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HomeMy WebLinkAbout2025/09/23 Post Agenda Packet Date:Tuesday, September 23, 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 September 23, 2025 Post City Council Agenda Page 2 of 347 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: Cultural Arts Commission ~ Maria Echevarria Measure A Citizens' Oversight Committee ~ Victor Reeves Sustainability Commission ~ Sofia Cortes Rodriguez ~ Stephanie Liang Traffic Safety Commission ~ Alejandro Galicia 4.2 Presentation by San Diego County District Attorney Summer Stephan on the Opening of a Family Justice Center, One Safe Place in South Bay 9 4.3 Presentation of a Proclamation Honoring September 2025 as Hispanic Heritage Month in the City of Chula Vista 4.4 Presentation of a Proclamation Proclaiming September 2025 as Childhood Cancer Awareness Month in the City of Chula Vista 4.5 Presentation of a Proclamation Recognizing City Manager Maria Velarde Kachadoorian Upon Her Retirement and Proclaiming Maria V. Kachadoorian Day in the City of Chula Vista 5.CONSENT CALENDAR (Items 5.1 through 5.8) Consent calendar items are considered together and acted upon by one motion. There is no separate discussion of these items unless 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 33 RECOMMENDED ACTION: Approve the minutes dated: September 9, 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. City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 3 of 347 5.3 Community Facilities District: Adopt an Ordinance Relating to the Levy of a Special Tax Within Facilities District No. 2024-2 (Moss Street) 44 Report Number: 25-0221 Location: 676 Moss Street Department: Development Services 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 (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt an ordinance relating to the Levy of a Special Tax within Community Facilities District No. 2024-2 (Moss Street). (Second Reading and Adoption) 5.4 Campaign Contributions: Adopt an Ordinance Adopting Comprehensive Updates to Chula Vista Municipal Code Chapter 2.52 Regarding Various Provisions of the Campaign Contribution Ordinance 137 Report Number: 25-0213 Location: No specific geographic location Department: City Clerk & City Attorney 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: Adopt an ordinance amending Chula Vista Municipal Code Chapter 2.52 to comprehensively update the City’s Campaign Contribution Ordinance, including provisions on contribution limits, permissible sources, acceptance periods, outstanding loans and debt, complaint processing, and removal of duplicative provisions. (Second Reading and Adoption) City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 4 of 347 5.5 Agreements: Approve Agreements with the California Department of Tax and Fee Administration (CDTFA) for the Continued Administration and Implementation of a Voter-Approved Temporary One-Half Cent General Transactions and Use Tax 165 Report Number: 25-0038 Location: No specific geographic location Department: Finance 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: Adopt a resolution: A) authorizing the City Manager to execute agreements between the City of Chula Vista and CDTFA for the continued administration and implementation of a voter-approved temporary one-half cent general transactions and use tax and B) authorizing the examination of transactions and use tax records. 5.6 Affordable Housing: Financial Repositioning of the County of San Diego Public Housing Portfolio in Chula Vista 187 Report Number: 25-0205 Location: 772-792 Dorothy Street (Dorothy Street Manor), 584-588 L Street (L Street Manor), 1670-1682 Melrose Avenue (Melrose Manor), and 434 F Street (Town Center Manor) Department: Housing and Homeless Services 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 (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt a resolution: 1) supporting the financial repositioning of the San Diego Public Housing Portfolio in Chula Vista (four properties) and authorizing the City Manager to draft and execute a letter of support to that effect; and agreeing not to exercise City rights to purchase the properties; 2) authorizing the City Manager to negotiate the termination of the 434 F Street grant deed reverter; and 3) authorizing the City Manager to negotiate the termination of the Development Agreement and Abstract of Development Agreement for 584 - 588 L Street. City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 5 of 347 5.7 Real Property Purchases: Approve the Acquisitions of Real Property at 60 First Avenue and 65 First Avenue and Appropriate Funds Therefor 195 Report Number: 25-0229 Location: 60 First Avenue & 65 First Avenue Department: City Manager G.C. § 84308 Regulations Apply: Yes Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15316 Class 16 (Transfer of Ownership of Land in Order to Create Parks). In addition, notwithstanding the foregoing, the Project also qualifies for the Common Sense Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. RECOMMENDED ACTION: Adopt resolutions approving the purchase of 60 First Avenue (APN 566-122-32- 00), 65 First Avenue (APN 566-131-06-00) for the purposes of the Lower Sweetwater Community Park Project and appropriating funds for this purpose. (4/5 Vote Required) 5.8 Purchase Agreement: Waive the Competitive Bidding Process and Approve a First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. to Purchase AI Era Leaders Program and Appropriate Funds 225 Report Number: 25-0248 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. RECOMMENDED ACTION: Adopt resolutions: A) Waiving the competitive bidding process and approving the First Amendment to the Master Services and Purchasing Agreement from Axon Enterprise Inc. to purchase AI Era Leaders Program; and B) Appropriating funds for this purpose. (4/5 Vote Required) 6.PUBLIC COMMENTS 281 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.ACTION ITEMS City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 6 of 347 7.1 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. 7.2 Council Policies: Consider Revising and Adopting Council Policies on City Seal and Logo Use; Special Orders, Proclamations, and Certificates of Recognition; and Vending Machines in City Facilities; and Discuss Plaques-Dedication, and Special Events 305 Report Number: 25-0242 Location: No specific geographic location Department: City Manager and City Attorney 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: Adopt of the resolution revising Council Policies 100-01 City Identification Program: Use of Seal and Logo; 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition; and 840-04 Public Vending Machines in City Facilities 1. Discuss and provide feedback on Council Policy 100-02 Plaques – Dedication, and 102-07 Special Events: Sponsorship, Endorsement, and Support 2. 8.PUBLIC COMMENTS (CONTINUED) There will be no continued Public Comment period if all speakers present at the first Public Comment period are heard. 9.CITY MANAGER’S REPORTS 10.MAYOR’S REPORTS 11.COUNCILMEMBERS’ REPORTS 12.CITY CLERK'S REPORTS 13.CITY ATTORNEY'S REPORTS 14.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) City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 7 of 347 14.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(d)(1) Names of case: Sandra Snow v. City of Chula Vista, et al., San Diego Superior Court, Case No. 24CU029358C 14.2 Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency-designated representatives: Maria Kachadoorian, Marco Verdugo, Tiffany Allen, Courtney Chase, and Tanya Tomlinson Employee organization: MM/PR 15.ADJOURNMENT to the regular City Council meeting on October 7, 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 September 23, 2025 Post City Council Agenda Page 8 of 347 Where Community Provides Hope, Healing and Justice. Presentation to Chula Vista City Council September 23, 2025 Summer Stephan San Diego County District Attorney Page 9 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Traditional Pathway to Victim Services Page 10 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda All Under One Roof Hospital Based Care Teams Forensic Service (SART exams) Child Advocacy Center Onsite Traumatic Brain Injury Clinic Domestic Assault Forensic Exams/Strangulation Case Management and Advocacy Individual and Family Therapy Temporary Restraining Order Clinic Housing Navigation Child Welfare Services Law Enforcement Clothing and Food Transportation Workforce readiness Educational opportunities Anchors: Hospital/Health Partners Legal Services Therapy/Case Management Law Enforcement Page 11 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Proof of Concept: North FJC Open almost 3 years (July 5, 2022) Served 9,050 first time guests seeking wrap-around services 50% come back on average 5 times each for repeat services 112 Community Partners lean in to provide one-stop shop including: Legal Services, food, clothing, housing navigation, therapy, case management, immigration services, access to health care, transportation, children can be cared for, all in one place Page 12 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 13 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda One Safe Place - a Solution: The Link to Homelessness Among mothers with children experiencing homelessness, more than 80% had previously experienced Domestic Violence. 38% of all Domestic Violence victims become homeless at some point in their lives. Between 22% and 57% of all homeless women report that Domestic Violence was the immediate cause of their homelessness. Technology Solutions: Shelter Ready App and Safe Shelter App –Victim Advocates can connect victims in real time Page 14 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Pathway to One Safe Place South Page 15 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Why South? Improved Access to Needed Victim Services and Safety: South Region = roughly 15% of the countywide population 19% of Domestic Violence Cases submitted to our office were from the South region 20% of Elder Abuse cases submitted to our office were from the South region Page 16 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda One Safe Place South Page 17 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 401 Mile of Cars Way 2.9 miles (7 minutes) from Chula Vista City Council Chambers 2.7 miles from Chula Vista PD Page 18 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Within Live Well Center “Family Resource Center” Page 19 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda EXI T MainEntranc e EXI T EXI T N One Safe Place -Family Justice Center (SOUTH BAY Layout) Law Enforcement Child Advocacy Center Offices & Cubicles Donations & Dress to Success Demo Kitchen & Training Center TRO Services Conference Rooms & Huddle Areas Reception & Welcome HubPage 20 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda EXI T MainEntranc e EXI T EXI T •Reception Area •Welcome Hub •Security Hub •Guest/Member Rooms Page 21 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Child Advocacy Center •CAC Separate Reception & Waiting room •CAC administrative support workspace •Child Therapy rooms •Child Forensic Interview and Observation rooms •Examination Rooms Page 22 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda N •Huddle Areas •Conference Rooms •Collaboration Space •Laundry Room •Mothers Room •Quiet Faith Room Page 23 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda •TRO Legal Services •Virtual Courtroom •Law Enforcement Page 24 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda •Teaching Kitchen •Training Center Page 25 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda •Donation Room •Salon •Dress To Thrive Page 26 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Opening October 6 33 Partner Agencies with signed MOU Page 27 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Hours of Operation Monday-Friday 8:00 a.m.-6:30 p.m. Second Saturday of the month 8:00 a.m.-12:00 p.m. (starting 10/11) LE and Rady’s/Palomar = 24/7 access Page 28 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Virtua l Tour Page 29 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Virtual Tour Page 30 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Thank you, Mayor McCann and Chula Vista City Council: For Supporting and Welcoming One Safe Place South. Page 31 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Where Community Provides Hope, Healing and Justice. Presentation to Chula Vista City Council September 23, 2025 Summer Stephan San Diego County District Attorney Page 32 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City of Chula Vista Regular City Council Meeting MINUTES Date: Location: September 9, 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. Deputy Mayor Chavez left the meeting at 7:57 p.m. 3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Led by Joseph Raso, Chula Vista resident. 4. SPECIAL ORDERS OF THE DAY 4.1 Oath of Office Health, Wellness, and Aging Commission - John Cressler City Clerk Bigelow administered the oath of office. 4.2 Presentation of a Proclamation Celebrating the Park View Little League Junior Division Boys Team for Winning the District 42 and Section 7 Champions Title The proclamation was presented. 4.3 Special Presentation by the Port of San Diego to City Manager Maria Kachadoorian in Recognition of Her Contributions to the Chula Vista Bayfront and in Honor of Her Retirement Port Commissioner Moore gave a presentation. Page 33 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 2 5. CONSENT CALENDAR (Items 5.1 through 5.9) Item 5.3 was removed from the consent calendar at the request of Councilmember Fernandez. John Acosta, Chula Vista resident, spoke regarding various topics related to the consent calendar. Moved by Mayor McCann Seconded by Councilmember Inzunza To approve the recommended actions appearing below consent calendar Items 5.1, 5.2 and 5.4 through 5.9. The headings were read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) 5.1 Approve Meeting Minutes Approve the minutes dated: August 5, 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. 5.4 Investment Report: Quarter Ending June 30, 2025 Jenne submitted written comments in opposition to the item. Receive the investment report for the quarter ending on June 30, 2025. Item 5.4 heading: Receipt of the investment report for the quarter ending on June 30, 2025. 5.5 Grant Amendment and Appropriation: Approve an Amended HUD HOME-ARP Plan and Appropriate Additional Allocation Adopt a resolution: 1) Approving the amended HUD HOME-ARP Plan; 2) Authorizing the acceptance and appropriation of HOME-ARP Program grant funds; 3) Authorizing the City Manager to execute any additional HUD documents related to the grant; and 4) Appropriating funds for that purpose. (4/5 Vote Required) Item 5.5 heading: RESOLUTION NO. 2025-142 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A RESOLUTION APPROVING THE AMENDED UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) HOME-ARP PLAN; AUTHORIZING THE ACCEPTANCE AND APPROPRIATION OF HOME-ARP PROGRAM GRANT FUNDS; AUTHORIZING THE CITY MANAGER TO EXECUTE ANY ADDITIONAL HUD DOCUMENTS RELATED TO Page 34 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 3 THE GRANT; AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) 5.6 Employee Compensation and Positions: Approve Classification Plan and Compensation Schedule; Position Counts; Revised Compensation Schedule; Updated Conflict of Interest Code; and Budget Amendments Adopt resolutions: A) Amending the Classification Plan and Compensation Schedule to reflect the addition and deletion of position titles and amending the authorized position count in various departments; B) Approving the revised Fiscal Year 2025-26 Compensation Schedule effective September 19, 2025, as required by the California Code of Regulations, Title 2, Section 570.5; (C) Modifying the appendix to the local Conflict of Interest Code to revise the list of designated employees who are required to file Statements of Economic Interest (Form 700); and (D) Amending the fiscal year 2025-26 budget. (4/5 Vote Required) Item 5.6 headings: A) RESOLUTION NO. 2025-143 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE CLASSIFICATION PLAN AND COMPENSATION SCHEDULE TO REFLECT THE ADDITION AND DELETION OF POSITION TITLES AND AMENDING THE AUTHORIZED POSITION COUNT IN VARIOUS DEPARTMENTS B) RESOLUTION NO. 2025-144 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2025-26 COMPENSATION SCHEDULE EFFECTIVE SEPTEMBER 19, 2025, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5 C) RESOLUTION NO. 2025-145 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE TO AMEND THE LIST OF DESIGNATED FILERS, AND ASSOCIATED DISCLOSURE CATEGORIES D) RESOLUTION NO. 2025-146 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2025- 26 BUDGET (4/5 VOTE REQUIRED) 5.7 Interfund Loan & CIP: Authorize an Interfund Loan From Measure A Fund to the Public Facility Development Impact Fee Fund and the General Fund and Amend the FY 2025-26 CIP Budget Appropriating Additional Funds to the Fire Station 12 Project (GGV0275) Adopt a resolution: 1) Authorizing an interfund loan in the amount of $5,600,000 from the available fund balance of the Measure A Sales Tax Fund to the Public Facility Development Impact Fee Fund (PFDIF Fund) and the General Fund CIP Fund; and 2) Amending the fiscal year 2025-26 Capital Improvement Program (CIP) Budget by appropriating $5,600,000 in the PFDIF Fund and General Fund CIP Fund for the Temporary Fire Station 12 Project (GGV0275). (4/5 Vote Required) Page 35 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 4 Item 5.7 heading: RESOLUTION NO. 2025-147 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) AUTHORIZING AN INTERFUND LOAN FROM THE MEASURE A SALES TAX FUND TO THE PUBLIC FACILITY DEVELOPMENT IMPACT FEE FUND AND THE GENERAL FUND CIP FUND AND (2) AMENDING THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET BY INCREASING APPROPRIATIONS IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND AND THE GENERAL FUND CIP FUND TO “TEMPORARY FIRE STATION 12” PROJECT (GGV0275) (4/5 VOTE REQUIRED) 5.8 Grant Acceptance and Appropriation: Approve an Agreement and Accept a Grant From the Department of Alcoholic Beverage Control and Appropriate Funds Adopt a resolution approving an agreement and accepting $75,000 in grant funds from the Department of Alcoholic Beverage Control to be used for the Alcohol Policing Partnership Program and appropriating the funds to the Police Grants Section of the State Grants Fund for the Alcohol Policing Partnership Program. (4/5 Vote Required) Item 5.8 heading: RESOLUTION NO. 2025-148 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT AND ACCEPTING GRANT FUNDS FROM THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL AND APPROPRIATING FUNDS TO THE POLICE GRANTS SECTION OF THE STATE GRANTS FUND FOR THE ALCOHOL POLICYING PARTNERSHIP PROGRAM (4/5 VOTE REQUIRED) 5.9 Agreement: Approve the Fourth Amended and Restated Operating Agreement Between the City of Chula Vista and the Living Coast Discovery Center Adopt a resolution approving the Fourth Amended and Restated Operating Agreement between the City of Chula Vista and the Living Coast Discovery Center. Item 5.9 heading: RESOLUTION NO. 2025-149 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FOURTH AMENDED AND RESTATED OPERATING AGREEMENT BETWEEN THE CITY AND LIVING COAST DISCOVERY CENTER ITEMS REMOVED FROM THE CONSENT CALENDAR 5.3 Business Improvement District: Resolution Declaring Intention to Hold a Public Hearing to Consider Dissolving the Automobile Park Business Improvement District Moved by Councilmember Fernandez Seconded by Mayor McCann To adopt Resolution No. 2025-141, the heading was read, text waived. The motion was carried by the following vote: Page 36 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 5 Yes (5): Deputy Mayor Chavez, Councilmember Fernandez, Councilmember Inzunza, Councilmember Preciado, and Mayor McCann Result, Carried (5 to 0) Item 5.3 heading: RESOLUTION NO. 2025-141 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING AN INTENTION TO HOLD A PUBLIC HEARING TO CONSIDER DISESTABLISHING THE AUTOMOBILE PARK BUSINESS IMPROVEMENT DISTRICT 6. PUBLIC COMMENTS Jenne Fredrickson, Chula Vista resident, spoke regarding the future of Chula Vista Mall in relation to other City projects. Joseph Raso, Chula Vista resident, spoke in support of allowing individual Councilmembers to place items on the agenda. John Acosta, Chula Vista resident, expressed appreciation for City Manager Maria Kachadoorian’s service and spoke on various other topics. Brandon Claypool spoke regarding matters related to homelessness. Dave Lagstein, representing Mid Managers/Professional Association (MMPR), spoke regarding the current MMPR contract. Kim Vo submitted written comments related to public transportation. Concerned staff submitted written comments regarding the City's Justice, Equity, Diversity, and Inclusion project. 7. PUBLIC HEARINGS 7.1 Community Facilities District: Formation Proceedings for Community Facilities District No. 2024-2 (Moss Street) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. Deputy Director of Development Services Bridgeford and Suzanne Harrel, representing Harrel & Co., gave a presentation on the item. City Clerk Bigelow announced that the notice was mailed to the property owner on August 25, 2025, and published in the newspaper at least 7 days prior to the date of the public hearing in accordance with the Mello-Roos Act. Mayor McCann opened the public hearing. City Clerk Bigelow announced that no written protests had been received. John Acosta spoke regarding the item. City Clerk Bigelow announced that the City had received the report on public facilities for the proposed Community Facilities District (CFD) and entered it into the record, confirmed that the County Registrar of Voters certified that there are no registered voters within the proposed CFD area, and stated that all property Page 37 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 6 owners have consented to and that special election may be held immediately following the public hearing. There being no further members of the public who wished to speak, Mayor McCann closed the public hearing. City Clerk Bigelow announced that a notice was published in a newspaper of general circulation in accordance with applicable law. At the conclusion of the public hearing, no protests were filed by landowners within the territory included in the Community Facilities District. As such, no majority protest existed. Moved by Mayor McCann Seconded by Deputy Mayor Chavez To adopt Resolution Nos. 2025-150 through 2025-152, the headings were read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) A) RESOLUTION NO. 2025-150 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF B) RESOLUTION NO. 2025-151 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, DETERMINING THE NECESSITY TO INCUR A BONDED INDEBTEDNESS OF COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) TO BE SECURED BY SPECIAL TAXES LEVIED THEREIN TO PAY FOR THE ACQUISITION OR CONSTRUCTION OF CERTAIN PUBLIC FACILITIES C) RESOLUTION NO. 2025-152 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALLING A SPECIAL ELECTION AND SUBMITTING TO THE VOTERS OF COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET), THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, PROPOSITIONS REGARDING THE ANNUAL LEVY OF SPECIAL TAXES WITHIN THE COMMUNITY FACILITIES DISTRICT AND ESTABLISHING AN APPROPRIATIONS LIMIT THEREFOR City Clerk Bigelow agreed to hold the special election and announced that Propositions A, B, and C passed unanimously. Moved by Mayor McCann Seconded by Councilmember Inzunza To adopt Resolution No. 2025-153, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) Page 38 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 7 D) RESOLUTION NO. 2025-153 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE RESULTS OF THE CONSOLIDATED SPECIAL ELECTIONS WITHIN COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA Moved by Mayor McCann Seconded by Deputy Mayor Chavez To place the below ordinance on first reading, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) E) ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT (FIRST READING) Moved by Mayor McCann Seconded by Deputy Mayor Chavez To adopt Resolution No. 2025-154, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) F) RESOLUTION NO. 2025-154 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ACQUISITION/FINANCING AGREEMENT RELATING TO COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) AND AUTHORIZING RELATED ACTIONS 8. ACTION ITEMS 8.1 Consider Items Removed From the Consent Calendar, if Any For action on this item, refer to the section Items Removed from the Consent Calendar, above. The meeting was recessed at 5:57 p.m. and resumed at 6:12 p.m. 8.2 Campaign Contributions: Adopt Comprehensive Updates to Chula Vista Municipal Code Chapter 2.52 Regarding Various Provisions of the Campaign Contribution Ordinance John Acosta, Chula Vista resident, spoke regarding the item. Mayor McCann made a substitute motion to adopt Ordinance B, with an amendment to set the contribution limits for District races at 15 percent and Page 39 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 8 Citywide races at 25 percent of the limit for the State Senate. The motion died for lack of a second. Councilmember Inzunza proposed amending the main motion to set a six-month campaign repayment deadline; the amendment was not accepted by the maker of the motion. Moved by Councilmember Preciado Seconded by Deputy Mayor Chavez To place Ordinance A on first reading, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (3 to 2) Item 8.2 heading: A) ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 2.52, “CAMPAIGN CONTRIBUTIONS,” AND ADJUSTING THE CAMPAIGN CONTRIBUTION LIMITS (FIRST READING) 8.3 Council Policies: Consider Adopting a City Council Policy on City Asset Naming and Renaming Special Project Manager Yum gave a presentation. Moved by Councilmember Inzunza Seconded by Councilmember Fernandez To adopt Resolution 2025-155, as amended to include administrative facilities and delete section IV 3(f) regarding naming in honor of an individual occurring only posthumously, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (3 to 2) Item 8.3 heading: RESOLUTION NO. 2025-155 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A NEW CITY COUNCIL POLICY ON CITY ASSET NAMING AND RENAMING 9. PUBLIC COMMENTS (CONTINUED) There were none. Page 40 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 9 10. CITY MANAGER’S REPORTS 10.1 Report on Emergency Purchase of Police Department Firearms Pursuant to Chula Vista Municipal Code Section 2.56.100 In accordance with Chula Vista Municipal Code Section 2.56.100, City Manager Kachadoorian reported an emergency purchase of firearms to maintain compliance with County requirements and ensure police officer safety. The San Diego County Sheriff’s Office no longer authorized the use of the P320 handgun in its facilities, requiring the City to replace existing handguns and train officers within six months. To meet this deadline, the City purchased firearms from Pro Force Law Enforcement for a total cost of $383,820, in accordance with the City’s emergency purchasing provisions. 11. MAYOR’S REPORTS Mayor McCann reported on attendance at recent events and made community announcements. 11.1 Ratification of Appointment to the following Commissions: Cultural Arts Commission ~ Maria Echevarria Housing and Homelessness Advisory Commission ~ Bogdan Matuszynski Measure A Citizens' Oversight Committee ~ Victor Reeves Sustainability Commission ~ Sofia Cortes Rodriguez ~ Stephanie Liang Traffic Safety Commission ~ Alejandro Galicia Moved by Mayor McCann Seconded by Councilmember Preciado To ratify the appointments. The motion was carried by the following vote: Result, Carried (5 to 0) 12. COUNCILMEMBERS’ REPORTS Councilmembers reported on attendance at recent events and made community announcements. Deputy Mayor Chavez reported on the recent SANDAG Board meeting, and Councilmember Fernandez provided an update on the MTS Board meeting. Page 41 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 10 At the request of Councilmember Preciado there was a consensus of the City Council to direct the City Manager to send communications to state policy makers regarding the City's inclusionary housing opportunities, both built and planned. 13. CITY CLERK'S REPORTS There were none. 14. CITY ATTORNEY'S REPORTS There were none. 15. CLOSED SESSION Pursuant to Resolution No. 13706 and City Council Policy No. 346-03, the City Attorney maintains official minutes and records of action taken during closed session. City Attorney Verdugo announced that the City Council would convene in closed session to discuss the items listed below. The meeting was recessed at 7:31 p.m. and reconvened in closed session at 7:35 p.m. with all members present. Deputy Mayor Chavez left the meeting at 7:57 p.m. 15.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(d)(1) Names of cases: A) Purdue Pharma L.P., et al, Case No. 19-23649, pending in the United States Bankruptcy Court, Southern District of New York. B) National Prescription Opiate Litigation, Case No. 1:17-md-02804-DAP, pending in the U.S. District Court for the Northern District of Ohio. C) National Prescription Opiate Litigation, Case No. 1:17-md-02804-DAP, pending in the U.S. District Court for the Northern District of Ohio. (re: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun Pharma, Zydus – and if eligible, Sandoz.) Action: No reportable action 15.2 Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Hmmm submitted written communications regarding the item. Property: 60 First Avenue Agency Negotiators: Rick Ryals, MPC Consultants, Marco Verdugo, City Attorney, and Tiffany Allen, Assistant City Manager Negotiating Parties: City of Chula Vista, Arthur Andres Ortiz represented by Compass Real Estate Under Negotiation: Price and terms Page 42 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2025-09-09 Regular City Council Meeting Minutes Page 11 Action: No reportable action 15.3 Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency-designated representatives: Maria Kachadoorian, Marco Verdugo, Tiffany Allen, Courtney Chase, Tanya Tomlinson, and Steve Berliner Employee organization: MM/PR Action: No reportable action 15.4 Public Employee Appointment Pursuant to Government Code Section 54957 Titles: A) Director of Animal Services B) Director of Development Services C) Director of Economic Development The following members of the public submitted written comments in opposition to the item:  Mary Ogden  Alex Choi Moved by Councilmember Inzunza Seconded by Mayor McCann To ratify the following appointments: Ashley Milo as Director of Animal Services, Roy Sap'u as Director of Development Services, and David Graham as Director of Economic Development. The motion was carried by the following vote: Result, Carried (4 to 0) 16. ADJOURNMENT The meeting was adjourned at 8:26 p.m. Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services _________________________ Kerry K. Bigelow, MMC, City Clerk Page 43 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 3 P a g e | 1 September 23, 2025 ITEM TITLE Community Facilities District: Adopt an Ordinance Relating to the Levy of a Special Tax Within Community Facilities District No. 2024-2 (Moss Street) Location: 676 Moss Street Department: Development Services 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 (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt an ordinance relating to the Levy of a Special Tax within Community Facilities District No. 2024-2 (Moss Street). (Second Reading and Adoption) Summary This ordinance was placed on first reading on September 9, 2025. The original staff report can be accessed at the following link: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=54238 Please note, the original staff report may include information beyond the scope of the ordinance proposed for adoption with this action. For questions, please contact the staff indicated in the original staff report or cityclerk@chulavistaca.gov. Page 44 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda SECOND READING AND ADOPTION ORDINANCE NO. ______ ORDINANCE OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council (the “City Council”) of the City of Chula Vista, California (the “City”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of Special Taxes in the community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”). This community facilities district shall hereinafter be referred to as Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista, County of San Diego, State of California (“CFD No. 2024-2”). NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: Section I. This City Council does, by the passage of this Ordinance, authorize the levy of Special Taxes on taxable properties located in CFD No. 2024-2 pursuant to the Rate and Method of Apportionment of Special Tax for CFD No. 2024-2 as set forth in Exhibit “A” attached hereto and incorporated herein by this reference (the “Rate and Method”). Section II. This City Council, acting as the legislative body of CFD No. 2024-2, is hereby further authorized, by resolution, to annually determine the Special Tax (as defined in the Rate and Method) to be levied within CFD No. 2024-2 for the then current tax year and future tax years; provided, however, the Special Tax to be levied shall not exceed the maximum Special Tax authorized to be levied pursuant to the Rate and Method. Section III. The Special Taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, CFD No. 2024-2 may utilize a direct billing procedure for any Special Taxes that cannot be collected on the County of San Diego tax roll or may, by resolution, elect to collect the Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. Section IV. The Special Taxes authorized to be levied shall be secured by the lien imposed pursuant to Section 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the Special Taxes. Page 45 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 2 Section V. 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 VI. 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 VII. Effective Date. This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VIII. 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. [SIGNATURES ON THE FOLLOWING PAGE] Page 46 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 3 A-3 Presented by Approved as to form by Robert A. Vacchi Marco A. Verdugo Interim Director, Development Services City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of September 2025, by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. **** had its first reading at a regular meeting held on the 9th day of September 2025, and its second reading and adoption at a regular meeting of said City Council held on the 23rd day of September 2025 and was duly published in summary form in accordance with the requirements of state law and the City Charter. Dated Kerry K. Bigelow, MMC, City Clerk Page 47 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 4 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2024-2 (Moss Street) (“CFD No. 2024-2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2024-25, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2024-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended. “Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2024-2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2024-2, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2024-2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2024-2, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2024-2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts for Special Tax delinquency monitoring and the amount estimated or advanced by the City or CFD No. 2024-2 for any other administrative purposes of CFD No. 2024-2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. Page 48 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 5 A-5 “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2024-2 issued or incurred whether in one or more series, secured by the levy of Special Taxes. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2024-2. “Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2024-2” means the City of Chula Vista Community Facilities District No. 2024-2 (Moss Street). “City” means the City of Chula Vista, California. “City Council” means the City Council of the City acting as the legislative body of CFD No. 2024-2 under the Act. “Condominium” means a unit, whether attached or detached, meeting the statutory definition of a condominium contained in the California Civil Code Section 4125(b). “County” means the County of San Diego, California. Page 49 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 6 “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3A below. Note: Land Use Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map. “Master Developer” means Shea Homes Limited Partnership, a California Limited Partnership or its successors or assignees. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C and 3.D below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. Page 50 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 7 A-7 “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8 below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2024-2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below. “Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2024-2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Special Tax” means any special tax levied within CFD No. 2024-2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2024-2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement. “State” means the State of California. Page 51 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 8 “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2024-2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class based on its Building Square Footage. In the event a Building Permit is issued for one or more Residential Property Condominiums prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Condominium for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Condominium for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Condominiums for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Condominiums to the total number of Condominiums entitled to be developed on such Assessor’s Parcel. The total number of Condominiums entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Table 1 below. Page 52 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 9 A-9 Table 1 Assigned Special Tax Rates for Developed Property 1 Residential Property < 1,201 $3,280.00 2 Residential Property 1,201 to 1,475 $3,345.00 3 Residential Property 1,476 to 1,675 $4,128.00 4 Residential Property 1,676 to 1,825 $4,362.00 5 Residential Property 1,826 to 1,925 $4,585.00 6 Residential Property > 1,925 $4,763.00 On each July 1, commencing July 1, 2027 and ending July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax for Developed Property When a Final Map or a condominium plan is recorded within CFD No. 2024-2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential Property shall be determined as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula: The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. $94,041 x A L B = Page 53 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 10 On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. C. Maximum Special Tax for Developed Property Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property shall be the greater of the applicable Assigned Special Tax or Backup Special Tax. D. Maximum Special Tax for Undeveloped Property The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be $94,041 per Acre. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. E. Multiple Land Use Classes In some instances, an Assessor’s Parcel may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. F. Special Tax Reduction prior to issuance of Bonds Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from property owner and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service with respect to the amount of Bonds requested to be issued in such written requests. If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates may be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential Property with the written consent of Master Developer, which consent shall not be unreasonably withheld, and the CFD Administrator. It shall not be required that reductions among each “Building Square Footage” range of Residential Property be proportional. Additionally, the “CFD Public Facilities Costs” amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in substantially the form attached hereto as Exhibit “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County. Once bonds are issued for CFD No. 2024-2, this paragraph 3.F shall become void. Page 54 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 11 A-11 4. METHOD OF APPORTIONMENT For each Fiscal Year, commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2024-2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Non-Residential Property including, but not limited to, commercial and industrial parcels, and (v) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres. Assessor’s Parcels, which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2024- 2 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 5 that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 6. APPEALS Page 55 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 12 Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such an error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date, (ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the property owner believes such an error still exists, such person may file a written notice of appeal with the City Council. Upon receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Council or designee shall be final and binding to all persons. 7. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 8. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8: “CFD Public Facilities Costs” means an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2024-2, or such lower number as shall be determined by the CFD Administrator. “Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Page 56 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 13 A-13 Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2024-2. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Fiscal Agent and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Costs Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, Page 57 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 14 based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2024-2, assuming all Building Permits have been issued (build- out) within CFD No. 2024-2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). 8. Calculate the administrative fees and expenses of CFD No. 2024-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). 9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date. 10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after taking into account such prepayment. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit Page 58 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 15 A-15 shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2024-2. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation Page 59 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 16 A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within 60 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2024-2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 9. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2066-67. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Page 60 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda SECOND READING AND ADOPTION A -1 EXHIBIT A Page 61 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda SECOND READING AND ADOPTION EXHIBIT B CERTIFICATE TO AMEND THE SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA TAX REDUCTION CERTIFICATE 1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the "RMA") for Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista (“CFD No. 2024-2” or the “CFD”). 2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Table 1 of the RMA. 3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2024-2 shall be amended and restated in full as follows: Table 1: Assigned Special Tax for Developed Property 4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2024-2 classified as Residential Property shall be amended as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $ 2 Residential Property 1,201 to 1,475 $ 3 Residential Property 1,476 to 1,675 $ 4 Residential Property 1,676 to 1,825 $ 5 Residential Property 1,826 to 1,925 $ 6 Residential Property > 1,925 $ R x A L B = Page 62 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. Page No. 19 A-19 The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. R = Backup Special Tax Rate per Acre 5. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Assigned Special Tax Rates in Table 1 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 6. Section 3 of the RMA may only be modified prior to the issuance of Bonds. 7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein. I hereby declare under penalty of perjury that the above representations are true and correct. Property Owner By: Date: By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2024-2(Moss Street) receipt of this Certificate and modification of the RMA as set forth in this Certificate. City of Chula Vista By: Date: CFD Administrator Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista By: Date: CFD Administrator Page 63 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 1 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) CFD REPORT August 2025. Page 64 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2 1. INTRODUCTION Purpose of Report This Community Facilities District Report (“CFD Report”) is submitted to the City Council of the City of Chula Vista (the “City Council”) in accordance with the requirements of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”). The purpose of this report is to provide supporting documentation for the proposed formation of Community Facilities District No. 2024-2 (Moss Street) (CFD No. 2024-2). This CFD Report includes the following key components:  A general description of CFD No. 2024-2.  A summary of the public facilities (“Facilities”) required at the time of formation to meet the needs of future development within CFD No. 2024-2.  A description of the boundaries of CFD No. 2024-2; and  An estimate of the costs to be funded, including costs associated with the formation of the district, the issuance of bonds, the collection and administration of special taxes, and any incidental expenses related to financing the authorized Facilities. For further details, reference is made to Resolution of Intention No. 2025-125, adopted by the City Council on July 22, 2025. Capitalized terms used but not otherwise defined in this report shall have the meanings ascribed to them in the Rate and Method of Apportionment of Special Tax, attached hereto as Appendix A. Legal Authority Pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code), the City Council adopted a Resolution of Intention to initiate proceedings for the formation of Community Facilities District No. 2024-2 (Moss Street). This action authorizes the consideration of the levy of a special tax within the proposed district to finance the acquisition and/or construction of public facilities and to fund incidental expenses as described in this report. Page 65 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 3 2. DESCRIPTION OF PUBLIC FACILITIES AND/OR SERVICES The types of public facilities authorized to be financed by CFD No. 2024-2 include, but are not limited to, the following:  Street and transportation improvements, including parking, rights of way, curbs and gutters, and other improvements relating thereto.  Park acquisition and improvements.  Water improvements.  Sewer improvements, including collection, transportation, treatment, and sewer disposal.  General civic facilities, including but not limited to civic centers, police, fire suppression, library, corporation yard, and public recreation. In addition to the public facilities, the financing may include incidental expenses, such as:  The cost of planning and designing the public facilities and the cost of environmental evaluations thereof,  All costs associated with the formation of CFD No. 2024-2, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed District.  Any other expenses incidental to the construction, completion, and inspection of the public Facilities. This description is general in nature and intended to provide flexibility. The final location, design, and composition of improvements will be determined as development plans are finalized. Substitutions or modifications to the proposed improvements may occur, provided they offer services that are substantially similar in scope and purpose to those described herein, and do not constitute a material change to the proceedings. Page 66 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 4 3. COST ESTIMATE The proposed maximum authorized bonded indebtedness for Community Facilities District No. 2024-2 (Moss Street) is $10,000,000. The actual amount of bonds issued will depend on several factors, including market interest rates at the time of sale, project funding requirements, and compliance with minimum value-to-lien ratio requirements. Based on current assumptions, including an 8.00% interest rate and a 30-year bond term, the special tax revenues projected to be generated within CFD No. 2024-2 are estimated to support approximately $6,410,000 in bonded indebtedness. This issuance is expected to generate approximately $5,148,071 in net bond proceeds available for eligible facilities and fees. The remaining bond proceeds will be allocated to funds:  A bond reserve fund.  Capitalized interest.  Initial administrative expenses.  Costs of CFD formation; and  Bond issuance costs. The proceeds of CFD No. 2024-2 will be used to fund public facilities and development impact fees as outlined in Appendix C of this report. The estimated cost of such facilities and fees is approximately $5.15 million. Any costs not covered by CFD bond proceeds or special taxes will remain the responsibility of the developer, in accordance with project conditions of approval, the development agreement, or other applicable governing documents. Page 67 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 5 4. RATE AND METHOD OF APPORTIONMENT The Rate and Method of Apportionment of Special Tax (“RMA”) for CFD No. 2024-2 is attached hereto as Appendix A and is incorporated by reference into this report. The special tax will be levied and collected in the same manner and at the same time as ad valorem property taxes levied by the County of San Diego and will be subject to the same penalties and procedures in the case of delinquency. However, the special tax may also be collected in such other manner and at such other time as may be necessary to meet the financial obligations of CFD No. 2024-2, as permitted by the Mello-Roos Community Facilities Act of 1982 (the “Act”). All property within CFD No. 2024-2, unless legally exempt or exempt pursuant to the RMA, shall be subject to the levy of the special tax to fund the authorized public facilities, incidental expenses, and administrative costs of CFD No. 2024-2. In accordance with Government Code Section 53325.3, the special tax is not a special assessment and need not be apportioned based on the benefit received by each parcel. Rather, the tax may be apportioned based on cost, service availability, or other reasonable criteria, provided it is not based on an ad valorem (value-based) methodology, in compliance with Article XIII A of the California Constitution. In developing the RMA, Harris & Associates relied on data and assumptions including, but not limited to, building square footage, net taxable acreage, proposed land use classifications, and service area square footage, as well as estimated facility and bond-related costs. These inputs were provided by the City of Chula Vista, participating developers, financial advisors, bond counsel, and other members of the formation team. Harris & Associates has not independently verified such data and disclaims responsibility for the impact of any inaccuracies on the resulting RMA or on CFD No. 2024-2’s ability to meet its financial obligations. Page 68 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 6 5. BOUNDARY MAP AND DESCRIPTION CFD No. 2024-2 is located within the City of Chula Vista and is generally bound by H Street, Fig Avenue, I Street, and Broadway. At build-out, CFD No. 2024-2 is projected to contain 141 attached for-sale residential units. CFD No. 2024-2 encompasses approximately 7.282 gross acres within the City of Chula Vista and includes a portion of the following Assessor Parcel Numbers: 618-010-26-01 618-010-31-00 618-010-32-00 These parcels represent the properties proposed to be included within the boundaries of CFD No. 2024-2 and are subject to the levy of special taxes to fund the public facilities and incidental expenses described in this Report. A reduced scale Boundary Map is provided in Appendix B. A full-scale map is on file with the City Clerk of the City of Chula Vista and was recorded with San Diego County Recorder’s Office in Book 52 of Maps of Assessment and Community Facilities Districts on July 28, 2025, at Page 62 in the office of the County Recorder for the County of San Diego, State of California, as Document No. 2025-7000350. Page 69 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda APPENDIX A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 70 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2024-2 (Moss Street) (“CFD No. 2024-2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2024-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended. “Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2024-2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2024-2, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2024-2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2024-2, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2024-2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts for Special Tax delinquency monitoring and amounts estimated or advanced by the City or CFD No. 2024-2 for any other administrative purposes of CFD No. 2024-2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. Page 71 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2 “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2024-2 issued or incurred whether in one or more series, secured by the levy of Special Taxes. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2024-2. “Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2024-2” means the City of Chula Vista Community Facilities District No. 2024-2 (Moss Street). “City” means the City of Chula Vista, California. “City Council” means the City Council of the City acting as the legislative body of CFD No. 2024-2 under the Act. “Condominium” means a unit, whether attached or detached, meeting the statutory definition of a condominium contained in the California Civil Code Section 4125(b). “County” means the County of San Diego, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below. Page 72 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 3 “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3A below. Note: Land Use Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map. “Master Developer” means Shea Homes Limited Partnership, a California Limited Partnership or its successors or assignees. