/ethnically concentrated
Page 310 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
5 | P a g e
areas of poverty and parks in these areas have outdated or blighted units that pose health and
safety risks to residents.
Although funding will be used for any qualifying manufactured unit in the City, PRICE program
funding will focus on census tract 125.01, which HUD identifies as a Racially or Ethnically
Concentrated Areas of Poverty (R/ECAP): a majority non-White population (greater than 50
percent) with a poverty rate that exceeds 40 percent or is three times the average tract poverty
rate for the metro/micro area, whichever threshold is lower. Over 600 units of
trailers/manufactured homes exist in this census tract and the City’s 2021-2029 Housing Element
of its General Plan requires that Chula Vista further fair housing and investment in the R/ECAP.
The existing mobilehome parks in the census tract have the following number of mobilehome
units:
UNITS PARK
76 Broadway Trailer Park
126 Cabrillo Mobile Lodge
61 Flamingo Trailer Park
30 Mohawk Trailer Park
134 Rose Arbor Trailer Park
192 Terry’s Mobilehome Park
The image below highlights (red outline) census tract 125.01 within the City and also highlights
(in yellow) Community Development Block Grant (CDBG) areas of the City, where 51% or
more of residents are considered low-moderate income.
(Map of Chula Vista highlighting census tract 125.01 and CDBG areas)
Page 311 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
6 | P a g e
Need for Affordable Accessible Housing Options
According to the 2017-2021 American Community Survey, approximately 88% of renter
households and 48% of owner households in Chula Vista are paying more than 30% of their
household income on housing costs. In addition, HUD’s 2020 Comprehensive Housing
Affordability Strategy (CHAS) data demonstrates that 37% of owner households and 64.1% of
renter households have one or more housing problems defined as the following: substandard
housing (incomplete plumbing or kitchen facilities), overcrowding (more than 1 person per
room), and cost burden (housing costs greater than 30%).
The western portion of the City where nearly all mobilehome parks are located has higher
concentrations of children in female headed households, more low- and moderate-income (LMI)
households, and overcrowded households. Large portions of western Chula Vista are also
considered Low Resource areas by HCD and the State of California.
The western portion of the City is also replete with aging infrastructure and increasingly outdated
buildings and housing options. The same is true for the majority of the City’s mobilehome parks
which are located on the west side.
Overall, the need for affordable accessible housing options in the City is prevalent, especially on
the City’s west side.
The map below highlights the City’s mobilehome parks (red outline), while CDBG areas of the
City, where 51% or more of residents are considered low-moderate income, are highlighted (in
yellow). It is evident that the majority (all but two) of the City’s manufactured home
communities are in lower income areas.
(Map of Chula Vista mobilehome parks highlighting CDBG areas)
Page 312 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
7 | P a g e
Distress Criteria
The target area within census tract 125.01 has a population that meets distress criteria defined at
12 CFR 1805.201(b)(3)(ii)(D). At least 20% of the population is living in poverty with the
median income at or below 80 percent of the metropolitan area median income.
Specifically, and according to the City’s 2021-2029 Housing Element, in 2020 there were
approximately 1,200 households within census tract 125.01 and the median household income
was $31,554. This is approximately two-fifths of the average household income in the City of
Chula Vista, which is $81,272. Approximately 32.5% of these households were below the
poverty line, which is more than triple the citywide poverty rate of 9.6%. In addition to the high
rate of poverty, census tract 125.01 also had a disabled population between 10 and 20% and a
concentration of children in female-headed households between 40 and 60%.
Resilience to Disaster Prone Area
The project area is not inclusive of a census tract identified as a Community Disaster Resilience
Zone. However, the Federal Emergency Management Agency (FEMA) identifies San Diego
County as a “very high risk” area with a rating of 99.7 on the National Risk Index due to its
likelihood to suffer from effects of earthquakes, heat waves, landslides, flooding, and wildfires.
In particular the City has seen recent communities surrounding Chula Vista suffer from flooding
and a few years ago several mobilehomes parks within the City were affected by high winds
including damage caused by flying debris from carports and roof damage.
In addition, the State of California identifies census tract 125.01 as a Disadvantaged Community
under Senate Bill 535 (SB 535) and in the highest percentile for the population’s vulnerability to
environmental pollutants based on the CalEnviroScreen 4.0, the California Communities
Environmental Health Screening Tool.
Barriers to Manufactured Housing Preservation
Barriers to manufactured housing preservation include low financing availability to purchase or
renovate manufactured homes. As indicated above, most of the City’s manufactured housing
communities (MHCs) are located in the western portion of Chula Vista, where the majority of
households are moderate- to low-income. Many households are financially unable to purchase
new units or make necessary updates to existing units. Similarly, many mobilehome parks are
family owned and operated. While these families generate income from rents charged at the
parks, it may be insufficient to maintain proper infrastructure in the parks or provide full
upgrades to deteriorating infrastructure and systems.
Page 313 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8 | P a g e
EXHIBIT D
Soundness of Approach
Vision and Goals: The City is proposing a three-part program that will preserve and revitalize
manufactured houses to ensure their availability and affordability to LMI households.
The first element of the program is increased funding for the City’s existing CHIP. Since the
1970’s, the City has provided the CHIP, a rehabilitation program, for both single-family
residences and mobilehomes to address health and safety improvements, providing over $8
million in low interest loans and forgivable grants to over 1,200 households. CHIP provides
forgivable or low-interest loans and specific to mobilehomes, residents must have owned their
home for at least one year and have no other property holdings. While available throughout the
City, priority is given to residents in mobilehomes on the City’s west side, with current loan
amounts up to $10,000, due to limited funding availability. To qualify for the improvement
loans, residents must be at or below 80% of the area median income (AMI), with most recipients
being below 50% AMI. CHIP loans under the new PRICE funds would be increased up to
$20,000 per loan, have a 3% interest and a maximum loan term of 15 years for residents between
50-80% AMI, with forgivable loans available to residents who earn less than 50% of AMI.
PRICE program funding would add $400,000 to this program each year over 3 years for a total
of $1,200,000.
The second element of the program would use $4,628,250 to replace an estimated 30 pre-1976
manufactured homes throughout the City. Most of the City’s mobilehome parks are located on
the western side of the City where the majority of buildings and mobilehome parks were
constructed before the 1970s. Many mobilehome parks feature several outdated or unpermitted
units that are in progressive states of disrepair. Many low-income residents of these portions in
the City are unable to replace outdated or under permitted units on their own. Therefore, the goal
of this program element would be to assist families with complete replacement of pre-1976 units.
The third element of this program will provide $2,398,125 in loans/grants to owners of
mobilehome parks to make necessary infrastructure updates. Many mobilehome parks in the City
face troubling decay of roads, electricity, and water lines. These issues pose many challenges to
park residents who feel that not enough is being done to maintain park infrastructure. While the
City has no authority to force park managers and owners to invest in their infrastructure, the goal
of this program element would be to incentivize parks to update and maintain their infrastructure
and provide a greater quality of life for their residents. The City will also look for other
opportunities to expand upon broadband access within mobilehome parks to align with goals in
the Digital Equity and Inclusion Plan, adopted by the City Council in May 2020.
While the program will be available to mobile residents and parks throughout the City, efforts
will be focused on the census tract 125.01. Census tract 125.01 is defined by HUD as a R/ECAP.
R/ECAP areas have a majority non-White population (greater than 50 percent) with a poverty
rate that exceeds 40 percent or is three times the average tract poverty rate for the metro area,
whichever threshold is lower. The City believes that focusing on this census tract will ensure that
benefits of the program low-income and have the greatest need. It will also ensure that
Page 314 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
9 | P a g e
preservation of manufactured homes as a source of affordable housing will mean these homes are
available to Chula Vista’s most vulnerable residents.
The map of Census Tract 125.01 can be seen below along with a map that identifies mobilehome
parks within the census tract. There are over 600 mobilehome and trailer homes in the indicated
parks.
(Maps identifying census tract 125.01 and housing types within the census tract)
The City’s program will meet more than one national objective. The different activities featured
in the program will primarily benefit low- and moderate-income persons, addressing LMI
national objectives through Housing Activities (LMH), however the program will also aid in the
prevention or elimination of blight using spot basis. Associated national objective matrix codes
are detailed below under Eligible Activities.
Eligible Activities: The proposed program will utilize activities eligible pursuant to Section
105(a) of the Housing and Community Development Act of 1974. Eligible activities will include:
• Preservation and revitalization activities:
o The program will include repairing, rehabilitating, and reconstructing existing
post-1976 manufactured housing units.
o There will also be an expansion to an existing loan or grant program with
affordability requirements for rehabilitation of existing manufactured housing
units or other units in a MHC.
• Development or improvement of infrastructure to support MHCs and manufactured units.
Page 315 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
10 | P a g e
o The City plans to assist MHC with installation of utility lines, utility hookups, and
other necessary improvements.
o The program may also utilize acquisition, construction, reconstruction,
rehabilitation and installation of public facilities and improvements such as roads,
pads, sidewalks, curbs and gutters, parks, playgrounds, water and sewer lines,
wells, septic tanks, flood and drainage improvements, fire breaks, parking lots,
etc.
• Manufactured Housing Development Activities
o The program will assist with financing for acquisition or installation of
manufactured homes to replace pre-1976 units.
o The City may also use program funds to acquire affordable manufactured housing
units or construction using modular or other eligible constructed housing.
To execute these program elements City Staff would use the following associated HUD matrix
codes:
• 14D: Rehab; Other than Public-Owned Residential Buildings to be used for the expanded
CHIP program.
• 01: Acquisition of Property - 570.201(a) for the acquisition of any property related to
MCs needing to be improved for public purposes.
• 02: Disposition - 570.201(b) will be used to purchase units to replace pre-1976 units.
• 06: Interim Assistance - 570.201(f) used to arrest further deterioration of physically
deteriorated areas prior to making permanent improvements.
• 11: Privately Owned Utilities - 570.201(l) to assist MHCs with acquisition,
reconstruction, rehabilitation, or installation of distribution lines and facilities of
regulated utilities.
• 14G: Acquisition for Rehabilitation would be used for acquisition of units that would
replace 1976 units.
Timeline: 3-year program
Rehabilitation of Mobilehome Units
Over the course of five years, we have outlined a comprehensive plan to expend the $400,000
annual funding allocation. The objective will be to leverage the existing program, aiming to
increase the number of rehabilitated mobile homes and allocate a larger sum for repairs. Each
year, our target will remain consistent: 20 units, with an investment of $20,000 per unit. This will
nearly double our efficiency and current offerings from: 12 units, and an investment of $10,000
per unit.
In the first year, we will capitalize on our current CHIP by disbursing the $400,000 to fund the
rehabilitation of 20 units. This year will also allow us the time to better establish our foundation
for the program by improving operational procedures, continuing to assess market conditions,
and market the offerings to local residents. Due to the increased involvement by City staff, we
will re-evaluate staff efficacy and adjust where necessary, ensuring that we have the necessary
personnel in place to support our operations and increase productivity. The following two years
will be a continued expansion of the program aiming to offer the same results with higher
Page 316 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
11 | P a g e
efficiency rates. Lastly, the concluding years after all funds have been obligated will be to further
fund the administration of the program and issue funds for all current projects at that time. The
City will not only maximize the use of our fund allocation but also streamline the administration
processes for long-term success and opportunity for future funding.
Infrastructure Improvements for Mobilehome Parks
Over the next three years, our objective is to provide $2,398,125 in loans and grants to
mobilehome park owners for infrastructure updates. In the first year, we'll focus on outreach and
application processes, ensuring mobilehome park owners are aware of the opportunity and can
apply for funding. Simultaneously, we'll collaborate closely with the City of Chula Vista Code
Enforcement to identify parks most in need based on reported repairs and Title 25 complaints,
highlighting “critical” areas requiring, but not limited to, hazard mitigation, road improvements,
security improvements, maintenance, electric and gas meter updates, as well as broadband
expansion. By the end of this year, we aim to have identified potential recipients and initiate
disbursements of the allocated funds to kickstart these crucial improvements.
Moving into the second year, our efforts will intensify as we streamline the disbursement
process, and prioritizing parks with urgent infrastructure needs on a first-come, first-serve basis.
Working closely with mobile home park owners, contractors, and stakeholders, we'll ensure that
the allocated funds are efficiently utilized to address the identified infrastructure concerns and
improve living conditions and safety for residents. Additionally, we'll continue to monitor and
evaluate the impact of the implemented program, seeking feedback from both park owners and
residents to continue our improved approach. By the end of this year, we anticipate substantial
progress in infrastructure enhancements across targeted census tracts, significantly improving the
quality of life for mobilehome park residents in the Chula Vista area.
Acquisition for Rehabilitation of Mobilehome Units
Over the course of the next three years, the City of Chula Vista’s initiative is to revitalize at-risk
mobilehome units, that may no-longer pass health and safety inspections, through a targeted loan
program for some of the most vulnerable homeowners. With a budget of $4,628,250 allocated
for the project, the program aims to replace approximately 30 pre-1976 manufactured homes
scattered across the city. The focus is primarily on mobilehome parks, especially those situated
on the western side, where most structures and parks date back to before the 1970s. This area has
seen outdated or unpermitted units, many of which are deteriorating rapidly and are no longer
feasibly repairable. Through strategic planning and collaboration with mobilehome park owners
and residents, the city intends to address the issue of substandard housing by facilitating the
replacement of these aging units with health and safety compliant structures.
Over the first year, the emphasis will be planning and outreach efforts to inform mobilehome
park owners and residents about the program and its benefits. The city will work closely with
stakeholders to streamline the application process and identify eligible candidates for
participation. Simultaneously, market assessments will be conducted to determine the most
critical areas in need of replacement units. In the subsequent years, the program will shift
towards rapid implementation, with disbursements of funds and commencement of replacing
Page 317 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
12 | P a g e
units. Additionally, we'll continue to monitor and evaluate the impact of the implemented
program, seeking feedback from both park owners and residents to continue our improved
approach. By the end of the three-year timeline, it is anticipated that significant progress will
have been made in replacing outdated homes, thereby enhancing the quality of housing and
living standards for residents across Chula Vista.
Budget: The City would utilize $2,037,448 in administration and $8,263,875in PRICE funds
towards programming as follows:
Rehabilitation of Mobilehome Units
Our Community Home Improvement Program budget outlines the strategic allocation of funds
for 30 approved projects aimed at rehabilitating housing conditions in our mobilehome
communities. With a total budget of $1,562,500, including construction costs of $1,200,000,
inspection costs of $22,500, city attorney costs of $15,000, and administration costs of $325,000
(per CDBG guidelines), we ensure efficient project management and compliance with regulatory
standards. Notably, this initiative is fully funded by PRICE, enabling us to leverage
approximately $120,000 per year to extend assistance to additional single-family residences that
meet income qualifications. Through diligent budget and market analysis, along with leveraging
resources, we are able to improve the impact of our program, providing sustainable
improvements in our neighborhoods while addressing the health and safety needs of our
community members.
Through the PRICE grant and processing of potential loan repayments, our program is structured
for long-term sustainability. The infusion of funds from the PRICE grant enhances our financial
foundation, allowing us to expand our reach and impact within the community. Additionally, by
properly managing and reinvesting potential loan repayments, we establish a self-replenishing
cycle of resources that ensures continuity and growth for several years. This approach not only
strengthens our capacity to address ongoing housing needs but also presents a sustainable model
that can adapt and evolve to meet future challenges and opportunities in our ever-changing
landscape.
Infrastructure Improvements for Mobilehome Parks
The PRICE grant provides 100% funding totaling $3,000,050, dedicated to addressing urgent
infrastructure needs in mobilehome parks located within our City limits. The sum is comprised
of key expenses including $1,228,000 for contractor fees covering labor and materials, with an
additional $156,000 allocated for startup and inspection costs. Architectural and engineering
needs, including permits and utilities, receive $117,250, while $50,000 is reserved for demolition
and removal. Additionally, $600,000 is designated for essential upgrades such as excavation and
installation. Contingencies are set at $200,000 to address unforeseen expenses, with $1,925
allocated for outreach efforts. Adhering to CDBG guidelines, $600,000 is allotted for
administration, providing the necessary resources to effectively manage the project and ensure
compliance. Our commitment remains to leverage all possible resources, such as the PRICE
grant, to improve our community’s infrastructure and living standards especially for those living
in mobilehome parks.
Page 318 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
13 | P a g e
Acquisition for Rehabilitation of Mobilehome Units
The PRICE grant serves as our sole funding source for this program, allocating $5,738,773
towards the replacement of approximately 30 pre-1976 manufactured homes across the city. This
budget is structured to maximize the impact of the grant, with key allocations including
$3,900,000 for the purchase of new units, $300,000 for new unit delivery, and $150,000 for
utility connection and securing dwellings. Additionally, $21,750 is earmarked for inspection and
permit costs, while $225,000 is designated for the demolition and removal of existing units. To
ensure a smooth transition for residents, $31,500 is allocated for temporary relocation assistance.
Lastly, in adherence to CDBG guidelines, $1,110,523 is allocated for administration costs,
facilitating efficient project management and compliance. The City is committed to utilizing the
PRICE grant effectively to address critical housing needs within our community while meeting
regulatory standards.
Impacts: The proposed program will revitalize and retain existing mobilehome communities
throughout the City. It will breathe new life into a valuable housing option within the City that is
already used by thousands of residents. Furthermore, it will allow low-income residents to have a
chance to renew their communities when they may have otherwise been financially unable to do
so. Ultimately, the program will preserve Chula Vista’s abundance of manufactured homes and
ensure that they remain a source of affordable housing for low-income City residents for decades
to come.
Affordability and Equity: The City expects that replacing and revitalizing manufactured home
units will increase the value of residents’ homes and provide greater opportunity for financial
security and stability. The financial assistance targeted to low-income residents in the R/ECAP
area will ensure that this increase of value is targeted among the most vulnerable low-income
population of Chula Vista.
The City will implement minimum affordability standards of at least 15-years, ensuring
compliance with the HOME Investment Partnerships Program (HOME) requirements at 24 CFR
92.254(a)(1)-(4) (homeownership). As required by HUD, the affordability standards will be
enforceable and imposed by recorded use restrictions, covenants, deed restrictions, or other
mechanisms to ensure that the rental housing remains affordable for the required period. This
affordability standard will restrict any resale during this period to LMI households, increasing
the availability of affordable manufactured housing options to LMI households.
Resident protections: The City has two ordinances to protect residents of manufactured homes:
• Chula Vista Municipal Code 9.40 establishes the policies and procedure for mobilehome
park and trailer park conversions or closures. In the event of a MHC closure or
conversion, the “closure ordinance” defines strict regulations for noticing residents with
up to three years advance notice required. The ordinance also ensures that assistance for
relocation be provided to displaced low-income residents.
• Chula Vista Municipal code 9.50 provides regulation for rent review for manufactured
housing in the City. This “rent control” ensures that manufactured home space rental
remains affordable for the more than 3,400 residents throughout the City who live in
manufactured housing.
Page 319 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
14 | P a g e
In addition, the City already contracts with CSA San Diego, a fair housing provider to ensure
residents of the city have their rights and property respected. MHC residents have access to City
Housing staff who refer residents to CSA for landlord/tenant mediation and remediation. The
State of California also provides an ombudsmen service to mobilehome residents, which is where
City staff often refer MHC residents with particularly difficult and challenging cases with park
managers.
Access to Resources and Financing: Efforts will be focused on the census tract 125.01. Census
tract 125.01is defined by HUD as a R/ECAP. R/ECAP areas have a majority non-White
population (greater than 50 percent) with a poverty rate that exceeds 40 percent or is three times
the average tract poverty rate for the metro area, whichever threshold is lower. The City believes
that focusing on this census tract will ensure that benefits of the program low-income and have
the greatest need. It will also ensure that preservation of manufactured homes as a source of
affordable housing will mean these homes are available to Chula Vista’s most vulnerable
residents.
Environment and Resilience: The FEMA’s Recovery and Resilience Library lists drought and
heatwaves as significant risk hazards for San Diego County. FEMA’s National Risk Index
scores both hazards with scores greater than 95 out of 100, meaning San Diego County is more
vulnerable to these hazards, while possessing less community resilience to them. Heatwaves
especially pose a major health risk to socially vulnerable populations, persons with disabilities,
and elderly persons in Chula Vista.
Outdated manufactured homes with poor insulation, ventilation, reflective roof coverings and
windows are especially vulnerable to heatwaves and so are their residents, many of whom are
seniors or persons with disabilities. For this reason, the City has decided to use PRICE funding to
increase the amount of available loans through the City’s CHIP program. CHIP loans will be
used to replace deteriorating windows and repair or replace roofs. Mitigating heatwave impacts
is also the reason the City will use PRICE funds to replace pre-1976 units.
Focusing these improvements in a R/ECAP area will advance environmental justice by reducing
or mitigating exposure to heatwaves in an area that is low-income and primary non-white. It will
also improve protection from and resilience to environmental harms like heatwaves. These
improvements to manufactured homes will also cause energy efficiency and saving on bills for
the residents, further increasing access to recourses and financing.
Community Engagement: City staff already maintain a database of the more than 3,400 spaces
in the manufactured home communities throughout the City. As part of the mobilehome rent
review program staff contract out mailers and information campaigns that are sent to the
residents of mobilehome parks as well as park managers and owners. Using PRICE funding, the
City would increase marketing for the existing CHIP program while also widely advertising the
unit replacement program. This outreach effort would build on the previous communications that
are used by City Staff to coordinate the mobilehome rent review program. Similarly, the city’s
Code Enforcement Division holds quarterly meetings with all park managers and owners. City
staff will coordinate the park infrastructure improvements program through these quarterly
meetings to ensure park owners are aware and interested in the program. Residents and park
Page 320 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
15 | P a g e
managers will additionally be referred for funding by Code Enforcement and the City’s fair
housing provider, CSA San Diego.
The City’s proposal aligns with the City’s Housing Element Goals and 5-year Consolidated Plan
Goals, both of which were created using community surveys, stakeholder and resident meetings,
as well as public hearings and public comment periods. The 2021-2029 Housing Element lists
census tract 125.01 as a priority area for investment of City resources.
Page 321 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
16 | P a g e
EXHIBIT E
Capacity
Project Experience: The City has experience executing various community development
projects. The Department of Housing and Homeless services administers entitlement grants from
HUD, including multiple capital improvement projects, a First Time Homebuyer program, and
the previously mentioned Mobilehome CHIP and many others. Since 1980 the City has executed
1,242 CHIP loans totaling more than $8,456,022. The City’s Housing Department has also
administered loan programs for Accessory Dwelling Units (ADUs) through grants received from
the San Diego Association of Governments.
Grant Experience: As an entitlement community with HUD, the City of Chula Vista receives
annual funding under three entitlement block grant programs: CDBG, HOME, and Emergency
Solutions Grant (“ESG”). Each year the City receives approximately $2.3 Million in CDBG,
$800,000 in HOME, and $200,00 in ESG funds. Managing these grants requires executing
subrecipient agreements, meeting all reporting regulations, and expending funds in a timely
manner. The City’s HUD grant funds are regularly monitored by HUD with no major findings
reported in recent years. The City also manages complex entitlement grant projects like a Section
108 loan payment.
As part of the City’s entitlement grant process the Department of Housing and Urban
Development crafts and publishes required planning documents like the 5-year Consolidated
Action Plan (ConPlan), Annual Action Plans, Consolidated Annual Performance and Evaluation
Report (CAPER), Limited English Proficiency Plan, and a Citizen Participation Plan.
Key Staff: The City of Chula Vista Department of Housing and Homeless Services will
administer PRICE program funding. Key staff will be managed by Stacey Kurz, Director of
HHS. Fiscal and Grant Coordination will be managed by Dania Gonzalez, Principal Management
Analyst. Grant reporting including quarterly draws and progress reports will be administered by
Mark Barnard, Management Analyst II. Execution of loans, acquisition of manufactured homes
and loans to mobilehome park management will be administered by HHS’s Affordable Housing
branch under Housing Manager Brian Warwick and Management Analyst II, Carlos Rodriguez.
All HHS staff have extensive experience managing related programs including HUD entitlement
grants, affordable housing covenants, the CHIP and First Time Homebuyer loan programs, and
other community development projects.
Racial Equity Experience: The City of Chula Vista and the Department of Housing and
Homeless Services are committed to working directly with underserved communities including
the homeless and black and brown communities. Chula Vista is a racially diverse community,
predominately latino at more than 60%. Because of the high proportion of Latino community
members, many beneficiaries of City programming are naturally latino, but nonetheless the City
makes efforts to increase outreach to minority communities and non-english speaking
communities. This includes to lesser represented minority groups in the City like black and
Asian communities.
Page 322 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
17 | P a g e
Environmental Review Experience: As a federal entitlement jurisdiction, the City is
thoroughly experienced conducting environmental reviews for the use of federal funds. Several
staff in the Department of Housing and Homeless Services have undergone extensive
environmental review training in accordance with 24 CFR part 50. The City completes
environmental reviews for each of its HUD entitlement grant projects, totaling more than 25 per
year. In addition, HHS staff completed two-tiered environmental reviews for use of CHIP funds
and other rehabilitation projects.
Cross-Cutting Federal Requirement Experience: City staff are prepared to adhere to cross-
cutting federal requirements. Projects using federal funds currently require the City to adhere to
multiple regulations including those found at 2 CFR Part 200, Davis-Bacon Labor Standards,
Section 3, Uniform Relocation Act, and federal nondiscrimination requirements. Projects
administered by the City occasionally use funding from multiple federal funding sources. To
comply with multiple federal requirements, the following language has been added to program
policies and procedures for federal funded projects:
The City will take all necessary measures to ensure compliance with multiple regulation standards
for projects with multiple funding sources. City staff will fully review the regulations of each
funding source and work with the City Attorney’s Office to certify that all regulatory standards
are reflected in all subcontractor agreements and reporting requirements. All project contracts will
be reviewed to ensure the necessary program requirements for all funding sources are being
adhered to. In addition, the City will maintain a folder for the project containing the following
compliance documentation:
• A chart of accounts detailing different funding sources, grant identification numbers,
and funding amounts from each source.
• All grant agreements from awarding agencies of the funding sources.
• All subcontractor or subrecipient agreements.
• A list of reporting deadlines filtered by each funding source.
• The City’s policies, procedures, standards, and manuals pertaining to each of the
relevant funding source types.
• A completed version of the city’s Checklist for Federally funded Purchases to ensure
requirements outlined in 2 CFR 200.317 - 200.327 have been properly considered.
Page 323 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
18 | P a g e
EXHIBIT F
Match or Leverage
The City of Chula Vista is leveraging its CDBG funds allocated for the CHIP, which has been a
resource for residents since 1980. With a dedicated annual allocation ranging from $120,000 to
$150,000, CHIP has played a dependable role in addressing housing needs within the community
over the years. In reference to PRICE grant funds, the City has provided validity documents and
letters demonstrating the firm commitment to these annual allocations, reference Attachment F
for documentation. However, the potential receipt of PRICE funds presents an opportunity to
further expand on the impact of the city's housing initiatives.
Regardless of whether PRICE funds are awarded or not, the City's current program operations
will remain unaffected. The existing program will continue to function as usual, providing much
needed support to residents and homeowners most in need. However, the absence of PRICE
grant funds may limit the City's ability to expand the program and assist a greater number of
residents. Without additional funding, opportunities for program growth and outreach may be
limited, potentially impacting the City's capacity to address the ongoing needs of our community.
While the current program will continue to serve its designated purpose, the potential impact of
not receiving PRICE funds will hinder the continued success and effectiveness of the program.
By appropriating a portion of the PRICE grant to supplement the CHIP program, the City aims to
increase the financial resources available for mobilehome rehabilitation projects. This approach
allows for a more impactful response to housing challenges faced by all residents, not just
mobilehome owners. The City’s monetary request from PRICE, as explained in the budget,
further elaborates that PRICE grant funding will not exceed 50% of the current CHIP allocation,
resulting in a balanced approach in allocating resources while maximizing the benefits for the
community. These additional funds from the PRICE grant will not only allow the City to allocate
more money towards housing rehabilitation programs but also provide additional administration
time to enhance marketing efforts and improve program administration. This leveraging of
resources highlights the City's commitment to addressing housing needs effectively and
efficiently, ensuring the continued health and safety of its residents.
Page 324 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
19 | P a g e
EXHIBIT G
Long Term Effect
As the housing stock in Western Chula Vista continues to age it will become more important to
create and preserve viable, decent housing for low-income residents in the City. Without action,
LMI households will face increased pressure for housing affordability and housing options in
western Chula Vista will become increasingly blighted and fall into states of decay.
All but one of Chula Vista’s manufactured home communities are located in western Chula Vista,
meaning preserving the supply of decent manufactured housing is crucial to the sustained growth
of decent housing in western Chula Vista. More than 3,400 housing units can be maintained if
the City invests in manufactured homes as a source of affordable living.
PRICE program funding will assist the City with ensuring the long-term affordability of
manufactured homes in the City. The expanded funding for the City’s CHIP program will allow
low-income mobilehome residents the change to make necessary updates to their mobilehomes
that will allow them to be maintained for many years to come. These updates, which residents
may not be able to afford otherwise, will also help these units be sustained through continued
environmental hazards like heath waves. Protecting the residents and the communities.
Furthermore, the program’s focus in census tract 125.01, a R/ECAP will advance housing access
and justice for vulnerable populations including low-income and populations of color. Replacing
pre-1976 units will facilitate and stable homeownership among these communities in this census
tract, promoting long-term opportunity for these community members.
Lastly, the preserved and maintained housing accomplished through PRICE program funding
will comprise larger efforts to maintain housing affordability in the City’s mobilehome
communities. In accordance with the principles of the HOME program, all units assisted with
PRICE program funding will maintain affordability for at least 15-years. Additionally, the City’s
existing mobilehome rent review program will ensure that mobilehome space rents are elevated a
at a reasonable rate that reflects the increased in all consumer prices according to the Consumer
Price Index (CPI).
Page 325 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT A
Advancing Racial Equality
PRICE program funding will focus on the City’s census tract 125.01, which HUD identifies as a
Racially or Ethnically Concentrated Areas of Poverty (R/ECAPs): a majority non-White population
(greater than 50 percent) with a poverty rate that exceeds 40 percent or is three times the average
tract poverty rate for the metro/micro area, whichever threshold is lower. Over 600 units of
trailers/manufactured homes exist in this census tract and the City’s Housing Element requires that
we further fair housing and investment in the R/ECAP.
The map of Census Tract 125.01 can be seen below along with a map that identifies mobilehome
parks within the census tract.
According to the U.S Census Bureau, census tract 125/01 has a population of 4,401 and is 79.82%
Hispanic or Latino. The median household income for the census tract was only $41,182, far below
the area median income of $119,500.
The city believes that communities of color will equitably benefit from PRICE grant funding simply
by marketing program activities to the residents living in manufactured homes in this census tract.
Barrers to these communities could involve language or literacy barriers. Therefore, outreach will
include Spanish-language program materials as well as community meetings held in the parks in
both Spanish and English.
City staff will track the location of all program participants to ensure the R/ECAP focus area is
soliciting the most participants of the program as intended.
DR
A
F
T
Page 326 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT B
Affirmative Marketing
The program services provided by the City of Chula Vista under the PRICE program grant will be
marketed through multiple channels. City staff already maintains a database of more than 3,400
spaces in the manufactured home communities throughout the City. As part of the Mobielhome
Rent Review Program, staff contract out mailers and information campaigns that are sent to the
residents of mobielhome parks as well as park managers and owners. Using PRICE funding, the
City would increase marketing for the existing CHIP program while also widely advertising the unit
replacement program. This outreach effort would build on the previous communications that are
used by City Staff to coordinate the mobilehome rent review program. Similarly, the city’s Code
Enforcement Division holds quarterly meetings with all park managers and owners. City staff will
coordinate the park infrastructure improvements program through these quarterly meetings to
ensure park owners are aware and interested in the program. Residents and park managers will
additionally be referred for funding by Code Enforcement and the City’s fair housing provider, CSA
San Diego.
All program materials will be published in both English and Spanish. The current CHIP program
questionnaire and marketing fliers are already published in English and Spanish. Likewise, the
City’s quarterly mobilehome park managers meetings and resident outreach meetings in the parks
can be held in both English and Spanish.
DR
A
F
T
Page 327 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT C
Affirmatively Furthering Fair Housing
The City of Chula Vista affirmatively furthers fair housing by contracting for the provision of fair
housing services and conducting fair housing testing to detect any fair housing violations. Currently,
the City contracts with CSA San Diego, a non-profit organization with over 50 years of experience
provided fair housing services in San Diego County. The contracted services include education and
outreach to residents and housing providers, assistance with submitting fair housing complaints to
HUD, legal services, and tenant/landlord mediation. These services ensure compliance with civil
rights laws and promote housing equity.
The proposed program services will be focused in census tract 125.01, a Racially and Ethnically
Concentrated Area of Poverty (R/ECAP). Focusing these efforts in this census tract will ensure the
City is promoting integration and healthy housing for underserved populations. Traditionally
underserved communities will be given equitable focus and opportunity to participate in the
program.
DR
A
F
T
Page 328 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT D
Eligible Applicants Documentation
N/A – The City of Chula Vista is an eligible local government applicant.
DR
A
F
T
Page 329 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT E
Evidence of Partnership Letters
The City of Chula Vista is the sole applicant on this application. No cross-jurisdictional partnership
will take place. The City will be working solely with residents, mobilehome park managers, and park
owners.
DR
A
F
T
Page 330 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT F
Match or Leverage Documentation
The City will be committing $122,277.11 from its 2024-2025 Community Development block Grant
allocation to its existing Community Housing Improvement Program (CHIP). This allocation will act in
tandem with PRICE funds to bolster the CHIP program for 2024-2025. The City plans to continue to
allocate CDBG funds for CHIP purposes annually. The 2024 City resolution allocation CDBG funding for
the CHIP program is attached.
DR
A
F
T
Page 331 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) APPROVING THE FISCAL YEAR 2024/25
U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT SPENDING PLAN FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIPS PROGRAM; (2) AUTHORIZING THE CITY
MANAGER OR DESIGNEE TO EXECUTE SUBRECIPIENT
AGREEMENTS AND ALL HUD DOCUMENTS RELATED TO
THE GRANTS; AND (3) APPROPRIATING FUNDS THERFOR
WHEREAS, as a Department of Housing and Urban Development (“HUD”)
entitlement community, the City of Chula Vista receives grant funds under the Community
Development Block Grant (“CDBG”) and the Home Investment Partnerships Program
(“HOME”); and
WHEREAS, staff has prepared the Fiscal Year 2024/25 Housing and Urban
Development Federal Grant Spending Plan and 2024/25 Annual Action Plan using the goals
set forth in the Consolidated Plan (“Consolidated Plan”) and in accordance with HUD Rules
and Regulations; and
WHEREAS, the City will receive a Fiscal Year 2024/25 CDBG entitlement of
approximately $2,353,427 and a HOME entitlement of approximately $788,011; and
WHEREAS, the City followed its Citizen Participation Plan and held public hearings on
housing and community needs in February and April 2024, at which time public testimony
was received and considered by the City Council with respect to the FY 2024/25 Annual
Action Plan: and
WHEREAS, staff has determined that the proposed activities are eligible for CDBG
and HOME funding; and
WHEREAS, each CDBG project and program meets national objectives to benefit
primarily low/income households or aid in the elimination of slums and blight; and
WHEREAS, staff has determined that the subrecipients identified in the FY 2024/25
Annual Action Plan, as summarized in the Federal Grant Spending Plan attached hereto as
Exhibit 1, are experienced and staffed in a manner such that they can prepare and deliver
the services required by the City; and
WHEREAS, in the event that HUD withdraws the City's CDBG or HOME funding, the
City is not obligated to compensate the sub/recipients/contractors for program
expenditures; and
DR
A
F
T
Page 332 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
WHEREAS, in the event that the City receives a greater or smaller CDBG allocation,
the increase or decrease of funds will be applied to the Community Housing Improvement
Program identified in Exhibit 1 attached hereto; and
WHEREAS, in the event that the City receives a greater or smaller HOME allocation
the increase or decrease of funds will be applied to the City’s Tenant Based Rental
Assistance program identified in Exhibit 1 attached hereto.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
as follows:
1. That it approves the 2024/25 Annual Action Plan, a copy of which shall be kept on file
with the City Clerk and made available to the public upon request.
2. That it authorizes the City Manager or designee to execute any and all agreements
and necessary amendments for the management and implementation of the Fiscal Year
2024/25 Annual Action Plan, CDBG and HOME Programs, between the City of Chula
Vista and each subrecipient, and it further authorizes the City Manager or designee
to make such minor modifications as may be approved or required by the City
Attorney.
3. That it authorizes the City Manager or designee to enter into Memorandums of
Agreement, in substantially the form presented, for the management and implementation
of the Fiscal Year 2024/25 Annual Action Plan, CDBG Capital Improvement Projects,
with the Directors of Engineering and Community Services, and it further authorizes the
City Manager or designee to make such minor modifications as may be approved or
required by the City Attorney.
4. That it authorizes the City Manager or designee to execute the HUD Funding
Approval Agreements and any other related documents necessary to obtain the HUD
grants.
5. That it authorizes funding of the Fiscal Year 2024/25 HUD Annual Action Plan CDBG
and HOME activities detailed in Exhibit 1 attached hereto in the amount of $3,141,438.
6. That it authorizes an appropriation in the amount of $3,141,438 for the Community
Development Block Grant and HOME Program Grants.
Presented by Approved as to form
By:
Stacey Kurz Marco A. Verdugo
Director of Housing & Homeless Services City Attorney
DR
A
F
T
Page 333 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
EXHIBIT 1
DR
A
F
T
Page 334 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT G
Application Certifications and Standard Forms
DR
A
F
T
Page 335 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
OMB Number: 4040-0004
Expiration Date: 11/30/2025
* 1. Type of Submission:* 2. Type of Application:
* 3. Date Received:4. Applicant Identifier:
5a. Federal Entity Identifier:5b. Federal Award Identifier:
6. Date Received by State:7.State Application Identifier:
* a. Legal Name:
*b. Employer/Taxpayer Identification Number (EIN/TIN):*c. UEI:
* Street1:
Street2:
* City:
County/Parish:
* State:
Province:
* Country:
*Zip / Postal Code:
Department Name:Division Name:
Prefix:* First Name:
Middle Name:
*Last Name:
Suffix:
Title:
Organizational Affiliation:
*Telephone Number:Fax Number:
* Email:
* If Revision, select appropriate letter(s):
* Other (Specify):
State Use Only:
8. APPLICANT INFORMATION:
d. Address:
e. Organizational Unit:
f. Name and contact information of person to be contacted on matters involving this application:
Application for Federal Assistance SF-424
Preapplication
Application
Changed/Corrected Application
New
Continuation
Revision
Completed by Grants.gov upon submission.
USA: UNITED STATES
X
X
N/A
City of Chula Vista
95-6000690 078726551000
276 Fourth Avenue
Building C
Chula Vista
San Diego CA: California
San Diego CA: California
91910-2631
Dept. of Housing and Homeless
Mr.Mark
Barnard
Management Analyst II
City of Chula Vista
(619)409-1976
mbarnard@chulavistaca.gov
DR
A
F
T
Page 336 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
* 9. Type of Applicant 1: Select Applicant Type:
Type of Applicant 2: Select Applicant Type:
Type of Applicant 3: Select Applicant Type:
* Other (specify):
* 10. Name of Federal Agency:
11. Catalog of Federal Domestic Assistance Number:
CFDA Title:
* 12. Funding Opportunity Number:
* Title:
13. Competition Identification Number:
Title:
14. Areas Affected by Project (Cities, Counties, States, etc.):
* 15. Descriptive Title of Applicant's Project:
Attach supporting documents as specified in agency instructions.
