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HomeMy WebLinkAbout2025/04/01 Agenda Packet Date:Tuesday, April 1, 2025, 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 the day of the meeting at noon for a regular meeting or three hours before the start time for a special 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 Americans with 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 Regulations: To promote transparency and fairness in the governmental decision-making process, there are rules to prevent public officials from being unfairly influenced by contributors to their campaigns. The type of activity these laws were enacted to limit is often referred to as “pay-to-play,” and is governed in California by Government Code section 84308. Parties to any proceedings involving a “license, permit, or other entitlement for use,” as that term is defined in the Political Reform Act, pending before the City Council must disclose any campaign contribution over $500 (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 Regulations Apply: Yes" on this agenda indicates that the item is subject to these regulations. PUBLIC PARTICIPATION Complete Agenda Packet: The 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 additional speakers are 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 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 Comments 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 specified on the agenda. Closed session may be held 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 April 1, 2025 Post Agenda Page 2 of 184 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 Oaths of Office Charter Review Commission - Guillermo A. Castillo Health Wellness and Aging Commission - Juan Guerrero 4.2 Presentation of a Proclamation Proclaiming April as Arab American Heritage Month in the City of Chula Vista 4.3 Presentation of a Proclamation Proclaiming April as Arts, Culture, and Creativity Month in the City of Chula Vista 5.CONSENT CALENDAR (Items 5.1 through 5.6) Consent calendar items are considered together and acted upon by one motion. There is no separate discussion of these items unless the Mayor or a City Councilmember removes the item from the consent calendar. Items removed from the consent calendar will be heard as action items. RECOMMENDED ACTION: City Council approve the recommended action on the below consent calendar items. 5.1 Approve Meeting Minutes 9 RECOMMENDED ACTION: Approve the minutes dated: March 18, 2025 5.2 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. 5.3 Acceptance of the General Plan 2024 Annual Progress Report and Submission to the State of California 15 Report Number: 25-0056 Location: No specific geographic location Department: Development Services G.C. § 84308 Regulations Apply: 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. City of Chula Vista - City Council April 1, 2025 Post Agenda Page 3 of 184 RECOMMENDED ACTION: Accept the 2024 General Plan Annual Progress Report for Calendar Year 2024. 5.4 Gaming Operations: Approve an Updated Operating Agreement with Seven Mile Casino 47 Report Number: 25-0059 Location: 285 Bay Boulevard Department: City Manager G.C. § 84308 Regulations Apply: 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 updated operating agreement with Seven Mile Casino. 5.5 Measure P Citizens Oversight Committee: Amend the Municipal Code Related to Measure P Citizens Oversight Committee Terms, Ratify the Changes to Member Terms, and Accept the Revised Local Appointments List 62 Report Number: 25-0050 Location: No specific geographic location Department: City Manager/City Clerk G.C. § 84308 Regulations Apply: 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: A) Place an ordinance on first reading amending Chula Vista Municipal Code section 2.61.070 related to the terms of the Measure P Citizens Oversight Committee members; B) Adopt a resolution ratifying changes to seated members’ terms; and C) Adopt a resolution accepting the revised Local Appointments List for board, commission, and committee terms expiring in calendar year 2025. City of Chula Vista - City Council April 1, 2025 Post Agenda Page 4 of 184 5.6 Lease Agreement: Approve a Second Amendment to the Lease Agreement with SBCS for City-Owned Property at 430 F Street 83 Report Number: 25-0066 Location: 430 F Street Department: City Manager G.C. § 84308 Regulations Apply: 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 second amendment to the lease agreement between the City of Chula Vista and SBCS for City-owned property at 430 F Street. 6.PUBLIC COMMENTS 121 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 7.1 Code Update - Amend Accessory Dwelling Unit and Junior Accessory Dwelling Unit Regulations to Align with State Law 137 Report Number: 25-0082 Location: No specific geographic location Department: Development Services G.C. § 84308 Regulations Apply: Yes Environmental Notice: The Project qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines RECOMMENDED ACTION: Conduct the public hearing and place an ordinance on first reading amending Chula Vista Municipal Code Title 19 (Planning and Zoning) Sections 19.58.022 (Accessory Dwelling Units) and 19.58.023 (Junior Accessory Dwelling Units). (First Reading) 8.ACTION ITEMS 8.1 Consider Items Removed From the Consent Calendar, if Any Consider items removed from the consent calendar by the Mayor or a City Councilmember, if any. If no items were removed from the consent calendar, this item will be withdrawn. City of Chula Vista - City Council April 1, 2025 Post Agenda Page 5 of 184 8.2 Legislative Platform: Approve the 2025-2026 Legislative Platform 150 Report Number: 25-0070 Location: No specific geographic location Department: City Manager G.C. § 84308 Regulations Apply: 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. 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 the 2025-2026 Legislative Platform. 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 11.MAYOR’S REPORTS 11.1 Consider Adopting a Resolution in Support of Senate Bill 569 (Blakespear), "Department of Transportation: homeless encampments" 179 G.C. § 84308 Regulations Apply: 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: Consider adopting the resolution. 12.COUNCILMEMBERS’ REPORTS 13.CITY CLERK'S REPORTS 14.CITY ATTORNEY'S REPORTS 14.1 Report and Discussion Regarding Options to Modify City Council Policy 111-02 Regarding Special Orders of the Day and Proclamations 181 G.C. § 84308 Regulations Apply: 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. City of Chula Vista - City Council April 1, 2025 Post Agenda Page 6 of 184 RECOMMENDED ACTION: Hear the report and provide feedback. 15.CLOSED SESSION Announcements of actions taken in closed session shall be made available by noon on the next business day following the City Council meeting at the City Attorney's office in accordance with the Ralph M. Brown Act (Government Code 54957.7) 15.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(d)(1) Name of case: Devon Phillps v. Sgt. P. White, et al., United States District Court, Case No. 22cv1343-WQH-WVG 16.ADJOURNMENT to the regular City Council meeting on April 15, 2025, 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 April 1, 2025 Post Agenda Page 7 of 184 NOTICE OF REVIEW AND PENDING APPROVAL OF FINAL MAP: In accordance with California Government Code Section 66458(d), notice is hereby given that the City Engineer has reviewed and, immediately following this City Council meeting of April 1, 2025, will approve the following final map: Chula Vista Tract No. 22-0003, 750 Main Street, Final Map to subdivide the existing 8.21- acre parcel into 7 individual lots. Final Map (PRJ24-001) Specifically, the City Engineer has caused the map to be examined and has made the following findings: The map substantially conforms to the approved tentative map, any approved alternations thereof, and any conditions of approval imposed with said tentative map. • The map complies with the provisions of the Subdivision Map Act and any local ordinances applicable at the time of approval of the tentative map. • The map is technically correct.• Said map will be finalized and recorded, unless an interested party files a valid appeal of the City Engineer’s action to City Council no later than 2:00 p.m., 10 calendar days from the date of this City Council meeting. A valid appeal must identify the improper/incorrect finding and the basis for such conclusion. If you have questions about the map approval findings or need additional information about the map or your appeal rights, please feel free to contact Rima Thomas at rthomas@chulavistaca.gov City of Chula Vista - City Council April 1, 2025 Post Agenda Page 8 of 184 City of Chula Vista Regular City Council and Special Successor Agency to the Redevelopment Agency Meeting MINUTES Date: Location: March 18, 2025, 5:00 p.m. Council Chambers, 276 Fourth Avenue, Chula Vista, CA Present: Deputy Mayor Chavez, Councilmember Fernandez, Councilmember Inzunza, Councilmember Preciado, Mayor McCann Also Present: City Manager Kachadoorian, City Attorney Verdugo, City Clerk Bigelow, Deputy Director of City Clerk Services Turner Minutes are prepared and ordered to correspond to the agenda. _____________________________________________________________________ 1. CALL TO ORDER The meeting was called to order at 5:00 p.m. 2. ROLL CALL City Clerk Bigelow called the roll. 3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Led by Chula Vista Elementary School District Speech Contest Winners. 4. SPECIAL ORDERS OF THE DAY 4.1 Special Recognition of the 2024-2025 Chula Vista Elementary School District Speech Contest Winners Mayor McCann recognized the Chula Vista Elementary School District Speech Contest Winners. 4.2 Presentation of a Proclamation Honoring the Chula Vista Art Guild The proclamation was presented. 5. CONSENT CALENDAR (Items 5.1 through 5.7) City Clerk Bigelow announced that a revised resolution for Item # 5.6 A had been distributed and that action on the item would be on the revised document. John Acosta, Chula Vista resident, spoke regarding various topics related to the consent calendar. Moved by Mayor McCann Seconded by Councilmember Fernandez Page 9 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2025-03-18 Regular City Council and Special Successor Agency to the Redevelopment Agency Meeting Minutes Page 2 To approve the recommended actions appearing below consent calendar Items 5.1 through 5.7. The headings were read, text waived. The motion was carried by the following vote: Yes (5): Deputy Mayor Chavez, Councilmember Fernandez, Councilmember Inzunza, Councilmember Preciado, and Mayor McCann Result, Carried (5 to 0) 5.1 Approve Meeting Minutes Approve the minutes dated: March 4, 2025 5.2 Waive Reading of Text of Resolutions and Ordinances Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting. 5.3 Housing Report: Accept the Housing Element 2024 Annual Progress Report and Housing Successor Annual Report for Fiscal Year 2023-24 Accept the Housing Element 2024 Annual Progress Report and the Housing Successor Annual Report for Fiscal Year 2023-24. 5.4 Chula Vista Community Shuttle: Accept Grant Funds and Authorize the Execution of Documents for the Chula Vista Community Shuttle Program for Enhanced Year 4 Services Adopt a resolution authorizing the City Manager or designee to enter into agreements for additional funds to provide support for the Chula Vista Community Shuttle program and execute related agreements or documents, as follows: (1) Third Amendment with Clean Mobility Options Voucher Pilot Program accepting $300,000; and (2) Second Amendment No. 2024-208 to Agreement No. 2021-101 with Community Congregational Development Corporation accepting $100,000. Item 5.4 heading: RESOLUTION NO. 2025-038 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING A THIRD AMENDMENT TO THE VOUCHER AGREEMENT WITH CLEAN MOBILITY OPTIONS, A SECOND AMENDMENT TO THE AGREEMENT WITH COMMUNITY CONGREGATIONAL DEVELOPMENT CORPORATION TO ACCEPT ADDITIONAL GRANT FUNDS FOR THE CHULA VISTA COMMUNITY SHUTTLE PROGRAM, AND THE EXECUTION OF RELATED AGREEMENTS AND DOCUMENTS 5.5 Agreement: Approve an Agreement with the United States Olympic & Paralympic Committee for Olympic & Paralympic Training Site Facility Designation License, Use and Access for the Chula Vista Elite Athlete Training Center Adopt a resolution approving a Training Site Facility Designation License, Use and Access Agreement with the United Olympic & Paralympic Committee for the Chula Vista Elite Athlete Training Center. Page 10 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2025-03-18 Regular City Council and Special Successor Agency to the Redevelopment Agency Meeting Minutes Page 3 Item 5.5 heading: RESOLUTION NO. 2025-039 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A TRAINING SITE FACILITY DESIGNATION LICENSE, USE, AND ACCESS AGREEMENT WITH THE UNITED OLYMPIC & PARALYMPIC COMMITTEE FOR THE CHULA VISTA ELITE ATHLETE TRAINING CENTER 5.6 Employee Compensation and Bargaining Agreement: Memorandum of Understanding with the Chula Vista Mid-Managers/Professional Association; Compensation Summary for Unrepresented Employees; and Revised Compensation Schedule Adopt resolutions: A) Approving a Memorandum of Understanding (“MOU”) between the City of Chula Vista and the Chula Vista Mid-Managers/Professional Association (“MM/PROF”), SEIU Local 221, related to compensation and other terms and conditions of employment; B) Approving the amended Compensation Summary for Unrepresented Employees; and C) Approving the revised fiscal year 2024-25 Compensation Schedule effective March 7, 2025, as required by California Code of Regulations, Title 2, Section 570.5. Item 5.6 headings: A) RESOLUTION NO. 2025-040 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING ("MOU") BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA MID- MANAGERS/PROFESSIONAL ASSOCIATION (“MM/PROF”), SEIU LOCAL 221, RELATING TO COMPENSATION AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT; AND AUTHORIZING THE CITY MANAGER, AS SET FORTH HEREIN, TO EXECUTE THE AFOREMENTIONED MOU AND ANY ADDITIONAL DOCUMENTS WHICH MAY BE NECESSARY OR REQUIRED TO IMPLEMENT SAID MOU B) RESOLUTION NO. 2025-041 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED COMPENSATION SUMMARY FOR ALL UNREPRESENTED EMPLOYEES AND ELECTED OFFICIALS, INCLUDING AUTHORIZATION FOR THE MAYOR TO EXECUTE ANY NECESSARY CONTRACT AMENDMENTS TO IMPLEMENT SAID AMENDED COMPENSATION SUMMARY C) RESOLUTION NO. 2025-042 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2024-25 COMPENSATION SCHEDULE EFFECTIVE MARCH 7, 2025, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5 5.7 Donation Acceptance: Accept a Billboard Advertisement Donation by The Lamar Companies and Authorize the Execution of a Billboard Donation Agreement Adopt a resolution to accept the in-kind donation from The Lamar Companies (Lamar) for one year of billboard space at Albany and Main to promote Chula Vista Animal Services. Page 11 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2025-03-18 Regular City Council and Special Successor Agency to the Redevelopment Agency Meeting Minutes Page 4 Item 5.7 heading: RESOLUTION NO. 2025-043 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING AN IN-KIND DONATION OF A BILLBOARD FROM THE LAMAR COMPANIES FOR THE ANIMAL SERVICES DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A BILLBOARD DONATION AGREEMENT WITH THE LAMAR COMPANIES 6. PUBLIC COMMENTS Joseph Raso, Chula Vista resident, spoke in opposition to the Tenant Protection Ordinance and various other topics. John Acosta, Chula Vista resident, spoke regarding various topics. 7. ACTION ITEMS 7.1 Consider Items Removed From the Consent Calendar, if Any There were none. 7.2 Affordable Housing: Approve up to $4.0 Million for an Affordable Housing Development to be Located at 201 Third Ave Housing Manager Warwick gave a presentation on the item. Kevin Leichner, representing Community Housing Works, responded to questions from the City Council. Moved by Councilmember Preciado Seconded by Deputy Mayor Chavez To adopt Housing Authority Resolution No. 2025-002, the heading was read, text waived. The motion was carried by the following vote: Yes (4): Deputy Mayor Chavez, Councilmember Fernandez, Councilmember Inzunza, and Councilmember Preciado No (1): Mayor McCann Result, Carried (4 to 1) Item 7.2 heading: RESOLUTION NO. 2025-002 OF THE CHULA VISTA HOUSING AUTHORITY ACTING IN ITS CAPACITY AS THE SUCCESSOR HOUSING AGENCY TO THE CHULA VISTA REDEVELOPMENT AGENCY APPROVING A LOAN TO COMMUNITY HOUSINGWORKS, OR AN AFFILIATED ENTITY, TO ASSIST IN THE CONSTRUCTION OF A 79-UNIT AFFORDABLE HOUSING DEVELOPMENT TO BE LOCATED AT 201 THIRD AVENUE, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ALL DOCUMENTS RELATED TO THE LOAN IN A FORM APPROVED BY THE CITY ATTORNEY (4/5 VOTE REQUIRED) Page 12 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2025-03-18 Regular City Council and Special Successor Agency to the Redevelopment Agency Meeting Minutes Page 5 8. PUBLIC COMMENTS (CONTINUED) There were none. 9. CITY MANAGER’S REPORTS 9.1 Homeless Encampment Clean Up Update Director of Housing and Homeless Services Kurz gave an update on the item. At the request of Mayor McCann there was a consensus of the City Council to add an item to a future agenda to consider adopting a resolution in support of Senate Bill 569, "Department of Transportation: homeless encampments. The following members of the public spoke regarding the item:  John Acosta, Chula Vista resident  Harold DeMoss, Chula Vista resident 10. MAYOR’S REPORTS Mayor McCann reported on attendance at recent events and made community announcements. At the request of Mayor McCann, there was a consensus of the City Council to add an item to a future closed session agenda to discuss police officer compensation. At the request of Mayor McCann, there was a consensus of the City Council to light up City Hall in teal in recognition of World Fragile X Day. 10.1 Ratification of Appointment to the Charter Review Commission - Guillermo A. Castillo Moved by Mayor McCann Seconded by Councilmember Preciado To ratify the above appointment of Guillermo Castillo to the Charter Review Commission. The motion carried by the following vote: Yes (5): Deputy Mayor Chavez, Councilmember Fernandez, Councilmember Inzunza, Councilmember Preciado, and Mayor McCann Result, Carried (5 to 0) 11. COUNCILMEMBERS’ REPORTS City Councilmembers reported on attendance at recent events and made community announcements. At the request of Councilmember Inzunza, there was a consensus of a majority of the City Council to direct staff to initiate and facilitate a feasibility study on the potential development of a police substation in east Chula Vista. At the request of Councilmember Preciado, there was a consensus of the City Council to incorporate an increase in police staffing into the strategic plan efforts. Page 13 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2025-03-18 Regular City Council and Special Successor Agency to the Redevelopment Agency Meeting Minutes Page 6 11.1 Councilmember Inzunza: Ratification of Appointment to the Health Wellness and Aging Commission - Juan Guerrero John Acosta, Chula Vista resident, spoke in support of the item. Moved by Councilmember Inzunza Seconded by Councilmember Preciado To ratify the above appointment of Juan Guerrero to the Health Wellness and Aging Commission. The motion carried by the following vote: Yes (5): Deputy Mayor Chavez, Councilmember Fernandez, Councilmember Inzunza, Councilmember Preciado, and Mayor McCann Result, Carried (5 to 0) 12. CITY CLERK'S REPORTS There were none. 13. CITY ATTORNEY'S REPORTS 14. ADJOURNMENT The meeting was adjourned at 6:47 p.m. Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services _________________________ Kerry K. Bigelow, MMC, City Clerk Page 14 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda v . 0 0 5 P a g e | 1 April 1, 2025 ITEM TITLE Acceptance of the General Plan 2024 Annual Progress Report and Submission to the State of California Report Number: 25-0056 Location: No specific geographic location Department: Development Services G.C. § 84308 Regulations Apply: 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 Accept the 2024 General Plan Annual Progress Report for Calendar Year 2024. SUMMARY The General Plan Annual Progress Report (“APR”; Attachment 1) is a state required informational report prepared each year that is sent to various state agencies showing the City’s progress in implementing the policies and goals found in its General Plan. California Government Code Section 65400(a)(2) requires the City Council to consider the APR at a public meeting and to submit the report to the state by April 1st of each year. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (“CEQA”) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable Page 15 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 2 DISCUSSION Background The City of Chula Vista’s General Plan is a long-term policy document that provides the vision, goals, and general policy guidelines which the City uses to guide future land use and natural resource decisions. All cities and counties in California are required by state law to have a general plan that is comprised of at least seven mandated elements. Those elements include land use, circulation, housing, conservation, open space, noise, and safety. Specifically, the City expresses its commitment to achieving this long-term vision in the General Plan’s Implementation Plan (“Chapter 11”). Chapter 11 provides the framework through which the City can review and monitor the effectiveness of the General Plan as the City works toward achieving its vision of a vibrant community with opportunities for comfortable and safe living, recreation, and economic development that enrich the lives of its citizens. Statutory requirements Government Code Sections 65400 and 65700 mandate that each local jurisdiction submit an annual report on the status of its General Plan and progress on its implementation for each calendar year. State law requires that the local legislative body review the APR prior to submittal to the Governor’s Office of Land Use and Climate Innovation (LCI) and the California Department of Housing and Community Development (HCD). The APR helps inform the LCI of local planning activities and provides the local legislative bodies and the public with information regarding the implementation of the General Plan for their city. This gives LCI the opportunity to identify statewide trends in land use decision making and how local planning and development activities relate to statewide planning goals and policies. The APR is due to both agencies on April 1st of each year. Report structure The APR provides information on projects and activities undertaken by the City in 2024 that are in alignment with and help to realize the vision of the General Plan which was last comprehensively updated in 2005. The report organizes these activities under these categories: • Introduction • Background • Housing Element Report • Housing and Homelessness • Development Services • General Plan Amendments • Ordinance Amendments • City Projects - Highlights • Conclusion A few highlights from this year’s APR include: Chula Vista Bayfront: A partnership between the Port of San Diego and City of Chula Vista, the redevelopment of the 535-acre Chula Vista Bayfront envisions a world-class destination in the South Bay – a unique place for people to live, work Page 16 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 3 and play. Much of the development and construction of the Bayfront’s crown jewel, the Gaylord Pacific Resort hotel and convention center, occurred during 2024, and the grand opening is slated for 2025. Safety Element Update The City adopted the Safety Element as part of the General Plan. The adoption of the Safety Element meets the requirements of Senate Bill 1035 and other state legislative requirements and was instrumental in the City achieving a Fire Risk Reduction Community List designation. This designation can result in Chula Vista homeowners qualifying for reduced fire insurance premiums from their respective providers. Comprehensive Code Update The City has embarked on an extensive effort to streamline and clarify development processes and regulations while keeping the Zoning Code in compliance with state laws. In 2024, the City revised numerous sections of the Chula Vista Municipal Code through a series of updates designed to bring both clarity and predictability to the constituents of Chula Vista and the development community alike. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There are no current-year fiscal impacts as a result of this action. All staff time and costs to prepare this report were included in the current fiscal year budget. ONGOING FISCAL IMPACT There are no ongoing fiscal impacts as a result of this action. ATTACHMENTS 1. 2024 General Plan Annual Progress Report Staff Contact: Robin Luna, Associate Planner, Development Services D. Todd Philips, Ed.D., Planning Manager/Zoning Administrator, Development Services Page 17 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2024 - General Plan Annual Progress Report City of Chula Vista 276 4th Ave, Chula Vista, CA 91910 Prepared by Robin Luna Page 18 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2 TABLE OF CONTENTS 1.0 Introduction _______________________________________________________ 4 1.1 Purpose ..................................................................................................................................... 4 1.2 Content Requirements ............................................................................................................... 4 2.0 Background _______________________________________________________ 5 2.1 The General Plan Vision ............................................................................................................ 6 2.2 The General Plan Themes and Relation To This Document ....................................................... 6 2.3 General Plan Compliance with LCI’s General Plan Guidelines ................................................... 8 2.4 Tribal Consultation ..................................................................................................................... 8 3.0 Housing Element Report _____________________________________________ 9 3.1 Regional Housing Needs Allocation ........................................................................................... 9 3.2 Housing Element Implementation status .................................................................................. 10 3.3 Summary of Housing Production .............................................................................................. 10 4.0 Housing and Homlessness __________________________________________ 11 4.1 Funding and Grant Programs ................................................................................................... 11 4.2 Increased Funding for Homeless Prevention Program and Landlord Incentive program ........... 12 4.3 Tax-Exempt Bonds .................................................................................................................. 12 4.4 Amendments to Mobile Home Rent Control Services ............................................................... 13 4.5 Unsheltered Policy ................................................................................................................... 13 4.6 Updates to the Tenant Protection Ordinance ............................................................................ 13 5.0 Development Services _____________________________________________ 15 5.1 Community Facilities Districts .................................................................................................. 15 5.2 Park Master Plan for Deeann Baldwin Plaza ............................................................................ 16 5.3 Nakano Annexation Project ...................................................................................................... 16 5.4 Scripps Medical Facility and Parking Structure......................................................................... 16 5.5 Urbana 2.0 Project ................................................................................................................... 17 6.0 General Plan Amendments __________________________________________ 18 6.1 Safety Element Update ............................................................................................................ 18 6.2 Repeal of the Growth Management Element ............................................................................ 19 6.3 Otay Ranch General Development Plan and Sectional Planning Areas ................................... 19 6.4 Senate Bill 1000 and Senate Bill 1425 ..................................................................................... 20 7.0 Ordinance Amendments ____________________________________________ 22 7.1 Comprehensive Code Update .................................................................................................. 22 7.2 Housing Policy Updates ........................................................................................................... 23 8.0 City Projects - Highlights ____________________________________________ 24 8.1 Measure P Ballot Measure Renewal and Public Education ...................................................... 24 8.2 Chula Vista Bayfront ................................................................................................................ 24 8.3 Chula Vista Strategic Plan ....................................................................................................... 24 8.4 2024 Climate Action Plan Update............................................................................................. 25 8.5 Accessory Dwelling Units - Website, Standard Plans, Software ............................................... 25 8.6 Chula Vista Community Shuttle ................................................................................................ 25 8.7 Capital Improvement Projects .................................................................................................. 25 8.8 Regional Transportation Improvement Program ....................................................................... 26 8.9 Customer Service Improvements ............................................................................................. 26 9.0 Conclusion ______________________________________________________ 29 Page 19 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 3 ACRONYM LIST AB Assembly Bill ADA Americans with Disabilities Act ADU Accessory Dwelling Units APR Annual Progress Report CAP Climate Action Plan CDBG Community Development Block Grant CFD Community Facilities Districts CIP Capital Improvement Program CVMC Chula Vista Municipal Code DIF Development Impact Fees EJ Environmental Justice EPR Electronic Permit Process ESG Emergency Solutions Grant GDP Otay Ranch General Development Plan GPA General Plan Amendment GMOC Growth Management Oversight Commission HCD Housing and Community Development HOME Home Investment Partnerships Act HUD U.S. Department of Housing and Urban Development LCI Office of Land Use and Climate Innovation MHRRC Mobile Home Rent Review Commission OPR Governor’s Office of Planning and Research OVRP Otay Valley Regional Park PLHA Permanent Local Housing Allocation RHNA Regional Housing Needs Allocation SANDAG San Diego Association of Governments SB Senate Bill SHA Successor Housing Agency SPA Sectional Planning Areas TEFRA Tax Equity and Fiscal Responsibility Act of 1982 Page 20 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 4 1.0 INTRODUCTION California Government Code Section 65400 and 65700 requires all cities and counties within the state to submit a General Plan APR along with the Housing Element APR to LCI (formerly known as OPR) and HCD by April 1 each year. This General Plan APR satisfies that requirement by providing an overview of Ge neral Plan implementation in calendar year 2024 and comparing it to state guidance and the General Plan’s “Vision 2020” for the City of Chula Vista. Specific topics in this report include:  Compliance with LCIs 2017 General Plan Guidelines  Housing Element Annual Progress Report Summary  General Plan Implementation Projects  General Plan Updates  Zoning Ordinance Amendments 1.1 Purpose The purpose of the APR is to provide information to the public, local decision makers, and state agencies – primarily LCI and HCD. This information can be used to track progress in meeting local and state goals and to adjust the methods being used to meet those goals, as needed. 1.2 Content Requirements California Government Code 65400 details the information that must be co ntained within the APR, although there is no prescribed format, sequence, or length for the report . The APR reviews activity related to the General Plan within the preceding Calendar Year and must be submitted to the state by April 1 of the following year. As such, this APR is for the period of January 1, 2024, through December 31, 2024. Page 21 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 5 2.0 BACKGROUND California law mandates a City’s General Plan to be kept current. The City of Chula Vista does this through this annual review process, comprehensive updates, and targeted amendments. Updates to entire elements are done as needed and include a look at underlying conditions and preferences. Amendments are typically smaller in scope and involve changing one part in a way that fits within the overall framework. Consideration of amendments are triggered by private applications or by direction from the City Council. The type of notice provided for the hearings depends on the type of proposed change but always includes a descriptive item on the meeting agenda, which is published in the newspaper. The Chula Vista General Plan contains the seven state-mandated elements of land use; circulation; housing; conservation; open space; noise; and safety, as we ll as optional elements to address the economic development and public services. Some elements are combined and re-titled to provide a better focus on the City's specific goals. Table 2-1 identifies the location of mandatory and optional elements in this General Plan. All elements are internally consistent and have equal legal status. Element or Topic Land Use &Transport ation Economic Develop- ment Housing Public Facilities & Services Environ- mental Safety Land Use X Circulation X Housing X Conservation X Open Space X Noise X Safety X Water X Capital Improvements/ Public Facilities X Community Design X Economic/ Fiscal Development X Parks and Recreation X X Energy X Floodplain Management X Local Coastal Plan X Sustainable Development X X Transit-Oriented Development X State Law Mandatory and Optimal General Plan Elements and Topics Table 2-1 Mandatory Elements Optional Elements and Topics Page 22 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 6 2.1 The General Plan Vision The City’s 2005 General Plan “Vision 2020” was shaped through extensive community dialogue, which identified key community issues/concerns, or “critical elements”, that were incorporated into the final document. These critical elements include:  A unique and beautiful physical environment  Healthy and well-planned neighborhoods  Abundant parks, open space, and recreation opportunities  High-quality educational, cultural, and artistic resources  A rich history, heritage, and strong sense of community The General Plan responds to these critical elements with direction through the General Plan’s goals, policies, and possible implementation actions to achieve the “Vision 2020” which is a statement of Chula Vista’s desired future conditions, values, and characteristics. 2.2 The General Plan Themes Seven major themes support Chula Vista's vision for the future and provide a foundation for the policies and action programs of the General Plan. Below is a summary of the City’s 2024 progress towards achieving the General Plan’s themes by implementing the General Plan s goals, objectives, and policies. Theme 1 - Strong Community Character and Image Chula Vista continues to develop as a city with a distinct identity that its citizens are proud to call home. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in:  Chapter 4.1 Funding and Grant Programs  Chapter 6.3 Otay Ranch General Development Plan and Sectional Planning Area  Chapter 7.1 Comprehensive Code Update  Chapter 8.3 Chula Vista Strategic Plan Theme 2 - Healthy and Sustainable Economy Chula Vista continues to expand its local economy by providing a broad range of business, employment, and housing opportunities that support an excellent standard of living and improve the ability for residents to live and work locally. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in:  Chapter 3.1 Regional Housing Needs Allocation  Chapter 3.2 Housing Element Implementation Status  Chapter 3.3 Summary of Housing Production  Chapter 4.3 Tax-Exempt Bonds Page 23 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 7  Chapter 6.2 Repeal of the Growth Management Element  Chapter 7.1 Comprehensive Code Update  Chapter 8.2 Chula Vista Bayfront Theme 3 - Strong and Safe Neighborhoods Chula Vista continues to be a diverse, yet integrated, community that celebrates its neighborhoods as the building blocks that make it a great place to live. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in:  Chapter 4.2 Increased Funding for Homeless Prevention Program and Landlord Incentive program  Chapter 4.4 Amendments to Mobile Home Rent Control Services  Chapter 4.5 Adding “Service Providers” to the Chula Vista Municipal Code  Chapter 4.6 Unsheltered Policy  Chapter 4.7 Updates to the Tenant Protection Ordinance  Chapter 5.3 Scripps Medical Facility and Parking Structure  Chapter 7.2 Housing Policy Updates Theme 4 - Improved Mobility Chula Vista continues to provide a wide range of convenient and affordable mobility options that allow people to go from where they are to where they want to be, in a safe; pleasant; rapid; cost-effective; and environmentally friendly manner. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in:  Chapter 8.6 Chula Vista Community Shuttle  Chapter 8.7 Capital Improvement Projects  Chapter 8.8 Regional Transportation Improvement Program Theme 5 - Healthy and Sustainable Community Chula Vista is committed to the health and wellbeing of all its residents. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in:  Chapter 6.1 Safety Element Update  Chapter 6.4 Senate Bill 1000 and Senate Bill 1425  Chapter 8.4 2024 Climate Action Plan Update  Chapter 8.9 Costumer Service Improvements Theme 6 - High Quality Community Services Chula Vista places a high priority on exemplary community services and facilities (such as police and fire protection, libraries, and parks and recreation), and continues to ensure t hat services and infrastructure expand to match needs created by growth and Page 24 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 8 redevelopment. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in: Chapter 5.1 Community Facilities Districts  Chapter 5.2 Park Master Plan for Deeann Baldwin Plaza  Chapter 6.1 Safety Element Update  Chapter 6.4 Senate Bill 1000 and Senate Bill 1425  Chapter 8.1 Measure P Ballot Measure Renewal and Public Education Theme 7 - Shaping the Future Through the Present and Past Chula Vista values its heritage and unique sense of place and manages change in a way that complements the important qualities and features that shape its identity. Key efforts that contributed to the City’s progress in achieving this theme in 2024 are found in:  Chapter 2.4 Tribal Consultation  Chapter 5.2 Nakano Annexation Project  Chapter 5.4 Urbana 2.0 Project  Chapter 8.5 Accessory Dwelling Units - Website, Standard Plans, Software 2.3 General Plan Compliance with LCI’s General Plan Guidelines LCI adopts and periodically revises General Plan Guidelines for the preparation and content of general plans including detailed information on statutory requirements of the mandated general plan elements. City staff periodically evaluates all state requirements and conducts the required updates or amendments as needed. 2.4 Tribal Consultation In accordance with AB 52 and SB18, tribal consultation is conducted prior to adoption or amendment of the General Plan, Specific Plans, Environmental Impact Reports, and Negative Declarations. Consultation includes identifying and addressing potential adverse impacts to Historical Resources, Unique Archaeological Resources, and Tribal Cultural Resources. Page 25 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 9 3.0 HOUSING ELEMENT REPORT Every eight years, future housing needs are determined for each region of the state based on anticipated growth over a specified period of time (projection period) through the regional housing needs allocation (RHNA) process. The RHNA process uses projecte d population growth to determine housing and affordability needs relative to household incomes and provides estimates of how many new units are needed to meet those needs. SANDAG distributes this regional housing need to the County of San Diego (County) and all incorporated cities. Each recipient of a RHNA allocation must develop a plan (Housing Element) to accommodate the additional housing growth. The City is not required to build the dwelling units assigned through the RHNA process. Rather, the City is responsible for ensuring adequate land is zoned to accommodate projected housing development and to adopt and implement housing programs that promote and facilitate housing construction at all affordability levels without undue governmental constraints. The City’s most recent Housing Element was completed in 2021 for the eight-year planning period that ends in 2029. 3.1 Regional Housing Needs Allocation The current RHNA and Housing Element period extends from 2021-2029 and is referred to as the “sixth cycle” since it is the sixth required update since housing element law was majorly revised by the state legislature in 1980. The City’s sixth cycle RHNA allocation is 11,105 dwelling units which are broken down into different affordability levels based on regional need: Table 3-2 shows progress made towards the City’s RHNA allocation during the 2021-2029, 6th cycle, as well as 2024 progress. The progress shown below includes all units built since the beginning of this 6th cycle. Yearly progress includes all units after the projection period, until the end of the referenced year. Table 3-1 Income Category Very Low 2,750 25% Low 1,777 16% Moderate 1,911 17% Above Moderate 4,667 42% Total 11,105 100% NEW HOUSING CONSTRUCTION OBJECTIVES 2021-2029 RHNA Construction Need Page 26 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 10 3.2 Housing Element Implementation status The 2021-2029 Housing Element contains four goals, 40 policies, and 66 programs intended to address the City’s housing needs. 