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RESOLUTION NO. 2014-070 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A JOINT EXERCISE OF POWERS AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On May 8, 2012, the City of Chula Vista (City) and the San Diego Unified Port District (District), approved and entered into a Financing Agreement for the Chula Vista Bayfront Master Plan (CVBMP) which identified the rights and obligations with respect to the financing, development and construction of the public improvements, infrastructure and conference center. The Financing Agreement established that the City and District would establish a Joint Powers Authority to provide for or facilitate the financing of the public improvements and the convention center. The City and District desire to create and establish the Chula Vista Bayfront Facilities Financing Authority (the "Authority") to implement common objectives of the parties related to the development of the CVBMP.
ENVIRONMENTAL REVIEW
The Development Services Director has determined that approval of the Joint Exercise of Powers Agreement and formation of the Authority are not projects as defined under Section 15378(b)(5) of the California Environmental Quality Act (CEQA) Guidelines because these actions involve only an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environmental; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The City is authorized to enter into the attached Joint Exercise of Powers Agreement (JEPA) pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California. Both the City and District staff propose to establish the JEPA prior to the release of a Request for Qualifications (RFQ) for the development of the Hotel and Convention Center, currently anticipated for release in June 2014. The JEPA will further define and exhibit to the development community the continued cooperation and dedication both jurisdictions maintain toward the successful implementation of the CVBMP.
Joint Exercise of Powers Agreement:
The attached JEPA is proposed for the sole purpose of assisting in the financing and refinancing of capital improvement projects of the CVBMP as contemplated by the Finance Agreement. The JEPA will be a separate public entity separate from the District and the City. The Governing Board is proposed to consist of five (5) members as follows:
Two (2) members appointed by the City Council;
Two (2) members appointed by the Port District;
One (1) member will be the Chula Vista appointed Port Commissioner.
All administrative functions (Secretary, Treasurer and Executive Director) will be fulfilled by existing Port District staff. The parties have acknowledged that the anticipated source of funding to secure debt issued by the JEPA will be Port District Ground Lease Revenues, Lease payments payable from public funds, City Transient Occupancy Tax and potentially future Tourism and Marketing District revenues. These revenues minus operation and maintenance cost will comprise the Net Financing Revenue available to the JEPA to support the debt service payments on issued revenue bonds as described in the Chula Vista Bayfront Master Plan Financing Agreement. Under California law and the Joint Exercise of Powers Agreement, the Authority will be a public entity separate and apart from the City and District and the debts, liabilities or obligations of the Authority will not be the debts, liabilities or obligations of the City, the District or any representative of the City or District serving on the governing body of the Authority.
DECISION-MAKER CONFLICT
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. Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Joint Exercise of Powers Agreement supports Economic Vitality, strategy 2.1 (provide policies, planning, infrastructure, and services that are fundamental to an economically strong, vibrant city) and city initiative 2.1.1 (implement the Bayfront Master Plan) by seeking to target and attract new businesses, promote balanced land use and reinvest in the City.
CURRENT YEAR FISCAL IMPACT
There is no current fiscal impact to the General Fund by approving the Joint Exercise of Powers Agreement.
ONGOING FISCAL IMPACT
Under California law and the Joint Exercise of Powers Agreement, the Authority will be a public entity separate and apart from the City and District and the debts, liabilities or obligations of the Authority will not be the debts, liabilities or obligations of the City, the District or any representative of the City or District serving on the governing body of the Authority. As described in the Chula Vista Bayfront Master Plan Financing Agreement, the City will provide an amount equivalent to the TOT generated within the CVBMP Project Area to support debt service payments on bonds issued by the Chula Vista Bayfront Facilities Financing Authority.