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C and 3.D below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8 below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2024-2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below. “Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2024-2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that Page 73 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 4 any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Special Tax” means any special tax levied within CFD No. 2024-2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2024-2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement. “State” means the State of California. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2024-2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class based on its Building Square Footage. In the event a Building Permit is issued for one or more Residential Property Condominiums prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Condominium for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Condominium for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Condominiums for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; Page 74 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 5 the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Condominiums to the total number of Condominiums entitled to be developed on such Assessor’s Parcel. The total number of Condominiums entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Table 1 below. Table 1 Assigned Special Tax Rates for Developed Property Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $3,280.00 2 Residential Property 1,201 to 1,475 $3,345.00 3 Residential Property 1,476 to 1,675 $4,128.00 4 Residential Property 1,676 to 1,825 $4,362.00 5 Residential Property 1,826 to 1,925 $4,585.00 6 Residential Property > 1,925 $4,763.00 On each July 1, commencing July 1, 2027 and ending July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax for Developed Property When a Final Map or a condominium plan is recorded within CFD No. 2024-2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential Property shall be determined as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula: The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. $94,041 x A L B = Page 75 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 6 Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. C. Maximum Special Tax for Developed Property Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property shall be the greater of the applicable Assigned Special Tax or Backup Special Tax. D. Maximum Special Tax for Undeveloped Property The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be $94,041 per Acre. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. E. Multiple Land Use Classes In some instances, an Assessor’s Parcel may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. F. Special Tax Reduction prior to issuance of Bonds Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from property owner and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service with respect to the amount of Bonds requested to be issued in such written requests. If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates may be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential Property with the written consent of Master Developer, which consent shall not be unreasonably withheld, and the CFD Administrator. It shall not be required that reductions among each “Building Square Footage” range of Residential Property be proportional. Additionally, the “CFD Public Facilities Costs” amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in substantially the form attached hereto as Exhibit “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County. Once bonds are issued for CFD No. 2024-2, this paragraph 3.F shall become void. Page 76 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 7 4. METHOD OF APPORTIONMENT For each Fiscal Year, commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2024-2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Non-Residential Property including, but not limited to, commercial and industrial parcels, and (v) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres. Assessor’s Parcels, which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2024- 2 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 5 that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 6. APPEALS Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such an error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year Page 77 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 8 prior to the payment date, (ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the property owner believes such an error still exists, such person may file a written notice of appeal with the City Council. Upon receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Council or designee shall be final and binding to all persons. 7. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 8. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8: “CFD Public Facilities Costs” means an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2024-2, or such lower number as shall be determined by the CFD Administrator. “Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2024-2. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. Page 78 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 9 The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Fiscal Agent and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Costs Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2024-2, assuming all Building Permits have been issued (build- out) within CFD No. 2024-2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). Page 79 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 10 8. Calculate the administrative fees and expenses of CFD No. 2024-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). 9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date. 10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after taking into account such prepayment. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2024-2. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Page 80 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 11 Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within 60 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2024-2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 9. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2066-67. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Page 81 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda A-1 EXHIBIT A Page 82 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-2 EXHIBIT B CERTIFICATE TO AMEND THE SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA TAX REDUCTION CERTIFICATE 1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the "RMA") for Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista (“CFD No. 2024-2” or the “CFD”). 2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Table 1 of the RMA. 3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2024-2 shall be amended and restated in full as follows: Table 1: Assigned Special Tax for Developed Property 4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2024-2 classified as Residential Property shall be amended as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $ 2 Residential Property 1,201 to 1,475 $ 3 Residential Property 1,476 to 1,675 $ 4 Residential Property 1,676 to 1,825 $ 5 Residential Property 1,826 to 1,925 $ 6 Residential Property > 1,925 $ R x A L B = Page 83 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-2 The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. R = Backup Special Tax Rate per Acre 5. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Assigned Special Tax Rates in Table 1 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 6. Section 3 of the RMA may only be modified prior to the issuance of Bonds. 7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein. I hereby declare under penalty of perjury that the above representations are true and correct. Property Owner By: Date: By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2024-2(Moss Street) receipt of this Certificate and modification of the RMA as set forth in this Certificate. City of Chula Vista By: Date: CFD Administrator Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista By: Date: CFD Administrator Page 84 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda APPENDIX B BOUNDARY MAP Page 85 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 86 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda APPENDIX C PRELIMINARY BUDGET FOR FACILITIES AND FEES Page 87 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 88 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2024-2 (Moss Street) (“CFD No. 2024-2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2024-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended. “Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2024-2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2024-2, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2024-2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2024-2, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2024-2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts for Special Tax delinquency monitoring and the estimated or advanced by the City or CFD No. 2024-2 for any other administrative purposes of CFD No. 2024-2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. Page 89 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2 “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2024-2 issued or incurred whether in one or more series, secured by the levy of Special Taxes. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2024-2. “Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2024-2” means the City of Chula Vista Community Facilities District No. 2024-2 (Moss Street). “City” means the City of Chula Vista, California. “City Council” means the City Council of the City acting as the legislative body of CFD No. 2024-2 under the Act. “Condominium” means a unit, whether attached or detached, meeting the statutory definition of a condominium contained in the California Civil Code Section 4125(b). “County” means the County of San Diego, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below. Page 90 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 3 “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3A below. Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map. “Master Developer” means Shea Homes Limited Partnership, a California Limited Partnership or its successors or assignees. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C and 3.D below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8 below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2024-2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below. “Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2024-2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that Page 91 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 4 any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Special Tax” means any special tax levied within CFD No. 2024-2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2024-2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement. “State” means the State of California. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2024-2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class based on its Building Square Footage. In the event a Building Permit is issued for one or more Residential Property Condominiums prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Condominium for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Condominium for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Condominiums for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; Page 92 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 5 the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Condominiums to the total number of Condominiums entitled to be developed on such Assessor’s Parcel. The total number of Condominiums entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Table 1 below. Table 1 Assigned Special Tax Rates for Developed Property Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $3,280.00 2 Residential Property 1,201 to 1,475 $3,345.00 3 Residential Property 1,476 to 1,675 $4,128.00 4 Residential Property 1,676 to 1,825 $4,362.00 5 Residential Property 1,826 to 1,925 $4,585.00 6 Residential Property > 1,925 $4,763.00 On each July 1, commencing July 1, 2027 and ending July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax for Developed Property When a Final Map or a condominium plan is recorded within CFD No. 2024-2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential Property shall be determined as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula: The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. $94,041 x A L B = Page 93 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 6 Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. C. Maximum Special Tax for Developed Property Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property shall be the greater of the applicable Assigned Special Tax or Backup Special Tax. D. Maximum Special Tax for Undeveloped Property The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be $94,041 per Acre. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. E. Multiple Land Use Classes In some instances, an Assessor’s Parcel may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. F. Special Tax Reduction prior to issuance of Bonds Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from property owner and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service with respect to the amount of Bonds requested to be issued in such written requests. If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates may be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential Property with the written consent of Master Developer, which consent shall not be unreasonably withheld, and the CFD Administrator. It shall not be required that reductions among each “Building Square Footage” range of Residential Property be proportional. Additionally, the “CFD Public Facilities Costs” amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in substantially the form attached hereto as Exhibit “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County. Once bonds are issued for CFD No. 2024-2, this paragraph 3.F shall become void. Page 94 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 7 4. METHOD OF APPORTIONMENT For each Fiscal Year, commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2024-2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Non-Residential property including, but not limited to, commercial and industrial parcels, and (v) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres. Assessor’s Parcels, which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2024- 2 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 5 that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 6. APPEALS Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such an error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year Page 95 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 8 prior to the payment date, (ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the property owner believes such an error still exists, such person may file a written notice of appeal with the City Council. Upon receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Council or designee shall be final and binding to all persons. 7. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 8. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8: “CFD Public Facilities Costs” means an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2024-2, or such lower number as shall be determined by the CFD Administrator\. “Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2024-2. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. Page 96 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 9 The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Fiscal Agent and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Costs Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2024-2, assuming all Building Permits have been issued (build- out) within CFD No. 2024-2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). Page 97 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 10 8. Calculate the administrative fees and expenses of CFD No. 2024-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). 9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date. 10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after taking into account such prepayment. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2024-2. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Page 98 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 11 Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within 60 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2024-2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 9. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2066-67. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Page 99 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda A-1 EXHIBIT A Page 100 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 101 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-2 EXHIBIT B CERTIFICATE TO AMEND THE SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA TAX REDUCTION CERTIFICATE 1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the "RMA") for Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista (“CFD No. 2024-2” or the “CFD”). 2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Table 1 of the RMA. 3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2024-2 shall be amended and restated in full as follows: Table 1: Assigned Special Tax for Developed Property 4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2024-2 classified as Residential Property shall be amended as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $ 2 Residential Property 1,201 to 1,475 $ 3 Residential Property 1,476 to 1,675 $ 4 Residential Property 1,676 to 1,825 $ 5 Residential Property 1,826 to 1,925 $ 6 Residential Property > 1,925 $ R x A L B = Page 102 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-2 The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as residential Property. R= Backup Special Tax Rate per Acre 5. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Assigned Special Tax Rates in Table 1 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 6. Section 3 of the RMA may only be modified prior to the issuance of Bonds. 7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein. I hereby declare under penalty of perjury that the above representations are true and correct. Property Owner By: Date: By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2024-2(Moss Street) receipt of this Certificate and modification of the RMA as set forth in this Certificate. City of Chula Vista By: Date: CFD Administrator Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista By: Date: CFD Administrator Page 103 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 1 ACQUISITION/FINANCING AGREEMENT COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) THIS AGREEMENT, dated as of ____________, 2025 (the “Agreement”), is made and entered into by and between the CITY OF CHULA VISTA, a charter city duly organized and validly existing under the Constitution and laws of the State of California, (the “City”), COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET), a community facilities district formed and existing pursuant to the laws of the State of California (the “CFD No. 2024-2”), and SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership (the “Developer”). WHEREAS, the Developer is the developer of certain property within that portion of the City known as 676 Moss Street described in Exhibit “B” attached hereto and incorporated herein by this reference (the “Property”) and Developer has obtained certain land use entitlements from the City which permit the development of the Property with approximately 141 attached residential dwelling units on approximately 6.92 gross acres (the “Development Project”); and WHEREAS, in connection with the development of the Development Project, Developer is required to pay certain City fees for the construction or acquisition of certain public facilities to be owned, operated, and maintained by the City needed to serve the Development Project (the “City Fees”); and water capacity fees of the Sweetwater Authority (the “SA Fees”), a publicly- owned water agency and joint powers agency (together the City Fees and SA Fees are collectively referred to as the “Fees”) described further in Exhibit “A” attached hereto and incorporated herein by this reference; and WHEREAS, the City and the Developer desire that this Agreement provide that CFD No. 2024-2 finance the City Fees in the amounts equal to the development impact fee obligations imposed pursuant to the applicable provisions of the Chula Vista Municipal Code in effect at the time of payment of such City Fees and as designated in Exhibit “A” hereto; and WHEREAS, the City and the Developer agree that the City shall have no role or responsibility whatsoever in determining the Developer’s total SA Fees obligation to the Sweetwater Authority and Developer also desires that this Agreement, subject to the successful approval of a joint community facilities agreement (the “JCFA”) to be negotiated separately, provide that CFD No. 2024-2 finance the SA Fees in the amounts as designated in Exhibit “A” hereto; and WHEREAS, the Developer requested that the City consider and the City did consider and establish CFD No. 2024-2 under the terms and conditions of the “Mello-Roos Community Facilities Act of 1982,” as amended (Government Code Section 53311 and following) (the “Act”), for the purpose of financing the Fees; and WHEREAS, the City and the Developer further agree that the Fees shall be funded solely from the proceeds of special taxes of CFD No. 2024-2 (“Special Taxes”) levied in accordance Page 104 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 2 with the Rate and Method of Apportionment of Special Tax (the “Rate and Method”) and bonds which are proposed to be issued by CFD No. 2024-2 and which shall be secured by the levy of the Special Taxes (“Bonds”); and WHEREAS, the City and CFD No. 2024-2 are willing to have CFD No. 2024-2 finance the Fees, subject to the requirements of the Act, the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts adopted by the City Council (the “Goals and Policies”), and this Agreement and Developer desires that CFD No. 2024-2 so finance the Fees. NOW, THEREFORE, IT IS MUTUALLY AGREED between the respective parties as follows: SECTION 1. Recitals. The above recitals are all true and correct and are incorporated herein by this reference. SECTION 2. Agreement Contingent. As a precondition to the sale of each series of the Bonds of CFD No. 2024-2, Developer shall pay in cash to City an origination charge of 1.0% of the amount of the principal amount of such series of the Bonds (“Origination Payment”). Each such Origination Payment shall be at Developer’s own expense and not recoverable from the proceeds of the Special Taxes or from the proceeds of the Bonds. In the event that any series of the Bonds are, for any reason, not sold, the amount of the Origination Payment made for such series of the Bonds shall be returned to the Developer. The City may, at its option, suspend the performance of its obligations under this Agreement if any legal challenge is filed relating to the validity or enforceability of this Agreement, CFD No. 2024-2 proceedings, or the issuance of the Bonds. The obligations of the City and CFD No. 2024-2 hereunder shall be reinstated upon the entry of a final judgment in any such proceedings upholding the validity and enforceability of the Agreement, CFD No. 2024-2 proceedings, and the issuance of the Bonds. In the event that a final judgment or other final and non-appealable resolution is entered invalidating or declaring unenforceable this Agreement, CFD No. 2024-2 proceedings, or the issuance of the Bonds, the City and CFD No. 2024-2 may, at their option, terminate this Agreement. SECTION 3. Notice of Special Tax. Developer, or the successor or assigns of the Developer, including but not limited to all Builders (as such term is defined in Section 4 below), shall provide written notice to all potential purchasers of lots in the form required pursuant to Government Code Section 53341.5 and/or such additional requirements as may be established by the City so advising the potential owner of the fact of CFD No. 2024-2, with said document being executed by the potential purchaser. Such notice shall be provided to the potential purchaser a reasonable time before the potential purchaser becomes contractually committed to purchase the lot so that the potential purchaser may knowingly consider the impact of the special tax in the decision to purchase the lot. A copy of all such notices executed by actual purchasers shall be sent to the Development Services Director of the City, or their designee (the “DSD Director”). Page 105 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 3 SECTION 4. Limitation of Aggregate Taxes and Assessments. Developer agrees to include in any future agreement to sell all or any portion of the property to any person or entity for the purpose of constructing and marketing owner-occupied residential dwelling units (each, a “Builder”) provisions requiring the inclusion of the following “escrow instructions” in all sales by such Builder to residential home owners and further agrees to the inclusion of such escrow instructions in all sales by each such Builder to residential home owners: (a). At or prior to the close of each such escrow with a residential homeowner, the escrow company shall apply a “calculation formula” previously approved by the DSD Director and deposited with the escrow company by the Builder to determine the aggregate of all annual ad valorem property taxes, all special taxes authorized to be levied to finance the construction or acquisition of public facilities, and all assessment installments authorized to be levied to finance the construction or acquisition of public facilities, and any other tax, fee, charge, or assessment applicable to the subject property (the “Total Annual Taxes and Assessments”) applicable to the parcel subject to such escrow (the “Applicable Parcel”). (b). If the Total Annual Taxes and Assessments exceed 2% of the sales price of the Applicable Parcel, the escrow company will make immediate written demand upon the Builder for deposit into the escrow of the funds necessary to prepay or partially prepay the special tax obligation for CFD No. 2024-2 so that the Total Annual Taxes and Assessments will thereafter be equal to or less than 2% of the sales price of the Applicable Parcel. Such funds must be received by the escrow company prior to the close of escrow of the sale of the Applicable Parcel. The calculation of the prepayment amount for CFD No. 2024-2 shall be in accordance with the method of prepayment of special tax as set forth in the Rate and Method. Upon closing of such escrow, the amount so deposited by the Builder pursuant to this escrow instruction shall be sent by the escrow company to the Director of Finance of the City, together with written instructions that such amount is to be used to prepay or partially prepay the special tax obligation of the Applicable Parcel for CFD No. 2024-2. The provisions of this Section 4 related to sales by Builders to residential homeowners shall also apply to any sale by Developer of a parcel to a residential home owner. In addition to any other remedy provided for by law or in equity, the City may enforce the provisions of this Section 4 by an action for specific performance or injunctive relief or both. SECTION 5. Relationship to Public Works. This Agreement is for, among other things, the construction and acquisition of public facilities to be financed with the City Fees by City, the levy of Special Taxes, and sale of the Bonds for the payment of construction and acquisition costs for such public facilities and such other amounts as are herein provided, and is not intended to be a public works contract. In performing its obligations under this Agreement, Developer is an independent contractor and not the agent of City. City shall have no responsibility for payment of any Developer debts whatsoever. Page 106 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 4 SECTION 6. Sale of Bonds. At the request of Developer, the City shall consider proceeding with the issuance and sale of Bonds, in one or more series as tax-exempt and/or taxable Bonds. The Bonds shall be sized so that as of the date of issuance of such series of the Bonds the aggregate appraised value of all taxable properties within CFD No. 2024-2 for which such Bonds are being issued shall comply with the value-to-lien standards set forth in the Goals and Policies or as otherwise approved by the City Council pursuant to the Goals and Policies. In addition, as to any subsequent series of Bonds, the issuance of such Bonds shall comply with such parity bonds test as may be set forth in the bond indenture. The appraised value of taxable property for purposes of this paragraph shall be determined by an independent appraisal undertaken for the City utilizing appraisal assumptions approved by the City and, as to each subsequent series of the Bonds, consistent with the applicable parity bonds requirements. The proceeds of each series of the Bonds shall be used in the following priority to: (i) fund a reserve fund for the payment of principal and interest with respect to such Bonds; (ii) fund capitalized interest on such Bonds in an amount not to exceed the amount required to pay interest on such Bonds until sufficient special taxes may be placed on the tax roll to pay the scheduled debt service on such Bonds; (iii) pay for costs of issuance of such Bonds including, without limitation, underwriter’s discount, bond counsel fees, printing, and paying agent fees; (iv) pay for the costs of forming CFD No. 2024-2, including reimbursement of advances of funds to the City by Developer to pay for the City’s legal, engineering, financial, special tax, appraisal and market absorption consulting expenses incurred relating to the formation of CFD No. 2024-2 and issuance of the Bonds; (v) pay the City Fees; and (iv) pay the SA Fees. The timing of the issuance and sale of each series of the Bonds, the terms and conditions upon which such Bonds shall be issued and sold, the method of sale of such Bonds and the pricing thereof shall be determined solely by the City and shall conform to all requirements of the Act, applicable state and federal laws, the Goals and Policies, and this Agreement. The sale of each series of the Bonds shall be subject to receipt by the City of a competitively bid or negotiated bond purchase agreement which is acceptable to the City. The sale of each series of the Bonds shall also be conditional upon the preparation of an official statement that is, in the sole judgment of the City, “deemed final” as such term is used in Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”). The principal amount of each series of the Bonds to be issued shall be determined in accordance with the Goals and Policies such that the maximum projected annual special tax revenues securing such Bonds and all outstanding parity Bonds, equals at least 110% of the projected annual gross debt service on all of the Bonds following the issuance of such series of the Bonds. The Bonds shall be issued as tax-exempt and/or taxable bonds in the amounts determined by the City in consultation with its bond counsel and municipal advisor. Developer, on behalf of itself, any affiliates of the Developer, and any successor or assign of the Developer including but not limited to the Builder, agrees: (a) to provide all information regarding the development of the property within CFD No. 2024-2, including the financing plan for such development, which are necessary to ensure that the official statement for each series of the Bonds complies with the requirements of the Rule and all other applicable federal and state securities laws; (b) to enter into a continuing disclosure agreement to provide such continuing Page 107 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 5 disclosure pertaining to CFD No. 2024-2, the development thereof and the Developer as necessary to ensure ongoing compliance with the continuing disclosure requirements of the Rule; and (c) to cause its counsel to provide an opinion of such counsel in a form satisfactory to the underwriter of such series of the Bonds and underwriter’s counsel or disclosure counsel, as applicable. SECTION 7. Development Impact Fee Credit, Payment and Reimbursement. Proceeds of the Bonds in an amount equal to the City Fees obligation of the Development Project (the “City Fees Bond Proceeds”) shall be deposited and set aside in the “City Construction Account of the Project Fund” established pursuant to the indenture or fiscal agent agreement relating to the Bonds (the “Indenture”). The City Fees obligation amount shall be established based on the amount of the City Fees at the time of payment. The use of such proceeds shall be for any lawful purpose for which the City Fees were imposed. Upon the deposit of the City Fees Bond Proceeds in the City Construction Account of the Project Fund, such amount shall be credited against the Development Project’s City Fees obligation. If and to the extent that the Development Project’s actual City Fees obligation exceeds the amount of the City Fees Bond Proceeds, the balance of the City Fees obligation shall be payable pursuant to the provisions of the City’s Municipal Code. If and to the extent that the Development Project’s actual City Fees obligation is less than the City Fees Bond Proceeds, such surplus shall remain in the City Construction Account of the Project Fund and used for any lawful purpose for which the City Fees were imposed and pursuant to the Indenture. City Fees Bond Proceeds may be drawn by the City at any time. Proceeds of the Bonds in an amount equal to the Development Project’s SA Fees obligation (the “SA Fees Bond Proceeds”) shall be deposited and set aside in the SA Construction Account of the Project Fund established pursuant to the Indenture. The SA Fees obligation amount shall be established as provided in the JCFA and the City shall have no obligation to ensure such SA Fees Bond Proceeds satisfy the SA Fees obligation to the Authority. The SA Fees Bond Proceeds shall be distributed to the Authority pursuant to the terms of the JCFA, the Indenture, and applicable state and federal laws. SECTION 8. Supplemental Bill for Payment of Special Taxes. Developer acknowledges that the Rate and Method provides that the annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2024-2, may directly bill the Special Tax, or may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The City has represented to the Developer that delinquencies in the payment of Special Taxes intended to be collected on property tax bills have occurred in other community facilities districts formed by the City as a result of difficulties experienced by the office of the Treasurer-Tax Collector of the County of San Diego (the “Tax Collector”) in the timely billing and collection of such special taxes. If and to the extent that the Tax Collector fails, for whatever reason, to timely bill the full amount of the Special Taxes levied on properties owned by the Developer or any affiliate of the Developer within CFD No. 2024-2, the City, on behalf of CFD No. 2024-2, may elect to directly and separately bill (“Direct Bill”) the Developer for such deficiency and Developer agrees to: (a) pay such deficiency within the time period specified in such Direct Bill which shall be no less than Page 108 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 6 thirty calendar days from the date of mailing of such Direct Bill; or (b) provide the Director of Finance with proof of payment to the Tax Collector of such deficiency in a form satisfactory to the Director of Finance. Should the Developer pay such deficiency directly to the City pursuant to a Direct Bill, the City agrees upon receipt of such payment to timely submit an amendment of the Special Tax levy on the Developer’s property to the Tax Collector to reduce such levy by the amount of such payment. Developer shall pay all costs associated with such amendment of the Special Tax levy contemplated in the preceding sentence. Delinquency in the payment of a Direct Bill sent pursuant to the preceding paragraph shall not be enforceable as a personal obligation of the Developer but shall be enforceable in the same manner subject to the same penalties, interest, and foreclosure provisions, as if such delinquency had been for the payment of Special Taxes billed on the property tax bill. SECTION 9. Conflict with Other Agreements. Except as specifically provided herein, nothing contained herein shall be construed as releasing Developer or the Builder from any condition of development or requirement imposed by any other agreement or obligation imposed by the City. Any and all other taxes, fees, assessments, or charges due from Developer to the City are not affected by this Agreement and must be paid in full prior to receiving final development approval. SECTION 10. Indemnification by Developer. Developer shall defend, indemnify and hold harmless the City, its officers, directors, employees and agents, and CFD No. 2024-2, its officers, directors, employees and agents (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, including court costs and reasonable attorneys’ fees by reason of, or resulting from, or arising out of any action or occurrence related to CFD No. 2024-2 taken or omitted by the Developer, its employees, agents, independent contractors and/or representatives. Notwithstanding the foregoing, Developer shall have no obligation to defend, indemnify or hold harmless the Indemnified Parties from and against any claims, liabilities, losses or damages (including court costs and attorneys’ fees) which result from or arise out of the sole negligence or willful misconduct of an Indemnified Party. Except as set forth in this Section 10, no provision of this Agreement shall in any way limit the extent of the responsibility of Developer for payment of damages resulting from the operations of the Developer, its agents, employees or contractors. SECTION 11. General Standard of Reasonableness. Any provision of this Agreement which requires the consent, approval, discretion or acceptance of any party hereto or any of their respective employees, officers or agents shall be deemed to require that such consent, approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly incorporates a different standard. SECTION 12. Entire Agreement; Amendment. This Agreement and the agreements expressly referred to herein contains all of the agreements of the parties hereto with respect to the matters contained herein and no prior or contemporaneous agreement or understandings, oral or written, pertaining to any such matters shall be effective for any purpose. No provision of this Page 109 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 7 Agreement may be modified, waived, amended or added to except by a writing signed by the party against which the enforcement of such modification, waiver, amendment or addition is or may be sought. SECTION 13. Notices. Any notice, payment, or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or seventy-two (72) hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid, addressed as follows: Developer: Shea Homes Limited Partnership 990 Mesa Rim Road, Suite 200 San Diego, CA 92121 Attn: Paul Barnes City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Manager Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party. SECTION 14. Severability. If any provision of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. SECTION 15. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. Developer may not assign its rights or obligations hereunder except upon written notice to City within ten (10) days of the date of such assignment indicating the name and address of the assignee. Upon such notice and the assumption by the assignee of the rights, duties and obligations of the Developer arising under or from this Agreement, Developer shall be released by City from all future duties or obligations rising under or from this Agreement. Notwithstanding the preceding sentence, Developer may assign its rights and obligations hereunder as security to lenders for the purpose of obtaining loans to finance development within CFD No. 2024-2, but no such assignment shall release Developer from its obligations hereunder to City. SECTION 16. Governing Law and Venue. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. Venue shall be held exclusively in San Diego County. SECTION 17. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by any other party, or the failure by a party to exercise its rights under the default of any other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by any other party with the terms of this Agreement thereafter. Page 110 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 8 SECTION 18. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. SECTION 19. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. SECTION 20. Construction of Agreement. This Agreement has been reviewed by legal counsel for both the City and the Developer and shall be deemed for all purposes to have been jointly drafted by the City and the Developer. No presumption or rule that ambiguities shall be construed against the drafting party shall apply to the interpretation or enforcement of this Agreement. The language in all parts of this Agreement, in all cases, shall be construed as a whole and in accordance with its fair meaning and not strictly for or against any party and consistent with the provisions hereof, in order to achieve the objectives of the parties hereunder. The captions of the sections and subsections of this Agreement are for convenience only and shall not be considered or referred to in resolving questions of construction. SECTION 21. Recitals; Exhibits. Any recitals set forth above and any attached exhibits are incorporated by reference into this Agreement. SECTION 22. Authority of Signatories. Each signatory and party hereto hereby represents and warrants to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions and/or other actions have been taken so as to enable such party to enter into this Agreement. SECTION 23. Recordation. The parties shall execute, acknowledge and cause this Agreement, or a memorandum of this Agreement in a form satisfactory to the parties hereto, to be recorded against the Property in the Official Records of San Diego County. [End of page. Next page is signature page.] Page 111 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 S - 1 Signature Page to Acquisition/Financing Agreement by and between the City of Chula Vista and Shea Homes Limited Partnership EXECUTED by and between the parties hereto on the day and year first hereinabove written. “CITY” CITY OF CHULA VISTA JOHN MCCANN, MAYOR CITY OF CHULA VISTA STATE OF CALIFORNIA ATTEST: APPROVED AS TO FORM: KERRY K. BIGELOW, CITY CLERK MARCO A. VERDUGO, CITY ATTORNEY CITY OF CHULA VISTA CITY OF CHULA VISTA STATE OF CALIFORNIA STATE OF CALIFORNIA Page 112 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 S - 2 Signature Page to Acquisition/Financing Agreement by and between the City of Chula Vista and Shea Homes Limited Partnership “DEVELOPER” SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership By: Paul Barnes Division President, San Diego By: Page 113 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 A - 1 EXHIBIT “A” ACQUISITION AND FINANCING AGREEMENT FOR CFD 2024-2 (MOSS STREET) FEES DESCRIPTION AND ESTIMATED COSTS DEVELOPMENT IMPACT AND OTHER ASSOCIATED FEES Fee Category Estimated Fees City of Chula Vista Fees Total City of Chula Vista Fees Water Capacity Fees Total Fees: $5,148,071 Page 114 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00082\44070296.1 #224030 v2 9070.37 B - 1 EXHIBIT “B” LEGAL DESCRIPTION OF PROPERTY The property located in the City of Chula Vista, County of San Diego, State of California, identified by San Diego County Assessor's Parcel Numbers: 618-010-31-00, 618-010-32-000, 618-010-26-01. Page 115 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 1 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY OF CHULA VISTA 276 Fourth Ave., Building A Chula Vista, CA 91910 Attention: City Clerk NOTICE OF SPECIAL TAX LIEN CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and the Mello-Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.), as amended, (the “Act”) specifically Section 53328.3 of the Act, the undersigned City Clerk of the City of Chula Vista, County of San Diego, State of California, hereby gives notice (the “Notice”) of the foregoing and that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Chula Vista, County of San Diego, State of California. The special tax secured by this lien is authorized to be levied for the purpose of paying the principal of and the interest on bonds, the proceeds of which are being used to finance facilities and development fees, including incidental expenses, as described in Exhibit “A” attached hereto and incorporated by this reference herein. The special tax is authorized to be levied within the City of Chula Vista Community Facilities District No. 2024-2 (Moss Street) (the “District”), which has now been officially formed and the lien of special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with the Section 53330.5 of the Act. The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in the rate and method of apportionment of the special tax (the “Rate and Method”) attached hereto as Exhibit “B” and by this reference incorporated herein. Conditions under which the obligation to pay the special tax (as defined in the Rate and Method) may be prepaid and permanently satisfied and the lien of the special tax cancelled are set forth in Section 8 of the Rate and Method. Notice is further given that upon the recording of this Notice in the office of the County Recorder of the County of San Diego, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the District, in accordance with Section 3115.5 of the California Streets and Highways Code. Page 116 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2 The names of the owners and the assessor’s tax parcel numbers of the real property included within the District are as set forth in Exhibit “C” attached hereto and by this reference made a part hereof. Reference is made to the boundary map of the District recorded in Book 52 of Maps of Assessment and Community Facilities Districts on July 28, 2025, at Page 62 in the office of the County Recorder for the County of San Diego, State of California, as Document No. 2025- 7000350 which map is the final boundary map of the District as set forth in Exhibit “D”. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Finance Director at the City of Chula Vista, 276 Fourth Ave., Building A, Chula Vista, CA 91910, phone (619) 691-5250. Dated: _______________, 2025 By: __________________________ Kerry K. Bigelow, MMC City Clerk City of Chula Vista Page 117 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda A-1 EXHIBIT “A” DESCRIPTION OF PUBLIC FACILITIES AND FEES The public facilities (the “Facilities”) authorized to be financed by the levy of special taxes within the proposed Community Facilities District No. 2024-2 (Moss Street) (the “District”) include but are not limited to: A. Street and transportation improvements including parking, rights of way, curbs and gutters, and other improvements relating thereto; park acquisition and improvements; water improvements; and sewer improvements, including collection, transportation, treatment and sewer disposal; and general civic facilities such as civic center, police, fire suppression, library, corporation yard, and public recreation; and B. The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed District, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed District, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities. Page 118 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-1 EXHIBIT “B” RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA Page 119 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2024-2 (Moss Street) (“CFD No. 2024-2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2024-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1.DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended. “Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2024-2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2024-2, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2024-2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2024-2, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2024-2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts for Special Tax delinquency monitoring and amounts estimated or advanced by the City or CFD No. 2024-2 for any other administrative purposes of CFD No. 2024-2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. Page 120 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 2 “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2024-2 issued or incurred whether in one or more series, secured by the levy of Special Taxes. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2024-2. “Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2024-2” means the City of Chula Vista Community Facilities District No. 2024-2 (Moss Street). “City” means the City of Chula Vista, California. “City Council” means the City Council of the City acting as the legislative body of CFD No. 2024-2 under the Act. “Condominium” means a unit, whether attached or detached, meeting the statutory definition of a condominium contained in the California Civil Code Section 4125(b). “County” means the County of San Diego, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below. Page 121 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 3 “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section 3A below. Note: Land Use Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map. “Master Developer” means Shea Homes Limited Partnership, a California Limited Partnership or its successors or assignees. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C and 3.D below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8 below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2024-2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below. “Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2024-2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that Page 122 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 4 any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Special Tax” means any special tax levied within CFD No. 2024-2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2024-2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement. “State” means the State of California. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2024-2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class based on its Building Square Footage. In the event a Building Permit is issued for one or more Residential Property Condominiums prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Condominium for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Condominium for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Condominiums for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; Page 123 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 5 the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Condominiums to the total number of Condominiums entitled to be developed on such Assessor’s Parcel. The total number of Condominiums entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded condominium map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Table 1 below. Table 1 Assigned Special Tax Rates for Developed Property Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $3,280.00 2 Residential Property 1,201 to 1,475 $3,345.00 3 Residential Property 1,476 to 1,675 $4,128.00 4 Residential Property 1,676 to 1,825 $4,362.00 5 Residential Property 1,826 to 1,925 $4,585.00 6 Residential Property > 1,925 $4,763.00 On each July 1, commencing July 1, 2027 and ending July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax for Developed Property When a Final Map or a condominium plan is recorded within CFD No. 2024-2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential Property shall be determined as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula: The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. $94,041 x A L B = Page 124 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 6 Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. C. Maximum Special Tax for Developed Property Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property shall be the greater of the applicable Assigned Special Tax or Backup Special Tax. D. Maximum Special Tax for Undeveloped Property The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be $94,041 per Acre. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. E. Multiple Land Use Classes In some instances, an Assessor’s Parcel may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. F. Special Tax Reduction prior to issuance of Bonds Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from property owner and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service with respect to the amount of Bonds requested to be issued in such written requests. If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates may be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential Property with the written consent of Master Developer, which consent shall not be unreasonably withheld, and the CFD Administrator. It shall not be required that reductions among each “Building Square Footage” range of Residential Property be proportional. Additionally, the “CFD Public Facilities Costs” amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in substantially the form attached hereto as Exhibit “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County. Once bonds are issued for CFD No. 2024-2, this paragraph 3.F shall become void. Page 125 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 7 4. METHOD OF APPORTIONMENT For each Fiscal Year, commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2024-2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Non-Residential Property including, but not limited to, commercial and industrial parcels, and (v) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres. Assessor’s Parcels, which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2024-2 to less than 6.24 Acres, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2024- 2 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 5 that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 6. APPEALS Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such an error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year Page 126 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 8 prior to the payment date, (ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the property owner believes such an error still exists, such person may file a written notice of appeal with the City Council. Upon receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Council or designee shall be final and binding to all persons. 7. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 8. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8: “CFD Public Facilities Costs” means an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2024-2, or such lower number as shall be determined by the CFD Administrator. “Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2024-2. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. Page 127 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 9 The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within 30 days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Fiscal Agent and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Costs Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2024-2, assuming all Building Permits have been issued (build- out) within CFD No. 2024-2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). Page 128 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 10 8. Calculate the administrative fees and expenses of CFD No. 2024-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). 