Application for Federal Assistance SF-424
View AttachmentsDelete AttachmentsAdd Attachments
View AttachmentDelete AttachmentAdd Attachment
C: City or Township Government
US Department of Housing and Urban Development (HUD)
14.218
Community Development Block Grant (CDBG)
City of Chula Vista Application for Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program funding
DR
A
F
T
Page 337 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
* a. Federal
* b. Applicant
* c. State
* d. Local
* e. Other
* f. Program Income
* g. TOTAL
.
Prefix:* First Name:
Middle Name:
* Last Name:
Suffix:
* Title:
*Telephone Number:
* Email:
Fax Number:
* Signature of Authorized Representative:* Date Signed:
18. Estimated Funding ($):
21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements
herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to
comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may
subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 18, Section 1001)
** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency
specific instructions.
Authorized Representative:
Application for Federal Assistance SF-424
* a. Applicant
Attach an additional list of Program/Project Congressional Districts if needed.
* b. Program/Project
* a. Start Date:* b. End Date:
16. Congressional Districts Of:
17. Proposed Project:
Add Attachment Delete Attachment View Attachment
a. This application was made available to the State under the Executive Order 12372 Process for review on
b. Program is subject to E.O. 12372 but has not been selected by the State for review.
c. Program is not covered by E.O. 12372.
Yes No
Add Attachment Delete Attachment View Attachment
** I AGREE
Completed by Grants.gov upon submission.
* 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.)
* 19. Is Application Subject to Review By State Under Executive Order 12372 Process?
Completed by Grants.gov upon submission.
If "Yes", provide explanation and attach
51 51
7/1/2024 6/30/2025
X
X
X
Mrs.Maria
Kachadoorian
City Manager
619-691-5031
Mkachadoorian@chulavistaca.gov
DR
A
F
T
Page 338 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Applicant and Recipient
Assurances and Certifications
U.S. Department of Housing
and Urban Development
OMB Number: 250-0017
Expiration Date:
Instructions for the HUD-424-B Assurances and Certifications
As part of your application for HUD funding, you, as the official authorized to sign on behalf of your organization or as an individual, must provide
the following assurances and certifications, which replace any requirement to submit an SF-424-B or SF-424-D. The Responsible Civil Rights
Official has specified this form for use for purposes of general compliance with 24 CFR §§ 1.5, 3.115, 8.50, and 146.25, as applicable. The
Responsible Civil Rights Official may require specific civil rights assurances to be furnished consistent with those authorities and will specify the
form on which such assurances must be made. A failure to furnish or comply with the civil rights assurances contained in this form may result in the
procedures to effect compliance at 24 CFR §§ 1.8, 3.115, 8.57, or 146.39.
By submitting this form, you are stating that all assertions made in this form are true, accurate, and correct.
As the duly representative of the applicant, I certify that the applicant:
*Authorized Representative Name:
Prefix: *First Name:
Middle Name:
*Last Name:
Suffix:
*Title:
*Applicant Organization:
1. Has the legal authority to apply for Federal assistance,
has the institutional, managerial and financial capability
(including funds to pay the non-Federal share of program
costs) to plan, manage and complete the program as
described in the application and the governing body has duly
authorized the submission of the application, including these
assurances and certifications, and authorized me as the
official representative of the application to act in connection
with the application and to provide any additional information
as may be required.
2. Will administer the grant in compliance with Title VI of
the Civil Rights Act of 1964 (42 U.S.C 2000(d)) and
implementing regulations (24 CFR part 1), which provide that
no person in the United States shall, on the grounds of race,
color or national origin, be excluded from participation in, be
denied the benefits of, or otherwise be subject to
discrimination under any program or activity that receives
Federal financial assistance OR if the applicant is a
Federally recognized Indian tribe or its tribally designated
housing entity, is subject to the Indian Civil Rights Act (25
U.S.C. 1301-1303).
3. Will administer the grant in compliance with Section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794), as
amended, and implementing regulations at 24 CFR part 8,
the American Disabilities Act (42 U.S.C. §§ 12101 et.seq.),
and implementing regulations at 28 CFR part 35 or 36, as
applicable, and the Age Discrimination Act of 1975 (42
U.S.C. 6101-07) as amended, and implementing regulations
at 24 CFR part 146 which together provide that no person in
the United States shall, on the grounds of disability or age,
be excluded from participation in, be denied the benefits of,
or otherwise be subjected to discrimination under any
program or activity that receives Federal financial
assistance; except if the grant program authorizes or limits
participation to designated populations, then the applicant
will comply with the nondiscrimination requirements within
the designated population.
4. Will comply with the Fair Housing Act (42 U.S.C. 3601-19),
as amended, and the implementing regulations at 24
CFR part 100, which prohibit discrimination in housing on the
basis of race, color, religion sex (including gender identity
and sexual orientation), disability, familial status, or national
origin and will affirmatively further fair housing; except an
applicant which is an Indian tribe or its instrumentality which
is excluded by statute from coverage does not make this
certification; and further except if the grant program
authorizes or limits participation to designated populations,
then the applicant will comply with the nondiscrimination
requirements within the designated population.
5. Will comply with all applicable Federal
nondiscrimination requirements, including those listed at 24
CFR §§ 5.105(a) and 5.106 as applicable.
6. Will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended (42
U.S.C. 4601) and implementing regulations at 49 CFR part
24 and, as applicable, Section 104(d) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304(d))
and implementing regulations at 24 CFR part 42, subpart A.
7. Will comply with the environmental requirements of the
National Environmental Policy Act (42 U.S.C. 4321 et.seq.)
and related Federal authorities prior to the commitment or
expenditure of funds for property.
8. That no Federal appropriated funds have been paid, or
will be paid, by or on behalf of the applicant, to any person
for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, and officer
or employee of Congress, or an employee of a Member of
Congress, in connection with the awarding of this Federal
grant or its extension, renewal, amendment or modification.
If funds other than Federal appropriated funds have or will
be paid for influencing or attempting to influence the persons
listed above, I shall complete and submit Standard Form-
LLL, Disclosure Form to Report Lobbying. I certify that I shall
require all subawards at all tiers (including sub-grants and
contracts) to similarly certify and disclose accordingly.
Federally recognized Indian Tribes and tribally designated
housing entities (TDHEs) established by Federally-
recognized Indian tribes as a result of the exercise of the
tribe’s sovereign power are excluded from coverage by the
Byrd Amendment, but State-recognized Indian tribes and
TDHs established under State law are not excluded from the
statute’s coverage.
Maria
Kachadoorian
City Manager
City of Chula Vista
DR
A
F
T
Page 339 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct.
WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties,
including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§287, 1001, 1010, 1012, 1014;
31 U.S.C. §3729, 3802).
*Signature: Completed Upon Submission to Grants.gov *Date: Completed Upon Submission to
Grants.gov
Form HUD-424-B (/2)
DR
A
F
T
Page 340 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Applicant/Recipient
Disclosure/Update Report
U.S. Department of Housing
and Urban Development
OMB Number: 2501-0017
Expiration Date: 01/31/2026
Applicant/Recipient Information * UEI Number:* Report Type:INITIAL
1. Applicant/Recipient Name, Address, and Phone (include area code):
* Applicant Name:
* Street1:
Street2:
* City:
County:
* State:
* Zip Code:
* Country:
* Phone:
2. Employer ID Number (do not include individual social security numbers):
* 3. HUD Program Name:
* 4. Amount of HUD Assistance Requested/Received: $
5. State the name and location (street address, City and State) of the project or activity:
* Project Name:
* Street1:
Street2:
* City:
County:
* State:
* Zip Code:
* Country:USA: UNITED STATES
Part I Threshold Determinations
* 1. Are you applying for assistance for a specific project or activity? These
terms do not include formula grants, such as public housing operating
subsidy or CDBG block grants. For further information see 24 CFR
Sec. 4.3.
Yes No
* 2. Have you received or do you expect to receive assistance within
the jurisdiction of the Department (HUD), involving the project or
activity in this application, in excess of $200,000 during this fiscal
year (Oct. 1-Sep. 30)? For further information, see 24 CFR 4.9.
Yes No
If you answered "No" to either question 1 or 2, Stop! You do not need to complete the remainder of this form. However, you must sign the
certification at the end of the report.
Form HUD-2880 (02/23)
City of Chula Vista
276 Fourth Avenue
Chula Vista
CA
91910
San Diego
619-409-1946
078726551000
95-6000690
Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Competition
City of Chula Vista PRICE Program
N/A
Chula Vista
CA
N/A
X X
DR
A
F
T
Page 341 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Part II Other Government Assistance Provided or Requested / Expected Sources and Use of Funds.
Such assistance includes, but is not limited to, any grant, loan, subsidy, guarantee, insurance, payment, credit, or tax benefit.
Department/State/Local Agency Name:
* Government Agency Name:
Government Agency Address:
* Street1:
Street2:
* City:
County:
* State:
* Zip Code:
* Country:
* Type of Assistance:* Amount Requested/Provided: $
* Expected Uses of the Funds:
Department/State/Local Agency Name:
* Government Agency Name:
Government Agency Address:
* Street1:
Street2:
* City:
County:
* State:
* Zip Code:
* Country:
* Type of Assistance:* Amount Requested/Provided: $
* Expected Uses of the Funds:
Note: Use additional pages if necessary. Add Attachment Delete Attachment View Attachment
Form HUD-2880 (02/23)
DR
A
F
T
Page 342 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Part III Interested Parties. You must disclose:
1. All developers, contractors, or consultants involved in the application for assistance or in the planning, development, or implementation of the
project or activity.
* Alphabetical list of all persons with a
reportable financial interest in the project or
activity (for individuals, give the last name first)
* Unique Entity ID * Type of Participation in
Project/Activity
* Financial Interest in
Project/Activity ($ and %)
$ %
$
%
$%
$ %
$ %
2. Any other person who has a financial interest in the project or activity for which the assistance is sought that exceeds $50,000 or 10 percent of the
assistance (whichever is lower).
* Alphabetical list of all persons with a
reportable financial interest in the project or
activity (For individuals, give the last name first)
City of Residence * Type of Participation in
Project/Activity
* Financial Interest in
Project/Activity ($ and %)
$ %
$ %
$ %
$ %
$ %
Note: Use additional pages if necessary. Add Attachment Delete Attachment View Attachment
Certification
I/We, the undersigned, certify under penalty of perjury that the information provided above is true, correct, and accurate.
Warning: If you knowingly make a false statement on this form, you may be subject to criminal and/or civil penalties under Section 1001 of Title 18 of
the United States Code. In addition, any person who knowingly and materially violates any required disclosures of information, including intentional
non-disclosure, is subject to civil money penalty not to exceed $10,000 for each violation.
*Signature:* Date: (mm/dd/yyyy)
Completed Upon Submission to Grants.gov Completed Upon Submission
to Grants.gov
Form HUD-2880 (02/23)
DR
A
F
T
Page 343 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Instructions
Overview.
$Coverage. You must complete this report if:
You are applying for assistance from HUD for a specific project
or activity and you have received, or expect to receive, assistance
from HUD in excess of $200,000 during the Iiscal year;
You are updating a prior report as discussed below; or
You are submitting an application for assistance to an entity
other than HUD, a State or local government if the application is
required by statute or regulation to be submitted to HUD for
approval or for any other purpose.
% Update reports (filed by "Recipients" of HUD Assistance):
General. All recipients of covered assistance must submit update
reports to the Department to reflect substantial changes to the initial
applicant disclosure reports.
Line-by-Line Instructions.
Applicant/Recipient Information.
All applicants for HUD competitive assistance, must complete the
information required in blocks 1-5 of form HUD-2880:
1.Enter the full name, address, city, State, zip code, and telephone
number (including area code) of the applicant/recipient. Where the
applicant/recipient is an individual, the last name, first name, and
middle initial must be entered.
2.Entry of the applicant/recipient's EIN, as appropriate, is optional.
Individuals must not include social security numbers on this form.
3.Applicants enter the HUD program name under which the assistance
is being requested.
4.Applicants enter the amount of HUD assistance that is being
requested. Recipients enter the amount of HUD assistance that has
been provided and to which the update report relates. The amounts are
those stated in the application or award documentation. NOTE: In the
case of assistance that is provided pursuant to contract over a period
of time (such as project-based assistance under section 8 of the United
States Housing Act of 1937), the amount of assistance to be reported
includes all amounts that are to be provided over the term of the
contract, irrespective of when they are to be received.
5.Applicants enter the name and full address of the project or activity
for which the HUD assistance is sought. Recipients enter the name
and full address of the HUD-assisted project or activity to which the
update report relates. The most appropriate government identifying
number must be used (e.g., RFP No.; IFB No.; grant announcement
No.; or contract, grant, or loan No.) Include prefixes.
Part I. Threshold Determinations - Applicants Only
Part I contains information to help the applicant determine whether the
remainder of the form must be completed. Recipients filing Update
Reports should not complete this Part.
If the answer to either questions 1 or 2 is No, the applicant need not
complete Parts II and III of the report but must sign the certification at
the end of the form.
Part II. Other Government Assistance and Expected Sources and
Uses of Funds.
A.Other Government Assistance. This Part is to be completed by
both applicants and recipients for assistance and recipients filing
update reports. Applicants and recipients must report any other
government assistance involved in the project or activity for which
assistance is sought. Applicants and recipients must report any other
government assistance involved in the project or activity. Other
government assistance is defined in note 4 on the last page. For
purposes of this definition, other government assistance is expected to
be made available if, based on an assessment of all the circumstances
involved, there are reasonable grounds to anticipate that the
assistance will be forthcoming.
Both applicant and recipient disclosures must include all other
government assistance involved with the HUD assistance, as well as
any other government assistance that was made available before the
request, but that has continuing vitality at the time of the request.
Examples of this latter category include tax credits that provide for a
number of years of tax benefits, and grant assistance that continues to
benefit the project at the time of the assistance request.
The following information must be provided:
1.Enter the name and address, city, State, and zip code of the
government agency making the assistance available.
2.State the type of other government assistance (e.g., loan, grant,
loan insurance).
3.Enter the dollar amount of the other government assistance that is,
or is expected to be, made available with respect to the project or
activities for which the HUD assistance is sought (applicants) or has
been provided (recipients).
4.Uses of funds. Each reportable use of funds must clearly identify the
purpose to which they are to be put. Reasonable aggregations may be
used, such as "total structure" to include a number of structural costs,
such as roof, elevators, exterior masonry, etc.
B.Non-Government Assistance. Note that the applicant and recipient
disclosure report must specify all expected sources and uses of funds -
both from HUD and any other source - that have been or are to be,
made available for the project or activity. Non-government sources of
Form HUD-2880 funds typically include (but are not limited to)
foundations and private contributors.
Part III. Interested Parties.
This Part is to be completed by both applicants and recipients filing
update reports. Applicants must provide information on:
1.All developers, contractors, or consultants involved in the application
for the assistance or in the planning, development, or implementation
of the project or activity and
2.Any other person who has a financial interest in the project or
activity for which the assistance is sought that exceeds $50,000 or 10
percent of the assistance (whichever is lower). Note: A financial
interest means any financial involvement in the project or activity,
including (but not limited to) situations in which an individual or entity
has an equity interest in the project or activity, shares in any profit on
resale or any distribution of surplus cash or other assets of the project
or activity, or receives compensation for any goods or services
provided in connection with the project or activity. Residency of an
individual in housing for which assistance is being sought is not, by
itself, considered a covered financial interest.
The information required below must be provided.
1.Enter the full names and addresses. If the person is an entity, the
listing must include the full name and address of the entity as well as
the CEO. Please list all names alphabetically.
2.Entry of the Unique Entity Identifier (UEI), for non-individuals, or city
of residence, for individuals, for each organization and person listed is
optional.
3.Enter the type of participation in the project or activity for each
person listed: i.e., the person's specific role in the project (e.g.,
contractor, consultant, planner, investor).
4.Enter the financial interest in the project or activity for each person
listed. The interest must be expressed both as a dollar amount and as
a percentage of the amount of the HUD assistance involved.
Note that if any of the source/use information required by this report
has been provided elsewhere in this application package, the applicant
need not repeat the information, but need only refer to the form and
location to incorporate it into this report. (It is likely that some of the
information required by this report has been provided on SF 424A, or
on various budget forms accompanying the application.) If this report
requires information beyond that provided elsewhere in the application
package, the applicant must include in this report all the additional
Form HUD-2880 (02/23)
DR
A
F
T
Page 344 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
information required. Recipients must submit an update report for any
change in previously disclosed sources and uses of funds as provided
in Section I.D.5., above.
Notes:
1. All citations are to 24 CFR Part 4, which was published in the
Federal Register. [April 1, 1996, at 63 Fed. Reg. 14448.]
2. Assistance means any contract, grant, loan, cooperative agreement,
or other form of assistance, including the insurance or guarantee of a
loan or mortgage, that is provided with respect to a specific project or
activity under a program administered by the Department. The term
does not include contracts, such as procurements contracts, that are
subject to the Fed. Acquisition Regulation (FAR) (48 CFR Chapter 1).
3. See 24 CFR §4.9 for detailed guidance on how the threshold is
calculated.
4. "Other government assistance" is defined to include any loan, grant,
guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or
any other form of direct or indirect assistance from the Federal
government (other than that requested from HUD in the application), a
State, or a unit of general local government, or any agency or
instrumentality thereof, that is, or is expected to be made, available
with respect to the project or activities for which the assistance is
sought.
5. For the purpose of this form and 24 CFR Part 4, "person" means an
individual (including a consultant, lobbyist, or lawyer); corporation;
company; association; authority; firm; partnership; society; State, unit
of general local government, or other government entity, or agency
thereof (including a public housing agency); Indian tribe; and any other
organization or group of people.
Form HUD-2880 (02/23)
DR
A
F
T
Page 345 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 1 of 0
LOBBYING CERTIFICATION FOR ALL APPLICANTS
INSTRUCTIONS CONCERNING LOBBYING CERTIFICATION:
Lobbying Certification
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making
or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
__________________________________ Signature of Authorized Official
_______________ Date
__________________________________ Title
City Manager
DR
A
F
T
Page 346 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
OMB Number: 4040-0009
Expiration Date: 02/28/2025
ASSURANCES - CONSTRUCTION PROGRAMS
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT
AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.
Public reporting burden for this collection of information is estimated to average 15 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0042), Washington, DC 20503.
Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the
Awarding Agency. Further, certain Federal assistance awarding agencies may require applicants to certify to additional
assurances. If such is the case, you will be notified.
As the duly authorized representative of the applicant:, I certify that the applicant:
NOTE:
1.Has the legal authority to apply for Federal assistance,
and the institutional, managerial and financial capability
(including funds sufficient to pay the non-Federal share
of project costs) to ensure proper planning,
management and completion of project described in
this application.
2.Will give the awarding agency, the Comptroller General
of the United States and, if appropriate, the State,
the right to examine all records, books, papers, or
documents related to the assistance; and will establish
a proper accounting system in accordance with
generally accepted accounting standards or agency
directives.
3.Will not dispose of, modify the use of, or change the
terms of the real property title or other interest in the
site and facilities without permission and instructions
from the awarding agency. Will record the Federal
awarding agency directives and will include a covenant
in the title of real property acquired in whole or in part
with Federal assistance funds to assure non-
discrimination during the useful life of the project.
4.Will comply with the requirements of the assistance
awarding agency with regard to the drafting, review and
approval of construction plans and specifications.
5.Will provide and maintain competent and adequate
engineering supervision at the construction site to
ensure that the complete work conforms with the
approved plans and specifications and will furnish
progressive reports and such other information as may be
required by the assistance awarding agency or State.
6.Will initiate and complete the work within the applicable
time frame after receipt of approval of the awarding agency.
7.Will establish safeguards to prohibit employees from
using their positions for a purpose that constitutes or
presents the appearance of personal or organizational
conflict of interest, or personal gain.
8.Will comply with the Intergovernmental Personnel Act
of 1970 (42 U.S.C. §§4728-4763) relating to prescribed
standards of merit systems for programs funded
under one of the 19 statutes or regulations specified in
Appendix A of OPM's Standards for a Merit System of
Personnel Administration (5 C.F.R. 900, Subpart F).
9.Will comply with the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. §§4801 et seq.) which
prohibits the use of lead-based paint in construction or
rehabilitation of residence structures.
10.Will comply with all Federal statutes relating to non-
discrimination. These include but are not limited to: (a)
Title VI of the Civil Rights Act of 1964 (P.L. 88-352)
which prohibits discrimination on the basis of race,
color or national origin; (b) Title IX of the Education
Amendments of 1972, as amended (20 U.S.C. §§1681
1683, and 1685-1686), which prohibits discrimination
on the basis of sex; (c) Section 504 of the
Rehabilitation Act of 1973, as amended (29) U.S.C.
§794), which prohibits discrimination on the basis of
handicaps; (d) the Age Discrimination Act of 1975, as
amended (42 U.S.C. §§6101-6107), which prohibits
discrimination on the basis of age; (e) the Drug Abuse
Office and Treatment Act of 1972 (P.L. 92-255), as
amended relating to nondiscrimination on the basis of
drug abuse; (f) the Comprehensive Alcohol Abuse and
Alcoholism Prevention, Treatment and Rehabilitation
Act of 1970 (P.L . 91-616), as amended, relating to
nondiscrimination on the basis of alcohol abuse or
alcoholism; (g) §§523 and 527 of the Public Health
Service Act of 1912 (42 U.S.C. §§290 dd-3 and 290 ee
3), as amended, relating to confidentiality of alcohol
and drug abuse patient records; (h) Title VIII of the
Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as
amended, relating to nondiscrimination in the sale,
rental or financing of housing; (i) any other
nondiscrimination provisions in the specific statue(s)
under which application for Federal assistance is being
made; and (j) the requirements of any other
nondiscrimination statue(s) which may apply to the
application.
Previous Edition Usable Authorized for Local Reproduction Standard Form 424D (Rev. 7-97)
Prescribed by OMB Circular A-102
DR
A
F
T
Page 347 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
11.Will comply, or has already complied, with the
requirements of Titles II and III of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of
1970 (P.L. 91-646) which provide for fair and equitable
treatment of persons displaced or whose property is
acquired as a result of Federal and federally-assisted
programs. These requirements apply to all interests in real
property acquired for project purposes regardless of
Federal participation in purchases.
12.Will comply with the provisions of the Hatch Act (5 U.S.C.
§§1501-1508 and 7324-7328) which limit the political
activities of employees whose principal employment
activities are funded in whole or in part with Federal funds.
13.Will comply, as applicable, with the provisions of the Davis-
Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act
(40 U.S.C. §276c and 18 U.S.C. §874), and the Contract
Work Hours and Safety Standards Act (40 U.S.C. §§327-
333) regarding labor standards for federally-assisted
construction subagreements.
14.Will comply with flood insurance purchase requirements of
Section 102(a) of the Flood Disaster Protection Act of 1973
(P.L. 93-234) which requires recipients in a special flood
hazard area to participate in the program and to purchase
flood insurance if the total cost of insurable construction
and acquisition is $10,000 or more.
15.Will comply with environmental standards which may be
prescribed pursuant to the following: (a) institution of
environmental quality control measures under the National
Environmental Policy Act of 1969 (P.L. 91-
190) and Executive Order (EO) 11514; (b) notification
of violating facilities pursuant to EO 11738; (c)
protection of wetlands pursuant to EO 11990; (d)
evaluation of flood hazards in floodplains in accordance
with EO 11988; (e) assurance of project consistency
with the approved State management program
developed under the Coastal Zone Management Act of
1972 (16 U.S.C. §§1451 et seq.); (f) conformity of
Federal actions to State (Clean Air) implementation
Plans under Section 176(c) of the Clean Air Act of
1955, as amended (42 U.S.C. §§7401 et seq.); (g)
protection of underground sources of drinking water
under the Safe Drinking Water Act of 1974, as
amended (P.L. 93-523); and, (h) protection of
endangered species under the Endangered Species
Act of 1973, as amended (P.L. 93-205).
16.Will comply with the Wild and Scenic Rivers Act of
1968 (16 U.S.C. §§1271 et seq.) related to protecting
components or potential components of the national
wild and scenic rivers system.
17.Will assist the awarding agency in assuring compliance
with Section 106 of the National Historic Preservation
Act of 1966, as amended (16 U.S.C. §470), EO 11593
(identification and protection of historic properties), and
the Archaeological and Historic Preservation Act of
1974 (16 U.S.C. §§469a-1 et seq).
18.Will cause to be performed the required financial and
compliance audits in accordance with the Single Audit
Act Amendments of 1996 and OMB Circular No. A-133,
"Audits of States, Local Governments, and Non-Profit
Organizations."
19.Will comply with all applicable requirements of all other
Federal laws, executive orders, regulations, and policies
governing this program.
SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL TITLE
SF-424D (Rev. 7-97) Back
APPLICANT ORGANIZATION DATE SUBMITTED
City Manager
City of Chula Vista
20.Will comply with the requirements of Section 106(g) of
the Trafficking Victims Protection Act (TVPA) of 2000, as
amended (22 U.S.C. 7104) which prohibits grant award
recipients or a sub-recipient from (1) Engaging in severe
forms of trafficking in persons during the period of time
that the award is in effect (2) Procuring a commercial
sex act during the period of time that the award is in
effect or (3) Using forced labor in the performance of the
award or subawards under the award.
DR
A
F
T
Page 348 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
PRICE CERTIFICATIONS FOR ENTITLEMENT LOCAL GOVERNMENT
APPLICANTS
In accordance with the applicable statutes and the regulations governing the consolidated plan
regulations, the jurisdiction certifies that:
Affirmatively Further Fair Housing --The jurisdiction will affirmatively further fair housing.
The Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended
(URA), and Residential Anti-displacement and Relocation Assistance Plan (RARAP) -- It
will comply with the acquisition and relocation requirements of the URA (42 U.S.C. 4601-4655)
and implementing regulations at 49 CFR part 24. It has in effect and is following a RARAP as
required under 24 CFR part 42 in connection with any activity assisted with funding under either
the Community Development Block Grant or HOME programs.
Anti-Lobbying --To the best of the jurisdiction's knowledge and belief:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any
Federal contract, grant, loan, or cooperative agreement;
2. If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with this Federal contract, grant, loan, or cooperative
agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions; and
3. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be
included in the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and cooperative agreements) and that all
subrecipients shall certify and disclose accordingly.
Authority of Jurisdiction -- The submission of the PRICE application is authorized under state
and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the
programs for which it is seeking funding, in accordance with applicable HUD regulations.
Consistency with plan --The housing activities to be undertaken with PRICE funds are
consistent with the strategic plan in the jurisdiction’s consolidated plan.
Section 3 -- It will comply with Section 3 of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701u) and implementing regulations at 24 CFR part 75.
Build America, Buy America (BABA) – It will comply with Title IX, subpart A of the
Infrastructure Investment and Jobs Act of 2021 (41 U.S.C. 8301 et seq.).
Public Participation – It is in full compliance with the PRICE streamlined public participation
requirements found in Section VI.E of the PRICE NOFO.
DR
A
F
T
Page 349 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Community Development Plan -- Its consolidated plan identifies community development and
housing needs and specifies both short-term and long-term community development objectives
that that have been developed in accordance with the primary objective of the CDBG program
(i.e., the development of viable urban communities, by providing decent housing and expanding
economic opportunities, primarily for persons of low and moderate income) and requirements of
24 CFR parts 91 and 570.
Following a Plan -- It is following a current consolidated plan that has been approved by HUD.
Use of Funds -- It has complied with the following criteria:
1. Maximum Feasible Priority. With respect to activities expected to be assisted with
PRICE funds, it has developed its proposal to give maximum feasible priority to activities
which benefit low- and moderate-income families or aid in the prevention or elimination
of slums or blight. The proposal may also include activities which the grantee certifies
are designed to meet other community development needs having particular urgency
because existing conditions pose a serious and immediate threat to the health or welfare
of the community, and other financial resources are not available (see Optional PRICE
Certification).
2. Overall Benefit. The aggregate use of PRICE funds shall principally benefit persons of
low and moderate income in a manner that ensures that at least 70 percent of the amount
is expended for activities that benefit such persons.
3. Special Assessments. It will not attempt to recover any capital costs of public
improvements assisted with PRICE funds by assessing any amount against properties
owned and occupied by persons of low and moderate income, including any fee charged
or assessment made as a condition of obtaining access to such public improvements.
However, if PRICE funds are used to pay the proportion of a fee or assessment that
relates to the capital costs of public improvements (assisted in part with PRICE funds)
financed from other revenue sources, an assessment or charge may be made against the
property with respect to the public improvements financed by a source other than PRICE
funds. In addition, in the case of properties owned and occupied by moderate-income (not
low-income) families, an assessment or charge may be made against the property for
public improvements financed by a source other than PRICE funds if the jurisdiction
certifies that it lacks PRICE funds to cover the assessment.
Excessive Force -- It has adopted and is enforcing:
1. A policy prohibiting the use of excessive force by law enforcement agencies within its
jurisdiction against any individuals engaged in non-violent civil rights demonstrations;
and
2. A policy of enforcing applicable state and local laws against physically barring entrance
to or exit from a facility or location which is the subject of such non-violent civil rights
demonstrations within its jurisdiction.
Compliance with Anti-discrimination laws -- The grant will be conducted and administered in
conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and the Fair Housing
Act (42 U.S.C. 3601-3619) and implementing regulations.
Lead-Based Paint -- Its activities concerning lead-based paint will comply with the
requirements of 24 CFR part 35, subparts A, B, J, K and R; and EPA's lead-based paint rules
DR
A
F
T
Page 350 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
(e.g., Repair, Renovation and Painting; Pre-Renovation Education; and Lead Training and
Certification (40 CFR part 745)).
Compliance with RFRA -- The grant will be conducted and administered in conformity with the
requirements of the Religious Freedom Restoration Act (42 U.S.C. 2000bb) and 24 CFR 5.109,
allowing the full and fair participation of faith-based entities.
Environmental Review -- It will comply with environmental review procedures and
requirements at 24 CFR part 58.
Compliance with Laws -- It will comply with applicable laws.
__________________________________ Signature of Authorized Official
_______________ Date
__________________________________ Title
City Manager
DR
A
F
T
Page 351 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
10. a. Name and Address of Lobbying Registrant:
9. Award Amount, if known:
$
* Street 1
* City State Zip
Street 2
* Last Name
Prefix * First Name Middle Name
Suffix
DISCLOSURE OF LOBBYING ACTIVITIES
Complete this form to disclose lobbying activities pursuant to 31 U.S.C.1352 OMB Number: 4040-0013
Expiration Date: 02/28/2025
1. * Type of Federal Action:
a. contract
b. grant
c. cooperative agreement
d. loan
e. loan guarantee
f. loan insurance
2. * Status of Federal Action:
a. bid/offer/application
b. initial award
c. post-award
3. * Report Type:
a. initial filing
b. material change
4. Name and Address of Reporting Entity:
Prime SubAwardee
* Name
* Street 1 Street 2
* City State Zip
Congressional District, if known:
5. If Reporting Entity in No.4 is Subawardee, Enter Name and Address of Prime:
6. * Federal Department/Agency:7. * Federal Program Name/Description:
CFDA Number, if applicable:
8. Federal Action Number, if known:
b. Individual Performing Services (including address if different from No. 10a)
Prefix * First Name Middle Name
* Street 1
* City State Zip
Street 2
11.Information requested through this form is authorized by title 31 U.S.C. section 1352. This disclosure of lobbying activities is a material representation of fact upon which
reliance was placed by the tier above when the transaction was made or entered into. This disclosure is required pursuant to 31 U.S.C. 1352. This information will be reported to
the Congress semi-annually and will be available for public inspection. Any person who fails to file the required disclosure shall be subject to a civil penalty of not less than
$10,000 and not more than $100,000 for each such failure.
* Last Name Suffix
* Signature:
Completed on submission to Grants.gov
Completed on submission to Grants.gov
*Name:Prefix * First Name Middle Name
* Last Name Suffix
Title:Telephone No.:Date:
Federal Use Only: Authorized for Local Reproduction
Standard Form - LLL (Rev. 7-97)
DR
A
F
T
Maria Kachadoorian
276 Fourth Ave.
Chula Vista CA 91910
Housing and Urban Developmeny Preservation and Reinvestment Initiative for Community Enhancement (PRICE)
N/A
N/A
N/A
N/A
N/A
N/A
Page 352 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
Applicant Address:276 Fourth Avenue
Bldg. A
Chula Vista, CA 91910
Category Detailed Description of Budget (for full grant period)
1. Personnel (Direct Labor)
Estimated
Hours
Rate per
Hour Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Position or Individual
Management Analyst II - CHIP 3,250 $40.00 $130,000 $130,000
Management Analyst II - CHIP 3,251 $40.00 $130,000 $130,000
Total Direct Labor Cost $260,000 $260,000
2. Fringe Benefits Rate (%)Base Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Management Analyst II - CHIP 25.00%$130,000 $32,500 $32,500
Management Analyst II - CHIP 125.00%$130,000 $32,500 $32,500
Total Fringe Benefits Cost $65,000 $65,000
Previous versions of HUD-424-CBW are obsolete.1 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 353 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
3. Travel
3a. Transportation - Local Private Vehicle Mileage Rate per Mile Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Trans - Local Private Vehicle
3b. Transportation - Airfare (show destination)Trips Fare Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Transportation - Airfare
3c. Transportation - Other Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Transportation - Other
3d. Per Diem or Subsistence (indicate location)Days Rate per Day Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Per Diem or Subsistence
Total Travel Cost
4. Equipment (Only items over $5,000
Depreciated value)Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Total Equipment Cost
Previous versions of HUD-424-CBW are obsolete.2 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 354 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
5. Supplies and Materials (Items under $5,000 Depreciated Value)
5a. Consumable Supplies Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Consumable Supplies
5b. Non-Consumable Materials Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Non-Consumable Materials
Total Supplies and Materials Cost
6. Consultants (Type)Days Rate per Day Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Total Consultants Cost
7. Contracts and Sub-Grantees (List individually)
7a. Contracts Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Contracts
7b. Sub-Grantees (List individually)Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Sub-Grantees
Total Contracts and Sub-Grantees Cost
Previous versions of HUD-424-CBW are obsolete.3 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 355 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
8. Construction Costs
8a. Administrative and legal expenses Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
City Attorney 50 300 $15,000 15,000.00$
Subtotal - Administrative and legal expenses
8b. Land, structures, rights-of way, appraisal, etc Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Land, structures, rights-of way, …
8c. Relocation expenses and payments Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Relocation expenses and payments
8d. Architectural and engineering fees Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Architectural and engineering fees
8e. Other architectural and engineering fees Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Other architectural and engineering fees
8f. Project inspection fees Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
HQS Inspection 60 375 $22,500 22,500.00$
Subtotal - Project inspection fees
Previous versions of HUD-424-CBW are obsolete.4 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 356 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
8g. Site work Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Site work
8h. Demolition and removal Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Demolition and removal
8i. Construction Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
CHIP 60 20000 $1,200,000 1,200,000.00$
Subtotal - Construction $1,200,000
8j. Equipment Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Equipment
8k. Contingencies Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Contingencies
8l. Miscellaneous Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Miscellaneous
Total Construction Costs $1,237,500
Previous versions of HUD-424-CBW are obsolete.5 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 357 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
9. Other Direct Costs Quantity Unit Cost Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Item
Total Other Direct Costs
Subtotal of Direct Costs
10. Indirect Costs Rate Base Estimated Cost HUD Share
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Type
Total Indirect Costs
Total Estimated Costs 1,562,500.00$
Previous versions of HUD-424-CBW are obsolete.6 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 358 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
form HUD-424-CBW
OMB Approval No. 2501-0017
Grant Application Detailed Budget Worksheet Expiration: 1/31/2026
Detailed Description of Budget
Analysis of Total Estimated Costs Estimated Cost Percent of Total
1 Personnel (Direct Labor)260,000.00 16.6%
2 Fringe Benefits 65,000.00 4.2%
3 Travel 0.00 0.0%
4 Equipment 0.00 0.0%
5 Supplies and Materials 0.00 0.0%
6 Consultants 0.00 0.0%
7 Contracts and Sub-Grantees 0.00 0.0%
8 Construction 1,237,500.00 79.2%
9 Other Direct Costs 0.00 0.0%
10 Indirect Costs 0.00 0.0%
Total:1,562,500.00 100.0%
Federal Share:
Match
(Expressed as a percentage of the
Federal Share):
Previous versions of HUD-424-CBW are obsolete.7 form HUD-424-CBW (2/2003)DR
A
F
T
Page 359 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item Discussion
This section should show the labor costs for all individuals supporting the grant program effort
(regardless of the source of their salaries). The hours and costs are for the full life of the grant. If
an individual is employed by a contractor or sub-grantee, their labor costs should not be shown
here.
Please include all labor costs that are associated with the proposed grant program, including
those costs that will be paid for with in-kind or matching funds.
Do not show fringe or other indirect costs in this section.
Please use the hourly labor cost for salaried employees (use 2080 hours per year or the value
your organization uses to perform this calculation). An employee working less than full time on
the grant should show the numbers of hours they will work on the grant.
2 - Fringe Benefits
Use the standard fringe rates used by your organization. You may use a single fringe rate (a
percentage of the total direct labor) or list each of the individual fringe charges. The spreadsheet
is set up to use the Total Direct Labor Cost as the base for the fringe calculation. If your
organization calculates fringe benefits differently, please use a different base and discuss how
you calculate fringe as a comment.
3 - Travel
3a - Transportation - Local Private Vehicle
If you plan on reimbursing staff for the use of privately owned vehicles or if you are required to
reimburse your organization for mileage charges, show your mileage and cost estimates in this
section.
Show the estimated cost of airfare required to support the grant program effort. Show the
destination and the purpose of the travel as well as the estimated cost of the tickets.
Each program notice of funding opportunity (NOFO) discusses the travel requirements that
should be listed here.
If you or are charged monthly by your organization for a vehicle for use by the grant program,
indicate those costs in this section.
Provide estimates for other transportation costs that may be incurred (taxi, etc.).
For travel which will require the payment of subsistence or per diem in accordance with your
organization’s policies. Indicate the location of the travel.
Each program NOFO discusses the travel requirements that should be listed here.
“Equipment” means tangible personal property (including information technology systems)
having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds
the lesser of the capitalization level established by the non-Federal entity for financial statement
purposes, or $5,000.
Each program NOFO describes what equipment may be purchased using grant funding.
“Supplies” means all tangible personal property other than those described in the definition of
equipment. A computing device is a supply if the acquisition cost is less than the lesser of the
capitalization level established by the non-Federal entity for financial statement purposes or
$5,000, regardless of the length of its useful life.
List the proposed supplies and materials as either Consumable Supplies or as Non-Consumable
Materials.
5a - Consumable Supplies List the consumable supplies you propose to purchase. General office or other common supplies
may be estimated using an anticipated consumption rate.
5b - Non-consumable materials List furniture, computers, printers, and other items that will not be consumed in use. Please list
the quantity and unit cost.
6 – Consultants Indicate the consultants you will use. Indicate the type of consultant (skills), the number of days
you expect to use them, and their daily rate.
List the contractors and sub-grantees that will help accomplish the grant effort. Examples of
contracts that should be shown here include contracts with Community Based Organizations;
liability insurance; and training and certification for contractors and workers.