3.3 Summary of Housing Production As shown in Table 3-3, in 2024, 481 housing applications were submitted to the City, representing a total of 673 proposed units. In 2023, 446 housing applications were submitted to the City, representing a total of 1,602 units. This is roughly a 7.8 percent increase in the number of applications received in the previous year. Table 3 -4 gives further insights on the project type for different housing applications this year. RHNA Allocation by Income Level Projection Period 06/30/2020 - 04/29/2021 2021 2022 2023 2024 Total Units to Date (all years) Total Remaining RHNA by Income Level Deed Restricted 12 46 95 - 14 Non-Deed Restricted - - - - - Deed Restricted - 65 276 58 41 Non-Deed Restricted - - - - - Deed Restricted - - - - - Non-Deed Restricted - - - - Above Moderate 4,667 1,753 749 804 821 1,588 11,105 1,765 860 1,175 879 1,643 4,679 6,426 Total Units 2,597 1,378 1,911 540 Very Low 2,750 Low 1,777 Moderate 1,911 Table 3-2 153 399 - 4,127 Total RHNA Income Level 2024 Units by Structure Type Entitled Permitted Completed 481 Single-family Attached 0 198 304 673 Single-family Detached 20 101 156 2 to 4 units per structure 0 111 21 673 5+ units per structure 232 987 675 0 Accessory Dwelling Unit 0 246 99 Mobile/Manufactured Home 0 0 0 Total 252 1643 1255 Total Housing Units Disapproved Table 3-4Table 3-3 2024 Housing Applications Summary Total Housing Applications Submitted: Total Housing Units Approved Number of Proposed Units in All Applications Received: Page 27 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 11 4.0 HOUSING AND HOMELESSNESS Building affordable housing today in California is an economically challenging endeavor that requires collaborative partnerships with public and private organizations to overcome market forces. The City partners with lenders, developers, nonprofits, and/or state and federal agencies to expand the supply of affordable housing opportunities by providing incentives, policies, and direct financial assistance. The Department of Housing and Homelessness Services is working to address the issues surrounding homelessness and give unhoused individuals a better opportunity to succeed and become self -sufficient. By offering a variety of programs, in addition to partnering with other agencies and service providers, the City seeks to better serve residents by removing barriers and providing access to a breadth of resources. 4.1 Funding and Grant Programs As an entitlement community with HUD, the City of Chula Vista receives annual funding under three entitlement block grant programs: CDBG, HOME and ESG. As a recipient of these HUD funds, the City is required to adopt a five -year planning document entitled the Consolidated Plan, which describes the City's five-year strategy for use of these funds based upon the identified goals and objectives related to its housing and community goals and development priorities. Details on the activities identified by the City for the different grants in Table 4.1 below. For the 2024/25 program year, Chula Vista will receive $2,353,427 in CDBG Funds, $788,011 in HOME funds, and $204,011 in ESG funds. Additionally, the City submitted the 2024 annual application for funds of the PLHA grant from HCD and approved a Plan Amendment that Page 28 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 12 complies with new PLHA program requirements. 4.2 Increased Funding for Homeless Prevention Program and Landlord Incentive program Homelessness Prevention Program In June of 2023 the Housing and Homeless Services Department implemented a Homelessness Prevention Program which assists clients on the verge of eviction. The program assisted 15 households in 2024. This program enables the City of Chula Vista to pay up to six months of missed rent and late fees to avoid eviction and potential homelessness. Keeping households in place has a direct impact on the health of the community as well as on the individual. In early 2024, the City allocated an additional $100,000 from the SHA funds with which the City anticipates being able to assist up to 15 additional households with rental arrears to maintain their current housing. Landlord Incentive Program Another barrier to accessing safe and permanent housing is the lack of the necessary rental and credit history. The Landlord Incentive Program. In 2024, the City allocated an additional $300,000 from the SHA to the Landlord Incentive Program. The incentive program includes the following:  A leasing bonus of $2,500 to a landlord willing to accept a tenant who was previously unhoused  Security deposit totaling 2 months’ rent  Payment of application and credit check fees up to $50  A contingency fund totaling up to $5,000 per unit to cover potential damages. This program assists both the tenant & landlord in the rental market as it helps secure units for individuals who may not be otherwise accepted. 4.3 Tax-Exempt Bonds In 2024, the Chula Vista Housing Authority adopted a resolution that updating its bond policies to require the Chula Vista Housing Authority to be the bond issuer for affordable housing developments except when a developer has a compelling reason to use an outside issuer. In accordance with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) the City held multiple TEFRA hearings to give the public the opportunity to comment on the use of the proposed tax-exempt bond proceeds. 2024 TEFRA hearings are highlighted below: Page 29 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 13  Tax-exempt revenue bonds for the acquisition, construction, improvement and equipping of a multifamily rental housing development known as Congregational Place located at 305 E Street.  Tax-exempt facility bonds for the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 178 Third Avenue .  Tax-exempt bonds to finance and refinance the acquisition, rehabilitation, improvement and equipping of a 440-unit qualified residential rental project located at 1250 Santa Cora Avenue. 4.4 Amendments to Mobilehome Park Rent Review Services CVMC Chapter 9.50 (Mobilehome Park Space Rent Review), sets the annual rental increase to 0.75 of CPI. Mobilehome park owners can request to increase rental rates beyond the annual permitted rate, and residents have the right to dispute such increases. Historically, cases were heard by the MHRRC, however since 2012, no cases have been filed. In 2024, changes were to the Mobilehome Parks Space Rent Review process were adopted to improve access improve the process of by replacing the MHRRC with a Hearing Officer. This transition eliminates the MHRRC, simplifies the administrative fee collection, reduces staff costs, and addresses ongoing challenges with maintaining the Commission. Staff is committed to streamlining the administration of the Mobile Home Rent Review Ordinance, while ensuring a fair process for both park owners and residents. 4.5 Unsheltered Policy In the last four years, the unsheltered crisis has grown within the City with a number of unsheltered doublings from prior years. Unsheltered persons frequently occupy public spaces and other places not meant for human habitation. In response, the City has developed and implemented a multi-faceted approach inclusive of initiatives, programs, and projects to address the needs of the unsheltered. However, the concentration of growing encampments has resulted in a public health and safety hazard that has adversely impacted the surrounding areas. In 2024, the City approved an ordinance that prohibits campsites and si tting, sleeping, lying, or storing personal property on public property at specific locations in the City. 4.6 Updates to the Tenant Protection Ordinance On September 30, 2023, the state increased tenant protections via SB 567 that took effect on April 1, 2024. The City has amended Chapter 9 (Public Peace, Morals and Welfare) the Municipal Code to incorporate changes to state law and continues providing additional protections beyond state law. SB 567 adds additional requirements related to the Page 30 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 14 termination of tenancy for no-fault bases through the amendment of California Civil Code Section 1946.2 Page 31 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 15 5.0 DEVELOPMENT SERVICES The City of Chula Vista Development Services Department assists the public in managing the development of the community to protect and preserve the quality of life, promote a sound economic base and appropriate design, and ensure safe construction, all in balance with the constraints of the City’s environment and resources. This section describes the completed and in-progress 2024 Development Services Department efforts that implement and support the General Plan’s policies and/or implementation actions. 5.1 Community Facilities Districts In 2024, the City has created new CFD for the City’s Citrus Bay and El Dorado Ridge projects to levy special taxes that will help achieve project specific mitigation. CFD for the City’s Citrus Bay and El Dorado Ridge projects are highlighted below: El Dorado Ridge Project CFD A Tentative Map and Mitigated Negative Declaration were approved on January 10, 2006, for the El Dorado Ridge Project. The Project is required to create a 4-acre natural open space easement within the 11.5-acre project site to protect environmentally sensitive habitat. In addition to the on-site open space easement, the project must provide an additional 5.5-acre off-site habitat to mitigate for the Project’s biological impacts. In 2024, the City approved a CFD which will fund long-term maintenance in perpetuity by levying an annual special tax which will be collected on the property tax bill of the subject properties. The funds collected will be transferred to the City and used to perform the maintenance and monitoring of the open space mitigation areas. Citrus Bay CFD The owner of the Citrus Bay project is, in the process of constructing a 244 for-sale, market rate townhomes on the former Sears site at the Chula Vista Center Mall. In connection with this development, the developer is required to construct a half-acre public park and pay certain DIF’s, and other fees associated with the project. The formation of the CFD will generate funding to construct the public park and build other public facilities with DIF funds. Page 32 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 16 5.2 Park Master Plan for Deeann Baldwin Plaza In 2024, a Park Master Plan for the 1.41-acre Park located in Otay Ranch Village Two has been approved. The public park, named “Deeann Baldwin Plaza”, will be privately maintained and owned by the Village of Montecito Homeowner Association with a public access easement placed in perpetuity that will allow the general public to enjoy the recreational facilities offered. Construction of the park is expected to start in Fall of 2025 . The master plan for the park includes the following elements:  Picnic tables/benches  Bean bag toss area  Two Bocce ball courts  Two community rocker benches  Two group picnic area under shade structures (rentable)  Foosball table  Ping pong tables  Group gathering plaza with overhead festival lights  Large open lawn area  Seating areas within gardenesque planting areas  New additional accessible parking stall along Santa Victoria Road  Park monument sign in the Montecito Community theme  Pedestrian orientated paved walkways & meandering DG pathways with lighting  Bike racks  Pet waste stations 5.3 Nakano Annexation Project On December 17 the City approved the development of up to 221 dwelling units consisting of detached condominiums, duplexes, and townhomes on a 23.77 -acre parcel generally located south of the Otay River and east of Interstate 805 . The Project incorporates several pocket parks and publicly accessible trail connections to the OVRP and includes improvements to parking, landscaping, drainage, stormwater infrastructure, and associated utilities. Because the project site can only be accessed and receive services from the City of San Diego, the project has been additionally proposed to be annexed into San Diego. San Diego will go through their entitlement process in early 2025. 5.4 Scripps Medical Facility and Parking Structure As part of the redevelopment of the Chula Vista Center Mall the Planning Commission approved the construction of a three -story, 75,884-square foot medical official building Page 33 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 17 and a four-story, 372-space parking garage on a 2.43 acres portion of an existing surface parking lot for the mall. The new medical office will offer variety of services including a pharmacy, urgent care, laboratory, exam rooms, physician offices, clinic space, and physical therapy. Construction of the project has started in the summer of 2024. 5.5 Urbana 2.0 Project In 2024, the Chula Vista Planning Commission approved the construction of a seven -story apartment building with 208 market-rate rental units, underground parking, and a rooftop terrace with a pool. The proposed building will have four walk-up studio units, 94 studio units and 110 one-bedroom units, ranging in size from 355 square feet to 657 square feet and will be situated between the first Urbana project and the Veterans Administration building on H street. Page 34 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 18 6.0 GENERAL PLAN AMENDMENTS 6.1 Safety Element Update In 2018, the Governor signed into law SB 1035. The law requires local jurisdictions to update their General Plan’s Safety Element upon each revision of the housing element or local hazard mitigation plan, but not less than once every eight years. Each update is required to address new information relating to flood, fire hazards, climate adaptation, and resiliency strategies applicable to the city or county that was not available during the previous version of the safety element. In April 2024, the City adopted its Safety Element to meet the requirements of SB 1035 and several other State bills that require amendments to the General Plan’s Safety Element as listed below:  Update flood-related information and strengthen flood protection measures (AB 162)  Local Hazard Mitigation Plan integration or incorporation by reference into the Safety Element (AB 2140)  Identification of evacuation routes and access to two or more evacuation routes for residential areas (SB 1241)  Consultation with Cal FIRE and the Department of Conservation on wildfire policies (SB 1241)  Analysis of evacuation routes to include the safety, viability, and capacity under a range of emergency scenarios (AB 747 and SB 99) The adoption of the Safety Element assisted the City in achieving the Fire Risk Reduction Community List designation. The Fire Risk Reduction Community List, pursuant to California Public Resource Code §4290.1, is a list of local agencies located in a very high fire hazard severity zone that meet best practices for local fire planning. Inclusion on the list gives the Chula Vista Fire Department increased qualification for grant opportunities and allows for Chula Vista residents to potentially qualify for reduced fire insurance rates, and/or fire insurance rates that would not escalate. As required by California Government Code §65302, the draft Safety Element was submitted to and was reviewed by the California Board of Forestry and Fire Protection. The Board held a meeting on April 9, 2024, to discuss the City’s draft Safety Element. The Board’s final review determined that the City’s Safety Element ha d adequately addressed and mitigated the City’s wildfire risk and met the fire safety planning requirements outlined in Government Code §65302. Page 35 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 19 6.2 Repeal of the Growth Management Element In 2022, the City Council approved revisions to the General Rules , structure, and scope for various City Boards and Commissions. Among the changes was the dissolution of the GMOC. The GMOC was originally formed, in part, to provide an independent annual review of the effectiveness of the General Plan regarding development progress within the City. Additionally, annual reviews were conducted reviewing the implementation of the Growth Management Element of the General Plan and the Growth Management Program. The dissolution of the GMOC resulted from the depletion of vacant land east of Interstate 805 to the eastern city boundary, and the progression of building out previously approved SPAs since 2014. In addition, legislative actions signed by the Governor of California in recent years make any growth management -related measures an impermissible barrier to increasing the supply of housing and in direct contradiction to state law(s). As a result, the City removed the remaining vestiges of the GMOC and the Growth Management Element in its entirety in 2024 within the following documents:  the General Plan;  the General Plan Implementation Plan;  the City’s Public Facilities Financing Plan Guidelines; and  several titles within the CVMC. 6.3 Otay Ranch General Development Plan and Sectional Planning Areas The Otay Ranch GDP was adopted by the Chula V ista City Council and the San Diego County Board of Supervisors on October 28, 1993, after a five-year planning process. The plan covers the 23,000-acre Otay Ranch properties and aligns with and implements the City of Chula Vista General Plan in eastern Chula Vista. Since its adoption, the Otay Ranch GDP has been amended several times to address village -specific planning issues. Both the City and the County implement the GDP through additional, more detailed planning processes prior to the subdivision land. In Chula Vista, the City requires the preparation and adoption of SPA plans, which include district regulations and provide a more detailed planning process. In 2024, the City Council approved several amendments to the GDP and SPAs, summarized below: Village 8 East SPA Amendment In May 2024, the Chula Vista City Council approved an amendment to the Village 8 East SPA Plan. The amendment included changes to the residential product mix by removing medium - density single-family residential uses, adjusting the alignment of internal streets, Page 36 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 20 accommodating interchange designs for State Route 125, replacing mixed -use land with Village Core land uses, and expanding the Village Core into the northern portion of the SPA. Revisions were also made to the configurations of the Community Purpose Facility, Neighborhood Park, and school sites. The total number of authorized units in Village 8 East remains 3,276, spread across 18 parcels. Otay Ranch Freeway Commercial Spa Amendment In early 2024, the City approved changes to the Otay Ranch Freeway Commercial SPA Plan, adding medical offices as a permitted use within the C/MU (Commercial Mixed -Use) zone. The amendment also authorized administrative approval of minor modifications to previously approved Design Review permits by the Zoning Administrato r through a Substantial Conformance Review process. Medical offices were not previously included in the SPA’s land use regulations. This change allows medical offices by right to attract a neighborhood -serving facility, which will be targeted for the ground floor of a previously approved mixed-use development along Town Center Drive. Late in 2024, the City approved additional changes to the Otay Ranch Freeway Commercial SPA Plan, an addendum to the associated FEIR 02 -04, and a zone change to modify the land use plan. The previously entitled commercial space was amended from 960,000 square feet to 816,000 square feet and now incorporates a mixed-use residential designation allowing up to 840 multifamily dwellings with optional ground-floor commercial space. The project will include redevelopment of approximately 37,500 square feet of existing commercial space within the existing Otay Ranch Town Center mall in addition to providing approximately 2.56 acres of usable parkland and an enhanced plaza space. 6.4 Senate Bill 1000 and Senate Bill 1425 SB 1000 – Environmental Justice Element The City’s Environmental Element currently includes goals, policies, and objectives addressing Environmental Justice throughout the City. However, the City is actively seeking funding to support the development of a new separate Environmental Justice Element for the General Plan and is on the department priority list for 2025. SB 1425 – Open Space Element Update SB 1425 requires an Open Space Element update by January 1, 2026 . This bill requires the Open Space Element to include plans and action programs that address climate resilience, Page 37 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 21 climate equity, and “rewilding”. Staff anticipates the updated Open Space Element to begin in 2025 be completed by 2026. Page 38 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 22 7.0 ORDINANCE AMENDMENTS 7.1 Comprehensive Code Update In 2024, the City processed revisions to the CVMC through a comprehensive code update that aimed to further streamline and clarify processes and regulations, fix outdated references, and comply with state law. The comprehensive code update was split into four (4) broader categories: Jurisdictional/Procedural, State Law Compliance, Land Use and Development, and Process Improvements. Find each category highlighted below: Jurisdictional/Procedural This category includes revisions to jurisdictional or procedural changes:  Clarifying the permitting authority within the public right-of-way within Title 12 (Streets and Sidewalks)  Clarification on items being heard at any City Council meetings to be consistent with the City Charter State Law Compliance This category includes revisions for state law compliance:  Dwelling unit allowances under Senate Bill 9 Urban Lot Splits; and  ADU size requirements, pursuant to Government Code section 66321 Land Use and Development This category covers the revisions within Title 19 regarding use or development standards:  Electric Vehicle sales and services  R-3 zoning designation density requirements  Temporary and permanent storage containers  Recreational vehicle storage and habitation  Home occupations (home-based businesses) Process Improvements This category includes updates to existing processes for projects and/or permits. This includes the following items:  Substantial conformance review  Use determinations  Planned sign program approval authority  Coastal development permit and design review permit approval findings  Design review permit requirements  Rebuilding non-conforming structures  Initiating amendments to policy documents Page 39 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 23  Development project conformance with the City’s trash hauling requirement 7.2 Housing Policy Updates The City provided updates to commitments made in the City of Chula Vista’s 2021 -2029 Housing Element to facilitate increased production and improved oversi ght of affordable housing development in Chula Vista. These updates to the Housing Policy amended various sections of CVMC Title 19 (Planning and Zoning), including aligning the City’s density bonus with state law; codifying an inclusionary housing ordinance; making minor revisions to the City’s objective design standards; and establishing new chapters setting forth requirements for marketing and leasing affordable units, as well as for the sale of affordable homeownership units. Additionally, the City approved measures that streamline fee exemptions for 100% affordable projects and enhance oversight over affordable projects. Page 40 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 24 8.0 CITY PROJECTS - HIGHLIGHTS 8.1 Measure P Ballot Measure Renewal and Public Education In 2016, voters approved Measure P, a 10-year one-half cent general sales tax. Collection of this general sales tax began in March 2017 and was anticipated to raise $245 million for high priority infrastructure needs within the City during the collection period. As the end of the 10- year term of Measure P approached, the City contracted with TeamCivX in 2023 to gauge voters’ opinions regarding the quality of life and services provided by the City of Chula Vista and the feasibility of renewing Measure P. In 2024, the City approved an additional agreement with TeamCivX which allowed the City to further educate the public through awareness and develop a potential similar ballot measure. Measure P renewal was placed on the November 2024 Ballot and passed with 73% in fa vor of renewal. 8.2 Chula Vista Bayfront A partnership between the Port of San Diego and City of Chula Vista, the redevelopment of the 535-acre Chula Vista Bayfront envisions a world-class destination in the South Bay – a unique place for people to live, work and play. It is designed to create new public parks and recreational adventures, improve the natural habitat, offer new dining and shopping options, provide a world-class hotel and convention center, all for residents and coastal visitors to enjoy. The Gaylord Pacific Resort and Convention Center is currently in construction and is anticipated to open in summer 2025. The Sweetwater Park began construction in the fall of 2023 and is anticipated to be completed in early 2025. 8.3 Chula Vista Strategic Plan In 2024, the City kicked-off a robust community engagement effort for the 2025 Strategic Plan. A total of six workshops were held in late November and early December. Community input is an essential part of this process as the City seeks to establish a vision that represents those who live, work, own a business, attend school, or visit the City of Chula Vista. In the interactive workshops, participants shared thoughts about their experiences living or working in Chula Vista such as what City facilities or services they use, as well as what is good about the City and their communities and what could be improved. The community workshops included four in-person community meetings, one meeting for local business owners or Page 41 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 25 managers, and one virtual meeting that provided opportunities for the general community to contribute to the discussion. Spanish language translation was offered at each meeting. 8.4 2024 Climate Action Plan Update In 2017, the City of Chula Vista adopted its Climate Action Plan (CAP) as a roadmap to reduce greenhouse gas emissions and protect the environment. Since then, the City has made significant progress in achieving many of the plan’s goals and strategies. However, given the changes in our community and the world since 2017, an u pdate to the CAP was necessary to promote a healthier, more equitable community while strengthening our commitment to environmental sustainability. In 2024, staff hosted multiple workshops at all three Chula Vista Library locations to inform residents and gather feedback on this important update. After incorporating community input, staff anticipates presenting the updated CAP to the public in 2025. 8.5 Accessory Dwelling Units - Website, Standard Plans, Software In 2023, the City received a Housing Acceleration Program grant from SANDAG to develop tools to assist homeowners interested in constructing ADUs in Chula Vista. In 2024, City staff created and implemented these tools, which include a comprehensive resource page on the City’s website, standard ADU plans to streamline design review, placement software to visualize ADUs on properties, and a pilot program through matching funds to provide forgivable loans to homeowners who agree to construct and rent ADUs at affordable rates 8.6 Chula Vista Community Shuttle Since June 2022, The City has been offering affordable eco-friendly rides in Chula Vista through Circuit. The all-electric shared vehicles reduce emissions and traffic congestion in the community while creating jobs and promoting local businesses. In 2024, the Chula Vista service was open to riders under the age of 55 for a fare of $2 per rider. Riders 55 and older will continue to enjoy free rides. 8.7 Capital Improvement Projects The City has undertaken a wide range of Capital Improvement Project s, with multiple projects progressing through design or construction in 2024. Find a list of projects below: Construction Phase Projects  Sidewalk Gap Third Ave W/S Orange Ave to Anita St, E/S Anita St to Zenith St Page 42 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 26  Sidewalk Replacements (Citywide)  Heritage Road Bridge  Eucalyptus Park Renovations Design Phase  Street Improvements for Alpine Avenue  Sidewalk Panel Replacement Citywide  Bayshore Bikeway Improvements  “F” Street Promenade Improvements  Telegraph Canyon Road Raised Median Improvements 8.8 Regional Transportation Improvement Program Since 1987, the voters of San Diego County authorized a half-cent increase in the countywide sales tax through 2048 to fund specified transportation programs and projects. One third of the revenues generated by the tax are allocated by SANDAG to the local agencies for local street and road purposes. In 2024, SANDAG provided the member agencies with an updated Transnet Revenue Forecast for the Local Street Improvement Program, covering fiscal years 2024-25 through 2028-29. The following are the major projects that will be included for TransNet funding in fiscal year 2024-25: Congestion Relief Projects  Traffic Signal System Optimization  Major Pavement Rehabilitation  Raised Median Improvements  New Sidewalk Improvements Maintenance Projects  Pavement Management System  Minor Pavement Rehabilitation Program  Major Pavement Rehabilitation  Advance Planning Studies  School Zone Traffic Calming  Neighborhood Traffic and Pedestrian Safety Program  Traffic Signing. Studies and Signal Upgrade  Traffic Monitoring Program  ADA Pedestrian Curb Ramps 8.9 Customer Service Improvements In 2024, the City of Chula Vista’s Development Services Department launched an electronic plan submittal and review software system (EPR) that allows the City to accept Page 43 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 27 development and building permits online for all new projects. The 2024 launch expanded the existing digital permitting process that had been available in previous years for a limited number of permit types. This effort is expected to create a more efficient and effective way for the City to process permits by using data and technology to improve transparency and performance. Staff can now review construction plans electronically through the implementation of EPR and the system allows for customers to review project status and comments in a timelier fashion by using the City’s Citizen Access web portal. Additionally, technology advancements were also made this year to enhance the in-person payment processing experience with the integration of Tyler Cashiering software which has helped modernize the intake of customer payments. Page 44 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 28 Page 45 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 29 9.0 CONCLUSION The City's General Plan guides the use and protection of the City's various resources to meet community purposes. It reflects consensus and compromise among a wide diversity of citizens' preferences, within a framework set by state law. The General Plan is published in separately adopted elements, each containing policies and implementing programs. The General Plan Annual Report summarizes the major programs in these elements that saw activity in 2024. Page 46 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda v . 0 0 5 P a g e | 1 April 1, 2025 ITEM TITLE Gaming Operations: Approve an Updated Operating Agreement with Seven Mile Casino Report Number: 25-0059 Location: 285 Bay Boulevard Department: City Manager G.C. § 84308 Regulations Apply: 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 updated Operating Agreement with Seven Mile Casino. SUMMARY Cardroom operations are regulated by state and local government. The Gambling and Control Act (Business and Professions Code section 19800, et seq.) created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau of Gambling Control within the Attorney General’s Office and the five-member California Gambling Control Commission appointed by the governor. Locally in Chula Vista, cardroom operations are regulated by the Chula Vista Municipal Code and a City Council-adopted Gaming Plan and Operating Agreement. The Operating Agreement implements the requirements imposed by Gaming Plan Section 5.5. In 2019, the Chula Vista City Council approved a five-year Cardroom Operating Agreement which expired on June 30, 2024 and was administratively extended to allow for additional negotiations. The proposed Operating Agreement would allow Seven Mile Casino an initial year of operations through April 14, 2026, with four additional, one-year extensions, and change the License Fee structure to include both a Per Table Fee and a Gross Gaming Revenue Fee. Page 47 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 2 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) 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. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the State CEQA Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Background Cardrooms are one of California’s oldest forms of legal gambling with operations ranging from “mom and pop” storefronts, to larger, more sophisticated establishments. Historically, card clubs were regulated by local governments. Beginning in the mid-1980s the State gradually increased its regulatory oversight. The stated primary purpose of this increased oversight by the State was to attempt to prevent criminal activity from being associated with these businesses. In 1997, then Attorney General Daniel Lungren and Senate Pro Tem Bill Lockyer introduced and passed the California Gambling Control Act. (SB 8 was enacted; the language is in Business and Professions Code: 19800 - 19987.) The Gambling Control Act developed the California Gambling Control Commission (the “State Gambling Commission”) and the Bureau of Gambling Control (the “Bureau”) in the California Department of Justice. The State Gambling Commission and the Bureau are responsible for the development of policy, regulatory oversight, and enforcement of the States gaming laws at California cardrooms. With these changes, California cardrooms are now regulated at both the local and state levels. Of the 80 or so cardrooms in California, the largest are Commerce Casino and Hawaiian Gardens Casino, with approximately 374 tables each. The largest cardroom in San Diego County is the Ocean’s Eleven Casino in Oceanside, which is currently operating 50 tables. History of Village Club Card Room (now Seven Mile Casino) Ownership and Operations The original Village Club card room operated at its Broadway location from 1946 until 2015. Harvey Souza managed the business from 1963 to 2015. In 2015, the Village Club Card Room moved its operations to a 20- table cardroom located at 271 and 285 Bay Boulevard, Chula Vista, California. The relocated business was renamed “Seven Mile Casino”. On March 3, 2015, the City Council approved Resolution 2015-057, ratifying Chief Bejarano’s approval of Stone Chula Vista Holdings, LLC members “financial interests” in Village Club Card Room’s license after reviewing their applications and conducting background checks. The Stone Chula Vista Holdings, LLC Page 48 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 3 members were told they would need to re-apply for approval with the Chief of Police if and when they proposed to exercise their option and obtain a direct interest in the cardroom license. In 2016, Stones Corp. exercised its option and entered into agreements to purchase 100 percent of Seven Mile Casino from VC Inc. (Village Club Card Room), conditioned upon approval of the State Gambling Commission and the City. In February 2017, the City Attorney’s Office reviewed the transfer and ownership documents in connection with this transaction and found no issues of concern in its review. The Police Department reviewed and approved the Seven Mile Casino security plan, financial interests, experience, and expertise to operate a cardroom in accordance with state gaming laws and approved of the transfer. On March 23, 2017, the State Gambling Commission issued a Temporary State Gambling License to Stones Corp. and approved the transfer of the interests in Seven Mile Casino from VC Inc. to Stones Corp. The State Gambling Commission’s approval was preceded by a substantial due diligence review of the Stones Corp. principals including review of the various financial and ownership interests of the principals and entities involved in the transfer, and confirmation of compliance with the Business and Professions Code. In 2019, the City Council approved a five-year operating agreement through June 30, 2024 with an ability to extend for an additional five years. The quarterly table fee increased from $7,990 to $9,000 for FY 2019-20 (12% increase) and then $9,540 for FY 2020-21 (6% increase). A 3% increase occurred every subsequent year. A provision in the 2019 agreement anticipated the potential opening of the Gaylord Pacific Resort and Convention Center prior to 2024, and would have automatically approved an additional five year extension term and changed the licensing fee from a per table fee to a percentage rate structure once the Gaylord Pacific Resort and Convention Center opened. That provision, however, did not go into effect prior to the expiration of the 2019 agreement because the Gaylord Resort has not yet opened. In the time period preceding the expiration of the 2019 Operating Agreement, negotiations between the City and Seven Mile Casino/Stones Corp. regarding a new Operating Agreement commenced. Proposed Operating Agreement In 2024, Stones Corp. approached the City requesting amendments to the Operating Agreement governing their Seven Mile Casino cardroom operations on Bay Boulevard. While Seven Mile Casino currently operates 20 tables, they will be seeking to increase their tables and capacity if allowed by the state. Additionally, there are currently anticipated material changes to the types of games that may be allowed to be played in cardrooms in California; such changes could take place as early as this year. These variables require any new operating agreement to be flexible enough to respond to such legal changes and practical realities. Additionally, staff recommend ensuring fees are imposed to cover the cost of the additional services required to support the operation of an expanded cardroom. Additionally, due to the significant investment in the redevelopment of the Chula Vista Bayfront, it is anticipated that Seven Mile Casino will see an increasing in patrons from the hospitality industry. After several months of discussions between the parties, the following proposed amendments to the Operating Agreement are being recommended by staff: Page 49 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 4 • One-year Operating Agreement through April 14, 2026 with four additional, one-year extensions that occur automatically absent any Material Law Change; • Increase the quarterly table fee from $10,737 to $10,952 (2% increase) effective January 1, 2026, and increasing 2% every year after; • Confirm a gross gaming revenue fee set at one (1) percent of gross gaming revenue effective October 1, 2025; and • In the event of any Material Law Changes, where games can no longer be played in the same manner as previously licensed, the City and operator will meet and confer to evaluate an alternative license fee. If an alternative agreement cannot be reached prior to the effective date of the Material Law Change, the City Manager in consultation with the Director of Finance may implement an interim license fee valid until the date of City Council’s approval of a revised license fee or six months, whichever is sooner. These terms represent a projected increase in license fees that support police, fire, and other City services. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is not impact to the estimated current year license fee revenue of $858,960 which is included in the FY 2025 City Council Adopted budget. ONGOING FISCAL IMPACT The increase in estimated license fee revenue will not be generated by Seven Mile Casino until fiscal year 2026 and will generate approximately $1,109,373 which represents about a 30% increase over fiscal year 2025 revenues. These funds will be included in the City Manager proposed 2026 budget and are considered discretionary revenues and support overall general fund services such as police, fire, libraries, and recreation. ATTACHMENTS 1. Card Room Operating Agreement Staff Contact: Adrianna Relph, Special Projects & Legislative Manager, City Manager’s Office Page 50 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Form Rev 2/18/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CARD ROOM OPERATING AGREEMENT WITH STONES SOUTH BAY CORPORATION WHEREAS, Stones South Bay Corporation, a California Corporation dba: Seven Mile Casino (“Operator”) holds a consolidated cardroom license (“License”) issued by the City that allows it to operate a cardroom within City limits subject to any and all requirements imposed by state law, the Chula Vista Municipal Code (“CVMC”), Gaming Plan, and local land use permits; and WHEREAS, Pursuant to the terms of the License and local and state law, Operator currently owns and operates a cardroom known as Seven Mile Casino located at 285 Bay Boulevard, Chula Vista California (“CV Cardroom”); and WHEREAS, City and Operator previously entered into a cardroom operating agreement on July 1, 2019; such agreement was extended through April 14, 2025; and WHEREAS, City and Operator have negotiated terms for a new Operating Agreement including (1) increasing the Table Rate Fee to $10,952 effective January 1, 2026, (2) confirming a Gross Revenue Fee effective October 1, 2025, and (3) allowing the City Manager, in consultation with the Director of Finance, the authority to implement an interim License Fee arrangement during a Force Majeure Event or Material Law Change absent a new agreement approved by City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Card Room Operating Agreement with Stones South Bay Corporation, 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 Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney Page 51 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 1 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. CARD ROOM OPERATING AGREEMENT [Seven Mile Casino] This CARD ROOM OPERATING AGREEMENT (“Agreement”) is entered into effective as of April 15, 2025 (“Effective Date”) by and between Stones South Bay Corp., a California corporation, dba Seven Mile Casino (“Operator”), and the CITY OF CHULA VISTA, a chartered municipal corporation (“City”) with reference to the following facts: A. Operator holds a consolidated cardroom license (“License”) issued by the City that allows it to operate a cardroom within City limits subject to any and all requirements imposed by state law, the Chula Vista Municipal Code (“CVMC”), and local land use permits issued pursuant thereto. B. Pursuant to the terms of the License and local law, Operator currently owns and operates a cardroom known as Seven Mile Casino located at 285 Bay Boulevard, Chula Vista California (“CV Cardroom”). C. City and Operator previously entered into a cardroom operating agreement on July 1, 2019; such agreement was extended through April 14, 2025. D. In consideration of Operator’s commitment to pay to the City any and all amount s required by this Agreement as provided for in Section 3, City is willing to provide Operator with the certainty of a one year operating term for the CV Cardroom, with an option to extend the agreement for four additional years, on the terms set forth herein. E. This Agreement implements the requirements for continued operation of the CV Cardroom, on terms mutually agreeable to the parties, all as more particularly provided herein below. NOW, THEREFORE, in consideration of the above recitals, the mutual covenants and conditions contained herein, and of other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, City and Operator hereby agree as follows: 1. Agreement to Abide by Local Law. Operator agrees to abide by any and all provisions of local law, including the Chula Vista Municipal Code, City ordinances and resolutions, and any Gaming Plan in effect (collectively “Appliable Local Law”), and acknowledges and agrees that each and every provision of Applicable Local Law is valid and enforceable by the City with respect to the Operator and the CV Cardroom. Operator makes this Agreement on its own behalf, on behalf of any valid successors or assigns thereto, and on behalf of any and all parties deemed by the City to have a financial interest in the License or the CV Cardroom (collectively, the “Licensed Parties”). By signing this Agreement where indicated below, the Licensed Parties agree to be bound by this provision. 2. Specific Agreement to Make Payments Required by Applicable Local Law and this Agreement. Operator agrees to pay to the City the license fees provided for in Section 3 of this Page 52 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 2 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. Agreement and Applicable Local Law. In consideration of City’s obligations under Section 4 of this Agreement, Operator further agrees: (a) to continue to make such payments to the City in the same amounts and on the same terms specified in Section 3 hereof and Applicable Local Law, as applicable; and (b) to meet and confer with the City to develop and implement, if City deems necessary or appropriate, an alternative mechanism for the continuation of such payments throughout the term of this Agreement, and thereafter. 3. License Fees. 3.1 In General. Operator shall pay to City a Per Table Fee and a Gross Gaming Revenue Fee (Per Table Fee and Gross Gaming Revenue Fee collectively, “License Fee”). 3.1.1 Amount of Fees a. Per Table Fee: The fee shall be based upon the number of tables that are licensed and operated by CV Cardroom. The fee shall be based upon the maximum number of tables so licensed and permitted based upon the category of license issued with respect thereto, regardless of the number of tables that may actually be operated on any given day or the category of game conducted thereon. Notwithstanding the foregoing, if the City approves new tables, but State approval is required before the operation of any such new tables, the license fee set forth below, with respect to such new tables, shall not go into effect until the date the required State approval is obtained. i. Category I: Effective April 15, 2025, the Per Table Fee for each card table in a cardroom licensed to Play Category I games shall be $3,825 per card table per annual quarter. This rate shall apply to the maximum number of tables licensed and approved to be operated at the cardroom location regardless of whether or not such tables are actively being used, and regardless of whether or not Category I games are actually being played at such tables. ii. Category II: Effective April 15, 2025, the Per Table Fee for each card table in a cardroom licensed to play Category II games shall be $10,737 per table per annual quarter. This rate shall apply to the maximum number of tables licensed and approved to be operated at the cardroom location regardless of whether or not such tables are actively being used, and regardless of whether or not Category II games are actually being played at such tables. b. Gross Gaming Revenue Fee: Effective October 1, 2025, a quarterly fee based on the total sum equal to one percent of the licensed cardroom’s Gross Gaming Revenue. “Gross Gaming Revenue” means the sum of all money generated or received by the licensed cardroom for the play of all Category I and Category II games, without subtracting any costs or expenses. Page 53 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 3 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. 3.1.2 Procedures for Payment of Fees a. Per Table Fee. The Per Table Fee provided hereunder shall be payable quarterly in advance by no later than the day falling fifteen (15) days prior to the first day of each calendar quarter. b. Gross Gaming Revenue Fee. Operator shall pay the Gross Gaming Revenue Fee owed in quarterly installments based on CV Cardroom’s Gross Gaming Revenue for each 3-month operating period during a July 1 through June 30 fiscal year. Quarterly installments shall be due and payable as follows: November 20 (for the July 1 through September 30 quarter); February 20 (for the October 1 through December 31 quarter); May 20 (for the January 1 through March 31 quarter); and August 20 (for the April 1 through June 30 quarter). Each quarterly installment shall be accompanied by a written report stating CV Cardroom Gross Gaming Revenue for the previous 3-month period and a running total of CV Cardroom Revenue and Gross Gaming Revenue Fees for that fiscal year. The quarterly report shall be submitted in a form and with such back up information as may be reasonably required by the City’s Finance Director. Late payments shall accrue interest at a penalty rate of 10% per annum until paid. 3.2 Audit Rights. The City shall have the right to conduct an independent audit of licensee's accounting records at any time upon three (3) business days prior written notice to licensee. The audit shall be performed by a party designated by the City, subject to the reasonable approval of licensee. If the City elects to conduct such an audit, the licensee shall be responsible for reimbursing City costs incurred in connection therewith. The licensee's reimbursement obligation under this Section shall not exceed $10,000.00 for any twelve (12) month period. 3.3 Fee Receipt. The Finance Director shall issue a receipt for each licensed cardroom and such receipt shall be displayed on the premises during the full term for which such receipt was issued. 3.4 Annual Increase in Per Table Fee. The Per Table Fee amounts set forth in Section 3.1 shall be increased by two percent (2%) per year. The first increase shall take effect on January 1, 2026 and each subsequent increase shall take effect on each January 1 thereafter. This annual base rate increase shall apply to all tables licensed and approved in the previous year regardless of whether or not such tables were put into service that year. 3.4.1 Annual Statement; Reconciliation. Each April 1st Operator shall submit to the City’s Finance Director a certified financial statement of CV Cardroom Gross Gaming Revenue for the previous year (January 1 through December 31) (the “Annual Financial Statement”). The Annual Financial Statement shall be submitted in a form and with such back up information as may be reasonably required by the City’s Finance Director and shall include, at a minimum (a) the Per Table Fee and Gross Gaming Revenue Fee paid for that previous year, and (b) any proposed adjustments to such amount requiring Page 54 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 4 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. additional payments or refunds, as the case may be, based upon the now certified financials for the previous fiscal year. The timing for reporting and reconciliation process under this Section may be modified with the approval of the City’s Finance Director. 3.5. Possible Adjustments Based Upon Material Law Changes. If a court of law or a state agency determines that games or gaming activities that are currently licensed to be played at the CV Cardroom generating ten percent (10%) or more of CV Cardroom Gross Gaming Revenue can no longer be played in the same manner previously licensed to the Operator as of April 15, 2025 (“Material Law Changes”), the parties agree to meet and confer to evaluate possible alternative license fee payment structures and/or amounts to take into account the possible negative impacts such Material Law Changes are projected to have on CV Cardroom Gross Gaming Revenues. The parties will use their best efforts to negotiate a new agreement prior to the effective date of the Material Law Changes. Any such agreement shall be subject to City Council approval in its sole discretion. Notwithstanding the foregoing, if the parties are unable to negotiate a new agreement prior to the effective date of the Material Law Changes, the City Manager in consultation with the Director of Finance may, in the City Manager’s sole discretion, negotiate, approve, and implement an interim license fee valid from the effective date of Material Law Changes until the date of City Council’s approval of a revised license fee or six months, whichever is sooner. Operator shall not owe any License Fee to City on a pro rata basis for the timeframe when CV Cardroom is legally prohibited from operating and ceases to operate any gaming tables. 3.6 Possible Adjustments Based Upon Force Majeure Events. If there is a state of emergency, pandemic, or other natural disaster that inhibits the Operator’s ability to be open for business or otherwise make the payments required by this Section 3 (“Force Majeure Event”), the Operator may request the City, by sending a written to the City Manager, allow for an alternate timeline or payment structure for the duration of the Force Majeure Event. The City Manager shall have the sole and absolute discretion to determine whether or not to grant the request and the terms of the temporary modification. Operator shall not owe any Per Table License Fee to City on a pro rata basis for the timeframe when CV Cardroom cannot operate due to a Force Majeure Event, and is therefore closed and not receiving any revenue. 4. Vested Operating Term. 4.1 In consideration for Operator’s commitments under Section 2 hereof, Operator shall have the right to operate a card room in the City for a period of one year (the “Vested Operating Term”). The Vested Operating Term shall commence on the Effective Date and shall expire on April 14, 2026. If there is no Material Law Change during the Vested Operating Term, then the Vested Operating Term shall automatically extend for up to four one-year extension terms as long as there remains no Material Law Change during each one-year extension. If a Material Law Change occurs during the Vested Operating Term, there shall be no automatic extensions of the Vested Operating Term; instead the City shall have the option in its sole discretion to extend the Agreement for up to four additional one- year terms. Notwithstanding the foregoing, all other City rights and remedies under Page 55 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 5 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. Applicable Local Law and any permits issued thereunder, shall remain in full force and effect during the Vested Operating Term and any and all extension terms. 4.2 Operator rights under this Section 4 are expressly conditioned upon (a) owning and maintaining its License in good standing; (b) remaining in full compliance with any and all applicable federal, state, and local laws, regulations, and permits; and (c) remaining in full compliance with the terms of Applicable Local Law, and the terms and conditions of this Agreement. 5. Indemnity, Waiver, and Release. 5.1 Indemnity. 5.1.1 To the maximum extent allowed by law, Operator agrees to protect, defend, indemnify and hold harmless City and its officers, agents, employees, attorneys, elected and appointed officials, including their respective successors and assigns (collectively, “Indemnified Parties”), from and against any and all losses, liabilities, costs, charges or fees (including reasonable attorneys’ fees and court costs) arising from any legal challenges to (1) the issuance of any cardroom license to Operator, (2) City’s adoption of Applicable Local Law, or (3) the legal validity of any provision of Applicable Local Law or this Agreement; excluding, however, any such legal challenge initiated or directed by one or more Indemnified Parties. Any defense provided hereunder shall be with legal counsel of City’s choice, subject to Operator’s reasonable approval. The provisions of this Section 5.1 shall survive the termination of this Agreement, but shall be effective only as to those legal challenges which are made during the term of this Agreement. 5.2 Release. Operator hereby releases, acquits and forever discharges City and its officers, agents, employees, attorneys, elected and appointed officials, including their respective successors and assigns, from any and all claims, rights, demands, actions, obligations, and causes of action (collectively, “Claims”) arising out of or related to the City’s adoption of Applicable Local Law, and the legal validity of each and every provision of this Agreement and Applicable Local Law as applied to Operator, whether any such Claim is known or unknown, that Operator may now have or has ever had, against the City, including, without limitation, any and all Claims for damages, declaratory or injunctive relief or attorney’s fees related thereto. It is understood and agreed that this is a full and final release applying not only to all Claims defined above that are presently known, anticipated or disclosed, but also as to all claims as defined above that are presently unknown, unanticipated, and undisclosed in any way, and all rights or benefits that Operator may now have, or may have in the future With respect to all releases and waivers made by Operator under or pursuant to this Agreement, Operator hereby waives the application and benefits of California Civil Code § 1542 and hereby verifies that it has read and understand the following provision of California Civil Code § 1542: Page 56 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 6 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” Operator’s Initials: ______________ This release shall not apply to claims which Operator may have that have arisen due to the building permit/conditional use permit processes of the City by which Operator has applied in Chula Vista. 5.3. Survival. Operator’s obligations under this Section 5 shall survive the termination of this Agreement. 6. Default and Remedies. 6.1 In General. Failure by either party to perform any of its obligations as provided in this Agreement shall constitute an event of default under this Agreement. The non - defaulting party shall give written notice of a default to the defaulting party, specifying the nature of the default and the action required to cure the default. If the default remains uncured for twenty (20) days after the date of such notice it shall be deemed an “uncured default” and the non-defaulting party may pursue the remedies ascribed thereto, as provided below. In the case of a default which cannot reasonably be cured within 20 days, a party's failure to perform shall not constitute a default hereunder provided the party undertakes to cure the failure promptly, and in any event within twenty days, and diligently and continuously attempts to complete the cure as soon as reasonably possible. 6.2 Exclusive Remedies. 6.2.1 In the event of an uncured default by City, Operator’s sole remedy shall be for specific performance, injunction, or other equitable relief. Operator acknowledges that City would not have entered into this Agreement if City could become liable for monetary damages with respect to this Agreement. Consequently, City shall have no liability for monetary damages for the breach of this Agreement to Operator or any third party; provided, however, if Operator is the prevailing party in any action for specific performance, injunction or other equitable relief, Operator may be entitled to attorneys’ fees as provided in Section 9.1, below. The above proscription against Operator being awarded monetary damages shall not apply in the case where Operator proves that City unlawfully exercised its police powers in the regulation of the operation of the cardroom under the Applicable Local Law. 6.2.2 In the event of an uncured default by Operator, City shall have all remedies available at law or in equity, including termination of this Agreement, specific performance and monetary damages. 7. Representation by Legal Counsel. Operator and its principals acknowledge and agree Page 57 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 7 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. that they have been represented by legal counsel in the preparation of this Agreement; that they have read the agreement; that they are fully aware of its contents and of its legal effect; that al l agreements and understandings between the parties to the Agreement are embodied and expressed herein; that they enter into this Agreement freely, without coercion, and based on the parties’ own judgment and not in reliance on any representations or promises made by the City or any party; and that the parties exercising this agreement on behalf of Operator and its principals are fully authorized to do so without any further action by any other party or any governing board. 8. Assignment. Operator shall not assign this Agreement or any of its rights or remedies, in whole or in part, without the prior written consent of the City in each instance, which may be withheld by the City in its sole discretion. For purposes of this Agreement, any transfer by Operator of any interest in the License, or in itself, shall constitute an assignment of this Agreement requiring City approval. Any assignment attempted by Operator of its rights under this Agreement without City’s prior written consent shall be void ab initio. 9. General Provisions. 9.1 Attorneys’ Fees. If any action at law or in equity is brought to enforce, defend or interpret any provisions of this Agreement by any party hereto, the prevailing party shall be entitled to recover all reasonable costs and expenses relating thereto, including, without limitation, reasonable attorneys’ fees, in addition to any other relief to which that party may be entitled, subject to the limitations provided in Section 6.2 hereof. 9.2 Authority. Each party signing this agreement represents and warrants that he/she/it has full and legal power and authority to do so, without any further action or approval by any other party, 9.3 Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and any and all other verbal or written agreements with respect to same are hereby superseded. Any amendment hereto must be in writing and executed by all parties. 9.4 Further Assurances. The parties agree to perform such further acts and to execute such further documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the parties. 9.5 Inconsistency. The agreements, terms, and conditions contained in this Agreement are in addition to, not in lieu of, the terms and conditions contained in Applicable Local Law and any permit issued thereunder. To the extent of any inconsistency between the terms of this Agreement and Applicable Local Law or any permit issued thereunder, the terms of this Agreement shall govern. 9.6 Headings. The headings of the Sections hereof are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement. Page 58 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 8 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. 9.7 Notice. Any and all notices pertaining to this Agreement shall be in writing and delivered to the parties hereto by personal delivery via courier service or express mail, or by certified mail, postage pre-paid, at the addresses set forth above. All notices shall be deemed given: (a) if sent by certified mail, three days after deposited in the mail, certified and postage pre-paid; and (b) if delivered by hand, courier service, or express mail, when delivered. Notices shall be addressed to the parties as follows: If to Operator: Masis A. Kevorkian 7727 Herschel Ave. La Jolla, CA 92037 With a Copy To: Heather U. Guerena 7727 Herschel Ave. La Jolla, CA 92037 If to City of Chula Vista: City of Chula Vista Attn: City Manager 276 Fourth Avenue Chula Vista, CA 91910 With a copy to: City Attorney 276 Fourth Avenue Chula Vista, CA 91910 9.8 No Waiver. A failure by the City to strictly enforce its rights hereunder this Agreement in any instance shall not be deemed to be a waiver of any rights hereunder. No delay in exercising any right, power or privilege hereunder or under any applicable law or contract shall operate as a waiver thereof. No waiver shall affect any default other than the default specified in the waiver, and said waiver, and said waiver shall be operative as to the time and only to the extent therein stated. 9.9 No Partnership or Joint Venture. Nothing contained herein or inferred herein shall be deemed or construed to create any partnership, joint venture, or other association by or between City and Operator. Neither City nor any agent of the City at any time has agreed or consented to direct or participate in any of the investments, business dealings, planning, or operation of Operator in any capacity. Page 59 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 9 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. 9.10 Time of Essence. Time is of the essence of this Agreement and each of the covenants or conditions that is to be performed at a particular time or within a particular time. 9.11 Counterparts and Electronic Signatures. This Agreement may be executed in multiple counterparts, which together shall constitute one full and final agreement. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this Amendment 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. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. CITY: OPERATOR: City of Chula Vista Stones South Bay Corp ________________________________ By: ________________________ Maria V. Kachadoorian, Ryan E. Stone, City Manager President Approved as to Form: ______________________ By: ______________________ Marco A. Verdugo Heather U. Guerena City Attorney Vice President and General Counsel Page 60 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 10 of 10 City of Chula Vista Agreement No.: 2025-069 Operator Name: Stones South Bay Corp. ACKNOWLEDGEMENT AND AGREEMENT BY HOLDERS OF FINANCIAL INTERESTS IN THE LICENSE HELD BY OPERATOR For purposes of this Agreement, as of the Effective Date, the undersigned each acknowledge and agree as follows: (a) Under the terms of Applicable Local Law, it/he/she is a holder of a financial interest in the License owned by Operator pursuant to which Operator plans to operate a card room facility at 271 and 285 Bay Boulevard, Chula Vista, California. (b) As a necessary inducement for City to enter into this Agreement, it/he/she, agrees to abide by any and all provisions of Applicable Local Law, and acknowledges and agrees that each and every provision of Applicable Local Law is valid and enforceable by the City with respect thereto. (c) In the event Operator proposes to assign its rights under the Agreement to one or more of the undersigned, and City approves such assignment in its sole discretion, it/he/she will be fully bound, jointly and severally, by each and every provision of the Agreement. UPDATED INFORMATION AND SIGNATURE LINES TO BE INSERTED Page 61 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda v . 0 0 5 P a g e | 1 April 1, 2025 ITEM TITLE Measure P Citizens Oversight Committee: Amend the Municipal Code Related to Measure P Citizens Oversight Committee Terms, Ratify the Changes to Member Terms, and Accept the Revised Local Appointments List Report Number: 25-0050 Location: No specific geographic location Department: City Manager/City Clerk G.C. § 84308 Regulations Apply: 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 A) Place an ordinance on first reading amending Chula Vista Municipal Code section 2.61.070 related to the terms of the Measure P Citizens Oversight Committee members; B) Adopt a resolution ratifying changes to seated members’ terms; and C) Adopt a resolution accepting the revised Local Appointments List for board, commission, and committee terms expiring in calendar year 2025. SUMMARY In 2016, the Measure P Citizens Oversight Committee (COC) was established to oversee the 10-year duration of the original transactions and use tax, with all members’ terms set to expire in the same year. With Measure P extended by voters in 2024, the COC’s work must continue. Unlike other Chula Vista boards and commissions, whose members’ terms expire in staggered years as required by the Charter, the Measure P COC requires an amendment to align its terms with this structure. Adoption of the proposed ordinance will amend the Municipal Code to establish staggered terms for both current and future COC members. Adopting Resolution B, ratifying the changes to seated members' terms, will implement the staggered terms for current members. Additionally, the adoption of Resolution C is the City Council’s acceptance of the revised 2025 Local Appointments List to reflect the updated list of terms expiring in 2025. Page 62 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 2 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that this activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION At the January 23, 2025 meeting, the Measure P Citizens Oversight Committee voted 5-0 to recommend the City Council adjust the term dates for seated COC members due to Measure P's extension and the continued necessity for the Committee to meet. The COC was presented with the City Clerk’s proposed term reassignments as presented in this report. DISCUSSION The Measure P Citizens’ Oversight Committee (COC) was established in 2016 to oversee the 10-year duration of the original transactions and use tax. The ordinance implementing Measure P set the initial terms for committee members to expire on June 30, 2021 (CVMC 2.61.070(A)), which resulted in all members’ subsequent terms expiring in the same year, 2025. Unlike other Chula Vista boards and commissions, which have staggered terms with members’ terms ending over a four-year cycle, the COC’s terms were not staggered. Typically, one to three members’ terms expire each year, with the City Clerk facilitating the process of determining initial terms for all members of a new board or commission in accordance with Charter section 602(B). Charter Sec. 602(B). “Initial Classification of Appointees. The members appointed to such boards and commissions shall so classify themselves by lot so that the first day of July of every year, the term of one of their number shall expire. If the total number of members of such body to be appointed exceeds four, the classification by lot shall provide for the grouping of terms to such an extent as is necessary in order that the term of at least one member shall expire on the first day of July of every year.” As voters approved the extension of Measure P for another 10 years in 2024, the COC’s work must continue. To prevent an abrupt change from multiple members' terms expiring in the same year, staff recommends adjusting the term dates for the currently seated COC members. Proposed Adjustments: The City Clerk has proposed the following term reassignments based on the Charter’s process , while minimizing disruption for the COC and its members: Committee Member Appointment Date Current Term Ends Proposed Term End Eligible For Another Term Member Garcias March 2017 2025 2025 No Member Freels March 2017 2025 2025 No Member Redo March 2017 2025 2025 No Member Martinez December 2018 2025 2026 No Member Enriquez April 2021 2025 2026 Yes Page 63 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 3 Committee Member Appointment Date Current Term Ends Proposed Term End Eligible For Another Term Member Illyas April 2021 2025 2027 Yes Member Clark September 2024 2025 2027 Yes Member Korgan September 2024 2025 2028 Yes Member Rahimzadeh September 2024 2025 2028 Yes Recommendation: Staff recommends that the City Council: 1. Adopt the ordinance related to COC members’ terms. 2. Adopt a resolution ratifying the term changes specified above to implement staggered term dates for the seated COC members. 3. Adopt a resolution accepting the revised 2025 Local Appointments List. 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 Councilmembers do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmembers , 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 There is no ongoing fiscal impact as a result of this action. ATTACHMENTS 1. Municipal Code Revisions in Redline 2. Revised 2025 Local Appointments List Staff Contact: Courtney Chase, Deputy City Manager Kerry Bigelow, City Clerk Page 64 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda C:\Program Files\eSCRIBE\TEMP\16344347317\16344347317,,,Ordinance A - Revising CVMC on COC Member Terms.docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.61.070 RELATED TO MEASURE P CITIZENS OVERSIGHT COMMITTEE TERMS WHEREAS, the Measure P Citizens’ Oversight Committee (COC) was established in 2016 to oversee the 10-year duration of the original transactions and use tax; and WHEREAS, Ordinance No. 3394 was adopted on December 13, 2016, implementing the COC and setting the initial terms for committee members to expire on June 30, 2021, which resulted in all members’ terms expiring in the same year; and WHEREAS, voters approved the extension of Measure P for another 10 years in 2024, requiring the COC to continue its work; and WHEREAS, to prevent an abrupt change from multiple members' terms expiring in the same year, the City Council desires to amend the terms of seated COC members so that terms are staggered over a four-year cycle, in alignment with the staggered term structure of all other Chula Vista boards and commissions, as outlined in Charter Section 602(B). NOW, THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Section 2.61.070 of the Chula Vista Municipal Code is hereby amended to read as follows: 2.61.070 Terms. A. In General. Terms for COC members shall be determined in accordance with the City Charter and CVMC Chapter 2.25. [Subsection B remains unchanged] 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 Page 65 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Ordinance Page 2 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 Kerry K. Bigelow, MMC Marco A. Verdugo City Clerk City Attorney Page 66 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CHANGES TO SEATED MEASURE P CITIZENS OVERSIGHT COMMITTEE MEMBERS’ TERMS WHEREAS, the Measure P Citizens’ Oversight Committee (COC) was established in 2016 to oversee the 10-year duration of the original transactions and use tax; and WHEREAS, Ordinance No. 3394 was adopted on December 13, 2016, implementing the COC and setting the initial terms for committee members to expire on June 30, 2021, which resulted in all members’ terms expiring in the same year; and WHEREAS, voters approved the extension of Measure P for another 10 years in 2024, requiring the COC to continue its work; and WHEREAS, to prevent an abrupt change from multiple members' terms expiring in the same year the City Council desires to amend the terms of seated COC members’ so that terms are staggered over a four-year cycle, in alignment with the staggered term structure of all other Chula Vista boards and commissions, as outlined in Charter Section 602(B); and WHEREAS, the City Clerk has proposed the following term reassignments based on the Charter’s process, while minimizing disruption for the COC and its members: Committee Member Appointment Date Current Term Ends Proposed Term End Member Garcias March 2017 2025 2025 Member Freels March 2017 2025 2025 Member Redo March 2017 2025 2025 Member Martinez December 2018 2025 2026 Member Enriquez April 2021 2025 2026 Member Illyas April 2021 2025 2027 Member Clark September 2024 2025 2027 Member Korgan September 2024 2025 2028 Member Rahimzadeh September 2024 2025 2028 ; and WHEREAS, at the January 23, 2025 meeting, the Measure P Citizens Oversight Committee voted 5-0 to recommend the City Council adjust the term dates for seated COC members due to Measure P's extension and the continued necessity for the COC to meet. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it ratifies the changes to the seated Measure P Citizens Oversight Committee members’ terms as proposed by the City Clerk. Page 67 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Resolution No. Page 2 Presented by Approved as to form by Kerry K. Bigelow, MMC Marco A. Verdugo City Clerk City Attorney Page 68 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE REVISED 2025 LOCAL APPOINTMENTS LIST FOR BOARD, COMMISSION, AND COMMITTEE TERMS EXPIRING IN CALENDAR YEAR 2025 WHEREAS, the Maddy Act (California Government Code section 54970, et seq.) requires a “Local Appointments List,” containing information about all boards, commissions, and committees appointed by the City Council, as well as all board, commission, and committee terms expiring in the following calendar year, be prepared by December 31 of each year and made available to the public; and WHEREAS, the City Council adopted Resolution No. 2024-221 on December 3, 2024 accepting the 2025 Local Appointments List; and WHEREAS, the City Council adopted Resolution No. 2025-_(to be determined)_, which changed the term dates of some members of the Measure P Citizens Oversight Committee; and WHEREAS, the City Clerk has prepared a revised 2025 Local Appointments List, attached hereto as Exhibit 1, in accordance with the Maddy Act, which reflects the updates for the Measure P Citizens Oversight Committee terms. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it accepts the revised 2025 Local Appointments List (Exhibit 1) and directs the City Clerk to post the list and make it available to the public, in accordance with best practices and as required by the Maddy Act. Presented by Approved as to form by Kerry K. Bigelow, MMC Marco A. Verdugo City Clerk City Attorney Page 69 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Chula Vista Municipal Code Chapter 2.61“MEASURE P” CITIZENS’ OVERSIGHT COMMITTEE 2.61.070 Terms. A. In General. Terms for COC members shall be four years, with a maximum tenure of two consecutive four-year termsdetermined in accordance with the City Charter and CVMC Chapter 2.25. The initial COC members shall be appointed by no later than April 1, 2017. Initial terms shall commence upon assumption of office and shall expire on June 30, 2021. [Subsection B remains unchanged] Page 70 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 1 of 12 City of Chula Vista Boards and Commissions Local Appointment List Terms Expiring on June 30, 2025 Except as provided in the City of Chula Vista Charter Article VI, section 602(D) and Chula Vista Municipal Code (CVMC) Title 2, candidates must be residents of Chula Vista and at least 18 years of age. Name Appointment Criteria Appointment Date Board of Appeals and Advisors Vacant – Doria, Jose Shall be qualified by training and experience to pass on matters pertaining to building construction, including applicable building codes, regulations, and ordinances. 06/20/17 Board of Ethics Gersten, William No person shall be appointed as a member of the Board of Ethics or shall be entitled to retain their membership if he or she, within the past 10 years prior to the date of appointment, has been convicted of any felony or a crime involving moral turpitude, has been found to have committed a criminal violation of the Fair Political Practices Act, or has a conflict of interest as defined in CVMC § 2.28.050(C). 09/27/22 Board of Library Trustees Vacant – Clark, James (Standard qualifications only) 03/07/23 Vacant – Youth Advisory Member Must be a resident of the City of Chula Vista and between 16 and 22 years of age. No Previous Appointment Charter Review Commission Buddingh, Jan (Standard qualifications only) 07/24/18 Hopida, Edgar 08/15/17 Inzunza, Michael 10/20/20 Civil Service Commission Carbuccia, Jennifer (Standard qualifications only) 02/04/16 Strong, Andrew 04/18/23 Page 71 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 2 of 12 Cultural Arts Commission Jing, Sanja Must be a resident of the City of Chula Vista and between 16 and 22 years of age. 10/08/2024 Sablan, Felix Shall be appointed from among artists, educators, and those with professional qualifications and experience in disciplines of arts and culture, including the performing arts, fine arts, culinary arts, media arts or related arts disciplines. 07/16/24 Health, Wellness, and Aging Commission Montano, Monica Must have expertise and experience in at least one of the focus areas of the Healthy Chula Vista Action Plan or the Age-Friendly Action Plan: land use, transportation, nutrition, health care, physical activity, environment, and/or older adults 03/01/22 Murphy, Morgan Must be a resident of the City of Chula Vista and between 16 and 22 years of age. 07/16/2024 Orozco-Valdivia, Barbara Must have expertise and experience in at least one of the focus areas of the Healthy Chula Vista Action Plan or the Age-Friendly Action Plan: land use, transportation, nutrition, health care, physical activity, environment, and/or older adults 01/05/21 Housing and Homelessness Advisory Commission Cabral, Anna (Standard qualifications only) 08/15/17 Merino, James Must have expertise and experience in at least one of the following fields: lending, urban planning, real estate development, and real estate brokerage. 08/16/16 Robinson Opeodu, Vikki 12/14/21 Human Relations Commission Gomez, Christian Must be a resident of the City of Chula Vista and between 16 and 22 years of age. In addition to being: 1) representative of the diversity of the city; 2) specifically chosen to reflect the interests and concern with the protection of civil liberties of all people who make up the City’s residents; 3) committed to fostering better human relations in the City of Chula Vista; and 4) associated with the business and/or civic activities of the city. 05/16/23 Hecklinski, Tiffany District 2 Representative - Must reside in the City Council district they wish to represent and shall maintain their residency in their respective City Council district for the duration of their terms. In addition to being: 1) representative of the diversity of the city; 2) specifically chosen to reflect the interests and concern with the protection of civil liberties of all people who make up the City’s residents; 3) committed to fostering better human relations in the City of Chula Vista; and 4) associated with the business and/or civic activities of the city. 04/23/24 Olaoye, Mopelola District 3 Representative - Must reside in the City Council district they wish to represent and shall maintain their residency in their respective City Council district for the duration of their terms. In addition to being: 1) representative of the diversity of the city; 2) specifically chosen to reflect the interests and concern with the protection of civil liberties of all people who make up 07/27/21 Page 72 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 3 of 12 the City’s residents; 3) committed to fostering better human relations in the City of Chula Vista; and 4) associated with the business and/or civic activities of the city. Measure A Citizens' Oversight Committee Becotte, Paul District 3 Representative - Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 05/11/21 Cruz, Lea District 2 Representative - Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 11/01/22 Roberts, Darrell Chula Vista International Association of Fire Fighters Representative - Must be an active member of the association. 09/20/18 Vacant – Rivera, Frank Chula Vista Mid-Managers Professional Employees Representative - Must be an active member of the association. 05/11/21 Measure P Citizens' Oversight Committee Clark, David District 4 Representative - Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 09/10/24 Enriquez, Nicole Parks and Recreation Commission Representative - Must be a member of the specified commission. 04/13/21 Freels, Mona (Standard qualifications only) 03/02/17 Garcias, David San Diego & Imperial Counties Labor Council Representative - Must be an active member of the association. 03/02/17 Ilyas, Saad District 3 Representative - Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 04/13/21 Korgan, Christos Sustainability Commission Representative - Must be a member of the specified commission. 09/10/24 Martinez, Greg District 1 Representative - Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 11/28/18 Rahimzadeh, Sassan Chula Vista Chamber of Commerce Representative - Must be an active member and have expertise and experience in at least one of the following areas: accounting, finance, engineering, or a related discipline (including construction). 09/10/24 Redo, Christopher District Repre2 Representative - Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 03/02/17 Parks and Recreation Commission Wellborn III, Johnnie Must be a resident of the City of Chula Vista and between 16 and 22 years of age. 10/08/2024 Page 73 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 4 of 12 Zarem, John District 1 Representative - Must reside in the City Council district they wish to represent and maintain their district residency throughout their tenure. 