HomeMy WebLinkAbout2010/03/09 Item 2
CITY COUNCIL
AGENDA STATEMENT
.=::?'Yf:. (llY OF
. - - - CHULA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
MARCH 9, 2010, Item~
RESOLUTION OF THE CITY OF CHULA VISTA
CITY COUNCIL AUTHORIZING AN APPLICATION
TO THE STATE OF CALIFORNIA FOR
DESIGNATION OF THE EASTERN URBAN
CENTER (EUC) AS A CATALYST PROJECT UNDER
THE CALIFORNIA SUSTAINABLE STRATEGIES
PILOT PROGRAM, AND ACKNOWLEDGING
INTENT TO ENTER INTO A MEMORANDUM OF
UNDERSTANDING WITH THE STATE SHOULD
THE EVC BE SELECTED
DIRECTOR OF DEVELOPMENT SERVICE~VTY CITY
MANAGER
CITY MANAGER,-
4/STHS VOTE: YES D NO ~
SUMMARY
In response to a Request for Proposals (RFP) from the State Department of Housing and
Community Development (HCD), staff is making competitive application to HCD for
possible designation of the Eastern Urban Center (EVC) project as a Catalyst Project
under the California Sustainable Strategies Pilot Program. One of the application
requirements, and a prerequisite to receiving any possible award, is a signed authorizing
resolution crom the local governing body. This report presents background about the
Program and the EUC application, and requests City Council approval of the necessary
authorizing resolution.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity, application
to the State of California for Designation of the Eastern Urban Center (EUC) as a
Catalyst Project, 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 at this time because it involves only the submittal of a grant
application for yet to be determined specific projects, therefore, pursuant to Section
15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Once the
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March 9, 2010, Item /J-
Page 2 of6
project(s) have been fully defined, environmental review will be required and a CEQA
determination completed.
RECOMMENDATION
That the City Council approve the Resolution.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Background
Through a Request for Proposals (RFP), the California Department of Housing and
Community Development (HCD) is seeking competitive applications for projects
throughout the State to be designated under the Catalyst Projects for California
Sustainable Strategies Pilot Program ("Program"). Under the Program approximately 6
projects will be selected as Catalysts throughout California (one in each major region) to
incentivize sustainable communities and test innovative strategies designed to accomplish
the following:
increase housing supply and affordability
improve jobslhousing relationships
stimulate job creation and retention
enhance transportation mode choice
preserve open space
reduce greenhouse gas emissions and increase energy conservation
The Program is aimed at maximizing California's ability to leverage public and private
financial resources including local, state and federal funds. The Catalyst Projects will
also position the State to effectively participate and compete for new federal initiatives
under the Interagency Partnership for Sustainable Communities. That Partnership is
jointly sponsored by the Department of Transportation (DOT), Housing and Urban
Development Department (HUD), and the US Environmental Protection Agency (EPA).
The State also views the Program as helping to provide actual examples of how to
implement the goals and objectives of AB32 and SB375 that require local governments to
adopt supportive land use plans and policies that reduce greenhouse gas emissions toward
meeting targets.
The RFP was broadly constructed to gather information about the proposed Catalyst
projects, and was not specific as to exactly what forms and amounts of assistance the
projects would receive. The Catalyst projects must, however, agree to collect data and
measure the effectiveness of their sustainable strategies as part of an evaluation process
that allows dissemination of information about what works in developing sustainable
communities in California. Details will be the subject of a Memorandum of
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March 9, 2010, Item d-.
Page 3 of6
Understanding (MOU) that would need to be executed with the State should the EUC be
selected for award.
In reviewing the RFP, staff felt that the EUC is truly a model example of what the State is
looking for, and should be a strong candidate. Designation as a Catalyst Project would
bring deserved additional recognition to our sustainable planning and energy
conservation work, and poise the EUC for future funding and technical assistance to
accomplish initiatives.
Application Filing
Since our decision to apply, the time window has been short. One of the application
criteria is the support and commitment of a private sector partner, and we worked with
McMillin Companies (who has taken on much of the application work) to prepare and
submit the application for the EUC. Preparation and assembly of the application was
fairly involved, and its completion required efforts extending though February 10. The
application was due in hand (and was submitted) to State HCD by the close-of-business
February 11.