If any contractor, sub-contractor, or sub-grantee is expected to receive over 10% of the total
Federal amount requested, a separate Grant Application Detailed Budget (Worksheet) should be
developed for that contractor or sub-grantee and the total amount of their proposed effort should
be shown as a single entry in this section.
Unless your proposed program will perform the primary grant effort with in-house employees
(which should be listed in section 1), the costs of performing the primary grant activities should
be shown in this section.
Types of activities which should be shown in this section:
· Contracts for all services
· Training for individuals not on staff
· Contracts with Community Based Organizations or Other Governmental
Organizations (note the 10% requirement discussed above)
· Insurance if your program will procure it separately
Please provide a short description of the activity the contractor or subgrantee will perform, if not
evident.
3c - Transportation - Other
3d - Per Diem or Subsistence
This form is to be used to provide detailed budget information regarding your proposed program. If your program requires you to provide program activity
information you should use a separate HUD-424-CBW to provide information related to each program activity. The detailed information provided on this form can
be summarized on the HUD-424-CB form by checking the “All Years” box at the top of the form and inputting the summary information.
1 - Personnel (Direct Labor)
5 - Supplies and Materials
4 – Equipment
7 - Contracts and Subgrantees
7a - Contracts
7b - Subgrantees
3b - Transportation - Airfare
Previous versions of HUD-424-CBW are obsolete.8 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 360 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8 – Construction Costs
8a – Administrative and legal expenses Enter estimated amounts needed to cover administrative expenses. Do not include costs that
are related to the normal functions of government.
8b – Land, structures, rights-of way, appraisal, etc.Enter estimated site and right(s)-of-way acquisition costs (this includes purchase, lease, and/or
easements).
8c – Relocation expenses and payments Enter estimated costs related to relocation advisory assistance, replacement housing, relocation
payments to displaced persons and businesses, etc.
8d – Architectural and engineering fees Enter estimated basic engineering fees related to construction (this includes start-up services
and preparation of project performance work plan).
8e – Other architectural and engineering fees Enter estimated engineering costs, such as surveys, tests, soil borings, etc.
8f – Project inspection fees Enter estimated engineering inspection costs.
8g – Site work Enter the estimated site preparation and restoration costs that are not included in the basic
construction contract.
8h – Demolition and removal Enter the estimated costs related to demolition activities.
8i – Construction Enter estimated costs of the construction contract.
8j - Equipment Enter estimated cost of office, shop, laboratory, safety equipment, etc. to be used at the facility, if
such costs are not included in the construction contract.
8k – Contingencies Enter any estimated contingency costs.
8l – Miscellaneous Enter estimated miscellaneous costs.
Other Direct Costs include a number of items that are not appropriate for other sections.
Other Direct Costs may include:
· Staff training
· Telecommunications
· Printing and postage
Relocation, if costs are paid directly by your organization (if relocation costs are paid by a
subgrantee, it should be reflected in Section 7)
Indirect costs (including Facilities and Administration costs) are those costs that have been
incurred for common or joint purposes. These costs benefit more than one cost objective and
cannot be readily identified with a particular final cost objective without effort disproportionate to
the results achieved.
Indicate your approved Indirect Cost Rate (if any) and calculate the indirect costs in accordance
with the terms of your approved indirect cost rate and enter the resulting amount. Also show the
applicable cost base amount and identify the proposed cost base type.
Total Estimated Costs Enter the grand total of all the applicable columns.
10 - Indirect Costs
The eight rightmost columns allow you to identify how the costs will be spread between the HUD Share and other contributors (including Match funds and
Program Income). This information will help the reviewers better understand your program and priorities.
9 - Other Direct Costs
Previous versions of HUD-424-CBW are obsolete.9 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 361 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
Applicant Address:276 Fourth Avenue
Bldg. A
Chula Vista, CA 91910
Category Detailed Description of Budget (for full grant period)
1. Personnel (Direct Labor)
Estimated
Hours
Rate per
Hour Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Position or Individual
Management Analyst II 4,000 $45.00 $180,000 $180,000
Management Analyst II 4,000 $45.00 $180,000 $180,000
Fiscal Office Specialist 3,000 $30.00 $90,000 $90,000
Total Direct Labor Cost $450,000 $450,000
2. Fringe Benefits Rate (%)Base Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Management Analyst II 25.00%$240,000 $60,000 $60,000
Management Analyst II 25.00%$240,000 $60,000 $60,000
Fiscal Office Specialist 25.00%$120,000 $30,000 $30,000
Total Fringe Benefits Cost $150,000 $150,000
Previous versions of HUD-424-CBW are obsolete.1 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 362 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
3. Travel
3a. Transportation - Local Private Vehicle Mileage
Rate per
Mile Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Trans - Local Private Vehicle
3b. Transportation - Airfare (show destination)Trips Fare Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Transportation - Airfare
3c. Transportation - Other Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Transportation - Other
3d. Per Diem or Subsistence (indicate location)Days
Rate per
Day Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Per Diem or Subsistence
Total Travel Cost
4. Equipment (Only items over $5,000
Depreciated value)Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Total Equipment Cost
Previous versions of HUD-424-CBW are obsolete.2 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 363 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
5. Supplies and Materials (Items under $5,000 Depreciated Value)
5a. Consumable Supplies Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Consumable Supplies
5b. Non-Consumable Materials Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Non-Consumable Materials
Total Supplies and Materials Cost
6. Consultants (Type)Days
Rate per
Day Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Total Consultants Cost
7. Contracts and Sub-Grantees (List individually)
7a. Contracts Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Contracts
7b. Sub-Grantees (List individually)Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Sub-Grantees
Total Contracts and Sub-Grantees Cost
Previous versions of HUD-424-CBW are obsolete.3 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 364 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
8. Construction Costs
8a. Administrative and legal expenses Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
City Attorney 50 300 $15,000 $15,000
Subtotal - Administrative and legal expenses $15,000 $15,000
8b. Land, structures, rights-of way, appraisal, etc Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Land, structures, rights-of way, …
8c. Relocation expenses and payments Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Relocation expenses and payments
8d. Architectural and engineering fees Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Start-up, Preperation, Inspection 2 78000 $156,000 $156,000
Subtotal - Architectural and engineering fees $156,000 $156,000
8e. Other architectural and engineering fees Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Electrical Permits 200 139 $27,800 $27,800
Plumbing Gas Permits 200 139 $27,800 $27,800
Sewer, Water, Storm Drains 10 6165 $61,650 $61,650
Subtotal - Other architectural and engineering fees $117,250 $117,250
8f. Project inspection fees Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Title 25 5 375 $1,875 $1,875
Subtotal - Project inspection fees $1,875
Previous versions of HUD-424-CBW are obsolete.4 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 365 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
8g. Site work Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Excavation and backfill, paving and installation 2 300000 $600,000 $600,000
Subtotal - Site work $600,000 $600,000
8h. Demolition and removal Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Pre-Demolition 2 5000 $10,000 $10,000
Demolition/Removal 2 20000 $40,000 $40,000
Subtotal - Demolition and removal $50,000 $50,000
8i. Construction Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Contractor: Net Profits/Labor/Materials 2 614000 $1,228,000 $1,228,000
Subtotal - Construction $1,228,000 $1,228,000
8j. Equipment Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Rental 2 15000 $30,000 $30,000
Subtotal - Equipment $30,000 $30,000
8k. Contingencies Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
10% Construction 2 100000 $200,000 $200,000
Subtotal - Contingencies $200,000 $200,000
8l. Miscellaneous Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Miscellaneous
Total Construction Costs $2,398,125 $2,398,125
Previous versions of HUD-424-CBW are obsolete.5 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 366 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
9. Other Direct Costs Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Marketing 7 250 $1,750 $1,750
Outreach 7 25 $175 $175
Total Other Direct Costs $1,925 $1,925
Subtotal of Direct Costs $1,925 $1,925
10. Indirect Costs Rate Base Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Type
Total Indirect Costs
Total Estimated Costs 3,000,050.00$
Previous versions of HUD-424-CBW are obsolete.6 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 367 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
form HUD-424-CBW
OMB Approval No. 2501-0017
Grant Application Detailed Budget Worksheet Expiration: 1/31/2026
Detailed Description of Budget
Analysis of Total Estimated Costs Estimated Cost Percent of Total
1 Personnel (Direct Labor)450,000.00 15.0%
2 Fringe Benefits 150,000.00 5.0%
3 Travel 0.00 0.0%
4 Equipment 0.00 0.0%
5 Supplies and Materials 0.00 0.0%
6 Consultants 0.00 0.0%
7 Contracts and Sub-Grantees 0.00 0.0%
8 Construction 2,398,125.00 79.9%
9 Other Direct Costs 1,925.00 0.1%
10 Indirect Costs 0.00 0.0%
Total:3,000,050.00 100.0%
Federal Share:
Match
(Expressed as a percentage of the
Federal Share):
Previous versions of HUD-424-CBW are obsolete.7 form HUD-424-CBW (2/2003)DR
A
F
T
Page 368 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item Discussion
This section should show the labor costs for all individuals supporting the grant program effort
(regardless of the source of their salaries). The hours and costs are for the full life of the grant. If
an individual is employed by a contractor or sub-grantee, their labor costs should not be shown
here.
Please include all labor costs that are associated with the proposed grant program, including
those costs that will be paid for with in-kind or matching funds.
Do not show fringe or other indirect costs in this section.
Please use the hourly labor cost for salaried employees (use 2080 hours per year or the value
your organization uses to perform this calculation). An employee working less than full time on
the grant should show the numbers of hours they will work on the grant.
2 - Fringe Benefits
Use the standard fringe rates used by your organization. You may use a single fringe rate (a
percentage of the total direct labor) or list each of the individual fringe charges. The spreadsheet
is set up to use the Total Direct Labor Cost as the base for the fringe calculation. If your
organization calculates fringe benefits differently, please use a different base and discuss how
you calculate fringe as a comment.
3 - Travel
3a - Transportation - Local Private Vehicle
If you plan on reimbursing staff for the use of privately owned vehicles or if you are required to
reimburse your organization for mileage charges, show your mileage and cost estimates in this
section.
Show the estimated cost of airfare required to support the grant program effort. Show the
destination and the purpose of the travel as well as the estimated cost of the tickets.
Each program notice of funding opportunity (NOFO) discusses the travel requirements that
should be listed here.
If you or are charged monthly by your organization for a vehicle for use by the grant program,
indicate those costs in this section.
Provide estimates for other transportation costs that may be incurred (taxi, etc.).
For travel which will require the payment of subsistence or per diem in accordance with your
organization’s policies. Indicate the location of the travel.
Each program NOFO discusses the travel requirements that should be listed here.
“Equipment” means tangible personal property (including information technology systems)
having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds
the lesser of the capitalization level established by the non-Federal entity for financial statement
purposes, or $5,000.
Each program NOFO describes what equipment may be purchased using grant funding.
“Supplies” means all tangible personal property other than those described in the definition of
equipment. A computing device is a supply if the acquisition cost is less than the lesser of the
capitalization level established by the non-Federal entity for financial statement purposes or
$5,000, regardless of the length of its useful life.
List the proposed supplies and materials as either Consumable Supplies or as Non-Consumable
Materials.
5a - Consumable Supplies List the consumable supplies you propose to purchase. General office or other common supplies
may be estimated using an anticipated consumption rate.
5b - Non-consumable materials List furniture, computers, printers, and other items that will not be consumed in use. Please list
the quantity and unit cost.
6 – Consultants Indicate the consultants you will use. Indicate the type of consultant (skills), the number of days
you expect to use them, and their daily rate.
List the contractors and sub-grantees that will help accomplish the grant effort. Examples of
contracts that should be shown here include contracts with Community Based Organizations;
liability insurance; and training and certification for contractors and workers.
If any contractor, sub-contractor, or sub-grantee is expected to receive over 10% of the total
Federal amount requested, a separate Grant Application Detailed Budget (Worksheet) should be
developed for that contractor or sub-grantee and the total amount of their proposed effort should
be shown as a single entry in this section.
Unless your proposed program will perform the primary grant effort with in-house employees
(which should be listed in section 1), the costs of performing the primary grant activities should
be shown in this section.
Types of activities which should be shown in this section:
· Contracts for all services
· Training for individuals not on staff
· Contracts with Community Based Organizations or Other Governmental
Organizations (note the 10% requirement discussed above)
· Insurance if your program will procure it separately
Please provide a short description of the activity the contractor or subgrantee will perform, if not
evident.
5 - Supplies and Materials
4 – Equipment
7 - Contracts and Subgrantees
7a - Contracts
7b - Subgrantees
3b - Transportation - Airfare
3c - Transportation - Other
3d - Per Diem or Subsistence
This form is to be used to provide detailed budget information regarding your proposed program. If your program requires you to provide program activity
information you should use a separate HUD-424-CBW to provide information related to each program activity. The detailed information provided on this form can
be summarized on the HUD-424-CB form by checking the “All Years” box at the top of the form and inputting the summary information.
1 - Personnel (Direct Labor)
Previous versions of HUD-424-CBW are obsolete.8 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 369 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8 – Construction Costs
8a – Administrative and legal expenses Enter estimated amounts needed to cover administrative expenses. Do not include costs that
are related to the normal functions of government.
8b – Land, structures, rights-of way, appraisal, etc.Enter estimated site and right(s)-of-way acquisition costs (this includes purchase, lease, and/or
easements).
8c – Relocation expenses and payments Enter estimated costs related to relocation advisory assistance, replacement housing, relocation
payments to displaced persons and businesses, etc.
8d – Architectural and engineering fees Enter estimated basic engineering fees related to construction (this includes start-up services
and preparation of project performance work plan).
8e – Other architectural and engineering fees Enter estimated engineering costs, such as surveys, tests, soil borings, etc.
8f – Project inspection fees Enter estimated engineering inspection costs.
8g – Site work Enter the estimated site preparation and restoration costs that are not included in the basic
construction contract.
8h – Demolition and removal Enter the estimated costs related to demolition activities.
8i – Construction Enter estimated costs of the construction contract.
8j - Equipment Enter estimated cost of office, shop, laboratory, safety equipment, etc. to be used at the facility, if
such costs are not included in the construction contract.
8k – Contingencies Enter any estimated contingency costs.
8l – Miscellaneous Enter estimated miscellaneous costs.
Other Direct Costs include a number of items that are not appropriate for other sections.
Other Direct Costs may include:
· Staff training
· Telecommunications
· Printing and postage
Relocation, if costs are paid directly by your organization (if relocation costs are paid by a
subgrantee, it should be reflected in Section 7)
Indirect costs (including Facilities and Administration costs) are those costs that have been
incurred for common or joint purposes. These costs benefit more than one cost objective and
cannot be readily identified with a particular final cost objective without effort disproportionate to
the results achieved.
Indicate your approved Indirect Cost Rate (if any) and calculate the indirect costs in accordance
with the terms of your approved indirect cost rate and enter the resulting amount. Also show the
applicable cost base amount and identify the proposed cost base type.
Total Estimated Costs Enter the grand total of all the applicable columns.
10 - Indirect Costs
The eight rightmost columns allow you to identify how the costs will be spread between the HUD Share and other contributors (including Match funds and
Program Income). This information will help the reviewers better understand your program and priorities.
9 - Other Direct Costs
Previous versions of HUD-424-CBW are obsolete.9 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 370 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
Applicant Address:276 Fourth Avenue
Bldg. A
Chula Vista, CA 91910
Category Detailed Description of Budget (for full grant period)
1. Personnel (Direct Labor)
Estimated
Hours Rate per Hour Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Position or Individual
Management Analyst II 10,400 $45.00 $468,000
Management Analyst II 9,343 $45.00 $420,418
Total Direct Labor Cost $888,418
2. Fringe Benefits Rate (%)Base Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Management Analyst II 25.00%$468,000 $117,000
Management Analyst II 25.00%$420,418 $105,105
Total Fringe Benefits Cost $222,105
Previous versions of HUD-424-CBW are obsolete.1 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 371 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
3. Travel
3a. Transportation - Local Private Vehicle Mileage Rate per Mile Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Trans - Local Private Vehicle
3b. Transportation - Airfare (show destination)Trips Fare Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Transportation - Airfare
3c. Transportation - Other Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Transportation - Other
3d. Per Diem or Subsistence (indicate location)Days Rate per Day Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Per Diem or Subsistence
Total Travel Cost
4. Equipment (Only items over $5,000
Depreciated value)Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Total Equipment Cost
Previous versions of HUD-424-CBW are obsolete.2 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 372 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
5. Supplies and Materials (Items under $5,000 Depreciated Value)
5a. Consumable Supplies Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Consumable Supplies
5b. Non-Consumable Materials Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Non-Consumable Materials
Total Supplies and Materials Cost
6. Consultants (Type)Days Rate per Day Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Total Consultants Cost
7. Contracts and Sub-Grantees (List individually)
7a. Contracts Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Contracts
7b. Sub-Grantees (List individually)Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Sub-Grantees
Total Contracts and Sub-Grantees Cost
Previous versions of HUD-424-CBW are obsolete.3 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 373 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
8. Construction Costs
8a. Administrative and legal expenses Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Administrative and legal expenses
8b. Land, structures, rights-of way, appraisal, etc Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Manuficatured/Mobile Homes 30 $130,000.00 $3,900,000.00
Subtotal - Land, structures, rights-of way, …$3,900,000
8c. Relocation expenses and payments Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Temporary Resident Relocation 30 $1,050.00 $31,500.00
Subtotal - Relocation expenses and payments $31,500
8d. Architectural and engineering fees Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Set-up/Utility/Structure securing 30 5000 $150,000
Subtotal - Architectural and engineering fees $150,000
8e. Other architectural and engineering fees Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Other architectural and engineering fees
8f. Project inspection fees Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
MH Inspection 30 375 $11,250
MH Permits 30 350 $10,500
Subtotal - Project inspection fees $21,750
Previous versions of HUD-424-CBW are obsolete.4 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 374 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
8g. Site work Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Site work
8h. Demolition and removal Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Existing MH 30 7500 $225,000
Subtotal - Demolition and removal $225,000
8i. Construction Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Construction
8j. Equipment Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Equipment
8k. Contingencies Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Subtotal - Contingencies
8l. Miscellaneous Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
MH Delivery 30 $10,000.00 $300,000
Subtotal - Miscellaneous $300,000
Total Construction Costs $4,628,250
Previous versions of HUD-424-CBW are obsolete.5 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 375 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Grant Application Detailed Budget Worksheet OMB Approval No. 2501-0017
Expiration: 1/31/2026
Applicant Name:City of Chula Vista
9. Other Direct Costs Quantity Unit Cost Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Item
Total Other Direct Costs
Subtotal of Direct Costs
10. Indirect Costs Rate Base Estimated Cost HUD Share
Applicant
Match
Other HUD
Funds
Other
Federal
Share
State Share Local/Tribal
Share
Other Program
Income
Type
Total Indirect Costs
Total Estimated Costs 5,738,773.00$
Previous versions of HUD-424-CBW are obsolete.6 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 376 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
form HUD-424-CBW
OMB Approval No. 2501-0017
Grant Application Detailed Budget Worksheet Expiration: 1/31/2026
Detailed Description of Budget
Analysis of Total Estimated Costs Estimated Cost Percent of Total
1 Personnel (Direct Labor)888,418.00 15.5%
2 Fringe Benefits 222,105.00 3.9%
3 Travel 0.00 0.0%
4 Equipment 0.00 0.0%
5 Supplies and Materials 0.00 0.0%
6 Consultants 0.00 0.0%
7 Contracts and Sub-Grantees 0.00 0.0%
8 Construction 4,628,250.00 80.6%
9 Other Direct Costs 0.00 0.0%
10 Indirect Costs 0.00 0.0%
Total:5,738,773.00 100.0%
Federal Share:
Match
(Expressed as a percentage of the
Federal Share):
Previous versions of HUD-424-CBW are obsolete.7 form HUD-424-CBW (2/2003)DR
A
F
T
Page 377 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item Discussion
This section should show the labor costs for all individuals supporting the grant program effort
(regardless of the source of their salaries). The hours and costs are for the full life of the grant. If
an individual is employed by a contractor or sub-grantee, their labor costs should not be shown
here.
Please include all labor costs that are associated with the proposed grant program, including
those costs that will be paid for with in-kind or matching funds.
Do not show fringe or other indirect costs in this section.
Please use the hourly labor cost for salaried employees (use 2080 hours per year or the value
your organization uses to perform this calculation). An employee working less than full time on
the grant should show the numbers of hours they will work on the grant.
2 - Fringe Benefits
Use the standard fringe rates used by your organization. You may use a single fringe rate (a
percentage of the total direct labor) or list each of the individual fringe charges. The spreadsheet
is set up to use the Total Direct Labor Cost as the base for the fringe calculation. If your
organization calculates fringe benefits differently, please use a different base and discuss how
you calculate fringe as a comment.
3 - Travel
3a - Transportation - Local Private Vehicle
If you plan on reimbursing staff for the use of privately owned vehicles or if you are required to
reimburse your organization for mileage charges, show your mileage and cost estimates in this
section.
Show the estimated cost of airfare required to support the grant program effort. Show the
destination and the purpose of the travel as well as the estimated cost of the tickets.
Each program notice of funding opportunity (NOFO) discusses the travel requirements that
should be listed here.
If you or are charged monthly by your organization for a vehicle for use by the grant program,
indicate those costs in this section.
Provide estimates for other transportation costs that may be incurred (taxi, etc.).
For travel which will require the payment of subsistence or per diem in accordance with your
organization’s policies. Indicate the location of the travel.
Each program NOFO discusses the travel requirements that should be listed here.
“Equipment” means tangible personal property (including information technology systems)
having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds
the lesser of the capitalization level established by the non-Federal entity for financial statement
purposes, or $5,000.
Each program NOFO describes what equipment may be purchased using grant funding.
“Supplies” means all tangible personal property other than those described in the definition of
equipment. A computing device is a supply if the acquisition cost is less than the lesser of the
capitalization level established by the non-Federal entity for financial statement purposes or
$5,000, regardless of the length of its useful life.
List the proposed supplies and materials as either Consumable Supplies or as Non-Consumable
Materials.
5a - Consumable Supplies List the consumable supplies you propose to purchase. General office or other common supplies
may be estimated using an anticipated consumption rate.
5b - Non-consumable materials List furniture, computers, printers, and other items that will not be consumed in use. Please list
the quantity and unit cost.
6 – Consultants Indicate the consultants you will use. Indicate the type of consultant (skills), the number of days
you expect to use them, and their daily rate.
List the contractors and sub-grantees that will help accomplish the grant effort. Examples of
contracts that should be shown here include contracts with Community Based Organizations;
liability insurance; and training and certification for contractors and workers.
If any contractor, sub-contractor, or sub-grantee is expected to receive over 10% of the total
Federal amount requested, a separate Grant Application Detailed Budget (Worksheet) should be
developed for that contractor or sub-grantee and the total amount of their proposed effort should
be shown as a single entry in this section.
Unless your proposed program will perform the primary grant effort with in-house employees
(which should be listed in section 1), the costs of performing the primary grant activities should
be shown in this section.
Types of activities which should be shown in this section:
· Contracts for all services
· Training for individuals not on staff
· Contracts with Community Based Organizations or Other Governmental
Organizations (note the 10% requirement discussed above)
· Insurance if your program will procure it separately
Please provide a short description of the activity the contractor or subgrantee will perform, if not
evident.
5 - Supplies and Materials
4 – Equipment
7 - Contracts and Subgrantees
7a - Contracts
7b - Subgrantees
3b - Transportation - Airfare
3c - Transportation - Other
3d - Per Diem or Subsistence
This form is to be used to provide detailed budget information regarding your proposed program. If your program requires you to provide program activity
information you should use a separate HUD-424-CBW to provide information related to each program activity. The detailed information provided on this form can
be summarized on the HUD-424-CB form by checking the “All Years” box at the top of the form and inputting the summary information.
1 - Personnel (Direct Labor)
Previous versions of HUD-424-CBW are obsolete.8 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 378 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8 – Construction Costs
8a – Administrative and legal expenses Enter estimated amounts needed to cover administrative expenses. Do not include costs that
are related to the normal functions of government.
8b – Land, structures, rights-of way, appraisal, etc.Enter estimated site and right(s)-of-way acquisition costs (this includes purchase, lease, and/or
easements).
8c – Relocation expenses and payments Enter estimated costs related to relocation advisory assistance, replacement housing, relocation
payments to displaced persons and businesses, etc.
8d – Architectural and engineering fees Enter estimated basic engineering fees related to construction (this includes start-up services
and preparation of project performance work plan).
8e – Other architectural and engineering fees Enter estimated engineering costs, such as surveys, tests, soil borings, etc.
8f – Project inspection fees Enter estimated engineering inspection costs.
8g – Site work Enter the estimated site preparation and restoration costs that are not included in the basic
construction contract.
8h – Demolition and removal Enter the estimated costs related to demolition activities.
8i – Construction Enter estimated costs of the construction contract.
8j - Equipment Enter estimated cost of office, shop, laboratory, safety equipment, etc. to be used at the facility, if
such costs are not included in the construction contract.
8k – Contingencies Enter any estimated contingency costs.
8l – Miscellaneous Enter estimated miscellaneous costs.
Other Direct Costs include a number of items that are not appropriate for other sections.
Other Direct Costs may include:
· Staff training
· Telecommunications
· Printing and postage
Relocation, if costs are paid directly by your organization (if relocation costs are paid by a
subgrantee, it should be reflected in Section 7)
Indirect costs (including Facilities and Administration costs) are those costs that have been
incurred for common or joint purposes. These costs benefit more than one cost objective and
cannot be readily identified with a particular final cost objective without effort disproportionate to
the results achieved.
Indicate your approved Indirect Cost Rate (if any) and calculate the indirect costs in accordance
with the terms of your approved indirect cost rate and enter the resulting amount. Also show the
applicable cost base amount and identify the proposed cost base type.
Total Estimated Costs Enter the grand total of all the applicable columns.
9 - Other Direct Costs
10 - Indirect Costs
The eight rightmost columns allow you to identify how the costs will be spread between the HUD Share and other contributors (including Match funds and
Program Income). This information will help the reviewers better understand your program and priorities.
Previous versions of HUD-424-CBW are obsolete.9 form HUD-424-CBW (2/2003)
DR
A
F
T
Page 379 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ATTACHMENT H
Summary of Comments Received on Published Application
(to be inserted after public review period)
DR
A
F
T
Page 380 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 7.3 Public Hearing:
FY2023 Preservation and Reinvestment Initiative for
Community Enhancement (PRICE) Application
Presented by:
Mark Barnard,Management Analyst II
Carlos Rodriguez, Management Analyst II
Page 381 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS
SERVICES PRICE Funding
•Designed to help cities preserve
manufactured housing
communities
•$235 Million available in a new
competitive funding
opportunity
•25 awards to local governments
Page 382 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS
SERVICES Chula Vista’s Need
•31 Mobilehome parks
•52% Senior Parks
•Mobilehome parks are
primarily located in
low-income areas
Page 383 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS
SERVICES PRICE Application Target Area
•Census tract 125.01
•Racially/Ethnically
Concentrated Area of
Poverty (R/ECAP)
•6 mobilehome parks
comprising more than
600 manufactured
housing units
Page 384 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS
SERVICES PRICE Request
Proposed
Activities:
1.Expansion of the
Community Housing
Program (CHIP);
2.Replace manufactured
housing units built prior
to 1976; and
3.Offer forgivable loans for
infrastructure and
facilities improvements.
Page 385 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
HOUSING &
HOMELESS
SERVICES
$100,000 -$120,000 per year
Mobilehome (80%)
o $10,000 per unit (maximum)
o 8 –10 units per year
Single-family residences (20%)
o $24,999 per residence
(maximum)
o 1-2 homes per year
Requested Amount: $1,562,500
$1,200,000 for 3 years
o 60 units (20 per year)
o $20,000 per unit (maximum)
$362,500 for 5 years
o Legal Fees
o Administration (Staff Time)
o HQS Inspections
o Marketing
1. Community Housing Improvement Program
(CHIP)
MATCHING/CURRENT
FUNDING
PRICE REQUESTED
FUNDING
Page 386 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS
SERVICES
Requested Amount: $5,738,773
$4,628,250 to replace manufactured housing
units built before 1976
o Delivery and Replacement of 30 units
o Resident Relocation (if needed)
o Demolition and Removal
o Inspections/Permits
o Set-up/Utility Connection
$1,110,523 for Staff Administration (5 years)
2. Manufactured Home Replacement
Page 387 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS
SERVICES
Requested Amount: $3,000,050
Forgivable loans to owners of mobilehome
parks for infrastructure and facilities
improvements
•Examples:
o Sewer/waterline upgrades
o Park Utility Conversion
o Broadband Deployment/Improvement
o Hazard Risk Mitigation
o Common area improvements
•Outreach initiative to assess park owners'
interest and needs
3. Infrastructure and Facilities Improvement
Page 388 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
HOUSING &
HOMELESS SERVICES
Public Hearing
FY23
PRICE
APPLICATION
$10,301,323
Page 389 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 0 4 P a g e | 1
May 28, 2024
ITEM TITLE
Reserve Policy: Consolidate Various Council Policies into a Citywide Reserve Policy and Repeal Various City
Council Policies Related to Reserves
Report Number: 24-0089
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
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 repealing various City Council Policies related to reserves, amending City Council Policy
220-03 to serve as a consolidated citywide reserve policy, and renaming City Council Policy 220-03 to
Citywide Reserve Policy – Fiscal Health Plan.
SUMMARY
The City currently has several policies that set reserve levels in various funds, City staff recommends
consolidation of the various reserve policies into a single Citywide Reserve Policy. In addition, City staff has
explored potential revisions to the City’s existing Pension & OPEB (Other Post-Employment Benefits)
Reserve Fund Policy to support several objectives, including: (1) long-term management of the City’s ongoing
pension liabilities; (2) effective allocation of budgeted surplus savings; (3) adequate funding of various
reserves and (4) mitigation of future pension and OPEB cost increases. City staff recommends consideration
of these policy adjustments and related analysis.
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 the proposed activity consists of a governmental
Page 390 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
fiscal/administrative activity which does not result in a physical change in the environment. Therefore,
pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable
DISCUSSION
The City currently has several policies that address reserves in various funds. City staff would like to
consolidate the various reserve policies into a single policy. This will standardize the existing policies,
streamline review and future updates to the policy.
Citywide Reserve Policy updates:
Establish a Citywide Reserve Policy to consolidate existing separate policies into a single, standalone policy
through the following actions:
Rename: 220-03 General Fund Reserves – Fiscal Health Plan to Citywide Reserve Policy– Fiscal Health
Plan
Combine the following existing policies into the new Citywide Reserve Policy:
o 220-04 Sewer Service Revenue Fund Reserve Policy
o 220-09 Pension & OPEB Reserve Fund
o 220-10 Measure A Reserve Fund Policy
o 220-11 Ambulance Transport System Enterprise Fund Reserve Policy
Repeal the existing reserve policies that have been consolidated into the new Citywide Reserve Policy:
o 220-04 Sewer Service Revenue Fund Reserve Policy
o 220-09 Pension & OPEB Reserve Fund
o 220-10 Measure A Reserve Fund Policy
o 220-11 Ambulance Transport System Enterprise Fund Reserve Policy
Proposed General Fund Reserve Policy Updates
In November 2020, the City Council amended Council Policy 220-03 General Fund Reserves – Fiscal Health
Plan, with the adoption of Pension & OPEB Reserve Fund Policy No. 220-09. Staff has reviewed the current
policy and is recommending two changes.
Modify Catastrophic Event Reserve: Establish a minimum reserve level of 3% as compared to a
recommended reserve level of 3%.
Modify Calculation of General Fund Reserve Level: Replace the following year’s Adopted Budget with the
prior year’s Adopted Budget as the basis for calculation of General Fund Reserve level. This change will allow
the City to calculate and include the contribution necessary to maintain minimum reserve levels in the annual
operating budget, ensuring the General Fund reserve levels are maintained once the minimum levels are
achieved.
Page 391 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
Proposed Pension & OPEB Reserve Fund Policy Updates
The City entered into an agreement with NHA Advisors LLC (NHA), who served as the City’s Financial Advisor
for the issuance of the 2021 pension obligation bonds (POB), to evaluate the City’s pension related policies
and other fiscal considerations. As a result of NHA’s analysis and consultation, staff is recommending several
updates to the Pension & OPEB Reserve Policy that are expected to result in financial savings, thereby
reducing ongoing operating costs of the City.
In November 2020, the City adopted a Pension & OPEB Reserve Fund Policy, prior to the issuance of $350
million of POBs in February 2021. The policy established guidelines for managing the City’s Section 115
Trust, POB Bond Call, Other Post-Employment Benefits (OPEB) reserves, including those related to the
allocation of portions of future savings from a POB issuance. These guidelines were intended to facilitate the
management and mitigation of future pension cost increases.
As a result of the 2021 POB low interest rates of 2.54%, the City programmed significant annual savings from
the bond issue toward numerous reserves, in alignment with the policies. However, as CalPERS investment
returns have seen volatility in recent years, the City is currently managing a new $85 million unfunded
accrued liability (UAL) as of the most recent CalPERS valuation estimates for June 30, 2022. This was the
result of a negative 7.5% CalPERS investment return in fiscal year 2021-22. The City’s UAL is projected to
increase further to approximately $100 million based on the fiscal year 2022-23 6.1% CalPERS investment
returns.
The UAL represents the shortfall/gap between what is needed to pay retiree benefits versus the value of
current assets the City maintains with CalPERS. Annual payments made to CalPERS to amortize the UAL are
forecast to increase rapidly over the next 5 years: from $3.1 million in fiscal year 2024-25 to $11.4 million in
fiscal year 2028-29. The approximate $100 million UAL is not required to be repaid all at once but is
amortized over a period (about 20 years, currently) at an interest rate of 6.8%. Pension cost increases are
the largest financial challenge facing most cities throughout California and are primarily due to factors
outside of the cities’ control, namely assumption changes made by CalPERS and below average investment
returns.
In addition to the UAL, the City also pays debt service on the 2021 POB. While the City still projects significant
financial benefit from issuing the 2021 POB, the City will need to prepare to manage the annual payments
associated with new UAL balances moving forward. The chart below provides a current snapshot of the City’s
projected UAL, POB and General Fund-allocable debt payments in relation to estimated total UAL & General
Fund debt payments had the City not issued the POB (depicted in the orange, dotted line).
Page 392 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 4
The City’s current Pension & OPEB Reserve Fund policy establishes funding mechanisms and priority of flows
of funds for multiple distinct reserve accounts, as shown in the graphic below.
Current Pension & OPEB Reserve Fund Policy: Funding Mechanism for POB Net Savings
*POB Net Savings is defined as 75% of the net annual savings generated by the issuance of the POBs.
Page 393 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 5
Chula Vista’s Proposed Pension & OPEB Reserve Fund Policy Adjustments:
Modify Pension Reserve Fund Calculation: Utilize the same calculation methodology for the Pension
Reserve Fund that is used for the General Fund Operating Reserve (15% of the General Fund’s Operating
Expenditures).
Authorized Use of Pension Reserve Fund, Bond Call Fund, and OPEB Reserves: Reserve usage will
require approval of four/fifths (4/5) vote of the City Council.
Update funding allocation of POB Net Savings as follows:
Annual UAL Payment to CalPERS: First allocate POB Net Savings to the City’s annual UAL
payment to CalPERS to minimize the fiscal impact of the annual increases in pension costs.
Maintain Pension Reserve Fund Level: Remaining POB Net Savings will be used to maintain
the minimum reserve level of the Pension Reserve Fund.
Implement Annual Additional Discretionary Payments (ADPs) to CalPERS from POB Net
Savings: After fully funding the Pension Reserve Fund, the City should consider utilizing
remaining POB Net Savings to make ADPs to CalPERS to reduce the UAL balance. This has the
benefits of 1) mitigating the projected annual increase in UAL payments, 2) achieving greater
cash flow savings than redeeming a portion of the 2021 POB, and 3) increasing the City’s pension
plans’ funded ratios to target levels (i.e., up to 95%). Additional POB Net Savings would flow
through to the Bond Call Fund as currently structured.
Expand Scope of Bond Call Fund: Given the low interest rates achieved by the 2021 POB, it is
not necessarily the City’s most economical debt to refinance or pay down. Expanding the scope
of the reserve to encompass higher interest rate City/General-Fund debt, and other General Fund
debt may allow the City to 1) increase financial benefit from intended interest cost savings, and
2) pay down outstanding debt sooner than allowable for the 2021 POB (i.e., 2031 par call).
Allocate 75% of all remaining POB Net Savings funds to Bond Call Fund: Deposit remaining
POB Net Savings earnings after funding ADP to CalPERS to the Bond Call Fund.
Allocate 25% of all remaining POB Net Savings funds to OPEB Reserve Fund: Deposit
remaining POB Net Savings earnings after funding ADP to CalPERS to the OPEB Reserve Fund.
Once 75% funding of outstanding OPEB liability is achieved, all remaining Net Annual Savings
funds will be deposited into the Bond Call Fund.
Page 394 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 6
Proposed Pension & OPEB Reserve Fund Policy: Funding Mechanism for POB Net Savings.
*POB Net Savings is defined as 75% of the net annual savings generated by the issuance of the POBs.
Page 395 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 7
Current Pension & OPEB Reserve Fund Policy: Funding Mechanism for Surplus Funds
Update funding allocation of year-end Surplus Funds as follows:
Maintain Reserve levels: Surplus Funds will first be used to maintain the minimum reserve
levels of the General Fund Reserves and Pension Reserve fund.
Expand Scope of Bond Call Fund: Given the low interest rates achieved by the 2021 POB, it is
not necessarily the City’s most economical debt to refinance or pay down. Expanding the scope
of the reserve to encompass higher interest rate City/General-Fund debt, and other General Fund
debt may allow the City to 1) increase financial benefit from intended interest cost savings, and
2) pay down outstanding debt sooner than allowable for the 2021 POB (i.e., 2031 par call).
Allocate 75% of all remaining Surplus Funds to Bond Call Fund: Deposit remaining Surplus
Funds earnings after funding minimum General Fund Reserves and Pension Reserve Fund to the
Bond Call Fund.
Allocate 25% of all remaining Surplus Funds to OPEB Reserve Fund: Deposit remaining
Surplus Funds earnings after funding minimum General Fund Reserves and Pension Reserve
Page 396 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 8
Fund to the OPEB Reserve Fund. Once 75% funding of outstanding OPEB liability is achieved, all
remaining Surplus Funds will be deposited into the Bond Call Fund.
Remaining Surplus: Remaining Surplus funds will be split 75% to the Bond Call Fund and 25%
to the OPEB Reserve Fund, if both are fully funded then any surplus will be added to the General
Fund Operating Reserve.
Updated Pension & OPEB Reserve Fund Policy: Funding Mechanism for Surplus Funds
Preliminary Analysis
Two funding scenarios have been prepared to illustrate the potential savings associated with the proposed
reserve policy change. The first scenario reflects the status quo policy implementation and is estimated to
result in savings of just under $12 million. The second scenario reflects the implementation of ADPs to reach
a funded ratio target of 95% for each plan, resulting in estimated savings of just under $33 million, an
increase in savings of more than $21 million. Potential net savings for each scenario are summarized below.
Net Savings Comparison
Scenario #: #1 Status Quo #2 Proposed Difference
Gross Savings: $41,574,933 $80,404,818 $38,829,885
Funds Used: ($29,781,632) ($47,464,284) ($17,682,652)
Net Savings: $11,793,301 $32,940,534 $21,147,233
Page 397 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 9
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
Implementation of the proposed policy will allow the City to fully fund and maintain adequate General Fund
reserves.