06/28/17 Planning Commission Burroughs, Krista (Standard qualifications only) 06/28/17 Combs, Jim Should be persons sensitive to design consideration and interested in townscape matters. Persons qualified for these seats should include architects, landscape architects, land planners, urban planners, civil engineers, and other design professionals with suitable experience. 09/20/22 Privacy Protection and Technology Advisory Commission Batson, Marlano District representatives are not required to reside in the corresponding district. Should have expertise and background in at least one of the following fields: 1. Information Technology and Data Security: Experience and/or expertise in cyber security and sensitive personal information management and protection. 2. Privacy Protection: Experience and/or academic or legal background related to individual privacy protection, open government principles and structures, and/or govt transparency. 3. Accounting and Finance: Experience and/or professional credentials in contracting, procurement, public auditing, control, compliance, and/or general oversight professional services. Public Safety: Experience and/or expertise in federal, state, or local government public safety functions and operations. 4. Equity and Civil Rights: Experience or legal background in advocacy for marginalized groups and communities who traditionally experienced privacy and civil rights concerns based on sex, gender, disability, socio-economic profile, national origin, culture, or ethnic background. 5. Equity and Civil Rights: Experience or legal background in advocacy for marginalized groups and communities who traditionally experienced privacy and civil rights concerns based on sex, gender, disability, socio-economic profile, national origin, culture, or ethnic background. The City Manager or designee with expertise in the fields described shall have the opportunity to review applications and provide input on the applicant’s qualifications, which shall be considered by the Mayor or City Councilmember before a nomination is made. Nonresidents may be appointed if they own and operate a business and/or property with a physical address in the City. Appointment of nonresident members requires a 4/5 vote. 01/09/24 Pulido, Richard 10/08/2024 Sustainability Commission Costello, Abigail Must be a resident of the City of Chula Vista and between 16 and 22 years of age. 02/13/2024 Knox, John (Standard qualifications only) 03/07/23 Korgan, Christos 07/09/19 Wu, David Must be a resident of the City of Chula Vista and between 16 and 22 years of age. 09/10/2024 Page 74 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 5 of 12 Traffic Safety Commission Flores, Ed (Standard qualifications only) 04/12/22 Luke, Arnold (Standard qualifications only) 04/26/22 Veterans Advisory Commission Castro, Francia (Standard qualifications only) 07/25/23 Pine, Lynne 12/07/21 Page 75 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 6 of 12 APPOINTMENT PROCESS AND QUALIFICATIONS BY SEAT City of Chula Vista Boards and Commissions Standard Qualifications: Except as provided in the City of Chula Vista Charter Article VI, section 602(D) and Chula Vista Municipal Code (CVMC) Title 2, candidates must be residents of Chula Vista and at least 18 years of age. *Appointment Process Key: A – General Appointment Process – CVMC 2.25.052(A) B – Full Council Interview Process – CVMC 2.53 C – District-Based Appointment Process – CVMC 2.25.052(C) D – Designated Member Appointment Process – CVMC 2.25.052(D) O – Other (defined in Municipal Code or governing document) Number of Members Seat Type Nominating Party/ Appointment Process* Additional Qualifications Board of Appeals and Advisors – 3 to 5 Voting Members (CVMC § 2.26.040) 3 to 5 Members At-Large Mayor/A Shall be qualified by training and experience to pass on matters pertaining to building construction, including applicable building codes, regulations, and ordinances. Board of Ethics – 7 Voting Members (CVMC § 2.28.050) 7 Members At-Large Panel of Members of Board of Ethics and Charter Review/ O No person shall be appointed as a member of the Board of Ethics or shall be entitled to retain their membership, if he or she, within the past 10 years prior to the date of appointment, has been convicted of any felony or a crime involving moral turpitude, has been found to have committed a criminal violation of the Fair Political Practices Act, or has a conflict of interest as defined in CVMC § 2.28.050(C). Board of Library Trustees – 5 Voting Members, 1 Non-Voting Member (Charter Sec. 605/CVMC § 2.45.040) 5 Members At-Large Mayor/A (Standard qualifications only) 1 Member Youth Member (non-voting) Mayor/A Must be a resident of the City of Chula Vista and between 16 and 22 years of age. Charter Review Commission – 7 Voting Members (CVMC § 2.29.040) 7 Members At-Large Mayor/A (Standard qualifications only) Page 76 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 7 of 12 Number of Members Seat Type Nominating Party/ Appointment Process* Additional Qualifications Civil Service Commission – 5 Voting Members (Charter Sec 606/CVMC § 2.43.040) 2 Members At-Large Mayor/A (Standard qualifications only) 1 Member Nomination by Commission Civil Service Commission/O 2 Members Nom by Classified Employees Classified Employees/O Cultural Arts Commission – 9 Voting Members, 1 Non-Voting Member (CVMC § 2.33.040) 3 Members At-Large Mayor/A Must demonstrate competence, knowledge, and experience in cultural arts 6 Members Arts Professional Mayor/A Shall be appointed from among artists, educators, and those with professional qualifications and experience in disciplines of arts and culture, including the performing arts, fine arts, culinary arts, media arts or related arts disciplines. 1 Member Youth Member (non-voting) Mayor/A Must be a resident of the City of Chula Vista and between 16 and 22 years of age. Health, Wellness, and Aging Commission – 9 Voting Members, 1 Non-Voting Member (CVMC § 2.47.040) 1 Member District 1 Representative District 1 Councilmember/C Must reside in the City Council district they wish to represent and shall maintain their residency in their respective City Council district for the duration of their terms. 1 Member District 2 Representative District 2 Councilmember/C 1 Member District 3 Representative District 3 Councilmember/C 1 Member District 4 Representative District 4 Councilmember/C 5 Members Expert Representatives Mayor/A Must have expertise and experience in at least one of the focus areas of the Healthy Chula Vista Action Plan or the Age-Friendly Action Plan: land use, transportation, nutrition, health care, physical activity, environment, and/or older adults 1 Member Youth Member (non-voting) Mayor/A Must be a resident of the City of Chula Vista and between 16 and 22 years of age. Housing and Homelessness Advisory Commission– 7 Voting Members, 2 Non-Voting Members (CVMC § 2.35.040) 2 Members At-Large Mayor/A (Standard qualifications only) 3 Members Expert Representatives Mayor/A Must have expertise and experience in at least one of the following fields: lending, urban planning, real estate development, and real estate brokerage. 1 Member Tenant Rep (62 years or older) Mayor/A Must be appointed as representatives of tenants of the Housing Authority, and must, at the time of their appointments and throughout their terms, reside in assisted housing or receive Section 8 rental housing assistance from the Housing Authority; one of these two members shall be 62 years of age or older. 1 Member Tenant Representative Mayor/A 2 Members Ex-Officio (non-voting) Mayor/A (Standard qualifications only; residency in Chula Vista not required) Human Relations Commission – 11 Voting Members, 1 Non-Voting Member (CVMC § 2.36.040) Page 77 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 8 of 12 Number of Members Seat Type Nominating Party/ Appointment Process* Additional Qualifications 2 Members District 1 Representative District 1 Councilmember/C Must reside in the City Council district they wish to represent and shall maintain their residency in their respective City Council district for the duration of their terms. In addition to being: 1) representative of the diversity of the city; 2) specifically chosen to reflect the interests and concern with the protection of civil liberties of all people who make up the City’s residents; 3) committed to fostering better human relations in the City of Chula Vista; and 4) associated with the business and/or civic activities of the city. 2 Members District 2 Representative District 2 Councilmember/C 2 Members District 3 Representative District 3 Councilmember/C 2 Members District 4 Representative District 4 Councilmember/C 4 Members At-Large Mayor/A Must be: 1) representative of the diversity of the city; 2) specifically chosen to reflect the interests and concern with the protection of civil liberties of all people who make up the City’s residents; 3) committed to fostering better human relations in the City of Chula Vista; and 4) associated with the business and/or civic activities of the city. 1 Member Youth Member (non-voting) Mayor/A Must be a resident of the City of Chula Vista and between 16 and 22 years of age. In addition to being: 1) representative of the diversity of the city; 2) specifically chosen to reflect the interests and concern with the protection of civil liberties of all people who make up the City’s residents; 3) committed to fostering better human relations in the City of Chula Vista; and 4) associated with the business and/or civic activities of the city. Measure A Citizens' Oversight Committee – 11 Voting Members (CVMC § 2.63.050) 1 Member District 1 Representative District 1 Councilmember/C Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 1 Member District 2 Representative District 2 Councilmember/C 1 Member District 3 Representative District 3 Councilmember/C 1 Member District 4 Representative District 4 Councilmember/C 1 Member Police Chief Representative Police Chief/D (Standard qualifications only) 1 Member Fire Chief Representative Fire Chief/D 1 Member CV Mid-Managers Professional Employees (MM/PROF) Rep MM/PROF/D Must be an active member of the association. 1 Member CV Police Officers Association (POA) Representative POA/D 1 Member CV International Association of Fire Fighters (IAFF) Rep IAFF/D 1 Member Association of Chula Vista Employees (ACE) Representative ACE/D 1 Member Chamber of Commerce Rep Chamber of Commerce/D Measure P Citizens' Oversight Committee – 9 Voting Members (CVMC § 2.61.050) Page 78 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 9 of 12 Number of Members Seat Type Nominating Party/ Appointment Process* Additional Qualifications 1 Member District 1 Representative District 1 Councilmember/C Must reside in the City Council district they wish to represent and must maintain their district residency throughout their tenure. 1 Member District 2 Representative District 2 Councilmember/C 1 Member District 3 Representative District 3 Councilmember/C 1 Member District 4 Representative District 4 Councilmember/C 1 Member At-Large Mayor/A (Standard qualifications only) 4 Members (Representatives rotate through the six nominating authorities) Parks & Recreation Comm Rep Parks & Recreation Comm/D Must be a member of the specified commission. Sustainability Commission Rep Sustainability Commission/D San Diego & Imperial Counties Labor Council Representative San Diego & Imperial Counties Labor Council/D Must be an active member of the association. Alliance of Californians for Community Empowerment Rep Alliance of Californians for Community Emp/D CV Chamber of Commerce Rep Chamber of Commerce/D Must be an active member and have expertise and experience in at least one of the following areas: accounting, finance, engineering, or a related discipline (including construction). SD Taxpayers Association Rep SD Taxpayers Association/D Parks and Recreation Commission – 7 Voting Members, 1 Non-Voting Member (Charter Sec 607/CVMC § 2.41.040) 3 Members At-Large Mayor/A (Standard qualifications only) 1 Member District 1 Representative District 1 Councilmember/C Must reside in the City Council district they wish to represent and maintain their district residency throughout their tenure. 1 Member District 2 Representative District 2 Councilmember/C 1 Member District 3 Representative District 3 Councilmember/C 1 Member District 4 Representative District 4 Councilmember/C 1 Member Youth Member (non-voting) Mayor/A Must be a City of Chula Vista resident between 16 and 22 years of age. Planning Commission – 7 Voting Members (Charter Sec 604/CVMC § 2.42.030) 4 Members At-Large Full Council/B (Standard qualifications only) 3 Members Qualified Professionals Full Council/B Should be persons sensitive to design consideration and interested in townscape matters. Persons qualified for these seats should include architects, landscape architects, land planners, urban planners, civil engineers, and other design professionals with suitable experience. Privacy Protection and Technology Advisory Commission – 7 Voting Members, 1 Non-Voting Member (CVMC § 2.65.050) Page 79 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 10 of 12 Number of Members Seat Type Nominating Party/ Appointment Process* Additional Qualifications 3 Members At-Large Mayor/A District representatives are not required to reside in the corresponding district. Should have expertise and background in at least one of the following fields: 6. Information Technology and Data Security: Experience and/or expertise in cyber security and sensitive personal information management and protection. 7. Privacy Protection: Experience and/or academic or legal background related to individual privacy protection, open government principles and structures, and/or govt transparency. 8. Accounting and Finance: Experience and/or professional credentials in contracting, procurement, public auditing, control, compliance, and/or general oversight professional services. 9. Public Safety: Experience and/or expertise in federal, state, or local government public safety functions and operations. 10. Equity and Civil Rights: Experience or legal background in advocacy for marginalized groups and communities who traditionally experienced privacy and civil rights concerns based on sex, gender, disability, socio-economic profile, national origin, culture, or ethnic background. The City Manager or designee with expertise in the fields described shall have the opportunity to review applications and provide input on the applicant’s qualifications, which shall be considered by the Mayor or City Councilmember before a nomination is made. Nonresidents may be appointed if they own and operate a business and/or property with a physical address in the City. Appointment of nonresident members requires a 4/5 vote. 1 Member District 1 Representative District 1 Councilmember/C 1 Member District 2 Representative District 2 Councilmember/C 1 Member District 3 Representative District 3 Councilmember/C 1 Member District 4 Representative District 4 Councilmember/C 1 Member Ex Officio (non-voting), nominated by City Manager City Manager/D Redistricting Commission – 7 Voting Members (Charter Sec. 903/CVMC § 2.51.050) 4 Members At-Large Charter Review Commission Selects a Pool of 10 Candidates; 4 Members are Selected by Random Drawing/O Must be a registered voter in the City of Chula Vista. Ineligible to apply for and serve on the Commission: (a) the Mayor, a Councilmember, any other elected City official, or a member of the City Charter Review Commission; (b) a relative by blood or marriage within the second degree, or any domestic partner within the meaning of California law (including Family Code section 297), of the Mayor, any Councilmember, or any other elected City official; (c) a person who, at any time within the four (4) years immediately preceding the date of their application for selection to the Commission, has served as the Mayor, a Councilmember, or an elected City official; (d) a current employee of the City or a current employee of any Page 80 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 11 of 12 Number of Members Seat Type Nominating Party/ Appointment Process* Additional Qualifications 3 Members At-Large Seated Redistricting Commission Members Select from the Remaining Pool of Candidates/O organization representing any employee bargaining unit for employees of the City; (e) a person who, at any time within the four (4) years immediately preceding the date of their application for selection to the Commission, has worked as a lobbyist. For purposes of this provision, the term “lobbyist” means a person who, for compensation, has direct communication with a City official, including the Mayor, a Councilmember, or any elected City official, for purposes of influencing a municipal decision; (f) a person who is currently an officer in any local political party organization, including, but not limited to, officers of a political party county central committee; and (g) a person who, at any time within the four (4) years immediately preceding the date of their application for selection to the Commission, has served as a paid campaign worker or paid campaign or political consultant for an elected City official. Sustainability Commission – 7 Voting Members, 2 Non-Voting Members (CVMC § 2.32.060) 7 Members At-Large Mayor/A (Standard qualifications only) 2 Members Youth Member (non-voting) Mayor/A Must be a resident of the City of Chula Vista and between 16 and 22 years of age. Traffic Safety Commission – 7 Voting Members (CVMC § 2.44.030) 7 Members At-Large Mayor/A (Standard qualifications only) Veterans Advisory Commission – 7 Voting Members (CVMC § 2.39.40) 7 Members At-Large Mayor/A (Standard qualifications only) Page 81 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rev 4/1/20259/30/2024 To apply for a position or for information on the specific duties of a board or commission, please visit our website at www.chulavistaca.gov/boards or contact the City Clerk, 276 Fourth Ave, Chula Vista, CA 91910, 619-691-5041. Page 12 of 12 Regional Boards Regional Boards are comprised of representatives from various San Diego cities and agencies. The Chula Vista City Council or City boards or commissions appoint one or more members to these boards; however, the city does not operate these boards. Wildlife Advisory Group – 4 Members Total (Resolution 2016-231) 1 Member Southwest Representative Mayor/A Resident south of L St and west of La Media/Otay Lakes Rd Must demonstrate involvement in one or more of the following areas: 1. Wildlife-related issues such as habitat restoration or wildlife management. 2. Ecology, biology, chemistry, water quality or watershed protection. 3. Ecosystem management and restoration. 4. Nature-based or environmental education and similar fields. 5. Wildlife rehabilitation and/or predator management. 1 Member Northwest Representative Mayor/A Resident north of L St. and west of La Media/Otay Lakes Rd 1 Member Southeast Representative Mayor/A Resident of area east of La Media/ Otay Lakes Rd 1 Member Sustainability Commission Rep Sustainability Commission/O Must be a member of the Sustainability Commission. Bayfront Cultural & Design Committee – 3 Members Total (Bayfront Settlement Agreement Section 13.1) 1 Member Planning Commission Rep Planning Commission/O Must be a member of the specified commission. 1 Member Planning Commission Rep Planning Commission/O 1 Member Sustainability Commission Rep Sustainability Commission/O Page 82 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda v . 0 0 5 P a g e | 1 April 1, 2025 ITEM TITLE Lease Agreement: Second Amendment to Lease Agreement with SBCS for City-Owned Property at 430 F Street Report Number: 25-0066 Location: 430 F Street Department: City Manager G.C. § 84308 Regulations Apply: 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 second amendment to the lease agreement between the City of Chula Vista and SBCS for City-owned property at 430 F Street. SUMMARY In June 2012, the City entered into a five-year lease with SBCS Corporation (SBCS), formerly South Bay Community Services, for a City-owned real property consisting of an office building and parking lot located at 430 F Street (Ken Lee Building). In 2017, the City Council approved a first amendment to the lease agreement extending the original term through June 2023 and providing for two additional 15-year options to extend giving the lease the ability to run until 2053. This item is a second amendment to the lease agreement with SBCS amending the term of the agreement. If approved, the lease agreement would terminate 45 days after SBCS receives their final Certificate of Occupancy for their building currently under construction at 318 Fourth Avenue or June 30, 2026, whichever is earlier. 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 Page 83 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 2 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 Not applicable. DISCUSSION In 2012, after having experienced a significant reduction in the need for office space required to conduct day- to-day operations, the City identified the Ken Lee Building, located at 430 F Street, as a site not needed for City operations in the near future. In order to offset the maintenance and utilities costs while still keeping open the option of re-occupying the space at a later date, City Council authorized the retention of a real estate broker to market the site. The City Council approved a Standard Industrial/Commercial Single-Tenant Lease (Lease Agreement) effective July 1, 2012 via Resolution 2012-108 for SBCS, formerly South Bay Community Services, to occupy the Ken Lee Building for an initial lease term of five-years, with two additional, three- year extensions. The lease contemplated utilization of 5,400 square feet at $4,860 per month. The Lease Agreement also included an annual Consumer Price Index (CPI) increase, capped at two percent per year. SBCS exercised its option for an additional five years in June 2017 and, at the time, expressed a desire to design and construct a modular building facility upon the premises. Due to the large capital expenditure involved, SBCS requested the term of their lease be extended beyond the Lease Agreement. In September 2019, the City Council approved an amendment to the Lease Agreement (Attachment 2) that amended the initial term of the lease to be 11 years, 2012-2023, and allowed for two additional 15-year extensions, through 2053. Future City Needs More than 10 years after the City entered into this Lease Agreement, the City’s population has grown significantly, and the complexity of resident needs has as well. Similarly, the City’s workforce has increased, which has led City staff to adapt their current office spaces to accommodate the growing needs. The City is now in need of moving operations into leased spaces like the Ken Lee Building, owned by the City. For this reason, City staff recommends amending the Lease Agreement with SBCS to modify their lease term. The Lease Agreement would terminate 45 days upon SBCS receiving their final Certificate of Occupancy (COO) for their building under construction at 318 Fourth Avenue or June 30, 2026, whichever is earlier. Additionally, and in accordance with the terms of the Lease Agreement, this amendment also clarifies rent due to the City with implementation of the appropriate CPI increases owed to the City over the term of the lease. Additionally, the proposed amendment also permits the City to utilize the parking facilities for public and/or City events outside of normal business hours and weekends as needed. Pending SBCS Agreement Page 84 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 3 Staff is considering a new agreement with SBCS for use of the southern portion of the property at 430 F Street. SBCS currently operates several trailers, which were donated to the City during the COVID-19 pandemic, to temporarily house program clients. 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 Approval of this item would increase lease rent to $5,990, generating an additional $890 a month, in lease rent for the General Fund beginning April 1, 2025. ONGOING FISCAL IMPACT Lease revenue will be incorporated into the City budget as part of the annual budget process. ATTACHMENTS 1. SBCS Lease Agreement (Original) 2. First Amendment to SBCS Lease Agreement 3. Second Amendment to SBCS Lease Agreement Staff Contact: Adrianna Relph, Special Projects & Legislative Manager, City Manager’s Office Page 85 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Form Rev 2/18/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE- TENANT LEASE-GROSS BETWEEN THE CITY AND SBCS CORPORATION WHEREAS, the City of Chula Vista (City) owns that certain real property consisting of Assessor’s Parcel Number 568-181-44, and located at 430 F Street (Property); and WHEREAS, in June 2012, the City entered into a lease agreement for the Property with SBCS Corporation, formally South Bay Community Services, for an initial five-year term with an option for a second five-year term (Lease); and WHEREAS, in September 2017, the City amended and extended the Lease through June 30, 2023 with two additional, 15-year options to extend; and WHEREAS, SBCS Corporation (SBCS) is currently constructing a new facility at 318 Fourth Avenue at the corner of Fourth Avenue and F Street; and WHEREAS, SBCS and the City desire to amend the Lease to extend the Lease to term until completion of construction of SBCS’s new facility at 318 Fourth Avenue or June 30, 2026 whichever is earlier, increase rent payments, and modify other terms of the Lease. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Second Amendment to Standard Industrial-Commercial Single-Tenant Lease- Gross between the City and SBCS, 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 Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney Page 86 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda IR COMMERCIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIALICOMMERCIAL SINGLE-TENANT LEASE --GROSS DO NOT USE THIS FORM FOR MULTI-TENANT BUILRINGS) 1. Basic Provisions ("Basic Provisions"). 1.1 Parties: This Lease ("Lease"), dated for reference purposes only .Tune 5, 20l ~ is made by and between ~'ity of Chula Vista, a municipal chartered corporati~an ~~f the State of La 1 i f u r n i a (" Lessor") and South Say Gonmtunity services Lessee"), collectively tfie "Parties," or individually a "Party"). t2 Premises: That certain real property.. including all improvements therein or to be provided by Lessor under the terms of this Leese, and commonly known as 9301 F Stzeat, Chula Vista heated In the County of:3an Diegr~ ,State of Califrarnia and generally described as (describe briefly the nature of the properly and, if applicable,. the "Project", if the property is located within a Project) approximate 5,400 SF neY_ usea>,le 1,3 Te[m: t ive (5) years and it Commencement Date") and ending June 30, 2017 Premises"). (See a{so Paragraph 2) months ("Original Term") commencing July 1 , 2l 12 Expiration Date"). See also Paragraph 3) 1.4 Early Possession: If the Premises are available Lessee may have non-exclusive possession of the Premises commencing June 1 ~, 2 G 1 L ("Early Possession Date"). (See also Paragraphs 3.2 and 3.3) 1.5 Base Rent: $ 4 , R L 0 . f~ 0 per month ("Base Rent"), payable on the first (1 °t) day of each month commencing July ly 2012 See also Paragraph 4) It this hox is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph 51 & 52 1.8 Base Rent and Other Monies Paid Upon Execution: a) Base Rent: $4r ~c0.00 for the period July 1, 2012 - J ulV 31, 2012 b) c) d) e) Total Due Upon Execution of this Lease: Sq, 72Q . 00 9.7 Agreed Use: General c,ffice and eounselinq services for SECS Frc,grams identified in the Addandurn to this Lease attached hereto. See also Paragraph fi) 1.8 Insuring Party: Lessor is the "Insuring Party". The annual "Base Premium" is St ~ be F~rovided (See also Paragraph 8) 1.9 Real Estate Brokers; (See also Paragraph 15 and 25) a) Representation: The following real estate brokers (the "Brokers") and brokerage relationships exist in this transaction (check applicable boxes)' QVoit Real Estate Services rapresentsLessorexdusively("Lessor'sBrokeC'); Lessee represents itself represents Lessee exclusively ("Lessee's Broker"); or represents both Lessor and Lessee ("Dual Agency"j. b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers for the brokerage services rendered by the Brokers the fee agreed to in the attached separate written agreement or if no such agreement is attached, the sum of 19 , 5 S 0 . i10 or °h of the total Base Rent payable for the Original Term, the sum of or 3 i of the total Base Rent payable during any period oT time that the Lessee occupies the Premises subsequent to the Original Term, andfor the sum of or 4 °!o of the purchase price in the event that the Lessee or anyone affiliated with Lessee acquires from Lessor any rights to the Premises. 1.10 Guarantor. The obligatfans of the Lessee under this Lease are to be guaranteed by N/A Guarantor"). (See also Paragraph 37) 1.11 Attachments. Attached hereto are the following, all of which constitute a part of this Lease: an Addendum consisting of Paragraphs ~ 1 through ? 9 , a plot plan depicting the Premises, Fshibit A a current se[ of the Rotes and Regulations; a Work Letter; D other (specify). Notice to c~kners, Huyers and tenants Segardinq Envirrlnmental Matters, Americans with Disabilities Aet, Fl:~c~d Disclosure, ZaninafUse C}isclosure and PAGE 1 OF t3 Security Deposit: $4 , 9 00.00 ("Security Deposit"). (See also Paragraph 5) Association Fees: SN /A for the period Other: 3N / A for INITIALS COMMERC{AL REAL ESTATE ASSOCIATION FORM STG-14-3t10E Page 87 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Premises. 2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should [he actual size be determined [o be different Note: lessee is advised to verify the actual size prior to executing this Lease. 22 Condition. Lessor shat) deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs ("Start Dete"}, and, so long as the required service contracts described in Paragraph 7-1(h) below are obtained by Lessee and in effect within thirty days following the Start Date, warcsnts that the existing electrical, plumbing., fire sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC"), loading doors. sump pumps, if any., and all other such elements in the Premises, other then those constructed by Lessee, shall he in good operating condition on said date and that the surface and structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the "Building"} shall be free of material defects, and that the Unit does not contain hazardous levels of any mold or fungi defined as toxic under applicable state or federal few. If anon-compliance with said warcanty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor shall, as Lessor's sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificky the nature and extent of such non-compliance, malfunction or failure, rectify same at Lessor's expense. The warranty periods shall be as follows; (iJ 24 § months as to the HVAC systems; and (ii} 1t3Q S9 days as to the remaining systems and other elements of the Building. If Lessee does not give Lessor the required notice within the appropriate warranty period, correction of any such norncompliance, malfunction or failure shall be the obligation of Lessee at Lessee's sole cost and expense, except for the roof; foundations, and bearing walls which are handled as provided in paragraph 7. 2.3 Compliance. Lessor warrants that to the hest of its knowledge the improvements on the Premises comply with the building codes, applicable laws, covenants or restrictions of record, regulations, and ordinances ("Applicable Requirements") that were in effect a[ the Time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 50), or to any Alterations or Utility Inssallations (as defined in Paragraph 7.3(a)j made or to be made by Lessee. NOTE: Lessee Is responsible for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee's intendetl use, and acknowledges that past uses of the Premises may no longer be allowed, If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided: promptly after receipt of written notice from Lessee setting forth with speGfidty the nature and extent of such non-compliance, rectify the same at Lessor's expense. If Lessee does not give Lessor written notice of anon-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee's sole cost and expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the Premises andtor Building, the remadiation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building ("Capital Expenditure"}, Lessor and Lessee shall alVocate the cost of such work as follows; a) Subject to Paragraph 23(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof.. provided, however that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee., in writing, within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the difference between the actual cost [hereof and an amount equal to 6 months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a ferminaHon date at keast 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure. b) if such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications}. then Lessor shall pay for such Capital Expenditure and Lessee shell only he obligated io pay, each month during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Renf is due., an amount equal to tl144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay ifs share thereof, Lessor shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor's termination notice that Lessee will pay for such Capital Expenditure, If Lessor does not elect to terminate, and fails to tender its share of any such Gapital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor's share of such costs have been toiky paid. If Lessee is unable to finance Lessor's share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shah have the right to terminate this Lease upon 30 days written notice to Lessor. c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use.. change in intensity of use, or modification to the Premises then, and in that event. Lessee shall either: (i) immediately cease such changed use or intensity of use andtor take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such Capital Expenditure at its own expense. Lessee shall not, however, have any right to terminate this Lease.. 2.4 Acknowledgements. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the siae and condition of the Premises (including but not limited to the electrical. HVAC and fire sprinkler systems, security; environmental aspects. and compliance wjth Applicable Requirements and the Americans with isahilities Act), and their suitability for Lessee's intended use. (c) Lessee has made such Investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d) it is not relying on any representatjon as to the size of the Premises made by Brokers or Lessor, (e} the square footage of the Premises was not malaria{ to Lessee's decision to lease the Premises and pay the Rent stated herein, and (f) neither Lessor, Lessor's agents; nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition.. Lessor acknowledges that {i} Brokers have made no representations. promises or warmnties conceming Lessee's ability to honor the Lease or suitability to occupy the Premises, and (ii) ii is Lessor's sole responsibility to investigate the financial capability andtor suitability of all proposed tenants. 2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work 3. Term. 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph t3. 3.2 Early Possession. Any provision herein granting Lessee Early Possession of the Premises is subject to and conditioned upon the premises being available for such possession prior to the Gommencemenf Dafe, Any grant of Early Possession only conveys anon-exclusive right to occupy the Premises. If Lessee totally ar partially occupies the Premises prior to the Commencement Date, the obligation fo pay Bese Rent shall be abated for the period of such Early Possessiaa. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall be in effect during such period. Any such Early Possession shall not affect the Expiration Dafe. 3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or change the Expiration Date, Lessee shall not, however,. be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shell run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof; but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 80 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed be Parties, Lessee may, at its option; by notice in writing within 10 days after the end of such 80 day period; cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such wrifen notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing. 3.4 Lessee Comphance. Lessor shall not be required to deliver possession of the Premises to Lessee until Lessee complies with its pbligation to provide evidence of insurance (Paragraph 6.5). Pending delivery of such evidence; Lessee shall he required to perform all of its obligations under this Lease from and after the Stan Date, including the payment of Rent, notwi[hstandin8 Lessor's election to Withhold possession pe acct of such evidence of Insurance. Further. If Lessee is required to perform any other conditions prior to or concurrent with the Stan pate, PAGE 2 OF 13 _ INITIALS INITIALS 2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM ST6-14-3110E Page 88 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Rent. 4.1. Rent Defined. AI[ monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("Rent"). 4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States.. without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shell be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shalt be prorated based upon the actual number of days of said month. Payment of Rent shaEi be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of S25 in addition to any Late Charge and Lessor, at its option, may require all future payments to be made by Lessee to be by cashier's check. Payments will lie applied tirst to accrued late charges and attorney's fees, second to accrued interest, then to Base Rent, Insurance and Real Property Taxes, and any remaining amount to any other outstanding charges or costs. 4.3 Association Fees. In addition to the Base Rent, Lessee shall pay to Lessor each month an amount equal to any owner's association or condominium fees levied or assessed against the Premises. Said monies shall lie paid at the same time and in the same manner as the Base Rent 5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee's faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under ihislease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit. Lessee shall within 10 days after wrrtten request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Leese. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Reni. Should [he Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee_ Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor's reasonable judgment., to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs duffing this Lease and following such change the financial condition of Lessee is, in Lessor's reasonable judgment significantly reduced, Lessee shall deposit such additional monies with Lessor es shall be sufficient to cause 4he Security Deposit to be at a commereialEy reasonable level based on sunh change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within g0 days after the expiration or termination of this Lease, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of 4he Security Beposit shall be considered to be held in trust., to bear Interest or to be prepayment for any monies Ea be paid by Lessee under this Lease. 6. Use. 6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which, in the opinion of City, is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other then guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein, and/or is riot significantly more burdensome to the Premises. if Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notification of same, which notice shall include en explanation of Lessor's objections to the change in the Agreed Use. 6.2 Hazardous Substances. a) Reportable Uses Require Consent. The term "Hazardous Substance" as used in this Lease shall mean any product. substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any govemmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but no[ be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without 4he express prior written consent o4 Lessor and timely compliance (at Lessee's expense) with a!i Applicable Requirements. "Reportable Use" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to lie filed with. any governmental authority, endlor (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applkcable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing: Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use,, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor, in addition. Lessor may condition its consent to any Reportabke Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises endlor the environment against damage, contamination, injury endlor Viability, innluding, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements} and/or increasing the Security Deposit. b) Duty to Inform Lessor. tf Lessee knows: or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shalt immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. c) Lessee Remediation. Lessee shall nol cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable Requirements and take atl investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance; security endlor monitoring of the Premises or neighboring properties.. that was caused ar materiaklY contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party. d) Lessee Indemnification. Lessee shall indemnify.. defend and hold Lessor. its agents, employees, lenders and ground lessor, it any, harmless from and agains4 any end aU loss of rents andfor damages, liabilities, judgments, claims.. expenses, penalties, and attorneys' and consultants' fees arising out of ar involving any Hazardous Substance brought onto the Premises by or for lessee, or any third party (provided, however, that Lessee shall have no liability under Fhis Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties riot caused or contributed to by Lessee).. Lessee's obligations shah include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation.. removal., remediation, restoration endlor abatement, and shall survive the expiration ar termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such agreement. e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee's occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees, Lessor's obligations, as and when requited by the Applicable Requirements, shall include, but not ba limited to, the cost of investigation, removal, remediation, restoration andfor abatement. and shall survive the expiration or termination of this Lease, f) Investigations and Remediations. Lessor shalt retain the responsibility and pay For any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's occupancy, unless such remediation measure is required as a result of Lessee's use (including "Alterations", as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shell cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable times in order to carry out lessor's investigative and remedial responsibilities. g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unl Lease legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requ d~and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor PAGE 3 OF 13 ~' INITIALS INITIALS 2601 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STG-14-3l10E Page 89 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda ay.. at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required.. as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) ii the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or 8100,000.. whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may., within 1Q days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,OOQ whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shell proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of terminatinn. 