Knowing we would be working right up to the deadline, staff sent an Information
Memorandum to Council on February 4 outlining the circumstances, and indicating that
we would need to submit the application in advance of Council's formal consideration of
the State's required authorizing resolution. The application submittal only required a draft
resolution. A signed authorizing resolution from the City Council is required for an
award to ultimately be granted. Given the timing, the Information Memorandum
indicated we would return to Council with a resolution for formal Council action.
Letters of support were also part of the filing requirements, and we received letters ITom
the following individuals and agencies; National Energy Center for Sustainable
Communities (Doug Newman), Congressman Filner, Assemblywoman Salas,
Assemblyman Block, County Supervisor Cox, SANDAG, the South County Economic
Development Council, Chula Vistans for Community Action, South Bay Expressway,
and the Chula Vista Chamber of Commerce.
Program and EUC Application Overview
As noted in the Background section, the Catalyst RFP requested a broad range of
information about prospective projects in order to demonstrate how the project emulates
various sustainable development practices, and complies with a range of Program goals
and objective, and State planning priorities. The application was structured into the
following six main sections, and our completed package includes 89 pages.
Application Facts Sheet
Proiect SummarY Statement; focused on overall project goals and objectives
and how they meet the objectives of the Program.
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March 9, 2010, Item 9"
Page 4 of6
Threshold Requirements; demonstrating that the project meets mlllimum
qualifications including project size, Housing Element compliance,
consistency with State plarming priorities, support of the goals of SB375,
commitment of a private sector partner, and commitment to identify and
address regulatory barriers.
California Sustainable Communities Policv Obiectives: how the project meets
at least four of twenty-one listed objectives covering topics including (among
others) quantifiable reduction of greenhouse gas emissions, increased supply
of affordable and workforce housing, transportation and transit improvements,
energy efficiency and conservation, and promoting healthy communities and
walkable neighborhoods.
Catalvst Proiect Readiness: demonstrating the project's implementation
timeline, status of entitlements and regulatory permits, budget and funding
commitments, and community support.
Reporting and Evaluation Program: outlining proposed evaluation processes
to collect data necessary to demonstrate the effectiveness of the project's
sustainable strategies including subject areas such as land use, transportation
demand management, parking, trip reduction, transit useage and energy
useage.
A primary focus of the Program, and the area in which the City is making commitments
if the application is successful, is on practical implementation methods and practices,
including monitoring and measuring outputs and effects. The State's view is that
considering today's economic and fiscal constraints, and evolving technologies, local
agencies need proven models and strategies to most effectively and efficiently achieve
desired economic, housing, transportation and environmental objectives. The Program is
a means to use the Catalyst Projects to shape environmental, economic and housing goals
and test strategies for broad implementation throughout the State. A list of the project
monitoring and reporting proposals included in our application is presented in
Attachment lA.
In exchange for the monitoring and reporting commitments, the selected Catalyst Projects
will be eligible for a variety of resources and technical assistance, including but not
limited to the following. A copy of the Incentives and Rewards page from the RFP is
presented in Attachment lB.
Access to State funding resources including; Innovative Homeownership
(Prop 1 C) of approximately $1 million, beverage container recycling grants,
bonus points for Caltrans' Community Based Transportation Planning Grants.
Targeted technical assistance from the Energy Commission and other State
agencies in identifying and supporting ARRA funding.
Publicity and identification
Identification of needed State assistance
Other specific desired incentives or technical assistance to the project as
recommended by applicants
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March 9, 2010, Item ,;L.
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As a final component, applying jurisdictions were also given the opportunity to include a
list of incentives and rewards the project would be most interested in receiving, and any
other potential resources the State may be able to provide to support the project. Those
that we included in our application are presented in Attachment 1 C.
Next Steps
The RFP indicates that the State will make a preliminary award announcement in April
2010, and staff will return to Council at that time with a status update.
Should the EUC be awarded as a Catalyst Project, the City will need to enter into a
Memorandum of Understanding (MOU) with the State to secure the EUC as a Catalyst
Project, and to define and secure the associated obligations, responsibilities and benefits.