ONGOING FISCAL IMPACT
Implementation of the proposed policy as outlined in Scenario #2 may reduce scheduled UAL payments
beginning in fiscal year 2025-26, should any ADPs be made to CalPERS in July 2024 or future years. Any
additional funds in the Bond Call Fund may be used to reduce future debt obligations thereby reducing
ongoing operational expenses of the General Fund.
ATTACHMENTS
1. Redline version of Council Policy
Staff Contact: Sarah Schoen, Director of Finance/Treasurer
Adrian Del Rio, Assistant Director of Finance.
Page 398 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA REPEALING CITY COUNCIL POLICY 220-04
SEWER SERVICE REVENUE FUND RESERVE POLICY, 220-
09 PENSION & OPEB RESERVE FUND, 220-10 MEASURE A
RESERVE POLICY, AND 220-11 AMBULANCE TRANSPORT
SYSTEM ENTERPRISE FUND RESERVE POLICY,
AMENDING CITY COUNCIL POLICY 220-03 TO SERVE AS A
CONSOLIDATED CITYWIDE RESERVE POLICY; AND
RENAMING CITY COUNCIL POLICY 220-03 TO CITYWIDE
RESERVE POLICY – FISCAL HEALTH PLAN
WHEREAS, public entities accumulate and maintain adequate reserves to help ensure both
financial stability and the ability to provide core services during difficult times; and
WHEREAS, sufficient reserves create financial stability resulting in increased credit
quality and allow the public entity to better weather downturns in the economy and the impacts of
negative events, both major and minor; and
WHEREAS, the establishment of prudent financial reserves is important to ensure the long-
term fiscal health of the City; and
WHEREAS, the Government Finance Officers Association (GFOA), an international
organization that promotes the professional financial management of governments for the public
interest, recommends that governments formally adopt reserve policies that govern the amount of
resources to be held in reserve and conditions under which reserves can be used; and
WHEREAS, GFOA recognizes that each government’s situation is unique, and reserve
policies should be developed based upon its own specific circumstances; and
WHEREAS, the City of Chula Vista has several City Council Policies that address reserves
in various funds; and
WHEREAS, City Council Policy 220-03 Citywide Reserve Policy will consolidate various
reserve policies into a single citywide reserve policy in order to standardize existing policies,
streamline review and future updates to the policy; and
WHEREAS, staff recommends amendments to the General Fund Reserve Policy, including
the establishment of a minimum reserve level of 3% for the Catastrophic Event Reserve and
modifications to the calculation of the General Fund Reserve level; and
WHEREAS, staff recommends amendments to the Pension & OPEB Reserve Fund Policy,
including modifications to the calculation of the Pension Reserve Fund level, authorized use and
funding allocation of the Pension Reserve Fund, Bond Call Fund, and OPEB Reserve Fund; and
Page 399 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No.
Page 2
WHEREAS, staff recommends renaming City Council Policy 220-03 General Fund
Reserves – Fiscal Health Plan to Citywide Reserve Policy – Fiscal Health Plan; and
WHEREAS, staff recommends consolidating the following existing City Council Policies
into City Council Policy 220-03 Citywide Reserve Policy– Fiscal Health Plan as set forth in
Exhibit 1 to this resolution:
220-04 Sewer Service Revenue Fund Reserve Policy
220-09 Pension & OPEB Reserve Fund
220-10 Measure A Reserve Fund Policy
220-11 Ambulance Transport System Enterprise Fund Reserve Policy; and
WHEREAS, staff recommends repealing the following existing policies:
220-04 Sewer Service Revenue Fund Reserve Policy
220-09 Pension & OPEB Reserve Fund
220-10 Measure A Reserve Fund Policy
220-11 Ambulance Transport System Enterprise Fund Reserve Policy; and
WHEREAS, the Office of the City Attorney has prepared this resolution based on the
information provided by City staff with the understanding that this information is complete, true,
and accurate; and
WHEREAS, staff recommends amending City Council Policy 220-03 Citywide Reserve
Policy– Fiscal Health Plan to reflect the changes described in Exhibit 1 to this resolution attached
hereto and incorporated herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it:
1. Renames City Council Policy 220-03 General Fund Reserves – Fiscal Health Plan to
Citywide Reserve Policy – Fiscal Health Plan.
2. Amends City Council Policy 220-03 Citywide Reserve Policy – Fiscal Health Plan and
consolidates the following existing City Council policies into one policy, as set forth in
Exhibit 1 to this resolution, attached hereto and incorporated herein, with such changes as
may be required or approved by City Attorney:
o 220-04 Sewer Service Revenue Fund Reserve Policy
o 220-09 Pension & OPEB Reserve Fund
o 220-10 Measure A Reserve Fund Policy
o 220-11 Ambulance Transport System Enterprise Fund Reserve Policy.
3. Repeals City Council Policy 220-04 Sewer Service Revenue Fund Reserve Policy, City
Council Policy 220-09 Pension & OPEB Reserve Fund, City Council Policy 220-10
Page 400 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Resolution No.
Page 3
Measure A Reserve Fund Policy, and City Council Policy 220-11 Ambulance Transport
System Enterprise Fund Reserve Policy.
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/ Treasurer City Attorney
Page 401 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
1 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
BACKGROUND:
Public entities purposely accumulate and then maintain adequate reserves to help ensure both financial stability
and the continued ability to provide core services during in difficult times. Sufficient reserves create financial
stability resulting in increased credit quality and allow the public entity to better weather downturns in the
economy and the impacts of negative events, both major and minor. Properly funded reserves allow for the
continued maintenance of property, the replenishment of vehicles and equipment, and payment of expenses
beyond the amount of the funds available for a single fiscal year. The establishment of prudent financial reserves
is important to ensure the long-term fiscal health of the City.
The Government Finance Officers Association (GFOA), an international organization that promotes the
professional financial management of governments for the public interest, recommends that governments
formally adopt reserve policies that govern the amount of resources to be held in reserve and conditions under
which reserves can be used. GFOA recognizes that each government’s situation is unique, and the reserve policies
should be developed based upon its own specific circumstances.
PURPOSE:
The purpose of this policy is to establish a citywide reserve policy for:
Establishing reserves, reserve levels, and methodology for calculating reserves for the General Fund and
other funds
Use of reserves and the process of replenishment of any used reserves
POLICY:
General Fund Reserve Policy
The City’s General Fund is the primary operating fund of the City and source of funding for core services such
as police, fire, public works, and recreation. The General Fund is used to account for the general operations of
the City. It is used to account for all financial resources, except those required to be accounted for in another
fund.
The General Fund Reserve policy is established to ensure that the City’s finances are managed in a manner which
will (1) continue to provide for the delivery of quality services, (2) maintain and enhance service delivery as the
community grows in accordance with the General Plan, (3) minimize or eliminate the need to raise taxes and fees
because of temporary revenue shortfalls, and (4) establish the reserves necessary to meet known and unknown
future obligations and ability to respond to unexpected opportunities.
Page 402 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
2 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Fiscal stability is an important factor in operating a City. Establishing certain financial reserves would protects
the City against unexpected interruptions in revenues, vulnerability to Federal or State actions, adverse economic
conditions, unpredictable one-time costs, and exposure to natural disasters and emergencies.
There are additional benefits to establishing a minimum General Fund reserve. Credit rating agencies carefully
monitor levels of reserves in a government’s General Fund to evaluate a government’s continued
creditworthiness. A higher credit rating results in savings to the taxpayer when the City issues debt or participates
in short-term borrowing. Finally, reserve levels are a crucial consideration in long-term financial planning.
The Government Finance Officers Association (GFOA), an international organization that promotes the
professional financial management of governments for the public interest, recommends maintaining a minimum
unreserved fund balance (reserves) in the General Fund of no less than 5% to 15% of general fund operating
revenues, or no less than one to two months of regular general fund operating expenditures. A government’s
particular situation may require reserve levels of unreserved fund balance in the general fund significantly in
excess of these recommended minimum levels. Cities with higher reserve levels are better positioned to protect
public services during economic downturns. GFOA recommends that in establishing a policy governing the level
of unreserved fund balance reserves in the general fund, a government should consider a variety of factors,
including:
The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of reserves
unreserved fund balance may be needed if significant revenue sources are subject to unpredictable
fluctuations or if operating expenditures are highly volatile).
The availability of resources in other funds as well as the potential drain upon general fund resources from
other funds (i.e., the availability of resources in other funds may reduce the amount of reserves needed in
the general fund, just as deficits in other funds may require that a higher level of reserves be maintained
in the general fund).
Liquidity (i.e., a disparity between when financial resources actually become available to make payments
and the average maturity of related liabilities may require that a higher level of resources be maintained).
Designations (i.e., governments may wish to maintain higher levels of unreserved fund balance reserves
to compensate for any portion of unreserved fund balance already designated for a specific purpose).
This policy establishes three (3) distinct General Fund Reserves:
1. General Fund Operating Reserve – minimum 15%
2. Economic Contingency Reserve – minimum 5%
3. Catastrophic Event Reserve – minimum 3%
The total recommended minimum reserve level for the three categories combined is 23%.
General Fund Operating Reserve
The General Fund Operating Reserve represents unrestricted resources available for appropriations by the City
Page 403 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
3 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Council to address extraordinary needs of an emergency nature.
The City shall maintain General Fund Operating Reserve levels of no less than 15% of the annual operating
expenditure budget. This level of reserves represents approximately 1.8 months of General Fund operating
expenditures. The reserves may be used to provide temporary financing for unanticipated extraordinary needs of
an emergency nature, such as major storm drain repairs, litigation or settlement costs or an unexpected liability
created by Federal or State legislative action.
If funds are appropriated (spent) from the operating reserves due to unanticipated needs, the funds should be
replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If
the magnitude of the event caused the General Fund Operating Reserve to be deeply reduced, the City Manager
and Finance Director shall provide the City Council with a plan to incrementa lly replenish the reserves to the
minimum 15% level.
Authorized use (mid-year appropriations) of the General Fund Operating Reserve will require approval by
four/fifths (4/5) vote of the City Council.
Economic Contingency Reserve
The Economic Contingency Reserve represents funds monies set aside available for appropriation by the City
Council to mitigate service impacts during a significant downturn in the economy which impacts City revenues
such as sales tax, property tax, business licenses tax etc. and transient occupancy tax.
The City shall maintain General Fund Economic Contingency Reserve levels of no less than 5% of the annual
operating expenditure budget to provide for unexpected financial impacts related to a significant economic
slowdown.
Funds may be appropriated from the Economic Contingency Reserves only after the City Manager and the
Finance Director have prepared an analysis providing sufficient evidence that the remaining reserves are adequate
to offset potential downturns in revenue sources and provide sufficient cash balance for the daily financial needs
of the City for the remainder of the fiscal year. Once the analysis has been presented to the City Council, action
to appropriate from the reserves will require a declaration that a fiscal emergency or extraordinary need exists
and approval by four/fifths through an affirmative vote by (4/5)ths vote of the City Council.
If the Economic Contingency Reserves should ever drop below the minimum reserve level, the City Manager and
Finance Director will develop a plan to replenish the reserves. The plan will be included in the adoption of the
City’s annual operating budget and Long-Term Financial Plan.
Catastrophic Event Reserve
The Catastrophic Event Reserve represents funds available for appropriation by the City Council are monies set
aside to fund unanticipated expenses related to a major natural disaster in the City.
Page 404 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
4 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
The City shall maintain a General Fund Catastrophic Event Reserve level of no less than 3% of the annual
operating expenditure budget to fund unanticipated expenses related to an “emergency” as defined in the City of
Chula Vista Municipal Code, Chapter 2.14, Section 2.14.020. A reserve level of 3% of the General Fund operating
budget should be maintained as Catastrophic Event Reserves. These funds are associated with the City’s Disaster
Preparedness Program. These funds are associated with the City’s Emergency Organization Department and
Disaster Council Disaster Preparedness Program. The City is susceptible to earthquakes, fires, floods and terrorist
threats. In the event that the City Council proclaims a local emergency, the Catastrophic Event Reserve can be
utilized to fund response and recovery costs until reimbursements from federal and/or state agencies can be
recovered.
Authorized use of the Catastrophic Event Reserve will require a Proclamation of a Local Emergency by the City
Council or Director of Emergency Services. In addition, authorized use (mid-year appropriations) of the
Catastrophic Event Reserves will require approval by four/fifths (4/5) vote of the City Council.
If the Catastrophic Event Reserve should ever drop below the minimum reserve level, the City Manager and
Finance Director will develop a plan to replenish the reserves. The plan will be included in the adoption of the
City’s annual operating budget and Long-Term Financial Plan.
Calculation of General Fund Reserves
The General Fund Reserve levels reserves will be calculated using the prior year’s following year’s Adopted
General Fund budgeted operating expenditures including transfers out related to debt service payments and
reoccurring operating obligations. The General Fund Reserve levels will be calculated at the close of each fiscal
year. The Finance Department shall provide a comprehensive reserve fund status report annually to the City
Council along with the Annual Comprehensive Financial Report. Reserves levels will be evaluated annually in
conjunction with the development of the City’s Long-Term Financial Plan 10 Year Financial Forecast and annual
operating budget process to ensure minimum reserve levels are maintained. There is no maximum reserve level
as any additional reserves would provide a greater level of fiscal security.
Pension, Bond Call, and OPEB Reserve Fund Policy
The City provides its permanent employees with a defined benefit pension through the California Public
Employees’ Retirement System (CalPERS). The City, like most CalPERS participating agencies, continues to
see significant increases in pension costs due to current and retired employees living longer, lower than
anticipated investment returns by CalPERS, and CalPERS policies. In response to continued increases in pension
cost, the City issued $350 million of Pension Obligation Bonds (POB) in February 2021 to refinance & restructure
its CalPERS Unfunded Actuarial Liability (UAL). At the time of issuance. the POB resulted in the conversion of
a 7.0% UAL interest debt with CalPERS to 2.54% interest debt on the POB.
The City utilized the restructuring to achieve several objectives including:
Page 405 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
5 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Developing a more manageable repayment schedule for this large pension liability will enhance budget
predictability and enhance City’s ability to maintain service levels.
Prioritizing projected savings towards reserves to mitigate future impacts from pension increases.
At the time of issuance, the City’s POBs were projected to result in over $175 million of interest rate savings.
Despite these significant savings and best efforts to manage pension costs, the City continues to see increases in
pension costs, specifically in the UAL, resulting in higher contributions to CalPERS and burden on the General
Fund, the City’s primary operating fund. As of June 30, 2022, the total Miscellaneous plan UAL was $44 million
and the total Safety plan UAL was $41 million.
The City also provides certain Other Post-Employment Benefits (OPEB) in the form of subsidized health care
rates for tier 1 retirees. The City budgets the implied subsidy amounts on an annual basis. As of June 30, 2023,
the total OPEB liability for the City is $27.7 million.
The following policy has been developed in response to large annual pension cost increases as a result of current
and retired employees living longer, lower than anticipated investment returns by CalPERS over the last several
years, and CalPERS policies adopted that require all cities to payback all unfunded pension liability over the next
thirty years for existing unfunded liability and over twenty years for any new unfunded liability. This policy will
formalize a funding mechanism for the establishment of a Pension Reserve Fund (PRF) to be used at the City’s
discretion to help offset future pension cost increases. As of June 30, 2020 the total Miscellaneous plan Unfunded
Actuarial Liability (UAL) was $190,478,272 and the total Safety plan UAL was $163,766,889.
The City also provides certain Other Pension Employment Benefits (OPEB) in the form of subsidized health care
rates for tier 1 retirees. As of June 30, 2019 the total OPEB liability for the City is $15,938,213. The City budgets
the implied subsidy amounts on an annual basis.
The Pension Reserve Fund, Bond Call Fund, and OPEB Reserve Fund are established to ensure the City has
adequate reserves to fund future pension and OPEB liabilities.
To establish a formal City Pension Reserve Fund Policy and OPEB Reserve Fund Policy.
This policy establishes three (3) distinct reserves:
1. Pension Reserve Fund – minimum 15%
2. Bond Call Fund
3. OPEB Reserve Fund
Pension Reserve Fund
The Pension Reserve Funds represent restricted fund balance and are established in the form of an irrevocable
Page 406 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
6 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Section 115 Trust (Trust). Pension Reserve Fund funds are deposited in a Trust, and in accordance with IRS
regulations, may only be withdrawn and used for the following purposes: (1) City’s annual UAL payment to
CalPERS, (2) City’s annual normal cost payment to CalPERS, (3) reimbursement to the City for prior-year and
current-year payments to CalPERS, and (4) Additional Discretionary Payments to CalPERS.
The City shall maintain a Pension Reserve Fund level of no less than 15% of the prior year’s Adopted General
Fund budgeted operating expenditures to fund allowable pension costs.
Authorized use (mid-year appropriations) of the Pension Reserve Fund will require approval by four/fifths (4/5)
vote of the City Council. If the Pension Reserve Fund should ever drop below the minimum reserve level due to
a withdrawal from the Trust, the City Manager and Finance Director will develop a plan to replenish the reserves.
The plan will be included in the adoption of the City’s Long-Term Financial Plan and annual operating budget.
If the Pension Reserve Fund should ever drop below the minimum reserve level due to short-term investment
losses in the Trust, the City Manager and Finance Director will not be required to replenish the reserve.
PRF funds may be used towards: repayment of future CalPERS unfunded liability in part or whole; the issuance
of debt for the purposes of refinancing or issuing pension obligation bonds or other similar debt instruments;
establishment of an OPEB reserve fund; to pay off any outstanding POB’s; and any other unanticipated pension
related cost or charge. The Finance Department shall create the PRF in the fiscal year in which the first scheduled
transfer is to occur.
It is anticipated that pension fund contributions will eventually stabilize around the year 2030 and will slowly be
reduced until the outstanding unfunded pension liability is paid in full by the year 2045. Pension Obligatio n
Bonds may be considered to smooth the impacts over that twenty-four-year period. This PRF will remain in
place until such time pension contributions have stabilized and the City has no remaining unfunded liability or
projected liability in the future.
If any part of this Policy conflicts with Federal or State laws, or the City of Chula Vista Municipal Code, or
Charter, those laws will take precedence over this Pension Reserve Fund Policy.
Bond Call Fund and OPEB Reserve Fund
The Bond Call Fund represents funds available for appropriation by the City Council to be used to pay any
outstanding debt prior to maturity that results in net annual savings. These funds will allow the City to accumulate
funds to eliminate debt early. For example, beginning in June 2031, the POBs are eligible to be called, saving
on interest costs and reducing future POB debt service payments. Authorized use (mid-year appropriations) of
Bond Call Fund will require approval by four/fifths (4/5) vote of the City Council.
OPEB Reserve Funds represent funds available for appropriation by the City Council to provide funding for the
City’s outstanding OPEB liability. OPEB Reserve Fund will be funded up to 75% of the outstanding OPEB
liability in the most recent annual actuarial valuation, to ensure there are adequate reserves to fund this liability
Page 407 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
7 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
in future years. Authorized use (mid-year appropriations) of OPEB Reserve Funds will require approval by
four/fifths (4/5) vote of the City Council.
Funding the General Fund, Pension, Bond Call Fund, and OPEB Reserve Fund
With the issuance of POBs, the City shall budget a minimum of 75% of the net annual savings (POB Net Savings)
(determined at bond issuance for years 1-101) for bond fiscal years 3 through 10 as follows:
1. City’s annual UAL payment to CalPERS
2. Maintain the Pension Reserve Fund reserve level of 15%
3. Additional Discretionary Payment (ADP) to reach a pension funding level of up to 95% for each plan
4. 75% of all remaining POB Net Savings will be deposited to the Bond Call Fund
5. 25% of all remaining POB Net Savings will be deposited to the OPEB Reserve Fund. Once 75% funding
of outstanding OPEB liability is achieved, all remaining POB Net Savings will be deposited into the Bond
Call Fund
1In years 1 and 2 all POB Net Savings were placed in the Pension Reserve Fund.
Additional Discretionary Payment (ADP) represents additional payments to CalPERS which would serve to
reduce the City’s UAL resulting in ongoing savings in pension costs and reduction in future required
contributions. CalPERS allows participating agencies to make ADP at any time and in any amount.
Surplus Funds available after closing the General Fund shall be allocated as follows:
1. Carried forward to maintain up to the following fiscal year’s minimum reserve level for all three General
Fund Reserves and Pension Reserve Fund (Section 115 Trust), in the funding order of General Fund
Operating Reserve, Economic Contingency Reserve, Catastrophic Event Reserve, and Pension Reserve
Fund
2. 75% of all remaining Surplus Funds will be deposited to the Bond Call Fund
3. 25% of all remaining Surplus Funds will be deposited to the OPEB Reserve Fund. Once 75% funding of
outstanding OPEB liability is achieved, all remaining Surplus Funds will be deposited into the Bond Call
Fund.
4. Should the OPEB Reserve Fund and Bond Call Fund be fully funded then any Surplus Funds will be
added to the General Fund Operating Reserve.
Surplus Funds will be calculated at the close of each fiscal year and represent excess fund balance that is not
otherwise designated and is available for appropriation. Special consideration shall be made by the City Manager
and Finance Director each fiscal year when determining Surplus Funds to ensure any General Fund supported
funds such as Workers Compensation and Public Liability Funds maintain adequate fund balances.
Allocation Methodology
This policy amends the General Fund Reserve Policy – Fiscal Health Plan, all allocations for the PRF will only
Page 408 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
8 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
occur after the full funding of the 15% General Fund Operating Reserves.
Upon meeting the 15% General Fund Operating Reserves 75% (seventy-five percent) of all future surplus funds
shall be transferred to the PRF for the purposes of that fund while the remaining 25% (twenty-five percent) is
allocated to the Economic Contingenc y Reserves and Catastrophic Event Reserves in accordance with the
General Fund Reserve Policy- Fiscal Health Plan. In the event all three General fund reserve accounts are fully
funded at the stated policy percentage, 100% of surplus funds will be transferred to the PRF until it reaches 15%
of General Fund Expenses (excluding Measure A & P, identical dollar amount to the General Fund Operating
Reserves).
Ongoing surplus funds are determined upon the close of the fiscal year if revenues exceed actual exp enditures
within the General Fund. Special consideration shall be made by the Finance Director each year when
determining potential Surplus Funds so as not to leave any General Fund supported funds (Workers
Compensation, Public Liability, Insurance Fund) with a negative fund balance.
In addition, if Pension Obligation Bonds are issued, the City shall budget a minimum of 75% of the net annual
savings (determined at bond issuance for years 1 -10, not adjusted annually for any new unfunded liability or
change in actuarial assumptions) for bond fiscal years 1 through 10 to be transferred to the Pension Reserve Fund
on an annual basis. This fund will take the form of a Section 115 Trust and will replace the Pension Reserve
Fund described above. Upon full funding of the 15% Pension Reserve Fund in the 115 Trust, all surplus funds
will be allocated 50% to an OPEB Reserve Fund and 50% to an POB Bond Call Fund. Once 75% funding of
outstanding OPEB liability is achieved, all remaining surplus funds will be deposit ed into the POB Bond Call
Fund. The Finance Department shall provide a comprehensive reserve fund status report, including five -year
reserve fund balance projections, annually to the City Council along with the Comprehensive Annual Financial
Report.
In the event of an economic hardship, or other unanticipated fiscal emergency, the City Council may make an
emergency declaration to reduce the annual transfer to the PRF, only if all funds in the Emergency Reserve and
Economic Contingency Reserve have been depleted. This declaration will only apply to the fiscal year in which
it was made. Ongoing fiscal challenges will require a second or third emergency declaration.
Calculation of Pension, Bond Call, and OPEB Reserve Fund Reserves
The Pension, Bond Call, and OPEB Reserve levels will be calculated using the prior year’s Adopted General
Fund budgeted operating expenditures including transfers out related to debt service payments and reoccurring
operating obligations. The Pension, Bond Call, and OPEB Reserve levels will be calculated at the close of each
fiscal year. The Finance Department shall provide a comprehensive reserve fund status report, including five-
year reserve fund balance projections, annually to the City Council along with the Annual Comprehensiv e
Financial Report. Reserve levels will be evaluated annually in conjunction with the development of the City’s
Long-Term Financial Plan and annual operating budget to ensure minimum reserve levels are maintained. There
is no maximum reserve level as any additional reserves would provide a greater level of fiscal security.
Page 409 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
9 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Below is a graphical representation of the funding of the General Fund, Pension, Bond Call Fund, and OPEB
Reserve Fund for the POB Net Savings and Surplus Funds:
POB Net Savings
Page 410 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
10 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Surplus Funds
Definitions:
Surplus Funds – Actual revenues exceeding expenditures, if applicable, for each fiscal year. The surplus funds
determination is typically made around October of each year for the prior fiscal year.
Bond Fiscal Year – Begins the first fiscal year immediately following the issuance of pension obligation bonds.
Sewer Service Revenue Fund Reserve Policy
The City’s Sewer Enterprise Funds account for specific services funded directly by fees and charges users of the
City’s sewer system. These funds are intended to be self-supporting as well as restricted and cannot be used for
other City services. They account for revenues and expenses related to the City’s sewer programs, including
maintenance and expansion of the City’s conveyance system and payment of San Diego Metro wastewater
treatment costs.
The Sewer Service Revenue Fund accounts for revenue collected from monthly sewer service charges for all
properties that are connected to the City’s sewer system. These funds can only be used for sewer related
operations and maintenance. The primary use of these funds is payment for the City’s annual San Diego
Page 411 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
11 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Metropolitan Sewer Capacity and to fund maintenance and operational costs associated with the sewer collection
system.
The Government Finance Officers Association (GFOA), an international organization that promotes the
professional financial management of governments for the public interest, recommends enterprise funds maintain
minimum reserve balances. A government’s particular situation may require levels of reserves significantly in
excess of their recommended minimum levels. Cities with higher reserve levels are better positioned to protect
public services during economic downturns.
GFOA recommends that in establishing a policy governing the level of reserves or working capital in enterprise
funds, a government should consider a variety of factors, including but not limited to the following:
The predictability of its revenues and the volatility of its expenditures (i.e. higher levels of reserves may
be needed if significant revenue sources are subject to unpredictable fluctuations or if operating
expenditures are highly volatile).
Liquidity (i.e. a disparity between when financial resources actually become available to make payments
and the average maturity of related liabilities may require that a higher level of resources be maintained).
Designations (i.e. governments may wish to maintain higher levels of reserves to compensate for any
portion of available fund balance already designated for a specific purpose).
This policy establishes four (4) distinct Sewer Service Revenue Fund Reserves reserves within the Sewer Service
Revenue Fund:
1. Working Capital and Rate Stabilization Reserve
2. Emergency Reserve
3. Vehicle Replacement Reserve
Working Capital and Rate Stabilization Reserve
Working Capital and Rate Stabilization reserves in the Sewer Service Revenue Fund will be restricted to
maintaining and operating the wastewater collection system and paying treatment charges to City of San Diego
Metropolitan Wastewater (“Metro”). The reserve will be funded from revenues accumulated in the Sewer Service
Revenue Fund. It is intended to accommodate any natural variability in revenues and expenditures, including
potential disruptions of cash flows due to varied billing methodology, short-term fluctuations and annual cycles.
The reserve will also assist in addressing shortfalls which may occur due to unanticipated cost increases in labor
or energy and other consumption based goods and services, such as wastewater treatment services provided by
Metro. The reserves represent unrestricted resources available for appropriation by the City Council addressing
unforeseen needs for sewer services.
The Working Capital and Rate Stabilization Reserves will assist the City in addressing the following items:
Rate Stabilization – the reserves will allow the City the flexibility to “smooth” rates and phase increases
Page 412 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
12 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
in over multiple years, which is prudent given the potential variability in the City’s payments to Metro.
Revenue Collection Fluctuations - the reserves will be used to protect the City from natural fluctuations
in revenue and expenditure cycles which is prudent given that the City bills customers at different points
in time but incurs expenses continuously throughout the year.
Rates of delinquencies – delays in collection of outstanding revenues.
Payroll cycles – the timing of a fixed cash requirement for payroll, as related to the timing of revenue
cycles.
Unanticipated expenses - expenses whose characteristics make accurate estimation difficult, such as
increases in wastewater treatment services provided by the City of San Diego, energy costs, labor benefits
and other consumption based goods and services.
The City shall maintain a Sewer Revenue reserve equivalent to 90 days of operating expenditures and a Rate
Stabilization reserve equivalent to 90 days of operating expenditures for a minimum combined total of 180 days
and a maximum reserve balance of 125% of the minimum balance.
If funds are appropriated from the Sewer Revenue Working Capital and Rate Stabilization Reserves, the funds
should be replenished in the budget process during subsequent fiscal years to the minimum reserve balance. If
the magnitude of the event caused the Sewer Revenue Working Capital and a Stabilization Reserves to be less
than 30 days of the operating and maintenance budget, the Finance Director shall provide the Ci ty Council with
a plan to incrementally replenish the reserves to the 180 days minimum reserve balance.
Emergency Reserve
The Sewer Service Revenue Fund Emergency Reserve is necessary to secure funding for insurance deductibles,
unforeseen liabilities/litigation and settlement costs related to the City’s wastewater system.
The City shall maintain a minimum Sewer Service Revenue Fund Emergency Reserve target level of 5% of the
operating and maintenance budget and a maximum reserve balance of 125% of the minimum balance. If funds
are appropriated from the Sewer Revenue Emergency Reserves due to unanticipated needs, the Finance Director
shall provide the City Council with a plan to incrementally replenish the reserves to the minimum reserve balance.
Vehicle Replacement Reserve
The Sewer Service Revenue Fund Vehicle Replacement Reserves represents monies set aside to fund the
replacement of aging vehicles. The allocation is funded from revenues accumulated in the Sewer Service
Revenue Fund.
The City shall maintain a minimum Sewer Service Fund Vehicle Replacement Reserve target of 2% of the
operating and maintenance budget. This reserve will ensure that vehicles utilized for sewer operations are
replaced as scheduled and available to deploy as needed.
To achieve a minimum impact to cost of services and rates, funds will be included in the proposed budget on an
Page 413 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
13 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
annual basis as identified in the City’s Vehicle Replacement schedule. The cost of replacing all the vehicles will
be averaged over the lifespan of the existing fleet. This will generate a more normalized cost of services by
evenly distributing revenue requirements on a year-to-year basis offsetting temporary cash flow deficiencies and
avoid significant increases in rates charges to customers in the years the replacement cost are incurred
Measure A Fund Reserve Policy
On June 15, 2018, Chula Vista voters approved Measure A Sales and Use Tax, a one-half (½) cent Public Safety
General Transactions and Use Tax (Sales Tax) in the City of Chula Vista. The Measure A Fund Reserve Policy
is established to avoid any impacts to the General Fund due to temporary sales tax revenue shortfalls, and to
establish the reserves necessary to meet known and unknown future obligations for the City’s Police and Fire
Departments.
This policy establishes a Measure A Fund Economic Contingency Reserve.
Measure A Fund Economic Contingency Reserve
The City shall maintain a Measure A Fund Economic Contingency Reserve levels of no less than 60 days
(approximately 16% of the annual operating budget) of operations to provide for unexpected financial impacts
related to a significant economic slowdown. If funds are appropriated (spent) from the operating reserves due to
unanticipated needs, the funds should be replenished by that department in the budget process during the
subsequent fiscal year to maintain the minimum reserve balance. If the magnitude of the event caused the
Measure A Fund Economic Contingency Reserve to be deeply reduced, the City Manager and Finance Director
shall provide the City Council with a plan to incrementally replenish the reserves to the minimum level.
Authorized use (mid-year appropriations) of the Measure A Economic Contingency Reserve will require approval
by a (4/5) vote of the City Council.
Calculation of Measure A Fund Economic Contingency Reserves
The Measure A Fund Economic Contingency Reserve levels will be calculated using the prior year’s Adopted
Measure A Fund budgeted operating expenditures. The reserve level is defined as the number of days of operation
in its normal course of business and shall be calculated based on the annual operating budget for the fiscal yea r,
less any budgeted debt service. Reserves will be evaluated annually in conjunction with the development of the
Annual Budget process. There is no maximum reserve level as any reserves above the required minimum would
provide a greater level of fiscal security in the case of an unexpected economic slowdown. Any reserves above
the required minimum could also be used to support public safety, consistent with the Measure A Public Safety
Expenditure Plan through the application of Measure A sales tax revenues that will ensure the best return on
investment in terms of staffing improvements for the improved deployment of resources and include the used of
these non-recurring funds for one-time essential public safety purchases (i.e., capital, consulting, software, etc.)
Ambulance Transport System Enterprise Fund Reserve Policy
On May 12, 2020, City Council approved Chula Vista Council Resolution No. 2020-102 directing the Fire
Page 414 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
14 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Department to provide exclusive Emergency Medical Ambulance Transport Services (ATS) within the City of
Chula Vista, the City of Imperial Beach, and the Bonita Sunnyside Fire Protection district. In the resolution were
revenue projections that included both a base rate and ancillary fees multiplied by the volume of transports to
reach projected FY2022 revenues. The resolution adopted a rate of $2,800 as the “Base Cost of Service”. In
addition, Resolution No. 2020-103 authorized a purchase agreement with Republic EVS for purchase of 13
ambulances; Resolution No. 2020-104 authorized a purchase agreement with Stryker Medical for gurney systems;
Resolution No. 2020-105 authorized a sole source purchase agreement with Zoll Medical Corporation for cardiac
monitors and auto pulse systems; and Resolution No. 2020-106 authorized a sole source purchase agreement with
Motorola Solutions. These resolutions resulted in loan agreements in the amount of $4,493,100 with Banc of
America Public Capital Corp, and an interfund loan in the amount of $4,881,710 from the M easure A available
fund balance. These loans are being utilized to provide funding for all capital purchases and start-up costs
associated with the Ambulance Transport Program. The interfund loan from Measure A was agreed to be repaid
within the first five (5) full years of operation of the ATS program at an interest rate equal to the City’s pooled
investment rate of return, which was approximately 2.2% at the time the interfund loan was approved by City
Council. The loan from Banc of America Public Capital Corp is repaid in semiannual payments with an annual
interest rate of 1.00%.
This policy establishes a formal ATS Enterprise Fund Reserve Policy. The fund reserve policy is to provide
guidance to City Council and staff in making financial decisions and aid in ensuring fiscal responsibility of the
ATS Enterprise Fund. This policy establishes reserves that will position the Transport program to be able to
weather significant economic downturns and more effectively manage uncertainties. Sufficient reserves create
the financial stability necessary to meet debt obligations of the ATS Enterprise Fund, reduce the risk of impacting
the General Fund, and support continuous provision of emergency services to our residents.
This policy establishes four (4) distinct ATS Enterprise Fund Reserves:
1. Debt Obligation Reserve – Minimum 1-year current debt obligation
2. Operating Reserve – Minimum 180 days operating expenses
3. Capital Replacement Reserve - Minimum $4 million in capital replacement reserve
4. Liability Insurance Reserve - Minimum $1 million liability insurance reserve
Debt Obligation Reserve
The ATS Enterprise Fund will maintain a fund balance reserve equal to one fiscal year’s debt obligation. This
reserve is to ensure debt obligations are met to keep the City in good credit standing. In fiscal years with no
current debt obligations, the debt obligation reserve will be used to bring other reserve balances to their stated
policy levels. If all reserves have achieved minimum levels and no debt obligations exist, this reserve will be no
longer be required and any funds will be release for other use at the discretion of the Fire Department.
If funds are appropriated (spent) from the Debt Obligation Reserve due to unanticipated needs, the funds should
be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance.
If the magnitude of the event caused the Debt Obligation Reserve to be deeply reduced, the City Manager, Fire
Page 415 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
15 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Chief and Finance Director shall provide the City Council with a plan to incrementally replenish the reserve to
the minimum one-year debt obligation level. The provided plan will align with the budget process or quarterly
monitoring report, whichever occurs first.
Operating Reserve
An Operating Reserve represents unrestricted resources available for appropriations by City Council to address
extraordinary needs of an emergency nature. The ATS Enterprise Fund will maintain an Operating Reserve of no
less than 180 days of operating expenses. This will be calculated using the following fiscal year’s adopted expense
budget (excluding debt service and transfers-out), with the maximum reserve amount of twelve months of
operating expenses. The Fire Department reserves the right to maintain reserve balances at their discretion within
the minimum and maximum thresholds of 180 days and up to twelve months of operating expenses.
If funds are appropriated (spent) from the Operating Reserve due to unanticipated needs, the funds should be
replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If
the magnitude of the event caused the Operating Reserve to be deeply reduced, the City Manager, Fire Chief and
Finance Director shall provide the City Council with a plan to replenish the reserves to the minimum operating
balance.
Capital Reserve
The ATS Enterprise Fund will maintain four million dollars in reserves specified for various capital equipment
replacement, as needed. This reserve is to ensure funds are available for various capital purchase needs as they
arise. This reserve is also being created to provide relief from the need to obtain debt-based funding for capital
or equipment needs. The Fire Department will reassess the need for capital reserve needs every three (3) years
and incorporate necessary adjustments into the budget process to ensure reserve goals are met in a manner that
are balanced with other budgetary priorities.
If funds are appropriated from the Capital Reserve due to anticipated or unanticipated needs, the funds should be
replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If
the magnitude of the event caused the Capital Reserve to be deeply reduced, the Ci ty Manager, Fire Chief and
Finance Director shall provide the City Council with a plan to replenishment the reserves to the minimum balance.
The provided plan will align with the budget process or quarterly monitoring report, whichever occurs first.
Liability Insurance Reserves
The ATS Enterprise Fund will maintain one million dollars in reserves specified for meeting liability insurance
needs as they arise. This reserve is to ensure claims can be addressed and fulfilled as they arise. The Fire
Department will reassess the need for liability insurance reserve needs every three (3) years and incorporate
necessary adjustments into the budget process to ensure reserve goals are met in a manner that are balanced with
other budgetary priorities.
If funds are appropriated from the Liability Insurance Reserve due to anticipated or unanticipated needs, the funds
Page 416 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy General Fund Reserves –
Fiscal Health Plan
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24
11/03/2020
16 of 16
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
should be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve
balance. If the magnitude of the event caused the Liability Insurance Reserve Reserves to be deeply reduced, the
City Manager, Fire Chief and Finance Director shall provide the City Council with a plan to replenish the reserves
to the minimum balance. The provided plan will align with the budget process or quarterly monitoring report,
whichever occurs first.
Establishment of Reserves
The ATS Enterprise Fund program is currently in its third year of operation. To establish the reserves outlined
above, until reserves are fully funded, all revenues in excess of expenses (surplus) at year end will be used to
fund reserves. In determining the surplus, expenses will include any discretionary Measure A loan payment.
These reserves will be established as an equal 25% allocation to each reserve category of excess revenue at year
end, after any discretionary Measure A loan payment.
The funding waterfall will be evaluated periodically and may be revised by the Finance Director in consultation
with the Fire Chief.
Page 417 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 1 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
BACKGROUND:
Public entities accumulate and maintain adequate reserves to help ensure both financial stability and the ability
to provide core services during difficult times. Sufficient reserves create financial stability resulting in increased
credit quality and allow the public entity to better weather downturns in the economy and the impacts of negative
events, both major and minor. The establishment of prudent financial reserves is important to ensure the long-
term fiscal health of the City.
The Government Finance Officers Association (GFOA), an international organization that promotes the
professional financial management of governments for the public interest, recommends that governments
formally adopt reserve policies that govern the amount of resources to be held in reserve and conditions under
which reserves can be used. GFOA recognizes that each government’s situation is unique, and the reserve policies
should be developed based upon its own specific circumstances.