6.3 Lessee's Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the regwrements of any applicable fire insurance underwriter or rating bureau, and the recommendations of lessor's engineers and/or consultants which relate in any manner to fha such Requirements, without regard to whether such Requirements are now in effect or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor's written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee's compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of arty threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements, Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii) any mustiness or other odors that might indicate the presence of mold in the Premises. 6.4 Inspection; Compliance. Lessor and Lessor's "Lentler" (as defined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable notice; for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall he paid by Lessor, unless a violation of Appkcable Requirements, or a Hazardous Substance Condition (see paragraph 9.1) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shaft upon request reimburse Lessor for the cost of such inspection, so long as such inspection Is reasonably related to the violation or contamination. In addition., Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefor. 7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations. 7.1 Lessee's Obligations. a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance).. 6.3 (Lessee's Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 (Damage or Destruction); and 14 (Condemnation), Lessee shall, a[ Lessee's sole expense, keep the Premises, Utility Installations (intended for Lessee's exclusive use, no matter where located), and Alterations in good order, condition and repair whether or not the portion of the Premises requiring repairs; or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements or the age of such portion of the Premises). incuding, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), ceilings, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located In. on, or adjacent to the Premises. Lessee is also responsible for keeping the roof and roof drainage clean and free of debris. Lessor shall keep the surface and structural elements of the roof, foundations, and bearing walls in good repair see paragraph 7.2). Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good mainsenance practices; specifically including the procurement and maintenance of the service contracts required by Paragraph 7,1(b) below. Lessee's obligations shaft include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shalt, during the term of this Lease, keep the eMerior appearance of the Building in a first-class condition (including, e.g. graffiti removal) consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity, including.. when necessary, the eMerior repainting of the Building. b) Service Contracts. Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor. in customary Torm and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements. if any,. if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) tandscaping and irrigation systems, and (v) clarifiers. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service cnntracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof, c) Fafluce to Perform. if Lessee falls to perform lessee's obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee's behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof. d) Replacement. Subject to Lessee's indemnification of Lessor as set forth In Paragraph 6.7 below, and without relieving Lessee of liability resulting from Lessee's failure to exercise and perform good mainsenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this lease, on the date on which Base Rant is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is aria, and the denominator of which is 144 (ie. 11144th of the cost per month). Lessee shall pay Interest on the unamortized balance but may prepay its obligation et any time. 7.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 {Damage or Destruction] and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation,. in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee., except for the surface and structural elements of the roof; foundations and bearing walls, the repair oT which shall be the responsibility of Lessor upon receipt of written notice that such a repair is necessary. Ii is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this lease. 7.3 Utility Installations; Trade Fixtures; Alterations. a) Definitions. The term "Utility Installations" refers to all floor and vnndow coverings, air and/or vacuum lines, power panels, electrical dlstrihuUon, security and fire protection systems, communicatlan cabling.. lighting fixtures. HVAC equipment, plumbing, and fencing in or on the Premises. The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the improvements, other than Utility knstalletions or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alterations andfor Utility lnstallatlons" are defined as Alteratinns andtor Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph Z4(a)- b) Consent. Lessee shall not make any Alterations or Utikity Installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Alterations or Utility testa€lations to the interior of fha Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing. relocating or removing the roof or any existing walls, will no[ affect the electrical, plumbing, HVAC, andtor life safety systems, and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing.. Lessee shalt not make or permit any roof penetrakions andtor install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to greeting such approval. require Lessee to utilize a contractor chosen andfor approved by Lessor. Any Alterations ar Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits end the plans and specifications prior to commencement of the work, and (its) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expedltlous manner. Any Alterations or UtilOp Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. Far work which costs an amount in excess of aria month's Base Rent Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal fo 15096 of the estmated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor. c) Liens; Bonds. Lessee shall pay, when due; all claims for labor or materials furnished or alleged to have been fumished to or for Lessee at or for use on the Premises.. which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to fha commencement of any work in; on or about the Premises, and Lessor shall have the right to past notices of non-responsibility. Ii Lessee shall contest the validity of any such lien. claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may b de thereon before the enforcement thereof. Ii Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the mo ~ ch contested Ren, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action.. PAGE 4 OF 13 INITIALS IN IALS 2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STG-14-3110E Page 90 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda essee shall pay Lessor's attorneys' fees and costs. 7.4 Ownership; Removal; Surrender; artd Restoration. a) Ownership. Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time: elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease.. become the property of Lessor and be surrendered by Lessee with the Premises. b) Removal. By delivery to Lessee of written notice trom Lessor not earlier than BD and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent. e) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if this Lease is Tor 12 months or less; then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removak of Trade Fixtures, Lessee owned Alterations andlor Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises) even if such removal would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed tc have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timeEy vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 8. tnsurance; Indemnity. 8.1 Payment of Premium Increases. a) Lessee shall pay to Lessor any insurance cost increase ("Insurance Cost Increase") occurcing during the term of this Lease. insurance Cost Increase is defined as any increase in the actual cost of the insurance required under Paragreph 8.2(b), 6.3(a) and 8.3(b) ("Required Insurance"): over and above the Base Premium as hereinafter defined calculated on an annual basis. Insurance Cost Increase shall include but not be limited to increases resulting from the nature of Lessee's occupancy, any act or omission of Lessee, requirements of the holder of mortgage or deed of trust covering the Premises, increased valuation of the Premises andlor a premium rate increase. The parties are encouraged to fill in the Base Premium in paragraph 1.6 with a reasonable premium for the Required Insurance based on the Agreed Use of the Premises. iT the parties fail to insert a dollar amount in Paragraph 1.8, then the Base Premium shaft be the lowest annual premium reasonably obtainable for the Required Insurance as of the commencement of the Original Term for the Agreed Use of the Premises. In no event, however.. shall Lessee 6e responsible for any portion of the increase in the premium cost attributable to liability insurance carried by Lessor under Paragraph 6.2(b) in excess of 52,000,000 per occurrence. b) Lessee shall pay any such Insurance Cost Increase to Lessor within 30 days after receipt by Lessee of a copy of the premium statement or other reasonable evidence of the amount due. If the insurance policies maintained hereunder cover other property besides the Premises, Lessor shall else deliver to Lessee a statement of the amount of such Insurance Cost Increase attributable only to the Premises showing in reasonable detail the manner in which such amount was computed. Premiums for policy periods commencing prior to, or extending beyond the term of this Lease, shall be prorated to correspond to the term of this Lease. @.2 Liability Insurance. a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily injury., personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance oT the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,OD0,000 per occurrence with an annual aggregate of not less than $2,000,000. Lessee shall add Lessor as an additional insured 6y means of an endorsement at least as broad as the Insurance Service Organization's "Additional Insured-Managers or Lessors of Premises" Endorsement. The policy shall not contain any intro-insured exclusions as between insured persons or organizations, 6ui shall include coverage for liability assumed under this Lease as an "Insured contract" for the performance of Lessee's indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. b) Garried by Lessor, Lessor shall maintain liability insurance as described in Paragraph 8.2(aj, in addition to, and not in lieu ot, the insurance required to be maintained by Lessee, Lessee shall not be named as an additiona4 insured [herein. ~C55Or 5ha~~ have the right to Self insure forthe5e coverages. 8.3 Property insurance -Building, Improvements and Rental Value. a) Building and Improvements. The Insuring Party shall obtain and keep in force a policy or pdides in the name of Lesser, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss nr damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event mare than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade FiMures, and Lessee's personal property shall be insured by Lessee not by Lessor. if the coverage }s available and commercally appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood andlor earthquake unless required by a Lender or included in the Base Premium), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition; reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation. and inflation guard protection causing an increase in the annual property insurance coverage amount 6y a factor of not lass than the adjusted U.S. Department of Labor Consumer Price Index for AI! Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence, and Lessee shall 6e liable for such deductible amount in the event of an Insured Loss. b) Rental Value. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the Inss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value jnsurance"j. Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annuaify to reflect the projected Rent otherwise payable by Lessee, for the next t2 month period. Lessee shall be liable for any deductible amount in the event of such loss. c) Adjacent Premises. If the Premises are part of a larger building,. or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings iT said increase is caused by Lessee's acts: omissions., use or occupancy of the Premises. 8.4 Lessee's Property; Business Interruption Insurance; Worker's Compensation Insurance. a) Property Damage. Lessee shalt obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed 1,DDD per occurrence. The proceeds from any such insurance shall be used by Lessee foe the replacement of personal property; Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor wdh written evidence that such insurance is in force. b) Business interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect lass of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such penls- c) Worker's Compensation insurance- Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may be required by App6cabte Requirements. d) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee's property, business operations nr obligations under this Lease. 8.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII, as set forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender. Lessee shall not do or permit to he done anything which invalidates the required insurance policies. Lessee shall, prior tc the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates with copies of the required endorsements evidencing the existence and amounts of th uir ranee. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor. PAGE 5 OF 13 ~(,~_ ~, INITIALS INITIALS / m2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STO-14-3ItgE Page 91 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda t least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or "insurance binders" evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be requred to, procure and maintain the same. 8.6 Waiver of Subrogation, Without affecting any other rights or remedial, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not Eimited by the amount of insurance carried or required, or by any deductibles applicable hereto, The Parties agree to have their respective property damage insurance carriers waive any right to subrogation Fhat such companies may have against Lessor or Lessee, as the case may tae, so long as the insurance is not invalidated thereby. 8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct, lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents andlor damages te, per~on~ crr• prrperl:y. liens, judgments, penalties, attorneys' and consultants' Tees, expenses andlor liabilities arising out of, involving, or in connection with, the use andlor occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim In order to be defended or indemnified. 8.8 Exemption of Lessor and its Agents from Liability. Notwithstanding the negligence or breach of this Lease by Lessor or Its agents, neither Lessor nor its agents shall be liable under any circumstances for (i) injury or damage to the parson or goods, wares.. merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, ar any other person in or about the Premises, whether such damage or injury is caused by or results from tire, steam, electricity, gas., water or rain, indoor air quality; the presence of mold or from the breakage, leakage, obstruction or other defects of pipes; fire sprinklers., wires, appliances,, plumbing, HVAC or fighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places; (li) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agents to enforce the provisions of any other lease in the Project, or (iii} injury to Lessee's business or for any loss of income or profit therefrom, Instead, it is intended that Lessee's sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain pursuant to the provisions of paragraph 8. 8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lesser to asks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance andlor does not provide Lessor with the required binders or certificates evidencing the existence of the required insurance, the Base Rent shall be automatically increased, without any requirement for notice to Lessee; by en amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase m Bese Rent represents fair and reasonable compensation for the additional risk/ costs that Lessor will incur by reason of Lessee's failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waver of Lessee's Default or Breach with respect to the tallure to malntaln such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this Lease. 9 Damage or Destruction. 9.1 Definitions. a} "Premises Partial Damage" shall mean damage or deshuction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably tae repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. Notwithstanding the foregoing, Premises Partial Damage shall not include damage to windows, doors, andlor other similar items which Lessee has the responsibility to repair or replace pursuant to the provisions of Paragraph 7.1. b} "Premises Totaf Destruction" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired In 6 months or less from the date of the damage or destruction. lessor shalt notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total c) "Insured Loss" shall mean damage or destruction to improvements on [he Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage (units involved. d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing Immediately poor thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation. e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance. in, on, or under the Premises which regwres restoration. 8.2 Partial Damage -Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage {but not Lessee`s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however. that Lessee chalk, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is 510,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for [hat purpose, Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall prompt{y contribute the shortage in proceeds (except as to the deductible which Is Lessee's responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurence proceeds or to tu{ly restore [he unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same,. or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period- the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shah remain in full farce and effect. If such funds orassurance are not received: Lessor may nevertheless elect by writsen nofice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in prnceeds, in which case this Lease shall remain in full force and affect, or (li) have this Lease terminate 90 days thereafter. Leasee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Raragraph 9.3, notwithstanding thaE there may be some insurance coverage, taut the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 8.3 Partial Damage -Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willfu! act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i} repair such damage as soon as reasonably possible et Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii} terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days offer making such commitment, In such event this Lease shalt continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available, If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice. 9.4 Total Destructlon. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shag terminate 80 days following such Destructlon. if the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6. 9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base Rem,, whether or not an Insured Lass, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve Ehis Lease by, a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof} needed io make the repairs on or before the earlier of (i) the date which is 10 days after Lessee's receipt of Lessor's written notice purporting to terminate this Lease, or (ii) the day prior Fo the date upon which such option expires.. If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds. Lessor shall, at Lessor's commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee's option shall be exti ishe 9 Abatement of Rent; lessee's Remedies. ~''~ / PAGE 6 OF 13 INITIALS INITIALS 2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATkON FORM STG-14-3f10E Page 92 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda j Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair. remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired., but not to exceed the proceeds received from the Rental Value insurance. Afl other obligations ofi Lessee hereunder shall be performed by Lessee; and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. b) Remedies. If Lessor is obligated to repair or restore the Promises and does not commence, in a substantial and meaningful way, such repair or restoration within 90 days after such obligation shalE accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days hereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. "Commence" shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises: whichever first occurs. 9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 82(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor Lessor shall, in addition, return to Lessee so much of Lessee's Security Deposes as has not been, or is not then requred to be, used by Lessor. 10. Real Property Taxes. 10.1 Definition. As used herein.. the term "Real Property Taxes" shall include any form of assessment; real estate, general special, ordinary ar extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes), improvement band:. andlor license fee imposed upon or levied against any legal or equitable interest of Lessor In the Premises or the Project., Lessor's right tc other income therefrom, andlor Lessor's business of leasing, by any authority having the direct or indirect power to tax and ~+fiere the funds are generated with reference to the Building address and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Premises are located. Real Property Taxes shall also Include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor fo Lessee pursuant to this Lease. 10.2 a) Payment of Yaxes. Lessor shall pay the Reai Property Taxes applicable to the Premises provided, however, that Lessee shall pay to Lessor the amount, if any, by which Real Property Taxes applicable to the Premises increase over the fiscal tax year during which the Commencement Date Occurs ("Tax Increase"), Payment of any such Tax Increase shall be made by Lessee to Lessor within 30 days after receipt of Lessor's written statement setting forth the amount due and computation thereof. If any such taxes shall cover any period of time prior to or after the expiration or termination of this Lease: Lessee's share of such taxes shall be prorated [o cover only that portion of the tax bill applicable to the period that this Lease is in effect. In the event Lessee incurs a sate charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that the Tax Increase be paid In advance to Lessor by Lessee monthly In advance with the payment oT the Base Rent. Such monthly payment shall be an amount equal to the amount of the estimated installment of the Tax Increase divided by the number of months remaining before the month in which said Installment becomes delinquent. When the actual amount of the appilcable Tax increase Is known, the amount of such equal monthly advance payments shall be adjusted as required to provide the funds needed to pay the applicable Tax Increase. If the amount collected by Lessor is insufficient to pay the Tax Increase when due, Lessee shall pay Lessor, upon demand, such additional sums as are necessary to pay such obligations. Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any such advance payments maybe treated by Lessor as an additional Security Deposit. b) Additional Improvements. Notwithstanding anything to the contrary in this Paragraph 10.2, Lessee shall pay to Lessor upon demand therefor the entirety of any increase in Reai Property Taxes assessed by reason of Alterations or Utility Installations placed upon the Premises by Lessee or at Lessee's request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the execution of this Lease by the Parties. 10,3 Joint Assessment. If the Premises are not separately assessed, Lessee's liability shah be an equitable proportion of the Tax Increase for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by lessor from the respective valuations assigned in the assessor's work sheets nr such other information as may be reasonably available. 10,4 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures; furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separatey from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor's real property, Lessee shall pay Lessnr the taxes aitrihutable to Lessee's property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee's property. it. Utilities and Services. Lessee shalt pay for ell water, gas„ heat, light, power, telephone, trash dispasaE and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered or billed to Lessee, Lessee shell pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy., stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions. 12. Assignment andSUbletting. 12.1 Lessor's Consent Required. a) Lessee shall not voluntarily or by operation of law assign., transfer, mortgage or encumber (collectively, "assign or assignment") or sublet aft or any part of Lessee's interest in [his Lease or in the Premises without Lessor's prior written consent. b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent The transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shalt cnnstitute a change in control for this purpose. c) Tha involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger., sale: acquisition, financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs., which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% pf such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented: or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater.. shall be considered an assignment of this Leese to which Lessor may withhold its consent. "Net Worth of Lessee" sheik mean the net worth of Lessee {excluding any guarantors) established under generally accepted accounting principles. d) An assignment or subletting without consent shall., at Lessor's option, be a Default curable after notice per Paragraph 13.1 (d) or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either. (i) terminate this Lease, or (li) upon 3D days written notice, increase the monthly 0ase Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent. f) Lessor may reasonably withhold consent to a proposed assignment or subletting Ii Lessee is in Default at the time consent is requested. g) Nntwithstanding [he foregoing, allowing a de minimis portion of the Premises, ie 20 square feet or less.. to he used by a third party vendor in connectien with the installation of a vending machine or payphone shall not constitute a subletting. 12.2 Terms and Conditions Applicable to Assignment and Subletting. a) Regardless of Lessor's cnnsenf, no assignment or subletting shall: (i) be affective without the express written assumption by such assignee or sublessee of the nbpgations of Lessee under this Lease; (ii) release Lessee of any ahligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee. b) Lessor may accept Rent or performance of Lessee's obligations from any person other Fhan Lessee pending approval or disapproval of an assignment. Neither a delay in [he approval or disapproval of such assignment nor the acceptance of Rent or performance shad constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or Breach. c) Lessor's consent to any assignment nr subletting shall not constitute a consent to any subsequent assignment or subletting. d) In the event of any Default or Breach by Lessee.. Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor's remedies against any other person or entity responsible therefor to Lessor. or any security held by Lessor. ey Each request for consent to an assignment or subletting shell be in writing, accompanied by Information relevant to Lessor's der do to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to t i se andlor required modification of the Premises: if any.. together with a fee of 5500 as consideration for Lessor's consid~e}ringnand PAGE 7 OF 13 INITIALS INITIALS 6?2DD1 -AIR COMMERCIAL REAL ESTATE ASSOCIA71ON FORM STO.14-31711E Page 93 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda rocessing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested.(See also Paragraph 36) f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment.. entering into such sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. g) Lessor's consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shalt be deemed included in all subleases under this Lease whether or not expressly incorporated therein: a) Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee's obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee's then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not.. by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and compty with any of Lessee's obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. b) In the event of a Breach by Lessee, Lessor may. at its option, require sublessee tc ettorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. d) No sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent. e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 13. Default; Breach; Remedies. 13.1 Default; Breach. A "Defaulf" is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A "Breach" is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period. a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism. b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens Eife or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES. c) The failure of Lessee to allow Lessor andior its agents access to the Premises or the commission of waste, act or acts constituting public or private nuisance, ae aer~erminea m accnraarrre arth the P,daenauri to this !ease arrarhea hercta. andior an illegal activity on the Premises by Lessee.. where such actions continue for a period of 3 business days following written notice to Lessee. d) The Taiture by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts. (iii) the rescission of an unauthorized assignment or subletting. (iv) an Estoppel Certificate or financial statements, {v} a requested subordination. {vi) evidence concerning any guaranty andior Guarantor, (vii) any document requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease., where any such failure continues for a period of 10 days following written notice to Lessee.. e) A Default by Lessee as to the terms, covenants, condtions or provisions of this Lease, or of the rules adopted under Paregraph 4D hereof, other than those described in subparagraphs 13.1(aj, (b), (c) or (d), above, where such Default continues for a period of 3D days after written notice; provided, however, that it the nature of Lessee's Default is such that more than 30 days ate reasonably required for its cure; then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. f) The occureence of any of the following events: (I) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. §101 or any successor statute theretD (unless, in the case of a petition filed against Lessee.. the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judiciaY seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease. where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false. h) tt the performance of Lessee's obligations under this Lease is guaranfeed'r (i) the death of a Guarantor, (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach oS its guaranty obligation on an anticipatory basis, and Lessee's taiiure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee., equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease. i) Nuirsance, ~~ cfefinerl a..net ~~et. fc~r'Ch ir1 t:kte fi.~.fenelum to oils Leave attached hey eft,. 13.2 Remedies. If Lessee tails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may. at its option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. Vn the event of a Breach, Lessor may, with or without further notice or demand. and without limiting Lessor kn the exercise of any right or remedy which Lessor may have by reason of such Breach: a) Terminate Lessee's right to possession of Ehe Premises by any lawful means, in which ease this Lease shall terminate and Lessee shall immediately sufrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have bean reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental ions that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for alt the detriment proximately caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cos[ of recovering possession of the Premises, expenses of retelling, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount a4 the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rant or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently.. and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute Doth an unlawful detainer and a Breach pf this Lease entitling Lessor to the remedies provided for in thisl.gase andior by said statute. b) Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due., in which event Lessee may i>u sign, subject only to reasonable Fmitaticns. Acts of maintenance, efforts to relet: andior the appointment of a receiver to PAGE 8 OF 13 INITIALS INITIALS 2007 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STG-14-3110E Page 94 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda essor's interests, shall not constitute a Termination of the Lessee's right to possession. c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not rekleve Lessee trom liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises. 13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the gkving or paying by Lessor to or far Lessee of any cash or other bonus; inducement or consideration for Lessee`s entering into this Lease, all of which concessions are hereinafter referred to as "Inducement Provisions," shall be deemed conditioned upon Lessee's full and faithful performance of ell of the terms., covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further fnrce or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an inducement Provision shall be immediately due and payable by lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance. 13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease. the exact amount of which will be extremely difficult to ascertain, Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor withih 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor cone-time late charge equal to t0% of each such overdue amount or 5100, whichever is greater. The Parties hereby agree that such Late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such kale payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount nor prevent the exercise of any of the other rights and remedies granted hereunder. in the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwlthstanding any provision of this Lease to [he contrary, Base Rent shall, at Lessor's option, become due and payable quarterly In advance. 13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor. when due as to scheduled payments {such as Base Rent) or within 30 days foNowing the date on which it was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled payments, or the 31st day after it was due as to non-scheduled payments. The interest ("Interest") charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4. 13.6 Breach by Lessor. a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation is such that more than 30 days are reasonably required for its performance., then Lessor shall not be in breach it performance is commenced within such 30 day period and thereafter diligently pursued to completion. b) Pertormance by Lessee on Behalf of Lessor. In the event 4hat neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion. then Lessee may elect to cure said breach at Lessee's expense and offset from Rent the actual and reasonable cost to perform such cure, provided however., that such offset shall not exceed an amount equal to the greater of one month's Base Rent or the Security Deposit, reserving Lessee's right fo seek reimbursement from Lessor for any such expense in excess of such offset, Lessee shall document the cost of said cure and supply said documentation to Lessor. 14. Condemnation. If the Premises or any portion thereot are taken under the power of eminent dama(n or sold under the threat of the exercise of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at lessee's option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as [o the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shat/ be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken.. or for severance damages, provided, however, that Lessee shatl be entitled to any compensation paid by the condemnor for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures. without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Instaktatlons made to the Premises by Lessee, for purposes oT Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation: Lessor shall repair any damage o the Premises caused by such Condemnation, ~rayiAeta that Le~SOr ha6 reneweA carripersatlon tar suvh damage frorri the candernnirig authority. 15- Brokerage Fees. 15.3 Representations and Indemnities of Broker Relationships, Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder {other than the Brokers; if any) in connection with this Lease, and that no one other than said named Brokers is entitled to any commission or finder's fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold The other harmless from and against liability for compensation or charges which may he claimed by any such unnamed broker; finder or other similar party by reason of any dealings or actions of the indemnifying Party,. including any coals, expenses, attorneys' tees reasonably incurred with respect thereto. 16. Estoppel Certificates. a) Each Party (as "Responding Party") shall within 10 days after written notice trom the other Party (the "Requesting Party") execute; acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current "Estoppel Certificate" form published by the AIR Commercial Real Estate Association.. plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party. b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) [he Lease is in full force and effect without modification except as may be represented by the Requesting Party; (ii) there are no uncured defaults in the Requesting Parry's performance, and Cili) If Lessor is the Requesting Party, not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certlflcate. c} If Lessor desires to finance- refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within 10 days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee's 5nancial statements for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth- 17. ~ Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a trensfer of Lessor's title ar interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Securty Deposit. as aforesaid, the prior lessor shall be relieved of all liabgity with respect to the obligations and/or covenants under this Lease thereafter to be performed by the lessor. Subject ro the foregoing, the obligations and/or covenants in this Lease fo be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 1 rebility. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the al' ~ other provision hereof. PAGE 9 OF 13 INITIALS INITIALS 2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STO.14-3f10E Page 95 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 9. Days. Unless otherwise specifically Indicated to the contrary; the word "days" as used In this Lease shall mean and refer to calendar days. 20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall riot seek recourse against Lessor's partners, members, directors, officers or shareholders., or any of their personal assets for such satisfaction. 21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease. 22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents end warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. 23. Notices. 