The City will be subject to the terms and conditions as specified in the RFP and MOU,
and all projects, information and timelines represented in the Application would be
enforceable through the MOU. The Resolution for Council action tonight authorizes the
Development Services Director/Deputy City Manager to work with RCD and McMillin
to prepare a draft MOD that would subsequently be returned to Council for review and
approval prior to being executed.
DECISION MAKER CONFLICT
No Property within 500 feet
Staff has reviewed the property holdings of the City Council and has found no property
holdings within 500 feet of the boundaries of the property which is the subject of this
action.
CURRENT YEAR FISCAL IMPACT
Based on the guidelines in the State's RFP, a preliminary award announcement is
anticipated in April 2010. If the EUC is awarded as a Catalyst Project, staff would then
need to work with the State in completion and adoption of an MOU regarding terms of
the award. Although the State has not yet specified, preparation of the MOU would
likely occur prior to the end of this Fiscal Year (2009-'10). Staff time necessary to
prepare and present the MOU for action is already included in the approved FY '09-' 10
budget.
ONGOING FISCAL IMPACT
Not fully understood at this time given the generalities of the RFP and application
package. Should the EUC be awarded, the City and project become eligible for grant
funding and other assistance, while at the same time, the City/project must also commit to
provide monitoring and reporting on various sustainable development factors such as
traffic patterns, transit use, and energy consumption and greenhouse gas emissions
among others. Our application acknowledges that some of the monitoring and reporting
proposals are dependant upon identifYing funding.
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March 9, 2010, Item d-
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The details regarding possible revenues, the specific monitoring obligations and costs,
and the related fiscal impacts will be the subject of the noted MOU development with the
State should the EUC be successful when the preliminary award announcement is made
in April 2010. Staff would be returning with a separate report and action regarding the
MOU, including an assessment of the overall fiscal effects.
ATTACHMENTS
1. EUC Catalyst Project Application excerpts;
A. Proposed Reporting and Evaluation Program
B. Incentives and Rewards Package list from RFP
C. Proposed Incentives and Rewards for Proj ect
Prepared by: Ed Batchelder, Advance Planning Manager, Development Services
J :\Planning\ED\Catalayst Project Grant\Council Statement-authorizing 3-9-10.dot
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The following reporting and evaluation program addresses many of the key, and most relevant sustainable
initiatives the project features, including reduction of vehicle trips, parking management, energy modeling
and transit usage / ridership.
roxlmlty to actIv-
ity centers and
transportation
facilities (bicy-
cle, transit, other
non-auto modes
as applicable)
ransportatlon
Demand
Management
a r I n 9
Management
Plan (see
attached exhibit
detailing park-
ing district
responsibilities)
Data Derived
ommercla
a. Description of type of
business
b. square feet of interior
usable space
c. Hours of operation
d. Est i mat e d
employees
2. Residential
a. Product type and unit
count
b. Sale or rental
c. N u m b e r 0 f
bedrooms
d. Estimated Household
size
or eac project, ata WI
be provided describing the
proximity of the individual
project to major activity
centers and to non-auto-
mobile transportation
modes and facilities
escrlptlon 0
Transportation Demand
Management (TOM)
Measures to be
implemented
ata on e ectlveness
of shared parking, park-
ing permit programs and
other measures in reduc-
ing parking demand and
the setting of appropri-
ate parking ratios. This
metric will provide data
on how parking ratios may
evolve over time with the
implementation of shared
parking, in-lieu fees, use
of TOM, etc and identify
appropriate parking ratios
Monitoring Process
1. As a part 0 t e eSlgn review permit process,
a condition will be added to each approval
requiring the project applicant to submit data
on the type of uses anticipated, description of
the proposed use, space allocated to each use
and estimated number of employees.
2. The condition will require that the data be
collected by the individual developer and
provided to the City at time of initial lease,
rental or sale of the unit or space. This infor-
mation shall not be required for subsequent
sale, rental or leasing of any unit or building
space.