PURPOSE:
The purpose of this policy is to establish a citywide reserve policy for:
Establishing reserves, reserve levels, and methodology for calculating reserves for the General Fund and
other funds
Use of reserves and the process of replenishment of any used reserves
POLICY:
General Fund Reserve Policy
The City’s General Fund is the primary operating fund of the City and source of funding for core services such
as police, fire, public works, and recreation. The General Fund is used to account for the general operations of
the City. It is used to account for all financial resources, except those required to be accounted for in another
fund.
The General Fund Reserve policy is established to ensure that the City’s finances are managed in a manner which
will (1) continue to provide for the delivery of quality services, (2) maintain and enhance service delivery as the
community grows in accordance with the General Plan, (3) minimize or eliminate the need to raise taxes and fees
because of temporary revenue shortfalls, and (4) establish the reserves necessary to meet known and unknown
future obligations and ability to respond to unexpected opportunities.
Fiscal stability is an important factor in operating a City. Establishing certain financial reserves protects the City
against unexpected interruptions in revenues, vulnerability to Federal or State actions, adverse economic
conditions, unpredictable one-time costs, and exposure to natural disasters and emergencies.
Page 418 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 2 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
There are additional benefits to establishing a minimum General Fund reserve. Credit rating agencies carefully
monitor levels of reserves in a government’s General Fund to evaluate a government’s continued
creditworthiness. A higher credit rating results in savings to the taxpayer when the City issues debt or participates
in short-term borrowing. Finally, reserve levels are a crucial consideration in long-term financial planning.
GFOA recommends maintaining a minimum reserves in the General Fund of no less than 5% to 15% of general
fund operating revenues, or no less than one to two months of regular general fund operating expenditures. A
government’s particular situation may require reserve levels in the general fund significantly in excess of these
recommended minimum levels. Cities with higher reserve levels are better positioned to protect public services
during economic downturns. GFOA recommends that in establishing a policy governing the level of reserves in
the general fund, a government should consider a variety of factors, including:
The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of reserves may
be needed if significant revenue sources are subject to unpredictable fluctuations or if operating
expenditures are highly volatile).
The availability of resources in other funds as well as the potential drain upon general fund resources from
other funds (i.e., the availability of resources in other funds may reduce the amount of reserves needed in
the general fund, just as deficits in other funds may require that a higher level of reserves be maintained
in the general fund).
Liquidity (i.e., a disparity between when financial resources become available to make payments and the
average maturity of related liabilities may require that a higher level of resources be maintained).
Designations (i.e., governments may wish to maintain higher levels of reserves to compensate for any
portion of fund balance already designated for a specific purpose).
This policy establishes three (3) distinct General Fund Reserves:
1. General Fund Operating Reserve – minimum 15%
2. Economic Contingency Reserve – minimum 5%
3. Catastrophic Event Reserve – minimum 3%
The total recommended minimum reserve level for the three categories combined is 23%.
General Fund Operating Reserve
The General Fund Operating Reserve represents unrestricted resources available for appropriations by the City
Council to address extraordinary needs of an emergency nature.
The City shall maintain General Fund Operating Reserve levels of no less than 15% of the annual operating
expenditure budget. This level of reserves represents approximately 1.8 months of General Fund operating
expenditures. The reserves may be used to provide temporary financing for unanticipated extraordinary needs of
an emergency nature, such as major storm drain repairs, litigation or settlement costs or an unexpected liability
created by Federal or State legislative action.
Page 419 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 3 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
If funds are appropriated (spent) from the operating reserves due to unanticipated needs, the funds should be
replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If
the magnitude of the event caused the General Fund Operating Reserve to be deeply reduced, the City Manager
and Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the
minimum 15% level.
Authorized use (mid-year appropriations) of the General Fund Operating Reserve will require approval by
four/fifths (4/5) vote of the City Council.
Economic Contingency Reserve
The Economic Contingency Reserve represents funds available for appropriation by the City Council to mitigate
service impacts during a significant downturn in the economy which impacts City revenues such as sales tax,
property tax, and transient occupancy tax.
The City shall maintain General Fund Economic Contingency Reserve levels of no less than 5% of the annual
operating expenditure budget to provide for unexpected financial impacts related to a significant economic
slowdown.
Funds may be appropriated from the Economic Contingency Reserves only after the City Manager and the
Finance Director have prepared an analysis providing sufficient evidence that the remaining reserves are adequate
to offset potential downturns in revenue sources and provide sufficient cash balance for the daily financial needs
of the City for the remainder of the fiscal year. Once the analysis has been presented to the City Council, action
to appropriate from the reserves will require a declaration that a fiscal emergency or extraordinary need exists
and approval by four/fifths (4/5) vote of the City Council.
If the Economic Contingency Reserves should ever drop below the minimum reserve level, the City Manager and
Finance Director will develop a plan to replenish the reserves. The plan will be included in the adoption of the
City’s annual operating budget and Long-Term Financial Plan.
Catastrophic Event Reserve
The Catastrophic Event Reserve represents funds available for appropriation by the City Council to fund
unanticipated expenses related to a major natural disaster in the City.
The City shall maintain a General Fund Catastrophic Event Reserve level of no less than 3% of the annual
operating expenditure budget to fund unanticipated expenses related to an “emergency” as defined in the City of
Chula Vista Municipal Code, Chapter 2.14, Section 2.14.020. These funds are associated with the City’s
Emergency Organization Department and Disaster Council. In the event that the City Council proclaims a local
emergency, the Catastrophic Event Reserve can be utilized to fund response and recovery costs until
reimbursements from federal and/or state agencies can be recovered.
Authorized use of the Catastrophic Event Reserve will require a Proclamation of a Local Emergency by the City
Page 420 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 4 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Council or Director of Emergency Services. In addition, authorized use (mid-year appropriations) of the
Catastrophic Event Reserves will require approval by four/fifths (4/5) vote of the City Council.
If the Catastrophic Event Reserve should ever drop below the minimum reserve level, the City Manager and
Finance Director will develop a plan to replenish the reserves. The plan will be included in the adoptio n of the
City’s annual operating budget and Long-Term Financial Plan.
Calculation of General Fund Reserves
The General Fund Reserve levels will be calculated using the prior year’s Adopted General Fund budgeted
operating expenditures including transfers out related to debt service payments and reoccurring operating
obligations. The General Fund Reserve levels will be calculated at the close of each fiscal year. The Finance
Department shall provide a comprehensive reserve fund status report annually to the City Council along with the
Annual Comprehensive Financial Report. Reserve levels will be evaluated annually in conjunction with the
development of the City’s Long-Term Financial Plan and annual operating budget to ensure minimum reserve
levels are maintained. There is no maximum reserve level as any additional reserves would provide a greater
level of fiscal security.
Pension, Bond Call, and OPEB Reserve Fund Policy
The City provides its permanent employees with a defined benefit pension through the California Public
Employees’ Retirement System (CalPERS). The City, like most CalPERS participating agencies, continues to
see significant increases in pension costs due to current and retired employees living longer, lower than
anticipated investment returns by CalPERS, and CalPERS policies. In response to continued increases in pension
cost, the City issued $350 million of Pension Obligation Bonds (POB) in February 2021 to refinance & restructure
its CalPERS Unfunded Actuarial Liabilit y (UAL). At the time of issuance. the POB resulted in the conversion of
a 7.0% UAL interest debt with CalPERS to 2.54% interest debt on the POB.
The City utilized the restructuring to achieve several objectives including:
Developing a more manageable repayment schedule for this large pension liability will enhance budget
predictability and enhance City’s ability to maintain service levels.
Prioritizing projected savings towards reserves to mitigate future impacts from pension increases.
At the time of issuance, the City’s POBs were projected to result in over $175 million of interest rate savings.
Despite these significant savings and best efforts to manage pension costs, the City continues to see increases in
pension costs, specifically in the UAL, resulting in higher contributions to CalPERS and burden on the General
Fund, the City’s primary operating fund. As of June 30, 2022, the total Miscellaneous plan UAL was $44 million
and the total Safety plan UAL was $41 million.
The City also provides certain Other Post-Employment Benefits (OPEB) in the form of subsidized health care
rates for tier 1 retirees. The City budgets the implied subsidy amounts on an annual basis. As of June 30, 2023,
the total OPEB liability for the City is $27.7 million.
Page 421 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 5 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
The Pension Reserve Fund, Bond Call Fund, and OPEB Reserve Fund are established to ensure the City has
adequate reserves to fund future pension and OPEB liabilities.
This policy establishes three (3) distinct reserves:
1. Pension Reserve Fund – minimum 15%
2. Bond Call Fund
3. OPEB Reserve Fund
Pension Reserve Fund
The Pension Reserve Funds represent restricted fund balance and are established in the form of an irrevocable
Section 115 Trust (Trust). Pension Reserve Fund funds are deposited in a Trust, and in accordance with IRS
regulations, may only be withdrawn and used for the following purposes: (1) City’s annual UAL payment to
CalPERS, (2) City’s annual normal cost payment to CalPERS, (3) reimbursement to the City for prior-year and
current-year payments to CalPERS, and (4) Additional Discretionary Payments to CalPERS.
The City shall maintain a Pension Reserve Fund level of no less than 15% of the prior year’s Adopted General
Fund budgeted operating expenditures to fund allowable pension costs.
Authorized use (mid-year appropriations) of the Pension Reserve Fund will require approval by four/fifths (4/5)
vote of the City Council. If the Pension Reserve Fund should ever drop below the minimum reserve level due to
a withdrawal from the Trust, the City Manager and Finance Director will develop a plan to replenish the reserves.
The plan will be included in the adoption of the City’s Long-Term Financial Plan and annual operating budget.
If the Pension Reserve Fund should ever drop below the minimum reserve level due to short-term investment
losses in the Trust, the City Manager and Finance Director will not be required to replenish the reserve.
Bond Call Fund and OPEB Reserve Fund
The Bond Call Fund represents funds available for appropriation by the City Council to be used to pay any
outstanding debt prior to maturity that results in net annual savings. These funds will allow the City to accumulate
funds to eliminate debt early. For example, beginning in June 2031, the POBs are eligible to be called, saving
on interest costs and reducing future POB debt service payments. Authorized use (mid-year appropriations) of
Bond Call Fund will require approval by four/fifths (4/5) vote of the City Council.
OPEB Reserve Funds represent funds available for appropriation by the City Council to provide funding for the
City’s outstanding OPEB liability. OPEB Reserve Fund will be funded up to 75% of the outstanding OPEB
liability in the most recent annual actuarial valuation, to ensure there are adequate reserves to fund this liability
in future years. Authorized use (mid-year appropriations) of OPEB Reserve Funds will require approval by
four/fifths (4/5) vote of the City Council.
Page 422 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 6 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Funding the General Fund, Pension, Bond Call Fund, and OPEB Reserve Fund
With the issuance of POBs, the City shall budget a minimum of 75% of the net annual savings (POB Net Savings)
(determined at bond issuance for years 1-101) for bond fiscal years 3 through 10 as follows:
1. City’s annual UAL payment to CalPERS
2. Maintain the Pension Reserve Fund reserve level of 15%
3. Additional Discretionary Payment (ADP) to reach a pension funding level of up to 95% for each plan
4. 75% of all remaining POB Net Savings will be deposited to the Bond Call Fund
5. 25% of all remaining POB Net Savings will be deposited to the OPEB Reserve Fund. Once 75% funding
of outstanding OPEB liability is achieved, all remaining POB Net Savings will be deposited into the Bond
Call Fund.
1In years 1 and 2 all POB Net Savings were placed in the Pension Reserve Fund.
Additional Discretionary Payment (ADP) represents additional payments to CalPERS which would serve to
reduce the City’s UAL resulting in ongoing savings in pension costs and reduction in future required
contributions. CalPERS allows participating agencies to make ADP at any time and in any amount.
Surplus Funds available after closing the General Fund shall be allocated as follows:
1. Carried forward to maintain up to the following fiscal year’s minimum reserve level for all three General
Fund Reserves and Pension Reserve Fund (Section 115 Trust), in the funding order of General Fund
Operating Reserve, Economic Contingency Reserve, Catastrophic Event Reserve, and Pension Reserve
Fund
2. 75% of all remaining Surplus Funds will be deposited to the Bond Call Fund
3. 25% of all remaining Surplus Funds will be deposited to the OPEB Reserve Fund. Once 75% funding of
outstanding OPEB liability is achieved, all remaining Surplus Funds will be deposited into the Bond Call
Fund.
4. Should the OPEB Reserve Fund and Bond Call Fund be fully funded then any Surplus Funds will be
added to the General Fund Operating Reserve.
Surplus Funds will be calculated at the close of each fiscal year and represent excess fund balance that is not
otherwise designated and is available for appropriation. Special consideration shall be made by the City Manager
and Finance Director each fiscal year when determining Surplus Funds to ensure any General Fund supported
funds such as Workers Compensation and Public Liability Funds maintain adequate fund balances.
Calculation of Pension, Bond Call, and OPEB Reserve Fund Reserves
The Pension, Bond Call, and OPEB Reserve levels will be calculated using the prior year’s Adopted General
Fund budgeted operating expenditures including transfers out related to debt service payments and reoccurring
operating obligations. The Pension, Bond Call, and OPEB Reserve levels will be calculated at the close of each
fiscal year. The Finance Department shall provide a comprehensive reserve fund status report, including five-
year reserve fund balance projections, annually to the City Council along with the Annual Comprehensive
Page 423 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 7 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Financial Report. Reserve levels will be evaluated annually in conjunction with the development of the City’s
Long-Term Financial Plan and annual operating budget to ensure minimum reserve levels are maintained. There
is no maximum reserve level as any additional reserves would provide a greater level of fiscal security.
Below is a graphical representation of the funding of the General Fund, Pension, Bond Call Fund, and OPEB
Reserve Fund for the POB Net Savings and Surplus Funds:
POB Net Savings
Page 424 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 8 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
Surplus Funds
Sewer Service Revenue Fund Reserve Policy
The City’s Sewer Enterprise Funds account for specific services funded directly by fees and charges users of the
City’s sewer system. These funds are intended to be self-supporting as well as restricted and cannot be used for
other City services. They account for revenues and expenses related to the City’s sewer programs, including
maintenance and expansion of the City’s conveyance system and payment of San Diego Metro wastewater
treatment costs.
The Sewer Service Revenue Fund accounts for revenue collected from monthly sewer service charges for all
properties that are connected to the City’s sewer system. These funds can only be used for sewer related
operations and maintenance. The primary use of these funds is payment for the City’s annual San Diego
Metropolitan Sewer Capacity and to fund maintenance and operational costs associated with the sewer collection
system.
The GFOA recommends enterprise funds maintain minimum reserve balances. A government’s particular
situation may require levels of reserves significantly in excess of their recommended minimum levels. Cities
with higher reserve levels are better positioned to protect public services during economic downturns.
Page 425 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 9 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
GFOA recommends that in establishing a policy governing the level of reserves or working capital in enterprise
funds, a government should consider a variety of factors, including but not limited to the following:
The predictability of its revenues and the volatility of its expenditures (i.e. higher levels of reserves may
be needed if significant revenue sources are subject to unpredictable fluctuations or if operating
expenditures are highly volatile).
Liquidity (i.e. a disparity between when financial resources actually become available to make payments
and the average maturity of related liabilities may require that a higher level of resources be maintained).
Designations (i.e. governments may wish to maintain higher levels of reserves to compensate for any
portion of available fund balance already designated for a specific purpose).
This policy establishes four (4) distinct Sewer Service Revenue Fund Reserves:
1. Working Capital and Rate Stabilization Reserve
2. Emergency Reserve
3. Vehicle Replacement Reserve
Working Capital and Rate Stabilization Reserve
Working Capital and Rate Stabilization reserves in the Sewer Service Revenue Fund will be restricted to
maintaining and operating the wastewater collection system and paying treatment charges to City of San Diego
Metropolitan Wastewater (“Metro”). The reserve will be funded from revenues accumulated in the Sewer Service
Revenue Fund. It is intended to accommodate any natural variability in revenues and expenditures, including
potential disruptions of cash flows due to varied billing methodology, short-term fluctuations and annual cycles.
The reserve will also assist in addressing shortfalls which may occur due to unanticipated cost increases in labor
or energy and other consumption based goods and services, such as wastewater treatment services provided by
Metro. The reserves represent unrestricted resources available for appropriation by the City Council addressing
unforeseen needs for sewer services.
The Working Capital and Rate Stabilization Reserves will assist the City in addressing the following items:
Rate Stabilization – the reserves will allow the City the flexibility to “smooth” rates and phase increases
in over multiple years, which is prudent given the potential variability in the City’s payments to Metro.
Revenue Collection Fluctuations - the reserves will be used to protect the City from natural fluctuations
in revenue and expenditure cycles which is prudent given that the City bills customers at different points
in time but incurs expenses continuously throughout the year.
Rates of delinquencies – delays in collection of outstanding revenues.
Payroll cycles – the timing of a fixed cash requirement for payroll, as related to the timing of revenue
cycles.
Unanticipated expenses - expenses whose characteristics make accurate estimation difficult, such as
increases in wastewater treatment services provided by the City of San Diego, energy costs, labor benefits
and other consumption based goods and services.
Page 426 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 10 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
The City shall maintain a Sewer Revenue reserve equivalent to 90 days of operating expenditures and a Rate
Stabilization reserve equivalent to 90 days of operating expenditures for a minimum combined total of 180 days
and a maximum reserve balance of 125% of the minimum balance.
If funds are appropriated from the Sewer Revenue Working Capital and Rate Stabilization Reserves, the funds
should be replenished in the budget process during subsequent fiscal years to the minimum reserve balance. If
the magnitude of the event caused the Sewer Revenue Working Capital and a Stabilization Reserves to be less
than 30 days of the operating and maintenance budget, the Finance Director shall provide the Ci ty Council with
a plan to incrementally replenish the reserves to the 180 days minimum reserve balance.
Emergency Reserve
The Sewer Service Revenue Fund Emergency Reserve is necessary to secure funding for insurance deductibles,
unforeseen liabilities/litigation and settlement costs related to the City’s wastewater system.
The City shall maintain a minimum Sewer Service Revenue Fund Emergency Reserve target level of 5% of the
operating and maintenance budget and a maximum reserve balance of 125% of the minimum balance. If funds
are appropriated from the Sewer Revenue Emergency Reserves due to unanticipated needs, the Finance Director
shall provide the City Council with a plan to incrementally replenish the reserves to the minimum reserve balance.
Vehicle Replacement Reserve
The Sewer Service Revenue Fund Vehicle Replacement Reserves represents monies set aside to fund the
replacement of aging vehicles. The allocation is funded from revenues accumulated in the Sewer Service
Revenue Fund.
The City shall maintain a minimum Sewer Service Fund Vehicle Replacement Reserve target of 2% of the
operating and maintenance budget. This reserve will ensure that vehicles utilized for sewer operations are
replaced as scheduled and available to deploy as needed.
To achieve a minimum impact to cost of services and rates, funds will be included in the proposed budget on an
annual basis as identified in the City’s Vehicle Replacement schedule. The cost of replacing all the vehicles will
be averaged over the lifespan of the existing fleet. This will generate a more normalized cost of services by
evenly distributing revenue requirements on a year-to-year basis offsetting temporary cash flow deficiencies and
avoid significant increases in rates charges to customers in the years the replacement cost are incurred
Measure A Fund Reserve Policy
On June 15, 2018, Chula Vista voters approved Measure A Sales and Use Tax, a one-half (½) cent Public Safety
General Transactions and Use Tax (Sales Tax) in the City of Chula Vista. The Measure A Fund Reserve Policy
is established to avoid any impacts to the General Fund due to temporary sales tax revenue shortfalls, and to
establish the reserves necessary to meet known and unknown future obligations for the City’s Police and Fire
Departments.
Page 427 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 11 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
This policy establishes a Measure A Fund Economic Contingency Reserve.
Measure A Fund Economic Contingency Reserve
The City shall maintain a Measure A Fund Economic Contingency Reserve levels of no less than 60 days
(approximately 16% of the annual operating budget) of operations to provide for unexpected financial impacts
related to a significant economic slowdown. If funds are appropriated (spent) from the operating reserves due to
unanticipated needs, the funds should be replenished by that department in the budget process during the
subsequent fiscal year to maintain the minimum reserve balance. If the magnitude of the event caused the
Measure A Fund Economic Contingency Reserve to be deeply reduced, the City Manager and Finance Director
shall provide the City Council with a plan to incrementally replenish the reserves to the minimum level.
Authorized use (mid-year appropriations) of the Measure A Economic Contingency Reserve will require approval
by a (4/5) vote of the City Council.
Calculation of Measure A Fund Economic Contingency Reserves
The Measure A Fund Economic Contingency Reserve levels will be calculated using the prior year’s Adopted
Measure A Fund budgeted operating expenditures. The reserve level is defined as the number of days of operation
in its normal course of business and shall be calculated based on the annual operating budget for the fiscal year,
less any budgeted debt service. Reserves will be evaluated annually in conjunction with the development of the
Annual Budget process. There is no maximum reserve level as any reserves above the required minimum would
provide a greater level of fiscal security in the case of an unexpected economic slowdown. Any reserves above
the required minimum could also be used to support public safety, consistent with the Measure A Public Safety
Expenditure Plan through the application of Measure A sales tax revenues that will ensure the best return on
investment in terms of staffing improvements for the improved deployment of resources and include the used of
these non-recurring funds for one-time essential public safety purchases (i.e., capital, consulting, software, etc.)
Ambulance Transport System Enterprise Fund Reserve Policy
On May 12, 2020, City Council approved Chula Vista Council Resolution No. 2020-102 directing the Fire
Department to provide exclusive Emergency Medical Ambulance Transport Services (ATS) within the City of
Chula Vista, the City of Imperial Beach, and the Bonita Sunnyside Fire Protection district. In the resolution were
revenue projections that included both a base rate and ancillary fees multiplied by the volume of transports to
reach projected FY2022 revenues. The resolution adopted a rate of $2,800 as the “Base Cost of Service”. In
addition, Resolution No. 2020-103 authorized a purchase agreement with Republic EVS for purchase of 13
ambulances; Resolution No. 2020-104 authorized a purchase agreement with Stryker Medical for gurney systems;
Resolution No. 2020-105 authorized a sole source purchase agreement with Zoll Medical Corporation for cardiac
monitors and auto pulse systems; and Resolution No. 2020-106 authorized a sole source purchase agreement with
Motorola Solutions. These resolutions resulted in loan agreements in the amount of $4,493,100 with Banc of
America Public Capital Corp, and an interfund loan in the amount of $4,881,710 from the Measure A available
fund balance. These loans are being utilized to provide funding for all capital purchases and start-up costs
associated with the Ambulance Transport Program. The interfund loan from Measure A was agreed to be repaid
Page 428 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 12 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
within the first five (5) full years of operation of the ATS program at an interest rate equal to the City’s pooled
investment rate of return, which was approximately 2.2% at the time the interfund loan was approved by City
Council. The loan from Banc of America Public Capital Corp is repaid in semiannual payments with an annual
interest rate of 1.00%.
This policy establishes a formal ATS Enterprise Fund Reserve Policy. The fund reserve policy is to provide
guidance to City Council and staff in making financial decisions and aid in ensuring fiscal responsibility of the
ATS Enterprise Fund. This policy establishes reserves that will position the Transport program to be able to
weather significant economic downturns and more effectively manage uncertainties. Sufficient reserves create
the financial stability necessary to meet debt obligations of the ATS Enterprise Fund, reduce the risk of impacting
the General Fund, and support continuous provision of emergency services to our residents.
This policy establishes four (4) distinct ATS Enterprise Fund Reserves:
1. Debt Obligation Reserve – Minimum 1-year current debt obligation
2. Operating Reserve – Minimum 180 days operating expenses
3. Capital Replacement Reserve - Minimum $4 million in capital replacement reserve
4. Liability Insurance Reserve - Minimum $1 million liability insurance reserve
Debt Obligation Reserve
The ATS Enterprise Fund will maintain a fund balance reserve equal to one fiscal year’s debt obligation. This
reserve is to ensure debt obligations are met to keep the City in good credit standing. In fiscal years with no
current debt obligations, the debt obligation reserve will be used to bring other reserve balances to their stated
policy levels. If all reserves have achieved minimum levels and no debt obligations exist, this reserve will be no
longer be required and any funds will be release for other use at the discretion of the Fire Department.
If funds are appropriated (spent) from the Debt Obligation Reserve due to unanticipated needs, the funds should
be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance.
If the magnitude of the event caused the Debt Obligation Reserve to be deeply reduced, the City Manager, Fire
Chief and Finance Director shall provide the City Council with a plan to incrementally replenish the reserve to
the minimum one-year debt obligation level. The provided plan will align with the budget process or quarterly
monitoring report, whichever occurs first.
Operating Reserve
An Operating Reserve represents unrestricted resources available for appropriations by City Council to address
extraordinary needs of an emergency nature. The ATS Enterprise Fund will maintain an Operating Reserve of no
less than 180 days of operating expenses. This will be calculated using the following fiscal year’s adopted expense
budget (excluding debt service and transfers-out), with the maximum reserve amount of twelve months of
operating expenses. The Fire Department reserves the right to maintain reserve balances at their discretion within
the minimum and maximum thresholds of 180 days and up to twelve months of operating expenses.
Page 429 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 13 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
If funds are appropriated (spent) from the Operating Reserve due to unanticipated needs, the funds should be
replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If
the magnitude of the event caused the Operating Reserve to be deeply reduced, the City Manager, Fire Chief and
Finance Director shall provide the City Council with a plan to replenish the reserves to the minimum operating
balance.
Capital Reserve
The ATS Enterprise Fund will maintain four million dollars in reserves specified for various capital equipment
replacement, as needed. This reserve is to ensure funds are available for various capital purchase needs as they
arise. This reserve is also being created to provide relief from the need to obtain debt-based funding for capital
or equipment needs. The Fire Department will reassess the need for capital reserve needs every three (3) years
and incorporate necessary adjustments into the budget process to ensure reserve goals are met in a manner that
are balanced with other budgetary priorities.
If funds are appropriated from the Capital Reserve due to anticipated or unanticipated needs, the funds should be
replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If
the magnitude of the event caused the Capital Reserve to be deeply reduced, the City Manager, Fire Chief and
Finance Director shall provide the City Council with a plan to replenishment the reserves to the minimum balance.
The provided plan will align with the budget process or quarterly monitoring report, whichever occurs first.
Liability Insurance Reserves
The ATS Enterprise Fund will maintain one million dollars in reserves specified for meeting liability insurance
needs as they arise. This reserve is to ensure claims can be addressed and fulfilled as they arise. The Fire
Department will reassess the need for liability insurance reserve needs every three (3) years and incorporate
necessary adjustments into the budget process to ensure reserve goals are met in a manner that are balanced with
other budgetary priorities.
If funds are appropriated from the Liability Insurance Reserve due to anticipated or unanticipated needs, the funds
should be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve
balance. If the magnitude of the event caused the Liability Insurance Reserve Reserves to be deeply reduced, the
City Manager, Fire Chief and Finance Director shall provide the City Council with a plan to replenish the reserves
to the minimum balance. The provided plan will align with the budget process or quarterly monitoring report,
whichever occurs first.
Establishment of Reserves
The ATS Enterprise Fund program is currently in its third year of operation. To establish the reserves outlined
above, until reserves are fully funded, all revenues in excess of expenses (surplus) at year end will be used to
fund reserves. In determining the surplus, expenses will include any discretionary Measure A loan payment.
These reserves will be established as an equal 25% allocation to each reserve category of excess revenue at year
end, after any discretionary Measure A loan payment.
Page 430 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Citywide Reserve Policy – Fiscal Health Plan POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-03 05/28/24 14 of 14
ADOPTED BY: Resolution No. 18358 DATED: 07/09/96
AMENDED BY: Resolution Nos. 2009-264 (11/05/2009); 2020-254 (11/03/2020); 2024-XXX (05/28/24)
The funding waterfall will be evaluated periodically and may be revised by the Finance Director in consultation
with the Fire Chief.
Page 431 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
CITY OF CHULA VISTA
PENSION COST MANAGEMENT STRATEGIES &
POLICY CONSIDERATIONS
MAY 28, 2024
Page 432 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
Executive Summary
City issued $350M of Pension Obligation Bonds (“POB”) in February 2021 to refinance &
restructure its CalPERS Unfunded Actuarial Liability (“UAL”)
Objectives included cash flow savings and smoothing pension payments to enhance fiscal sustainability
New $85M UAL (6/30/2022 CalPERS Report)
After POB, City benefited from initial CalPERS investment generating ~$116M surplus (overfunded)
New UAL payments start FY 2024-25
CalPERS FY 2022-23 Investment Returns: 6.1%
Loss will increase UAL to ~$100M (6/30/2023 CalPERS Report)
Considerations for managing future Pension & General Fund Debt Liabilities:
Update Pension & OPEB Reserve Fund Policy to provide flexibility of POB Bond Call Reserve
Section 115 Trust Smoothing and Additional Discretionary Payments (“ADPs”) can help stabilize pension
cost volatility
Page 433 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
Table of Contents
I.Background on CalPERS Costs
II.Historical and Projected CalPERS Costs
III.Recap of City’s 2021 Pension Obligation Bonds
IV.Potential Pension Cost Management Strategies
V.Policy Considerations
VI.Conclusion
Page 434 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
I. BACKGROUND ON CALPERS COSTS
Page 435 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
5
Market Value
of CalPERS
Assets:
$1.2 Billion
Accrued
Liability:
$1.3 Billion
Shortfall (UAL):
$85.3 Million
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
Bi
l
l
i
o
n
s
City of Chula Vista Pension Funded Status
Background on How CalPERS Works
Two Payments Made to CalPERS Annually
(1) Normal Cost (“NC”) =
Annual cost for current
employees
(2) Unfunded Accrued
Liability (“UAL”): Annual
payment to amortize the
“debt” to CalPERS
UAL is amortized over 20
years
New UAL is created when
CalPERS investment returns
<6.80%
Source: CalPERS Actuarial Reports. Reflects UAL balance as of 6/30/2022.
Page 436 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
6
($2.0)
($1.0)
$0.0
$1.0
$2.0
$3.0
$4.0
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
Mi
l
l
i
o
n
s
Net UAL Payments
Reason for
Base
Ramp
Shape Term Size of Base
Assumption
Change No Ramp 20 $5,000,000
Method
Change Up/Down 15 $7,000,000
Investment
Loss Ramp Up 10 $9,000,000
Investment
Gain Ramp Up 10 ($10,000,000)
Hypothetical amortization bases shown for
presentation purposes.
UAL Comprises Multiple Layers With Own Size, Shape and Term
New Layers Added Every Year Impacting Overall Shape of Repayment
Page 437 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
7
Now …
Investment Returns Not Meeting
Assumptions
Assumptions have changed
Discount Rate: 8.25% → 7.00% → 6.80%
Inflation rate (prices going up)
Mortality rates (people living longer)
Actuarial Valuation → Market Valuation
Shorter, more conservative amortizations
UAL payments have grown rapidly from past
changes, remain exposed to the effects from
future poor investment returns and assumption
changes
Why CalPERS Contribution Costs Have Trended Higher
Then (late 1990s)…
Robust investment returns (10%+)
Retirement plans were “Super-
Funded” through the 1990s
Investment Earnings cover
retirement costs
Lower Contribution Requirements
Allowed Benefit Enhancements
Past funding policies led to
contribution holidays and “free”
benefit improvements
Historical PERS
Returns
(as of
6/30/2023)
5-Year: 6.1%
10-Year: 7.1%
20-Year: 7.0%
30-Year: 7.5%
Page 438 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8
Employee Contributions: ≈11-13%
Employer Contributions: ≈29-32%
•Normal Cost: Payments to keep up with current
employees
•UAL: Payments to amortize the Unfunded Accrued
Liability
Investment Earnings: ≈55-60%
•Investment earnings used to make up a higher
percentage (> 65-70%) of total contributions (pre-
2008)
•As investments underperform assumptions,
employers must make up the difference
Retirement Benefits
& Plan Expenses
Employees
Employers
Investment Earnings
How Retirement Benefits Get Funded
Money Going In vs. Money Going Out
Page 439 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
9
Background -Retirement Plans
2 Main CalPERS plans
Miscellaneous:2,552 covered
members
Public Safety:960 covered
members
PEPRA helpful to manage long
term pension costs for new
employees
However, over 99% of current
UAL is estimated to come from
Classic plans and not reduced
by PEPRA
Source: CalPERS Actuarial Valuation Report as of June 30, 2022
Page 440 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
II. HISTORICAL AND PROJECTED CALPERS COSTS
Page 441 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
11
$0
$5
$10
$15
$20
$25
$30
$35
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
2021 POB
2023:
$99.8M
2022:
$85.3M
2021:
-$116M
2020:
$366M
UAL
Balance
(FYE):
Historical & Projected UAL + 2021 Pension Obligation Bond Payments
UAL Payments
(6/30/2022 Actuarial Valuation)
Historical
UAL
Payments
Source:CalPERS Pension Outlook Tool &Actuarial Valuation Reports
*UAL balance and annual payments are projections from the CalPERS Pension
Outlook Tool.Assumes FY 2022-23 investment returns of 6.1%,which is the
money-weighted rate of return reported by CalPERS in its FY 2022-23 Annual
Comprehensive Financial Report.
Projected Additional UAL Payments
from 6.1% FY 2022-23 Returns*Returns:
4.7%
21.3%
-7.5%
6.1%*
Page 442 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
12
$0
$10
$20
$30
$40
$50
$60
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
Total Projected Pension Payments (UAL + Normal Cost + POB)
Annual Normal Cost
Contributions ~$19M
through 2045
Total pension payments
projected to increase to
$51M (2035)
Max @ $55M (2044)
Pension costs as % of
General Fund budget
projected to increase
through 2030
FY 2023-24 pension
payment accounts for
13.2% of total General
Fund budget
UAL payments start in
FY 2024-25
Source:CalPERS Actuarial Valuation Reports and CalPERS Pension
Outlook Tool. Pension Outlook Tool assumes FY 2022-23 returns of 6.1%
and 6.80% returns from FY 2023-24 onward.
2021 POB
Normal Cost
UAL
Page 443 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
III. RECAP OF CITY ’S 2021 PENSION OBLIGATION
BONDS
Page 444 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
14
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
20
2
2
20
2
3
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
2021 Pension Obligation Bonds
Summary of Strategy
Strategy:
Restructure UAL
over 24 years
Bond Stats:
All-In Cost: 2.54%
$158M PV Savings*
Goals:
Maximize cash flow
savings
Absorb future UAL
“shocks”
Create pension
funding policy
2021 POB Debt Service
General Fund-Allocable
Lease Bonds Debt Service
UAL Payments + General Fund-
Allocable Lease Bonds Debt
Service Before 2021 POB
*Savings calculated at the time of the POB issuance in February 2021, assuming CalPERS
would meet its annual target investment return each year after the POB issuance.Page 445 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
15
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
What Happened After the 2021 POB?
-7.5% Investment Returns in 2022 and 6.1% in 2023
Source:CalPERS Actuarial Valuation Reports and CalPERS Pension Outlook Tool. Pension
Outlook Tool assumes FY 2022-23 returns of 6.1% and 6.80% returns from FY 2023-24
onward. 6.1% is the money-weighted rate of return reported by CalPERS in its FY 2022-23
Annual Comprehensive Financial Report.