9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date. 10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after taking into account such prepayment. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2024-2. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Page 129 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 11 Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within 60 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2024-2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 9. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2066-67. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Page 130 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda A-1 EXHIBIT A Page 131 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-2 EXHIBIT B CERTIFICATE TO AMEND THE SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA TAX REDUCTION CERTIFICATE 1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the "RMA") for Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista (“CFD No. 2024-2” or the “CFD”). 2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Table 1 of the RMA. 3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2024-2 shall be amended and restated in full as follows: Table 1: Assigned Special Tax for Developed Property 4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2024-2 classified as Residential Property shall be amended as follows: For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Map area of CFD No. 2024-2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Residential Property < 1,201 $ 2 Residential Property 1,201 to 1,475 $ 3 Residential Property 1,476 to 1,675 $ 4 Residential Property 1,676 to 1,825 $ 5 Residential Property 1,826 to 1,925 $ 6 Residential Property > 1,925 $ R x A L B = Page 132 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda B-2 The terms have the following meanings: B = Backup Special Tax per Lot. A = Acreage classified or to be classified as Residential Property in such Final Map. The land area applicable to a Condominium shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all the Condominiums located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property. R = Backup Special Tax Rate per Acre 5. On each July 1, commencing July 1, 2027, and ending July 1, 2037, the Assigned Special Tax Rates in Table 1 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 6. Section 3 of the RMA may only be modified prior to the issuance of Bonds. 7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein. I hereby declare under penalty of perjury that the above representations are true and correct. Property Owner By: Date: By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2024-2(Moss Street) receipt of this Certificate and modification of the RMA as set forth in this Certificate. City of Chula Vista By: Date: CFD Administrator Community Facilities District No. 2024-2 (Moss Street) of the City of Chula Vista By: Date: CFD Administrator Page 133 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda C-1 EXHIBIT “C” NAMES OF THE OWNERS AND ASSESSOR’S PARCEL NUMBERS OF THE REAL PROPERTY WITHIN DISTRICT Owner Assessor's Parcel Numbers Shea Homes Limited Partnership 618-010-26-01 Shea Homes Limited Partnership 618-010-31-00 Shea Homes Limited Partnership 618-010-32-00 Page 134 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda D-1 EXHIBIT “D” CFD BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 2024-2 (MOSS STREET) Page 135 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 136 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 3 P a g e | 1 September 23, 2025 ITEM TITLE Campaign Contributions: Adopt an Ordinance Adopting Comprehensive Updates to Chula Vista Municipal Code Chapter 2.52 Regarding Various Provisions of the Campaign Contribution Ordinance Location: No specific geographic location Department: City Clerk & City Attorney 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 Adopt an ordinance adopting comprehensive updates to Chula Vista Municipal Code Chapter 2.52 regarding various provisions of the City’s Campaign Contribution Ordinance. (Second Reading and Adoption) Summary This ordinance was placed on first reading on September 9, 2025. The original staff report can be accessed at the following link: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=54210 Please note, the original staff report may include information beyond the scope of the ordinance proposed for adoption with this action. For questions, please contact the staff indicated in the original staff report or cityclerk@chulavistaca.gov. Page 137 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda SECOND READING AND ADOPTION ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 2.52, “CAMPAIGN CONTRIBUTIONS,” AND ADJUSTING THE CAMPAIGN CONTRIBUTION LIMITS WHEREAS, Chula Vista City Charter section 905 requires the City to “adopt reasonable regulations related to campaign contributions” in order to “avoid the potential for undue or improper influence over Elected Officials resulting from excessive campaign contributions;” and WHEREAS, in 1989, the City adopted Chula Vista Municipal Code Chapter 2.52, “Campaign Contributions,” in compliance with the City Charter requirements (Campaign Contribution Ordinance); and WHEREAS, the City last conducted a comprehensive update of the Campaign Contribution Ordinance in 2011 and amended it to its current form through a series of subsequent amendments; and WHEREAS, on February 21, 2023, the City Attorney gave a presentation on potential revisions to the Campaign Contribution Ordinance and the Council formed an ad hoc subcommittee; and WHEREAS, on October 24, 2023, the ad hoc subcommittee gave an update on campaign contributions and the City Council provided direction to the City Attorney and the City Clerk to conduct a comprehensive review and propose amendments to the Campaign Contribution Ordinance; and WHEREAS, the City Attorney and the City Clerk have undertaken a comprehensive review of the Campaign Contribution Ordinance and have recommended revisions to the ordinance that revise contribution limits, the time period for accepting contributions, rules for outstanding debt, complaint processing, and remove duplicative provisions; and WHEREAS, the City Clerk’s review focused on administrative and technical aspects, including clarifications to reduce confusion, and reformatting and reorganizing for clarity; and WHEREAS, based on City Council direction at the August 5, 2025, the amendments include, among other things, increasing the contribution limit for individuals, political party committees, and organizations; revising the starting date for a candidate’s acceptance of contribution to remove ambiguity; increasing the amount a candidate can personally loan their campaign; adding a timeframe for the repayment of loans and debts; increasing the maximum penalty for intentionally filing a false complaint; removing the requirement to notify opponents of loan contributions; clarifying enforcement processing and investigation obligations; adding defined terms; and removing provisions that are duplicative of state law; and Page 138 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 2 WHEREAS, the proposed changes are intended to prevent corruption, close campaign finance loopholes, ensure transparency, promote fairness, encourage accountability, foster public trust, and promote ethical behavior in the political process; and WHEREAS, the City Council wishes to adopt revised campaign contribution regulations. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: Section I. A. Chapter 2.52 of the Chula Vista Municipal Code is amended to read as follows: 2.52.010 Title and Purpose. A. Title. This chapter shall be known as the Chula Vista Campaign Contribution Ordinance. B. Purpose. The purpose of the Chula Vista Campaign Contribution Ordinance is intended to supplement the Political Reform Act of 1974 (California Government Code Sections 81000, et seq.) (the “PRA”), and the implementing regulations adopted by the Fair Political Practices Commission (the “FPPC”) (see California Code of Regulations, Title 2, Division 6, to protect the integrity of the City’s electoral process, and to serve the best interests of the citizens of this City by enacting campaign finance rules governing donors and Candidates for City Elective Offices. Inherent in the high cost of election campaigning is the potential for improper influence exercised by campaign contributors over elected officials. It is the intent of the City Council in enacting this chapter: 1. To preserve an orderly political forum in which individuals may express themselves effectively; 2. To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections; 3. To prevent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for local elective office; 4. To provide full and fair enforcement of all the provisions of this chapter; and 5. To encourage candidate adherence to election regulations by making them easier to understand. C. Applicability. The terms of this chapter are applicable to any contribution made to a Candidate or Candidate-controlled committee whether used by the Candidate to finance a current campaign or to pay debts incurred in prior campaigns. Page 139 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 3 2.52.020 Relationship to State Law. This chapter shall supplement, not replace, the Political Reform Act of 1974 (California Government Code 81000, et seq.) (the “PRA”), and the implementing regulations adopted by the Fair Political Practices Commission (the “FPPC”) (see California Code of Regulations, Title 2, Division 6). Donors and Candidates for City Elected Offices must comply with both the requirements of the PRA and the requirements of this chapter. However, to the extent of any conflict between the terms of this Chapter and the terms of the PRA, the terms of this Chapter shall govern to the maximum extent allowed by law. 2.52.030 Definitions. Unless otherwise defined in this Section, the terms and phrases used in this chapter shall have the same definitions given to them in the PRA (see California Government Code Sections 82000 through 82054) and the FPPC regulations. “Agent” means a person who acts on behalf or At the Behest of any other person or accepts a Contribution on behalf of a Candidate. If an individual acting as an Agent is also acting as an employee or member of a law, architectural, engineering or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual are “Agents.” “At the Behest” means made under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express prior consent of. “Campaign Statement” means the campaign statement required by the PRA (see California Government Code Sections 84200, et seq.). “Candidate” means any individual seeking any City Elective Office, the candidate’s campaign committee, committee(s) controlled by the Candidate, and Agents of the Candidate. “City Elective Office” means the offices of Mayor, City Council, or the City Attorney. The “same City Elective Office,” as that term is used in this chapter, means the Office of the Mayor with respect to the Mayor’s seat; the Office of the City Attorney with respect to the City Attorney’s seat; or, in the case of a Council District Seat, the specific Council District Seat numbered 1, 2, 3, or 4 held by a City Council member or campaigned for by a Candidate, or the numbered seat to which a City Council member or Candidate for such office may be reassigned as a result of redistricting. For example, if, during the redistricting process, the district lines are redrawn such that the residence of the City Council member representing and running for District 1 or a Candidate running for District 1 becomes located within District 2, 3 or 4, the member’s or Candidate’s District 1 seat, as the case may be, would be considered, for purposes of this chapter, the “same City Elective Office” as the District 2, 3 or 4 seat so re-assigned. “Citywide Seat” means the office of Mayor or City Attorney. Page 140 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 4 “Contribution” is defined in a manner identical with the definition found in Government Code Section 82015, contained within the Political Reform Act, and any related provisions in the California Code of Regulations. “Contribution Limit” is defined as the maximum allowed contribution from a Person, Organization, Political Party Committee, for any Single Election Contest as provide under CVMC 2.52.040. “Council District Seat” means the office of City Councilmember District 1, 2, 3, or 4. “Enforcement Authority,” under this chapter, means that special counsel appointed pursuant to CVMC 2.52.140. “Filer” is any elected officer, Candidate, committee, or other Person required to file Campaign Statements, reports or other documents. “FPPC Form” is any FPPC-developed Campaign Form, including but not limited to Form 460, 470, 496, 497. “General Election” is that election identified by Charter Section 901(B) as a “General Municipal Election.” “Net Debts Outstanding” has the same meaning as that set forth in title 2, section 18531.61 of the California Code of Regulations. “Organization” means a proprietorship, labor union, firm, partnership, joint venture, syndicate, business, business trust, company, corporation, association, or committee, including a political action committee. “Organization” does not include Political Party Committees, as that term is defined in California Government Code Section 85205. “Person” means a natural individual. “Political Party Committee” is defined in a manner identical with the definition found is as defined in California Government Code Section 85205. “Political Reform Act” or “PRA” means the California Political Reform Act of 1974, as amended, found at Government Code Section 81000, et seq., and includes regulations adopted by the Fair Political Practices Commission. “Primary Election” is that election identified by Charter Section 901(A) as a “Primary Municipal Election.” “Single Election Contest” means the election contest scheduled for any one of the following types of elections, each being a “Single Election Contest”: a Primary Election, a General Election or a Special Election. Page 141 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 5 “Special Election” is that election defined by Charter Section 901(C) as a “Special Municipal Election.” “Written Solicitation” means any writing, whether physical or electronic, soliciting, either directly or indirectly, a Contribution to a Candidate. “Written Solicitation” includes, but is not limited to, printed materials, websites, social media, and printed or electronic advertisements. 2.52.040 Campaign Contribution Dollar Limits A. Limitations on Contributions by Persons. No Person other than a Candidate shall make a Contribution to a Candidate, and no Candidate shall solicit or accept a Contribution from a Person other than the Candidate, for a Single Election Contest in an amount exceeding $800.00 for a Council District Seat or $1,200 for a Citywide Seat. The contribution limits in this subsection shall be subject to increase as provided in CVMC 2.52.040(D), below, or as may be required by law. B. Limitations on Contributions by Political Party Committees and Organizations. No Political Party Committee or Organization shall make a contribution to a Candidate, and no Candidate shall solicit or accept a Contribution from a Political Party Committee or Organization, for a Single Election Contest in an amount exceeding fifty percent of the limit established for members of the State Senate under Government Code Section 85301(a), as that limit may be adjusted by the Fair Political Practices Commission pursuant to Government Code Section 83124. C. Applicability. This chapter shall not apply to contributions made to a committee that is organized solely for the purpose of supporting or opposing the qualification for the ballot or adoption of one or more City measures. D. Adjustments. The contribution limits set forth in subsection (A) of this section shall be adjusted every odd-numbered year. The City Clerk shall adjust the contribution limits to reflect any changes in the Consumer Price Index for the San Diego area for the two-year period ending on December 31st of the previous year. Adjustments shall be rounded to the nearest $10.00. The City Clerk shall publish a public notice of any adjustments by March 1st of each odd-numbered year, or as soon after as practicable, following the Bureau of Labor Statistics’ release of the applicable Consumer Price Index data. The adjustments shall go into effect as soon as the public notice is published but shall apply only to elections held in subsequent years. The adjustments shall not be construed to raise the contribution limits applicable to past elections or to special elections held in the same year that the limits are adjusted. E. Expenditures. The contribution limitations imposed by this section are not limitations on expenditures and shall not be construed to limit the expenditures by any Candidate, Person, Organization, or committee. 2.52.045 Time Period for Accepting Contributions; Rules for Elections with Multiple “Single Election Contests.” Page 142 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 6 A. Starting Date for Acceptance of Contributions. No Person, Organization, or Political Party Committee shall make a contribution to any Candidate, and no such Candidate shall accept from any Person, Organization, or Political Party Committee such a contribution, sooner than the first day of the 11th month preceding a Single Election Contest. B. Contributions After an Election. A Contribution for an election may be accepted by a Candidate up to the first day of the 11th month after a Candidate’s withdrawal, defeat, or election to office, only to the extent that the Contribution does not exceed a Candidate’s Net Debts Outstanding for that election, and the Contribution does not otherwise exceed the applicable contribution limit for that election. If elected to office, the 11-month period begins on the date of the election. C. No Solicitations for a General Election Until Primary Election is Held. A Candidate may not solicit or accept contributions for a General Election prior to the holding of the Primary Election for that office. If a Primary Election is canceled because fewer than three qualified Candidates filed nomination papers for that election, a Candidate may begin soliciting and accepting additional Contributions for the General Election once the City Council takes action to cancel the Primary Election. 2.52.047 Carry-Over of Contributions. A. From a Primary Election to a General Election. A Candidate may carry over Contributions raised in connection with a Primary Election for City Elective Office to pay campaign expenditures incurred in connection with a subsequent General Election for the same City Elective Office. In the event that a Special Election for City Elective Office results in a run- off election for the same City Elective Office, a Candidate may carry over Contributions raised in connection with the Special Election for City Elective Office to pay campaign expenditures incurred in connection with a subsequent run-off election for the same City Elective Office. B. Redistricting. If, as a result of redistricting, a Candidate’s residence is assigned to a different district, the Candidate may carry over Contributions raised prior to City Council approval of the new district map to pay expenditures in connection with campaigning for election to the newly assigned Council District Seat; provided, however, if the election for the newly assigned Council District Seat will be held at the subsequent election cycle, the Candidate choosing to carry over Contributions raised to fund campaign activities for such subsequent election must discontinue any and all fundraising activities immediately upon City Council approval of the new district map creating re-assignment until fundraising for such subsequent election contest is authorized as provided in subsection 2.52.045(A). 2.52.050 Loans and Outstanding Debt. A. Personal Loan from the Candidate; Limitation. A Candidate shall not personally loan to their campaign with the intent to receive repayment of those funds in excess of the aggregate amount of $10,000 for a Single Election Contest. B. Loan from Others. Page 143 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 7 1. In General. Except as provided in subsection 2., below, a loan or extension of credit from a third-party Person or Organization made for the purpose of, or used by a Candidate for, funding such Candidate’s campaign activities shall be considered a Contribution from such maker of the loan or extender of credit and shall be subject to the Contribution limits specified in CVMC 2.52.040. 2. Exception: Loan by Candidate from Commercial Lending Institution. The contribution limit does not apply to loans made to a Candidate for the purpose of a campaign by a commercial lending institution in the lender’s regular course of business on terms available to members of the general public for which the Candidate is personally liable. C. Repayment of Loans. Repayment of personal loans from the Candidate to their campaign must occur not later than the first day of the 11th month after a Candidate’s withdrawal, defeat, or election to office. If elected to office, the 11-month period begins on the date of the election. D. Special Rules for Debts Owed to Campaign Consultants and Vendors. Except for legal fees and expenses incurred directly in connection with monitoring the count of absentee or provisional ballots for the election, or with a ballot recount conducted under Chapter 9 (commencing with Section 15600) of Division 15 of the Elections Code for the election, all bills from campaign consultants and vendors must not have been incurred past the date of the election for which the goods and services were provided. Candidates may only incur additional costs from ongoing services from a fundraiser, treasurer, payment processing service, and other related or ancillary services not later than the first day of the 11th month after the Candidate’s withdrawal, defeat, or election to office. If elected to office, the 11-month period begins on the date of the election. [Sections 2.52.060 and 2.52.070 are being deleted in their entirety] 2.52.090 Return of prohibited Contributions. If a Contribution is tendered and would be in violation of this chapter, it shall be returned by the Candidate to the contributor within 60 days of receipt by the Candidate. 2.52.100 Written Solicitations by Candidates. A. Notice Required. Any Candidate making a Written Solicitation for a Contribution for their campaign for City Elective Office shall include the following written notice in no less than eight-point type on each such solicitation, which shall include the then current limits for Contributions by Persons and Contributions by Organizations: 1. For a Council District Seat: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for a Council District Seat to [insert the current limit pursuant to CVMC Page 144 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 8 2.52.040(A)] dollars per Person and [insert the current limit pursuant to CVMC 2.52.040(B)] dollars per Organization. 2. For a Citywide Seat: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for a Citywide Seat to [insert the current limit pursuant to CVMC 2.52.040(A)] dollars per Person and [insert the current limit pursuant to CVMC 2.52.040(B)] dollars per Organization. B. Additional Notice Required if Redistricting Pending. During any campaign cycle where redistricting is pending City Councilmember candidate materials soliciting campaign funds shall also contain the following statement in no less than eight-point type: City campaign rules allow this candidate to transfer funds to a different Council District Seat election contest, or carry over funds to a future Council District Seat election contest, in the event redistricting results in the re-assignment of such candidate to a different Council District Seat. 2.52.120 Contributions for Legal Defense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of one holding a City Elective Office or a Candidate made and used for the express purpose of offsetting costs already incurred by that office holder, or Candidate in the defense of a criminal or administrative prosecutorial action, or other legal action relating to an election contest, against said office holder or Candidate and not made or used for the purpose of aiding in the election of said Councilmember, Mayor, City Attorney or Candidate, and not made within (before or after) 100 days of an election in which the office holder or Candidate is competing for a seat or office, shall not be deemed to be a Contribution for the purposes of this chapter. 2.52.125 Electronic Filing of Campaign Statements. A. General. 1. Any Filer required to file Campaign Statements, reports or other FPPC Forms as required by Chapter 4 of the Political Reform Act (California Government Code Section 84100 et seq.) shall file such Campaign Statements using the City Clerk’s online system according to procedures established by the City Clerk (the “Procedures”), unless the Filer is exempt from electronic filing under California Government Code Section 84615, as may be amended from time to time. 2. The City Clerk shall have the authority to establish and amend the procedures, as necessary, to accomplish the following: Page 145 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 9 a. Ensure that the online system complies with the requirements set forth in Section 84615 of the Government Code, as may be amended from time to time; b. Meet the purpose and intent of this section and comply with other applicable law; c. Ensure the integrity of the data transmitted and include safeguards against efforts to tamper with, manipulate, alter, or subvert the data. 3. Online filings made under this chapter will only be accepted if made in the standardized record format that is developed by the California Secretary of State pursuant to Section 84602(a)(2) of the California Government Code, as may be amended from time to time, and that is compatible with the Secretary of State’s system for receiving an online or electronic Campaign Statement. 4. Any Filer who has electronically filed a Campaign Statement using the City Clerk’s online system is not required to file a copy of that document in paper format with the City Clerk. [Section 2.52.130 is deleted in its entirety] 2.52.140 Enforcement; Enforcement Authority. A. General. The City Attorney shall not act as the Enforcement Authority as to alleged violations of this chapter, but shall defend the constitutionality and legality of this chapter in any civil proceeding in which the City or the City Council is a party. B. Enforcement Authority. The Enforcement Authority, as defined by this chapter, or the District Attorney shall investigate or prosecute alleged violations of this chapter. C. Timing of Selection. The Board of Ethics shall solicit proposals from attorneys in accordance with Section 503 of the City Charter and Chapter 2.56 CVMC to act as the Enforcement Authority 12 months prior to a General Election. D. Appointment of Panel. The Board of Ethics shall appoint a panel of no less than three attorneys to act as the Enforcement Authority. These attorneys shall be compensated by the City for work performed pursuant to this chapter. Should the appointment of additional special counsel become necessary or appropriate, the Board of Ethics shall appoint such additional special counsel as may be required. Should the panel consist of fewer than three attorneys due to resignations or otherwise, the Board of Ethics shall appoint additional special counsel. E. Rotation of Assignments. A single member of the special counsel panel will be assigned to each complaint by the City Attorney, or the City Clerk in the event that the City Attorney is the subject of the complaint. Assignments will be made on a rotating basis. F. Immunity to Liability. Special counsel, serving as the Enforcement Authority, shall be immune to liability for enforcement of this chapter. Page 146 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 10 2.52.143 Enforcement; Complaint Submittal. A. Filing a Complaint. Complaints of violations of this chapter shall be in writing; sworn under penalty of perjury by the complainant, who shall be a resident of the City; accompanied by proof that the complainant is a resident of the City; and submitted to the City Clerk. The complaint shall state a full recitation of all facts that are alleged to constitute a violation of this chapter. B. Correction of Complaint Deficiencies. If a complaint does not comply with these requirements, the City Clerk shall notify the complainant that it is insufficient for filing and identify the insufficiency. The complainant shall have 10 calendar days from the date of the notice to cure the defect. If the defect is not cured in the prescribed timeframe, the case shall be closed. 2.52.145 Enforcement; Complaint Processing. A. Subject of Complaint; Opportunity to Respond. If the complaint meets the requirements of CVMC 2.52.143(A), the City Clerk shall provide a copy of the complaint to the subject of the complaint within two working days. The subject of the complaint shall have five calendar days to provide the City Clerk with a written response, including evidence of any corrective action taken in response to the complaint, if any. The response, if submitted, shall be signed under penalty of perjury. B. Submittal to Enforcement Authority. The City Clerk shall forward the complaint and any written response received to the Enforcement Authority within ten working days of receipt for a probable cause determination. C. Probable Cause Determination. The Enforcement Authority shall make a prima facie probable cause determination within 30 calendar days of receiving the complaint and shall immediately notify the City Clerk, the City Attorney, and Interested Parties upon making its determination. 1. Probable Cause; Knowing or Willful Violation. If the Enforcement Authority determines that probable cause exists to find that there was a knowing or willful violation of this chapter, the City Attorney shall forward the complaint to the District Attorney for further handling. However, if the City Attorney is the subject of the complaint, the duties of the City Attorney under this section shall be handled by the City Clerk. Violations of this chapter that are forwarded to the District Attorney for handling shall not be subject to further action by the Enforcement Authority. 2. Probable Cause; Negligent Violation. If the Enforcement Authority determines that probable cause exists to find that there was a negligent violation of this chapter, the City Attorney shall forward the complaint to the special counsel who is next in the rotation of panel counsel to act as the Enforcement Authority and take further investigatory and procedural steps necessary to resolve the matter. Page 147 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 11 D. Negligent Violation; Enforcement Authority Handling. 1. Enforcement Authority Duties. Violations of this chapter that are not forwarded to the District Attorney for handling but, rather, are forwarded to the next panel counsel for further investigation pursuant to subsection (C) of this section may be pursued by the Enforcement Authority either through a civil or administrative action. The Enforcement Authority may also commence and prosecute any necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement of prosecution or action by the Enforcement Authority shall be subject to the review or control of the City Attorney or City Council. The special counsel, serving as the Enforcement Authority, may investigate and may institute legal action to prevent further violations. The Enforcement Authority shall use reasonable efforts to complete its investigation and reach a final determination within 180 days of the City forwarding the complaint. The Enforcement Authority shall notify the City Clerk, the City Attorney, and Interested Parties of upon conclusion of the Enforcement Authority’s final determination. 2. Violations of State Law. If the allegation contained in the complaint is also a violation of state law, the special counsel shall not investigate but, rather, shall forward the complaint to the Fair Political Practices Commission or other appropriate state agency. 3. Criminal Prosecution. Criminal prosecution for violations of this chapter must be commenced within one year after the date on which the violation occurred. 4. Civil Prosecution. Civil prosecution for violation of this chapter must be commenced within four years after the date on which the violation occurred. No administrative action alleging a violation of any of the provisions of this chapter shall be commenced more than four years after the date on which the violation occurred. If the person alleged to have violated a provision of this chapter engages in the fraudulent concealment of their acts or identity, the four-year period for civil and administrative actions shall be tolled for the period of concealment. For purposes of this subdivision, “fraudulent concealment” means the person knows of material facts related to their duties under this chapter and knowingly conceals them in performing or omitting to perform those duties, for the purpose of defrauding the public of information to which it is entitled under this title. E. No Violation Found. If the Enforcement Authority or District Attorney determines that no violation occurred, the Enforcement Authority shall review the complaint and, if necessary, conduct further investigation to determine if there is probable cause to find that the complainant committed perjury. If such probable cause exists, the Enforcement Authority shall forward the complaint to the District Attorney for prosecution for perjury. 2.52.150 Penalties. A. Misdemeanor. Any Person who knowingly or willfully violates any provision of this chapter; who knowingly or willfully causes, solicits, advises, or participates with any other Page 148 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 12 Person to violate any provision of this chapter; or who knowingly or willfully aids and abets any other Person in the violation of this chapter shall be guilty of a misdemeanor. B. Monetary Penalties. 1. Negligent Violation. Any Person who negligently violates any provision of this chapter shall be liable in a civil or administrative action brought b y the Enforcement Authority for an amount not more than $500.00 per violation and shall be required to correct the violation. 2. Intentional Violation. Any Person who intentionally violates any provision of this chapter or causes any other Person to violate any provision of this chapter shall be liable in a civil administrative action brought by the Enforcement Authority for a maximum of $1,000 per violation. 3. Intentional Filing of False Complaint. a. Any Person who intentionally files a false complaint under this chapter shall be liable in a civil administrative action brought by the Enforcement Authority for a maximum of $2,500 per false complaint filed. b. If the District Attorney determines that the complainant committed perjury in filing the complaint, the complainant may be liable, in addition to any criminal penalties, for damages in the amount of fees, costs and other amounts suffered or incurred as a result of, or arising out of the filing of, such complaint. 4. Use of Funds. Any amounts paid pursuant to this section shall be used to offset the costs of enforcing this chapter. C. Applicability. This section shall apply only to Persons who have filing or reporting obligations under this chapter or the Political Reform Act, or who are compensated for services involving the planning, organization, or directing of any activity regulated or required by this chapter or the Political Reform Act, or anyone who is determined by the District Attorney to have committed perjury in filing a complaint under this chapter. D. Considerations for Remedies and Sanctions. Whether or not a violation is inadvertent, negligent, or deliberate, and the presence or absence of good faith, shall be considered in applying the remedies and sanctions of this chapter. Further, in determining the amount of civil liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered, the funds recovered shall be deposited into the City’s general fund. [Section 2.52.160 is being deleted in its entirety] Page 149 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance Page 13 2.52.170 Availability of Records. Unless otherwise prohibited by law, all records pertaining to complaints related to campaign contributions shall be deemed public records upon receipt. Such records include but are not limited to submitted complaints (whether deemed sufficient or insufficient), letters of dismissal, determinations of probable cause, determinations regarding enforcement actions, and legal services agreements with enforcement authorities. These records shall be made available to the public upon request, subject to appropriate redactions in accordance with applicable law. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to Form by Marco A. Verdugo Marco A. Verdugo City Attorney City Attorney Kerry K. Bigelow, MMC City Clerk Page 150 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 1 of 14 2.52.010 Title and Purpose and intent. A. Title. This chapter shall be known as the Chula Vista Campaign Contribution Ordinance. A. Purpose. The pPurpose of the Chula Vista Campaign Contribution Ordinance is intended to supplement the Political Reform Act of 1974 (California Government Code Sections 81000, et seq.) (the “PRA”), and the implementing regulations adopted by the Fair Political Practices Commission (the “FPPC”) (see California Code of Regulations, Title 2, Division 6, Division 6, Sections 18110 through 18997). All local candidates should be aware that they must comply with this chapter, as well as the PRA and the FPPC regulations, when participating in a local election campaign. B. Sections 81013 and 85703(a) of the PRA authorize the City Council to adopt contribution limitations and prohibitions applicable to elections for local elective office. In enacting this chapter, the City Council finds and declares that moderate monetary contributions to political campaigns are a legitimate form of participation in the American political process. It is the policy of this City to protect the integrity of the City’s electoral process, and to serve the best interests of the citizens of this City by regulating enacting campaign finance rules governing donors and Candidates for City Elective Offices. Inherent in the high cost of election campaigning is the problem potential of for improper influence, real or potential, exercised by campaign contributors over elected officials. It is the purpose and intent of the City Council in enacting this chapter: 1. A. To preserve an orderly political forum in which individuals may express themselves effectively; 2. B. To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections; 3. C. To prevent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for local elective office; 4. D. To provide full and fair enforcement of all the provisions of this chapter; and 5. E. To encourage candidate adherence to election regulations by making them easier to understand. (Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). C. Applicability. The terms of this chapter are applicable to any contribution made to a Candidate or Candidate-controlled committee whether used by the Candidate to finance a current campaign or to pay debts incurred in prior campaigns. Page 151 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 2 of 14 2.52.020 Interpretation of this chapterRelationship to State Law. A. The terms and phrases in thisThis chapter shall supplement, not replace, the Political Reform Act of 1974 (California Government Code 81000, et seq.) (the “PRA”), and the implementing regulations adopted by the Fair Political Practices Commission (the “FPPC”) (see California Code of Regulations, Title 2, Division 6). Donors and Candidates for City Elected Offices must comply with both the requirements of the PRA and the requirements of this chapter. However, to the extent of any conflict between the terms of this Chapter and the terms of the PRA, the terms of this Chapter shall govern to the maximum extent allowed by law. have the same definitions given to them in the PRA (see California Government Code Sections 82000 through 82054) and the FPPC regulations, unless otherwise specified in this chapter. 2.52.030 Definitions. Unless otherwise defined in this Section, the terms and phrases used in this chapter shall have the same definitions given to them in the PRA (see California Government Code Sections 82000 through 82054) and the FPPC regulations. A. “Agent” means a person who acts on behalf or Aat the Bbehest of any other person or accepts a Ccontribution on behalf of a Ccandidate. If an individual acting as an Aagent is also acting as an employee or member of a law, architectural, engineering or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual are “Aagents.” B. “At the Bbehest” means made under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express prior consent of. C. “Campaign Ccontribution Aaccount” is that account in which all Ccontributions or loans made to the Ccandidate shall be deposited as required by Government Code Section 85201. E. “Candidate” means any individual seeking any City Eelective Ooffice, the candidate’s campaign committee, committee(s) controlled by the Ccandidate, and Aagents of the Ccandidate. F. “City Eelective Ooffice” means the offices held by theof Mayor, members of the City Council, or the City Attorney. The “same City Eelective Ooffice,” as that term is used in this chapter, means the specific seat held byOffice of the Mayor with respect to the Mayor’s seat; , as defined by Charter Section 300(C); the specific seatOffice of held by the City Attorney with respect to the City Page 152 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 3 of 14 Attorney’s seat; or, in the case of a City Council memberCouncil District Seat, the specific Council 1, 2, 3, or 4 held by athe City Council member or campaigned for by a Candidate, or the numbered to which athat City Council member or Ccandidate for such office may be is reassigned as a result of redistricting. For example, if, during the redistricting process, the district lines are redrawn such that the residence of the City Council member representing and running for District 1 or a Ccandidate running for District 1 becomes located within District 2, 3 or 4, the member’s or Ccandidate’s District 1 seat, as the case may be, would be considered, for purposes of this chapter, the “same City Eelective Ooffice” as the District 2, 3 or 4 seat so re-assigned. “Citywide Seat” means the office of Mayor or City Attorney. G. “Contribution” is defined in a manner identical with the definition found in Government Code Section 82015, contained within the Political Reform Act, and any related provisions in the California Code of Regulations. “Contribution Limit” is defined as the maximum allowed contribution from a Person, Organization, Political Party Committee, for any Single Election Contest as provide under CVMC 2.52.040. “Council District Seat” means the office of City Councilmember District 1, 2, 3, or 4. H. “Enforcement Aauthority,” under this chapter, means that special counsel appointed by the City Attorney pursuant to CVMC 2.52.140. “Filer” is any elected officer, Candidate, committee, or other Person required to file Campaign Statements, reports or other documents. “FPPC Form” is any FPPC-developed Campaign Form, including but not limited to Form 460, 470, 496, 497. I. “General Eelection” is that election identified by Charter Section 900901(B) as a “General Municipal Election.”, which is combined with the state primary election. “Net Debts Outstanding” has the same meaning as that set forth in title 2, section 18531.61 of the California Code of Regulations. J. “Organization” means a proprietorship, labor union, firm, partnership, joint venture, syndicate, business, business trust, company, corporation, association, or committee, including a political action committee. “Organization” does not include Ppolitical Pparty Ccommittees, as that term is defined in California Government Code Section 85205. K. “Person” means a natural individual. Page 153 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 4 of 14 “Political Party Committee” is defined in a manner identical with the definition found is as defined in California Government Code Section 85205. L. “Political Reform Act” or “PRA” means the California Political Reform Act of 1974, as amended, found at Government Code Section 81000, et seq., and includes regulations adopted by the Fair Political Practices Commission. “Primary Election” is that election identified by Charter Section 901(A) as a “Primary Municipal Election.” M. “Single Eelection Ccontest” means the election contest scheduled for any one of the following types of elections, each being a “Single Election Contest”: a Primary Election, either a Ggeneral Election or a Sspecial Eelection. N. “Special Eelection” is that electionas defined byin Charter Section 901(C) as a “Special Municipal Election.”. (Ord. 3506 § 1, 2021; Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). “Written Solicitation” means any writing, whether physical or electronic, soliciting, either directly or indirectly, a Contribution to a Candidate. “Written Solicitation” includes, but is not limited to, printed materials, websites, social media, and printed or electronic advertisements. 2.52.040 Campaign Ccontribution Dollar Llimits.. A. Limitations on Contributions by Persons. No Pperson other than a Ccandidate shall make a Ccontribution to a Candidate, and no Candidate shall solicit or accept a Contribution from a Person other than the Candidate, for a Single Election Contest in an amount exceeding excess of $800.00 for a Council District Seat or $1,200 for a Citywide Seat $410.00 to a candidate for a single election contest. No candidate shall solicit or accept a contribution in excess of $410.00 from a Pperson for a Ssingle Eelection Ccontest. A candidate may receive up to $410.00 from a person in each of the general and special elections. The contribution limits in this subsection shall be subject to increase as provided in CVMC 2.52.040(D), below, or as may be required by law.adjusted biannually pursuant to subsection (D) of this section. B. Limitations on Contributions by Political Party Committees and Organizations. No Ppolitical Pparty Ccommittee or Organization , as that term is defined in California Government Code Section 85205, shall make a contribution to a Candidate, and no Candidate shall solicit or accept a Contribution in excess of $1,530 from a Political Party Committee or Organization, to a candidate for a Ssingle Eelection Ccontest in an amount exceeding fifty percent of the limit established for members of the State Senate under Government Code Section 85301(a), as that limit may be adjusted by the Fair Political Practices Commission pursuant to Government Code Section 83124. No Page 154 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 5 of 14 candidate shall solicit or accept a contribution in excess of $1,410 from a political party committee C. Applicability. This chapter shall not apply to contributions made to a committee that is organized solely for the purpose of supporting or opposing the qualification for the ballot or adoption of one or more City measures. No organization shall make a contribution to any candidate or candidate- controlled campaign committee. This chapter shall not apply to contributions made to a committee that is organized solely for the purpose of supporting or opposing the qualification for the ballot or adoption of one or more City measures. All contributions made by a person whose contribution activity is financed, maintained or controlled by an organization or any other person shall be deemed to be made by that organization or other person. If the contribution is deemed made by an organization, it is prohibited. D. Adjustments. The contribution limits set forth in subsection (A) of this section shall be adjusted every odd-numbered year, starting in 2013. The City Clerk shall adjust the contribution limits to reflect any changes in the Consumer Price Index for the San Diego area for the two-year period ending on December 31st of the previous year. Adjustments shall be rounded to the nearest $10.00. The City Clerk shall publish a public notice of any adjustments by March 1st of each odd -numbered year, or as soon after as practicable, following the Bureau of Labor Statistics’ release of the applicable Consumer Price Index data. The adjustments shall go into effect as soon as the public notice is published but shall apply only to elections held in subsequent years. The adjustments shall not be construed to raise the contribution limits applicable to past elections or to special elections held in the same year that the limits are adjusted. E. Expenditures. The contribution limitations imposed by this section are not limitations on expenditures and shall not be construed to limit the expenditures by any Candidate, Person, Organization, or committee.No person shall make a contribution to any candidate and no such candidate shall accept from any person such a contribution sooner than 11 months preceding a single election contest. F. A contribution for an election may be accepted by a candidate after the date of the election only to the extent that the contribution does not exceed net debts outstanding from the election, and the contribution does not otherwise exceed the applicable contribution limit for that election. B. Contributions After an Election. A Contribution for an election may be accepted by a Candidate up to the first day of the 11th month after a Candidate’s withdrawal, defeat, or election to office, only to the extent that the Contribution does not exceed a Candidate’s Net Debts Outstanding for that election, and the Contribution does not otherwise exceed the applicable contribution limit for that election. If elected to office, the 11-month period begins on the date of the election. Page 155 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 6 of 14 C. No Solicitations for a General Election Until Primary Election is Held. A Candidate may not solicit or accept contributions for a General Election prior to the holding of the Primary Election for that office. If a Primary Election is canceled because fewer th an three qualified Candidates filed nomination papers for that election, a Candidate may begin soliciting and accepting additional Contributions for the General Election once the City Council takes action to cancel the Primary Election. 2.52.047 Carry-Over of Contributions. A. From a Primary Election to a General Election. A Candidate may carry over Contributions raised in connection with a Primary Election for City Elective Office to pay campaign expenditures incurred in connection with a subsequent General Election for the same City Elective Office. In the event that a Special Election for City Elective Office results in a run-off election for the same City Elective Office, a Candidate may carry over Contributions raised in connection with the Special Election for City Elective Office to pay campaign expenditures incurred in connection with a subsequent run-off election for the same City Elective Office. B. Redistricting. If, as a result of redistricting, a Candidate’s residence is assigned to a different district, the Candidate may carry over Contributions raised prior to City Council approval of the new district map to pay expenditures in connection with campaigning for election to the newly assigned Council District Seat; provided, however, if the election for the newly assigned Council District Seat will be held at the subsequent election cycle, the Candidate choosing to carry over Contributions raised to fund campaign activities for such subsequent election must discontinue any and all fundraising activities immediately upon City Council approval of the new district map creating re - assignment until fundraising for such subsequent election contest is authorized as provide d in subsection 2.52.045(AE). 2.52.050 Loans and Outstanding Debt. A. Personal Loan from the Candidate; Limitation. A Ccandidate shall not personally loan to his or her their campaign funds, with the intent to receive repayment of those funds in excess, of the an aggregate amount in excess of $510,000 for a Ssingle Eelection Ccontest. B. Loan from Others. 1. In General. Except as provided in subsection 2., below, a loan or extension of credit from a third-party Person or Organization made for the purpose of, or used by a Candidate for, funding such Candidate’s campaign activities shall be considered a Contribution from such maker of the Page 156 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 7 of 14 loan or extender of credit and shall be subject to the Contribution limit specified in CVMC 2.52.040(A). A loan or extension of credit shall be considered a contribution from the maker of the loan or extender of credit and shall be subject to the contribution limit of $410.00 per person, pursuant to CVMC 2.52.040. The $410.00 contribution limit does not apply to loans made to a candidate for the purpose of a campaign by himself or herself or by a commercial lending institution in the lender’s regular course of business on terms available to members of the general public for which the candidate is personally liable. (Ord. 3543 § 1, 2023; Ord. 3499 § 1, 2021; Ord. 3452 § 1, 2019; Ord. 3399 § 1, 2017; Ord. 3340 § 1, 2015; Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). 2. Exception: Loan by Candidate from Commercial Lending Institution. The contribution limit does not apply to loans made to a Candidate for the purpose of a campaign by a commercial lending institution in the lender’s regular course of business on terms available to members of the general public for which the Candidate is personally liable. C. Repayment of Loans. Repayment of personal loans from the Candidate to their campaign must occur not later than the first day of the 11th month after a Candidate’s withdrawal, defeat, or election to office. If elected to office, the 11-month period begins on the date of the election. D. Special Rules for Debts Owed to Campaign Consultants and Vendors. Except for legal fees and expenses incurred directly in connection with monitoring the count of absentee or provisional ballots for the election, or with a ballot recount conducted under Chapter 9 (commencing with Section 15600) of Division 15 of the Elections Code for the election, all bills from campaign consultants and vendors must not have been incurred past the election date of the election for which the goods and services were provided. Candidates may only incur additional costs from ongoing services from a fundraiser, treasurer, payment processing service, and other related or ancillary services not later than the first day of the 11th month after the Candidate’s withdrawal, defeat, or election to office. If elected to office, the 11-month period begins on the date of the election. 2.52.060 Notice regarding personal funds. 2.52.070 Campaign contribution account. [Sections 2.52.060 and 2.52.070 are being deleted in their entirety] If a Ccontribution is tendered and would be in violation of this chapter, it shall be returned by the Ccandidate to the contributor within 60 days of receipt by the Ccandidate. (Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). 