3. Data will be provided by private developers to
City for transmittal to State.
s a part 0 t e Iscretlonary permitting esign
review process, a condition will be added to
each approval requiring the project applicant to
submit data on the projects proximity to major
activity centers and transportation facilities and
will demonstrate connectivity to the surrounding
transportation network.
or non-reSt entia Ul -to-suit projects Wit
greater than 100 employees, business owner
will submit to the City a description of any
Transportation Demand Management measures
(carpool, van-pool, RideLink, etc) that the
employer will implement.
project WI me u e a ar Ing Istnct 5 W IC
are empowered to manage parking within project.
Each two years, district must prepare and inven-
tory and occupancy study to evaluate demand,
parking inventory and effectiveness of shared
parking. Inventory will be used to set new paring
ratios within the district. The approved parking
management plan will be provided to the State
bi-annually.
eportong
Private
Developers I
City of Chula
Vista
Private
Developer I
City
Business
Owner I City
Parking
District(s)
IS metnc WI mvo ve
traffic counts to estimate
vehicle trips generated by
the project
IS metnc WI
data on transit
in the project
provl e
ridership
o measure tee ec-
tiveness of strategies
designed to reduce build-
ing energy consumption
and energy-reiated emis-
sions, a comprehensive
whole-building monitoring
and evaluation process
will be established.
an lego etropo Itan ranslt ervlce WI
conduct and annual route usage evaluation
which will count ridership on a stop-specific
basis, and will provide that information to the
City for transmittal to the State
2. City is also considering increasing the frequency
of the monitoring to monthly for routes serv-
ing the EUC and will implement such monitor-
ing and reporting if funds can be identified.
Information would be compiled and provided
to the State on a quarterly basis.
3. It is anticipated that the SRT route will employ
Automatic Passenger Counting (APC) tech-
nology that is capable of collecting real-time
usage information on a stop-by-stop basis. If
this technology is in fact implemented, report-
ing would be provided on a quarterly basis.
eneration 0 ase me
energy (electricity and natural gas) consumption
profiles for a representative sample of the EUC
building types, assuming they are built to comply
with the minimum requirements of the applicable
Title-24 building standard; (2) Installation of
altemative energy-efficient materials, equipment,
and power system features, including advanced
fossil~fuel and renewable onsite-power generation
systems where appropriate; (3) Monitoring of
building energy consumption on an 8,760 hourly
basis and peak demand for a 12-month period
following commissioning; , and (4) Evaluation of
actual energy consumption vs. projected baseline
energy consumption using Title-24 compliant DOE2
software tools normalized to account for actual
cooling and heating days during the performance
monitoring period. These will include Energy PRO
and eQuest (pending the approval of eQuest as a
Title-24, 2008 compliant modeling tool). The same
software will be used to model comparable buildings
for each type built without the alternative features to
calibrate results between the paired building data
sets.
City
Transit
Provider I City
Report will be
produced and
transmitted to
the State by
the National
Energy Center
for Sustainable
Communities
or other quali-
fied entity.
* Commitment to this metric is dependent on identification of specific targeted funding to be provided by State government, utility
providers, local incentives or other funding to offset both monitoring and reporting costs and, for the energy modeling, additional
building measures to be tested
~
CATALYST PROJECT INCENTIVES AND REWARD PACKAGE
Successful applicants to become a Catalyst Project will be eligible for a variety of resources and
technical assistance, including but not limited to:
. State Fundinq Resources. includinq:
o Innovative Homeownership funding (Proposition 1 C, HCD). Approximately $1 million per
Catalyst Project will be available 1.
o Beverage Container Recycling Grants (Department of Conservation [DOC])
o Additional consideration, e.g. bonus points, when applying for planning grants for the
preservation of agricultural farmland (DOC's Farmland Conservation Program)
o Bonus Points for Cal-Trans' Community Based Transportation Planning Grant Program
(please see http://www.dot.ca.qov/hq/tpp/qrants.html).
. Tarqeted Technical Assistance from teams of State Aoencies. includino but not limited to:
o The Energy Commission and other State agencies in identifying potential funding support
from the American Recovery and Reinvestment Act of 2009.
o DOC's recycling and agricultural land preservation and planning.
o Department of Housing and Community Development and the Infrastructure Bank.
. Publicitv and identification of the local qovernment as a California Catalvst Proiect for
Sustainable Strateqies.