23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular. certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. Tha addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice, A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing. 23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. 24. Waivers. a) No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee oT the same or of any other term, covenant or condition hereof, Lessor's consent to; or approval of, any act shall riot be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar act by Lessee,, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. b) The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shell 6e of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE. 25. Disclosures Regarding The Nature of a Real Estate Agency Relationship. a) When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows: i) Lessor's Agent. A Lessor's agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor's agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity., honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: a Diligent exercise of reasonable skills and care in performance of the agent's duties. h. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above. ii) Lessee's Aoant An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor's agent, even if 6y agreement the agent may receive compensation for services rendered, either in tulk or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose elf facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation ot, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above. iii} Aaent Reoresentina Both Lessor and Lessee. Areal estate agent., either acting directly or through one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only wish the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation., the agent has the following affirmative obligations to both the Lessor and the Lessee: a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. b. Other duties to [he Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not without the express permission of the respective party, disclose to the other Party that the Lessor will accept rent in an amount less than that Indicated In the listing or that the Lessee Is willing to pay a higher rent than that offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responslbikty to protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction. Areal estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. b) Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that nc lawsuit or other legal proceeding involving any breach of duty.. error or omission relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs and attorneys' fees), of any Broker with respect to any such lawsuit andlor legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease, provided, however, that the foregoing limitation on each Broker's liability shall not be applicable Io any gross negligence or willful misconduct of such Broker. c) Lessor and Lessee agree to identify to Brokers as "ConfideniiaE" any eommuMcation or informaton given Brokers that is considered by such Party to be confiden[ial_ 28. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over.. then the Base Rent shall be increased to 1504ir of the Base Rent applicable immediately preceding the expiration or termination. Nothing cantalned herein shall be construed as consent by Lessor to any holding over by Lessee. 27. GumulaNve Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 28. Covenants and Conditions; Construction of Agreement, All provisions of this Lease tc be observed ar performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context., the singular shall include the plural and vice versa. This Lease shall no[ be construed as if prepared by one of the Parties, but rather according tc its fair meaning as a whole, as kt both Parties had prepared it. 29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. 30. Subordination; Attornment; Non-Disturbance. 30.1 Subordination. This Lease and any Option granted hereby shat! be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively: "Security Device"}, now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices In th{s Lease together referred to as "Lender"} shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any LepdBr ay tact to have this Lease andlor any Option granted hereby superior to the lien of its Security Device by giving written notice iherenf to es eupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates. f/,~.ihePAGE10OF13 _,~/`./ INITIALS INITIALS 2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STO.14-3)10E Page 96 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda ocumentation or recordatlon thereof. 30.2 Attornment. In the event that Lessor transfers title to the Premises; or the Premises are acquired by another upon the foreclosure or termination of a Security Devise to which this Lease is subordinated (i) Lessee shall subject to the non-disturbance provisions of Paragraph 30,3, attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will automatically become a new lease between Lessee and swab new owner, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor's obligations, except that such new owner shall not (a) be liable for any net or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month's rent, or (d) be liable for the return of any security deposit paid to any prior lessor which was not paid or credited to such new owner. 30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a "Non-Disturbance Agreement") from the Lender which Non-Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of [his Lease.. Lessor shall: it requested by Lessee, use its commercially reasonable efforts to obtain aNon-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unaple to provide the Non-Disturbance Agreement within said 60 days, then Lessee may.. at Lessee's option, directly contact Lender and attempt. to negotiate for the execution and delivery of aNon-Disturbance Agreement. 30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination,. attornment andfor Non-Disturbance Agreement provided for herein. 31.. Attorneys' Fees. If any Parfy or Broker brings an action or proceeding involving the Premises whether founded in tort., contract or equity, or to declare rights hereunder, the Prevailing Pany (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such tees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, "Prevailing Party" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Pany or Broker of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse elf attorneys' fees reasonably incurred. In addition, Lessor sheik be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). 32. Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary or desireple end the erecting, using and malntalning of utilities, services., pipes and conduits through the Premises andfor other premises as long as there is no material adverse effect to Lessee's use of the Premises. All such activities shall be without abatement of rent or liability to Lessee. 33. Auctions. Lessee shall not conduct, nor permit to he conducted, any auction upon the Premises without Lessor's prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction. 3A. Signs. Lessor may place an the Premises ordinary "For Sale" signs at any time and ordinary "For Lease" signs during the last 6 months of the term hereof. Except for ordinary "for sublease" signs, Lessee shall not place any sign upon the Premises without Lessor's prior written consent. All signs must comply with all Applicable Requirements. 35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises: provided, however; that Lessor may elect to continue any one or all existing subtenencies. Lessor's failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shell constitute Lessor's election to have such event constitute the termination of such interest. 36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration oT, or response to, a request by Lessee for any Lessor consent, including put not tJmited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid py Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of This Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, excepf as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor's consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given, In the event that either Pany disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days following such request. 37. Guarantor. 37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the AIR Commercial Real Estate Association. 37.2 Default. tt shall constitute a pefault of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor's behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (6) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect.. 38. Ouiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's pan to be observed and performed under this Lease, Lessee shall have quiet possession and quint enjoyment of the Premises during the term hereof. 39. Options. If Lessee is granted an Option, as defined below, then the following provisions shaft apply. 39.1 Definition. "Option" shall mean: {e) the right to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor, (h) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase, the right of first offer to purchase or the right of first refusal to purchase the Premises or other property of Lessor. 392 Options Personal Ta Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot he assigned or exercised by anyone other Shan said original Lessee and only while the original Lessee is in full possession of the Premises and; if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subietting. 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 39.4 Effect of Default on Options. a) Lessee shall have no right to exercise an Option'. (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured.. (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (Iii) during the time Lessee is in Breach of this Lease., or (iv) in the event That Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immetliafely preceding the exercise of the Optlan. b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise an Option because of the provisions of Paragraph 39.4(aj. c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee tails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee commits a Breach of this Lease. 40. Multiple Buildings. It the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees that it will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management, safety, and care of said properties, including the care and cleanliness of the grounds and including the parking, loading end unloading of vehicles, and to cause its employees, suppliers, shippers; customers, contractors and invitees !o so abide and conform. Lessee also agrees to pay its fair share of common expenses incurred in connection with such rules and regulations. 41. Security Measures. Lessee hereby acknowledges that the Rent payaple to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Pre ise Lessee, its agents end invitees and their property from the acts of third parties. Q2., servations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements.. PAGE 11 OF 13 INITIALS INITIALS 2001 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STG-14-3f10E Page 97 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda ights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements- rights, dedications, maps and restrictions do not unreasonably interfere with fhe use of the Premises by Lessee.. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easemert rights, dedication, map or restrictions. 43. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest" and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. tf it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part [hereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid under protest" within 8 months shall be deemed to have waived its right to protest such payment. 44. Authority; Multiple Parties; Execution. a) If either Party hereto is a corporation. trust, limited liability company, partnershkp, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within 30 days after request,. deliver to the other party satisfactory evidence of such authority. b) If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and severally liable hereunder. ft Is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if a{I of the named Lessees had executed such document. cj This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 45. Conflict. Any conflict between the printed provisions of this Lease and typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 48 ONer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease Is not intended to be binding until executed and delivered by all Parties hereto. 47. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee's obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises. 49. Arbitration of Disputes, An Addendum requiring the Arbitration of disputes between the Parties andfor Brokers arising out of this Lease ^ Is ^ is not attached to [his Lease. 50. Americans with Disabilities Act. Since compliance with the Americans with Disabilities Act (ADA) is dependent upon Lessee's specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee's use of the Premises requires modifications or additions to the Premises in order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessee's expense. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVfEWED TH{S LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED ANp VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THtS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH tT RELATES. THE PARTIES ARE URGED TO: 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE, 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY Of THE PREMISES FOR LESSEE'S INTENDED USE. WARNING: iF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED. The parties hereto have execute thks Lease at the Lace and on the dates specified above their respective signatures. Executed at: ,iyxCL.9 F f T~ ~~,/~ Executed at: on 7f/ 7 /Z- on: ' t3y LESSOR: By LESSEE: Git.y cif C'hnla Vista, a municipal ch~rterer3 S«uth Bay Cc~nmturuty Service czar arati° r_ - the t. `.e a` California By: Hy, ~~.._ Name Printed: f? ~ Name P ted_ Kat m - Lemb« Title: ~~y~~ Title, CEO By: By: Name Printed: Name Printed. Title: Title: Address: 276 Fc,urth Avenue Address: 9~i`1 F Street Chula Vie;ta, CA Sr1911~ Chula Viata, CA 91?1D Telephone: (_) Telephone: t6,1~)92i1-_962i~ Facsimile: (_) Facsimile: (_) Email: EmaiC Email Email: Federal ID No. Federal ID No. INITIALS PAGE 12 OF 13 20D7 -AIR COMMERCIAL REAL ESTATE ASSOCIATION INITIALS FORM STG-14-3/10E Page 98 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda BROKER: BROKER: Voit Real Bstate Services Att: Tracy Clark qtr Title: Senior Vice President Title: Address: 9370 La Jolla Village Llr. X990 Address. San L?ieq~~, CA 42122 Telephone:(9 5 y)4 5 R- 333 9 Facsimile:(559)9a3-1481 Email: tclark@vc?itco. cum Telephone:(_) Facsimile:( ) Email: FederallD No. BrokerlAgent DRE License #. OOo91800 FederallD No. BrokerlAgent DRE License #: NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utiliaing the most current form: AIR Commercial Real Estate Association, BDO W 6th Street, Suits 800, Los Angeles, CA 90017, Telephone No. (213) 687-6777. Fax No.: (213) 687-8616. Copyright 2001 - By AIR Commercial Real Estate Association. All rights reserved. No part of these works may be reproduced in any form without permission in writing. i INITIALS PAGE 13 OF 13 w INITIALS 20D1 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STO-14-3I1DE Page 99 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda ENT ADJUSTMENT(S) STANDARD LEASE ADDENDUM Dated Juke 5, 2012 By and Between {Lessor)City of Chula, a municipal chartered corporation of the State ~~f ralifornia Lessee) south Bay Crmntunity Services Address of Premises: 430 F street Chula Vista, CA 91910 Paragraph 51 A. RENT ADJUSTMENTS: The monthly rent for each month of the adjustment period(s) specified below shall be increased using the method(s) indicated below: Check Method(s) to be Used and Fill in Appropriately) m 1. Cost of Living Adjustment(s) (COLA) a. On {Fill in COLA Dates): July I, 2013; Suly 1, 2(114; Suly 1, 2015; ~7ulV 1, 2Glf, the Base Rent shall be adjusted by the change, if any, from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select oney.^ CPI W (Urban Wage Earners and Clerical Workers) or ~ CPI U (All Urban Consumers), for (Fill in Urban Area): SaII D1 t. C)O All Items 1982-1984 = 100), herein referred to as "CPI". b. The monthly rent payable in accordance with paragraph A~La. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multipl€ed by a fraction the numerator of which shall he the CPI of the calendar month 2 months prioe to the month(s) specified in paragraph A.La. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to (select one): the ®first month of the term of this Lease as set forth in paragraph 1.3 ("Base Month") or ^ FiG in Other "Base Month"): .The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shalt any such new monthly rent 6e less than the rent payable Tor the month immediately preceding the rent adjustment. In ne event. shall any a4juytrnrnt cxcead two percent (Gk) in any yexar. c. In the evens the compilation andfor publication of the CPI sha71 be transferred to any other governmental department or bureau or agency or shalt be discontinued, then the index most Hearty the same as the CPI shat) be used to make such calculation. In the event that the Parties cannot agree on such alternative index. then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall be binding upon She parties. The cost of said Arbitration shall be paid equally by the Parties. eF asa~rird-arbNraEeF PAGE 1 OF 2 INITIALS X2000 -AIR COMMERCIAL REAL ESTATE ASSOCIATION INITIALS FORM RA-3-8IOOE Page 100 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda s})~ The Nee Base Rent ehel~bs - B- NOTICE: Unless specified otherwise herein, notice of any such adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease. C. BROKER'S FEE: The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance with paragraph 15 of the Lease or if applicabie, paragraph 9 of the Sublease. NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utiliaing the most current form: AIR Commercial Real Estate Association, 800 W 6th SFreet, Suite 800, Los Angeles, CA 90017. Telephone No. (213 687-8777. Fax No.: (213y 687.8816. INITIALS PARE 2 OF 2 INITIALS tg2000 • AiR GOMMERCIAL REAL ESTATE ASSOCIATION FORM RA3-8100E Page 101 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda PTION(S) TO EXTEND STANDARD LEASE ADDENDUM Dated June ~. 2012 y and Between (Lessor t-ity zf chute vita, ~ n,unir~igral chartered c~~zprrration jai il'iP :.Mate uT California B~ and Between (LeS&ee} S~auth Hap Community Services Address of Premises: aso F streer_ Chula Vista, CA 91910 Paragraph 52 A. OPTION(S) TO EXTEND: Lessor hereby grants to Lessee the option to extend the term of this Lease for two (2) additional thirty-six (3 h.) month period(s) commencing when the prior term expires upon each and all of the following terms and conditions: i) In order to exercise an option to extend, Lessee must give written notice of such election to Lessor and Lessor must receive the same at least ~ but not more than i2 months prior to the date that the option period would commence, time being of the essence. If proper notification of the exercise of an option is not given andlor received, such option shall automatically expire. Options (if there are more than one) may only be exercised consecutively. ii) The provisions of paragraph 39.. including those relating to Lessee's Default set forth in paragraph 39.4 of this Lease, are conditions of this Option. iii) Except for the provisions of this Lease granting an option or options to extend the term, all of the terms and conditions of this Lease except where specifically modified by this option shall apply. iv) This Option is personal to the original Lessee., and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and without the intention of thereafter assigning or sutaletting. v) The monthly rent for each month of the option period shall be calculated as follows, using the method(s) indicated below: Check Method(s) to be Used and Fill in Appropriately) m 1. Cost of Living Adjustment(s) (COLA) a. On (Fill in COLA Dates): July 1, 2017; July 1, 2013; July 1, 2019; July 1, 2020; July 1, 2021; July 1, 2022 the Base Rent shall be adjusted by the change, if any, from the Base Month specified below; in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select one): ^ CPI W (Urban Wage Earners and Gteriwl Workers) or m CPI U (All Urban Consumere), for (Fill in Urban Area): San Ctiegn All Items (1982-1984 = 106), herein referred to as "CPI". b. The monthly rent payable in accordance with paragraph A.La. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph t.5 of the attached Lease; shall be multiplied 6y a fraction the numerator of which shall be the CPI of the calendar month 2 months prior to the month(sj specified in paragraph A.La. above during which the adjustment ks to take effect; and the denominator of which shall be the CPI of the calendar month which is 2 months prior to (select one): ~ the first month of the term of this Lease as set forth in paragraph 1.3 ("Base Month") or ^ Fill in Other"Base Month"): The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any such new monthly rent be less than the rent payable for the month immediately preceding the rent adjustment, to no scans Tall any adjuatanent eKCaea two ~ercen~ (2%j ir, any g~cen year. c. In the event the complletion andlor publication of the CPI shad be transferred to any other governmental department or bureau or agency or shall be discontinued, then the index most nearly the same as the CPI shall be used to make such calculation. In the event that [he Parties cannot agree on such alternative index, then the matter shall be submitted for decision to the American Arbitration Association in acwrdance with the then rules of said Association and the decision of the arbitrators shall 6e binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties.. a-9ra-( i PAGE t OF 2 -~~~~ INITI INITIALS 42000 -AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OE-3-8fA0E Page 102 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda NOTICE: Unless specified otherwise herein, notice of any rental adjustments, other than Fixed Rental Adjustments, shall be made es specified in paragraph 23 of the Lease. C. BROKER'S FEE: The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance with paragraph 15 of the Lease or if applicable, paragraph 9 of the Sublease. NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 9p017. Telephone No. (213) 687-8777. Fax No.: (213) 687-8616. INITIALS X2000 - AtR COMMERCIAL REAL ESTATE ASSOCIATION PAGE 2 OF 2 INITIALS FORM 0E-3-Bf00E Page 103 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda IGHT OF FIRST REFUSAL TO PURCHASE STANDARD LEASE ADDENDUM Dated ~u,~e ~, au12 B~/8Rd Betweefl ~LeSSOr}City «f Chula Vista, a municipal chartered corporation of the State of California Lessee} ~~xrt}r Bay Community Services Address of Premises: 43~ F Sr reef Paragraph 53 rhula Vista, CH G1910 a) Lessor shall not, at any time prior to the expiration of the term of this Lease, or any extension thereof, sell the Premises. or any interest therein., withous first giving written notice thereof to Lessee, which nofice is hereinafter referred to as "Notice of Sele". b) The Notice of Sale shall include the exact and complete terms of the proposed sale and she{I have attached thereto a copy of the bona fide offer and counteroffer, if any, duky executed by both Lessor and the prospective purchaser. c) For a period of 12 cakendar days after receipt by Lessee of the Notice of Sale, Lessee shat! have the right to give written notice to Lessor of Lessee's exercise of Lessee's right to purchase the Premises, the interest therein proposed to be sold.. or the property of which the Premises are a part; on the same terms, phce and conditions as set forth in the Notice of Sale. In the event that Lessor does not receive written notice of Lessee's exercise of the right herein granted within said 12 day period, there shall be a conclusive presumption that Lessee has elected NOT to exercise Lessee's right hereunder; and Lessor may complete the sale to the prospective purchases on the same terms set forth in the Notice of Sale. d) In the event that Lessee declines to exercise its right of first refusal after receipt of the Notice of Sale, and.. thereafter, Lessor and the prospective purchaser modify by more than 5%, (p the sales price.. or (ii) the amount of doom payment, or if there is a material change in any seller financing offered, or in the event that the sale is not consummated within 180 days of the date of the Notiee of Sale; then Lessee's right of first refusal shall reapply to said transaction. e) In [he event that Lessee declines to exercise its right of first refusal after receipt of the Notiee of Sale, and.. [hereafter, the proposed transfer or sale is not consummated.. the Lessee's right of first refusal shalt apply to any subsequent transaction. If, however, said transfer or sale is, in fact, completed, then said right shall be extinguished and shall not apply to any subsequent transactions. f) Notwithstanding the above, this right of first refusal is intended to apply only to voluntary transfers involving third party transferees. This right of first refusal shall not., therefore, apply: where the Premises are taken by eminent domain or sold under threat of condemnation; to infra-family or infra-ownership transfers, to transfers by Lessor [o a trust created by Lessor, or, if Lessor is a trust, to transfers [o a trust beneficiary. g) NOTE: This right of first refusal cannot be exercised: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured. (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee); (Iii} during the time Lessee is in Hreach of this Lease, or (iv) in the avant that Lessee has been given 3 or more notices of Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the right of first refusal. NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilising the most current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 80D, Los Angeles, GA 90017. Telephone Na,(2t3)667-8777. Fax No.:(213)687-8616. INITIALS 2000 -AIR COMMERCIAL REAL ESTATE ASSOCIATION PAGE i OF 1 INITIALS FORM FRat-8106E Page 104 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda DDENDUM TO LEASE DATED JUNE 5, 2012, BY AND BETWEEN CITY OF CHULA VISTA, A MUNICIPAL CORPORATION OF THE STATE OF CALIFORNIA; AS LESSOR, AND SOUTH BAY COMMUNITY SERVICES, AS LESSEE, FOR THE PREMISES LOCATED AT 43Q F STREET, CHULA VISTA, CALIFORNIA 91910 54. SHARED USE OF CONFERENCE ROOM: Lessee shall allow the conference room on the north end of the building to be utilized by other civic organizations and city functions during Lessee's normal business hours when said conference room is not being used or needed by Lessee. Outside use of the conference room by other groups or agencies shall be scheduled in advance with Lessee. 55. NO FOOD DISTRIBUTION: Lessee shall not be allowed to operate their food distribution program at the Subject Premises. 56. EARLY TERMINATION: In the event that Lessee enters into any bona fide purchase agreement for the acquisition of real property to be used for Lessee's general operations, Lessee may terminate this Lease effective at any time fallowing the third anniversary of the Commencement Date, upon delivery of ninety 90) days prior written notice to Lessor of Lessee's intent to terminate this Lease and payment of a termination fee to Lessor equal to the unamortized portion of leasing commission previously paid by Lessor. 57. MODULAR BUILDINGS: Lessee shall be allowed to locate up to two modular buildings on the Premises for additional office/storage, subject to normal City of Chula Vista review and approval process. Any such modular buildings will be Lessee's property and must be removed at Lessee's expense upon termination of the Lease. Any damage caused by the installation andfor removal of the modular buildings shall be repaired at Lessee's expense. 58. AGREED USE: General administrative offices and health and human service programs including without limitation, classes, counseling, job development, assistance and training, family violence prevention, intervention and treatment services, mental health services, youth delinquency prevention and intervention, family self-sufficiency services, support groups, and such other services and related activities as Lessee may lawfully provide in furtherance of its health and human service programs and charitable missions. 59. NUISANGE: Determination by City Manager: City Manager determines upon the advice of the Chief of Police, that Tenant's activities at the Premises have created, contributed to, or indirectly resulted in, levels of crime or disorder at or around the Premises constituting a public nuisance or threat to the public's health, safety or welfare. LESSOR: CHULA VISTA, A MUNICIPAL CORPORATION OF THE STATE OF CALIFORNIA By: Date: ~ ~ ~ ~ ~-'' Name Printed: ~iS~~:KY~ ~~ Title: ~/~~(1i"` LEASE SOUTH BAY COMMUN TY SERV ES By: 'Date: / ' / C Kat n Lembo, CEO f;/ LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE GOMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPEGT TO THE PREMISES. P:\TRACYb4lrtorms\43Q F Street\Lease Addendum.tloc Page 105 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda EXHIBIT A 43Q F Street Chula Vista, CA 9191 Q 1i' i X11 ..r,-.: ~. r5'x10` ~ff'x G 1-'~' a i~l' x 15 a'x!l. T; I- - ~f9' :~ c.___ r-- l~'x,'`%'~1 ~r~s10' iy7 V\ _O. ry~ l ~ ~ ~(~' 1 y, , f~' 3' !Z,~~r~' z r ~t. .. x i7, `~,- ;,~r ~;-, 568-787-44 P'\TRACV1AiRorms\430 F Street\EzhibQ A -Site Pian.tlocx Page 106 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Voit REAL. ESTATE SEF~VlGES EXHIBIT B NOTICE TO OWNERS, BUYERS AND TENANTS REGARDING ENVIRONMENTAL MATTERS, AMERICANS WITH DISABILITIES ACT, FLOOD DISCLOSURE, ZONING/USE DISCLOSURE AND ALQUIST-PRIOLO SPECIAL EARTHQUAKE FAULT ZONING ACT ENVIRONMENTAL MATTERS It is essential that all parties to real estate transactions be aware of the health, liability and economic impact of environmental factors on real estate. Voit Real Estate Services does not conduct investigations or analyses of environmental matters and, accordingly, urges the parties to a real estate transaction to retain qualified environmental professionals to determine whether hazardous or toxic wastes or substances (such as asbestos, PCB's and other contaminants or petro-chemical products stores in underground tanks) or other undesirable materials or conditions are present at the property and, if so, whether any health danger or other liability exists. Such substances may have been used in the construction or operation of buildings or may be present as a result of previous activities at the property. Various laws and regulations have been enacted at the federal, state and local levels dealing with the use, storage, handling, removal, transport and disposal of toxic or hazardous wastes and substances. Depending upon past, current and proposed uses of the property, it may be prudent to retain an environmental expert to conduct a site investigation and/or building inspection. If hazardous or toxic substances exist or are contemplated to be used at the property, special governmental approvals or permits may be required. In addition, the cost of removal and disposal of such materials may be substantial. Consequently, legal counsel and technical experts should be consulted where these substances are or may be present. AMERICANS WITH DISABILITIES ACT Please be advised that, as an owner or tenant of real property, you may be subject to the Americans with Disabilities Act (the ADA), a Federal law codified at 42 USC Section 12101 et seq. Among other requirements of the ADA that could apply to your property, Title I11 of the ADA requires owners and tenants of "public accommodations" to remove barriers to access by disabled persons and provide auxiliary aids and services for hearing, vision or speech impaired persons by January 26, 1992. The regulations under Title III of the ADA are codified at 28 CFR Part 36. We recommend that you and your attorney review the ADA and the regulations, and, if appropriate, your proposed lease or purchase agreement, to determine if this law would apply to you, and the nature of the requirements. These are legal issues. Voit Real Estate Services cannot give you legal advice on these issues. FLOOD DISCLOSURE If the premises are located in a Federally Designated Flood Zone, the real and personal property of Lessee situated on or in the Premises is not protected by the hazard insurance policy for the property carried by Lessor. Lessee is responsible for investigating the Flood Zone status of the Premises and obtaining insurance to cover Lessee's property if it so desires. ZONINGIUSE DISCLOSURE Prior to executing a lease, Lessee is responsible for determining that the zoning applicable to the property and Premises allows Lessee to use the property for its intended use of business, and that all building codes, parking requirements, and other governmental requirements, improvements required, and permits necessary have been met or are available to Lessee. Voit Real Estate Services has made no representations, except in writing, if any, concerning the zoning and allowable use of the Premises and any requirements that may be imposed upon lessee by any governmental agency. If Lessee's use of the Premises requires a Use Permit or other permits from a governmental authority it could take several months to obtain same, and Lessee may still be responsible for the payment of rent and other charges whether or not such permits are ultimate{y obtained. ALOUIST-PRIOLO SPECIAL EARTHQUAKE FAULT ZONING ACT The property and Premises described above (check which box applies) ^ is; ^ is not; m may or may not be situated in an Earthquake Fault Zone as designated under the Alquist-Priolo Earthquake Fault Zoning Act, Sections 2621-2630 inclusive of the California Public Resources Cade; and, as such the construction of development on the property of any structure for human occupancy may be subject to the findings of a geologic report prepared by a geologist registered with the State of California, unless such report 'ts waived by the city or county under the terms of that Act.. No representations on this subject are made by Voit Real Estate Services, or its agents or employees and the Lessee/Purchaser is advised to make its own inquiry into this situation prior to entering into a lease or sale agreement. P:\TRAC1MirtormsW30 F StreetlNotice to Owners - Lessor_doc Page 1 of 2 Page 107 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda ait REAL ESTATE SERVICES By your signature below, you acknowledge that you have read and understand this disclosure and have received a copy: LESSOR: CITY OF GHULA VISTA, A MUNICIPAL CHARTERED CORPORATION OF THE STATE OF GALIFORNIA 1~ By: Date: ~ ~ ~ Y Name Printed: ~i~fP,/~~L- C^OX Title: /~i~~d.2__ LE EE: OUTH BAY COM NITY S VICES By: ~ Date: / ~ ~~ "~~ Kat ryn o, CEO P:ITRAC11AiriormaW30 FStreet\Notice to Ownera - Lessor.doc Page 2 of 2 Page 108 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE -TENANT LEASE -- GROSS This First Amendment ("First Amendment") to the Standard Industrial/Commercial Single - Tenant Lease -- Gross dated June 5, 2012 ("Lease") is entered into by and between the City of Chula Vista ("City" or "Lessor"), a chartered municipal corporation, and South Bay Community Services Lessee"), a California nonprofit public benefit corporation. Lessor and Lessee may be referred to herein collectively as the "parties" and individually as a "party". Recitals WHEREAS, Lessor is the owner of all interests in the real property and current improvements at the Premises (as this term is defined in the Lease); 2012; WHEREAS, Lessor and Lessee entered into the Lease for the Premises on or about June 5, WHEREAS, the Original Term of the Lease is set to expire on June 30, 2017; WHEREAS, section 47 of the Lease provides that the parties are permitted to modify the Lease by means of a writing executed by both parties; WHEREAS, Lessee has informed Lessor of its desire to remain a tenant at the Premises beyond the Original Term; WHEREAS, Lessee has further expressed a desire to design, deliver, and construct a facility upon the Premises which will consist of a fifteen thousand square foot (15,000 so office building and all of its component structures, improvements, installations, parts, and materials (collectively, the Facility") subject to all regulatory approval requirements and the terms and conditions herein; and WHEREAS, Lessor and Lessee desire to extend and amend the Lease on the terms and conditions provided herein. NOW THEREFORE, for good and valuable consideration, the adequacy of which the parties hereby acknowledge, the parties agree to amend the Lease as follows: Agreement 1. Extension of Original Term. Paragraph 1.3 of the Lease is amended and restated in its entirety as follows: Term: Eleven (11) years and 0 months ("Original Term") commencing on July 1, 2012 ("Commencement Date") and ending June 30, 2023 ("Expiration Date"). (See also Paragraph 3)." 2. Extension of Rent Adjustment for Original Term. Paragraph 51 (A)(I)(a) of the Lease is amended and restated in its entirety as follows: i i 160 2-20 _7-1 00 Page 109 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda On: July 12013; July 12014, July 12015; July 12016; July 12017; July 12018; July 12019 ; July 12020, July 12021; and July 12022 the Base Rent shall be adjusted by the change, if any, from the first month of the term of this Lease as set forth in paragraph 1.3 in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for CPI U (All Urban Consumers) for San Diego (All Items 1982-1984 = 100), herein referred to as "CPI"." 3. Option to Extend. Paragraph 52 (A) of the Lease is amended and restated in its entirety as follows: A. OPTION(S) TO EXTEND Lessor agrees to grants to Lessee the option to extend the term of this Lease for two 2) additional fifteen (1 S) year periods commencing when the prior term expires upon each and all of the following terms and conditions: i) Lessee fully and timely completes the Facility in strict accordance with this First Amendment. ii) In order to exercise an option to extend, Lessee must give written notice of such election to Lessor and Lessor must receive the same at least 6 but not more than 12 months prior to the date that the option period would commence time being of the essence. If proper notification of the exercise of an option is not given and/or received such option shall automatically expire. Options if there are more than one may only be exercised consecutively. iii) The provisions of paragraph 39 including those relating to Lessee's Default set forth in paragraph 39.4 of this Lease are conditions of this Option. iv) Except for the provisions of this Lease granting an option or options to extend the term, all of the terms and conditions of this Lease except where specifically modified by this option shall apply. v) This Option is personal to the original Lessee and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and without the intention of thereafter assigning or subletting. vi) The monthly rent for each month of the option period shall be calculated as follows using the method indicated below: I. Cost of Living Adjustment(s) (COLA) a. On: July 12023; July 12024; July 12025; July 12026; July 12027; July 12028; July 12029; July 12030; July 1 2031; July 1 2032; July 1 2033; July 1 2034; July 1 2035; July 1 2036; July 1 2037; July 1 2038; July 1 2039; July 1 2040; July 1 2041, July 1 2042, July 1 2043, July 12044, July 12045, July 12046, July 12047, July 12048, July 12049, July 12050; July 12051; July 12052 the Base Rent shall be adjusted by the change if any from the Base Month specified below in the Consumer Price Index of the Bureau of Labor Page 2 of 8 Page 110 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Statistics of the US Department of Labor for CPI U (All Urban Consumers) for San Diego (All Items 1982-1984 = 100) herein referred to as CPI. b. The monthly rent payable in accordance with paragraph A.I.a of this Addendum shall be calculated as follows the Base Rent set forth in paragraph 1.5 of the attacked Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2 months prior to the month(s) specified in paragraph A.I.a above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to the first month of the term of this Lease as set forth in paragraph 1.3 ("Base Month"). The sum so calculated shall constitute the new monthly rent hereunder but in no event shall any such new monthly rent be less than the rent payable for the month immediately preceding the rent adjustment. In no event shall any adjustment exceed two percent (2%) in any given year. c. In the event the completion and/or publication of the CPI shall be transferred to any other governmental department or bureau or agency or shall be discontinued then the index most nearly the same as the CPI shall be used to make such calculation In the event that he Parties cannot agree on such alternative index then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall 6e binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties." 4. Maintenance and Repair Obligations. 4.1 Effective upon the issuance of a certificate of occupancy for the Facility, Paragraph 7.1(d) of the Lease is deleted in its entirety and is no longer of any force or effect. 4.2 Effective upon the issuance of a certificate of occupancy for the Facility, Paragraph 7.2 of the Lease is amended and restated in its entirety as follows: Lessor's Obligations. It is intended by the Parties hereto that Lessor have no obligation in any manner whatsoever to repair and maintain the Premises. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this lease." 5. Facility. In consideration for and as a condition of entering into this First Amendment, Lessee agrees to exercise best efforts to construct, maintain, and occupy the Facility at the Premises at its sole cost and expense and subject to the terms and conditions below: 5.1 Ownership. The Facility shall be the sole property of Lessee, but also considered as a part of the Premises as defined in the Lease. Fee title in the Premises shall at all times Page 3 of 8 Page 111 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda remain in Lessor and nothing contained in this First Amendment shall be construed to allow or permit any of Lessee's interest in the Premises to ripen into a fee ownership interest of the Premises. 