Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION 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)
WHEREAS, the Chula Vista Bayfront development, currently under construction , will significantly increase calls for service to the Fire Department in the area; and
WHEREAS, the existing fire stations and response companies in the service area do not have response capacity for th e new population growth and the associated risks involved with the development type; and
WHEREAS, the hazards and risks associated with the Bayfront development are uniquely different from the existing service demands in the City of Chula Vista. Density, elevated occupancy, and the water (bay) create a higher complexity to provide Fire, EMS, and Rescue services requiring dedicated resources; and
WHEREAS, the award of a Design Build contract to design and construct a new temporary fire station (Fire Station 12) for the Bayfront District was approved by Council action in September 2024; and
WHEREAS, following award of the Design Build contract, the design of the project was developed and the Fire Department’s needs for this facility and the site constraints became clearer; and
WHEREAS, several factors including more accurate cost estimating, increased scope to provide all the needed features, and site constraints increased the project costs; and
WHEREAS, Council approval of an interfund loan from the Measure A Sales Tax fund in the amount of $ 5.6 million, split between 73.6% the Public Facility Development Impact Fee (PFDIF) Fund and 26.4% the General Fund, is necessary for cash flow purposes; and
WHEREAS, City Council Policy No. 220 -06 authorizes the establishment of interfund loans for cash flow management purposes; and
WHEREAS, the proposed interfund loan to the PFDIF Fund is anticipated to be repaid in full within 10 years, dependent on the rate of development, and the interfund loan to the General Resolution No.
Fund is anticipated to be repaid in full within five years. Should funds become available sooner, the interfund loans would be retired earlier; and
WHEREAS, interfund loan amounts will be advanced on a quarterly basis in order to minimize borrowing costs; and
WHEREAS, any and all loaned amounts will be repaid with interest at a rate equal to the City’s pooled investment rate of return, currently approximately 3.3%; and
WHEREAS, as a result of the projected timing for repayment of the loans, and the applied interest rate, the Measure A Sales Tax Fund will not be adversely impacted.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it:
1. Authorizes an interfund loan from the Measure A Sales Tax Fund to the PFDIF Fund and General Fund CIP Fund in the not to exceed amounts of $4,121,600 and $1,478,400 respectively, with interest accruing at the City’s pooled investment rate, and repayment at the earliest practical date from the sources and revenues described above; and
2. Amends the Fiscal Year 2025 -26 Capital Improvement Program (CIP) by increasing appropriations for the Temporary Fire Station 12 project (GGV0275) as summarized below.
Fund Amount
PFDIF - Fire Suppression Component (560901) $ 4,121,600 General Fund CIP Fund (713) 1,478,400
TOTAL $ 5,600,000
Presented by Approved as to form by
Mathew Little, PE Marco A. Verdugo
Deputy City Manager/ Director of Engineering City Attorney & Capital Projects