. Team participation to identify needed or desired State assistance.
. Other: Applicants may also recommend specific desired incentives or technical assistance
targeted to the project or community's unique circumstance.
Funding programs require separate applications to the relevant departments. This application
establishes threshold for bonus or competitive priority for identify funding program eligibility.
'The Proposition 1 C Innovative Homeownership Program (IHP) will have a separate application process. Only
successful Catalyst Project applicants will be eligible to apply for IHP funds. The application process will require the
identification of an innovative homeownership program or project. and IHP funds may only be used for capital assets
as defined in Government Code Section 16727. The IHP is funded through the sale of general obligation (GO) bonds.
At this time, proceeds from the sale of GO bonds are not available for the IHP, and it is unknown when such funds may
become available due to the State's fiscal situation.
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ATTACH+1ENr 1~
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Financing / Grants
1. Assist in applying for the following Housing and Community Development (HCD) Proposition 1 C
and 1 B funds. Additionally help promote this Catalyst Project for all other eligible HCD funding
programs and support in amending future competitive application scoring guidelines to provide
Catalyst Projects with bonus scoring opportunities.
Innovative Homeownership Program - Potential funding of approximately $1 million for the
Project
Infilllnfrastructure Grant Program (IIG) (if new funds become available)
Transit Oriented Development Program (TOD) - loan and grant program (if new funds become
available)
CalHome and BEGIN - loan and grant program
HOME Investment Partnership Program (HOME) - Loan program
Multifamily Housing Program (MHP) - loan program
Housing Related Parks Program
Public Transportation Modernization, Improvement, and Service Enhancement Account
State-Local Partnership Program Account
2. Beverage Container Recycling Grants - This program is currently listed as postponed indefinitely.
If program is renewed, we request Catalyst Projects be prioritized in seeking grants.
3. Assist in applying for the Cal-Trans' Community Based Transportation Planning Grant Program
with bonus points as a Catalyst project.
4. Assist in seeking and applying for additional Federal Transit Administration (FTA) and Federal
Highway Administration (FHWA) grants listed below and help identify other current and future
federal transportation grants that may available to support the project.
Title 49 U.S.C. 5314 FTA Funding for Research and Development
Title 49 U.S.C. 5309 FTA Funding (capital investment funds) for Bus & Bus-Related projects
Title 49 U.S.C. 5316 FTA Funding The Job Access and Reverse Commute (JARC)
Title 49 U.S.C. 5307 FTA Funding Large Urban Cities (Urbanized areas with populations of
50,000 or more)
Title 49 U.S.C.5303 Metropolitan Planning
TEA 21 ACT Flexible Funding for Highway and Transit Congestion Mitigation Air Quality
Improvement (CMAQ) www.fhwa.dot.oov/environment/cmaoDos/index.htm
Transportation and Community and System Preservation Pilot Program httD:/lwww.fhwa.dot.
oov/tCSD/
Transportation Enhancements Program www.enhancements.oro/directorv.html
,.
li1Itrrwr
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ATT~HM~fVT C.
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5. Assist in seeking and applying for additional Federal, State and local funding listed below and
help identify other current and future funds that may available to support the Project.
Energy Efficiency and Conservation Block Grant (EECBG) Program funds awarded to the
state and City of Chula Vista. httD://www.eecba.enerav.aov/
Economic Development Administration (EDA) - Economic Development Assistance Programs
including: Public Works and Economic Development Facilities Program, Global Climate
Change Mitigation Incentive Fund and Economic Adjustment Assistance Program.
Community Development Block Grants (CDBG) - including ARRA CDBG-R funds
6. Assist in seeking California Energy Commission funding
State Energy Program
Energy Efficiency and Conservation Block Grant (EECBG)
Appliance Rebate Program
Energy Assurance Planning
7. Technical assistance to identify and seek current and future American Recovery and
Reinvestment Act ARRA funding for the project, including but not limited to:
. Build America Bonds (BAB)
Recovery Zone Facility Bonds (RZFB)
Qualified Energy Conservation Bonds (QECB)
(new) Clean Renewable Energy Bonds (CREB)
Green / Sustainability
1. Consider creation of a preferential tax structure or district for developers of, and buyers in devel-
opment projects which feature resource efficient technologies.