2.52.100 Written Ssolicitations by Ccandidates. A. Notice Required. Any Ccandidate making a Wwritten Ssolicitation for a Ccontribution for his or hertheir campaign for City Eelective Ooffice shall include the following written notice in no less Page 157 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 8 of 14 than eightsix-point type on each such solicitation, which shall include the then current limits for Contributions by Persons and Contributions by Organizations: 1. For a Council District Seat: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for a Council District Seat City elective office to [insert the current limit pursuant to CVMC 2.52.040(A)] four hundred ten dollars per Pperson and [insert the current limit pursuant to CVMC Organization. 2. For a Citywide Seat: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for a Citywide Seat to [insert the current limit pursuant to CVMC 2.52.040(A)] dollars per Person and [insert the current limit pursuant to CVMC 2.52.040(B)] dollars per Organization. (Ord. 3543 § 1, 2023; Ord. 3506 § 1, 2021; Ord. 3499 § 1, 2021; Ord. 3452 § 1, 2019; Ord. 3399 § 1, 2017; Ord. 3340 § 1, 2015; Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). B. Additional Notice Required if Redistricting Pending. During any campaign cycle where redistricting is pending City Councilmember candidate materials soliciting campaign funds shall also contain the following statement in no less than eight-point type: City campaign rules allow this candidate to transfer funds to a different Council District Seat election contest, or carry over funds to a future Council District Seat election contest, in the event redistricting results in the re-assignment of such candidate to a different Council District Seat. 2.52.120 Contributions for Llegal Ddefense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of one holding a City Elective Office a Councilmember, Mayor, or a Ccandidate made and used for the express purpose of offsetting costs already incurred by that that office holderCouncilmember, Mayor, or Ccandidate in the defense of a criminal or administrative prosecutorial action, or other legal action relating to an election contest, against said Councilmember, Mayor,office holder or Ccandidate and not made or used for the purpose of aiding in the election of said Councilmember, Mayor, City Attorney or Ccandidate, and not made within (before or after) 100 days of an election in which the Councilmember, Mayor,office holder or Ccandidate is competing for a seat or office, shall not be Page 158 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 9 of 14 deemed to be a Ccontribution for the purposes of this chapter. (Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2.52.125 Electronic Ffiling of Ccampaign disclosure Sstatements. A. General. 1. Any elected officer, candidate, committee, or other personFiler required to file Campaign Statements, reports or other FPPC Forms documents (“statements”) as required by Chapter 4 of the Political Reform Act (California Government Code Section 84100 et seq.) (“filers”) mayshall file such Campaign Statements using the City Clerk’s online system according to procedures established by the City Clerk (the “Pprocedures”), unless the Filer is exempt from electronic filing under California Government Code Section 84615, as may be amended from time to time.. This online filing requirement shall become mandatory beginning July 1, 2017. 2. The City Clerk shall have the authority to establish and amend the procedures, as necessary, to accomplish the following: a. Ensure that the online system complies with the requirements set forth in Section 84615 of the Government Code, as may be amended from time to time; b. Meet the purpose and intent of this section and comply with other applicable law; c. Ensure the integrity of the data transmitted and include safeguards against efforts to tamper with, manipulate, alter, or subvert the data. 3. Online filings made under this chapter will only be accepted if made in the standardized record format that is developed by the California Secretary of State pursuant to Section 84602(a)(2) of the California Government Code, as may be amended from time to time, and that is compatible with the Secretary of State’s system for receiving an online or electronic filingCampaign Statement. B. Procedures for Utilizing Online Filing. 2.52.130 Duties of City Clerk. Page 159 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 10 of 14 2.52.140 Enforcement; Enforcement Authority. A. General. The City Attorney shall not act as the Eenforcement Aauthority as to alleged violations of this chapter, but shall defend the constitutionality and legality of this chapter in any civil proceeding in which the City or the City Council is a party. B. Enforcement Authority. The Eenforcement Aauthority, as defined by this chapter, or the District Attorney shall investigate or prosecute alleged violations of this chapter. C. Timing of Selection. The Board of Ethics shall solicit proposals from attorneys in accordance with Section 503 of the City Charter and Chapter 2.56 CVMC to act as the Enforcement Authority 121 months prior to a Ggeneral Eelection. D. Appointment of Panel. The Board of Ethics shall appoint a panel of no less than three attorneys to act as the Eenforcement Aauthority. These attorneys shall be compensated by the City for work performed pursuant to this chapter. Should the appointment of additional special counsel become necessary or appropriate, the Board of Ethics shall appoint such additional special counsel as may be required. Should the panel consist of fewer than three attorneys due to resignations or otherwise, the Board of Ethics shall appoint additional special counsel. E. Rotation of Assignments. A single member of the special counsel panel will be assigned to each complaint by the City Attorney, or the City Clerk in the event that the City Attorney is the subject of the complaintcase. Assignments will be made on a rotating basis. F. Immunity to Liability. Special counsel, serving as the Enforcement Authority, shall be immune to liability for enforcement of this chapter. 2.52.143 Enforcement; Complaint Submittal. E. A. Filing a Complaint. Complaints of violations of this chapter shall be: in writing; sworn under penalty of perjury by the complainant, who shall be a resident of the City; accompanied by proof that the complainant is a resident of the City; and submitted to the City Clerk. The complaint shall state a full recitation of all facts that are alleged to constitute a violation of this chapter. B. Correction of Complaint Deficiencies. If a complaint does not comply with these requirements, the City Clerk shall return the complaint tonotify the complainant , that it is insufficient for filing and identify the insufficiency. The complainant shall have 10 calendar days from the date of the notice to cure the defect. If the defect is not cured in the prescribed timeframe, the case shall be closed.with an explanation as to why it is insufficient for filing. 2.52.145 Enforcement; Complaint Processing. Page 160 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 11 of 14 A. Subject of Complaint; Opportunity to Respond. If the complaint meets the requirements of CVMC 2.52.143(A), the City Clerk shall provide a copy of the complaint to the subject of the complaint within two working days. The subject of the complaint shall have five calendar days to provide the City Clerk with a written response, including evidence of any corrective action taken in response to the complaint, if any. The response, if submitted, shall be signed under penalty of perjury. BF. Submittal to Enforcement Authority. The City Clerk shall forward the complaint and any written response received to the Eenforcement Aauthority within tenfive working days of receipt for a probable cause determination. If no probable cause is determined to exist, the complaint shall be dismissed summarily and interested parties shall be notified of the dismissal in writing. The enforcement authority shall make a probable cause determination within 30 calendar days of receiving the complaint. 1. G. Probable Cause; Knowing or Willful Violation. If the Enforcement Authority determines that probable cause exists to find that there was a knowing or willful violation of this chapter, the City Attorney shall forward the complaint to the District Attorney for further handling. However, if the City Attorney is the subject of the complaint, the duties of the City Attorney under this section shall be handled by the City Clerk. Violations of this chapter that are forwarded to the District Attorney for handling shall not be subject to further action by the Enforcement Authority.If probable cause is determined to exist, the enforcement authority shall notify the City Attorney. If the enforcement authority determines that probable cause exists to find that there was a knowing or willful violation of this chapter, the City Attorney shall forward the complaint to the District Attorney for further handling. 1.2. Probable Cause; Negligent Violation. If the Enforcement Authority determines that probable cause exists to find that there was a negligent violation of this chapter, the City Attorney shall forward the complaint to the special counsel who is next in the rotation of panel counsel to act as the Eenforcement Aauthority and take further investigatory and procedural steps necessary to resolve the matter. However, if the City Attorney is the subject of the complaint, the duties of the City Attorney under this section shall be handled by the City Clerk. DH. Negligent Violation; Enforcement Authority Handling. 1. Enforcement Authority Duties. Violations of this chapter that are forwarded to the District Attorney for handling shall not be subject to further action by the enforcement authority. Violations of this chapter that are not forwarded to the District Attorney for handling but, rather, are forwarded to the next panel counsel for further investigation pursuant to subsection (CG) of this section may be pursued by the Eenforcement Aauthority either through a civil or administrative action. The Eenforcement Aauthority may also commence and prosecute any Page 161 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 12 of 14 necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement of prosecution or action by the Eenforcement Aauthority shall be subject to the review or control of the City Attorney or City Council. The special counsel, serving as the Enforcement Authority, may investigate and may institute legal action to prevent further violations. The Enforcement Authority shall use reasonable efforts to complete its investigation and reach a final determination within 180 days of the City forwarding the complaint. The Enforcement Authority shall notify the City Clerk, the City Attorney, and Interested Parties of upon conclusion of the Enforcement Authority’s final determination. 2. Violations of State Law. If the allegation contained in the complaint is also a violation of state law, the special counsel shall not investigate but, rather, shall forward the complaint to the Fair Political Practices Commission, or other appropriate state agency. 3. J. Criminal Prosecution. Criminal prosecution for violations of this chapter must be commenced within one year after the date on which the violation occurred. 4. K. Civil Prosecution. Civil prosecution for violation of this chapter must be commenced within four years after the date on which the violation occurred. No administrative action alleging a violation of any of the provisions of this chapter shall be commenced more than four years after the date on which the violation occurred. If the person alleged to have violated a provision of this chapter engages in the fraudulent concealment of his or hertheir acts or identity, the four-year period for civil and administrative actions shall be tolled for the period of concealment. For purposes of this subdivision, “fraudulent concealment” means the person knows of material facts related to his or hertheir duties under this chapter and knowingly conceals them in performing or omitting to perform those duties, for the purpose of defrauding the public of information to which it is entitled under this title. L. Special counsel, serving as the enforcement authority, shall be immune to liability for enforcement of this chapter. EM. No Violation Found. If the Eenforcement Aauthority or District Attorney determines that no violation occurred, the Eenforcement Aauthority shall review the complaint and, if necessary, conduct further investigation to determine if there is probable cause to find that the complainant committed perjury. If such probable cause exists, the Eenforcement Aauthority shall forward the complaint to the District Attorney for prosecution for perjury. (Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). Page 162 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 13 of 14 2.52.150 Penalties. A. Misdemeanor. Any personPerson who knowingly or willfully violates any provision of this chapter; who knowingly or willfully causes, solicits, advises, or participates with any other personPerson to violate any provision of this chapter; or who knowingly or willfully aids and abets any other personPerson in the violation of this chapter shall be guilty of a misdemeanor. B. Monetary Penalties. 1. Negligent Violation. Any personPerson who negligently violates any provision of this chapter shall be liable in a civil or administrative action brought by the enforcement authorityEnforcement Authority for an amount not more than $500.00 per violation, and shall be required to correct the violation. 2. Intentional Violation. Any personPerson who intentionally violates any provision of this chapter, or causes any other personPerson to violate any provision of this chapter , or intentionally files a false complaint under this chapter shall be liable in a civil administrative action brought by the enforcement authorityEnforcement Authority for a maximum of $1,000 per violation, or per false complaint filed. 3. Intentional Filing of False Complaint. a. Any Person who intentionally files a false complaint under this chapter shall be liable in a civil administrative action brought by the Enforcement Authority for a maximum of $2,500 per false complaint filed. b. If the District Attorney determines that the complainant committed perjury in filing the complaint, the complainant may be liable, in addition to any criminal penalties, for damages in the amount of fees, costs and other amounts suffered or incurred as a result of, or arising out of the filing of, such complaint. 4. Use of Funds. Any amounts paid pursuant to this section shall be used to offset the costs of enforcing this chapter. Page 163 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chapter 2.52 CVMC, Campaign Contributions Page 14 of 14 4. If it is determined by the District Attorney that the complainant committed perjury in filing C. Applicability. This section shall apply only to personsPersons who have filing or reporting obligations under this chapter or the Political Reform Act, or who are compensated for services involving the planning, organization, or directing of any activity regulated or required by this chapter or the Political Reform Act, or anyone who is determined by the District Attorney to have committed perjury in filing a complaint under this chapter. D. Considerations for Remedies and Sanctions. Whether or not a violation is inadvertent, negligent, or deliberate, and the presence or absence of good faith, shall be considered in applying the remedies and sanctions of this chapter. Further, in determining the amount of civil liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered, the funds recovered shall be deposited into the City’s general fund. (Ord. 3179 § 1, 2011; Ord. 3086 § 1, 2007). 2.52.160 Severability. 2.52.170 Availability of Records. Unless otherwise prohibited by law, all records pertaining to complaints related to campaign contributions shall be deemed public records upon receipt. Such records include but are not limited to submitted complaints (whether deemed sufficient or insufficient), letters of dismissal, determinations of probable cause, determinations regarding enforcement actions, and legal services agreements with enforcement authorities. These records shall be made available to the public upon request, subject to appropriate redactions in accordance with applicable law. Page 164 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 5 P a g e | 1 September 23, 2025 ITEM TITLE Agreements: Approve Agreements with the California Department of Tax and Fee Administration (CDTFA) for the Continued Administration and Implementation of a Voter-Approved Temporary One-Half Cent General Transactions and Use Tax Report Number: 25-0038 Location: No specific geographic location Department: Finance 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 Adopt a resolution: A) authorizing the City Manager to execute agreements between the City of Chula Vista and CDTFA for the continued administration and implementation of a voter-approved temporary one-half cent general transactions and use tax and B) authorizing the examination of transactions and use tax records. SUMMARY In November 2024, the City's electorate approved the extension of Measure P, a temporary one-half cent general transactions and use tax (TUT) in the City. In order to implement the tax, the California Department of Tax and Administration (CDTFA) requires that the City take certain actions, including approving and entering into two agreements with the CDTFA, and authorizing the examination of tax records. The resolutions and agreements included in this item for approval will meet CDTFA implementation requirements. 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. Page 165 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable DISCUSSION In accordance with the Revenue and Taxation Code, the CDTFA will administer the TUT on behalf of the City. In order to do so, the CDTFA requires that the City adopt two resolutions. The first resolution approves, and authorizes the City Manager to sign, the following two agreements between the City and the CDTFA: (i) "Agreement for Preparation to Administer and Operate City's Transactions and Use Tax Ordinance;" and (ii) "Agreement for State Administration of City Transactions and Use Taxes." The first of these agreements will enable CDTFA to perform the preparatory work it must do in order to administer and operate the TUT for the City. This work includes designing and printing forms, developing instructions for staff and taxpayers, developing appropriate regulations, and other necessary tasks. The agreement details the types of costs that will be included, how the costs will be accounted for, and how the City will be billed. The agreement provides that the City’s costs for this work will not exceed $175,000. The second agreement sets forth the terms for CDTFA’s administration of the City's TUT. The agreement is consistent with the requirements of the Revenue and Taxation Code. It includes provisions regarding how the TUT will be administered by the CDTFA, how and when the tax funds will be remitted to the City, and the City's agreement to compensate the CDTFA for its administration costs (which will be deducted from taxes collected). The second resolution asks the City to designate which of its representatives may examine the CDTFA's records regarding the TUT collected on the City's behalf. The resolution authorizes the following City employees to have access to such records: (i) City Manager; (ii) Assistant City Manager; (iii) Deputy City Manager; (iv) Director of Finance; (v) Assistant Director of Finance; (vi) Budget and Analysis Manager; and (vii) Revenue Manager. In addition, it authorizes the City's consultant, Hinderliter, de Llamas and Associates, to examine the records, pursuant to its contract with the City. After City Council approval of the resolutions, City staff will transmit the signed agreements, certified resolutions, and other required documents to the CDTFA. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT The Preparation Agreement requires the City to pay CDTFA costs up to $175,000. The costs associated with this agreement will commence in fiscal year 2027 when the new measure extension will take effect. As a result, there is no fiscal impact in the current fiscal year. Page 166 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 3 ONGOING FISCAL IMPACT The Preparation Agreement requires the City to pay CDTFA costs up to $175,000. These costs will commence in fiscal year 2027 when the new measure extension will take effect. In addition, with the approval of these agreements, City will be required to pay the CDTFA's on-going administrative costs relative to the City's TUT. These costs will be offset by the revenue generated by the TUT. The temporary one-half cent general transaction and use tax is projected to generate an estimated $373 million over a 10-year period, with the actual revenues determined by economic conditions. ATTACHMENTS 1. Agreement with CDTFA for the Preparation to Administer and Operate City’s Transactions and Use Tax Ordinance 2. Agreement with CDTFA for State Administration of City Transactions and Use Taxes Staff Contact: Adrian Del Rio, Assistant Director, Finance Department Courtney Chase, Deputy City Manager Page 167 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX WHEREAS, on December 10, 2024, the City Council of the City of Chula Vista approved Ordinance No. 3588 amending the Chula Vista Municipal Code to continue a temporary one-half cent transactions and use tax; and WHEREAS, the California Department of Tax and Fee Administration (CDTFA) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and WHEREAS, the CDTFA will be responsible to administer and collect the transactions and use tax for the City; and WHEREAS, the CDTFA requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes; and WHEREAS, the CDTFA requires that the City Council of the City of Chula Vista authorize the agreements; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved in the form presented with such minor modifications as may be recommended or approved by the City Attorney and the City Manager is hereby authorized to execute each agreement. Presented by Approved as to Form by Sarah Schoen Marco A. Verdugo Director of Finance/Treasurer City Attorney Page 168 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING EXAMINATION OF SALES OR TRANSACTIONS AND USE TAXES RECORDS WHEREAS, pursuant to Ordinance Number 548, the City of Chula Vista (City) entered into a contract with the California Department of Tax and Fee Administration (CDTFA) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, pursuant to Ordinance Number 3371, 3415, and 3588 of the City of Chula Vista, and Revenue and Taxation Code section 7270, the City entered into a contract with the CDTFA to perform all functions incident to the administration and collection of transactions and use taxes; and WHEREAS, the City deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the CDTFA pertaining to sales or transactions and use taxes collected by the CDTFA for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of CDTFA records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the CDTFA; and NOW, THEREFORE IT IS RESOLVED AND ORDERED AS FOLLOWS: Section 1. That the City Manager, Assistant City Manager, Deputy City Manager, Director of Finance, Assistant Director of Finance, Budget and Analysis Manager, and Revenue Manager or other officer or employee of the City designated in writing by the Director of Finance to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the CDTFA pertaining to sales or transactions and use taxes collected for the City by the CDTFA pursuant to the contract between the City and the CDTFA. Section 2. The information obtained by examination of CDTFA records shall be used only for purposes related to the collection of City sale or transactions and use taxes by the CDTFA pursuant to that contract, and for purposes related to the following governmental functions of the City: (a) Ensure all business withing the City are in compliance with the Ordinance; (b) Ensure timely collection of all revenues included within the Ordinance; and (c) Ensure a responsive audit of the revenues is performed on an annual basis. Page 169 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Resolution No. Page 2 The information obtained by examination of CDTFA records shall be used only for those governmental functions of the City listed above. Section 3. That Hinderliter, de Llamas and Associates is hereby designated to examine the sales or transactions and use tax records of the CDTFA pertaining to sales or transactions and use taxes collected for the City by the CDTFA. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the Hinderliter, de Llamas and Associates: (a) has an existing contract with the City to examine those sales or transactions and use tax records; (b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information. (c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract; (d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired. Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of Chula Visa adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056. NOW, THEREFORE BE IT FURTHER RESOLVED that the information obtained by examination of CDTFA records shall be used only for purposes related to the collection of City’s sales or transactions and use taxes by the CDTFA pursuant to the contracts between the City and CDTFA. Presented by Approved as to Form by Sarah Schoen Marco A. Verdugo Director of Finance/Treasurer City Attorney Page 170 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 07/24) 1 of 2 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the CITY OF CHULA VISTA, a chartered municipal corporation, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows: 1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final. 5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. Page 171 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 07/24) 2 of 2 6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 7. Communications and notices may be sent by first class United States mail or through email at jservices@cdtfa.ca.gov. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at jservices@cdtfa.ca.gov or by mail. Communications and notices to be sent to the Department shall be addressed to: California Department of Tax and Fee Administration P.O. Box 942879 MIC: 27 Sacramento, California 94279-0027 Attention: Administrator Local Revenue Branch Communications and notices to be sent to City shall be addressed to: Finance Department 276 Fourth Avenue, Chula Vista, California 91910 Attention: Director of Finance 8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement. CITY OF CHULA VISTA CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION By By Maria Kachadoorian Administrator City Manager Local Revenue Branch Date: _______________________________ Date:_______________________________ APPROVED AS TO FORM By Marco Verdugo Page 172 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 07/24) 2 of 2 City Attorney Date: _______________________________ Page 173 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 1 of 7 AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of Chula Vista adopted, and the voters of the City of Chula Vista (hereafter called “City” or “District”) have approved by the required majority vote, the City of Chula Vista Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: 1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 3588, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. ARTICLE II ADMINISTRATION AND COLLECTION OF CITY TAXES A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance. Page 174 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 2 of 7 B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. 1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement. D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. Page 175 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 3 of 7 F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department. G. Records of the Department. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement. H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCATION OF TAX A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: Page 176 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 4 of 7 1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. 2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use. ARTICLE IV COMPENSATION The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at jservices@cdtfa.ca.gov. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at jservices@cdtfa.ca.gov or by mail. Page 177 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 5 of 7 Communications and notices to be sent to the Department shall be addressed to: California State Department of Tax and Fee Administration P.O. Box 942879 Sacramento, California 94279-0027 Attention: Administrator Local Revenue Branch Communications and notices to be sent to the City shall be addressed to: Finance Department 276 Fourth Avenue, Chula Vista, California 91910 Attention: Director of Finance Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2027. This Agreement shall continue until the next December 31st following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. Page 178 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 6 of 7 ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. Impoundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid. 2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that: 1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance. 2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers. Page 179 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 7 of 7 4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code. 5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds. CITY OF CHULA VISTA CALIFORNIA STATE DEPARTMENT OF TAX AND FEE ADMINISTRATION By By Maria Kachadoorian Administrator City Manager Local Revenue Branch Date: _______________________________ Date: _______________________________ APPROVED AS TO FORM Page 180 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda (Rev. 7/24) 8 of 7 By Marco Verdugo City Attorney Date: _______________________________ Page 181 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda ORDINANCE NO. 3588 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING TITLE 3, CHAPTER 3.33 OF THE CHULA VISTA MUNICIPAL CODE TO CONTINUE A TEMPORARY ONE-HALF CENT GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION Subject to approval by an affirmative, simple majority vote of the people as required by law, the People of the City of Chula Vista do ordain as follows: Section I. Title 3, Chapter 3.33 of the Chula Vista Municipal Code, entitled “Chula Vista Temporary 0.005 Sales Tax” is amended as set forth below, continuing a local transactions and use tax within the City of Chula Vista, to be administered by the California Department of Tax and Fee Administration. Deletions are indicated by strikethroughs and additions are indicated by underlines. Section II. Section 3.33.020, subsection C. is amended to read as follows: 3.05.020 Purpose. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization California Department of Tax and Fee Administration in administering and collecting the California State sales and use taxes. Section III. Section 3.33.050 is amended to read as follows: 3.33.050 Termination date. The authority to levy the tax imposed by this chapter shall expire March 31, 203710 years following the operative date. Section IV. Section 3.33.060 is amended to read as follows: Docusign Envelope ID: 3F069CE2-0EBD-4C68-A2DF-2A73D530F3F3 Page 182 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. 3588 Page No. 2 3.33.060 Contract with the State Board of Equalization. Prior to the operative date, City shall contract with the State Board of Equalization California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this chapter; provided, that if the City shall not have contracted with the State Board of Equalization California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract, and in such a case the operative date shall be the first day of the first calendar quarter following the execution effective date of such a contract. Section V. Section 3.33.070 is amended to read as follows: 3.33.070 Place of sale. For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization California Department of Tax and Fee Administration. Section VI. Section 3.33.090 is amended to read as follows: 3.33.090 Limitations on adoption of state law and collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the state of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word “state” is used as part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization California Department of Tax and Fee Administration, State Treasury, or the Constitution of the state of California. 2. The result of that substitution would require action be taken by or against this City or any agency, officer, or employee thereof, rather than by or against the State Board of Equalization California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter. Docusign Envelope ID: 3F069CE2-0EBD-4C68-A2DF-2A73D530F3F3 Page 183 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. 3588 Page No. 3 3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the state of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “City” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 and in the definition of that phrase in Section 6203. 1. A “retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. Section VII. The adoption of this Ordinance is exempt from the California Environmental Quality Act CEQA), Public Resources Code section 21000 et seq. and California Code of Regulations, title 14, section 15000 et seq. (CEQA Guidelines). The general transactions and use tax this Ordinance adopts does not “involve any commitment to any specific project which may result in a potentially significant physical impact on the environment,” and thus it is not a project under CEQA Guidelines section 15378(b)(4). Section VIII. If a majority of City voters cast votes in favor of this Ordinance in the election held on November 5, 2024, this Ordinance shall be considered adopted and may be executed below upon the date that the vote is declared by the City Council. Section IX. As soon as practicable after this Ordinance is adopted pursuant to Section 8, the City Clerk shall certify to the passage and adoption of this Ordinance, cause it to be published according to law, and shall transmit it to the California Department of Tax and Fee Administration. The Mayor Docusign Envelope ID: 3F069CE2-0EBD-4C68-A2DF-2A73D530F3F3 Page 184 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Ordinance No. 3588 Page No. 4 and City Clerk are hereby authorized to execute this Ordinance were indicated below to give evidence that the votes have approved it. Section X. This Ordinance and Chapter 3.33 of the Chula Vista Municipal Code may be amended or repealed by ordinance of the City Council or the voters. However, as required by Article XIII C of the California Constitution, no amendment to this Ordinance may increase the rates of the taxes above those authorized by this Ordinance unless such amendment is submitted to and approved by the voters. Section XI. The proceeds of the taxes imposed by this Ordinance and Title 3, Chapter 3.33 of the Chula Vista Municipal Code may be used for any lawful purpose of the City, as authorized by ordinance, resolution, or action of the City Council. These taxes are not special taxes within the meaning of Article XIII C, section 1(d), but are general taxes imposed for general government purposes. SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 3F069CE2-0EBD-4C68-A2DF-2A73D530F3F3 Page 185 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda rdinance No. 3588 Page No. 5 Presented by Approved as to form by Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 17th day of December 2024, by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 3588 had its first reading at a regular meeting held on the 25th day of June 2024, and its second reading and adoption at a regular meeting of said City Council held on the 17th day of December 2024 and was duly published in summary form in accordance with the requirements of state law and the City Charter. Dated Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: 3F069CE2-0EBD-4C68-A2DF-2A73D530F3F3 1/13/2025 Page 186 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 5 P a g e | 1 September 23, 2025 ITEM TITLE Affordable Housing: Financial Repositioning of the County of San Diego Public Housing Portfolio in Chula Vista Report Number: 25-0205 Location: 772-792 Dorothy Street (Dorothy Street Manor), 584-588 L Street (L Street Manor), 1670-1682 Melrose Avenue (Melrose Manor), and 434 F Street (Town Center Manor) Department: Housing and Homeless Services 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 (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution: 1) supporting the financial repositioning of the San Diego Public Housing Portfolio in Chula Vista (four properties) and authorizing the City Manager to draft and execute a letter of support to that effect; and agreeing not to exercise City rights to purchase the properties; 2) authorizing the City Manager to negotiate the termination of the 434 F Street grant deed reverter; and 3) authorizing the City Manager to negotiate the termination of the Development Agreement and Abstract of Development Agreement for 584 - 588 L Street. SUMMARY The County of San Diego (“County”) has requested support from the City of Chula Vista (“City”) in converting the four (4) properties they own in Chula Vista from Public Housing (Section 9) to Project-Based Vouchers (Section 8). Transitioning to Section 8 will increase funding for operations and capital improvement needs. As a part of the transitioning to Section 8, a termination of a reverter with the grant deed for 434 F Street and the Development Agreement and Abstract of Development Agreement for 584 - 588 L Street is necessary, as is the City not exercising its right to purchase the properties. ENVIRONMENTAL REVIEW Page 187 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 2 The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The Housing Authority of the County of San Diego is proposing to reposition its Chula Vista public housing portfolio through a Rental Assistance Demonstration (RAD)/Section 18 Small Public Housing Authority Blend conversion. Repositioning is the removal of a property from the Public Housing Program and replacing it with project-based voucher (PBV) assistance. This voluntary conversion will help to preserve and improve affordable housing stock for low-income families throughout the County by increasing funding to better support ongoing operations and enhance residents’ quality of life. The current Public Housing funding model does not generate sufficient revenue to address capital improvement needs. The proposed repositioning is done on the national level with approval from the Department of Housing and Urban Development and would provide the County with greater flexibility to secure capital for rehabilitation and long-term sustainability of aging public housing properties. By leveraging public and private resources through the Rental Assistance Demonstration/Section 18 blend, the County would be better equipped to meet the housing needs of vulnerable populations while ensuring compliance with the Department of Housing and Urban Development standards and maintaining long-term affordability commitments. The four properties that would be a part of the repositioning are:  Dorothy Street Manor - located at 772-792 Dorothy Street. The site consists of 22 units, all of which are three bedrooms and two of which are Americans with Disabilities Act (ADA) accessible. The units were built in 1992 and host a target population of working families.  L Street Manor - located at 584-588 L Street. The site consists of 16 units, all of which are three bedrooms and one of which is ADA accessible. The units were built in 1992 and host a target population of working families.  Melrose Manor - located at 1670-1682 Melrose Avenue. The site consists of 24 units, eight of which are three bedrooms and 16 of which are two bedrooms. Additionally, two units are ADA accessible. The units were built in 1984 and host a target population of working families.  Town Center Manor - located at 434 F Street. The site consists of 59 units, 58 of which are one bedroom and one that is two bedrooms. Six of the units are ADA accessible. The units were built in 1985 and host a target population of elderly/disabled individuals. In addition to its request for City support, the County is requesting that the City not exercise its right of first refusal on the properties, as the units must be conveyed to another entity per the Department of Housing and Urban Development. Page 188 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 3 434 F Street, known as Town Center Manor, has a reverter as a part of its grant deed that would cause the property to revert back to the City. The County is requesting that the City terminate the reverter as it would potentially discourage lenders and investors from the project. 584-588 L Street, known as L Street Manor, has a recorded Abstract of Development Agreement that grants the City a first right of refusal to acquire the property if the County chooses to sell or otherwise transfer title to the property. If the City does not exercise its first right of refusal, the County is required to diligently attempt to sell the property at fair market value. Upon closing the City and County would evenly split the proceeds. The County intends to transfer the property to a wholly owned LLC and subsequently ground lease the property to an affordable developer to rehab the property. Both the reverter for 434 F Street and the Abstract of Development Agreement for 584 - 588 L Street would trigger the right of first refusal and the requirement to sell the property at its fair market value and split the proceeds. The concern is that the lender and investor would be anxious of the possibility of a foreclosure requiring splitting proceeds with the City, and therefore staff believe it is in the best interest to retain the property as affordable and to release its right of first refusal. Conclusion Converting the properties from the Public Housing program into affordable housing with PBV assistance will provide a number of benefits. As PBVs, HUD provides funding based on local market rent as opposed to the outdated formulas under Public Housing. This will provide a path for increased financial reserves to address the long-term needs and thereby, extend the life of the developments. The properties will remain as affordable rental units under a long-term contract for current and future residents. During and after the conversion, the residents will have the right to stay in their homes, continuing to pay no more than 30% of their income towards rent, while keeping the same rights and protections they had under the Public Housing program. Unlike Public Housing, PBVs offer residents the additional benefit of choice mobility. One year after conversion, and contingent on funding, residents are able to request a Section 8 Housing Choice Voucher (HCV), allowing them the option to move to a rental unit in the private market anywhere in the United States. When a resident moves out, their former unit would then become available for another family selected from the waiting list. Overall the repositioning will allow the County to preserve the properties as long-term affordable rental housing while creating a stable financial foundation to address the capital improvement needs of the properties. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that Councilmember Fernandez has real property holdings within 1,000 feet, but beyond 500 feet, of the boundaries of a property that is a part of the subject of this action. Staff has determined that, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(8), this item does not present a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the above- identified member. Page 189 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 4 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 as a result of this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as a result of this action. ATTACHMENTS 1. Properties Location Map Staff Contact: Chris Stanley, Senior Planner Page 190 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER SUPPORTING THE CONVERSION OF THE HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO’S CHULA VISTA PUBLIC HOUSING PORTFOLIO THROUGH THE RENTAL ASSISTANCE DEMONSTRATION PROGRAM AND AUTHORIZING THE CITY MANAGER TO AMEND OR TERMINATE RELATED AGREEMENTS AND INSTRUMENTS WHEREAS, the Housing Authority of the County of San Diego (HACSD) owns four properties within Chula Vista, located at 772-792 Dorothy Street (Dorothy Street Manor), 584-588 L Street (L Street Manor), 1670-1682 Melrose Avenue (Melrose Manor), and 434 F Street (Town Center Manor), collectively the “Chula Vista public housing properties”, that it operates as public housing pursuant to Section 9 of the U.S. Housing Act of 1937, as amended; and WHEREAS, the current public housing funding model does not generate sufficient revenue to address capital improvement needs; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) administers the Rental Assistance Demonstration (RAD) program to convert public housing properties to properties subsidized by Section 8 Project-Based Vouchers; and WHEREAS, HACSD now desires to carry out a RAD conversion of its Chula Vista public housing properties in order to reposition them for long-term fiscal and operational stability; and WHEREAS, HACSD has requested a letter of support from the City of Chula Vista (City) in carrying out this RAD conversion; and WHEREAS, the Grant Deed for the property located at 434 F Street property contains a clause that would cause ownership of the property to revert to the City in the event that the property is no longer used for low and moderate income housing; and WHEREAS, this Grant Deed reverter clause does not add meaningful protection to the affordability covenants, but will materially increase the difficulty of financing a substantial rehabilitation of the property; and WHEREAS, HACSD has therefore requested that the 434 F Street grant deed be amended to remove the reverter clause; and WHEREAS, the Abstract of Development Agreement for the property located at 584-588 L Street contains a clause granting the City the first right of refusal to acquire the property if Page 191 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Resolution No. Page 2 HACSD chooses to sell or otherwise transfer title to the property, and to sell the property at fair market value if the City declines to exercise its right to acquire the property; and WHEREAS, as part of the RAD conversion, HACSD desires to transfer ownership of the improvements at 584-588 L Street to an affordable developer in order to carry out a substantial rehabilitation; and WHEREAS, the provisions for sale or transfer of the 584-588 L Street property would prevent HACSD from carrying out a successful RAD conversion or substantial rehabilitation; and WHEREAS, HACSD therefore requests that the Abstract of Development Agreement, and associated Development Agreement, be terminated. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby support the conversion of the Chula Vista public housing properties owned by the Housing Authority of the County of San Diego under the HUD Rental Assistance Demonstration program and authorizes the City Manager to execute a letter of support to this effect. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager to negotiate and execute an amendment to the Grant Deed for the property located at 434 F Street to remove the reverter clause in the form as may be required or approved by the City Attorney. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager to negotiate and execute a termination of the Developer Agreement and Abstract of Developer Agreement for the property located at 584-588 L Street in the form as may be required or approved by the City Attorney. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager to negotiate and execute any necessary additional documents or take any other action consistent with this resolution and its basic purpose in the form as may be required or approved by the City Attorney. Presented by Approved as to Form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services City Attorney Page 192 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 434 F St. 584-588 L St. 772-792 Dorothy St. 1670-1682 Melrose Pl. Page 193 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 194 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 5 P a g e | 1 September 23, 2025 ITEM TITLE Real Property Purchases: Approve the Acquisitions of Real Property at 60 First Avenue and 65 First Avenue and Appropriate Funds Therefor Report Number: 25-0229 Location: 60 First Avenue & 65 First Avenue Department: City Manager G.C. § 84308 Regulations Apply: Yes Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15316 Class 16 (Transfer of Ownership of Land in Order to Create Parks). In addition, notwithstanding the foregoing, the Project also qualifies for the Common Sense Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Recommended Action Adopt resolutions approving the purchase of 60 First Avenue (APN 566-122-32-00), 65 First Avenue (APN 566-131-06-00) for the purposes of the Lower Sweetwater Community Park Project and appropriating funds for this purpose. (4/5 Vote Required) SUMMARY The City of Chula Vista is planning a new community park on a site known as Lower Sweetwater. It is located on approximately 19.7 acres of City-owned land just west of Interstate 805 and south of State Route 54 and the Sweetwater River. Acquisition of parcels along First Avenue has been identified as necessary to establish access for both construction and future public use of the proposed park site. This item proposes the purchase of two parcels: 60 First Avenue and 65 First Avenue. 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 15316 Class 16 (Transfer of Ownership of Land in Order to Create Parks), because the proposed project consists of the acquisition of land in order to establish a park where Page 195 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 2 the land is in a natural condition, and a management plan for the future park has not yet been prepared. Thus, no further environmental review is required at this time. CEQA will apply when a management plan is proposed that will change the area from its natural condition. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the project qualifies for the Common Sense Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista is planning a new community park on a site known as Lower Sweetwater. It is located on approximately 19.7 acres of City-owned land just west of Interstate 805 and south of State Route 54 and the Sweetwater River. History of Lower Sweetwater The Lower Sweetwater park site has been vacant for most of the City’s history. The site was bisected by the Sweetwater River before the river was realigned and channelized through several public works projects in the 1970s, including the construction of State Route 54 and Interstate 805. The Chula Vista General Plan, adopted in 2005, identified Lower Sweetwater as a future park site. The City’s Parks & Recreation Master Plan in 2016 also identified Lower Sweetwater as a future community park and provided a list of recommended park amenities based on community needs at the time. Designing the Park The park is currently in the early stages of planning and design, and the City is exploring fu nding opportunities. Community members will be invited to participate in a park planning process to identify and prioritize desired amenities, such as playing fields, playground equipment, and restrooms. The process will include gathering input through online surveys and in-person meetings for community members to provide ideas and feedback on preliminary design options. Estimated costs for various amenities, and an estimated budget for the project as a whole, will help determine the options available. The community engagement process will inform the creation of a new Park Master Plan for the site. When complete, the Park Master Plan will be presented to the Chula Vista Parks and Recreation Commission and City Council for discussion and approval. Site Access During the planning process, staff identified the need for expanding the dedicated public access to the park site. While the City currently has a portion of right-of-way along First Avenue, it is insufficient therefore, the City seeks to acquire additional parcels currently held under private ownership. Acquisition of parcels is necessary to provide safe and permanent access for construction, future park operations, and public use. Page 196 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 3 Staff has negotiated with property owners at 60 First Avenue (APN 566-122-32-00) and 65 First Avenue (566-131-06-00) for the purchase of two parcels critical to expand access. The proposed agreements would allow the City to purchase 60 First Avenue for $100,000 and 65 First Avenue for $375,000 as well as associated escrow and closing costs. 