UAL Added from
FY 2022 and 2023
UAL + General Fund-Allocable Lease
Bonds Debt Service If No POB
2021 POB Debt ServiceGeneral Fund-Allocable
Lease Bonds Debt Service
Page 446 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
IV. POTENTIAL PENSION COST MANAGEMENT
STRATEGIES
Page 447 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
17
Cost-Containment Strategies –Not Mutually Exclusive
(1) Prepay UAL early in Fiscal Year (≈ 3.3% discount)
(2) Negotiate Cost Sharing With Employees
•Require employees to pay their share; new employees already governed by lower cost/benefit PEPRA plans
•Negotiated cost sharing of the City’s share
(3) Voluntary Fresh Start Amortization offered by CalPERS
•Pros: Smooths payment, shortens repayment period; reduces overall interest paid from shorter amortization period
•Cons: New structure “locked-in” + increased annual payments in near term; still amortized at discount rate
(4) Use Cash Reserves to Pay Extra (two options)
•Section 115 Trust –Separate trust solely dedicated to pension/OPEB City has a $25.7M (as of 6/30/2023) Section
115 Pension Trust
•ADP –Reduce UAL through direct lump sum payment to CalPERS
•Choose optimal amortization bases to pay off
(5) Restructure All or Portion of Remaining UAL
•Restructure portion of UAL at lower bond interest rate and “smooth out” payments for enhanced budget predictability,
near and mid-term potential savings, and preservation of cash for other critical projects
Page 448 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
18
Additional Discretionary Payment (“ADP”)
What is it?City makes ADP directly to CalPERS and CalPERS eliminates payments
associated with the portion of the UAL paid off, essentially giving the City credit at
the discount/interest rate (currently 6.8%)
The proceeds from the City’s 2021 POB were essentially used to make a very large ADP
Advantages:
Reduced UAL / higher CalPERS funding ratio
Reduced future payments
Broader, less restrictive CalPERS investment portfolio has potential for higher returns
Disadvantages:
Requires reserves / surplus to fund
Re-investment and market timing risk with ADP funds
Less budgetary flexibility and investment control (vs. Section 115 Trust option)
Page 449 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
19
Section 115 Trust
What is it? Restricted Account for pension/OPEB
Advantages:
Potential Higher Investment Returns in Managed Account
Longer-Term Benefit: Trust funds can grow over time and pay off a large % of UAL in the future
Shorter-Term Benefit: Apply funds to “smooth”payment spikes in UAL and/or Normal Cost
Flexibility –more investment options than CalPERS and the City can decide when and how to
use
Potential shock absorber for volatility from CalPERS investment performance & assumption
changes
Disadvantages:
Doesn’t directly reduce UAL until funds are transferred to CalPERS
Requires reserves/surplus contributions to build account balance
Investment risk (dependent on type of investment portfolio)
Page 450 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
20
Background & Concept
The City has built up a Section 115 Trust balance of $25.7 million (as of
6/30/2023) that is on track to meet the City’s policy target of 15% of General
Fund expenses
Section 115 Smoothing:
City can grow its Section 115 Trust balance and selectively withdraw funds in
future years to smooth and manage annual pension payments at lower levels
The City’s annual UAL payment is projected to be covered by POB savings for the next
several years, allowing the Trust balance to grow uninterrupted for the next several
years
This smoothing strategy can be executed in conjunction with other cost
management strategies, including ADPs and pension bond paydowns
Page 451 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
21
OPTION Section 115 Trust CalPERS ADP
Reduced UAL & UAL
Payments with CalPERS No Yes
Reduced Pension Liability
in Financial Statements
No (but Trust will show up as an asset
on the City’s financial statements)Yes
Control of Investment
Strategy Yes No
Funds Managed By Trust Administrator (PARS for the
City’s Trust) CalPERS
Flexibility in Uses Yes No
Enhanced Budgetary
Flexibility Yes Limited
Savings Varies; Depends on when City utilizes
funds to pay liabilities
Immediate; Length of time varies
based on which amortization
bases are paid off
Comparison of Section 115 Trust & CalPERS ADP
Page 452 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
22
Additional Cost Savings Considerations
Section 115 Smoothing vs. ADPs
While applying funds toward a Section 115 Trust or ADPs are both proactive approaches for
UAL cost management, there are a few additional considerations:
Section 115:
Assets remain accessible as a balance sheet asset in the event unexpected needs arise
Supports flexible drawdown approaches for managing and smoothing annual pension costs
While providing access to potentially higher-earning investment opportunities than LAIF, a more conservative
investment strategy may not create the same nominal benefit as paying down 6.8% UAL with CalPERS
CalPERS ADPs:
Directly pays down UAL with CalPERS, boosting funding ratios
Reduces future UAL payments with credit at a 6.8% interest (i.e. discount) rate
Proceeds sent to CalPERS, however, cannot be clawed back
Ability to smooth future UAL payments subject to shape of individual UAL amortization base layers
Given City’s current funding ratios (92-93%), potential “super” funding of plans should be kept in mind
Page 453 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
V. POLICY CONSIDERATIONS
Page 454 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
24
Overview of City’s Reserve Policy
Comprehensive Reserve Policy revised and adopted in November 2020
Provides funding mechanism and flow of funds priority for 6 distinct reserves /
funds
Pension Reserve Fund, OPEB Fund, and POB Bond Call Reserve were
developed to address future pension and OPEB costs and potentially pay off
the 2021 POBs prior to maturity
Page 455 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
25
Potential Policy Changes for Consideration
Current POB
Net Savings
Policy
POB Net
Savings
Update
POB Net Savings Pension Reserve
Fund (15%)
POB Net Savings
POB Net Savings*
Annual UAL
Payment to
CalPERS
CalPERS ADP to
Target Funding
Level (Up to 95%)
75%
Bond Call Fund
OPEB Reserve
Fund
(75% of Liability)
Surplus
25%
Pension Reserve Fund
(Up to 15%)
POB Net Savings*
OPEB Reserve
Fund
(75% of Liability)
POB Bond Call
Fund Surplus
POB Net Savings
50%50%
*75% of the net annual savings from the issuance of the
POBs
Page 456 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
26
Potential Policy Changes for Consideration
General Fund Operating
Reserves (15%)
Pension Reserve Fund
(Up to 15%)
Economic Contingency
(5%) & Catastrophic
Event Reserves (Up to
3%)
75%25%Surplus
Surplus
Surplus Funds
OPEB Reserve
Fund
(75% of Liability)
POB Bond Call
Fund Surplus
50%50%
Current
Surplus Funds
Policy
Surplus
Funds Policy
Update
General Fund Operating
Reserves (15%)
Pension Reserve Fund
(15%)
Economic Contingency
(5%) & Catastrophic
Event Reserves (3%)
Surplus Funds
75%
Bond Call Fund
OPEB Reserve
Fund
(75% of Liability)
Surplus
25%
Surplus Funds
Page 457 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
27
Considerations for Reserve Policy & Pension Cost Management
•Expand the scope of the POB bond call reserve to encompass other more expensive
City/General-Fund debt, including potential Lease Revenue Bond/COP issues & UAL
•Allows City to 1) increase financial benefit from intended interest cost savings and 2) pay
down outstanding debt sooner than allowable for the 2021 POB (2031 par call)
Re -evaluating Scope
of POB Bond Call
Reserve
•Surplus from the PRF flows to the OPEB and POB bond call reserves, and the City can
consider adjusting the PRF target if it would like to allocate more/less toward restricted
pension funds
•Higher PRF balance allows for more impactful cost-smoothing strategies, but more
restricted funds
Sizing of Pension
Reserve Fund/115
Trust
•City can maintain PRF target balance while proactively addressing future pension costs
by allocating remaining surpluses first towards ADPs or smoothing annual pension
payments
•Once target plan funded ratios are achieved, additional surpluses can flow to other
buckets
Annual ADPs /
Section 115 Trust
Smoothing
Page 458 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
28
Additional Policy Considerations
Expanding Bond Call Reserve Policy to allow savings opportunities
Allows for one-time monies to be used for one-time expenditures
Can be used to call bonds before final maturity, providing ongoing budgetary savings in future years
City can prioritize surpluses after funding the Section 115 Trust toward annual
CalPERS ADPs to increase plans’ funded ratios (95% -100%) before building up the
Bond Call and OPEB Reserve
Achieves greater total savings than paying down an equivalent amount of 2021 POBs
Enables City to proactively address scheduled pension cost increases at more manageable levels
Page 459 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ANALYSIS SCENARIO #1:
PENSION & OPEB RESERVE POLICY STATUS QUO
Page 460 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
30
Scenario #1 Summary
In Scenario #1, NHA assumes surplus funds flow through the City’s Reserve
Policy as established
NHA calculates that the City would have $29.8 million in its Bond Call Reserve
to partially pay down the POB at first optional redemption on June 1, 2031
Assumes pay down of longest maturities on the POB to maximize savings
Net Savings for Scenario #1
Gross Savings from POB Paydown:$41,574,933
Funds Used for POB Paydown:($29,781,632)
Net Savings:$11,793,301
Page 461 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
31
Scenario #1 Net Payments
*Pension Outlook Tool assumes FY 2022-23 returns of 6.1% and 6.80% returns from FY
2023-24 onward. 6.1% is the money-weighted rate of return reported by CalPERS in its FY
2022-23 Annual Comprehensive Financial Report.
$0
$5
$10
$15
$20
$25
$30
$35
$40
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
2021 POB General Fund Allocable Lease Debt Service
Projected UAL Payments (CalPERS Pension Outlook Tool)*Scenario #1 Net Payments
Page 462 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
ANALYSIS SCENARIO #2:
PROPOSED RESERVE & OPEB POLICY
Page 463 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
33
Scenario #2 Summary
In Scenario #2, NHA assumes ADPs are made with some of the surplus that would previously
flow to the Bond Call and OPEB Reserve
Targets an approximate 95% funded ratio before surplus resumes flowing to the Bond Call and
OPEB Reserve
City would make ADPs (from surpluses) in fiscal years 2024 –2027, totaling $28.8 million
From 2028 –2031, remaining surpluses would build up the City’s Bond Call Reserve to $18.7
million, which would be used to partially pay down the POB at first optional redemption on
June 1, 2031
Net Savings for Scenario #2
Gross Savings from ADPs + POB Paydown:$80,404,818
Funds Used for ADPs + POB Paydown:($47,464,284)
Net Savings:$32,940,534
Page 464 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
34
Scenario #2 Net Payments
*Pension Outlook Tool assumes FY 2022-23 returns of 6.1% and 6.80% returns from FY
2023-24 onward. 6.1% is the money-weighted rate of return reported by CalPERS in its FY
2022-23 Annual Comprehensive Financial Report.
$0
$5
$10
$15
$20
$25
$30
$35
$40
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
2021 POB General Fund Allocable Lease Debt Service
Projected UAL Payments (CalPERS Pension Outlook Tool)*Scenario #2 Net Payments
Page 465 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
COMPARISON OF SCENARIO #1 AND #2
Page 466 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
36
Scenarios Analysis: Summary
The difference in potential savings is attributable to how much higher costing debt (e.g., UAL vs. POB) is being
paid down
Note: While ADPs pay down 6.8% debt with CalPERS, the ADPs are invested by CalPERS and are subject to future CalPERS
returns
More funds are used in Scenario #2 because ADPs will theoretically lower future UAL payments and free up more
surplus to be used for additional ADPs
Paying down more UAL generates higher projected savings, however the City could see reduced upside potential
from any long-term overfunding scenarios if CalPERS achieves sustained outperformances
Scenario #:#1 Status Quo #2 Proposed Difference
Gross Savings:$41,574,933 $80,404,818 $38,829,885
Funds Used:($29,781,632)($47,464,284)($17,682,652)
Net Savings:$11,793,301 $32,940,534 $21,147,233
Net Savings Comparison
Page 467 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
37
Scenario Comparison
*Pension Outlook Tool assumes FY 2022-23 returns of 6.1% and 6.80% returns from FY
2023-24 onward. 6.1% is the money-weighted rate of return reported by CalPERS in its FY
2022-23 Annual Comprehensive Financial Report.
$0
$5
$10
$15
$20
$25
$30
$35
$40
20
2
4
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
20
3
6
20
3
7
20
3
8
20
3
9
20
4
0
20
4
1
20
4
2
20
4
3
20
4
4
20
4
5
Mi
l
l
i
o
n
s
2021 POB Est. Allocable General Fund Debt Service UAL Payments*Scenario #1 Scenario #2
Page 468 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
VI. CONCLUSION
Page 469 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
39
Takeaways
Rising pension costs are a challenge facing most public agencies, and the City has
tackled the challenge through strategies such as:
Issuing a strategic POB in a low interest rate environment
Establishing a pension funding policy
Building up Section 115 Trust reserves
However, the UAL challenge has returned mainly due to recent poor CalPERS
investment returns, potentially increasing the City’s UAL to $100M
To assist with proactive pension and General Fund debt management, the City can
consider the following:
Expand the scope of its POB Bond Call Reserve to encompass more expensive debt
Leverage POB net savings to make direct ADPs to CalPERS to pay down UAL
Consider target funded ratios
Page 470 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Consolidate Various Council
Policies into a Single Citywide
Reserve Policy
May 28, 2024
Page 471 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
41
Summary of Proposed Policy Changes
Consolidation of Reserve Policies
Change in Calculation of Reserve Level
Updated Funding Allocation & Uses
Page 472 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Citywide Reserve Policy
•General Fund
•Pension & OPEB
•Measure A Fund
•Sewer Service Fund
•Ambulance Transport Fund
42
Consolidation of Reserve Policies
Page 473 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Prior Year’s Budget instead
of Future Year’s Budget.
Clarification of Operating
Expenditures
43
Change in Calculation of Reserve Level
Page 474 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
44
Updated Funding Allocation & Uses
POB Net Savings Pension Reserve
Fund (15%)
POB Net Savings
POB Net Savings*
Annual UAL Payment
to CalPERS
CalPERS ADP to
Target Funding Level
(Up to 95%)
75%
Bond Call Fund OPEB Reserve Fund
(75% of Liability)Surplus
25%
*75% of the net annual savings from the
issuance of the POBs Page 475 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
45
Scenarios Analysis: Summary
The difference in potential savings is attributable to how much higher costing debt (e.g., UAL vs. POB) is being
paid down
Note: While ADPs pay down 6.8% debt with CalPERS, the ADPs are invested by CalPERS and are subject to future CalPERS
returns
More funds are used in Scenario #2 because ADPs will theoretically lower future UAL payments and free up more
surplus to be used for additional ADPs
Paying down more UAL generates higher projected savings, however the City could see reduced upside potential
from any long-term overfunding scenarios if CalPERS achieves sustained outperformances
Scenario #:#1 Status Quo #2 Proposed Difference
Gross Savings:$41,574,933 $80,404,818 $38,829,885
Funds Used:($29,781,632)($47,464,284)($17,682,652)
Net Savings:$11,793,301 $32,940,534 $21,147,233
Net Savings Comparison
Page 476 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
46
Policy Comparison
POB and UAL Payment and Savings*
(in millions)
Current Proposed Difference
Additional Discretionary Payment $ -$ 28.8 $ 28.8
Bond Call Payment 29.8 18.7 (11.1)
Total Payments $ 29.8 $ 47.5 $ 17.7
ADP Savings $ -$ 54.2 $ 54.2
Bond Call Savings 41.5 26.2 (15.3)
Total Savings $ 41.5 $ 80.4 $ 38.9
Net Savings $ (11.7)$ (32.9)$ (21.2)
*Based on the 6.30.2022 CalPERS report and NHA projections Page 477 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
General Fund Long-Term Financial Plan
47
Adopted Projected
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Major Discretionary Revenues 219.0$ 229.3$ 231.5$ 217.6$ 224.7$ 232.1$ 239.7$ 247.6$ 255.7$ 264.1$
Other Revenues 55.2 55.9 56.7 57.5 57.8 58.0 58.8 59.6 60.5 61.4
New Development Revenues - 2.7 3.5 3.8 4.0 4.1 4.2 4.4 4.5 4.7
Total General Fund Revenues 274.1$ 287.9$ 291.7$ 278.9$ 286.5$ 294.1$ 302.7$ 311.6$ 320.7$ 330.2$
Personnel Services Expenditures 147.3$ 156.6$ 164.8$ 171.1$ 177.5$ 183.1$ 188.0$ 193.3$ 198.9$ 204.3$
Other Expenditures 126.8 126.4 121.1 99.6 100.5 102.4 105.0 104.0 106.5 106.7
New Development Expenditures - 5.3 6.4 7.0 7.4 7.7 8.0 8.2 8.4 8.5
Total General Fund Expenditures 274.1$ 288.2$ 292.4$ 277.7$ 285.4$ 293.3$ 300.9$ 305.5$ 313.8$ 319.5$
General Fund Surplus / (Deficit)- (0.3) (0.7) 1.2 1.1 0.8 1.8 6.0 7.0 10.7
Estimated Balances 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Pension Reserve Fund 32.3$ 33.6$ 35.0$ 36.1$ 37.3$ 38.5$ 39.8$ 41.0$ 42.4$ 43.8$
Balance of Bond Call Fund - - - 4.9 9.2 13.8 18.7 - - -
Balance of OPEB Reserve - - - 1.6 3.1 4.6 6.2 6.2 6.2 6.2
Page 478 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Approve the “Resolution of the City Council of the City of Chula
Vista amending and repealing various City Council Policies
related to reserves into a consolidated Citywide Reserve Policy”
48
Recommended Action
Page 479 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Consolidate Various Council
Policies into a Single Citywide
Reserve Policy
May 28, 2024
Page 480 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
v . 0 04 P a g e | 1
May 28, 2024
ITEM TITLE
Agreement: Approve an Agreement with The Centre for Organization Effectiveness to Complete a New
Citywide Five-Year Strategic Plan
Report Number: 24-0183
Location: No specific geographic location
Department: City Manager
G.C. § 84308: Yes
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. Notwithstanding the foregoing, the activity qualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Adopt a resolution approving an agreement with The Centre for Organization Effectiveness to complete a
new citywide five-year strategic plan.
SUMMARY
The City’s current strategic plan was completed in 2013. This plan has served as a framework for the City,
but based on the amount of time since the last strategic plan was completed it is time to refresh the City’s
plan. In accordance with the Chula Vista Municipal Code Section 2.56.110, the City solicited proposals for
the development of a new city-wide strategic plan. After an evaluation of the firms that submitted proposals,
staff recommends approving an agreement with The Centre for Organization Effectiveness to complete a new
five-year citywide strategic plan.
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.
Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption
Page 481 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 2
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no
environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City current strategic plan, completed in 2013, contains five core goals:
Operational Excellence
Economic Vitality
Healthy Community
Strong and Secure Neighborhoods
Connected Community
Since 2013 the City has adopted a number of planning documents and policies which may inform the
development of a new strategic plan. The guiding documents that have been created or updated since the
current strategic plan was developed include:
City Manager’s Annual Report
Climate Action Plan
Digital Equity and Inclusion Plan
Fire Facility, Equipment and Deployment Master Plan
Justice, Equity, Diversity and Inclusion (JEDI) Action Plan (in progress)
Long Term Financial Plan
Parks and Recreation Master Plan
Police Department Five-Year Strategic Plan
Public Library Strategic Vision Plan and Strategic Facilities Plan
Smart City Strategic Action Plan
Technology Oversight and Privacy Policy
Telecommunications Master Plan
The City issued a request for proposal (RFP P03-2024) for a consultant team to facilitate a comprehensive
municipal strategic planning process that builds upon the City’s many independent guiding documents and
engages the community, City Council, and City staff in producing an actionable and achievable five-year
citywide strategic plan (Attachment 2). Specifically, drafting a strategic plan, which is conceptually
envisioned to include the following elements, and to reflect the input and direction provided by the City
Council:
Executive Summary
Mission, Vision and Values Statements
Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
5-Year Strategic Plan
City Council Goals & Objectives
Page 482 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
P a g e | 3
Policies and Strategies to Achieve the Goals and Objectives
Implementation Timeline
Two-year Implementation Plan and Resourcing Strategy
Performance Measures
Strategic Planning Cycle
Annual Report Template
The City received five proposals in response to RFP P03-2024. The City’s selection committee completed its
review of proposals and selected The Centre for Organization Effectiveness. The Centre for Organization
Effectiveness is a Joint Powers Authority, founded in 1993, committed to advancing the public good by
inspiring excellence in leaders and organizations. Based in San Diego, The Centre for Organization
Effectiveness has a long history of supporting public agencies across the State of California with
Organizational Development initiatives.
The agreement provides for compensation in the amount of $102,810 for the Project Plan (Attachment 3).
Staff is recommending the agreement incorporate a not to exceed amount of $120,000 in the event the scope
increases/changes during the course at a confirmed billable hourly rate.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council members, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no additional current-year fiscal impact as a result of this action. Work is expected to occur over a
two-year period. Funding is available in the fiscal year 2023-24 adopted budget to cover costs expected to
be incurred in the current year.
ONGOING FISCAL IMPACT
The fiscal year 2024-25 adopted budget includes sufficient funds to cover project costs anticipated in year
two of the agreement. There are no ongoing costs associated with approval of this item.
ATTACHMENTS
1. The Centre for Organization Effectiveness Agreement
2. RFP P03-2024 – Citywide Strategic Plan
3. Project Plan Timeline
Staff Contact: Courtney Chase, Deputy City Manager
Page 483 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT WITH THE
CENTRE FOR ORGANIZATION EFFECTIVENESS TO
COMPLETE A NEW CITYWIDE FIVE-YEAR STRATEGIC
PLAN
WHEREAS, the City last completed a citywide strategic plan in 2013; and
WHEREAS, the City wishes to complete a new, citywide five year strategic plan; and
WHEREAS, in order to procure these services, the Finance Department solicited proposals
in accordance with City of Chula Vista Municipal Code Section 2.56.110; and
WHEREAS, the City received five proposals in response to the request for proposal P03-
2023; and
WHEREAS, the City’s selection committee completed its review of proposals and selected
The Centre for Organization Effectiveness; and
WHEREAS, the City desires to contract with the Centre for Organization Effectiveness to
complete City’s five year strategic plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves an agreement with The Centre for Organization Effectiveness for a citywide five
year strategic plan, 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 City Manager to execute same.
Presented by Approved as to form by
Courtney Chase Marco A. Verdugo
Deputy City Manager City Attorney
Page 484 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
1 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
CITY OF CHULA VISTA
CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT
WITH THE CENTRE FOR ORGANIZATION EFFECTIVENESS
TO PROVIDE A FIVE-YEAR CITYWIDE STRATEGIC PLAN
This Agreement is entered into effective as of June 1, 2024 (“Effective Date”) by and between the City of Chula
Vista, a chartered municipal corporation (“City”) and The Centre For Organization Effectiveness, a Joint
Powers Authority (“Contractor/Service Provider”) (collectively, the “Parties” and, individually, a “Party”) with
reference to the following facts:
RECITALS
WHEREAS, the City last completed a citywide strategic plan in 2013; and
WHEREAS, the City wishes to create a new, citywide five-year strategic plan: and
WHEREAS, in order to procure these services City solicited proposals in accordance with Chula Vista
Municipal Code Section 2.56.080 for contracts exceeding $100,000, received five (5) proposals, and selected
Consultant as the most qualified amongst those submitting; and
WHEREAS, Contractor/Service Provider warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with
the time frames and the terms and conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
Page 485 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and
Contractor/Service Provider hereby agree as follows:
1. SERVICES
1.1 Required Services. Contractor/Service Provider agrees to perform the services, and deliver to City the
“Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference,
within the time frames set forth therein, time being of the essence for this Agreement. The services and/or
Deliverables described in Exhibit A shall be referred to herein as the “Required Services.”
1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor/Service
Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service Provider
under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and confer in good
faith for the purpose of negotiating a corresponding reduction in the compensation associated with the
reduction.
1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and
ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider
provide additional services related to the Required Services (“Additional Services”). If so, City and
Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an
amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the
Additional Services shall be charged and paid consistent with the rates and terms already provided therein.
Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this
Agreement.
1.4 Standard of Care. Contractor/Service Provider expressly warrants and agrees that any and all Required
Services hereunder shall be performed in accordance with the highest standard of care exercised by members
of the profession currently practicing under similar conditions and in similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual
approval only and does not relieve the Contractor/Service Provider of responsibility for complying with all
laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions,
noncompliance with industry standards, or the willful misconduct of the Contractor/Service Provider or its
subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for
Contractor/Service Provider to provide additional security for performance of its duties under this Agreement,
Contractor/Service Provider shall provide such additional security prior to commencement of its Required
Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7 Compliance with Laws. In its performance of the Required Services, Contractor/Service Provider
shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal
Code.
1.8 [Intentionally Omitted]
Page 486 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
1.9 Subcontractors. Prior to commencement of any work, Contractor/Service Provider shall submit for
City’s information and approval a list of any and all subcontractors to be used by Contractor/Service Provider
in the performance of the Required Services. Contractor/Service Provider agrees to take appropriate measures
necessary to ensure that all subcontractors and personnel utilized by the Contractor/Service Provider to
complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and
policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any
responsibilities of the Contractor/Service Provider under this Agreement, Contractor/Service Provider shall
ensure that each and every subcontractor carries out the Contractor/Service Provider’s responsibilities as set
forth in this Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or
Contractor/Service Provider’s commencement of the Required Services hereunder, and shall terminate,
subject to Sections 6.1 and 6.2 of this Agreement, when the Parties have complied with all their obligations
hereunder; provided, however, provisions which expressly survive termination shall remain in effect.
2. COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to compensate
Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard
terms for billing and payment are set forth in this Section 2.
2.2 Detailed Invoicing. Contractor/Service Provider agrees to provide City with a detailed invoice for
services performed each month, within thirty (30) days of the end of the month in which the services were
performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following
the Effective Date of the Agreement. All charges must be presented in a line item format with each task
separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed,
the amount invoiced to date, and the remaining amount available under any approved budget.
Contractor/Service Provider must obtain prior written authorization from City for any fees or expenses that
exceed the estimated budget.
2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and
confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall
pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made in
accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion,
invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced.
2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed
on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the
holdback amount will be issued to Contractor/Service Provider.
2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider’s out-of-pocket costs
incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in advance
and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor/Service Provider shall be
responsible for any and all out-of-pocket costs incurred by Contractor/Service Provider in the performance of
the Required Services.
2.6 Exclusions. City shall not be responsible for payment to Contractor/Service Provider for any fees or
costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City
shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or
Page 487 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
4 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider, its
agents, employees, or subcontractors.
2.7 Payment Not Final Approval. Contractor/Service Provider understands and agrees that payment to
the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the
performance of Required Services does not constitute a City final decision regarding whether such payment
or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a
waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines
that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City will
notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return such
amount.
3. INSURANCE
3.1 Required Insurance. Contractor/Service Provider must procure and maintain, during the period of
performance of Required Services under this Agreement, and for twelve months after completion of Required
Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by
this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of
this Section.
3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the
Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact
business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed
with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines
Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation
Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4 Subcontractors. Contractor/Service Provider must include all sub-Contractor/Service Providers/sub-
contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating
separate coverage for those not under its policies. Any separate coverage for sub-Contractor/Service Providers
must also comply with the terms of this Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as
additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified
as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability
additional insured coverage must be provided in the form of an endorsement to the Contractor/Service
Provider’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude
Products/Completed Operations coverage.
3.6 General Liability Coverage to be “Primary.” Contractor/Service Provider’s general liability coverage
must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers.
Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is
wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves
Contractor/Service Provider from its responsibility to provide insurance.
3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required
insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail,
Page 488 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
5 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
return receipt requested. Prior to the effective date of any such cancellation Contractor/Service Provider must
procure and put into effect equivalent coverage(s).
3.8 Waiver of Subrogation. Contractor/Service Provider’s insurer(s) will provide a Waiver of Subrogation
in favor of the City for each Required Insurance policy under this Agreement. In addition, Contractor/Service
Provider waives any right it may have or may obtain to subrogation for a claim against City.
3.9 Verification of Coverage. Prior to commencement of any work, Contractor/Service Provider shall
furnish City with original certificates of insurance and any amendatory endorsements necessary to
demonstrate to City that Contractor/Service Provider has obtained the Required Insurance in compliance with
the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no
obligation or liability of any kind upon the company, its agents, or representatives” or any similar language
must be deleted from all certificates. The required certificates and endorsements should otherwise be on
industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all
required insurance policies, including endorsements evidencing the coverage required by these specifications.
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability
and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following
requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning
of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5)
years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a “Retro Date” prior to the effective date of this Agreement, the Contractor/Service Provider must
purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required
by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed
to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity.
3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service Provider
maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to
coverage for higher limits maintained.
Page 489 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
6 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Contractor/Service Provider shall timely and fully
protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed officers, agents,
employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands,
causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage
or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or
incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its
officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of
the Required Services, the results of such performance, or this Agreement. This indemnity provision does not
include any claims, damages, liability, costs and expenses arising from the sole negligence or willful
misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or
claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which
may be in combination with the active or passive negligent acts or omissions of the Contractor/Service
Provider, its employees, agents or officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the
forgoing, if the services provided under this Agreement are design professional services, as defined by
California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity
obligation under Section 1, above, shall be limited to the extent required by California Civil Code section
2782.8.
4.3 Costs of Defense and Award. Included in Contractor/Service Provider’s obligations under this Section
4 is Contractor/Service Provider’s obligation to defend, at Contractor/Service Provider’s own cost, expense
and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings
that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in
this Section 4, Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be
rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs
incurred by any of them.
4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor/Service Provider’s
obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified
Parties, or by any prior or subsequent declaration by the Contractor/Service Provider. Furthermore,
Contractor/Service Provider’s obligations under this Section 4 shall in no way limit, modify or excuse any of
Contractor/Service Provider’s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs and fees City incurs
in enforcing Contractor/Service Provider’s obligations under this Section 4.
4.6 Survival. Contractor/Service Provider’s obligations under this Section 4 shall survive the termination
of this Agreement.
5. FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER.
5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code
require certain government officials and Contractor/Service Providers performing work for government
agencies to publicly disclose certain of their personal assets and income using a Statement of Economic
Interests form (Form 700). In order to assure compliance with these requirements, Contractor/Service
Page 490 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
7 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into
the Agreement by this reference.
5.2 Disclosures; Prohibited Interests. Independent of whether Contractor/Service Provider is required to
file a Form 700, Contractor/Service Provider warrants and represents that it has disclosed to City any
economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be
performing the Required Services, in any real property or project which is the subject of this Agreement.
Contractor/Service Provider warrants and represents that it has not employed or retained any company or
person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service
Provider, to solicit or secure this Agreement. Further, Contractor/Service Provider warrants and represents
that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved
subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.
Contractor/Service Provider further warrants and represents that no officer or employee of City, has any
interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof,
or in the business of Contractor/Service Provider or Contractor/Service Provider’s subcontractors.
Contractor/Service Provider further agrees to notify City in the event any such interest is discovered whether
or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties,
City shall have the right to rescind this Agreement without liability.
5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits
public agency officers from participating in any action related to a contract if such officer receives political
contributions totaling more than $250 within the previous twelve months, and for twelve months following
the date a final decision concerning the contract has been made, from the person or company awarded the
contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific
contract. In order to assure compliance with these requirements, Contractor/Service Provider shall comply
with the disclosure requirements identified in the attached Exhibit D, incorporated into the Agreement by this
reference.
6. REMEDIES
6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to perform
the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service Provider
shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in
addition to any and all other rights and remedies City may have under this Agreement, at law or in equity,
City shall have the right to terminate this Agreement by giving five (5) days written notice to
Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If
Contractor/Service Provider notifies City of its intent to cure such Default prior to City’s specified termination
date, and City agrees that the specified Default is capable of being cured, City may grant Contractor/Service
Provider up to ten (10) additional days after the designated termination date to effectuate such cure. In the
event of a termination under this Section 6.1, Contractor/Service Provider shall immediately provide City any
and all ”Work Product” (defined in Section 7 below) prepared by Contractor/Service Provider as part of the
Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7
hereof. Contractor/Service Provider may be entitled to compensation for work satisfactorily performed prior
to Contractor/Service Provider’s receipt of the Default notice; provided, however, in no event shall such
compensation exceed the amount that would have been payable under this Agreement for such work, and any
such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of
the Default.
Page 491 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
8 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement,
or any portion of the Required Services, at any time and for any reason, with or without cause, by giving
specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15)
days prior to the effective date thereof. Upon receipt of such notice, Contractor/Service Provider shall
immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section
7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7
hereof. Contractor/Service Provider shall be entitled to receive just and equitable compensation for this Work
Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily
performed as of the date of the termination/suspension notice plus any additional remaining Required Services
requested or approved by City in advance that would maximize City’s value under the Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this
Section, Contractor/Service Provider hereby expressly waives any and all claims for damages or
compensation as a result of such termination except as expressly provided in this Section 6.
6.4 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, including such policies and procedures used by City
in the implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any
dispute over the terms of this Agreement.
6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the
laws of the State of California. Any action arising under or relating to this Agreement shall be brought only
in San Diego County, State of California. Contractor/Service Provider hereby waives any right to remove any
action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section
394.
6.6 Service of Process. Contractor/Service Provider agrees that it is subject to personal jurisdiction in
California. If Contractor/Service Provider is a foreign corporation, limited liability company, or partnership
that is not registered with the California Secretary of State, Contractor/Service Provider irrevocably consents
to service of process on Contractor/Service Provider by first class mail directed to the individual and address
listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be
effective five days after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other
materials or properties produced in whole or in part under this Agreement in connection with the performance
of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No
such Work Product shall be subject to private use, copyrights or patent rights by Contractor/Service Provider
in the United States or in any other country without the express, prior written consent of City. City shall have
unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in
part, any such Work Product, without requiring any permission of Contractor/Service Provider, except as may
be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With
respect to computer files containing data generated as Work Product, Contractor/Service Provider shall make
available to City, upon reasonable written request by City, the necessary functional computer software and
hardware for purposes of accessing, compiling, transferring and printing computer files.
Page 492 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
9 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
8. GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
8.2 Assignment. City would not have entered into this Agreement but for Contractor/Service Provider’s
unique qualifications and traits. Contractor/Service Provider shall not assign any of its rights or
responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City
may grant, condition or deny in its sole discretion.
8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and
represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind
Contractor/Service Provider to its obligations hereunder without any further action or direction from
Contractor/Service Provider or any board, principle or officer thereof.
8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements
expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject
matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein
by reference. All prior or contemporaneous agreements, understandings, representations, warranties and
statements, oral or written, are superseded.
8.6 Record Retention. During the course of the Agreement and for three (3) years following completion
of the Required Services, Contractor/Service Provider agrees to maintain, intact and readily accessible, all
data, documents, reports, records, contracts, and supporting materials relating to the performance of the
Agreement, including accounting for costs and expenses charged to City, including such records in the
possession of sub-contractors/sub-Contractor/Service Providers.
8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such
additional documents and instruments as may be reasonably required in order to carry out the provisions of
this Agreement and the intentions of the Parties.
8.8 Independent Contractor. Contractor/Service Provider is and shall at all times remain as to City a
wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall
have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider’s officers,
employees, or agents (“Contractor/Service Provider Related Individuals”), except as set forth in this
Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City, and
none of them shall be entitled to any benefits to which City employees are entitled, including but not limited
to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits.
Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax
with respect to any Contractor/Service Provider Related Individuals; instead, Contractor/Service Provider
shall be solely responsible for the payment of same and shall hold the City harmless with respect to same.
Contractor/Service Provider shall not at any time or in any manner represent that it or any of its
Contractor/Service Provider Related Individuals are employees or agents of City. Contractor/Service Provider
shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind
City in any manner.
Page 493 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
10 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to
have been properly given or served if personally served or deposited in the United States mail, addressed to
such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified
in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or
otherwise provided in writing.
8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of
the Parties included in this Agreement are intended to authenticate this writing and to have the same force and
effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached
to or logically associated with a record and executed and adopted by a Party with the intent to sign such record,
including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions
Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time.
(End of page. Next page is signature page.)
Page 494 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
11 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
SIGNATURE PAGE
CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and
Contractor/Service Provider agree that they have read and understood all terms and conditions of the Agreement,
that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the
Effective Date.
THE CENTRE FOR ORGANIZATION EFFECTIVENESS CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
SOMMER KEHRLI MARIA V. KACHADOORIAN
CHIEF EXECUTIVE OFFICER CITY MANAGER
APPROVED AS TO FORM
BY: _______________________________
Marco A. Verdugo
City Attorney
Page 495 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
12 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Courtney Chase
276 Fourth Avenue, Chula Vista, CA 91910
619-585-5656
cchase@chulavistsaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Contractor/Service Provider Contract Administration:
THE CENTRE FOR ORGANIZATION EFFECTIVENESS
3914 Murphy Canyon Road #A164, San Diego, CA 92123
(619) 354-3703
skehrli@tcfoe.com
For Legal Notice Copy to:
Greg Harkless, Chief Administrative Officer
3914 Murphy Canyon Road #A164, San Diego, CA 92123
(619) 354-3350
gharkless@tcfoe.com
2. Required Services
A. General Description:
Contractor/Service Provider will provide the City of Chula Vista with a Five-Year Citywide Strategic Plan.
B. Detailed Description:
See Exhibit E– attached and incorporated herein by reference.
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin June 1,
2024 and end on December 1, 2026 for completion of all Required Services.
4. Compensation:
A. Form of Compensation
Page 496 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
13 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
☒ Fixed Fee Paid in Increments. For the completion of each Deliverable of the Required Services, as identified
in section 2.B., above, City shall pay the fixed fee associated with each Deliverable, in the amounts set forth in
Exhibit E, attached and incorporated herein by reference.
☒ Time and Materials. For performance of the Required Services by Contractor/Service Provider as identified
in Section 2.B., above, City shall pay Contractor/Service Provider for the productive hours of time spent by
Contractor/Service Provider in the performance of the Required Services, at the rate of $320 per hour.
B. Reimbursement of Costs
☒ Invoiced or agreed-upon amounts as follows:
In City’s sole discretion, City may pay Contractor/Service Provider for additional materials in excess of those
described in Exhibit E at cost.
Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for services
performed through December 31, 2026 shall not exceed $120,000.
5. Special Provisions:
☒ Permitted Sub-Contractor/Service Providers:
Kymberly Garrett
Andy Pendoley
Mariana Lopez
Cristina Padilla
☐ Security for Performance: None
Page 497 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
14 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
EXHIBIT B
INSURANCE REQUIREMENTS
Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to
provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes
(x).
Type of Insurance Minimum Amount Form
☒ General Liability:
Including products and
completed operations,
personal and
advertising injury
$1,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage; and Commercial General
Liability insurance with a general
aggregate limit of $2,000,000.
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
☒ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
☒ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
Other Negotiated Insurance Terms: NONE
Page 498 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
15 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
EXHIBIT C
CONTRACTOR/SERVICE PROVIDER CONFLICT OF INTEREST DESIGNATION The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractor/Service Providers designated to file the Form 700 are also required to comply with certain ethics training requirements.3
☐ A. Contractor/Service Provider IS a corporation or limited liability company and is therefore EXCLUDED4
from disclosure.
☒ B. Contractor/Service Provider is NOT a corporation or limited liability company and disclosure designation
is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.)
Name Email Address Applicable Designation
Kymberly Garrett
Sommer Kehrli
Andy Pendoley
Karina Orozco
kymberlycgarrett@gmail.com
skehrli@tcfoe.com
andy@pendoleysc.com
korozco@tcfoe.com
☐ A. Full Disclosure
☒ B. Limited Disclosure (select one or more of the
categories under which the Contractor shall file):
☐ 1. ☐ 2. ☐ 3. ☐ 4. ☒ 5. ☐ 6. ☒ 7.
Justification:
☐ C. Excluded from Disclosure
1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written
determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: Courtney Chase
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg.
18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not include
corporation or limited liability company).
Page 499 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
16 City of Chula Vista Agreement No.: 2024-110
Service Provider Name: The Centre For Organization Effectiveness Rev. 3/21/2024
EXHIBIT D
CONSULTANT LEVINE ACT DISCLOSURE
California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula
Vista Officer5 (“Officer”) from taking part in decisions related to a contract if the Officer received a political
contribution totaling more than $250 within the previous twelve months, and for twelve months following the
date a final decision concerning the contract has been made, from the person or company awarded the contract.
The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The
Levine Act does not apply to competitively bid, labor, or personal employment contracts.
☐A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement.
☒B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as follows:
Current Officers can be located on the City of Chula Vista’s websites below:
• Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council
• City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us
• Planning Commissioners – www.chulavistaca.gov/pc
• Candidate for Elected Office – www.chulavistaca.gov/elections
1. Have you or your company, or any agent on behalf of you or your company, made political contributions
totaling more than $250 to any Officer in the 12 months preceding the date you submitted your proposal, the date
you completed this form, or the anticipated date of any Council action related to this Agreement?
YES: ☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political
contributions totaling more than $250 to any Officer in the 12 months following the finalization of this Agreement
or any Council action related to this Agreement?
YES: ☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any
subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating
in any actions related to the Agreement.