2. Provide technical assistance and/or financial support to the City's effort to develop tools to
measure the energy/carbon efficiencies of site planning and community design provisions
Support
1. Develop a interdepartmental team to identify all potential grant programs at the state or federal
level which could apply to the project. Provide a single point of contact to act as an interdepart-
mental or interagency facilitator at the state level for activities involving the project.
2. At the City or developer's request, actively support and advocate for the project applications
made to federal, regional or local grant programs.
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Business Development
1. Through Cal Biz or other entity, actively market the project at trade shows or other state spon-
sored or attended events and venues
2. Actively assist in identifying, or directing new businesses and end users to the project
Other
1. Provide funding for continuation of the National Energy Center's Chula Vista Research project,
and related subsequent efforts.
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3.{&
RESOLUTION NO.
RESOLUTION OF THE CITY OF CHULA VISTA CITY
COUNCIL AUTHORIZING AN APPLICA nON TO THE ST ATE
OF CALIFORNIA FOR DESIGNATION OF THE EASTERN
URBAN CENTER AS A CATALYST PROJECT UNDER THE
CALIFORNIA SUSTAINABLE STRATEGIES PILOT PROGRAM,
AND ACKNOWLEDGING INENT TO ENTER INTO A
MEMORANDUM OF UNDERSTANDING WITH THE STATE
SHOULD THE EUC BE SELECTED
WHEREAS, the State of California, Department of Housing and Community Development
(HCD) issued a Request for Proposals (RFP) for Catalyst Projects for the California Sustainable
Strategies Pilot Program (SSPP); and
WHEREAS, the SSPP is soliciting projects for award of approximately six projects across
the State as Catalyst Projects to incentivize sustainable communities, and test innovative strategies
designed to increase housing supply and affordability, improve jobs and housing relationships,
stimulate job creation, enhance transportation mode choice, reduce green house gas emissions, and
increase energy conservation, among others; and
WHEREAS, in review of the RFP and project criteria the City has determined that the Corky
McMillin Companies' Eastern Urban Center (EU C) project is an exemplary candidate for application
and award; and
WHEREAS, in conjunction and cooperation with Corky McMillin Companies the City has
prepared an application for the EUC (Application) for submittal to the State under the SSPP; and
WHEREAS, one of the Application requirements, and a condition of any recommendation
for funding, is an authorizing resolution from the governing body, in this instance the Chula Vista
City Council; and
WHEREAS, HCD is authorized to approve applications for the SSPP subject to the terms and
conditions of the RFP and the Application; and
WHEREAS, the City understands that pursuant to the RFP and the content of the
Application, there are certain City and McMillin obligations and responsibilities to provide for
monitoring, evaluation and reporting involving the EUC project should the project be awarded as a
Catalyst Project by HCD, as well as certain benefits to be conveyed to the EUC project and the City;
and
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WHEREAS, the City further understands that should the Application be approved and the
EUC awarded, that HCD will require the City to enter into a Memorandum of Under standing (MOU)
to secure the EUC as a Catalyst Project, and to define and secure the associated obligations,
responsibilities and benefits; and
WHEREAS, the City further understands that it will be subject to the terms and conditions as
specified in the RFP and MOU, and that all projects, information and timelines represented in the
application will be enforceable through the MOD.
NOW THEREFORE BE IT RESOLVED that the City Council of the City ofChula Vista
does hereby authorize and direct as follows:
1. That the City's Director of Development Services/Deputy City Manager is authorized to
prepare, execute and submit to HCD the Application package and any related materials for
designation of the EUC project as a Catalyst Project for the SSPP consistent with provisions
ofthe RFP.
2. If the EUC Application is approved, that the Director of Development Services/Deputy City
Manager is authorized work with HCD and McMillin to develop the necessary MOU and
other documents required or deemed necessary to secure the Catalyst Project designation for
the EUC.
3. That the Director of Development Services/Deputy City Manager return to Council with the
proposed MOD and any other related documents for review and acceptance prior to any final
execution.
Presented by
Approved as to form by
./
\
Gary Halbert, AICP, PE
Deputy City Manager/
Development Services Director
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