5.2 Construction/Re uglryApprovals. Lessee will exercise best efforts to fully design, construct, and complete the Facility, including but not limited to obtaining all necessary regulatory approvals and a certificate of occupancy, at its sole cost and expense, by no later than June 30, 2023. Lessee's failure to timely design, construct, and complete the Facility will prohibit Lessee from exercising an Option to Extend pursuant to Section 3 of this First Amendment but will not be considered a default of the Lease. 5.3 Compliance with Prevailing Wages. As the Facility will be wholly owned by Lessee, subject to removal from the Premises, and constructed and maintained without the use of public funds or assistance, the parties have initially determined that the construction of the Facility should not be subject to payment of prevailing wages. Notwithstanding the foregoing, Lessee acknowledges that the construction and/or maintenance of the Facility may be subject to prevailing wage requirements. Lessee agrees to strictly comply with and be responsible for all prevailing wage requirements as provided by any state or federal law or regulation. To the fullest extent permitted by law, Lessee further agrees to defend, indemnify, protect, and hold harmless, the City and its elected and appointed officers, agents, volunteers, and employees from and against any and all liability, claims, costs, expenses (including without limitation legal costs and attorneys' fees), and damages, arising from, connected with, incident to, or in any way attributable to a failure by Lessee, its employees, contractors, or agents to comply with any prevailing wage requirement of any state or federal law or regulation. Such failures may include but are not limited to a failure to post or provide required notices, a failure to keep required records or documents, or a failure to pay required wages. 5.4 Additional Access. If an agency with jurisdiction requires additional access facilities or improvements to be installed or maintained at the Premises as a result of the design, construction, maintenance, repair, occupation, or operation of the Facility, Lessee agrees to cause all such facilities and improvements to be installed and maintained at Lessee's sole cost and expense. 5.5 Maintenance and Repair. Lessee will maintain, repair, and operate the Facility in a clean and safe condition at Lessee's sole cost and expense. 5.6 Utility Improvements. Lessee will install and maintain all water, gas, heat, light, power, telephone, and other utility improvements and services for the Facility on the Premises at Lessee's sole cost and expense. 5.7 Insurance. In addition to other insurance requirements of the Lease, Lessee will procure and maintain all additional insurance required by Lessor as set forth in Exhibit A. 5.8 Taxes. Lessee will pay all real property, personal property, possessory interest, and other taxes assessed by reason of or due to the Facility directly to the applicable taxing authority. 5.9 Removal of Facility. Unless otherwise agreed to in writing prior to expiration or termination of the Lease, Lessee will remove the Facility from the Premises on or before the date of the expiration or termination of the Lease at Lessee's sole cost and expense. If Lessee fails to remove the Facility by the date of expiration or termination of the Lease, the City has the right but not obligation to remove the Facility and store it at an alternate location. Lessee will pay Lessor all actual and reasonable costs of such removal and storage. If the removal of the Facility results in damage to the Premises, Lessee will pay to repair such damage or pay Lessor for the actual costs incurred to repair such damage, at Lessor's option. 5.10 Restoration of Premises. After removal of the Facility from the Premises, Lessee will restore the Premises to the condition that existed prior to locating the Facility at the Premises. If Lessee fails to restore the Premises to the condition existing prior to locating the Facility at the Premises, Lessor has the right but not the obligation to cause the Premises to be restored to the condition that existed prior to locating the Facility at the Premises and Lessee will pay Lessor the actual costs incurred for such restoration. 5.11 Liens. Except as explicitly authorized in section 5.12 below, Lessee will keep the Premises free and clear from any and all liens in connection with any work performed, material Page 4 of 8 Page 112 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda furnished, equipment provided, or other obligations incurred by or for Lessee. Lessee will inform every contractor, subcontractor, equipment provider, and material supplier that intend to provide any work, service, equipment, or material to Lessee in connection with the Premises that the Premises is public property not subject to mechanics' liens or stop notices for services, equipment, or materials provided for Lessee. If Lessee does not cause the release of a mechanic's lien, stop notice, or other lien purporting to attach to the Premises within thirty (30) days after notice or discovery of the lien, the City will have the right, but not the obligation, to cause the same to be released by any means it deems proper in its sole discretion, including payment of the claim giving rise to such lien. Lessee will reimburse the City for all actual costs incurred in connection with any such lien (including reasonable attorneys' fees) within ten (10) days following receipt of the City's demand together with copies of invoices or other evidence to document the costs incurred. 5.12 Encumbrance. Lessee will not at any time encumber any of Lessor's interest in the real property of the Premises, including but not limited to Lessor's fee title, or any of Lessor's fixtures, structures, improvements, or other interests in the Premises. Lessee may, subject to the prior written consent by Lessor, encumber the Facility by means of mortgage or other security interest in order to finance the design, delivery, and/or construction of the Facility. If Lessee elects to encumber the Facility, the parties agree to cooperate to negotiate reasonable protections of the parties' respective interests in the Premises prior to Lessee entering into any such mortgage or security interest. Such reasonable protections must include but are not be limited to the following: i. That any encumbrance will not encumber any of Lessor's interest in the real property, including but not limited to Lessor's fee title, or any of Lessor's fixtures, structures, improvements, or other interests in the Premises; and ii. In the event that the Lessee at any time becomes in default under the mortgage or security instrument, that Lessor has the right but not the obligation to cure such default and Lessee will pay Lessor the actual costs incurred to cure the default. 5.13 Compliance With All Laws. Lessee will design, deliver, construct, maintain, repair, use, operate, and occupy the Facility in strict accordance with all local, state, and federal laws and regulations including but not limited to CEQA/NEPA, the American Disabilities Act (ADA), Clean Air Act of 1970, the Clean Water Act (33 USC 1368), Executive Order 11738, and Stormwater Management and Discharge Control Ordinance (Ord. No. 0-17988), Essential Services Building Seismic Safety Act, and SB 239 & 132, laws prohibiting discrimination, and laws pertaining to the City of Chula Vista, including its Charter, Municipal Code, and ordinances. Lessee warrants it is aware of such applicable laws and will strictly conform to said laws. 6. Right of First Offer. Lessee will not dispose of, sell, or agree to sell the Facility without first offering to sell it to Lessor. The word "sell" includes any transfer, conveyance, assignment, lease, hypothecation, or pledge of all or any portion of the Facility. 6.1 First Offer. Prior to Lessee entering into an agreement for the marketing of the Facility or otherwise selling or agreeing to sell the Facility, Lessee will offer in writing ("First Offer") to sell the Property to Lessor on the same terms and conditions that Lessee would then be willing to offer to a third party. The First Offer must, at a minimum, include the following information: (i) the purchase price; (ii) the method of payment of the purchase price; and (iii) the time and location for the close of escrow. 6.2 Acceptance Period. Lessor will have sixty (60) calendar days from the date of the First Offer to accept the First Offer ("Acceptance Period") by delivering to Lessee acceptance on or before 5:00 p.m. Pacific Standard Time on the last day of the Acceptance Period. If Lessee fails to accept the First Offer before the Acceptance Period ends, the First Offer will be deemed rejected. 6.3 ClosingPeriod. If Lessor accepts the First Offer, the parties will have thirty 30) calendar days following acceptance of the First Offer ("Closing Period") to consummate the purchase of the Facility pursuant to the terms and conditions of the First Offer. Page 5 of 8 Page 113 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 4 Counter Offer. If Lessor responds to the First Offer with anything other than an unequivocal, unconditional acceptance or rejection, the right of first offer will terminate and the response will be deemed an offer to purchase the Facility on the terms and conditions in the response Counter Offer"). Lessee will be entitled to accept or reject the Counter Offer. 7. Broker Fees. Notwithstanding any obligation of Lessor to make payments to Brokers for services rendered pursuant to the original Lease, Lessor has no further obligations to make any payments to Brokers and Lessee will be solely responsible for and make all payments to Brokers as necessitated by the parties entering into this First Amendment. 8. Clarification of "Premises". For the avoidance of doubt, the parties hereby agree that the term "Premises" under the Lease shall include all real property, buildings, parking facilities, and improvements currently located at 430 F Street, Chula Vista, California, 91911 and the Facility. 9. Shared Use of Conference Room. The parties agree that Paragraph 54 (Shared Use of Conference Room) of the Lease is deleted in its entirety and is no longer of any force or effect. 10. Parkin . For the avoidance of doubt, the parties agree that Lessee shall have exclusive access to parking facilities on the Premises. 11. Additional Breach. Failure to comply with any terms, conditions, or covenants of this First Amendment, shall constitute a material Breach under the Lease. 12. No Other Changes. This First Amendment incorporates only the changes identified above. No other changes to the Lease are contemplated or intended by this First Amendment. The remainder of the Lease shall remain unchanged and continue in full force and effect. The parties hereto have executed this First Amendment in Chula Vista, California effective as of June 30, 2017. Dated: , 2017 CITY O,F CHULA VISTA Attest: r Donna N 's, CityMerk as to Glen K 6ogins, City Attorney Page 6 of 8 Page 114 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda ated: //, a%- , 2017 SOUTH BAY COMMUNITY SERVICES Kn ZEOL Page 7 of 8 Page 115 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda EXHIBIT A ADDITIONAL INSURANCE REQUIREMENTS Builder's Risk (Course of Construction): Lessee will procure and maintain insurance utilizing an All Risk" (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. Page 8 of 8 Page 116 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda SECOND AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE -- GROSS This Second Amendment (“Second Amendment”) to the Standard Industrial/Commercial Single-Tenant Lease -- Gross dated June 5, 2012 (“Lease”) is entered into by and between the City of Chula Vista (“City” or “Lessor”), a chartered municipal corporation, and SBCS Corporation, formerly South Bay Community Services (“Lessee”), a California nonprofit corporation. Lessor and Lessee may be referred to herein collectively as the “parties” and individually as a “party”. Recitals WHEREAS, Lessor is the owner of all interests in the real property and current improvements at 430 F Street, Chula Vista, California (“Premises”); and WHEREAS, the parties entered into the Lease for the Premises dated June 5, 2012; and WHEREAS, the parties amended the Lease under that certain first amendment to the Lease effective June 30, 2017 (“First Amendment”); and WHEREAS, under the First Amendment, the parties extended the Lease term to expire on June 30, 2023 (“Expiration Date”), and authorized certain improvements to the Premises; and WHEREAS, Lessee has informed Lessor of its desire to continue to rent the Premises beyond the Expiration Date; and WHEREAS, Lessee agrees to vacate the Premises within 45 days following issuance of certificate of occupancy for Lessee’s new office building, located at 318 Fourth Avenue, Chula Vista, California (corner of Fourth Avenue and F Street), but no later than June 30, 2026; and WHEREAS, pursuant to the Lease, as amended by the First Amendment, the monthly Base Rent, effective as of April 1, 2025 is $5,990 and adjusted annually according to Paragraph 51 (A)(I)(a) of the Lease; and WHEREAS, the parties desire to extend and amend the Lease on the terms and conditions provided herein. NOW THEREFORE, for good and valuable consideration, the adequacy of which the parties hereby acknowledge, the parties agree to amend the Lease as follows: Amendment 1. Extension of Amended Term. Paragraph 1.3 of the Lease is deleted in its entirely and replaced with the following: “Term: Fourteen (14) years and 0 months (“Original Term”) commencing on July 1, 2012 (“Commencement Date”) and ending June 30, 2026 or 45 days after issuance of certificate of occupancy, whichever is earlier (“Expiration Date”) .” Page 117 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 2 of 4 2. Extension of Rent Adjustment for Original Term. Paragraph 51 (A)(I)(a) of the Lease is deleted in its entirely and replaced with the following: “On: July 1 2013; July 1 2014; July 1 2015; July 1 2016; July 1 2017; July 1 2018; July 1 2019 ; July 1 2020; July 1 2021; July 1 2022; July 1, 2023; July 1, 2024; and July 1, 2025 the Base Rent shall be adjusted by the change, if any, from the first month of the term of this Lease as set forth in paragraph 1.3 in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for CPI U (All Urban Consumers) for San Diego (All Items1982-1984 = 100), herein referred to as “CPI”.” 3. Option to Extend. Paragraph 52 (A) of the Lease is deleted in its entirety and replaced with the following. “A. NO OPTION TO EXTEND Lessee has no right to extend this Lease or retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease without the written consent of Lessor.” 4. No Right of Offer. Section 6 “Right of First Offer” of the First Amendment to Lease is deleted in its entirety and no longer has any force or effect. 5. Broker Fees. Notwithstanding any obligation of Lessor to make payments to Brokers for services rendered pursuant to the original Lease, Lessor has no further obligations to make any payments to Brokers and Lessee will be solely responsible for and make all payments to Brokers as necessitated by the parties entering into this Second Amendment. 6. Clarification of “Premises”. For the avoidance of doubt, the parties hereby agree that the term “Premises” under the Lease shall include all real property, buildings, parking facilities, and improvements currently located at 430 F Street, Chula Vista, California, 91911. 7. Parking. Lessee shall have exclusive access to parking facilities on the Premises during business hours, Monday to Friday, 7 a.m. to 5 p.m. The City reserves the right to use the Premises parking facilities for parking for public and/or City events outside of normal business hours and on weekends as needed. The City will notify Lessee of any scheduled events where overflow parking is likely. 8. Supersedes Prior Agreements. As of the effective date of this Second Amendment, the Lease shall supersede any and all other agreements between the parties related to all or any portion of the Premises, including without limitation that certain Property License Agreement dated March 28, 2023. 9. Additional Breach. Failure to comply with any terms, conditions, or covenants of the Lease as amended by this Second Amendment, shall constitute a material Breach under the Lease. 10. No Other Changes. This Second Amendment incorporates only the changes identified above. No other changes to the Lease are contemplated or intended by this Second Amendment. The remainder of the Lease shall remain unchanged and continue in full force and effect. Page 118 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 3 of 4 THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. Page 119 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 4 of 4 SIGNATURE PAGE TO SECOND AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE – GROSS The parties hereto have executed this Second Amendment in Chula Vista, California effective as of June 30, 2023. Dated: ___________________, 2025 CITY OF CHULA VISTA ______________________ Maria V. Kachadoorian, City Manager APPROVED AS TO FORM: __________________________ MARCO A. VERDUGO CITY ATTORNEY Dated: ___________________, 2025 SBCS CORPORATION ______________________ Kathryn Lembo, CEO Page 120 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda La Prensa San Diego Created: 31 Oct, 2024 Updated:01 Nov,2024 By Alberto Garcia Investigative Reporter CAROLINA who is really controlling you? Jesus Cardenas, along with his sister, Andrea, were both charge and convicted of two felonies each for fraudulently applying for and spending a $176,000 and for illegally filing for unemployment benefits in 2020 while they were both being paid to run campaigns Written Communications - PC Acosta - Received 3/26/25 Page 121 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda CAROLINA IS JESUS USING THE SAME PLAY BOOK HE USED TO GET NORA ELECTED? Written Communications - PC Acosta - Received 3/26/25 Page 122 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda VOTING FOR CAROLINA IN MY OPION IS VOTING FOR ANDREA I just cannot trust those who are associated with politician who were convicted Written Communications - PC Acosta - Received 3/26/25 Page 123 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Newly appointed Chula Vista council member has suspended business licenses, tax lien. •Alonso Gonzalez is sworn into the Chula Vista City Council on Tuesday after being appointed to represent District 3. •Adriana Heldiz/The San Diego Union-Tribune) Alonso Gonzalez, a real estate broker, also had property repossessed, DUI •BY TAMMY MURGAREPORTER •FEB. 5, 2023 5 AM PT •Alonso Gonzalez, a newly appointed Chula Vista City Council member, has had a string of business, personal and financial hardships that were not disclosed when he applied for the position. •According to public records, Gonzales has an outstanding tax debt, a conviction for driving under the influence and foreclosed property. State records also indicate that the licenses for two businesses in his name are suspended. •The 46-year-old real estate broker took the oath of office this week to fill the District 3 seat, but his background prevented him from receiving a unanimous City Council vote for his appointment. Written Communications - PC Acosta - Received 3/26/25 Page 124 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Written Communications - PC Acosta - Received 3/26/25 Page 125 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda At the time they defrauded the federal government, Andrea Cardenas was a Chula Vista City Council member and Jesus Cardenas was serving as Chief of Staff to San Diego City Councilman Stephen Whitburn. Despite the felony conviction, political campaigns continue to use Jesus Cardenas as a consultant. Although his Grassroots Resources company has been suspended for several years by the state for failing to file tax returns, Cardenas has created two new fictitious names to operate as a consultant. Impact Strategies and Impact Strategies Group were filed by Cardenas earlier this year Written Communications - PC Acosta - Received 3/26/25 Page 126 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Written Communications - PC Acosta - Received 3/26/25 Page 127 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Written Communications - PC Acosta - Received 3/26/25 Page 128 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Written Communications - PC Acosta - Received 3/26/25 Page 129 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Written Communications - PC Acosta - Received 3/26/25 Page 130 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Written Communications - PC Acosta - Received 3/26/25 Page 131 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Carolina Chavez l was a staff member to San Diego Councilman Stephen Whitburn where Jesus Cardenas was the Chief of Staff. Carolina How long have you been associated with the CARDENAS POLITICAL CARTEL tell me before you ask for my Vote. I know that you do not answer phone calls. , tell people do not bother calling you. https://podcasts.apple.com/us/podcast/ep-052-jesus-cardenas-political-strategist/id1148158250?i=1000500630030 listen learn and make your own conclusion! EP.052: Jesus Cardenas | Political Strategist Written Communications - PC Acosta - Received 3/27/25 Page 132 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Carolina is Jehon Espinoza once again running your campaign? •As La Prensa San Diego reported Councilwoman Cardenas in 2021 rented a home in West Chula Vista other person who lived at the home at the time was Jehoan Espinoza, a political consultant who has worked closely with Cardenas and last year ran the campaign of , Carolina Chavez, Written Communications - PC Acosta - Received 3/27/25 Page 133 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 134 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 135 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 136 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda v . 0 0 5 P a g e | 1 April 1, 2025 ITEM TITLE Code Update - Amend Accessory Dwelling Unit and Junior Accessory Dwelling Unit Regulations to Align with State Law Report Number: 25-0082 Location: No specific geographic location Department: Development Services G.C. § 84308 Regulations Apply: Yes Environmental Notice: The Project qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines Recommended Action Conduct the public hearing and place an ordinance on first reading amending Chula Vista Municipal Code Title 19 (Planning and Zoning) Sections 19.58.022 (Accessory Dwelling Units) and 19.58.023 (Junior Accessory Dwelling Units) (First Reading). SUMMARY This item proposes amendments to the Chula Vista Municipal Code (CVMC) to align regulations for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) with State Law. The amendments entirely remove the associated development standards, thereby deferring to State Government Code and any applicable State regulations for all applicable requirements. ENVIRONMENTAL REVIEW The Director of Development Services reviewed the proposed legislative action for compliance with th e 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 and modifications to the CVMC related to State law compliance and clarification of previously adopted text regarding ADUs and JADUs. The action of updating and modifying the CVMC with these changes will not result in a material intensification of uses or a change in development potential within the City above what already is permitted under State law and the existing land use and zoning policies of the CVMC that are being updated. Page 137 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 2 Based on an analysis of the nature and type of these changes to the CVMC, there is a certainty that there is no possibility that the amendments may have a significant effect on the environment. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On February 26, 2025, the Planning Commission considered the proposed CVMC amendments and voted 6- 0-0 to adopt Resolution No. 2025-01 (Attachment 1), recommending the City Council adopt an ordinance approving the amendments. The primary concerns from the Planning Commission were increased densities resulting from ADUs and multi-family buildings, public outreach for new regulations, and permit processing as it relates to both newly-adopted State law and our amended CVMC. All of these issues were addressed by Staff during the hearing. DISCUSSION Background The California Legislature has frequently amended laws governing ADUs and JADUs in recent years to promote housing production. These ongoing changes require local jurisdictions to regularly update their ordinances to remain in compliance with State law. Under Government Code Section 65852.2(a)(4), any local ordinance that does not conform to current State standards is deemed null and void. In such cases, the jurisdiction must apply State law directly until a compliant ordinance is adopted. Noncompliance can also expose municipalities to enforcement actions by the California Department of Housing and Community Development (HCD). The City of Chula Vista has made consistent efforts to align its ADU and JADU regulations with State requirements. However, the frequency and complexity of legislative updates make it increasingly difficult to maintain a local ordinance that remains compliant. To avoid the need for continual updates, reduce regulatory confusion, and ensure ongoing compliance, staff recommends repealing the City’s local ADU and JADU ordinances in their entirety and deferring to State law and applicable Government Code provisions. 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 California Political Reform Act (Cal. Gov’ t. Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current-year fiscal impact to the General Fund or the Development Services Fund as a result of this action. Costs associated with implementing and administering the ADU and JADU permit process are recovered through permit fee revenues. Page 138 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 3 ONGOING FISCAL IMPACT There is no ongoing fiscal impact to the General Fund or Development Services Fund as a result of this action. ATTACHMENTS 1 – Planning Commission Resolution No. 2025-01 Staff Contact: Chris Mallec, AICP, Senior Planner D. Todd Philips, Ed.D., Planning Manager Page 139 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda B - 1 ORDINANCE NO. _________ ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHULA VISTA MUNICIPAL CODE SECTIONS 19.58.022 (ACCESSORY DWELLING UNITS) AND 19.58.023 (JUNIOR ACCESSORY DWELLING UNITS) WHEREAS, on January 1, 2025, State of California Senate Bill (SB) 1211 established new standards for Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”); WHEREAS, Chula Vista Municipal Code (“CVMC”) Sections 19.58.022 (ADUs) and 19.58.023 (JADUs) are currently not in compliance with the newly-adopted SB 1211, and are required to be brought into compliance through the amendment process; and WHEREAS, State ADU and JADU law has been changed many times by the California State Legislature on a biannual basis to housing production throughout the state; and WHEREAS, Chula Vista must continually adopt new provisions or revise existing provisions to comply with State Law and avoid potential adverse enforcement action by the State’s Housing and Community Development Department (“HCD”); and WHEREAS, by modifying the CVMC to defer all ADU and JADU regulations to the State Government Code and any applicable State regulations, Chula Vista’s local regulations will remain in perpetual compliance with State Law helping the City to remain competitive in applying for planning and housing-related grants through HCD; and WHEREAS, the Director of Development Services reviewed the proposed legislative action for compliance with the California Environmental Quality Act (“CEQA”) and determined Project qualifies for an Exemption pursuant to Section 15061(b)(3) of the CEQA State Guidelines; and WHEREAS, City staff recommends that the City Council approve and adopt the Ordinance with the proposed repeal of CVMC Sections 19.58.022 and 19.58.023; and WHEREAS, the Planning Commission held a duly noticed public hearing on the subject Ordinance and voted 6-0 to adopt Resolution No. 2025-01 and thereby recommends that the City Council adopt the Ordinance; 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; and WHEREAS, after review and consideration of the Planning Commission Resolution No. 2025-01, and the Staff Report and related materials for this matter, the hearing was held to consider said CVMC amendments and Ordinance at the time and place as advertised in the Council Chambers, 276 Fourth Avenue, before the City Council and the hearing was thereafter closed. Page 140 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda B - 2 NOW THEREFORE the City Council of the City of Chula Vista does hereby find and ordain as follows: 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 and modifications to the CVMC related to State Law compliance and clarification of previously adopted text, regarding ADUs and JADUs. The action of updating and modifying the CVMC with these changes will not result in a material intensification of uses or a change in development potential within the City above what already is permitted under State Law and 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 changes to the CVMC, there is a certainty that there is no possibility that the amendments may have a significant effect on the environment. Section I. The CVMC is hereby amended to fully repeal in their entirety, Sections 19.58.022 (Accessory Dwelling Units) and 19.58.023 (Junior Accessory Dwelling Units). 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 (30th) 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. Page 141 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda B - 3 Presented By: Approved as to form by: Robert A. Vacchi Marco A. Verdugo Interim Director of Development Services City Attorney Page 142 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda RESOLUTION NO. 2025-01 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION REPEALING CHULA VISTA MUNICIPAL CODE SECTIONS 19.58.022 (ACCESSORY DWELLING UNITS) AND 19.58.023 (JUNIOR ACCESSORY DWELLING UNITS) WHEREAS, on January 1, 2025, State of California Senate Bill (SB) 1211 established the latest round of new standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, Chula Vista Municipal Code (CVMC) Sections 19.58.022 (ADUs) and 19.58.023 (JADUs) are currently not in compliance with the newly-adopted SB 1211, and are required to be brought into compliance through the amendment process; and WHEREAS, State ADU and JADU law has been changed many times by the California State Legislature on a biannual basis to help further streamline and increase unit development throughout the State; and WHEREAS, Chula Vista has to continually adopt new provisions or revise existing provisions to comply with ever-changing State Law and avoid potential adverse enforcement action by the State’s Housing and Community Development Department (HCD); and WHEREAS, by modifying the CVMC to defer all ADU and JADU regulations to the State Government Code and any applicable State regulations, Chula Vista’s local regulations will remain in perpetual compliance with State Law helping the City to remain competitive in applying for planning and housing-related grants through HCD; 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 and modifications to the CVMC related to State Law compliance and clarification of previously adopted text, regarding ADUs and JADUs. The action of updating and modifying the CVMC with these changes will not result in a material intensification of uses or a change in development potential within the City above what already is permitted under State Law and 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 changes to the CVMC, there is a certainty that there is no possibility that the amendments may have a significant effect on the environment; and WHEREAS, City staff recommends that the Planning Commission approve the proposed removal of CVMC Sections 19.58.022 and 19.58.023; and Docusign Envelope ID: 38D90A3C-EF94-4BF4-92ED-9137855C36D6 Page 143 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Resolution No. 2025-01 Page No. 2 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, after review and consideration of the Staff Report and related materials for this matter, the Planning Commission held a duly noticed public hearing to consider said CVMC 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. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Chula Vista hereby recommends the City Council of the City of Chula Vista find that the proposed amendments to the CVMC identified in this Resolution qualifies for the “common sense” exemption under State CEQA Guidelines Section 15061(b)(3). The action involves updates and modifications to the CVMC relating to State Law compliance and clarification of previously adopted text. The action of updating and modifying the CVMC with these changes will not result in a material intensification of uses or a change in development potential within the City above what already is permitted under the existing State Law and land use and zoning policies of the CVMC that are being updated. Based on an analysis of the nature and type of these changes to the CVMC, there is a certainty that there is no possibility that the amendments may have a significant effect on the environment. BE IT FURTHER RESOLVED that the City of Chula Vista Planning Commission hereby recommends that the City Council of the City of Chula Vista adopt the proposed ordinance repealing CVMC Sections 19.58.022 and 19.58.023, related to State Law compliance and clarification of previously-adopted text, regarding ADUs and JADUs. BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the City Council . SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 38D90A3C-EF94-4BF4-92ED-9137855C36D6 Page 144 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda esolution No. 2025-01 Page No. 3 Presented by Approved as to form by Robert A. Vacchi for Marco A. Verdugo Interim Director of Development Services City Attorney PASSED, APPROVED, and ADOPTED by the Planning Commission of the City of Chula Vista, California, this 26th day of February 2025, by the following vote: AYES: Commissioners: Burroughs, Combs, Felber Leal, Sanfilippo, and De La Rosa NOES: Commissioners: None ABSENT: Commissioners: Torres Michael De La Rosa, Chair ATTEST: Mariluz Zepeda, Deputy City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Mariluz Zepeda, Deputy City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2025-01 was duly passed, approved, and adopted by the Planning Commission at a regular meeting of the Planning Commission held on the 26th of February 2025. Executed this 26th day of February 2025. Mariluz Zepeda, Deputy City Clerk Docusign Envelope ID: 38D90A3C-EF94-4BF4-92ED-9137855C36D6 Page 145 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Accessory Dwelling Units & Junior Accessory Dwelling Units 1 City Council Item 7.1 April 1, 2025 Page 146 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda State Law Compliance •State changes require local municipalities to continually update their ADU ordinances to align with State Law. - Government Code Section 65852.2(a)(4) •State ADU and JADU laws have frequently been amended to support housing development. - Continuous compliance or risk of adverse enforcement action from HCD. •Repealing CVMC 19.58.022 (ADU) and 19.58.023 (JADU) in their entirety will avoid the continuous need to update the CVMC and will ensure compliance by deferring to the California Government Code and other relevant regulations. Page 147 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Public Participation Development Oversight Committee •January 21, 2025 – no comments. Planning Commission •February 26, 2025 – 6-0-0 approval for the proposed Amendments. Page 148 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda RECOMMENDATION Adopt an Ordinance repealing, in their entirety, Chula Vista Municipal Code Sections 19.58.022 (ADU) and 19.58.023 (JADU). Page 149 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda v . 0 0 5 P a g e | 1 April 1, 2025 ITEM TITLE Legislative Platform: Approve the 2025-2026 Legislative Platform Report Number: 25-0070 Location: No specific geographic location Department: City Manager G.C. § 84308 Regulations Apply: 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. 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 the 2025-2026 Legislative Platform. SUMMARY The City coordinates and implements its legislative program with the assistance of Nielsen, Merksamer, Parrinello, Gross & Leoni, LLP, a professional advocacy firm in Sacramento to engage at the state level on legislative priorities and policies that advance City interests. The City’s Legislative Platform provides a foundation for the legislative program and serves as a framework to help Chula Vista engage and collaborate to advance its interests with California po licy makers, agency representatives, industry leaders and others (the “Legislative Platform”). The Legislative Platform is reviewed and updated periodically to ensure that City staff members have the direction needed to respond to legislative proposals in accordance with the City Council’s priorities and policy preferences. The 2025-2026 Legislative Platform has been updated to reflect advocacy efforts, accomplishments from the previous year and includes new topics. Page 150 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 2 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION In August of 2021, the City Council approved an agreement with Nielsen Merksamer Parrinello Gross & Leoni, LLP (Nielsen Merksamer) to perform State Legislative Advocacy Services and assist with implementation of the City’s Legislative Program (the “Legislative Program”). The Legislative Platform provides a foundation for the Legislative Program and serves as a framework to help Chula Vista engage and collaborate to advance its interests with California policy makers, agency representatives, industry leaders and others. The City Manager implements the Legislative Platform that is reviewed and approved by City Council. The Platform is updated periodically to ensure that City staff members have the direction needed to respond to legislative proposals in accordance with the City Council's priorities and preferences. Items covered by the Legislative Platform can be acted upon quickly by the Mayor, Deputy Mayor or City Manager in order to respond to measures that might affect City operations, revenue resources, and other measures. Measures which are not covered by the Legislative Platform, but which are considered sufficiently significant to merit a response from the City, can be brought before the City Council for consideration and direction. 2024-2025 Legislative Session The second half of the 2023-2024 Legislative Session wrapped up in December 2024 and of the nearly 2,200 bills introduced, Governor Newsom signed 1,011. The City of Chula Vista was active and engaged on several legislative efforts, including AB 2783, SB 99, SB 549, SB 1178 and SJR 18 (see bill outcomes below). AB 2783 (Alvarez): San Diego Unified Port District City Position: Support Outcome: Did not pass SB 99 (Umberg): Law enforcement agencies: military equipment City Position: Oppose unless Amended Outcome: Did not pass SB 549 (Newman): Gaming: Tribal Nations Access to Justice Act City Position: Oppose Outcome: Signed by Governor SB 1178 (Padilla): California Water Quality and Public Health Protection Act City Position: Support Outcome: Did not pass. Page 151 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 3 SJR 18 (Padilla): Tijuana River: pollution City Position: Support Outcome: Passed Summary of Changes to Legislative Platform In the coming legislative year, we are continuing to prioritize critical infrastructure at rail crossings along the I-5 corridor and on the University-Innovation District, removal of toll-only operations of the SR-125, expanded parkland in western Chula Vista and supporting the continued redevelopment of Chula Vista’s Bayfront. Additionally, the following are new position statements that are recommended to be added to reflect current, ongoing issues and/or areas of concern. As a reminder, categories of policy position statements are broad and are not intended to be all-inclusive. They are intended to be used as a reference tool and guideline for the City’s advocacy efforts. Community Services  Support funding efforts to increase park maintenance staffing that meets national standards.  Support legislation and funding in support of spaying or neutering and/or microchip identification of animals. Education and Economic Development  Support legislation that provides funding for innovative approaches to workforce development for in-demand employment sectors.  Support legislation that provides resources to assist tourism industry businesses and creative workers, including those in convention centers, hospitality, lodging, and special events.  Support legislation and funding opportunities for athletic facility upgrades (i.e., Chula Vista Elite Athlete Training Center) in preparation for the 2028 Olympics. Environmental Quality  Support legislation that requires manufacturers of products containing hazardous materials to adopt financial responsibility for the proper management and disposal of their products sold or distributed in California, including collection, transportation, and recycling.  Support legislation and programs regarding the development of a statewide Building Performance Standard (BPS) (SB 48, the Building Energy Savings Act) to manage energy usage and reduce greenhouse gas emissions.  Support efforts to expedite disbursement of Proposition 4 (Safe Drinking Water, Wildfire Prevention, and Protecting Communities and Natural Lands From Climate Risks) funds to local governments. Housing and Homeless Services  Support the development of affordable student and faculty housing across higher education segments and associated financing. Page 152 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda P a g e | 4  Support legislation and administrative actions that would result in a sustainable and consistent source of funding for homelessness programs including removal of encampments in public right-of- way. Public Safety  Support legislation that encourages home hardening efforts and reduction of hazardous fuels and recognizes these measures through lower insurance premiums. Transportation, Telecommunication and Public Works  Support legislation to enhance and promote safe, walkable neighborhoods. 