5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in
an agency. GC § 84308
Page 500 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
PROJECT PLAN: Five-Year Citywide Strategic Plan
Timeline Project Element Action Items/Deliverables Cost
PROJECT PLANNING
May/June Kick-off planning
meeting with
project team
•Initial planning meeting with project team
o Review and discuss project objectives, desired timeline,
and general approach
o Outline key stakeholders to involve in the strategic
planning process
o Identify project team, working
arrangement/tools/systems, and schedule for project
check-in meetings
Deliverable: produce a project plan back to client with schedule for
key project events, timeline for deliverables, and estimated project
completion date
$2,240
May/June Review of
organizational
materials and
resources
•In-depth review of key organizational materials and
resources:
o Previous strategic plan
o Planning documents and policies outlined in RFP
o Organization/department charts
o Agreements, mandates, reports
o Other relevant organizational data (e.g., survey data)
$3,840
Ongoing Ongoing project
management
meetings
•Regular planning/check-in meetings with project sponsors to
support project management, scheduling, event
coordination, and report development
o Biweekly virtual meetings
o Written status reports as requested by project team
$8,320
STRATEGIC PLANNING PROCESS
Jul/Aug Interviews with
City Council
Members and City
Staff
•Interviews with City Council members and City staff to
establish rapport, solicit input regarding strategic priorities,
and support design of City Council Session #1
o (5) Virtual, 60-minute interviews with City Council
Members and Mayor
o (7) Virtual, 60-minute interviews with City Manager and
Executive Staff
o (15) Virtual, 60-minute interviews with Department
Heads
$12,400
Jul/Aug/Sep Stakeholder
Outreach
•Meeting with City’s JEDI Council
•Meetings with community stakeholder groups
•Engagement with additional special project stakeholders as
needed
$8,000
Exhibit E
Page 501 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Sep Public Workshops/
Community
Engagement
• Public workshops or “pláticas” with community members to
solicit input regarding strategic priorities
o Four workshops (one in each district) with bilingual
facilitation (English/Spanish) and live Spanish
translation services
Additional community meetings can be added to the scope for an
additional cost: $3,315
$13,245
Sep Community Survey • Community survey in multiple languages (including English,
Spanish, and Filipino) to further solicit input from the
community regarding strategic priorities
o To include translation services for survey and analysis of
qualitative data in Spanish and Filipino
Please note the survey budget is based on a maximum of two open-
ended questions
$10,215
early Oct City Council
Workshop #1
• Facilitated, in-person session with City Council
o Review of community/stakeholder data and themes
o Review of Mission, Vision, and Values Statements
o SWOT analysis
o Strategic goal setting/prioritization
Outcome: establish strategic framework for 5-year plan
$7,955
Oct/Nov Staff Working
Sessions
• A series of virtual working sessions with key staff to develop
strategic objectives and implementation plans to support the
Council’s Strategic Framework
o Approximately 15-20 working sessions
o The Centre will work with project sponsors to identify
relevant working groups (including SMEs, stakeholders,
committee members, leaders, etc.) and schedule
sessions
o Leads will be established for each strategic goal to
support the successful development of the initial 2 -year
implementation plan (with timelines, performance
measures/outcomes, and implications for the budget)
for each strategic goal outlined in the strategic
framework
o An emphasis will be placed on integrating existing
planning documents and policies into the
implementation plans and to create clear linkages
within the final report
o The Centre will work with project sponsors to identify
an effective “Strategic Planning Cycle” including
timeline, process, and template for assessing the City’s
overall performance within the areas outlined in the
strategic plan
$11,200
Dec/Jan Interviews with
City Council
Members
• Interviews with City Council members to establish rapport
with new City Council members, solicit input regarding
strategic priorities, and support design of City Council Session
#2
o (5) Virtual, 60-minute interviews with City Council
Members and Mayor
$3,600
Page 502 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Late Jan City Council
Workshop #2
• Facilitated, in-person session with City Council
o Review of strategic objectives and implementation
strategies to support Strategic Framework developed by
the City Council Members
o Review of proposed timeline, process, and template for
assessing the City’s overall performance within the
areas outlined in the strategic plan
o Input from City Council Members on plan elements
Outcome: approval of 5-year Plan
$7,315
REPORT DEVELOPMENT
February Develop Draft
Strategic Plan
• Development of the Strategic Plan in alignment with the
input and direction provided by the City Council. The plan is
envisioned to include the following elements:
o Executive Summary
o Mission, Vision and Values Statements
o Strengths, Weaknesses, Opportunities and Threats
(SWOT) Analysis
o 5 Year Strategic Plan
▪ City Council Goals and Objectives
▪ Strategies to Achieve the Goals and
Objectives
▪ Implementation Timeline
▪ Initial Two-year Implementation Plan and
Resourcing Strategy (to be developed in
partnership with City staff, including the
identification of lead department(s), and
sources and uses of funds)
o Performance Measures
o Ongoing Strategic Planning Cycle
o Annual Report Template
Deliverable: develop draft plan to be submitted to the City for review
$8,000
March Finalize and
Submit Strategic
Plan
• Finalize City’s 5 Year Strategic Plan
o Refine plan to incorporate feedback
Deliverable: submit final plan (as a PDF and Microsoft Word document
that can be edited in the future)
$1,980
Travel • Estimated mileage costs (per IRS 2023 rates) $2,000
Miscellaneous
Expenses
• Printed materials for meetings
• Food, is requested, for project events
• Additional translation services
• Miscellaneous additional consulting services
$2,500
TOTAL $102,810
Page 503 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
REQUEST FOR PROPOSALS (RFP P03-2024) FOR CONSULTING SERVICES FOR THE CREATION OF A FIVE-YEAR CITYWIDE STRATEGIC PLAN FOR THE CITY OF CHULA VISTA, CA
Distribution/Advertisement: July 28, 2023 RFP Submittal Deadline: September 15, 2023, 5:00 p.m. (PST)
Page 504 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 2
This page intentionally left blank.
Page 505 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 3
REQUEST FOR PROPOSALS (RFP P03-2024) FOR CONSULTING SERVICES FOR THE CREATION OF A FIVE-YEAR CITYWIDE STRATEGIC PLAN FOR THE CITY OF CHULA VISTA, CA The City of Chula Vista is seeking to solicit proposals from qualified firms to provide consulting services for the creation of a five-year citywide strategic plan. Proposals should include plans for community outreach to involve residents and local stakeholders, City Council workshops, department meetings and employee feedback. Notice is hereby given that proposals will be received until 5:00 pm PST on September 15, 2023 and must be submitted via PlanetBids by the due date and time. Late proposals will not be considered. Proposers are hereby referred to the proposal instructions, general provisions, and terms and conditions contained in this request for proposal. All proposals must be submitted through PlanetBids email or fax submissions will not be accepted. Questions related to the proposal must be submitted through PlanetBids. Questions must be received by 3:00 P.M. Wednesday, August 16, 2023. Answers will be uploaded to PlanetBids no later than 5:00 P.M. Friday, August 25, 2023.
The City reserves the right to reject any or all proposals received any portion of any proposal and to waive any irregularities or informalities in proposals or the RFP process. Any addenda that are issued through this RFP must be signed and returned with your submittal. Victor De La Cruz Procurement Services Analyst
Page 506 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 4
This page intentionally left blank.
Page 507 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 5
Table of Contents
1.0 INTRODUCTION 6 1.0 Overview of Solicitation 6 1.1 Purpose of Solicitation 6 1.2 Background 6 1.3 Scope of Services 9/10
2.0 SUBMITTAL REQUIREMENTS 10 2.1 Submittal Cover 11 2.2 Table of Contents 11 2.3 Cover Letter 11 2.4 Identify the Management Consulting Services Team 11 2.5 Related Experience 11 2.6 Personnel 12 2.7 Organization Chart 12 2.8 Financial Strategy 12 2.9 Additional Required Documents 13
3.0 SELECTION PROCESS AND SCHEDULE 13 3.1 Selection Process 13/14 3.2 Submittal Schedule 14 3.3 Submittal Deadline 14
4.0 DECLARATIONS AND ADDITIONAL INFORMATION 15 4.1 City’s Rights Pertinent to this Solicitation 15 4.2 Withdrawal of Solicitation 15 4.3 Public Disclosure 15 4.4 Confidential Solicitation 15 4.5 News Releases 15 4.6 Conflict of Interest/Financial Disclosure 16 4.7 Indemnification 16 4.8 Examination of Solicitation 16 4.9 Nondiscrimination Policy 16
5.0 APPENDICES 16 Appendix F – Attachment F.1 – Disclosure Statement Appendix F – Attachment F.2 – Subconsultant and Vendor List Appendix F – Attachment F.3 – Proposal General Provisions Appendix F – Attachment F.4 – City of Chula Vista Two Party Agreement
Page 508 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 6
1.0 INTRODUCTION
1.0 Overview of Solicitation The City of Chula Vista is seeking to solicit proposals from qualified firms to provide consulting services for the creation of a five-year citywide strategic plan (the “Strategic Plan”). Proposals should include plans for district community and local stakeholder outreach, council workshop(s), department meetings and employee feedback. Proposals are due by 5:00 p.m. PST on September 15, 2023 and must be submitted through PlanetBids. Proposals received after this time or via email/fax will not be considered. If you experience technical difficulties submitting your proposal, you must first contact PlanetBids (818) 992-1771 to receive technical assistance. If PlanetBids cannot assist, you must notify Zhobin Tamjidi via email at ztamjidi@chulavistaca.gov and Victor De La Cruz via email at vdelacruz@chulavistaca.gov prior to proposal due date and time identified in this RFP.
1.1 Purpose of Solicitation The City of Chula Vista intends to enter into a professional consultant services agreement with the selected consultant team to provide professional services in establishing the City of Chula Vista’s Five-Year Citywide Strategic Plan. Such agreement is intended to provide for the legal and financial arrangement between the consultant and the City.
1.2 Background
Chula Vista
The City of Chula Vista is located at the center of one of the richest cultural, ethnically diverse, and multilingual communities in the United States. It is the second-largest City in San Diego County with a population of 277,220. Chula Vista boasts more than 50 square miles of coastal landscape, canyons, rolling hills, mountains, quality parks, and miles of trails. Chula Vista is a leader in conservation and renewable energy, has outstanding public schools, and has been named one of the top safest cities in the country. Situated between Downtown San Diego and the international border with Mexico, the City benefits from a diverse, well-educated population and a robust transportation network. From master planned communities with verdant boulevards, to high-quality educational opportunities spanning award winning K-12 schools and Southwestern Community College—the quality of life in Chula Vista is impeccable.
Planning Efforts to Date
The City has adopted a number of planning documents and policies which may inform the development of the Strategic Plan. These include, but are not limited to, the following.
Page 509 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 7
Climate Action Plan. First adopted in 2000, the Chula Vista Climate Action Plan addresses the threat of climate change impacts to the local community. The most recent plan is the 2017 Climate Action Plan (CAP) which was adopted by City Council on September 26, 2017. It includes ambitious new goals and policies to strengthen the City’s climate action efforts. Most recently, in May 2021, staff worked with stakeholders to add a Climate Equity Index to the Climate Action Plan.
Smart City Strategic Action Plan. In 2017, the City adopted a Smart City Strategic Action Plan designed to improve the lives of Chula Vista residents by enabling the city to provide superior government services, better respond in emergency situations and attract high-quality jobs. This can be achieved by using advanced technology and data tools to engage residents, enhance city services, ensure the prudent use of taxpayer dollars, and encourage growth in the local economy.
Digital Equity and Inclusion Plan. In May 2020, the City of Chula Vista became the first city in San Diego County to adopt a Digital Equity and Inclusion Plan, which lays out a series actions the City will take to bridge the digital divide.
Telecommunications Master Plan. In October 2020, the City adopted a Telecommunications Master Plan focused on the development of a fiber and telecommunications infrastructure to support the City’s Smart Cities vision.
Technology Oversight and Privacy Policy. The City of Chula Vista adopted a citywide Privacy Protection and Technology Transparency Policy designed to help the City protect individual privacy and enhance technology oversight while also delivering excellent public service.
Welcoming City. In 2019, the City of Chula Vista became the first city in the state of California to earn a designation by Welcoming America as a Certified Welcoming City.
Justice, Equity, Diversity, and Inclusion (JEDI) Action Plan. The City of Chula Vista is currently engaged with Tribesy Consulting to provide a process of infusing Justice, Equity, Diversity, and Inclusion (JEDI) across all city functions to advance the City’s efforts in creating a more inclusive and equitable community, culture and workplace. The foundational part of this work includes the assessment phase, a trio of assessments to evaluate the City’s readiness to engage in JEDI work. A Structural Assessment (analysis of policies, procedures and systems in place), Cultural Assessment (analysis of dynamics of employee culture) and Community Impact Assessment are all being completed by Tribesy Consulting. Additionally, a JEDI Guidance Council has been formed. This voluntary group of city employees from all departments will be the driving force of the JEDI implementation work and embedding it into the culture of the organization. The Council meets twice a month and their initial focus area will be to work together on defining JEDI and beginning to craft the City’s JEDI lens.
Page 510 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 8
After this draft is completed, there will be additional opportunities for community engagement, both within the organization and community, as an inclusive way to solicit input on the lens and path forward.
Long-Term Financial Plan. On an annual basis, the City prepares a General Fund Long-Term Financial Plan (LTFP), which serves as a long-range fiscal planning tool to identify financial trends and project budgetary surpluses or shortfalls and encourage discussion to proactively address the City’s long-range needs. The goal of the LTFP is to assess the City’s ability over the term of the plan to: maintain current or expand service levels; preserve the City’s long-term fiscal health; and strategically increase the City’s reserve funds to meet the City’s reserve policies thresholds. The LTFP will also serve as a guideline for the development of the annual General Fund budget.
Public Library Strategic Vision Plan and Strategic Facilities Plan. In 2014, the City adopted the Chula Vista Public Library Strategic Vision Plan and an associated Strategic Facilities Plan. Together, these documents set the operational and capital plan for the City’s library system.
Parks & Recreation Master Plan. In 2018, the City adopted the Parks & Recreation Master Plan that represents the City’s commitment to comprehensively respond to the park and recreation facility demands of current and future residents and serves as the blueprint for future park development.
Fire Facility, Equipment, and Deployment Master Plan. Last amended in 2018, the Fire Facility, Equipment, and Deployment Master Plan analyzes the demand for fire and emergency medical services through buildout of the City and makes certain facility, capital, and operational recommendations that support the provision of high-quality services.
Chula Vista Police Department Five-Year Strategic Plan. Last updated in 2014, the Police Department’s Five-Year Strategic Plan is a statement of intent and purpose for the Chula Vista Police Department. This guiding document was designed to help build the desired future for the department and the community it serves. An update to the plan is currently underway.
City Manager’s Annual Report. In 2021, the City Manager’s Office launched a new initiative to highlight major accomplishments from previous fiscal years in support of the City Manager’s and City Council’s goals.
2013 City Strategic Plan. In 2013, the City adopted a City Strategic Plan which provided a comprehensive framework that ensures priorities set by the City Council are clear to all employees, goals are laid out that respond to priorities, objectives are achieved that meet the goals, and that city government is accountable to meeting community needs. The Strategic Plan centers on five core goals: - Operational Excellence
Page 511 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 9
- Economic Vitality - Healthy Community - Strong and Secure Neighborhoods - Connected Community Now, the City of Chula Vista seeks to create a new strategic plan that incorporates the various plans within the City, community input, staff contributions and City Council feedback.
1.3 Scope of Services
Goals of the Strategic Plan
The City of Chula Vista is seeking a consultant team to facilitate a comprehensive municipal strategic planning process that builds upon the City’s many independent guiding documents and engages the community, City Council, and City staff in producing an actionable and achievable 5-Year Citywide Strategic Plan.
The City anticipates the scope of work including the following specific tasks. Consultants may propose additional tasks they feel are necessary to complete the 5-Year Citywide Strategic Plan:
1. Facilitation of strategic planning workshops and public participation Design, plan and conduct a series of meetings and workshops with the community, City Council, and City staff. At a minimum they will include:
o Kick-off planning meeting with project team
o Interviews with City Council Members and City staff
o Four public workshops (one in each district)
o Two City Council workshops
o Meeting with City’s JEDI Council
o Other community stakeholder meetings
o Community survey in multiple languages Consultant must provide, or contract for, Spanish translators/interpreters for all public meetings and translation for community survey in multiple languages.
2. Project Management Plan and maintain ongoing communication with the project team to include biweekly virtual meetings and written status reports as requested by project team. Develop a project schedule for conducting workshops and developing the City’s 5-year Citywide Strategic Plan with deliverables and critical paths defined. Completion timeline of all required services to be negotiated with awarded firm.
Page 512 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 10
3. Plan Development Draft the strategic plan, which is conceptually envisioned to include the following elements, and to reflect the input and direction provided by the City Council:
o Executive Summary
o Mission, Vision and Values Statements
o Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
o 5-Year Strategic Plan
o City Council Goals & Objectives
o Policies and Strategies to Achieve the Goals and Objectives
o Implementation Timeline
o Two-year Implementation Plan and Resourcing Strategy (To be developed in partnership with City staff, including the identification of lead department(s), and sources and uses of funds)
o Performance Measures
o Strategic Planning Cycle
o Annual Report Template
Gather feedback on the draft and produce a final plan. Deliver the plan to the City as a PDF and Microsoft Word document that can be edited in the future.
2.0 SUBMITTAL REQUIREMENTS This section contains instructions on how to prepare and submit a response to this solicitation. A concise, professional and complete response to the RFP will help City identify the most qualified consultant and will be indicative of the level of the respondent’s commitment to provide management consulting services to City. The response should be uploaded in an original PDF document, a scanned copy is not preferred. Any consultant selected must demonstrate the experience, resources and expertise needed to provide management consulting services to create a Strategic Plan. Past experience, especially with similar plans will be critical in evaluating the RFP responses. The respondent shall follow the format specified below. The contents of the submittal must be clear, concise and complete. Each section of the submittal shall be electronically tabbed and labeled in the order identified in Sections 2.1 through 2.9 of this solicitation.
Page 513 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 11
2.1 Submittal Cover The submittal cover shall include the title, name, address, telephone and fax numbers, and e-mail address of the principal contact.
2.2 Table of Contents The table of contents shall be complete and clear, listing headings and pages to enable easy reference.
2.3 Cover Letter The cover letter shall be brief and identify the consultant. Any changes to the submittal format or deletions of requested material should be explained in the cover letter. The first sentence should state in boldface type:
“This submittal is for the solicitation of management consulting services for The City
of Chula Vista’s Five-Year Citywide Strategic Plan.” Additional cover letter information:
• Identify the respondent’s primary contact (include address, e-mail address and telephone number) responsible for all queries made during the intake and processing of the response.
• Identify the location of the office(s)/housing of individuals assigned to provide services.
• The signatory shall be a person with legal authority to bind the respondent.
2.4 Identify the Management Consulting Services Team Identify the consultant team, including the lead for the creation of the Strategic Plan and consultants who will be responsible for implementing services on behalf of City (name of firm address, e-mail address and telephone number). Other proposed subconsultants may be included, if known. Provide a succinct narrative describing the role and relevant background experience of the consultant and key individuals who would be involved in the development of the Strategic Plan and address the availability of resources, experience, and capabilities to assure timely day-to-day management of the Strategic Plan.
2.5 Related Experience This section shall include examples of the respondent’s experience in the past ten (10) years specifically related to establishing Strategic Plan(s) for local government. The successful proposal shall provide information on the team's background and experience in the following:
Page 514 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 12
• Preparing a Strategic Plan for local government.
• Holding community meetings.
• Working with elected and appointed officials.
• Working with a City budget process.
• Working with community stakeholders.
• Employing industry best practices.
• Provide an approach to integrating current City guiding documents with stakeholder feedback and City Council input into a full strategic plan for the City of Chula Vista.
• Effective and long-term sustainable implementation strategies to keep protect the plan’s longevity and effectiveness. Examples shall be listed chronologically, and the awarding and completion dates noted for each. For each listing, include the name(s) and telephone number(s) of the respondent’s manager. Provide at least three references from previous assignments with telephone numbers and e-mail addresses shall be provided.
2.6 Personnel This section shall identify the contact person with primary responsibility for managing the Strategic Plan effort and the percentage of their total workload that would be committed to the City’s project. The persons listed will be considered committed to the Strategic Plan with no substitutions without prior agreement with City. A resume for each professional and technical person assigned to the Strategic Plan, including partners and/or subconsultants, shall be submitted with a note on what percentage of their total workload would be committed to the City project. The resumes for any proposed subcontractor shall include at least three references from previous assignments with telephone numbers and e-mail addresses.
2.7 Organization Chart This section shall include an organization chart containing the names of all key personnel, partners, and team with titles and their specific task assignment for management consulting services for the City’s reference.
2.8 Financial Strategy This section shall include a proposal for management of all the Strategic Plan and related work/training expenditures. It shall include itemized costs for all expenses, including but not limited to, consultant’s fee. Project budget will be based on the responses to the RFP.
Page 515 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 13
2.9 Additional Required Documents This section shall include required documents not requested in other sections of the submittal. From Appendix F: Attachment F.1 – Disclosure Statement Attachment F.2 – Subconsultant and Vendor List Attachment F.3 – Proposal General Provisions Attachment F.4 – City of Chula Vista Two Party Agreement
3.0 SELECTION PROCESS
3.1 Selection Process City intends to review the submitted responses and conduct interviews with respondents approximately 20-35 days following the submittal deadline. All proposals shall be reviewed to verify that the Respondent has met the minimum requirements. Proposals that have not complied with requirements, do not meet minimum content and quality standards, or take unacceptable exceptions to the General Terms and Conditions or 2-party agreement, will be eliminated from further consideration. Proposals will be reviewed and evaluated by a selection committee comprised of City of Chula Vista personnel. The City of Chula Vista intends to accept the proposal it determines to be in the best interests of the City, based on the overall proposal, not exclusively on cost or any other specific factor. The City reserves the right to amend, modify, reject, negotiate, or accept any proposal in whole or in part at its sole discretion.
Selection Criteria The award to the successful Respondent will be based upon response to the requirements outlined in this RFP, and an estimate of the quality and effectiveness of each of its services in the following areas (not listed in order of importance): a. Experience/Past Performance/References (Must have a minimum of 5 years City-specific public sector experience) – Consideration will be given based upon the firm’s experience, years in business, past and current client references; technical expertise and professional competence in areas directly related to this RFP. b. Personnel – Respondent shall submit resumes of all primary professional staff members who will be performing services under the contract. Respondent should demonstrate that all key personnel have been successfully involved with projects of similar scope and magnitude. c. Qualifications – This category will evaluate the Respondent’s ability to take upon itself the responsibilities set forth in the Scope of Work and produce the
Page 516 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 14
required outcome in a timely manner. Consideration will be given for the overall quality of the proposal, including a demonstrated understanding of the purpose, scope and objective of the services to be performed. It is the intention of the City of Chula Vista to award a contract to the Respondent who furnishes satisfactory evidence that the Respondent has the requisite experience and ability to enable the Respondent to prosecute the work successfully and properly, and to complete services in a timely manner. To determine the degree of responsibility to be credited to the Respondent, the City of Chula Vista will weigh the evidence that the Respondent has performed satisfactorily other contracts of like nature, magnitude and comparable difficulty and comparable rates of progress. d. Optional Interview – In the event the City decides that interviews are necessary, Respondents who are finalists will be notified as promptly as possible. Each interview will consist of a presentation of no longer than one (1) hour. Notice of confirmation of the interview date/time will be given by telephone or in writing.
3.2 Submittal Schedule
Distribution/Advertisement: July 28, 2023 Questions Submitted: August 16, 2023, by 3:00 p.m. PST Responses to Questions: August 25, 2023, by 5:00 p.m. PST RFP Submittal Deadline: September 15, 2023, 5:00 p.m. PST Tentative Interviews: October 2 – September 13, 2023 City Council Award: November 7, 2023 (tentative) The City reserves the right to alter the above dates at any time.
3.3 Submittal Deadline The respondent shall electronically submit their proposal via PlanetBids by the date and time identified in this RFP. Responses received after the submittal deadline will not be considered.
Page 517 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 15
4.0 DECLARATIONS AND ADDITIONAL INFORMATION
4.1 City’s Rights Pertinent to this Solicitation The City of Chula Vista (“City”) reserves the right to reject all submittals for any reason without indicating the reasons for rejection. Respondents acknowledge and agree that City is not responsible or liable in any way for any costs incurred by the respondent in preparing a response to this solicitation or during the selection process. Respondents acknowledge and agree that all submittals become the property of City upon submission and may be used by City in any way deemed appropriate. Submittals will be considered valid for 365 days after submittal deadline.
4.2 Withdrawal of Solicitation City reserves the right to withdraw this solicitation at any time without prior notice and makes no representation that any agreement will be awarded to any respondent. Additionally, City expressly reserves the right to postpone opening responses to this solicitation for its own convenience, and/or to waive any informality or irregularity in the responses received.
4.3 Public Disclosure All proposals submitted in response to this RFP become the property of the City and public records, and as such may be subject to public review. Under the California Public Records Act (California Government Code Section 6250 et seq.) records in the custody of a public entity generally must be disclosed unless the information being sought falls into one or more of the exemptions to disclosure set out in Government Code Sections 6254 through 6255.
4.4 Confidential Solicitation City will use best efforts not to share the details of individual responses to this solicitation with competing respondents during the selection process. After the selection process ends and after award of the contract, all solicitation documents can be requested as identified in section 4.3 above.
4.5 News Releases The respondent agrees that, if selected, City will review and approve all news releases and other public comment pertaining to this solicitation and/or subsequent agreement(s). All news releases will be submitted in writing to the individual designated by City.
Page 518 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 16
4.6 Conflict of Interest/Financial Disclosure The respondent agrees, if selected, to comply with the City’s Conflict of Interest regulations. Principals and key personnel of each respondent team are required to make such disclosures. No individual or entity that participated in the development of this solicitation shall be a respondent or a member of a respondent team.
4.7 Indemnification The respondent agrees, if selected, to indemnify and hold harmless City and its officers and employees from any and all liability, claims, costs (including reasonable attorneys’ fees), demands, damages, expenses, and causes of action.
4.8 Examination of Solicitation The respondent understands that the information provided herein is intended solely to assist the respondent in submittal preparation. To the best of City’s knowledge, the information provided is accurate. However, City does not warrant such accuracy, and any errors or omissions subsequently will not invalidate this solicitation. Further, by submitting a response to this solicitation, the respondent represents that he or she has thoroughly examined and become familiar with work required in the solicitation and is capable of performing quality work and to achieve the objectives of City.
4.9 Nondiscrimination Policy The respondent shall not discriminate on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age, or disability or any other category protected by state or federal law in the solicitation, selection, hiring or treatment of subs, vendors, or suppliers. The respondent shall provide equal opportunity for subs to participate in subcontracting opportunities. The respondent understands and agrees that violation of this clause shall be considered a material breach of the contract and may result in contract termination, debarment, or other sanctions.
5.0 APPENDICES Appendix F – Additional Documents Appendix F – Attachment F.1 – Disclosure Statement Appendix F – Attachment F.2 – Subconsultant and Vendor List Appendix F – Attachment F.3 – Proposal General Provisions Appendix F – Attachment F.4 – City of Chula Two Party Agreement
Page 519 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 17
This page intentionally left blank.
Page 520 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.1 Disclosure Statement
Page 18
DISCLOSURE STATEMENT CONSULTANT'S STATEMENT OF DISCLOSURE OF CERTAIN OWNERSHIP INTERESTS ON ALL CONTRACTS THAT WILL REQUIRE DISCRETIONARY ACTION ON THE PART OF CITY. ALL PROPRIETARY INFORMATION CONTAINED HEREIN IS NOT SUBJECT TO PUBLIC DISCLOSURE The following information must be disclosed: 1. List the names of all persons having a financial interest in the consultant’s business. ________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________ ________________________________________ ________________________________________ 2. If any person identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10 percent of the shares in in the corporation or owning any partnership interest in the partnership. ________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________ ________________________________________ ________________________________________3. If any person identified pursuant to (1) above is a nonprofit organization or a trust, list the names of any person serving as director or the nonprofit organization or as trustee or beneficiary or trustor of the trust. ________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________ ________________________________________ ________________________________________
Page 521 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.1 Disclosure Statement
Page 19
4. Have you transacted more than $250 worth of business with any member of the City Council within the past twelve months? Yes__________ No__________ If yes, please indicate person(s). ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Person as defined as: “Any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate; this and any other group or combination acting as a unit”
(Note: Attach additional sheets as necessary)
____________________________________________ Authorized Signature of Firm/Date ____________________________________________ Print or type name of firm
Page 522 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.2 Subconsultant and Vendor List
Page 20
SUBCONSULTANT AND VENDOR LIST Submittals shall include a complete list of all proposed co-venture partners, subconsultants and vendors receiving more than one half of one percent (.05%) of the total investment value or $10,000, whichever is less. Listed subconsultants and vendors must provide services in the profession, trade, or craft listed. All columns shall be filled out. No changes to this
subconsultant list will be allowed without prior written approval from City.
NAME AND
ADDRESS OF
SUBCONSULTANTS
SCOPE OF
WORK
ESTIMATED
DOLLAR
AMOUNT OF
CONTRACT
DBE, DVBE,
MBE, SBE OR
WBE
WHERE
CERTIFIED
(Note: Attach additional sheets as necessary)
For information only. As appropriate, respondent shall identify co-ventures, subconsultants or vendors according to the following list: Certified Disadvantaged Business Enterprise DBE Certified Disabled Veteran Business Enterprise DVBE Certified Minority Business Enterprise MBE Certified Small Business Enterprise SBE Certified Woman Business Enterprise WBE Other Business Enterprise (not certified) OBE
Page 523 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
PROPOSAL GENERAL PROVISIONS
Please Read Carefully
These Provisions Are a Part of Your Proposal and any Contract Awarded The bidder agrees that: A. Bidder has carefully examined the specifications, and all provisions relating to the item(s) to be furnished or the work to be done; understands the meaning, intent, and requirements; and B. Bidder will enter into a written contract and furnish the item(s) or complete the work in the time specified, and in strict conformity with the City of Chula Vista specifications for the prices quoted. Note: Bidder is defined as any individual, partnership, or corporation submitting a bid, proposal, or quotation in response to a request for bid, request for proposal, or request for quotation. A bidder may also be referred to as consultant, contractor, operator, supplier, or vendor.
Bid is defined as any bid, proposal, or quotation submitted in response to this
solicitation.
1. Items Offered If the item offered has a trade name, brand and/or catalog number, such shall be stated in the bid. If the bidder proposes to furnish an item of a manufacturer or vendor other than that mentioned on the face hereof, bidder must specify maker, brand, quality, catalog number, or other trade designation. Unless such is noted on the bid form, it will be deemed that the item offered is that designated even though the bid may state or equal.
2. Samples Samples may be required for bid evaluation and testing purposes. Bidders shall agree to provide samples within forty-eight (48) hours upon request and at no additional cost to the City.
3. Verify Quotations Prices shall be verified prior to bid submittal, as withdrawal or correction may not be permitted after the bid has been opened.
4. Firm Prices Prices on bid shall be firm prices not subject to escalation. In the event the specifications provide for escalation, the maximum limit shall be shown, or the bid shall not be considered. In the event of a decline in market price below a price bid, the City shall receive the benefit of such decline.
Page 524 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
5. Modification or Withdrawal of Bids Bids may be modified or withdrawn by written or facsimile notice received prior to the exact hour and date specified for receipt of bid. A bid may also be withdrawn in person by a bidder, or authorized representative, prior to the exact hour and date set for receipt of bids. Telephone withdrawals are not permitted.
6. Late Bids, Modifications, or Withdrawals a) Bids, modifications of bids, or bid withdrawals received after the exact time and date specified for receipt will not be considered unless receipt is before the contract is awarded and the City determines that late receipt was due solely to City error. b) Modification of a successful bid that makes the terms of the bid more favorable to the City will be considered at any time.
7. Mistake in Bid a) If the bidder discovers a mistake in bid prior to the hour and date specified for receipt of bid, bidder may correct the mistake by modifying or withdrawing the bid in accordance these provisions. b) If within seventy-two hours of the bid closing and prior to the issuance of a purchase order or a contract, the bidder discovers a mistake in its bid of a serious and significant nature which is unfavorable to bidder, bidder may request consideration be given to modifying the bid if it remains the lowest bid or to withdrawal of the bid if the result of the correction of the mistake makes another bidder lowest and best bidder. The mistake must be evident and provable. The right is reserved by the City to reject any and all requests for correction of mistakes in bids received after the hour and date of the bid closing. The decision of the Purchasing Agent is final as regards acceptance or rejection of requests for correction of bids. c) A mistake in bid cannot be considered once a purchase order or contract is issued.
8. Signature All bids shall be signed, and the title and firm name indicated. A bid by a corporation shall be signed by an authorized officer, employee or agent with his or her title.
9. Alternative Proposals To be responsive to the bid, bidder must submit a proposal that meets all specific bid requirements. Once bidder has proposed a product which is responsive to the specification, bidder may include with the bid any additional proposals or alternative products that bidder believes can meet or exceed the City’s requirements and that may offer additional advantages, benefits, or cost savings. The City reserves the right to evaluate, and accept or reject, such alternatives as though they were part of the original specifications without advertising for further bids, when in the best interests of the City. Any awards so made will
Page 525 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
be based on operational and cost analysis considerations that would result in the optimum economic advantage to the City.
10. Environmentally Preferable Purchasing (EPP) The City defines Environmentally Preferable Purchasing (EPP) as the procurement or acquisition of goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods or service that serve the same purpose. With few exceptions, environmentally preferable products shall only be purchased when determined to be cost-effective while considering a true cost during its lifecycle from use, management and disposal. EPP requires attention to numerous environmental considerations, including energy efficiency, postconsumer recycled content, water efficiency, low/zero hazardous substances and responsible manufacturing, to name just a few. Testing and evaluation of environmentally preferable products is one allowable exception and may be requested at any time during the solicitation process. For more information, please consult the CalRecycle website at: https://www.calrecycle.ca.gov/epp.
11. Quality Unless otherwise required in the specifications, all goods furnished shall be new and unused.
12. Litigation Warranty The bidder, by bidding, warrants that bidder is not currently involved in litigation or arbitration concerning the materials or bidder’s performance concerning the same or similar material or service to be supplied pursuant to this contract of specification, and that no judgments or awards have been made against bidder on the basis of bidder’s performance in supplying or installing the same or similar material or service, unless such fact is disclosed to the City in the bid. Disclosure may not disqualify the bidder. The City reserves the right to evaluate bids on the basis of the facts surrounding such litigation or arbitration and to require bidder to furnish the City with a surety bond executed by a surety company authorized to do business in the State of California and approved by The City of Chula Vista in a sum equal to one hundred percent (100%) of the contract price conditional on the faithful performance by bidder of the contract in the event the bid is awarded to bidder, notwithstanding the litigation or arbitration.
13. Performance Standards Performance of work and acceptability of equipment or materials supplied pursuant to any contract or award shall be to the satisfaction of the City.
14. Warranties a) All material, labor or equipment provided under the contract shall be warranted by bidder and/or manufacturer for at least twelve (12) months after acceptance by
Page 526 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
City. Greater warranty protection will be accepted. Lesser warranty protection must be indicated by bidder on the bid proposal as an exception
b) Bidder shall be considered primarily responsible to the City for all warranty service, parts and labor applicable to the goods or equipment provided by bidder under this bid or award, irrespective of whether bidder is an agent, broker, fabricator or manufacturer’s dealer. Bidder shall be responsible for ensuring that warranty work is performed at a local agency or facility convenient to City and that services, parts and labor are available and provided to meet City’s schedules and deadlines. City may require bidder to post a performance bond after contract award to guarantee performance of these obligations. Bidder may establish a service contract with a local agency satisfactory to City to meet this obligation if bidder does not ordinarily provide warranty service.
15. Addenda The effect of all addenda to the bid documents shall be considered in the bid and said addenda shall be made part of the bid documents and shall be returned with them. Before submitting a bid, each bidder shall ascertain whether or not any addenda have been issued, and failure to cover in this bid any such addenda issued may render the bid invalid and result in its rejection.
16. Specifications to Prevail The detailed requirements of the specifications shall supersede any conflicting reference in these General Provisions that are in conflict therewith.
17. Taxes The City will furnish Exemption Certificates for Federal Excise Tax. The City is liable for State, City and County Sales Taxes. Do not include this tax in the amount bid. However, tax is to be added by the successful bidder to the net amount invoiced. All or any portion of the City Sales Tax returned to the City will be considered in the evaluation of bids.
18. Conflict of Interest No City employee or elected or appointed member of City government, or member of the employee’s immediate family, may participate directly or indirectly in the procurement process pertaining to this bid if they: a) Have a financial interest or other personal interest that is incompatible with the proper discharge of their official duties in the public interest or would tend to impair their independence, judgment or action in the performance of their official duties. b) Are negotiating for or have an arrangement concerning prospective employment with bidder. The bidder warrants to the best of his knowledge that the submission
Page 527 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
of the bid will not create such conflict of interest. In the event such a conflict occurs, the bidder is to report it immediately to the Purchasing Agent. For breach or violation of this warranty, the City shall have the right to annul this contract without liability at its discretion, and bidder may be subject to damages and/or debarment or suspension.
19. Gratuities The City may rescind the right of the bidder to proceed under this agreement if it is found that gratuities in the form of entertainment, gifts, or otherwise are offered or given by the bidder, or any agent or representative of the bidder, to any officer or employee of the City with the intent of influencing award of this agreement or securing favorable treatment with respect to performance of this agreement.
20. Faithful Performance Bond Successful bidder may be required to furnish the City with a surety bond conditioned upon the faithful performance of the contract. This may take the form of a bond executed by a surety company authorized to do business in the State of California and approved by the City of Chula Vista, an endorsed Certificate of Deposit, or a money order or a certified check drawn on a solvent bank. The bond shall be in a sum equal to one hundred percent (100%) of the amount of the contract price. Such bond or deposit shall be forfeited to the City in the event that bidder receiving the contract shall fail or refuse to fulfill the requirements and all terms and conditions of the contract.
21. Insurance Bidder shall provide proof of liability and property damage insurance prior to performance of duties. Coverage shall be from a company authorized to transact business in the State of California and shall be in an amount not less than $1,000,000 combined single limit (CSL), unless otherwise specified. The City of Chula Vista shall be named as an additional insured and thirty (30) days’ notice of cancellation shall be indicated. Worker’s Compensation coverage for each employee engaged in work on City premises is required. Bidder is solely responsible for all insurance premium payments.
22. Indemnification Bidder shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, employees, and agents, from and against all claims for damages, liability, and expenses (including attorney’s fees) arising out of this agreement and/or bidder’s performance hereunder, except as to such damages, liability, and expenses due to the sole negligence or willful acts of the City, its officers, employees or agents.
23. Award of Contract a) Bids will be analyzed, and award will be made to the lowest, responsive and responsible bidder whose bid conforms to the solicitation and whose bid is considered to be most advantageous to the City, price and other factors considered.
Page 528 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
Factors to be considered may include, but are not limited to: bidder’s past performance, total unit cost, economic cost analysis, life cycle costs, warranty and quality, maintenance cost, durability, the operational requirements of the City and any other factors which will result in the optimum economic benefit to the City. b) The City reserves the right to reject any item or items, to waive informalities, technical defects and minor irregularities in bids received; and to select the bid(s) deemed most advantageous to the City. The City will, however, consider bids submitted on an “all or nothing” basis if the bid is clearly designated as such. c) The City reserves the right to award one or more contracts on the bids submitted, either by award of all items to one bidder or by award of separate items or groups of items to various bidders as the interests of the City may require, unless the bidder clearly specifies otherwise in his bid. d) For the purpose of evaluating bids for multiple awards, the sum of $100.00 is considered to be the administrative cost to the City for issuing and administering each contract awarded under this solicitation, and individual awards will be made for the items and combinations of items which result in the lowest aggregate price to the City, including such administrative cost. e) Upon acceptance by the City of Chula Vista, the solicitation, bid, proposal, or price quotation and a purchase order issued to the successful bidder shall be deemed to result in a binding contract incorporating those terms and these General Provisions without further action required by either party. Items are to be furnished as described in the bid and in strict conformity with all instructions, conditions, specifications, and provisions in the complete contract, as defined by this clause 28 or any related integrated agreement.
24. Protests Protests by unsuccessful bidders to the selection for award shall be submitted in writing to the Purchasing Agent no later than ten (10) calendar days after award recommendation. The unsuccessful bidder shall have the right to appear at the City Council to protest any award to be confirmed by Council. Failure to submit a timely written protest to the Purchasing Agent shall bar consideration of such protest.
25. Documentation Due to the time constraints that affect contract performance, all required documents, certificates of insurance and bonds shall be provided to the City within ten (10) calendar days following award or date of request by City, whichever is later. Any failure to comply may result in bid being declared non-responsive and rejected, and at City’s option the bid bond may be attached for damages suffered.
Page 529 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
26. Seller’s Invoice Invoices shall be prepared and submitted in duplicate to address shown on the Purchase Order. Separate invoices are required for each Purchase Order. Invoices shall contain the following information: Purchase Order number, item number, description of supplies or services, sizes, unit of measure, quantity, unit price and extended totals.
27. Document Ownership a) All technical documents and records originated or prepared pursuant to this contract, including papers, reports, charts, and computer programs, shall be delivered to and become the exclusive property of the City and may be copyrighted by the City. Bidder assigns all copyrights to City by undertaking this agreement b) All inventions, discoveries, enhancements, changes, or improvements of computer programs developed pursuant to this contract shall be the property of the City, and all patents or copyrights shall be assigned to City, unless otherwise agreed. Bidder agrees that City may make modifications to computer software furnished by bidder without infringing bidder’s copyright or any license granted to City.
28. Advertisements, Product Endorsements City employees and agencies or organizations funded by the City are prohibited from making endorsements, either implied or direct, of commercial products or services without written approval of the City Manager. No bidder may represent that the City of Chula Vista has endorsed their product or service without the Purchasing Agent’s prior written approval.