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 The projected fiscal impact of this action is estimated at $475,000, plus associated escrow and closing costs. All costs associated with the purchase of the two parcels will be funded by the Sunbow Park Benefit Fee Fund revenues, this action amends the fiscal year 2025-26 budget by increasing appropriations in the Other Capital category of the Sunbow Park Benefit Fee fund. ONGOING FISCAL IMPACT Any future costs related to Lower Sweetwater Community Park will be brought for City Council consideration. ATTACHMENTS 1. Real Property Purchase Agreement for 60 First Avenue (APN 566-122-32-00) 2. Real Property Purchase Agreement for 65 First Avenue (APN 566-131-06-00) Staff Contact: Tiffany Allen, Assistant City Manager Adrianna Relph, Special Projects & Legislative Manager Page 197 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 2/18/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PURCHASE OF A PARCEL LOCATED AT 60 FIRST AVENUE (APN 566-122-32-00) FOR THE PURPOSES RELATED TO THE LOWER SWEETWATER COMMUNITY PARK AND APPROPRIATING FUNDS THEREFOR WHEREAS, the City of Chula Vista is planning a new community park on a site known as Lower Sweetwater located on approximately 19.7 acres of City-owned land just west of Interstate 805 and south of State Route 54 and the Sweetwater River; and WHEREAS, the Chula Vista General Plan, adopted in 2005, identified Lower Sweetwater as a future park site and in 2016, the Parks & Recreation Master Plan also identified Lower Sweetwater as a future community park; and WHEREAS, acquisition of parcels along First Avenue is necessary to provide safe and permanent access for construction, future park operations, and public use of the park; and WHEREAS, the City has agreed to purchase, and the owner has agreed to sell the s ubject parcel to the City for the price and under the terms set forth in a Real Property Purchase Agreement, a copy of which is attached hereto and by reference made a part hereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Real Property Purchase Agreement for property located at 6 0 First Avenue (APN 566-122-32-00), between the City and Arthur Andres Ortiz, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute same. BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that it hereby amends the fiscal year 2025-26 budget to appropriate $100,000 plus associated escrow and closing costs, to the Other Capital category of the Sunbow Park Benefit Fee Fund. Presented by Approved as to Form by Tiffany Allen Marco A. Verdugo Assistant City Manager City Attorney Page 198 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Resolution No. Page 2 Page 199 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 2/18/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PURCHASE OF A PARCEL LOCATED AT 65 FIRST AVENUE (APN 566-131-06-00) FOR THE PURPOSES RELATED TO THE LOWER SWEETWATER COMMUNITY PARK AND APPROPRIATING FUNDS THEREFOR WHEREAS, the City of Chula Vista is planning a new community park on a site known as Lower Sweetwater located on approximately 19.7 acres of City-owned land just west of Interstate 805 and south of State Route 54 and the Sweetwater River; and WHEREAS, the Chula Vista General Plan, adopted in 2005, identified Lower Sweetwater as a future park site and in 2016, the Parks & Recreation Master Plan also identified Lower Sweetwater as a future community park; and WHEREAS, acquisition of parcels along First Avenue is necessary to provide safe and permanent access for construction, future park operations, and public use of the Lower Sweetwater Community Park; and. WHEREAS, the City has agreed to purchase, and the owner has agreed to sell the subject parcel to the City for the price and under the terms set forth in a Real Property Purchase Agreement, a copy of which is attached hereto and by reference made a part hereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Real Property Purchase Agreement for property located at 65 First Avenue (APN 566-131-06-00), between the City and Luaiva G. Solomuli Jr., And Elise Solomuli, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute same. BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that it hereby amends the fiscal year 2025-26 budget to appropriate $375,000 plus associated escrow and closing costs, to the Other Capital category of the Sunbow Park Benefit Fee Fund. Presented by Approved as to Form by Tiffany Allen Marco A. Verdugo Assistant City Manager City Attorney Page 200 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Resolution No. Page 2 Page 201 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Escrow Company Corinthian Title Escrow No. ______________ Title Order No. 129900 REAL PROPERTY PURCHASE AGREEMENT (Escrow Instructions) THIS REAL PROPERTY PURCHASE AGREEMENT (“Agreement”) is entered into this ____ day of _____________, 2025 by and between THE CITY OF CHULA VISTA, a charter city organized under the laws of the State of California (“City”), and ARTHUR ANDRES ORTIZ, A SINGLE MAN (“Seller”), (collectively “Parties”) for purchase by City of the hereinafter described real property to be effective as of the date when signed by both Seller and City and approved by the Chula Vista City Attorney. WHEREAS, Seller owns that certain real property located at 60 First Avenue, in the City of Chula Vista, County of San Diego, State of California (“Property”), and currently identified as San Diego County Assessors Parcel No. 566-122-32-00 WHEREAS, Seller has offered to sell to City said Property for $100,000.00, and WHEREAS, City desires to purchase fee title in and to Seller’s Property under the terms and conditions of this Agreement. NOW THEREFORE, for valuable consideration, the sufficiency of which is acknowledged, the Parties enter into this Agreement under the following terms and conditions: 1. AGREEMENT TO SELL AND PURCHASE City agrees to purchase from Seller and Seller agrees to sell to City, upon the terms and for the consideration set forth in this Agreement, fee title in and to the Property more particularly described in the legal description designated as Exhibit “A”, attached hereto and are incorporated herein by this reference. City’s agreement to purchase the property is expressly contingent upon the adoption of a resolution by the City Council of the City of Chula Vista authorizing the acquisition. The parties hereto agree that the Property shall be conveyed in fee to the City clear of all encumbrances except agreements with the City, County of San Diego or other authorities or agencies, easements, assessments and Districts of record. 2. PURCHASE PRICE The total purchase price payable on the terms set forth herein shall be the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) (“Purchase Price”) to be paid in the manner set forth below. 3. ESCROW AND TITLE INSURANCE City agrees to open an escrow in accordance with this Agreement at Stewart Title Company ("Escrow Holder"), located at 7676 Hazard Center Drive, Suite 1400, San Diego, California and deposit a fully executed copy of this Agreement no later than _____________. City agrees to pay all usual and Page 202 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda reasonable fees, charges, and costs (including transfer taxes, if any) which arise in the escrow, upon demand of Escrow Holder. Seller shall not be liable for any costs or fees in connection with this escrow. This Agreement constitutes the joint escrow instructions of the Parties, and Escrow Holder to whom these instructions are delivered is hereby empowered to act under this Agreement. The Parties hereto agree to do all acts reasonably necessary to close escrow as soon as possible, but in all events no later than sixty (60) days after a fully executed copy of this Agreement, is deposited into escrow. The terms closing and/or close of escrow as used herein shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of title insurance pursuant to this Agreement. City shall, upon receipt of a statement of estimated closing cost from Escrow Holder, deposit the Purchase Price together with additional funds as set forth in said statement. Said deposit shall be made in accordance with the wire transfer instructions of the Escrow Holder and shall be made in sufficient time to allow for the timely close of escrow as set forth herein. City shall also execute and deposit into escrow a Certificate of Acceptance accepting fee title to the Property in sufficient time to allo w for the timely close of escrow as set forth herein. Seller shall execute and deliver into escrow an executed Grant Deed conveying fee title to the Property to City in sufficient time to allow for the timely close of escrow as set forth herein. Seller and City agree to deposit with Escrow Holder any additional instruments as may be reasonable and necessary to complete this transaction in a timely manner as set forth herein. All funds received in this escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by wire transfer from such account, unless Seller requests another form of payment. If City requests a policy of title insurance when Escrow Holder holds for Seller the Grant Deed in favor of City, executed and acknowledged by Seller covering the Property, Escrow Holder shall cause to be issued and delivered to City at City's cost, a preliminary title report for City review. City shall have five (10) business days to review and approve said preliminary report. After City approval, Escrow Holder shall cause to be issued, as of the closing date and at City's cost, a CLTA standard coverage policy of title insurance (“Title Policy”), issued by Commonwealth Land Title, with liability in the amount of the Purchase Price, covering the Property and showing title vesting in City, free of all recorded and unrecorded, liens, encumbrances, leases and taxes except agreements with the City, County of San Diego or other public agencies and Districts of record and: (a) The standard printed exceptions and exclusions contained in the CLTA or ALTA form policy; (b) Public and Quasi-public utility, public alley, public street easements and public rights of way of record; and Any and all ad valorem taxes and special taxes or assessments levied or assessed against the Property for the year in which the closing occurs shall be prorated at the closing, and all delinquent taxes shall be added to the pro-rated amount in order to calculate the amount(s) of any taxes owed by Seller Page 203 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda as of the closing date. If the closing occurs before the tax rate or the assessed valuation is fixed for the then-current year, the prorating of ad valorem taxes shall use the tax rate and the assessed valuation for the preceding tax year. The prorating of ad valorem taxes shall be subject to later adjustment once the actual tax statements for the closing year have been received; the obligation to re-prorate taxes shall survive the closing. Escrow Holder is authorized to and shall pay and charge City for any title insurance premium and the costs of any endorsements. Escrow Holder is authorized to and shall disburse funds and deliver the Grant Deed when City and Seller have fulfilled all conditions of the escrow and purchase agreement. 4. RESPONSIBILITY OF ESCROW HOLDER Escrow Holder shall administer the closing in accordance with this Agreement and any escrow instructions or other customary documents that Escrow Holder may require the Parties to sign in connection with the closing. 5. CONVEYANCE OF INTEREST At the closing, Seller shall convey to City fee title to the Property by Grant Deed, substantially in the form attached to this Agreement as Exhibit B. Except for any title encumbrances accepted by City in writing prior to the closing, Seller’s conveyance of the Property to City at the closing shall be free and clear of all liens, encumbrances, and third-party possessory rights. SELLER shall deliver the Property to BUYER at the Closing. 6. DEPOSIT OF FUNDS City agrees to deposit the purchase price of the Property as contemplated by this Agreement. 7. SELLER’S REPRESENTATIONS AND WARRANTIES. SELLER represents and warrants to City that all of the following are true and correct: (a) Seller is not aware of any actions, suits, material claims, legal proceedings, or any other proceedings at law or in equity, before any court or governmental agency, affecting the Property or any portion thereof or affecting SELLER’s ability to enter into this Agreement and perform its obligations under this Agreement. (b) Seller is not aware of the presence or potential presence of contamination from Hazardous Materials situated at, under or about the Property. For purposes of this Agreement, (i) the term “Hazardous Materials” means any materials, substances or wastes defined as “hazardous,” “toxic,” “pollutant,” or “contaminant,” or stated to be known to cause cancer or reproductive toxicity, under any Environmental Law; and (ii) the term “Environmental Law” means any and all federal, state or local laws (whether statutory or common law) relating to pollution or protection of the environment, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1317 et seq.; the Carpenter-Presley-Tanner Hazardous Substance Account Act, California Health & Safety Code Section 25300 et seq.; the California Hazardous Waste Control Law, California Health & Safety Code Section 25100 et seq.; the Porter-Cologne Water Quality Control Act, Page 204 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda California Water Code Section 13000 et seq.; or any of the regulations adopted and publications promulgated pursuant to such laws and regulations as they may be amended from time to time. (c) There are no operative leases or other agreements that give any third party the right to possess or occupy any portion of the Property. (d) Seller has not received notice from any governmental or regulatory agency as to the existence of any actual or alleged violations of laws or regulations applicable to the Property or any pending or threatened investigations or proceedings, including an eminent domain action, affecting the Property. (e) Neither Seller signature of this Agreement nor Seller’s performance of its obligations in this Agreement will conflict with or breach any bond, note, evidence of indebtedness, contract, lease, or other agreement or instrument to which Seller or the Property may be bound, or any court or regulatory order or directive to which Seller or the Property may be bound. Seller shall, upon learning of any fact or condition which would cause any of the representations and warranties in this section to be untrue or incomplete as of the closing, immediately notify City of such fact or condition. 8. SELLER’S COVENANTS. From the date of Seller’s signature of this Agreement through and including the closing date, Seller covenants for City’s benefit as follows: (a) Seller shall not do anything to impair title to any of the Property. (b) Seller shall not lease or encumber any part of the Property, or otherwise grant or permit any lien, easement, or other interest in any of the Property to be attached thereto, and if any such interest should be attached, Seller shall cause any and all such items to be removed or extinguished prior to the closing. (c) Seller shall not allow any Hazardous Materials to be used, handled, generated, stored, released, treated or disposed of at, under or about the Property. 9. SELLER’S INDEMNIFICATION. Seller shall indemnify, protect, defend and hold harmless City and its officers, employees and agents, using legal counsel selected by City, from and against any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs and expenses (including, without limitation, attorneys’ fees, court costs, administrative procedural costs and experts’ fees), foreseen and unforeseen, relating to or arising from any of the following: (i) Seller’s breach of any of its representations, warranties, or covenants under this Agreement; (ii) the use, handling, generation, storage, release, treatment or disposal of Hazardous Materials by Seller or any employee, agent, lessee, licensee or invitee of Seller on, under or from the Property; and (iii) the cost of any required or necessary remediation, removal, repair, cleanup or detoxification, the costs of any testing, sampling or other investigations, and the preparation of required plans as a result of any of the causes described in item (ii) above. Seller’s Page 205 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda obligations under this section shall survive the Closing and recording of the Grant Deed transferring title to City. 10. SELLER DEFAULT. IF THE SELLER DEFAULTS UNDER THE TERMS OF THE AGREEMENT, AND IF SELLER FAILS TO CURE SUCH DEFAULT ON OR BEFORE THE DATE WHICH IS THREE (3) BUSINESS DAYS AFTER NOTICE THEREOF FROM CITY (OR, IF EARLIER, ON THE CLOSING DATE), CITY MAY, AT ITS SOLE OPTION, ELECT TO DO ONE OF THE FOLLOWING: (I) TERMINATE THIS AGREEMENT BY DELIVERY OF NOTICE OF TERMINATION TO SELLER AND ESCROW HOLDER, IN WHICH EVENT THE DEPOSIT SHALL BE RETURNED TO BUYER, AND THIS AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF BUYER AND SELLER HEREUNDER SHALL TERMINATE OR (II) ENFORCE SPECIFIC PERFORMANCE SELLER'S OBLIGATIONS, OR (III) SEEK AND ENFORCE ANY REMDEY AVAILABLE AT LAW OR EQUITY. Seller's Initials: __________ City's Initials:__________ 11. CITY’S DEFAULT. If City is in default of this Agreement at any time, Seller may terminate this Agreement by written notice to City and Escrow Holder, or seek and enforce any other remedy available at law or in equity, provided that Seller shall not be entitled to recover from City any consequential damages, lost opportunity damages, or punitive damages. 12. REAL ESTATE COMMISSIONS Seller has informed City that they have employed a broker who may be entitled to a commission as a result of this sale and purchase. The parties hereto agree that any commission or fee due to the broker is solely Sellers responsibility and that said fee or commission may be paid out of the proceeds of this sale at close of escrow upon demand and by mutual consent of the parties. If any other broker, finder or other person makes a claim for commissions or finder's fee based upon any contract, dealing or communication with a party, then such party shall indemnify, defend and hold the other party harmless from and against all damages, claims, losses and expenses, including attorneys' fees, arising out of the broker's, finder's or other person's claim. 13. MISCELLANEOUS a. Legal Fees. In the event of the bringing of any action or suit by either party against the other party by reason of any breach of any of the covenants, conditions, agreements or provisions on the part of the other party arising out of this Agreement, the party in whose favor final judgment shall be entered shall be entitled to have and recover of and from the other party all costs and expenses of suit, including reasonable attorneys' fees (or, in the event of any action to enforce this Agreement, the prevailing party shall be entitled to recover all of its costs and expenses of the action, including reasonable attorney's fees), as determined by a court of competent jurisdiction. b. Time is of the Essence. Time is of the essence of each and every term, condition, obligation and provision of this Agreement. Page 206 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda c. Counterparts. This Agreement may be signed in counterparts, each of which when signed shall be deemed an original, but all of which together shall constitute one and the same instrument. Seller may electronically deliver a signed counterpart to this Agreement to City. Seller electronically delivered signed counterpart shall be deemed an original for all purposes. Notwithstanding the foregoing, Seller shall deliver a paper counterpart of this Agreement bearing original signatures to Escrow Holder prior to the Closing. d. Interpretation. This Agreement shall be governed by the laws of the State of California. The section headings are for convenience only and shall not interpret, define or limit the scope or content of this Agreement. If any Party is made up of more than one person or entity, then all are identified in the singular in this Agreement. If any right of approval or consent by a Party is provided for in this Agreement, the Party shall exercise the right promptly and reasonably, unless this Agreement expressly gives such Party the right to use its sole discretion. The term “business day” shall mean Monday through Friday, excluding holidays recognized by the State of California and the City of Chula Vista. e. Amendments. The terms and provisions of this Agreement may only be modified or amended pursuant to a written instrument signed by both Parties. f. Successors and Assigns. This Agreement shall inure to and bind the successors and assigns of the Parties. g. No Personal Liability of Officials and Employees. No official or employee of City will be personally liable to Seller in the event of City’s default under this Agreement or for any amount that may become due to Seller, or on any obligations under the terms of this Agreement, except to the extent resulting from the fraud or willful misconduct of such official or employee. h. Mutual Negotiation. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted any part of this Agreement. The Parties have both participated substantially in the negotiation, drafting, and revision of this Agreement, and have been given ample opportunity to consult with legal counsel and other consultants or advisers of their own choice. i. Tax Consequences. Each Party shall bear all responsibility, liability, and costs relating to any tax consequences experienced by such Party as a result of this Agreement and the sale transaction contemplated by this Agreement. j. No Affiliation. Nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture, or other affiliation between Seller and City, or between City and any other entity or party, or cause City to be responsible in any way for the debts or obligations of Seller or any other party or entity. k. Entire Agreement. This Agreement represents the entire agreement between the Parties for the purchase and sale of the Property, and supersedes all prior negotiations, representations or agreements, either oral or written. l. Severability. If any portion of this Agreement shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed Page 207 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda from this Agreement, and the remaining parts of this Agreement shall remain in full force and effect, as fully as though such invalid, illegal or unenforceable portion had never been part of this Agreement. m. Governing Law. This Agreement is executed and delivered in the State of California and shall be construed and enforced in accordance with, and governed by, the laws of the State of California. All legal actions arising from this Agreement shall be filed in the Superior Court of the State of California in the County of San Diego or in the United States District Court with jurisdiction in the County of San Diego. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] Page 208 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda IN WITNESS WHEREOF, the duly authorized representative of each party has executed this Agreement. BUYER: City of Chula Vista SELLER: By: John McCann Arthur Andres Ortiz Mayor ATTEST BY: ________________________________ Kerry K. Bigelow, MMC City Clerk Approved as to Form: MARCO A. VERDUGO City Attorney Page 209 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Corinthian Tltte Compny, lrr. ORDER NO.: 129900-AF PREUMIMRY REPORT YOUR REFERENCE: PRMV-1402-CP EXHIBIT A LEGAL DESCRIPTION The land referred to herein below ls situated ln the County of SAN DIE@, State of CALIFORNIA, and is descrlbed as follows: LOT 16 OF EL RANCHO VrLl-AS, tN THE CrW OF CHU|-A V6rA, COUNW OF SAN DIEGO, STATE OF CALTFORNIA, ACCORDING TO MAP THEREOF NO. 2376, FII.ED IN THE OFF|CE OF THE COUNW RECORDER OF SAN DIEGO cotrNw, FEBRUARY 17, 1947. Assessor's Parcel Number: 566- I 22-12-OO Page 210 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Recording requested by and please return to: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attention City Clerk  (This space for Recorder's use, only)  Assessor’s Parcel Number 566-122-32-00 Grant Deed FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Arthur Andres Ortiz, a single man, does hereby grant to the City of Chula Vista, a California charter city organized under the laws of the State of California, ALL THAT REAL PROPERTY, in fee title together with all improvements, rights and appurtenances thereto, and subject to all encumbrances of record, located in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: See Legal Description designated as Exhibit “A” attached hereto and by reference made a part hereof. Signed this day of , 2025 Grantor (Notary Acknowledgment required for each signatory.) Page 211 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Acceptance Certificate This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. ______ __________, City Clerk By: Date: Page 212 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Escrow Company Stewart Title Escrow No. ______________ Title Order No. 25000480534 REAL PROPERTY PURCHASE AGREEMENT (Escrow Instructions) THIS REAL PROPERTY PURCHASE AGREEMENT (“Agreement”) is entered into this ____ day of _____________, 2025 by and between THE CITY OF CHULA VISTA, a charter city organized under the laws of the State of California (“City”), and LUAIVA G. SOLOMULI JR., AND ELISE SOLOMULI, HUSBAND AND WIFE (“Seller”), (collectively “Parties”) for purchase by City of the hereinafter described real property to be effective as of the date when signed by both Seller and City and approved by the Chula Vista City Attorney. WHEREAS, Seller owns that certain real property located at 65 First Avenue, in the City of Chula Vista, County of San Diego, State of California (“Property”), and currently identified as San Diego County Assessors Parcel No. 566-131-06-00 WHEREAS, Seller has offered to sell to City said Property for $375,000.00, and WHEREAS, City desires to purchase fee title in and to Seller’s Property under the terms and conditions of this Agreement. NOW THEREFORE, for valuable consideration, the sufficiency of which is acknowledged, the Parties enter into this Agreement under the following terms and conditions: 1. AGREEMENT TO SELL AND PURCHASE City agrees to purchase from Seller and Seller agrees to sell to City, upon the terms and for the consideration set forth in this Agreement, fee title in and to the Property more particularly described in the legal description designated as Exhibit “A”, attached hereto and are incorporated herein by this reference. City’s agreement to purchase the property is expressly contingent upon the adoption of a resolution by the City Council of the City of Chula Vista authorizing the acquisition. The parties hereto agree that the Property shall be conveyed in fee to the City clear of all encumbrances except agreements with the City, County of San Diego or other authorities or agencies, easements, assessments and Districts of record. 2. PURCHASE PRICE The total purchase price payable on the terms set forth herein shall be the sum of THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($375,000.00) (“Purchase Price”) to be paid in the manner set forth below. 3. ESCROW AND TITLE INSURANCE City agrees to open an escrow in accordance with this Agreement at Stewart Title Company ("Escrow Holder"), located at 7676 Hazard Center Drive, Suite 1400, San Diego, California and deposit a fully executed copy of this Agreement no later than _____________. City agrees to pay all usual and Page 213 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda reasonable fees, charges, and costs (including transfer taxes, if any) which arise in the escrow, upon demand of Escrow Holder. Seller shall not be liable for any costs or fees in connection with this escrow. This Agreement constitutes the joint escrow instructions of the Parties, and Escrow Holder to whom these instructions are delivered is hereby empowered to act under this Agreement. The Parties hereto agree to do all acts reasonably necessary to close escrow as soon as possible, but in all events no later than sixty (60) days after a fully executed copy of this Agreement, is deposited into escrow. The terms closing and/or close of escrow as used herein shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of title insurance pursuant to this Agreement. City shall, upon receipt of a statement of estimated closing cost from Escrow Holder, deposit the Purchase Price together with additional funds as set forth in said statement. Said deposit shall be made in accordance with the wire transfer instructions of the Escrow Holder and shall be made in sufficient time to allow for the timely close of escrow as set forth herein. City shall also execute and deposit into escrow a Certificate of Acceptance accepting fee title to the Property in sufficient time to allo w for the timely close of escrow as set forth herein. Seller shall execute and deliver into escrow an executed Grant Deed conveying fee title to the Property to City in sufficient time to allow for the timely close of escrow as set forth herein. Seller and City agree to deposit with Escrow Holder any additional instruments as may be reasonable and necessary to complete this transaction in a timely manner as set forth herein. All funds received in this escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by wire transfer from such account, unless Seller requests another form of payment. If City requests a policy of title insurance when Escrow Holder holds for Seller the Grant Deed in favor of City, executed and acknowledged by Seller covering the Property, Escrow Holder shall cause to be issued and delivered to City at City's cost, a preliminary title report for City review. City shall have five (10) business days to review and approve said preliminary report. After City approval, Escrow Holder shall cause to be issued, as of the closing date and at City's cost, a CLTA standard coverage policy of title insurance (“Title Policy”), issued by Commonwealth Land Title, with liability in the amount of the Purchase Price, covering the Property and showing title vesting in City, free of all recorded and unrecorded, liens, encumbrances, leases and taxes except agreements with the City, County of San Diego or other public agencies and Districts of record and: (a) The standard printed exceptions and exclusions contained in the CLTA or ALTA form policy; (b) Public and Quasi-public utility, public alley, public street easements and public rights of way of record; and Any and all ad valorem taxes and special taxes or assessments levied or assessed against the Property for the year in which the closing occurs shall be prorated at the closing, and all delinquent taxes shall be added to the pro-rated amount in order to calculate the amount(s) of any taxes owed by Seller Page 214 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda as of the closing date. If the closing occurs before the tax rate or the assessed valuation is fixed for the then-current year, the prorating of ad valorem taxes shall use the tax rate and the assessed valuation for the preceding tax year. The prorating of ad valorem taxes shall be subject to later adjustment once the actual tax statements for the closing year have been received; the obligation to re-prorate taxes shall survive the closing. Escrow Holder is authorized to and shall pay and charge City for any title insurance premium and the costs of any endorsements. Escrow Holder is authorized to and shall disburse funds and deliver the Grant Deed when City and Seller have fulfilled all conditions of the escrow and purchase agreement. 4. RESPONSIBILITY OF ESCROW HOLDER Escrow Holder shall administer the closing in accordance with this Agreement and any escrow instructions or other customary documents that Escrow Holder may require the Parties to sign in connection with the closing. 5. CONVEYANCE OF INTEREST At the closing, Seller shall convey to City fee title to the Property by Grant Deed, substantially in the form attached to this Agreement as Exhibit B. Except for any title encumbrances accepted by City in writing prior to the closing, Seller’s conveyance of the Property to City at the closing shall be free and clear of all liens, encumbrances, and third-party possessory rights. SELLER shall deliver the Property to BUYER at the Closing. 6. DEPOSIT OF FUNDS City agrees to deposit the purchase price of the Property as contemplated by this Agreement. 7. SELLER’S REPRESENTATIONS AND WARRANTIES. SELLER represents and warrants to City that all of the following are true and correct: (a) Seller is not aware of any actions, suits, material claims, legal proceedings, or any other proceedings at law or in equity, before any court or governmental agency, affecting the Property or any portion thereof or affecting SELLER’s ability to enter into this Agreement and perform its obligations under this Agreement. (b) Seller is not aware of the presence or potential presence of contamination from Hazardous Materials situated at, under or about the Property. For purposes of this Agreement, (i) the term “Hazardous Materials” means any materials, substances or wastes defined as “hazardous,” “toxic,” “pollutant,” or “contaminant,” or stated to be known to cause cancer or reproductive toxicity, under any Environmental Law; and (ii) the term “Environmental Law” means any and all federal, state or local laws (whether statutory or common law) relating to pollution or protection of the environment, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1317 et seq.; the Carpenter-Presley-Tanner Hazardous Substance Account Act, California Health & Safety Code Section 25300 et seq.; the California Hazardous Waste Control Law, California Health & Safety Code Section 25100 et seq.; the Porter-Cologne Water Quality Control Act, Page 215 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda California Water Code Section 13000 et seq.; or any of the regulations adopted and publications promulgated pursuant to such laws and regulations as they may be amended from time to time. (c) There are no operative leases or other agreements that give any third party the right to possess or occupy any portion of the Property. (d) Seller has not received notice from any governmental or regulatory agency as to the existence of any actual or alleged violations of laws or regulations applicable to the Property or any pending or threatened investigations or proceedings, including an eminent domain action, affecting the Property. (e) Neither Seller signature of this Agreement nor Seller’s performance of its obligations in this Agreement will conflict with or breach any bond, note, evidence of indebtedness, contract, lease, or other agreement or instrument to which Seller or the Property may be bound, or any court or regulatory order or directive to which Seller or the Property may be bound. Seller shall, upon learning of any fact or condition which would cause any of the representations and warranties in this section to be untrue or incomplete as of the closing, immediately notify City of such fact or condition. 8. SELLER’S COVENANTS. From the date of Seller’s signature of this Agreement through and including the closing date, Seller covenants for City’s benefit as follows: (a) Seller shall not do anything to impair title to any of the Property. (b) Seller shall not lease or encumber any part of the Property, or otherwise grant or permit any lien, easement, or other interest in any of the Property to be attached thereto, and if any such interest should be attached, Seller shall cause any and all such items to be removed or extinguished prior to the closing. (c) Seller shall not allow any Hazardous Materials to be used, handled, generated, stored, released, treated or disposed of at, under or about the Property. 9. SELLER’S INDEMNIFICATION. Seller shall indemnify, protect, defend and hold harmless City and its officers, employees and agents, using legal counsel selected by City, from and against any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs and expenses (including, without limitation, attorneys’ fees, court costs, administrative procedural costs and experts’ fees), foreseen and unforeseen, relating to or arising from any of the following: (i) Seller’s breach of any of its representations, warranties, or covenants under this Agreement; (ii) the use, handling, generation, storage, release, treatment or disposal of Hazardous Materials by Seller or any employee, agent, lessee, licensee or invitee of Seller on, under or from the Property; and (iii) the cost of any required or necessary remediation, removal, repair, cleanup or detoxification, the costs of any testing, sampling or other investigations, and the preparation of required plans as a result of any of the causes described in item (ii) above. Seller’s Page 216 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda obligations under this section shall survive the Closing and recording of the Grant Deed transferring title to City. 10. SELLER DEFAULT. IF THE SELLER DEFAULTS UNDER THE TERMS OF THE AGREEMENT, AND IF SELLER FAILS TO CURE SUCH DEFAULT ON OR BEFORE THE DATE WHICH IS THREE (3) BUSINESS DAYS AFTER NOTICE THEREOF FROM CITY (OR, IF EARLIER, ON THE CLOSING DATE), CITY MAY, AT ITS SOLE OPTION, ELECT TO DO ONE OF THE FOLLOWING: (I) TERMINATE THIS AGREEMENT BY DELIVERY OF NOTICE OF TERMINATION TO SELLER AND ESCROW HOLDER, IN WHICH EVENT THE DEPOSIT SHALL BE RETURNED TO BUYER, AND THIS AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF BUYER AND SELLER HEREUNDER SHALL TERMINATE OR (II) ENFORCE SPECIFIC PERFORMANCE SELLER'S OBLIGATIONS, OR (III) SEEK AND ENFORCE ANY REMDEY AVAILABLE AT LAW OR EQUITY. Seller's Initials: __________ City's Initials:__________ 11. CITY’S DEFAULT. If City is in default of this Agreement at any time, Seller may terminate this Agreement by written notice to City and Escrow Holder, or seek and enforce any other remedy available at law or in equity, provided that Seller shall not be entitled to recover from City any consequential damages, lost opportunity damages, or punitive damages. 12. REAL ESTATE COMMISSIONS No brokers or finders have been employed for a fee or are entitled to a commission or compensation in connection with this transaction. Each party represents to the other that it has not had any contact, dealings or communications with a broker or finder in connection with the transaction contemplated by the Agreement or any other person who can claim a right to a commission or finder's fee. If any other broker, finder or other person makes a claim for commissions or finder's fee based upon any contract, dealing or communication with a party, then such party shall indemnify, defend and hold the other party harmless from and against all damages, claims, losses and expenses, including attorneys' fees, arising out of the broker's, finder's or other person's claim. 13. MISCELLANEOUS a. Legal Fees. In the event of the bringing of any action or suit by either party against the other party by reason of any breach of any of the covenants, conditions, agreements or provisions on the part of the other party arising out of this Agreement, the party in whose favor final judgment shall be entered shall be entitled to have and recover of and from the other party all costs and expenses of suit, including reasonable attorneys' fees (or, in the event of any action to enforce this Agreement, the prevailing party shall be entitled to recover all of its costs and expenses of the action, including reasonable attorney's fees), as determined by a court of competent jurisdiction. b. Time is of the Essence. Time is of the essence of each and every term, condition, obligation and provision of this Agreement. Page 217 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda c. Counterparts. This Agreement may be signed in counterparts, each of which when signed shall be deemed an original, but all of which together shall constitute one and the same instrument. Seller may electronically deliver a signed counterpart to this Agreement to City. Seller electronically delivered signed counterpart shall be deemed an original for all purposes. Notwithstanding the foregoing, Seller shall deliver a paper counterpart of this Agreement bearing original signatures to Escrow Holder prior to the Closing. d. Interpretation. This Agreement shall be governed by the laws of the State of California. The section headings are for convenience only and shall not interpret, define or limit the scope or content of this Agreement. If any Party is made up of more than one person or entity, then all are identified in the singular in this Agreement. If any right of approval or consent by a Party is provided for in this Agreement, the Party shall exercise the right promptly and reasonably, unless this Agreement expressly gives such Party the right to use its sole discretion. The term “business day” shall mean Monday through Friday, excluding holidays recognized by the State of California and the City of Chula Vista. e. Amendments. The terms and provisions of this Agreement may only be modified or amended pursuant to a written instrument signed by both Parties. f. Successors and Assigns. This Agreement shall inure to and bind the successors and assigns of the Parties. g. No Personal Liability of Officials and Employees. No official or employee of City will be personally liable to Seller in the event of City’s default under this Agreement or for any amount that may become due to Seller, or on any obligations under the terms of this Agreement, except to the extent resulting from the fraud or willful misconduct of such official or employee. h. Mutual Negotiation. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted any part of this Agreement. The Parties have both participated substantially in the negotiation, drafting, and revision of this Agreement, and have been given ample opportunity to consult with legal counsel and other consultants or advisers of their own choice. i. Tax Consequences. Each Party shall bear all responsibility, liability, and costs relating to any tax consequences experienced by such Party as a result of this Agreement and the sale transaction contemplated by this Agreement. j. No Affiliation. Nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture, or other affiliation between Seller and City, or between City and any other entity or party, or cause City to be responsible in any way for the debts or obligations of Seller or any other party or entity. k. Entire Agreement. This Agreement represents the entire agreement between the Parties for the purchase and sale of the Property, and supersedes all prior negotiations, representations or agreements, either oral or written. l. Severability. If any portion of this Agreement shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed Page 218 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda from this Agreement, and the remaining parts of this Agreement shall remain in full force and effect, as fully as though such invalid, illegal or unenforceable portion had never been part of this Agreement. m. Governing Law. This Agreement is executed and delivered in the State of California and shall be construed and enforced in accordance with, and governed by, the laws of the State of California. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 219 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda IN WITNESS WHEREOF, the duly authorized representative of each party has executed this Agreement. BUYER: City of Chula Vista SELLER: By: John McCann Luaiva G. Solomuli Mayor Elise Solomuli ATTEST BY: ________________________________ Kerry K. Bigelow, MMC City Clerk Approved as to Form: MARCO A. VERDUGO City Attorney Page 220 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda EXHIBIT"ff LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of San Diego, City of Chula Vista and described as follows: Parcel 1: The Northerly 50 feet of the Southerly 510 feet of the following described parcel of land: That pottion of the Westerly half of the Easterly half of 80 acre Lot 1 in quarter Section 125 of Rancho De La Nacion, in the City of Chula vista, County of San Diego, State of California, according to Map thereof No. 166 by Morill, filed in the Office of the County Recorder of San Diego County, described as follows: Beginning at the Southwesterly corner of said East half of said 80 acre Lot 1; thence along the Westerly line of said East half; North 1 8"41'40" West, 25 feet to the true point of beginning, thence parallel with the Southerly line of said Lot 1 , North 71"12' East 2'15.78 feet; thence North 18"48' West, 965.00 feet to the North line of the South 990.00 feet of said 80 acre Lot 1;thence along the Northerly line of said South 990.00 feet, South 71'12' West, 215.78 feet more or less, to the West line of said East half of 80 acre Lot 1; thence along the Westerly line of said Easterly half, South 18'41'40" East, 965.00 feet to the true point of beginning, excepting the Westerly 40 feet thereof. Parcel 2: An easement for right of way for ingress and egress, over, across and along a portion of Lot 22, El Ranchos Villas, according to Map thereof \lo. 23_7_Q and a portion of 80 acre Lot 1, in quarter Section 125, Rancho De La Nacion, according to Map thereof No. 166, made by Morrill, allbeing in the City of Chula Vista, County of San Diego, State of California, filed in the office of the County recorder of San Diego County, described as follows: Parcel A: A strip of land 12.00 feet wide lying 6.00 feet on either side of a center line described as follows: Beginning at the Southeast corner of Lot 26, El Rancho Villas, according to Map thereof No. 2376, recorded in the office of the recorder, San Diego County, being also a point in the Southerly line of the Westerly half of said 80 acre Lot 1, distantthereon South 71"03'00"West,91.98 feet, (South 71"12'00" West, 91 .96 feet record) from the Southeast corner of the Westerly half of said 80 acre Lot 1; thence North 18"43'42" West, 25.00 feet to the Northerly right of way of "d" street as established by document No. 56523, filed in the San Diego County recorder's office may 18, 1990: thence North 71'02'00" East, 10.00 feet along said Northerly right of way line to the true point of beginning; thence North 07'40'39" East, 266.84 feet along the center line of said 12.00 foot strip to an intersection with East boundary of the West 40.00 feet to the East half, 80 acre Lot 1, quarter Section 125, Rancho De La Nacion, the side lines of said 12.00 foot strip to be extended or shortened from points at right angles to the ends of the center linetointersecttheEastboundaryof theWesterly40.00feetof theEasthalf of saidS0acreLotl andthe Northerly boundary of the Southerly 28.00 feet of said 80 acre Lot 1, quarter Section 125, Rancho De La Nacion. Parcel B: The Norlherly 25.00 feet of the Southerly 215.00 feet of the Westerly 50.00 feet of the East half, 80 acre Lot 1, quarter Section '125, Rancho De La Nacion, in the City of Chula Vista, County of San Diego, State of California. Parcel 3: An easement for ingress, egress road and utility purposes over, under and across allthat pottion of the 80 File No.: 25000480534 Prelim Report COM 24 t 2-3-23 Page 4 of I Page 221 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda acre Lot '1 , in quafter Section 125 ol Rancho De La Nacion, according to Map thereof No. 166, made by Morrill, in the City of Chula Vista, County of San Diego, State of California, filed in the office of the County recorder of San Diego County, described as follows: Beginning at the Southeast corner of Lol22 of Map of El Rancho Villas, according to Map thereof No. 2376; thence along the Southerly line of said Lot 22 South 71"36'30" West, 20.47 feet; thence South 8' 49'55" West, 139.53 feet; thence South 19'37'27" East, 36.23 feet to the North line of d street; thence along said North line North 71'12'00" East, 24.00 feet; thence North 19"37'27" West, 30.49 feet; thence North 8'49'55" East, 131.68 feet to the Easterly line of the Westerly half of said Lot '1, quarter Section 125: thence along said Easterly line North 18"4'1'40" West, '12.55 feet to the point of beginning. Parcel4: An easement for ingress, egress road and utility purposes over, under and across all that portion of the Easterly half of 80 acre Lot 1 in quarter Section 125 of Rancho De La Nacion, in the City of Chula Vista, County of San Diego, State of California, according to Map thereof No. 166, recorded in the Office of the County recorder of San Diego County may 11, 1869, described as follows: Beginning at the Southeasterly corner of Lot 25 of El Rancho Villas, according to the Map thereof No. 2376, being also a point on the Southerly line of the West half of said 80 acre Lot 1, which is South 71'12' West 91.96 feet from the Southeasterly corner thereof; thence North 71'12' East along said Southerly line distant of 40.00 feet; thence Northerly along a line drawn parallel with and 40.00 feet Easterly at right angles from the following described courses in the Easterly boundary line of said El Rancho Villas, North 19'42' West; thence North 08'48'35" East to a point on the Easterly line of the Westerly 40.00 feet of the Easterly half of said 80 acre Lot 1; thence North 18"41'40" West along said Easterly line 26.50 feetto the true point of beginning; thence South 71'18'20" West 12.00 feet; thence South 18'41'40" East 49.55 feet to the Easterly line of the land deeded to the City of Chula Vista, recorded April 10, 1959 in Book 7598, Page 460 of Official Records; thence South 08"48'35" East along said Easterly line a distance of 60.63 feet to the Westerly line of the Easterly half of said 80 acre Lot 1; thence North 18"41'40" West along said Westerly line 51.97 feet; thence North 08'48'35" West 8.66 feet to a point which is 4.00 feet Easterly measured at right angles to the Westerly line of said Easterly half of 80 acre Lot 1; thence North 18' 41'40" West parallel with said Westerly line a distance of 43.67 feet; thence North 05'1'1'55" West 51 .42 feet to a point which is 16.00 feet Easterly measured at right angles to said Westerly line; thence North 18"41'40" West parallel with said Westerly line a distance of 261.30 feet to a point which is 570 Northerly of the Southerly line of said 80 acre Lot 1 ; thence North 71"12' East 24.00 feet to the Easterly line of the Westerly 40.00 feet of the Easterly half of said 80 acre Lot 1 ; thence South 18'41'40" East 311 .35 feet to the true point of beginning. For lnformational Purposes Only APN: 566-'1 31-06-00 (End of Legal Description) THE MAP AfiACHED THROUGH THE HYPERLINK ABOVE IS BEING PROVIDED AS A COURTESY AND FOR INFORMATION PURPOSES ONLY; THIS MAP SHOULD NoT BE RELIED UPON. FURTHERMORE, THE PARCELS SET OUT ON THIS MAP MAY NOT COMPLY WITH LOCAL SUBDIVISION OR BUILDING ORDINANCES. THERE WILL BE NO LIABILITY, RESPONSIBILITY OR INDEMNIFICATION RELATED TO ANY MATTERS CONCERNING THE CONTENTS OR ACCURACY OF THE MAP. File No.: 25000480534 Prelim Report COM 24 r 2-3-23 Page 5 of I Page 222 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Recording requested by and please return to: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910  (This space for Recorder's use, only)  Assessor’s Parcel Number 566-131-06-00 Grant Deed FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Luaiva G. Solomuli Jr., and Elise Solomuli, Husband And Wife, do hereby grant to the City of Chula Vista, a California charter city, organized under the laws of the State of California, ALL THAT REAL PROPERTY, in fee title together with all improvements, rights and appurtenances thereto, and subject to all encumbrances of record, located in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: See Legal Description designated as Exhibit “A” attached hereto and by reference made a part hereof. This deed is subject to all existing easements and assessments of record. Signed this day of , 2025 Grantor (Notary Acknowledgment required for each signatory.) Page 223 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Acceptance Certificate This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. ________________, City Clerk By: Date: Page 224 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 5 P a g e | 1 September 23, 2025 ITEM TITLE Purchase Agreement: Waive the Competitive Bidding Process and Approve a First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. to Purchase AI Era Leaders Program and Appropriate Funds Report Number: 25-0248 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. Recommended Action Adopt resolutions: A) Waiving the competitive bidding process and approving the First Amendment to the Master Services and Purchasing Agreement from Axon Enterprise Inc. to purchase AI Era Leaders Program; and B) Appropriating funds for this purpose. (4/5 Vote Required) SUMMARY The Police Department is interested in exploring the benefits of the AI Era Leaders Program which contains the Draft One AI-Assisted Report Writing software that is now available from Axon Enterprise, Inc. This new technology will enhance operational efficiency, streamline evidence processing, and improve administrative workflows. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Page 225 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Police Department staff presented an informational item about the AI Era Leaders Program and Draft One AI-Assisted Report Writing Software to the Privacy Protection and Technology Advisory Commission during a special meeting held on July 7, 2025. DISCUSSION On December 5, 2023, City Council approved the Master Services and Purchasing Agreement with Axon Enterprises, Inc. (Axon), for purchases of Body Worn Cameras, Taser Electronic Control Weapons and In-Car Cameras, and related services as a result of Request for Proposal (RFP) # P03-2023. Since then, Axon has successfully launched several solutions that responsibly utilize artificial intelligence (AI) algorithms and learning models to enhance public safety such as its AI Era Plan, a bundled offer that consolidates current and future AI-powered tools. This plan is designed to enhance operational efficiency, streamline evidence processing, and improve administrative workflows. It includes access to all existing AI features as well as future capabilities as they are released. Given the proprietary integration of Axon’s AI Era technology with the City’s existing Axon systems, it is impractical to solicit competitive bids for this add-on service. Based on this, staff recommends waiving the competitive bidding process in accordance with CVMC 2.56.070(B)(3). Axon AI Era Plan The Axon AI Era Plan is a bundled offering that brings together Axon’s current and future AI-powered tools under a single agreement. Designed to help support operational efficiency, evidence processing, and administrative workflows, the plan includes all of the AI features available today—along with access to upcoming capabilities as they are released. Each solution in the plan is developed to integrate into existing public safety workflows, helping agencies manage audiovisual evidence, streamline documentation, and support informed decision-making while helping better manage administrative tasks and community interactions. Tools included in the AI Era Plan are designed to help:  Automate transcription, create first-draft reports, and summarize audio from video evidence.  Support multilingual operations and real-time communication.  Accelerate workflows by combining image collection and data extraction, streamlining image review, video analysis, and form population.  Provide policy guidance through secure, AI-powered search. Year One In year one, staff is recommending the purchase of the AI Era Leader Program, this will start with two components of the full program, which are the Axon Draft One and Axon Auto Transcribe, together these solutions can reduce officers time spent reviewing video evidence and report writing. Officers can spend up to 3 hours per shift on report writing, but AI can help them drastically reduce that time by analyzing the body-worn camera (BWC) audio and summarizing the events in a report. Axon’s Draft One software enables officers to get a head start on report writing by using artificial intelligence (AI) to draft a report narrative Page 226 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 3 using the officer’s BWC audio. With Draft One, the BWC audio is uploaded to the Axon Evidence cloud and auto transcribed. No action is needed by the user to prep the audio file or convert evidence and five minutes after incident recording has stopped, officers can use the auto-transcription to generate a draft report. Built with specific safeguards, this AI-enabled technology has fail-safes and controls so that it does not replace human decision-making in critical moments. For checks and balances and consistency with current AI policies, it is necessary that the officer review and edit the report draft before submittal. After Year One In year two through four, it is anticipated that all components of the full AI Era Plan, will be available to the Police Department. This will provide access to a seamlessly integrated ecosystem of connected AI solutions. Designed to work together, these solutions help better support operations, streamline collaboration, and improve data management—while reinforcing safety and security across the organization. By bundling these solutions into a single, cost-effective package, the Police Department will have the essential tools to increase transparency, streamline workflows, and drive productivity—all while fostering a safer, more connected environment. Staff is recommending approval of the first amendment to the Axon Master Services and Purchasing Agreement to purchase AI Era Leaders Program, starting with Draft One AI-Assisted Report Writing and Auto Transcribe Software and related services under the current Axon Master Services and Purchasing Agreement, which is set to expire January 31, 2029. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware of 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 these resolutions will (1) waive the competitive bidding process and approve the First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. to purchase AI Era Leaders Program, Draft One AI-Assisted Report Writing Software and related services and (2) appropriate available funds balance to the Supplies and Services category of the Police Grants Section of the Local Grants Fund. The portion of this agreement attributable to the Measure A fund is included in the fiscal year 2025 - 26 Measure A fund budget. This purchase covers a 40-month term, from October 1, 2025 to January 31, 2029. The table below outlines the costs for the current fiscal year (October 2025 to June 2026): DESCRIPTION Local Grants Fund Measure A Fund TOTAL Page 227 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 4 Axon Draft One Report Writing Software $98,280 $18,720 $117,000 Axon Auto-Transcribe (Unlimited Service) $60,803 $11,581 $72,384 TOTAL FY 2025-26 COST $159,083 $30,301 $189,384 ONGOING FISCAL IMPACT The table below outlines costs during the remainder of the agreement term, from July 1, 2026 to January 31, 2029. DESCRIPTION FY 2026-27 FY 2027-28 FY 2028-29 TOTAL $803,880 $0 $0 TOTAL $267,960 $267,960 $267,960 $803,880 The first two years of the agreement amendment will be funded by available fund balance in the Police Section of the Local Grants Fund and the Measure A fund. The Police Department will work with the Finance Department to allocate the necessary funds to cover costs during the term of the agreement. Based on anticipated funding in the Police Section of the Local Grants Fund, the percentage of ongoing costs currently funded with Police Section of the Local grants Fund which is approximately $160,000, may need to be funded by the General Fund after Year 2. However, should funds become available in the Police Section of the Local grants Fund, those funds will continue to fund the remainder of the agreement costs. The contract cost over the term of the agreement includes a significant discount of approximately $1.3 million. After the expiration of the contract, the potential increase in cost of continuing the use of the software will need to be evaluated as part of future budget discussions. The appropriate the split between Police Section of the Local grants Fund and Measure A funds will also be evaluated and included in future years as budget development process. ATTACHMENTS 1. Axon Master Services and Purchasing Agreement for Agency 2. First Amendment to the Master Services and Purchasing Agreement Staff Contact: Maria Kachadoorian, City Manager Dan Peak, Assistant Chief of Police Page 228 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE BIDDING PROCESS AND APPROVING THE FIRST AMENDMENT TO THE MASTER SERVICES AND PURCHASING AGREEMENT WITH AXON ENTERPRISE, INC. TO PURCHASE AI ERA LEADERS PROGRAM WHEREAS, on December 5, 2023, City Council approved a Master Services and Purchasing Agreement for purchases of Body Worn Cameras, Taser Electronic Control Weapons and In-Car Cameras, and related services, from Axon Enterprise, Inc., as a result of Request for Proposal (RFP) # P03-2023; and WHEREAS, since then, Axon has launched several solutions that responsibly utilize artificial intelligence (AI) algorithms and learning models to enhance public safety; and WHEREAS, to streamline workflows and increase productivity in the Police Department, the City desires to purchase AI Era Leaders Program, Draft One AI-Assisted Report Writing Software and related services under the current Axon Master Services and Purchasing Agreement; and WHEREAS, given the proprietary integration of Axon’s AI Era technology with the City’s existing Axon systems, it is impractical to solicit competitive bids for this add-on service. Based on this, staff recommends waiving the competitive bidding process in accordance with CVMC 2.56.070(B)(3); and WHEREAS, the First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. will cover a 40-month term of October 1, 2025 to January 31, 2029, which aligns with the duration of the existing Axon agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, waives the competitive bidding process and approves the First Amendment to the Master Services and Purchasing Agreement to purchase Axon AI Era Leaders Program in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute same. Presented by Approved as to Form by Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney Page 229 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING FUNDS TO THE SUPPLIES AND SERVICES CATEGORY IN THE POLICE GRANTS SECTION OF THE LOCAL GRANTS FUND FOR THE AXON AI ERA LEADERS PROGRAM WHEREAS, on December 5, 2023, City Council approved a Master Services and Purchasing Agreement for purchases of Body Worn Cameras, Taser Electronic Control Weapons and In-Car Cameras, and related services, from Axon Enterprise, Inc., as a result of Request for Proposal (RFP) # P03-2023; and WHEREAS, since then, Axon has launched several solutions that responsibly utilize artificial intelligence (AI) algorithms and learning models to enhance public safety; and WHEREAS, to streamline workflows and increase productivity in the Police Department, the City desires to purchase AI Era Leaders Program, Draft One AI-Assisted Report Writing Software and Auto-Transcribe software under the current Axon Master Services and Purchasing Agreement; and WHEREAS, the First Amendment to the Master Services and Purchasing Agreement with Axon Enterprise, Inc. will cover a 40-month term of October 1, 2025 to January 31, 2029, which aligns with the duration of the existing Axon agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it amends the Fiscal Year 2025-26 budget by appropriating $159,083 to the Supplies and Services category of the Police Grants section of the Local Grants Fund. Presented by Approved as to Form by Maria V. Kachadoorian Marco A. Verdugo City Manager City Attorney Page 230 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 1 of 21 This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the agency listed below or, if no agency is listed below, the agency on the Quote attached hereto ("Agency"). This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) signature date on the Quote ("Effective Date"). Axon and Agency are each a "Party" and collectively "Parties". This Agreement governs Agency’s purchase and use of the Axon Devices and Services detailed in the Quote Appendix ("Quote"). It is the intent of the Parties that this Agreement will govern all subsequent purchases by Agency for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted and signed by Agency shall be also incorporated into this Agreement by reference as a Quote. The Parties agree as follows: 1.Definitions. 1.1. "Axon Cloud Services" means Axon’s web services for Axon Evidence, Axon Records, Axon Dispatch, and interactions between Axon Evidence and Axon Devices or Axon client software. Axon Cloud Service excludes third-party applications, hardware warranties, and my.evidence.com. 1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices are a subset of Axon Devices. 1.3. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices. Any inconsistent or supplemental terms within Agency’s purchase order in response to a Quote will be void. Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. 1.4. "Services" means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services. 2.Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated ("Term"). 2.1. All subscriptions including Axon Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 or TASER 10 plans begin on the date stated in the Quote. Each subscription term ends upon completion of the subscription stated in the Quote ("Subscription Term"). 2.2. Upon completion of the Subscription Term, the Subscription Term will automatically renew for an additional one year ("Renewal Term"), unless a notice of non-renewal is provided in writing thirty (30) days prior to the expiration of the Subscription Term.. For purchase of TASER 7 or TASER 10 as a standalone, Axon may increase pricing to its then-current list pricing for any Renewal Term. For all other purchases, Axon may increase pricing on all line items in the Quote by up to 3% at the beginning of each year of the Renewal Term. New devices and services may require additional terms. Axon will not authorize services until Axon receives a signed Quote or accepts a purchase order, whichever is first. 3.Payment. Axon invoices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Payment obligations are non-cancelable, except as otherwise provided in this Agreement. Agency will pay all undisputed invoices without setoff, deduction, or withholding. 4.Taxes. Agency is responsible for sales and other taxes associated with the order unless Agency provides Axon a valid tax exemption certificate. 5.Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are FOB Destination via common carrier. Title and risk of loss pass to Agency upon Axon’s delivery to the Agency. Agency is responsible for any shipping charges in the Quote. 6.Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law. 7.Warranty. 7.1. Limited Warranty. Axon warrants that Axon-manufactured Devices are free from defects in workmanship and materials for one (1) year from the date of Agency’s receipt, except Signal Sidearm and Axon -manufactured accessories, which Axon warrants for thirty (30) months and ninety (90) days, respectively, from the date of Agency’s receipt. Used conducted energy weapon ("CEW") cartridges are deemed to have operated properly. Extended warranties run from the expiration of the one- (1-) year hardware warranty through the extended warranty term. 7.2. Disclaimer. All software and Axon Cloud Services are provided "AS IS," without any warranty of any kind, either express or implied, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement. Axon Devices and Services that are not ACN2023-305 DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 R2023-197 Page 231 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 2 of 21 manufactured, published or performed by Axon ("Third-Party Products") are not covered by Axon’s warranty and are only subject to the warranties of the third-party provider or manufacturer. In the event that Axon has provided Third Party Products to Agency, Axon will provide copies of the relevant warranties provided by such third-party provider or manufacturer. 7.3. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon -manufactured Device with the same or like Axon- manufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new. Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement. 7.3.1. If Agency exchanges an Axon Device or part, the replacement item becomes Agency’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Agency must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service. 7.4. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Agency a predetermined number of spare Axon Devices as detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace broken or non-functioning units while Agency submits the broken or non-functioning units, through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Axon Device. Title and risk of loss for all Spare Axon Devices shall pass to Agency in accordance with shipping terms under Section 5. Axon assumes no liability or obligation in the event Agency does not utilize Spare Axon Devices for the intended purpose. 7.5. Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Axon Device use instructions , except where authorized by Axon; (b) Axon Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentional damage to Axon Device; (d) force majeure; (e) Axon Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Axon Devices with a defaced or removed serial number. Axon’s warranty will be void if Agency resells Axon Devices. 7.5.1. To the extent permitted by law, the above warranties and remedies are exclusive. Axon disclaims all other warranties, remedies, and conditions, whether oral, written, statutory, or implied. If statutory or implied warranties cannot be lawfully disclaimed, then such warranties are limited to the duration of the warranty described above and by the provisions in this Agreement. Agency confirms and agrees that, in deciding whether to sign this Agreement, it has not relied on any statement or representation by Axon or anyone acting on behalf of Axon related to the subject matter of this Agreement that is not in this Agreement. 7.5.2. Neither party’s cumulative liability to any party for any loss or damage resulting from any claim, demand, or action arising out of or relating to any Axon Device or Service will not exceed $1 million except for (i) the amounts payable pursuant to any valid insurance claim covered by a party’s insurance; (ii) Axon’s indemnification obligations set forth in Section 14 of this Agreement; (iii) claims arising out of a breach by Axon of its obligations under Section 13 and 17 of this Agreement; (iv) Axon’s breach of the Cloud Services Terms of Use Appendix; or (v) a party’s fraud which shall not exceed $3 million. Neither Party will be liable for direct, special, indirect, incidental, punitive or consequential damages, however caused, whether for breach of warranty or contract, negligence, strict liability, tort or any other legal theory. The foregoing limitation of liability excludes: (i)_ claims arising out of a party’s willful misconduct; and (ii) Axon’s intellectual property indemnification obligations as set forth in Section 14 of this Agreement; (ii) 7.6. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) is governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/sales- terms-and-conditions. 7.7. Third-Party Software and Services. Use of software or services other than those provided by Axon is governed by the terms, if any, entered into between Agency and the respective third-party provider, including, without limitation, the terms applicable to such software or services located at www.axon.com/sales-terms- and-conditions, if any. 7.8. Axon Aid. Upon mutual agreement between Axon and Agency, Axon may provide certain products and services to Agency, as a charitable donation under the Axon Aid program. In such event, Agency expressly waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors, DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 232 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 3 of 21 employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of any Releasees or otherwise. Agency agrees not to make or bring any such claim against any Releasee, and forever release and discharge all Releasees from liability under such claims. Agency expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Agency. 8. Statement of Work. Certain Axon Devices and Services, including Axon Interview Room, Axon Channel Services, and Axon Fleet, may require a Statement of Work that details Axon’s Service deliverables ("SOW"). In the event Axon provides an SOW to Agency, Axon is only responsible for the performance of Services described in the SOW. Additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. The SOW is incorporated into this Agreement by reference. 9. Axon Device Warnings. See www.axon.com/legal for the most current Axon Device warnings. 10. Design Changes. Axon may make design changes to any Axon Device or Service without notifying Agency or making the same change to Axon Devices and Services previously purchased by Agency. 11. Bundled Offerings. Some offerings in bundled offerings may not be generally available at the time of Agency’s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to a delay of availability or Agency’s election not to utilize any portion of an Axon bundle. 12. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance and any other insurance required in Exhibit A. Upon request, Axon will supply certificates of insurance. 13. IP Rights. Axon owns and reserves all right, title, and interest in Axon-manufactured Devices and Services and suggestions to Axon, including all related intellectual property rights. Agency will not violate any Axon proprietary rights. 14. Indemnification. Axon will defend, hold harmless and indemnify Agency against all claims, losses, and reasonable expenses from any third-party claim arising out of: (i) allegation that the use of Axon-manufactured Devices or Services infringes or misappropriates the third-party’s intellectual property rights; (ii) Axon’s breach of this Agreement or violation of applicable laws in the performance of this Agreement; or (iii) personal injury or property damage caused by the negligent acts, errors or omissions, or willful misconduct Axon’s employees, agents or subcontractors in the performance of this Agreement. Agency must promptly provide Axon with written notice of such claim, tender to Axon the defense or settlement of such claim at Axon’s expense and reasonably cooperate with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not apply to claims based on (a) modification of Axon-manufactured Devices or Services by Agency or a third-party not approved by Axon; (b) use of Axon- manufactured Devices and Services in combination with hardware or services not approved by Axon; (c) use of Axon Devices and Services other than as permitted in this Agreement; or (d) use of Axon software that is not the most current release provided by Axon. In the event that an Axon Device or Service is determined to be infringing, then Axon will (i) obtain a license for Agency to continue use of the Axon Device or Service; (ii) provide Agency with a substantially similar device or service that is non-infringing; or (iii) refund to Agency the price paid for the infringing Axon Device and any Service fee for the remainder of the Subscription Term or any Renewal Term. 15. Agency Responsibilities. Agency is responsible for (a) Agency’s use of Axon Devices; (b) breach of this Agreement or violation of applicable law by Agency or an Agency end user; (c) disputes between Agency and a third-party over Agency’s use of Axon Devices unless due to Axon’s negligent acts and omissions or unless as otherwise provided in this Agreement; ; (d) ensuring Axon Devices are destroyed and disposed of securely and sustainably at Agency’s cost; and (e) any regulatory violations or fines, as a result of improper destruction or disposal of Axon Devices. 16. Termination. 16.1. For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of the breach to the other Party, and the breach remains uncured at the end of thirty (30) days. If Agency terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination. 16.2. By Agency. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Agency may terminate this Agreement without further liability to Axon. Agency will deliver notice of termination under this section as soon as reasonably practicable. 16.3. Effect of Termination. Upon termination of this Agreement, Agency rights immediately terminate. Agency remains responsible for all fees incurred before the effective date of termination. If Agency purchases DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 233 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 4 of 21 Axon Devices for less than the manufacturer’s suggested retail price ("MSRP") and this Agreement is terminated by Axon before the end of the Term due to Agency’s breach of the Agreement, Axon will invoice Agency the difference between the MSRP for Axon Devices received, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if terminating for non-appropriation, Agency may return Axon Devices to Axon within thirty (30) days of termination. MSRP is the standalone price of the individual Axon Device at the time of sale. For bundled Axon Devices, MSRP is the standalone price of all individual components. 16.4. Return of Data. Upon expiration or termination of this Agreement for any reason, Axon will provide Agency will access to the Axon Cloud Services for a period of ninety (90) days for the purpose of downloading all Agency Content and Agency Content Metadata. 17. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential, including but not limited to Agency Content. Each Party will take shall not disclose, disseminate, or use of the other Party’s Confidential Information without express written consent of the other Party. Unless required by law, including but not limited to California Public Records Act, neither Party will disclose the other Party’s Confidential Information during the Term and for five (5) years thereafter or perpetually with respect to Agency Content and Agency Content Metadata. If Agency receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Agency will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement upon written approval of Agency. Axon shall not sell any Confidential Information to third parties, nor shall it use or disclose Confidential Information for any purposes other than to perform its obligations under this Agreement. Agency Content and Agency Content Metadata shall be treated as Confidential Information of Agency. 18. General. 18.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party’s reasonable control. 18.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, agency, fiduciary, or employment relationship between the Parties. 18.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement. 18.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law. 18.5. Export Compliance. Each Party will comply with all import and export control laws and regulations. 18.6. Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent, which approval shall not be unreasonably withheld. . 18.7. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitute s a waiver of that right. 18.8. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect. 18.9. Survival. The following sections will survive termination: Payment, Warranty, Axon Device Warnings, Indemnification, IP Rights, and Agency Responsibilities. 18.10. Governing Law. The laws of the country, state, province, or municipality where Agency is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement. 18.11. Pricing. Axon will honor the prices on the Quote for two (2) years from the Effective Date for additional purchases of up to 10% of the quantities listed on the Quote. 18.12. Notices. All notices must be in writing and in English. Notices posted on Agency’s Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email provided such email notice is confirmed by return email of the other party. Notice of default must also be given via overnight courier and email. Notices by personal delivery are effective immediately. Notice by overnight courier are effective upon DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 234 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 0297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 5 of 21 receipt. Notices to Agency shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc., Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to legal@axon.com. 18.12 Entire Agreement. This Agreement, including the Appendices and any SOW(s), represents the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties. Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature. AXON: AGENCY: Axon Enterprise, Inc. City of Chula Vista Signature: Signature: Name: Robert E. Driscoll, Jr. Name: John McCann Title: VP, Assoc. General Counsel Title: Mayor Date: Date: Approved as to Form By: ________________________________ Jill D.S. Maland Lounsbery Ferguson Altona & Peak Acting City Attorney ATTEST: Kerry K. Bigelow, MMC City Clerk DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 12/7/2023 For 12/7/2023 Page 235 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 6 of 21 Axon Cloud Services Terms of Use Appendix 1. Definitions. a. "Agency Content" is data uploaded into, ingested by, or created in Axon Cloud Services within Agency’s tenant, including media or multimedia uploaded into Axon Cloud Services by Agency. Agency Content includes Evidence and personally identifiable information, , but excludes Non-Content Data. 2. “Agency Content Metadata” is data that is collected by Axon Cloud Services in connection with the upload, download, management and use of Agency Content and Evidence and includes time and data stamps of access to Agency Content and Evidence by user. a. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by an Agency. Evidence is a subset of Agency Content. b. "Non-Content Data" is data, configuration, and usage information about Agency’s Axon Cloud Services tenant, Axon Devices and client software, and users that is transmitted or generated when using Axon Devices. Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Agency Content and does not include Personal Data, but may include Agency Content Metadata c. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. 3. Access. Upon Axon granting Agency a subscription to Axon Cloud Services, Agency may access and use Axon Cloud Services to store and manage and download Agency Content and Agency Content Metadata. Agency may not exceed more end users than the Quote specifies. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence Lite, Agency may access and use Axon Evidence only to store and manage TASER CEW and TASER CAM data ("TASER Data"). Agency may not upload non-TASER Data to Axon Evidence Lite. 4. Agency Owns Agency Content; Right to Use Agency Content Metadata. Agency controls and owns all right, title, and interest in Agency Content. Except as outlined herein, Axon obtains no interest in Agency Content, and Agency Content is not Axon’s business records. Agency is solely responsible for uploading, sharing, managing, and deleting Agency Content. Axon will only have access to Agency Content for the limited purposes set forth herein. Agency agrees to allow Axon access to Agency Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of the Axon products. Agency further has the right to access, use and download Agency Content Metadata. 5. Security. Axon will implement commercially reasonable and appropriate measures to secure Agency Content against accidental or unlawful loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Agency Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data protection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum. 6. Agency Responsibilities. Agency is responsible for (a) ensuring Agency owns Agency Content; (b) ensuring no Agency Content or Agency end user’s use of Agency Content or Axon Cloud Services violates this Agreement or applicable laws; and (c) maintaining necessary computer equipment and Internet connections for use of Axon Cloud Services. If Agency becomes aware of any violation of this Agreement by an end user, Agency will immediately terminate that end user’s access to Axon Cloud Services. a. Agency will also maintain the security of end usernames and passwords and security and access by end users to Agency Content. Agency is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Agency regulation and standards. Agency may not sell, transfer, or sublicense access to any other entity or person. Agency shall contact Axon immediately if it is aware that an unauthorized party may be using Agency’s account or Agency Content, or if account information is lost or stolen. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 236 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 7 of 21 b. To the extent Agency uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at https://www.youtube.com/static?template=terms. 7. Privacy. Agency’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Agency agrees to allow Axon access to Non-Content Data from Agency to (a) perform troubleshooting, maintenance, or diagnostic screenings; (b) provide, develop, improve, and support current and future Axon products and related services; and (c) enforce thi s Agreement or policies governing the use of Axon products. Axon will not disclose Agency Content, Agency Content Metadata or information about Agency except as compelled by a court or administrative body or required by law or regulation. If Axon receives a disclosure request for Agency Content, Axon will give Agency notice, unless legally prohibited from doing so, to allow Agency to file an objection with the court or administrative body. 8. Axon Body 3 Wi-Fi Positioning. Axon Body 3 cameras offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Agency administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Agency chooses to use this service, Axon must also enable the usage of the feature for Agency’s Axon Cloud Services tenant. Agency will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Agency’s Axon Cloud Services tenant. When Wi-Fi Positioning is enabled by both Axon and Agency, Non-Content and Personal Data will be sent to Skyhook Holdings, Inc. ("Skyhook") to facilitate the Wi-Fi Positioning functionality. Data controlled by Skyhook is outside the scope of the Axon Cloud Services Privacy Policy and is subject to the Skyhook Services Privacy Policy. 9. Storage. For Axon Unlimited Device Storage subscriptions, Agency may store unlimited data in Agency's Axon Evidence account only if data originates from Axon Capture or the applicable Axon Device. Axon may charge Agency additional fees for exceeding purchased storage amounts. Axon may place Agency Content that Agency has not viewed or accessed for six (6) months into archival storage. Agency Content in archival storage will not have immediate availability and may take up to twenty-four (24) hours to access. For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon’s Evidence.com user license; (ii) is limited to data of the law enforcement agency that purchased the Third-Party Unlimited Storage and the Axon’s Evidence.com end user or Agency is prohibited from storing data for other law enforcement agencies; and (iii) Agency may only upload and store data that is directly related to: 1) the investigation of, or the prosecution of a crime; (2) common law enforcement activities; or (3) any Age ncy Content created by Axon Devices or Evidence.com. 10. Location of Storage. Axon may transfer Agency Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Agency Content, provided they are in the United States. Any storage of Agency Content outside of the United States shall be subject to Agency’s written consent . For United States agencies, Axon will ensure all Agency Content stored in Axon Cloud Services remains within the United States . Ownership of Agency Content remains with Agency. All Agency Content will be encrypted during transfer and at rest. Any subcontractors that have access to Agency Content under this Agreement, shall have confidentiality obligations substantially similar to the confidentiality obligations in this Agreement, and shall not access or use Agency Content for any purpose other than to perform Axon’s obligations under this Agreement. 11. Suspension. Axon may temporarily suspend Agency’s or any end user’s right to access or use any portion or all of Axon Cloud Services immediately upon notice, if Agency or end user’s use of or registration for Axon Cloud Services may (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely and irreparably impact Axon Cloud Services, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Axon acknowledges that suspension could cause disruption to Agency’s law enforcement activities and unless immediate action is necessary to protect the security of Axon Cloud Services, Axon will make reasonable efforts to contact Agency to resolve an issue prior to suspension. 12. Agency remains responsible for all fees incurred through suspension. Axon will not delete Agency Content because of suspension, except as specified in this Agreement. 13. Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Agency uploads data to Axon Cloud Services. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 237 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 8 of 21 14. Axon Records. Axon Records is the software-as-a-service product that is generally available at the time Agency purchases an OSP 7 or OSP 10 bundle. During Agency’s Axon Records Subscription Term, if any, Agency will be entitled to receive Axon’s Update and Upgrade releases on an if-and-when available basis. a. The Axon Records Subscription Term will end upon the completion of the Axon Records Subscription as documented in the Quote, or if purchased as part of an OSP 7 or OSP 10 bundle, upon completion of the OSP 7 or OSP 10 Term ("Axon Records Subscription") b. An "Update" is a generally available release of Axon Records that Axon makes available from time to time. An "Upgrade" includes (i) new versions of Axon Records that enhance features and functionality, as solely determined by Axon; and/or (ii) new versions of Axon Records that provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications. c. New or additional Axon products and applications, as well as any Axon professional services needed to configure Axon Records, are not included. If Agency purchases Axon Records as part of a bundled offering, the Axon Record subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Records to Agency. Users of Axon Records at the Agency may upload files to entities (incidents, reports, cases, etc) in Axon Records with no limit to the number of files and amount of storage. Notwithstanding the foregoing, Axon may limit usage should the Agency exceed an average rate of one-hundred (100) GB per user per year of uploaded files. Axon will not bill for overages. 15. Axon Cloud Services Restrictions. Agency and Agency end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to: a. copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services; b. reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same; c. access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas; d. use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement; e. access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services; f. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or g. use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; material in violation of third-party privacy rights; or malicious code. 16. After Termination. Axon will not delete Agency Content and Agency Content Metadata for ninety (90) days following termination. There will be no functionality of Axon Cloud Services during these ninety (90) days other than the ability to retrieve Agency Content and Agency Content Metadata. Agency will not incur additional fees if Agency downloads Agency Content and Agency Content Metadata from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Agency Content after these ninety (90) days and will thereafter, unless legally prohibited, delete all Agency Content and Agency Content Metadata. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Agency Content from Axon Cloud Services. 17. Post-Termination Assistance. Axon will provide Agency with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Agency Content and Agency Content Metadata, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system. 18. U.S. Government Rights. If Agency is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a "commercial item," "commercial computer software," commercial computer software documentation," and "technical data", as defined in the Federal Acquisition DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 238 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 9 of 21 Regulation and Defense Federal Acquisition Regulation Supplement. If Agency is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Agency will immediately discontinue use of Axon Cloud Services. 19. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Agency Owns Agency Content, Privacy, Storage, Axon Cloud Services Warranty, and Axon Cloud Services Restrictions. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 239 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 10 of 21 Professional Services Appendix If any of the Professional Services specified below are included on the Quote, this Appendix applies. 1. Utilization of Services. Agency must use professional services as outlined in the Quote and this Appendix within six 6) months of the Effective Date. 2. Axon Full Service (Axon Full Service). Axon Full Service includes advance remote project planning and configuration support and up to four (4) consecutive days of on-site service and a professional services manager to work with Agency to assess Agency’s deployment and determine which on-site services are appropriate. If Agency requires more than four (4) consecutive on-site days, Agency must purchase additional days. Axon Full Service options include: System set up and configuration Instructor-led setup of Axon View on smartphones (if applicable) Configure categories and custom roles based on Agency need Register cameras to Agency domain Troubleshoot IT issues with Axon Evidence and Axon Dock ("Dock") access One on-site session included Dock configuration Work with Agency to decide the ideal location of Docks and set configurations on Dock Authenticate Dock with Axon Evidence using admin credentials from Agency On-site assistance, not to include physical mounting of docks Best practice implementation planning session Provide considerations for the establishment of video policy and system operations best practices based on Axon’s observations with other agencies Discuss the importance of entering metadata in the field for organization purposes and other best practices for digital data management Provide referrals of other agencies using the Axon camera devices and Axon Evidence Recommend rollout plan based on review of shift schedules System Admin and troubleshooting training sessions Step-by-step explanation and assistance for Agency’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence Axon instructor training (Train the Trainer) Training for Agency’s in-house instructors who can support Agency’s Axon camera and Axon Evidence training needs after Axon has fulfilled its contractual on-site obligations Evidence sharing training Tailored workflow instruction for Investigative Units on sharing Cases and Evidence with local prosecuting agencies End user go-live training and support sessions Assistance with device set up and configuration Training on device use, Axon Evidence, and Evidence Sync Implementation document packet Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide Post go-live review 3. Body-Worn Camera Starter Service (Axon Starter). Axon Starter includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Agency to assess Agency’s deployment and determine which Services are appropriate. If Agency requires more than one (1) day of on-site Services, Agency must purchase additional on-site Services. The Axon Starter options include: System set up and configuration (Remote Support) Instructor-led setup of Axon View on smartphones (if applicable) Configure categories & custom roles based on Agency need Troubleshoot IT issues with Axon Evidence and Dock access DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 https://my.axon.com/s/ resources?language=en_US Page 240 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 11 of 21 Dock configuration Work with Agency to decide the ideal location of Dock setup and set configurations on Dock Authenticate Dock with Axon Evidence using "Administrator" credentials from Agency Does not include physical mounting of docks Axon instructor training (Train the Trainer) Training for Agency’s in-house instructors who can support Agency’s Axon camera and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations End user go-live training and support sessions Assistance with device set up and configuration Training on device use, Axon Evidence, and Evidence Sync Implementation document packet Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide 4. Body-Worn Camera Virtual 1-Day Service (Axon Virtual). Axon Virtual includes all items in the BWC Starter Service Package, except one (1) day of on-site services. 5. CEW Services Packages. CEW Services Packages are detailed below: System set up and configuration Configure Axon Evidence categories & custom roles based on Agency need. Troubleshoot IT issues with Axon Evidence. Register users and assign roles in Axon Evidence. For the CEW Full Service Package: On-site assistance included For the CEW Starter Package: Virtual assistance included Dedicated Project Manager Assignment of specific Axon representative for all aspects of planning the rollout (Project Manager). Ideally, Project Manager will be assigned to Agency 4–6 weeks before rollout Best practice implementation planning session to include: Provide considerations for the establishment of CEW policy and system operations best practices based on Axon’s observations with other agencies Discuss the importance of entering metadata and best practices for digital data management Provide referrals to other agencies using TASER CEWs and Axon Evidence For the CEW Full Service Package: On-site assistance included For the CEW Starter Package: Virtual assistance included System Admin and troubleshooting training sessions On-site sessions providing a step-by-step explanation and assistance for Agency’s configuration of security, roles permissions, categories & retention, and other specific settings for Axon Evidence Axon Evidence Instructor training Provide training on the Axon Evidence to educate instructors who can support Agency’s subsequent Axon Evidence training needs. For the CEW Full Service Package: Training for up to 3 individuals at Agency For the CEW Starter Package: Training for up to 1 individual at Agency TASER CEW inspection and device assignment Axon’s on-site professional services team will perform functions check on all new TASER CEW Smart weapons and assign them to a user on Axon Evidence. Post go-live review For the CEW Full Service Package: On-site assistance included. For the CEW Starter Package: Virtual assistance included. 6. Smart Weapon Transition Service. The Smart Weapon Transition Service includes: Archival of CEW Firing Logs Axon’s on-site professional services team will upload CEW firing logs to Axon Evidence from all TASER CEW Smart Weapons that Agency is replacing with newer Smart Weapon models. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 https://my.axon.com/s/ resources?language=en_US Page 241 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 12 of 21 Return of Old Weapons Axon’s on-site professional service team will ship all old weapons back to Axon’s headquarters. Axon will provide Agency with a Certificate of Destruction Note: CEW Full Service packages for TASER 7 or TASER 10 include Smart Weapon Transition Service instead of 1-Day Device Specific Instructor Course. 7. VR Services Package. VR Service includes advance remote project planning and configuration support and one (1) day of on-site service and a professional services manager to work with Agency to assess Agency's deployment and determine which Services are appropriate. The VR Service training options include: System set up and configuration (Remote Support) Instructor-led setup of Axon VR headset content Configure agency settings based on Agency need Troubleshoot IT issues with Axon VR headset Axon instructor training (Train the Trainer) Training for up to five (5) Agency's in-house instructors who can support Agency's Axon VR CET and SIM training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions Step-by-step explanation and assistance for Agency's configuration of Axon VR CET and SIM functionality, basic operation, and best practices 8. Axon Air, On-Site Training. Axon Air, On-Site training includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Agency to assess Agency's deployment and determine which Services are appropriate. If Agency's requires more than one (1) day of on-site Services, Agency must purchase additional on-site Services. The Axon Air, On-Site training options include: System set up and configuration (Remote Support) Instructor-led setup of Axon Air App (ASDS) Configure agency settings based on Agency need Configure drone controller Troubleshoot IT issues with Axon Evidence Axon instructor training (Train the Trainer) Training for Agency's in-house instructors who can support Agency's Axon Air and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions Step-by-step explanation and assistance for Agency's configuration of Axon Respond+ livestreaming functionality, basic operation, and best practices 9. Axon Air, Virtual Training. Axon Air, Virtual training includes all items in the Axon Air, On-Site Training Package, except the practical training session, with the Axon Instructor training for up to four hours virtually. 10. Signal Sidearm Installation Service. a. Purchases of 50 SSA units or more: Axon will provide one (1) day of on-site service and one professional services manager and will provide train the trainer instruction, with direct assistance on the first of each unique holster/mounting type. Agency is responsible for providing a suitable work/training area. b. Purchases of less than 50 SSA units: Axon will provide a 1-hour virtual instruction session on the basics of installation and device calibration. 11. Out of Scope Services. Axon is only responsible to perform the professional services described in the Quote and this Appendix. Any additional professional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in the charges or schedule. 12. Delivery of Services. Axon personnel will work Monday through Friday, 8:30 a.m. to 5:30 p.m., except holidays. Axon will perform all on-site tasks over a consecutive timeframe. Axon will not charge Agency travel time by Axon personnel to Agency premises as work hours. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 242 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 13 of 21 13. Access Computer Systems to Perform Services. Agency authorizes Axon to access relevant Agency computers and networks, solely for performing the Services subject to compliance with reasonable Agency security protocols for remote access. Axon agrees that Axon, its employees and subcontractors will not install any malware, tracking software or disabling devices when accessing Agency’s computers and networks. . Axon will work to identify as soon as reasonably practicable resources and information Axon expects to use and will provide an initial itemized list to Agency. Agency is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Agency. 14. Site Preparation. Axon will provide a hardcopy or digital copy of current user documentation for the Axon Devices User Documentation"). User Documentation will include all required environmental specifications for the professional services and Axon Devices to operate per the Axon Device User Documentation. Before installation of Axon Devices (whether performed by Agency or Axon), Agency must prepare the location(s) where Axon Devices are to be installed ("Installation Site") per the environmental specifications in the Axon Device User Documentation. Following installation, Agency must maintain the Installation Site per the environmental specifications. If Axon modifies Axon Device User Documentation for any Axon Devices under this Agreement, Axon will provide the update to Agency when Axon generally releases it 15. Acceptance. When Axon completes professional services, Axon will present an acceptance form ("Acceptance Form") to Agency. Agency will sign the Acceptance Form acknowledging completion. If Agency reasonably believes Axon did not complete the professional services in substantial conformance with this Agreement, Agency must notify Axon in writing of the specific reasons for rejection within thirty (30) calendar days from delivery of the Acceptance Form. Axon will address the issues and re-present the Acceptance Form for signature. If Axon does not receive the signed Acceptance Form or written notification of reasons for rejection within seven (7) calendar days of delivery of the Acceptance Form, Axon will deem Agency to have accepted the professional services. 16. Agency Network. For work performed by Axon transiting or making use of Agency’s network, Agency is solely responsible for maintenance and functionality of the network. In no event will Axon be liable for loss, damage, or corruption of Agency’s network from any cause, unless to the extent caused by Axon’s acts or omissions. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 243 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 14 of 21 Technology Assurance Plan Appendix If Technology Assurance Plan ("TAP") or a bundle including TAP is on the Quote, this appendix applies. 1. TAP Warranty. The TAP warranty is an extended warranty that starts at the end of the one- (1-) year hardware limited warranty. 2. Officer Safety Plan. If Agency purchases an Officer Safety Plan ("OSP"), Agency will receive the deliverables detailed in the Quote. Agency must accept delivery of the TASER CEW and accessories as soon as available from Axon. 3. OSP 7 or OSP 10 Term. OSP 7 or OSP 10 begins on the date specified in the Quote ("OSP Term"). 4. TAP BWC Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon body-worn camera ("BWC Upgrade") as scheduled in the Quote. If Agency purchased TAP, Axon will provide a BWC Upgrade that is the same or like Axon Device, at Axon’s option. Axon makes no guarantee the BWC Upgrade will utilize the same accessories or Axon Dock. 5. TAP Dock Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon Dock as scheduled in the Quote ("Dock Upgrade"). Accessories associated with any Dock Upgrades are subject to change at Axon discretion. Dock Upgrades will only include a new Axon Dock bay configuration unless a new Axon Dock core is required for BWC compatibility. If Agency originally purchased a single-bay Axon Dock, the Dock Upgrade will be a single-bay Axon Dock model that is the same or like Axon Device, at Axon’s option. If Agency originally purchased a multi-bay Axon Dock, the Dock Upgrade will be a multi-bay Axon Dock that is the same or like Axon Device, at Axon’s option. 6. Upgrade Delay. Axon may ship the BWC and Dock Upgrades as scheduled in the Quote without prior confirmation from Agency unless the Parties agree in writing otherwise at least ninety (90) days in advance. Axon may ship the final BWC and Dock Upgrade as scheduled in the Quote sixty (60) days before the end of the Subscription Term without prior confirmation from Agency. 7. Upgrade Change. If Agency wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Agency must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. If the model Agency desires has an MSRP less than the MSRP of the offered BWC Upgrade or Dock Upgrade, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade. 8. Return of Original Axon Device. Within thirty (30) days of receiving a BWC or Dock Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Agency does not return or destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Agency. 9. Termination. If Agency’s payment for TAP, OSP, or Axon Evidence is more than thirty (30) days past due, and Agency fails to make such overdue payments within thirty (30) days notice from Axon, Axon may terminate TAP or OSP. Once TAP or OSP terminates for any reason: 9.1. TAP and OSP coverage terminate as of the date of termination and no refunds will be given. 9.2. Axon will not and has no obligation to provide the Upgrade Models. 9.3. Agency must make any missed payments due to the termination before Agency may purchase any future TAP or OSP. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 244 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 15 of 21 TASER 10 Appendix This TASER 10 Appendix applies to Agency’s TASER 10, OSP 10, OSP Plus, or OSP 10 Plus Premium purchase from Axon, if applicable. 1. Duty Cartridge Replenishment Plan. If the Quote includes "Duty Cartridge Replenishment Plan", Agency must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty and those that only use a CEW for training. Agency may not resell cartridges received. Axon will only replace cartridges used in the line of duty. 2. Training. If the Quote includes a training voucher, Agency must use the voucher within one (1) year of issuance, or the voucher will be void. Axon will issue Agency a voucher annually beginning on the start of the TASER Subscription Term. The voucher has no cash value. Agency cannot exchange it for another device or service. Unless stated in the Quote, the voucher does not include travel expenses and will be Agency’s responsibility. If the Quote includes Axon Online Training or Virtual Reality Content Empathy Development for Autism/Schizophrenia (collectively, "Training Content"), Agency may access Training Content. Axon will deliver all Training Content electronically. 3. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period warranty will be for a five- (5-) year term, which includes the hardware manufacturer’s warranty plus the four- (4-) year extended term. 4. Trade-in. If the Quote contains a discount on CEW-related line items, including items related to OSP, then that discount may only be applied as a trade-in credit, and Agency must return used hardware and accessories associated with the discount ("Trade-In Units") to Axon. Agency must ship batteries via ground shipping. Axon will pay shipping costs of the return. If Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Agency the value of the trade-in credit. Agency may not destroy Trade-In Units and receive a trade-in credit. Agency Size Days to Return from Start Date of TASER 10 Subscription Less than 100 officers 60 days 100 to 499 officers 90 days 500+ officers 180 days 5. TASER 10 Subscription Term. The TASER 10 Subscription Term for a standalone TASER 10 purchase begins on shipment of the TASER 10 hardware. The TASER 10 Subscription Term for OSP 10 begins on the OSP 10 start date. 6. Access Rights. Upon Axon granting Agency a TASER 10 Axon Evidence subscription, Agency may access and use Axon Evidence for the storage and management of data from TASER 10 CEW devices during the TASER 10 Subscription Term. Agency may not exceed the number of end users the Quote specifies. 7. Agency Warranty. If Agency is located in the US, Agency warrants and acknowledges that TASER 10 is classified as a firearm and is being acquired for official Agency use pursuant to a law enforcement agency transfer under the Gun Control Act of 1968. 8. Purchase Order. To comply with applicable laws and regulations, Agency must provide a purchase order to Axon prior to shipment of TASER 10. 9. Apollo Grant (US only). If Agency has received an Apollo Grant from Axon, Agency must pay all fees in the Quote prior to upgrading to any new TASER CEW offered by Axon. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 245 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 16 of 21 Axon Auto-Tagging Appendix If Auto-Tagging is included on the Quote, this Appendix applies. 1. Scope. Axon Auto-Tagging consists of the development of a module to allow Axon Evidence to interact with Agency’s Computer-Aided Dispatch ("CAD") or Records Management Systems ("RMS"). This allows end users to auto- populate Axon video meta-data with a case ID, category, and location-based on data maintained in Agency’s CAD or RMS. 2. Support. For thirty (30) days after completing Auto-Tagging Services, Axon will provide up to five (5) hours of remote support at no additional charge. Axon will provide free support due to a change in Axon Evidence, if Agency maintains an Axon Evidence and Auto-Tagging subscription. Axon will not provide support if a change is required because Agency changes its CAD or RMS. 3. Changes. Axon is only responsible to perform the Services in this Appendix. Any additional Services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. 4. Agency Responsibilities. Axon’s performance of Auto-Tagging Services requires Agency to: 4.1. Make available relevant systems, including Agency’s current CAD or RMS, for assessment by Axon (including remote access if possible); 4.2. Make required modifications, upgrades or alterations to Agency’s hardware, facilities, systems and networks related to Axon’s performance of Auto-Tagging Services; 4.3. Provide access to the premises where Axon is performing Auto-Tagging Services, subject to Agency safety and security restrictions, and allow Axon to enter and exit the premises with laptops and materials needed to perform Auto-Tagging Services; 4.4. Provide all infrastructure and software information (TCP/IP addresses, node names, network configuration) necessary for Axon to provide Auto-Tagging Services; 4.5. Promptly install and implement any software updates provided by Axon; 4.6. Ensure that all appropriate data backups are performed; 4.7. Provide assistance, participation, and approvals in testing Auto-Tagging Services; 4.8. Provide Axon with remote access to Agency’s Axon Evidence account when required; 4.9. Notify Axon of any network or machine maintenance that may impact the performance of the module at Agency; and 4.10. Ensure reasonable availability of knowledgeable staff and personnel to provide timely, accurate, complete, and up-to-date documentation and information to Axon. 5. Access to Systems. Agency authorizes Axon to access Agency’s relevant computers, network systems, and CAD or RMS solely for performing Auto-Tagging Services, provided, however, that Axon will comply with Agency security protocols for remote access. . Axon will work diligently to identify the resources and information Axon expects to use and will provide an initial list to Agency. Agency is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Agency. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 246 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 17 of 21 Axon Fleet Appendix If Axon Fleet is included on the Quote, this Appendix applies. 20. Agency Responsibilities. 21. Agency must ensure its infrastructure and vehicles adhere to the minimum requirements to operate Axon Fleet 2 or Axon Fleet 3 (collectively, "Axon Fleet") as established by Axon during the qualifier call and on-site assessment at Agency and in any technical qualifying questions. If Agency’s representations are inaccurate, the Quote is subject to change. 22. Agency is responsible for providing a suitable work area for Axon or Axon third-party providers to install Axon Fleet systems into Agency vehicles. Agency is responsible for making available all vehicles for which installation services were purchased, during the agreed upon onsite installation dates, Failure to make vehicles available may require an equitable adjustment in fees or schedule. 23. Cradlepoint. If Agency purchases Cradlepoint Enterprise Cloud Manager, Agency will comply with Cradlepoint’s end user license agreement. The term of the Cradlepoint license may differ from the Axon Evidence Subscription. If Agency requires Cradlepoint support, Agency will contact Cradlepoint directly. 24. Third-party Installer. Axon will not be liable for the failure of Axon Fleet hardware to operate per specifications if such failure results from installation not performed by, or as directed by Axon. 25. Wireless Offload Server. 25.1. License Grant. Axon grants Agency a non-exclusive, royalty-free, worldwide, perpetual license to use Wireless Offload Server ("WOS"). "Use" means storing, loading, installing, or executing WOS solely for data communication with Axon Devices for the number of licenses purchased. The WOS term begins upon the start of the Axon Evidence Subscription. 25.2. Restrictions. Agency may not: (a) modify, alter, tamper with, repair, or create derivative works of WOS; (b) reverse engineer, disassemble, or decompile WOS, apply any process to derive the source code of WOS, or allow others to do so; (c) access or use WOS to avoid incurring fees or exceeding usage limits; (d) copy WOS in whole or part; (e) use trade secret information contained in WOS; (f) resell, rent, loan or sublicense WOS; g) access WOS to build a competitive device or service or copy any features, functions or graphics of WOS; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within WOS. 25.3. Updates. If Agency purchases WOS maintenance, Axon will make updates and error corrections to WOS WOS Updates") available electronically via the Internet or media as determined by Axon. Agency is responsible for establishing and maintaining adequate Internet access to receive WOS Updates and maintaining computer equipment necessary for use of WOS. The Quote will detail the maintenance term. 25.4. WOS Support. Upon request by Axon, Agency will provide Axon with access to Agency’s store and forward servers solely for troubleshooting and maintenance. 26. Axon Vehicle Software. 26.1. License Grant. Axon grants Agency a non-exclusive, royalty-free, worldwide, perpetual license to use ViewXL or Dashboard (collectively, "Axon Vehicle Software".) "Use" means storing, loading, installing, or executing Axon Vehicle Software solely for data communication with Axon Devices. The Axon Vehicle Software term begins upon the start of the Axon Evidence Subscription. 26.2. Restrictions. Agency may not: (a) modify, alter, tamper with, repair, or create derivative works of Axon Vehicle Software; (b) reverse engineer, disassemble, or decompile Axon Vehicle Software, apply any process to derive the source code of Axon Vehicle Software, or allow others to do so; (c) access or use Axon Vehicle Software to avoid incurring fees or exceeding usage limits; (d) copy Axon Vehicle Software in whole or part; (e) use trade secret information contained in Axon Vehicle Software; (f) resell, rent, loan or sublicense Axon Vehicle Software; (g) access Axon Vehicle Software to build a competitive device or service or copy any features, functions or graphics of Axon Vehicle Software; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Vehicle Software. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 247 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 18 of 21 27. Acceptance Checklist. If Axon provides services to Agency pursuant to any statement of work in connection with Axon Fleet, withinthirty (30) days of the date on which Agency retrieves Agency's vehicle(s) from the Axon installer , said vehicle having been installed and configured with tested and fully and properly operational in -car hardware and software identified above, Agency will receive a Professional Services Acceptance Checklist to submit to Axon indicating acceptance or denial of said deliverables. 28. Axon Fleet Upgrade. If Agency has no outstanding payment obligations and has purchased the "Fleet Technology Assurance Plan" (Fleet TAP), Axon will provide Agency with the same or like model of Fleet hardware ("Axon Fleet Upgrade") as scheduled on the Quote. 28.1. If Agency would like to change models for the Axon Fleet Upgrade, Agency must pay the difference between the MSRP for the offered Axon Fleet Upgrade and the MSRP for the model desired. The MSRP is the MSRP in effect at the time of the upgrade. Agency is responsible for the removal of previously installed hardware and installation of the Axon Fleet Upgrade. 28.2. Within thirty (30) days of receiving the Axon Fleet Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon, including serial numbers of the destroyed Axon Devices. If Agency does not destroy or return the Axon Devices to Axon, Axon will deactivate the serial numbers for the Axon Devices received by Agency. 29. Axon Fleet Termination. Axon may terminate Agency’s Fleet subscription for non-payment. Upon any termination: 29.1. Axon Fleet subscription coverage terminates, and no refunds will be given. 29.2. Axon will not and has no obligation to provide the Axon Fleet Upgrade. 29.3. Agency will be responsible for payment of any missed payments due to the termination before being allowed to purchase any future Fleet TAP. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 248 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 19 of 21 Axon Respond Appendix This Axon Respond Appendix applies to both Axon Respond and Axon Respond Plus, if either is included on the Quote. 1. Axon Respond Subscription Term. If Agency purchases Axon Respond as part of a bundled offering, the Axon Respond subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Respond to Agency. If Agency purchases Axon Respond as a standalone, the Axon Respond subscription begins the later of the (1) date Axon provisions Axon Respond to Agency, or (2) first day of the month following the Effective Date. The Axon Respond subscription term will end upon the completion of the Axon Evidence Subscription associated with Axon Respond. 2. Scope of Axon Respond. The scope of Axon Respond is to assist Agency with real-time situational awareness during critical incidents to improve officer safety, effectiveness, and awareness. In the event Agency uses Axon Respond outside this scope, Axon may initiate good-faith discussions with Agency on upgrading Agency’s Axon Respond to better meet Agency’s needs. 3. Axon Body 3 LTE Requirements. Axon Respond is only available and usable with an LTE enabled body-worn camera. Axon is not liable if Agency utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable. LTE coverage is only available in the United States, including any U.S. territories. Axon may utilize a carrier of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without Agency’s consent. 4. Axon Fleet 3 LTE Requirements. Axon Respond is only available and usable with a Fleet 3 system configured with LTE modem and service. Agency is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Agency’s LTE carrier. 5. Axon Respond Service Limitations. Agency acknowledges that LTE service is made available only within the operating range of the networks. Service may be temporarily refused, interrupted, or limited because of: (a) facilities limitations; (b) transmission limitations caused by atmospheric, terrain, other natural or artificial conditions adversely affecting transmission, weak batteries, system overcapacity, movement outside a service area or gaps in coverage in a service area, and other causes reasonably outside of the carrier’s control such as intentional or negligent acts of third parties that damage or impair the network or disrupt service; or (c) equipment modifications, upgrades, relocations, repairs, and other similar activities necessary for the proper or improved operation of service. 5.1. With regard to Axon Body 3, Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks. Agency expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors and Agency is not a third-party beneficiary of any agreement between Axon and the underlying carrier. 6. Termination. Upon termination of this Agreement, or if Agency stops paying for Axon Respond or bundles that include Axon Respond, Axon will end Axon Respond services, including any Axon-provided LTE service. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 249 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 20 of 21 Axon Application Programming Interface Appendix This Appendix applies if Axon’s API Services are included on the Quote. 1. Definitions. 1.1. "API Client" means the software that acts as the interface between Agency’s computer and the server, which is already developed or to be developed by Agency. 1.2. "API Interface" means software implemented by Agency to configure Agency’s independent API Client Software to operate in conjunction with the API Service for Agency’s authorized Use. 1.3. "Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon’s API which provides a programmatic means to access data in Agency’s Axon Evidence account or integrate Agency’s Axon Evidence account with other systems. 1.4. "Use" means any operation on Agency’s data enabled by the supported API functionality. 2. Purpose and License. 2.1. Agency may use API Service and data made available through API Service, in connection with an API Client developed by Agency. Axon may monitor Agency’s use of API Service to ensure quality, improve Axon devices and services, and verify compliance with this Agreement. Agency agrees to not interfere with such monitoring or obscure from Axon Agency’s use of API Service. Agency will not use API Service for commercial use. 2.2. Axon grants Agency a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Agency’s Use in connection with Agency’s API Client. 2.3. Axon reserves the right to set limitations on Agency’s use of the API Service, such as a quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to accommodate use beyond the designated limits. 3. Configuration. Agency will work independently to configure Agency’s API Client with API Service for Agency’s applicable Use. Agency will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate. Agency will inform Axon promptly of any updates. Upon Agency’s registration, Axon will provide documentation outlining API Service information. 4. Agency Responsibilities. When using API Service, Agency and its end users may not: 4.1. use API Service in any way other than as expressly permitted under this Agreement; 4.2. use in any way that results in, or could result in, any security breach to Axon; 4.3. perform an action with the intent of introducing any viruses, worms, defect, Trojan horses, malware, or any items of a destructive nature to Axon Devices and Services; 4.4. interfere with, modify, disrupt or disable features or functionality of API Service or the servers or net works providing API Service; 4.5. reverse engineer, decompile, disassemble, or translate or attempt to extract the source code from API Service or any related software; 4.6. create an API Interface that functions substantially the same as API Service and offer it for use by third parties; 4.7. provide use of API Service on a service bureau, rental or managed services basis or permit other individuals or entities to create links to API Service; 4.8. frame or mirror API Service on any other server, or wireless or Internet-based device; 4.9. make available to a third-party, any token, key, password or other login credentials to API Service; 4.10. take any action or inaction resulting in illegal, unauthorized or improper purposes ; or 4.11. disclose Axon’s API manual unless required by law or Court order. 5. API Content. All content related to API Service, other than Agency Content or Agency’s API Client content, is considered Axon’s API Content, including: 5.1. the design, structure and naming of API Service fields in all responses and requests; DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 250 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda 60297.00068\41841462.1 Master Services and Purchasing Agreement for Agency Title:Master Services and Purchasing Agreement between Axon and Agency Department:Legal Version: 19.0 Release Date:8/18/2023 Page 21 of 21 5.2. the resources available within API Service for which Agency takes actions on, such as evidence, cases, users, or reports; 5.3. the structure of and relationship of API Service resources; and 5.4. the design of API Service, in any part or as a whole. 6. Prohibitions on API Content. Neither Agency nor its end users will use API content returned from the API Interface to: 6.1. scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header; 6.2. copy, translate, modify, create a derivative work of, sell, lease, lend, convey, distribute, publicly display, or sublicense to any third-party; 6.3. misrepresent the source or ownership; or 6.4. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices). 7. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Agency is required to implement and use the most current version of API Service and to make any applicable changes to Agency’s API Client required as a result of such API Update. API Updates may adversely affect how Agency’s API Client access or communicate with API Service or the API Interface. Each API Client must contain means for Agency to update API Client to the most current version of API Service. Axon will provide support for one (1) year following the release of an API Update for all depreciated API Service versions. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 251 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Insurance Requirements for Suppliers Vendor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with products and materials supplied to the Entity. The cost of such insurance shall be borne by the Vendor. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 00 01) and include products coverage. Minimum Limits of Insurance Vendor shall maintain limits no less than $1,000,000 per occurrence for bodily injury and property damage, and an aggregate limit of $2,000,000. Excess / Umbrella coverage of $9Mil per Occurrence; $9Mil Aggregate If the Vendor maintains higher limits than the minimums shown above, the Entity requires and shall be entitled to coverage for the higher limits maintained by the contractor. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the Entity. At the option of the Entity, either: the Vendor shall obtain coverage to reduce or eliminate such deductibles or self-insured retentions as respects the Entity, its officers, officials, employees, and volunteers; or the Vendor shall provide a financial guarantee satisfactory to the Entity guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions 1.The policy or policies are to contain, or be endorsed to contain, the following provisions: The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds as respects products of the Vendor. The Liability Additional Insured endorsement must not exclude Products / Completed Operations. 2.The Vendor’s insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees or volunteers, shall be excess of the Vendor’s insurance and shall not contribute with it. 3.Each insurance policy required by this clause shall state that coverage shall not be canceled, except after thirty (30) days prior written notice has been provided to the Entity. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity. EXHIBITADocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 252 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Verification of Coverage Vendor shall furnish the Entity with original certificates and amendatory endorsements or copies of the applicable policy language providing the insurance coverage required above. All certificates and endorsements are to be received and approved by the Entity before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Vendor’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Waiver of Subrogation Vendor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Vendor may acquire against the Entity by virtue of the payment of any loss under such insurance. Vendor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer Special Risks or Circumstances Entity reserves the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. DocuSign Envelope ID: 0E17AEBC-772B-49D8-ADCB-E339F16940C0 Page 253 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Amendment 1 to the Master Services and Purchasing Agreement Page 1 of 4 This First Amendment (“Amendment”) is between Axon Enterprise, Inc., a Delaware corporation (“Axon”), and the City of Chula Vista, California (“Customer”). This Amendment is effective as of the last signature date on this Amendment (“Effective Date”). Axon and Customer are each a “Party” and collectively “Parties”. Axon and Customer are parties to the Master Services and Purchasing Agreement fully executed on December 7, 2023 (“Agreement”). The Parties wish to incorporate further changes into the Agreement in order to add the AI Eras plan to the current purchases. The Parties therefore agree as follows: 1.The attached documents are hereby incorporated into the Agreement: a.Quote Q-707659 b.Appendix for AI Technology 2.All other terms and conditions of the Agreement shall remain unchanged and in full force and effect. Each representative identified below declares that the representative is authorized to execute this Amendment as of the date of signature. Axon Enterprise, Inc. Customer Signature: Signature: Name: Name: Title: Title: Date: John McCann Mayor Date: ATTEST: ______________________________________ Kerry K. Bigelow, MMC, City Clerk Approved as to form: By: ___________________________________ Marco A. Verdugo, City Attorney Robert Driscoll Deputy General Counsel ACN 2025-293 Page 254 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Amendment 1 to the Master Services and Purchasing Agreement Page 2 of 4 Quote Appendix – See next page Page 255 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 1 Q-707659-45868LG Q-707659-45868LG Issued: 07/30/2025 Quote Expiration: 09/30/2025 Estimated Contract Start Date: 10/01/2025 Account Number: 106513 Payment Terms: N30 Mode of Delivery: UPS-GND Credit/Debit Amount: $0.00 SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT Chula Vista Police Dept. - CA 315 4TH AVE CHULA VISTA, CA 91910-3801 USA Chula Vista Police Dept. - CA 315 4TH AVE CHULA VISTA CA 91910-3801 USA Email: Lauren Gauer Phone: 480-580-3639 Email: lgauer@axon.com Fax: Dan Peak Phone: (619) 691-5217 Email: dpeak@chulavistapd.org Fax: Quote Summary Discount Summary Program Length 40 Months Average Savings Per Year $384,157.20 TOTAL COST $993,264.00 ESTIMATED TOTAL W/ TAX $993,264.00 TOTAL SAVINGS $1,280,524.00 Axon Enterprise, Inc. 17800 N 85th St. Scottsdale, Arizona 85255 United States VAT: 86-0741227 Domestic: (800) 978-2737 International: +1.800.978.2737 Page 256 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 2 Q-707659-45868LG Payment Summary Date Subtotal Tax Total Sep 2025 $189,384.00 $0.00 $189,384.00 Jul 2026 $267,960.00 $0.00 $267,960.00 Jul 2027 $267,960.00 $0.00 $267,960.00 Jul 2028 $267,960.00 $0.00 $267,960.00 Total $993,264.00 $0.00 $993,264.00 Page 257 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 3 Q-707659-45868LG Quote Unbundled Price:$2,273,706.80 Quote List Price:$1,448,308.80 Quote Subtotal:$993,264.00 Pricing All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program S00007 AXON AI - AI ERA LEADERS 290 28 $256.69 $155.04 $99.00 $803,880.00 $0.00 $803,880.00 A la Carte Software 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 290 12 $20.80 $20.80 $72,384.00 $0.00 $72,384.00 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 150 12 $65.00 $65.00 $117,000.00 $0.00 $117,000.00 Total $993,264.00 $0.00 $993,264.00 Delivery Schedule Software Bundle Item Description QTY Estimated Start Date Estimated End Date A la Carte 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 150 10/01/2025 09/30/2026 A la Carte 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 290 10/01/2025 09/30/2026 AXON AI - AI ERA LEADERS 101740 AXON - AI SOFTWARE LICENSE 290 10/01/2026 01/31/2029 Services Bundle Item Description QTY AXON AI - AI ERA LEADERS 101741 AXON - AI PROFESSIONAL SERVICES 290 Page 258 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 4 Q-707659-45868LG Shipping Locations Location Number Street City State Zip Country 1 315 4TH AVE CHULA VISTA CA 91910-3801 USA Payment Details Sep 2025 Invoice Plan Item Description Qty Subtotal Tax Total Year 1 - Draft One and Auto Transcribe 101283 AXON RECORDS - DRAFT ONE - AI-ASSISTED REPORT WRITING 150 $117,000.00 $0.00 $117,000.00 Year 1 - Draft One and Auto Transcribe 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 290 $72,384.00 $0.00 $72,384.00 Total $189,384.00 $0.00 $189,384.00 Jul 2026 Invoice Plan Item Description Qty Subtotal Tax Total AI Era - Year 2 S00007 AXON AI - AI ERA LEADERS 290 $267,960.00 $0.00 $267,960.00 Total $267,960.00 $0.00 $267,960.00 Jul 2027 Invoice Plan Item Description Qty Subtotal Tax Total AI Era - Year 3 S00007 AXON AI - AI ERA LEADERS 290 $267,960.00 $0.00 $267,960.00 Total $267,960.00 $0.00 $267,960.00 Jul 2028 Invoice Plan Item Description Qty Subtotal Tax Total AI Era - Year 4 S00007 AXON AI - AI ERA LEADERS 290 $267,960.00 $0.00 $267,960.00 Total $267,960.00 $0.00 $267,960.00 Page 259 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 5 Q-707659-45868LG Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing. Exceptions to Standard Terms and Conditions Page 260 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 6 Q-707659-45868LG Customer Case Study: Customer agrees to participate in at least one case study on the use of AI products during the term of this Agreement, which may include providing testimonials, sharing quantitative and qualitative results, and highlighting the use and outcomes of Axon Devices and Services. Such participation may also involve interviews, performance metrics, and insights about Customer’s experience with Axon. Customer further grants Axon the right to publicly reference such case study pursuant the terms of the Agreement. The rights granted herein will survive termination of the Agreement solely with respect to materials published during the term of the Agreement. Chula Vista Police Department, being an innovative law enforcement partner of Axon, will develop policies in relation to the use of AI purchased under this Agreement, which Chula Vista Police Department will make available to Axon as well as other law enforcement agencies as a model use policy. Page 261 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 7 Q-707659-45868LGPage 262 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Amendment 1 to the Master Services and Purchasing Agreement Page 3 of 4 Appendix for AI Technology This AI Appendix shall only apply to Customers who license Axon Cloud Services in a Quote that specifically utilize AI Technology. Unless explicitly defined otherwise, capitalized terms used in this Appendix have the same meaning as those in the Agreement. 1. Definitions 1.1 AI Technology. Refers to artificial intelligence functionalities embedded in Axon’s Cloud Services, which may include: (a) Enhanced Evidence Management; (b) AI-powered redaction tools; (c) Large Language Model-based tools (e.g., "Draft One" “Policy Chat”); (d) Predictive Analytics for operational insights; or (e) Natural Language Processing (NLP) for text and speech analysis. 1.2 Model Drift. The degradation of AI model performance due to changes in input data or external conditions, requiring retraining or updates. 1.3 Bias Mitigation. Strategies and techniques used to identify, measure, and minimize bias in AI Technology. 2. Scope and Usage 2.1 Integration. Axon AI Technology is intended to improve public safety, streamline operations, and ensure data accuracy. The AI functionalities will only be used as described in the Agreement or applicable documentation. 2.2 Data Use. Axon acts as a Data Processor for AI Technology. All inquiries submitted are processed solely to provide accurate responses based on Customer Content submitted. Customer remains the Data Controller of all Customer Content. Axon and Axon’s subprocessors do not train their models on Customer Content. Customers who elect to participate in Axon’s ACEIP program can enter into custom agreements to assist in product development efforts like AI model training. Even in those cases, Axon operates carefully on redacted data and not on Customer Content. 2.3 Automatic Data Collection. AI Technology may automatically collect Non-Content Data about user interactions with the service and their devices to enhance the functionality and security of the system. The details collected include, but are not limited to, the following: 2.3.1 User Engagement and Activity Metrics. AI Technology may track key engagement statistics, including Daily Active Users (DAUs), Weekly Active Users (WAUs), and Monthly Active Users (MAUs). Additional metrics include new user activations, repeat usage rates, total queries submitted, follow-up query volume, session lengths, retention rates, and user satisfaction ratings (e.g., thumbs up/down feedback). 2.3.2 Sales and Adoption Tracking. Axon monitors the number of licenses and agencies purchasing the service, including those in trial phases, fully deploying the service, and conversion rates from trials to paid subscriptions. 2.3.3 End User inputs. Axon may process de-identified end-user inputs to the AI Technology, excluding Customer Content or any data that directly or indirectly identifies individuals. 3. Axon Responsibilities 3.1 Ethical AI Development. Axon shall: (a) Follow its responsible innovation framework; (b) Engage with the Ethics and Equity Advisory Council (EEAC) for feedback; (c) Conduct testing to Page 263 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Amendment 1 to the Master Services and Purchasing Agreement Page 4 of 4 minimize bias and ensure reliability; and (d) Implement Bias Mitigation techniques in model development and deployment. 3.2 Security Program. Axon will maintain a comprehensive information security program, including logical and physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of digital evidence; and security education. 3.3 Transparency. Axon will provide documentation describing AI functionalities and their intended use and disclose any material limitations, risks, or Model Drift incidents. 3.4 Incident Response. Axon will promptly address and rectify anomalies in AI functionalities, as outlined in its incident management procedures. 3.5 Compliance. Axon will ensure compliance with applicable laws, regulations, and standards, including but not limited to the EU AI Act, NIST AI standards, and ISO/IEC 27001. 4. Customer Responsibilities 4.1 Ownership of Customer Content. Customer controls and owns all rights, title, and interest in Customer Content. Axon obtains no interest in Customer Content and will only access Customer Content for limited purposes as outlined in the Agreement. 4.2 Use of AI Technologies. Customer must: (a) review AI-generated outputs to ensure accuracy and appropriateness; (b) maintain control over Customer Content shared with AI Technologies (c) comply with applicable laws when using Axon AI Technology and Axon Services; (d) monitor for potential issues with AI outputs, including false positives or negatives; (e) actively opt-in for programs involving data sharing through Axon’s ACEIP program; and (f) provide timely feedback on Axon AI Technology performance. 4.3 Restrictions. AI Technology is not designed for emergencies, and in such cases, users should contact appropriate emergency services directly. Axon disclaims liability for queries containing prohibited content, such as hate, sexual material, or violence, and reserves the right to restrict such usage. 5. Draft One. Specifically for Customers who utilize Draft One, Axon may impose usage restrictions if a single user generates more than three hundred (300) reports per month for two or more consecutive months. Page 264 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Axon Draft One Professional Standards Unit Assistant Chief Dan Peak September 23, 2025 Page 265 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Axon AI: A New Tool in Our Existing System •New Tool –Same System ➢Axon’s AI is an enhancement to Chula Vista Police Department’s established report writing and approval process. It does not change department responsibilities, policies, or oversight. Page 266 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda PRIVACY PROTECTION & TECHNOLOGY ADVISORY COMMISSION Presented to PTAC on July 7, 2025, with the following comments: •Yesterday’s PTAC meeting was very successful. •Commissioners asked thoughtful and informed questions. •PD staff were well-prepared and provided clear, satisfactory responses. •No major follow-up concerns were raised. •Commissioner Feedback: •One Commissioner asked that her appreciation be shared that she and others were especially pleased that the AI First Draft was presented. •The Commission expressed gratitude for the City’s transparency, particularly regarding privacy considerations . Page 267 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda What is Staying the Same •Officers still prepare and finalize all reports •Supervisory review and approval chain remains unchanged •Reports must still meet all standards under Department Policy 344 •Officer accountability for report truth and accuracy is non-negotiable Page 268 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda What is New –Axon AI Tool •Uses BWC (Body-Worn Camera)data to generate a draft report •Provides a structured starting point, like SpeakWrite, but more advanced •Saves time, reduces redundancy, improves quality •All final reports remain authored by the officer Page 269 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda I acknowledge this report was generated using Draft One by Axon. I further acknowledge that I have reviewed the report in detail, made any necessary edits, and believe it to be an accurate representation of my recollection of the reported events. If needed, I am willing to testify to the accuracy of this report. Page 270 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Policy Alignment – Built Into the System •Department Policy 304 – Generative Artificial Intelligence ➢Provides framework for responsible, transparent AI use •Department Policy 344 – Report Preparation ➢Ensures officer-reviewed, accurate, and complete documentation •District Attorney’s Office is aware of the disclaimer and aware they will be seeing this disclaimer on AI generated reports. •Axon implementation is fully aligned with both Page 271 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Data Security & Compliance • Current Agreement requires all data storage within the U.S. • Maintains CVPD’s strict data handling and privacy protocols •AXPM Trust Center -Axon Trust Center | Powered by SafeBase Page 272 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Officer Feedback Officer 1: “I can confidently say that this tool is absolutely amazing and has completely transformed the way I approach report writing. The efficiency and time savings it offers are unparalleled. During the beta phase, I consistently found myself compl eting my reports hours faster than my colleagues —something that not only enhances my productivity but also allows me to spend more time focused on fieldwork and other important tasks. One of the standout features of Draft One is how seamlessly it integrates with our department's standards. The AI -generated reports meet Chula Vista Police Department's criteria with minimal need for revisions, which has been a game -changer for me. In fact, the quality of my reports has even improved since I started using this system. It’s clear that Axon has put a lot of thought into ensuring that Draft One not only meets the technical ne eds of officers but also elevates the quality of documentation.” Officer 2: “I'd say the AI makes it very easy to review BWC, since you can search for particular words or phrases. I often forget to use the "flag" button in the field, but the transcription makes it far easier to find what I'm looking for during review and cuts down on report writing time.” Officer 3: “Transcription is my favorite feature by far!I used the transcription feature while writing all my reports. I love how clicking words brings the BWC video to exactly when it was said. This feature is not only helpful while writing reports but reviewing BWC in prep for court.” Page 273 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda The Axon – Enhanced Work Flow Step 1: Officer initiates report based on incident Step 2: Axon uses BWC data to generate draft Step 3: Officer reviews, edits, and confirms accuracy Step 4: Officer submits finalized report per Policy 344 Step 5: Report goes through standard chain of command & PSS review Page 274 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Officer Control & Oversight •Officer remains the author of the report •AI is just a drafting aid — not a replacement for judgment or memory •Policy 344 requires officer to certify accuracy and completeness •Supervisors continue to verify quality and compliance *** Currently Officers can spend up to 3 hours per shift on report writing, but Draft One will drastically reduce report writing time, allowing for more officers to be available to respond to emergency calls. Page 275 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Page 276 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Benefits of the Tool (Not a System Change) •More structured, consistent, and complete reports •Helps reduce administrative workload •Promotes clarity and detail in documentation •Supports the officer – doesn’t replace them Page 277 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda DRAFT ONE COSTS •Fiscal Year 2025 -2026, Draft One will have a cost of $189,384 covered by Grants and Measure A •The ongoing fiscal impact for the remainder of the agreement term, from July 1, 2026, to January 31, 2029, will be $803,880 and may need to be covered through the General Fund depending on available grant fund balances •The contract cost over the term of the agreement includes a significant discount of approximately $1.3 million Page 278 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Summary •Axon is a tool within our existing system •Designed to enhance, not replace current practices •Aligned with all CVPD policies and procedures •Ensures compliance, accountability, and report integrity Page 279 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Questions & Discussion Let’s discuss: •How will this tool support your workflow? •Any questions about policies or procedures Police Department Policy & Training | City of Chula Vista Page 280 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 From: alan mil Sent: Thursday, September 11, 2025 9:37 AM Subject: Re: Keep Balboa Park Parking Free WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov COPY TO NEWS MAYORS CITY COUNCILS SAN DIEGO COUNTY DA SAN DIEGO SUPERVISORS SANDAG REPRESENTATIVES CA STATE REPS AND SENATORS BCC TO COMMUNITY FED UP TAX LIES Good Morning, @SANDAG CLERK - Please place entire email with links and pictures into Public Record Comment the next scheduled Sandag Board Directors Meeting FRIDAY NON AGENDA PUBLIC COMMENT. https://www.sandag.org/calendar @SAN DIEGO CITY CLERK - Please place entire email with links and pictures into Public Record Comment the next scheduled San Diego City TUESDAY NON AGENDA PUBLIC COMMENT. https://sandiego.hylandcloud.com/211agendaonlinecouncil @CHULA VISTA CITY CLERK - Please place entire email with links and pictures into Public Record Comment the next scheduled Chula Vista City Meeting TUESDAY 5PM NON AGENDA PUBLIC COMMENT. https://www.chulavistaca.gov/departments/mayor-council/council-meeting-agenda Page 281 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 @COUNTY SUPERVISOR CLERK - Please place entire email with links and pictures into Public Record Comment for next scheduled Supervisor Meeting TUESDAY NON AGENDA PUBLIC COMMENT. https://www.sandiegocounty.gov/cob/bosa/index.html IT IS WRONG TO CHARGE PARKING AT BALBOA PARK AND CITY LAND ZOO PARKING (OVERFLOW FOR PARK) "City Hall is now mulling a plan to charge $2.50 an hour at the following streets in the park:6th Avenue, Balboa Drive, El Prado, Juniper Street, Park Boulevard, Presidents Way, Quince Drive, Village Place." https://www.nbcsandiego.com/news/local/inyourneighborhood/heres-how-much-it- may-cost-you-to-park-in-balboa-park/3869764/ For over a century the park DONATED land was a promise for ALL of the people to enjoy; NOW THE CITY IS PLACING A PUBLIC PARKING FEE THAT MANY WILL NOT BE ABLE TO AFFORD; LIMITING PARK ACCESS TO JUST THE RICH THAT CAN DRIVE THEIR OWN CAR WHILE THE POOR IS FORCED TO PAY OR TAKE A CITY BUS AND STILL PAY THE CITY! "San Diego Union, June 30, 1870, 2:1. EDITORIAL: The Park of San Diego . . . One of the wisest things ever done by the city was the setting aside of fourteen hundred and forty acres for a public park. Owing to the want of such foresight the citizens of other places have been obliged, either to dispense with these luxuries, or to look for them to very precarious sources. The citizens of Chester, England, have received such a gift from the Marquis of Westminster; but he is the richest man in England, and few towns boast of such liberality in their citizens. The Grand Jury of San Francisco has proposed that space for a park be asked of the United States Government; but the Government is not an owner in the vicinity of every city, and, besides, is likely to hold on to her own where she is. In Chicago, land for a park has been taken up by a company; but even where such companies can find suitable tracts, it is better that public parks should belong to cities themselves. The wisdom of our officials in the Park reservation should be recognized by every citizen." https://sandiegohistory.org/archives/amero/balboapark/pre1900/ Page 282 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 ZOO PARKING IS CITY LAND - PROPOSAL ALLOWS RICH MEMBERS NOT TO PAY In addition, considering a parking fee waiver on Zoo Parking Lot for wealthier Zoo Members on CITY LAND against the law to only charge select groups of people. KEEP ALL PUBLIC PARK PARKING LOTS FREE FOR EVERYONE - OUR TAXES ALREADY PAID FOR THE PARKING LOTS OUR CONTINUAL TAXES PAY FOR THE UPKEEP. Parking at San Diego Zoo lots will be free for some, paid for by others: https://fox5sandiego.com/san-diego-zoo/free-parking-at-san-diego-zoo/ SANDIEGO COUNCIL FAILURE CITY BUDGET CONTACT ENTIRE GREEDY CITY COUNCIL ALL ARE DEMOCRAT PARTY https://www.sandiego.gov/citycouncil WHEN WILL THE VOTERS STOP VOTING FOR USELESS TAX TAX POLITICIANS? Page 283 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 CORRUPT DEMOCRATS DO NOT CARE CORRELATION - GOVERNMENT DEMOCRATS INTERUPT FREE SPEECH MULTIPLE TIMES TO CELBRATE THEIR OWN PARTY MEMBERS BIRTHDAYS https://www.youtube.com/watch?v=K-ONxipo1JE&t=95 Page 284 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 MULTIPLE INTERUPT SPEAKER TIME: "MEMBERS JOIN ME CELEBRATE BIRTHDAY DEMOCRAT REP." On Wed, Sep 10, 2025 at 2:57 PM Andres Wong <wongarg1@gmail.com> wrote: Dear San Diego Board of Supervisors, I am writing with deep concern regarding any proposal to begin charging for parking at Balboa Park. Balboa Park is not just another city amenity, it is a cornerstone of San Diego’s cultural, educational, and recreational life. It belongs to everyone, and access to it must remain equitable and open. Introducing parking fees would create real and unnecessary barriers for the very communities who benefit the most from the park. For single parents, the elderly, and families living on modest or fixed incomes, even small additional costs can be prohibitive. Many households are already struggling to make ends meet rising rent, food, gas, and utility prices are stretching pocketbooks thinner than ever. To add a parking fee on top of these burdens would mean some residents would simply stop coming. Balboa Park is a public park, meant to be accessible to all. To impose parking charges is, in practice, elitist privileges those with disposable income while excluding those without. The impact falls disproportionately on communities of color and lower-income residents, making this policy not only inequitable, but one that amplifies systemic inequality. The irony is that Balboa Park itself is a source of free or low-cost enrichment that uplifts the quality of people’s lives. Families come for community events, children explore art and science, seniors find companionship, and countless residents benefit from the programs offered through Parks and Recreation. But if parking becomes a financial hurdle, these opportunities will no longer be within reach for many. Balboa Park is often called the “crown jewel” of San Diego. That jewel should not be behind a paywall. To charge for parking would erode the very spirit of the park as a welcoming space for all San Diegans regardless of income, race, or background. I urge you to protect the integrity and accessibility of Balboa Park by keeping parking free. To do otherwise would send a damaging message: that only those who can afford it deserve access to San Diego’s most treasured public space. Respectfully, ANDRES WONG Page 285 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 CHULA VISTA, CA 91911 WONGARG1@GMAIL.COM -- Informative links below my signature BOOKMARK AND SHARE Ballotpedia to Research Facts every Candidate and Proposition :) Alan Curry SANDAG 2025 REGIONAL PLAN PAGE 4 125 TOLL BECOMES PERMANENT MANAGED TOLL TRANSNET ALREADY FUNDED ROADS DOUBLE TAX CONVERT FREEWAY LANES TO MANAGED TOLL LANES CORONADO BRIDGE TOLL IS BACK / ALL FREEWAYS GET A TOLL https://www.sandag.org/-/media/SANDAG/Documents/PDF/regional-plan/2025- regional-plan/2025-draft-proposed-regional-transportation-network-eng.pdf Page 286 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 SAN DIEGO COUNTY VOTERS STOPPED SANDAG TAX https://www.sandiegouniontribune.com/2024/10/04/endorsement-reject-measure-g- sandag-is-dishonest-dysfunctional/ VOTERS WERE PROMISED TWICE 1988 AND 2004 TRANSNET TAX EXPAND FREEWAYS SANDAG IGNORES FREEWAYS FIRE EGRESS https://www.sandag.org/funding/transnet EVERY CA CITY VOTED MAKE CRIME ILLEGAL AGAIN REPEALED KAMALA HARRIS HORRIBLE PROP 47 LAW https://web.archive.org/web/20241106045649/https://electionresults.sos.ca.gov/retu rns/maps/ballot-measures/prop/36 Page 287 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 DO NOT TRUST STATE WRITTEN BALLOTS THE TITLE SUMMARY LIES MISLEADS VOTERS AS CA AG KAMALA HARRIS WROTE CA PROP 47 MISLEADING TITLE "SAFE NEIGHBORHOODS ACT" RESULTED HUGE INCREASE CA CRIME DRUG ABUSE! https://thefederalist.com/2024/08/09/california-can-thank-kamala-harris-for-its- crime-problem/ USE BALLOTPEDIA LISTS TRUTH https://ballotpedia.org/California_Proposition_47,_Reduced_Penalties_for_Some_Cri mes_Initiative_(2014) https://ballotpedia.org/Elections Page 288 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Curry – Received 9/11/2025 https://vote.gov/ Page 289 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Public Comments - Shelton Received 8/22/2025 From: JeffShelton3 Sent: Friday, August 22, 2025 1:02 PM To: John McCann <jmccann@chulavistaca.gov>; Michael Inzunza <minzunza@chulavistaca.gov>; Carolina Chavez <cchavez@chulavistaca.gov>; Cesar Fernandez <cfernandez@chulavistaca.gov>; Jose Preciado <jpreciado@chulavistaca.gov>; Council District 3 <District3@chulavistaca.gov>; Council District 4 <District4@chulavistaca.gov>; Council District 2 <District2@chulavistaca.gov>; Council District 1 <District1@chulavistaca.gov>; CityClerk <CityClerk@chulavistaca.gov> Subject: Policy Brief Submission: ALPR Program Oversight & Suspension Request WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov Dear Mayor McCann, Council Members, and City Clerk, Please find attached a policy brief outlining serious compliance, privacy, and constitutional concerns regarding the City’s Automated License Plate Reader (ALPR) program operated under contract with Flock Safety. The brief documents: Unverified retention/audit compliance, Potential policy conflicts with statewide/nationwide network access, California constitutional privacy risks, Some people who received this message don't often get email from . Learn why this is important Page 290 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Public Comments - Shelton Received 8/22/2025 Fourth Amendment exposure, and Denver’s precedent for suspending similar programs. Given these findings, I respectfully request: 1. Temporary suspension of the ALPR program pending independent review; 2. Independent auditing of purge logs, access records, and network sharing; 3. Public reporting requirements for future program transparency. Please confirm receipt and ensure this brief is distributed to all Council members and added to the legislative record for upcoming meetings. Thank you for your time and attention to this matter. Sincerely, Jeff Shelton Chula Vista Resident Sent with Proton Mail secure email. Page 291 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Policy Brief – ALPR Program: Audit, Privacy, and Compliance Gaps in Chula Vista Executive Summary The City of Chula Vista’s Automated License Plate Reader (ALPR) program—operated under a $1.37M, 36-month contract with Flock Safety—presents unresolved compliance, privacy, and constitutional risks. Recent public records and policy review reveal gaps between the City’s obligations under California Civil Code §§1798.90.5–1798.90.55 (SB-34), the California Constitution (Art. I, §1 – Right to Privacy), and the Fourth Amendment. Other jurisdictions, including Denver, Colorado, have suspended or terminated similar programs over these exact concerns. Chula Vista should follow this precedent by imposing a temporary suspension pending independent review. Key Findings  Retention & Purge Compliance – No public records verify 30-day data deletion compliance or exceptions.  Audit & Access Logging – Audits only 'should' be done; no published logs or results.  Data Sharing & Network Controls – Flock State/Nationwide Networks may bypass written request safeguards.  Constitutional Risks – Mass, suspicion-less tracking raises California privacy and Fourth Amendment concerns.  Minimal Training & Oversight – Two-hour training requirement with no public refresher evidence. Denver Precedent In 2023, Denver City Council defunded its Flock ALPR program after the City Attorney cited privacy, civil liberties, and lack of accountability risks. Chula Vista faces identical policy gaps: weak audit trails, opaque network sharing, and no published privacy impact assessments. Requested Council Actions  Immediate Suspension – Pause ALPR data collection until purge/audit records, network access controls, and privacy assessments are completed.  Independent Audit – Review retention/purge logs, audit execution, and network access governance.  Public Reporting & Policy Revisions – Quarterly public audit reports, mandatory audit requirements, and strict data-sharing approvals.  Cost-Benefit Transparency – Annual reports on investigative outcomes vs. program costs and civil liberties impacts. Conclusion Page 292 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Chula Vista can protect public safety without eroding civil liberties. A temporary suspension, independent audit, and policy revisions will align the City’s ALPR program with state law, constitutional standards, and community expectations—just as Denver and other cities have done. Page 293 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications - PC Acosta - Received 9/18/2025 Page 294 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Michael Inzunza Have you consider getting Psychological evaluated. I have seen you act like a lunatic in public. I question your metal behavior. If you see something say Something! I also question why those sitting next to you, Do they NOT say something or do something about your mental solidity are they afraid of you? Or do they have empathy for you, However, they should all 911 with a 5150 code when you Michael Inzunza act ridiculous. Is not normal for an adult that is wants to me like a Kennedy. Written Communications - PC Acosta - Received 9/18/2025 Page 295 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda MICHAEL Inzunza ARE racists or a Bully? or Both ? You might have cause mental trauma calling an African American Kid a PUNK Written Communications - PC Acosta - Received 9/18/2025 Page 296 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Michael Inzunza The way I see it Your legacy, it will never be like the Kennedys. Your Legacy will be of one who was more focus on a little kid's hair that you verbally abuse Calling him a PUNK then YOU paying YOUR own phone Bill of $9,788 CATHOLIC SCHOOL THAT SUSPENDED STUDENT OVER BRAIDS REVERSES DECISION School district paid $9,788 for teacher Induna's cell phone use •GOVERNMENT LIES, CORRUPTION AND MISMANAGEMENT •By Leslie Wolf Branscomb UNION-TRIBUNE STAFF WRITER July 2, 2005 •From October 2001 through the end of last month the district paid $9,788.79 for Inzunza's cell phone bills. Written Communications - PC Acosta - Received 9/18/2025 Page 297 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications - PC Acosta - Received 9/18/2025 Page 298 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Michael Inzunza JUST TO REMAIND YOU THAT you lied to me. I will never believe what you say. nor will I ever trust you! Trust is like virginity. once you lose it you will never get it back. Written Communications - PC Acosta - Received 9/19/2025 Page 299 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Michael Inzunza JUST TO REMAIND YOU THAT you lied to me. I will never believe what you say. nor will I ever trust you! Trust is like virginity. once you lose it you will never get it back. Written Communications - PC Acosta - Received 9/22/2025 Page 300 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Michael Inzunza does RICHARD BARRERA know, that you Lie to me! and that I do not trust you? •and that according to, •Editor of Sweetwater Union High School District's Blurb Magazine • School district paid $9,788 for teacher Inzunza's cell phone use. •That you have not Repaid. •My Question to you Inzunza •donations you are asking for will they in fact go to •RICHARD BARRERA? •OR WILL YOU FUNNEL DONATIONS TO FINALLY PAY YOUR SCHOOL DISTRIC PHONE BILL OF •$9,788 for cell phone use? •Is a question Do not answer You lie to me before. • I do not believe whatever you say. •I Don’t Trust You INZUNZA Written Communications - PC Acosta - Received 9/22/2025 Page 301 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Michael Inzunza does RICHARD BARRERA know. that you Lie to me! and that I do not trust you! and that according to, Editor of Sweetwater Union High School District's Blurb Magazine School district paid $9,788 for teacher Inzunza's cell phone use. And tha You Michael Inzunza have not Repaid. School district paid $9,788 for teacher Induna's cell phone use •GOVERNMENT LIES, CORRUPTION AND MISMANAGEMENT •By Leslie Wolf Branscomb UNION-TRIBUNE STAFF WRITER July 2, 2005 •From October 2001 through the end of last month the district paid $9,788.79 for Inzunza cell phone bills. Written Communications - PC Acosta - Received 9/22/2025 Page 302 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Shelton – Received 9/23/2025 From: JeffShelton3 Sent: Tuesday, September 23, 2025 10:06 AM To: CityClerk <CityClerk@chulavistaca.gov> Cc: Asia Higa <AHiga@chulavistaca.gov> Subject: Public Comment Submission for September 23, 2025 City Council Meeting – ALPR Moratorium Request WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov Dear Ms. Bigelow, Please accept the following public comment for inclusion in the record for tonight’s City Council meeting on September 23, 2025. Public Comment – Agenda Item: General Public Comment Submitted by: Jeff Shelton, Chula Vista Resident I respectfully reiterate my formal request for the Chula Vista City Council to adopt a moratorium on the Flock Safety/ALPR camera surveillance program pending full public disclosure, oversight, and audit of its operations. My original written comment was submitted on August 22, 2025, and I appreciate the City Clerk’s office confirming that it has been carried forward to this meeting’s packet. I also appreciate acknowledgment from Council offices regarding my request to agendize this matter. However, as of this date: • The Chula Vista Police Department has yet to fulfill the public records request I submitted under the California Public Records Act and SB-34, despite the Page 303 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Written Communications – PC Shelton – Received 9/23/2025 significance of the information requested (retention logs, audit reports, access logs, and breach disclosures). • The public remains in the dark about who is accessing ALPR data, for what reasons, and whether those uses comply with California law, Chula Vista Police Department Policy §460, and constitutional privacy protections. • The contract with Flock Safety has serious civil liberties implications, yet there has been no formal public deliberation, no cost-benefit report, and no community consent. I formally request: 1. A temporary moratorium on all ALPR operations and Flock Safety agreements. 2. That this issue be placed as a formal agenda item at the next possible meeting. 3. Full community review and public hearing before any further continuation or expansion of the program. Thank you for ensuring this comment is entered into the record for tonight’s meeting. Sincerely, Jeff Shelton Chula Vista, CA 91913 Page 304 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda v . 0 0 5 P a g e | 1 September 23, 2025 ITEM TITLE Council Policies: Consider Revising and Adopting Council Policies on City Seal and Logo Use; Special Orders, Proclamations, and Certificates of Recognition; and Vending Machines in City Facilities; and Discuss Plaques-Dedication, and Special Events Report Number: 25-0242 Location: No specific geographic location Department: City Manager and City Attorney 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 1) Adopt of the resolution revising Council Policies 100-01 City Identification Program: Use of Seal and Logo; 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition; and 840-04 Public Vending Machines in City Facilities 2) Discuss and provide feedback on Council Policy 100-02 Plaques – Dedication, and 102-07 Special Events: Sponsorship, Endorsement, and Support SUMMARY Adoption of the resolution revises Council Policies 100-01 City Identification Program: Use of Seal and Logo, 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition, and 840-04 Public Vending Machines in City Facilities. Following the discussion and feedback from the City Council on Council Policy 100-02 Plaques – Dedication and 102-07 Special Events: Sponsorship, Endorsement, and Support, staff will return with possible proposed revisions for consideration. 