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 City Council previously approved an agreement with Nielsen, Merksamer Parrinello, Gross & Leoni, LLP (Resolution 2021-147) to implement the Legislative Platform. City Council further authorized the City Manager to execute up to four one-year optional extensions, for a total amount not to exceed $400,000. The City Manager has extended the agreement for the current fiscal year pursuant to this authority. All associated consultant costs are included in the current fiscal year 2024-25 budget. ONGOING FISCAL IMPACT Future expenditures for legislative advocacy services will be included as part of the budget process in subsequent years. ATTACHMENTS 1. 2025-2026 Legislative Platform Staff Contact: Adrianna Relph, Special Projects & Legislative Manager, City Manager’s Office Page 153 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda RESOLUTION NO. ________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE 2025-2026 LEGISLATIVE PLATFORM WHEREAS, the Legislative Platform (Platform) provides a foundation for the City of Chula Vista Legislative Program and serves as a framework to help Chula Vista engage and collaborate to advance its interests with California policy makers, agency representatives, industry leaders and others; and WHEREAS, the Platform is reviewed and updated periodically to ensure that City staff have the direction needed to respond to legislative proposals in accordance with the City Council's priorities and preferences; and WHEREAS, items covered by the Platform can be acted upon quickly by the Mayor, Deputy Mayor or City Manager in order to respond to issues or proposed legislation that could affect City operations, revenue resources, and other measures; and WHEREAS, measures which are not covered by the Platform but which are considered sufficiently significant to merit a response from the City, can be brought before the City Council for consideration and direction. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the 2025-2026 Legislative Platform, a copy of which shall be kept on file in the Office of the City Clerk and authorizes the Mayor, Deputy Mayor, and the City Manager to respond to proposed legislation in accordance with the Legislative Platform. Presented by Approved as to form by Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney Page 154 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda L e g i s l a t i v ePlatform 2 0 2 5 -2 0 2 6 Page 155 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Contents Legislative Advocacy Guidelines ............................................................................................................... 1 Guiding Principles of Legislative Platform ................................................................................................ 4 2025-2026 Legislative Priorities ................................................................................................................ 5 2025-2026 Policy Position Statements ..................................................................................................... 7 Page 156 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 1 | P a g e Overview of the City of Chula Vista Incorporated in 1911, Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. It is the second largest city in San Diego County with a population of 278,247 and boasts more than 52 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. The City continues to enjoy tremendous growth and is posed for further economic expansion. The cornerstones of Chula Vista’s economic expansion is anchored between the 535-acre Chula Vista Bayfront redevelopment and University-Innovation District. Construction is well underway on a world- class waterfront resort and convention center- Gaylord Pacific with other amenities such as parks and residential housing also advancing. Plans are moving forward on the 375-acre University and Innovation District in the eastern section of the city which will establish a four-year university and an innovation district that will act as a regional economic engine to make Chula Vista and the South Bay a global hub for cinematic arts, green technology, and building a binational economy. This Legislative Platform provides a foundation for the City of Chula Vista Legislative Program to help Chula Vista advance its interests with California policy makers, agency representatives, industry leaders and others. This platform also is intended to be a living document that will be updated periodically as circumstances and goals change but the foundation will focus on efforts to enhance our city and the quality of life for our residents. Legislative Advocacy Guidelines The purpose of the Legislative Advocacy Guidelines is to describe the City’s internal procedures related to federal, state, and local advocacy. Through the procedures described, potentially impactful federal, state, and local legislation is identified, analyzed, tracked, and the City’s position is communicated to legislators. Coordination of the Legislative Program Legislation and issues of interest are brought to the City’s attention through several means: League of California Cities, National League of Cities, Councilmembers, legislators, City staff, community members, and professional or governmental organizations. All legislation or issues of interest should be referred to the City Manager’s Office for analysis. The City Manager’s Office, in consultation with City staff and legislative consultant, will review the proposed legislation, and determine the nature and extent of its potential impact on the city and develop an appropriate City response. Action can then proceed in either of two ways: Page 157 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 2 | P a g e 1. If the Council has previously adopted a position on the legislation through the existing Legislative Platform, the City Manager will coordinate and implement appropriate response. Council will be notified and kept updated on progress and issues. 2. If the legislation is not addressed by the existing Legislative Platform or by Council direction, the proposed legislation will be referred to Council for direction. Staff will place the item on a City Council agenda, including a specific bill number, if any, an analysis of the item, and a recommendation if warranted, for Council deliberation. Staff will follow the direction from Council related to the specific item. The Role of the Mayor and City Council The Mayor and City Council has ultimate responsibility for determining the City’s position on legislative issues. The Council's specific responsibilities include: 1. Establish legislative priorities. 2. Meet with the City's state and federal legislative advocates as needed. 3. Work with external entities on issues of shared policy concerns. 4. Determine positions on resolutions proposed for adoption by the League of California Cities, the National League of Cities, and similar regional entities, as requested. 5. Assume an active advocacy role with legislators on behalf of the City. If travel is required, such travel will be consistent with current City travel policies. The Role of the City Manager The City Manager implements and coordinates the City's Legislative Program. The City Manager may designate a legislative liaison to assist with coordinating the Legislative Program. The responsibilities and activities of the City Manager include: 1. Ensuring alignment of city actions on legislation with the City’s Legislative Platform. 2. Coordinating contacts and communications with legislators and their staff. 3. With departmental assistance, evaluating proposed legislation that may affect the City. 4. Disseminating information on public policy items of interest to City departments. 5. Directing and overseeing the City’s lobbyists, including setting priorities for action that are consistent with City Council direction. 6. Preparing advocacy letters expressing the City’s position on legislation that is consistent with adopted platform. The Mayor, Deputy Mayor or City Manager may sign advocacy letters on behalf of the City. Copies of the communication will be distributed to the Mayor and City Council. 7. Serving, as needed, as the liaison to stakeholder groups, legislative offices, and local jurisdictions concerning legislative activities. Page 158 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 3 | P a g e 8. Coordinating, briefing, and providing support to Mayor and City Council members for visits with state and/or federal legislators, as needed. The Role of City Departments City Department participation is essential to the success of the Legislative Program. Departmental employees can provide technical assistance and unique insight into issues potentially impacting the City. Responsibilities of the departments include, but are not limited to: 1. Informing the City Manager, or designee, of policy issues of importance to the City and any specific bills that may impact the department 2. Designating key contacts within the department or division who are responsible for evaluating legislation and/or assisting with legislative analysis and advocacy letters 3. Suggesting organizations, individuals, publications, and/or legislators who may be partners in advocating the City's position on certain legislation Signatures on Legislative Communication Letters and other communications expressing the City's position will customarily bear the signature of the Mayor, Deputy Mayor or City Manager. In order to keep the Council and others informed of all City communication on legislation, copies of the letters will be distributed to the Mayor and City Council. Communication With Elected Officials From time to time, members of the City Council may meet with the City’s local, state, and/or federal representatives. These meetings are an important component of building legislative relationships and sharing issues of significance to Chula Vista. Any meetings or communication with local, state, or federal elected officials must be done in a coordinated way to ensure conformity with the approved Legislative Platform, consistency of messaging, accurate information and record keeping, and sharing of resources. Therefore, as a matter of best practice, any communication with a local, state, or federal elected official or legislative staff regarding the City’s Legislative Platform should be coordinated through the City Manager. Advocacy Methods Drafting position letters is one advocacy tool, best used in conjunction with others. The Mayor, City Council, City Manager, and lobbyists may use any, or a combination of the below additional advocacy methods: 1. Calls to policymakers, their staff, or legislative committee staff 2. Meeting with legislators and their staff, stakeholders, and other groups active on the same issue or bill 3. Testifying at a committee hearing regarding the City’s position and/or concerns 4. Building coalitions and partnerships with entities that advance the Legislative Program Page 159 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 4 | P a g e Guiding Principles of Legislative Platform The Legislative Platform is a tool to protect, promote, and guide our City’s interests on priority issues and legislative/regulatory matters that may impact the City at the state and federal level. The guiding principles and broad policy statements allow City staff and legislative advocates to address legislative and regulatory issues in a timely and directed manner, without precluding City Council consideration of additional legislative matters arising throughout the year. With the continued growth of the City and planned development in the future, the City’s Legislative Platform is aimed at securing legislative policies and resources that will help the City manage this growth, fund critical infrastructure needs, keep the City safe, and maintain and enhance quality-of-life. 1) Maintain Local Control • Support efforts that preserve and protect our local authority to enact policy pertaining to local affairs. Oppose measures that seek to preempt local control without the concurrence of the City. 2) Promote Fiscal Responsibility • Support efforts that promote fiscal stability, predictability, and financial independence. Support efforts that preserve and promote the City’s revenue base. Oppose efforts that mandate costs with no guarantee of local reimbursement or offsetting benefits, or that shift local funds to the county, state or federal government without offsetting benefits. 3) Promote Economic Development • Support efforts that provide local governments with the tools necessary to bolster economic development and efforts streamlining initiatives that would enhance our ability to attract and retain businesses as well as encourage business expansion and job retention. 4) Support Funding Opportunities • Support efforts that allow the City to compete for its fair share of regional, state and federal funding including competitive grants and other funding programs. Support efforts that promote dedicated funding streams at the regional, state and federal levels allowing our City to maximize local revenues, offset and leverage capital expenditures, and maintain our goals and standards. Page 160 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 5 | P a g e 2025-2026 Legislative Priorities 1. Assistance in obtaining State and/or Federal funds for Grade Separations at major railroad/transit crossings. With construction almost complete on the Gaylord Pacific Resort and Convention Center and the anticipated increase in visitors and residents, mobility and the flow of people and goods to and from Chula Vista is becoming increasingly critical. Because of this, it is essential that we continue to expand and increase frequency of our public transit system. To do so, grade separations along the Blue Line Trolley are urgently needed at Palomar Street, F Street, H Street, and E Street. Palomar Street has been identified by SANDAG as vitally needed to reduce congestion in the western part of Chula Vista and was ranked in the top two most urgently needed grade separations within the entire MTS trolley system. The City already has invested over $3 million for planning and design of the Palomar Street grade separation project. In 2023, SANDAG was awarded $21.5 million through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) federal program which will fund right-of-way acquisitions and utilities relocation. An additional $128 million in funding is needed to begin construction and complete the project. 2. Secure support and funding for the University-Innovation District and associated infrastructure needed. The City is actively engaged in planning efforts on the University-Innovation District related to the infrastructure needed to make the site shovel-ready. A feasibility study is currently underway on an initial phase of development on about 20-30 acres of the 383-acre site. The City will continue working with state legislators and other stakeholders as we continue to pursue support and funding mechanisms necessary to construct infrastructure improvements, prepare for a university partner and protect this key City asset. 3. Secure support and agreement with the State and the San Diego Association of Governments (SANDAG) to eliminate the toll-only operation of State Route 125. During the 2021-2022 Legislative session, Senator Ben Hueso secured $20 million for SANDAG to dedicate to the outstanding debt on the State Route 125 (SR-125) toll road, or South Bay Expressway (SBX). As the only tolled freeway in San Diego County, SBX toll road operations make it difficult to attract and retain employees and disproportionally affects lower income workers in the South Bay. Elimination of toll- only operations on the SBX will incentivize businesses to locate in Chula Vista and the South Bay region, an area long neglected. Early retirement of the SBX toll facility debt also will alleviate transportation congestion on the region’s freeways by more fully utilizing existing capacity along South Bay freeways and arterials during high commute times and reduce regional vehicle miles traveled (VMT) with the creation of employment centers in the surrounding South Bay region. Staff will continue to work with SANDAG, state agencies like Caltrans, and other stakeholders to achieve elimination of debt by as soon as 2027 and remove toll-only operations on the SBX. Page 161 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 6 | P a g e 4. Promote the ongoing development on the Chula Vista Bayfront including, but not limited to, creation and funding of open space, parks, and business development. Construction is almost complete on the Gaylord Pacific Resort and Convention Center, a catalyst project for the redevelopment of the 535-acre Chula Vista Bayfront. As envisioned in the Bayfront Master Plan, public access is a cornerstone of the development and that includes open space and new parks. The City will continue to seek funding opportunities to bring residents and visitors outdoor spaces to enjoy our Bayfront as well as preserve existing park access and uses. Also important to the sustainability of the project is the creation of employment opportunities through the development of new businesses and expansion of existing businesses. Within the Bayfront masterplan area, Chula Vista has one long-established cardroom, Seven Mile Casino. Seven Mile contributes substantially to the local economy by providing jobs and generating hundreds of thousands of dollars in annual license revenues for the City. As Seven Mile continues to explore table growth to expand their business and redevelop their properties, the City will advocate for the ability of local governments to authorize existing licensed cardrooms to expand the number of tables operated. 5. Secure state funding to pursue development and redevelopment of park spaces in areas in need of additional parkland in western Chula Vista. During recent community engagement opportunities, the need for additional park space and recreational amenities in the more urban, western portion of the City has been highlighted as a pressing need. State funding would allow the City to pursue planning, design and construction of additional parkland and recreational opportunities as expressed by residents in Chula Vista. Page 162 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 7 | P a g e 2025-2026 Policy Position Statements The following categories of policy position statements are broad and are not intended to be all- inclusive. They are intended to be used as a reference tool and guideline for the City’s advocacy efforts. Administrative Services General Area of Review: Elections, Ralph M. Brown Act, Public Records Act, Political Reform Act, conflict of interest, insurance, tort reform and open and transparent government. • Support legislation to allow alternative methods of meeting public notice requirements and enhancing them with cost effective, innovative, user friendly methods of communication. • Support efforts to improve liability protection for governmental agencies and their personnel, minimize governmental exposure to frivolous lawsuits, and create policies that allow cities to equitably manage risks in providing services and maintaining city facilities. • Support legislation and policies that clarify new conflict of interest and reporting requirements for elected officials. • Support legislative efforts and funding for voter outreach, education, and resources to instill confidence in our electoral process. • Support funding for ethics and conflict of interest training for officials. • Support legislation that enhances the public’s right to access records while considering the fiscal and operational constraints of municipalities. Community Services General Area of Review: Parks, recreation, libraries, cultural arts, youth, community and human services programs. • Support funding efforts to increase park maintenance staffing that meets national standards. • Support funding efforts to construct or renovate parks and recreation facilities in aging/under resourced areas of the city. • Support park bond measures that provide per capita and competitive grants for park and recreation facility development and renovation. • Support funding for after-school art and recreational programs promoting the arts and physical exercise. • Support funding for access opportunities for all residents to physical activity, proper nutrition and healthy lifestyle options. • Support funding efforts to connect libraries to the same statewide, high-speed, broadband backbone for the K-12 system, UC, CSU and community colleges. Page 163 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 8 | P a g e • Support fully funding the California Public Library Fund and eliminate financial penalties to municipal libraries experiencing budget reductions. • Guarantee libraries the largest possible discount in rates for telecommunication services, internal connections, and Internet access. • Support library bond measures that provide per capita and competitive grants for library facility construction and renovation. • Support efforts to fund after-school library programs to provide safe options for students to study and engage in activities during critical afternoon hours. • Support legislation that prohibits discrimination based on race, ethnicity, national origin, religion, gender, sexual orientation, gender identity, age, disability, or immigration status. • Support legislation and measures that enhance overall quality, affordability, and accessibility to childcare for all families. • Support legislation and funding in support of spaying or neutering and/or microchip identification of animals. Education and Economic Development General Area of Review: Education, innovation, employment creation, business attraction and retention and other efforts related to economic development. • Support legislative efforts to assist our city to attract businesses and industry that will advance responsible Economic Development to strengthen Chula Vista’s position as a national leader in embracing new technologies and environmental innovation. • Secure legislative support and funding from the State of California to continue the development of Chula Vista’s University-Innovation District. • Promote local purchasing, hiring and workforce training that create quality career opportunities and living wages for the local workforce. • Provide startup funding for economic development programs/partnerships. • Fund extending advanced telecommunications, smart grid energy, sustainable water supply and transportation infrastructure that helps develop quality jobs in under resourced communities. • Promote opportunities for public art funding and encourage programs that tie arts and culture to economic development. • Strengthen and/or add tools to promote redevelopment of economically distressed areas. • Support legislation that would provide financial incentives and opportunities for filming locally. • Support legislation that would increase access to wealth and/or improved living standards that promotes and sustains diversity, innovation, competition, and entrepreneurship. • Support measures that expand youth opportunity including early childhood education, K-12 extracurricular activities, youth diversion programs, mental health programs, and work-based learning programs. • Support legislation that provides funding for innovative approaches to workforce development for in-demand employment sectors. Page 164 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 9 | P a g e • Support legislation that provides resources to assist tourism industry businesses and creative workers, including those in convention centers, hospitality, lodging, and special events. • Support legislation and funding opportunities for athletic facility upgrades (i.e., Chula Vista Elite Athlete Training Center) in preparation for the 2028 Olympics. Employee Relations General Area of Review: Labor relations, employee relations and other matters related to human resources. • Support efforts to protect and enhance cities’ ability to establish conditions of employment, including hours, wages, benefits, the meet-and-confer process, appeal procedures and management rights. • Support efforts to reform the California Workers’ Compensation Program to reduce public costs. • Oppose efforts for mandated binding arbitration in public employee disputes. Environmental Quality General Area of Review: Air, water supply and water quality, climate change, clean energy, California Environmental Quality Act (CEQA), integrated waste management, hazardous materials, coastal issues, and utilities. • Support programs and rate structures that expand access to solar and other clean energy technologies, particularly for renters and other under resourced community members. • Support programs that provide incentives or other support for energy and water saving upgrades or clean energy and zero emission technologies. • Support legislative efforts to strengthen San Diego Community Power, the City’s Community Choice Aggregation (CCA) program, to provide more affordable and clean electricity options. • Create new and sustainable funding opportunities to support local habitat preservation, water conservation, water reuse and recycling efforts. • Oppose new leases for oil/gas development in state-owned coastal waters off San Diego County. • Oppose restrictions on local jurisdictions’ authority and ability to adopt environmental policies and codes exceeding state or federal standards. • Reinforce local control of telecommunications, energy, and water services through franchise agreements or other mechanisms. Page 165 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 10 | P a g e • Support reauthorization of the California Public Utilities Commission (CPUC) Public Goods Charge, and legislation that provides local funding to complement environmental and economic sustainability. • Clean up Digital Infrastructure and Video Competition Act (DIVCA) legislation. • Promote smart growth incentive programs, reward agencies that promote sustainable practices such as energy conservation, renewable resources, green buildings and the reduction of CO2 emissions. • UpdateDevelop new funding source to cover the cost of unfunded mandates all additional Local Agency costs in order to comply with that arise from new State and Regional Water Quality Control Board Stormwater Permits and Regulations. since new permit requirements create unfunded mandates. • Support legislation that eliminates regulatory and processing barriers for projects that enhance or restore biological habitats. • Support the exemption of storm water fees from Exempt stormwater fees from the restrictions of Proposition 218 restrictions. • Support state and federal funding and efforts to address and eliminate untreated sewage, trash, and sediment that originates from across the U.S.- Mexico border. • Support legislation that protects and improves the reliability, affordability, self-sufficiency, quality and security of local and imported water supplies. • Support legislation that requires manufacturers of products containing hazardous materials to adopt financial responsibility for the proper management and disposal of their products sold or distributed in California, including collection, transportation, and recycling. • Support legislation and programs regarding the development of a statewide Building Performance Standard (BPS) (SB 48, the Building Energy Savings Act) to manage energy usage and reduce greenhouse gas emissions. • Support efforts to expedite disbursement of Proposition 4 (Safe Drinking Water, Wildfire Prevention, and Protecting Communities and Natural Lands From Climate Risks) funds to local governments. • Housing and Homeless Services General Area of Review: Land use, development, annexation, and incorporation, building standards, economic development, redevelopment and enterprise zones, mobile home, and sign regulations. • Support new affordable housing development opportunities and preservation of existing affordable housing. • Support efforts to assist first-time home buyers and promote pathways to home ownership. • Support opportunities for the development of workforce housing and permanent supportive housing and programs. • Support equitable distribution of housing funds from regional, state, or federal agencies. • Support efforts to preserve and enhance mobile home livability. • Promote and facilitate funding for historic preservation. Page 166 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 11 | P a g e • Support public health and age friendly livability initiatives. • Support efforts that ensure major changes to Building, Energy or Accessibility code requirements are given enough time and resources for local government and industry training. • Fund construction and/or continued maintenance of needed infrastructure, parks, libraries, and other civic/public safety programs. • Support legislation that preserves the authority of local agencies to regulate short-term rentals. • Support legislative efforts to enhance and secure sustainable, consistent funding for homelessness programs, services, outreach, prevention, and assistance. Support City’s operations of a bridge shelter for unsheltered individuals. • Support the expansion of conservatorship laws allowing for increased guardianship control and health supervision of those suffering from mental illness and recognizing mental illness and addiction as contributors to chronic homelessness. • Support legislation that provides ongoing operating funding associated with necessary services at permanent supportive housing developments. • Support legislation that increases housing production; promotes equity, inclusion, and sustainability; preserves housing for vulnerable populations; prevents displacement of existing residents; and protects tenants. • Support measures that provide resources to address the mental health needs of persons experiencing homelessness. • Support legislation that enhances the City’s ability to access funding and incentives for affordable and accessible housing for all economic segments of the community including the homeless, seniors, disabled, veterans, refugees, and moderate- and low-income households. • Support legislation for governmental immunity for safe parking and or camping sites for unsheltered individuals. • Support measures and legislation that provides substance abuse treatment and services for the unsheltered. • Support harm reduction services and programs that require City input and collaboration and monitors for community impacts. • Support the development of affordable student and faculty housing across higher education segments and associated financing. • Support legislation and administrative actions that would result in a sustainable and consistent source of funding for homelessness programs including removal of encampments in public right-of- way. Public Safety General Area of Review: Law enforcement, fire and life safety, emergency communications, emergency services, disaster preparedness, and nuisance abatement. • Support efforts to reinstate Federal Community Oriented Police Services (COPS) and State Supplemental Law Enforcement Services Fund (SLESF) grant programs. Page 167 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 12 | P a g e • Increase employment opportunities through the California Firefighter Joint Apprenticeship Program. • Fund emergency preparedness measures, particularly those related to wildland fire and fund minimizing fuels in wildland interface areas. • Support efforts to prohibit private drone operations that prevent or interfere with firefighting efforts. • Expand the availability of Automated External Defibrillator (AED) in higher occupancy structures. • Support funding for activities that will reduce drowning incidents. • Continue funding for "front-line" law enforcement for AB 109 compliance. AB 109, signed into law in 2011, was a realignment whereby individuals sentenced for non-serious, non-violent, non-sex offenses must serve their sentences in county jails instead of state prisons. • Provide adequate resources to support public safety response to the mental health crisis involving the unsheltered population. • Oppose efforts to allow unlicensed fire protection contractors to install fire protection systems. • Oppose efforts to preempt local public safety ordinances. • Oppose any efforts to impose upon police department the responsibility to enforce federal immigration laws. • Support legislation that preserves local control over medical and adult-use cannabis businesses, and enhances and protects maximum local regulatory, land use, and enforcement authority in relation to such businesses. • Support legislation that provides for an equitable reimbursement rate for emergency ambulance transportation for public health insurers. • Support regulatory or other measures that will assist with police recruitment and retention, and enhance diversity, equity, and inclusion among law enforcement. • Support measures that enhance local agencies’ abilities to protect public safety related to the operation of Uncrewed Aerial Systems (UAS). • Support legislation that expands access to affordable home, fire, and flooding insurance for all city residents and businesses, regardless of whether they are in a high-risk area. • Support legislation that encourages home hardening efforts and reduction of hazardous fuels and recognizes these measures through lower insurance premiums. Revenue and Taxation General Area of Review: Finance administration, taxation reform, general revenue, special revenue, and revenue sources at the federal, state, and local levels. • Provide grant distribution criteria that includes a per capita component in addition to merit-based programs. • Oppose unfunded mandates and legislation that reduce local control or abridge home rule authority. • Oppose any repeal of Gas Tax exemption for local agencies. • Oppose efforts to preclude cities from collecting Utility Users Tax, including revenue on cellular or digital telephone use. Page 168 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 13 | P a g e • Protect or enhance local government revenue resources including sales, property and use taxes, Citizens' Option for Public Safety (COPS), and Booking Fees. • Support reducing the vote threshold for special use taxes and bonds from 66.6% to 55%. • Support the establishment of a federal Marketplace Fairness Act and oppose any efforts to roll back the 2018 Wayfair decision. • Oppose efforts to limit cities’ ability to impose franchise fees, taxes, etc., on cable or satellite television or other telecommunication operations and services. • Advocate for the ability of local governments to authorize their existing licensed cardrooms to continue and/or expand the number of tables they operate. Transportation, Telecommunication and Public Works General Area of Review: Transportation, construction, telecommunications, and general public works related areas. • Fund extending advanced telecommunications, smart grid energy, sustainable water supply and transportation infrastructure that helps develop quality jobs in under resourced communities. • Support legislation that allows for opportunity to pay off bonds for SR 125 prior to 2043 provided capital, overhead costs and non-operating expenses can be minimized and toll revenues are allocated to debt service. • Support and promote transferring maintenance of SR 125 to Caltrans when SR 125 outstanding debt is paid off and toll-only access has ended. • Support efforts to allow local agencies flexibility in complying with the Americans with Disabilities Act to provide the greatest benefit to the disabled population, and provide protection from third party lawsuits. • Oppose elimination of Rule 20A Utility Undergrounding Program. • Support efforts to fund programs to provide high-speed Internet to lower income residents. • Support efforts for funding for priority infrastructure projects including drainage and other improvements to the storm drain system. • Support efforts for funding the region’s top priority rail grade separation project on Palomar Street at Industrial Boulevard. • Oppose any further restrictions on the use of multi-year renewable contracts. • Support legislation to reduce municipal costs associated with Caltrans projects. • Supports efforts (or legislation) that enhance traffic safety on city streets for all modes of transportation (AB 43). • Oppose efforts to preempt local authority with the goal of assisting the wireless industry in the expansion of broadband access by allowing access to City infrastructure including light poles, traffic poles, etc. • Support efforts to expedite disbursement of Proposition 84 funds to local governments. • Support efforts to protect dedicated transportation and public transit funds. Page 169 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda 14 | P a g e • Support funding and legislation that encourages utilities undergrounding. • Support legislation and/or funding to improve broadband accessibility and affordability in Chula Vista. • Support legislation to enhance and promote safe, walkable neighborhoods. Page 170 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Tuesday, April 1, 2025 Page 171 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda The Legislative Program is a tool to protect, promote, and guide City’s interests on priority issues and legislative/regulatory matters that might impact the City at the state and federal level. The City Manager implements the Council -approved Legislative Platform. Page 172 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda February 2021 Request for Proposals for State Legislative Advocacy August 2021 Nielsen Merksamer selected as advocacy firm 2022 Advocacy efforts launched during the second year of the 2021 -2022 Legislative Session 2025 2025-2026 Legislative Session Page 173 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Maintain Local Control Promote Fiscal Responsibility Promote Economic Development Support Funding Opportunities Guiding Principles Page 174 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda $20 million for SANDAG to reduce SR-125 debt to support efforts to eliminate bond debt by 2027. $30 million for the City of Chula Vista Millenia Library and Office Building Surplus Land Act Exemption for the University-Innovation District Page 175 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Elimination of Toll-Only Operation of SR-125 Promote Chula Vista Bayfront Development Funding for Development of Parkland in Western Chula Vista Funding for Grade Separations at Railroad/Transit Crossings Secure Support/Funding for University- Innovation District Page 176 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 177 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Page 178 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Item 11.1 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IN SUPPORT OF SENATE BILL 569 (BLAKESPEAR), "DEPARTMENT OF TRANSPORTATION: HOMELESS ENCAMPMENTS" WHEREAS, the City of Chula Vista is committed to addressing homelessness and ensuring the safety and well-being of all residents; and WHEREAS, homelessness remains a significant challenge in California, with individuals and families often seeking refuge in areas under the jurisdiction of the California Department of Transportation (Caltrans), including highways, freeways, and rights-of-way; and WHEREAS, encampments in these areas pose serious public health and safety concerns, including risks related to traffic hazards, fires, sanitation, and environmental degradation; and WHEREAS, Senate Bill 569, introduced by Senator Catherine Blakespear, seeks to improve coordination between Caltrans, local governments, and service providers to better address homeless encampments on state transportation property while ensuring humane and effective solutions for individuals experiencing homelessness; and WHEREAS, SB 569 would establish clearer protocols for the removal of encampments, enhance collaboration between Caltrans and local agencies, and prioritize outreach services to connect individuals with shelter, housing, and supportive services; and WHEREAS, the City of Chula Vista supports efforts to create a more strategic and compassionate approach to managing homelessness on state property and believes SB 569 aligns with its ongoing initiatives to address homelessness within the community. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it supports Senate Bill 569 (Blakespear) and urges the California Legislature and Governor to approve this important legislation; and BE IT FURTHER RESOLVED that the City Clerk is directed to transmit copies of this resolution to the offices of Senator Catherine Blakespear, the California State Legislature, the Governor of California, and any other relevant stakeholders. [SIGNATURES ON THE FOLLOWING PAGE] Page 179 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Resolution No. Page 2 Presented by Approved as to form by John McCann Marco A. Verdugo Mayor City Attorney Page 180 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda Item 14.1 Report and Discussion Regarding Options to Modify City Council Policy 111-02 Regarding Special Orders of the Day and Proclamations Presented By: City Attorney Marco A. Verdugo Chula Vista City Council Meeting Tuesday, April 1, 2025 OFFICE OF THE CHULA VISTA CITY ATTORNEY Page 181 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda OFFICE OF THE CHULA VISTA CITY ATTORNEY Council Policy 111 -02 Background •It is current practice for the Mayor to review and approve requests for placement of proclamations under "Special Orders of the Day.” •Under the policy, “Special Orders of the Day” are brief ceremonial items, such as the issuance of a proclamation to honor significant achievements by community members, highlight an event, promote awareness of community issues, and recognize City employees. •Councilmembers are able to provide “Certificates of Recognition” without the Mayor’s approval. Page 182 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda OFFICE OF THE CHULA VISTA CITY ATTORNEY Page 183 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda OFFICE OF THE CHULA VISTA CITY ATTORNEY Council Policy 111 -02 DISCUSSION AND FEEDBACK Page 184 of 184 City of Chula Vista - City Council April 1, 2025 Post Agenda