29. City Provisions to Prevail Except as indicated in the specifications, the City’s standard General Provisions shall govern any contract award. Any standard terms and conditions of bidder submitted by bidder shall not be acceptable to City unless expressly agreed to by the City. The City reserves the right to reject bidder’s bid as non-responsive, to consider the bid without bidder’s standard terms and conditions, or to require bidder to delete reference to such as a condition of evaluation or award of the bid. If, after award of contract, bidder (contract vendor) shall provide materials or services accompanied by new or additional standard terms or conditions, they too shall be considered void and City may require deletion as a further condition of performance by Bidder. To the extent not otherwise provided for by the contract documents, the California Commercial Code shall apply.
30. Invalid Provisions In the event that any one or more of the provisions of this agreement shall be found to be invalid, illegal or unenforceable, the remaining provisions shall remain in effect and be enforceable.
Page 530 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
31. Amendments and Modifications The Purchasing Agent may at any time, by written order, and without notice to the sureties, make a modification to the contract or an amendment to the Purchase Order, within the general scope of this contract, in (1) quantity of materials or service, whether more or less; (2) drawings, designs, or specifications, where the supplies to be furnished are to be specially manufactured for the City; (3) method of shipment or packing; and (4) place of delivery. If any such change causes an increase or decrease in the cost or the time required for the performance of this contract, an equitable adjustment shall be made by written modification of the contract or amendment to the Purchase Order. Any claim by the bidder for adjustment under this clause must be asserted within 30 calendar days from the notification date.
32. Assignment Bidder shall not assign or delegate duties or responsibilities under this agreement, in whole or in part, without prior written approval of the City.
33. Disputes Except as otherwise provided in these provisions, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Purchasing Agent, who shall reduce this decision to writing and mail a copy to the bidder. The decision of the Purchasing Agent shall be final and conclusive, unless bidder requests mediation within ten (10) calendar days. Pending final decision of a dispute, the bidder shall proceed diligently with the performance of the contract and in accordance with the Purchasing Agent’s decision.
34. Mediation Should an unresolved dispute arise out of this agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within thirty (30) days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a Blindfold@ process. The cost of mediation shall be borne equally by both parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than sixty (60) days, unless the maximum time is extended by both parties.
35. Lawful Performance Bidder shall abide by all Federal, State and Local Laws, Ordinances, Regulations, and Statutes as may be related to the performance of duties under this agreement. In addition, all
Page 531 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
applicable permits and licenses required shall be obtained by the bidder, at bidder’s sole expense.
36. Business License Chula Vista Municipal Code Section 5.02.020 requires all firm/entities doing business with the City to obtain a Business License. Section 5.02.20 states: It is unlawful for any person, or
for any person as agent, clerk or employee, either for himself or for any other person, within the
corporate limits of the City, to transact, engage in, or carry on any business, show, exhibition or
game hereinafter specified without first having procured a license.
37. Annual Appropriation of Funds Multi-year term supply and service contracts and leases are subject to annual appropriation of funds by the City Council. Payments made under term contracts and leases are considered items of current expense. Purchase Orders are funded when issued; therefore, they are current expense items and are not subject to any subsequent appropriation of funds. In the event sufficient funds are not appropriated for the payment of lease payments or anticipated term contract payments required to be paid in the next occurring lease or contract term, and if no funds are legally available from other sources, the lease or contract may be terminated at the end of the original term or renewal term and the City shall not be obligated to make further payments beyond the then current original or renewal term. The City will provide notice of its inability to continue the lease or contract at such time as the Purchasing Agent is aware of the non-appropriation of funds. However, failure to notify does not renew the term of the lease or contract. The City has no monetary obligation in event of termination or reduction of a term contract since such contracts represent estimated quantities and is not funded as a contract except to the extent of the Purchase Orders issued.
38. Extension When in the City’s best interest, this agreement may be extended on a daily, month-to-month, or annual basis by mutual agreement of both parties. Services and/or materials received under an extension shall be in accordance with pricing, terms, and conditions, as described herein.
39. Debarment The Purchasing Agent may recommend to the City Council that the person or business be debarred from consideration for award of contracts. The period of debarment will be contingent upon the severity of cause. Causes for debarment include: a) Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or other offense indicating a lack of business integrity or business honesty
Page 532 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03 2024
Attachment F.3 Proposal General Provisions
b) Violation of contract provisions which is regarded by the Purchasing Agent to be so serious as to justify debarment action, including: i. Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract; or ii. A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts, or iii. Two or more claims of computational error in bid submission within a two-year period. c) Debarment by another governmental entity. d) Any other cause the Purchasing Agent deems to be so serious and compelling as to affect responsibility as a City bidder. A bidder may be permanently debarred for the following causes: i. Collusion in bidding ii. Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a contract or subcontract with the City of Chula Vista or in the performance of such contract or subcontract. iii. Conviction under State or Federal antitrust statutes arising out of the submission of bids or proposals.
40. Venue This agreement shall be governed by and interpreted according to the laws of the State of California, and venue for any proceeding shall be in the County of San Diego. (REV February 2021)
Page 533 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
This sample agreement has been provided for the proposer’s review and comment. If a proposer
wishes to take exception to any of the terms and conditions contained in the consultant
agreement, these should be identified specifically; otherwise, it will be assumed that the proposer
is willing to enter into the agreement as it is written. Any exceptions to terms, conditions, or
other requirements must be clearly stated. Failure to identify contractual issues of dispute can
later be the basis for the City disqualifying a proposer. The City will consider such exceptions as
part of the evaluation process, which may constitute grounds for rejection of the proposal.
CITY OF CHULA VISTA
CONSULTANT SERVICES AGREEMENT
WITH [COMPANY NAME]
TO PROVIDE [SERVICES TO BE PROVIDED]
This Agreement is entered into effective as of Enter Date (“Effective Date”)1 by and between the
City of Chula Vista, a chartered municipal corporation (“City”) and [Company], Entity Type (e.g.
A California Corporation) (“Consultant”) (collectively, the “Parties” and, individually, a “Party”)
with reference to the following facts:
RECITALS
WHEREAS, Enter Recitals To Describe Basis For Service – See example below 2; and
WHEREAS, Enter Recitals To Describe Consultant Selection Process – See example
below 3; and
1 If City Council approved, insert date of City Council approval. Otherwise, insert a date no later than date Consultant’s work
commences.
2 For example: “WHEREAS, City requires _____________ [e.g., civil engineering] services in order to ____________________
[e.g., design a new intersection at X and Y streets];” and 3 For example: “WHEREAS, In order to procure these services City solicited proposals in accordance with Chula Vista Municipal
Code Section _________________ [2.56.080 for contracts exceeding $100,000; 2.56.090 for contracts of $100,000 or less;
2.56.110 for “professional services” e.g., architects, lawyers, engineers, environmental], received __ proposals, and selected
Consultant as the most qualified amongst those submitting; and”
[OR, if the project was sole-sourced]
“WHEREAS, In order to procure these services Consultant was chosen based on Consultant’s unique qualifications,
including ________________; on this basis, Consultant was awarded the contract on a “sole source” basis under the authority
of Chula Vista Municipal Code Section ____________ [2.56.070.B.4. for contracts approved by City Council; 2.56.090.B.3.
for contracts approved at a staff level].”
[OR, if an alternative procurement process is used]
“WHEREAS, In order to procure these services Consultant was chosen __________________.”
Consult with the City Attorney’s Office if none of these apply
Page 534 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
Enter Additional Recitals As Needed Or Delete This Line
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Consultant to City in accordance with the
time frames and the terms and conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
Page 535 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency of which the
Parties hereby acknowledge, City and Consultant hereby agree as follows:
1. SERVICES
1.1 Required Services. Consultant agrees to perform the services, and deliver to City the
“Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement
by this reference, within the time frames set forth therein, time being of the essence for this
Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein
as the “Required Services.”
1.2 Reductions in Scope of Work. City may independently, or upon request from
Consultant, from time to time, reduce the Required Services to be performed by the Consultant
under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good
faith for the purpose of negotiating a corresponding reduction in the compensation associated
with the reduction.
1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies,
procedures and ordinances governing procurement and purchasing authority, City may request
Consultant provide additional services related to the Required Services (“Additional
Services”). If so, City and Consultant agree to meet and confer in good faith for the purpose
of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise
agreed, compensation for the Additional Services shall be charged and paid consistent with the
rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall
also become “Required Services” for purposes of this Agreement.
1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required
Services hereunder shall be performed in accordance with the highest standard of care
exercised by members of the profession currently practicing under similar conditions and in
similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood
to be conceptual approval only and does not relieve the Consultant of responsibility for
complying with all laws, codes, industry standards, and liability for damages caused by
negligent acts, errors, omissions, noncompliance with industry standards, or the willful
misconduct of the Consultant or its subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for
Consultant to provide additional security for performance of its duties under this Agreement,
Consultant shall provide such additional security prior to commencement of its Required
Page 536 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by
the City Attorney.
1.7 Compliance with Laws. In its performance of the Required Services, Consultant
shall comply with any and all applicable federal, state and local laws, including the Chula
Vista Municipal Code.
1.8 Business License. Prior to commencement of work, Consultant shall obtain a business
license from City.
1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for
City’s information and approval a list of any and all subcontractors to be used by Consultant
in the performance of the Required Services. Consultant agrees to take appropriate measures
necessary to ensure that all subcontractors and personnel utilized by the Consultant to complete
its obligations under this Agreement comply with all applicable laws, regulations, ordinances,
and policies, whether federal, state, or local. In addition, if any subcontractor is expected to
fulfill any responsibilities of the Consultant under this Agreement, Consultant shall ensure that
each and every subcontractor carries out the Consultant’s responsibilities as set forth in this
Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or
Consultant’s commencement of the Required Services hereunder, and shall terminate, subject
to Sections 6.1 and 6.2 of this Agreement, when the Parties have complied with all their
obligations hereunder; provided, however, provisions which expressly survive termination
shall remain in effect.
2. COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to
compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4.
Standard terms for billing and payment are set forth in this Section 2.
2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for
services performed each month, within thirty (30) days of the end of the month in which the
services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the
first of the month following the Effective Date of the Agreement. All charges must be
presented in a line item format with each task separately explained in reasonable detail. Each
invoice shall include the current monthly amount being billed, the amount invoiced to date,
and the remaining amount available under any approved budget. Consultant must obtain prior
written authorization from City for any fees or expenses that exceed the estimated budget.
2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation
that the Required Services detailed in the invoice have been satisfactorily performed, City shall
pay Consultant for the invoice amount within thirty (30) days. Payment shall be made in
Page 537 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At
City’s discretion, invoices not timely submitted may be subject to a penalty of up to five
percent (5%) of the amount invoiced.
2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required
Services detailed on each invoice (the “holdback amount”). Upon City review and
determination of Project Completion, the holdback amount will be issued to Consultant.
2.5 Reimbursement of Costs. City may reimburse Consultant’s out-of-pocket costs
incurred by Consultant in the performance of the Required Services if negotiated in advance
and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be
responsible for any and all out-of-pocket costs incurred by Consultant in the performance of
the Required Services.
2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or
costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in
Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective
Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful
misconduct of Consultant, its agents, employees, or subcontractors.
2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the
Consultant or reimbursement for any Consultant costs related to the performance of Required
Services does not constitute a City final decision regarding whether such payment or cost
reimbursement is allowable and eligible for payment under this Agreement, nor does it
constitute a waiver of any violation by Consultant of the terms of this Agreement. If City
determines that Consultant is not entitled to receive any amount of compensation already paid,
City will notify Consultant in writing and Consultant shall promptly return such amount.
3. INSURANCE
3.1 Required Insurance. Consultant must procure and maintain, during the period of
performance of Required Services under this Agreement, and for twelve months after
completion of Required Services, the policies of insurance described on the attached Exhibit
B, incorporated into the Agreement by this reference (the “Required Insurance”). The
Required Insurance shall also comply with all other terms of this Section.
3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
relating to the Required Insurance must be disclosed to and approved by City in advance of the
commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers
admitted to transact business in the State of California with a current A.M. Best’s rating of A
V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the
State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s
Page 538 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the
State Compensation Fund is also acceptable.
3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as
insureds under its policies and/or furnish separate certificates and endorsements demonstrating
separate coverage for those not under its policies. Any separate coverage for sub-consultants
must also comply with the terms of this Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers
must be named as additional insureds with respect to any policy of general liability,
automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be
specified by City’s Risk Manager.. The general liability additional insured coverage must be
provided in the form of an endorsement to the Consultant’s insurance using ISO CG 2010
(11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations
coverage.
3.6 General Liability Coverage to be “Primary.” Consultant’s general liability coverage
must be primary insurance as it pertains to the City, its officers, officials, employees, agents,
and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials,
employees, or volunteers is wholly separate from the insurance provided by Consultant and in
no way relieves Consultant from its responsibility to provide insurance.
3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during
the required insured period under this Agreement, except after thirty days’ prior written notice
to the City by certified mail, return receipt requested. Prior to the effective date of any such
cancellation Consultant must procure and put into effect equivalent coverage(s).
3.8 Waiver of Subrogation. Consultant’s insurer(s) will provide a Waiver of Subrogation
in favor of the City for each Required Insurance policy under this Agreement. In addition,
Consultant waives any right it may have or may obtain to subrogation for a claim against City.
3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall
furnish City with original certificates of insurance and any amendatory endorsements
necessary to demonstrate to City that Consultant has obtained the Required Insurance in
compliance with the terms of this Agreement. The words “will endeavor” and “but failure to
mail such notice shall impose no obligation or liability of any kind upon the company, its
agents, or representatives” or any similar language must be deleted from all certificates. The
required certificates and endorsements should otherwise be on industry standard forms. The
City reserves the right to require, at any time, complete, certified copies of all required
insurance policies, including endorsements evidencing the coverage required by these
specifications.
Page 539 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos
Pollution Liability and/or Errors & Omissions coverage are required and are provided on a
claims-made form, the following requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement
or the beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at
least five (5) years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made
policy form with a “Retro Date” prior to the effective date of this Agreement, the Consultant
must purchase “extended reporting” coverage for a minimum of five (5) years after completion
of the work required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for
review.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall
not be construed to limit the Consultant’s obligations under this Agreement, including
Indemnity.
3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant
maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be
entitled to coverage for higher limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Consultant shall timely and fully
protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed
officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and
against any and all claims, demands, causes of action, costs, expenses, (including reasonable
attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property
or persons, including wrongful death, in any manner arising out of or incident to any alleged
acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers,
employees, agents, and contractors, arising out of or in connection with the performance of the
Required Services, the results of such performance, or this Agreement. This indemnity
provision does not include any claims, damages, liability, costs and expenses arising from the
sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability
arising from, connected with, caused by or claimed to be caused by the active or passive
negligent acts or omissions of the Indemnified Parties which may be in combination with the
active or passive negligent acts or omissions of the Consultant, its employees, agents or
officers, or any third party.
Page 540 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
4.2. Modified Indemnity Where Agreement Involves Design Professional Services.
Notwithstanding the forgoing, if the services provided under this Agreement are design
professional services, as defined by California Civil Code section 2782.8, as may be amended
from time to time, the defense and indemnity obligation under Section 1, above, shall be limited
to the extent required by California Civil Code section 2782.8.
4.3 Costs of Defense and Award. Included in Consultant’s obligations under this Section
4 is Consultant’s obligation to defend, at Consultant’s own cost, expense and risk, and with
counsel approved in writing by City, any and all suits, actions or other legal proceedings that
may be brought or instituted against one or more of the Indemnified Parties. Subject to the
limitations in this Section 4, Consultant shall pay and satisfy any judgment, award or decree
that may be rendered against one or more of the Indemnified Parties for any and all related
legal expenses and costs incurred by any of them.
4.4. Consultant’s Obligations Not Limited or Modified. Consultant’s obligations under this
Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties,
or by any prior or subsequent declaration by the Consultant. Furthermore, Consultant’s
obligations under this Section 4 shall in no way limit, modify or excuse any of Consultant’s
other obligations or duties under this Agreement.
4.5. Enforcement Costs. Consultant agrees to pay any and all costs and fees City incurs in
enforcing Consultant’s obligations under this Section 4.
4.6 Survival. Consultant’s obligations under this Section 4 shall survive the termination of
this Agreement.
5. FINANCIAL INTERESTS OF CONSULTANT.
5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of
Interest Code require certain government officials and consultants performing work for
government agencies to publicly disclose certain of their personal assets and income using a
Statement of Economic Interests form (Form 700). In order to assure compliance with these
requirements, Consultant shall comply with the disclosure requirements identified in the
attached Exhibit C, incorporated into the Agreement by this reference.
5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file
a Form 700, Consultant warrants and represents that it has disclosed to City any economic
interests held by Consultant, or its employees or subcontractors who will be performing the
Required Services, in any real property or project which is the subject of this Agreement.
Consultant warrants and represents that it has not employed or retained any company or person,
other than a bona fide employee or approved subcontractor working solely for Consultant, to
solicit or secure this Agreement. Further, Consultant warrants and represents that it has not
paid or agreed to pay any company or person, other than a bona fide employee or approved
subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee,
Page 541 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
gift or other consideration contingent upon or resulting from the award or making of this
Agreement. Consultant further warrants and represents that no officer or employee of City, has
any interest, whether contractual, non-contractual, financial or otherwise, in this transaction,
the proceeds hereof, or in the business of Consultant or Consultant’s subcontractors.
Consultant further agrees to notify City in the event any such interest is discovered whether or
not such interest is prohibited by law or this Agreement. For breach or violation of any of these
warranties, City shall have the right to rescind this Agreement without liability.
6. REMEDIES
6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform
the Required Services under this Agreement, in a proper or timely manner, or if Consultant
shall violate any of the other covenants, agreements or conditions of this Agreement (each a
“Default”), in addition to any and all other rights and remedies City may have under this
Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving
five (5) days written notice to Consultant. Such notice shall identify the Default and the
Agreement termination date. If Consultant notifies City of its intent to cure such Default prior
to City’s specified termination date, and City agrees that the specified Default is capable of
being cured, City may grant Consultant up to ten (10) additional days after the designated
termination date to effectuate such cure. In the event of a termination under this Section 6.1,
Consultant shall immediately provide City any and all ”Work Product” (defined in Section 7
below) prepared by Consultant as part of the Required Services. Such Work Product shall be
City’s sole and exclusive property as provided in Section 7 hereof. Consultant may be entitled
to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default
notice; provided, however, in no event shall such compensation exceed the amount that would
have been payable under this Agreement for such work, and any such compensation shall be
reduced by any costs incurred or projected to be incurred by City as a result of the Default.
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate
this Agreement, or any portion of the Required Services, at any time and for any reason, with
or without cause, by giving specific written notice to Consultant of such termination or
suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such
notice, Consultant shall immediately cease all work under the Agreement and promptly deliver
all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's
sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to
receive just and equitable compensation for this Work Product in an amount equal to the
amount due and payable under this Agreement for work satisfactorily performed as of the date
of the termination/suspension notice plus any additional remaining Required Services
requested or approved by City in advance that would maximize City’s value under the
Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the
terms of this Section, Consultant hereby expressly waives any and all claims for damages or
compensation as a result of such termination except as expressly provided in this Section 6.
Page 542 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
6.4 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, including such policies and procedures used by City in the implementation of same,
are incorporated herein by this reference. Upon request by City, Consultant shall meet and
confer in good faith with City for the purpose of resolving any dispute over the terms of this
Agreement.
6.5 Governing Law/Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action arising under or relating to this
Agreement shall be brought only in San Diego County, State of California.
6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in
California. If Consultant is a foreign corporation, limited liability company, or partnership that
is not registered with the California Secretary of State, Consultant irrevocably consents to
service of process on Consultant by first class mail directed to the individual and address listed
under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service
shall be effective five days after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems
and any other materials or properties produced in whole or in part under this Agreement in
connection with the performance of the Required Services (collectively “Work Product”) shall
be the sole and exclusive property of City. No such Work Product shall be subject to private
use, copyrights or patent rights by Consultant in the United States or in any other country
without the express, prior written consent of City. City shall have unrestricted authority to
publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any
such Work Product, without requiring any permission of Consultant, except as may be limited
by the provisions of the Public Records Act or expressly prohibited by other applicable laws.
With respect to computer files containing data generated as Work Product, Consultant shall
make available to City, upon reasonable written request by City, the necessary functional
computer software and hardware for purposes of accessing, compiling, transferring and
printing computer files.
8. GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both
Parties.
Page 543 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
8.2 Assignment. City would not have entered into this Agreement but for Consultant’s
unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities
under this Agreement, nor any part hereof, without City’s prior written consent, which City
may grant, condition or deny in its sole discretion.
8.3 Authority. The person(s) executing this Agreement for Consultant warrants and
represents that they have the authority to execute same on behalf of Consultant and to bind
Consultant to its obligations hereunder without any further action or direction from Consultant
or any board, principle or officer thereof.
8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which shall constitute one Agreement after each Party has
signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other
agreements expressly referred to herein, constitutes the entire Agreement between the Parties
with respect to the subject matter contained herein. All exhibits referenced herein shall be
attached hereto and are incorporated herein by reference. All prior or contemporaneous
agreements, understandings, representations, warranties and statements, oral or written, are
superseded.
8.6 Record Retention. During the course of the Agreement and for three (3) years following
completion of the Required Services, Consultant agrees to maintain, intact and readily
accessible, all data, documents, reports, records, contracts, and supporting materials relating to
the performance of the Agreement, including accounting for costs and expenses charged to
City, including such records in the possession of sub-contractors/sub-consultants.
8.7 Further Assurances. The Parties agree to perform such further acts and to execute
and deliver such additional documents and instruments as may be reasonably required in
order to carry out the provisions of this Agreement and the intentions of the Parties.
8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly
independent contractor. Neither City nor any of its officers, employees, agents or volunteers
shall have control over the conduct of Consultant or any of Consultant’s officers, employees,
or agents (“Consultant Related Individuals”), except as set forth in this Agreement. No
Consultant Related Individuals shall be deemed employees of City, and none of them shall be
entitled to any benefits to which City employees are entitled, including but not limited to,
overtime, retirement benefits, worker's compensation benefits, injury leave or other leave
benefits. Furthermore, City will not withhold state or federal income tax, social security tax
or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant
shall be solely responsible for the payment of same and shall hold the City harmless with
respect to same. Consultant shall not at any time or in any manner represent that it or any of
its Consultant Related Individuals are employees or agents of City. Consultant shall not incur
Page 544 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
or have the power to incur any debt, obligation or liability whatsoever against City, or bind
City in any manner.
8.9 Notices. All notices, demands or requests provided for or permitted to be given
pursuant to this Agreement must be in writing. All notices, demands and requests to be sent
to any Party shall be deemed to have been properly given or served if personally served or
deposited in the United States mail, addressed to such Party, postage prepaid, registered or
certified, with return receipt requested, at the addresses identified in this Agreement at the
places of business for each of the designated Parties as indicated in Exhibit A, or otherwise
provided in writing.
8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital
or encrypted, of the Parties included in this Agreement are intended to authenticate this writing
and to have the same force and effect as manual signatures. Electronic Signature means any
electronic sound, symbol, or process attached to or logically associated with a record and
executed and adopted by a Party with the intent to sign such record, including facsimile or
email electronic signatures, pursuant to the California Uniform Electronic Transactions Act
(Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time.
(End of page. Next page is signature page.)
Page 545 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
SIGNATURE PAGE
CONSULTANT SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and
Consultant agree that they have read and understood all terms and conditions of the Agreement,
that they fully agree and consent to bound by same, and that they are freely entering into this
Agreement as of the Effective Date.
[COMPANY] CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
Enter Name Of Signatory Choose a signatory.
Enter Title Of Signatory Choose the signatory’s title.
ATTEST 4
BY:
________________________________
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
BY:
_______________________________ Jill D.S.Maland
Lounsbery Ferguson Altona & Peak
Acting City Attorney
4 Attestation signature only required if the Mayor signs the Agreement. If Mayor is not signing agreement, delete
entire attestation signature block.
Page 546 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
INSTRUCTIONS: ENTER INFORMATION AS REQUESTED. FOR SECTIONS THAT
PROVIDE OPTIONS, SELECT THE CORRECT OPTION. IF YOU WISH TO ATTACH
ADDITIONAL INFORMATION RELATED TO EXHIBIT A, PLEASE ATTACH AND LABEL
AS EXHIBIT A, ATTACHMENT (1,2, ETC.) DELETE OPTIONS NOT SELECTED AND
ALL INSTRUCTIONS..
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Enter City Staff Person Name
Enter Mailing Address
Enter Phone Number
Enter Email Address
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Consultant Contract Administration:
[COMPANY]
Enter Mailing Address
Enter Phone Number
Enter Email Address
For Legal Notice Copy to:
Enter Consultant Staff Person Name
Enter Mailing Address
Enter Phone Number
Enter Email Address
2. Required Services
A. General Description:
Enter Summary Of Work To Be Performed (e.g. Consultant XYZ Will Provide Customer
Service Trainings To City Staff)
B. Detailed Description:
Page 547 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
Enter Detailed Information About Each Task To Be Performed, Including Task Description,
Associated Deliverables, And Completion Date. May Be Written As Narrative Or Table, As
Illustrated Below. Delete Table If Not Used.
Task Description Deliverables Completion Date
1 Example: Conduct trainings for
City staff
Provide copy of training
materials, sign-in sheet
and list of agreed-upon
next steps
2 Enter Additional Lines For
Tasks As Needed; Delete
Excess Lines
3
4
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall
begin Enter Date and end on Enter Date for completion of all Required Services.
4. Compensation: SELECT ONE OF THE FOLLOWING OPTIONS THEN DELETE
ANY OPTION THAT IS NOT APPLICABLE, AS WELL AS THESE INSTRUCTIONS
A. Form of Compensation
☐ Single Fixed Fee. For performance of all of the Required Services by Consultant as herein
required, City shall pay a single fixed fee of $Enter Contract Amount, upon completion of all
Required Services to City’s satisfaction.
OR
☐ Fixed Fee Paid in Increments. For the completion of each Deliverable of the Required Services,
as identified in section 2.B., above, City shall pay the fixed fee associated with each Deliverable,
in the amounts set forth below:
Task No. Deliverable Amount
OR
☐ Time and Materials. For performance of the Required Services by Consultant as identified in
Section 2.B., above, City shall pay Consultant for the productive hours of time spent by Consultant
in the performance of the Required Services, at the rates or amounts as indicated below:
Enter Applicable Hourly Rates
Page 548 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
B. Reimbursement of Costs
☐ None, the compensation includes all costs
OR
☐ Invoiced or agreed-upon amounts as follows:
Enter or Attach And Reference Any Agreed-Upon Cost Reimbursements
Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services
performed through Enter End of Contract Date shall not exceed Enter Amount.
5. Special Provisions: CHECK ANY THAT APPLY OR SELECT “NONE,” AND
DELETE ALL INSTRUCTIONS.
☐ Permitted Sub-Consultants: List Permitted Sub-Consultants or Indicate “None”
☐ Security for Performance: See City Attorney or Indicate “None” if Not Applicable
☐ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this
Agreement for Insert Number of Terms additional terms, defined as a one-year increment or Enter
a Specific Date. if applicable. The City Manager or Director of Finance/Treasurer shall be
authorized to exercise the extensions on behalf of the City. If the City exercises an option to
extend, each extension shall be on the same terms and conditions contained herein, provided that
the amounts specified in Section 4 above may be increased by up to Insert Percentage of Increase
or Actual Dollar Amount for each extension. The City shall give written notice to Consultant of
the City’s election to exercise the extension via the Notice of Exercise of Option to Extend
document.
☐ Other: Describe Special Provisions (Delete Line If Not Applicable)
☐ None
Page 549 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
EXHIBIT B
INSURANCE REQUIREMENTS
Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to
provide the following types and minimum amounts of insurance, as indicated by checking the
applicable boxes (x).
Type of Insurance Minimum Amount Form
☐ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
☐ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
☐ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
☐ Professional Liability
(Errors & Omissions)
$1,000,000 each occurrence
$2,000,000 aggregate
Other Negotiated Insurance Terms: ENTER ANY ADDITIONAL TERMS OR “NONE”
Page 550 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
EXHIBIT C
CONSULTANT CONFLICT OF INTEREST DESIGNATION The Political Reform Act 5 and the Chula Vista Conflict of Interest Code 6 (“Code”) require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics training requirements.7
☐ A. Consultant IS a corporation or limited liability company and is therefore EXCLUDED 8
from disclosure.
☐ B. Consultant NOT a corporation or limited liability company and disclosure designation is as
follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE
SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-
of-interest-code.)
Name Email Address Applicable Designation
Enter Name of Each
Individual Who Will Be
Providing Service Under
the Contract – If
individuals have
different disclosure
requirements, duplicate
this row and complete
separately for each
individual
Enter email
address(es)
☐ A. Full Disclosure
☐ B. Limited Disclosure (select one or
more of the categories under which the
consultant shall file):
☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐
6. ☐ 7.
Justification:
☐ C. Excluded from Disclosure
1.Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the
5 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
6 Chula Vista Municipal Code §§2.02.010-2.02.040.
7 Cal. Gov. Code §§53234, et seq.
8 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th
261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental
decision; “individual” does not include corporation or limited liability company).
Page 551 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Appendix F Request for Proposals RFP P03-2024
Attachment F.4 Two Party Agreement
Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve
as the written determination of the consultant’s requirement to comply with the disclosure
requirements set forth in the Code.
Completed by: Enter City Staff Person’s Nam
Page 552 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
PROJECT PLAN: Five-Year Citywide Strategic Plan
Timeline Project Element Action Items/Deliverables Cost
PROJECT PLANNING
May/June Kick-off planning
meeting with
project team
• Initial planning meeting with project team
o Review and discuss project objectives, desired timeline,
and general approach
o Outline key stakeholders to involve in the strategic
planning process
o Identify project team, working
arrangement/tools/systems, and schedule for project
check-in meetings
Deliverable: produce a project plan back to client with schedule for
key project events, timeline for deliverables, and estimated project
completion date
$2,240
May/June Review of
organizational
materials and
resources
• In-depth review of key organizational materials and
resources:
o Previous strategic plan
o Planning documents and policies outlined in RFP
o Organization/department charts
o Agreements, mandates, reports
o Other relevant organizational data (e.g., survey data)
$3,840
Ongoing Ongoing project
management
meetings
• Regular planning/check-in meetings with project sponsors to
support project management, scheduling, event
coordination, and report development
o Biweekly virtual meetings
o Written status reports as requested by project team
$8,320
STRATEGIC PLANNING PROCESS
Jul/Aug Interviews with
City Council
Members and City
Staff
• Interviews with City Council members and City staff to
establish rapport, solicit input regarding strategic priorities,
and support design of City Council Session #1
o (5) Virtual, 60-minute interviews with City Council
Members and Mayor
o (7) Virtual, 60-minute interviews with City Manager and
Executive Staff
o (15) Virtual, 60-minute interviews with Department
Heads
$12,400
Jul/Aug/Sep Stakeholder
Outreach
• Meeting with City’s JEDI Council
• Meetings with community stakeholder groups
• Engagement with additional special project stakeholders as
needed
$8,000
Page 553 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Sep Public Workshops/
Community
Engagement
• Public workshops or “pláticas” with community members to
solicit input regarding strategic priorities
o Four workshops (one in each district) with bilingual
facilitation (English/Spanish) and live Spanish
translation services
Additional community meetings can be added to the scope for an
additional cost: $3,315
$13,245
Sep Community Survey • Community survey in multiple languages (including English,
Spanish, and Filipino) to further solicit input from the
community regarding strategic priorities
o To include translation services for survey and analysis of
qualitative data in Spanish and Filipino
Please note the survey budget is based on a maximum of two open-
ended questions
$10,215
early Oct City Council
Workshop #1
• Facilitated, in-person session with City Council
o Review of community/stakeholder data and themes
o Review of Mission, Vision, and Values Statements
o SWOT analysis
o Strategic goal setting/prioritization
Outcome: establish strategic framework for 5-year plan
$7,955
Oct/Nov Staff Working
Sessions
• A series of virtual working sessions with key staff to develop
strategic objectives and implementation plans to support the
Council’s Strategic Framework
o Approximately 15-20 working sessions
o The Centre will work with project sponsors to identify
relevant working groups (including SMEs, stakeholders,
committee members, leaders, etc.) and schedule
sessions
o Leads will be established for each strategic goal to
support the successful development of the initial 2 -year
implementation plan (with timelines, performance
measures/outcomes, and implications for the budget)
for each strategic goal outlined in the strategic
framework
o An emphasis will be placed on integrating existing
planning documents and policies into the
implementation plans and to create clear linkages
within the final report
o The Centre will work with project sponsors to identify
an effective “Strategic Planning Cycle” including
timeline, process, and template for assessing the City’s
overall performance within the areas outlined in the
strategic plan
$11,200
Dec/Jan Interviews with
City Council
Members
• Interviews with City Council members to establish rapport
with new City Council members, solicit input regarding
strategic priorities, and support design of City Council Session
#2
o (5) Virtual, 60-minute interviews with City Council
Members and Mayor
$3,600
Page 554 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Late Jan City Council
Workshop #2
• Facilitated, in-person session with City Council
o Review of strategic objectives and implementation
strategies to support Strategic Framework developed by
the City Council Members
o Review of proposed timeline, process, and template for
assessing the City’s overall performance within the
areas outlined in the strategic plan
o Input from City Council Members on plan elements
Outcome: approval of 5-year Plan
$7,315
REPORT DEVELOPMENT
February Develop Draft
Strategic Plan
• Development of the Strategic Plan in alignment with the
input and direction provided by the City Council. The plan is
envisioned to include the following elements:
o Executive Summary
o Mission, Vision and Values Statements
o Strengths, Weaknesses, Opportunities and Threats
(SWOT) Analysis
o 5 Year Strategic Plan
▪ City Council Goals and Objectives
▪ Strategies to Achieve the Goals and
Objectives
▪ Implementation Timeline
▪ Initial Two-year Implementation Plan and
Resourcing Strategy (to be developed in
partnership with City staff, including the
identification of lead department(s), and
sources and uses of funds)
o Performance Measures
o Ongoing Strategic Planning Cycle
o Annual Report Template
Deliverable: develop draft plan to be submitted to the City for review
$8,000
March Finalize and
Submit Strategic
Plan
• Finalize City’s 5 Year Strategic Plan
o Refine plan to incorporate feedback
Deliverable: submit final plan (as a PDF and Microsoft Word document
that can be edited in the future)
$1,980
Travel • Estimated mileage costs (per IRS 2023 rates) $2,000
Miscellaneous
Expenses
• Printed materials for meetings
• Food, is requested, for project events
• Additional translation services
• Miscellaneous additional consulting services
$2,500
TOTAL $102,810
Page 555 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item 8.2
Approve Agreement
The Centre for
Organization
Effectiveness for a
Five-Year Strategic
PlanPresented by:
Courtney Chase
Deputy City Manager
Page 556 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2013
Strategic
Plan
Core Goals:
•Operational Excellence
•Economic Vitality
•Healthy Community
•Strong and Secure Neighborhoods
•Connected Community
Page 557 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Current Guiding
Documents
City Manager’s
Annual Report
Climate Action
Plan
Digital Equity and
Inclusion Plan
Fire Facility,
Equipment and
Deployment Master
Plan
Justice, Equity,
Diversity and
Inclusion (JEDI)
Action Plan
(in progress)
Long Term
Financial Plan
Parks and
Recreation Master
Plan
Police Department
Five-Year
Strategic Plan
Public Library
Strategic Vision
Plan and Strategic
Facilities Plan
Smart City
Strategic Action
Plan
Technology
Oversight and
Privacy Policy
Telecommunications
Master Plan
Page 558 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Request
for
Proposal
P03-2024
Executive Summary
Mission, Vision and Values Statements
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Analysis
5-Year Strategic Plan
City Council Goals & Objectives
Policies and Strategies to Achieve the Goals and
Objectives
Implementation Timeline
Two-year Implementation Plan and Resourcing Strategy
Performance Measures
Strategic Planning Cycle
Annual Report Template
Page 559 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
THE CENTRE
FOR ORGANIZATION
EFFECTIVENESS
Page 560 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
About The Centre:
•Established in 1993
•Joint Powers Authority
•Clientele: public sector agencies throughout California
•Extensive experience supporting organizations with strategic planning
•Based in Southern California
Familiarity with region
Increased accessibility and reduced travel costs
Page 561 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
May-Jun Jul-Sept
PROJECT PLANNING
•Kick-off planning meeting with
project team
•Review of organizational
materials and resources
•Ongoing project management
meetings (May-Mar)
STRATEGIC FRAMEWORK
CITY COUNCIL WORKSHOP #1
Outcome: establish strategic
framework for 5-year plan
STAFF WORKING SESSIONS
A series of virtual working sessions
with key staff to develop strategic
objectives and implementation plans
to support the Council’s Strategic
Framework
Oct-Nov Dec-Jan Feb-Mar
Strategic Planning Process
DATA COLLECTION
•Interviews with City Council
Members and City Staff
•Internal stakeholder engagement
•Public Workshops/ Community
Engagement
•Community Survey
STRATEGY AND
RESOURCE ALIGNMENT
INTERVIEWS WITH COUNCIL
Solicit input regarding strategic
priorities, and support design of City
Council Session #2
CITY COUNCIL SESSION #2
Outcome: approval of 5-year Plan
PLAN DEVELOPMENT
•Development of the Strategic
Plan in alignment with the input
and direction provided by the City
Council.
•Submission of draft plan to the
City for Review
•Submission of finalized Strategic
Plan
Page 562 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
The Centre’s
Strategic Planning Team
Page 563 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Page 564 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Recommende
d Action
Adopt a resolution approving
an agreement with The Centre
for Organization
Effectiveness to complete a
new citywide five-year
strategic plan.
Page 565 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Item 10.1: Legislative Update on
Assembly Bill 2783
Adrianna Hernandez, Special Projects & Legislative Manager
Page 566 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
2
Requested City Amendments
April 9, 2024
City Council adopted a “Support, if Amended” position on AB 2783 requesting the following
amendments:
1.Removal of term limits
2.Revision of the “disclosure of evidence” to add “as permitted by law.”
3.Removal of the Community Impact Fund and Future Public Access Fund
4.Revision of provision related to lobbying, contracting or employment prohibition to one
year, in alignment with current FPPC rules and Government Code 87640.3
5.A second seat on the Board of Port Commissioners for Chula Vista
Page 567 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
3
Recent Amendments
AB 2783 (as amended May 16, 2024)
•Term Limits removed
•Revision to disclosure of evidence to that which is subject to disclosure under the Public Records Act
•Cooling off period reduced to one-year
•Added preference that one of San Diego’s Commissioners should be a current or former member of the
industry workforce
•Revised lobbying disclosure requirements: anyone that meets with Commissioners with the purpose of
influencing a decision are required to file a form, identical to requirements with the City of SD
•Added parameters for Board of Ethics structure
•Codify Maritime Industrial Impact Fund at 2% in-lieu of the fund established by the Board of Port
Commissioners Policy No. 773 to address off-tideland impacts
•Removed Future Public Access Fund Page 568 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
4
Status of AB 2783
Passed
Assembly Local
Government
Committee
•April 10, 2024
Passed
Assembly
Appropriations
Committee
•May 16, 2024
Passed
Assembly Floor
•May 22, 2024
Heads to the
State Senate
Page 569 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda
Recommended Action:
Council hear update and provide direction.
Page 570 of 570
City of Chula Vista - City Council
May 28, 2024 Post Agenda