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 Page 305 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 2 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. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Progress continues on the comprehensive review of approximately 160 policies adopted by the City Council since 1962. These policies serve as the official description of a City procedure, policy, or practice. A policy may derive from an ordinance, resolution, administrative regulation, or department policy. In fall of 2022, the City Manager initiated a review of City Council policies to identify policies for revision or recission, or any new policies that the City Council should consider for adoption. In the spring of 2024, a workgroup including staff from the City Manager, City Clerk, and City Attorney departments was formed to coordinate this effort. In November 2024, the City Council adopted changes to three policies and rescinded four policies. In May 2025, the City Council adopted changes to three policies and res cinded twelve policies. On August 09, 2025, the City Council adopted one new policy. Following another policy review, the City Council is asked to consider revising three policies and provide feedback on two policies. City Council Policies Recommended for Revision 1. 100-01 City Identification Program: Use of Seal and Logo Policy 100-01 City Identification Program: Use of Seal and Logo was established to provide guidelines for implementing the City identification program and consistent uses of the official lo gos and seal. The policy was last updated in 2005. Given operational changes in the last twenty years and the need to clarify that, in accordance with state and local law, the City Clerk serves as the custodian of the City seal, updates to the policy are necessary to ensure the continued integrity of the City’s identification program. Proposed revisions are provided in Attachment 1. Recommended Changes:  Add reference to the City Clerk being the custodian of the City seal, pursuant to California Government Code section 40801 and Chula Vista Charter section 502.  Detail authorized and prohibited uses of the City seal, alterations to the seal, and a process for exceptions to the seal’s use.  Detail authorized and prohibited uses of the City logos.  Update the policy regarding copyright protection of the logos and seal. 2. 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition Policy 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition, originally effective October 9, 1973 establishes a formal process for placement of items by City Page 306 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 3 Councilmembers under “Special Orders of the Day” that ensures efficient scheduling and distribution of items on City Council Meeting agendas and establishes the authority, criteria, and procedure for the issuance of proclamations and certificates of recognition. This policy was most recently updated in April 2025. Updates to the policy are recommended for removal of ambiguity and to clarify procedures consistent with the intent of the policy. Proposed revisions are provided in Attachment 3. Recommended Changes:  Clarify that proclamations and certificates of recognition may only be presented by City officials or their staff.  Clarify basis for denial of request to issue proclamations.  Clarify process to notify the City Clerk for documentation of intent to present proclamations.  Add time frame for exclusive ability to issue a proclamation.  Clean-up and clarify language throughout. 3. 840-04 Public Vending Machines in City Facilities Policy 840-04 Public Vending Machines in City Facilities, originally adopted May 23, 2006, outlines the nutritional standards for the food and drinks that are appropriate for vending to the public at City of Chula Vista facilities and set guidelines for vendors to stock machines. The Policy requires all vending machines in City-owned facilities to meet state nutritional standards and provide healthier food and beverage options, particularly in spaces serving children, seniors, and other community members. In 2016, through the Healthy Chula Vista Action Plan, staff identified that the City’s vending contractor was not in compliance, and over the next year solicited new operators, ultimately requiring two separate contracts to service the City’s thirty- eight machines. In recent years, however, contractors have been increasingly unresponsive to malfunctions, maintenance, and restocking, leading the City to issue RFP No. P22-2024 in February 2024. Compass Group USA, Inc., through its Canteen Division, was selected as the most qualified and entered into Agreement No. 2024-267, effective October 1, 2024, through September 30, 2027, with two optional one-year extensions through 2029. While Canteen’s “Choice Plus” line of healthy alternatives aligns with the Policy, case studies at Kaiser, Scripps, and UCSD showed that requiring 100% healthy vending results in higher waste rates and consumer dissatisfaction; as such, a balanced approach is recommended. Since implementation, Canteen has maintained a 1.2% waste rate, well below the 2.4% threshold. On March 13, 2025, proposed revisions to Council Policy 840-04 were presented to the Health, Wellness, and Aging Commission for public comment and advisory recommendation to City Council. Proposed revisions are provided in Attachment 4. Recommended Changes:  Amended the Beverage Standards to have 50% of all beverages in each vending machines to meet Choice Plus standards.  Amended the Snack Standards to have 50% of all snacks and foods in each vending machines to meet Choice Plus standards.  Clean-up and clarify language throughout. Page 307 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 4 City Council Policy for Discussion 1. 100-02 Plaques - Dedication At a Council meeting held February 20, 1996, the City Council concurred that there should be a Council Policy regarding dedication plaques for major projects. The policy states that the current serving elected officials, appropriate board/commission members, and staff at the time of dedication are to be listed on plaques for major projects. When a plaque is to be prepared staff will provide an informational memo to Council. If Council wants to consider an exception to the policy, the item can be agendized. Staff is requesting a discussion and feedback on any possible revisions to the Council Policy provided as Attachment 5. 2. 102-07 Special Events: Sponsorship, Endorsement, and Support The purpose of the City of Chula Vista’s sponsorship of special events is to enhance the vitality, quality of life, community engagement and economic prosperity of Chula Vista through the support of large-scale special events held within the City. Staff is requesting a discussion and feedback on any possible revisions to the Council Policy and will return to Council with any changes and a Special Events Guide for adoption at a future meeting. Proposed revisions are provided in Attachment 6. 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 Councilmember, 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. Policy 100-01: City Identification Program: Use of Seal and Logo – Proposed Revisions 2. City of Chula Vista Graphic Standards Handbook – Using the Logo Properly 3. Policy 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition 4. Policy 840-04: Public Vending Machines in City Facilities – Proposed Revisions 5. Policy 100-02: Plaques – Dedication 6. Policy 102-07 Special Events: Sponsorship, Endorsement, and Support 7. City of Chula Vista Special Events List Page 308 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda P a g e | 5 Staff Contact: Marco Verdugo, City Attorney Courtney Chase, Deputy City Manager Lois Yum, Special Projects Manager Kerry Bigelow, City Clerk Stacey Kurz, Director of Housing and Homeless Services Joy Whatley, Director of Library Services Page 309 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Form Rev 3/6/2023 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REVISING CITY COUNCIL POLICIES 100-01 CITY IDENTIFICATION PROGRAM: USE OF SEAL AND LOGO; 111-02 COUNCIL PRESENTATIONS: SPECIAL ORDERS OF THE DAY, PROCLAMATIONS, AND CERTIFICATES OF RECOGNITION, AND 840-04 PUBLIC VENDING MACHINES IN CITY FACILITIES WHEREAS, City Council policies are the official description of a City procedure, policy or practice; and WHEREAS, the City is in the process of reviewing City Council policies to identify which ones need revisions and which ones can be rescinded; and WHEREAS, first adopted in 1985, Council Policy 100-01 City Identification Program: Use of Seal and Logo was approved to provide guidelines for consistent and authorized uses of the City’s official seal and logo, which serve as symbols of the City’s authority, integrity, and unified identity; and WHEREAS, the City Council desires to update Council Policy 100-01 City Identification Program: Use of Seal and Logo, attached hereto as Exhibit 1, to ensure clarity of guidelines, consistency in application across City departments, and continued protection of the City’s official marks; and WHEREAS, Policy 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition, originally effective October 9, 1973 establishes a formal process for placement of items by City Councilmembers under “Special Orders of the Day” that ensures efficient scheduling and distribution of items on City Council Meeting agendas and establishes the authority, criteria, and procedure for the issuance of proclamations and certificates of recognition; and WHEREAS, the City Council desires to update Council Policy 111-02, attached hereto as Exhibit 2, to remove ambiguity and to clarify procedures consistent with the intent of the policy; and WHEREAS, first adopted in 2006, Council Policy 840-04 Public Vending Machines in City Facilities was approved to establish nutritional standards for food and beverages sold in public vending machines located in City facilities, supporting the City’s interest in public health; and WHEREAS, the City Council desires to update Council Policy 840-04 Public Vending Machines in City Facilities, attached hereto as Exhibit 3, to improve clarity of nutritional guidelines, ensure alignment with updated state standards, and promote healthier options for the community. Page 310 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Resolution No. Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves revised Council Policies 100-01 City Identification Program: Use of Seal and Logo, 111-02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition, and 840-04 Public Vending Machines in City Facilities, attached hereto as Exhibits 1, 2, and 3 respectively, in the forms presented, with such minor modifications as may be required or approved by the City Attorney. Presented by Approved as to Form by Courtney Chase Marco A. Verdugo Deputy City Manager City Attorney Page 311 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City Identification Program: Use of Seal and Logo POLICY NUMBER: 100-01 Effective Date: 08/06/1985 Last Revised Date: 09/13/200509/23/2025 Status: Active Page: 1 of 4 I. BACKGROUND On August 6, 1985, the City Council adopted a new City seal and a new City logo. On September 13, 2005, the City Council approved an acceptable alternative version of the City logo to accommodate horizontal layouts. These symbols of the City form the basis for a comprehensive identification program, which includes consistent use of the City’s seal and logos. The identification program is intended to present a unified, positive impression that is readily recognizable. Proper implementation of the City’s identification program should eliminate uncoordinated or unauthorized representations of the City, such as various graphic symbols, designs, layouts and colors. A “Graphic Standards” handbook provides detailed information on the proper use of both versions of the logo. The City Manager or their designee will update the Graphic Standards handbook as needed to maintain the integrity of the City’s identification program. The City Seal is a symbol of the City's authority and integrity. Its use must be strictly controlled to maintain its sanctity and ensure it represents the official actions and interests of the City. By law, the City Seal is maintained by the City Clerk as part of the official duties and responsibilities of the office (California Government Code section 40801 and Chula Vista Charter section 502). The City Seal serves as an official mark of the city and is used to authenticate and validate official documents, such as resolutions, ordinances, contracts, and other legal and administrative documents.To assist with the implementation of the identification program, on September 13, 2005 the City Council adopted a handbook that provides detailed information on the proper use of both versions of the logo. The City Clerk’s role in maintaining the seal ensures that it is used properly and consistently in accordance with the city's rules and legal requirements. By keeping the seal in their possession, the City Clerk ensures its security and proper use, and that it is not misused or forged. This responsibility is part of the City Clerk’s broader role in maintaining public records and ensuring that the City’s official documents are properly handled and archived. II. PURPOSE The purpose of this policy is to provide guidelines for the implementation of the City’s identification program and consistent uses of the official logos and seal. III. POLICY The City Council establishes the following policy concerning all uses of the City’s seal and logos: Page 312 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City Identification Program: Use of Seal and Logo POLICY NUMBER: 100-01 Effective Date: 08/06/1985 Last Revised Date: 09/13/200509/23/2025 Status: Active Page: 2 of 4 City Seal 1. Authorized Use a. The City Seal shall be used exclusively for official city purposes, including but not limited to: i. Authentication of official documents (e.g., ordinances, resolutions, contracts, and other legal instruments). ii. Certifications of official actions by the City Council, City Manager, and other authorized officials. iii. Correspondence, proclamations, and other documents that require formal recognition of the City’s authority. b. The City Seal may also be used for: i. Apparel: Official clothing provided for the exclusive use of elected officials, executive staff, and staff assigned to elected offices, including but not limited to jackets, shirts, and other items worn at official functions or events. ii. Business Cards: Business cards for elected and appointed officials, where the Seal is used to represent the official capacity of the individual. iii. City Stationery: Letterheads, envelopes, and other official City stationery for use in correspondence and communications that are conducted in the official capacity of the City. c. Except as otherwise expressly provided in this policy, the City Seal may only be affixed to documents by the City Clerk, or other individuals expressly authorized by the City Clerk, in accordance with this policy. 2. Prohibited Use and Alteration a. The City Seal may not be used for any unofficial, personal, or commercial purposes. b. The official City Seal graphic files must not be altered, modified, or edited in any way. This includes changes to the proportions, colors, design elements, or text of the Seal. The City Seal must remain intact and unmodified in its original form for all official uses. c. Unauthorized use of the City Seal on materials, communications, or events that do not serve the interests of the City or its government functions is prohibited. 3. Exceptions a. Exceptions to the allowable use of the City Seal may be granted under specific circumstances. All requests for exceptions must be submitted in writing to the City Clerk, detailing the purpose and intended use of the City Seal. The City Clerk will review and seek approval from the City Council or City Manager before granting an exception. City Logo 1. Authorized Use Page 313 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City Identification Program: Use of Seal and Logo POLICY NUMBER: 100-01 Effective Date: 08/06/1985 Last Revised Date: 09/13/200509/23/2025 Status: Active Page: 3 of 4 a. Except for specific ceremonial uses of the City Seal, the City logos will be the sole identifying symbol used on official City stationery, signage, vehicles, and other items appropriate for City identification. b. The City logo must be the primary visual identifier for the City in all materials, replacing the use of the City Seal in most contexts, with the exception of ceremonial uses and other uses provided for in this policy. 2. Consistency in Logo Usage a. Use of the logos will be consistent Citywide, including size, associated typeface styles, layout, colors, and all other related design elements, as indicated in the handbook. b. The logo must always be in accordance with the standards outlined in the Graphic Standards Handbook to preserve its visual integrity. 3. Use for City Departments and Divisions a. The City logo may be used to identify specific City departments, divisions, etc., using a standardized format and typeface outlined in the Graphic Standards Handbook. b. Departments must use the approved standard City logo. Any request for a department-specific logo must be submitted to the Communications Division for City Manager’s review and approval. Departments are not authorized to create or use logos outside of this process. 4. Approval Process a. All proposed uses of the logos will require approval by the City Manager or their designee before implementation. Individual business cards, City stationery, signage and all other materials containing the logos and seal must conform to the standards of the identification program. Copyright Protection 1. The City Attorney will secure and maintain current copyrights for the logos and seal to protect the City from unauthorized use. The City logo copyright was obtained on June 6, 2017, renewed on December 7, 2023 and in effect until December 2027. 1. Use of the City seal will be limited to specific ceremonial applications such as proclamations, special certificates, and plaques. Exceptions to this limitation will require the advance approval of the City Manager or his/her designee. 2. Except for specific ceremonial uses of the City seal, the logos will be the sole identifying symbol used on City stationary, signage, vehicles and other items appropriate for City identification. Page 314 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City Identification Program: Use of Seal and Logo POLICY NUMBER: 100-01 Effective Date: 08/06/1985 Last Revised Date: 09/13/200509/23/2025 Status: Active Page: 4 of 4 3. Use of the logos will be consistent City-wide, including size, associated type face styles, layout, colors and all other related elements, as indicated in the handbook. 4. Appropriateness of the use of the horizontal logo will be determined by the City Manager or his/her designee. IV. PROCEDURE 1. All proposed uses of the logos and seal will require approval by the City Manager or his/her designee prior to implementation. Individual business cards, City stationery, signage and all other materials containing the logos and seal must be in conformance to the standards of the identification program. 2. The City Attorney will secure copyrights for the logos and seal to protect the City from their unauthorized use. HISTORY DATE ACTION RESOLUTION NO. Page 315 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda GRAPHIC STANDARDS Page 316 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Logo The logo is the visual manifestation of the City of Chula Vista’s marketing strategy. The purpose of the logo is to deliver a consistent, specific, and positive impression of the City through all communications to the public. The City of Chula Vista implemented its logo in August, 1985. The symbol characterizes the natural elements that make Chula Vista unique. The sun radiates warmth in the mountainous regions of the east while ocean waves in the foreground capture the essence of Chula Vista’s scenic bayfront. The successful branding of the City of Chula Vista logo will be accomplished with the correct, consistent and uniform use of the City’s identity. All employees and vendors developing collateral, signage and other materials must observe the graphic standards outlined in this handbook. Strict adherence to the principles outlined in the following pages will ensure that the City’s image remains identifiable, unique and unadulterated. These logo specifications are intended to be basic and, while not attempting to elaborate extensively on technical detail, they do offer sufficient information to prevent the incorrect use of the City logo. Established August 1985: The City of Chula Vista logo The City logo will be the sole identifying symbol used on City stationery, signage, vehicles, and other collateral or items appropriate for City identification. Page 317 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda The best possible representation of the City of Chula Vista logo must be achieved in order to maintain the consistency of visual identification. The symbol is the artistically rendered component of the logo. The symbol should NEVER be used alone. The logotype consists of the words "CITY OF" that follow the symbol when forming the City of Chula Vista signature. The wordmark is the hand-rendered, letterforms that work together to communicate the city name, "CHULA VISTA." The City of Chula Vista logotype and wordmark have both been specially kerned, meaning that the letterspacing has been adjusted manually for the best possible appearance. No other fonts or letterforms can be substituted. Additionally, all three elements of the logo have been strategically placed in the space relative to one another. Symbol Logotype Wordmark Page 318 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Primary Logo PRIMARY LOGO The City of Chula Vista logo can be thought of as a "leave behind" in the memory bank of the viewer, as it is the first real visual impression that is made. It helps to brand the City's identity by providing an image to help viewers associate with the name. This unique graphic expression of individuality is to the City what a handwritten signature is to a person. Therefore, the logo must always be consistent in appearance and color. ALTERNATIVE HORIZONTAL LOGO The primary logo should be used in most cases, however, there will be times when the imprint area will lend best to the horizontal logo. When the size of the primary logo is compromised because it would be proportionally reduced too much in order to fit within the space (and still adhere to clear space), it is permissable to use the alternative horizontal logo. The same basic graphic standards apply to the horizontal logo as the primary logo. Alternative Horizontal Logo Page 319 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda EXAMPLES Primary Logo (USED CORRECTLY)Alternative Horizontal Logo (USED CORRECTLY) NEVER resize any of the elements in the logo. NEVER re-typeset the logotype or wordmark in a different font. NEVER use the symbol alone. NEVER rearrange the elements in the logo. NEVER leave off an element of the logo. CITY OF CHULA VISTA NEVER re-typeset the logotype or wordmark in a different font. CITY OF CHULA VISTA Page 320 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Logo Colors Color provides a powerful means of visual recognition. The City of Chula Vista has chosen one specific PMS (Pantone Matching System) color: 294. Other colors can also be used to provide flexibility. If the color is not PMS 294, the chosen color must blend well into the specific layout or match the color scheme of each piece. Navy Pantone 294 Black Green Pantone 349 Background Colors As with the City of Chula Vista signature, the background color should also be treated with a great deal of visual respect, as it assists in providing a clean, consistent space in which the signature is to be placed. When all colors are successfully applied together, the City's graphic identity creates more impact. Background colors should always compliment the signature, but never compete. It is important that the City of Chula Vista signature be placed on a background color that allows it to stand out. DARK BackgroundsLIGHT Backgrounds Examples: Examples: Page 321 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda EXAMPLES Logo color needs to stand out on light backgrounds.Burgundy is fine to use, but the color tends to be a challenge to print. NO outlines. NO dropshadows. The entire signature must be in the same color. Signature Colors Background Color s Logo color needs to stand out on dark backgrounds. Page 322 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda In order to command attention, the City of Chula Vista signature must always have a certain amount of clear space around it. It should not be crowded or overwhelmed by other elements competing for the space. If placed within a cluttered environment, the logo's message risks becoming obscured and insignificant. As a general rule, make the amount of clear space even larger when possible. The required minimum clear space can be measured in relation to the height of the symbol "x". The clear space around the City of Chula Vista signature requires at least 1/2x of space surrounding the entire signature: top and bottom; left and right. Clear Space around Secondary Signature: Note that the size of the symbol remains consistent. 1/2x 1/2x 1/2x 1/2x Clear Space around Primary Signature: x 1/2x 1/2x 1/2x 1/2x 1/2x Page 323 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: COUNCIL PRESENTATIONS – Special Orders of the Day, Proclamations, and Certificates of Recognition POLICY NUMBER: 111-02 Effective Date: 10/09/1973 Last Revised Date: 04/15/2025 Status: Active Page: 1 of 4 I. BACKGROUND The City Council frequently receives presentations at City Council Meetings under “Special Orders of the Day.” It is current practice for the Mayor and City Manager to review and approve requests for placement of items under “Special Orders of the Day.” “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. Proclamations may be presented during City Council Meetings under “Special Orders of the Day” and outside of City Council Meetings at the discretion of the Mayor and City Council subject to the requirements of this Policy and all other applicable laws, policies, ordinances, rules, and regulations. II. PURPOSE To establish a formal process for placement of items by City Councilmembers under “Special Orders of the Day” that ensures efficient scheduling and distribution of items on City Council Meeting agendas and to establish the authority, criteria, and procedure for the issuance of proclamations and certificates of recognition. III. POLICY Special Orders of the Day Requests by City Councilmembers for items to be placed under "Special Orders of the Day" at an upcoming City Council Meeting must be made in writing to the Mayor by no later than 5:00 p.m. on the day falling six days prior to the requested Council Meeting (e.g., the Wednesday preceding an upcoming Tuesday Council Meeting). Transmission of a request by email will satisfy this requirement. To be considered, requests should include a brief description of the item, the identity of any presenters, an estimate of the duration of any presentation and any timing requirements. Any such request will be subject to approval by the Mayor. Approved items will be scheduled and added to the agenda in consultation with the City Manager and as soon as practical in light of the business demands of upcoming agendas and any identified timing requirements. In the event the Mayor elects to not authorize a proposed request from the City Councilmember(s) in a reasonable timeframe, a Councilmember may request approval for a proposed proclamation to be placed under "Special Orders of the Day" by the full City Council by placing the item on Page 324 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: COUNCIL PRESENTATIONS – Special Orders of the Day, Proclamations, and Certificates of Recognition POLICY NUMBER: 111-02 Effective Date: 10/09/1973 Last Revised Date: 04/15/2025 Status: Active Page: 2 of 4 the agenda in accordance with Council Policy 111-04. To prevent duplicate requests under Special Orders of the Day, the first member of council to submit a request shall present the proclamations. In addition to the Mayor's authority, the City Manager also may place items under "Special Orders of the Day" as deemed appropriate. Proclamations It is the policy of the City that proclamations shall be presented in accordance with the criteria below: 1. Proclamations presented during City Council Meetings shall bear the signatures of the Mayor and all City Councilmembers unless the Mayor or a Councilmember opts out of signing a proclamation. 2. Proclamations are approved by the Mayor. 3. Proclamations may be presented to acknowledge: A. individual or group achievement and contributions to the City; B. individuals, groups, organizations, or businesses with a connection to the City for milestones or major achievements that have community-wide significance; C. civic celebrations; or D. local, community, regional, state, or national occasions significant to the City of Chula Vista. 4. Proclamations may only be presented by City officials or their staff. 4.5. Mayoral and City Council District Proclamations A. Mayoral Proclamations. Mayoral Proclamations may be presented by the Mayor outside of a City Council Meeting and shall only bear the signature of the Mayor. i. Mayoral Proclamations may be presented to acknowledge: a. individual or group achievement and contributions to the City; b. individuals, groups, organizations, or businesses with a connection to the City for milestones or major achievements that have community-wide significance; c. civic celebrations; Page 325 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: COUNCIL PRESENTATIONS – Special Orders of the Day, Proclamations, and Certificates of Recognition POLICY NUMBER: 111-02 Effective Date: 10/09/1973 Last Revised Date: 04/15/2025 Status: Active Page: 3 of 4 d. local, community, regional, state, or national occasions significant to the City of Chula Vista. ii. The Mayor shall notify the City Clerk in writing of their intent to present a proclamation. B. City Council District Proclamations. City Councilmembers may request to present City Council District Proclamations outside of City Council Meetings on behalf of the City with approval by the Mayor. i. City Council District Proclamations may be presented to acknowledge: a. individual or group achievement and contributions to the community within the City Council District; and b. individuals, groups, organizations, or businesses with a connection to the City Council District for milestones or major achievements that have community-wide significance; and/or c. civic celebrations. ii. City Councilmembers shall submit requests for City Council District Proclamations to the Office of Mayor in writing at least ten days prior to the date the document is requested. Transmission of a request by email will satisfy this requirement. Requests shall include: a. Information and/or example(s) of how the request meets the criteria outlined in this policy; b. Any background or historical information; c. Notable qualities or characteristics of any individual or group(s) which would be honored; and d. Other information pertinent to the request. iii. City Council District Proclamations shall bear only the signature of the District Councilmember. iv. If the request meets the above-mentioned criteria and is approved, Council staff shall prepare the document. v. The requests for City Council District Proclamation shall be deemed approved if no response is received within ten days. vi. In the event the Mayor elects to not authorize a proposed request from the City Councilmember(s), a Councilmember may request approval of a proposed proclamation by the full City Council by placing the item on the agenda in accordance with Council Policy 111-04. The basis for non-approval shall be failure to demonstrate compliance with Sections 5.B.i or 5.B.ii of this Policy. vi.vii. City Councilmembers shall notify the City Clerk in writing of their intent to present the proclamation. Certificates of Recognition Page 326 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: COUNCIL PRESENTATIONS – Special Orders of the Day, Proclamations, and Certificates of Recognition POLICY NUMBER: 111-02 Effective Date: 10/09/1973 Last Revised Date: 04/15/2025 Status: Active Page: 4 of 4 Certificates of recognition may be issued to recognize and honor individuals or organizations for their achievements or contributions to the City. Certificates of recognition may only be presented by City officials or their staff Documentation The respective official that presents intends to present the proclamation or presents a certificate of recognition shall notify the City Clerk in writing. The City Clerk shall maintain a centralized log tracking all proposals to issue proclamations and all proclamations and certificates of recognition submitted. All proposals to issue proclamations should shall be submitted first to the Mayor for approval, then and to the City Clerk for documentation, . The official that first submits the proposal to present a proclamation to an individual, group, organization, or business with the City Clerk shall have the exclusive opportunity to present the proclamation within 30 days of the requestwith issuance granted on a first-requested basis. HISTORY DATE ACTION RESOLUTION NO. Page 327 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: Public Vending Machines in City Facilities POLICY NUMBER: 840-04 Effective Date: 05/23/2006 Last Revised Date: 09/23/2025N/A Status: Active Page: 1 of 3 I. PURPOSE It is the goal of the City of Chula Vista and in the interest of public health to provide healthy options in all public vending machines located in City of Chula Vista facilities including, but not limited to, parks, community centers, gymnasiums, libraries and any other City of Chula Vista building, structure or complex. The purpose of this policy is to establish nutritional standards for the food and drinks that are appropriate for vending to the public at City of Chula Vista facilities and set guidelines for vendors to stock machines. The nutrition standards are based on standards set by California SB 19, the Pupil Nutrition, Health, And Achievement Act of 2001, SB 12, the School Nutrition Standards, and recommendations from the San Diego Regional Nutrition Network and Healthy Eating, Active Communities, an initiative of the California Endowment. II. POLICY All public vending machines at any City of Chula Vista facilit y shall meet the following nutrition standards. 1. Beverages: 50% of all Beverages in each vending machine shall meet the criteria in Section A. Beverages are limited to a portion size no greater than 12 ounces (no limit on water). Note: If juices were available in smaller sizes portions (6 ounces), they would be preferred. a. Beverages offered in each vending machine shall be one or a combination of the following: i. Unsweetened still and sparkling flavored and unflavored watersWater ii. Low-fat and non-fat dairy and non-dairy milk, both sweetened and unsweetened. Items must be 150 calories or less per packageNon Fat or 1% low fat milk (including soy or cow's milk, chocolate or other flavored milk not containing more than 15 grams of added sugar per 250 gram serving or 3 tsp sugar per 1 cup milk) iii. Fruit juice that is at least 50% juice with no added sweetener that is 150 calories or less per package100% fruit/vegetable juice iv. Vegetable juice or fruit-vegetable juice blends that are 100% juice with no added sweeteners. These juices should be 150 calories or less per package and have 150 milligrams or less of sodiumFruit based drinks containing at least 50%juice and no added caloric sweeteners Page 328 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: Public Vending Machines in City Facilities POLICY NUMBER: 840-04 Effective Date: 05/23/2006 Last Revised Date: 09/23/2025N/A Status: Active Page: 2 of 3 v. Zero-calorie sweetened beverages (excluding energy drinks and drinks with more than 150 milligrams of sodium per packageAll other non-caloric beverages, including diet sodas v. vi. Lightly sweetened beveragesSports Drinks less than or equal to 100 calories vi. Unsweetened coffee, tea, and coconut water vii. 2. Snacks/Foods: 50% of all sSnacks/foods offered in each vending machine shall meet all the criteria in Section A per Individual package: a. Criteria per individual package: i. No more than 250 calories ii. Not more than 35% of calories from fat with the exception of nuts and seeds; snack mixes and other foods of which nuts are a part of must meet the 35% standard iii. Not more than 10 grams of fat, of which no more than 3 grams of % of calories from saturated fat and 0 grams of trans fat iv. No more than 230 mg of sodium per servingNot more than 35% total weight from sugar and caloric sweeteners with the exception of fruits and vegetables that have not been processed with added sweeteners or fats v. No more than 20 grams of sugar per servingNot more than 360 mg of sodium per serving. b. At least one item meeting the snack criteria in each vending machine shall also meet the FDA definition of “low sodium" (less than 140 mg per serving) c. It is recommended that vending machines have items that contain at least 2 grams of dietary fiber d. It is recommended that snack foods do not contain trans fats added during processing (hydrogenated oils and partially hydrogenated oils) III. PROCEDURE The nutrition standards shall apply as follows: 1. Facilities All public and employee vending machines in City of Chula Vista facilities.The nutrition standards shall apply as follows:  100% of the contents of the snack vending machines located in these facilities will be required to meet the nutrition standards. Page 329 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: Public Vending Machines in City Facilities POLICY NUMBER: 840-04 Effective Date: 05/23/2006 Last Revised Date: 09/23/2025N/A Status: Active Page: 3 of 3  100% of the contents of the drink vending machines located in these facilities will be required to meet the nutrition standards. 2. Implementation The policy shall be implemented not later than 90 days from the date hereof and enforced by contract administrator and/or their designee. HISTORY DATE ACTION RESOLUTION NO. Page 330 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: Plaques - Dedication POLICY NUMBER: 100-02 Effective Date: 02/20/1996 Last Revised Date: N/A Status: Active Page: 1 of 1 I. BACKGROUND At a Council meeting held February 20, 1996, the City Council concurred that there should be a Council Policy regarding dedication plaques for major projects. II. POLICY The current serving elected officials, appropriate board/commission members, and staff at the time of dedication are to be listed on plaques for major projects. When a plaque is to be prepared staff will provide an informational memo to Council. If Council wants to consider an exception to the policy, the item can be agendized. HISTORY DATE ACTION RESOLUTION NO. Page 331 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City of Chula Vista Special Events: Sponsorship, and Endorsement, and Support Policy POLICY NUMBER: 102-07 Effective Date: 05/05/2015 Last Revised Date: N/A Status: Active Page: 1 of 4 I. BACKGROUND The City of Chula Vista is committed to holding special events that promote Chula Vista and attract residents and visitors and recognize groups or businesses that have a meaningful impact to the community. It is the City of Chula Vista’s intent to further promote events held within the cCity. This policy addresses the processing of requests for City sponsorship, or endorsement, or support. II. PURPOSE The purpose of the City of Chula Vista’s sponsorship of special events is to enhance the vitality, quality of life, community engagement and economic prosperity of Chula Vista through the support of large-scale special events held within the cCity. The purpose of the City of Chula Vista’s endorsement of special events is to help support community events held within the cCity. City endorsement will increase the quality of the event and demonstrate the Council’s commitment to sponsoring and endorsing activities that support and celebrate our vibrant community. The purpose of the City of Chula Vista’s support of special events is to fund special events held by a group or business that are recognized as providing a community benefit within the city. City funding will increase the quality of the event and demonstrate the City’s support for groups or businesses that have a meaningful impact to the community. This special event sponsorship, endorsement and support and policy is declaratory of Chula Vista’s existing administrative practice regarding the classification of events as sponsored, or endorsed, or supported by the City of Chula Vista. This policy will provide guidance for staff and event planners as to the process for collaborating with the City. III. POLICY 1. A “Sponsored” event is defined as a special event in which the City provides underwriting, significant staff support and/or services as well as funding from the General Fund. A majority of the City Council must vote to “Sponsor” a special event unless an appropriation is necessary, which requires a 4/5th Page 332 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City of Chula Vista Special Events: Sponsorship, and Endorsement, and Support Policy POLICY NUMBER: 102-07 Effective Date: 05/05/2015 Last Revised Date: N/A Status: Active Page: 2 of 4 vote of the City Council. Sponsored events may be led by the City’s Special Events Manager or individual departments make take the lead. 2. An “Endorsed” event is defined as a special event in which the City helps facilitate the special event process with staff support at the discretion of the City Manager or his/her designee. 3. A “Supported” event is defined as a special event hosted by a group or business that is recognized as providing a community benefit in which the City provides funding of up to $10,000 from the General Fund at the discretion of the City Manager. Both sSponsored, and endorsed and supported special events may use the City name and logo in their promotions in accordance with City Council Policy 100-01 City Identification Program Use of Seal and Logo, with prior approval from the City Manager or his/her designee before printing/dissemination. Sponsored Events A request to have the City sponsor an event must undergo review to determine its relevance and appropriateness to the City’s special event purpose. The City Council will review the merits of the requested sponsorship, keeping in mind the criteria listed above, to determine whether the event fits the overall conditions of a sponsored event. The City reserves the right to reject or conditions its involvement at its sole discretion, subject to applicable local, state and federal laws. Furthermore, the following criteria will be used when considering requests for City of Chula Vista sponsorship:  By majority vote, the City Council may provide sponsorship of special events that are brought forth by a City Councilmember, who is assuming responsibility as the event “leader.” In addition, to be considered for City Council sponsorship, a Councilmember should request sponsorship at least six months prior to the actual date of the event.  Sponsored events are major public events that attract large numbers of visitors and community participants to the City. Sponsored events generate significant, documented levels of financial and/or promotional return to the City. Examples of past City sponsored events include HarborFest Page 333 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City of Chula Vista Special Events: Sponsorship, and Endorsement, and Support Policy POLICY NUMBER: 102-07 Effective Date: 05/05/2015 Last Revised Date: N/A Status: Active Page: 3 of 4 and the Starlight Parade. Sponsored events should celebrate our City’s cultural diversity and rich heritage. Budget for Sponsored Special Events The City Manager’s proposed budget shall provide a recommended level of funding for special events based on the criteria noted above. These funds will be used to partially underwrite sponsored events for the upcoming fiscal year. Each sponsored event Council “leader”, as noted above, will work with staff to have a budget set forth for the event. The Finance Department will establish a deposit account fortrack expenditures and revenues for each event and provide the City Council a final accounting of the City’s sponsorship following the event upon request. Responsibility for Sponsored Events Responsibility for each sponsored event will be divided:  The City Manager or his/her designee will be responsible for overall City participation in event coordination, staff support and the establishment of a budget for each event.  Events may require contracting an outside professional events coordinator to help with planning and logistics. The cost of the outside professional events coordinator shall be included in the budget for each sponsored event. If the outside events coordinator is under City contract, they will be retained and managed by the City Manager or his/her designee.  If fundraising is necessary, a designated Councilmember will be the lead for City participation in the raising of funds (through sponsorships or direct donations) to make up the difference between the City budgeted allocation of funds and the actual event cost. Each event will require close coordination and regular communication among responsible parties. Endorsed Events A request to have the City endorse an event must undergo review to determine its relevance and appropriateness to the City’s special events purpose. The City will review the merits of the requested endorsement, keeping in mind the criteria listed above, to determine whether the event fits the overall conditions of an endorsed event. The City reserves the right to reject or condition its involvement at its sole discretion, subject to applicable local, state and federal laws. Page 334 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City of Chula Vista Special Events: Sponsorship, and Endorsement, and Support Policy POLICY NUMBER: 102-07 Effective Date: 05/05/2015 Last Revised Date: N/A Status: Active Page: 4 of 4 At his/hertheir discretion, the City Manager or his/hertheir designee may provide endorsement of special events that fall into one of the following categories:  Special events sponsored by governmental and educational institutions.  Special events sponsored by organizations that support the City of Chula Vista’s operations (such as the Friends of the Library, Fire Fighters Foundation, Friends of Chula Vista Parks and Recreation, and the Chula Vista Police FoundationActivity League). In addition, to be considered for City endorsement, an event applicant should request endorsement from the City Manager at least three months prior to the actual date of the event. If an event fails to meet the criteria listed above, the event can be proposed for endorsement through the City Council. A majority of the City Council must vote to “Endorse” a special event under this provision. Supported Events A request to have the City support an event must undergo review to determine its relevance and appropriateness to the City’s special events purpose. The City will review the merits of the requested support, and review for above, to determine whether the event fits the overall conditions of a supported event. The City reserves the right to reject or condition its involvement at its sole discretion, subject to applicable local, state and federal laws. At their discretion, the City Manager may provide up to $10,000 to sponsor an event that fall into one of the following categories:  Special events sponsored by governmental and educational institutions.  Special events sponsored by organizations that support the City of Chula Vista’s operations (such as the Friends of the Library, Fire Fighters Foundation, Friends of Chula Vista Parks and Recreation, and the Chula Vista Police Foundation).  Special events sponsored by a group or business that is recognized as providing a community benefit (Chula Vista Chamber of Commerce) In addition, to be considered for City endorsement, an event applicant should request support from the Page 335 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda CITY COUNCIL POLICIES POLICY NAME: City of Chula Vista Special Events: Sponsorship, and Endorsement, and Support Policy POLICY NUMBER: 102-07 Effective Date: 05/05/2015 Last Revised Date: N/A Status: Active Page: 5 of 4 City Manager at least one month prior to the actual date of the event. If an event fails to meet the criteria listed above, the event can be proposed for endorsement through the City Council. A majority of the City Council must vote to “Support” a special event under this provision. HISTORY DATE ACTION RESOLUTION NO. Page 336 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Event Month Event Lead Department July Fourth Fest Library- Special Events August Harborfest Library- Special Events December Starlight Parade/Festival Library- Special Events Event Month Event Lead Department August Downtown Chula Vista Lemon Festival Downtown Chula Vista Association December Tree Lighting Downtown Chula Vista Association Event Month Event Lead Department June/July Chamber of Commerce Installation Dinner Camber of Commerce April Day of the Child CV Community Collaborative Event Month Event Lead Department/Agency February Walk a Dog Day Animal Services Spring Egg Hunt Fire/CV FF Foundation April South Bay Earth Day Sustainability May Award & Recognition Ceremony Police May Safety Patrol Major Day Police July San Diego Pride Parade Police July Fire Station Pancake Breakfast Fire/CV FF Foundation August National Night Out Police September Chula Vista Art Fest Library (Cultural Arts) September Champions Run Parks & Recreation September Evening w/Heroes Police/CV Police Foundation September Shoe & Sock Police/CV Police Foundation September SBCS Neighbor Day Police October Beautify Chula Vista Sustainability October Christmas in October Fire October Fire Safety Week/Open House Fire October Open House Animal Services November Veteran's Day Parade Police December Holiday Meal Giveaway Police/CV Police Foundation City of Chula Vista Sponsored, Endorsed & Supported Events City Sponsored Events External Endorsed Events City Department Sponsored Events External Supported Events Page 337 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Council Policies: Consider Revising and Adopting Council Policies on City Seal and Logo Use; Special Orders, Proclamations, and Certificates of Recognition; and Vending Machines in City Facilities; and Discuss Plaques - Dedication, and Special Events September 23, 2025 Page 338 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Council Policy •Official description of a City procedure, policy, or practice •Approved by the City Council •Policy may derive from an ordinance, resolution, or administrative regulation Page 339 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Council Policy Review The comprehensive review of approximately 160 policies adopted by the City Council since 1962 is progressing steadily, with the goal of identifying policies for revision, rescission, or potential new policies for Council consideration. The City Manager initiated a review of City Council policies A workgroup including staff from the City Manager, City Clerk, and City Attorney departments is coordinating this effort The City Council is asked to consider revising two policies and provide feedback on two policies Since the start of the review process, City Council has revised six policies, rescinded sixteen polices, and adopted one new policy Fall 2022 November 2024 – September 2025Spring 2024 September 23, 2025 Page 340 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Council Policies Recommended for Revision 1.100 -01 City Identification Program: Use of Seal and Logo Purpose: •Established to provide guidelines for implementing the City identification program and consistent uses of the official logos and seal •Was last updated in September 2005 Recommended Changes: •Add reference to the City Clerk being the custodian of the City seal •Detail authorized and prohibited uses of the City seal, alterations to the seal, and a process for exceptions to the seal’s use •Detail authorized and prohibited uses of the City logos •Update the policy regarding copyright protection of the logos and seal Page 341 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Council Policies Recommended for Revision 2.840 -04 Public Vending Machines in City Facilities Purpose: •Outlines the nutritional standards for the food and drinks for vending at City of Chula Vista facilities •Requires all vending machines in City-owned facilities to meet state nutritional standards and provide healthier food and beverage options •Was adopted on in May 2006 Recommended Changes: •Amended the Beverage Standards to have 50% of all beverages in each vending machines to meet Choice Plus standards •Amended the Snack Standards to have 50% of all snacks and foods in each vending machines to meet Choice Plus standards •Clean-up and clarify language throughout Page 342 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Council Policies for Discussion 1.100 -02 Plaques – Dedication •Adopted in 1996 to guide dedication plaques for major projects •Lists: serving elected officials, board/commission members, and staff at time of dedication •Staff provides memo when plaque is prepared; Council may agendize exceptions •Staff seeking Council feedback on whether to revise or keep policy as is Page 343 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda City Council Policies for Discussion 2.840 -04 Special Events: Sponsorship, Endorsement, and Support •Defines City sponsorship and support of large-scale community events •Goal: enhance vitality, community engagement, and economic prosperity in Chula Vista •Outlines City role in endorsing or supporting events with resources or recognition •Staff requesting feedback to inform updates and future adoption of a Special Events Guide Page 344 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Adopt a resolution revising Council Policies ►100 -01 City Identification Program: Use of Seal and Logo ►111 -02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition ►840 -04 Public Vending Machines in City Facilities Recommended Action Page 345 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Discuss and provide feedback on Council Policies ►100-02 Plaques – Dedication ►102 -07 Special Events: Sponsorship, Endorsement, and Support Recommended Action Page 346 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda Recommended Actions 1)Adopt resolution revising Council Policies: •100 -01 City Identification Program: Use of Seal and Logo •111 -02 Council Presentations: Special Orders of the Day, Proclamations, and Certificates of Recognition •840 -04 Public Vending Machines in City Facilities 2)Discuss and provide feedback on Council Policies: •100 -02 Plaques – Dedication •102 -07 Special Events: Sponsorship, Endorsement, and Support Page 347 of 347 City of Chula Vista - City Council September 23, 2025 Post City Council Agenda